Congressman Michael Grimm, who represents parts of Brooklyn and Staten Island, entered a not guilty plea in Brooklyn Federal Court earlier today over allegations he defrauded the government over a million dollars while owning a Manhattan restaurant.
He was released on $ 400,000 bond and ordered to surrender his passport and firearm.
The 20 count indictment was announced by U.S. Attorney for the Eastern District of New York Loretta E. Lynch, FBI New York Field Office Assistant Director-in-Charge George Venizelos and IRS Criminal Investigation Chief Richard Weber.
Grimm is charged with five counts of mail fraud, five counts of wire fraud, three counts of aiding and assisting in the preparation of false federal tax returns, one count of conspiring to defraud the U.S., one count of impeding the Internal Revenue Service, one count of health care fraud, one count of engaging in a pattern or practice of hiring and continuing to employ unauthorized aliens, two counts of perjury and one count of obstructing an official proceeding.
Federal investigators say the charges stem from between 2007 and 2010 when he was the owner and manager of “Healthalicious,” a fast food restaurant on the Upper East Side.
They say he fraudulently under-reported over $ 1 million of the restaurant’s sales and wages.
Separately, Grimm has been under investigation for possible campaign finance violations since his first run for Congress in 2009.
He was elected to the House in 2010, representing Staten Island and southwest Brooklyn
and is currently seeking re-election.
Grimm’s attorney says his client will keep serving in Congress while fighting the charges.
Grimm made national headlines in January when he physically threatened NY1′s Washington reporter Michael Scotto for asking about the investigation during a recorded interview.
If convicted, federal prosecutors say Grimm faces between five and 10 years on the fraud charges and up to 20 years on the highest charge.
In a statement, FBI Assistant Director George Venizelos said, “As a former FBI agent, Representative Grimm should understand the motto: fidelity, bravery, and integrity. Yet he broke our credo at nearly every turn. In this twenty-count indictment, Representative Grimm lived by a new motto: fraud, perjury, and obstruction. We demand the best from our political leaders. Yet today, we again find ourselves expecting and rightfully wanting more. And as citizens of this great nation we rightfully demand it.”
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