Ald. Patrick Daley Thompson pleads not guilty to charges involving failed bank

CHICAGO (WLS) -- Alderman Patrick Daley Thompson pleaded not guilty Thursday during an arraignment by telephone on federal charges involving a failed Bridgeport bank.

Thompson represents the city's 11th Ward, which was home to his uncle, Mayor Richard M. Daley and his grandfather, Mayor Richard J. Daley.

The grand jury indictment alleges that 51-year-old Thompson filed false U.S. tax returns and that he lied to officials with the Federal Deposit Insurance Corporation about nearly $200,000 in loans and payments from a Chicago bank.

The insolvent Washington Federal Bank for Savings was shut down in 2017 with $66 million in nonperforming loans.

RELATED: Ald. Patrick Daley Thompson indicted, faces charges involving failed Bridgeport bank

Thompson issued a statement after the indictment saying

I am very disappointed by the Justice Department's decision to return an indictment against me today for inadvertent tax preparation errors and my incorrect memory about the amount of a personal bank loan. I discovered the tax error and paid the small amount of taxes I owed. When the bank provided me the documents showing the actual amount of the loan, I promptly paid it back. Both matters were resolved before there was any government investigation.

I want to make two points.

First, my conscience is clear. I did not commit any crime, I am innocent, and I will prove it at trial.

Second, I am, first and foremost, a public servant. The charges in the indictment do not relate in any way to my public service or to my professional life. I remain 100 percent dedicated to serving the people of Chicago to the best of my ability.

I have complete confidence in our system of justice and look forward to showing that the accusation is false.

The video in this story is from a previous report