Former Illinois Railcar Management CEO Charged in $22 Million Embezzlement Case (Chicago, IL) — The former chief executive of an Illinois railcar management company faces a federal wire fraud charge after prosecutors accused him of diverting more than $22 million in client funds for personal use, including gambling expenses.
Michael Calomino, 69, of Frederick, Maryland, was charged in a criminal information filed Sept. 30 in U.S. District Court in Chicago. The U.S. attorney’s office announced the case Oct. 1.
The company managed railcars for owners throughout North America, arranging services such as maintenance and repairs. It often collected money from clients in advance to cover those expenses, according to prosecutors.
The charging document linked to the announcement identifies the business only as “Company A” and describes Calomino as its CEO and controlling shareholder. He controlled its bank accounts and determined when vendors were paid, the filing states.
Prosecutors allege that between approximately April 2016 and June 2025, Calomino transferred client funds from corporate accounts into a personal account, ultimately embezzling about $22.43 million.
The filing also alleges he caused employees to send clients invoices falsely indicating that vendor bills had been paid or would be paid. According to prosecutors, Calomino knew the payments had not been made or that the money would not be used as represented.
The wire fraud count cites a May 7, 2025, email to an unidentified federal agency seeking reimbursement of approximately $1.29 million for payments purportedly made on its behalf. Prosecutors also seek a forfeiture judgment of approximately $22.43 million upon conviction.
Federal authorities involved in the case include the FBI’s Chicago field office and the Tennessee Valley Authority’s Office of Inspector General, with assistance from the U.S. Trustee Program. Assistant U.S. Attorney Jeffrey Snell is prosecuting.
No arraignment had been scheduled as of the Oct. 1 announcement. Wire fraud carries a maximum penalty of 20 years in federal prison. Calomino is presumed innocent, and the government must prove guilt beyond a reasonable doubt.
Former Illinois Railcar Management CEO Charged in $22 Million Embezzlement Case
