Head of the police sergeants' union charged with stealing $600,000 from fund

Sgt. John Pallohusky (Chicago Police Sergeants Assoc. website)

The president of the Chicago Police Sergeants' Association (CPSA) is charged with stealing more than $600,000 from the group, allegedly to fund gambling trips, a Sauganash house, stays at downtown hotels and meals at expensive restaurants.

Sgt. John Pallohusky, 53, was arrested at his home this morning following an investigation by Chicago Police and the Cook County State's Attorney's office.

Prosecutors say Pallohusky wrote checks to himself from the Association's bank account. He would then allegedly launder the money through his credit card and 12 personal bank accounts.

Authorities are moving to seize funds from those accounts, as well as funds from two Ameritrade trading accounts, his Chicago homes and a vehicle, according to a joint press release from The Cook County State's Attorney's Office and the Chicago Police Department.

Pallohusky most recently was working in the Area 4 Violent Crimes Division. He joined the department in 1988 and made the rank of sergeant in 2000.

He's been the president of the CPSA for several years. The Association is described as both a fraternal organization and a labor union for active, inactive and retired Chicago police sergeants. Active members pay $50 union dues each month.