The head of CPD's drug squad is a finalist for police chief in Iowa – and is carrying a mountain of debt

A Chicago police commander for major drug investigations was struggling earlier this year with nearly $840,000 in debts, including more than $30,000 in taxes he owed the IRS, according to bankruptcy documents.

Joshua Wallace, 50, is one of two finalists to be the next police chief in Des Moines, Iowa. On Wednesday, the Des Moines Register newspaper first reported Wallace's bankruptcy filing in February.

Records show Wallace earned $181,000 from the Chicago Police Department last year. Last year, he was selected as commander of the department's Criminal Networks Group, a unit that oversees joint drug and gang operations between CPD's Counterterrorism Bureau and federal and local law enforcement agencies.

His debt raises questions because the CPD in the past routinely checked the credit history and financial background of officers investigating drug trafficking, law enforcement sources said.

They said large debts could be a disqualifying factor because an officer may be able to steal money from police funds seized in drug cases to pay off debts. Police applicants with large amounts of debt are often denied entry to the training academy, city records show.

“An official could have $10,000 in student loan debt and he discloses it and we were OK with that,” said a senior former department official. “It's a decision. But almost a million in debt? I don’t know anything about that.”

No one has accused Wallace of any wrongdoing.

In a brief interview, Wallace said he was “not aware” whether his police superiors knew about his debt before he started his current job on September 1, 2023. About six months later, on February 29, he filed for bankruptcy.

“It's a personal matter that was the best option for me when I was going through a difficult divorce,” Wallace said Thursday. “The debt has been restructured and will be repaid. It’s unfortunate, it’s embarrassing and it’s personal.”

A CPD spokesman declined to comment.

That year, Wallace also applied for the police chief position in Austin, Texas. A Cincinnati police officer got the job in August.

In February, Wallace hired the prominent Geraci law firm to file a federal bankruptcy petition, noting he was $839,735 in debt. His largest liability is the $452,000 mortgage on his $364,000 Beverly home, the filing said.

He also owed $236,000 in student loans and about $95,000 to credit card companies and banks. JPMorgan Chase Bank sued him in Cook County court last year to collect a $23,000 credit card debt. Due to the bankruptcy filing, the bank dropped the lawsuit.

Wallace, a former commander of the Wentworth District on the South Side, had assets of $565,000, according to his bankruptcy filing.

Contributor: Tom Schuba