Lewis Lacey, the acting deputy police chief in south suburban Dolton, has been indicted on federal bankruptcy fraud charges. The 61-year-old Matteson resident faces a nine-count indictment, including allegations of bankruptcy fraud, making false statements in bankruptcy proceedings, and perjury. In many cases, a Chicago bankruptcy lawyer can help people avoid common errors that could lead to legal action in personal bankruptcy cases.
Federal prosecutors allege that Lacey filed multiple personal bankruptcy cases since the 1980s, including in 2019 and 2020, to avoid paying creditors. One case allegedly sought to prevent enforcement of a $55,000 settlement from a 2017 lawsuit, of which $43,000 remained unpaid. The 2019 filing purportedly came after the plaintiff moved to enforce the settlement.
The indictment accuses Lacey of falsely claiming separation from his spouse to underreport his monthly income and mortgage contributions, enabling him to present a lower financial profile and evade creditors. Prosecutors contend that Lacey’s misrepresentations defrauded creditors while he was employed by the Dolton Police Department.
If convicted, Lacey faces up to five years in federal prison per count. His arraignment has not yet been scheduled.
Lacey’s attorney, dismissed the charges as a “witch hunt,” alleging they are part of a broader effort to target Dolton Mayor Tiffany Henyard.
The indictment comes amid broader scrutiny of Dolton’s finances. Recent reports revealed Lacey earned over $200,000 in overtime across four fiscal years and was terminated by the board of trustees following allegations of departmental mismanagement. Despite termination, Lacey continued reporting to work, contesting the board’s authority.
Lacey is the second Dolton official charged in federal bankruptcy cases this year, following allegations against Keith Freeman, a senior village and township administrator, as part of ongoing investigations into Henyard’s administration.
How Can A Chicago Bankruptcy Lawyer Protect You From Bankruptcy Fraud?
A Chicago bankruptcy lawyer plays a crucial role in protecting individuals and businesses from bankruptcy fraud, ensuring that the bankruptcy process is handled legally and ethically. Bankruptcy fraud occurs when someone intentionally hides assets, provides false information, or makes fraudulent claims to benefit from bankruptcy proceedings.
A skilled attorney can help clients avoid making mistakes that might lead to accusations of fraud. They will thoroughly review all financial documents, including debts, assets, income, and expenditures, to ensure full transparency. By advising clients on the legal obligations to disclose all relevant financial information, a lawyer can help avoid inadvertent omissions that could lead to legal trouble.
Your lawyer identifies potential risks or signs of fraud that could jeopardize a bankruptcy case. They can guide clients on which assets are protected under state and federal laws and ensure that no illegal transfers are made prior to filing. If fraud is suspected, an experienced lawyer will defend clients against accusations, helping them navigate any investigations and protect their rights.
Ultimately, hiring a bankruptcy lawyer helps clients understand the legal complexities of the bankruptcy process, reduces the risk of fraud, and ensures that the proceedings are handled correctly and fairly. If you need help with personal bankruptcy in Illinois, the attorneys at Therman Law Offices, LTD, can help you learn which option, Chapter 7 or Chapter 13, is right for you. We review your filing, ensuring that you understand your fiduciary duty to fulfill any debt repayment obligations, so you can avoid any suspicion of fraud. Call today to get started.