New York Rep. Grimm indicted on federal fraud, tax charges

[Janelle2002 3,865]

Ow no a Republican in trouble! This is Obama's fault. New York Rep. Grimm indicted on federal fraud, tax charges

Published April 28, 2014

FoxNews.com

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Jan 2, 2013: Representative Michael Grimm (R-NY) talks to the media. (Reuters)

New York Rep. Michael Grimm was indicted on 20 counts of fraud and various other charges relating to a Manhattan restaurant he owned and operated, as the Republican congressman was arrested Monday morning.

Grimm, a former FBI agent, was transported to FBI headquarters in Manhattan. He had been expected to turn himself in, after learning several days earlier that charges were forthcoming.

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Ahead of a Justice Department press conference, prosecutors released the indictment, which covered mail and wire fraud charges and charges pertaining to false federal tax returns. Prosecutors claim he under-reported over $1 million of his restaurant sales and wages.

The charges were being announced by U.S. Attorney Loretta Lynch. They pertain to the operation of the Upper East Side restaurant, Healthalicious.

The charges did not appear to focus on the financing of Grimm's 2010 congressional campaign, which has been the focus of a long-running FBI investigation.

The Washington Post reported that Healthalicious was fined $88,000 for not providing workers compensation to employees. Workers also reportedly accused the company of not following state wage laws and giving workers cash payments to skirt New York tax and business laws.

Grimm's attorney confirmed late Friday that federal prosecutors plan to file criminal charges against the congressman.

"We are disappointed by the government's decision, but hardly surprised," said the statement from Grimm's attorney, William McGinley. "From the beginning, the government has pursued a politically driven vendetta against Congressman Grimm and not an independent search for the truth."

The statement said Grimm "asserts his innocence of any wrongdoing" and "will be vindicated."

"Until then, he will continue to serve his constituents with the same dedication and tenacity that has characterized his lifetime of public service as a Member of Congress, Marine Corps combat veteran, and decorated FBI Special Agent," the statement said.

The House Ethics Committee announced in November that Grimm was under investigation for possible campaign finance violations. That committee said it would defer its inquiry because of a separate Department of Justice investigation.

Grimm made headlines in January after confronting a New York City cable news station reporter who tried to question him about a long-running FBI investigation into campaign finance on a balcony in the Capitol.

After reporter Michael Scotto finished his report, Grimm stormed back, leaned into him and said, "Let me be clear to you. If you ever do that to me again, I'll throw you off this (expletive) balcony."

Scotto protested, saying he was asking "a valid question."

During that race, Grimm has acknowledged receiving $250,000 to $300,000 in contributions from followers of an Israeli rabbi, Yoshiyahu Yosef Pinto. Some members of Pinto's congregation subsequently said they made tens of thousands of dollars in illegal contributions, including gifts passed through straw donors.

Grimm has denied knowledge of any improprieties. The Israeli businessman who had served as Grimm's liaison to Pinto's followers, Ofer Biton, pleaded guilty in August to an immigration fraud charge.

Three days after that guilty plea, the FBI filed a sealed criminal complaint accusing a Houston woman who had been romantically involved with Grimm of using straw donors to make illegal campaign contributions.

In that case, made public this month, the woman was accused of funneling at least $10,000 to Grimm's campaign by passing them through friends who agreed to have the donations listed under their names.

[We Keep Receipts 9,238]

Don't worry, the usual suspects will be here shortly to tell us how he's not a republican anymore, now he's a Democrat.

[JohnR! 5,495]

Don't worry, the usual suspects will be here shortly to tell us how he's not a republican anymore, now he's a Democrat.

Right now they must be updating Wikipedia in order to reflect their POV so that they can post it as a factual source...

[We Keep Receipts 9,238]

Right now they must be updating Wikipedia in order to reflect their POV so that they can post it as a factual source...

Knocked it right out of the park.

[deleted-05292014 331]

Damn undocumented Republicans destroying our country!

[Janelle2002 3,865]

Right now they must be updating Wikipedia in order to reflect their POV so that they can post it as a factual source...

I'm at work. Cut it out.

[I AM NOT THAT GUY 5,715]

There are no real Republicans in New York.

This story should be all the proof you need.