A Dolton police officer is accused of fraudulently receiving thousands of dollars in federal Paycheck Protection Program loans for his Off Duty Security business.
William Frederick Reed of Hazel Crest was charged Monday with providing false statements to the federal Small Business Administration, bankruptcy fraud, concealment or destruction of bankruptcy records, failure to file a tax return and perjury on tax returns.
PPP was a federal loan program implemented by the SBA to provide financial relief to small businesses and nonprofits during the COVID-19 pandemic.
Prosecutors said Reed fraudulently applied for three PPP loans by falsifying the monthly payroll of his Off Duty Security private security business. They said he received $5,862 in June 2020, $5,862 in March 2021 and $5,860 in May 2021.
Based on his 2019 income tax return, Reed would not have qualified for a PPP loan, prosecutors said.
Reed, who is also a full-time police officer with the Dolton Police Department, also allegedly lied about his income on his 2021 tax return. He told the IRS his total income that year was $49,739, though he actually made much more, prosecutors said.
Prosecutors said that Reed also filed for bankruptcy in March 2022 and provided fake documents to hide the fact that he had gotten the PPP loans and failed to file an income tax return last year despite making $189,092 as a police officer.
The Dolton Police Department did not respond to a request for comment.
