NYC Council Member Chaim Deutsch pleads guilty to federal tax fraud

By World Israel News Staff

New York City Council Member Chaim Deutsch pleaded guilty to federal tax fraud charges Thursday, Politico reported.

The 52-year-old Orthodox Jewish politician admitted in Manhattan federal court that he had filed a false tax return, hiding outside income received from his real estate management corporation, the report said. He pleaded guilty to a single count of filing a false tax return for the tax year 2015.

The charges resulted from a joint investigation by the U.S. Attorney’s Office for the Southern District of New York, the city Department of Investigation and the IRS, the report said.

According to Politico, Deutsch neglected to pay at least $82,000 in taxes on money earned from his real estate management company, Chasa Management, Inc., from 2013 through 2015, prosecutors said.

“New York City Council Member Chaim Deutsch admitted today that he defrauded the IRS in connection with his real estate business,” said U.S. Attorney Audrey Strauss.

“As an elected official and community leader, Deutsch had a particular responsibility to follow the law. Instead, over a multi-year period, Deutsch concealed his true business income to avoid paying his fair share of taxes,” she said.

A ban on outside income for City Council members took effect at the end of 2017, Politico noted. Their salaries were increased by 32 percent at the time.

“This tax fraud misdemeanor is incredibly troubling news. As a result, we are looking at removing Council Member Deutsch from all his committees, including his position as Chair of the Veterans Affairs Committee, as well as his role dispersing discretionary funding,” said Council spokesperson Jennifer Fermino.

“It is dispiriting when a sitting City Councilmember is convicted of a crime. Rather than set an example of integrity and fidelity to the rule of law, this City Councilman’s actions placed personal advantage over the public interest, and undermined public trust in elected officials,” said DOI Commissioner Margaret Garnett.

Deutsch faces up to a year in prison.