Democrat heir busted

Grandson of famous Democratic Chicago mayor challenges conviction at Supreme Court

An heir to a powerful Chicago political family went before the Supreme Court this week to challenge his conviction for bank fraud.

Patrick Daley Thompson, a former city alderman, was sentenced to four months in prison for lying about his taxes and making false statements to bank regulators. He is the grandson of former Democratic party boss and mayor Richard J. Daley, who was the mayor of Chicago from 1955 to 1976.

The case pivots on what counts as a "false" statement under a federal law that makes it illegal to influence regulators like the Federal Deposit Insurance Corporation.

In 2017, the FDIC shut down an insolvent Chicago bank with ties to Thompson, Washington Federal, and hired a loan servicer to collect the money owed. Multiple people tied to the bank were charged in an embezzlement conspiracy.

Thompson had taken out three separate loans totaling $219,000 plus interest, but the bank never demanded repayment, and Thompson only made one payment of $389.58 on the initial $110,000 loan. Prosecutors claimed during Thompson's trial that the bank gave him favorable treatment, something his lawyers denied.

When the FDIC tried to collect Thompson's debts, he claimed that he borrowed $110,000, and he disputed the full $219,000 amount. Eventually, he settled with the government and paid the $219,000 principal - only to be charged later with making false statements.

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I think this guy needed a better lawyer to negotiate his settlement with the government.