I know it used to be illegal here in IL. They can have second jobs as Security officers or what have you, but they're absolutely not allowed to wear their duty uniforms or carry their PD badges.
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That might work in a large city like Chicago where every cop does not know every other, but in a small town or small county sheriffs dept. where every LEO knows every other. Youre going to have the problem of youve got to cover your buddys butt.
It is simply a conflict of interest. A rent a cop is hired to provide security to an individual, a LEOs job is to enforce the law.