Chicago Police Department Body Removal Contractor Sued Over Suspended License
A lawsuit alleges a former Chicago Police Department body removal contractor violated contract terms after her funeral director and embalmer licenses were suspended for failure to pay state income taxes. The case involves a $4.4 million contract and could impact how the city handles deceased person transportation.
Former Chicago Police Department Body Removal Contractor Had License Suspended Over Tax Evasion
The head of a small funeral company tasked with transporting dead bodies for the Chicago Police Department had her funeral director and embalmer license suspended last year over a failure to pay state income taxes, records show.
The license of Nakia Wallace-Harrison, president of Wallace-Harrison Funeral Home Inc., was suspended indefinitely in November 2025 by the Illinois Department of Financial and Professional Regulation, which cited her failure to file and/or pay Illinois state income taxes.
The lapse in licensing appears to violate the terms of the $4.4 million contract awarded last year to Wallace-Harrison Funeral Home, the subject of a newly filed lawsuit by the former contract holder, Allied Services Group.
The body removal contract stipulates that the contract holder must pay all taxes and obtain all licenses, certificates, and other authorizations required in connection with the performance of its obligations hereunder. Failure to do so is an event of default and may result in the termination of this Contract.
Further, the contract states that failure to have and maintain all professional licenses required by law to perform the Services will constitute an event of default.
Reached by phone earlier this week, Wallace-Harrison declined to comment on Allied's lawsuit but told the Tribune her company's work for the city has gone great.
Asked how many bodies her company has so far transported for CPD, Wallace-Harrison said that is not information that you would be privy to before ending the call.
Records from the city's procurement office show Wallace-Harrison Funeral Home has been paid more than $385,000 since it was awarded the contract, which runs through May 2030.
The lawsuit alleges the city terminated its contract with Allied more than a month before it was set to expire. Further, Allied claims the city awarded the contract to Wallace-Harrison despite obvious failings in its bid, including a skeleton crew staff, a failure to hold insurance and noncompliance with city rules governing women- and minority-owned businesses.
Allied alleged its contract with the city lasted until mid-August 2025, but Allied was prevented from performing body removal services after July 1.
Allied has also called for an injunction to stop Wallace-Harrison from continuing its body removal duties. Further, the company has also asked a judge to vacate the contract awarded to Wallace-Harrison and return it to Allied.
The first hearing in the case is scheduled for mid-July, court records show.
City and state business records show Wallace-Harrison Funeral Home is registered at 7751 W. Irving Park Road, where Rago Brothers Funeral Home has operated since 1990. Rago was not named in the lawsuit.
Company President Louis Rago told the Tribune that Wallace-Harrison Funeral Home used the facility until last December. Rago said it is not uncommon for associate funeral directors, such as Wallace-Harrison, to list their address at an existing funeral home and use that facility for their services and pay rent to the owner for whatever services they are going to get.
Last December, We asked her to no longer use our facility, Rago said, though he declined to say why.
"As a result of Defendant selecting WHFH when its inability to perform under the project was apparent from the deficiencies in the information it submitted as part of its bid, the City of Chicago is being underserved in the transportation of dead bodies to the medical examiner's office," the suit alleges.