GOP Congressman Michael Grimm Pleads Guilty To Tax Fraud

Last spring, Michael Grimm, the only Republican Congressman from New York City, was indicted on charges that he hid over a million dollars in taxable gross receipts and wages from a health-food restaurant he owned before his election to Congress in 2010. Earlier today, Grimm, who represents Staten Island and part of south Brooklyn, pleaded guilty to a single count of felony tax fraud.

Grimm on a visit to his district in 2012 (courtesy Grimm's Flickr account)
Grimm on a visit to his district in 2012 (courtesy Grimm’s Flickr account)

At a federal court in Brooklyn, Grimm told district judge Pamela Chen that he underestimated the gross receipts from his Upper East Side health food restaurant, Healthalicious, and used a portion of the unreported receipts for off-the-books cash payments to some of his employees, as well as to pay restaurant expenses. He also admitted to filing false federal and New York state tax returns based on that under-reported income. Until today, Grimm was best known for threatening to hurl a reporter off a Capitol balcony for asking him a tough question–an incident for which he apologized.

According to an allocution Grimm signed as part of his guilty plea, Grimm specifically admitted to filing four years’ worth of false federal and state tax documents for the years 2007 through 2010. As part of the plea, he admitted knowingly employing people who could not legally work in this country. He also admitted lying under oath during a 2013 deposition, in which he claimed that he never paid his employees in cash. Grimm could get up to three years in prison when he’s sentenced in June, but as a first-time offender, he could possibly escape jail time altogether.

Of more immediate concern, though, is whether he’ll be able to stay in Congress. Grimm was just reelected last month in a race that initially looked like one of the hotter ones of the cycle. Indeed, it appeared that the indictment all but handed the seat to his Democratic opponent, former city councilman Domenic Recchia. Although this district is easily the most conservative in New York City and the only one where Republicans have a prayer of winning, it has a Cook Partisan Voting Index of R+2, making it very winnable for a Democrat on paper. However, Recchia ran such an inept campaign that a number of Democrats held their noses and voted for Grimm, who won by 13 points. Just hours after news broke that Grimm was about to plead, House Minority Leader Nancy Pelosi demanded that House Speaker John Boehner force Grimm’s resignation. Boehner said that he won’t have any comment until he discusses the matter with Grimm. For his part, Grimm dug in; while he admitted to making mistakes, he declared that he would “absolutely not” resign.

If Grimm does try to stay in office, his role in Congress will likely be very limited. Longstanding House rules strongly discourage anyone convicted of a crime that carries a sentence of more than two years from voting on the floor or taking part in committee work until the House Ethics Committee has a chance to investigate the matter. Although there is no hard and fast rule barring a convicted felon from voting on the floor, the Ethics Committee has indicated that convicted felons who take part in floor votes can be disciplined. The Ethics Committee had already begun its own investigation of Grimm, but federal prosecutors asked the committee to put that probe on hold after the indictment in April. Given Grimm’s vow to keep his seat, it’s very likely the committee will ramp its investigation back up almost as soon as the new Congress convenes in a couple of weeks.

I have to think that Grimm will ultimately resign, despite his apparent defiance today. After all, there’s no way that House Republicans will be able to defend someone who admitted to knowingly hiring illegal workers and lying about paying employees under the table. Couple the external pressure to resign with the realization that he will be effectively denying his district a voice in Congress, and he’ll really have no choice. For the sake of his district, let’s hope he comes to his senses sooner or later.

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Darrell Lucus.jpg Darrell Lucus, also known as Christian Dem in NC on Daily Kos, is a radical-lefty Jesus-lover who has been blogging for change for a decade. Follow him on Twitter @DarrellLucus or connect with him on Facebook.

Darrell is a 30-something graduate of the University of North Carolina who considers himself a journalist of the old school. An attempt to turn him into a member of the religious right in college only succeeded in turning him into the religious right's worst nightmare--a charismatic Christian who is an unapologetic liberal. His desire to stand up for those who have been scared into silence only increased when he survived an abusive three-year marriage. You may know him on Daily Kos as Christian Dem in NC. Follow him on Twitter @DarrellLucus or connect with him on Facebook. Click here to buy Darrell a Mello Yello.