A Chicago police officer was arrested last week for allegedly stealing over $600,000 from the Chicago Police Sergeants Association. Sergeant John Pallohusky, President of the Association, is being charged with theft and money laundering.
The Cook County attorney's office allege that the money was spent personal items for Pallohusky. Where did the money go? Gambling trips to Las Vegas, a reported $163,000 on Ameritrade, a whopping $75,000 at Chicago restaurants, downtown hotel stays, and his home.
Police Superintendent Jody Weiss referred to the Sergeant as the "Bernie Madhoff" of the Chicago Police Department. Pallohusky's attorney, Robert Kuzas, stated that he believed in his clients innocence, stating; "I don't believe he misappropriated one penny of the union's money." Pallohusky is no stranger to crime; in 1989 he was arrested and subsequently plead guilty to a misdemeanor fraud charge over a petition drive to add a nonpartisan mayoral referendum to the ballot.
Cook County prosecutors sought to subponeae the treasurer of the Sergeants Association, Sgt. Mary O’Toole, and then discovered that she was Pallohusky’s wife. The Chicago Police Department's Internal Affairs department began the investigation in late summer after the bank noticed that large sums of money were being deposited into Pallohusky's private account from checks, and a credit card, drawn off the Union's account.