South Suburban Police Officer Lied To Get COVID-Era Business Loans: Authorities

HAZEL CREST, IL — A south suburban police officer faces several charges after lying to get coronavirus pandemic-era relief loans and then hiding them when he filed for bankruptcy, according to authorities.

An indictment was returned Monday in U.S. District Court charging William Frederick Reed, 41, of Hazel Crest, with making false statements in U.S. Small Business Administration loan applications, bankruptcy fraud and tax offenses, according to the U.S. Attorney’s Office.

Reed — who worked as an officer in Dolton and Robbins and was self-employed as a security guard — in 2020 and 2021 applied for and obtained three Paycheck Protection Program loans intended to provide relief for small businesses during the pandemic, authorities said. Reed falsely represented his qualifications to receive the loans based on inflated and falsified average monthly payrolls for his off-duty security job, according to the office.

In 2022, Reed filed a Chapter 7 bankruptcy petition, but during the case he made false statements and provided false documents to hide the loans, authorities said, adding he submitted a fraudulent 2021 individual income tax return to prevent further inquiry into his finances. Reed is accused of underreporting income and falsifying withholdings in his 2021 return, and failing to file individual returns in 2022 and 2023, according to the office.