Superseding Indictment of Manafort and Gates

by Robert S. Mueller III

UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA

UNITED STATES OF AMERICA

v.

PAUL J. MANAFORT, JR., and

RICHARD W. GATES III,

Defendants.

Crim. No. 17-201 (ABJ)

STATUS REPORT

The United States of America, by and through Special Counsel Robert S. Mueller, III, respectfully submits this status report to apprise the Court of a recent development related to this matter.

1. On Thursday, February 22, 2018, a grand jury sitting in the Eastern District of Virginia, filed a 32-count indictment charging defendants Paul J. Manafort, Jr., and Richard W. Gates III as follows:

Count	Charge	Defendant
1	Subscribing to False United States Individual Income Tax Returns (2010) (26 U.S.C. § 7206(1); 18 U.S.C. § 2)	Manafort
2	Subscribing to False United States Individual Income Tax Returns (2011) (26 U.S.C. § 7206(1); 18 U.S.C. § 2)	Manafort
3	Subscribing to False United States Individual Income Tax Returns (2012) (26 U.S.C. § 7206(1); 18 U.S.C. § 2)	Manafort
4	Subscribing to False United States Individual Income Tax Returns (2013) (26 U.S.C. § 7206(1); 18 U.S.C. § 2)	Manafort
5	Subscribing to False United States Individual Income Tax Returns (2014) (26 U.S.C. § 7206(1); 18 U.S.C. § 2)	Manafort

Count	Charge	Defendant
6	Assisting in the Preparation of False United States Individual Income (2010) (26 U.S.C. § 7206(2))	Gates
7	Assisting in the Preparation of False United States Individual Income (2011) (26 U.S.C. § 7206(2))	Gates
8	Assisting in the Preparation of False United States Individual Income (2012) (26 U.S.C. § 7206(2))	Gates
9	Assisting in the Preparation of False United States Individual Income (2013) (26 U.S.C. § 7206(2))	Gates
10	Assisting in the Preparation of False United States Individual Income (2014) (26 U.S.C. § 7206(2))	Gates
11	Failure To File Reports Of Foreign Bank And Financial Accounts (2011) (31 U.S.C. §§ 5314 and 5322(a); 18 U.S.C. § 2)	Manafort
12	Failure To File Reports Of Foreign Bank And Financial Accounts (2012) (31 U.S.C. §§ 5314 and 5322(a); 18 U.S.C. § 2)	Manafort
13	Failure To File Reports Of Foreign Bank And Financial Accounts (2013) (31 U.S.C. §§ 5314 and 5322(a); 18 U.S.C. § 2)	Manafort
14	Failure To File Reports Of Foreign Bank And Financial Accounts (2014) (31 U.S.C. §§ 5314 and 5322(a); 18 U.S.C. § 2)	Manafort
15	Subscribing to False United States Individual Income Tax Returns (2010) (26 U.S.C. § 7206(1); 18 U.S.C. § 2)	Gates
16	Subscribing to False United States Individual Income Tax Returns (2011) (26 U.S.C. § 7206(1); 18 U.S.C. § 2)	Gates
17	Subscribing to False United States Individual Income Tax Returns (2012) (26 U.S.C. § 7206(1); 18 U.S.C. § 2)	Gates
18	Subscribing to False United States Individual Income Tax Returns (2013) (26 U.S.C. § 7206(1); 18 U.S.C. § 2)	Gates
19	Subscribing to False United States Individual Income Tax Returns	Gates

Count	Charge	Defendant
	(2014) (26 U.S.C. § 7206(1); 18 U.S.C. § 2)
20	Subscribing to a False Amended United States Individual Income Tax Return (2011) (26 U.S.C. § 7206(1); 18 U.S.C. § 2)	Gates
21	Failure To File Reports Of Foreign Bank And Financial Accounts (2011) (31 U.S.C. §§ 5314 and 5322(a); 18 U.S.C. § 2)	Gates
22	Failure To File Reports Of Foreign Bank And Financial Accounts (2012) (31 U.S.C. §§ 5314 and 5322(a); 18 U.S.C. § 2)	Gates
23	Failure To File Reports Of Foreign Bank And Financial Accounts (2013) (31 U.S.C. §§ 5314 and 5322(a); 18 U.S.C. § 2)	Gates
24	Bank Fraud Conspiracy (Lender B/$3.4 million loan) (18 U.S.C. § 1349)	Manafort Gates
25	Bank Fraud (Lender B/$3.4 million loan) (18 U.S.C. §§ 1344, 2)	Manafort Gates
26	Bank Fraud Conspiracy (Lender C / $1 million loan) (18 U.S.C. § 1349)	Manafort Gates
27	Bank Fraud (Lender C / $1 million loan) (18 U.S.C. § 1344, 2)	Manafort Gates
28	Bank Fraud Conspiracy (Lender B / $5.5 million loan) (18 U.S.C. § 1349)	Manafort Gates
29	Bank Fraud Conspiracy (Lender D / $9.5 million loan (18 U.S.C. § 1349)	Manafort Gates
30	Bank Fraud (Lender D / $9.5 million loan) (18 U.S.C. §§ 1344, 2)	Manafort Gates
31	Bank Fraud Conspiracy (Lender D / $6.5 million loan) (18 U.S.C. § 1349)	Manafort Gates
32	Bank Fraud (Lender D / $6.5 million loan) (18 U.S.C. §§ 1344, 2)	Manafort Gates

2. A copy of the indictment returned in the Eastern District of Virginia is attached (redacted to omit the signature of the foreperson).

3. The Special Counsel’s Office proceeded before the Grand Jury in the Eastern District of Virginia because, based on our current evidence, venue for these charges does not exist in the District of Columbia. Prior to instituting this criminal action, the Special Counsel’s Office met with defense counsel to go over the proof underlying the bank fraud charges (the tax charges were already the subject of charges before this Court) and to provide counsel an opportunity to present any arguments as to why these charges should not be brought. The Special Counsel's Office also alerted defense counsel for each defendant that the government was prepared to bring all of the charges before a Grand Jury in the District of Columbia, if the defendants were willing to waive venue (since otherwise we could not do so legally). If venue had been waived, the defendants would have faced a single indictment in one district, and not two indictments in adjacent districts. One defendant elected, as is his right, not to waive venue. The Special Counsel's Office accordingly has proceeded in the Eastern District of Virginia.

Respectfully submitted,

ROBERT S. MUELLER III
Special Counsel

Dated: February 22, 2018

By:

Andrew Weissmann
Greg D. Andres (D.D.C. Bar No. 459221)
Kyle R. Freeny
U.S. Department of Justice
Special Counsel's Office
950 Pennsylvania Avenue NW
Washington, DC 20530
Telephone: (202) 616-0800

Attorneys for the United States of America

IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
Alexandria Division

UNITED STATES OF AMERICA

v.

PAUL J. MANAFORT, JR.,
(Counts 1 through 5, 11 through 14, and 24 through 32)

and

RICHARD W. GATES III,
(Counts 6 through 10 and 15 through 32)

Defendants.

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CRIMINAL NO. 1:18 Cr. 83 (TSE)(S-1)

COUNTS 1–5: 26 U.S.C. § 7206(1); 18 U.S.C. §§ 2 and 3551 et seq.
Subscribing to False United States Individual Income Tax Returns

COUNTS 6–10: 26 U.S.C. § 7206(2); 18 U.S.C. § 3551 et seq.
Assisting in the Preparation of False United States Individual Income

COUNTS 11–14: 31 U.S.C. §§ 5314 and 5322(a); 18 U.S.C. §§ 2 and 3551 et seq.
Failure To File Reports Of Foreign Bank And Financial Accounts

COUNTS 15–19: 26 U.S.C. § 7206(1); 18 U.S.C. §§ 2 and 3551 et seq.
Subscribing to False United States Individual Income Tax Returns

COUNT 20: 26 U.S.C. § 7206(1); 18 U.S.C. §§ 2 and 3551 et seq.
Subscribing to a False Amended United States Individual Income Tax Return

COUNTS 21–23: 31 U.S.C. §§ 5314 and 5322(a); 18 U.S.C. §§ 2 and 3551 et seq.
Failure To File Reports Of Foreign Bank And Financial Accounts

COUNT 24: 18 U.S.C. §§ 1349 and 3551 et seq.
Bank Fraud Conspiracy

COUNT 25: 18 U.S.C. §§ 1344, 2, and 3551 et seq.
Bank Fraud

 

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COUNT 26: 18 U.S.C. §§ 1349 and 3551 et seq.
Bank Fraud Conspiracy

COUNTS 27: 18 U.S.C. §§ 1344, 2, and 3551 et seq.
Bank Fraud

COUNT 28–29: 18 U.S.C. §§ 1349 and 3551 et seq.
Bank Fraud Conspiracy

COUNT 30: 18 U.S.C. §§ 1344, 2, and 3551 et seq.
Bank Fraud

COUNT 31: 18 U.S.C. §§ 1349 and 3551 et seq.
Bank Fraud Conspiracy

COUNT 32: 18 U.S.C. §§ 1344, 2, and 3551 et seq.
Bank Fraud

FORFEITURE NOTICE

*****

SUPERSEDING INDICTMENT
February 2018 Term – At Alexandria, Virginia

THE GRAND JURY CHARGES THAT:

Introduction

At all times relevant to this Superseding Indictment:

1. Defendants PAUL J. MANAFORT, JR. (MANAFORT) and RICHARD W. GATES III (GATES) served for years as political consultants and lobbyists. Between at least 2006 and 2015, MANAFORT and GATES acted as unregistered agents of a foreign government and foreign political parties. Specifically, they represented the Government of Ukraine, the President of Ukraine (Victor Yanukovych, who was President from 2010 to 2014), the Party of Regions (a Ukrainian political party led by Yanukovych), and the Opposition Bloc (a successor to the Party of Regions after Yanukovych fled to Russia).

2. MANAFORT and GATES generated tens of millions of dollars in income as a result of their Ukraine work. From approximately 2006 through the present, MANAFORT and GATES engaged in a scheme to hide income from United States authorities, while enjoying the use of the money. During the first part of the scheme between approximately 2006 and 2015, MANAFORT, with GATES’ assistance, failed to pay taxes on this income by disguising it as alleged “loans” from nominee offshore corporate entities and by making millions of dollars in unreported payments from foreign accounts to bank accounts they controlled and United States vendors. MANAFORT also used the offshore accounts to purchase United States real estate, and MANAFORT and GATES used the undisclosed income to make improvements to and refinance their United States properties.

3. In the second part of the scheme, between approximately 2015 and at least January 2017, when the Ukraine income dwindled after Yanukovych fled to Russia, MANAFORT, with the assistance of GATES, extracted money from MANAFORT’s United States real estate by, among other things, using those properties as collateral to obtain loans from multiple financial institutions. MANAFORT and GATES fraudulently secured more than twenty million dollars in loans by falsely inflating MANAFORT’s and his company’s income and by failing to disclose existing debt in order to qualify for the loans.

4. In furtherance of the scheme, MANAFORT and GATES funneled millions of dollars in payments into numerous foreign nominee companies and bank accounts, opened by them and their accomplices in nominee names and in various foreign countries, including Cyprus, Saint Vincent & the Grenadines (Grenadines), and the Seychelles. MANAFORT and GATES hid the existence and ownership of the foreign companies and bank accounts, falsely and repeatedly reporting to their tax preparers and to the United States that they had no foreign bank accounts.

5. In furtherance of the scheme, MANAFORT used his hidden overseas wealth to enjoy a lavish lifestyle in the United States, without paying taxes on that income. MANAFORT, without reporting the income to his tax preparer or the United States, spent millions of dollars on luxury goods and services for himself and his extended family through payments wired from offshore nominee accounts to United States vendors. MANAFORT also used these offshore accounts to purchase multi-million dollar properties in the United States and to improve substantially another property owned by his family.

6. In furtherance of the scheme, GATES used millions of dollars from these offshore accounts to pay for his personal expenses, including his mortgage, children’s tuition, and interior decorating and refinancing of his Virginia residence.

7. In total, more than $75,000,000 flowed through the offshore accounts. MANAFORT, with the assistance of GATES, laundered more than $30,000,000, income that he concealed from the United States Department of the Treasury (Treasury), the Department of Justice, and others. GATES obtained more than $3,000,000 from the offshore accounts, income that he too concealed from the Treasury, the Department of Justice, and others.

Relevant Individuals And Entities

8. MANAFORT was a United States citizen. He resided in homes in Virginia, Florida, and Long Island, New York.

9. GATES was a United States citizen. He resided in Virginia.

10. In 2005, MANAFORT and another partner created Davis Manafort Partners, Inc. (DMP) to engage principally in political consulting. DMP had staff in the United States, Ukraine, and Russia. In 2011, MANAFORT created DMP International, LLC (DMI) to engage in work for foreign clients, in particular political consulting, lobbying, and public relations for the Government of Ukraine, the Party of Regions, and members of the Party of Regions. DMI was a partnership solely owned by MANAFORT and his spouse. GATES worked for both DMP and DMI and served as MANAFORT’s right-hand man.

11. The Party of Regions was a pro-Russia political party in Ukraine. Beginning in approximately 2006, it retained MANAFORT, through DMP and then DMI, to advance its interests in Ukraine, the United States, and elsewhere, including the election of its slate of candidates. In 2010, its candidate for President, Yanukovych, was elected President of Ukraine. In 2014, Yanukovych fled Ukraine for Russia in the wake of popular protests of widespread governmental corruption. Yanukovych, the Party of Regions, and the Government of Ukraine were MANAFORT, DMP, and DMI clients.

12. MANAFORT and GATES owned or controlled the following entities, which were used in the scheme (the MANAFORT–GATES entities):

Domestic Entities

Entity Name	Date Created	Incorporation Location
Bade LLC (RG)	January 2012	Delaware

Entity Name	Date Created	Incorporation Location
Daisy Manafort, LLC (PM)	August 2008 March 2011	Virginia Florida
Davis Manafort International LLC (PM)	March 2007	Delaware
DMP (PM)	March 2005 March 2011	Virginia Florida
Davis Manafort, Inc. (PM)	October 1999 November 1999	Delaware Virginia
DMI (PM)	June 2011 March 2012	Delaware Florida
Global Sites LLC (PM, RG)	July 2008	Delaware
Jemina LLC (RG)	July 2008	Delaware
Jesand Investment Corporation (PM)	April 2002	Virginia
Jesand Investment Corporation (PM)	March 2011	Florida
John Hannah, LLC (PM)	April 2006 March 2011	Virginia Florida
Jupiter Holdings Management, LLC (RG)	January 2011	Delaware
Lilred LLC (PM)	December 2011	Florida
LOAV Ltd. (PM)	April 1992	Delaware
MC Brooklyn Holdings, LLC (PM)	November 2012	New York
MC Soho Holdings, LLC (PM)	January 2012 April 2012	Florida New York
Smythson LLC (also known as Symthson LLC) (PM, RG)	July 2008	Delaware

Cypriot Entities

Entity Name	Date Created	Incorporation Location
Actinet Trading Limited (PM, RG)	May 2009	Cyprus
Black Sea View Limited (PM, RG)	August 2007	Cyprus
Bletilla Ventures Limited (PM, RG)	October 2010	Cyprus
Cavenari Investments Limited (RG)	December 2007	Cyprus
Global Highway Limited (PM, RG)	August 2007	Cyprus
Leviathan Advisors Limited (PM, RG)	August 2007	Cyprus
LOAV Advisors Limited (PM, RG)	August 2007	Cyprus
Lucicle Consultants Limited (PM, RG)	December 2008	Cyprus
Marziola Holdings Limited (PM)	March 2012	Cyprus
Olivenia Trading Limited (PM, RG)	March 2012	Cyprus
Peranova Holdings Limited (Peranova)	June 2007	Cyprus
Serangon Holdings Limited (PM, RG)	January 2008	Cyprus
Yiakora Ventures Limited (PM)	February 2008	Cyprus

Other Foreign Entities

Entity Name	Date Created	Incorporation Location
Global Endeavour Inc. (also known as Global Endeavor Inc.) (PM)	Unknown	Grenadines
Jeunet Ltd. (PM)	August 2011	Grenadines
Pompolo Limited (PM, RG)	April 2013	United Kingdom

13. The Internal Revenue Service (IRS) was a bureau in the Treasury responsible for administering the tax laws of the United States and collecting taxes owed to the Treasury.

The Tax Scheme

MANAFORT And GATES’ Wiring Money From Offshore Accounts Into The United States

14. In order to use the money in the offshore nominee accounts of the MANAFORT–GATES entities without paying taxes on it, MANAFORT and GATES caused millions of dollars in wire transfers from these accounts to be made for goods, services, and real estate. They did not report these transfers as income.

15. From 2008 to 2014, MANAFORT caused the following wires, totaling over $12,000,000, to be sent to the vendors listed below for personal items. MANAFORT did not pay taxes on this income, which was used to make the purchases.

Payee

Transaction Date

Originating Account Holder

Country of Origination

Amount of Transaction

Vendor A (Home Improvement Company in the Hamptons, New York)

6/10/2008

LOAV Advisors Limited

Cyprus

$107,000

6/25/2008

LOAV Advisors Limited

Cyprus

$23,500

7/7/2008

LOAV Advisors Limited

Cyprus

$20,000

8/5/2008

Yiakora Ventures Limited

Cyprus

$59,000

9/2/2008

Yiakora Ventures Limited

Cyprus

$272,000

10/6/2008

Yiakora Ventures Limited

Cyprus

$109,000

10/24/2008

Yiakora Ventures Limited

Cyprus

$107,800

11/20/2008

Yiakora Ventures Limited

Cyprus

$77,400

12/22/2008

Yiakora Ventures Limited

Cyprus

$100,000

1/14/2009

Yiakora Ventures Limited

Cyprus

$9,250

1/29/2009

Yiakora Ventures Limited

Cyprus

$97,670

2/25/2009

Yiakora Ventures Limited

Cyprus

$108,100

4/16/2009

Yiakora Ventures Limited

Cyprus

$94,394

5/7/2009

Yiakora Ventures Limited

Cyprus

$54,000

5/12/2009

Yiakora Ventures Limited

Cyprus

$9,550

6/1/2009

Yiakora Ventures Limited

Cyprus

$86,650

6/18/2009

Yiakora Ventures Limited

Cyprus

$34,400

7/31/2009

Yiakora Ventures Limited

Cyprus

$106,000

Payee	Transaction Date	Originating Account Holder	Country of Origination	Amount of Transaction
	8/28/2009	Yiakora Ventures Limited	Cyprus	$37,000
	9/23/2009	Yiakora Ventures Limited	Cyprus	$203,500
	10/26/2009	Yiakora Ventures Limited	Cyprus	$38,800
	11/18/2009	Global Highway Limited	Cyprus	$130,906
	3/8/2010	Global Highway Limited	Cyprus	$124,000
	5/11/2010	Global Highway Limited	Cyprus	$25,000
	7/8/2010	Global Highway Limited	Cyprus	$128,000
	7/23/2010	Leviathan Advisors Limited	Cyprus	$26,500
	8/12/2010	Leviathan Advisors Limited	Cyprus	$138,900
	9/2/2010	Yiakora Ventures Limited	Cyprus	$31,500

Global Highway Limited Yiakora Ventures Limited Leviathan Advisors Limited Global Highway Limited Global Highway Limited Leviathan Advisors Limited Leviathan Advisors Limited Global Highway Limited Leviathan Advisors Limited Leviathan Advisors Limited Leviathan Advisors Limited Leviathan Advisors Limited Global Highway Limited Global Highway Limited Global Highway Limited Global Highway Limited Global Highway Limited Leviathan Advisors Limited Global Highway Limited Global Highway Limited Global Highway Limited Global Highway Limited Global Highway Limited Peranova Lucicle Consultants Limited Lucicle Consultants Limited Lucicle Consultants Limited Lucicle Consultants Limited 9

Country of Origination Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus Cyprus

Amount of Transaction $37,000 $203,500 $38,800 $130,906 $124,000 $25,000 $28,000 $26,500 $138,900 $31,500 $67,600 $107,600 $31,500 $46,160 $36,500 $26,800 $195,000 $95,000 $6,500 $70,000 $39,900 $95,000 $22,000 $9,300 $74,000 $22,300 $6,100 $17,800 $29,800 $42,600 $22,300 $75,000 $22,300 $37,500 $50,000 $79,000 $45,000 $11,860

Payee

Vendor B (Home Automation, Lighting and Home Entertainment Company in Florida)

Transaction Date 7/9/2012 7/18/2012 8/7/2012 9/27/2012 11/20/2012 12/20/2012 1/29/2013 3/12/2013 8/29/2013 11/13/2013 11/26/2013 12/6/2013 12/12/2013 4/22/2014 8/18/2014 3/22/2011 3/28/2011 4/27/2011 5/16/2011 11/15/2011 11/23/2011 2/28/2012 10/31/2012 12/17/2012 1/15/2013 1/24/2013 2/12/2013 2/26/2013 7/15/2013 11/5/2013

Vendor C (Antique Rug Store in Alexandria, Virginia)

10/7/2008 3/17/2009 4/16/2009 4/27/2009 5/7/2009

Originating Account Country of Holder Origination Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Global Endeavour Inc. Grenadines Global Endeavour Inc. Grenadines Global Endeavour Inc. Grenadines Global Endeavour Inc. Grenadines Grenadines Global Endeavour Inc. Global Endeavour Inc. Grenadines Grenadines Global Endeavour Inc. Vendor A Total Leviathan Advisors Limited Cyprus Leviathan Advisors Limited Cyprus Leviathan Advisors Limited Cyprus Leviathan Advisors Limited Cyprus Global Highway Limited Cyprus Global Highway Limited Cyprus Global Highway Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus United Pompolo Limited Kingdom Global Endeavour Inc. Grenadines Vendor B Total Yiakora Ventures Limited Cyprus Yiakora Ventures Limited Cyprus Yiakora Ventures Limited Cyprus Yiakora Ventures Limited Cyprus Yiakora Ventures Limited Cyprus 10

Amount of Transaction $10,800 $88,000 $48,800 $100,000 $298,000 $55,000 $149,000 $375,000 $200,000 $75,000 $80,000 $130,000 $90,000 $56,293 $34,660 $5,434,793 $12,000 $25,000 $12,000 $25,000 $17,006 $11,000 $6,200 $290,000 $160,600 $194,000 $6,300 $51,600 $260,000 $175,575 $73,000 $1,319,281 $15,750 $46,200 $7,400 $65,000 $210,000

Payee

Vendor D (Related to Vendor C) Vendor E (Men’s Clothing Store in New York)

Transaction Originating Account Date Holder 7/15/2009 Yiakora Ventures Limited 3/31/2010 Yiakora Ventures Limited 6/16/2010 Global Highway Limited

2/28/2012 Global Highway Limited

11/7/2008 2/5/2009 4/27/2009 10/26/2009 3/30/2010 5/11/2010 6/28/2010 8/12/2010 11/17/2010 2/7/2011 3/22/2011 3/28/2011 4/27/2011 6/30/2011 9/26/2011 11/2/2011 12/12/2011 2/9/2012 2/28/2012 3/14/2012 4/18/2012 5/15/2012 6/19/2012 8/7/2012 11/20/2012 12/20/2012 1/15/2013 2/12/2013 2/26/2013 9/3/2013

Country of Origination Cyprus Cyprus Cyprus Vendor C Total Cyprus

Vendor D Total Yiakora Ventures Limited Cyprus Yiakora Ventures Limited Cyprus Yiakora Ventures Limited Cyprus Yiakora Ventures Limited Cyprus Yiakora Ventures Limited Cyprus Global Highway Limited Cyprus Leviathan Advisors Limited Cyprus Leviathan Advisors Limited Cyprus Global Highway Limited Cyprus Global Highway Limited Cyprus Leviathan Advisors Limited Cyprus Leviathan Advisors Limited Cyprus Leviathan Advisors Limited Cyprus Global Highway Limited Cyprus Leviathan Advisors Limited Cyprus Global Highway Limited Cyprus Leviathan Advisors Limited Cyprus Global Highway Limited Cyprus Global Highway Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Global Endeavour Inc. Grenadines 11

Amount of Transaction $200,000 $140,000 $250,000 $934,350 $100,000 $100,000 $32,000 $22,750 $13,500 $32,500 $15,000 $39,000 $5,000 $32,500 $11,500 $24,000 $43,600 $12,000 $3,000 $24,500 $12,000 $26,700 $46,000 $2,800 $16,000 $8,000 $48,550 $7,000 $21,600 $15,500 $10,900 $7,500 $37,000 $7,000 $39,000 $81,500

Payee

Transaction Date 10/15/2013 11/26/2013 4/24/2014 9/11/2014

Vendor F (Landscaper in the Hamptons, New York)

4/27/2009 5/12/2009 6/1/2009 6/18/2009 9/21/2009 5/11/2010 6/28/2010 7/23/2010 9/2/2010 10/6/2010 10/18/2010 12/16/2010 3/22/2011 5/3/2011 6/1/2011 7/27/2011 8/16/2011 9/19/2011 10/24/2011 11/2/2011

Vendor G (Antique Dealer in New York)

9/2/2010 10/18/2010 2/28/2012 3/14/2012 2/26/2013

Vendor H (Clothing Store in Beverly Hills, California)

6/25/2008 12/16/2008 12/22/2008 8/12/2009 5/11/2010 11/17/2010

Originating Account Holder Global Endeavour Inc. Global Endeavour Inc. Global Endeavour Inc. Global Endeavour Inc.

Country of Origination Grenadines Grenadines Grenadines Grenadines Vendor E Total Yiakora Ventures Limited Cyprus Yiakora Ventures Limited Cyprus Yiakora Ventures Limited Cyprus Yiakora Ventures Limited Cyprus Yiakora Ventures Limited Cyprus Global Highway Limited Cyprus Leviathan Advisors Limited Cyprus Leviathan Advisors Limited Cyprus Yiakora Ventures Limited Cyprus Global Highway Limited Cyprus Leviathan Advisors Limited Cyprus Global Highway Limited Cyprus Leviathan Advisors Limited Cyprus Global Highway Limited Cyprus Leviathan Advisors Limited Cyprus Leviathan Advisors Limited Cyprus Leviathan Advisors Limited Cyprus Leviathan Advisors Limited Cyprus Global Highway Limited Cyprus Global Highway Limited Cyprus Vendor F Total Yiakora Ventures Limited Cyprus Leviathan Advisors Limited Cyprus Global Highway Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Vendor G Total LOAV Advisors Limited Cyprus Yiakora Ventures Limited Cyprus Yiakora Ventures Limited Cyprus Yiakora Ventures Limited Cyprus Global Highway Limited Cyprus Global Highway Limited Cyprus 12

Amount of Transaction $53,000 $13,200 $26,680 $58,435 $849,215 $34,000 $45,700 $21,500 $29,000 $21,800 $44,000 $50,000 $19,000 $21,000 $57,700 $26,000 $20,000 $50,000 $40,000 $44,000 $27,000 $13,450 $12,000 $42,000 $37,350 $655,500 $165,000 $165,000 $190,600 $75,000 $28,310 $623,910 $52,000 $49,000 $10,260 $76,400 $85,000 $128,280

Payee

Vendor I (Investment Company)

Transaction Originating Account Country of Date Holder Origination 5/31/2011 Leviathan Advisors Limited Cyprus 11/15/2011 Global Highway Limited Cyprus 12/17/2012 Lucicle Consultants Limited Cyprus Vendor H Total 9/3/2013 Global Endeavour Inc.

Vendor J (Contractor in Florida)

11/15/2011 12/5/2011 12/21/2011 2/9/2012 5/17/2012 6/19/2012 7/18/2012 9/19/2012 11/30/2012 1/9/2013 2/28/2013

Vendor K (Landscaper in the Hamptons, New York)

12/5/2011 3/1/2012 6/6/2012 6/25/2012 6/27/2012 2/12/2013 7/15/2013 11/26/2013

Vendor L (Payments Relating to Three Range Rovers) Vendor M

4/12/2012 5/2/2012

Grenadines

Vendor I Total Global Highway Limited Cyprus Leviathan Advisors Limited Cyprus Black Sea View Limited Cyprus Global Highway Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Vendor J Total Leviathan Advisors Limited Cyprus Global Highway Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus United Pompolo Limited Kingdom Grenadines Global Endeavour Inc. Vendor K Total Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus

6/29/2012 Lucicle Consultants Limited Cyprus Vendor L Total 11/20/2012 Lucicle Consultants Limited Cyprus 12/7/2012 Lucicle Consultants Limited Cyprus 13

Amount of Transaction $64,000 $48,000 $7,500 $520,440 $500,000 $500,000 $8,000 $11,237 $20,000 $51,000 $68,000 $60,000 $32,250 $112,000 $39,700 $25,600 $4,700 $432,487 $4,115 $50,000 $47,800 $17,900 $18,900 $3,300 $13,325 $9,400 $164,740 $83,525 $12,525 $67,655 $163,705 $45,000 $21,000

Payee (Contractor in Virginia)

Vendor N (Audio, Video, and Control System Home Integration and Installation Company in the Hamptons, New York)

Transaction Date 12/17/2012 1/17/2013 1/29/2013 2/12/2013 1/29/2009 3/17/2009 4/16/2009 12/2/2009 3/8/2010 4/23/2010

Originating Account Country of Holder Origination Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Lucicle Consultants Limited Cyprus Vendor M Total Yiakora Ventures Limited Cyprus Yiakora Ventures Limited Cyprus Yiakora Ventures Limited Cyprus Global Highway Limited Cyprus Global Highway Limited Cyprus Yiakora Ventures Limited Cyprus

7/29/2010 Leviathan Advisors Limited

Cyprus

Vendor N Total Vendor O (Purchase of Mercedes Benz)

10/5/2012 Lucicle Consultants Limited Cyprus Vendor O Total

Vendor P (Purchase of Range Rover) Vendor Q (Property Management Company in South Carolina)

12/30/2008 Yiakora Ventures Limited

9/2/2010 10/6/2010 10/18/2010 2/8/2011

Vendor P Total Yiakora Ventures Limited Cyprus Global Highway Limited Cyprus Leviathan Advisors Limited Cyprus Global Highway Limited Cyprus

2/9/2012 Global Highway Limited Vendor R (Art Gallery in Florida) Vendor S

Cyprus

2/9/2011 Global Highway Limited

Cyprus Vendor Q Total Cyprus

Amount of Transaction $21,000 $18,750 $9,400 $10,500 $125,650 $10,000 $21,725 $24,650 $10,000 $20,300 $8,500 $17,650 $112,825 $62,750 $62,750 $47,000 $47,000 $10,000 $10,000 $10,000 $13,500 $2,500 $46,000 $17,900

2/14/2013 Lucicle Consultants Limited Cyprus

$14,000

Vendor R Total 9/26/2011 Leviathan Advisors Limited Cyprus 9/19/2012 Lucicle Consultants Limited Cyprus

$31,900 $5,000 $5,000

14 Transaction Date

Payee (Housekeeping in New York)

16.

Originating Account Holder

Country of Origination

10/9/2013 Global Endeavour Inc.

Amount of Transaction

Grenadines

$10,000

Vendor S Total

$20,000

16. In 2012, MANAFORT caused the following wires to be sent to the entities listed below to purchase the real estate also listed below. MANAFORT did not report the money used to make these purchases on his 2012 tax return.

Property Purchased

Payee

Howard Street DMP Condominium International (New York) LLC Union Street Brownstone, (New York)

Attorney Account Of [Real Estate Attorney]

Arlington House (Virginia)

Real Estate Trust

Originating Account

Date

2/1/2012 Peranova Actinet Trading Limited Actinet Trading 11/29/2012 Limited 11/29/2012

8/31/2012

Lucicle Consultants Limited

Country of Origin

Amount

Cyprus

$1,500,000

Cyprus

$1,800,000

Cyprus

$1,200,000

Cyprus

$1,900,000

Total

17. MANAFORT and GATES also disguised, as purported “loans,” more than $10 million transferred from Cypriot entities, including the overseas MANAFORT–GATES entities, to domestic entities owned by MANAFORT. For example, a $1.5 million wire from Peranova to DMI that MANAFORT used to purchase real estate on Howard Street in Manhattan, New York, was recorded as a “loan” from Peranova to DMI, rather than as income. The following loans were shams designed to reduce fraudulently MANAFORT’s reported taxable income.

Year	Payor / Ostensible “Lender”	Payee / Ostensible “Borrower”	Country of Origin	Total Amount of “Loans”
2008	Yiakora Ventures Limited	Jesand Invesment Corporation	Cyprus $8,120,000
2008	Yiakora Ventures Limited	DMP	Cyprus	$500,000
2009	Yiakora Ventures Limited	DMP	Cyprus	$694,000
2009	Yiakora Ventures Limited	Daisy Manafort, LLC	Cyprus	$500,000
2012	Peranova	DMI	Cyprus	$1,500,000
2014	Telmar Investments Ltd.	DMI	Cyprus	$900,000
2015	Telmar Investments Ltd.	DMI	Cyprus	$1,000,000
Total				$13,214,000

18. From 2010 to 2014, GATES caused the following wires, totaling more than $3,000,000, to be sent to entities and bank accounts of which he was a beneficial owner or he otherwise controlled. GATES did not report this income on his tax returns.

Payee	Transaction Date	Originating Account Holder	Country of Origination	Amount of Transaction
Richard Gates<br /United Kingdom Bank Account A	3/26/2010	Serangon Holdings Limited	Cyprus	$85,000
	4/20/2010	Serangon Holdings Limited	Cyprus	$50,000
	5/6/2010	Serangon Holdings Limited	Cyprus	$150,000
Richard Gates United Kingdom Bank Account A	9/7/2010	Serangon Holdings Limited	Cyprus	$160,000
	10/13/2010	Serangon Holdings Limited	Cyprus	$15,000
Richard Gates United States Bank Account C	9/27/2010	Global Highway Limited	Cyprus	$50,000
2010 Tax Year Total	$510,000
Jemina LLC United States Bank Account D	9/9/2011	Peranova	Cyprus	$48,500
Richard Gates United Kingdom Bank Account B	12/16/2011	Peranova	Cyprus	$100,435
2011 Tax Year Total				$148,935
Richard Gates United Kingdom Bank Account B	1/9/2012	Global Highway Limited	Cyprus	$100,000
	1/13/2012	Peranova	Cyprus	$100,435
	2/29/2012	Global Highway Limited	Cyprus	$28,500
	3/27/2012	Bletilla Ventures Limited	Cyprus	$18,745

Payee	Transaction Date	Originating Account Holder	Country of Origination	Amount of Transaction
	4/26/2012	Bletilla Ventures Limited	Cyprus	$26,455
	5/30/2012	Bletilla Ventures Limited	Cyprus	$15,000
	5/30/2012	Lucicle Consultants Limited	Cyprus	$14,650
	6/27/2012	Bletilla Ventures Limited	Cyprus	$18,745
	8/2/2012	Bletilla Ventures Limited	Cyprus	$28,745
	8/30/2012	Bletilla Ventures Limited	Cyprus	$38,745
	9/27/2012	Bletilla Ventures Limited	Cyprus	$32,345
	10/31/2012	Bletilla Ventures Limited	Cyprus	$46,332
	11/20/2012	Bletilla Ventures Limited	Cyprus	$48,547
	11/30/2012	Bletilla Ventures Limited	Cyprus	$38,532
	12/21/2012	Bletilla Ventures Limited	Cyprus	$47,836
	12/28/2012	Bletilla Ventures Limited	Cyprus	$47,836
2012 Tax Year Total				$651,448
Richard Gates United Kingdom Bank Account B	1/11/2013	Bletilla Ventures Limited	Cyprus	$47,836
	1/22/2013	Bletilla Ventures Limited	Cyprus	$34,783
	1/30/2013	Bletilla Ventures Limited	Cyprus	$46,583
	2/22/2013	Bletilla Ventures Limited	Cyprus	$46,233
	2/28/2013	Bletilla Ventures Limited	Cyprus	$46,583
	3/1/2013	Bletilla Ventures Limited	Cyprus	$42,433
	3/15/2013	Bletilla Ventures Limited	Cyprus	$37,834
	4/15/2013	Bletilla Ventures Limited	Cyprus	$59,735
	4/26/2013	Bletilla Ventures Limited	Cyprus	$48,802
	5/17/2013	Olivenia Trading Limited	Cyprus	$57,798
	5/30/2013	Actinet Trading Limited	Cyprus	$45,622
	6/13/2013	Lucicle Consultants Limited	Cyprus	$76,343
	8/7/2013	Pompolo Limited	United Kingdom	$250,784
9/6/2013	Lucicle Consultants Limited	Cyprus	$68,500
	9/13/2013	Cypriot Agent	Cyprus	$179,216
	7/8/2013	Marziola Holdings	Limited Cyprus	$72,500
	9/4/2013	Marziola Holdings	Limited Cyprus	$89,807
	10/22/2013	Cypriot Agent	Cyprus	$119,844
	11/12/2013	Cypriot Agent	Cyprus	$80,000
	12/20/2013	Cypriot Agent	Cyprus	$90,000
2013 Tax Year Total				$1,541,237
Jemina LLC United States Bank Account D	2/10/2014	Cypriot Agent	Cyprus	$60,044
	4/29/2014	Cypriot Agent	Cyprus	$44,068
	10/6/2014	Global Endeavour Inc.	Grenadines	$65,000

Payee	Transaction Date	Originating Account Holder	Country of Origination	Amount of Transaction
Bade LLC United States Bank Account E	11/25/2014	Global Endeavour Inc.	Grenadines	$120,000
2014 Tax Year Total				$289,112

MANAFORT And GATES’ Hiding Foreign Bank Accounts And False Filings

19. United States citizens who have authority over certain foreign bank accounts—whether or not the accounts are set up in the names of nominees who act for their principals—have reporting obligations to the United States.

20. First, the Bank Secrecy Act and its implementing regulations require United States citizens to report to the Treasury any financial interest in, or signatory authority over, any bank account or other financial account held in foreign countries, for every calendar year in which the aggregate balance of all such foreign accounts exceeds $10,000 at any point during the year. This is commonly known as a foreign bank account report or “FBAR.” The Bank Secrecy Act requires these reports because they have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings. The Treasury’s Financial Crimes Enforcement Network (FinCEN) is the custodian for FBAR filings, and FinCEN provides access to its FBAR database to law enforcement entities, including the Federal Bureau of Investigation. The reports filed by individuals and businesses are used by law enforcement to identify, detect, and deter money laundering that furthers criminal enterprise activity, tax evasion, and other unlawful activities.

21. Second, United States citizens also are obligated to report information to the IRS regarding foreign bank accounts. For instance, in 2010, Schedule B of IRS Form 1040 had a “Yes” or “No” box to record an answer to the question: “At any time during [the calendar year], did you have an interest in or a signature or other authority over a financial account in a foreign country, such as a bank account, securities account, or other financial account?" If the answer was "Yes," then the form required the taxpayer to enter the name of the foreign country in which the financial account was located.

22.For each year in or about and between 2008 through at least 2014, MANAFORT had authority over foreign accounts that required an FBAR filing. Specifically, MANAFORT was required to report to the Treasury each foreign bank account held by the foreign MANAFORT– GATES entities noted above in paragraph 12 that bears the initials PM. No FBAR filings were made by MANAFORT for these accounts.

23.For each year in or about and between 2010 through at least 2013, GATES had authority over foreign accounts that required an FBAR filing. Specifically, GATES was required to report to the United States Treasury each foreign bank account held by the foreign MANAFORT– GATES entities noted above in paragraph 12 that bears the initials RG, as well as United Kingdom Bank Accounts A and B noted in paragraph 18. No FBAR filings were made by GATES for these accounts.

24.Furthermore, in each of MANAFORT's tax filings for 2008 through 2014, MANAFORT, with the assistance of GATES, represented falsely that he did not have authority over any foreign bank accounts. MANAFORT and GATES had repeatedly and falsely represented in writing to MANAFORT's tax preparer that MANAFORT had no authority over foreign bank accounts, knowing that such false representations would result in false tax filings in MANAFORT's name. For instance, on October 4, 2011, MANAFORT's tax preparer asked MANAFORT in writing: "At any time during 2010, did you [or your wife or children] have an interest in or a signature or other authority over a financial account in a foreign country, such as a bank account, securities account or other financial account?"

On the same day, MANAFORT falsely responded "NO." Page:Manafort-indictment-22Feb2018.pdf/24 Page:Manafort-indictment-22Feb2018.pdf/25 Page:Manafort-indictment-22Feb2018.pdf/26 Page:Manafort-indictment-22Feb2018.pdf/27 Page:Manafort-indictment-22Feb2018.pdf/28 Page:Manafort-indictment-22Feb2018.pdf/29 support for the stated income, and the loan application was denied.

42. MANAFORT applied to a second bank, Lender D. Between approximately July 2016 and January 2017, MANAFORT, with the assistance of GATES, sought and secured approximately $16,000,000 in two loans from Lender D. MANAFORT used the Bridgehampton property as collateral for one loan, and the Union Street property for the other.

43. MANAFORT and GATES made numerous false and fraudulent representations to secure the loans. For example, MANAFORT provided the bank with doctored P&Ls for DMI for both 2015 and 2016, overstating its income by millions of dollars. The doctored 2015 DMI P&L submitted to Lender D was the same false statement previously submitted to Lender C, which overstated DMI's income by more than $4 million. The doctored 2016 DMI P&L was inflated by MANAFORT by more than $3.5 million. To create the false 2016 P&L, on or about October 21, 2016, MANAFORT emailed GATES a .pdf version of the real 2016 DMI P&L, which showed a loss of more than $600,000. GATES converted that .pdf into a "Word" document so that it could be edited, which GATES sent back to MANAFORT. MANAFORT altered that "Word" document by adding more than $3.5 million in income. He then sent this falsified P&L to GATES and asked that the "Word" document be converted back to a .pdf, which GATES did and returned to MANAFORT. MANAFORT then sent the falsified 2016 DMI P&L .pdf to Lender D.

44. In addition, Lender D 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. MANAFORT falsely represented to Lender D that he had lent his credit card to a friend, GATES, who had incurred the charges and had not reimbursed him. MANAFORT supplied Lender D a letter from GATES that falsely stated that GATES had borrowed MANAFORT's credit card to make the purchases at issue and would pay him back by a date certain.

Statutory Allegations

COUNTS ONE THROUGH FIVE
(Subscribing to False United States Individual Income
Tax Returns For 2010–2014 Tax Years)

45.Paragraphs 1 through 44 are incorporated here.

46. On or about the dates specified below, in the Eastern District of Virginia and elsewhere,

defendant PAUL J. MANAFORT, JR., willfully and knowingly did make and subscribe, and aid and abet and cause to be made and subscribed, United States Individual Income Tax Returns, Forms 1040 and Schedule B, for the tax years set forth below, which returns contained and were verified by the written declaration of MANAFORT that they were made under penalties of perjury, and which returns MANAFORT did not believe to be true and correct as to every material matter, in that the returns (a) claimed that MANAFORT did not have a financial interest in and signature and other authority over a financial account in a foreign country and (b) failed to report income, whereas MANAFORT then and there well knew and believed that he had a financial interest in, and signature and other authority over, bank accounts in a foreign country and had earned total income in excess of the reported amounts noted below:

COUNT	TAX YEAR	APPROX. FILING DATE	FOREIGN ACCOUNT REPORTED (Sch. B, Line 7a)	TOTAL INCOME REPORTED (Line 22)
1	2010	October 14, 2011	None	$504,744
2	2011	October 15, 2012	None	$3,071,409
3	2012	October 7, 2013	None	$5,361,007
4	2013	October 6, 2014	None	$1,910,928
5	2014	October 14, 2015	None	$2,984,210

(26 U.S.C. § 7206(l); 18 U.S.C. §§ 2 and 3551 et seq.)

COUNTS SIX THROUGH TEN
(Assisting in the Preparation of
False United States Individual Income
Tax Returns For 2010–2014 Tax Years)

47. Paragraphs 1 through 44 are incorporated here.

48. On or about the dates specified below, in the Eastern District of Virginia and elsewhere, defendant RICHARD W. GATES III willfully and knowingly did aid and assist in, and procure, counsel, and advise the preparation and presentation to the Internal Revenue Service, of a United States Individual Income Tax Return, Form 1040 and Schedule B, of PAUL J. MANAFORT, JR., for the tax years set forth below, which returns were false and fraudulent as to a material matter, in that the returns (a) claimed that MANAFORT did not have a financial interest in, and signature and other authority over, a financial account in a foreign country and (b) failed to report income, whereas GATES then and there well knew and believed that MANAFORT had a financial interest in, and signature and other authority over, bank accounts in a foreign country and had earned total income in excess of the reported amounts noted below:

COUNT	TAX YEAR	APPROX. FILING DATE	FOREIGN ACCOUNT REPORTED (Sch. B, Line 7a)	TOTAL INCOME REPORTED (Line 22)
6	2010	October 14, 2011	None	$504,744
7	2011	October 15, 2012	None	$3,071,409
8	2012	October 7, 2013	None	$5,361,007
9	2013	October 6, 2014	None	$1,910,928
10	2014	October 14, 2015	None	$2,984,210

(26 U.S.C. § 7206(2); 18 U.S.C. § 3551 et seq.)

COUNTS ELEVEN THROUGH FOURTEEN
(Failure To File Reports Of Foreign Bank And Financial
Accounts For Calendar Years 2011–2014)

49. Paragraphs 1 through 44 are incorporated here.

50. On the filing due dates listed below, in the Eastern District of Virginia and elsewhere, Case 1:17-cr-00201-ABJ Document 190-1 Filed 02/22/18 Page 29 of 37

defendant PAUL J. MANAFORT, JR., unlawfully, willfully, and knowingly did fail to file with the Treasury an FBAR disclosing that he had a financial interest in, and signature and other authority over, a bank, securities, and other financial account in a foreign country, which had an aggregate value of more than $10,000 in a 12-month period, during the years listed below:

Caption text

COUNT	YEAR	DUE DATE TO FILE DBAR
11	2011	June 29, 2012
12	2012	June 29, 2013
13	2013	June 29, 2014
14	204	June 29, 2015

(31 U.S.C. §§ 5314 and 5322(a); 18 U.S.C. §§ 2 and 3551 et seq.)

COUNTS FIFTEEN THROUGH NINETEEN
(Subscribing to False United States Individual Income
Tax Returns For 2010–2014 Tax Years)

51. Paragraphs 1 through 44 are incorporated here.

52. On or about the dates specified below, in the Eastern District of Virginia and elsewhere, defendant RICHARD W. GATES III willfully and knowingly did make and subscribe, and aid and abet and cause to be made and subscribed, United States Individual Income Tax Returns, Forms 1040 and Schedule B, for the tax years set forth below, which returns contained and were verified by the written declaration of defendant GATES that they were made under penalties of perjury, and which returns defendant GATES did not believe to be true and correct as to every material matter, in that the returns (a) claimed that GATES did not have a financial interest in, and signature and other authority over, a financial account in a foreign country and (b) failed to report income, whereas GATES then and there well knew and believed that he had a financial interest in, and signature and other authority over, a financial account in a foreign country and had earned total income in excess of the reported amounts noted below:

COUNT	TAX YEAR	APPROX. FILING DATE	FOREIGN ACCOUNT REPORTED (Sch. B, Line 7a)	TOTAL INCOME REPORTED (Line 22)
15	2010	July 26, 2011	None	$194,257
16	2011	October 11, 2012	None	$250,307
17	2012	October 15, 2013	None	$365,646
18	2013	October 15, 2014	None	$307,363
19	2014	October 14, 2015	None	$292,892

(26 U.S.C. § 7206(l); 18 U.S.C. §§ 2 and 3551 et seq.)

COUNT TWENTY
(Subscribing to a False Amended United States Individual Income
Tax Return For 2013 Tax Year)

53. Paragraphs 1 through 44 are incorporated here.

54. On or about October 25, 2017, in the Eastern District of Virginia and elsewhere, defendant RICHARD W. GATES III willfully and knowingly did make and subscribe, and aid and abet and cause another to make and subscribe, a United States Individual Income Tax Return, Form 1040X, for the 2013 tax year, which return contained and was verified by the written declaration of defendant GATES that it was made under penalties of perjury, and which return defendant GATES did not believe to be true and correct as to every material matter, in that the return failed to report income, whereas GATES then and there well knew and believed that he had earned adjusted gross income in excess of the reported amount on Line 1C, to wit: $292,055.

(26 U.S.C. § 7206(l); 18 U.S.C. §§ 2 and 3551 et seq.)

COUNTS TWENTY-ONE THROUGH TWENTY-THREE
(Failure To File Reports Of Foreign Bank And Financial
Accounts For Calendar Years 2011–2013)

55. Paragraphs 1 through 44 are incorporated here.

56. On the filing due dates listed below, in the Eastern District of Virginia and elsewhere, defendant RICHARD W. GATES III unlawfully, willfully, and knowingly did fail to file with the Treasury an FBAR disclosing that he had a financial interest in, and signature authority over, a bank, securities, and other financial account in a foreign country, which had an aggregate value of more than $10,000 in a 12-month period, during the years listed below:

COUNT	YEAR	DUE DATE TO FILE FBAR
21	2011	June 29, 2012
22	2012	June 30, 2013
23	2013	June 30, 2014

(31 U.S.C. §§ 5314 and 5322(a); 18 U.S.C. §§ 2 and 3551 et seq.)

COUNT TWENTY-FOUR
(Bank Fraud Conspiracy / Lender B / $3.4 million loan)

57. Paragraphs 1 through 44 are incorporated here.

58. On or about and between December 2015 and March 2016, both dates being approximate and inclusive, in the Eastern District of Virginia and elsewhere, defendants PAUL J. MANAFORT, JR., and RICHARD W. GATES III did knowingly and intentionally conspire to execute a scheme and artifice to defraud one or more financial institutions, to wit: Lender B, the deposits of which were insured by the Federal Deposit Insurance Corporation, and to obtain moneys, funds, and credits owned by and under the custody and control of such financial institution by means of materially false and fraudulent pretenses, representations, and promises, contrary to Title 18, United States Code, Section 1344.

(18 U.S.C. §§ 1349 and 3551 et seq.)

COUNT TWENTY-FIVE
(Bank Fraud / Lender B / $3.4 million loan)

59. Paragraphs 1 through 44 are incorporated here.

60. On or about and between December 2015 and March 2016, both dates being approximate and inclusive, in the Eastern District of Virginia and elsewhere, defendants PAUL J. MANAFORT, JR., and RICHARD W. GATES III did knowingly and intentionally execute and attempt to execute a scheme and artifice to defraud one or more financial institutions, to wit: Lender B, the deposits of which were insured by the Federal Deposit Insurance Corporation, and to obtain moneys, funds, and credits owned by and under the custody and control of such financial institution by means of materially false and fraudulent pretenses, representations, and promises.

(18 U.S.C. §§ 1344, 2, and 3551 et seq.)

COUNT TWENTY-SIX
(Bank Fraud Conspiracy / Lender C / $1 million loan)

61. Paragraphs 1 through 44 are incorporated here.

62. On or about and between March 2016 and May 2016, both dates being approximate and inclusive, in the Eastern District of Virginia and elsewhere, defendants PAUL J. MANAFORT, JR., and RICHARD W. GATES III did knowingly and intentionally conspire to execute a scheme and artifice to defraud one or more financial institutions, to wit: Lender C, the deposits of which were insured by the Federal Deposit Insurance Corporation, and to obtain moneys, funds, and credits owned by and under the custody and control of such financial institution by means of materially false and fraudulent pretenses, representations, and promises, contrary to Title 18, United States Code, Section 1344.

(18 U.S.C. §§ 1349 and 3551 et seq.)

COUNT TWENTY-SEVEN
(Bank Fraud / Lender C / $1 million loan)

63. Paragraphs 1 through 44 are incorporated here.

64. On or about and between December 2015 and March 2016, both dates being approximate and inclusive, in the Eastern District of Virginia and elsewhere, defendants PAUL J. MANAFORT, JR., and RICHARD W. GATES III did knowingly and intentionally execute and attempt to execute a scheme and artifice to defraud one or more financial institutions, to wit: Lender C, the deposits of which were insured by the Federal Deposit Insurance Corporation, and to obtain moneys, funds, and credits owned by and under the custody and control of such financial institution by means of materially false and fraudulent pretenses, representations, and promises.

(18 U.S.C. §§ 1344, 2, and 3551 et seq.)

COUNT TWENTY-EIGHT
(Bank Fraud Conspiracy / Lender B / $5.5 million loan)

65. Paragraphs 1 through 44 are incorporated here.

66. On or about and between March 2016 and August 2016, both dates being approximate and inclusive, in the Eastern District of Virginia and elsewhere, defendants PAUL J. MANAFORT, JR., and RICHARD W. GATES III did knowingly and intentionally conspire to execute a scheme and artifice to defraud one or more financial institutions, to wit: Lender B, the deposits of which were insured by the Federal Deposit Insurance Corporation, and to obtain moneys, funds, and credits owned by and under the custody and control of such financial institution by means of materially false and fraudulent pretenses, representations, and promises, contrary to Title 18, United States Code, Section 1344.

(18 U.S.C. §§ 1349 and 3551 et seq.)

COUNT TWENTY-NINE
(Bank Fraud Conspiracy / Lender D / $9.5 million loan)

67. Paragraphs 1 through 44 are incorporated here.

68. On or about and between April 2016 and November 2016, both dates being approximate and inclusive, in the Eastern District of Virginia and elsewhere, defendants PAUL J. MANAFORT, JR., and RICHARD W. GATES III did knowingly and intentionally conspire to execute a scheme and artifice to defraud one or more financial institutions, to wit: Lender D, the deposits of which were insured by the Federal Deposit Insurance Corporation, and to obtain moneys, funds, and credits owned by and under the custody and control of such financial institution by means of materially false and fraudulent pretenses, representations, and promises, contrary to Title 18, United States Code, Section 1344.

(18 U.S.C. §§ 1349 and 3551 et seq.)

COUNT THIRTY
(Bank Fraud / Lender D / $9.5 million loan)

69. Paragraphs 1 through 44 are incorporated here.

70. On or about and between April 2016 and November 2016, both dates being approximate and inclusive, in the Eastern District of Virginia and elsewhere, defendants PAUL J. MANAFORT, JR., and RICHARD W. GATES III did knowingly and intentionally execute and attempt to execute a scheme and artifice to defraud one or more financial institutions, to wit: Lender D, the deposits of which were insured by the Federal Deposit Insurance Corporation, and to obtain moneys, funds, and credits owned by and under the custody and control of such financial institution by means of materially false and fraudulent pretenses, representations, and promises.

(18 U.S.C. § 1344, 2, and 3551 et seq.)

COUNT THIRTY-ONE
(Bank Fraud Conspiracy / Lender D / $6.5 million loan)

71. Paragraphs 1 through 44 are incorporated here.

72. On or about and between April 2016 and January 2017, both dates being approximate and inclusive, in the Eastern District of Virginia and elsewhere, defendants PAUL J. MANAFORT, JR., and RICHARD W. GATES III did knowingly and intentionally conspire to execute a scheme and artifice to defraud one or more financial institutions, to wit: Lender D, the deposits of which were insured by the Federal Deposit Insurance Corporation, and to obtain moneys, funds, and credits owned by and under the custody and control of such financial institution by means of materially false and fraudulent pretenses, representations, and promises, contrary to Title 18, United States Code, Section 1344.

(18 U.S.C. §§ 1349 and 3551 et seq.)

COUNT THIRTY-TWO
(Bank Fraud / Lender D / $6.5 million loan)

73. Paragraphs 1 through 44 are incorporated here.

74. On or about and between April 2016 and January 2017, both dates being approximate and inclusive, in the Eastern District of Virginia and elsewhere, defendants PAUL J. MANAFORT, JR., and RICHARD W. GATES III did knowingly and intentionally execute and attempt to execute a scheme and artifice to defraud one or more financial institutions, to wit: Lender D, the deposits of which were insured by the Federal Deposit Insurance Corporation, and to obtain moneys, funds, and credits owned by and under the custody and control of such financial institution by means of materially false and fraudulent pretenses, representations, and promises.

(18 U.S.C. §§ 1344, 2, and 3551 et seq.)

FORFEITURE NOTICE

75. Pursuant to Fed. R. Crim. P. 32.2, notice is hereby given to the defendants that the United States will seek forfeiture as part of any sentence in accordance with Title 18, United States Code, Section 982(a)(2), in the event of the defendants’ convictions under Counts Twenty-Four through Thirty-Two of this Superseding Indictment. Upon conviction of the offenses charged in Counts Twenty-Four through Thirty-Two, defendants PAUL J. MANAFORT, JR., and RICHARD W. GATES III shall forfeit to the United States any property constituting, or derived from, proceeds obtained, directly or indirectly, as a result of such violation(s). Notice is further given that, upon conviction, the United States intends to seek a judgment against each defendant for a sum of money representing the property described in this paragraph, as applicable to each defendant (to be offset by the forfeiture of any specific property).

76. The grand jury finds probable cause to believe that the property subject to forfeiture by PAUL J. MANAFORT, JR., includes, but is not limited to, the following listed assets:

a. All funds held in account number XXXXXX0969 at Lender D, and any property traceable thereto.

Substitute Assets

77. If any of the property described above as being subject to forfeiture, as a result of any act or omission of any defendant

a. cannot be located upon the exercise of due diligence;

b. has been transferred or sold to, or deposited with, a third party;

c. has been placed beyond the jurisdiction of the court;

d. has been substantially diminished in value; or

e. has been commingled with other property that cannot be subdivided without difficulty;

it is the intent of the United States of America, pursuant to Title 18, United States Code, Section 982(b) and Title 28, United States Code, Section 2461(c), incorporating Title 21, United States Code, Section 853, to seek forfeiture of any other property of said defendant.

(18 U.S.C. § 982)

__________________________
Robert S. Mueller, III
Special Counsel
Department of Justice

A TRUE BILL:

__________________________
Foreperson

Date: February 22, 2018