Representative Michael G. Grimm, a Republican from Staten Island who was easily re-elected to his third term in Congress last month despite a pending federal indictment, has agreed to plead guilty to a single felony charge of tax fraud, according to three people with knowledge of the matter.
A former Marine and agent with the Federal Bureau of Investigation who first ran for office as a law-and-order corruption fighter, Mr. Grimm, 44, is scheduled to appear in federal court in Brooklyn on Tuesday for a plea hearing, according to the docket sheet in his case, which provides no further detail. His trial was scheduled to start Feb. 2.
The indictment against Mr. Grimm alleged that he essentially kept two sets of records and provided his accountant with doctored books, leading to inaccurate tax forms being filed with the government.
Prosecutors said Mr. Grimm concealed more than $1 million in gross receipts for the restaurant and failed to report hundreds of thousands of dollars in employee wages, thus fraudulently lowering his federal and state tax payments.
If it wasn't for oppressive state and federal laws requiring the payment of income tax, Mr. Grimm would still be in Congress today.