A suburban Chicago police officer is facing federal charges after allegedly getting COVID-19 relief loans through fraud and concealing the funds during a bankruptcy case.
William Frederick Reed, 41, of Hazel Crest, has been charged with making false representations on Small Business Administration loan applications, bankruptcy fraud, and tax-related offenses.
Reed apparently worked as a police officer in the south suburbs of Dolton and Robbins, as well as owning a self-employed security service.
According to a federal indictment released Monday in U.S. District Court in Chicago, Reed sought and obtained three Paycheck Protection Program (PPP) loans in 2020 and 2021 by intentionally inflating payroll data for his security company.
The indictment claims that Reed not only misrepresented the size of his business to qualify for the loans but also attempted to conceal the cash when he filed for Chapter 7 bankruptcy in 2022. Prosecutors allege that he submitted phony paperwork and a fraudulent tax return to evade attention from bankruptcy trustees and creditors.
Reed is also accused of underreporting his income in 2021, misrepresenting tax withholdings, and failing to file federal income tax returns in 2022 and 2023.
The date for Reed’s arraignment has not yet been set.
The Department of Justice continues to look into pandemic-related fraud. Tips can be submitted to the National Center for Disaster Fraud at 866-720-5721 or online.