Republican Congressman Michael Grimm, whose name was mentioned as one of those involved in the extortion case against Rabbi Yosiah Pinto in New York, was arrested yesterday on suspicion of a series of fraud offenses, Israel Hayom reports.
• Indictment against congressman suspected of blackmailing Rabbi Pinto
Grimm, representing New York State, has pleaded not guilty to charges that include wire fraud and tax fraud. He is expected to be released on $400,000 bail.
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Grimm is suspected of falsely reporting the salaries of employees, some of whom were in the US illegally, at a restaurant he co-owned, and concealing more than a million dollars in sales and wages.
The lawsuit also claims that the congressman lied in his testimony on the matter under oath.
Grimm, a former FBI agent, left the agency for private business and was elected to Congress in 2010. The new charge is not the end of Grimm’s troubles, as he has been under investigation for two years for alleged illegal conduct in his congressional campaign. During the campaign, he admitted to receiving between $250,000 and $300,000 in donations from followers of Rabbi Yoshiyahu Pinto.
