Paul Manafort lied, schemed for lavish life, court told

Paul Manafort orchestrated a multimillion-dollar conspiracy to evade US tax and banking laws, according to prosecutors.

Former Trump campaign manager Paul Manafort in Washington in June. Picture: AFP

Former Trump campaign chairman Paul Manafort orchestrated a multi-million-dollar conspiracy to evade US tax and banking laws, leaving behind a trail of lies as he lived a lavish lifestyle, according to prosecutors.

A “secret income” was allegedly used to pay for personal ­expenses such as a $US21,000 watch, a $US15,000 jacket made of ostrich and more than $US6 million worth of real estate paid for in cash. Prosecutor Uzo Asonye told the jury during his opening statement yesterday that Mr Manafort considered himself above the law as he funnelled tens of millions of dollars through offshore accounts.

“A man in this courtroom ­believed the law did not apply to him — not tax law, not banking law,” Mr Asonye said as he sketched out the evidence gathered by special counsel Robert Mueller in Mr Manafort’s bank fraud and tax evasion trial in the Alexandria Federal Court in ­Virginia.

Graphic: Who is Paul Manafort?

The trial is the first arising from Mr Mueller’s investigation into potential ties between Donald Trump’s presidential campaign and Russia. It opened with extraordinary anticipation amid unresolved questions about whether Trump associates co-ordinated with the Kremlin to tip the election in the President’s favour.

But it was clear from the outset that the case would not address that question: prosecutors did not once reference Mr Manafort’s work for the Trump campaign nor mention Mr Mueller’s broader and ongoing investigation into Russian election interference.

Mr Manafort was described by his defence lawyer as a hugely successful international political consultant who left the details of his finances to others. He relied on a team of financial experts to keep track of the millions of dollars he earned from his Ukrainian political work and to ensure that that money was being properly reported, lawyer Thomas Zehnle said.

He especially trusted business associate Rick Gates, who pleaded guilty in Mr Mueller’s investigation and is now the government’s star witness. But that trust was misplaced, Mr Zehnle said in an opening statement that made clear that undermining the credibility of Mr Gates — a former Trump campaign aide who spent years working for Mr Manafort in Ukraine — is central to the ­defence strategy.

Mr Zehnle warned jurors that Mr Gates could not be trusted and was the type of witness who would say anything he could to save himself from a long prison sentence and a crippling financial penalty.

Mr Manafort, who has been jailed for nearly two months, wore a black suit and appeared fully ­engaged in his defence, whispering with his lawyers and scribbling notes at the start of a trial expected to last two weeks.

Democratic strategist Tad ­Devine testified about his collaborations with Mr Manafort on ­behalf of Ukrainian presidential candidate Viktor Yanukovych and his Party of Regions, saying Mr Manafort had run a disciplined, professional campaign that contributed to his candidate’s victory.

Central to the government’s case are allegations that Mr Manafort funnelled more than $US60m in proceeds from his Ukrainian political consulting through offshore accounts, including in ­Cyprus, and hid a “significant” portion of it from the taxman.

He created “bogus” loans, falsified documents and lied to his tax adviser and bookkeeper to conceal the money, which he obtained from Ukrainian oligarchs through a series of shell company transfers and later from fraudulently ­obtained bank loans in the US, prosecutors said.

Defence lawyers also sought to address head-on Mr Manafort’s wealth and the images of a gaudy lifestyle that jurors are expected to see. “Paul Manafort travels in circles that most people will never know and he’s gotten handsomely rewarded for it,” Mr Zehnle said. “We do not dispute that.”

AP