Deputy police chief in Illinois indicted on bankruptcy charges as town finances roil

A federal grand jury has indicted an Illinois police official on charges of bankruptcy fraud and perjury.

Deputy Chief Lewis Lacey of the Dolton Police Department faces nine counts including bankruptcy fraud, making false statements and declarations in a bankruptcy case and perjury. Each charge carries a maximum of five years in prison.

Lacey, 61, underreported his income, hid bank accounts and, "made several materially false and fraudulent representations" in multiple bankruptcy cases filed since the 1980s, federal prosecutors say in a news release.

Prosecutors also allege that Lacey lied about being separated from his wife and that she did not live with him or contribute to the household financially. The allegations stem from Lacey's time as an officer before he became deputy chief.

Lacey is the second Dolton village official to face bankruptcy fraud charges as Keith Freeman, a senior administrator for the suburb about 20 miles south of Chicago, was indicted in April.

Lacey's arraignment date has not been set and he has maintained his innocence through is lawyer.

Federal charges come as suburb roils in financial crisis

The indictment comes as the Dolton Village Board is investigating the city's finances.

The investigation, led by former Chicago Mayor Lori Lightfoot, found multiple instances of a small group of police officers receiving large amounts of overtime. Lacey received over $215,000 in overtime pay from 2022 to June of this year. The investigation also found that the city had not had an annual report or audit since 2021.

Lacey, who was Dolton's acting police chief, was placed on administrative leave then fired last week, according to Chicago NBC affiliate WMAQ-TV.

Lacey's lawyer, Gal Pissetzky, told Chicago ABC affiliate WLS that the charges are an attempt to get at Dolton Mayor Tiffany Henyard, who is the target of a federal investigation.

"The government and some people in Dolton have it out for the mayor. And so they decided to go and try to get to the mayor through other people that served under her," Pissetzky told the station.

The investigation found that Dolton is over $3.5 million dollars in debt and that credit cards for the city had been used to make unexplained purchases and fund travel under Henyard's watch. The credit card spending includes over $40,000 in purchases made on Jan. 5, 2023.

Lightfoot said that Henyard did not cooperate with the investigation in a presentation of the investigation's findings, according to WMAQ.