File Photo: United States Capitol in Washington (Associated Press)
A US congressman pleaded guilty to felony tax evasion on Tuesday, the latest stain for a lawmaker dogged by controversy but who won re-election last month despite indictment on criminal charges.
Michael Grimm, a former FBI agent who represents parts of New York's Staten Island and Brooklyn, pleaded guilty to filing a false income tax return that underreported wages and sales in 2009.
The House Republican, whose federal court trial was due to begin February 2, faces up to 36 months in a federal prison. A judge set sentencing for June 8.
The charge is linked to his conduct while owner of a Manhattan health food restaurant before he became a member of the House of Representatives in early 2011.
In a 20-count indictment in April, prosecutors accused Grimm, 44, of paying employees with envelopes of cash and of lying under oath about his responsibility for handling payroll.
He pleaded not guilty at the time, insisting he was the target of a political witch hunt and would fight tooth and nail until he was exonerated.
The guilty plea throws Grimm's political future into doubt.
House Speaker John Boehner has remained mum this week as news emerged of Grimm's plea, but Democrats were calling for Grimm's resignation.
"Now that the election is over, Congressman Grimm is finally admitting the truth to his constituents," top House Democrat Nancy Pelosi said in a brief statement on Tuesday.
"Clearly, Speaker Boehner must insist that Congressman Grimm resign immediately."
But at a press conference outside the court following his plea, Grimm stressed the offense occurred before he ran for Congress and he would not step down.
"As long as I am able to serve, I'm going to serve, and that's exactly what I plan on doing," Roll Call quoted Grimm as telling reporters.
"Everyone pays people off the books and it's very common," Grimm explained about his misdeeds. "But let me be very clear: It's wrong. I should not have done it and I'm truly sorry for it."
The investigation stemmed from a probe of possible Grimm campaign finance violations.
Grimm made headlines in January after being caught on camera threatening to throw a reporter off a Washington balcony after the journalist asked Grimm about the investigation.