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Giuliani associate convicted of campaign finance crimes

A New York jury has convicted a former associate of Rudy Giuliani of charges that he made illegal campaign contributions to influence U.S. politicians and advance his business interests

Via AP news wire
Friday 22 October 2021 15:18 EDT
Giuliani Associates Indictment
Giuliani Associates Indictment (Copyright 2021 The Associated Press. All rights reserved.)

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A New York jury convicted a former associate of Rudy Giuliani on Friday of charges that he made illegal campaign contributions to influence U.S. politicians and advance his business interests.

The verdict was returned in Manhattan federal court, where Lev Parnas was on trial for more than two weeks as prosecutors accused him of using other people’s money to pose as a powerful political broker and cozy up to some of the nation’s star Republican political figures.

One part of the case alleged that Parnas and an associate made illegal donations through a corporate entity to Republican political committees in 2018, including a $325,000 donation to America First Action, a super PAC supporting former President Donald Trump

Another part said he used the wealth of a Russian financier, Andrey Muraviev, to make donations to U.S. politicians, ostensibly in support of an effort to launch a legal, recreational marijuana business.

Parnas was convicted on all counts.

Parnas, 49, a Soviet-born Florida businessman, insisted through his lawyer that he never used the Russian’s money for political donations.

A co-defendant in the case, Ukraine-born investor Andrey Kukushkin, was convicted of being part of the effort to use Muraviev’s money for political contributions. He had also denied any wrongdoing.

The case had drawn interest because of the deep involvement of Parnas and a former co-defendant, Igor Fruman in Giuliani’s efforts to get Ukrainian officials to investigate Joe Biden’s son during Biden’s campaign for president.

Giuliani remains under criminal investigation as authorities decide whether his interactions with Ukraine officials required him to register as a foreign agent, but he wasn’t alleged to have been involved in illegal campaign contributions and wasn’t part of the New York trial.

The case did, though, give an up-close look at how Parnas entered Republican circles in 2018 with a pattern of campaign donations big enough to get him meetings with the party’s stars.

In addition to the $325,000 donation to America First Action, made through an energy company, prosecutors said Parnas and Fruman orchestrated donations to U.S. Rep. Pete Sessions, of Texas, and to other committees supporting House Republicans.

Giuliani and Trump were sparsely mentioned during the trial, although a photograph featuring Parnas with Florida Gov. Ron DeSantis, a Republican, was one of the first exhibits shown to jurors during closing arguments and a video of Giuliani with Parnas was among exhibits jurors could view during deliberations.

DeSantis was among those who received campaign contributions that prosecutors said were traced to $1 million that Parnas and Fruman received from Muraviev, who has been involved in several U.S. cannabis ventures.

About $100,000 of Muraviev’s money went toward campaign contributions in what Assistant U.S. Attorney Hagan Scotten called a conspiracy to secretly bring his “wealth and corruption into American politics” in violation of laws barring foreign donations to U.S. political candidates.

“The voters would never know whose money was pouring into our elections,” Scotten said.

Former Nevada Attorney General Adam Laxalt, now a candidate for U.S. Senate, testified during the trial that a blustering Parnas suggested he could raise hundreds of thousands of dollars for him in 2018. He eventually came through only with a $10,000 check that Laxalt’s lawyers told him to reject.

Joseph Bondy, a lawyer for Parnas, called the allegations against his client “absurd.”

He insisted in his closing argument that Muraviev’s money went toward supporting legal marijuana businesses looking to expand.

Kukushkin’s lawyer, Gerald Lefcourt, sought to portray his client as an unknowing dupe in the scheme, who was mocked behind his back by other participants as mentally challenged.

Fruman pleaded guilty earlier this year to a single count of solicitation of a contribution by a foreign national. He awaits sentencing.

Another co-defendant, David Correia, also pleaded guilty and has been sentenced to a year in prison for crimes including defrauding investors in an insurance company that had paid Giuliani a $500,000 consulting fee.

Parnas awaits a second trial in connection with that scheme.

Giuliani has insisted that he knew nothing about potentially illegal campaign contributions by either Parnas or Fruman. The former mayor says everything he did in Ukraine was done on Trump’s behalf and there is no reason he would have had to register as a foreign agent.

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