Paul Manafort, Rick Gates Charged with Conspiracy Against US

Paul Manafort, Rick Gates Charged with Conspiracy Against US

Washington (CNN)Former Trump campaign chairman Paul Manafort and former Trump campaign official Rick Gates surrendered Monday to Justice Department special counsel Robert Mueller.

Gates, 45, is a longtime business associate of Manafort, 68, having worked together since the mid-2000s, and served as his deputy on the campaign. The two were indicted under seal on Friday, a source with direct knowledge of the matter said.

The indictment against the two men contains 12 counts: conspiracy against the United States, conspiracy to launder money, unregistered agent of a foreign principal, false and misleading US Foreign Agents Registration Act (FARA) statements, false statements, and seven counts of failure to file reports of foreign bank and financial accounts.

    The charges do not cover any activities related to the campaign, though it's possible Mueller could add additional charges.

    Manafort arrived at the FBI's Washington field office Monday morning. The two are being processed separately, according to a law enforcement official. They will later be transported to federal district court in Washington later Monday morning.

    The two are scheduled to make their initial court appearances before US District Magistrate Judge Deborah Robinson at 1:30 p.m. ET Monday.

    CNN has reached out to lawyers for Manafort and Gates.

    Dramatic new development

    The charges against two top officials from President Donald Trump's campaign signals a dramatic new phase of Mueller's wide-ranging investigation into possible collusion between the Russian government and members of Trump's team as well as potential obstruction of justice and financial crimes.

    A White House spokesman told CNN the Trump administration "may not have a response at all" regarding the charges. But a source close to the White House said, "today has zero to do with the White House," noting that the charges pertain to Manafort and Gates' business dealings.

    Gates, according to a source, accompanied Trump ally Tom Barrack to the White House several times this year.

    Manafort, whose work for former Ukrainian President Viktor Yanukovych has attracted scrutiny from federal investigators, has previously denied financial wrongdoing regarding his Ukraine-related payments, his bank accounts in offshore tax shelters and his various real-estate transactions over the years. Gates, who has also denied wrongdoing, was Manafort's longtime business associate in his lobbying firm before being tapped as his deputy on the Trump campaign.

    They are the first two officials in Trump's orbit charged in connection with the special counsel investigation, which is exploring whether Trump's actions surrounding the firing of former FBI Director James Comey amount to obstruction of justice. Mueller has taken a broad approach to his mandate that includes a focus on the financial dealings of Trump's team.

    Before the indictment, the FBI in July executed a so-called no-knock search warrant with guns drawn at Manafort's home in Alexandria, Virginia, seizing financial and tax documents, including some that had already been provided to congressional investigators.

    Manafort's Ukraine work scrutinized

    Federal investigators' interest in Manafort and Gates goes back well before the special counsel was appointed. For about a decade, Manafort worked for Yanukovych and his Russia-friendly Party of Regions. Manafort's work spurred a separate federal investigation in 2014, which examined whether he and other Washington-based lobbying firms failed to register as foreign agents for the Yanukovych regime.

    Gates joined Manafort's lobbying firm in the mid-2000s and handled projects in Eastern Europe, which later included work for Yanukovych.

    Yanukovych was ousted amid street protests in 2014, and his pro-Russian Party of Regions was accused of corruption and laundering millions of dollars out of Ukraine. The FBI sought to learn whether those who worked for Yanukovych — Manafort's firm, as well as Washington lobbying firms Mercury LLC and the Podesta Group — played a role. The Podesta Group is headed by Tony Podesta, the brother of John Podesta, the former chief of staff of the Obama White House.

    At the time, the case hinged on the failure by the US firms to register under the FARA, a law the Justice Department rarely uses to bring charges. Earlier this year, all three firms filed retroactively with the Justice Department.

    Gates once became involved in a failed business venture with Manafort and Russian oligarch Oleg Deripaska, a close ally of Russian President Vladimir Putin, according to legal filings. The plan was for Deripaska to invest $100 million in a private equity company that Manafort and Gates would manage.

     

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