A New York congressman was hit with a 20-count indictment on Monday, with charges including mail, wire, and healthcare fraud, filing false tax returns, perjury, and employing undocumented immigrants.



Michael Grimm, a Republican, was indicted on activities relating to a health-food restaurant business, Healthalicious, for which he oversaw day-to-day-operations from 2007 to 2010.

Grimm surrendered to the authorities on Monday, pleaded not guilty to the charges and was released on $400,000 bond. At a press conference on Monday afternoon, he told reporters the federal charges were part of a “political witch-hunt”, refused to resign and pledged to fight “tooth and nail” for re-election.

According to the indictment, Grimm “engaged in schemes to fraudulently under-report the wages he paid his workers … and fraudulently under-report the true amount of money the restaurant earned to both federal and New York State tax and insurance authorities.”

Loretta Lynch, US attorney for the eastern district of New York, announced the indictment on Monday in Brooklyn.

“In 2007, Michael Grimm, former marine, former FBI agent, accountant and attorney, was poised for success as a small business owner. Instead, as alleged, Grimm made the choice to go from upholding the law to breaking it,” she said in a statement.

“In so doing he turned his back on every oath he had ever taken.”

George Venizelos, assistant director-in-charge at the FBI's field office in New York, added: “As a former FBI agent, Representative Grimm should understand the motto: fidelity, bravery, and integrity. Yet he broke our credo at nearly every turn."

On Friday Grimm’s lawyer, William McGinley, said he was not surprised by the indictment.

“After more than two years of investigation plagued by malicious leaks, violations of grand jury secrecy and strong-arm tactics, the US attorney’s office has disclosed its intent to file criminal charges against Congressman Grimm.”

Grimm, who is up for re-election this year, rose to national attention in January when he threatened to physically harm a reporter after the state of the union address. The reporter, Michael Scotto of NY1, had angered Grimm by asking about the long-running investigation into his campaign finances.

In January, FBI agents arrested Diana Durand, who has been romantically connected to Grimm, in Houston, for allegedly trying to dodge campaign-finance laws in order to funnel more money to his congressional campaign. On Friday, a grand jury indicted Durand on charges that she made campaign contributions that exceeded federal limits and that she made false statements to the FBI.

Grimm is the only Republican congressman in New York City, representing Staten Island and parts of Brooklyn. He faces a tough election challenge from Democrat Domenic Recchia, a former New York City councilmember. But while Grimm is in a tough spot, his rivals are not yet in a position to declare victory.

Staten Island is one of New York City’s few Republican strongholds, and it comprises about two thirds of the votes for New York’s 11th congressional district. While Barack Obama won Staten Island by a hair in the 2012 presidential election, Republican John McCain took it in 2008.

Staten Island also went for the Republican mayoral candidate, Joe Lhota, over Bill de Blasio in the 2013 election, which de Blasio won by a landslide.

Grimm has been hounded by various allegations since his election in 2010, but until this point he has not managed to lose the support of his constituents. He won re-election in 2012 by defeating Democrat Mark Murphy, 52% to 46%.

The congressman has historically dealt with the investigations, and his reputation for bad behavior, by casting himself as a victim of Democratic machinations. Regarding the latest scandal, Guy Molinari – a former Republican Staten Island congressman, one of the borough’s biggest power players and a close advisor to Grimm – told the New York Post the imminent indictment was a “political witch-hunt”.

On Friday, McGinley said: “From the beginning, the government has pursued a politically driven vendetta against Congressman Grimm and not an independent search for the truth. Congressman Grimm asserts his innocence of any wrongdoing.”