Lev Parna's associate David Correia expects to plead responsible within the fraud assure case, courtroom data present
David Correia, a business associate of Rudy Giuliani's ex-employee Lev Parnas, will plead guilty to a case in which both he and Parnas are accused of defrauding investors in a potential company called Fraud Guarantee.
Both Correia and Parnas were beaten in federal Manhattan federal court last month on substitute charges accusing them of conspiracy to commit cable fraud in connection with the fraud guarantee allegedly protecting customers from fraud.
Correia and Parnas, along with two other men, were charged with conspiracy against the law banning political donations by foreigners in 2019.
A court file on Wednesday said Correia, who like Parnas pleaded not guilty in the case, is due to appear at a hearing on Thursday to change the plea.
The filing did not make it clear whether Correia would change his guilty pledge on all of the charges he faces or just those related to the fraud guarantee.
Correia's attorney William Harrington declined to comment when contacted by CNBC.
Prosecutors have stated that Correia and Parnas received more than $ 2 million from investors for the stated purpose of funding the fraud guarantee.
"While some of the victims' funds were used for the fraud guarantee business expenses, the majority did not," the Justice Department said in a press release last month.
"Rather, the majority of the funds have been withdrawn in cash, transferred to accounts on behalf of Parnas or Correia or their family members, or spent on various seemingly personal expenses, including hundreds of thousands of dollars in rent for Parnas' personal residence and tens of thousands of dollars on luxury automobiles. Leasing company, "said the Justice Department.
The two men "also used certain sacrificial funds to fund political contributions," the press release said.
FBI Assistant Director Bill Sweeney said last month, "We couldn't put it better ourselves – the conduct alleged today is indeed fraudulent – guaranteed."
Giuliani, President Donald Trump's personal attorney, has not been prosecuted in the case.
In November last year, the former mayor of New York was known to be the subject of an investigation by the US Attorney's Office for the southern borough of New York.
This is the same Manhattan prosecutor that charged Correia, Parnas, and their co-defendants Igor Fruman and Andrey Kukushkin. Fruman and Kukishkin have also pleaded not guilty.
Giuliani received $ 500.00 in 2018 to work on behalf of the Fraud Guarantee, the New York Times reported. The money was reportedly from a Long Island attorney, also a Trump donor, who paid Giuliani under a contract to invest in the fraud guarantee.
Giuliani told The Times last year that he was paid to provide "a combination of business advice and advice consistent with what my company does and legal advice" for the fraud guarantee.
Parnas and Fruman previously worked with Giuliani for information on the relationship of former Vice President Joe Biden and his son Hunter Biden with a Ukrainian natural gas company.
Giuliani has continued to promote allegations of Bidens misconduct in Ukraine and in connection with business interests related to China in recent weeks. Joe Biden, who is the Democratic candidate for president, has denied any wrongdoing.
Both Parnas and Fruman were summoned by the House of Representatives for testimony and documents last year as the House headed towards the charges against Trump.
The president, who was acquitted after a Senate trial, was charged with withholding Congress-approved military aid to Ukraine when he pressured that nation's government to investigate Hunter Biden and Joe Biden on the matter Time were a leading candidate for the Democratic President nomination.