Illinois police official indicted on bankruptcy fraud charges

CHICAGO, Ill. (WTVO) – An Illinois police official faces charges of bankruptcy fraud after authorities say he allegedly engaged in a scheme to conceal assets and income.

Deputy Chief Lewis Lacey of the Dolton Police Department is charged with bankruptcy fraud, making false statements and declarations in a bankruptcy case, and perjury.

According to an indictment, 61-year-old Lacey, since the 1980s, has filed numerous personal bankruptcy cases in the U.S. Bankruptcy Court for the Northern District of Illinois, including petitions in 2019 and 2020.

Lacey’s recent bankruptcy petitions automatically stayed enforcement of a settlement agreement Lacey had reached in 2017 with a person who was suing him.

The indictment alleges that Lacey filed the 2019 bankruptcy petition shortly after the plaintiff moved to enforce a settlement agreement, accusing Lacey of still owing $43,000 of a $55,000 settlement.

The indictment alleges that Lacey made several materially false and fraudulent representations in oral statements in his bankruptcy cases, including underreporting his monthly income and concealing bank accounts that he controlled.

Authors also allege estate Lacey 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. That representation allowed Lacey to fraudulently calculate his monthly income for purposes of repayment of his creditors as substantially less than it should have been if his spouse’s contributions were included, the indictment states.

An arraignment date has not been set.

Lacey was fired from the Dolton Police Department earlier this month.

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