By Matthew Russell Lee, Patreon Order Podcast Song II
SDNY COURTHOUSE, April 11 - In the Lev Parnas and Andrey Kukushkin jury trial, the first witnesses testified on the afternoon of October 13, 2021. Inner City Press live tweeted it here and here. Vlog here.
They were found guilty, along with a partial mistrial. Then an additional guilty plea by Parnas and on June 29, his sentencing, see below.
On April 11, 2023 the US Attorney's Office informed Judge Oetken that "to date the entire Money Judgment against Defendant remains unpaid," and submitted an order to seize $200,000 deposited with Clerk of Court and future US Treasury payment to Parnas, with the exception of Social Security payments.
On August 2, 2022, a ruling about the so-called Russian Roots email was unsealed: "J. PAUL OETKEN, District Judge: This opinion addresses the remaining pretrial motion filed by Defendants, which relates to attorney-client privilege. Defendants argue that an email (the “Russian Roots Email”), quoted in several search warrant applications, is protected by the attorney-client privilege and that, as a result, the returns from the search warrants should be suppressed and the Superseding Indictment should be dismissed. The Government contends that the Russian Roots Email is not covered by the privilege, and that even if it is, the privilege was waived and the crime-fraud exception applies.
I. Background The Russian Roots Email was sent from Kukushkin to Correia on September 16, 2018, copying the personal email of John Sinadinos, an attorney for some of Kukushkin’s other businesses, and Alexander Mikhalev, a partner of Kukushkin in some of those other businesses. Kukushkin wrote:
Subject: Re: Operating agreement [IWOV-ACTIV.FID122585301 Thank you, David! Moscow is beyond beautiful in September whilst I am catching up with colleagues and investors. Stephen did make a good argument about personal liability protection under C Corp formation, which wasn’t necessarily the case in certain states, under LLC. I am just confirming my understanding, unless I missed some other purpose for it please advise. I believe what’s left was for Igor and Lev to establish who is going to be shareholder(s) of the NewCo and could we all use LLC’s as our proxy’s in it. I am just trying to establish core structure and how transparent should Andrey be exposed for the benefits of NewCo Transparency, his Russian roots and current political paranoia about it. Sincerely, AK Sent from my iPhone (USAO_00424240.) On the same day, Correia responded to this email, copying the same parties: Subject: Re: Operating agreement [IWOV-ACTIV.FID122585301 Andrey, Glad to hear Moscow is going great and that you were having a time to connect with colleagues. We did launch the entity, hopefully we are on the same page and wish to move forward with a C corp. Lev, Igor and I will most likely be giving the name of a separate LLC in which we will be partners, or individual entities for each of us..,.will have that decided by EOD tomorrow. Best to all and I Look forward to our call Tuesday. Regards, David Correia (USAO_00424249.)
Both emails were part of an email chain, the earlier parts of which included communications with attorneys at Greenspoon Marder LLP.1 The Greenspoon Marder attorneys were involved in incorporating and creating an operating agreement for Cannabis Management 1 The Court has reviewed the entirety of the email chain in camera. The Government’s filter team redacted the substance of the emails earlier in the chain so that the prosecution team has viewed only the header information associated with the earlier emails in the chain. Group, a business created by certain of the Defendants. The last paragraph of the Russian Roots Email was quoted in an October 9, 2019 indictment charging Defendants, as well as in several search warrant applications. The September 17, 2020 Superseding Indictment does not quote from the Russian Roots email. II. Attorney-Client Privilege A. Legal Standards The attorney-client privilege seeks to “encourage full and frank communications between attorneys and their clients and thereby promote broader public interests in the observance of law and administration of justice.”
The Court concludes that the Russian Roots Email is not protected by the attorney-client privilege. III. Conclusion For the foregoing reasons, Defendants’ motion to suppress evidence and to dismiss the indictment is denied." Full order on Inner City Press' DocumentCloud here
Does this mean a recent sealed order by Magistrate Judge Cott may later be unsealed? And what has been the result of a trial held and then ended before Judge Oetken, not yet docketed? Watch this site.
Docketed on June 22 was Parnas sentencing memo, asking for a time served sentence. While heavily redacted, the memo manages to quote or name-check Adam B. Schiff, Jerrold Nadler and Nancy Pelosi. On a guideline of 63 to 78 months, he wanted time served.
On June 27 the US Attorney's Office submitted a proposed restitution order for $2.3 million, and a victim's letter from Ted Vougiouklakis: "Both Lev Parnas and David Correia verbally convinced me to invest $300,000 in Fraud Guarantee... They were jet setting on private planes, staying in expensive hotels and enjoying expensive meals with my money... Please take what I have written into consideration when you are making your decision regarding an appropriate sentence in this case."
At the June 29 sentencing, three victims spoke; Judge Oetken allowed them, and sentenced Parnas to 20 months, to begin on August 15.
On July 29, Judge Oetken granted a request to extended Parnas' surrender date to September 1, but denied his request to remove GPS "so he can swim and engage in other water sports with his children prior to surrendering."
In the proceeding it emerged that co-defendant Igor Fruman, though sentenced to a year and a day, got out much faster and Judge Oetken asked for details (below). Inner City Press live tweeted here and below, then out in Foley Square asked Parnas about Ukraine, video here.
On July 6, the US Attorney's Office wrote to Judge Oekten that while Fruman "reported to the BOP for his 366 day sentence on March 13, 2022, he was transferred to crisis furlough on May 3, 2022 and then transferred to home incarceration beginning May 25, 2022."
So: less than two months. There are sentencing disparities - and then there are the less visible sentencing SERVICE disparities. We aim to have more on this.
From Parnas' sentencing: OK - now sentencing of Lev Parnas. His lawyer Joseph Bondy is quoting Rep Adam Schiff, and saying Parnas came pay his victim since there is interest in buying his story.
Parnas' lawyer Bondy: My client has started working for DoorDash at night. He's not on private jet, much less with Mr. Giuliani... He's started going to Gamblers' Anonymous.
Parnas' lawyer: Maybe if in the first impeachment they'd taken witnesses, we wouldn't be hearing now about guns in the trees... My client has six children.
Parnas' lawyer: Jails are a crucible for infections. We are asking for time served. People don't go to trial anymore, given the trial penalty. Trial lawyers are like dinosaurs. But Lev is not beyond redemption. He was under home confinement. He tried to cooperate
Parnas' lawyer: The co-defendants in this case all got a year and a day. Mr. Fruman was released after about three months. He's sitting at home under some type of a furlough. He went to jail for less than three months. You must consider disparities.
Parnas' lawyer: Mr. Fruman didn't even attempt to comply with his Congressional subpoena. Only Lev Parnas showed up and did his duty. It is a happy day today. I have great faith in this court. You allowed materials to be brought to Congress.
Judge Oetken: I'll hear from the government. Assistant US Attorney Rebekah Donaleski: Parnas and Correia lied to get investments in Fraud Guarantee.
AUSA: Mr Parnas got $120,000 from a documentary filmmaker. That's not cooperation. Judge Oetken: Why did Mr Fruman serve only three months, when I sentenced him to a year and a day? AUSA Donaleski: I'll ask the Bureau of Prisons.
Parnas' lawyer Joseph Bondy: There were disparities in conditions of confinement, there are many people not even being charged here. I'm not going to name them. Talking about trying to remove an Ambassador, that's where this case started. Lev was disparaged on SNL
Judge Oetken: Any victims? Voice: I'm Michael Pus (phonetic), I was robbed by him - [Attempt to stop him]
Judge Oetken: I'm going to let him speak. Victim: When I first met Lev Parnas he was a con article. Bondy: I got no notice!
Now the first victim's wife is speaking: Lev Parnas destroyed my life! (sobs) My husband has been scorned by his family. They flew us to the Grammy Awards - then I was told it was a lie! I was humiliated!
Mrs "Pues" - In the Eastern District, Lev Parnas flipped us the bird in the parking lot. He deserves no mercy! Now the expected victim: He made come down to his son's bris... He introduced me to Rudy Giuliani, he was an idol of mine. Lev Parnas ran out of money
Official Victim: They he ran out to do marijuana business in Vegas... I don't like to blame Giuliani. I prayed at the Wailing Wall with him - I am a contributor to Young Israel. I am a Christian. [This is Charles Gucciardo]
Charles Gucciardo: The agents came to my office in Mineola. My heart dropped. My name Gucciardo is now attached to the con man Lev Parnas. He wanted to put himself in deals, he put himself in the middle. That's how he got involved with Giuliani and UkraineCharles Gucciardo: I may not be the best lawyer, but I work hard. This has injured me. Judges have nothing bad to say about me. I don't know these other victims but my heart goes out to them. Lev will throw anyone under the bus to save his rear end
Charles Gucciardo: I want to tell you about David Correia. You did the right thing, judge. Correia looked up to Parnas. He got sucked into this thing. He thought he was going to make millions and millions of dollars with Lev. I have text messages with him.
Charles Gucciardo: You should see the letter of agreement they sent me for my money as a loan to be converted into stock. He said it would be worth $20 million. Is that right, Lev? [Behind Lev in the gallery his wife is bouncing their baby up and down]
Charles Gucciardo: Rudy was the lawyer of the president. If this was a fraud, Rudy could take him down. I don't care what your politics are, he was the lawyer for the President. My money went into Rudy's account. No further indictments? No one looking at Rudy?
Charles Gucciardo: I still respect Rudy for what he did about crime. I believe he'll give me my money back. If it doesn't happen that way, it'll have to happen another way... I get up in the morning & go to work every day. I am 65 years old. I pray for you, judge
Charles Gucciardo: When I read Lev's plea minutes, it made me sick. So I came today. My prayers go out to him, to make him a better man, not this criminal. His wife's a lovely lady. Thank you for your time. Judge Oetken: Thank you. Mr. Bondy?
Bondy: Look in the docket, Number 36, it's about Mr. Pues. Judge Oetken: Mr. Parnas, do you wish to speak?
Lev Parnas: Thank you for giving me the opportunity to go to trial. I have not been a good person my whole life. [Voice cracking]. I was materialistic. I admit it. I want to apologize to Mr and Mrs Pues. I'm sorry
Lev Parnas: I want to apologize to all my victims. Lev Parnas: To Charles Gucciardo, I am sorry. I have been going to counseling. I'm in Gamblers' Anonymous. I used to think you have to fix it yourself. Through my sponsor Paul I have been able to open up. (Sobbing)
Lev Parnas: I'm going to religious counsel. I meet my rabbi once or twice a week. I am sorry. Judge Oetken: Thank you Mr. Parnas. I'm not considering the Pues' in the sentencing decision today. I did allow them to speak and I am glad they are here.
Judge Oetken: Mr. Parnas deserves some credit for responding to a Congressional subpoena. But it was not cooperation for purposes of the statute. I've considered his health. I agree a below guideline sentence is warranted. But incarceration is needed.
Judge Oetken: I sentenced the other three to one year of imprisonment. But none had as significant a role as Mr. Parnas. He needs to get a more serious sentence. Mr. Parnas led the Fraud Guarantee scheme. It lasted for years. Judge Oetken: I have decided that a sentence of 20 months for Mr. Parnas is appropriate.
Judge Oekten: Also three years of supervised release. Bondy: He'd like Otisville, for Kosher and religious programming. Judge Oetken: I'll make that recommendation. We are adjourned
On May 13 Kukushkin's lawyers at Clifford Chance filed a letter with Judge J. Paul Oetken asking for his surrender date to be pushed from June 2 to July 1 to make a motion for bail pending appeal to the Second Circuit.
On May 16 the US Attorney's Office opposed this, saying that no substantial legal issue has been identified and that the "certainty of punishment" is important.
On May 17 Clifford Chance replied, that July 1 would still be certain, but that Kukushkin could ensure his son is enrolled in the proper school etc.
On May 18, Judge Oetken granted the extension to July 1: "MEMO ENDORSEMENT as to Andrey Kukushkin (4) granting [328] LETTER MOTION addressed to Judge J. Paul Oetken from Celeste Koeleveld dated May 13, 2022 re: Extension of Voluntary Surrender Date. ENDORSEMENT: Granted. Mr. Kukushkin's surrender date is hereby extended to July 1, 2022. (Signed by Judge J. Paul Oetken on 5/18/2022)."
On March 10, Parnas' lawyer filed this: "LETTER MOTION addressed to Judge J. Paul Oetken from Joseph A. Bondy dated March 10, 2022 re: Scheduling a Change of Plea Hearing for Count Seven of the First Superseding Indictment, and to Appear via Video or Teleconference . Document filed by Lev Parnas. (Bondy, Joseph)."
On March 16, Judge J. Paul Oetken set Parnas' guilty plea for March 25: "MEMO ENDORSED granting [316] LETTER MOTION Exclusion of Time as to Lev Parnas (1)... ENDORSEMENT: Granted. A change-of-plea hearing is hereby scheduled for March 25, 2022."
On March 25, Parnas did in fact plead guilty. Inner City Press live tweeted it, here:
OK - now Lev Parnas set to plead guilty to Fraud Guaranty scheme.
Judge Oetken: What do you take? Parnas: Pain and anxiety medication. Judge: You feel OK? Parnas: Yes. Judge: You know you have the right to a speedy trial on this charge?
Parnas: Yes. [He was convicted, at trial, on other counts]
Judge Oetken: So there's no plea agreement you. You're just pleading to the indictment? A: Yes. AUSA: The defendant was convicted of six other counts. We take no position on the grouping or how they interact.
Judge Oetken: Tell me what you did. Parnas: I agreed with another person to give false information to others about Fraud Guaranty. I used wires. I am sorry. Judge: Thank you. Mr. Roos, is that adequate?
AUSA Roos: I proffer that the representations were material.
Judge Oetken: June 29, 11 am for sentencing. I expect in Courtroom 706 here in 40 Foley Square. Adjourned.
On March 14 amid Ukraine war (that the UN said to not call a war), this: "the unsealing of an indictment against ANDREY MURAVIEV, a/k/a “Andrey Muravyov,” a Russian citizen, charging him with making illegal political contributions as a foreign national, and conspiring to make illegal political contributions as a foreign national in the names of straw donors. Muraviev is charged with conspiring with Lev Parnas, Andrey Kukushkin, and Igor Fruman, and others, who were convicted at trial or have pleaded guilty to these crimes." Inner City Press has uploaded the unsealed indictment to its DocumentCloud here.
In advance of Kukushkin's sentencing on March 15, the US Attorney's Office has argued he should be 51 to 63 months, saying Kukushkin exhibits a "glaring lack of any acceptance of responsibility for the harms he causes to the American public."
Kukushkin's lawyer argued that the US' unsealing of the Muraviev indictment was because he had effectively argued for time served. On March 15, Kukushkin was sentenced to 12 months and 1 day with 3 years of supervised release, and a fine of $10,000. He is to surrender on June 2, 2022.
On January 21 Igor Fruman, who pled guilty before trial, was up for sentencing. Inner City Press live tweeted it here (podcast here) He got a year and day, below.
On March 2, this: "I represent Igor Fruman in the above-referenced case, and I write to respectfully request a 7-day adjournment of Mr. Fruman’s surrender date. Mr. Fruman was sentenced on January 21, 2022 and ordered to surrender on March 7, 2022. Mr. Fruman has received confirmation of his placement at the Otisville Correctional Facility and was prepared to surrender on or before March 7, 2022. As Your Honor may recall, the grandparents of Mr. Fruman’s three children live in Ukraine, and are currently attempting to safely leave the country because of the Russian invasion. Mr. Fruman is assisting them in that regard and has been having multiple communications with them and others over the past several days. We do not anticipate this process will take a long time, but it may not be completed by March 7, 2022. Therefore, we respectfully request that Your Honor allow Mr. Fruman to surrender no later than March 14, 2022 so that he is able to continue to assist in the process of getting his children’s grandparents to safety. I have discussed this request with the government, and they do not object to the proposed 7-day adjournment of Mr. Fruman’s surrender date."
The application was granted, not surprisingly, the next day: "MEMO ENDORSEMENT as to Igor Fruman (2) granting [305] LETTER MOTION addressed to Judge J. Paul Oetken from Todd Blanche dated March 2, 2022 re: 7-day Adjournment of Mr. Igor Fruman's Surrender Date. ENDORSEMENT: Granted. Mr. Fruman's surrender date is adjourned by 7 days. He shall surrender to his designated BOP facility on March 14, 2022, by 2:00 p.m. So ordered. (Signed by Judge J. Paul Oetken on 3/3/2022)."
From January 21 sentencing of Fruman, who pled guilty to "soliciting $1 million in foreign contributions for US candidates." US wants 37 to 46 months. Judge Oetken: I have reviewed Mr. Fruman's net worth statement that you submitted. The parties agreed to a guideline calculation in the plea agreement: 37-46. Probations recommends 14 months. Let's hear from defense counsel
Todd Blanche: The government says that it was the instant offense that led Mr. Fruman and his wife to separate. They did separate in 2017. They're trying to figure things out based on the arrest in 2019. The US downplays the financial damage to Mr. Fruman
Blanche: The Land Rover belongs to his wife. His son drives the Porsche, I've seen it many times, it is not a luxury vehicle. The Cadillac too. He's not in the lap of luxury. Sure he has a nice condo, yes, nice views.
Blanche: But nice condo or not, Mr. Fruman has been on home detention with GPS for 28 months. Does he have business in Ukraine? The brochure they show is from 2008. The financial crisis hit The Ukraine very hard. He has a dilapidated apartment there.
Blanche: The $1 million dollars, it was a loan to Mr. Fruman, not to Mr. Parnas or Kukushkin. Mr. Fruman will have to pay it back to the foreign national. Every time you Google Mr. Fruman it says he was going to flee. He has to live with that. Blanche: The US Attorney initially said the million dollars came from a Ukraine officials. But it didn't. Mr. Correa, for his participation in Fraud Guarantee -- Judge Oetken: That was different. Blanche: He was part of this indictment.
Blanche: Mr. Fruman was in solitary confinement for eight days. That's punishment enough.
Judge Oetken: Mr. Scotten?
AUSA Hagan Scotten: The victim isn't here, but it is - the public is watching this case.
Fruman: I will never appear before you or in another courtroom again.
Judge Oetken: I am ready to sentence under 18 USC 3553(a). This wasn't the Manchurian candidate. It was about a cannabis business. They were clueless.
Judge Oetken: The guideline is 37-46 months; probation suggests 14 months. I agree that a variance is warranted - significant notoriety, some of it unfair. I've decided that 12 months and one day is appropriate. I add the day to permit Good Time credit of 54 days
Judge Oetken: Self-surrender in March. Blanche: Otisville, please. Judge Oekten: I'll make that recommendation. Adjourned.
On October 22, after mere hours of deliberation, the jury found both men guilty on all counts. Inner City Press live tweeted it here and below.
On December 9 Parnas moved for acquittal and a new trial, arguing there was insufficient evidence of a conspiracy to make donations by a foreign national, etc. Inner City Press will report the result(s).
In December Kukushkin sought a seven week delay in sentencing and the prosecutors quickly opposed the request, citing the deterrent effect of timely punishment.
On December 21, this: "ORDER granting in part [281] LETTER MOTION to adjourn sentencing: DEFENDANT KUKUSHKIN'S MOTION TO ADJOURN SENTENCING IS GRANTED IN PART. SENTENCING IS HEREBY ADJOURNED TO MARCH 15, 2022, AT 11:00 A.M. DEFENDANT'S SENTENCING SUBMISSION IS DUE MARCH 1, 2022. THE GOVERNMENT'S SENTENCING SUBMISSION IS DUE MARCH 8, 2022. SO ORDERED. (Oetken, J.)"
Docketed on October 25 was co-defendant David Correia's renewed push for compassionate release. In a ten page handwritten letter Correia, referring to himself in the third person, cited remorse and medical conditions.
On October 27, it was denied: "Correia's motion for compassionate release pursuant to 18 U.S.C. § 3582(c)(1) is denied. The Government is directed to reach out to FCI Butner to inquire about whether Correia has seen a gastroenterologist and if not, what steps the BOP is taking to ensure adequate care for Correia. The Government is also directed to report back to the Court within two weeks. The Clerk of Court is directed to close the motion at Docket Number 213. The Clerk of Court is directed to mail a copy of this order to Correia at the address below. SO ORDERED. (Signed by Judge J. Paul Oetken on 10/27/2021)." Inner City Press is on the case.
From October 22: Now in US v. Parnas and Kukushkin the jury is coming back, at 2:57 pm. Judge Oetken: Good afternoon. For the record. I've marked Court Exhibit 5 as the verdict 5.
Judge Oekten: I received a note that Juror 11 is the fore person. Then a note at 2:40 pm that the jury has reached a verdict, signed by Juror 11. Bring out the jury.
Judge Oetken: Members of the jury, I've received your notes. Mr. Foreperson have you reached a unanimous verdict? Juror 11: We have, Your Honor. Judge Oetken: Let me review it. (Reads, silently).
Mr. Hampton will now take the verdict. Hampton: Count 1? Juror: Guilty (both) Clerk: Count Two? Juror 11: Guilty. Clerk: Counts 3 and 4? Juror 11: Guilty. Clerk: Count 5 false statements? Juror 11: Guilty. Clerk: Count 6? Juror 11: guilty
On the morning of October 15, before the jury came in, the defense successfully argued to have the jury instructed that the Times Square "street fight / racist" video shown the day before is not relevant and is excluded. Inner City Press live tweeted it here, podcast here.
After that, Adam Laxalt and exhibits fights, which Inner City Press live tweeted here and below. New song here.
On October 18 to 1 pm, there was more cross examiation of Van Rensburg, and the beginning on Caroline Booth. Inner City Press live tweeted here (podcast here) (vlog here)
During the afternoon of October 18, Bondy cross examined Rep Pete Sessions' (now Liz Cheney's) staffer Caroline Boothe, mortgage broker Ross and lawyer / notary Preminger. The question of Parnas testifying arose. Inner City Press live tweeted it here.
On the morning of October 19, an argument out of hearing of the jury about what Parnas could be cross examined about, if he testified. Inner City Press live tweeted it here (and podcast here)
On the afternoon of October 19, Ahearn of America First Action was put on the stand by the defense, with whether Parnas will follow him to the stand still left open. Inner City Press live tweeted here and below.
On October 20 - drum roll - the time for Parnas to decide to testify or not came. And... he did not. Inner City Press live tweeted it here: (and podcast here)
And on October 21, the summations or closing arguments; Inner City Press live tweeted here and here:
now closing arguments in US v. Parnas & Kukushkin Assistant US Attorney Hagen "Sidearm" Scotten: Here is what Ms. Van Rensburg did - exactly what Parnas told her to do. Here are the phone records. Special Agent Thomas found this form in Mr. Parnas' home, for joining Trump's campaign finance committee
AUSA Scotten: Joe Ahearn testified that Parnas knew the rule against foreign nationals contributing. As to Kukushkin, maybe he wasn't interested in the news, but he kept up with what was important to him: cannabis and illegal campaign contributions
AUSA Scotten: Here is Muraviev, mooning the Statue of Liberty. This is who Kukushkin was working with. Kukushkin must have known he was a bad man.
AUSA Scotten concludes with, You'll return the only verdicts supported by the evidence, guilty.
On October 11 Kukushkin asked to exclude a slew of Government Exhibits, full 8-page letter on Patreon here.
On October 5 Judge Oetken held the final pre-trial conference in advance of October 12 jury selection. Inner City Press live tweeted it here and below (podcast here)
Late on October 7 the US Attorney's Office has written to Judge Oetken seeking rulings in advance to admit exhibits including "The Inaugural Committee Articles, the FEC Complaint Article, the Time cover, and the Russian Roots Emails." Full letter on Patreon here. And now, song here.
On September 10, Igor "The Glue" Fruman pleaded guilty. Inner City Press live tweeted it here (with vlog; podcast here)
The case is US v. Parnas, et al., 19-cr-00725 (Oetken).
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