CHICAGO — Former Ald. Patrick Daley Thompson, a part of Chicago’s most well-known political household, has begun serving a four-month jail sentence for mendacity to banking regulators and submitting false earnings tax returns in a case involving the failed Washington Federal Financial institution for Financial savings in Bridgeport.
The Bridgeport Democrat, who represented the eleventh ward within the Chicago Metropolis Council, had been ordered by U.S. District Choose Franklin Valderrama to report back to the federal Bureau of Prisons by Aug. 22 when he was sentenced in July.
Jail information verify Thompson is now in custody at a medium-security facility in Oxford, Wis.
Former Chicago Alderman Patrick Daley Thompson sentenced to 4 months in jail
Thompson’s legal professional, who could not be reached Monday, has mentioned Thompson hopes to finish his sentence by Christmas.
In February, a jury discovered Thompson responsible of all fees he confronted: two counts of mendacity to federal regulators and 5 counts of submitting false earnings tax returns.
Thompson is the grandson of the late Mayor Richard J. Daley and nephew of former Mayor Richard M. Daley, Prepare dinner County Commissioner John Daley and William Daley, a former commerce secretary who additionally was chief of workers to President Barack Obama.
The case towards Thompson stemmed from the persevering with federal investigation of the failure of Washington Federal, which the federal government shut down in December 2017 for large fraud days after the person who headed the financial institution and was its chief shareholder, John F. Gembara, was discovered lifeless in Park Ridge in the principle bed room of a financial institution buyer’s $1 million residence.
Patrick Daley Thompson trial: Jury finds Chicago alderman responsible of tax fraud, mendacity to feds
Whereas investigators unraveled what they’ve described as a multimillion-dollar embezzlement scheme involving Gembara, additionally they found that Thompson received $110,000 from Washington Federal in November 2011, $20,000 in March 2013 and $89,000 in January 2014 – and made just one fee, of $389.58 in February 2012, towards repaying.
Thompson paid no curiosity however claimed deductions on his federal earnings taxes for mortgage curiosity purportedly paid to the financial institution for the years 2013 by 2017. He additionally lied in early 2018 about how a lot he borrowed when questioned by two contractors for the Federal Deposit Insurance coverage Corp., which was making an attempt to get well the cash he borrowed.
Thompson ended up settling the debt with the FDIC in December 2018, information present, repaying simply the principal quantity he’d borrowed, $219,000. He additionally filed amended tax returns.
His lawyer blamed Thompson’s accountants on the agency Bansley & Kiener for the wrongly claimed deductions and argued that Thompson was too busy and frazzled to note them.
Along with his jail sentence, Thompson additionally was ordered to pay $8,395 in restitution to the IRS and $50,120 in restitution to the FDIC.
Thompson was the primary Chicago Metropolis Council member in additional than twenty years to have gone to trial in a prison case and the one member of the Daley household to have gone to trial on prison fees. His cousin Richard J. “R.J.” Vanecko pleaded responsible in 2014 to involuntary manslaughter, admitting he threw a punch that brought on David Koschman’s loss of life a decade earlier.
(Supply: Solar-Instances Media Wire – Copyright Chicago Solar-Instances 2022.)