Giuliani associate convicted of campaign finance crimes
New York: A New York jury has convicted a former associate of Rudy Giuliani of charges that he made illegal campaign contributions to influence US politicians and advance his business interests.
The verdict was returned on Friday (Saturday AEDT) 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.
Lev Parnas, left, and his lawyer Joseph Bondy leave the federal courthouse in New York this week.Credit:AP
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 $US325,000 ($435,000) 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 US politicians, ostensibly in support of an effort to launch a legal, recreational marijuana business.
Parnas, 49, was convicted on all counts.
The Soviet-born Florida businessman had insisted through his lawyer that he never used the Russian’s money for political donations. He briefly closed his eyes and shook his head as the verdict was read.
Outside the courtroom after the verdict, Parnas said, “I’ve never hid from nobody. I’ve always stood to tell the truth.”
A co-defendant, 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 order to gain influence with American politicians and candidates, they illegally funnelled foreign money into the 2018 midterm elections with an eye toward making huge profits in the cannabis business,” US Attorney Damian Williams said in a statement following the verdict. “Campaign finance laws are designed to protect the integrity of our free and fair elections – unencumbered by foreign interests or influence – and safeguarding those laws is essential to preserving the freedoms that Americans hold sacred.”
In addition to the $US325,000 donation to America First Action, made through an energy company, prosecutors said Parnas and Fruman orchestrated donations to US Representative 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 Governor 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.
Lev Parnas, left, with Rudy Giuliani, second from left, arriving before a state funeral service for former US president George H.W. Bush in 2018.Credit:Bloomberg
DeSantis was among those who received campaign contributions that prosecutors said were traced to $US1 million that Parnas and Fruman received from Muraviev, who has been involved in several US cannabis ventures.
About $US100,000 of Muraviev’s money went toward campaign contributions in what Assistant US Attorney Hagan Scotten called a conspiracy to secretly bring his “wealth and corruption into American politics” in violation of laws barring foreign donations to US 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 US 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 $US10,000 cheque that Laxalt’s lawyers told him to reject.
Joseph Bondy, a lawyer for Parnas, had 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.
Following the verdict, prosecutors asked for immediate incarceration of Parnas and Kukushkin, citing a risk of flight, but the judge allowed them to remain free on bail while awaiting sentencing.
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 $US500,000 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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