Evansville Police Department Supervisors Charged Following Extensive Fraud Investigation

EVANSVILLE, IN — The Evansville Police Department is facing a significant internal reckoning following the arrest and formal charging of two of its own senior officers. On Monday, Lieutenant Stacy L. Shirley and Sergeant William “Bill” C. Shirley were each charged with Corrupt Business Influence (Racketeering), Official Misconduct, and multiple counts of Fraud after an internal and criminal investigation revealed a pattern of deception involving their off-duty employment.

The investigation, which began in May 2025, was prompted by allegations concerning the Shirleys’ secondary employment with the Evansville Housing Authority (EHA). Both officers were placed on administrative leave at the outset of the inquiry, which has since uncovered a disturbing pattern of fraudulent conduct and abuse of public trust.

According to findings released by the department, Bill Shirley, who managed off-duty security scheduling for the EHA, regularly submitted fraudulent time sheets, reporting hours he did not work—including hours that overlapped with his on-duty EPD schedule. His wife, Lt. Stacy Shirley, was also found to have claimed payment for hours she did not work while supposedly fulfilling off-duty security responsibilities. Investigators confirmed these discrepancies through GPS tracking data and cell phone records, which placed both officers at different locations during the times they claimed to be working.

The probe expanded to include their off-duty employment with Dillard’s, a retail department store. Surveillance footage, timesheets, and payroll data revealed that Bill Shirley frequently clocked Stacy in for shifts she did not work, often while she was on active duty with EPD. In a troubling additional discovery, Lt. Stacy Shirley was also found to have regularly failed to complete her scheduled shifts at EPD—without logging paid time off, essentially receiving full pay for time not worked.

Following these revelations, the Shirleys’ administrative leave status has been changed to unpaid. An arrest warrant was issued through the Vanderburgh County Prosecutor’s Office, and both officers were given the opportunity to turn themselves in.

“The behavior uncovered in this investigation is not just disappointing—it’s a breach of the public trust and a serious violation of the values we are sworn to uphold,” said an EPD spokesperson. “No one is above accountability, especially not those in leadership positions. We are committed to transparency, and to restoring community confidence.”

The case now rests with the Vanderburgh County legal system, and further disciplinary action—including potential termination of employment—will be reviewed by the Evansville Police Merit Commission. The EPD has also announced intentions to conduct a full audit of off-duty employment procedures and oversight mechanisms to prevent similar misconduct in the future.

As the legal process unfolds, the Evansville Police Department continues to cooperate with prosecutorial authorities and is urging the public to maintain trust in the vast majority of officers who serve with integrity.

This remains an active and developing case. Additional details will be provided as they become available.