Plea suggests he is likely to cooperate with special counsel’s investigation
.. Richard Gates —a former Trump campaign official who was indicted by Special Counsel Robert Mueller on tax-related charges—is expected to plead guilty as soon as Friday afternoon as part of a deal that will likely ensure his cooperation in Mr. Mueller’s investigation
.. it almost certainly means Mr. Gates would testify in any trial of his close business associate Paul Manafort
Mr. Gates’ expected guilty plea comes after two others Trump associates have admitted to criminal wrongdoing
.. As recently as two days ago, Mr. Gates has told associates he did not expect to plead guilty
Special counsel Mueller files new charges against Manafort, Gates
Paul Manafort was using fraudulently obtained loans and tax-cheating tricks to prop up his personal finances as he became chairman of the Trump campaign in 2016, according to a new 32-count indictment filed against him and his business partner Thursday.
The indictment ratchets up pressure on Manafort and his deputy, Rick Gates, who were already preparing for a trial
.. Mueller accused the men of lying on their income-tax returns and conspiring to commit bank fraud to get loans.
.. these are two fellows on a multiyear tear of lying to every bank they could find about their income. To a federal prosecutor, it’s fairly crude. It’s extensive and bold and greedy with a capital ‘G,’ but it’s not all that sophisticated.”
.. there was one hero in the special counsel’s tale — a bookkeeper who refused an alleged request by Gates to falsely inflate a revenue claim
.. they could be facing de facto life prison sentences.
.. from 2006 to 2015, Manafort, with help from Gates, avoided paying taxes on income from Ukraine by disguising it as loans from offshore corporate entities
.. using foreign bank accounts to make payments to businesses in the United States on Manafort’s behalf.
.. unidentified co-conspirator wrote that a document looked doctored and asked them to “do a clean excel doc” and send that instead.
.. When Manafort joined the Trump campaign as an adviser in early 2016, he agreed to work with no pay
.. prosecutors alleged Manafort was taking out multimillion-dollar loans in those same months, including $5.5 million that he sought in the same month he joined the campaign.
.. Manafort was under significant financial pressure even as he ascended to the top of the Trump campaign in mid-2016.
.. One bank lender “questioned Manafort about a $300,000 delinquency on his American Express card, which was more than 90 days past due. The delinquency significantly affected Manafort’s credit rating score.”
.. On Oct. 25, 2017 — just days before the first indictment was revealed — Gates submitted a false tax document for the 2013 tax year
.. Three of his lawyers had asked to leave the case
.. Thomas C. Green
.. Green is an experienced white-collar attorney with a reputation for cutting plea deals on behalf of his clients.
Mueller braces for challenges to his authority
The special counsel has won some early court victories in the Russia investigation, but with charges filed defense attorneys and others are lining up to rein in the probe.
.. “Whenever you operate in uncharted legal territory, and this would be an example, you’d expect defense lawyers to push the envelope and edges.. In a case like Manafort’s, Mueller may be wise to hand it over to DOJ for prosecution.. But Rotunda also said a court is unlikely to give a defendant standing to object to Mueller’s jurisdiction. “The only entity that could object is the DOJ,” he said... U.S. District Judge Amy Berman Jackson has proposed should go to trial starting May 7.. Jackson also told the attorneys for Mueller and the defense that she’s considering issuing a gag order that limits the public statements both sides may make about the case... Chief Judge Beryl Howell of the U.S. District Court for the District of Columbia ruled last month in the special counsel’s favor when he tried to seek grand jury testimony from an attorney for Manafort and Gates... Richard Ben-Veniste, a former Watergate prosecutor, said that he expected defense lawyers representing indicted defendants to keep on challenging Mueller’s authority and jurisdiction. “I would also expect such challenges to be unavailing,” he said, “as Mueller’s authority to act is on firm legal ground.”
Upstairs at home, with the TV on, Trump fumes over Russia indictments
But the president’s celebration was short-lived. A few minutes later, court documents were unsealed showing that George Papadopoulos, an unpaid foreign policy adviser on Trump’s campaign, pleaded guilty to making a false statement to the FBI about his efforts to broker a relationship between Trump and Russian President Vladimir Putin. The case provides the clearest evidence yet of links between Trump’s campaign and Russian officials.
.. But Trump’s anger Monday was visible to those who interacted with him, and the mood in the corridors of the White House was one of weariness and fear of the unknown.“The walls are closing in,” said one senior Republican in close contact with top staffers who spoke on the condition of anonymity to speak candidly. “Everyone is freaking out.”Trump is also increasingly agitated by the expansion of Mueller’s probe into financial issues beyond the 2016 campaign and about the potential damage to him and his family
.. Trump and his aides were frustrated that, yet again, Russia steamrolled the start of a carefully planned week of policy news. Trump is preparing to nominate a new chairman of the Federal Reserve and is scheduled to depart Friday for a high-stakes, 12-day trip across Asia, and House Republicans are planning to unveil their tax overhaul bill.
.. Away from the podium, Trump staffers fretted privately over whether Manafort or Gates might share with Mueller’s team damaging information about other colleagues. They expressed concern in particular about Gates because he has a young family, may be more stretched financially than Manafort, and continued to be involved in Trump’s political operation and had access to the White House, including attending West Wing meetings after Trump was sworn in.
.. Some White House advisers are unhappy with Thomas J. Barrack Jr., Trump’s longtime friend and chair of his inauguration, whom they hold responsible for keeping Gates in the Trump orbit long after Manafort resigned as campaign chairman in August 2016
.. The president’s inner circle on Russia matters has tightened in recent months. In addition to his lawyers, Trump has been talking mostly with Kelly and members of his family, including Melania, as well as daughter Ivanka and son-in-law Jared Kushner, both senior White House advisers. Trump also leans on two senior aides, counselor Kellyanne Conway and communications director Hope Hicks, as well as some outside friends for advice.
.. On Capitol Hill, meanwhile, some of Trump’s allies are privately revving up their own version of a counterattack against Mueller. Several top Republican legislators plan to raise questions in the coming days about the FBI’s handling of a “dossier” detailing alleged ties between Trump and Russian interests. They intend to argue that Mueller’s team has become overly reliant on a document that was funded in part by Democrats, according to two people involved in the discussions. Mueller does not appear to have relied on the dossier for the cases revealed on Monday, however.
.. When the first pair of indictments came naming Manafort and Gates, there was palpable relief inside the West Wing. The 31-page document did not name Trump, nor did it address any possible collusion between Russia and the president’s campaign.
.. Moreover, aides were simply happy that the initial batch of indictments did not include Michael Flynn
.. Flynn had been intimately involved in both the campaign and the early days of the administration, and a Flynn indictment, most staff believed, would have been far more damaging.
.. Michael Caputo, a former campaign adviser who Trump praised on Twitter Monday morning for his appearance on Fox News Channel’s “Fox & Friends,” later called the indictments “one big, huge fail.”