New York Congressman Michael Grimm indicted on fraud charges

NEW YORK (WABC) -- New York Congressman Michael Grimm surrendered to federal authorities Monday morning to face criminal fraud charges.

A 20-count indictment was unsealed in federal court in Brooklyn charging Grimm with five counts of mail fraud, five counts of wire fraud, three counts of aiding and assisting in the preparation of false federal tax returns, one count of conspiring to defraud the United States, one count of impeding the Internal Revenue Service, one count of health care fraud, one count of engaging in a pattern or practice of hiring and continuing to employ unauthorized aliens, two counts of perjury and one count of obstructing an official proceeding.

Grimm was arraigned around noon, and he pleaded not guilty. He is being released on a $400,000 bond, secured by his home, and he is due back in court on May 19.

Federal prosecutors have been investigating the Republican's possible knowledge of illegal campaign contributions. The charges are connected to an Upper East Side restaurant business Grimm operated before entering Congress in 2011, and even Grimm's attorney says he's not surprised his client is facing federal criminal charges.

Attorney William McGinley says that federal prosecutors intend to charge Grimm after more than two years of investigation plagued by "malicious leaks, violations of grand jury secrecy, and strong-arm tactics."

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.

"When it came to his restaurant, Michael Grimm never met a tax he didn't lie to evade," said U.S. Attorney Loretta Lynch.

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.

"This political witchhunt was designed to do a couple of things, but first and foremost, assassinate my character and remove me from office," said Grimm. "We're going to fight tooth and nail until I am fully exonerated, so let me be perfectly clear: I will not abandon my post or the wonderful people who entrusted me to represent them."

Grimm has been dogged by allegations of campaign violations since his first campaign for Congress in 2009 and 2010. A House Ethics Committee announced in November that Grimm was under investigation for possible campaign finance violations.

McGinley maintains Grimm has done nothing wrong and that he'll be vindicated, likening the investigation to a political witchhunt.

Two of Grimm's former fundraisers have already been charged in connection with the investigation.

Grimm is on the ballot for re-election this November. He made headlines in January after confronting a New York City cable news station reporter who tried to question him about a long-running FBI investigation into campaign finance on a balcony in the Capitol.

After reporter Michael Scotto finished his report, Grimm stormed back, leaned into him and said, "Let me be clear to you. If you ever do that to me again, I'll throw you off this (expletive) balcony."

Scotto, who was asking about fundraising during Grimm's first campaign, protested, saying he was asking "a valid question."