Archive for the tag 'corruption'

grimm2Congressman Michael Grimm, already in hot water over criminal charges that he evaded taxes and illegally employed undocumented immigrants, may have violated the internal ethics rules of the House of Representatives when he threatened to throw a reporter off a balcony in January.

The New York Times reports:

A one-page report by the office, a quasi-independent investigative body that serves almost like a grand jury, was released on Wednesday by the House Ethics Committee, the panel of lawmakers with the exclusive power to punish colleagues for ethical infractions.

The Office of Congressional Ethics, in a preliminary review, unanimously concluded in March that there was “substantial reason to believe that Representative Grimm threatened a reporter with bodily harm and engaged in a threatening or menacing act that created a fear of immediate injury,” which would violate local law in the District of Columbia as well as House ethics rules.

Grimm made headlines the night of the State of the Union when he was caught on camera threatening NY1 reporter Michael Scotto. He told the reporter he would “break him like a boy” and throw him off the balcony of the Capitol rotunda.

Scotto was interviewing him about a federal investigation into the congressman’s campaign fundraising that later led to criminal indictments of several Grimm associates. Grimm himself has so far escaped charges on that matter, but was slapped with a 20-count indictment alleging financial and employment improprieties in connection to a restaurant he operated before entering Congress.

The House panel will not investigate further at this time, setting it aside at the request of federal prosecutors.

Food

Would you risk perjury for this? (Source: WhiteCastle.com)

A sack of White Castle sliders may have just nabbed the world record for most expensive fast food meal ever.

The city agreed to dole out $32,500 of taxpayer money to compensate two men arrested and allegedly beaten for not forking over the meal to Coney Island police officers.

The case first came to light in March when two men, Danny Maisonet and Kenneth Glover filed suit against the NYPD, claiming they were falsely arrested in 2012 by police officers who wanted their meals.

The two say they got out of a cab carrying the sweaty sliders on Halloween 2012 at Neptune Avenue, where cops were rounding up a group of suspected looters. The officers demanded the burgers, the men claimed, and were rebuffed.

The New York Post describes what happened next:

Enraged by the denial, the officers began to beat the men with flashlights and eventually arrested them for obstruction of governmental administration, according to the suit.

Officers​, meanwhile,​ accused them of blocking their way as they tried to round up the looters, court papers state.

The pair were held for two days and were forced to attend several court appearances before the charges against them were tossed.

Pizzarro (Source: DCPI)

Pizzarro (Source: DCPI)

Officer Angelo Pizzarro filed the report, swearing that the men were standing in his way during the struggle with the alleged looters.

In an unrelated case, Pizzarro was described by an assistant district attorney as “not the brightest tool in the shed,” after the cop’s “bizarre and implausible” testimony regarding missing evidence caused that case to be lost. Pizzarro was part of a team of Coney Island housing cops who said they spotted a man with a gun in his waistband.

The Daily News reports:

But when Pizzarro was called to testify at a hearing in November, he claimed his memo book detailing the arrest had been “washed away” with his locker by Sandy.

Later it was learned that Pizzarro had previously handed over the missing memo book to the city Law Department in a separate lawsuit. Questioned why the memo book was not waterlogged and the ink still legible, Pizzarro came up with this explanation: “There are pens that write under water. It won’t leave a blemish, a running mark or anything.”

The judge in that case referred Pizzarro’s testimony to the Internal Affairs Bureau for investigation. It’s unclead if the “separate lawsuit” mentioned above is the White Castle suit or a third, unrelated lawsuit involving the officer.

The White Castle suit was dismissed Wednesday, with the city agreeing to pay Glover $20,000 and Maisonett $12,500.

grimm2

Grimm

Congressman Michael Grimm faces a 20-count indictment for tax evasion and illegal employment practices stemming from a restaurant he operated before running for Congress, charges he said are because the nation’s commander-and-chief wants to see him gone.

Grimm made the allegations against the Obama administration on Tuesday before a gathering of Republican supporters rallying for gubernatorial candidate Rob Astorino. He also compared the United States to oppressive regimes in Iran and North Korea.

New York Observer reported on the statements:

“They change policy, they use regulation to legislate, they circumvent the Congress–this is now the norm for the Obama administration,” Mr. Grimm fumed at the Bay Ridge Manor in Bay Ridge, Brooklyn.

“And when you look and see why they come after me so hard, every day another negative story [against] the only Republican in New York City, it becomes obvious: they don’t want any opposition. This administration wants to do what it wants to do and they want you to forget about the America that you grew up in,” he said.

… “Sometimes I wake up in the morning and I’m not sure what country I’m living in,” he said. “Four Americans are killed and murdered in Benghazi–no one’s held accountable …. The IRS, arguably the most feared agency in our entire government targeting people because of their political views. Now this happens in Iran, this happens in North Korea, but this is the United States of America.”

The site reported that the statements “drew loud cheers.”

Grimm has long maintained that the investigation against him, which began as a probe into his 2010 campaign fundraising, was a “political witch hunt” by Democrats looking to see the city’s lone Republican congressman unseated. Prosecutors, however, have submitted paperwork to the court suggesting that Grimm’s own documents show he kept two sets of books and paid employees – some of which were undocumented immigrants – in cash to avoid taxes.

Grimm’s assertion that he is the subject of political retaliation has sparked snark from colleagues, including State Senator Diane Savino. The pol, whose district is largely within Grimm’s, let forth a tirade on Facebook about Grimm’s conspiracy theory back in April:

[G]et a grip folks, Mikey is not that important, he is no threat to the power structure, he is a slick talker with a nice resume who seems to be in trouble. he was not on track for greatness as a national leader, not on track to upset the national scene. Conspiracy, please….

Grimm pleaded not guilty to the charges.

Oceana complex (Source: Google Maps)

Assemblyman Steven Cymbrowitz responded to anonymous allegations published today in a local newspaper, which claim he is in cahoots with Oceana condominium developers to privatize a portion of Brighton Beach, by saying it “pisses me off” and is “totally inaccurate.”

The response is to a Will Bredderman political column in Brooklyn Daily, which cites an anonymous source as saying the pol is “trying to broker a deal that would permit the swank, beachfront Oceana Condominiums to take over a section of the public shore.”

“I think it just goes to show what Will Bredderman and [Brooklyn Daily's publisher] Courier-Life print. There are inaccuracies in every part of it, and anything I sent to him, he didn’t write,” Cymbrowitz told Sheepshead Bites.

In the column, Bredderman points to the pol’s opposition to the elevated comfort stations in front of Oceana as evidence that the pol is attempting to clear the way for a privatized beach. They also note the 2013 bill introduced by Cymbrowitz, and first reported on by Sheepshead Bites, that would transfer jurisdiction of the beach from the more restrictive state Department of Environmental Conservation to the city’s Parks Department. The paper called the bill, which was cosponsored by Assemblyman Alec Brook-Krasny,  “a first step toward privatization.”

“I think that’s inaccurate. My response to him was simply that, by giving the jurisdiction to the Parks department, it would allow us to use the money that was received from [Brook-Krasny's predecessor] Adele Cohen years ago to build a bike path,” said Cymbrowitz. “DEC wouldn’t allow it. But if the Parks Department had jurisdiction, they would have done it. [Bredderman] didn’t write any of that.”

That bill was squashed following a Sheepshead Bites’ report, although it briefly reemerged earlier this year before being pulled again. Last year, Cymbrowitz said he killed the bill because he was disappointed with Parks’ handling of the comfort stations, although this outlet noted at the time that the bill was introduced after Cymbrowitz came out against the Oceana restrooms. Cymbrowitz said the bill’s reappearance this year was because his staff automatically reintroduced it as a matter of routine, and that he killed it after it came to his attention.

Moreover, Cymbrowitz said he doesn’t see how transferring jurisdiction from a state to a city agency helps privatize a beach, and unequivocally stated that he never had conversations with Oceana’s developers, Muss Development, or any other party about privatizing the beach.

“Absolutely not. Never. And how could… I don’t even think it’s possible to privatize a public beach. So whoever Bredderman is getting his information from is totally inaccurate. And that’s I think what pisses me off more than anything else, all the inaccuracies. Why doesn’t he name who said it, or who the conversation was with if I had a conversation? That’s not going to happen,” he said.

Muss Development has for years boasted of a “private beach” as one of the amenities at Oceana on its website. On being contacted by Brooklyn Daily, the company called it a “typo” and said they had no discussions with the assemblyman regarding the privatization of a stretch of Brighton Beach for their benefit.

That, locals say, is bunk.

“If you’re asking me what the facts are, the facts are that Oceana wanted a private beach from the beginning and marketed it that way,” said local activist and longtime Brighton Beach resident Ida Sanoff. “It is common knowledge that they claimed to be building a private beach there when they first opened. They told a number of my neighbors who looked at apartments there about a private beach. And, early on, they had security guards [on the sand in front of the development] and whoever wandered by was told it was a private beach.”

Sanoff, who is also the executive director of the Natural Resources Protective Association, and who was the first to sound the alarm about the 2013 legislation turning over jurisdiction, said she continues to have concerns about that bill.

“Of course I’m concerned,” she said. “The Parks Department does have the ability to issue franchises,” meaning allowing private concessions to operate on the beach. “So if someone, somewhere, decided this is what they wanted to do [on these beaches], once Parks has control of the beach it could be done routinely. And once it’s done here, you’ve set the precedent to do it on any beach in New York City.”

Sanoff, though, said she had no idea if that’s what Cymbrowitz’s intent is, and said she did not know of any meetings between the pol and Oceana’s developers about privatizing the beach.

“Cymbrowitz, I haven’t spoken to the man in years,” she said. “I know as much about what’s going on in his head as I do President Obama’s.”

Bredderman declined to comment on this article without approval from his editors. We will update this post if we receive a statement.

Grimm

Congressman Michael Grimm kept a cell phone registered to his undercover, mob-connected FBI alter-ego years after leaving the job, and continued to use the phone while in Congress, according to a Daily News report.

The paper cites documents released by the U.S. Attorney earlier this week that outlines their evidence in their case against Grimm, who is accused of a $1 million tax fraud scheme, as well as illegal hiring and employment practices.

The paper reports:

Rep. Michael Grimm, who posed as a mobbed-up stockbroker named Michael (Mikey Suits) Garabaldi while working undercover for the FBI, kept his wise-guy alter ego even after entering Congress, newly unsealed federal documents show.

Grimm’s cell phone was listed under a “Michael Garibaldi of Centurian Consulting” as recently as 2012, when prosecutors sought a court order for permission to track all his calls, the documents show.

The embattled Staten Island Republican, who is now under federal indictment, used the phone as his primary number as recently as last year, and even received mail addressed to a Michael Garibaldi, a source told The Daily News.

Grimm, his spokesman and his lawyer did not respond to questions Wednesday about why he used the alias more than six years after leaving the FBI — and for at least two years after entering the U.S. House in January 2011.

The story also reveals the extent of the investigation into Grimm’s 2010 campaign fundraising. That investigation came to light shortly after it began in 2012, first noted by the New York Times, yet it was unclear how far-reaching it was. The new documents show that not only were Grimm’s phone lines were being monitored by authorities, but also that of gal pal Diana Durand, who has been indicted for her alleged role in funneling illegal funds to the Republican pol, and Grimm associates Ofer Biton and Ronn Torossian, who they believed, along with Grimm, has attempted to extort money from prominent Orthodox Rabbi Yosef Pinto.

Biton has also been arrested, and is cooperating in the government’s case against Grimm.

Grimm did not respond to the paper’s requests for comment, or those of the Staten Island Advance.

In fact, he appears to be dodging questions about the investigation, having made headlines yet again this week for jumping into a car and making a getaway from this FOX Detroit reporter:

grimm2

Grimm

Federal prosecutors have released documents outlining the government’s case against Congressman Michael Grimm, revealing that Grimm’s own texts and e-mails are being entered as evidence alongside testimony from former employees and business associates.

The Daily News reports:

The preliminary list of evidence includes emails between Grimm and a “Healthalicious manager,” “documents provided by a cooperat[ing] witness,” and “records provided by a Healthalicious employee.” Also listed are “text messages between Grimm and a cooperating witness.”

The list of evidence indicates a seemingly straightforward federal case. Prosecutors plan to prove Grimm maintained a false set of books and lied in financial filings. They will contrast the phony forms with material provided by cooperating witnesses, and with Grimm’s own statements in texts and emails.

Prosecutors are turning over an extensive list of financial documents. Those include years of tax, health and labor filings by Healthalicious and its parent company, Granny Sayz, records of Grimm’s personal finances, the restaurant’s accounts, bank account and credit card records and financial disclosure forms Grimm filed in Congress from 2009 to 2012.

Prosecutors are also offering as evidence the IRS 1040 forms filed by Bennett Ofraly, Grimm’s partner in the restaurant who prosecutors say has ties to the Gambino crime family, which Grimm once investigated while an FBI agent.

Grimm pleaded not guilty to the 20-count indictment alleging the local pol hid more than $1 million in sales at a business he owned to avoid paying taxes, as well as illegally employing undocumented immigrants.

The charges surround the operations of Upper East Side eatery Healthalicious, a venture he ran from 2007 to 2010. However, he’s also charged with perjury for lying to investigators about the business’ operations when he was questioned in 2013, while already serving in the House of Representatives.

It appears the case will not be resolved until after the November 4 elections, in which he faces a challenge from Democrat Domenic Recchia.

grimm

Congressman Michael Grimm has been barred from visiting the FBI’s New York field offices since he left the agency eight years ago, calling into question if the embattled representative left on good terms as he frequently claims.

The Grimm prohibition was discovered by DNAinfo, which reports:

Federal security personnel at the FBI’s headquarters in Lower Manhattan and a satellite office in Kew Gardens, Queens, posted Grimm’s photo inside their glass-enclosed stations in the event he showed up, sources said.

They were under orders to stop him and to immediately notify higher authorities on what further action to take, according to the sources.

“He is not permitted in our space,” one source told “On The Inside.”

“He is not welcome,” a former top FBI official said.

Grimm was hit with a 20-count indictment last Monday, alleging tax fraud and illegal hiring practices at an Upper East Side eatery he ran after his stint in the FBI, and before he ran for Congress. The U.S. Attorney’s office has suggested they’re also looking into potential campaign fundraising abuses.

The congressman often touts his military service record and his career at the FBI as qualifications on the campaign trail. In the law enforcement agency, he served as an undercover operative who penetrated the Gambino crime family, and also helped bring down a ring of white-collar criminals in 2003.

But his career was cut short in 2006, when he unexpectedly resigned. He has always said that he left on good terms to start a family.

The new revelations discovered by DNAinfo cast doubt onto those claims, though, with sources telling the outlet that Grimm was being investigated by the agency’s internal monitors for breach of protocol.

They report:

Sources said Grimm’s FBI identification picture was posted shortly after he resigned from the bureau in 2006 and it now hangs with about two dozen other ex-agents and federal employees.

“They are all employees who were fired, or they were under circumstances where they were forced out or felt they should leave, and all are no longer welcome back,” the former FBI official explained.

… Sources said Grimm, 44, was under internal scrutiny before he quit over allegations that he told a woman he met during a probe that he worked undercover — a violation of FBI protocol.

The FBI’s Office of Professional Responsibility was also questioning so-called “voucher” expenses he submitted in connection with his undercover roles.

The sources believe the pressure of the inquiry played a role in his decision to exit the FBI — an agency he often professed to love, his colleagues noted — without getting a pension because he didn’t serve 20 years.

A spokesperson for Grimm told DNAinfo that the congressman was “unaware” that he was not permitted in FBI offices, and had no idea why. The spokesperson also provided a 2012 letter on FBI letterhead stating that the former agent “resigned his post in good standing with the FBI.”

Source: Facebook

Congressman Michael Grimm continues to face fallout from the criminal charges levied against him on Monday, with New York Republican leadership seeking ways to kick him off the ballot, and the national party booting him from programs to aid his reelection bid.

Grimm turned himself in to authorities Monday morning to respond to a 20-count federal indictment alleging tax fraud, systematically hiring undocumented immigrants and hiding more than $1 million in revenue from the government during his time as a restaurant owner before he became congressman. Grimm pleaded not guilty, and is portraying the investigation as a “political witch hunt” to unseat New York City’s only Republican in Congress.

While the congressman vowed to continue his reelection campaign, where he faces an aggressive bid from former Councilman Domenic Recchia, it seems Republican leadership in both his home borough and in Washington are reconsidering their support.

The Wall Street Journal reports that Staten Island GOP leadership are looking for ways to boot Grimm from the ballot altogether:

The road to replacing the Staten Island congressman on the ballot is narrow and complicated because the deadline for a challenger to get on the ballot passed earlier in April. Election-law experts and Republican Party officials said the sole viable option under New York law appears to be to nominate the Staten Island congressman for another office, such as running for an open judge position.

… Potential GOP candidates to run in Mr. Grimm’s place include state Sen. Andrew Lanza and state Assemblywoman Nicole Malliotakis, a person familiar with the matter said.

The paper reports that a judgeship might be the only route available, but there are no open positions at the moment. Leadership told the paper that could change by September. A defense attorney who has worked on other federal tax evasion charges noted that it’s a tough rap to beat since the prosecution builds its case on documentation as opposed to witness testimony.

Meanwhile, in D.C., Grimm’s Republican colleagues are cooling on his prospects, according to the Daily News. He’s been removed from the National Republican Congressional Committee’s “Patriot Program,” which helps candidates in swing district raise money and receive other support from the national party. He’s also been dis-invited from a fundraiser, and House Speaker John Boehner declined to defend the Congressman when questioned about the case.

The change in fortune for one of the GOP’s more charismatic candidates has him speaking in the third person:

“There are people that don’t like Michael Grimm because Michael Grimm is outspoken,” Grimm said. “I’m a Marine. I don’t relent.”

The congressman also took his message straight to supporters, posting a somewhat lengthy update on Facebook yesterday thanking them for their continued support and claiming that the “trumped-up charges against me are false.”

grimm

After turning himself into authorities yesterday morning, Republican Congressman Michael Grimm, a former FBI agent, pleaded not guilty to a 20-count indictment alleging the local pol hid more than $1 million in sales at a business he owned to avoid paying taxes, as well as illegally employing undocumented immigrants.

The charges surround the operations of Upper East Side eatery Healthalicious, a venture he ran from 2007 to 2010. However, he’s also charged with perjury for lying to investigators about the business’ operations when he was questioned in 2013, while already serving in the House of Representatives.

“Grimm made the choice to go from upholding the law to breaking it. In so doing he turned his back on every oath he had ever taken. Even after his return to public service, when called to account for his actions and questioned under oath Grimm went for the cover up, and lied about his role in his own business,” said U.S. attorney Loretta E. Lynch, who is prosecuting the case.

Lynch accused Grimm of under-reporting workers’ wages, many of whom were illegally working in the U.S., and also underreported the amount of money earned through the business – dodging local and federal tax liabilities by hundreds of thousands of dollars.

When Grimm was questioned by authorities representing Healthalicious employees suing him in 2013 as part of a federal lawsuit, he allegedly lied under oath hide the company’s questionable practices, including denying that he paid workers cash.

The entire indictment can be read here [pdf]. He is charged with perjury, wire fraud, mail fraud, obstruction of justice, employment of illegal immigrants, obstructing and impeding tax laws, and conspiracy to defraud the United States – among others. He faces up to 257.5 years in prison.

The pol, who represents all of Staten Island as well as a large swath of Southern Brooklyn that includes Bay Ridge, Bensonhurst, Gravesend and Sheepshead Bay, was released on $400,000 bail after pleading not guilty yesterday.

The charges were somewhat surprising, as many believed that Grimm would eventually be the target of an indictment for campaign fundraising violations following an investigation that has been ongoing for at least two years. Although several associates of the pol have been busted in relation to that investigation, it appears the government seized on his business dealings after failing to connect fundraising improprieties directly to the elected official.

But Lynch said yesterday that the current charges could be expanded as the investigation continues.

The New York Times reports:

Loretta E. Lynch, the United States attorney for the Eastern District of New York, did not detail why the investigation had changed. “Whenever there’s an investigation into someone’s business activities, it is usually very broad-reaching,” she said, adding that a larger investigation was continuing.

But, she said, Mr. Grimm had a sophisticated understanding of the law and finance, thanks in part to his background as an F.B.I. agent, where he did undercover work on Wall Street.

Aside from his work at the FBI, Grimm was an accountant.

Grimm remained defiant after appearing in court, holding a press conference where he described the investigation as a “political witch hunt” and vowed to continue his campaign for reelection.

The congressman did forfeit his seat on the House Financial Services Committee as a result of yesterday’s indictment.

Lynch said that her office will now also begin reviewing the cases he worked while at the FBI for potential malfeasance.

grimm

Congressman Michael Grimm turned himself into authorities this morning and will face federal charges. While the Republican politician has been dogged by a federal probe into his campaign fundraising for several years, it appears the charges to be unveiled today are connected to a restaurant he operated before entering Congress, and is separate from the campaign investigation.

The Washington Post reports:

While the investigation has focused on Grimm’s fundraising, U.S. Attorney Loretta Lynch is expected to announce an indictment centered on his restaurant business, which Grimm launched after leaving the FBI in 2006, according to officials familiar with the investigation who spoke on the condition of anonymity to discuss the pending charges.

The state fined the Upper East Side restaurant, Healthalicious, $88,000 for not providing workers compensation. In a lawsuit against the company, workers accused the owners of not paying proper wages and sometimes giving out cash payments to skirt tax and business laws.

It is unclear whether federal prosecutors will eventually expand the charges to encompass Grimm’s campaign activities, but investigators have been moving on that side of the case against several key players, some with ties to the restaurant.

The company itself appears to have ties to persons involved in the fundraising probe. The operating company run by Grimm was connected to a company affiliated with Ofer Biton, the Israeli national who pleaded guilty to visa fraud. Biton not only helped raise hundreds of thousands of dollars for Grimm, he reportedly sought the politician’s help in obtaining a green card.

Biton also served as the middle man between Grimm and popular Rabbi Yoshiyahu Yosef Pinto, who helped raise money for Grimm’s 2010 campaign, and who is now facing allegations of bribing Israeli law enforcement officials and looting his charities.

The business’ accountant was also the accountant for Grimm’s campaign, and was a key witness before the federal grand jury in the case. While the indictment is expected to surround the business, the Daily News reports that the alleged financial irregularities are also linked to the campaign.

The Daily News reports:

Wayne Muratore answered questions about suspicious expense claims and tax documents just days before the panel opted to charge Grimm after a two-year federal probe, the sources said.

… The charges against Grimm are linked to alleged financial irregularities in the ex-FBI agent’s 2010 congressional run and to the eatery Healthalicious.

Muratore faces no criminal charges, but was visited several weeks ago by FBI officials and eventually grilled by prosecutors, the sources said.

He reportedly told the feds that certain expenses and tax documents linked to Grimm were not his work, the sources said.

Grimm, through an attorney, said that, ultimately, his name would be cleared, and he is expected to continue his campaign. New York Times reports:

Since word of his indictment emerged on Friday, Mr. Grimm has shown no sign of curbing his campaign. A lawyer for Mr. Grimm said he was the victim of a “politically driven vendetta.” And for now, party leaders are sticking with Mr. Grimm, whose district includes Staten Island and part of southern Brooklyn.

John Antoniello, the Staten Island Republican chairman, said he spoke to Mr. Grimm on Friday, and Mr. Grimm said he definitely planned to continue his campaign.

Meanwhile, on Friday, prosecutors indicted Grimm’s former girlfriend, Diana Durand, on charges of using straw donors to make illegal campaign contributions to Grimm and other Republican politicians.

Grimm represents Staten Island, Bay Ridge, Bensonhurst, Gravesend, Coney Island and parts of Sheepshead Bay.

« Prev - Next »