Former Donald Trump campaign chairman Paul Manafort has been accused of bank fraud that wasn’t part of the original indictment against him, according to court documents filed by special counsel Robert Mueller.
The alleged fraud came to light in an attempt by Manafort to swap out real estate securing his $10 million bail, said the redacted documents, which were released Friday.
Manafort was indicted in October on charges of money laundering, conspiracy and failing to register as a foreign agent in Mueller’s probe of Russian meddling in the 2016 U.S. presidential election. He has pleaded not guilty.
HIs “proposed new bail package is insufficient to assure reasonably his appearance as required by law,” said prosecutors. In part, the package was “deficient in the government’s view in light of additional criminal conduct,” they wrote in the court filing, which was submitted on Tuesday. “That criminal conduct includes a series of bank frauds and bank fraud conspiracies.”
Manafort allegedly submitted “doctored profit and loss statements” to Federal Savings Bank — overstating “by millions of dollars” income for his consulting company — in order to obtain a $9 million mortgage on a property in Virginia that Manafort had hoped to pledge as security for his bail, according to the court filing.
It wasn’t immediately clear if Manfort could now face new charges, or if the alleged criminal conduct only scuttled Manafort’s bail request.
“At the next bail hearing,” prosecutors warned in the documents, “we can proffer to the Court additional evidence related to this and the other bank frauds and conspiracies, which the Court may find relevant to the bail risk posed by Manafort.”
Manafort has been under house arrest at his condominium in Alexandria, Virginia, since he was indicted with Rick Gates, his business partner and a former Trump campaign deputy. CNN reported days ago that Gates was close to a plea deal with Mueller and ready to cooperate with the investigation.