Cop Embezzled Cop Funds, Say Cops

Hundreds of thousands of dollars stolen from Chicago Police Sergeant's Association, authorities say

By BJ Lutz
|  Friday, Nov 20, 2009  |  Updated 3:35 PM CDT
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A Chicago police sergeant has been accused of stealing hundreds of dollars from the department's Segeant's Association, the Chicago Tribune is reporting.

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The head of the Chicago Police Sergeant's Association was arrested Friday morning, accused of stealing hundreds of thousands of dollars from the union's fund.

Money laundering and theft charges were filed against Sgt. John J. Pallohusky following an investigation by the Cook County state's attorney's office and Chicago police.

The 53-year-old embezzled more than $600,000 from the association, authorities said.

"Any theft by a member of law enforcement is appalling and something we will prosecute to the fullest extent of the law," said Cook County State’s Attorney Anita Alvarez. "But the fact that this officer was essentially stealing from his fellow police sergeants make this crime even more shocking and deplorable."

Prosecutors said Pallohusky would steal the funds by making withdrawals and writing checks to himself.  He'd then launder the money through his personal credit card and bank accounts and use it for personal purposes, including gambling trips to Las Vegas, the purchase of a home and frequent stays at downtown Chicago hotels and restaurants.

Pallohusky last month voted against a new five-year contract that could have frozen sergeants' pay through 2012, the Chicago Sun-Times reported.

Pallohusky joined the Chicago Police Department in 1988 and was promoted to sergeant in 2000. 

The Chicago Police Sergeant's Association acts as a fraternal organization and a labor union, and its membership is comprised of active, inactive and retired Chicago police sergeants.
 

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