Manafort, Gates Get House Arrest After Not Guilty Pleas

(Bloomberg) -- Former Trump campaign manager Paul Manafort and his associate Rick Gates were put under house arrest because they’re seen as a flight risk after they pleaded not guilty to tax crimes, money laundering, conspiracy and lying to the FBI.

The two men appeared in Washington federal court Monday. They surrendered to the FBI earlier in the day. Their next court appearance is scheduled for Nov. 2 before U.S. District Court Judge Amy Berman Jackson.

Prosecutors said the men are flight risks because of their foreign ties, but didn’t seek their detention ahead of a trial. Manafort was required to post a $10 million bond, while Gates had to put up a $5 million bond to be released. They also surrendered their passports.

Prosecutors said Manafort laundered more than $18 million from offshore accounts to support a “lavish lifestyle,” including buying homes, cars and clothing. He and Gates, his longtime deputy, hid foreign accounts from the U.S. government, failed to disclose work for a foreign government and misrepresented their activities to authorities as recently as 2017, according to the indictment.

In a statement, Glenn Selig, a spokesman for Gates, said his client “welcomes the opportunity to confront these charges in court.” A lawyer for Manafort, Kevin Downing, told reporters after court that the charges have nothing to do with the Trump campaign and were based on a seldom-used legal theory.

To contact the reporter on this story: Andrew Harris in Washington at aharris16@bloomberg.net.

To contact the editors responsible for this story: David Glovin at dglovin@bloomberg.net, Joe Schneider

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