New York City Councilman Chaim Deutsch admitted Thursday that he defrauded the government of tens of thousands of dollars in taxes by concealing “his true business income,” federal officials said.
Deutsch was charged and pleaded guilty Thursday morning in Manhattan federal court to tax fraud for failing to report business income connected to his real estate company, Chasa Management, according to the United States Attorney’s Office for the Southern District of New York.
The Manhattan feds say the 52-year-old councilman evaded paying $82,076 in property taxes between 2013 and 2015.
“As an elected official and community leader, Deutsch had a particular responsibility to follow the law,” said US Attorney Audrey Straus. “Instead, over a multi-year period, Deutsch concealed his true business income to avoid paying his fair share of taxes.”
The probe was a joint investigation of the city Department of Investigation, the IRS and Manhattan federal prosecutors.
“It is dispiriting when a sitting City Council member is convicted of a crime,” DOI Commissioner Margaret Garnett said.
Deutsch, who was elected in 2014, did not immediately respond for comment.
The councilman faces up to one year in prison and a year of supervised release, as well as up to $100,000 in fines and restitution.
He is due back for sentencing on July 29.
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