CHICAGO (AP) — A city alderman who is also the nephew and grandson of two former mayors of Chicago has been indicted on tax charges tied to a failed bank, federal prosecutors announced Thursday.
Patrick Daley Thompson faces five counts of filing false tax returns and two of making false statements to a federal agency about $219,000 in loans and other payments from the Washington Federal Bank for Savings.
Thompson’s grandfather, Richard J. Daley, was Chicago mayor from 1955 until his death in 1976. His uncle, Richard M. Daley, held the mayoral seat from 1989 to 2011.
The indictment accuses the 51-year-old real estate attorney of paying off only part of a $110,000 loan. He’s accused of accepting $120,000 in loans that were off the books and making no effort to repay either principal or interest on them, the Chicago Tribune reported.
Thompson took deductions on his tax returns by indicating he was paying “mortgage interest” on the loans, the indictment alleges.
In a statement released by attorney Chris Gair, Thompson said he made “inadvertent tax preparation errors,” but later paid back taxes and repaid the rest of the loan.
“My conscience is clear,” his statement said. “I did not commit any crime, I am innocent, and I will prove it at trial.”
According to the Tribune, charges against Thompson are the first against any office-holding member of the powerful Daley family.
Washington Federal collapsed in 2017, eventually leading to federal charges against some of the bank’s executives and former customers. Filings alleged a $31 million embezzlement scheme prior to the collapse.
Each false statement count against Thompson carries a maximum 30-year prison sentence and each tax count carries up to three years in prison.
No date has been set for his arraignment.