Man Who Raised Thousands For Grimm Pleads Guilty To Fraud

Ofer Biton, an Israeli man who may have illegally raised $500,000 for Michael Grimm’s congressional campaign in 2010, pleaded guilty to visa fraud in Brooklyn Federal Court on Friday. The New York Daily News is reporting that as part of a plea deal, Biton will receive three years of supervised release and is now likely to face deportation proceedings.

Last year, in August 2012, we reported on Biton’s arrest at the hands of the FBI, who accused Biton of lying on his immigration documents. U.S. law allows foreigners who invest $500,000 in American businesses to be granted special visas, as long as the cash comes from a legitimate source. The FBI charged that $400,000 of Biton’s money came from extortion and embezzlement. A report by Politico elaborates on the nature of Biton’s shady finance dealings:

FBI agents claimed that $400,000 used by Biton for the visa application came from an unnamed “co-conspirator,” and not a personal loan as Biton had claimed.

Biton is a former aide to a prominent Israeli rabbi, Yoshiyahu Yosef Pinto, who has a large following in New York. Grimm — with Biton’s help — raised more than $500,000 from Pinto’s followers, including alleged improper cash donations or contributions from non-U.S. citizens. Biton reportedly sought help from Grimm in obtaining a green card.

It is not yet known if Biton agreed to cooperate in the Department of Justice investigation, which centers around Grimm allegedly accepting illegally raised campaign funds, as part of his plea deal. When Biton was arrested last year, he had refused to cooperate with the FBI.

Biton has been serving under house arrest for 10 months but is now likely to face deportation hearings that could send himself, his wife and two children back to Israel.

Grimm, a former FBI agent, has remained adamant in his innocence, racking up hundreds of thousands of dollars in legal fees over the matter.