Judge scolds former Ald. Patrick Daley Thompson over restitution issues but grants stay pending appeal

A federal judge Thursday scolded former Chicago Ald. Patrick Daley Thompson for failing to comply with the terms of his supervised release, but in the end agreed to stay an order that Thompson pay $50,000 in restitution to federal banking regulators pending the outcome of his appeal.

The hearing before U.S. District Judge Franklin Valderrama was called after court probation officials accused the former 11th Ward alderman of failing to pay restitution for his tax-related conviction once he was released from prison on a one-year term of supervised release in December.

Thompson also allegedly failed to notify his probation officer that he was earning money as a consultant.

Thompson’s attorney, Chris Gair, told the judge Thursday that Thompson in no way tried to skirt the obligations of his supervised release, and that the issues were largely due to a series of “miscommunications and misunderstandings.”

“If there was a mistake, the person who should be admonished is me, not Mr. Thompson,” Gair said.

Gair said Thompson has now paid his $8,300 obligation to the IRS plus another $1,500 in costs of prosecution, leaving only the restitution to the Federal Deposit and Insurance Corporation, which Thompson is appealing before the 7th Circuit U.S. Court of Appeals.

Thompson is now earning about $4,000 a month as a self-employed consultant, Gair said, though further details on his clients or the nature of the work were not revealed in court.

Meanwhile, Assistant U.S. Attorney Michelle Petersen said Thompson had been notified by his probation officer that if he wanted a stay on the order for restitution to the FDIC, he should have filed a motion before Valderrama.

“He decided not to pay it because he thinks it’s going to be reversed on appeal,” Petersen said. “Maybe it will be and maybe it won’t be, but the appropriate thing to do at that point was to come to the court.”

Valderrama scolded Thompson on that point, and said he was inclined to deny the “tardy” request for a stay, which was finally made last week. But since the government did not oppose it, the judge granted the motion.

“The conditions of supervised release, sir, isn’t a request. It is not a suggestion. It is an order that you must comply with,” Valderrama said directly to Thompson near the end of the hearing.

After the judge asked Thompson if he understood his obligations, the former alderman said, “Yes, your honor. And if I could just add —” before Gair leaned over and whispered, “No.”

Thompson, 54, grandson of Richard J. Daley and nephew of Richard M. Daley, Chicago’s two longest-serving mayors, was convicted by a federal jury in February 2022 of two counts of lying to federal regulators about loans he had with the now-shuttered Washington Federal Bank for Savings in his family’s Bridgeport neighborhood.

He was sentenced to four months in prison and was released five days before Christmas, records show.

[ Former Ald. Patrick Daley Thompson sentenced to four months in prison in tax case ]

Under state law, Thompson was forced to resign his seat on the Chicago City Council immediately after the conviction on felony charges. His license to practice law also was suspended by the Illinois Supreme Court following his conviction — a decision he is still trying to reverse.

Thompson’s appeal of his conviction is pending before the 7th U.S. Circuit Court of Appeals.

jmeisner@chicagotribune.com