Ald. Patrick Daley Thompson (eleventh Ward) was indicted Thursday on seven expenses that he lied to federal financial institution regulators and filed false tax returns in reference to a federal probe of Washington Federal Financial institution for Financial savings, a Bridgeport financial institution that failed in 2017.
Daley Thompson, the grandson of former Mayor Richard J. Daley, and the nephew of former Mayor Richard M. Daley and Prepare dinner County Commissioner John Daley mentioned he was harmless of the costs and wouldn’t resign.
“My conscience is obvious,” Daley Thompson mentioned in an announcement launched by his lawyer Chris Gair. “I didn’t commit any crime, I’m harmless, and I’ll show it at trial.”
Daley Thompson is the second sitting member of the Chicago Metropolis Council to be charged with federal crimes. Ald. Ed Burke (14th Ward) has pleaded not responsible to 14 counts of corruption.
Mayor Lori Lightfoot, who campaigned on guarantees to root out corruption at Metropolis Corridor, didn’t instantly reply to query from WTTW Information about whether or not Daley Thompson ought to resign.
The indictment alleges that between 2011-14, Daley Thompson, 51, “falsely symbolize[ed] on 5 years of revenue taxes that he paid curiosity on cash he obtained from Washington Federal, despite the fact that he knew he didn’t pay curiosity within the quantities reported on the returns.”
Daley Thompson was elected to the Metropolis Council in 2015, and re-elected to a second time period in 2019. In 2012, he was elected to the Metropolitan Water Reclamation District, beginning his profession in politics. He’s additionally an lawyer with the agency of Burke, Warren, MacKay & Serritella.
“I’m, at the start, a public servant,” Daley Thompson mentioned. “The costs within the indictment don’t relate in any approach to my public service or to my skilled life. I stay one hundred pc devoted to serving the individuals of Chicago to the most effective of my means.”
Daley Thompson has not but been arraigned.
Daley Thompson mentioned he was “upset” by the indictment, which he mentioned stemmed from “inadvertent tax preparation errors and my incorrect reminiscence concerning the quantity of a private financial institution mortgage.”
Daley Thompson mentioned he paid what he owed in taxes when the “error” was found and repaid the mortgage earlier than the federal probe started.
The indictment alleges Daley Thompson “obtained $219,000 from Chicago-based Washington Federal through a purported mortgage and different unsecured funds.”
Daley Thompson made one re-payment on the mortgage however then stopped making funds, and he didn’t pay curiosity on the funds he obtained, in line with the indictment.
Washington Federal was shut down in 2017 by federal financial institution regulators after they decided it was bancrupt. When the Workplace of the Comptroller of the Foreign money tried to acquire compensation from Daley Thompson in 2018, he “falsely acknowledged that he owed solely $110,000 and that these funds had been for residence enchancment, when Thompson knew he had really obtained $219,000 and that $110,000 of it was paid by the financial institution to a legislation agency as Thompson’s capital contribution,” in line with an announcement from the Workplace of the United States Legal professional for the Northern District of Illinois.
Ten different individuals, together with a number of high-ranking former financial institution workers, have already been charged as a part of the continuing federal felony investigation into the failure of Washington Federal.
Every false assertion rely is punishable by a most sentence of 30 years in federal jail, whereas every tax rely is punishable by as much as three years. Nonetheless, if convicted, Daley Thompson is more likely to serve much less time in jail primarily based on sentencing tips.
The probe into Washington Federal was first revealed by the Chicago Solar-Instances in a collection of experiences starting in 2019.