David Correia, a former business associate of Rudy Guiliani, was sentenced Monday to one year and one day in federal prison, having pleaded guilty to a charge of defrauding investors.
Correia was accused of collecting investments ranging from $200,000 to $500,000 for a start-up company, Fraud Guarantee. Correia, along with Lev Parnas, is accused of collecting $2 million in total from investors. However, rather than going towards the start-up, Parnas and Correia are believed to have used the money to fund personal expenses. Parnas and Correia pitched the company as one that would protect investors from fraud. Instead, they reportedly used it as a means to defraud investors.
Correia and Parnas are also believed to have repeatedly lied to investors, claiming that the start-up company had raised far more capital than it actually had. Those misrepresentations were allegedly used to raise more money.
In a remote sentencing hearing on Monday, US District Judge J. Paul Oetken granted Correia’s request for leniency, citing his smaller role in the offense, as well as his medical concerns. If Correia receives good time credit in federal prison, he may be released after 10 months. Afterward, he will be subjected to three years of supervised release. He will also have to pay $2.3 million in restitution.