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updated: 4/28/2014 11:35 AM

NY lawmaker pleads not guilty to U.S. fraud charges

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Associated Press

New York Congressman Michael Grimm has pleaded not guilty to a 20-count federal indictment that includes charges of mail fraud, wire fraud and tax fraud.

The Staten Island Republican was arraigned Monday in Brooklyn. He will be released on $400,000 bond.

He is charged with engaging in schemes to underreport wages for restaurant workers, including some who were in the country illegally. He is accused of concealing more than $1 million in sales and wages.

Authorities say that when he was deposed by an attorney representing former employees in a lawsuit, Grimm lied under oath about his allegedly fraudulent business practices.

Authorities allege the fraud occurred from 2007 to 2010. Grimm, a former FBI agent, was elected in 2010 and took office in 2011.

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