Case 1:18-cr-00083-TSE Document 20 Filed 02/28/18 Page 1 of 8 PageID# 200

IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
Alexandria Division
UNITED STATES OF AMERICA
v.
1:18-cr-83 (TSE) (S-1)
PAUL J. MANAFORT, Jr.,
Defendant.

STATUS REPORT
The United States of America, by and through Special Counsel Robert S. Mueller, III,
submits this status report in advance of the upcoming arraignment of the defendant, Paul J.
Manafort, Jr., scheduled for Friday, March 2, 2018, at 1:30 p.m. In particular, the Special Counsel
details for the Court: (A) the specific charges in this matter; (B) the charges pending against the
defendant in the United States District Court for the District of Columbia pursuant to an indictment
first returned on October 27, 2017; (C) the defendant’s bail status in the District of Columbia
prosecution; and (D) the status of discovery both here and in the District of Columbia. The case
against Manafort in the District of Columbia, United States v. Manafort, 17-cr-201 (ABJ), is
pending before the Honorable Amy Berman Jackson. The indictments in the two districts overlap
factually as to the tax and FBAR allegations. Specifically, in the District of Columbia, Manafort
is charged with a conspiracy to defraud the Department of Treasury and to fail to file FBAR reports
with that Department. In the Eastern District of Virginia, the defendant is charged with substantive
offenses of tax fraud and the failure to file FBAR reports (as to which there is not venue in the
District of Columbia). The FARA charges are unique to the District of Columbia and the bank
fraud charges are unique to this district.

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A. Eastern District of Virginia Charges
United States v. Manafort, 1:18 Cr. 83 (TSE)(S-1)
As outlined in the Superseding Indictment in this case, the criminal charges against the
defendant relate to: (1) his failure to declare substantial income and the existence of his foreign
accounts for the years 2010 through 2014, and (2) his efforts, from approximately 2015 to 2017 to
secure more than $25 million in loans from a variety of financial institutions based on false and
fraudulent statements. Specifically, on February 22, 2018, a grand jury in this district returned a
32-count superseding indictment against Manafort and Richard W. Gates III, 1 which charged the
following:
Count
1
2
3
4
5
6
7
8

Charge
Subscribing to False U.S. Individual Income Tax Returns (2010)
(26 U.S.C. § 7206(1); 18 U.S.C. § 2)
Subscribing to False U.S. Individual Income Tax Returns (2011)
(26 U.S.C. § 7206(1); 18 U.S.C. § 2)
Subscribing to False U.S. Individual Income Tax Returns (2012)
(26 U.S.C. § 7206(1); 18 U.S.C. § 2)
Subscribing to False U.S. Individual Income Tax Returns (2013)
(26 U.S.C. § 7206(1); 18 U.S.C. § 2)
Subscribing to False U.S. Individual Income Tax Returns (2014)
(26 U.S.C. § 7206(1); 18 U.S.C. § 2)
Assisting in the Preparation of False U.S. Individual Income
(2010) (26 U.S.C. § 7206(2))
Assisting in the Preparation of False U.S. Individual Income
(2011) (26 U.S.C. § 7206(2))
Assisting in the Preparation of False U.S. Individual Income

1

Defendant
Manafort
Manafort
Manafort
Manafort
Manafort
Gates
Gates
Gates

On February 27, 2018, the Special Counsel’s Office moved pursuant to Federal Rule of
Criminal Procedure 48(a) to dismiss without prejudice all charges in this matter against defendant
Gates. See ECF # 16. On February 23, 2018, Gates pled guilty, pursuant to a cooperation
agreement, to a two-count Superseding Criminal Information before Judge Jackson in the District
of Columbia charging him with conspiracy to defraud the United States and to commit multiple
federal offenses, in violation of 18 U.S.C. § 371; and making a false statement in a matter within
the jurisdiction of the executive branch, in violation of 18 U.S.C. § 1001. Gates had previously
been charged in that district along with Manafort. Under the terms of the cooperation agreement,
the government agreed that it would “move promptly to dismiss without prejudice the charges
brought against [Gates] in the Eastern District of Virginia and [Gates] waives venue as to such
charges in the event he breaches this Agreement.” Cooperation Agr. at 2, No. 1:17-cr-201-ABJ
(D.D.C.) (ECF #205).
2

 Case 1:18-cr-00083-TSE Document 20 Filed 02/28/18 Page 3 of 8 PageID# 202

Count
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

Charge
(2012) (26 U.S.C. § 7206(2))
Assisting in the Preparation of False U.S. Individual Income
(2013) (26 U.S.C. § 7206(2))
Assisting in the Preparation of False U.S. Individual Income
(2014) (26 U.S.C. § 7206(2))
Failure To File Reports Of Foreign Bank/Financial Accounts
(2011)(31 U.S.C. §§ 5314 and 5322(a); 18 U.S.C. § 2)
Failure To File Reports Of Foreign Bank/Financial Accounts
(2012)(31 U.S.C. §§ 5314 and 5322(a); 18 U.S.C. § 2)
Failure To File Reports Of Foreign Bank/ Financial Accounts
(2013)(31 U.S.C. §§ 5314 and 5322(a); 18 U.S.C. § 2)
Failure To File Reports Of Foreign Bank/Financial Accounts
(2014)(31 U.S.C. §§ 5314 and 5322(a); 18 U.S.C. § 2)
Subscribing to False U.S. Individual Income Tax Returns (2010)
(26 U.S.C. § 7206(1); 18 U.S.C. § 2)
Subscribing to False U.S. Individual Income Tax Returns (2011)
(26 U.S.C. § 7206(1); 18 U.S.C. § 2)
Subscribing to False U.S. Individual Income Tax Returns (2012)
(26 U.S.C. § 7206(1); 18 U.S.C. § 2)
Subscribing to False U.S. Individual Income Tax Returns (2013)
(26 U.S.C. § 7206(1); 18 U.S.C. § 2)
Subscribing to False U.S. Individual Income Tax Returns (2014)
(26 U.S.C. § 7206(1); 18 U.S.C. § 2)
Subscribing to a False Amended U.S. Individual Income Tax
Return (2013) (26 U.S.C. § 7206(1); 18 U.S.C. § 2)
Failure To File Reports Of Foreign Bank/ Financial Accounts
(2011)(31 U.S.C. §§ 5314 and 5322(a); 18 U.S.C. § 2)
Failure To File Reports Of Foreign Bank/Financial Accounts
(2012) (31 U.S.C. §§ 5314 and 5322(a); 18 U.S.C. § 2)
Failure To File Reports Of Foreign Bank/Financial Accounts
(2013)(31 U.S.C. §§ 5314 and 5322(a); 18 U.S.C. § 2)
Bank Fraud Conspiracy (Lender B/$3.4 million loan)
(18 U.S.C. § 1349)
Bank Fraud (Lender B/$3.4 million loan)
(18 U.S.C. §§ 1344, 2)
Bank Fraud Conspiracy (Lender C / $1 million loan)
(18 U.S.C. § 1349)
Bank Fraud (Lender C / $1 million loan)
(18 U.S.C. § 1344, 2)
Bank Fraud Conspiracy (Lender B / $5.5 million loan)
(18 U.S.C. § 1349)
Bank Fraud Conspiracy (Lender D / $9.5 million loan
(18 U.S.C. § 1349)
Bank Fraud (Lender D / $9.5 million loan)
(18 U.S.C. §§ 1344, 2)
3

Defendant
Gates
Gates
Manafort
Manafort
Manafort
Manafort
Gates
Gates
Gates
Gates
Gates
Gates
Gates
Gates
Gates
Manafort
Gates
Manafort
Gates
Manafort
Gates
Manafort
Gates
Manafort
Gates
Manafort
Gates
Manafort
Gates

 Case 1:18-cr-00083-TSE Document 20 Filed 02/28/18 Page 4 of 8 PageID# 203

Count
31
32

Charge
Bank Fraud Conspiracy (Lender D / $6.5 million loan)
(18 U.S.C. § 1349)
Bank Fraud (Lender D / $6.5 million loan)
(18 U.S.C. §§ 1344, 2)

Defendant
Manafort
Gates
Manafort
Gates

Prior to seeking charges in the Eastern District of Virginia, the Special Counsel’s Office
alerted Manafort’s counsel that venue for the proposed charges lie in the Eastern District of
Virginia, and that should the defendant agree to waive venue, the Special Counsel would seek to
bring all the charges in the District of Columbia so that the defendant would face a single trial on
a single indictment. Manafort elected, as is his right, not to waive venue and, accordingly, the
Special Counsel’s Office has proceeded in the Eastern District of Virginia.
In total, Manafort faces the following statutory punishments:
•

for the five counts of subscribing to false United States Individual Income Tax Returns,
a statutory maximum sentence of three years’ imprisonment on each count;

•

for the four counts of failing to file a Report of Foreign Bank and Financial Accounts
(FBAR), a statutory maximum sentence of five years’ imprisonment on each count;
and

•

for the nine counts of bank fraud and bank fraud conspiracy, a maximum sentence of
30 years’ imprisonment on each count.

Based on the tax fraud charges alone, the government estimates that the defendant’s
advisory sentencing guideline range would be 97 to 121 months’ imprisonment, based on an
offense level of 30 and criminal history category of I. 2

2

Additionally, because the defendant obtained more than $1 million from four of the five bank
fraud schemes, he would be subject to an offense level of at least 24 on the bank fraud charges
(even assuming no gain or loss) pursuant to U.S.S.G. § 2B1.1(b)(16)(A), and thus an advisory
range of 51 to 63 months’ imprisonment.
4

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B. District of Columbia Charges:
United States v. Manafort, 17-cr-201 (ABJ) (S-3)
The charges in the District of Columbia concern Manafort’s acting as an unregistered agent
of a foreign government, money laundering, making of false statements, as well as a multi-object
conspiracy involving tax charges, among others.
The defendant was notified of his Indictment in the District of Columbia on October 29,
2017, and permitted to surrender to the Federal Bureau of Investigation on October 30, 2017. He
was arraigned that same day, and released subject to various bail conditions, including home
detention and electronic monitoring.
On Friday, February 23, 2018, a grand jury sitting in the District of Columbia, returned a
Superseding Indictment against Manafort, charging him with the following crimes:
Count

Charge

Defendant

1

Conspiracy Against the United States
(18 U.S.C. § 371)
Conspiracy to Launder Money
(18 U.S.C. § 1956(h))
Failure to Register as an Agent of A Foreign Principal
(22 U.S.C. §§ 612(a) and 618(a)(1); 18 U.S.C. § 2)
False and Misleading FARA Statements
(22 U.S.C. §§ 612, 618(a)(2); 18 U.S.C. § 2)
False Statements
(18 U.S.C. §§ 2, 1001(a))

Manafort

2
3
4
5

Manafort
Manafort
Manafort
Manafort

With respect to each of these counts, Manafort faces the following statutory punishment:
•

for the Count One conspiracy, the Count Three and Four FARA crimes and the Count
Five false statement count, a statutory maximum sentence of five years’ imprisonment;
and

•

for the Count Two money laundering conspiracy, a statutory maximum penalty of 20
years’ imprisonment

The government initially calculated the defendant’s offense level under the Sentencing Guidelines,
without considering relevant conduct, to be at least a level 34, which corresponds to an advisory
5

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guideline ranges of 151 to 188 months imprisonment. 3 Based on the Superseding Indictment filed
last week and in particular an increase in the amount of money laundered as part of the charged
conspiracy in Count Two, the defendant’s offense level now would be at least a level 36, which
corresponds to an advisory guideline ranges of 188 to 235 months imprisonment.
A copy of the Superseding Indictment in the District of Columbia prosecution is attached
as Exhibit A.
Finally, upon motion of the government, and with the defendant’s consent, Judge Jackson
deemed the District of Columbia prosecution a complex case pursuant to the Speedy Trial Act, 18
U.S.C. § 3161(h)(7)(A) and (B)(ii).
At a status conference held on February 28, 2018, Judge Jackson set a trial date of
September 17, 2018.

C. Defendant Manafort’s Bail Status
In the District of Columbia prosecution, the government has argued, orally and in writing,
that Manafort constitutes a risk of flight in light of the serious nature of the charges, his history of
deceptive and misleading conduct, the potentially significant sentence he faces in that matter, the
strong evidence of guilt, his significant financial resources, and his foreign connections. A copy
of the government’s October 31, 2017 memorandum setting forth its risk-of-flight argument is
attached as Exhibit B.

3

The government arrived at this calculation under the money laundering guideline,
U.S.S.G. § 2S1.1, as follows: a base level of 8 under § 2S1.1(a)(2), increased by 20 levels pursuant
to § 2B1.1(b)(1)(K) because the value of the laundered funds exceeds $9,500,000; and with the
following enhancements: plus 2 pursuant to § 2S1.1(b)(2) (if convicted under 18 U.S.C. § 1956),
and plus 2 for sophisticated laundering (pursuant to § 2S1.1(b)(3)), for a total offense level of 32.
An additional two-level enhancement for a managerial role would apply for Manafort, pursuant to
§ 3B1.1(c).
6

 Case 1:18-cr-00083-TSE Document 20 Filed 02/28/18 Page 7 of 8 PageID# 206

At the initial appearance, the parties agreed that the defendant would be released on a
personal recognizance bond valued at $10 million and placed on home detention (the electronic
monitoring was a condition of the Court), with the expectation that he would return to Court shortly
with a comprehensive bail package.
After a series of arguments and briefing, on December 15, 2017, Judge Jackson made
various findings regarding bail and ordered the following conditions: that a combination of
property and sureties be required to satisfy the $10 million bond value and that, if they did so, the
defendant would be released from home detention, subject to electronic monitoring and various
travel restrictions. See Dec. 15, 2017 Order, 1:17-cr-201 (ABJ) (ECF #95). A copy of Judge
Jackson’s bail order is attached as Exhibit C. To date, these conditions have not been satisfied,
and others that have been subsequently proposed as an alternative have not been accepted by the
Court. Accordingly, the defendant remains on home detention and subject to electronic monitoring
pursuant to the $10 million recognizance bond.
D. Scheduling, Discovery and Related Matters
On February 27, 2018, the Special Counsel’s Office forwarded to defense counsel a copy
of the standard discovery order for the Eastern District of Virginia and a proposed protective order
relating to discovery (the same one that has been entered in the District of Columbia by Judge
Jackson). In addition, we believe that almost all of the relevant discovery in this matter in our
possession has already been produced in the course of the District of Columbia prosecution. The
government made its first production on November 17, 2017, which included: (1) foreign bank
account records for the accounts in Cyprus and Saint Vincent & the Grenadines; (2) domestic financial
records; and (3) documents from Manafort’s tax preparer that were identified by the government as
particularly relevant. In ensuing ten productions, the government has produced a range of emails,
financial documents and other records, as well as materials obtained from a number of different devices

7

 Case 1:18-cr-00083-TSE Document 20 Filed 02/28/18 Page 8 of 8 PageID# 207

and media. 4 As of February 28, 2018, the government had made eleven separate discovery productions
to the defendant. In addition, the government also has produced for the defendant documents that it
identified as "hot."

Respectfully submitted,

' III
Dated: February 28, 2018

By:
eissmann
Greg D Andres
Kyle R. reeny
Special Assistant United States Attorneys
Senior/ Assistant Special Counsels
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 ofAmerica

4

The government seized numerous media and devices during a court-authorized search of one of
Manafort' s residences in July 2017. To extent these media and devices were accessible to the FBI,
the government made copies of the seized electronic evidence available to the defense prior to the
charges brought against Manafort in October 2017.
8