Allegedly federal prosecutors are considering whether they should bring additional charges against employees of Rudy Giuliani – a sign that the former mayor of New York himself could be legally endangered.
Lev Parnas, a Ukrainian-American businessman who was a co-founder of a company that paid $ 500,000 to Trump’s personal lawyer, could be hit with new charges by federal prosecutors.
The office of the American attorney for the southern district of New York considers whether Parnas will be charged with misleading potential investors who have supported the fraud guarantee, the Florida-based company that paid for Giuliani, CNN reports.
Fraud Guarantee was established as a company that has provided insurance to companies seeking protection against fraud.
Former New York Mayor Rudy Giuliani (left) could be at legal risk because federal prosecutors are considering additional charges against his partner, Lev Parnas (right)
Prosecutors at the US law firm for the southern district of New York investigate whether Parnas and another employee, David Correia (above), have misled investors about the true value of their business, fraud guarantee
The additional costs indicate that federal prosecutors are further investigating Giuliani’s links to Fraud Guarantee.
A lawyer from Giuliani told CNN that his client had never had discussions about investor pitches or marketing with Parnas of David Correia, Parnas’ business partner.
Researchers are investigating whether Parnas and Correia have cheated investors about the value of the company.
They are also investigating whether they lied about how they wanted to use the investment money, sources told CNN.
The FBI and the prosecutors have spoken with investors associated with the company.
Reportedly, one of the investors has provided evidence that, according to CNN, Parnas and Correia have used proceeds to purchase expensive personal items.
Correia is one of five men, including Parnas and another Giuliani employee, Igor Frumam, who have been accused of using straw monuments to make illegal contributions to politicians who they thought could help their political and business interests, including a pro-Trump super PAC also as commissions in support of other Republicans.
Correia returned to the US and reported himself after the October arrests of Parnas and Fruman, who together with Giuliani allegedly tried to have Ukrainian officials allegedly investigate the son of former vice president Joe Biden.
In October Parnas and another Giuliani employee, Igor Fruman (above) were arrested and accused of using a shell company to donate $ 325,000 to a pro-Trump election committee
Prosecutors have accused Parnas and Fruman of using a shell company to donate $ 325,000 to a pro-Trump election committee and raise money for former home representative Pete Sessions in Texas as part of a ultimately successful attempt to serve President Marie Yovanovitch as ambassador to have Ukraine removed.
Giuliani said he had no knowledge of illegal donations and had seen no evidence that Parnas and Fruman had done anything wrong.
Prosecutors claim the American-born Correia, who has a house with his wife in West Palm Beach, along with Parnas, Fruman and businessman Andrey Kukushkin, in a separate plan to make illegal campaign donations to local and federal politicians in New York, Nevada, and other states in an effort to get support for a new recreational marijuana company.
US law prohibits politicians from accepting foreign donations.
Correia’s work focused on drafting business contracts in Ukraine and presenting memoranda of understanding to other potential partners, sources the three men had treated told CNN.
Federal prosecutors in SDNY have been investigating Giuliani for months.
In particular, they have investigated his efforts to remove Maria Yovanovitch, the former ambassador to Ukraine, from her position.
Giuliani has also been involved in efforts to press Ukraine to investigate Joe and Hunter Biden.
(From left to right) Vice President Mike Pence, Igor Fruman, Lev Parnas, President Donald Trump and Rudy Giuliani. Fruman and Parnas were also allegedly involved in attempts to persuade Ukraine to investigate Joe Biden and his son Hunter
The former mayor of New York City has not been accused of misconduct.
Prosecutors have said that additional costs are expected to be charged against Parnas, although they have not said when these costs will be filed.
The case will be tried in October, just a few weeks before Trump is re-elected.
“We have taken into account statements by prosecutors that they can bring additional charges against Mr. Parnas and others since the beginning of this case,” said Joseph Bondy, a lawyer for Parnas.
“We are therefore not surprised and remain prepared to defend Mr. Parnas against such charges.”
Parnas has sent text messages and other correspondence to congress investigators who carried out his work with Giuliani to persuade Ukraine to open a corruption investigation by former vice-president Joe Biden, a leading democratic contender in the 2020 presidential election.
Parnas is looking for leniency because he is confronted with federal charges for alleged money sent to a Trump election committee.