Patrick Daley Thompson
Coverage of now-former Ald. Patrick Daley Thompson’s income-tax fraud case.
The former Chicago City Council member from Bridgeport offered a glimpse Wednesday of his life behind bars as he fought to keep from having his license to practice law suspended for three years.
The sentencing capped a stunning, mad-dash of a federal court case that in 14 months cost Thompson his 11th Ward seat on the City Council, his law license and his freedom. It likely ended his political career and marred not only his reputation, but his famous family’s.
“Everything we have worked for our entire lives has been depleted — financially, reputationally and even what we thought were solid friendships,” Thompson’s wife, Katie, wrote to the judge.
Prison for member of Daley dynasty? Feds ask judge to sentence ex-Ald. Patrick Daley Thompson to two years behind bars
Thompson asked the judge to give him probation instead. The two sides made their recommendations Monday ahead of Thompson’s sentencing before U.S. District Judge Franklin Valderrama, which is set for July 6.
Thompson was convicted by a federal jury in February. The court’s disciplinary action comes three days after Thompson’s attorney asked a judge to either overturn that verdict or order a new trial,
Thompson’s request is not unexpected. A jury found him guilty of cheating on his taxes and lying to regulators. The verdict cost him his seat on the City Council.
Jane Iriondo is now the fourth person to plead guilty in connection with the $66 million embezzlement scheme at Washington Federal Bank for Savings. The bank was central to the trial of Patrick Daley Thompson.
Desperate for loans, Patrick Daley Thompson put hundreds of thousands in campaign cash in crooked Bridgeport bank
Documents subpoenaed by prosecutors and other public records reflect a growing desperation as he tried to quadruple the amount of money he was borrowing from Washington Federal Bank for Savings.
Jurors took about three-and-a-half hours to find Thompson guilty of two counts of lying to regulators and five counts of filing false federal income tax returns. State law requires Thompson to resign his seat on the City Council.
He should have known he shouldn’t be playing in certain sandboxes. Washington Federal Bank for Savings was such a sandbox, a playpen for scoundrels.
His guilty verdict for claiming deductions for interest he never paid to a failed Bridgeport bank, Washington Federal Bank for Savings, isn’t the only time he’s had trouble with the IRS.
A federal prosecutor told the jury that “no one is so big, no one is so important, that they can’t be held accountable for their criminal conduct.”
The case revolves around $219,000 Thompson got from the now-shuttered Washington Federal Bank for Savings. His attorneys filed a motion late Thursday hoping to convince the judge to acquit Thompson on two counts, but the judge declined.
The final call comes after three days of testimony. Prosecutors laid out their evidence that Thompson lied to regulators about the $219,000 he owed Washington Federal Bank for Savings, and that he knew he improperly claimed mortgage-interest deductions on his tax returns for the years 2013 through 2017.
Someone overheard Robert Hannigan talking to two upcoming witnesses — in violation of a court order — during a lunch break while Thompson’s friends and family were seen nearby. Hannigan allegedly called his cross-examination “just a game of gotcha.”
Alicia Mandujano said the bank president told her to let Thompson into the bank before business hours so he could pick up the first payment. She said Thompson also picked up the second and third payment in the president’s office, which was on the second, non-public floor of the bank.
He’s charged with filing false federal income tax returns for 2013-2017 and lying to regulators about how much he owed Washington Federal Bank for Savings in Bridgeport.
Cathy Torres’ name appears on a list of potential prosecution witnesses for Thompson’s federal tax trial, which is set for Feb. 4. The feds say Torres communicated with Thompson about his loan at Washington Federal and attempts to refinance there.
U.S. District Judge Franklin Valderrama made the ruling at a hearing Friday, where it appeared Thompson’s trial is on track to begin Feb. 4.
Bridgeport bank president had worker falsely make it look like Patrick Daley Thompson made loan payments: plea
That worker, Alicia Mandujano, has become the first person to plead guilty as a result of the massive investigation that has swirled for years since the failure of Washington Federal Bank for Savings and the death of its president, John Gembara, both in 2017.
The revelation came at a hearing Monday as Thompson is scheduled to go to trial Feb. 4. But the judge raised concerns about moving forward amid the COVID surge.
‘Dividing areas or neighborhoods based on race is indeed racism,’ the Chicago City Council member representing Bridgeport says in a letter to his ‘11th Ward family.’
Patrick Daley Thompson’s friend Michael Meagher is president of McHugh Construction, which is restoring the old Ramova Theatre with City Hall’s financial backing.