Gun Shop Owners Sue Sheriff, Secret Service For Seizure Of Funds, Cars

MANHATTAN, IL — The owners of a gun shop in New Lenox are suing the Will County Sheriff's Office and the United States Secret Service, alleging a civil rights violation and other offenses in the seizure of $5.5 million in assets during their arrests in 2023.

Jeffery Regnier and Greta Keranen, who own Kee Firearms and Training LLC and Kee Construction, were arrested in February 2023 on charges they illegally accrued thousands of dollars in COVID-19 relief funds. The Manhattan couple initially faced a combined 24 felony counts, ranging from wire fraud, money laundering, loan fraud and state benefits fraud. Prosecutors alleged that between falsely obtained unemployment benefits, Economic Injury Disaster Loans and Paycheck Protection Program loans, the duo raked in hundreds of thousands in aid.

Now, Regnier and Keranen are suing the agencies behind their arrests, alleging they unlawfully seized cars and investment accounts with a value of approximately $5.5 million, "an overwhelming amount of money," the federal complaint reads.

Filed Jan. 9 by Ettinger and Associates, the suit accuses the United States Secret Service and Will County Sheriff's office of "bringing knowingly frivolous civil forfeiture claims targeting citizens of Will County to line the pockets of the Will County State’s attorney and other Illinois government agencies."

Named in the suit are Secret Service Agent Cayla Coleman, as well as the Secret Service and Will County Sheriff's Office as entities. Attorneys sought also to name the Will County State's Attorney's Office, but are limited by absolute immunity granted to prosecutors.

Coleman and the sheriff's office, the suit says, led the investigative efforts into the plaintiffs' financial activity, specifically zeroing in on "several large cash deposits" which "appeared to have no apparent economic, business, or lawful purpose."

"Such statement is false or misleading as it is based on pure guesses or speculation," the complaint states. "The affidavit provides no facts relating to an unlawful source of income."

In the forfeiture complaint, the agencies outline dozens of transactions totaling several millions of dollars that pertain to alleged money laundering activity.

"Despite listing such a large amount of transactions, the forfeiture complaint does not identify any alleged illegal source of these funds outside of three alleged PPP loans and unemployment benefits totaling approximately $274,000."

The investigation spanned banking activities for both Regnier and Keranen from Dec. 18, 2020 to Jan. 3, 2022, in which Old Plank Trail Bank documented $2,638,707.00 of cash deposits and ACH debits.

"Again, no explanation is given as to what unlawful purpose these funds are secured from," the new complaint reads. "There is no allegation that there have been illegal drug proceeds or otherwise. The only real allegation is that these deposits are suspicious because they are large."

Attorneys for Regnier and Keranen, then, argue "there was no good faith basis for the complaint," and the agencies "acted maliciously and with indifference to the truth when bringing the affidavit and the civil forfeiture case."

The affidavit and forfeiture complaint led authorities to raid the Manhattan home the two share, in late February 2023. In addition to several Fidelity investment accounts, also seized were 2021 and 2022 Ford Broncos, a 2021 Audi RS Q8, and a 2022 Ford 250.

The civil rights suit alleges that the Will County Sheriff's Office is now holding the assets, including vehicles and funds from "without probable cause or legal justification.

"A vast majority of these seized funds from the Fidelity accounts were stocks, which as a result of the warrant were sold upon seizure," the complaint states. The sale amounted to a $1 million loss to Regnier and Keranen, it continued.

"Plaintiff makes no admission regarding the allegations pertaining to $274,000," the suit states. "However, even assuming Coleman, and the Will County State's Attorney, Will County Sheriff's Office, and United States Secret Service are correct that the approximately $274,000 in loans are illegally gotten, it does not account for the improper seizure of 5.5 million dollars and then selling the stocks for a loss of a million dollars.

"That there is no good faith basis for the seizure of the remainder of the funds and such conduct is an intentional and illegal abuse of the powers of the powers of the USSS, WCS and WCSAO in violation of the constitution."

The affidavit also sites alleged accounting discrepancies, which Regnier's and Keranen's representations state that even if true, would call for a tax audit, "not to falsely allege that funds are criminally obtained."

The suit alleges civil rights violation, negligence, gross negligence and recklessness. Regnier and Keranen seek monetary damages including but not limited to those incurred for the seizure of the 5.5 million, the lost profits, capital gains, dividends, and other appreciation of the stocks and other assets.

Regnier and Keranen are demanding a jury trial.

Criminal cases against Regnier and Keranen remain pending: one on charges noted above, and an additional alleging they committed loan fraud to purchase the Ford Broncos, in turn allegedly committing theft by deception and burglary. Both appeared in court Dec. 20. A next court appearance is set for Feb. 4, where a trial date will be set.