UPDATE 1-U.S. charges Ex-Fugees rapper, Malaysian businessman Low over funding in 2012 election

The U.S. Justice Department announced on Friday it had charged former Fugees rapper Prakazrel “Pras” Michel and wealthy Malaysian businessman Low Taek Jho, popularly known as "Jho Low," for conspiring to steer illegal foreign campaign funds into the 2012 presidential election. According to the unsealed indictment, between June 2012 and November 2012, Low directed the transfer of approximately $21.6 million from foreign entities and accounts to Michel to be funneled into the U.S. election while disguising it as legitimate campaign contributions.

Under federal election law it is a crime for foreign nationals to make political contributions in U.S. federal, state or local elections. Low, who remains at large, faces separate criminal charges in the United States in connection with a multi-billion-dollar scandal at Malaysian state fund 1Malaysia Development Berhad (1MDB). Low has been identified by Malaysian and U.S. investigators as a central figure in the alleged theft of about $4.5 billion from 1MDB.

In the election funding case, Michel appeared in a federal court in Washington, D.C., for his arraignment. CNN reported that Michel pleaded not guilty to the charges and was allowed to return to his homes in Florida and California as he awaits his trial.

Michel and Low were each charged with one count of conspiracy to defraud the United States government and for making foreign and conduit campaign contributions. Michel also was charged with one count of a scheme to conceal material facts and two counts of making a false entry in a record in connection with the conspiracy. The indictment did not reveal the identity of the presidential candidate. However, Michel was an avid supporter of former Democratic President Barack Obama, and federal election records show he contributed money to political committees that supported Obama's 2012 re-election campaign and other Democratic committees.

(Reporting by Sarah N. Lynch; Additional reporting by Nathan Layne Editing by Chizu Nomiyama and Leslie Adler)