Grand Jury Returns New 32-Count Indictment Against Manafort, Gates

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Paul Manafort Credit: Photo: Diego M. Radzinschi/ALM[/caption] Robert Mueller, the special counsel, brought new charges Thursday against former Trump campaign chairman Paul Manafort and his deputy, Rick Gates. A grand jury in Alexandria, Virginia, returned a 32-count indictment that includes charges of bank fraud and tax fraud. Manafort and Gates were charged with 12 counts, including money laundering and failure to register as a foreign agent, in October. Both men pleaded not guilty, and U.S. District Judge Amy Berman Jackson has not yet set a trial date for the case in Washington, D.C. Lawyers for Manafort and Gates did not immediately respond to a request for comment. In a status report filed in the district court in Washington, D.C., lawyers for the special counsel said they were prepared to bring the new charges in D.C., but that one of the defendants would not waive his right to venue. The document did not specify which defendant it was. "If venue had been waived, the defendants would have faced a single indictment in one district, and not two indictments in adjacent districts," the document said. The new charges include 16 counts related to false individual income tax returns, seven counts of failure to file reports of foreign bank and financial accounts, five counts of bank fraud conspiracy and four counts of bank fraud. The charges allege Manafort and Gates made millions lobbying on behalf of the government of Ukraine, Ukrainian President Victor Yanukovych and his political party, and hid the income form U.S. authorities. They disguised the income as loans and by making payments to offshore accounts, the indictment said. After Yanukovych fled Ukraine for Russia, their income declined, and the indictment claims the two men fraudulently obtained loans by failing to disclose existing debt and falsely inflating their income. Overall, the indictment said more than $75 million flowed through the offshore accounts. It alleges Manafort "used his hidden overseas wealth to enjoy a lavish lifestyle," spending millions on "luxury goods" for himself and extended family, and to purchase multi-million dollar homes. Gates used money to pay for his mortgage, children's tuition and interior decoration of his home. A spokesman for the special counsel said he did not have any information on when an arraignment will be held. Gates is due in court in D.C. Friday morning, where Jackson will hold a sealed hearing on a motion by his lawyers, Shanlon Wu of Wu, Grohovsky & Whipple, Walter Mack of Doar Rieck Kaley & Mack and Annemarie McAvoy of McAvoy Consulting, to withdraw from the case. Sidley Austin partner Tom Green, also entered an appearance in Gates' case in D.C. Thursday. Green has reportedly been working with Gates for weeks, but had yet to enter his appearance in court. Press reports earlier this week indicated Gates may switch his not guilty plea on the earlier charges, though he has yet to do so. Green did not yet respond to a request for comment. The new indictment come just days after Mueller charged Alex Van Der Zwaan, a former associate at Skadden, Arps, Slate, Meagher & Flom, with one count of lying to investigators. the son of a Russian oligarch named German Kahn, pleaded guilty Tuesday. Van der Zwaan admitted to lying about his communications with Gates and an unnamed person in 2016 about a 2012 report he and other Skadden lawyers worked on. The report was on the trial of former Ukrainian Prime Minister Yulia Tymoshenko, an adversary of Manafort's client, Yanukovych. Manafort reportedly helped arrange for Skadden to conduct the report. [falcon-embed src="embed_1"] Read more:Former Skadden Associate Pleads Guilty in Mueller ProbeMueller's Team Charges Russian Nationals in US Election InterferenceDOJ's Civil Division, Citing 'Surge' in Lawsuits, Wants 22 More LawyersDOJ’s Political Appointees Missing as Career Lawyers Defend Mueller ProbeWhat to Know After Latest Hearing in Paul Manafort's Criminal Case