Sources Say Rep. Grimm Floating Plea Deal In Federal Case

Rep. Michael Grimm is due to go on trial in October to face a host of charges, including mail and wire fraud, but there is chatter this week in political circles that the congressman has floated a plea deal to federal prosecutors.

Sources from both sides of the aisle tell City & State that Grimm has proposed pleading guilty to a misdemeanor on the conditions of no jail time and being able to keep his seat. The sources also said that Grimm is particularly concerned with keeping his law license.

The 20-count federal indictment of Grimm includes allegations that he skimmed more than $1 million from a Manhattan health food restaurant he owned prior to running for office, as well as charges that he hired undocumented workers and filed false tax returns for the restaurant. If convicted, the charges carry a maximum prison sentence of 20 years.

In a written statement sent to City & State in response to inquiries for this article, a spokesman for Grimm said that the congressman had not yet had an opportunity to meet with the the U.S. Attorney's Office for the Eastern District of New York, which brought the charges against him, as his counsel was only just approved by a U.S. District Court judge this week. The Daily News reported last Friday that Grimm had replaced his original lawyers with former Assistant U.S. Attorney Daniel Rashbaum.

“The Congressman’s counsel was just approved by the court on Monday of this week and has not yet had time to review the discovery material nor have any substantive conversations with EDNY," said Nick Iacono, Grimm's press secretary. The statement from Grimm's office gave no indication as to whether a plea deal was proposed or is being considered.

A spokesperson for U.S. Attorney Loretta Lynch declined to comment. 

One prominent legal expert, who spoke on the condition of anonymity, said that it would be "smart" for Grimm to cut such a deal to avoid the distraction of running for re-election with a looming federal trial. The attorney added that it would be a major blow to the U.S. Attorney's office if it were to accept such an offer months after it publicized a strongly worded federal complaint.

"It would surprise me if there were that kind of deal [on the table] because it seemed like a strong complaint, unless some of their witnesses have gone bad or the case fell apart in some way or was weakened because some of the people they were relying on, [but] that could happen," the attorney said. "[The witnesses] may have their own issues and they clam up or take the fifth. You never know."

The issue of Grimm keeping his law license would be entirely separate from any plea deal, as prosecutors have no discretion over that decision. Each of the state Supreme Court's appellate divisions has its own disciplinary committee, which has the power to suspend or disbar attorneys depending on the infraction. Were a plea deal to be made, Grimm would still face disciplinary action from the Second Appellate Division, which governs Richmond County. 

Grimm, a Republican who represents Staten Island and parts of Brooklyn, is running for re-election against former City Councilman Domenic Recchia, the Democratic nominee.

Grimm is scheduled to appear in court on August 8th, when a trial date is expected to be set.

Additional reporting by Jon Lentz