Former Dolton deputy police chief indicted on bankruptcy fraud charges pleads not guilty

CHICAGO - The former Dolton deputy police chief was indicted Monday in Chicago on bankruptcy fraud charges.

Lewis A. Lacey, 61, of Matteson, Illinois, is accused of concealing assets and income to avoid paying creditors and settling a lawsuit.

Lacey faces a nine-count indictment, which includes charges of bankruptcy fraud, making false statements in a bankruptcy case, and perjury. Each count carries a maximum sentence of five years in prison.

On Thursday, Lacey pleaded not guilty.

The indictment alleges that Lacey, who has purportedly filed multiple bankruptcy cases since the 1980s, submitted fraudulent petitions in 2019 and 2020 to halt the enforcement of a $55,000 settlement agreement from a 2017 lawsuit. The plaintiff in that case accused Lacey of still owing $43,000.

Prosecutors claim Lacey underreported his monthly income, concealed bank accounts, and falsely stated that he was separated from his spouse to lower his repayment obligations.

At the time of the alleged fraud, Lacey was serving as a police officer with the Dolton Police Department.

Just last week, Lacey was fired from the police department during a contentious village board meeting involving Mayor Tiffany Henyard. Trustees cited the need to reduce payroll as the reason for his termination.

He is now the second Dolton administrator close to Mayor Henyard who’s been hit with bankruptcy fraud charges. Village manager Keith Freeman is also facing those charges.