Paul Manafort Paul Manafort Credit: Photo: Diego M. Radzinschi/ALM

Robert Mueller, the special counsel, brought new charges Thursday against former Trump campaign chairman Paul Manafort and his deputy, Rick Gates.

A grand jury in Alexandria, Virginia, returned a 32-count indictment that includes charges of bank and tax fraud. Manafort and Gates were charged with 12 counts, including money laundering and failure to register as a foreign agent, in October. Both men pleaded not guilty, and U.S. District Judge Amy Berman Jackson has not yet set a trial date for the case in Washington, D.C.

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In a status report filed in the district court in Washington, D.C., lawyers for the special counsel said they were prepared to bring the new charges in D.C., but that one of the defendants would not waive his right to venue. The document did not specify which defendant it was.

“If venue had been waived, the defendants would have faced a single indictment in one district, and not two indictments in adjacent districts,” the document said.

Manafort spokesman Jason Maloni said in an email that his client is innocent and “confident that he will be acquitted of all charges.”

“The new allegations against Mr. Manafort, once again, have nothing to do with Russia and 2016 election interference/collusion,” Maloni said.

Sidley Austin partner Tom Green officially entered an appearance in the D.C. case Thursday evening on behalf of Gates. Green did not respond to a request for comment.

The new charges include 16 counts related to false individual income tax returns, seven counts of failure to file reports of foreign bank and financial accounts, five counts of bank fraud conspiracy and four counts of bank fraud.

The charges allege Manafort and Gates made millions lobbying on behalf of the government of Ukraine, Ukrainian President Victor Yanukovych and his political party, and hid the income from U.S. authorities. They disguised the income as loans and by making payments to offshore accounts, the indictment said. After Yanukovych fled Ukraine for Russia, their income declined, and the indictment claims the two men fraudulently obtained loans by failing to disclose existing debt and falsely inflating their income.

Overall, the indictment said more than $75 million flowed through the offshore accounts. It alleges Manafort “used his hidden overseas wealth to enjoy a lavish lifestyle,” spending millions on “luxury goods” for himself and extended family, and to purchase multimillion-dollar homes. Gates used money to pay for his mortgage, children's tuition and interior decoration of his home.

A spokesman for the special counsel said he did not have any information on when an arraignment will be held.

A hearing on Gates' legal representation was scheduled for Friday morning in D.C., but was cancelled Thursday after Green entered his appearance. Until Thursday, Gates was represented by Shanlon Wu of Wu, Grohovsky & Whipple, Walter Mack of Doar Rieck Kaley & Mack and Annemarie McAvoy of McAvoy Consulting. A judge granted the lawyers motion to withdraw from his case Thursday, though Green has reportedly been working with Gates for weeks.

The new indictment comes just days after Mueller charged Alex van der Zwaan, a former associate at Skadden, Arps, Slate, Meagher & Flom, with one count of lying to investigators. The son of Russian oligarch German Kahn pleaded guilty Tuesday.

Van der Zwaan admitted to lying about his communications with Gates and an unnamed person in 2016 about a 2012 report he and other Skadden lawyers worked on. The report was on the trial of former Ukrainian Prime Minister Yulia Tymoshenko, an adversary of Manafort's client, Yanukovych. Manafort reportedly helped arrange for Skadden to conduct the report.

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