Indicted Republican Grimm to Leave House Financial Services Panel

Michael Grimm
U.S. Representative Michael Grimm (R-NY) leaves a press conference after exiting the Brooklyn Federal Courthouse in the Brooklyn Borough of New York April 28, 2014. Andrew Kelly/Reuters

WASHINGTON (Reuters) - Republican Representative Michael Grimm, who was indicted Monday on fraud charges, said he was stepping down from the House of Representatives Financial Services Committee.

In a letter to House Speaker John Boehner, the New York congressman said he was asking to be removed from the committee "in light of recent events." He added that "upon a successful resolution of pending legal matters my intention is to resume said position as an active member of the committee."

A spokesman for Boehner said the speaker "believes Rep. Grimm's decision is appropriate under the circumstances."


WASHINGTON/NEW YORK (Reuters) - Michael Grimm, a Republican U.S. congressman from New York, was indicted on fraud charges in connection with a Manhattan fast-food restaurant he owns, according to court documents unsealed on Monday. He faces up to 20 years in prison if convicted.

The charges follow a federal probe of Grimm's fundraising that has been going on for more than two years and Brooklyn U.S. Attorney Loretta Lynch told reporters a "larger investigation" is still continuing.

Grimm, a former Marine who subsequently worked as an FBI agent, was elected in 2010 with a wave of conservative "Tea Party" Republicans advocating low taxes and government spending.

In January, he generated headlines when he threatened to throw a television reporter off a balcony after an interview in the U.S. Capitol on the night of President Barack Obama's State of the Union address. The incident was caught on camera.

Prosecutors said Grimm and his restaurant, Healthalicious, under-reported wages paid to workers, many of whom did not have legal status in the United States. They said many of the wages were paid in cash.

Grimm and the restaurant also concealed from federal and New York state authorities more than $1 million in gross receipts, prosecutors said.

The 20-count indictment says Grimm oversaw the restaurant's day-to-day operations between 2007 and 2010, just after he left the FBI. It also charges Grimm with lying under oath in January 2013 about his role in the restaurant.

Grimm, who represents a district that covers Staten Island and southern Brooklyn, is free on a $400,000 bond.

He appeared briefly in federal court on Monday dressed in a dark gray suit and striped blue tie. He stood with his hands folded in front of him as he responded to a judge's questions.

"As a former FBI agent, Representative Grimm should understand the motto: fidelity, bravery, and integrity. Yet he broke our credo at nearly every turn," said George Venizelos, who runs the FBI's New York office.

"Representative Grimm lived by a new motto: fraud, perjury, and obstruction," Venizelos said.

Grimm's attorney William McGinley declined to comment on Monday. On Friday, he condemned the expected charges as a "politically driven vendetta" against the congressman.

One of Grimm's fundraisers, Diana Durand, was arrested in January on charges that she illegally funneled more than $10,000 to his campaign. On Friday, a grand jury indicted Durand on charges that she made campaign contributions that exceeded federal caps in 2010.

It was the third scandal to hit House Republicans in recent months.

In April, married Congressman Van McAllister of Louisiana was caught on camera passionately kissing a married staffer in his office, prompting calls for him to resign, which he has rejected. In January Trey Radel of Florida resigned after pleading guilty to buying cocaine.