Chicago Police Move to Dismiss 17 Officers After Inspector General Uncovers Widespread PPP Loan Fraud

Chicago, Illinois, United States of america — Seventeen members of the Chicago Police Department are facing termination after an internal investigation found they allegedly fraudulently obtained federal relief funds designated for struggling businesses during the COVID-19 pandemic, the city’s inspector general confirmed Wednesday.

Inspector General Deborah Witzburg reported that, in the first quarter of the year, investigators determined that these officers had improperly sought and received funds through the Paycheck Protection Program (PPP), which was intended to help small businesses survive disruption caused by the pandemic. The police department is moving forward with termination proceedings for the 17 officers. One additional officer resigned while under review.

The fraudulent activity attributed to nine of the officers amounted to approximately $284,000 in misappropriated funds, according to Witzburg’s latest quarterly report. For eight other officers where allegations were also sustained, decisions about possible dismissal have not yet been made.

Witzburg stated the investigation into officer misconduct was prioritized due to the critical public trust vested in police officers and their key role as witnesses in criminal proceedings. The inspector general also issued a warning that further scrutiny into PPP loan fraud among city employees would continue.

Previous investigations by Witzburg’s office, dating back to 2023, flagged over 1,000 potential instances of PPP fraud involving municipal employees, including police and firefighters. Earlier findings by the inspector general revealed that certain officers received PPP loans for non-existent businesses, taking advantage of federal programs that were often fully forgiven.

In separate legal actions, former police officers Torrey Price and Aaron Price are facing federal charges for allegedly orchestrating a larger fraud scheme involving over $2 million in bogus relief loan applications attributed to PPP and other aid programs.

Nationally, pandemic-era relief programs were plagued by extensive fraud, exposing vulnerabilities that allowed both public employees and inmates to access funds illicitly. In one related case, Jareli Reyes, a Cook County jail guard, was acquitted of PPP fraud charges by a judge last year.

As of now, the investigation by the city’s inspector general remains ongoing, and further disciplinary measures are possible as reviews continue.