Skip to content

Judicial Watch • Grimm Indictment

Grimm Indictment

Grimm Indictment

Page 1: Grimm Indictment

Category:

Number of Pages:30

Date Created:April 27, 2014

Date Uploaded to the Library:April 28, 2014

Tags:false, Payroll, Books, Grimm, Sections, Wages, Sales, Employees, email, records, states, district, united, IRS, ICE


File Scanned for Malware

Donate now to keep these documents public!

  • demand_answers

See Generated Text   ˅

Autogenerated text from PDF

JDG:TDKINR F.#2011R00532 
UNITED STATES DISTRICT COURT 

EASTERN DISTRICT NEW YORK 
-----------------X 
LEW, M.J 
UNITED STATES AMERICA INDI CTME 
-against

(T. U.S.C.,  1324a(a)(l)(A), 1324(a)(2) MICHAEL GRIMM, and 1324a(f)(l); 18, U.S.C.,  371, 
981(a)(l)(C), 982(a)(6), 982(a)(7), 1341, Defendant. 1343, 1347, 1512(c)(2), 1623, and 3551 21, U.S.C.,  853(p).;_ 26, 

II. Healthalicious numerous filings with New York State, GRIMM stated that Granny 
Sayz did business "Healthalicious." Healthalicious was restaurant located 1594 
Second Avenue New York, New York, that served fast food and employed cooks, 
cashiers, and delivery persons, among other personnel. From 2007 through 2010, GRIMM oversaw the day-to-day operations ofHealthalicious, which included the reporting and distribution the restaurant's payroll. Specifically, GRIMM set the employees' rates 

pay, reported their pay-rates and hours worked Healthalicious' payroll processing 
companies, and distributed wages employees. When GRIMM was not present the restaurant perform these tasks himself, delegated those responsibilities managers under his supervision and control. 
III. GRIMM's Schemes Under-Report Payroll and During the period which GRIMM oversaw Healthalicious' day-to 
day operations, order increase the profitability the restaurant, engaged schemes fraudulently under-report the wages paid his workers -many whom did not have 

legal status the United States -and fraudulently under-report the true amount money 
the restaurant earned both federal and New York State tax and insurance authorities. Specifically, GRIMM paid significant portion ofHealthalicious' 
employees' wages cash and did not report those cash wages federal and state 

authorities, thereby lowering the restaurant's payroll tax costs. GRIMM also under-reported 

the true amount ofHealthalicious' payroll the New York State Insurance Fund ("NYSIF"), 

allowing him receive lower monthly workers' compensation insurance premiums. addition, GRIMM substantially under-reported the amount gross receipts Healthalicious earned both the federal and state governments, thereby dramatically lowering the federal and state taxes the restaurant owed and paid. total, GRIMM concealed over $1,000,000 Healthalicim1s gross receipts alone, well hundreds thousands dollars employees' wages, fraudulently depriving the federal and New York State governments sales, income and payroll taxes. attempt conceal his schemes, January 20,13, while member Congress, GRIMM lied under oath during civil deposition about his role operating the restaurant, including falsely denying that had paid Healthalicious' workers cash. 

IV. LCK Services Corp. ("LCK") was the payroll processing company GRJMM retained manage Healthalicicius' payroll from 
2007 until 2009, and Strategic Payroll ("MSP") (together with LCK, the "Payroll Processing Companies") was the payroll processing company GRJMM retained manage Healthalicious' payroll 2009 and 2010. Among other things, based the data supplied GRIMM and others GRIMM' direction, the Payroll Processing Companies calculated and withheld federal and state taxes from Healthalicious' employees' wages. restaurant that operated under the laws the United States and New York State, Healthalicious was legally required accurately report its gross receipts and payroll various government entities. Several those obligations are set forth below. FICA Tax The Federal Insurance Contributions Act ("FICA") required employees and employers pay taxes all wages employees received and defined wages include "all remuneration for employment." The federal government used such taxes fund the Social Security and Medicare programs that provide benefits for retirees and the disabled, among other things. employer, Healthalicious was legally required withhold federal income taxes and FICA taxes from Healthalicious' employees' wages, and was legally obligated pay the federal government matching amount well. 
Along with these obligations, Healthalicious was required file Employer's Quarterly Federal Tax Return ("Form 941") with the IRS accurately reporting the wages, tips and other compensation that Healthalicious' employees received, well the total amount income and FICA taxes withheld from its employees' wages. Federal Income Tax 

Under federal law, businesses organized partnerships, including limited liability companies such Healthalicious, were required file U.S. Return Partnership Income, IRS Form 1065 ("Form 1065") with the IRS each year. The Form 1065 required partnership accurately report its gross receipts and the wages paid its employees for the tax year. the extent that partnership generated taxable income, such 
income flowed the partners, who were required declare that income their personal tax returns, proportion their share ownership the company. partnership, Healthalicious was obligated file true and accurate Forms 1065 each year. 

C. New York State Sales Tax 

10. New York State imposed sales tax the sale all tangible goods 
and some services. All food and drink sales, whether sold "to-go" eaten restaurant, were subject sales tax and sales tax reporting. Businesses that sold goods and services that were subject sales tax, including restaurants like Healthalicious, were required register with the New York State Department Taxation and Finance ("NYS Tax Department") sales tax vendors. Such businesses had fiduciary responsibility impose sales tax the purchases its customers and remit such sales taxes the NYS Tax Department either monthly quarterly basis, depending the size the business. Such businesses were required accurately report the total amount gross and taxable sales the NYS Tax Department with their monthly quarterly payments sales tax. Accordingly, Healthalicious filed New York State and Local Quarterly Sales and Use Tax Returns ("Form ST-100") with the NYS Tax Department during the period 2007 through 2010. These quarterly filings purported set forth Healthalicious' true and accurate gross sales for each quarter which they were filed. 

11. New York State, employers were required law obtain workers' compensation insurance coverage for each their employees through insurance carrier. Such insurance provides both medical care and weekly cash benefits employees that had been injured while working and who therefore could not work. Insurance can-iers determined the insurance rate paid employer through assessment number factors, including the numbers paid employees, the type classification the work 
performed those employees, and the salary levels the employees. 

12. NYSIF was not-for-profit insurance carrier that offered workers' compensation insurance plans businesses the state. 
NYSIF was New York State agency that guaranteed the availability workers' compensation protection employees the state. 

13. March 2007, GRIMM applied NYSIF for workers' compensation insurance policy for Healthalicious employees. The NYSIF application, which GRIMM signed, explicitly identified the size ofHealthalicious' payroll primary factor considered NYSIF determining the amount the monthly premium Healthalicious would have pay maintain the workers' compensation policy. The application further stated that Healthalicious "must notify [NYSIF] promptly any change the number your employees the payroll other remuneration paid your employees that can apply the correct premium basis." response this application, NYSIF wrote workers' compensation policy for Healthalicious that remained effect from April 2007 until November 2010. GRIMM's Criminal Schemes 

14. about and between 2007 and 2010, GRIMM paid significant portion Healthalicious' employees' wages cash, with nearly all such employees having received cash wages. Many received approximately half their weekly pay cash and the other half check through direct deposit into bank account, while other employees 

received their entire weekly pay cash. GRIMM maintained electronic spreadsheets detailing the true payroll information pertaining Healthalicious, which included cash wages (the "Second Set Payroll Records"). GRIMM concealed the Second Set Payroll Records from the Payroll Processing Companies, among others. addition, GRIMM physically handed out cash payments his employees numerous occasio.Those cash 
ns. 

payments were taken from the daily cash receipts Healthalicious. 
15. addition, GRIMM knowingly hired and knowingly continued to. employ workers who did not have legal residency status and accordingly did not have valid authorization work inside the United States. 
16. order calculate and report state and federal payroll taxes (which involved filing quarterly Forms 941 and preparing annual IRS Forms W-2, which calculated and recorded the annual wages individual Healthalicious employees), the Payroll 

Processing Companies relied Healthalicious report them weekly basis the names the employees who had worked during the week question, the amount hours those 

employees worked, and the employees' rate pay. part the fraudulent scheme, 
GRIMM and subordinates acting his direction did not report the cash wages paid Healthalicious' employees (the "Off the Books Wages") the Payroll Processing Companies. Indeed, the Payroll Processing Companies had record those employees who received the entirety their pay cash. under-reporting employee hours and 

concealing the existence some employees -and concealing the Second Set Payroll Records -GRIMM caused the Payroll Processing Companies calculate and then repmt 
less than half the wages Healthalicious actually paid its employees. 

17. From 2007 through 2011, GRIMM regularly corresponded about 
Healthalicious business using AOL email account (the "GRIMM AOL Email Account").
GRJMM continued use the GRIMM AOL Email Account through February 2013. 

January 2010, GRJMM hired individual whose identity known the Grand Jury 
(the "Manager") help him oversee Healthalicious, including its payroll, while GRJMM 

campaigned for seat the United States House Representatives. numerous 

occasions from March 2010 through June 2010, GRIMM sent the Manager emails from the GRJMM AOL Email Account containing excerpts from the Second Set Payroll Records, detailing how much cash each Healthalicious employee should receive for particular week. 
18. Healthalicious employed accountant (the "Healthalicious Accountant"), individual whose identity known the Grand Jury, who prepared the restaurant's Form 1065 tax returns and the New York State Form ST-100 sales tax returns, and who participated audits that NYSIF conducted. part the scheme, GRJMM concealed the Off the Books Wages and the Second Set Payroll Records from the 

Healthalicious Accountant. 
19. concealing the Off the Books Wages and the Second Set Payroll 
Records from the Payroll Processing Companies and the Healthalicious Accountant, GRJMM caused the following false filings occur: FICA Tax 
20. result ofGRJMM's concealment the Off the Books Wages and the Second Set Payroll Records, the Payroll Processillg Companies did not accurately 
report the true amount wages GRIMM paid Healthalicious employees Healthalicious' 

Form 941 quarterly tax returns filed with the IRS, and did not withhold the proper amount FICA taxes required under the law. This scheme enabled GRIMM defeat his obligations withhold and pay over the proper amount FICA tax due and owing the federal government. 

21. result GRIMM' concealment the Off the Books Wages and the Second Set Payroll Records from the Healthalicious Accountant, Healthalicious' Form 1065 tax returns filed with the IRS for tax years 2008, 2009, and 2010 were each false because they did not accurately report the correct total wages Healthalicious paid its employees. 

22. further result GRIMM' concealment the Off the Books Wages and the Second Set Payroll Records, Healthalicious, through the Healthalicious Accountant and the Payroll Processing Companies, under-reported its true payroll NYSIF, thus fraudulently lowering the monthly workers' compensation premium paid NYSIF under the NYSIF policy. 

23. GRIMM fraudulently concealed from the Healthalicious Accountant significant amount the cash sales that Healthalicious generated from March 2007 through August 2010. result this concealment, GRIMM -through the Healthalicious Accountant -filed numerous false tax returns with the federal government and the State New York. New York State Form ST-100 Sales Tax Returns 
24. From June 2007 through August2010, GRIMM caused and authorized 

the filings false New York State Form ST-100 quarterly sales tax returns with the New 
York State Tax Department. These false filings fraudulently concealed approximately $1.3 million Healthalicious' gross sales over that period, causing substantial tax loss New York State. 
ii. 
Federal Tax Returns 

25. Healthalicious' Form 1065 tax returns for tax years 2008, 2009, and 
2010 were each false because they did not accurately report the amount ofHealthalicious' gross receipts for each tax year. result GRIMM' fraudulent concealment the restaurant's income, Healthalicious' true earnings were not reported the Forms 1065 and 
consequently did not flow through the partners the business and were not reflected 
the personal income tax returns the partners, including GRIMM. 

VI. 
and Obstruction Justice 
26. January 2013, GRIMM was deposed federal lawsuit brought the United States District Court for the Southern District New York two former Healthalicious employees who alleged that GRIMM did not pay them minimum wage 

overtime pursuant the federal Fair Labor Standards Act and the New York State Labor 
Laws, among other claims. 
27. attempt avoid disclosing the plaintiffs the criminal schemes perpetrated while operating Healthalicious, GRIMM lied while under oath during the 
deposition response questions concerning his actions Healthalicious, including: (a) 

whether paid employees cash; (b) whether interacted with the Payroll Processing 
Companies; whether corresponded through email regarding Healthalicious business; 
and whether still had access such email account. 
COUNT ONE 
(Obstructing and Impeding the Due Administration the Internal Revenue Laws) 
28. 
The allegations contained paragraphs through this Indictment are realleged and incorporated fully set forth this paragraph. 

29. about and between April 2007 and October 2011, both dates being approximate and inclusive, within the Eastern District New York and elsewhere, the defendant MICHAEL GRIMM, together with others, did corruptly endeavor obstruct and impede the due administration the internal revenue laws the United States through paying, and causing others pay, the Off the Books Wages; 
transmitting false information the Healthalicious Accountant that fraudulently under-reported Healthalicious' gross sales, knowing that the Healthalicious 
Accountant would include such information the Forms 1065 that were submitted the IRS behalf Granny Sayz for the tax years 2008 through 201O; 
filing false personal Form 1040 tax return under the penalty perjury for the tax year 2008, which tax return was false insofar failed report income that GRIMM derived from his ownership Granny Sayz; 
filing false personal Form 1040 tax return under the penalty perjury for the tax year 2009, which tax return was false insofar failed report income that GRIMM derived from his ownership Granny Sayz; 
reporting and directing others report false payroll information the Payroll Processing Companies, specifically, payroll figures that did not include the Off the Books Wages paid Healthalicious employees; causing prepared false and fraudulent quarterly Forms 941 that were submitted the IRS behalf Granny Sayz that under-reported employee 
wages; causing prepared false and fraudulent IRS Forms W-2 submitted the IRS behalf Granny Sayz employees for the tax years 2007 through 

2010, which employee wages were under-reported; 
providing and causing provided false wage information the Healthalicious Accountant and concealing from the Healthalicious Accountant the Second Set Payroll Records; and 
providing excerpts from the Second Set Payroll Records the Manager. 

(Title 26, United States Code, Section 7212(a); Title 18, United States Code, Sections and 3551 et;) 

COUNT TWO 
(Conspiracy Defraud the United States) 
30. 
The allegations contained paragraphs through are realleged and incorporated though fully set 01ih this paragraph. 

31. about 2010, within the Eastern District New York and elsewhere, the defendant MICHAEL GRIMM, together with others, did knowingly and willfully conspire defraud the United States impeding, impairing, obstructing and defeating the lawful governmental functions the IRS, the ascertainment, computation, 

assessment, and collection revenue, specifically, payroll taxes. 
MANNER AND MEANS 

32. The manner and means which the conspiracy was sought 
accomplished included, among others, the following:  paying, and causing the payment of, the Off the Books Wages  
Healthalicious employees;  transmitting, and causing the transmission of, false information  

regarding Healthalicious employee wages repmied MSP, resulting the preparation false and fraudulent IRS Forms 941 and W-2 that were submitted the IRS; transmitting, and causing the transmission of, false information regarding Healthalicious employee wages the Healthalicious Accountant, resulting the preparation false and fraudulent IRS Form 1065, that understated wages paid Healthalicious employees; and disseminating the Second Set Payroll Records the Manager, and directing him pay the Off the Books Wages Healthalicious employees. 

33. furtherance the conspiracy and effect its objects, within the Eastern District ofNew York and elsewhere, GRIMM committed and caused 

committed, among others, the following: 
OVERT ACTS about January 2010, GRIMM asked the Manager help him operate Healthalicious, which assistance required the Manager pay Healthalicious' employees off the books; March 23, 2010, GRIMM transmitted email the Manager from the GRIMM AOL Email Account, attached which were excerpts from the Second Set Payroll Records; April 2010, GRIMM transmitted email the Manager from the GRIMM AOL Email Account, attached which were excerpts from the Second Set Payroll Records; April 13, 2010, GRIMM transmitted email the 
 
Manager from the GRIMM AOL Email Account, attached which were excerpts from the Second Set Payroll Records. The email further stated, "[an employee whose identity 

known Grand Jury] put the envelopes and pay checks bag for you"; April 21, 2010, GRIMM transmitted email the Manager from the GRIMM AOL Email Account, attached which were excerpts from the Second Set Payroll Records; April 27, 2010, GRIMM transmitted email the Manager from the GRIMM AOL Email Account, attached which were excerpts from the Second Set Payroll Records; May 11, 2010, GRIMM transmitted email the Manager from the GRIMM AOL Email Account, attached which were excerpts from the Second Set Payroll Records; June 2010, GRIMM transmitted email the Manager 

from the GRIMM AOL Email Account, attached which were excerpts from the Second Set Payroll Records; June 15, 2010, GRIMM transmitted email the Manager from the GRIMM AOL Email Account, attached which were excerpts from the Second Set Payroll Records; 
During 2010 and 2011, GRIMM caused the preparation and 

filing false and fraudulent F01ms W-2 for tax year 2010 behalf ofHealthalicious; During 2010, GRIMM caused MSP, whose offices were located within the Eastern District New York, prepare and file false and fraudulent Forms 941 behalf Healthalicious; and July 10, 2010, GRIMM transmitted email the Manager from the GRIMM AOL Email Account requesting that the Manager obtain from MSP payroll information provided the Healthalicious Accountant connection with preparation F01m 1065 tax return; 

(Title 18, United States Code, Sections 371 and 3551 

COUNTS THREE THROUGH FIVE 
(Aiding and Assisting the Preparation False and Fraudulent Tax Returns) 

34. 
The allegations contained paragraphs through this Indictment are realleged and incorporated fully set forth this paragraph. 

35. about the dates set forth below, within the Eastern District New York and elsewhere, the defendant MICHAEL GRIMM, together with others, did willfully aid and assist and procure, counsel and advise the preparation and presentation the IRS, under the internal revenue laws, United States Returns Partnership Income Forms 1065 for Granny Sayz, which tax returns were false and fraudulent one more material matters, that each such tax return reported: (1) gross receipts for Granny Sayz that were substantially less than the actual gross receipts that the company received for the tax years set forth below; and (2) salaries and wages (other than those paid partners) paid 

Granny Sayz that were substantially less than the actual salaries and wages_ paid 
employees the company for the tax years set forth below: 

COUNT  TAX YEAR  APPROXIMATE DATE FILED  GROSS RECEIPTS REPORTED  SALARIES AND WAGES REPORTED  2008  08/07/09  $507,136  $63,693  2009  09/15/10  $536,869  $56,843  2010  10/31/11  $277,191  $36,363  

(Title 26, United States Code, Section 7206(2); Title 18, United States Code, Sections and 35_51 et.) 

COUNT SIX (Health Care Fraud) 
36. The allegations contained paragraphs through are realleged and 
incorporated though fully set forth this paragraph. 
37. about and between March 2007 and November 2010, both dates 

being approximate and inclusive, within the Eastern District New York and elsewhere, the 
defendant MICHAEL GRIMM, together with others, did knowingly and willfully execute 
and attempt execute scheme and artifice defraud health care benefit program, 
defined Title 18, United States Code, Section 24(b wit: NYSIF, and obtain, 
means materially false and fraudulent pretenses, representations and promises, money and 

property owned by, and under the custody and control of, said health care benefit program, 
connection with the delivery and payment for health care benefits, items and services. 
(Title 18, United States Code, Sections 1347, and 3551 etfil'...9..) 

COUNTS SEVEN THROUGH ELEVEN (Wire Fraud) 
38. The allegations contained paragraphs through27 are realleged and 
incorporated though fully set forth this paragraph. 

39. about and between June 2007 and September 2010, both dates being approximate and inclusive, within the Eastern District New York and elsewhere, the defendant MICHAEL GRIMM, together with others, did knowingly and intentionally devise scheme and aitifice defraud New York State and obtain money and property, wit: 

sales tax revenue, means materially false and fraudulent pretenses, representations and 

promises. 

40. about the dates set forth below, for the purpose executing such 

scheme and artifice, GRIMM, together with others, did transmit and cause transmitted, means wire communication interstate commerce, one more writings, signs, 
signals, pictures and sounds, set forth below: 

COUNT  DATE  DESCRIPTION  06/08/09  Email from GRIMM, transmitted through computer server located the State Virginia the Healthalicious Accountant, whose home office was located the Eastern District New York, reporting Healthalicious quarterly sales  12/21/09  Email from GRIMM, transmitted through computer server located the State Virginia the Healthalicious Accountant, whose home office was located the Eastern  

District New York, reporting Healthalicious quarterly 
cash sales 
Email from GRIMM, transmitted through computer 
server located the State Virginia the Healthalicious Accountant, whose home office was located the Eastern 
03/22/10 
District New York, reporting Healthalicious quarterly 
cash sales 
Email from GRIMM, transmitted through computer 
server located the State Virginia the Healthalicious 
Accountant, whose home office was located the Eastern 06/17/10 
District New York, reporting Healthalicious quarterly 
cash sales 

Email from GRIMM, transmitted through computer 
server located the State Virginia the Healthalicious 
Accountant, whose home office was located the Eastern 9117/10 
District New York, rep01iing Healthalicious quarterly 
cash sales 
(Title 18, United States Code, Sections 1343, and 3551 filill.) 

41. The allegations contained paragraphs through are realleged and 
incorporated though fully set forth this paragraph. 
42. about and between June 2007 and September 2010, both dates 
being approximate and inclusive, within the Eastern District New York and elsewhere, the 
defendant MICHAEL GRIMM, together with others, did knowingly and intentionally devise scheme and artifice defraud New York State, and obtain money and property, wit: 
sales tax revenue, means materially false and fraudulent pretenses, representations, and 
promises. 
43. about the dates set forth below, for the purpose executing such 
scheme and artifice and attempting so, GRIMM did place and cause placed 
post office and authorized depository for mail matter, one more matters and things 
sent and delivered the United States Postal Service according the directions thereon, 
set forth below: 

COUNT  APPROXIMATE MAILING DATE  DESCRIPTION  06122109  New York State Form ST-100 Quarterly Sales Tax Return mailed from Brooklyn, New York "NYS Sales Tax Processing," Albany, New York  12/21/09  New York State Form ST-100 Quarterly Sales Tax Return mailed from Brooklyn, New York "NYS Sales Tax Processing," Albany, New York  03/23/10  New York State Form ST-100 Quarterly Sales Tax Return mailed from Brooklyn, New York "NYS Sales Tax Processing," Albany, New York  

(Title 18, United States Code, Sections 1341, and 3551 
COUNTS FIFTEEN AND SIXTEEN 
(Mail Fraud --Southern District New York) 

44. The allegations contained paragraphs through are realleged and 
incorporated though fully set forth this paragraph. 
45. about and between June 2007 and September 2010, both dates 
being approximate and inclusive, within the Southern District New York, the defendant MICHAEL GRIMM, together with others, did knowingly and intentionally devise scheme 
and artifice defraud New York State, and obtain money and property, wit: sales tax 
revenue, means materially false and fraudulent pretenses, representations, and 
promises. 
46. about the dates set forth below, for the purpose executing 
such scheme and artifice, GRIMM, did place and cause placed post office and 
authorized depository for mail matter, one more matters and things sent and 

delivered the United State Postal Service according the directions thereon, set forth 
below: 

COUNT  APPROXIMATE DATE  DESCRIPTION  09/23/09  New York State Form ST-100 Quarterly Sales Tax Return mailed from New York, New York "NYS Sales Tax Processing," Albany, New York  09/22/10  New York State Form ST-100 Quarterly Sales Tax Return mailed from New York, New York "NYS Sales Tax Processing," Albany, New York  

(Title 18, United States Code, Sections 1341, and 3551 et-) 
COUNT (Perjury) 
47. The allegations contained paragraphs 1through are realleged and 
incorporated though fully set forth this paragraph. 
48. about January 30, 2013, within the Southern District New 
York, the defendant :rvtICHAEL GRIMM, while under oath proceeding ancillary 
court the United States, wit: deposition conducted 

(CM), case pending the United States District Court for the Southern District New 

York, knowingly made one more false material declarations, wit: GRIMM gave false testimony, including the following underlined testimony: 
(a) Healthalicious did you have responsibilities for 
payroll? Who Healthalicious did have responsibilities for payroll? How would the back office receive information about how much employees should paid? 	Are you talking about the amount the number hours? Let ask you different question. Were employees paid based the hours they worked Healthalicious? 	Yes. And was the back office provided the information about how many hours employees worked? 	Yes. 	And how was that done? would send the schedule the back office. And did you transmit the back office any information about the pay rates the employees? did not. did the back office have that information without you needing transmit it? 	That's 'correct. 
Earlier the deposition, GRIMM referenced the "back office" when stated, "[John Doe #1, individual whose identity known the Grand Jury] owned many other restaurants. result, had corporate office set handle what would consider back office operations would [sic] someone that worked for him .... 

(b) Can you describe how Healthalicious worked with LTK?2  So, did you have personal responsibility with working  
withLTK?  No. 	
Who would know how that information was provided LTK? 
Doe 

Did you pay employees partially cash? (c) 

however, there were cash envelopes for several employees because soon opened, some employees complained that they didn't have bank account and that was costly and timely check cashing place courtesy, often cashed their check for them. they would get check, but they would get the equivalent cash, they would sign their check and would just deposit the check into our bank basically, again courtesy, cashing the check for them. 
Previously during the deposition, this exchange took place: 	What was the payroll company that you utilized? the best recollection, was called TK. 

(d) Did Healthalicious maintain records the payments made cash? weren't cash were their 

(Title 18, United States Code, Sections 1623, and 3551 

COUNT EIGHTEEN (Perjury) 
49. 
The allegations contained paragraphs through are realleged and incorporated though fully set forth this paragraph. 

50. about January 30, 2013, within the Southern District New 
York, the defendant MICHAEL GRIMM, while under oath proceeding ancillary court the United States, wit: deposition conducted Perez and Carlos Perez 

(CM), case pending the United States District Court for the Southern District New 

York, knowingly made one more false material declarations, wit: GRIMM gave false testimony, including the following underlined testimony: 
(a) Did you ever communicate business matters with anyone 
else besides [John Doe #1] through e-mail?" 
Not almost was done the 

(Title 18, United States Code, Sections 1623, and 3551 et.) 

COUNT NINETEEN 
(Obstruction Official Proceeding) 

51. The allegations contained paragraphs through are realleged and 
incorporated though fully set forth this paragraph. 
52. about January 30, 2013, within the Southern District New 
York, the defendant MICHAEL GRIMM did laiowingly, intentionally and c01Tuptly obstruct 

and impede and attempt obstruct and impede official proceeding, wit: Perez 
and Carlos Perez Bennett and Michael 
Docket No. CIV 8736 (CM), proceeding before the United States District Court for the 
Southern District New York. 
(Title 18, United States Code, Sections 1512(c)(2), and 3551 

COUNT TWENTY 
(Unlawful Employment Aliens) 

53. The allegations contained paragraphs 1through are realleged and incorporated though fully set forth this paragraph. 
54. about and between April 2007 and September 2010, both dates 
being approximate and inclusive, within the Eastern District New York and elsewhere, the 
defendant MICHAEL GRJMM, together with others, did knowingly and intentionally hire for employment and continue employ one more aliens, whose identities are known the Grand Jury, knowing that such aliens were unauthorized aliens, defined Title United States Code, Section 1324a(h)(3), wit: aliens who were not lawfully admitted for permanent residence and not authorized employed the United States, with respect 
such employment, and did engage pattern and practice such hiring and continued 
employment. (Title United States Code, Sections 1324a(a)( l)(A), 1324(a)(2) and 
1324a(f)(l); Title 18, United States Code, Sections and 3551 

CRJMINAL FORFEITURE ALLEGATION COUNT SIX 

55. The United States hereby gives notice the defendant that, upon his 

conviction the offense charged Count Six, the government will seek forfeiture 
accordance with Title 18, United States Code, Section 982(a)(7), which requires any person 
convicted such offense forfeit any property, real and personal, which constitutes derived, directly indirectly, from proceeds traceable such offense. 
56. any the above-described forfeitable property, result any act omission the defendant: 
cannot located upon the exercise due diligence; 
has been transferred sold to, deposited with, third party; 
has been placed beyond the jurisdiction the court; 
has been substantially diminished value; has been commingled with other property which cannot divided without difficulty; the intent the United States, pursuant Title 21, United States Code, Section 853(p), seek forfeiture any other property the defendant the value the forfeitable property described this forfeiture allegation. 

(Title 18, United States Code, Section 982(a)(7); Title 21, United States Code, Section 853(p)) 

CRIMINAL FORFEITURE ALLEGATION COUNTS SEVEN THROUGH SIXTEEN AND NINETEEN 
57. The United States hereby gives notice the defendant that, upon his 
conviction any the offenses charged Counts Seven through Sixteen and Nineteen, the 
government will seek forfeiture accordance with Title 18, United States Code, Section 
98l(a)(l)(C) and Title 28, United States Code, Section 2461(c), which require any person 

convicted such offenses forfeit any property constituting derived from proceeds obtained directly indirectly result such offenses. 

58. any the above-described forfeitable property, result any act omission the defendant: 
 
cannot located upon the exercise due diligence; 
has been transfen-ed sold to, deposited with, third party; 
has been placed beyond the jurisdiction the comi; 
has been substantially diminished value; has been commingled with other property which cannot divided without difficulty; the intent the United States, pursuant Title 21, United States Code, Section 853(p), incorporated Title 28, United States Code, Section 2461 seek forfeiture any other property the defendant the value the forfeitable property described this 
forfeiture allegation. (Title 28, United States Code, Section 2461 Title 18, United States Code, Section 981(a)(l)(C); Title 21, United.States Code, Section 853(p)) CRJMINAL FORFEITURE ALLEGATION COUNT TWENTY 

59. The United States hereby gives notice the defendant that, upon his 
conviction the offense charged Count Twenty, the govermnent will seek forfeiture 
accordance with Title 18, United States Code, Section 982(a)(6), which requires any person 
convicted such offense forfeit any conveyance, including any vessel, vehicle aircraft 
used the commission such offense, and any property, real personal, that constitutes derived from proceeds obtained directly indirectly from the commission such offense, that used facilitate intended used facilitate the commission such offense. 
60. any the above-described forfeitable property, result any act omission the defendant: 
cannot located upon the exercise due diligence; 
has been transferred sold to, deposited with, third party; 

has been placed beyond the jurisdiction the Court; has been substantially diminished value; 
has been commingled with other property, which cannot 
divided without difficulty; the intent the United States, pursuant Title 21, United States Code, Section 853(p seek forfeiture any other property the defendant, the value the forfeitable 
property described this forfeiture allegation. 
(Title 18, United States Code, Section 982(a)(6); Title 21, United States Code, #2011R00532 
FORMDBD-34 No. 

UNITED STATES DISTRICT COURT 
EASTERN DISTRlCTOF NEW YORK 
CRIMINAL DIVISION 
THE UNITED STATES AMERICA 
vs. 
MICHAEL GRIMM, 
Defendant. 
(T. U.S.C.,  1324a(a)(l)(A), 1324(a)(2) and 1324a(f)(l); 18, U.S.C.,  371, 981(a)(l)(C), 
982(a)(6), 982(a)(7), 1341, 1343, 1347, 1512(c)(2), 1623, and 3551 et.; 21, U.S.C.,  853(p); 26, U.S.C.;  7206(2) and 7212(a); 28, U.S.C.  2461(c)) true bill. 
 
Foreperson 

Filed open court this day, A.D. 2014 

Anthony Capozzolo, Todd Kaminsky, Nathan Reilly, 
Assistant U.S. Attorneys (718) 254-.64541636716196