UPDATE: NY lawmaker pleads not guilty to US fraud charges

By: Associated Press
By: Associated Press

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NEW YORK (AP) — U.S. Rep. Michael Grimm has been indicted on mail, wire and tax fraud charges, but he says the case is trumped up.

The Staten Island Republican was arrested Monday and pleaded not guilty to a 20-count federal indictment. He has been released on $400,000 bail.

Grimm says the government framed him. He says investigators couldn't make a campaign finance case against him stick, so they trumped up the fraud accusations.

He says he is the victim of a "political witch hunt."

Grimm is charged with engaging in schemes to underreport wages for restaurant workers, including some who were in the country illegally. He is accused of concealing more than $1 million in sales and wages.

Grimm is a former FBI agent who left the bureau in the mid-2000s. He was elected in 2010.


Previous story:

New York Congressman Michael Grimm has surrendered to face a 20-count federal indictment that includes charges of mail fraud, wire fraud and tax fraud.

The Staten Island Republican was awaiting arraignment Monday in Brooklyn.

He's charged with engaging in schemes to underreport wages for restaurant workers, including some who were in the country illegally. He's accused of concealing more than $1 million in sales and wages.

Authorities say that when he was deposed by an attorney representing former employees in a lawsuit, Grimm lied under oath about his allegedly fraudulent business practices.

There was no immediate response to phone and email message left with Grimm's lawyer.

Authorities allege the fraud occurred from 2007 to 2010. Grimm, who's also a former FBI agent, was elected in 2010 and took office in 2011.


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