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Crime and punishment

Rep. Michael Grimm indicted on 20 counts, pleads not guilty

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Rep. Michael Grimm (R-NY) was slapped with a 20-count federal indictment on Monday stemming from allegations that he hid $1 million in earnings from his New York restaurant and employed undocumented workers.

A former FBI agent-turned-lawmaker, Grimm is accused of mail and wire fraud, filing false tax returns, hiring undocumented workers, perjury, and obstruction. Between 2007 and 2010, Grimm paid "a significant portion" of his employees' wages under the table, and kept two sets of financial records to hide his misdeeds, according to the indictment. Grimm also allegedly paid some staff entirely in cash, thus keeping their records completely off the books.

In announcing the indictment, U.S. Attorney Loretta Lynch said Grimm "turned his back on every oath he ever took."

Grimm turned himself in to authorities Monday morning and pleaded not guilty. He was released on $400,000 bond and will appear in court next month.