A life of ‘lies’ and luxury
Court told Donald Trump’s former campaign manager believed he was above the law
Paul Manafort, Donald Trump’s former campaign manager, stood trial for tax and bank fraud charges yesterday, with prosecutors saying he orchestrated a multimillion-dollar conspiracy to evade United States tax and banking laws, leaving behind a trail of lies as he lived a lavish lifestyle.
Manafort’s defence opened its first argument by laying the blame squarely at another former Trump campaign official — Rick Gates, Manafort’s former deputy.
Gates has already pleaded guilty to charges of bank fraud in a plea deal and is likely to be a key witness for the prosecution.
This trial is the first real test for the Russia investigation, which is examining links between Trump campaign figures and the Kremlin.
Robert Mueller, the special counsel leading the probe, claims Manafort received US$60 million ($88.3m) for political consulting and lobbying work in Ukraine but failed to declare a high percentage of it to the taxman.
Manafort, 69, is also accused of lying to banks to obtain millions of dollars more in loans after his employer, the pro-Russian party of Ukrainian President Viktor Yanukovych, lost power in 2014, and the income source dried up.
Prosecutor Uzo Asonye told the jury that Manafort considered himself above the law as he funnelled tens of millions of dollars through offshore accounts. That “secret income” was used to pay for personal expenses such as a US$21,000 watch, a US$15,000 jacket made of ostrich and more than US$6m worth of real estate paid for in cash, Asonye said.
Prosecutors described the Ukrainian President as Manafort’s “golden goose”.
The prosecutors claimed Manafort sought to “keep his hands clean” by funnelling the vast sums he was making into foreign bank accounts in Cyprus and St Vincents to evade taxes.
The defence sought to portray Manafort as a talented political consultant who simply placed his trust in the wrong man.
Characterising the case as one of “taxes and trust”, Manafort’s lawyer Thomas Zehnle dismissed his failure to disclose wealth sources as failing “to check a box”.
“Paul Manafort travels in circles most people will never know and a great deal of money was made in Ukraine,” he told the court.
“We don’t contend that he spent a lot of money on things most people can only dream of.”
Zehnle went on: “Here’s here because of one man — Rick Gates.”
He told jurors that Gates “filled the operational and finance role” while Manafort was “busy working with lucrative contracts”.
“He trusted Rick Gates,” he added. Manafort’s legal team, which filled two rows, had previously unsuccessfully argued he could not have a fair trial just a few kilometres from the nation’s capital.
Outside the courthouse a handful of protesters had gathered carrying placards reading “you should be in jail”.
In the tightly packed court room, Judge T. S. Ellis reminded jurors that Manafort was viewed as innocent until prosecutors proved otherwise.
The political guru entered Alexandria’s district court in a smart black suit, supported by his wife and friend, and flashed a quick smile to waiting reporters.
Manafort, who chaired Trump’s presidential campaign from March to August 2016, has spent the last few weeks in jail after his bail was revoked over allegations of witness tampering.
The trial is being closely watched in Washington, where the Russia investigation has divided opinion.
Trump’s supporters argue it is a politically-motivated witch hunt. Meanwhile, a failed first attempt at a prosecution could weaken support for Mueller and his team.