A Bloomington couple acquitted of felony theft is suing the city, alleging a Bloomington Police officer abused his position to pursue criminal charges against them on false pretenses.
The owners of a Bloomington natural medicine center called Blueze Wellness accused Cassandra and Jadeyn Lacey of spending $16,000 without permission. Both registered nurses, the Laceys entered into a business agreement with Blueze in 2023 that quickly soured, according to the Laceys' lawsuit.
Both Laceys pleaded not guilty to allegations they'd stolen from Blueze, saying they'd actually been blocked from accessing their own funds while offering IV infusions for the clinic.
In January 2025, Judge Amy McFarland issued a rare directed verdict prior to a jury trial, characterizing the ordeal as a misguided business venture and a misunderstanding. The Laceys now allege the City of Bloomington failed to adequately train law enforcement officers and enforce police department policies during the investigation and after their arrest.
The federal lawsuit, filed Feb. 25 in Peoria, alleges a Bloomington Police sergeant, Timmothy “Ty” Carlton, initiated the investigation while in a romantic relationship with Blueze's CEO.
According to legal filings, Blueze's leadership team “contacted Carlton directly on his personal cell phone in an effort to convince him to initiate criminal proceedings against [the Laceys] over the parties’ business dispute.”
The lawsuit claims the city failed to put conflict of interest policies in place at the police department. WGLT previously reported Carlton's wife also worked for Blueze.
Carlton was fired from BPD in 2024 after an internal department investigation determined he leaked confidential information to the Laceys in an effort to thwart the investigation. Records previously obtained by WGLT through the Freedom of Information Act showed Carlton texted police reports to the couple before they were interviewed by police.
A special prosecutor assigned to the case opted against criminal charges.
Carlton has his own pending lawsuit against the City of Bloomington. His attorney did not respond to a request for comment about the Laceys' allegations about his conduct in their lawsuit.
Cassandra and Jadeyn Lacey further allege their rights were violated while the couple was held in custody for 33 hours, including inadequate access to phone calls and basic necessities like drinking water. The lawsuit said their pet died as a result of being detained and that Jadeyn Lacey, a transgender man, was placed in a “violent offender” section of the male jail population despite disclosing his gender identity and requesting to be detained with females for his safety.
The McLean County jail is operated by the McLean County Sheriff’s Department.
The lawsuit requests damages be paid to the Laceys to recover financial losses including lost wages and legal fees, plus compensation for emotional and psychological harm.
Requests for comment sent to the City of Bloomington and the Laceys’ attorney were not immediately returned. The Bloomington Police Department did not immediately respond to a request for clarification on its conflict-of-interest policies.
