NYC Council Member Cops Guilty Plea To Tax Fraud

New York City NY

22 April, 2021

1:51 PM

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NEW YORK CITY — A prominent City Council member and former congressional candidate dodged paying $82,000 in taxes by falsifying a return, authorities said. Chaim Deutsch, 52, pleaded guilty Thursday to a tax fraud charge in federal court, U.S. Attorney Audrey Strauss announced. "New York City Council Member Chaim Deutsch admitted today that he defrauded the IRS in connection with his real estate business," Strauss said in a statement. "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." Deutsch represents a swath of south Brooklyn including Brighton Beach and Sheepshead Bay. He also owned a real estate management business called Chasa Management, Inc., that he drew an income from, authorities said. But Deutsch filed false and fraudulent information about his income and expenses for Chasa on his 2015 personal tax return, according to a release. "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," a release states. Deutsch, who recently and unsuccessfully ran against Rep. Yvette Clarke, agreed to pay restitution as part of his plea, authorities said. He faces up to one year in prison when he's sentenced July 29.