Dolton deputy police chief pleads not guilty to bankruptcy fraud charges

Dolton's acting police chief appeared before a federal judge and pleaded not guilty on Thursday to multiple charges of bankruptcy fraud and perjury , among others.

It was just the latest in an ongoing saga of controversy surrounding the Dolton village government.

Acting police chief Lewis Lacey made his initial appearance in court for his arraignment. The judge ordered that he turn in his gun and FOID card as a pre-trial condition.

In court, federal prosecutors laid out the nine-count indictment against Lacey, claiming he devised a scheme to defraud, by way of filing a bankruptcy in an effort to hide assets and income to avoid paying more than $40,000 in a lawsuit settlement that goes back nearly a decade.

Prosecutors said as part of the scheme, Lacey repeatedly lied about his monthly income and concealed multiple bank accounts that he controlled. He also lied, they said, about being separated from his wife. Lacey said he lived alone, which prevented creditors from going after her.

Lacey was charged with five counts of bankruptcy fraud, two counts of making false statements in a bankruptcy case, and two counts of perjury.

The federal indictment happened in the shadow of ongoing turmoil in the Village of Dolton where Mayor Tiffany Henyard has been under investigation for alleged misuse of village funds .

A recent report released by former Chicago mayor-turned special investigator Lori Lightfoot showed that the village had a staggering $3.5 million budget deficit. .

The report also highlighted how some village employees racked up overtime, specifically Lacey, who received almost $216,000 in overtime since 2022.

Despite Dolton trustees saying that Lacey is on unpaid administrative leave, his attorney maintained that his client was still on the payroll and is actively employed. The board voted earlier this month to place Lacey on administrative leave . Lacey's attorney also suggested the indictment was a witch hunt.

"Suddenly, now, that Lightfoot came out with with report, Mr. McGrath is ordering people not to give Mr. Lacey what is owed to him," said Gal Pissetzky, Lacey's attorney. "It's completely illegal."

If convicted, Lacey could face up to five years in federal prison for each count. He is due back in court on Oct. 1.