Late last night the internet erupted with laughter and disbelief when it was reported that one of the Rudy Giuliani associates arrested yesterday had been running a company called “Fraud Guarantee.” It seems everything involving Rudy these days is good for a laugh. But there are two key points in the Fraud Guarantee bombshell that spell out, in very serious fashion, just how screwed Giuliani is.
When the “two stooges” were arrested yesterday, the essential question was whether a money trail would emerge which tied Rudy Giuliani to their financial scheming. It turns out the answer is yes. The SDNY won’t have to go digging at random in the hope of finding that money trail, as the New York Times has already found it for them. Here’s the kicker, though. These two henchmen weren’t working for Rudy. He was apparently working for them.
Lev Parnas’ company Fraud Guarantee reportedly paid hundreds of thousands of dollars to Rudy Giuliani. This helps answer longstanding questions about how Rudy’s scheming in Ukraine was being funded. It also erases any argument that Rudy might be able to make in court that he was acting on American interests, because it turns out he was literally on the payroll of one of the criminals who was carrying out the Ukraine dirty work.
This also raises questions about whether Rudy Giuliani properly reported this foreign income, whether he tried to hide the money from his wife as their divorce plays out, and whether he registered as a foreign agent. At this point it’s impossible not to imagine that Rudy will be arrested. In fact it may just be a matter of the Feds giving the two stooges the opportunity to decide whether to flip on Rudy before they arrest him.
Bill Palmer is the publisher of the political news outlet Palmer Report