CHICAGO (CBS) — Ald. Patrick Daley Thompson (eleventh) has been indicted on federal fees tied to the collapse of a Bridgeport financial institution, accusing him of mendacity about loans he obtained from a failed financial institution in his ward.
As CBS 2’s Charlie De Mar reported, Thompson admits to creating tax preparation errors and mentioned his reminiscence was fuzzy on the amount of cash he was loaned from the now-defunct financial institution. However federal authorities say Thompson broke the regulation.
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Thompson faces 5 counts of submitting a false revenue tax return, and two counts of false statements to the Federal Deposit Insurance coverage Corp relating to $219,000 in loans and different funds he obtained from Washington Federal Financial institution for Financial savings.
The clout-heavy financial institution was shut down in by federal regulators in 2017, after these regulators decided it was bancrupt and had made at the very least $66 million in unhealthy loans.
In accordance with the fees in opposition to Thompson – the nephew of former Mayor Richard M. Daley and grandson of former Mayor Richard J. Daley – the Bridgeport alderman obtained $219,000 in loans and different funds from the financial institution between 2011 and 2014, earlier than he was elected to the Metropolis Council.
The indictment accuses Thompson of constructing just one cost on these loans, however then stopped making funds, and didn’t pay again any curiosity on the cash he obtained. He’s additionally accused of taking deductions on 5 years of revenue tax returns by falsely claiming he paid “mortgage curiosity” on the loans, “regardless that he knew he didn’t pay curiosity within the quantities reported on the returns.”
After federal regulators shut down the financial institution in 2017, the FDIC tried to gather the cash Thompson nonetheless owed on his loans, however Thompson falsely claimed he owed solely $110,000 and that the cash was used for house enhancements. Prosecutors mentioned Thompson knew full nicely he truly received $219,000 from the financial institution, and “that $110,000 of it was paid by the financial institution to a regulation agency as Thompson’s capital contribution.”
Thompson, 51, is the primary member of the Daley household who’s held public workplace to face felony fees.
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In a press release Thursday afternoon, Thompson denied any wrongdoing:
“I’m very dissatisfied by the Justice Division’s determination to return an indictment in opposition to me as we speak for inadvertent tax preparation errors and my incorrect reminiscence in regards to the quantity of a private financial institution mortgage. I found the tax error and paid the small quantity of taxes I owed. When the financial institution supplied me the paperwork exhibiting the precise quantity of the mortgage, I promptly paid it again. Each issues have been resolved earlier than there was any authorities investigation.”
“I wish to make two factors.”
“First, my conscience is evident. I didn’t commit any crime, I’m harmless, and I’ll show it at trial.”
“Second, I’m, at the beginning, a public servant. The fees within the indictment don’t relate in any method to my public service or to my skilled life. I stay one hundred pc devoted to serving the individuals of Chicago to the very best of my means.”
“I’ve full confidence in our system of justice and look ahead to exhibiting that the accusation is fake.”
Thompson, an legal professional, started his profession in public workplace when he was elected to the Metropolitan Water Reclamation District in 2012. Three years later, when Ald. James Balcer (11th) retired, Thompson gave up his seat on the water district board and ran for the Metropolis Council seat within the ward that had been the Daley household’s house and political energy base for many years.
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Federal prosecutors mentioned the investigation of Washington Federal has resulted in fees in opposition to 10 different defendants.