On November 8, 2007, in White Plains, New York, Kerik was indicted by a federal grand jury on charges of conspiracy, tax fraud and making false statements. Prosecutors say Kerik received about $255,000 in renovations to his Riverdale, Bronx, apartment from a company seeking to do business with the city of New York and concealed the income from the Internal Revenue Service. The indictment also charges Kerik made several false statements to the White House (in his background information statement regarding his Department of Homeland Security appointment) and other federal officials. If convicted on all 16 counts in the indictment, Kerik could face a maximum sentence of 142 years in prison and $4.7 million in fines. He was released upon payment of a $500,000 bond.
On October 20, 2009, Kerik's bail was revoked and he was remanded to jail, after he allegedly disclosed information which was under seal.