Things are looking Grimm for him. Tax evasion, illegal hiring practices, withholding wages from workers, obstruction of justice, lying under oath, etc.
NEW YORK — A 20-count indictment unsealed Monday charged Rep. Michael Grimm, R-N.Y.,with an alleged tax evasion scheme involving the concealment of more than $1 million in receipts from his New York restaurant where he employed an undisclosed number of undocumented immigrants.
Grimm surrendered to federal authorities Monday and pleaded not guilty to charges of conspiracy, obstruction, mail fraud and perjury related to the alleged scheme involving his fast-food restaurant Healthalicious. But he said he would not resign his seat in Congress.
"In total, Grimm concealed over $1 million in Healthalicious gross receipts alone, as well as hundreds of thousands of dollars of employees' wages, fraudulently depriving the federal and New York state governments of sales, income and payroll taxes,'' court documents state.
From 2007 to 2010, according to the court documents, Grimm also "intentionally'' hired undocumented immigrants and engaged "in a pattern and practice of such hiring and continued employment.''
Released on bail, Grimm said at a news conference he would not resign from Congress. "I know I'm a moral man, a man of integrity and I also know that I have a lot more service and leadership to provide this country,'' the second-term congressman said. "I'm going to get back to work. I will not abandon my post or the wonderful people who entrusted me to represent them.'' He said he would continue to serve with "honor and distinction ... And on top of that, I have an election to win.''
Grimm, 44, was taken into custody after turning himself in to FBI agents. At a press conference in New York on Monday, George Venizelos, the FBI assistant director in charge of the New York field office, said Grimm, a former FBI agent, "was anything but an upstanding citizen. He cheated, evaded and then lied."
STORY: Other lawmakers who have been charged
Loretta Lynch, U.S. Attorney for the Eastern District of New York said Grimm "never met a tax he didn't lie to evade." Lynch said Grimm's restaurant paid workers off the books with money taking "directly from the cash register." While she called this kind of tax evasion "rather typical" for a small business, Lynch added "it's never a happy day when you bring charges against a former law enforcement official."
Grimm also has made news over campaign contributions. He has acknowledged that he received $250,000 to $300,000 in campaign donations from followers of Yoshiyahu Yosef Pinto, an Israeli rabbi. Some of Pinto's followers in New York have said they made tens of thousands of dollars in illegal campaign contributions to Grimm, including gifts passed through straw donors.
Ofer Biton, the businessman who served as Grimm's liaison to Pinto's congregation, pleaded guilty in August to an immigration fraud charge. Diana Durand, a woman who had been romantically involved with the congressman, was charged Friday with using straw donors to make illegal campaign contributions and for making false statements to the FBI. Durand's lawyer said she would plead not guilty.
Grimm's lawyer William McGinley said Friday that the government has pursued "a politically driven vendetta" against Grimm, who has said he has done nothing wrong. "When the dust settles, he will be vindicated," McGinley said in his statement.
Grimm made national headlines in January when he threatened a TV reporter on camera who attempted to ask him about the long-running federal investigation. Grimm later apologized to NY1 reporter Michael Scotto.
Grimm represents a swing district based on Staten Island and parts of Brooklyn. President Obama won New York's 11th Congressional District in 2012 with 52% of the vote.
Kevin Johnson reported from Washington. Contributing: Catalina Camia, Associated Press.
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