Manafort Allegedly Spent $12M From Foreign Accounts On Personal Luxuries

Mary Altaffer/AP
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Paul Manafort financed a lavish lifestyle with money laundered through offshore accounts, with expenditures including more than $1.3 million in purchases at Beverly Hills and New York clothing stores and more than $1 million on antique rugs, according to a federal indictment unsealed Monday. Manafort pled not guilty.

The 12-count indictment against Manafort and his business partner Rick Gates charges that more than $75 million “flowed through” those offshore accounts. It alleges Manafort took $18 million through the accounts, while Gates is accused of transferring $3 million from those accounts to ones he controlled.

The bulk of Manafort’s alleged years-long spending spree took the form of $12 million  in untaxed money he spent on luxury items and home improvements. The indictment spells out how Manafort would have one of his 15 offshore accounts—12 in Cyprus, two in St. Vincent and the Grenadines and one in the United Kingdom—wire in cash to each vendor for his purchases.

The list of Manafort’s lavish expenditures from his offshore accounts runs across eight of the indictment’s 31 pages. More than $5.4 million went to a “home improvement company” in the Hamptons from a mix of Cypriot entities, notably LOAV Advisors and Yiakora Ventures (An NBC News story about the Manafort’s debts to Russian oligarch and Putin confidant Oleg Deripaska said Manafort’s other companies were a primary influence over Yiakura’s business dealings).

Manafort’s expenditures at a Northern Virginia rug merchant, including a $100,000 “related” payment

 

Manafort, whose house in Water Mill, New York is among the assets prosecutors have proposed seizing, began spending from offshore accounts at that vendor in 2008 and continued, often several times a month, until August 2014. He also spent quite a bit on lawn care: a Hamptons-based landscaper lists expenditures totaling $164,740.

The indictment charges that he wired money to an Alexandria, Virginia rug merchant nine times, from as little as $7,400 to as much as $250,000.

Talking Points Memo called around Monday afternoon to rug merchants in Alexandria. At J&J Oriental, a salesperson promised a call back; at Domimex Antiques and Rugs, the proprietor said, “If you hear of anybody who has that kind of money to spend, please send them to me!”

TPM was not the first outlet to contact Art Underfoot, where the person who answered the phone said, “So many reporters have called me! I wish [Manafort] did! I am so poor!”

Not everyone was willing to chime in, however. A person who answered the phone at Herat Oriental told TPM “no comment” and hung up after a reporter identified himself.

Accounts associated with Manafort also made 34 transfers to an unnamed New York clothing store totaling nearly $850,000, and nine transfers to a Beverly Hills clothing store totaling $520,440. He patronized a Florida art gallery in 2011 and again in 2013, where his tab ran to $31,900.

A New York housekeeping service also earned $20,000 in three installments from accounts associated with Manafort.

Manafort’s expenditures at a single New York clothier, 1 of 2
Manafort’s expenditures at a single New York clothier, 2 of 2

The satirical commentary on Twitter was swift:

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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