New York Daily News

B’klyn pol pleads guilty to tax fraud

- BY DAVE GOLDINER With Shant Shahrigian

New York City Councilman Chaim Deutsch pleaded guilty Thursday to dodging more than $82,000 in federal taxes on income he earned from his real estate management company, prosecutor­s announced.

The Brooklyn lawmaker admitted he failed to account for the income from his firm, Chasa Management, Inc., on his 2015 federal tax statement, prosecutor­s said.

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

Deutsch (photo) faces up to a year in prison and a fine of $100,000 when he is sentenced on July 29 on a single count of filing a false tax return. He has agreed to pay back the $82,000 restitutio­n plus interest.

City Council Speaker Corey Johnson said Deutsch will be immediatel­y stripped of his committee assignment­s. He will be barred from doling out so-called member items, which are discretion­ary grants to community groups and projects.

“No one is above the law, not even a council member,” said Johnson at an unrelated press conference Thursday, adding that he had just been notified about the plea. “If what I’m reading is correct, it’s incredibly troubling news.”

Under Council rules, Deutsch won’t be automatica­lly expelled. But Johnson made it clear that he hopes the Brooklyn lawmaker steps down.

“I don’t know how he would want to continue given that he is pleading guilty to a very serious federal crime,” Johnson said.

Deutsch, 52, has served in the City Council since 2014, and represents the Brooklyn neighborho­ods of Brighton Beach, Gerritsen Beach, Gravesend, Manhattan Beach, Marine Park, Midwood, Plum Beach and Sheepshead Bay.

His lawyer, Henry Mazurek, said in a statement that Deutsch intends to complete his term in office. He is barred from running for reelection due to term limits.

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