Rep. Michael Grimm pleads guilty to tax fraud

NEW YORK, Dec. 23 (UPI) -- U.S. Rep. Michael Grimm, R-N.Y., pleaded guilty to one count of tax fraud Tuesday, an act that had Minority Leader Nancy Pelosi calling for his resignation.

The congressman pleaded guilty to just one count of the 20-count indictment he was issued in April. He is accused of underreporting wages and profits for his chain of Manhattan health-food restaurants, Healthalicious. Grimm initially pleaded not guilty to the indictment.

Grimm allegedly concealed about $1 million in gross receipts and hundreds of thousands of dollars in employee wages, paying cash and filing incorrect tax forms.

He pleaded guilty to one count of aiding in the preparation of a false tax return in 2009.

As a result of his plea, Grimm agreed to pay restitution to the IRS and New York state for tax returns from 2007 to 2010. The amount due is undetermined.

He faces three years in prison for the charge and is scheduled to be sentenced June 8.

Pelosi said Grimm, who was elected to a second term in November, should resign.

"Now that the election is over, Congressman Grimm is finally admitting the truth to his constituents," Pelosi said in a statement . "Clearly, Speaker Boehner must insist that Congressman Grimm resign immediately."

Grimm also made headlines in January when he threatened to toss a New York TV reporter off a balcony. He later apologized.