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Yes-- but in order to investigate Mr. Flynn there needs to be a good faith reason for doing so.
I don't know why that should be controversial or objectionable.
When the FBI interviewed Flynn in Jan 2016, they had no good faith reason for doing so. So, under the law, its not possible for there to have "material" fact lied about.
The stuff about FARA? Nothing to do here. There have been about half dozen prosecutions on that since the laws were on the book over 70 years ago. If there is a problem, the usual solution is for the person to simply resubmit.
The validity of investigating Flynn was borne out by his admissions in court before a federal judge. Flynn admitted lying to FBI agents about his dealings with the Russian ambassador during the presidential transition and making false statements about Trump transition officials’ lobbying on a United Nations resolution condemning Israel. Flynn also acknowledged that he signed Foreign Agent Registration Act filings that contained false statements about his work on a lobbying and advocacy project related to Turkey.