NEW YORK (AP) — A prosecutor says a Republican U.S. Senate candidate from New York told investigators that a conservative scholar and author lied to her about the source of campaign donations.

Assistant U.S. Attorney Carrie Cohen made the disclosure Friday as Dinesh D’Souza pleaded not guilty to charges that he violated campaign finance laws. D’Souza is the creator of the documentary “2016: Obama’s America.”

He was released after his Manhattan court appearance on $500,000 bond. His travel is restricted to the United States.

Cohen says D’Souza directed $20,000 in illegal contributions to be made to candidate Wendy Long. She lost to Democratic incumbent Kirsten Gillibrand in last year’s election.

Defense attorney Benjamin Brafman says there is not much disagreement over what happened, only whether the actions broke laws.