A federal grand jury unsealed new charges against
ex-Trump campaign chairman Paul Manafort in Special Counsel Robert
Mueller’s Russia probe on Friday, as Manafort blasted his former
business partner Rick Gates for pleading guilty in the case.
Mueller’s office unsealed a
superseding indictment against the 68-year-old Manafort, including
conspiracy against the United States, conspiracy to launder money,
failing to register as an agent of a foreign principal, giving false and
misleading Foreign Agents Registration Act statements and providing
other false statements.
Meanwhile, Gates pleaded guilty Friday afternoon to
federal conspiracy and false-statement charges at a Washington
courthouse, in a strong indication he plans to cooperate with the probe.
As Gates entered his plea, Manafort issued a brief statement maintaining his innocence and swiping at his former associate.
“Notwithstanding that Rick Gates pled today, I continue
to maintain my innocence," Manafort said in a statement. "I had hoped
and expected my business colleague would have had the strength to
continue the battle to prove our innocence. For reasons yet to surface
he chose to do otherwise."
Both Gates and Manafort were in business together and worked on the Trump campaign.
A federal grand jury in Virginia on Thursday had
returned a 32-count indictment against Gates and Manafort on tax evasion
and bank fraud charges.
"This does not alter my commitment to defend myself
against the untrue piled up charges contained in the indictments against
me,” Manafort said of Gates' plea.
A superseding criminal complaint says Gates is charged with conspiracy against the United States between 2006 and 2017.
Gates is also accused of making a false statement Feb. 1
to the Special Counsel’s Office and the FBI about a March 2013 meeting
between Manafort, a lobbyist and a member of Congress.
Gates could become a key cooperator for Mueller with
intimate knowledge of Manafort's years of political consulting work in
Ukraine, as well as other events that have sparked the interest of
federal investigators.
United States District Judge Amy Berman Jackson said
Gates could face 48 to 71 months in prison and a fine of $20,000 to
$200,000. The plea documents say Gates “shall cooperate fully,
truthfully, completely, and forthrightly” with the special counsel’s
office.
According to the complaint, Gates and Manafort worked
as unregistered agents of the government of Ukraine, generating tens of
millions of dollars in income.
The White House on Friday distanced itself from Gates.
“This indictment has nothing to do with the White House
or the president,” deputy White House communications director Mercedes
Schlapp said Friday on Fox News. “As you know, we have been cooperative
with the special counsel. And as we continue to see, there's no evidence
of collusion, no evidence of wrongdoing. “
Prosecutors accuse Gates and Manafort of hiding
payments from Ukraine by laundering money through “scores of United
States and foreign corporations, partnerships, and bank accounts.”
MANAFORT, GATES INDICTED ON NEW TAX AND BANK FRAUD CHARGES
Millions were funnelled into foreign companies and bank
accounts in Cyprus, Saint Vincent and the Grenadines and the
Seychelles, the complaint says. But the duo falsely claimed they had no
foreign bank accounts, prosecutors said.
The complaint says Gates and Manafort were required
under the law to report their work for foreign governments but did not
do so.
Prosecutors also accuse Gates and Manafort of
responding with a "series of false and misleading statements” when the
Department of Justice asked about their activities in 2016.
Manafort used his hidden overseas wealth to enjoy a
lavish lifestyle in the United States, without paying taxes on that
income, the complaint says. Gates is also accused of using money from
offshore accounts to pay for personal expenses, including his mortgage,
children’s tuition and interior decorating of his Virginia residence.
Gates transferred more than $3 million from offshore accounts to other accounts under his control, according to the complaint.
It says more than $75 million flowed through Gates and Manafort’s offshore accounts.
It would mark the fifth publicly known guilty plea in
the special counsel probe into possible collusion between the Trump
campaign and the Kremlin during the 2016 campaign.
Gates had access at the highest levels of the campaign
at the same time that Manafort, Donald Trump Jr. and Jared Kushner met
with a team of Russians in Trump Tower in June 2016.
He was also in the top ranks of the campaign when
then-Sen. Jeff Sessions held a pair of undisclosed meetings with Russian
ambassador to the U.S. Sergey Kislyak.
For a few months in 2016, Gates was indispensable to
Trump, leading the ground effort to help Trump win the Republican
nomination and flying from state to state to secure Republican delegates
in a scramble that lasted all the way until the Republican National
Convention in Cleveland.
But his power and influence waned once Trump fired Manafort in August 2016.
The plea also comes quickly on the heels of a stunning
indictment last week that laid out a broad operation of election
meddling by Russia, which began in 2014, and employed fake social media
accounts and on-the-ground politicking to promote the campaign of Donald
Trump, disparage Hillary Clinton and sow division and discord widely
among the U.S. electorate.
Gates initially pleaded not guilty and has been facing
up to 12.5 years in jail -- based on a 12-count indictment handed up in
October accusing him and Manafort of acting as unregistered foreign
agents and conspiring to launder millions of dollars they earned while
working on behalf of a pro-Russian Ukrainian political party.