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Ex-Chicago Police lieutenant pleads guilty to tax fraud

Country Club Hills Police Chief ReginEvans leaves Monadnock building 2009 after speaking with attorney Terry Gillespie regarding Christopher Kelly case.

Country Club Hills Police Chief Regina Evans leaves the Monadnock building in 2009 after speaking with attorney Terry Gillespie regarding the Christopher Kelly case. | Tom Cruze~Sun-Times Media

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Updated: January 7, 2014 6:29AM

A former Chicago Police lieutenant pleaded guilty to tax fraud Thursday under a deal with prosecutors that likely spells bad news for his two high-profile alleged co-conspirators.

Erroll Davis, 52 — who quit his 27-year police career when he was indicted just two weeks ago — choked up in federal court as he admitted he’d failed to pay taxes on a $30,000 payoff he accepted to help a pal get her hands on an illegal property loan.

Though he didn’t name her, court papers make it clear the pal was disgraced former Country Club Hills Police Chief Regina Evans.

Evans — who’s awaiting sentencing in a separate state grant fraud case — hasn’t been charged in connection with the mortgage fraud she allegedly asked Davis to carry out.

But Davis’s plea deal turns up the heat on her because it requires Davis to cooperate with U.S. Attorneys if he wants to dodge a likely prison sentence of around 12 to 18 months.

The deal also is bad news for former banker Robert Michael, who prosecutor Megan Cuniff Church said helped Davis falsify a loan application so that Davis could buy an apartment building next to the South Side’s historic Regal Theater from Evans.

Michael, who last month pleaded not guilty to mortgage fraud, is the brother and longtime business partner of George Michael, an eccentric Lake Bluff multimillionaire who is expected to be the key government witness in the grisly upcoming trial of alleged extortion plotter Steven Mandell.

In court Thursday, Davis told Judge Samuel Der-Yeghiayan that prosecutors were “correct” to say that Robert Michael had walked him through the scam at his since failed bank, Citizen’s Bank, and when they alleged that Evans had asked him for help.

Evans needed Davis to pose as the buyer of the apartment building because she’d exhausted her credit and owed Robert Michael nearly $300,000, the feds allege.

Der-Yeghiayan delayed Davis’s sentencing so that he can continue to cooperate.


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