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Report: IRS Says Betty Loren-Maltese Owes Over $238,000

Former Cicero town president Betty Loren-Maltese is all smiles Friday as she holds a weekend-long garage sale of her possessions. (CBS)

Former Cicero town president Betty Loren-Maltese is all smiles Friday as she holds a weekend-long garage sale of her possessions. (CBS)

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CHICAGO (CBS) — Former Cicero town president Betty Loren Maltese is suffering from a new legal headache.

As WBBM Newsradio’s Regine Schlesinger reports, Maltese went to prison for 6 1/2 years on a 2002 corruption conviction, and her property was sold off to pay restitution.

LISTEN: WBBM Newsradio’s Regine Schlesinger reports

But a separate tax case ended in a mistrial, and prosecutors dropped the charge.

Now, Chicago Sun-Times columnist Mark Brown reports a tax judge has ruled Maltese owes the Internal Revenue Service $238,399 in disputed income from back in 1994.

Maltese says she does not have the money, the Sun-Times reports. She is on Social Security and living in a rented apartment.

Maltese tells Brown the IRS seems to think she has money hidden all over the place, but she says, “That’s not true.”

In her federal criminal trial, prosecutors said president Loren-Maltese let Specialty Risk Management process all Cicero employee insurance claims for a 30 percent commission, which was funneled to mob boss Rocky Infelise.

Maltese served seven years, but maintained she never did anything wrong.

She has been seeking to have her conviction overturned, in hopes of regaining custody of her teenage daughter, Ashley, who lives with Loren-Maltese’s estranged sister in Alabama.