The four count indictment charged that Parnas and Fruman had taken a variety of steps to shield the source of their campaign contributions, funneling "foreign money to candidates" and political action committees.
Prosecutors say the two men created a fake company, Global Energy Producers, and falsely reported that some campaign contributions came from GEP, described by the feds as a 'purported liquefied natural gas import-export business.'
Read the unsealed indictment from the Southern District of New York.
The lawyer for Parnas and Fruman is John Dowd, who helped President Trump deal with legal matters during the Russia investigation.
The Associated Press reported that Dowd on Thursday hung up the phone when an AP reporter called for comment about the charges.
In a news conference in New York, federal prosecutors said on Thursday that Parnas and Fruman were arrested on Wednesday at Dulles International Airport outside of Washington, D.C.
Both men had one way tickets to an overseas destination.