Ald. Patrick Daley Thompson Convicted Of Federal Income Tax Fraud

CHICAGO — A federal jury on Monday found Ald. Patrick Daley Thompson guilty of filing false tax returns and lying to investigators about a bank loan.

The grandson and nephew of two Chicago mayors will be forced to resign as 11th Ward alderman immediately, as required by state law.

Thompson, who lives in the Bridgeport house owned by his grandfather, the late Mayor Richard J. Daley, was elected 11th Ward alderman in 2015. He did not testify in his own defense.

The case against Thompson stemmed from money he borrowed from Washington Federal Bank for Savings, a Bridgeport bank that federal officials shut down in 2017. Federal prosecutors said Washington Federal Bank gave Thompson an $89,000 loan without signing paperwork requiring him to pay it back, and the alderman used the money to pay off a mortgage in default.

A grand jury also indicted Thompson on charges he lied about how much money he borrowed from Washington Federal to buy a partnership stake in a law firm. The alderman claimed he borrowed $110,000 when the amount he owed was $219,000.

Thompson's lawyers argued that the alderman, who also is a commercial real estate attorney, didn't lie to the feds, he simply forgot how much money he had borrowed when being interviewed by the feds, and made mistakes on his taxes because he struggles with being disorganized and not paying attention to details.

The federal jury didn't buy it.

On Monday, after lawyers wrapped up closing arguments, it took less than 5 hours for jurors to find Thompson guilty of two counts of lying to federal agents and five counts of filing false tax returns claiming bogus mortgage-interest deductions.

Together, the seven-count conviction carries a maximum sentence of 45 years in prison.

Thompson is expected to be sentenced to a lesser sentence, including probation, due to federal sentencing guidelines.