Another man is arrested in probe of Giuliani associates

Alex Wong  Getty Images

Alex Wong Getty Images

A long-time U.S. diplomat is set to appear in the Democratic-led U.S. House of Representatives' impeachment inquiry against President Donald Trump a day after his former adviser on Russian Federation reportedly testified to seeing "wrongdoing" in policy toward Ukraine.

A whistleblower complaint filed in August by an intelligence official has become the centre of the impeachment inquiry, which is investigating Giuliani and the Trump administration's efforts in Ukraine and whether Trump tried to leverage U.S. foreign policy in exchange for information that would personally benefit his reelection campaign.

Both Parnas and Fruman - U.S. citizens who were born in Ukraine and Belarus, respectively - have a history of business dealings with Giuliani.

The Journal's report expanded on reports last week that indicated federal prosecutors are examining whether the president's personal lawyer broke federal lobbying laws.

Those two associates, of course, are Lev Parnas and Igor Fruman, who were taken into federal custody last week, following their alleged effort to funnel illegal Russian campaign contributions, which went to officials whose help they sought in removing Marie Yovanovitch from her post as the US ambassador in Ukraine.

There also is no indication that Mr. Sessions is a target of the investigation.

Last week, ABC News reported the business relationship between Giuliani and the men charged in the alleged campaign finance scheme is a subject of the ongoing criminal investigation being conducted by federal authorities in NY, according to two sources familiar with the matter.

As for why prosecutors may be interested in Giuliani's bank records and business dealings in Ukraine, that's where the story gets a little tricky.

For reasons that aren't altogether clear, this is the same Fuks who paid the city contract for Giuliani's company. Giuliani claims that he provided technological consulting work and legal advice regarding regulatory issues.

Parnas and Furman, who had been helping Giuliani investigate Democratic presidential candidate Joe Biden, were arrested a week ago at Dulles International Airport outside of Washington, D.C., where they had one-way tickets on a flight out of the country, officials said.

Giuliani maintains the money was from a domestic source.

CNN and the New York Times, quoted sources with knowledge of Hill's testimony as saying she "saw wrongdoing related to the Ukraine policy and reported it". "Some of our contracts are two or three million dollars".

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