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US stock market daily report (April 28, 2014, Monday)

April 29, 2014, Tuesday, 04:56 GMT | 23:56 EST | 09:26 IST | 11:56 SGT
Contributed by Millennium Traders

Michael Grimm, Staten Island, New York Republican Congressman faced an indictment Monday for fraud charges in connection with a Manhattan fast-food restaurant he partly owned. Court documents unsealed on Monday indicate Grimm faces up to 20 years in prison, if convicted. Grimm has been under a federal probe of his fundraising activity, for over two years. Per the 20-count federal indictment, between 2007 and 2010, Grimm oversaw the restaurant's day-to-day operations. He is also charged with lying under oath in January 2013, about his role in the health food restaurant, Healthalicious. Prosecutors said Grimm and Healthalicious under-reported wages paid to workers, many of whom did not have legal status in the United States. Many of the wages paid to workers were done so, in cash. Additionally, per documents, Grimm and the restaurant concealed over $1 million in gross receipts from federal and New York state authorities.

Loretta Lynch, United States Attorney Attorney from Brooklyn, NY said, “In 2007, Michael Grimm, former Marine, former FBI agent, accountant and attorney, was poised for success as a small business owner. Instead, as alleged, Grimm made the choice to go from upholding the law to breaking it.”

Grimm who is is free on a $400,000 bond, vowed to return to work and "fight tooth and nail until I'm exonerated." He is a former U.S. Marine, subsequently worked as an FBI agent and was elected in 2010 with a wave of conservative "Tea Party" Republicans advocating low taxes and government spending but built a moderate voting record.

On the night of President Barack Obama's State of the Union address in January 2014, Grimm made headlines after threatening to throw a television reporter off a balcony after an interview in the U.S. Capitol - while the camera was rolling.

George Venizelos, who runs the FBI's New York office said, "As a former FBI agent, Representative Grimm should understand the motto: fidelity, bravery, and integrity. Yet he broke our credo at nearly every turn. Representative Grimm lived by a new motto: fraud, perjury, and obstruction."

The Grimm indictment makes the third scandal to hit House Republicans in recent months.

In January 2014, Diana Durand one of Grimm's fundraisers, was arrested on charges that she illegally funneled over $10,000 to his campaign. A grand jury indicted Durand on Friday, on charges that she made campaign contributions that exceeded federal caps in 2010.

Congressman Van McAllister, married and from Louisiana, in April was caught on camera passionately kissing a married staffer in his office, prompting calls for him to resign of which he has rejected.

Trey Radel, former Republican Congressman from Florida, plead guilty to buying cocaine in January and resigned.

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