Chaim Deutsch – Tax Fraud and Removal From City Council

New York City Councilman Chaim Deutsch councilman will have to pay restitution for unpaid taxes.
PHOTO: WILLIAM ALATRISTE/NEW YORK CITY COUNCIL

Posted to Lost Messiah 4.,28.21

For those of us who have been looking closely at Councilman Deutsch and his activities as a representative of the City council (both good and bad) in our opinion, it behooves the government to scrutinize Councilman Deutsch’s activities. One may want to look at the favoritism given, nay offered up, to certain people and communities. The same investigation that led to the guilty plea of Counselman Deutsch should not end here. It may be wise to start looking at each and every person with whom Councilman Deutsch did business, interacted, engaged with at clandestine meetings, and the resulting action on the part of the councilman. – LOSTMESSIAH

New York City Councilman Pleads Guilty to Tax Fraud

A New York City councilman pleaded guilty in Manhattan federal court to a misdemeanor tax-fraud charge for filing fraudulent information on income and expenses tied to his real-estate-management business, prosecutors said Thursday.

Chaim Deutsch, a Democrat who represents parts of Brooklyn, failed to pay $82,000 in taxes owed to the federal government between 2013 and 2015, according to a criminal complaint. Prosecutors in the U.S. attorney’s office for the Southern District of New York said he also falsely claimed personal expenses as business expenses.

Mr. Deutsch, 52 years old, was first elected in 2014 and for part of his time in office he was the sole owner of Chasa Management Inc., a real-estate-management business, prosecutors said.

The councilman faces up to a year in prison and will have to pay restitution for unpaid taxes, according to the U.S. attorney’s office.

The Wall Street Journal, to continue reading click here.

ADDITIONAL READING:

Council Member Chaim Deutsch pressed to resign after …

City Council Member Chaim Deutsch pleaded guilty to federal tax fraud charges Thursday, authorities said, and Council Speaker Corey Johnson is calling for his resignation.

The Brooklyn politician, who had not been publicly charged before Thursday, admitted in Manhattan federal court to filing a false tax return concealing outside income he received from his real estate management corporation.

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.

Politico, click here to continue reading.

U.S. Attorneys » Southern District of New York » News » Press ReleasesSHAREDepartment of JusticeU.S. Attorney’s OfficeSouthern District of New York

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FOR IMMEDIATE RELEASEThursday, April 22, 2021

New York City Council Member Pleads Guilty To Tax Fraud

Audrey Strauss, United States Attorney for the Southern District of New York, Jonathan D. Larsen, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and Margaret Garnett, Commissioner of the New York City Department of Investigation (“DOI”), announced that CHAIM DEUTSCH, a New York City Council Member, was charged and pled guilty today in Manhattan federal court to filing a false tax return in connection with outside income he received from his real estate management corporation.  DEUTSCH pled guilty before United States Magistrate Judge James L. Cott.

U.S. Attorney Audrey Strauss said:  “New York City Council Member Chaim Deutsch admitted today that he defrauded the IRS in connection with his real estate business.  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.  My Office will continue to work tirelessly with our law enforcement partners to hold our elected officials accountable when they break the law for their own financial benefit.”   

IRS-CI Special Agent-in-Charge Jonathan D. Larsen said:  “The defendant’s admissions today are the result of the hard work of a talented and dedicated cadre of IRS CI special agents and federal prosecutors.  This investigation should also make it clear that no one is above paying their fair share of taxes, even those who occupy elected office.”

DOI Commissioner Margaret Garnett said:  “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.  DOI was pleased to work side-by-side with our partners at the IRS and the U.S. Attorney’s Office for the Southern District of New York on this investigation.”

According to the allegations contained in the Information, other court filings, statements made during court proceedings, and publicly available information:

Since in or about 2014, DEUTSCH has served as the New York City Council Member for the 48th District, which includes portions of Brooklyn.  During at least a portion of that time, DEUTSCH was the sole owner of Chasa Management, Inc., a real estate management business.  In or about March 2016, DEUTSCH filed a personal tax return for calendar year 2015 that included false and fraudulent information concerning his income and business expenses in connection with operating Chasa Management.  In total, during the tax years 2013 through 2015, DEUTSCH’s failure to properly pay taxes on his income from Chasa Management evaded approximately $82,076 in taxes due to the IRS.  Effective on or about January 1, 2017, New York City Council Members were prohibited from earning most outside income.

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DEUTSCH, 52, of Brooklyn, New York, pled guilty to a single count of filing a false tax return for the tax year 2015, and agreed to restitution in the amount of at least $82,076 plus interest.  DEUTSCH is scheduled to be sentenced before Judge Cott on July 29, 2021, at 10:00 a.m.

The charge against DEUTSCH carries a maximum sentence of one year in prison, a maximum term of one year of supervised release, a maximum fine of $100,000, and an order of restitution.  The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the Court.           

Ms. Strauss praised the outstanding work of IRS-CI and the Special Agents of the U.S. Attorney’s Office.  Ms. Strauss also thanked the New York City Department of Investigation for its assistance in the investigation.

The case is being prosecuted by the Office’s Public Corruption Unit.  Assistant U.S. Attorney Eli J. Mark is in charge of the prosecution.

Statement From New York City Council Speaker Corey Johnson On Chaim Deutsch

City Hall – “Based on our review of the charging document and Mr. Chaim Deutsch’s plea agreement, the Council has concluded that the office of the 48th Council District has been vacated under the operation of law. Mr. Deutsch confessed to a crime and violated his oath of office. He is no longer a member of the City Council.”

Patch, click here.