Feds Investigate Giuliani

“Oh! What a tangled web we weave,
When first we practice to deceive!”

– from the play “Marmion,” Canto VI Stanza 17, by Sir Walter Scott (1771-1832), Scottish author & novelist

Rudy Giuliani (RIGHT) at the James J. Fox cigar bar in London, with Lev Parnas (lower LEFT) and, Igor Fruman (speaking on the phone), and a third, unnamed associate. (Obtained by ProPublica)

Yesterday, Friday, 15 November 2019, the Wall Street Journal reported around noon Eastern Time, that Federal prosecutors in Manhattan were investigating whether Rudy Giuliani – a former Federal Prosecutor who is Trump’s personal lawyer – stood to profit personally from a Liquefied Natural Gas (LNG) venture in Ukraine, which has been linked to corrupt oligarchs, and other corrupt officials, some of whom may have been, or may be yet, associated with the Ukrainian government – including two Naturalized American Citizens, Lev Parnas, and Igor Fruman.

Lev Parnas was born in Ukraine to Jewish parents who emigrated with him to the United States when he was aged three, while Igor Fruman was born in Belarus to Jewish parents, and later moved to Detroit.

Federal authorities arrested the two men October 9, 2019 at Dulles International Airport outside of Washington, D.C. as they both sought to leave the United States with one-way flight tickets on Lufthansa Airlines flight to Frankfurt, and charged them with illegally contributing to Trump’s election campaign. Deeming them flight risks, a Federal Judge in Northern Virginia set bail at $1 million each, and the pair are still in custody.

Lev Parnas (left) and Igor Fruman are shown after their arrest on Oct. 9 at Dulles International Airport, outside Washington, D.C.

The Federal indictment said Parnas acted “at least in part, at the request of one or more Ukrainian government officials,” and though none were named, it was well known that U.S. Ambassador to Ukraine Marie Yovanovitch’s primary critic in the Ukrainian government was Yuriy Lutsenko, who at the time was the Ukraine’s Prosecutor General and well-known to use the law as a weapon for his own personal political fights.

Federal Prosecutors indicted two other men, David Correia and Andrey Kukushkin, along with Parnas and Fruman, and accused them of funneling money to state and federal candidates in exchange for potential influence, noting that the four men wanted to set up recreational marijuana businesses in Nevada and other states, and sought political help to obtain the necessary licenses.

NPR reported 23 October 2019 that, “a company called Global Energy Producers (GEP) gave $325,000 to America First Action, the superPAC supporting Trump.” GEP is a shell company created by Parnas and Fruman.

According to Trevor Potter, a Republican former Commissioner and Chairman of the Federal Election Commission (FEC), General Counsel to the now-late Arizona U.S. Senator John McCain in his 2000, and 2008 presidential campaigns, who is now an investigator and founder of Campaign Legal Center (CLC), a non-partisan, non-profit legal advocacy group which monitors money and political campaigns, CLC found that the campaign contribution came from GEP which appeared to be a shell company, and as he described, was “a blank slate.”

As Potter recalled, “The company hadn’t existed. It had been formed literally a couple weeks before the contribution. It had no website, no history of political activity, so you’re thinking this is most likely a company created to make this contribution. You have to disclose on the FEC reports the true source of the money, who the contributor actually is.”

Establishing a shell company to donate political contributions is an illegal act under Federal law.

As CLC further investigated, they found that GEP – through Parnas and Fruman – had donated to then-Representative Pete Sessions, a Republican who represented Texas’ 32nd Congressional District. Sessions was defeated by Colin Allred, his Democratic challenger in the November 2018 election.

In his official capacity, then-Representative Sessions, who was Chairman of the House Rules Committee, wrote a letter in 2018 to Secretary of State Mike Pompeo stating that U.S. Ambassador to Ukraine Marie Yovanovitch should be fired, and accused her of expressing “disdain” for the President and administration.

In July 2018, CLC notified the FEC of possible campaign finance violations by Parnas and Fruman.

Interestingly, in a totally separate, and seemingly unrelated turn of events, Dale W. Perry, the American owner of a large energy company doing business in Ukraine, first got wind of Parnas and Fruman after they’d met with one of his former business partners in March 2019, and described an unusual plan.

Perry characterized Parnas and Fruman’s scheme saying, “What was so troubling was, it was basically the presentation of the intent to take the gas sector back to where it was during the Yanukovych regime.”

Viktor Yanukovych is the former Ukrainian President, who, as Perry said, was “a heck of a lot more corrupt,” was friendly with Russian president Vladimir Putin, in office 2010-2014, was removed from office by the Ukrainian parliament February 2014, went into self-imposed exile in southern Russia that same month, and in January 2019 was tried and convicted in absentia of treason by Ukrainian court after it was discovered he had written a letter to Putin March 1, 2014 asking him to use Russian army and police forces to restore order in Ukraine, which in turn, led to the Russian invasion of Crimea. He has been in exile since 2014.

Petro Poroshenko, considered a Ukrainian oligarch, succeeded Yanukovych, who in turn was defeated May 2019 by Volodymyr Zelenskiy, who campaigned on an anti-corruption platform, and won with 73.22% of votes cast.

In May, as part of the celebration and acknowledgement of Zelenskiy’s election victory, Secretary of Energy Rick Perry traveled to Kiev, Ukraine to serve as the senior U.S. government representative at his inauguration. While there, in a private meeting with Zelenskiy, Perry pressed him to fire members of the Naftogaz advisory board. Those in attendance left with the impression that Perry wanted to replace the American representative, Amos Hochstein, a former Diplomat and Energy Representative who served in the Obama administration, with someone “reputable in Republican circles.”

Rick Perry, Secretary, U.S. Department of Energy – official portrait

During that same trip, a second meeting occurred at a Kyiv hotel, which included Ukrainian government officials and energy sector business individuals. At that meeting, Secretary Perry was explicitly clear that Trump wanted to