Republican Congressman Arrested And Indicted On 20 Federal Criminal Charges
Author: Randa Morris April 30, 2014 4:59 am
Congressman Michael Grimm
Congressman Michael Grimm
GOP Congressman Michael Grimm, who was taken into federal custody on Friday, April 25, 2014, has been indicted on 20 federal, criminal charges. The charges include conspiracy to defraud the United States government, healthcare fraud, wire fraud, mail fraud, perjury, obstruction, obstructing and impeding, aiding and assisting in the preparation of false and fraudulent tax returns and unlawful employment of undocumented workers.
The 32 page indictment follows a lengthy investigation into Grimm’s business dealings. As co-owner of Granny Sayz LLC, which was doing business in the state of New York as Healthalicious, Grimm was the person directly in charge of company payroll and reporting. Federal prosecutors state that beginning in 2007, Grimm used a variety of methods to defraud the government, including recruiting and hiring undocumented workers, whom he paid in cash.
According to the indictment, Grimm paid some employees part of their wages in cash, while others were paid entirely in cash. This was done as a means of hiding over $1 million in wages from various city, state and federal agencies, whom are charged with the responsibility of collecting taxes on wages.
In January 2013, two former Healthalicious employees filed suit in federal court, reporting that Grimm failed to pay minimum wage and overtime. Grimm was deposed during the trial and lied under oath, claiming that he did not pay his employees in cash. Again, during a deposition before Congress, Grimm stated he did not pay employees in cash.
Grimm kept two sets of books, one for reporting purposes, and another for his own records. The records clearly shows the difference between the amount Grimm actually paid workers and what he reported to the IRS and New York City and state authorities. Additionally, Grimm used falsified data to qualify for lower state healthcare premiums.
Grimm paid the cash wages out of the company’s daily cash sales. This also created a discrepancy between the amount of actual gross sales the company generated, and the actual amount reported to authorities. This led to the state of New York collecting at least $1.3 million less in sales tax than Grimm was legally required to pay.
Grimm also defrauded his business partners, by reporting less than actual wages and gross sales. Additionally, he defrauded his company accountant and the two agencies hired to do the company’s payroll, by concealing the actual records from both.
Grimm says he’s innocent of all wrong doing, and claims he’s being persecuted for political reasons. On April 28, 2014, Grimm submitted his resignation from the House Financial Services Committee. In a letter to House Speaker John Boehner, Grimm says his intention is to resume the post once his legal matters have been successfully resolved.
Fat chance. Federal prosecutors have more than enough evidence to send Grimm to jail for the rest of his life, including e-mails and electronic records of the company’s actual wages and gross sales.
Maybe if Republicans would stop electing criminals, liars, cheats and frauds to government, they could stop ranting about all the corrupt politicians in Washington.
Former Va. Gov. McDonnell, wife indicted on federal corruption charges
Published January 21, 2014
Former Virginia Republican Gov. Bob McDonnell and wife Maureen were indicted Tuesday on federal corruption charges for allegedly accepting gifts, vacations and loans from a businessman seeking special treatment from the state for his fledgling business.
The 14-count indictment includes charges of conspiracy, wire fraud and false statements in connection with the McDonnells’ relationship to Jonnie R. Williams Sr., chief executive of nutritional supplements maker Star Scientific Inc.
The couple will be arraigned Friday morning.
Following announcement of the indictment, McDonnell called the allegations “false” and said he “deeply” regretted accepting “legal” gifts and loans and that he takes “full responsibility” for his poor judgment.
“However, I repeat emphatically that I did nothing illegal for Mr. Williams in exchange for what I believed was his personal generosity and friendship,” McDonnell said in a statement.
“I never promised -- and Mr. Williams and his company never received -- any government benefit of any kind from me or my administration. We did not violate the law, and I will use every available resource and advocate I have for as long as it takes to fight these false allegations.”
In a press conference late Tuesday McDonnell claimed the federal prosecutors "stretched the law to its breaking point" in order to bring the indictment, saying his action were no different than any other governor.
In July, McDonnell said he had repaid more than $120,000 that Williams, a major political donor, had given his wife and a real estate business McDonnell and his sister owned.
He also apologized for embarrassing the state but steadfastly denied breaking any laws.
The 43-page indictment reveals the extent of the relationship, including McDonnell’s use of Williams’ private jet, and the financial strain his successful 2008 gubernatorial campaign put on his family.
“We are broke,” Maureen McDonnell tells a staffer in an email after her husband nixed Williams buying her an Oscar de la Renta dress for the December 2009 gubernatorial inauguration ball, according to the court documents. We “have an unconscionable amount in credit card debt already, and this Inaugural is killing us!!”
Court documents also show that Williams paid $15,000 for catering at the 2011 wedding of one of McDonnell’s daughters. McDonnell has said he didn’t disclose the gift because it was a present to a family member, not an elected official.
McDonnell left office earlier this month after four years as governor.
Virginia law limits governors to a single term.
The federal investigation that preceded the charges also overshadowed the final months in office for the once-rising star of the Republican Party as well as the state’s 2013 gubernatorial race, won in November by Democrat Terry McAuliffe.
Williams is no longer the company's chief executive officer.
A McDonnell spokesman in July broke down the $124,115.17 in repayments, including principal and interest, as $52,278.17 for a personal loan Williams made to Maureen McDonnell in 2011 and $71,837 for two loans to the MoBo Real Estate Partners.
The Associated Press contributed to this report.
Friday, Apr 11, 2014 09:25 AM CST
Former GOP Gov. John Rowland indicted on federal charges
After once having to resign as guv over a corruption scandal, Rowland's in trouble with the law yet again
Elias Isquith Follow
Topics: NBC Connecticut, John Rowland, Lisa Wilson-Foley, Brian Foley, FEC, Corruption, Indictment, News, Politics News
Former GOP Gov. John Rowland indicted on federal chargesJohn Rowland (Credit: AP/Jessica Hill)
After resigning from his radio show last week amid rumors of an ongoing investigation, former Republican governor of Connecticut John Rowland was indicted on federal charges on Friday for allegedly attempting to conceal his paid work on two separate congressional campaigns.
The indictment by a New Haven grand jury is on seven counts. It alleges that in 2009-2010, Rowland did paid work for a congressional candidate in Connecticut’s 5th District without informing either his radio show audience or the FEC. It also alleges that in 2011-2012, Rowland pulled a similar move, this time receiving money for pretending to do work at a nursing home owned by the husband of candidate Lisa Wilson-Foley.
According to the indictment, Wilson-Foley wanted Rowland’s help but worried that, given his previous incidents with the law (for which he served 10 months in prison), associating him with her campaign would bring negative repercussions. For his part, Rowland wrote in an email that he “want[ed] to stay under the radar as much as possible.” Rowland is alleged to have ultimately received $35,000 from the campaign, money he did not disclose to the FEC.
Rowland’s total charges carry a maximum of 50-plus years in prison if convicted.
More from NBC Connecticut:
After he was released from prison, Rowland promised “to be a better person” and landed a job as an economic development coordinator. He also became a popular AM radio commentator.
Lisa Wilson Foley and Brian Foley pleaded guilty last month to charges they violated federal campaign laws in connection with the scheme. At the time of the guilty pleas, a spokesman for the U.S. Department of Justice confirmed Rowland was an unnamed co-conspirator in the case.
Wilson-Foley, who lost the Republican primary, and her husband each face up to one year in prison and a fine of up to $100,000 at sentencing.
Rowland is charged with two counts of falsification of records in a federal investigation, two counts of causing false statements to be made to the FEC, two counts of causing illegal campaign contributions and one count of conspiracy.
Elias Isquith is an assistant editor at Salon, focusing on politics. Follow him on Twitter at @eliasisquith, and email him at [email protected]
Since 1854 how many US Senators indicted? How many were Republicans?
Since the Republican Party was created, how many sitting US Senators have been indicted for crimes? And how many of these were Republicans? (Not family members, not business associates, actual US Senators currently in office, so that we may have a manageable figure).
Update : Ten have been indicted since 1854; eight were Republicans. (To the answer contending I should ask the same about Democrats to be fair, I hope you can do the math there).
Additionally one was indicted in 1808 (John Smith of Ohio) for conspiring with Aaron Burr, but was acquitted, who was a member of the forerunner of the Democratic Party.
Ted Stevens R Al 2009
Kay Bailey Hutchinson R Tex 1994
David Durenberger, R-Minn 1993
Edward Gurney, R-Fla 1976
Truman Newberry, R-Mich 1920
John Hipple Mitchell, R-Ore.: In July 1905
Joseph Burton, R-Kan 1904
Charles Dietrich, R-Neb 1904
Burton Wheeler, D-Mont 1924
Harrison Williams Jr., D-N.J 1981