Special counsel Robert MuellerPaul ManafortPaul John ManafortOvernight Cybersecurity: Lawyer charged in Mueller probe pleads guilty to lying | Sessions launches cyber task force | White House tallies economic impact of cyber crime Lawyer charged in Mueller probe pleads guilty to lying to federal investigators The Hill’s 12:30 Report MORE and Richard Gates.Robert Swan MuellerSasse: US should applaud choice of Mueller to lead Russia probe MORE has filed new charges against former Trump campaign staffers
A federal court in Virginia on Thursday returned a 32-count superseding indictment charging Manafort and Gates with committing tax fraud, failing to file reports on foreign bank and financial accounts and bank fraud conspiracy.
“Manafort and Gates generated tens of millions of dollars in income as a result of their Ukraine work,” the indictment says. “From approximately 2006 through the present, Manafort and Gates engaged in a scheme to hide income from United States authorities, while enjoying the use of the money.”
The indictment follows reports that Mueller filed new charges under seal Wednesday in the case against Manafort and Gates.
Meanwhile, Gates is rumored to be nearing a plea deal in Mueller’s probe into alleged Russian interference in the 2016 U.S. elections, which would pave the way for him to cooperate as a witness against Manafort, his longtime business associate.
Mueller initially charged Manafort and Gates in late October. Both individuals have pleaded not guilty.
The original 12-count indictment against Manafort and Gates unsealed in October detailed extensive allegations of financial crimes, including bank fraud and money laundering, linked to their work for pro-Russian political parties in Ukraine.
The criminal charges are not linked to Manafort and Gates’s work on President TrumpDonald John TrumpAccuser says Trump should be afraid of the truth Woman behind pro-Trump Facebook page denies being influenced by Russians Shulkin says he has White House approval to root out ‘subversion’ at VA MORE ‘s campaign.
In total, prosecutors allege that over $75 million flowed through Manafort’s and Gates’s offshore accounts. Manafort is accused of laundering over $30 million that he concealed from the Treasury Department with Gates’s help. The indictment says Gates obtained over $3 million from the offshore accounts that he concealed from the government.
In what appears to be a fresh accusation, the new indictment alleges that Manafort, with Gates’ help, extracted money from his real estate holdings between 2015 and “at least” January 2017 in order to fraudulently secure over $20 million in loans. The two allegedly inflated Manafort’s and his company’s income and failed to disclose debts in order to be approved for the loans.
“In the second part of the scheme, between approximately 2015 and at least January 2017, when the Ukraine income dwindled after Yanukovych fled to Russia, Manafort, with the assistance of Gates, extracted money from Manafort’s United States real estate by, among other things, using those properties as collateral to obtain loans from multiple financial institutions,” the indictment states.
“Manafort and Gates fraudulently secured more than twenty million dollars in loans by falsely inflating [Manafort’s] and his company’s income and by failing to disclose existing debt in order to qualify for the loans.”
Updated: 5:06 p.m.