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    Igor Fruman, Former Giuliani Associate, Is Sentenced to One Year in Prison

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    Mr. Fruman was at the center of a campaign to damage then-President Donald J. Trump’s rivals, but was brought down by campaign finance charges.Well before the 2020 presidential election, when he was an associate of Rudolph W. Giuliani, Igor Fruman was on the front lines of a shadowy diplomacy campaign to advance then-President Donald J. Trump’s interests and damage his political adversaries.But an unrelated and much more mundane matter brought down Mr. Fruman: federal campaign-finance laws.Last year, Mr. Fruman pleaded guilty to soliciting foreign campaign contributions by asking a Russian tycoon for $1 million for American political candidates. And on Friday a judge in Federal District Court in Manhattan fined Mr. Fruman $10,000 and sentenced him to one year and one day in prison, in addition to the more than two years Mr. Fruman has spent in home confinement since his arrest.Addressing Judge J. Paul Oetken, Mr. Fruman said he had spent the time since his arrest reflecting on his actions.“It’s a shame that will live with me forever,” he said. “But I can assure you, my family, and the government that I will never appear before yourself or another courtroom again.”The sentencing closed a chapter for Mr. Fruman, who was arrested in 2019 at Dulles International Airport, along with a business partner, Lev Parnas, as they were about to leave the country.The two Soviet-born businessmen had worked their way into Republican circles in 2018, donating money and posing for selfies with candidates. They had dinner with Mr. Trump at his hotel in Washington, D.C., and became friendly with Mr. Giuliani, the president’s personal lawyer.Eventually, Mr. Fruman and Mr. Parnas were connected to investigations and an impeachment, assisting Mr. Giuliani as he attempted to undermine Joseph R. Biden Jr., who ended up defeating Mr. Trump in 2020.Mr. Giuliani credited Mr. Fruman and Mr. Parnas with arranging a meeting with Viktor Shokin, Ukraine’s former top prosecutor and a key figure in Republican attacks on Mr. Biden and his son Hunter Biden, who served on the board of a Ukrainian energy company.And Mr. Fruman’s connections helped lead to a meeting between Mr. Giuliani and Mr. Shokin’s successor, Yuriy Lutsenko, according to two people with knowledge of the arrangements. Mr. Lutsenko, who was helping Mr. Giuliani unearth damaging information about the Bidens, also wanted Marie L. Yovanovitch, the American ambassador to Ukraine, to be removed from her post. She was recalled in 2019.Efforts to oust Ms. Yovanovitch became a focus of Mr. Trump’s first impeachment trial and led to a federal criminal investigation into whether Mr. Giuliani broke lobbying laws, according to people with knowledge of the matter. He has denied wrongdoing.But before serving as foot soldiers in Mr. Giuliani’s campaign, Mr. Fruman and Mr. Parnas were entrepreneurs who decided to create a company that would import natural gas to Ukraine.Prosecutors said they wanted to bolster the company’s profile and began donating to Republican candidates and groups. Soon Mr. Fruman and Mr. Parnas were fixtures at rallies and donor gatherings in places like Mar-a-Lago, Mr. Trump’s Florida club. They were a memorable pair. Mr. Fruman, who was born in Belarus, spoke a mix of Russian and choppy English. The Ukrainian-born Mr. Parnas exuded sincerity.A donation of $325,000 to a pro-Trump super PAC, America First Action, was reported as coming from the company formed by Mr. Parnas and Mr. Fruman, called Global Energy Producers. That broke campaign finance law, prosecutors said, because the money did not come from the company but from a loan Mr. Fruman took out.Mr. Fruman and Mr. Parnas were also accused of soliciting the Russian tycoon Andrey Muraviev to send one million dollars to them so they could make campaign donations. The goal, prosecutors said, was to influence candidates who would help a fledgling cannabis business the three had discussed.Communications obtained by prosecutors show that Mr. Fruman repeatedly pressed for that money, providing a bank account and routing number for a company controlled by his brother. Records assembled by prosecutors show that two companies owned by Mr. Muraviev wired $500,000 apiece to the company controlled by Mr. Fruman’s brother.Mr. Fruman also sent exuberant messages to Mr. Muraviev and others, at one point including a picture of himself with Ron DeSantis, the governor of Florida who was then a candidate for the office, and writing: “Today Florida becomes ours forever!!!!” A week later Mr. Fruman wrote: “Everything is great!! We are taking over the country!!!!”According to prosecutors, more than $150,000 of Mr. Muraviev’s money went to Republican candidates in the 2018 election cycle, including Adam Laxalt, who was running for governor of Nevada and later supported an effort to overturn Mr. Trump’s loss there.Mr. Laxalt, who did not become governor, said he was suspicious of the donation and sent a check in that amount to the U.S. Treasury.After Mr. Fruman and Mr. Parnas were arrested in 2019, Mr. Trump told reporters he did not know the two men.Aggrieved, Mr. Parnas broke publicly with Mr. Trump and Mr. Giuliani, turning over material to House impeachment investigators. In October a jury in Manhattan convicted Mr. Parnas of several campaign finance charges including conspiracy to make contributions by a foreign national and falsifying records.A month before that trial began, Mr. Fruman pleaded guilty to a single count of soliciting a contribution by a foreign national.In a memorandum to the court, Mr. Fruman’s lawyers asked for lenience, arguing that their client should be sentenced to time served instead of prison.Because of the notoriety accompanying his offense, Mr. Fruman’s business had faltered, they wrote, adding that he had resorted to spending savings and selling assets and could ill-afford the fine of $15,000 to $150,000 that prosecutors said federal guidelines called for.The lawyers wrote that Mr. Fruman had no previous criminal record and would never again appear in court “in a criminal setting.” They also said that the financial hardship Mr. Fruman experienced, “irreparable reputational damage,” and the 27 months he has spent confined to his home since shortly after his arrest “serve as adequate deterrence.”“Mr. Fruman is a good, decent, and honorable man who puts his faith, family and country first,” his lawyers told the court, adding, “This is not a case where Mr. Fruman embarked on an effort to influence the outcome of American elections using foreign money.”Prosecutors countered that Mr. Fruman’s submission exhibited “a blatant contempt for the law,” writing: “He views this case as an inconvenience to evade, and not an opportunity for reformation.”Mr. Fruman, the prosecutors said, had been “trying to corrupt U.S. elections to advance his own financial interests.” More

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      Testimony at Lev Parnas Trial Offers Peek at His Place in Trump’s Orbit

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      Among other things, Adam Laxalt, a U.S. Senate candidate in Nevada, described his suspicions about a donation to his run for governor in 2018.Adam Laxalt was a Republican candidate for governor of Nevada in 2018 when he bumped into Rudolph W. Giuliani in a ballroom at the Trump International Hotel in Washington.Mr. Laxalt, who, like Mr. Giuliani, was a staunch supporter of President Donald J. Trump, accompanied Mr. Giuliani to a balcony, and told him that the governor’s race was “very close.”Among a group smoking cigars and having drinks, someone Mr. Laxalt did not know spoke up: It was Lev Parnas, a Ukrainian American businessman.“He immediately offered to help my campaign,” Mr. Laxalt said on Friday while testifying as a prosecution witness at Mr. Parnas’s corruption trial in federal court in Manhattan. “He offered to throw a fund-raiser.”Mr. Parnas is charged with conspiring to make campaign contributions by a foreign national and in the name of a person other than himself. Among the contributions at issue is one made in the maximum amount, $2,700, to Mr. Laxalt in 2018. An indictment says Mr. Parnas made the contribution using a credit card belonging to a business partner, Igor Fruman, and another person.Later, Mr. Parnas and Mr. Fruman became known for helping Mr. Giuliani, Mr. Trump’s personal lawyer, as he oversaw an effort in Ukraine to uncover damaging information about Joe Biden, at the time a leading Democratic presidential candidate who went on to beat Mr. Trump in the 2020 election.Mr. Laxalt’s testimony illustrated how thoroughly Mr. Parnas appeared to have installed himself in Mr. Trump’s orbit. Mr. Laxalt was a co-chair of Mr. Trump’s 2020 campaign in Nevada and he supported an effort to overturn Mr. Trump’s loss there.The interactions between Mr. Laxalt, who is currently running for a U.S. Senate seat in Nevada, and Mr. Parnas also provided a glimpse into the life of a political candidate eager to keep money flowing to his campaign.Although Mr. Laxalt is well known in Nevada — his grandfather was Paul Laxalt, a U.S. senator from the state — he testified that his race against Steve Sisolak, the Democrat who ultimately prevailed, was a “long, grueling, very tense” experience.The day after the meeting at the Trump hotel, Mr. Laxalt testified that he and Mr. Parnas exchanged text messages and that he believed some of them were related to plans to attend a rally that was to include Mike Pence, the vice president at the time.The text exchanges continued for weeks. A pattern emerged, in which Mr. Laxalt asked Mr. Parnas about donations, and Mr. Parnas provided responses that were short on commitment.Mr. Laxalt’s apparent friendliness in his messages to Mr. Parnas may have been partly professional. On cross-examination, he acknowledged that he had referred to Mr. Parnas as “a clownish guy with a gold chain,” and wondered whether he was an oddball from Brooklyn with a home in Florida who was more interested in taking photos with candidates than in writing checks to them.“Are you going to deliver on this fund-raiser,” Mr. Laxalt texted Mr. Parnas at one point. Mr. Parnas suggested some possible dates. But they passed without the event taking place.Mr. Laxalt testified that he encountered Mr. Parnas at a rally for Mr. Trump in Elko, Nev. They also arranged to have dinner, along with a few others, at a restaurant in Las Vegas that Mr. Laxalt described in a text message to Mr. Parnas as “an old mob joint.” (Mr. Parnas responded “love it” and included a thumb’s up emoji.)At times, the two exchanged comments about the campaign of Ron DeSantis, a good friend of Mr. Laxalt’s whom Mr. Parnas was also supporting as he ran for governor of Florida.As the election neared, Mr. Laxalt kept inquiring about money. Mr. Parnas said he would bring Mr. Giuliani to Nevada to barnstorm on Mr. Laxalt’s behalf. Mr. Parnas also asked Mr. Laxalt whether he would like help in arranging a robocall.Eventually, Mr. Parnas told Mr. Laxalt by text that he could arrange for donations totaling $20,000 from three people. Mr. Laxalt was appreciative but he asked whether Mr. Parnas himself was going to donate.“I can’t,” Mr. Parnas replied, citing a Federal Election Commission matter, an apparent reference to a complaint that a $325,000 donation to a super PAC supporting Mr. Trump, America First Action, by an energy company started by Mr. Fruman and Mr. Parnas had broken the law.“My attorney won’t allow it,” Mr. Parnas wrote to Mr. Laxalt, adding that he had tried to get his wife to donate but that his lawyer had also vetoed that idea.A short time later, on Nov. 1, 2018, less than a week before Election Day, Mr. Laxalt’s campaign received a $10,000 donation from Mr. Fruman.Mr. Laxalt said during his testimony on Friday that he was suspicious of the donation and, on the “advice of counsel,” had decided to send a check in that amount to the U.S. Treasury. More

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      As Lev Parnas' Trial Begins, Trump’s Shadow Looms

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      Though Mr. Parnas played a key role in the events that led to the former president’s impeachment, the charges he faces involve accusations of campaign finance violations.For Lev Parnas, a Ukrainian American businessman living in Florida, 2018 was a busy year.Sometime around March, he began showing up at Republican fund-raisers. Then, in late April, he dined on cheeseburgers and wedge salads with President Donald J. Trump.By May, a fledgling energy company that Mr. Parnas started with a partner, Igor Fruman, was listed as giving $325,000 to a pro-Trump super PAC. Soon, Mr. Parnas was assisting President Trump’s personal lawyer, Rudolph W. Giuliani, as he oversaw a shadow diplomacy campaign to investigate Joseph R. Biden Jr., then a leading Democratic presidential candidate.Within a year, Mr. Parnas was under investigation, and in late 2019 he was arrested with Mr. Fruman at Dulles International Airport, where both held one-way tickets on a Lufthansa Airlines flight to Frankfurt.Now, Mr. Parnas is facing a trial on campaign finance charges that include contributions to the super PAC and a state candidate in Nevada, where he wanted to operate a cannabis business. And though the case has little to do with his dealings with the former president — who was not accused of wrongdoing in the matter — Mr. Trump’s shadow hangs over Mr. Parnas’s trial, which begins Tuesday in federal court in Manhattan.The trial is expected to fill in gaps in the story of Mr. Parnas’s improbable ascent and downfall, from humble beginnings in Brooklyn to playing a key role in a sequence of events connected to the impeachment of Mr. Trump over accusations that he had asked Ukraine to investigate unfounded allegations about Mr. Biden and a conspiracy theory that Ukraine, rather than Russia, had meddled in the 2016 election.“Parnas is an interesting figure because in many respects he was in the underbelly of the Ukraine story,” said Daniel S. Goldman, the House Intelligence Committee lawyer who led the Ukraine inquiry. “We understood that Parnas in particular was Giuliani’s liaison to a lot of the significant officials in Ukraine.”According to an indictment unsealed after the airport arrests, Mr. Parnas, along with Mr. Fruman and two other co-defendants, conspired to circumvent the federal laws against foreign influence “by engaging in a scheme to funnel foreign money to candidates for federal and state office.”Mr. Fruman pleaded guilty last month to soliciting a campaign contribution from a foreign national. Another co-defendant, David Correia, pleaded guilty last year to conspiracy to commit wire fraud and to making false statements to the Federal Election Commission.Igor Fruman, center, pleaded guilty in September to soliciting a campaign contribution from a foreign national.Go Nakamura/ReutersWhen jury selection begins on Tuesday, Mr. Parnas’s only remaining co-defendant will be a man named Andrey Kukushkin. He is described in court papers as a partner in the planned cannabis business and a participant in a conspiracy to make political donations using money from a rich Russian businessman, Andrey Muraviev.A prosecutor, Hagan Cordell Scotten, suggested during a recent court hearing that Mr. Parnas could be viewed as “something of a genius serial fraudster.”One man who lost money by investing in a company led by Mr. Parnas remembered him wearing diamonds and driving a Rolls-Royce. But behind the trappings of affluence was a history of debts and aborted businesses.As he entered the world of political donors, Mr. Parnas seemed to see it in purely transactional terms, using money to gain access to Republican influencers, then apparently hoping to use those connections to further various moneymaking efforts.While working with Mr. Giuliani in late 2018 and 2019, Mr. Parnas traveled to Kyiv to press officials there to investigate Mr. Biden’s son Hunter, who had served as a board member of a Ukrainian energy company.Records released by Mr. Parnas show that he maintained regular communication with Yuriy Lutsenko, then Ukraine’s chief prosecutor, who was urging the removal of the United States ambassador in Kyiv and promising to help obtain information about both Bidens.Mr. Parnas also exchanged text messages with a Trump ally, Robert F. Hyde, that appeared to include references to people conducting surveillance on the ambassador, who Mr. Trump eventually recalled from her post. Mr. Giuliani later said in an interview with The New Yorker that he wanted that ambassador, Marie Yovanovitch, “out of the way” because he feared she would complicate his attempts to dig up dirt on Joe Biden.After Mr. Parnas’s arrest, Mr. Trump denied knowing him. Before long, Mr. Parnas reversed his loyalties, saying he regretted trusting Mr. Giuliani and Mr. Trump and providing documents, including some related to Ms. Yovanovitch, to the House Intelligence Committee as part of its impeachment inquiry.Federal prosecutors in Manhattan are investigating Mr. Giuliani’s pre-election activities in Ukraine. He has denied wrongdoing.The schemes that prosecutors are planning to outline during the upcoming trial seem more brash than sophisticated.The $325,000 donation to the super PAC, America First Action, was made using money that an indictment said Mr. Fruman and others obtained through a private loan, prosecutors have said. Court papers said that the donation was falsely listed in the name of Global Energy Producers, the company Mr. Parnas and Mr. Fruman were starting, because they were eager to “make it appear that GEP was a successful business.”Mr. Parnas is also accused of making a maximum contribution of $2,700 to the re-election campaign of Pete Sessions, a Republican congressman from Texas and a critic of Ms. Yovanovitch, using a credit card registered to an account belonging to Mr. Fruman and another person.And, according to an indictment, Mr. Parnas was part of a conspiracy to make political contributions by a foreign national. As part of that, the indictment said, a businessman — identified by prosecutors in a separate document as Mr. Muraviev — sent $1 million to a bank account controlled by Mr. Fruman “for purposes of making political donations and contributions.”Among candidates who prosecutors said Mr. Parnas promised to support was Adam Laxalt, who in 2018 was running for governor of Nevada and after the presidential election spoke at a news conference announcing a lawsuit by the Trump campaign seeking to overturn Mr. Biden’s victory in the state. (That suit was dismissed by a state court judge for lack of evidence.)Prosecutors said in a recent court filing that Mr. Laxalt became suspicious about the origins of a $10,000 donation to his campaign identified as being from Mr. Fruman, and sent a check for that amount to the U.S. Treasury “in order to avoid continued possession of the illegal donation without returning it to a potential wrongdoer.”In court filings and during a recent hearing, prosecutors and defense lawyers offered some indications of what arguments they might advance and what evidence they could introduce during the trial.Prosecutors wrote that they intended to offer out-of-court statements made by both defendants, as well as Mr. Correia, Mr. Fruman and Mr. Muraviev. Most of those, they added, “were made in electronic communications, such as emails, text messages, and chats using WhatsApp.”Likely witnesses, they wrote, included Deanna Van Rensburg, who served as Mr. Parnas’s personal assistant from about April 2018 until his arrest, and Mr. Laxalt, now vying for the Republican nomination for a U.S. Senate seat.Mr. Parnas’s lawyer, Joseph A. Bondy, suggested during the hearing, on Oct. 5, that he might portray his client as someone with a “relative lack of education” in the area of election law.And a lawyer for Mr. Kukushkin signaled that he planned to portray his client as a victim of Mr. Parnas rather than as his co-conspirator.The lawyer, Gerald B. Lefcourt, described Mr. Parnas in a recent court filing as the perpetrator of a “con” who, along with Mr. Fruman and Mr. Correia, used a “dog and pony show” to dupe Mr. Kukushkin and many others.“They portrayed themselves as well-connected, powerful political power brokers, who could speak directly to the president of the United States, his children, his inner circle,” Mr. Lefcourt wrote. “Of course, it was all a ruse, one big fraud or Ponzi scheme.” More