RICHMOND, Va. – One of the two men indicted Monday for conspiracy against the United States lives in Richmond, in the Westmoreland Place subdivision off Cary Street Road.
Since midnight network news crews have been camped outside the $1.8 million home of former President Donald Trump campaign official Rick Gates. Gates surrendered Monday to Justice Department special counsel Robert Mueller, along with former Trump campaign chairman Paul Manafort.
Property records list Gates and his wife as owners of the home off Virginia Street. A neighbor confirmed Gates lives there with his wife, and said “they are a nice family; their kids are nice.”
“I don’t talk business with him,” the neighbor said, and walked away.
The home exterior is currently being renovated. A man walked over and removed a landscaping sign from the yard. “Someone asked me to remove it,” he said.
Gates, 45, is a longtime business associate of Manafort, 68, having worked together since the mid-2000s, and he served as his deputy on the campaign. The two were indicted under seal on Friday, CNN reported, citing a source close to the investigation.
The indictment against the two men contains 12 counts: conspiracy against the United States, conspiracy to launder money, unregistered agent of a foreign principal, false and misleading US Foreign Agents Registration Act (FARA) statements, false statements, and seven counts of failure to file reports of foreign bank and financial accounts.
Manafort arrived at the FBI’s Washington field office Monday morning. The two are being processed separately, according to a law enforcement official.
Their initial court appearances were made before US District Magistrate Judge Deborah Robinson at 1:30 p.m. ET Monday. Both pleaded not guilty.
The following is a statement from Glenn Selig (pronounced Sellig), spokesman for Rick Gates, who was indicted today in federal court:
"He welcomes the opportunity to confront these charges in court," said spokesman Glenn Selig. "He is not going to comment further until he has had a chance to review the lengthy indictment with his legal team. In the meanwhile, he would appreciate you respecting his and his family’s privacy as they weather this unexpected and hasty proceeding designed to accommodate perhaps political and press considerations rather than his right to have counsel of his choice by his side during this most troubling and challenging day for him and his loved ones. This fight is just beginning."
The indictment alleges that Gates was instrumental in helping Manafort defraud U.S. institutions and that they both concealed from the U.S. their work with the Ukraine and its political parties and leaders.
The indictments also states that Gates used "money from these offshore accounts to pay for his personal expenses, including his mortgage, children's tuition, and interior decorating of his Virginia residence."
[WATCH: Jake Burns reporting live starting at 5 p.m. Monday.]
Dramatic new development
The charges against two top officials from President Donald Trump’s campaign signals a dramatic new phase of Mueller’s wide-ranging investigation into possible collusion between the Russian government and members of Trump’s team as well as potential obstruction of justice and financial crimes.
A White House spokesman told CNN the Trump administration “may not have a response at all” regarding the charges.
Manafort, whose work for former Ukrainian President Viktor Yanukovych has attracted scrutiny from federal investigators, has previously denied financial wrongdoing regarding his Ukraine-related payments, his bank accounts in offshore tax shelters and his various real-estate transactions over the years. Gates, who has also denied wrongdoing, was Manafort’s longtime business associate in his lobbying firm before being tapped as his deputy on the Trump campaign.
They are the first two officials in Trump’s orbit charged in connection with the special counsel investigation, which is exploring whether Trump’s actions surrounding the firing of former FBI Director James Comey amount to obstruction of justice. Mueller has taken a broad approach to his mandate that includes a focus on the financial dealings of Trump’s team.
Before the indictment, the FBI in July executed a so-called no-knock search warrant with guns drawn at Manafort’s home in Alexandria, Virginia, seizing financial and tax documents, including some that had already been provided to congressional investigators.
Manafort’s Ukraine work scrutinized
Federal investigators’ interest in Manafort and Gates goes back well before the special counsel was appointed. For about a decade, Manafort worked for Yanukovych and his Russia-friendly Party of Regions. Manafort’s work spurred a separate federal investigation in 2014, which examined whether he and other Washington-based lobbying firms failed to register as foreign agents for the Yanukovych regime.
Gates joined Manafort’s lobbying firm in the mid-2000s and handled projects in Eastern Europe, which later included work for Yanukovych.
Yanukovych was ousted amid street protests in 2014, and his pro-Russian Party of Regions was accused of corruption and laundering millions of dollars out of Ukraine. The FBI sought to learn whether those who worked for Yanukovych — Manafort’s firm, as well as Washington lobbying firms Mercury LLC and the Podesta Group — played a role. The Podesta Group is headed by Tony Podesta, the brother of John Podesta, the former chief of staff of the Obama White House.
At the time, the case hinged on the failure by the US firms to register under the FARA, a law the Justice Department rarely uses to bring charges. Earlier this year, all three firms filed retroactively with the Justice Department.
Gates once became involved in a failed business venture with Manafort and Russian oligarch Oleg Deripaska, a close ally of Russian President Vladimir Putin, according to legal filings. The plan was for Deripaska to invest $100 million in a private equity company that Manafort and Gates would manage.
The project fell apart, and Deripaska sued Manafort and Gates in the Cayman Islands for mishandling his money. Deripaska, a Russian citizen, has offered to cooperate with Capitol Hill investigations in exchange for immunity.
A secret order authorized by the court that handles the Foreign Intelligence Surveillance Act (FISA) began after Manafort became the subject of an FBI investigation that began in 2014, sources previously told CNN. But the surveillance was discontinued last year due to lack of evidence.
Later in 2016, however, the FBI restarted the surveillance as part of its investigation into Russian meddling. Investigators’ interest in Manafort was reignited due to intercepted communications between Manafort and suspected Russian operatives, and among the Russians themselves, CNN has reported.
The investigation into Manafort intensified after Mueller was named as special counsel in May. Mueller has hired a team of prosecutors who have examined Manafort’s financial and tax history stretching back 11 years to January 2006, while he was working in Ukraine.
Running the Trump campaign
Manafort entered the Trump campaign orbit in early 2016, when he reached out to Trump’s daughter Ivanka Trump and son-in-law Jared Kushner and offered to work for free, according to The New York Times.
Manafort joined the Trump campaign in March 2016 to help with delegate counting ahead of the Republican National Convention, as some Republicans hoped to use arcane delegate procedures to wrest the nomination from Trump at the convention in Cleveland.
He soon was promoted to campaign chairman, and he became the top official on the campaign after then-campaign manager Corey Lewandowski was fired in June 2016.
His tenure didn’t last long.
The Times reported in August 2016 that Ukrainian investigators found Manafort’s name in an off-the-books, handwritten ledger detailing secret payments — including $12.7 million to Manafort from Yanukovych’s Party of Regions.
Manafort denied he had received any such payment and claims the ledger was forged. But just days later, he resigned from the campaign as the accusations swirling around him became a major distraction for Trump.
In addition to Manafort’s Ukraine business dealings, his real estate dealings, overseas business ventures and bank accounts in offshore havens like Cyprus have also come under scrutiny.
This story is breaking and will be updated.