BROOKLYN — Congressman Michael Grimm pleaded guilty Tuesday to one count of tax fraud for underreporting profits and wages at Manhattan restaurant he co-owned — but defiantly said that he will not resign.
Grimm originally called the 20-count indictment a "political witch hunt" and pleaded not guilty to the charges in April, but he said on Tuesday that he was "taking full responsibility for" the crimes.
Grimm, 44, entered the plea at Brooklyn Federal Court for the felony charge, one of the counts he was hit with earlier this year after federal authorities said he hid more than $1 million in profits from his Upper East Side eatery Healthalicious.
"Although it was a little restaurant, I made some very big mistakes," Grimm said outside of court on Tuesday afternoon. "It's difficult to admit when you're wrong, but I was."
The third-term congressman copped to underreporting sales receipts in 2009, as well as workers' salaries. He agreed to restitution to the government under the plea.
The charge carries a maximum of three years in prison and doesn't have a mandatory sentence, Judge Pamela Chen said in court. Lawyers for the government suggested Grimm serve a 25 to 30-month sentence, while Grimm's lawyers asked the judge to only consider a 12 to 18-month sentence.
Outside of court, Grimm said that he would not resign from his post in Congress, a position to which he was just reelected in November.
"As I'm able to serve, I'm going to serve," Grimm said. "As of right now, I'm still in a capacity to serve, and that's exactly what I plan on doing."
Grimm admitted to falsely reporting profits of $536,869 on tax forms in 2009, which was lower than the true profit figures. He also reported paying $56,843 in salaries and wages to employees, but that did not include workers he was paying off the books, he said.
His sentencing was scheduled for June 8, 2015. The amount he will have to pay back to the IRS, state Department of Finance and Worker's Compensation Fund is still being determined.
Under the plea deal, Grimm waived the right to appeal any sentence a judge could set that is less than 33 months.
