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Offbeat Companies controlled by Rick Gates took in cash from fraud-linked accounts

00:56  09 august  2018
00:56  09 august  2018 Source:   latimes.com

The trials of Paul Manafort, explained

  The trials of Paul Manafort, explained They aren’t about Russian interference with the presidential campaign — and they are.The first trial of special counsel Robert Mueller’s Russia investigation will kick off Tuesday, when former Trump campaign chair Paul Manafort faces a litany of charges related to financial crimes and money laundering in Virginia.

Two companies controlled by Paul Manafort’s former right-hand-man, Rick Gates , received more than 0,000 in 2015 from accounts linked to a multi-million dollar fraud scam, according to filings in a federal lawsuit. The money was connected to a scheme perpetrated by two movie producers

Rick Gates outside court in February. Mr. Gates began testifying against Paul Manafort, his mentor and former boss, on Monday.Credit Erin Schaff for The New Those counts included financial fraud and conspiracy to obstruct justice. “Mr. Manafort is disappointed of not getting acquittals all the way through.

Donald Trump wearing a suit and tie: Donald Trump, left, and Rick Gates on stage during the sound checks in Quicken Arena for the Republican National Convention on July 21, 2016 in Cleveland, Ohio. Gates is expected to plead guilty in the Russia investigation. © Mark Reinstein/Zuma Press/TNS Donald Trump, left, and Rick Gates on stage during the sound checks in Quicken Arena for the Republican National Convention on July 21, 2016 in Cleveland, Ohio. Gates is expected to plead guilty in the Russia investigation.

WASHINGTON - Two companies controlled by Paul Manafort's former right-hand-man, Rick Gates, received more than $200,000 in 2015 from accounts linked to a multimillion-dollar fraud scam, according to filings in a federal lawsuit.

The money was connected to an alleged scheme perpetrated by two movie producers, a Hollywood agent and a Republican fundraiser charged by federal prosecutors with swindling as many as nine investors out of millions of dollars. But the money didn't go to movies, instead it went to personal expenses, including homes, yacht payments and a Jaguar.

3 Takeaways After First Week of Manafort Trial

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Rick Gates , a longtime business associate of Donald Trump's former campaign chairman Paul Manafort, on Monday testified at trial that he helped Manafort file false tax returns and Trial enters second week and Rick Gates takes the stand. Andrew Buncombe New York @AndrewBuncombe.

Rick Gates , a former business associate of President Trump’s campaign chairman, Paul Manafort, has been charged along with his one-time mentor in a money laundering conspiracy. Rick Gates , an associate of Paul Manafort, the former Trump campaign chairman, in April.Credit Damon Winter/The

The money flowed in to Gates' companies during a period when Gates' and Manafort's lucrative foreign political work was starting to dry up, according to Gates testimony Tuesday in Manafort's federal trial on multiple tax and bank fraud charges brought by special counsel Robert Mueller. Manafort was President Donald Trump's campaign chairman.

It's not clear what the payments were for. Gates admitted in court Monday that he had written a letter on Brown's behalf overstating Brown's income.

Gates' lawyer, Tom Green, did not immediately respond to a message seeking comment from McClatchy.

Gates pleaded guilty earlier this year to helping Manafort avoid paying taxes on income earned overseas and lying to the FBI. Gates was offered a reduced sentence for providing assistance to the government and he is considered a crucial witness in the trial against Manafort.

Paul Manafort trial Day 5: Prosecutors may call Rick Gates today

  Paul Manafort trial Day 5: Prosecutors may call Rick Gates today Paul Manafort trial Day 5: Prosecutors may call Rick Gates todayPaul Manafort, President Trump’s onetime campaign chairman, is on trial in federal court in Alexandria on bank and tax fraud charges. Prosecutors allege he failed to pay taxes on millions he made from his work for a Russia-friendly Ukrainian political party, then lied to get loans when the cash stopped coming in.

The accounting records surfaced this year, when Serhiy A. Leshchenko, a member of Offshore Companies . While working in Ukraine, Mr. Manafort had also positioned himself to profit from The Black Sea Cable assets were controlled by a rotating cast of offshore companies that led back to

Rick Gates , the key prosecution witness in the tax and fraud trial of Paul Manafort, said his crimes were at the direction of his former partner. In stunning testimony, Gates stated he and Manafort had 15 foreign accounts they did not report to the federal government, and knew it was illegal.

One of the two Gates companies - Bade LLC - was the same entity through which the Republican National Committee paid Gates for his work on behalf of the Trump campaign. Gates also admitted Tuesday under questioning from Manafort's lawyers that he had embezzled money from one of Manafort's accounts and moved it to Bade LLC.

"We now know that Mr. Gates was in severe need of income," said Ross Delston, a D.C.-based lawyer and anti-money laundering expert.

The other entity, Map Global Holdings LLC, is controlled by both Gates and Steven Brown, one of the alleged perpetrators of the movie fraud scheme. Brown is the only one of the four conspirators who has not pleaded guilty for his alleged role in the scheme.

As McClatchy previously reported, he and Gates produced several films together and Brown also did political work with Gates and Manafort in 2012 and 2013 on behalf of the Ukrainian Party of Regions - work that Manafort and Gates failed to disclose until 2017.

Rick Gates testifies he and Manafort conspired to commit fraud, and he embezzled hundreds of thousands of dollars from Manafort

  Rick Gates testifies he and Manafort conspired to commit fraud, and he embezzled hundreds of thousands of dollars from Manafort Rick Gates on Monday took the stand in the federal fraud case against his former business partner, ex-Trump campaign chairman Paul Manafort, testifying that he and Manafort conspired to commit bank and tax fraud -- and that he embezzled hundreds of thousands of dollars from Manafort. The day ended with the judge in the case ripping into prosecutors, telling them to expedite their case.“Were you involved in criminal activity when you worked for Paul Manafort?” federal prosecutor Greg Andres asked Gates after he took the stand.“Yes,” Gates replied.“Did you commit a crime?” Andres asked.“Yes,” Gates said.

After Rick Gates provided hours of damning testimony, Paul Manafort’s lawyers fought back by attacking his character and accusing him of lying. For the prosecution, testimony by Rick Gates , a top campaign aide to President Trump, was critical to show that Paul Manafort purposefully defrauded

Paul Manafort and a former business associate, Rick Gates , were indicted. That same decade, Manafort advised the Philippine dictator, Ferdinand Marcos, on improving his image in the U.S. Manafort allegedly received million in cash from a Marcos confidante.

The 2015 payments to Bade LLC and Map Global Holdings were revealed in a lawsuit brought by one of the defrauded movie investors against lawyers who handled the finances for Brown and his alleged co-conspirators.

Mueller's team indicated in a March filing that they were aware of Gates' business relationship with Brown, but never brought charges against Gates connected to the movie fraud.

"Prosecutors don't typically overcharge the case," said Jack Blum, a lawyer and former Senate investigator who is an expert on white-collar financial crime and tax evasion. "If you've got a crook who you know has committed 100 crimes, you pick the 12 or 15 juiciest ones."

But even if Gates was given immunity from any crimes connected to the alleged movie fraud, he could still face consequences if he was involved.

"There's no way the feds could shield Mr. Gates from civil liability brought by defrauded investors," Delston said.

Visit the McClatchy Washington Bureau at www.mcclatchydc.com

Manafort’s defense team takes parting shot at Rick Gates as star witness ends testimony .
The judge overseeing the trial continued to spar with prosecutors Wednesday as witnesses said Manafort hid $15 million overseas.Load Error

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