Michael Gerard Grimm (born February 7, 1970)[2] is the future former United States Representative for New York's 11th congressional district, serving since 2011. Numbered as the 13th District during his first term, the district consists of Staten Island and parts of Brooklyn. Grimm is a member of the Republican Party and is the only Republican representing a significant portion of New York City. He is a former FBI agent, businessman, attorney, and U.S. Marine, having served in the Persian Gulf War.
On April 28, 2014, Grimm was charged with a 20-count indictment by federal authorities for fraud, federal tax evasion, and perjury.[3] On December 23, 2014 he pleaded guilty to a single count of felony tax fraud, and "acknowledged committing perjury, hiring illegal immigrants and committing wire fraud"[4] On December 30, 2014, he announced he would resign from Congress effective January 5 2015.
Early life and education
Grimm was raised as a Catholic in Queens, New York, the son of Petrina (née Castronova) and Gerard Grimm. He is of German, Irish, and Sicilian descent.[5] He graduated from Archbishop Molloy High School in 1988.[6]Grimm entered active duty with the U.S. Marine Corps in 1989. In 1990, he was deployed overseas as part of the 6th Communication Battalion. He received a combat promotion to corporal,[7] and was awarded the Combat Action Ribbon, Navy Unit Commendation, the Meritorious Unit Commendation, among other awards.[citation needed]
Grimm received a BBA in accounting from Baruch College in 1994. He transferred to the U.S. Marine Corps Reserve and was discharged from service in 1997.[8] He received a Juris Doctor (magna cum laude) from New York Law School in 2002.[9]
Career
Federal Bureau of Investigation (1991–2006)
Grimm entered the FBI as a clerk in 1991. In 1995, he entered the FBI Academy in Quantico Station, Virginia. He graduated as a special agent and was certified to become an undercover agent. He transitioned into undercover agent work, eventually working in the FBI Gambino Squad and was responsible for learning about the inside activities of Peter Gotti, John Gotti's brother.[10] Grimm worked for the FBI as an agent for 9 years.In 2011, Evan Ratliff, writing for The New Yorker, reported that Grimm had been the subject of an internal investigation into allegations he abused his authority as a FBI agent in a nightclub in 1999.[11][12] At the time of The New Yorker report, the New York Police Department and U.S. Justice Department had not released documents regarding the alleged incident. Grimm stated that the incident had been fully investigated and that he had been cleared of all allegations.[13][14]
During his time with the FBI, Grimm spent two years posing as a small cap stocks broker, uncovering white-collar criminals on Wall Street.[10] According to Grimm, the firm was involved in money laundering, making false trades, and manipulating stocks.[15] After building a strong case for two years, he and the firm's partners were arrested together, at which point, the police informed the group that they had been infiltrated by an undercover agent.[15] Grimm stated in 2011 that he has long been aware of the possibility that people may try to take revenge on him.[16] He left the FBI in 2006, citing his exhaustion from working long hours.[17]
Business and finance (2006–2010)
Before joining the FBI, Grimm worked for a year for Whale Securities,[18] an investment banking firm.[19] Shortly before leaving the bureau, Grimm invested in Texas luxury real estate with former agent Carlos Luquis.[18]In 2006, Grimm founded a small health food restaurant called Healthalicious in Manhattan.[20] He co-owned and served as principal and chief executive officer of Austin Refuel Transport, an Austin, Texas-based bio-fuel company.[21] As of 2011, Grimm owned 28% of the company, although he is no longer involved in daily operations nor is he CEO. In July 2011, the New York Daily News reported that Austin Refuel Transport had received eleven safety violations in two U.S. Department of Transportation checkups.[22] Grimm’s spokesman said that he now "has no authority or managerial role in the daily activities of the company. He is simply a silent investor."[23]
U.S. House of Representatives (2011–present)
Elections
- 2010
Grimm's primary win was divisive for the Republican Party leadership, which was more in favor of Allegretti.[30] His campaign gained national attention from the Tea Party and the National Republican Congressional Committee, which contributed $90,000 to Grimm's campaign.[31] He received endorsements from high profile Republicans, including Rudy Giuliani,[32] John McCain, Sarah Palin.[33] and former President George H.W. Bush, who applauded his service in the Gulf War.[34]
Grimm faced incumbent Michael McMahon in the general election. On October 12, the Staten Island Advance reported that it had been receiving emails from the McMahon campaign attacking Grimm's business credentials.[35] The emails claimed that Grimm's real estate and restaurant investments were failures despite Grimm's repeated insistences that they were successful.[36] Grimm reportedly admitted in an interview with the Staten Island Advance newspaper that his former restaurant in Manhattan, Healthalicious, had been on the verge of bankruptcy, forcing him to sell his stake in it.[17] A major difference between the two candidates was the issue of the U.S. economic stimulus package, which the Staten Island Advance said was the "starkest contrast" among the two candidates. Grimm stated that the stimulus was a "huge waste" of taxpayer money and was ineffective in generating job creation and economic recovery, whereas McMahon cited improvements in the state budget and renovations on the Staten Island Expressway and the Saint George Ferry Terminal as direct successes of the stimulus.[37]
On November 2, 2010, Grimm defeated McMahon in the race by 51%–48%. The Staten Island Advance reported that Grimm won in large part due to his political signs, which became popular among his supporters. They stated, "McMahon raised my property taxes 18.5%".[38]
- 2012
- 2014
Grimm faced Democratic Party nominee Domenic Recchia in the general election. Grimm was endorsed by the Association of Flight Attendants-CWA, the International Union of Painters and Allied Trades, the United Transportation Union, and the Humane Society Legislative Fund.[43][44] Grimm defeated Recchia on election night, November 5, 2014.
Tenure
During an interview of all freshmen Republican members with Sean Hannity, Congressman-elect Grimm took exception to being asked if he was a conservative. He replied that he was "American first" and that "we have become way too polarized," indicating a desire for compromise with Democrats.[45] Grimm did not join the Tea Party Caucus within the House, and instead joined the more moderate Republican Main Street Partnership.[46]Fiscal issues
Grimm was appointed to the House Financial Services Committee, which the Staten Island Advance observed as a major opportunity for Grimm to impact the debate on financial reform. Roughly 70,000 of his constituents were involved in financial services, making this a vital issue for his political profile.[47]Grimm introduced legislation that would require potential whistleblowers to report wrongdoing to their employers before reporting it to the Securities and Exchange Commission if they want to receive a cash reward from the SEC.[48]
Grimm voted for the fiscal cliff compromise bill that permanently extended most of the Bush tax cuts.[49]
Gun control
Following the shooting of Gabrielle Giffords in 2011, Grimm voiced support for "security-based situational awareness training", including how to spot suspicious people, when to run for an exit, and how to keep guards at close range. Grimm also said congressmen should consider carrying firearms. House Leader John Boehner called his suggestions an "excellent idea" and indicated that security would be a major focus for Congress in 2011.[50]Abortion
Grimm voted in favor of the Pain-Capable Unborn Child Protection Act, a bill banning abortions after the 20th week of fertilization.[51]Healthcare
Grimm voted to repeal the Patient Protection and Affordable Care Act in the House, as he had promised during his campaign.[52] Grimm was challenged as being "hypocritical" by several Democrats for enrolling in the congressional health-care plan.[53][54]Immigration
Grimm has expressed support for immigration reform[55] and was one of six Republicans to vote against an amendment that would have resumed deportation of “Dreamers.”[56]Israel
Grimm made Israel a strong priority during his term. Grimm was appointed to the House Republican Israel Caucus in January 2011, serving as co-chair.[57] In February 2011, as House Republicans were pushing for deep cuts in discretionary spending, Grimm wrote a letter to Eric Cantor saying he would vote against any budget that would reduce foreign aid to Israel.[58] Grimm was also named chair of the House Republican Policy Committee's Task Force on Foreign Policy.[59]Syria
Grimm opposed a military strike on the Assad regime in Syria, stating that “I am no longer convinced that a U.S. strike on Syria will yield a benefit to the United States that will not be greatly outweighed by the extreme cost of war.”[60]Fundraising allegations by Rabbi Pinto
According to a January 27, 2012 article in the New York Times, several followers of Orthodox Rabbi Yoshiyahu Yosef Pinto said Grimm's campaign had accepted questionable donations. According to the report, three of Pinto's followers said that Grimm or Ofer Biton, a top aide of Pinto's, had told them that the campaign would find a way to accept donations that were over the legal limit. Grimm stated, "Any suggestion that I was involved in any activities that may run afoul of the campaign finance laws is categorically false and belied by my life of public service protecting and enforcing the laws of this country." [61]Hurricane Sandy aid
In June 2013, Grimm stated that he believed water fees should be waived for survivors of Hurricane Sandy who had been displaced from their homes. Under New York City's Department of Environmental Protection rules, all homeowners are subject to a minimum charge of $1.19 per day, even if a home uses no water during a given period. Residents who had been displaced from their homes for long periods of time received water bills over $500 for damaged, vacant properties. Grimm called the bills "ridiculous," stating "That's $500 these people could use to replace a washer or dryer or refrigerator swept out to sea during Sandy."[62][63]Altercation with reporter
On January 28, 2014, NY1-TV political reporter Michael Scotto was interviewing Grimm in a balcony-hallway of the U.S. Capitol building, asking him about his thoughts on the recently concluded 2014 State of the Union Address. He then tried to question Grimm about a campaign finance investigation. Grimm stated that he would only discuss the State of the Union speech, and not the investigation. As Scotto started to mention the investigation again, Grimm walked off. Scotto then turned to the camera and implied that Grimm didn't want to face the issue on-camera. Grimm then appeared to intimidate Scotto, saying that he would "break (Scotto) in half," as well as threatening to throw Scotto over the balcony.[64]Grimm issued a statement defending his behavior, saying that he was annoyed by what he called a "disrespectful cheap shot" from Scotto.[65][66] The next day, Grimm contacted Scotto to offer an apology for his behavior, which Scotto deemed to be sincere.[67] He also issued a written statement apologizing for his behavior, saying, "I shouldn’t have allowed my emotions to get the better of me and lose my cool."[68] An unnamed former staffer for Grimm and NY1-TV political director Bob Hardt reported that Grimm had behaved in a similar manner to other reporters on previous occasions.[69][70]
Flood insurance reform
In early 2014, Grimm and Bill Cassidy co-sponsored the Homeowner Flood Insurance Affordability Act. In March 2014, the bill was passed by the U.S. Senate and subsequently signed into law by President Obama. The law repealed exponential increases in flood-insurance rates for homeowners in flood-prone areas, preventing "skyrocketing" flood insurance premiums for 5.5 million Americans.[71][72]Environmental views
According to Politico, in April 2014 Grimm became "the first sitting House Republican to stop denying the science that humans cause climate change." Speaking about his views on global warming, Grimm stated: "The majority of respected scientists say that it’s conclusive, the evidence is clear. So I don’t think the jury is out.”[73][74]Committee assignments
Caucus memberships
- Friends of Switzerland Caucus (Co-Chair)
- House Republican Israel Caucus (Co-Chair)
- House Oceans Caucus (Co-Chair)
- International Conservation Caucus
- Sportsmen's Caucus
Federal criminal investigation
In August 2012, the office of the United States Attorney for the Eastern District of New York said it was investigating Grimm's 2010 campaign.[75] In November 2012, the House Ethics Committee decided to inquire into the campaign but agreed to "defer consideration" of it at the Department of Justice's request.[76]In January 2014, the FBI arrested Diana Durand[77] on charges that she had illegally donated more than $10,000 to Grimm's 2010 campaign. Durand allegedly gave the campaign $4,800, the legal limit, but then used straw donors to donate more than $10,000 illegally. The FBI also charged Durand with lying to federal agents about the matter. Grimm denied any wrongdoing.[78] In September 2014, Durand pleaded guilty to making illegal contributions to Grimm's 2010 campaign.[79]
The investigation, which originally focused on Grimm's 2010 fundraising, branched out to include Grimm's prior business dealings. On April 25, 2014, Grimm's attorney was advised by the U.S. Attorney's office that his client would be indicted on criminal charges related to Healthalicious.[80][81] On April 28, prosecutors unsealed a 20-count indictment charging that Grimm and others concealed over a million dollars of the restaurant's sales and wages from both the U.S. federal government and the State of New York.[3] Grimm surrendered to the FBI that morning.[82] Grimm pleaded not guilty to all charges and was released on $400,000 bond. He told reporters that he not only had every intention of fighting the charges, but also of staying in office and running for a third term.[83]
Grimm pled guilty to one charge of felony tax evasion on December 23, 2014. He admitted to under-reporting Healthalicious' revenues by over $900,000 over four years and filing false tax returns based on that under-reported income. He also admitted to using the under-reported receipts to pay restaurant expenses, as well as make under-the-table cash payments to employees. As part of the plea bargain, the other charges were dropped. However, he admitted to two of the offenses in the original indictment—knowingly employing people ineligible to work in the United States and lying in a 2013 deposition. Sentencing is scheduled for June 2015; he could face as much as 30 months in prison.[84][85]
Grimm admitted to making mistakes, but when a reporter asked him if he would resign, he said, "Absolutely not."[84] He made this statement despite longstanding House rules that discourage a member convicted of a felony from taking part in floor votes or committee work until the House Ethics Committee reviews the matter. Although there is no constitutional rule barring Grimm from voting, he will be strongly discouraged from doing so by the Republican leadership, and the House Ethics Committee has indicated in the past that convicted felons can be disciplined if they do take part in committee or floor votes. On December 29, 2014, it was reported that after Grimm had spoken to House Speaker John Boehner he had changed his mind and would resign.[86][87]
Personal life
Grimm lives on Staten Island.[2] He is single with no children.[5]
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