Associated Press - November 20, 2009 5:54 PM ET
CHICAGO (AP) - A Chicago police sergeant who heads a local sergeants association has been arrested on charges he stole more than $600,000 from the organization.
Sgt. John Pallohusky, president of the Chicago Police Sergeants Association - a labor and fraternal group - was arrested Friday and charged with theft in excess of $100,000 and money laundering.
Prosecutors allege Pallohusky made withdrawals and wrote checks payable to himself on the association's bank account. He allegedly laundered the proceeds to his personal credit card and bank accounts.
Authorities claim Pallohusky used the money to make frequent gambling trips to Las Vegas, buy a home in Chicago's affluent Sauganash neighborhood, service an Ameritrade account, stay frequently at downtown hotels and have dinner at Loop steakhouses.
Authorities say the investigation of the 53-year-old Pallohusky began last month after they received a tip.
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