Dolton deputy police Chief Lewis Lacey, an ally of Mayor Tiffany Henyard, indicted on federal chapter fraud expenses

Dolton police Deputy Chief Lewis Lacey, a powerful ally of embattled Mayor Tiffany Henyard, was indicted Monday on federal chapter fraud expenses alleging he lied underneath oath in a scheme to cover property and revenue from collectors to keep away from paying greater than $40,000 in a lawsuit settlement.

The nine-count indictment returned towards Lacey in U.S. District Court docket charged Lacey, 61, of Matteson, with chapter fraud, making false statements and declarations in a chapter case and perjury. Every rely carries a most sentence of 5 years in jail.

An arraignment date has not but been scheduled.

Although unrelated to his duties in Dolton, Lacey’s indictment is the most recent shoe to drop in a burgeoning federal investigation into alleged corruption by Henyard, the longtime mayor who has been named in a slew of federal subpoenas served earlier this 12 months on the Village Corridor.

In a press release to the Tribune on Monday, Lacey’s legal professional, Gal Pissetzky, mentioned the fees had been the results of a “witch hunt” geared toward Henyard.

“Mr. Lacey has been serving the neighborhood of Dolton for years,” Pissetzky mentioned. “He is a wonderful police officer and has been an upstanding chief of police. … It is a witch hunt the place they’re taking down Mr. Lacey to attempt to get to the mayor.”

Trustees final week voted to put Lacey on administrative go away for an undefined interval. After the assembly, Trustee Jason Home mentioned the board had acquired some details about the deputy chief that must be investigated, and that “we’d count on it to be enforced.”

Burt Odelson, an legal professional for the trustees, mentioned Monday that Lacey continued reporting for work after being positioned on go away.

In response to the indictment, Lacey has filed quite a few private chapter circumstances in Chicago starting within the Eighties.

Two latest petitions filed in 2019 and 2020 mechanically stayed enforcement of a settlement settlement Lacey had reached in 2017 with the plaintiff in a lawsuit in state court docket, the indictment alleged.

The lawsuit concerned a lady whose husband was killed in Dolton in 2012. In response to the swimsuit, Lacey visited the girl and satisfied her to provide him tens of 1000’s of {dollars} from her husband’s life insurance coverage payout.

Lacey acknowledged in court docket papers that he “expressed sympathy” for the girl and visited her every so often to “inquire about her security and well-being,” however he denied taking any cash.

After the lawsuit settled for $55,000, Lacey made preliminary funds within the quantity of $12,000, however in keeping with the fraud expenses, he twice filed for chapter to keep away from paying the extra $43,000.

In filings and statements made underneath oath to the chapter court docket, Lewis underreported his month-to-month revenue and hid financial institution accounts that he managed, in keeping with the fees.

Among the many lies was that he was separated from his spouse and that she didn’t reside with him or contribute to his month-to-month revenue and mortgage, the indictment said. These lies allowed Lacey to considerably understate his month-to-month revenue and keep away from collectors, in keeping with the fees.

The costs had been much like these brought in April against Keith Freeman, a longtime aide to Henyard, who was accused of constructing false statements in his chapter petition filed earlier this 12 months to hide from collectors his property and sources of revenue and a major declare towards him.

Freeman, 45, of Orland Park, has pleaded not responsible, and a standing listening to in his case is ready for Wednesday.

Final week, Henyard told spectators on the month-to-month Village Board assembly that Freeman, the village’s administrator, had been fired, though trustees mentioned the mayor lacked the authorized authority to take action and didn’t transfer to help her choice.

When she requested trustees to make a movement to help her choice, the 5 trustees current had been silent.

Trustee Kiana Belcher made a movement to adjourn the assembly, and Henyard dominated the trustee was out of order, then mentioned, “Keith Freeman is fired from the village of Dolton.”

Moments later, apparently speaking to TV cameras or the digital camera recording the village’s livestream of the assembly, Henyard mentioned, “Keith Freeman, I do know you’re watching, you now not work for the village of Dolton.”

Freeman, the highest aide to Henyard as Thornton Township supervisor, was dismissed from the township position final month.

Earlier this 12 months, the board employed former Chicago Mayor Lori Lightfoot to do her personal probe of Henyard and her administration. Lightfoot shared her preliminary findings in a public assembly final Thursday.

The Day by day Southtown’s Mike Nolan contributed.