Ald. Patrick Daley Thompson’s lawyers say judge should clear him of lying about Bridgeport bank money

Motions like defense attorney Chris Gair’s are often filed in criminal cases and are rarely granted. Still, Gair says the evidence and testimony jurors heard Thursday show Thompson’s alleged lies were “literally true.”

Lawyers for Ald. Patrick Daley Thompson say the judge presiding over the 11th Ward City Council member’s federal tax trial should acquit him of charges he lied to federal regulators in a defense bid that follows the likely end of the government’s case.

Defense attorney Chris Gair filed a motion late Thursday to toss the first two counts of Thompson’s indictment. He previously said he wants to argue over the matter Friday morning, when prosecutors will surely object.

Motions like Gair’s are often filed in criminal cases and are rarely granted. Still, Gair says the evidence and testimony jurors heard Thursday show Thompson’s alleged lies were “literally true.”

The argument before U.S. District Judge Franklin Valderrama comes as Thompson’s trial nears its end, with closing arguments likely Monday. Gair has said the defense team is “leaning against” having Thompson testify.

Federal prosecutors say Thompson lied to regulators and claimed improper mortgage-interest deductions on his tax returns for the years 2013 through 2017. The case revolves around $219,000 Thompson received from the now-shuttered Washington Federal Bank for Savings.

The Bridgeport bank gave Thompson a $110,000 loan in November 2011 and additional payments of $20,000 in March 2013 and $89,000 in January 2014, according to Thompson’s indictment. He made one $389.58 payment in February 2012 but paid no interest. He settled the debt with a payment of the principal amount borrowed, $219,000, in December 2018.

When Washington Federal failed in December 2017, the Federal Deposit Insurance Corp. turned Thompson’s loan over to Planet Home Lending, which sent him a statement in February 2018 that said he owed $269,120 in principal. Thompson called a customer service line on Feb. 23, 2018.

“I borrowed $100,000, and it actually never was able to close the loan. … I have no idea where the 269 number comes from,” Thompson said.

Then, on March 1, 2018, Thompson also told two FDIC contractors he had borrowed $110,000. The two conversations are the bases for the first two counts of Thompson’s indictment.

But the now-former FDIC contractors took the stand Thursday at Thompson’s trial. And Gair scored key points when he questioned them about the actual text of the two counts alleging Thompson lied. Gair said to one, John Holly, that “Mr. Thompson never told you ‘I only owe $110,000 and no other amount.’”

Holly’s response: “I don’t recall him saying that.”

“When squarely asked about the precise false statement charged in the indictment, Holly expressly disavowed that it occurred,” Gair wrote in his motion Thursday night.

The other contractor, Daniel Newell, also agreed with Gair that Thompson didn’t say he “only” owed $110,000. As for the $269,120, Newell said Thompson “disputed his balance.”