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July 14, 2024

Court records allege Charles Lutzow, Township Supervisor and Principal at CAL Financial Group Inc. breached Fiduciary Duty and committed Constructive Fraud

By John Kraft & Kirk Allen

On January 11, 2019

Charles Lutzow (left)


The Algonquin Township Road District has filed suit in McHenry County against Charles Lutzow, current Algonquin Township Supervisor, Road District Treasurer, and Principal at CAL Financial Group Inc. alleging a Breach of Fiduciary Duty and Constructive Fraud with Road District monies.

The suit alleges:

  • Lutzow transferred Road District funds from Fifth Third Bank and deposited Road District funds into an account at American Community Bank and Trust, but did not deposit those funds into an account in name of the Road District.
  • In Lutzow’s actions in moving the money, he opened at least one account with Road District monies but did not title the account in the name of the Road District.
  • That Lutzow executed a sworn statement identifying the depositor as something other than the “Algonquin Township Road District.”
  • That the funds deposited were the lawful property of the Road District and not some other entity
  • That Lutzow has the power to return the monies of the Road District.
  • That more than $1,000,000.00 of Road District funds are in accounts not in the name of the Road District, but in some other name.
  • That Lutzow is a principal at CAL Financial Group Inc./DBA CAL Business Transitions and CAL Financial Inc, where he has custody and control of numerous financial account and is particularly aware of the need to title accounts in the name of the entity that owns the accounts.
  • That a Citation to Discover Assets of the Road District, served on the bank, came back stating there were no Road District accounts at that banking institution.
  • That Lutzow had a fiduciary duty to the Road District, of which he was the Treasurer.
  • That constructive fraud occurred in these transactions, where there was a breach of legal or equitable duty arising out of a fiduciary relationship, a presumption of constructive fraud arises.

The Road District is praying for the following relief:

  • A judgment against Lutzow for compensatory damages for not less than $1,000,000
  • Order Lutzow to pay punitive damages an amount equal to three times the amount of Road District funds held in accounts in names other than the Road District
  • Order Lutzow to cause all funds of the Road District to be returned to an account in the name of the Road District.

These allegations came to light after the Court approved a settlement of an FOIA lawsuit by ECWd.  After the Township Board refused to pay the legal settlement, an attempt to discover assets was served on the banking institution where the Road District funds were alleged to have been deposited. The bank responded to the Citation to Discover Assets by stating the Road District did not have any accounts at that bank, which was not true.  Further inquiry resulted in the bank amending their response to disclose what they first said did not exist.

A copy of the lawsuit can be downloaded at this link or viewed below.

1 - ALGON TWNSHP - Complaint filed 1-10-19


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  • Cindy
    Posted at 22:09h, 11 January Reply

    One would think that this county has been run by a bunch of rubes. No one can be this stupid. One who just fell off the turnip truck would know that this is absolutely conversion of funds, or commonly known as theft!

  • Frank Rizzo
    Posted at 01:31h, 12 January Reply

    Jumpin Jiminy! (I made one of them New Year regurgitations to clean up my language!)

    You don’t hardly never know what will turn up when they start stalling and hiding stuff!

    All you know for sure is that they might be hiding something.

    So if you hadn’t filed and won the FOIA action the money might still have been stashed but not nobody important at the road district would have known nuthing about what was up?

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