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| DATE | 2020-10-30 |
| FROM | Ruben Safir
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| SUBJECT | Subject: [Hangout - NYLXS] The FBI is fighting back
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Businessman Pleads Guilty in Probe of Giuliani Associates
David Correia admitted to helping Rudy Giuliani associates lie to
federal election officials and wire-fraud conspiracy
David Correia, center, leaving federal court in New York on Oct. 17, 2019.
Photo: Peter Foley/Bloomberg News
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Updated Oct. 29, 2020 12:38 pm ET
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A Florida businessman pleaded guilty Thursday to charges that he duped
potential investors in a fraud-insurance company and that he helped
associates of Rudy Giuliani lie to federal election officials about a
$325,000 donation to a super PAC supporting President Trump.
It is the first conviction to arise from an investigation by Manhattan
federal prosecutors and the Federal Bureau of Investigation examining
the business and political dealings of Mr. Giuliani and several
associates working on behalf of Mr. Trump.
In a proceeding conducted by videoconference, before a federal judge in
Manhattan, David Correia pleaded guilty to one count of making false
statements to the Federal Election Commission and one count of
conspiracy to commit wire fraud in connection with the fraud-insurance
company, Fraud Guarantee.
Mr. Correia, 45 years old, had faced five counts stemming from his role
in multiple alleged schemes involving his work alongside business
partner Lev Parnas, a Soviet-born businessman who worked with Mr.
Giuliani to push Ukrainian officials to investigate Democratic
presidential nominee Joe Biden.
Mr. Parnas, who was charged in the same case, has pleaded not guilty.
Mr. Giuliani wasn’t charged and has denied wrongdoing.
It isn’t clear if Mr. Correia’s plea—which isn’t a cooperation
agreement, Manhattan federal prosecutors noted Thursday—would affect the
course of the investigation. The probe has dogged Mr. Trump’s close
ally, Mr. Giuliani, and the alleged misconduct of his associates
overlapped with the activities in the impeachment proceedings against
Mr. Trump last year.
Mr. Correia was arrested in October 2019 on a single count of conspiracy
to violate the ban on foreign contributions to U.S. political campaigns.
The charge grew out of alleged efforts with Mr. Parnas and businessmen
Igor Fruman and Andrey Kukushkin to secure benefits and influence for a
planned recreational marijuana business, for which they needed licenses
in Nevada and other U.S. states, prosecutors said.
Messrs. Fruman and Kukushkin have pleaded not guilty. Mr. Correia’s plea
Thursday didn’t relate to the marijuana business, which didn’t come to
fruition.
Attorneys for Messrs. Giuliani, Parnas and Fruman didn’t immediately
respond to requests for comment.
Last month, federal prosecutors in Manhattan filed new criminal charges,
saying Mr. Correia helped Messrs. Parnas and Fruman deflect an inquiry
from the Federal Election Commission about the true source of a $325,000
donation Messrs. Parnas and Fruman made in 2018 to America First Action,
a super PAC formed to support Mr. Trump.
Messrs. Parnas and Fruman had reported to the FEC that the contribution
came from Global Energy Producers, or GEP, an energy import-export
business they had just founded and wanted to promote, according to the
latest indictment. In fact, prosecutors said, the funds came from a
mortgage Mr. Fruman had taken out on his apartment, and GEP had no
income, assets or business. Federal law prohibits the use of so-called
straw donors, which conceal the true source of funds intended to
influence campaigns.
The FEC opened an inquiry into the donation in 2018, and Mr. Correia,
who was helping to promote GEP, filed an affidavit to the commission
saying GEP was established and well-funded. As he entered his plea on
Thursday, Mr. Correia told U.S. District Judge J. Paul Oetken that he
knew the affidavit said things that were “probably false” but he didn’t
ask questions. Mr. Correia said he believed the FEC probe was unwarranted.
Prosecutors also added a charge related to Fraud Guarantee, which
Messrs. Parnas and Correia formed around 2012. According to the
indictment, Messrs. Parnas and Correia duped at least seven investors
into giving them hundreds of thousands of dollars—for a total of more
than $2 million—in part through misrepresentations about how much the
company had raised and how it was spent.
Messrs. Correia and Parnas used most of the funds for personal expenses
such as luxury car leases, rent and political contributions, according
to the indictment. A prosecutor said in Thursday’s proceeding that Mr.
Correia took much less money than Mr. Parnas.
Mr. Correia is set to be sentenced on Feb. 8, 2021. The trial for the
other defendants has been set for March 1.
--
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