Law enforcement sources say New York Rep. Michael Grimm is expected to face federal criminal charges as early as next week.
The exact charges were not immediately clear, but are believed to be centered around a private business deal that took place before he was elected to Congress.
Grimm's lawyer, William McGinley, confirmed in a statement that prosecutors have said they intend to file criminal charges.
"We are disappointed by the government's decision, but hardly surprised. From the beginning, the government has pursued a politically driven vendetta against Congressman Grimm and not an independent search for the truth," McGinley said. "Congressman Grimm asserts his innocence of any wrongdoing. When the dust settles, he will be vindicated."
No one answered the door at Grimm's home Friday night.
One of Grimm's fundraisers was arrested earlier this year by the FBI and is accused of using straw donors to funnel more than $10,000 into the Republican’s campaign.
Grimm, a former FBI agent and U.S. Marine, is serving his second term representing Staten Island. He has not been accused of any wrongdoing in that case, which is still under investigation.
In January, he erupted at a local TV reporter on camera and threatened that he would "break you in half, like a boy" after the State of the Union address when he was asked about the federal investigation into his campaign finances.
He later apologized.