U.S. Representative Michael Grimm of New York pleaded guilty to a federal felony tax charge on Tuesday, seven weeks after coasting to reelection despite his indictment.
Grimm, a Republican, pleaded guilty in Brooklyn federal court to aiding the preparation of a false tax return in connection with a health food restaurant, Healthalicious, that he co-owned before his political career.
U.S. prosecutors had charged Grimm in a 20-count indictment unveiled in April that focused on allegedly illegal wage and tax practices at the restaurant. Trial had been scheduled for February.
“While operating a restaurant, we underestimated the gross receipts and used some of the money to pay employees off the books and some other expenses,” Grimm said in court.
It’s unclear whether Grimm intends to resign his seat. Some Congressional Democrats have already begun calling on John Boehner, the Republican speaker of the House of Representatives, to force Grimm to step down.
“Clearly, Speaker (John) Boehner must insist that Congressman Grimm resign immediately,” said House Democratic leader Nancy Pelosi in a statement from her home earlier on Tuesday. Boehner has not yet commented.
The 44-year-old former Marine and FBI agent, who represents parts of New York City’s Staten Island and Brooklyn boroughs, faces a maximum of three years in prison when he is sentenced on June 8. H
is lawyers are likely to ask Chen to impose a sentence with no imprisonment.
If he chooses not to resign, he could also face discipline from the House, including reprimand, censure or expulsion.
(Reporting by Nate Raymond; Writing by Joseph Ax; Editing by Diane Craft and Andrew Hay)
Roger Stone ‘is going to jail’: Ex-prosecutor explains how it could blow open the legal case against Trump
Longtime Donald Trump political advisor Roger Stone is headed to jail, a former federal prosecutor explained on MSNBC's "The Beat" with Ari Melber on Thursday.
"News in the Roger Stone criminal case, federal prosecutors tonight say Stone has broken his gag order, allegedly again," Melber reported.
"This judge has been somewhat resistant to put Stone in jail the way many other defendants are treated around the country. In fact, even after he posted a picture of the judge herself next to what many interpreted as crosshairs, she provided him a second chance," he explained.
Hope Hicks admitted she didn’t ask Trump if hush payments happened — before public denial during the 2016 election
On Thursday, CNN's Manu Raju reported that one of the topics of discussion in ex-White House Communications Director Hope Hicks' closed-door testimony to the House Judiciary Committee was the payoffs to women facilitated by President Donald Trump's former attorney Michael Cohen, who is currently serving a three-year federal prison sentence for tax evasion and campaign finance violations.
During the course of that questioning, Hicks made a startling admission.
BUSTED: Walmart to pay $282 million federal investigators to settle bribery probes
Global retail chain Walmart agreed on Thursday to pay $282 million to settle long-running US probes over charges it did too little to prevent bribery of foreign officials as it aggressively expanded its overseas operations.
The settlements address civil and criminal complaints over Walmart's conduct from 2000 through 2011 as it rapidly built new stores in Brazil, China, India and Mexico.
The US Justice Department said a Walmart's Brazilian subsidiary, WMT Brasilia, pleaded guilty to a criminal charge connected to the Foreign Corrupt Practices Act, the US anti-bribery law.
US regulators said Walmart repeatedly looked the other way and did not heed red flags about possible corruption, allowing its foreign subsidiaries to open stores faster than they would have otherwise and garner additional profits.