However, he was soon released on parole. He afterward served as sergeant major in Company D, 33rd Iowa Volunteer Infantry Regiment. According to the November 1903 Congressional Directory, Lacey was promoted to lieutenant and reassigned to Company C of that regiment, then "promoted to assistant adjutant-general on the staff of Brig.
However, he was soon given a reprieve. He subsequently held the position of sergeant major in Company D, 33rd Iowa Volunteer Infantry Regiment. In line with the November 1903 Congressional Directory, Lacey was promoted to lieutenant and reassigned to Company C of that regiment, then "promoted to assistant adjutant-general on the staff of Brig.