Prosecutors subpoena Trump fundraisers as part of Giuliani investigation

Federal prosecutors in New York have subpoenaed several individuals active in President Donald Trump’s fundraising machinery as part of their investigation into the associates of Rudy Giuliani, the President’s personal attorney, according to people familiar with the investigation.

Prosecutors sent subpoenas in recent weeks to Ballard Partners, a lobbying firm run by Brian Ballard, a top Trump fundraiser, and FBI agents have knocked on the doors of others involved with Republican campaigns, the sources said.

One of the subpoenas asked for communications and documents relating to Lev Parnas and Igor Fruman — the two Giuliani associates arrested last month on campaign finance charges — along with a fundraiser at America First Action, a super PAC supporting Trump, and Giuliani himself.

Parnas and Fruman have pleaded not guilty. Giuliani has not been accused of any wrongdoing.

FBI agents questioned some individuals about how they knew Parnas and Fruman, if they knew how the men gained a foothold into fundraising dinners, and how they connected with Giuliani, a person familiar with the matter said.

The round of subpoenas and interviews suggests prosecutors are digging more deeply into the financial relationships between the two Florida men, who appeared to rise out of nowhere to become fixtures at Trump fundraisers and fixers for Giuliani’s efforts in Ukraine.

Ballard did not respond to requests for comment. An executive at the Ballard firm declined to comment.

One of the subpoenas was sent to Paul Okoloko, an executive with a Nigerian fertilizer company who lives in Florida, one source said. Parnas pitched Okoloko to invest in Fraud Guarantee, the same company that ultimately received a $500,000 investment from a plaintiffs lawyer that was paid to Giuliani. A spokesman for Okoloko did not have an immediate comment.

Another subpoena, according to the source, was sent to Meredith O’Rourke, a prominent Florida GOP fundraiser who worked with the Trump Victory Fund. O’Rourke did not respond to a request for comment.

Ballard Partners paid Parnas $45,000 in 2018. A person familiar with the transaction previously told CNN it was because Parnas had made client referrals. The person said no payments have been made in 2019.

Ballard represented the Republic of Turkey in 2017 and 2018, according to foreign lobbying filings made with the US Department of Justice.

Kelly Sadler, a spokeswoman for America First Action, told The New York Times, which first reported the subpoenas, that the group contacted the Southern District of New York last month “and offered to voluntarily cooperate.” She added that it had not been subpoenaed.

“America First Action strictly follows the law and, as this is an open matter, we have no further comment,” Sadler said.

A spokesman for the US attorney’s office in Manhattan declined to comment.

Exclusive: After private White House meeting, Giuliani associate Lev Parnas said he was on a ‘secret mission’ for Trump, sources say

Among the many guests who had their pictures taken with President Donald Trump at the White House’s annual Hanukkah party last year were two Soviet-born businessmen from Florida, Lev  Parnas and Igor  Fruman.

In the picture, which Parnas posted on social media, he and Fruman are seen smiling alongside Trump, Vice President Mike Pence and Rudy Giuliani, the President’s personal lawyer.

At one point during the party that night, Parnas and Fruman slipped out of a large reception room packed with hundreds of Trump donors to have a private meeting with the President and Giuliani, according to two acquaintances in whom Parnas confided right after the meeting.

Word of the encounter in the White House last December, which has not been previously reported, is further indication that Trump knew Parnas and Fruman, despite Trump publicly stating that he did not on the day after the two men were arrested at Dulles International Airport last month.

Eventually, according to what Parnas told his confidants, the topic turned to Ukraine that night. According to those two confidants, Parnas said that “the big guy,” as he sometimes referred to the President in conversation, talked about tasking him and Fruman with what Parnas described as “a secret mission” to pressure the Ukrainian government to investigate Joe Biden and his son Hunter.

“James Bond mission”

In the days immediately following the meeting, Parnas insinuated to the two people he confided in that he clearly believed he’d been given a special assignment by the President; like some sort of “James Bond mission,” according to one of the people.

To Parnas, the chain of command was clear: Giuliani would issue the President’s directives while Parnas, who speaks fluent Russian, would be an on-the-ground investigator alongside Fruman, who has numerous business contacts in Ukraine.

“Parnas viewed the assignment as a great crusade,” says one of the people in whom Parnas confided. “He believed he was doing the right thing for Trump.”

The White House did not respond to repeated requests for comment to a series of questions regarding the meeting and Trump’s relationship with Parnas and Fruman.

Giuliani, through his lawyer, Robert Costello, denies that any private meeting took place that night at the White House, saying it was a mere handshake and photo opportunity. Costello also rejects Parnas’ claims of being put on a “James Bond” style mission, saying that Parnas is “no Sean Connery,” and that he suffers from “delusions of grandeur.”

Joseph A. Bondy, a lawyer for Parnas, told CNN, “Mr. Parnas at all times believed that he was acting only on behalf of the President, as directed by his personal attorney, Rudy Giuliani, and never on behalf of any Ukrainian officials.”

A lawyer for Fruman declined to comment for this article.

In the past, Giuliani has been circumspect about how he became associated with Parnas and Fruman. In previous conversations with CNN, Giuliani has refused to identify his contact, saying simply that a “well-known investigator” connected him with Parnas.

Ken McCallion, a former federal prosecutor with numerous high-level clients in Ukraine, including former and current government officials, told CNN that he’s heard a similar story about the Hanukkah party encounter. Parnas told some of McCallion’s clients and contacts in Ukraine about the encounter. “Parnas told everyone in Ukraine about the White House meeting. He was adamant he was ‘their guy’ — that they chose him to be their ambassador in Ukraine,” McCallion said.

And in February this year, according to a report in the Wall Street Journal, Parnas and Fruman met with the Ukrainian President Petro Poroshenko and then Prosecutor General Yuriy Lutsenko. During that meeting, they extended Poroshenko an invitation for a State dinner at the White House, if he would commit to publicly opening investigations in Ukraine.

The December meeting at the White House is not the first report of Parnas and the President discussing Ukraine. The Washington Post has reported that in April 2018 at a small fundraising dinner in a suite at the Trump International Hotel in Washington, Parnas told Trump that the US ambassador to Ukraine, Marie Yovanovitch, was unfriendly to him and his interests. Trump, according to the Post report, which cited people familiar with Parnas’ account of the event, suggested that Yovanovitch should be fired.

A year later in May 2019, Yovanovitch was recalled from her post.

Another close encounter

A separate encounter — also not previously disclosed — between Parnas and the President could provide further evidence that Parnas and Trump knew each other. In August 2018, months before the White House Hanukkah party, Trump traveled to upstate New York to attend a fundraiser for then- Republican congresswoman Claudia Tenney.

Among the handful of wealthy donors in attendance was Parnas. Photos viewed by CNN provided by two of the attendees feature Parnas mingling with people and having his picture taken alongside Trump. Both attendees said they got the impression that Trump and Parnas knew each other. During a Q-and-A session, Trump called Parnas by his first name, though they did have nameplates in front of them.

One of the sources said Parnas seemed quite proud of his interaction with Trump.

These meetings add further understanding of the extent to which Parnas and Fruman, aided by Giuliani, entered into the President’s inner-circle. CNN has recently reported that since 2014 there are eight documented times when Parnas and the President were with each other, including taking pictures together at campaign events and attending high-dollar fundraisers.

Parnas, a prolific user of social media, tended to post those encounters with Trump. But the photo of Trump and Parnas together at the White House in December is the last encounter that Parnas posted of himself with the President.

The two sources who Parnas confided in about the Hanukkah meeting at the White House tell CNN that they were often with Parnas over the past eighteen months, and that he “worshipped” the President.

Parnas disenchanted with Trump

However he felt back then, those two sources say Parnas now feels quite differently about Trump. The day after Parnas and Fruman were arrested on October 9 and charged with criminal campaign finance violations, Trump publicly denied ever knowing them, a move that was enormously upsetting to Parnas, according to three sources close to him.

“I don’t know those gentlemen,” Trump told reporters from the South Lawn of the White House on October 10. “Maybe they were clients of Rudy. You’d have to ask Rudy, I just don’t know.”

In the weeks since his arrest, Parnas has become disenchanted with Trump, these sources say. He’s even signaled that he’s willing to cooperate with the Congressional impeachment inquiry. Parnas’ lawyer Bondy said his client would comply with a Congressional subpoena for documents and testimony as part of the impeachment inquiry in a manner that would allow him to protect his Fifth Amendment rights against self-incrimination.

Prosecutors allege Parnas and Fruman illegally funded Republican politicians and campaigns with money from foreign nationals. Prosecutors also say the pair funneled $325,000 into Trump’s flagship super PAC, America First Action from an unknown source.

Both Parnas and Fruman have pleaded not guilty and are currently out on bail and on house arrest in Florida awaiting trial. Both men also have a history of being accused of wrongdoing in civil court filings, though they were never criminally charged. One allegation against Parnas from 2008 involves a man who says he was threatened by Parnas after the man accused him of squatting in his Sunny Isles Beach condo. Parnas denied making the threat and told police he’d been renting the condo without a lease based on a verbal agreement with the man.

Fruman’s estranged wife, Yelyzaveta Naumova, accused him during their divorce proceedings of beating her and possessing a large amount of cocaine and other drugs, which he allegedly wrapped and passed out as party favors. Fruman denied the allegations

Parnas’ relationship with Giuliani and Fruman has also been strained, Parnas’ two confidants tell CNN. That’s a far cry from the days when the trio frequently met at the Trump Hotel and chartered a flight together.

Last December, the day before the Hannukah meeting at the White House, Giuliani brought Parnas as his guest to the funeral of former president George H.W. Bush.

Now, Giuliani and Parnas snipe at each other through their lawyers.

Unlike Fruman, Parnas is no longer represented by one of the President’s former lawyers, John Dowd. “Igor has much more money than Parnas and can afford a strong defense team,” says one of their confidants, trying to explain the split.

Meanwhile Parnas is trapped without his phones (in the possession of the government) in his house in Boca Raton, Florida. His former friends don’t reach out, not wanting to get involved in the multiple investigations that plague him.

“In a strange way I feel sorry for Lev, for the mess he is now in” says one of his confidantes. “He never thought he did anything wrong; he was working for a President he really believed in. He was a hustler but also a nice man who gave people nice gifts. I would think all this is deeply upsetting for him.”

‘I’m the best-paid interpreter in the world’: Indicted Giuliani associate Lev Parnas touted windfall from Ukrainian oligarch

Earlier this year, Lev Parnas, the indicted associate of Rudy Giuliani, received a sudden windfall of money from a prominent Ukrainian oligarch who is fighting extradition to the United States and is suspected of having ties to the Russian mob, according to four sources who spoke with Parnas.

This summer, Parnas told potential business associates that his company began receiving payments from the oligarch, Dmytro Firtash, who is living in Austria while fighting bribery charges in the US, the sources told CNN.

Parnas also told these people he met with Firtash several times over the summer while in Vienna. In June, according to one of these sources, Parnas vouched to Firtash for two well-known Washington lawyers who later brought up Firtash’s plight in a face-to-face meeting with Attorney General William Barr.

These new details appear to reveal a much more substantial relationship than previously known between Parnas and Firtash, and how Firtash’s years-long extradition battle suddenly collided with Giuliani’s push to dig up dirt on President Donald Trump’s political opponents.

They could also raise the stakes for Giuliani, whose financial ties are being examined by federal investigators. A company owned by Parnas paid Giuliani $500,000 for consulting in the fall of 2018. Giuliani maintains that the money did not originate overseas.

CNN previously reported that a counterintelligence probe of Giuliani is also underway. Giuliani has maintained he’s acted appropriately in the interests of his client, President Donald Trump.

Bodyguards and private jets

Parnas has emerged as a pivotal figure in the Trump-Ukraine scandal, which triggered impeachment proceedings against the President by House Democrats.

Giuliani, with help from Parnas and his business partner Igor Fruman, led a shadow foreign policy campaign with the goal of securing Ukrainian investigations into former Vice President Joe Biden and his son Hunter Biden, who served on the board of a Ukrainian natural gas company.

Giuliani also advocated for the removal of the former US ambassador to Ukraine, Marie Yovanovitch, who was recalled from her post in May.

In private conversations with would-be business associates before his arrest this month, Parnas boasted that his newfound luxurious lifestyle was bankrolled by Firtash, two sources told CNN. Beginning in mid-August, this included around-the-clock bodyguards, two luxury SUVs for his entourage, and at least six private charter flights in the past several months, according to the sources as well as documents exclusively obtained by CNN.

Giuliani was on at least one of those flights, according to the documents.

Parnas now has private security guards outside of his home in Florida, according to a source familiar with the matter.

Firtash’s lawyers have downplayed the relationship between their client and Parnas. In statements, they describe Parnas as merely an interpreter hired to communicate with Firtash, who does not speak English.

“Mr. Firtash met Mr. Parnas for the first time in June 2019. Mr. Firtash had no business relationship with Mr. Parnas or Mr. Fruman,” according to a statement from the law firm of diGenova & Toensing, which represents Firtash. “Mr. Parnas was retained as a translator by the law firm of diGenova & Toensing. No money has been paid to Mr. Parnas by Mr. Firtash beyond his work as a translator for the law firm.”

But two sources who spoke with Parnas tell CNN that he talked about how he was cultivating Firtash for his own business interests. “I’m the best-paid interpreter in the world,” Parnas joked to the sources who spoke to CNN on the condition of anonymity.

Firtash’s legal team is still fighting his 2013 indictment on bribery and racketeering charges in Chicago. A spokesperson for Firtash’s company, Group DF, declined to comment when reached by CNN.

Firtash made his fortune selling Russian gas to the Ukrainian government, and the Justice Department previously described him as an “upper-echelon” associate linked to Russian organized crime.

Firtash denies any ties to organized crime and maintains his innocence.

Parnas and Fruman, along with two of their business associates, are accused of violating campaign finance laws by funneling money from foreign donors into US political campaigns, including Trump’s flagship super PAC. All four men pleaded not guilty. Lawyers for Parnas and Fruman declined to comment.

Landing in Firtash’s orbit

This summer Firtash shook up his legal team, which had been led by Lanny Davis, the well-known Washington lawyer who was special counsel for President Bill Clinton, and represented Trump’s former personal attorney Michael Cohen.

Parnas played a pivotal role in Firtash’s decision to replace Davis with Joseph diGenova and Victoria Toensing, according to a source with direct knowledge of the situation.

Parnas vouched for them directly to Firtash at a meeting in Vienna in June, specifically touting their personal ties to Giuliani, a source close to the lawyers told CNN.

The husband and wife legal duo are well-known Republicans, frequent defenders of Trump on cable news and nearly joined Trump’s legal team last year. diGenova says he’s known Barr for 30 years— connections that could prove valuable in Firtash’s ongoing extradition fight.

Firtash was arrested in 2014 and the Austrian Supreme Court finally approved his extradition in June, though some legal obstacles still remain while he seeks to overturn the ruling.

A source with knowledge of the meeting told CNN that Parnas was the middleman who, a month after the Vienna meeting, formally met with Firtash’s legal team as well as diGenova and Toensing back in the US.

The July meeting took place at the Trump International Hotel in Washington. Present were Parnas, Fruman, diGenova, Toensing and two other Firtash representatives, a source with knowledge told CNN. Also in attendance, the source said, was David Correia, one of Parnas’ business partners who was also indicted in the campaign finance conspiracy.

At some point shortly before that meeting, the deal was sealed. Toensing and diGenova joined Firtash’s legal team and, they later met personally with Barr and other Justice Department officials, where they asked for the criminal case against Firtash to be dropped. The Washington Post was first to report the meeting, and that Barr declined to get involved.

A Justice Department official confirmed to CNN that the meeting occurred, and that diGenova and Toensing’s request was rejected. A spokesman for diGenova and Toensing declined to comment.

Meanwhile, Parnas was reaping the benefits of his new connection to Firtash.

Flights up and down the East Coast

Associates noticed a change after Parnas returned to Boca Raton from his summer meetings with Firtash, sources close to the situation told CNN.

Whereas one year earlier, Parnas was telling his wealthy contacts that he was short on cash and needed loans, he was now living the high life — surrounded by bodyguards, traveling in luxury SUVs and jetting up and down the East Coast on private chartered planes.

Quite suddenly, Parnas was able to settle an old debt with local businessman Felix Vulis, whose lawyer previously told CNN that he lent $100,000 to Parnas in October 2018, partly because Parnas claimed to be so poor he could not afford to pay for his own son’s bris.

Three sources told CNN that a January invoice for about $30,000 from a charter jet company in Florida was left unpaid for months. But in August, after the Vienna trips, Parnas started using the company again and agreed to a payment plan, the sources said.

They also started to ramp up their own spending. Between August 23 and October 6, Parnas and Fruman used their company, Global Energy Producers, to pay for six private flights up and down the East Coast, according to documents obtained by CNN.

Parnas told some associates that Firtash was funding the flights, those three sources told CNN. He also told some of them that Firtash was now paying all the expenses for Global Energy Producers.

According to flight manifests obtained by CNN, Giuliani and his friends and family joined Parnas and Fruman on a flight from Florida to New Hampshire in late January.

Proposed Qatar gas deal

By September, Parnas wanted to find a way to be paid more legitimately by Firtash, he told three people. On August 19, Parnas and Correia appeared on a sunny afternoon at a cigar bar, Club Monte Cristo, in Boca Raton, according to two people with knowledge of the meeting. Fruman was supposed to attend but was stuck in traffic.

At that meeting, Parnas and Correia tried to sell an American energy magnate, whom Parnas cultivated through Giuliani, on a deal involving their new patron. Correia asked if the businessman would open a letter of credit to buy gas from Qatar, where they claimed to have a contact. Firtash, Correia explained, would in turn sign a letter of credit to him and buy the gas at a mark-up.

Correia, Parnas and Fruman would take a share of the profits. Firtash, they claimed, would be a natural partner for the project given his history selling Russian gas into Ukraine. While Parnas gave the impression the Qatar deal was Firtash’s idea and had his blessing, according to two sources who spoke to CNN, it’s unclear what if anything Firtash actually knew of the proposal. His lawyers have stated that he had no business relationship with Correia, Parnas or Fruman.

In the end, the American businessman balked over concerns about working with an indicted oligarch, and ultimately declined the offer.

Correia’s lawyer did not respond to requests for comment.

Bringing it back to Biden

The next month, on October 4, shortly after House Democrats requested documents from Parnas and Fruman, flight records show that Parnas chartered a jet to Cape Cod. Parnas told two sources that he was there to meet his lawyer John Dowd, who previously represented Trump during the Mueller investigation.

Democrats have since subpoenaed Parnas and Fruman for documents, though Dowd has pushed back. Dowd directly tied Parnas and Fruman to the President when he told lawmakers that some requested materials could fall under attorney-client privilege because his clients “assisted Mr. Giuliani in connection with his representation of President Trump.”

The flight records indicate that Parnas and Fruman chartered a private jet from Fort Lauderdale, Florida, to Washington on October 8, the day before they were arrested at Dulles while boarding a plane to Vienna. Giuliani lunched with Parnas and Fruman at the Trump International Hotel in Washington just hours before they were arrested, according to the Wall Street Journal.

The purpose of their trip to Vienna, as CNN previously reported, was to meet up with Giuliani and former Ukrainian prosecutor general Victor Shokin, a major player in the widening Ukraine scandal because of his discredited claims against the Bidens.

As vice president, Biden led a push by the Obama administration that was joined by the International Monetary Fund and other European nations to have Shokin removed because he was not prosecuting corruption cases.

By the time of Parnas’ attempted trip to Vienna this month, Shokin was already involved in Firtash’s case. Shokin had submitted an affidavit to an Austrian court supporting Firtash’s arguments against extradition, claiming there was political interference by the US.

It was in that affidavit that Shokin first made the unfounded claims about Biden, which Giuliani promoted for months after speaking with Shokin earlier this year. That conversation happened over Skype after Giuliani unsuccessfully lobbied the State Department and White House to grant Shokin a visa so they could to meet face-to-face.

There is no evidence of wrongdoing by the Bidens.

Parnas and Giuliani hoped to book Shokin for a Fox News interview in Vienna, where he could levy his allegations against Biden for the first time on American television, according to four sources. It never happened.

CNN’s Evan Perez and Katelyn Polantz contributed to this story.

How two businessmen hustled to profit from access to Rudy Giuliani and the Trump administration

Long before they burst onto the national scene with their high-profile arrests at Dulles International Airport earlier this month, Soviet-born businessmen Lev Parnas and Igor Fruman were already turning heads in Republican fundraising circles.

“They seemed like hustlers — but not in a bad way. In a good way,” one high-ranking Republican operative familiar with the pair told CNN.

But a CNN review of campaign contributions and court filings, as well as interviews with nearly a dozen people with knowledge of Parnas and Fruman’s interactions, tell a different story. The pair raked in hundreds of thousands of dollars and jetted around the world touting their connections to Giuliani and the Trump administration while pushing for business and favors, even claiming to arrange a Fox News interview, right up until the day they were arrested for conspiracy and campaign-finance related charges.

At one point, they pushed a Ukrainian businessman to pay them to bring Trump administration officials to Ukraine. At another time, they convinced a Florida-based businessman to loan them $100,000 so they could connect him with Giuliani and other prominent conservatives. And in a third instance, they attempted to influence the management board of a Ukrainian gas company.

“They presented themselves as successful businesspeople with business interests across the country and in Europe,” said the GOP source, who requested anonymity, citing the ongoing criminal probe into the men. “They just said they loved the President and what he’s doing.”

When the pair made a $325,000 donation to a pro-Trump super PAC in May 2018, they were subjected to standard vetting designed to detect any problems or conflicts with major donors, the source said.

“They didn’t find any reason why we shouldn’t take their money,” said the Republican with knowledge of the matter. “So we did.”

On the day the indictment was unsealed, the PAC itself said, “America First Action takes our legal obligations seriously and scrupulously complies with the law,” according to a statement issued by the group the day the indictment was unsealed.

But the pair’s business and networking activities over the past year had raised red flags with several prominent businessmen and their attorneys, CNN has learned.

Parnas and Fruman were in federal court on Wednesday after being arrested several weeks earlier in a corridor at Dulles airport near Lufthansa departing flights. They pleaded not guilty to allegations of funneling Russian money into Nevada politics and of circumventing federal campaign finance laws to make straw donations to advance the political interests of at least one Ukrainian official, including the $325,000 donation to the pro-Trump PAC, America First Action.

Defense attorneys for Parnas and Fruman declined to comment for this story on Wednesday.

“Radioactive wolves”

Bruce Marks, an attorney in Philadelphia who represents prominent Eastern Europeans, told CNN in recent days there was a Russian proverb that applied to Fruman and Parnas.

“Don’t go in the forest if you’re afraid of wolves,” Marks said. “And these guys, they just weren’t wolves, I mean they were radioactive wolves.”

Marks represents the Ukrainian billionaire Ihor Kolomoisky, who is a major supporter of the new Ukrainian President Volodymyr Zelensky. In the lead-up to Zelensky’s inauguration this May, Parnas and Fruman approached Kolomoisky during a trip to Israel.

They wanted a six-figure payment, Marks said, and in exchange they told the billionaire they could set up a meeting between Zelensky and a delegation of American officials.

“My recollection is that they were talking about Vice President Pence, Secretary of Energy Rick Perry, and they said that they needed to have money in order to ensure that they would come,” Marks told CNN. They also touted their connection to Giuliani to the Ukrainian businessman, Marks said.

“They were going to be responsible for arranging for American government officials to come to Mr. Zelensky’s inauguration,” he added.

Kolomoisky refused, Marks said.

There was no indication that Pence, Perry or anyone in the Trump administration or Ukrainian government were aware of those efforts.

Perry and State Department officials did travel to Ukraine for the inauguration, arranged through official government channels.

Search for cash

It wasn’t the only time Parnas and Fruman tried to use their connections to Giuliani to push for cash. In March of this year, they pitched their influence and ties to Trump’s administration to a Ukrainian gas executive at an energy conference in Houston.

And they’ve been spotted in years of photos alongside Giuliani, Trump and even other lawyers to the President. Giuliani did not return multiple requests for comment on this story.

Over the past year, the pair hustled for hundreds of thousands of dollars in loans and payments.

In the fall of 2018, Parnas was telling his wealthy contacts that he was short on cash and seeking loans, according to three people familiar with his requests. Among his alleged troubles, one source said, was that he needed money to pay Giuliani to be a spokesperson for one of Parnas’ companies. Giuliani has said he was retained by that company to provide business and legal advice because of his related experience.

That wasn’t their only ask. South Florida attorney Robert Stok told CNN in an interview that Parnas and Fruman came to a wealthy client of his seeking money, claiming they were so short on cash they couldn’t even pay for Parnas’ newborn son’s bris.

Stok said the men asked Felix Vulis, a Russian-American natural resources magnate, if he could kick in some money for the event.

They had also promised to open doors for Vulis through their connections to Giuliani and others, including the Washington lobbyist Brian Ballard, the former chief of staff to Mike Pence Nick Ayers and others. This added to Parnas and Fruman’s credibility with Vulis.

Vulis was intrigued enough to loan them $100,000, writing a check to Parnas’ company Global Energy Producers in October 2018, which included a memo for a “loan to Igor and Lev (two month),” according to Stok and other records reviewed by CNN.

“The thing that made him really pull the trigger was the fact he felt sorry for them, because of their financial constraints,” Stok said. Any proposed networking in Republican circles never happened, Stok said.

When they were slow to repay, Vulis sued. Vulis told their since-indicted associate David Correia over text message he had been ripped off, and that he planned to tell Giuliani, Ayers and others that Parnas and Fruman would face a lawsuit. Correia pleaded not guilty.

Parnas and Fruman fought the case for months but ultimately repaid the debt a few weeks before Giuliani publicly admitted to asking Ukraine for political help, a key early development in the House impeachment inquiry. The exact details of their settlement with Vulis remain private.

This August, “all of a sudden they were able to fork over a check,” Stok said.

An aborted trip to Vienna

Two weeks ago when they were arrested, Parnas and Fruman were preparing to fly to Vienna, Austria, to meet Giuliani and another key figure in the impeachment investigation, Ukraine’s former prosecutor general Viktor Shokin, according to four sources familiar with their trip. Shokin is the same Ukrainian official who former Vice President Joe Biden — along with other Western leaders — had pushed to have removed over concerns he wasn’t prosecuting corruption.

While questions in Washington swirl around Shokin’s role in this controversy, Giuliani, Parnas, Fruman had specific plans for the former Ukrainian official up until the day of their arrest. According to those four sources, they told others they were headed to Vienna to help with a planned interview the next day: Shokin, they said, was scheduled to do an interview from the Austrian capital with Sean Hannity.

A spokesperson for Fox News did not provide CNN with a comment.

CNN’s Evan Perez, Michael Warren, Drew Griffin and Sara Murray contributed to this report.

‘Forceful, blunt and undiplomatic’: the ambassador now at the center of the impeachment probe

When Gordon Sondland arrived in Brussels as the US ambassador to the European Union in July 2018, it didn’t take long before people were reminded of his American boss.

The hotel executive struck many of his European counterparts as something of a mini-Donald Trump. He started renovating the US embassy. He freely gave interviews and was a fixture on Twitter. He threw lavish parties and boasted of his growing relationship with Trump.

In the corridors of the European Parliament, Sondland worked to build personal relationships with heads of state and diplomats. Though he knew it was a breach of protocol, Sondland’s habit of calling officials by their first name was an attempt to build a personal rapport, but also struck some as off-putting in the rule-bound capital of the European Union. So did his penchant for speaking bluntly.

One veteran diplomat tells CNN that Sondland would ridicule the EU for being obsessed with regulations. “At the same time, he was open and candid — just not a believer in the traditional values that have kept Europe and the US so close in the last 70 years.”

In discussing trade, Sondland would complain that the EU was “ripping off” the US, said Jeremy Shapiro, a research director at the European Council on Foreign Relations, who interacted with Sondland. Shapiro says that Sondland would also threaten his European counterparts with a “Chinese-style stand-off” if they didn’t cooperate on trade.

“When he speaks he’s forceful, blunt and un-diplomatic and it aggravates people,” said Shapiro.

A key player

Sondland is now a key player in an impeachment inquiry examining whether the President tried to use US military aid as leverage in his effort to get a foreign country to investigate a political foe.

On Thursday, Sondland, who remains in his post as ambassador, will testify behind closed doors to the House Intelligence, Foreign Affairs and Oversight committees that are leading the Democratic impeachment inquiry into Trump and Ukraine. Their investigation was spurred by a whistleblower complaint alleging Trump sought help from Ukraine to investigate former Vice President Joe Biden and his son Hunter’s position on the board of a Ukrainian natural gas company, Burisma Holdings.

Sondland is a crucial witness for Democrats’ impeachment case. Lawmakers have already interviewed multiple current and former State Department officials, and Sondland has popped up in their testimony in several instances, including text messages turned over to Congress in which Sondland and a top US diplomat in Ukraine debate whether $400 million in military and security aid was being withheld in connection with Ukraine opening an investigation.

“I think it’s crazy to withhold security assistance for help with a political campaign,” acting US ambassador to Ukraine Bill Taylor texted to Sondland on September 9.

Taylor is expected to testify before the committees on Tuesday.

A self-made hotelier from Portland, Oregon, Sondland was for years the Republican Party’s go-to bundler in the Pacific Northwest. After donating to the presidential campaign of Mitt Romney in 2012, Sondland had initially supported Jeb Bush and then Marco Rubio in their 2016 presidential campaigns.

The irony of his current predicament is that he was not welcome in Trump World and had to force his way in, according to multiple former White House officials.

According to two Trump campaign advisers, Sondland angered Trump when he denied his campaign the use of his hotels as fundraiser venues after Trump’s negative remarks about the family of a slain Muslim-American soldier in the summer of 2016. One of Sondland’s business partners is Muslim.

But after Trump won, Sondland found himself on the outside looking in. “Gordon was desperate to win the approval of Trump,” said one of his long-time Republican friends who worked in the White House. To earn Trump’s favor, Sondland ended up donating $1 million to the inauguration.

Sondland’s change of heart did not surprise people who know him. David Nierenberg, a wealthy investor and friend of Sondland, told CNN that Sondland always aspired to connect himself to people of power.

“People like me collect books and wine and Gordon collects relationships with people in power,” said Nierenberg, adding that a glimpse of Sondland’s personal office offers a telling window into his ambition. Lining the room are photos of Sondland alongside well-known politicians, including Romney, and both Presidents Bush. What’s striking, says Nierenberg, is that pictures of Sondland with politicians outnumber those of his own family. “You can see his ambition in the photographs.”

Remarkably unremarkable

After his inauguration donation, Sondland’s name was suddenly on a list that former White House adviser responsible for personnel, Johnny DeStefano, regularly put in front of the President, says a person with knowledge. Still, it took Trump months to come around to the idea of nominating Sondland.

One Senate aide remembers that given all the other Trump nominees deemed unfit by many Democrats, Sonland seemed harmless. “He blended in the background,” the aide said.

“What is maybe most remarkable in retrospect is how unremarkable his nomination seemed at the time,” said another Congressional source familiar with Sondland’s confirmation. “He was very obviously a donor pick and not someone with much prior foreign policy experience, but other than that, our records and our staff’s recollections of it are that there wasn’t much else that stood out during his confirmation process. I definitely don’t think at that time that anyone guessed he would have ended up in the middle of a fiasco like this.”

Once confirmed, Sondland was viewed as a problem by the national security teams at the White House and at the State Department, two administration officials told CNN. Sondland did not feel bound by Secretary of State Mike Pompeo or national security adviser John Bolton. He could call the President whenever he wanted, and did, they said.

Bolton’s spokesperson declined to comment. A State Department spokesperson also declined to comment.

“Once he was an ambassador he was going to put himself in the middle of things, that’s who he is,” says a Republican political consultant.

Sondland would reach out to Bolton at times to try to set up meetings, but Bolton would often refuse to meet him, one of the administration officials explained.

That same official told CNN that Sondland would often confuse other countries that dealt with him, because he blurred the lines of who was in charge of administration policy. Sometimes the White House or State Department would ignore his initiatives because they were not always consistent with policy, the official said.

Ukraine is not usually in the portfolio of the EU embassy, but Sondland may claim it was always in his briefing book, according to a source familiar with what he is likely to testify.

In her testimony to Congress this week, Fiona Hill, Trump’s former top Russia adviser, said that she regarded Sondland as a security risk, a source familiar with her testimony tells CNN. Hill told Congress that Sondland frequently used his personal cell phone to conduct official diplomatic business, and that she worried his lack of experience could be exploited by foreign governments.

What will he say?

Sondland is still expecting to show up on Thursday and speak to impeachment investigators, according to a person familiar with the EU ambassador’s preparations. Sondland’s legal team has publicly pointed to the State Department regarding any document requests, saying State would be the entity to turn any discussions of official business over to the Hill.

Sondland hasn’t heard from the White House or State Department with requests to block all or parts of his testimony Thursday, the person said. Last week, the State Department stopped Sondland from speaking to Hill investigators, prompting them to subpoena him. Hill’s legal team had refused to honor a request from the White House to consider some of her communications privileged.

Sondland, the source said, is pushing back on the idea that the White House’s national security advisers expressed alarm about a possible quid pro quo with Ukraine, saying that Hill and Bolton never made it known to Sondland that they were concerned.

Even emails between Sondland and Hill, Trump’s former Russia specialist, were “cordial” and “collegial,” with the ambassador keeping her updated on his activities in Ukraine, the person said.

Sondland contends that he never understood that the President sought an investigation of Joe Biden, according to the source, even when Trump’s personal lawyer Rudy Giuliani was pushing for a Ukrainian investigation of the natural gas company Burisma and into foreign interference in the 2016 election. Sondland contends he did not understand that Trump sought political help from Ukraine at least until after the July 25 call transcript was released, where Trump had brought up Biden, according to the source.

The source also contends Sondland’s interactions with Giuliani were far less than others perceived, though necessary to achieve progress with Ukraine.

“If you wanted to get this meeting with (Ukrainian President Volodymyr) Zelensky, then you could either abandon that or you could work through Rudy (Giuliani),” the person said, again describing what Sondland may say on Thursday. “They came to understand that what Rudy wanted was a public statement by Zelensky to look at Burisma and the server in 2016.”

Some of Sondland’s friends worry about his potential exposure. “I hope that he did not cross any lines that he might now regret,” said Jordan Schnitzer a real estate developer in Portland, Oregon, and a longtime friend of Sondland.

Sondland’s friend David Nierenberg told CNN that he had emailed Sondland as the Ukraine scandal was breaking, reminding him that Richard Nixon did not lose the presidency because of the break-in at Democratic National Committee, but rather because of two years of lies and cover-ups. “I concluded my message, therefore, by saying whatever you do, tell the truth, if there’s anything that you regret doing or not doing on reflection that admitted, freely, apologize for it and make things right because you have the rest of your life ahead of you.”

“Thank you,” Sondland replied. “You’ve always given me good advice.”

Trump wanted to release his taxes in 2013 to show how smart he was for paying so little

President Donald Trump’s fight to keep his tax returns private is at odds with his own thinking in 2013 and 2014 that releasing them as part of a presidential bid would make him look like a smart businessman who had spent years lowering his taxable income, according to two people with firsthand knowledge of conversations at the time.

Trump ultimately changed his mind after an adviser says he convinced him not to release his taxes, and he has spent years claiming he can’t because he’s under audit by the IRS.

Sam Nunberg, Trump’s political adviser from 2011 to August 2015, tells CNN that during a meeting he had with Trump in the summer of 2013 at Trump Tower, the future president said he was comfortable releasing his tax returns and, even, that he thought it would be a good idea. Nunberg assumed this was because of how little Trump must pay in taxes.

“He thought he could defend the return,” says Nunberg, who did not himself view Trump’s returns. “I inferred from the conversation that he believed that it was a low number and he’d look savvy.”

A second person, a former senior adviser to Trump, who also joined them for lunch that day, recalls Trump being enthusiastic about releasing his returns for this reason.

Nunberg remembers that at the time Trump had recently returned from delivering a political speech in Iowa and that his motivation to look like a scrappy businessman was fueled by the failed presidential bid of Mitt Romney. “He felt that Romney had avoided looking successful,” says Nunberg. “Romney had posed beside a shopping cart in his jeans. Trump wanted to appear to be the opposite of that. He was proud of his business track record.”

In May 2014, Trump told an Irish television station that he would “absolutely” release his tax returns if he entered the race. “If I decide to run for office, I’ll produce my tax returns, absolutely,” he said. “And I would love to do that.”

It wasn’t until November 2014 that Trump abandoned the idea, according to Nunberg. At that point it was still eight months before Trump announced for president. At another one-on-one meeting at Trump Tower, Nunberg says he convinced Trump to change tack, and told him that federal election rules obliged him to release only a broad financial statement, rather than his full tax returns. Trump liked the idea because he could show how rich he was, says Nunberg.

“He wanted to look rich rather than smart,” Nunberg says.

Neither the White House, Trump’s lawyer Jay Sekulow, nor the Trump Organization responded to a request for comment.

A losing fight

That change of heart nearly five years ago has had massive repercussions. During the 2016 campaign, Trump became the first major party nominee not to release his taxes in more than 30 years.

As President, he has faced numerous legal challenges seeking the release of his tax returns, including from House Democrats and the New York district attorney.

In fighting to keep them private, Trump has deployed an assortment of arguments both legal and prosaic, ranging from claims he’s under audit by the IRS to simply stating his taxes are “none of your business.” Trump has also acknowledged that he has fought to “very hard to pay as little tax as possible.”

But after a string of court losses, Trump’s unprecedented struggle to block the release of his tax returns is looking legally tenuous and appears more likely to head to the Supreme Court.

On Friday, Trump lost his appeal to stop House Democrats from subpoenaing his taxes from his longtime accountant Mazars USA. In a 2-1 ruling, the US Court of Appeals for the DC Circuit upheld a lower court ruling saying the firm must turn over eight years of accounting records.

Trump can appeal to the Supreme Court to stop Mazars, but courts, including the Supreme Court, previously have refused to curtail Congress’ subpoena power.

A matter of vanity

Speculation has swirled around why Trump hasn’t released his taxes, including that they could reveal long-denied ties to foreign interests or that he has donated embarrassingly little to charitable organizations. Trump’s critics have also suggested that a full public airing of his tax records might prove that he has exaggerated his wealth and isn’t as rich as he claims to be.

It’s this last reason that is closest to the truth, according to Nunberg, who told CNN it’s his impression that Trump’s real motivation for not releasing his taxes was a simple matter of vanity.

A tax return of a New York real estate developer typically makes them look much less wealthy than they really are, on account of complex rules that include the ability for owners of profit-making buildings to write them off as losses.

Nunberg says the reason he suggested Trump not release his tax returns came down to three factors. First, by then Trump had told him that he was in fact under audit by the IRS. Secondly, he and Roger Stone, a mentor to Nunberg and himself a former Trump adviser, had started to realize that some of Trump’s business history — the bankruptcy of the Trump Organization in the 1990s in particular — would come under attack and the returns might highlight that.

Third, Nunberg assumed, given his knowledge of the common tax practice of New York real estate magnates, there would likely be a vast discrepancy between Trump’s net worth and what his tax returns showed — and that this might be difficult to explain to voters in Iowa, New Hampshire and South Carolina. Nunberg knew that tax laws for commercial real estate developers are notoriously riddled with loopholes peculiar to that industry.

“I wanted him to run. I wanted him to feel as comfortable as he could. I didn’t want any complications or hiccups. I tried so that this wouldn’t hurt the Trump brand in any way,” Nunberg said.

Changing his story

By early 2015, Trump was starting to slightly change the way he answered questions about his taxes. In February of that year, he told radio host Hugh Hewitt that he would “certainly show tax returns if it was necessary.”

By October, he was hedging even more, telling ABC’s George Stephanopoulos that he was considering releasing his tax returns. “I’m thinking about maybe when we find out the true story on Hillary’s emails,” he said of Democratic presidential candidate Hillary Clinton.

The financial statement Trump filed with the Federal Election Commission in July 2015 was 92 pages long and claimed $1.4 billion in assets and $265 million in liabilities.

Nunberg was fired from the campaign in August 2015, shortly after the financial statement was released.

During the presidential campaign Trump used the excuse of being under audit as the chief reason he could not release his taxes. He’s repeated that defense as President. It’s true that every president is audited every year, but there is no law that forbids them from releasing their returns while under audit.

“The President has fought releasing his tax returns since the early days of his campaign,” said the former senior Trump adviser who says they still regularly speak with the President. “He has no interest in showing them or he would have released them. As usual I expect the Democrats will be disappointed if they are released, as they might just show Trump is a savvy, successful wealthy businessman.”

But in May The New York Times reported that 10 years of Trump’s tax records the paper had viewed, starting in 1985, appeared to show the exact opposite, and that Trump had lost $1.17 billion during that period.

The paper reported that, according to the tax records, Trump would have “lost” more money than any individual taxpayer in the entire country. Trump’s attorney, Charles Harder, told the Times that statements about the records were “inaccurate” but pointed to no specific inaccuracies. He later added that IRS transcripts “are notoriously inaccurate.”

In a response to the Times, a senior White House official said, “The president got massive depreciation and tax shelter because of large-scale construction and subsidized developments. That is why the president has always scoffed at the tax system and said you need to change the tax laws. You can make a large income and not have to pay large amount of taxes.”

In other words, Nunberg’s assumptions about why Trump’s tax returns would be damaging to the Trump brand were spot on.

Former US special envoy for Ukraine plans to appear before House committees this week

Former US Special Envoy for Ukraine Kurt Volker is still planning to appear at his deposition Thursday in front of three congressional committees, according to two sources familiar with Volker’s latest thinking.

Volker’s plan to follow through with his deposition comes after Secretary of State Mike Pompeo accused House Democrats of intimidating and bullying State Department officials by calling for their depositions in the Ukraine inquiry starting this week, something he says is “not feasible.”

It remains unclear whether the four current State Department officials will be deposed in the coming days by House committees, according to congressional sources.

CNN reported Saturday that Volker had planned to appear for the deposition.

In a letter to trustees of the McCain Institute on Saturday, Volker wrote that Congress requested his testimony and that he would “be complying with that request.”

Some background on Volker: His appearance before the Intelligence, Oversight and Reform and Foreign Affairs committees was announced just hours before the news broke Friday evening that he had resigned.

Lewandowski may lead White House impeachment team

Corey Lewandowski, the political operative who helped elect Donald Trump, has had conversations with White House officials in recent days about potentially taking a position inside the administration to help the President confront a looming impeachment fight.

The discussions, including a Thursday afternoon meeting at the White House, reflect the growing recognition among Trump’s allies and advisers that he is without a clear strategy for managing the crisis, which exploded in stunning fashion this week, according to multiple people familiar with the talks.

Trump’s 2016 campaign manager would be in a crisis management type role, and the idea as it currently stands would be for Lewandowski to assemble a team that mirrors the one that existed in Bill Clinton’s White House when he was facing his own impeachment.

The list of potential players on the team includes David Bossie, his former deputy campaign manager who angered the President earlier this year by soliciting funds using Trump’s name. Bossie served as the chief investigator of the Republican-led House Oversight Committee in 1997, helping scrutinize Clinton.

“As I have done for the last five years, I will continue to serve the President in any capacity he thinks I can be most helpful. However, I have not spoken directly to the President about leading an effort to push back on the fake impeachment narrative,” Lewandowski told CNN.

White House press secretary Stephanie Grisham denied that an impeachment response team is in the works.

“Despite what CNN clearly hopes to be true, there are no plans to form an impeachment response team. If your sourcing is so ‘strong,’ at least one of them would have the courage to say it on the record. You don’t have even one person on the record because it’s just not true,” Grisham said.

Lewandowski, who was fired midway through Trump’s campaign, remains close to the President and is a regularly guest aboard Air Force One and at the White House. His presence in Trump’s inner circle is controversial, however, given his loudly proclaimed view of letting “Trump be Trump” instead of attempting to apply discipline to the freewheeling president. Lewandowski has also chafed at times with some members of Trump’s family.

He also came under fire during a recent appearance in front of the House Judiciary Committee when he publicly admitted lying to the press, sparking an audible reaction in the room when he said: “I have no obligation to be honest with the media because they’re just as dishonest as anyone else.”

Lewandowski also teased a rumored New Hampshire US Senate bid, recently tweeting: “New website just launched to help a potential senate run. Sign up now!” he said, alongside a link to what appeared to be a super PAC.”

The response team would be to help spearhead strategy and messaging as the House of Representatives’ impeachment probe heats up. The role could also exist outside the White House, and many of the details of the arrangement are still unclear.

CNN reported earlier Thursday that some people close to Trump believe he is in denial about the gravity of his predicament, and it is still not clear whether the President is ready to acknowledge he needs such a team.

But several of his advisers have expressed concern that Trump’s team appears without a strategy as a long-anticipated impeachment proceeding becomes a reality.

Several allies have made the case for standing up a dedicated team to handle the matter — realizing how dire impeachment is and how hard it would be for a typical White House political and press shop to keep up. The White House legal team has expressed confidence in facing such a probe, but the rest of ranks of the White House are widely seen as depleted.

The White House is considering bringing other officials in as well, though some aides are pushing back on the need for such a team, claiming those who are already there are well-equipped to face off with Democrats.

During the last US impeachment proceedings, Clinton retained a personal legal team both to help combat perjury and obstruction of justice charges and to help mold public perceptions of the case.

A key difference, however, is Clinton had already been reelected when the charges were levied. Trump will face the impeachment process at the same time he is gearing up for another presidential campaign, lending the matter more political weight.

New details reveal acrimonious split between Epstein and Duke of York

On August 19, Buckingham Palace put out a statement signed by Prince Andrew, the Duke of York, that was emphatic in distancing the British Royal from the late disgraced financier, Jeffrey Epstein.

“His Royal Highness deplores the exploitation of any human being and the suggestion he would condone, participate in or encourage any such behavior is abhorrent,” it said in part.

The statement came days after The Mail On Sunday published grainy video footage that the British paper said showed the prince at the door of Epstein’s Manhattan townhouse in 2010.

By then Epstein was a registered sex offender who had avoided a federal trial at the time and served only 13 months in jail for state prostitution charges over his involvement with underage girls. He was accused of paying hundreds of dollars in cash to girls as young as 14 to have sex with him at his Upper East Side home and his estate in Palm Beach, Florida, and paid some of his victims to recruit other girls for him to abuse.

In 2015, one of Epstein’s accusers, Virginia Roberts Giuffre, said in a federal court filing that she was forced to have sex with the prince while underage. Prince Andrew has “emphatically denied” any sexual contact with Virginia Roberts.

While the statement was intended to clarify the details of a relationship that had plagued the British prince for almost a decade, the reality is that it had ended years earlier in a dramatic chain of events, some of which have never been told before.

The more than decade-long friendship between Prince Andrew and Epstein, who died by suicide in his jail cell on August 10, ended in the Spring of 2011, when Epstein threatened legal action against Prince Andrew’s ex-wife Sarah Ferguson, the Duchess of York.

According to interviews with three people with direct knowledge of the events, Epstein grew irate in late February 2011 after the New York Post published a photograph of the prince walking in Central Park with Epstein in late December 2010.

The accompanying article, headlined  ”Prince & Perv, generated a barrage of negative publicity about the prince’s years-long friendship with Epstein. On March 7, 2011, Sarah Ferguson admitted publicly that she had accepted GBP 15,000 ($9,305) from Epstein to help pay an employee to whom she owed money.

On the advice of her publicist, James Henderson, the Duchess gave an interview to London’s Evening Standard in which she expressed extreme contrition for her lack of judgment by accepting the funds from Epstein. With the interview, she put a clear divide between herself and Epstein. “I abhor pedophilia,” she said, adding that she’d had no knowledge of Epstein’s alleged relationships with under-age girls when she took the money.

According to Henderson, Epstein’s reaction to Ferguson’s statement was swift and dramatic. First Henderson received what he described as a “deeply unpleasant” phone call from Epstein, who threatened Henderson with a defamation lawsuit if a statement was not issued retracting the word “pedophile.”

“It was so unpleasant that I was left slightly rattled and I saved his number so I’d never have to take a call from him again,” Henderson told CNN.

Next, the Duchess received a letter threatening legal action from an Epstein lawyer and demanding a retraction, according to Henderson. The letter was sent to Ferguson’s lawyer at Schillings in London, according to Henderson, who says he advised the Duchess not to retract her statement.

Shortly after, Epstein, who had retained the services of Los Angeles publicity firm Sitrick & Company years earlier, now turned to Sitrick for help with the situation. The head and founder of the firm, Michael Sitrick, said he in turn recommended that Epstein hire a new lawyer, the UK defamation attorney Paul Tweed.

That solution didn’t work. Sitrick ended up suing Epstein for failing to pay his bills, and Tweed eventually stopped working for him as well. Tweed told CNN that he stopped working on the matter after “my advices were not acceptable to Epstein.”

According to court documents related to Sitrick’s lawsuit against Epstein and obtained by CNN, Sitrick’s employees, in consultation with Tweed, tried to construct language to propose to Fergie that would serve as some sort of retraction by the Duchess of York.

At one point, Henderson says he was shown a draft statement that asked for a retraction of every single one of the Duchess’s comments.

Ultimately, it was all for naught. On Henderson’s advice, the Duchess never retracted her statements. Records show that in 2014 Sitrick sued Epstein for payment of more than $71,000 in unpaid bills and received a default judgment in his favor.

In a bit of irony, while the incident marked the end of the relationship between Epstein and Prince Andrew, it also led to a friendship between Tweed and the former royal couple. Tweed was photographed last week golfing with Prince Andrew.

The Duchess had been so impressed by his tenacity in 2011 she wound up hiring him a few years later, according to Henderson.

However, the Epstein issue has continued to plague the Duke of York, especially since the Giuffre allegations became public in 2015. (A photograph of the Duke with his arm around Giuffre’s waist allegedly taken in 2001 first surfaced in Britain’s Mail on Sunday in 2011.)

A federal judge has ruled that some documents related to the case could be unsealed.

Lawyers for Giuffre have asked for a meeting with the Duke to explore his relationship with Epstein. He did not answer their requests, according to Giuffre’s lawyers. Buckingham Palace reiterated its statement that Prince Andrew had never had any form of sexual contact with Giuffre.

On Friday, September 20, Giuffre reiterated her allegations about Prince Andrew on NBC’s Today Show, where she appeared with five other alleged Epstein victims. In the segment, Giuffre recounts an incident in which she went out to a club in London with Epstein, his close friend Ghislaine Maxwell, and Prince Andrew. In the car ride back from the club, Giuffre said that Maxwell told her the prince was coming back to her house and that she wanted her to “do for him what you do for Epstein.”

“I just couldn’t believe it,” Giuffre Roberts told NBC. “I couldn’t believe that even royalty were involved.”

In a statement to CNN, Buckingham Palace said that “It is emphatically denied that the Duke of York had any form of sexual contact or relationship with Virginia Roberts. Any claim to the contrary is false and without foundation.”

Trump campaign manager Brad Parscale remains on defense after scrutiny over financial ties

The Trump campaign is fending off questions about recent actions and comments from campaign manager Brad Parscale amid a torrent of criticism over the last few weeks from advisers inside the President’s expansive cutthroat network of confidants and aides.Parscale’s remarks about the Trump family, comparing the powerful real estate clan to a “dynasty,” revealed over the weekend, forced the President’s reelection aides to jump to the campaign manager’s defense once again.

“The Trumps will be a dynasty that lasts for decades,” Parscale said during a retreat for California Republicans, Politico first reported on Saturday. Asked if he thought the Trump children would eventually be on the ballot themselves, he said: “I just think they’re a dynasty. I think they’re all amazing people … with amazing capabilities. I think you see that from Don Jr. I think you see that from Ivanka. You see it from Jared. You see it from all.”

One Trump adviser, however, reacted with astonishment to the campaign manager’s comments, arguing Parscale had committed a serious unforced error.

“It’s was an incredibly stupid statement,” the adviser said, remarking that Trump’s victory over Hillary Clinton was partly a defeat of the notion of American political dynasties.

A Trump campaign spokesman explained Parscale only meant to compliment the first family in his comments.

“Brad meant what he said, which was praise for the Trump family’s intelligence and talents, which will have positive impacts on the party for decades to come,” campaign communications director Tim Murtaugh said in a statement.

But one of the President’s most vocal supporters in conservative media lambasted Parscale for the remark.

“This may be one of the dumbest things a campaign manager for a populist candidate ever said: Trump family building ‘dynasty’ for decades to come #MAGA #AmericaFirst #Dobbs,” tweeted Lou Dobbs, a Fox Business host and friend of Trump’s.

The controversy over Parscale’s tone-deaf comments comes as some Trump advisers have raised concerns about the campaign manager’s business activities and the perception Parscale has been profiting from his close ties to Trump.

“The President said he was going to drain the swamp. But, turns out, Parscale IS the swamp,” a long-time Trump adviser said.

Growing concern

Three sources inside and outside the campaign, including longtime Trump advisers, said there is growing concern about Parscale’s business activities, particularly news reports suggesting the campaign manager is profiting from his 2020 work.

Amid scrutiny of his business ties, Parscale has decided to disentangle his business interests from his work for the campaign, ending an ad-buying relationship with the Republican National Committee last month, according to a source close to the company.

There is nothing to indicate Parscale’s job might be in jeopardy, particularly because he still enjoys the confidence of Trump and his children. And like most places in Trump’s orbit, the campaign and his outside advisers are rife with factions, including those opposed to Parscale.

But advisers said his standing could be damaged if stories about his wealth and business ties continue. In the past, Trump has resented people who have brazenly tried to profit off their relationship with him. He personally ordered his campaign to put out a statement rebuking one of his earliest advisers, David Bossie, after he was accused of soliciting funds from Trump supporters and only spending a fraction on direct political activities. Trump has since softened his stance on Bossie.

Parscale’s longevity at the helm of Trump’s campaign is a subject of intense scrutiny in Trumpworld, after the 2016 campaign saw three iterations of leadership and amidst continued high turnover at the White House.

Murtaugh dismissed any concerns as “tired attacks”

“These are the same tired attacks against Brad Parscale from anonymous sources who have a personal stake in smearing him. Brad announced long ago that he was not placing ad buys for the Trump campaign, and in addition, his companies have transitioned out of all political ad-buying of any kind during this cycle to remove even the appearance of self-dealing,” he said.

“(Parscale) took the job of campaign manager because of his love for this country, President Trump, and the entire Trump family. Brad has been transparent with the President and the Trump family from the beginning. These anonymous sources are creating a distraction, which does nothing to further the reelection of the President they claim to support,” Murtaugh added.

Donor concern?

But some Trump campaign donors to the America First PAC have expressed concern to various advisers about the amount of money Parscale appears to be making off of his campaign role and his close ties to Trump.

“Of course they are,” one campaign official said about the donors’ concerns.

“He’s doing the work for everybody, man,” one major campaign donor to Trump’s 2016 effort said. “It’s just ridiculous, it’s outrageous.”

Parscale ingratiated himself with the Trump family as he played a critical role behind the scenes during the last campaign, when he served as the digital director and was in charge of online spending and voter targeting with the use of a highly sophisticated data bank built by the Republican National Committee. Republicans often give him credit for playing a part in the President’s success through his Facebook operation.

After the election, he co-founded America First Policies, the sister nonprofit closely related to the America First Action super PAC. He also helped raise millions of dollars in support of Trump’s reelection bid.

He’s also founded various companies that have received large sums of money from Trump-associated groups.

In 2017, he founded Parscale Strategy LLC, a marketing company that did work for America First Action, as well as others including the Republican National Committee. The America First Action super PAC made its last payment to Parscale Strategy on March 13, 2018, and its first payment to Red State Data and Digital — which Parscale also owns — eight days later, on March 21.

Federal Election Commission records show that Red State Data and Digital has received $910,000 from  America First Action, a large sum for a small company with one client.

The scrutiny over the amount of money he’s made off his political companies has bothered Parscale, particularly criticism among his Republican peers over a $13,500 fee he was paid for a speech to the Republican Party of Seminole County, Florida.

Parscale has returned the money to the campaign, according to a source close to the company. In the wake of the criticism, he has begun downsizing, according to the source, who said he had let three employees go from Parscale Strategy last month. A Trump campaign spokesman declined to comment about whether Parscale had returned the money to the campaign.

And as of August, Parscale Strategy is no longer making digital ad buys for the RNC, according to two sources. Parscale made the decision amid scrutiny of his finances by the Daily Mail.

“It’s not fair to him for him to take the heat on this and he made the decision to let us pay the ads ourselves and not through his firm,” an RNC official, speaking on background in order to speak freely, said.

The decision to cut ties had been discussed prior to the media scrutiny but the final decision came soon after the Daily Mail published, the RNC official said.

But the RNC official rebuked the Daily Mail reporting suggesting that Parscale was taking a percentage of online donations, calling it “insanity.”

Murtaugh refuted the allegations reported by the Daily Mail, telling them: “The suggestion that he is siphoning off a percentage of donations is a lie. Brad receives a monthly salary, and amounts paid to other entities are for staff salaries and services provided. There are no percentages involved anywhere.”

The official said the RNC used Parscale’s firm for ad-buying because he would get “a great rate” from Facebook, Google and other companies because of his track record with those companies.

Family ties

The speculation over Parscale’s finances has not stalled the campaign’s pace, which includes a Monday fundraiser in North Carolina and at multiple fundraisers in California and New York.

And despite the questions about his financial ties, Parscale still finds himself in good standing with the President’s family and those close to him said questions about his money amount to sour grapes. Because the campaign was filled with fractious relationships the last time around, Parscale has made an effort to fill the operation with his own people to minimize the infighting, according to sources familiar with the situation.

This has irked people who consider themselves the President’s earliest advisers but now find themselves on the outside, despite a desire from several of the President’s family members to streamline and professionalize the operation now that Trump is running as an incumbent, not an underdog.

Parscale has also made one strategic move that could help him stay in the job longer than most — deeply embedding himself in the President’s family. Parscale Strategy employs both Lara Trump, the President’s daughter-in-law, and Kimberly Guilfoyle, a former Fox News personality who is dating Donald Trump Jr.

Parscale also has a close relationship with Jared Kushner, and has empowered him to make decisions about the campaign more than most campaign managers would.

Kushner has not raised concerns about Parscale’s business ventures but has asked the campaign manager about the reporting, according to one person familiar with the conversation.

“I think that Brad’s fate probably lies with the donor reaction and then how the media covers it,” one Trump adviser said. “If the donors say we’re not giving any more, we’re not doing any more fundraising … until you do something about Brad or get rid of Brad, if that’s the message from multiple donors, then that’s going to be really problematic for Brad.”

Right now, Parscale still wields power in the Republican Party, too.

He has built strong ties with the chair of the Republican National Committee, Ronna Romney McDaniel. Parscale and McDaniel often phone the President together to discuss fundraising, polling and what’s next for their reelection effort, according to a source familiar with the practice. The campaign and RNC raised a combined $105 million during the second quarter of the year.