READ: Paul Manafort, Rick Gates Hit With 12-Count Indictment

Douliery Olivier/Sipa USA USA
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Donald Trump’s former campaign chairman Paul Manafort and his business partner Rick Gates were hit with a 12-count indictment unsealed Monday that alleges a wide-ranging money laundering conspiracy and multiple violations of the Foreign Agents Registration Act (FARA). Both will plead not guilty.

The charges focus not on collusion between Trump’s presidential campaign and the Russian government but on Manafort’s own alleged money laundering activities, which the indictment says personally netted him $18 million and Gates $3 million. According to the indictment, the money in question came from under-the-table lobbying activities on behalf of Ukraine’s Party of Regions, the party of former president Victor Yanukovych. The two men held offshore accounts that allegedly handled more than $75 million over the nine years covered by the charges.

Manafort and Gates were each indicted on one count of conspiracy against the U.S., one count of conspiracy to launder money, one count of acting as an unregistered agent of a foreign principal, one count of making a false and misleading FARA statement and a separate count of making a false statement. Manafort was also indicted on four counts of failure to file reports of foreign bank and financial accounts, while Gates was indicted on three counts of the same.

The indictment charges that Manafort “represented falsely that he did not have authority over any foreign bank accounts,” and, in a complicated tax dodge, Manafort “laundered the money through scores of United States and foreign corporations, partnerships and bank accounts,” depriving the U.S. of tax revenue, according to the indictment.

It also alleges that Manafort, who was not registered as a foreign agent, took steps to “develop a false and misleading cover story” that would conceal his work for the Party of Regions in order to distance himself from the Government of Ukraine.

In the indictment, the government proposes seizing four of Manafort’s real estate properties—three in New York and one in Arlington, Virginia—as well as his life insurance policy.

This post has been updated.

ABOUT THE AUTHOR

Sam Thielman is an investigative reporter for Talking Points Memo based in Manhattan. He has worked as a reporter and critic for the Guardian, Variety, Adweek and Newsday, where he covered stories from the hacking attacks on US and international targets by Russian GRU and FSB security services to the struggle to bring broadband internet to the Navajo nation. He lives in Brooklyn with his wife and son and too many comic books.
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