The Illinois State Comptroller took the unusual step Thursday of withholding some funds from the troubled village of Dolton, his first such move to blame scandal-scarred Tiffany Henyard, the self-described “super mayor” who told officers to follow the orders of a disgraced department colleague who has been indicted and placed on administrative leave.
State Auditor Susana Mendoza said she would immediately suspend all “offset” payments normally given to municipalities because Dalton leader Henyard has “refusal” to submit financial reports to the state.
The village was due to receive $135,000 in revenue this year, but could face fines if the problems persist. If the issues are resolved, auditors will resume payments.
Mendoza said her office tries to help municipalities struggling to submit required annual reports, but “Dolton is different.”
“The mayor’s office has refused to communicate with us or address the issue,” she said in a statement. “If Mayor Henyard refuses to follow state law, my office will use all tools at our disposal to protect the interests of the citizens of Dolton.”
The auditor said the village failed to submit reports to the auditor’s office in 2022 and 2023.
According to a spokesman for the state comptroller, the state collects “offset” funds by withholding a portion of residents’ income tax returns and lottery winnings when they fail to pay parking or speeding fines at the local level.
Those funds will then be redistributed to municipalities, according to the office.
State officials have made it clear that they will not release any funds to Dalton, which is already facing financial difficulties, until it brings its financial records into compliance.
But if officials don’t release the records, the village could face penalties totaling $78,600 for the delinquent documents, the auditor’s office said.
Henyard, who was elected in 2021, has faced growing allegations of misconduct during his time in office, including misappropriation of taxpayer funds. Federal investigators reportedly issued subpoenas for financial information and documents related to Henyard and the village earlier this year as part of their investigation.
“A stupid game”
Henyard’s associate within the police department, Deputy Chief Louis Lacey, was indicted Monday in federal court on bankruptcy fraud and other charges, but the criminal case has no connection to the village.
Prior to the indictment, Henyard was placed on administrative leave last week by board members opposed to him, but a lawyer for the board reportedly said he would continue in his role.
Confusion over his employment status continued this week.
Henyard on Thursday ordered officers to follow Lacey’s orders. According to a video obtained by WGN.
“Stop playing this stupid game,” Henyard can be heard saying.
Lacey warned officers to follow suit, according to the station.
“Do what you like, but anything after that is disobedience,” he said.
But in an email to police officers, Village Manager Keith Freeman said Lacey is no longer employed by the village.
“Mr. Lacey is not permitted in employee-only areas with an escort,” he said, according to WGN.
Last week, former Chicago Mayor Lori Lightfoot revealed that the village’s finances were in ruins under Henyard’s leadership, including spending $43,000 a day on Amazon.
The withdrawn funds are Local CBS report Henyard claims he is nowhere to be found this week, but trustees told The Post on Thursday that this is not the case.
“I don’t think she’s missing. [the] That’s what the news is reporting. She is active on social media and attended the conference today, [the] “The report is outstanding,” board member Kiana Belcher said of the Lightfoot report.
The auditor’s office also cited an undated email from the Dolton village clerk alleging that Freeman did not authorize department heads to relay information to the clerk’s office when residents requested village records or documents.
Freeman was indicted by federal authorities earlier this year on bankruptcy fraud charges unrelated to village business. Henyard said this month that he had been fired, but trustees opposed to him argue he has no sole authority to make personnel changes.
WGN reports that Freeman was an ally of Henyard before the two men fell out.
