The Justice Department was looking into Grimm’s relation with Ofer Biton. Grimm expected to be indicted

Rep. Michael Grimm is expected to be indicted by the U.S. attorney for the Eastern District of New York, Loretta Lynch, according to the New York Republican’s lawyer.

Grimm has been under investigation by federal authorities for alleged campaign finance violations. The federal charges against Grimm, set to be unveiled by next week, are expected to include mail and wire fraud, said a source familiar with the case.


The New York Times reported that the charges may be connected to a restaurant that Grimm owned after he left the FBI in 2006, although Grimm’s attorneys could not confirm that at press time.

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The timing of the expected Grimm indictment also couldn’t be worse for Republicans. The filing deadline for that race has closed, meaning GOP leadership could be stuck with him on the ballot come Election Day.

Grimm’s attorney, William McGinley of the law firm Patton Boggs, denounced the Justice Department’s looming criminal action against Grimm as prosecutorial overreach.

“After more than two years of investigation plagued by malicious leaks, violations of grand jury secrecy, and strong-arm tactics, the U.S. Attorney’s Office has disclosed its intent to file criminal charges against Congressman Grimm,” McGinley said in a statement. “We are disappointed by the government’s decision, but hardly surprised. 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.”

McGinley added: “When the dust settles, he will be vindicated. Until then, he will continue to serve his constituents with the same dedication and tenacity that has characterized his lifetime of public service as a Member of Congress, Marine Corps combat veteran, and decorated FBI Special Agent.”

( WATCH: Grimm caught on tape threatening reporter)

Robert Nardoza, the spokesman for the U.S. Attorney in the Eastern District of New York, would not confirm, deny or otherwise comment on a potential indictment of Grimm.

Lynch, who was appointed to her office by President Barack Obama in May 2010, oversees federal cases in Brooklyn, Queens, eastern Long Island and Grimm’s home district of Staten Island.

The expected indictment of Grimm is a major step for the Justice Department, which has not been as active in pursuing corruption cases involving sitting federal lawmakers since the debacle surrounding the late Sen. Ted Stevens (R-Alaska).

Stevens was indicted shortly before the 2008 elections and was later convicted on charges that he failed to report hundreds of thousands of dollars in improper gifts, including a home renovation.

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But the conviction was later voided after it was found that federal prosecutors withheld information from Stevens’s defense team. The scandal badly damaged the reputation of DOJ’s Public Integrity unit, which had built an impressive résumé prosecuting corrupt congressmen and senators.

The Justice Department has been scrutinizing Grimm’s relationship with Ofer Biton, an Israeli citizen who pleaded guilty last year to a visa violation. Grimm — with Biton’s help — raised more than $500,000 from Rabbi Yoshiyahu Yosef Pinto’s followers, including allegedly improper donations.

Grimm has repeatedly denied any wrongdoing, but his ongoing ethical and legal problems have made him a top target for Democrats in 2014.

Grimm was first elected to Congress in 2010. His district is anchored in Staten Island and Brooklyn. He beat Democratic Rep. Michael McMahon that cycle, and handily topped Democrat Mark Murphy in 2012.

The filing deadline for another Republican to challenge Grimm has passed.

The Democrat who is taking on Grimm, former N.Y. City Councilman Domenic Recchia Jr., had more than $1 million in cash in the bank as of March 31, according to his latest campaign disclosure report.

Mike Long, New York’s Conservative Party chairman, said he was suspicious of the timing of the indictment, coming so soon after the closing of the filing period. Long said his party would still support Grimm for reelection unless he is found guilty.

But Long added that he had no doubt that the development would severely damage Grimm in his reelection campaign.

“Does it make a difference? Very much so.”

Grimm’s legal troubles have been costly as well. His campaign was $453,656 in debt at the end of March. He owed $417,477.96 in legal fees to Patton Boggs, and $17,364 to the Terrance Group for polling. His campaign reported nearly $1.2 million in cash at the end of the first quarter of 2014.

Grimm was the subject of widespread attention earlier this year when he threatened to throw a local New York reporter off a balcony in the Capitol complex. He later apologized.

Melanie Sloan of the watchdog group Citizens for Responsibility and Ethics in Washington said Grimm should resign immediately if and when he’s indicted.

“Year after year, Rep. Grimm has committed some other reprehensible misdeed,” Sloan said in a statement. “It is about time the criminal justice system caught up with him. How ironic that one of the few corrupt lawmakers the Department of Justice can bring itself to prosecute is also a former FBI agent. Rep. Grimm should resign immediately.”

Alex Isenstadt contributed to this report .

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