Giuliani Associates Tied to Ukraine Probe Charged with Campaign Finance Violations

Two Florida businessmen tied to President Donald Trump’s lawyer and the Ukraine investigation were charged Thursday with federal campaign finance violations. The charges relate to a $325,000 donation to a group supporting Trump’s reelection.

Lev Parnas and Igor Fruman, associates of Rudy Giuliani, were arrested on a four-count indictment that includes charges of conspiracy, making false statements to the Federal Election Commission and falsification of records. The men had key roles in Giuliani’s efforts to launch a Ukrainian corruption investigation against Democratic presidential contender Joe Biden and his son Hunter.

The indictments mark the first criminal charges related to the Ukraine controversy. While they do not suggest wrongdoing by the president, they are likely to add fuel to the House impeachment inquiry, raising additional questions about whether those close to Trump and Giuliani sought to use their influence to affect U.S. foreign policy decisions.

Trump has dismissed the impeachment inquiry as baseless and politically motivated.

Records show that Parnas and Fruman used wire transfers from a corporate entity they controlled to make the $325,000 donation to the America First Action committee in 2018. But wire transfer records that became public through a lawsuit show that the corporate entity reported as making the transaction was not the true source of the money.

Prosecutors also allege that Parnas urged a U.S. congressman to seek the ouster of the U.S. ambassador to Ukraine, at the behest of Ukrainian government officials. That happened about the same time that Parnas and Fruman committed to raising more than $20,000 for the politician.

The congressman wasn’t identified by name in court papers, but the donations to “Congressman 1” in the indictment match campaign finance reports for former Rep. Pete Sessions, a Texas Republican who lost his re-election bid in November 2018. In May 2018, Parnas posted a photo of himself and his business partner Correia with Sessions in his Capitol Hill office, with the caption “Hard at work !!”

John Dowd, an attorney for the men, hung up on an Associated Press reporter calling about the case. Giuliani said he couldn’t comment on the case and that he didn’t represent them in campaign finance matters.

The men, who were arrested at Dulles International Airport and booked at a local jail in Alexandria, Virginia, late Wednesday night, were expected to appear in federal court. Two other men, David Correia, a U.S. businessman, and Andrew Kukushkin, a Ukrainian-born U.S. citizen, were also charged in the case.

The indictment says Parnas and Fruman “sought to advance their personal financial interests and the political interests of at least one Ukrainian government official with whom they were working” and took steps to conceal it from third parties, including creditors. They created a limited liability corporation, Global Energy Producers, and “intentionally caused certain large contributions to be reported in the name of GEP instead of in their own names,” according to the indictment.

Prosecutors charge that the two men falsely claimed the contributions came from GEP, which was described as a liquefied natural gas business. At that point, the company had no income or significant assets, according to the indictment.

Prosecutors allege that Parnas and Fruman conspired to make illegal contributions in an effort to skirt the limit on federal campaign contributions. The men are also accused of making contributions to candidates for state and federal office, joint fundraising committees and independent expenditure committees in the names of other people.

The political donations were made “for the purpose of gaining influence with politicians, so as to advance their own personal financial interests and the political interests of Ukrainian government officials, including at least one Ukrainian government official with whom they were working,” the indictment charges.

The commitment to raise more than $20,000 for the congressman was made in May and June 2018. The lawmaker had also received about $3 million in independent expenditures from a super political action committee that Parnas and Fruman had been funding. A super PAC can raise and spend unlimited amounts of money in support of a candidate but isn’t allowed to directly coordinate with the official campaign.

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