Feds Indict Bridgeport Ward Boss Patrick Daley Thompson

CHICAGO — Chicago Ald. Patrick Daley Thompson, the grandson and nephew of two Chicago mayors named Daley, was indicted Thursday, according to published reports.

Daley, who lives in the Bridgeport home of his grandfather the late Richard J. Daley, was charged in connection with a federal bank fraud investigation.

Thompson, 51, was charged with five counts of willfully filing a false income tax return and two counts of making false statements to the Federal Deposit Insurance Corp, according to charges filed in federal court Thursday.

The federal indictment is related to a federal investigation into the collapse of Washington Federal, which was shut down in 2017 after federal regulators found the bank was insolvent and had at least $66 million in nonperforming loans.

Thompson is accused of lying to the FDIC about how much money he owed Washington Federal. Prosecutors say between 2011 and 2014, Thompson received $219,000 in loans from the now-defunct bank and made one payment, and failed to pay interest on the cash he received. When the FDIC attempted to get Thompson to repay the loan, the alderman allegedly said he only owned $110,000 and the money was used for home improvements, according to the indictment.

Ten other defendants, including several high-ranking former bank employees, were previously charged as part of the ongoing federal criminal investigation into the failure of Washington Federal.

Thompson's attorney, Chris Gair, emailed a statement from Thompson, who claimed to be innocent of the charges.

"First, my conscience is clear. I did not commit any crime, I am innocent and I will prove it at trial," Thompson said in the statement. "Second, I am, first and foremost, a public servant. The charges in the indictment do not relate in any way to my public service or to my professional life. I remain 100 percent dedicated to serving the people of Chicago to the best of my ability.I have complete confidence in our system of justice and look forward to showing that the accusation is false."

Thompson – who lives in the Bridgeport neighborhood house where his grandfather, the late Chicago Mayor Richard J. Daley raised his children, including former Mayor Richard M. Daley, Thompson's uncle — said he is "very disappointed" the feds indicted him for "inadvertent tax preparation errors" and his "incorrect memory about the amount of a personal bank loan."

Thompson said he discovered the tax error and paid the "small amount of taxes" he owed.

"When the bank provided me the documents showing the actual amount of the loan, I promptly paid it back. Both matters were resolved before there was any government investigation."

Thompson is the latest in a long line of Chicago aldermen past and present to be indicted or investigated by the feds. Ald. Edward Burke was indicted on corruption charges in 2019. Former Ald. Danny Solis wore a wire for the FBI as part of the government's wide-ranging public corruption probe, but hasn't been indicted.

On Thursday, former Ald. Ricardo Munoz was charged with using money from a political fund to pay personal expenses.

This is a breaking news story. Check back for updates.