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…