Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Business partner of ex-Giuliani associate expected to enter guilty plea

Economy Oct 28, 2020 02:50PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: U.S. businessman David Correia departs after his arraignment at the United States Courthouse in the Manhattan borough of New York City

By Jonathan Stempel

NEW YORK (Reuters) - A business partner of Lev Parnas, the former associate of U.S. President Donald Trump's personal lawyer Rudy Giuliani, is expected to enter a guilty plea on Thursday after being charged with defrauding investors in an insurance startup they founded.

Manhattan federal court records on Wednesday show that David Correia, the business partner, will appear for a change-of-plea hearing, which signals a guilty plea from a defendant who previously pleaded not guilty.

Correia was among four defendants, including Ukraine-born Parnas and Belarus-born Igor Fruman, another former Giuliani associate, charged last October with campaign finance violations to further their political or business interests. He would be the first to plead guilty.

A lawyer for Correia did not immediately respond to a request for comment. Giuliani has not been criminally charged and has denied wrongdoing

Prosecutors said Correia and Parnas conspired to induce investors to plow more than $2 million into their insurance company Fraud Guarantee, only to then spend much of it on rent, car leasing payments, political donations and other expenses.

Correia and the fourth defendant, Ukraine-born Andrey Kukushkin, were also charged over an alleged scheme to channel donations to U.S. politicians from a Russian businessman to support a proposed marijuana business.

Parnas, who has broken with Trump and Giuliani, and Fruman face separate charges for allegedly using a shell company to make an illegal $325,000 donation for Trump's re-election.

The New York Times said Correia is expected to admit to duping Fraud Guarantee investors and making a false statement to the Federal Election Commission concerning campaign donations.

It also said Correia is not expected to cooperate with prosecutors investigating Giuliani's dealings with Ukraine.

Giuliani told Reuters last October he was paid $500,000 for work he did for Fraud Guarantee.

Parnas, Fruman and Kukushkin have pleaded not guilty. A trial is scheduled for March 1, 2021.

Fruman's lawyer and a spokesman for Acting U.S. Attorney Audrey Strauss declined to comment. Lawyers for Parnas and Kukushkin did not immediately respond to requests for comment.

The case is U.S. v. Parnas et al, U.S. District Court, Southern District of New York, No. 19-cr-00725.

Business partner of ex-Giuliani associate expected to enter guilty plea
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email