Thread: Republican Rep. Michael Grimm Charged With Tax Fraud, Hiring Illegal Aliens

Republican Rep. Michael Grimm Charged With Tax Fraud, Hiring Illegal Immigrants

By Laura Matthews
on April 28 2014 11:53 AM

Federal prosecutors hit New York Congressman Michael Grimm on Monday with a 20-count indictment that includes fraud charges, wrapping up years of investigation into the Republican lawmaker’s business dealings and campaign financing.

The charges were in connection to a Manhattan health-food restaurant the lawmaker invested in before taking office, and were unsealed on Monday. It is alleged that the congressman underreported income at Healthalicious, according to multiple news reports. Other charges include perjury, wire and mail fraud, employing illegal immigrants, obstruction of justice and conspiracy to defraud the United States.

Grimm, a former FBI agent and U.S Marine, represents Staten Island and southwest Brooklyn. He surrendered to authorities at an undisclosed location Monday morning and is expected to be arraigned later the same day at a federal court in Brooklyn. The FBI probe began two years ago with a focus on Grimm’s campaign financing for his 2010 race, but later shifted to the health-food restaurant Healthalicious, which he invested in after leaving the FBI in 2006.

Court documents allege that Grimm "intentionally" hired an unspecified number of illegal immigrants. It's believed that the congressman hid more than $1 million in income from Healthalicious and hundreds of thousands in employees' wages as well, according to USA Today.

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Two of Grimm’s fundraisers have already been charged in connection to his campaign contributions. USA Today also reported that the 44-year-old congressman acknowledged receiving $250,000 to $300,000 in campaign donations from the followers of Israeli rabbi Yoshiyahu Yosef Pinto. Some of Pinto’s followers stated that they’ve illegally contributed tens of thousands of dollars, including gifts through straw donors, to Grimm’s campaign.

The restaurant is allegedly linked to an Israeli fundraiser who was a liaison between the lawmaker and the rabbi. That liaison, Ofer Biton, pleaded guilty to immigration fraud charges in August, The Associated Press reported. Diana Durand, a woman who was romantically linked to Grimm, has been indicted for allegedly using straw donors to make illegal contributions and for making false statements to the FBI.

Grimm was among the Tea Party Republicans elected in 2010, and is currently seeking reelection. He last made headlines in January when he threatened to physically harm NY1’s Washington reporter Michael Scotto who asked about the investigation. Grimm has since apologized.

The congressman’s office have not responded for a request for comment from the International Business Times. However, his spokesman told ABC News in a statement that Grimm won’t resign.

“When the dust settles, he 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,” a statement read.

http://www.ibtimes.com/republican-re...grants-1577258

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http://www.alipac.us/f12/gop-rep-gri...mnesty-301800/

1. Rep. Grimm charged with tax fraud, says he won't quit
   
   www.usatoday.com/story/news/politics/...grimm.../8386217/‎
   USA Today
2. 8 hours ago - NEW YORK — Republican Rep. Michael Grimmwas indicted Monday on federal charges of tax evasion and perjury for allegedly hiding more ...