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Congressman Grimm of NYC pleads guilty to tax evasion

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AP New York
Last Updated : Dec 24 2014 | 2:00 AM IST
Republican Congressman Michael Grimm of New York City admitted today to federal tax evasion, pleading guilty to charges he had fought as he won re-election this year but that now leave his congressional future in question.
Grimm entered a guilty plea to one count of aiding in the filing of a false tax return. He had been set to go to trial in February on charges of evading taxes by hiding more than $1 million in sales and wages while running a Manhattan health-food restaurant.
Grimm, joined in court by two attorneys, acknowledged sending his accountant underreported receipts and using the leftover money to pay employees off the books and cover other expenses.
Sentencing was scheduled for June 8. Prosecutors said a range of 24 to 30 months in prison would be appropriate, while the defense estimated the appropriate sentence as between 12 and 18 months.
News of the planned plea quickly brought pressure from Democrats for Grimm to resign his seat.
The Democratic Congressional Campaign Committee said in a statement before his court appearance today that it was "past time for Michael Grimm to go," calling his continued presence in Congress "a disservice to the people of Staten Island and Brooklyn and a stain on the institution."

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The DCCC and House Minority Leader Nancy Pelosi called on House Speaker John Boehner to ensure Grimm's departure.
Boehner has forced other lawmakers to resign for lesser offenses. He quickly orchestrated the 2011 resignation of Congressman Chris Lee, a married lawmaker who responded to a personal ad by emailing a shirtless photograph of himself to another woman.
Asked in October whether he would resign if found guilty, Grimm responded, "Certainly, if I was not able to serve, then of course I would step aside."
But if Grimm refuses to resign, it would take a rare vote by his fellow lawmakers to expel him from the House. The last member to be expelled was James Traficant, who was kicked out of Congress in 2002.
A former Marine and FBI agent, Grimm got to Congress by scoring an upset win in 2010. Grimm won re-election in November, little more than six months after he was indicted.
According to an indictment, the tax fraud began in 2007 after Grimm retired from the FBI and began investing in a small Manhattan restaurant called Healthalicious.

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First Published: Dec 24 2014 | 2:00 AM IST

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