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Kerik headed for indictment?

From NBC's Bob Windrem
In what could hardly be good news for Rudy Guiliani's presidential hopes, his former police commissioner Bernard Kerik appears headed for an indictment, Jonathan Dienst of WNBC reports. Kerik has turned down a guilty plea that would have included federal jail time, Dienst says. The next step is up to federal prosecutors; Kerik has already pleaded guilty to state charges.

Here's part of Dienst's report: "News Channel 4 has learned former NYPD commissioner Bernard Kerik has rejected a plea deal offered by federal prosecutors that would have required Kerik to serve time in prison. Federal prosecutors offered Kerik a deal where he would plead guilty to tax fraud and illegal eavesdropping conspiracy charges, sources familiar with the negotiations say.

"In exchange for his guilty plea, investigators were willing to end the federal criminal probe into Kerik's alleged wrongdoing, which includes allegations of mortgage fraud, tax fraud, conspiracy to eavesdrop, and making false statements on his application to become U.S. Homeland Security Secretary. 'We rejected the plea deal because Mr. Kerik paid his taxes and did nothing wrong,' said Kerik's attorney, Ken Breen. A spokesman for U.S. attorney Michael Garcia declined to comment on the investigation as did officials with the FBI, IRS, City Department of Investigation. and Westchester County District Attorney."