Police Officer Charged With Bankruptcy Fraud in Federal Court
Dolton, Ill. Police Chief (Acting) Lewis A. Lacey, 61, from Matteson, Ill., discovered this first-hand when he was indicted on Aug. 12 on charges of bankruptcy fraud, making false statements and declarations and perjury, according to a DOJ press release.
Between 1984 and 2019, Lacey has allegedly filed for bankruptcy seven times, filing his latest in 2019 after the plaintiff, in a 2017 settlement, filed a motion to enforce payment, according to the indictment. Lacey was sued in 2015 for $88,000 but settled in 2017 for $55,000. Lacey reportedly paid $12,000 of the settlement between 2017 and 2019, at which time the plaintiff filed to collect the rest of the settlement, according to court documents.
By law, Lacey was required to disclose all financial accounts, employers, and investments, as well as his and his spouse’s monthly income, prosecutors say. However, to prevent settlement enforcement, Lacey allegedly filed false statements about his living and mortgage expenses, his number of bank accounts, and the deposits going to each one. Lacey also allegedly reported being separated from his wife, whose income didn’t contribute to his monthly expenses and claimed his net income was $617. These claims allowed Lacey to be granted a stay from settlement enforcement.
In 2020, Lacey allegedly filed for bankruptcy again, reportedly claiming that his wife still lived in a different location, and he sought to discharge debts amounting to around $186,354.
Lacey denied the charges, pleading not guilty in his arraignment on August 15th, according to local news reporting.
This case sits in the shadow of another investigation involving the alleged mishandling of funds by Tiffany A. Henyard, the current Democratic Mayor of Dolton, which is allegedly over $3 million in debt, prompting former Chicago Mayor Lori Lightfoot to issue a report about Dolton’s debt, as reported by local news. Lightfoot is currently a special investigator for Charles River Associates, an advisory firm.
As of May 31, 2024, Dolton’s general fund has a negative $3,649,006 balance, with expenditures exceeding revenues for the past two fiscal years, as detailed in the Charles River Associates report.
Much of the overspending was attributed to overtime for the Village employees, and the Charles Rivers Associates report specifically named Lacey, alleging that he received $215,747 in overtime from 2022 through July 2024
Lacey’s attorney, Gal Pissetzky, maintains that Lacey has done nothing wrong and implies that the indictment and investigation is a witchhunt, according to local news reporting.
Lacey was indicted as part of an ongoing investigation, officials noted in the DOJ press release. All nine counts of the indictment carry a maximum sentence of five years in federal prison if convicted.
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