NYC Councilman Admits Filing False Return That Hid Income

A New York City councilman representing parts of Brooklyn admitted he filed a false tax return that failed to disclose income from his real estate business.

Chaim Deutsch, 52, a Democrat who has served the city’s 48th District since 2014, was charged with the misdemeanor offense by federal prosecutors in Manhattan on Thursday and pleaded guilty before a U.S. judge the same day. He faces as much as one year in prison and a fine of $100,000 when he is sentenced in July.

Prosecutors said Deutsch filed a tax return for the year 2015 that included false information about his income and expenses in connection with the operations of Chasa Management Inc., a real estate firm he owned, and failed to pay more than $82,000 in taxes.

Deutsch, the son of immigrants who survived the Holocaust, represents a section of south Brooklyn that includes Midwood, Brighton Beach and Sheepshead Bay. He lost a race to represent New York’s Ninth Congressional District to incumbent Yvette D. Clarke last year.

Deutsch “accepts responsibility for his actions and intends to fully repay the $82,000 in taxes he still owes,” his attorney, Henry E. Mazurek, said in a statement. “He looks forward to completing his term on the City Council, working tirelessly for the people in his district. His dedication to public service will not be diminished and he looks forward to getting back to work and putting these issues behind him.”

New York City Council Speaker Corey Johnson called on Deutsch to resign.

“Nothing is more important than the public trust,” Johnson said. “Our constituents rightly expect the people they vote for to uphold the law. Deutsch failed them. To protect the integrity of the City Council and his Brooklyn seat, he must resign. He can no longer serve his constituents in good faith.”

The case is US v Deutsch, 21-cr-264, U.S. District Court, Southern District of New York.

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