Ex-U.S. Representative Grimm gets prison time for tax evasion

Published 07/17/2015, 02:31 PM
© Reuters. Former U.S. Representative Michael Grimm exits the Brooklyn Federal Courthouse in the Brooklyn Borough of New York

By Joseph Ax

NEW YORK (Reuters) - Former U.S. Representative Michael Grimm was sentenced to eight months in prison for felony tax evasion in Brooklyn federal court on Friday, seven months after he pleaded guilty and resigned from Congress.

Grimm, a Republican who represented a district in the New York City borough of Staten Island, admitted in December that he underreported employee wages at Healthalicious, a restaurant he co-owned before embarking on his political career.

A former Marine and FBI agent who won the first of three terms in 2010, Grimm previously made headlines in January 2014 when he threatened to throw a television reporter off a balcony.

He won re-election in a landslide last year despite his indictment on 20 federal charges, including allegations that he hired illegal immigrants and paid employees under the table.

After pleading guilty to one count, a defiant Grimm vowed not to resign, only to step down a week later after pressure from Republican leadership.

During Friday's hearing, Grimm told U.S. District Judge Pamela Chen that he had cut corners to keep his business afloat because he lacked the "bravery to fail."

"It wasn't out of greed," he said. "I would give my life for this country."

But Chen called his expressions of remorse "belated" and said she rejected his argument that he had already been punished enough by the losses of his congressional seat and his reputation.

"These are not punishments," she said. "These are collateral consequences ... Everyone falls from grace when they are caught committing a crime; some fall farther than others."

As part of his plea, Grimm signed a statement of facts that contained additional admissions, including that he concealed more than $900,000 in gross receipts from 2007 to 2010 and committed perjury during a 2013 deposition.

Before the indictment, Grimm was perhaps best known nationally for his videotaped confrontation with the reporter in the U.S. Capitol building.

"I'll break you in half," he told the reporter, who had asked about an ongoing probe of Grimm's fundraising. "Like a boy."

The Healthalicious case stemmed from the fundraising investigation, which also led to the indictment of Grimm's former fundraiser Diana Durand.

© Reuters. Former U.S. Representative Michael Grimm exits the Brooklyn Federal Courthouse in the Brooklyn Borough of New York

Durand was sentenced to three months in prison after pleading guilty to charges that she funneled illegal campaign contributions to Grimm's campaign.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.