A grand jury on Monday indicted former Dolton deputy police chief Lewis Lacey on bankruptcy fraud for allegedly concealing assets and income from creditors as well as preventing payment of a lawsuit settlement, 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 petitions in 2019 and 2020. The recent petitions automatically stayed enforcement of a settlement agreement Lacey had reached in 2017 with the plaintiff in a lawsuit in state court.
Lacey filed a bankruptcy petition 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, the indictment alleged.
The indictment alleged that Lacey made several false and fraudulent representations in oral statements and documents submitted in the bankruptcy cases, including underreporting his monthly income and concealing bank accounts. Lacey also falsely represented that he was separated from his spouse and that she did not reside with him or contribute to his monthly income and mortgage, which allowed Lacey to fraudulently calculate his monthly income, officials said.
The indictment comes days after an investigation into Dolton's finances led by former Chicago mayor Lori Lightfoot revealed a widespread pattern of misused funds and significant debt.
The probe examined the village's finances and spending habits of Mayor Tiffany Henyard's administration, which is the subject of multiple lawsuits and complaints.
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