Dolton

High-ranking Dolton official pleads not guilty to bankruptcy fraud

"We have had a couple of questions about whether or not this indictment means that the government is trying to squeeze Mr. Freeman into cooperation. I think that is a better question put to the government."

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During his first appearance in federal court, a top advisor to Dolton's mayor on Wednesday entered a not guilty plea to an alleged scheme to commit bankruptcy fraud.

Keith Freeman, the Dolton village administrator and manager of Thornton Township, is accused of underreporting income from his jobs and from his private consulting business on his personal bankruptcy petition.

"We are ready to defend with everything we have anything that comes Mr. Freeman's way," said Josh Herman, Freeman’s defense attorney.

Herman said Freeman has no plans to step down from his positions. He also maintains that this case has nothing to do with any other federal investigations.

"We have had a couple of questions about whether or not this indictment means that the government is trying to squeeze Mr. Freeman into cooperation. I think that is a better question put to the government," Herman said.

Freeman was indicted last week. A few days later, the FBI served two subpoenas at Dolton's village hall.

Renato Mariotti is a former federal prosecutor. We reached out to him to find out what he thought about recent developments in the village.

"There appears to be an active federal investigation, and it certainly looks like the feds have something. They are not just fishing," Mariotti said.

Dolton’s government is marred in accusations of misspending, lawsuits and probes. This week, Mayor Tiffany Henyard and Freeman were hit with another lawsuit, this one filed in federal court by business owner Tyrone Isom Jr.

"I was really excited when I came across that property ... cause I was waiting to put my stamp on Dolton so I could help the youth," Isom said.

Numerous questions remained late Friday in Dolton after the FBI descended on the area surrounding village hall for unspecified “court-ordered law enforcement activity.” NBC Chicago’s Natalie Martinez reports.

Isom purchased a vacant building on Sibley Boulevard for $85,000. He said he remodeled it, first hoping to open a barber shop, then a tattoo shop. But he claims his applications for business licenses were denied with no explanation as to why.

"Despite doing everything he was asked to do and spending his hard-earned money and savings into this property and into licenses and trying to start a second business, he was told nope the mayor wants the property," said Gregory Kulis, Isom’s attorney.

Unable to open a business, Isom said he was forced to sell the property. He’s seeking compensatory damages plus attorney’s fees. The village declined to comment on the lawsuit.

As for village administrator Keith Freeman, he is due back in court June 5 for a status hearing.

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