Prosecutors rip into Trump's ex-campaign chief Manafort as trial opens

Federal prosecutorson Tuesday portrayed U.S. President Donald Trump's former campaign chair Paul Manafort as a man who felt tax and banking laws did not apply to him and described how he opened more than 30 bank accounts in three foreign countries to "receive and hide" income from Ukraine.

Jurors in Federal Court in Virginia heard opening statements from the prosecution and defence in Manafort's trial on charges that he hid tens of millions of dollars earned in Ukraine in offshore accounts and defrauded banks for loans. It is the first trial arising from special counsel Robert Mueller's investigation of Russia's role in the 2016 U.S. presidential election.

Manafort has pleaded not guilty.

Lawyers for Manafort countered by painting their clientas a victim of his employees, including former colleague Rick Gates, who is co-operating with Mueller's probe.

"This case is about taxes and trust," defence attorney Thomas Zehnle told jurors. "His trust in Rick Gates was misplaced," Zehnle said, alleging that Gates had embezzled millions of dollars from Manafort.

Manafort faces 18 criminal charges, which centre on allegations he hid much of the $60 million US he earned in Ukraine in undisclosed overseas bank accounts and failed to pay taxes on the money.

Prosecutor Uzo Asonye, a member of Mueller's team, said of Manafort: "A man in this courtroom believed the law did not apply to him. Not tax, not banking law."

Earlier in the day, prosecutors and defence attorneys selected a 12-member jury to weigh Manafort's fate.

Manafort, 69, was seated in the courtroom wearing a darksuit, white shirt and tie.

Zehnle asked Manafort to stand up and face the jury, calling him "a good man" and a talented political consultant.

But Asonye told jurors the evidence would show Manafort hid"tens of millions of overseas income" to avoid paying taxes.Asonye said the evidence would show he lied to the InternalRevenue Service.

Asonye said Manafort set up bank accounts inoverseas countries and funnelled millions of dollars into them inorder to bankroll an extravagant lifestyle. Asonye described howManafort snapped up expensive real estate in the United States,spent millions of dollars on renovating his properties and morethan a half million dollars on "fancy clothes."

First test for Mueller probe

The tax and bank fraud trial represents the first test ofMueller's ability to win a conviction of a former Trump aide.Three other aides, including Manafort's longtime businesspartner Rick Gates, have already pleaded guilty and areco-operating with Mueller's probe.

Prosecutors are seeking to provide details of Manafort'swork for a pro-Russian political party in Ukraine, raising thepossibility that new information about his Russian connectionscould emerge. Manafort has filed a motion to have details ofthat work excluded from trial.

Manafort faces 18 criminal counts, which centre onallegations he hid much of the $60 million US he earned inUkraine in undisclosed overseas bank accounts and failed to paytaxes on the money.

Prosecutors also accuse him of lying to U.S. banks to obtainreal estate loans in a bid to maintain a lavish lifestyle afterhis client, former pro-Russia Ukrainian president ViktorYanukovych, fell from power in 2014 and the money stopped flowing.

Mueller was appointed by the U.S. Justice Department's No. 2 official last year to take over an FBI investigation into Russia's role in the 2016 presidential election and whether there was unlawful co-ordination between Trump's campaign and Moscow.

U.S. District Judge T.S. Ellis made several jokes during the jury selection process, including about the quality of the lunches jurors will be provided. While many in the courtroom laughed, including Manafort's lawyers, the defendant himself did not.

Manafort actively conferred with his lawyers during the juryselection process, writing and passing notes. Manafort's wife,Kathleen, was sitting behind him in the courtroom.

Outside the courthouse, a handful of protesters displayed alife-sized puppet of Trump and held signs saying "Trump won't dotime for you," "It's Mueller time," and "I like your new suit"alongside a photo of Manafort's mug shot.

Former Trump campaign chair Paul Manafort jailed

6 years ago

Duration 5:44

Paul Manafort, U.S. President Donald Trump's former campaign chair, was sent to jail pending a trial after his bail was revoked. National security lawyer Bradley Moss discusses the latest developments.

Trump has vacillated between showing sympathy for Manafortand trying to distance himself. Manafort worked on Trump'spresidential campaign for five months and attended a June 2016Trump Tower meeting with Russians that is a focal point ofMueller's probe into possible collusion between the campaign andthe Kremlin.

A Manafort conviction would give momentum to Mueller, whohas indicted or secured guilty pleas from 32 people and threecompanies since the probe started 14 months ago. An acquittalwould support efforts by Trump and his allies to portray theprobe as a "witch hunt." Trump denies any collusion with Russia,and on Tuesday tried to make the case publicly that collusionwould not be a crime anyway.

Prosecutors have said they will not present evidence ofcollusion at this trial. The Virginia trial will be followed bya second one in Washington in September in which Manafort ischarged with money laundering, failing to register as a foreignagent and witness tampering. Manafort has pleaded not guilty tothose charges, as well.