Patrick Daley Thompson

The latest updates and coverage of Chicago alderman Patrick Daley Thompson as he faces allegations of tax fraud and lying to regulators.

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.
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.
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.
The alderman is the highest-profile figure to face criminal charges in connection with the clout-heavy Washington Federal Bank for Savings in Bridgeport, which federal regulators shut down in 2017 over a massive fraud scheme.
The case had been set to go to trial Monday, less than six months after a federal grand jury charged Thompson with filing false tax returns and lying to the Federal Deposit Insurance Corp. But late Tuesday, prosecutors filed an emergency motion to delay the trial over a medical issue.
Instead, the Chicago alderman’s corruption trial would be streamed for the public in an overflow room due to COVID-19 protocols, a judge said Wednesday.
Defense attorneys in the alderman’s criminal case point to mistakes by the bank, the Bansley & Kiener accounting firm and even Thompson himself, writing that, “Mr. Thompson’s lack of organization and lack of attention to the details of his personal financial affairs are central to his defense.”
In a court filing Saturday, prosecutors claimed newly provided documents “were not disclosed in a timely manner” despite a grand jury subpoena served in December 2018.