A grand jury on Monday indicted former Dolton Deputy Police Chief Lewis Lacey on bankruptcy fraud charges for hiding assets and income from creditors and preventing payment of a lawsuit, prosecutors said.
A nine-count indictment was returned against Lewis, with prosecutors announcing charges of bankruptcy fraud, making false statements and declarations in a bankruptcy case and perjury.
According to the indictment, Lacey has filed for personal bankruptcy numerous times since the 1980s, including filings in 2019 and 2020. The latest filings automatically stayed enforcement of a settlement agreement Lacey entered into in 2017 with plaintiffs in a state court lawsuit.
Lacey filed for bankruptcy in 2019 shortly after the plaintiff moved to enforce the 2017 settlement agreement, accusing Lacey of still owing $43,000 of the $55,000 settlement, according to the indictment.
The indictment alleged that Lacey made several false and fraudulent representations in oral statements and documents filed in the bankruptcy cases, including underreporting her monthly income and hiding bank accounts. Lacey also falsely represented that he was separated from his spouse and that she did not live with him or contribute to his monthly income and mortgage, allowing Lacey to fraudulently calculate her monthly income, officials said.
The indictment comes days later an investigation into Dolton’s finances led by former Chicago mayor Lori Lightfoot revealed a widespread pattern of misused funds and significant debts.
The probe examined the village’s finances and the spending habits of Mayor Tiffany Henyard’s administration, which is the subject of several lawsuits and complaints.