One-time Rudy Giuliani henchman Lev Parnas pleads guilty to wire fraud

Lev Parnas, a former henchman of Rudy Giuliani who assisted the former Trump lawyer in his efforts to shake down the Ukrainian government for political favors, has pleaded guilty to wire fraud.

ABC 7 New York reports that Parnas's guilty plea stems from his work at the startup company Fraud Guarantee, and prosecutors alleged that he duped investors by giving them false information about the company.

"At least seven victims invested a total of more than $2 million in Fraud Guarantee because Parnas and Correia misled them about the financial arrangements," writes ABC 7 New York. "The majority of investor funds were withdrawn as cash and were spent on personal expenditures such as Parnas' rent, prosecutors said."

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As part of a plan to lure investors, Parnas and his associates paid Rudy Giuliani $500,000 to serve as a pitchman for their company. Giuliani was never implicated in any wrongdoing related to Fraud Guarantee.

Parnas now faces at least five years in prison for the wire fraud conspiracy plea. He has also been convicted on several other counts related to Fraud Guarantee.