A federal grand jury has charged an Illinois police officer with bankruptcy fraud and perjury.

Deputy Chief Lewis Lacey from the Dolton Police Department is facing nine allegations, including bankruptcy fraud, providing false statements in bankruptcy proceedings, and perjury. Each count could result in a maximum prison sentence of five years.

Lacey, who is 61 years old, is accused of underreporting his earnings, hiding bank accounts, and making numerous significant false claims in various bankruptcy filings since the 1980s, according to a statement from federal prosecutors.

Prosecutors also claim Lacey lied about his marital status, asserting that he and his wife were living apart and that she was not financially contributing to the household. These allegations date back to Lacey’s service as an officer before he was promoted to deputy chief.

Lacey isn’t the first Dolton official to face bankruptcy fraud allegations; Keith Freeman, a senior administrator from the village, was indicted earlier in April.

An arraignment date for Lacey has not been established, and he continues to assert his innocence through his legal representative.

Federal Charges Arise Amid Local Financial Crisis

This indictment arrives as the Dolton Village Board is probing the city’s financial situation.

The inquiry, led by former Chicago Mayor Lori Lightfoot, uncovered several instances where a small group of police officers received excessive overtime pay. Specifically, Lacey collected over $215,000 in overtime from 2022 to June of this year. Additionally, it was revealed that the city hasn’t compiled an annual report or conducted an audit since 2021.

Lacey, who had been serving as Dolton’s acting police chief, was placed on administrative leave and subsequently terminated last week, as reported by Chicago NBC affiliate WMAQ-TV.

Lacey’s lawyer, Gal Pissetzky, commented to Chicago ABC affiliate WLS that these charges aim to undermine Dolton Mayor Tiffany Henyard, who is currently under federal scrutiny.

“The government and certain individuals in Dolton are targeting the mayor. Consequently, they have chosen to go after others who worked with her,” Pissetzky stated to the news outlet.

The investigation revealed that Dolton is over $3.5 million in debt, and city credit cards were misused for unaccounted purchases and travel expenses under Henyard’s administration. Among these expenditures, over $40,000 was spent on January 5, 2023.

Lightfoot indicated that Henyard did not cooperate with the inquiry during the presentation of the findings, according to reports from WMAQ.