Thursday, February 05, 2015

Crook vs. Crook: Why Former Congressman Michael Grimm is a Dumb Crook

In my first segment of a series of Op-ed articles about white-collar crime on CNBC, I examine the case of former Republican Congressman Michael Grimm who recently pleaded guilty to income tax evasion and awaits sentencing on June 8, 2015.

New York City’s high sales tax rate provides a powerful incentive for businesses to underreport cash sales.

According to the indictment, Michael Grimm skimmed cash sales, reaping an off-the-top 8.875% reward from stealing the sales taxes. Next, Grimm paid some of his employees in cash (off-the-books) thereby evading paying payroll taxes, unemployment insurance, and disability insurance. The net profits Grimm reaped from skimming cash was income tax evasion.

However, as a former FBI special agent, you would expect him to learn from the mistakes of the criminals he busted, but he didn't.

Read my Op-ed here and watch the video here:

Written by, Sam E. Antar

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