CHICAGO — A 60-year-old man who has spent nearly three years in Cook County Jail over a civil divorce dispute will remain incarcerated after an Illinois appeals court upheld a contempt ruling that his legal team calls an unconstitutional form of debtor’s prison.
Steve Fanady has been in custody since June 2022, accused of failing to pay his ex-wife $10 million stemming from their 2011 divorce settlement. The Illinois First District Appellate Court ruled this week that Fanady’s continued detention is lawful, even though the case stems from a non-criminal matter.
Jailed Over Civil Contempt, Not a Crime
The core of the case lies in Fanady’s alleged failure to comply with a divorce decree that awarded his ex-wife, Pamela Harnack, 120,000 shares of Chicago Board Options Exchange (CBOE) stock or their equivalent value. When Fanady failed to deliver either, Judge Michael Forti held him in civil contempt.
Fanady’s attorney, Laura Grochocki, argued that the court’s decision effectively imposes indefinite imprisonment for inability to pay, violating his constitutional rights. “This is not justice — this is a modern-day debtor’s prison,” she said.
Court Rejects Financial Hardship Defense
Fanady insists he can’t pay, claiming the CBOE shares were sold years ago and the proceeds held in a now-defunct Belize trust that he cannot access. He presented letters from alleged trustees, citing lack of assets and legal constraints.
However, both Judge Forti and the appellate panel found that Fanady failed to provide verified financial records to prove insolvency. Without authenticated documentation, the court ruled that Fanady remains in contempt and must stay jailed until payment is made.
A Sentence Longer Than Most Criminal Convictions
Fanady has now been jailed longer than most convicted gun offenders or robbers in Cook County, underscoring the irony amid Illinois’ SAFE-T Act, which generally bars pretrial detention for many criminal defendants.
Grochocki emphasized the contradiction: “We’re seeing public officials convicted of serious crimes serve less time than my client, who’s never been charged with one.”
The divorce initially valued Fanady’s assets at $7.3 million, including over 280,000 CBOE shares. A 2017 civil ruling declared many of those shares belonged to Fanady’s former business partner, further complicating the situation. Still, Harnack returned to court and secured a cash judgment in 2020.
Legal Battle Far From Over
Despite multiple legal appeals, Fanady remains in jail with no clear end in sight. His team is weighing further legal action or potential relief at the federal level, citing potential due process violations and excessive punishment for a civil matter.
For now, the court maintains its stance: pay the $10 million or remain behind bars.
What do you think about indefinite jail time in civil cases like this? Should courts reevaluate how they enforce divorce settlements? Share your thoughts at ChicagoSuburbanFamily.com.
