PHOENIX — The Phoenix Police Department said Wednesday that one of its former officers has been arrested by the FBI for allegations of fraud.
Officer Toni Richardson resigned from the agency shortly after the city was notified by federal authorities of its criminal investigation into the officer.
Court records show Richardson is accused of using her business to fraudulently obtain $1.2 million in COVID-19 relief from the federal government.
Richardson and an accomplice claimed their business, The Lotto Club, needed a government loan during the pandemic to support its 85 employees and a monthly payroll of $500,000.
But the FBI claims the Lotto Club had no employees and no payroll.
The defendants allegedly transferred the government funds to bank accounts they controlled and spent the money on personal expenses. Some of the funds were transferred to an account for TLR Housing Phoenix, a separate business managed by Richardson, court records show.
Phoenix police has already condemned the allegations made against Richardson.
"The city of Phoenix takes allegations of criminal conduct by our employees very seriously," the city wrote in a statement. "The alleged actions of this employee go against the core values of the city and everything we stand for as public servants."
According to a social media post written by Phoenix police in 2017, Richardson previously worked as a corrections officer and an overseas contractor before joining the police force.
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