Prosecutors Sum Up Case Against Paul Manafort, Alleging Lies, False Documents, Hidden Cash --Update
August 15 2018 - 2:32PM
Dow Jones News
By Del Quentin Wilber and Aruna Viswanatha
ALEXANDRIA, Va. -- Federal prosecutors Thursday made their final
argument to jurors that former Trump campaign chairman Paul
Manafort was a liar who cheated the government on his taxes and
bilked banks on fraudulent loans to help pay for a life of
expensive suits, luxury cars and manicured hedges.
"Mr. Manafort lied to keep more money when he had it, and to get
more money when he didn't," prosecutor Greg Andres said in Mr.
Manafort's trial on tax and bank fraud charges.
Mr. Manafort's is the first trial to emerge from special counsel
Robert Mueller's investigation into Russian interference in the
2016 election.
In taking jurors on a tour of financial records, Mr. Andres
highlighted testimony from an Federal Bureau of Investigation
accountant who tracked payments from Mr. Manafort's clients in
Ukraine, where he did political work, to offshore bank accounts and
then to vendors.
Over five years, Mr. Andres said, the longtime political
consultant wired more than $15 million to tailors, rug shops, car
dealers and contractors. That money never appeared as income on his
tax returns, nor did Mr. Manafort disclose those funds to his own
bookkeepers and accountants.
"Why would Mr. Manafort lie to his bookkeeper and tax
preparers?" Mr. Andres asked. "Those questions answer themselves.
He wanted to hide that money and avoid paying taxes... Ask yourself
why did he pay [his bookkeeper] $100,000 to pay his bills and then
pay those vendors himself?"
Mr. Andres took pains to distance the case from one of his main
witnesses, Richard Gates, a longtime employee of Mr. Manafort who
has been characterized as a liar by the defense team. Mr. Gates
pleaded guilty in the case and to lying to federal agents as part
of a deal with Mr. Mueller's office. He testified that he helped
Mr. Manafort avoid paying taxes on the overseas income and helped
him use misleading documents to enable Mr. Manafort to obtain bank
loans when his company hit hard times.
Mr. Manafort's defense team will speak to the 12 jurors later in
the afternoon, and the jury should begin deliberations by
evening.
The defense says the case is based on lies by Mr. Gates, who
admitted to a litany of misconduct including embezzling hundreds of
thousands of dollars from his former boss. Mr. Gates's testimony
lasted three days, during which he was subjected to withering
cross-examination in which he admitted to additional wrongdoing
Mr. Andres didn't bring up Mr. Gates until more than half way
into his closing remarks. After laying out emails, memos and other
documentary evidence for about an hour, Mr. Andres pointed out that
he hadn't referred to Mr. Gates yet.
"The evidence before you is enough" to convict Mr. Manafort on
the tax charges, Mr. Andres said. "The star witness in this case is
the documents."
Over the past two weeks at trial, prosecutors presented a series
of witnesses who worked with and for Mr. Manafort, describing him
as a successful political strategist who earned some $60 million
working for Ukrainian politicians in the early 2010s. They said he
earned the money in Cyprus bank accounts, but hid more than $15
million of it from tax authorities and instead wired it to pay for
personal expenses and real estate. They have also described Mr.
Manafort as falling into desperate financial straits by 2015, as
that income dried up, and he turned to multiple U.S. banks for
millions of dollars in loans.
In his closing presentation, Mr. Andres focused in part on the
allegations of bank fraud, walking jurors through a series of loan
applications Mr. Manafort submitted between 2015 and 2017 that were
"riddled with false statements," Mr. Andres said.
U.S. District Judge T.S. Ellis's frequent interruptions and
criticisms of prosecutors have hung over much of the trial, but
Judge Ellis interjected into Mr. Andres's more than 90
minute-presentation only once, to ask if he wanted to save some
time for rebuttal.
Write to Del Quentin Wilber at del.wilber@wsj.com and Aruna
Viswanatha at Aruna.Viswanatha@wsj.com
(END) Dow Jones Newswires
August 15, 2018 14:17 ET (18:17 GMT)
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