Special Counsel Robert Mueller’s office announced this afternoon that a federal grand jury in Virginia has returned a superseding indictment against Paul Manafort and Richard Gates. The new indictment, which charges 32 felony counts, replaces the original 12-count indictment filed in late October.
The indictment dramatically alters the case, although not in a way that will surprise National Review readers.
There continues to be no connection to the Trump campaign (which Manafort briefly chaired and Gates also served), much less any suggestion of collusion between the campaign and Russia. The new indictment, however, retreats from the original allegations of money laundering, failure to register as foreign agents, and the so-called conspiracy against the United States.
We observed back in November that all of these charges seemed problematic – the money-laundering theory was shaky, failures to comply with the Foreign Agents Registration Act are rarely charged criminally, and there is no “conspiracy against the United States” in federal law (the charge is either conspiracy to defraud the United States, which seemed to be what Mueller was alleging, or conspiracy to violate a federal criminal law).
We also noted at the time that the oddest thing about the original indictment was the absence of tax-evasion and bank-fraud charges. Mueller had seemed to lay the groundwork for these allegations but to have refrained from charging them.
Voila! The case is now exclusively a tax and bank-fraud case.
Counts 1 through 10 charge Manafort with subscribing false tax returns from 2010 through 2014, and Gates with assisting him in their preparation. Gates is also charged with subscribing to false tax returns in those same years (in Counts 15 through 20 – including two returns for the year 2013). Counts 11 through 14 charge Manafort with failing to file required “FBAR” reports regarding his controlling interest in foreign bank accounts (an offense that appeared in the original indictment); and Counts 21 through 23 charge Gates with that same FBAR offense.