Justice Dept. Sues Trump Campaign Manager Saying He Hid $16M in Taxable Income
WEST PALM BEACH, Fla. — The Justice Department is suing Paul Manafort, the former presidential campaign manager of Donald Trump, after he allegedly hid taxable income he was paid as a consultant for business and political interests in Ukraine.
Prosecutors are seeking $2.9 million of the $16 million Manafort is accused of transferring into offshore bank accounts.
Many of the accounts were listed under the names of shell corporations and business associates but Manafort retained control over them, says the lawsuit filed Thursday in federal court in West Palm Beach, Florida.
“Manafort filled out a Schedule B as part of his 2014 Form 1040,” the lawsuit says. “The Schedule B contained the following question: ‘At any time during 2014, did you have a financial interest in or signature or other authority over a financial account in a foreign country, such as a bank account, securities account or other financial account?’ Manafort incorrectly marked ‘No.’”
Manafort allegedly was paid the money in part to help businesses in Ukraine and pro-Russian politicians win influence in the United States.
Prosecutors said he used some of the money he hid in foreign accounts to purchase real estate, landscaping services for his properties and for custom clothing.
Manafort’s attorney, Jeffrey Neiman, said government prosecutors were trying to embarrass his client.
“Today’s civil lawsuit seeks a money judgment against Mr. Manafort for simply failing to file a tax form,” Neiman said in a statement. “Mr. Manafort was aware the government was going to file the suit because he has tried for months to resolve this civil matter. Nonetheless, the government insisted on filing this suit simply to embarrass Mr. Manafort.”
The lawsuit contradicted the attorney’s statement when it implied Manafort was not cooperating with the government’s effort to collect the back taxes. The Treasury Department sent him a notice in July 2020 about the debt but Manafort did not pay, according to prosecutors.
In a different prosecution, Manafort was sentenced in March 2019 to 47 months in prison on tax and fraud charges. Months later, then-President Trump pardoned him while accusing prosecutors of overreach.
The lawsuit filed Thursday drew evidence of fraud from Manafort’s guilty plea in the Washington, D.C., criminal case. As part of the plea agreement, he admitted his “willful failure to comply with the [foreign bank asset] filing requirements for several years, including 2013 and 2014.”
A Senate committee concluded in a 2020 report that Russia used Manafort to help Trump win the 2016 election.
Manafort reportedly told the media this month he plans to return soon to business consulting.
The lawsuit filed Thursday is USA v. Paul J. Manafort Jr., case number 9:22-cv-80660, in the U.S. District Court for the Southern District of Florida.
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