US Representative George Santos is accused of 'relying on repeated dishonesty and deception'. Reuters
US Representative George Santos is accused of 'relying on repeated dishonesty and deception'. Reuters
US Representative George Santos is accused of 'relying on repeated dishonesty and deception'. Reuters
US Representative George Santos is accused of 'relying on repeated dishonesty and deception'. Reuters

George Santos: US Congressman pleads not guilty to federal criminal charges


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George Santos, the Republican US congressman whose first term has been marred by scandals over a series of lies, pled not guilty to more than a dozen federal criminal charges in New York on Wednesday.

Mr Santos was arraigned on 13 charges including wire fraud, money laundering, theft of public funds and making false statements to the House of Representatives.

He was released on a $500,000 bond after spending about five hours in custody. He had surrendered to authorities in Long Island earlier in the day.

“Taken together, the allegations in the indictment charge Santos with relying on repeated dishonesty and deception to ascend to the halls of Congress and enrich himself,” said Breon Peace, US Attorney for the Eastern District of New York.

The attorney's office has also accused Mr Santos of applying for and receiving unemployment benefits in 2020, when he was employed and campaigning for Congress.

Prosecutors also claim he used campaign contributions to pay off debt and purchase designer clothing during his second congressional campaign.

He is also accused of providing misleading financial disclosures to the House.

Mr Santos was elected to Congress last year, but it was later revealed that much of his campaign was based on falsehoods.

The congressman claimed to have worked at Goldman Sachs and Citigroup, though there is no evidence he worked at either company.

Claims that he holds degrees from New York University and Baruch College were also refuted.

The New York politician also lied about having Jewish heritage, as well as his mother dying in the World Trade Centre terror attacks.

“He used political contributions to line his pockets, unlawfully applied for unemployment benefits that should have gone to New Yorkers who had lost their jobs due to the pandemic, and lied to the House of Representatives,” Mr Peace said.

He later admitted to “embellishing on his resume”.

Many of Mr Santos's colleagues in Congress have called on him to resign, including Republicans, although House Speaker Kevin McCarthy has been reticent to weigh in on the matter.

Republicans control the chamber with a narrow 222-213 margin.

“I think in America, you’re innocent till proven guilty,” Mr McCarthy told reporters on Tuesday.

Steve Scalise, the No 2 Republican in the House, described the charges as “serious” but added, “there's a presumption of innocence” in the US.

Mr Santos has given no indication that he plans to step down due to the indictment.

He also faces a separate investigation from the House Ethics Committee, which unanimously voted in March to probe a series of allegations about him.

Agencies contributed to this report

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Updated: May 11, 2023, 5:44 AM