Trade-based financial crime suspected in former Trump campaign manager’s fraud charges

US president Donald Trump’s former campaign manager and lobbyist Paul Manafort and his deputy Rick Gates, who have already pleaded guilty to several charges related to fraud, may also have been involved in trade-based money laundering.

The pair face new charges that suggest that value transfer in purchases of Persian rugs may have been used to shift funds that Manafort earned in consultancy fees.

New charges

The former campaign chief, with Gates’ assistance covered up US$30 million that Manafort made from consulting work in the Ukraine according to the new charges.

Prosecutors may focus on the price tags on items purchased by Manafort over the course of several years, perhaps most curiously a bill for more than US$1 million for Persian rugs bought from a retailer in Alexandra, Virginia.

Value transfer

There could be value transfer involved in this matter. One veteran tax inspector told media that, “you can’t legitimately buy US$1 million of rugs in Alexandria.”

Closer investigation may shed light on the roles Manafort and Gates may have played in an underground mis-invoicing network.



Categories: Trade Based Financial crimes News