New York Rep. Michael Grimm appears in court in fraud case

NEW YORK (WABC) -- New York Congressman Michael Grimm appeared at a court hearing Monday in his federal tax evasion case.

Prosecutors say the evidence against him includes thousands of emails, which had been turned over to Grimm's lawyers.

The Republican from Staten Island was charged last month with concealing more than $1 million in sales and wages at a Manhattan restaurant he ran before he was elected to Congress. The charges stemmed from an ongoing investigation of his campaign fundraising.

Grimm has denied any wrongdoing. The former FBI agent didn't speak to reporters as he left court on Monday.

Over the weekend, Grimm held a rally and didn't directly address the charges he's facing, instead telling supporters that Staten Islanders have been bullied but won't take it anymore.

"I'm still here, baby!" he told the crowd.

Grimm said he'd stood with Staten Islanders after the September 11th terrorist attacks and after Superstorm Sandy and would stand with them through good and bad.

Grimm is free on $400,000 bond.

He's vowed to stay in Congress and run for re-election while fighting the tax case.

Grimm is facing a 20-count indictment charging him 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.

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 under-report 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.