After a federal grand jury find him guilty last year of transporting foreign money into the US elections, formerly Rudy Giuliani combine Lev Parnas admitted to another scheme on Friday involving a company called Guarantee Fraud. Giuliani, who is being investigated by the Southern District of New York for other suspected crimes, told Reuters he made $500,000 working with that company.
Parnas’ plea to conspiracy to commit electronic fraud does not include any agreement with the government.
“There is no plea agreement here,” US District Judge J. Paul Oetken note in the hearing.
Parnas, a 50-year-old who was the central figure of the former President Donald Trump Ukraine scandal, agreed that it is true.
At least seven victims allegedly invested in Fraudulent Guarantees, placing hundreds of thousands of dollars for a total of more than $2 million. Prosecutors say that Parnas and his accomplices David CorreiaWho pleaded guilty for related fees at the end of last year, misleading them about how much they contributed to the company and the total amount the company raised.
“We couldn’t have said it better on our own – the conduct alleged today was indeed fraud – guaranteed,” FBI Assistant Director William Sweeney suffered a pun when prosecutors filed an alternative indictment in September.
According to the alternative indictment, Parnas and Correia established Fraud Guarantee in late 2012, persuading investors into the company to provide services to protect investors from fraud. They claimed that the company would offer an insurance product that would allow policyholders to recover money if there was fraud.
“So, for example, if an investor invests in ‘Company XYZ’ and purchases a Fraud Guarantee policy, in the event that investor loses the value of the investment due to criminal fraud At XYZ Company, the Fraud Guarantee will allow the investor to cover the investor’s losses,” indictment Statuses. “Although Parnas and Correia made certain efforts to launch Fraud Guarantee and bring their products to market, the company never went live.”
Prosecutors say Parnas, 50, and Correia asserted that they received no wages and that all investor money would be
used for the company’s business expenses.
According to prosecutors, Parnas and Correia pocketed the money instead.
“During this time, from [the company account]more than $230,000 was withdrawn in cash, more than $130,000 was used to pay Parnas’ personal rent, more than $40,000 was transferred to accounts in Parnas and his wife’s name, and At least tens of thousands of dollars were spent on apparently personal expenses, including more than $30,000 at luxury car rental companies,” the indictment states.
In a separate company account, more than $3,000 was transferred to another account in Correia’s wife’s name, according to the indictment.
“I am deeply sorry for my actions, for your honor,” Parnas said during the hearing.
Giuliani has not been charged with misconduct related to Guarantee Fraud and the investigation that led to the fraudearch of Giuliani’s Manhattan apartment mainly revolved around his dealings in Ukraine. A court filing from last September revealed more about the scope of the investigation.
“The investigation is being conducted by the Government supposedly by them, to look for the possibility [Foreign Agents Registration Act] violations involving Ukrainian individuals, Ambassador Marie Yovanovitch and the office of the US Ambassador to Ukraine; Giuliani’s trip to Poland in 2019 and matters involving Franklin Templeton and embezzled funds from [sic] Ukraine, “memorandum of understanding” stated.
Parnas told the judge he was “beyond” satisfied with his legal representation by Joseph Bondywho did not immediately respond to a request for comment.
Judge Oetken said that Parnas would be sentenced on June 29 at 11 a.m.
(Photo via Justice Department)
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https://lawandcrime.com/high-profile/lev-parnas-pleads-guilty-to-scheme-involving-fraud-guarantee-a-company-that-once-paid-rudy-giuliani-half-a-million-dollars/ Lev Parnas pleads guilty in fraudulent bail scheme