Prosecutors say Manafort’s wealth was fueled by lies to IRS and banks

prosecutors charged that his personal fortune was propped up by years of lies to tax authorities and banks.

.. “A man in this courtroom believed the law did not apply to him,” Assistant U.S. Attorney Uzo Asonye told the jury. “Not tax law, not banking law.”

.. The defense, in rebuttal, said that Manafort was a victim of the deceptions of his former partner, now a government witness, and that any failure to pay taxes was inadvertent.

.. Manafort faces 18 charges of financial fraud, as prosecutors say he failed to pay taxes on some of the millions of dollars he made working as a strategist for a political party in Ukraine, and then lied to banks to get loans when those payments stopped.

.. Manafort collected more than $60 million between 2010 and 2014 from his Ukraine work, where President Viktor Yanuko­vych, an ally of the Kremlin

.. When Yanukovych had to flee Ukraine for Russia in 2014, Manafort’s “cash spigot” was shut off, the prosecutor said, and the political strategist set out to generate money by lying to banks on loan applications.

.. Asonye’s efforts to paint Manafort as a free-spending tax cheat were interrupted more than once by U.S. District Judge T.S. Ellis III, who noted “it isn’t a crime to be profligate in your spending.”

.. The prosecutor said the charges boil down to “one simple issue: Paul Manafort lied.”

.. Manafort’s defense lawyer Thomas Zehnle said the case was about “taxes and trust,” and that the real liar was not Manafort, but his former right-hand man, Rick Gates.

.. “Mr. Manafort placed his trust in the wrong person,” Zehnle said, arguing that his client built “one of the most successful political consulting and government relations shops in Washington,” while also working on “the global stage.”

.. Zehnle said Manafort’s work for Yanukovych was to “bring the country closer to Western democracies after decades of Soviet rule” — toward the European Union and away from Russia. That comment was met with audible sneers from a few members of the gallery. Protests in Ukraine were first triggered in late 2013 by Yanukovych’s decision to not sign an E.U. association agreement, an embrace of the West that Russia opposed.

.. Zehnle said Manafort also never intentionally deceived the IRS about his income and that his client made mistakes, not realizing he needed to file certain forms and make certain declarations.

“This is not a case where someone flew to Switzerland and stashed money in an account,” Zehnle said. The lawyer also said that earlier in the investigation, Manafort willingly sat down with FBI agents investigating the misuse of funds in Ukraine

.. Manafort’s defense strategy appears aimed at the credibility of Gates, the star witness against him, by accusing Manafort’s ­onetime protege and partner of embezzling millions of dollars.

“Rick Gates had his hand in the cookie jar, and he couldn’t take the risk that his boss might find out,” Zehnle said. He said Gates prevented other people involved in Manafort’s finances — accountants and bookkeepers — from sharing information about the accounts with each other.

.. Manafort had hired great people, he said, and had “substantial resources. . . . I was really impressed by him.”

Devine said Yanukovych won the presidency in 2010 because of the “excellent campaign that Paul ran.” Devine said he produced TV commercials and wrote speeches for Yanukovych, earning $500,000 and a bonus of $100,000 when Manafort’s client won.

.. While working on the campaign, Devine met other Manafort associates who have since come under investigation, including Gates and Konstantin Kilimnik, a Russian citizen. At the time, Devine said, Kilimnik worked as a translator. Prosecutors have said Kilimnik has ties to Russian intelligence, and they accused him and Manafort of trying to tamper with witnesses earlier this year.

Devine said Manafort was clearly the boss in his relationship with Gates, though they were partners.

“Paul was in charge,” Devine said. “Rick worked for Paul.”

Jonah Goldberg: Politics as the Crow Flies

The benefit of ideology is that it provides time-tested rules to rely upon during the inevitable chaos of everyday life.

gun-control advocates assume that if Republicans oppose “gun free” workplace rules, it’s because they think gunplay at work is okay — and not because such laws don’t work on people keen on shooting up their office

.. I have no doubt that Porter was good at his job. One hears reports about how he was a stabilizing presence in the White House and a reliable ally of the Gang of Grown-Ups in the West Wing. But it tells you something about the bunker mentality inside the White House that these allegations were simply too bad to check.

.. one of the great defenses of the Trump administration is its practicality and rejection of abstract theory and ideology

.. Part of my defense of ideology is that much of it isn’t abstract theory (

.. Different thinkers (Burke, Chesterton, Hayek, Polyani, et al.) have different terms for different kinds of knowledge that cannot be simply conveyed with words, such as “tacit,” “hidden,” or “embedded”

  • .. “Washington, D.C., is the capital of the United States” is explicit knowledge.
  • How to throw a curveball involves a lot of tacit knowledge;
  • all the variables that go into the price of a loaf of bed is embedded knowledge;
  • all of the arguments that go into why good manners are valuable is hidden knowledge.

.. it took hundreds of thousands of years of trial and error to come up with the ideas bound up in liberal democratic capitalism and modernity.

.. the supposedly abstract ideology that underlies Western civilization — on most of the left and most of the right and everywhere in between — is the greatest achievement of practicality in all of human history.

.. The benefit of ideology is that it provides time-tested rules to rely upon during the inevitable chaos of everyday life.

.. In politics, the worry is very often not that the government will knowingly do wrong but that it will take the shortest path to doing what it thinks is right. This is what Michael Oakeshott called “politics as the crow flies.”

.. For the last decade, at least, conservatives have insisted that they were ideologically opposed to precisely the sort of turd burger we saw getting sizzled on the congressional grill this week.

.. the tea parties were in no small way a delayed backlash against the profligate spending of George W. Bush as much as they were a backlash against Barack Obama. The psychological reasoning boiled down to: “We felt we had to put up with the crap under Bush because of the war or because he was our guy, but we’ll be damned if we’re gonna put up with it from this guy too.

.. More broadly, the president doesn’t like entitlement reform, as he has made clear many times.