Lev Parnas Faces Ironic New Charges

The former Rudy Giuliani associate is accused of defrauding investors in fraud protection company
By Neal Colgrass,  Newser Staff
Posted Sep 17, 2020 5:30 PM CDT
Lev Parnas Faces New Charges
In this Oct. 17, 2019 file photo, David Correia walks from federal court in New York.   (AP Photo/Craig Ruttle)

Lev Parnas is back in the media eye and facing new federal charges—this time, for allegedly defrauding investors with a company he started called Fraud Guarantee, NBC News reports. "We couldn't say it better ourselves—the behavior alleged today is indeed fraudulent—guaranteed," said FBI Assistant Director Bill Sweeney. New York prosecutors said Thursday that Parnas and business partner David Correia lured investors into putting over $2 million into the company, which was designed to provide fraud protection. Parnas and Correia allegedly spent the money on personal expenses, including political donations and $30,000 on luxury car leases.

"At least seven victims invested in Fraud Guarantee based at least in part on Parnas' and Correia's false and misleading representations, with each victim being fraudulently induced to pay hundreds of thousands of dollars," said the US Attorney's Office for the Southern District of New York. Parnas and Correia apparently told investors that Fraud Guarantee would sell a kind of insurance; buyers could recoup their losses in case an investment lost its value due to a company's criminal fraud. The New York Times reports that Parnas and Correia also paid Giuliani—President Trump's personal lawyer—$500,000 to advise and endorse Fraud Guarantee, but Giuliani hasn't been charged. (Parnas and Correia have already been indicted on campaign finance charges.)

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