The Illinois State Comptroller Office has stopped some funds being allocated to the Village of Dolton over its alleged failure to submit financial records, the latest twist in an ongoing saga where controversial Mayor Tiffany Henyard has been accused of misdeeds, excessive spending and allegations of corruption.

The move comes amid reports that the self-described “supermayor” reappointed a fired deputy police chief to lead the department after he was indicted by a federal grand jury on bankruptcy fraud charges, while the state comptroller also says that Dolton’s village clerk informed the office that it had been ordered to not reply to any Freedom of Information Act (FOIA) requests.

Illinois State Comptroller Susana Mendoza has immediately suspended all “offset” funds to the village, saying it has been delinquent in annual reports including financial statements, audits, and Tax Increment Financing District reports over the last two years. Offset monies are collected from state payments that the comptroller’s office withholds from people who owe fines like traffic tickets or other payments to municipalities, including Dolton.

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“When municipalities around Illinois are having legitimate problems filing their annual reports with us, based on staffing or other issues, we earnestly work with them to get them into compliance,” Mendoza said in a statement. 

“Dolton is different. The Mayor’s office has refused to communicate with us or address the problem. If Mayor Henyard refuses to follow state law, my office will use the tools at our disposal to safeguard the interests of Dolton’s citizens.”

Mendoza said in the statement that her office has repeatedly notified Dolton of the delinquency over the last two years.

Last week, former Chicago Mayor Lori Lightfoot released her preliminary findings into the town’s finances, revealing that in April 2022, Dolton’s general fund balance was $5.61 million, but by May 2024, the balance had dropped to a deficit of $3.65 million. 

Lightfoot also disclosed that Henyard used the village credit card to make purchases at Amazon, Target, Walgreens, Wayfair and other retailers. One jaw-dropping statement revealed that the embattled mayor had dropped $33,000 on Jan. 5, 2023 on Amazon. 

Last year, the Illinois State Comptroller sent Dolton $120,000 in offset from state payments to residents such as income tax refunds and lottery winnings, Mendoza said. This year, the village is on track to receive about $135,000.

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The Illinois State Comptroller said that if Dolton continues failing to file reports, it will initiate forced audits and fines, per state statute.

“Our office can assess fines of approximately $7,000 per year per unfiled report, totaling $78,600 for Dolton as of today,” the statement reads. 

“That would be in addition to the roughly $135,000 the Village of Dolton could lose in offset fines our office sends the village on an annual basis if its administration does not resume filing reports.”

The village last filed its 2021 reports in 2022, but the 2022 and 2023 reports are unfiled and delinquent, the state comptroller says. 

The Illinois state comptroller also says that Dolton’s village clerk, Allison Key, emailed the auditing body to say she was told by administrator Keith Freeman that she cannot comply with FOIA requests. 

“Freeman has illegally removed me as FOIA officer without board of trustees’ knowledge or vote of approval,” Key wrote in the undated email. “He has continued to interfere with the FOIA process for the past 2 years.” 

Freeman was charged with bankruptcy fraud earlier this year, and he and Henyard have appeared to have a falling out, with Henyard saying earlier this month that he was fired, but trustees opposed the move. 

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Meanwhile, according to WGN, Henyard is reported to have told officers they are to continue obeying orders from former Deputy Chief of Police Lewis Lacey, who was indicted Monday by a federal grand jury on bankruptcy fraud charges, in a case unrelated to the town’s finances. He pleaded not guilty Thursday.

Separately, he has been accused of receiving more than $200,000 in overtime since 2022, per the outlet. 

Lacey was fired last week as the town’s deputy police chief to save costs during a contentious village board meeting involving Henyard, Fox 32 Chicago reports. 

“Stop playing these silly games,” Henyard was heard telling police officers on Thursday in a video obtained by WGN. Lacey then seemed to tell the assembled staff to fall in line or risk consequences. “Do what you want; but anything after this is insubordination,” he said per the outlet. 

The accusations of financial misdeeds in Dolton have prompted an ongoing FBI investigation. The reports have been a pressure point for the city, which has a population of slightly more than 20,000, according to a July 2023 estimate from the U.S. Census Bureau. She has been called a dictator by some locals.

Henyard, who typically speaks into a golden microphone at meetings, has also come under fire for an alleged sexual assault by one of her allies during a Las Vegas trip, where the alleged victim claims to have been fired after speaking out. Henyard’s cancer charity is also facing scrutiny while FOIA documents revealed she paid a stylist $7,650, over six transactions between April 6 and June 5, 2023.

Fox News Digital previously reported that Henyard has been living like a royal with a combined salary of nearly $300,000 — more than the state’s governor — despite the 23,000 residents of the Illinois town having a median income of $24,000.

In February, it was reported that the FBI was investigating Henyard after six people had reportedly spoken to the agency about her alleged misconduct, including “business owners, a former village employee and one or more public officials.” 

In April, the FBI served two federal subpoenas as part of an investigation. Henyard was not served.

The first one was for employment records, personnel files and disciplinary reports for 25 Dolton employees, including three police officers and Freeman.

The second subpoena was served specifically on Freeman, asking for records of all companies associated with him and possible ties to the village.

Fox News’ Sarah Rumpf-Whitten contributed to this report.