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The case, brought by the US attorney's office in Washington and the Justice Department's National Security Division, grew out of special counsel Robert Mueller's investigation of Russian interference in the 2016 campaign. They did not, however, say why he would be charged.

"I did not participate in a scheme to mislead the government or hide material facts", he said.

The language of the settlement appeared to pin almost all of the blame on an unnamed partner who matched Craig's description, saying he repeatedly gave "false and misleading" statements to Justice Department officials. A spokesman for the US attorney's office declined to comment.

The case is likely to bring renewed attention to the Justice Department's application of a once-obscure law applying to unregistered foreign agents.

Mueller's office referred Craig's case previous year to prosecutors in Manhattan as Mueller worked to bring his investigation to a close. "Mueller referred the Craig case to prosecutors in NY previous year after uncovering possible wrongdoing while he investigated former Trump campaign chairman Paul Manafort's Ukraine lobbying work" adds the author.

Craig served as White House counsel during the first year of the Obama presidency. In private practice, his list of clients has included former North Carolina Sen. John Edwards and James Cartwright, former vice chairman of the Joint Chiefs of Staff, who was investigated and charged for leaking classified information.

Craig and Skadden produced a report to help the Yanukovych government defend its prosecution of a former Ukrainian prime minister, which critics said had been politically motivated. Manafort, a veteran Republican operative, meanwhile worked as a consultant to Viktor Yanukovych, Ukraine's pro-Kremlin president, who was later ousted.

The indictment cites Craig as emailing another attorney in February 2012 with the statement: "I don't want to register as a foreign agent under FARA".

The FARA unit began to ask Skadden in 2013 whether it had an obligation to register as a foreign agent for its work in Ukraine. The disclosures also would have undermined the authority of the supposedly independent report.

At the time, Manafort and the team of American lawyers and lobbyists working on the account never registered their activities with the Justice Department. In exchange for $4 million, Greg was expected to produce a report showing that the prosecution accorded with Western legal standards and was not tainted by corruption, the indictment alleges. "I have been clear that we can not run close to the FARA line and if we were seen as hiring and directing [PR firm] we would be doing much more than just lawyering", he allegedly wrote in one May 2012 email.

According to the indictment, Craig covered up aspects of his work in order to avoid registering as a foreign agent under the Foreign Agents Registration Act (FARA), a rarely enforced law that was enacted in 1938 to counter Nazi propaganda. The language of the settlement appeared to pin almost all of the blame on an unnamed partner who matched Craig's description, saying he repeatedly gave "false and misleading" statements to Justice Department officials.

Craig's lawyers deny that he lied to the government or his firm.

Craig privately had reservations about Tymoshenko's treatment but left them out of the report, the indictment said.

"I was always honest about the reasons for my contacts with the media", Craig said in the video posted Thursday on Twitter. The report was also presented to US government officials, raising questions if it constituted lobbying. "I think we don't have to with this assignment, yes?"


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