Federal prosecutors in Manhattan are considering filing new charges against Lev Parnas, the business associate of Rudy Giuliani, CNN reported.
According to people familiar with the investigation, the charges are tied to Parnas’ company Fraud Guarantee, which paid Giuliani $500,000. The possible new charges are related to Parnas and his business associate and whether the pair intentionally misled investors in the Florida-based company designed to give other companies insured protection against fraud.
Federal prosecutors in the Southern District of New York are examining whether Parnas and his associate David Correia hoodwinked investors on the value of Fraud Guarantee or how they planned to spend the investments, people familiar with the investigation told CNN. The possible additional charges furthers suspicions about what role Giuliani may have played in the marketing of Fraud Guarantee. A Giuliani lawyer told CNN that the President’s lawyer never discussed investments or marketing with Parnas and Correia.
A person familiar with the investigation told CNN that federal investigators have obtained copies of text messages and other documents relevant to Parnas’ marketing scheme. According to this person, the business partners spent investment dollars on personal expenses.
Parnas, Correia and another man Igor Fruman have all already been charged for campaign finance violations. All have pleaded not guilty.