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East Central Reporter

Monday, October 14, 2024

Keith Freeman indicted on charges related to bankruptcy fraud scheme

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Edgar County Watchdogs, Inc. | Edgar County Watchdogs site

Edgar County Watchdogs, Inc. | Edgar County Watchdogs site

A federal indictment has been issued against Keith Freeman, a senior administrator for the Village of Dolton and Thornton Township in Illinois. The indictment accuses Freeman of engaging in bankruptcy fraud by making false statements to conceal assets and sources of income from creditors.

The U.S. Attorney's Office in Chicago announced that Freeman, 45, of Orland Park, is charged with one count of bankruptcy fraud. This charge carries a potential maximum sentence of five years in federal prison. Arraignment details have not yet been scheduled.

According to the indictment filed on January 3, 2024, Freeman submitted a Chapter 7 bankruptcy petition which included materially false information regarding his income and financial affairs. Allegations include underreporting income from his roles as Village Administrator for Dolton and Municipality Manager for Thornton Township, as well as fees from his consulting business. Additionally, it is claimed that he failed to disclose a significant claim by the Village of Robbins related to overpayments exceeding $90,000 during his tenure there.

Freeman allegedly provided a false Form 1040 for 2022 stating an income of $45,186 while knowing he had not filed an actual return for that year. His real income reportedly exceeded this figure significantly due to a $100,000 salary from Dolton alone.

On January 30, 2024, during testimony under oath at a creditors' meeting, Freeman allegedly misrepresented his employment status with Dolton and concealed subsequent payments deposited into an undisclosed bank account.

This case forms part of an ongoing federal investigation led by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Robert W. "Wes" Wheeler Jr., Special Agent-in-Charge at the FBI Chicago Field Office; Justin Campbell from IRS Criminal Investigation Chicago Field Office; and Ruth M. Mendonça from the U.S. Postal Inspection Service's Chicago Division.

The public is reminded that indictments are not proof of guilt and defendants are presumed innocent until proven otherwise in court proceedings where the government bears responsibility for proving allegations beyond reasonable doubt.

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