Manafort hid Ukraine income in foreign accounts, US prosecutor says

ALEXANDRIA, Va., July 31 (Reuters) - Paul Manafort, U.S. President Donald Trump's former campaign chairman, opened more than 30 bank accounts in three foreign countries to "receive and hide" his income from Ukraine, a federal prosecutor told jurors on Tuesday.

Uzo Asonye, one of the prosecutors in Special Counsel Robert Mueller's Russia probe, made the comment as part of the prosecution's opening statement as the trial of Manafort got underway in a Virginia federal court.

The high-profile trial is the first to arise out of Special Counsel Robert Mueller's Russia probe. Earlier in the day, prosecutors and defense attorneys selected a 12-member jury to weigh Manafort's fate.

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Paul Manafort's trial for bank and tax fraud charges
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Paul Manafort's trial for bank and tax fraud charges
After a guilty verdict on the first count, an unidentified man holds a sign outside the U.S. District Courthouse for the fourth day of jury deliberations in former Trump campaign manager Paul Manafort's trial on bank and tax fraud charges stemming from Special Counsel Robert Mueller's investigation of Russia's role in the 2016 U.S. presidential election, in Alexandria, Virginia, U.S., August 21, 2018. REUTERS/Mary F. Calvert TPX IMAGES OF THE DAY
The 2012-issued passport of President Donald Trump's former campaign chairman Paul Manafort, included in the government's exhibits admitted into evidence during Manafort's trial, is shown in this image released from Special Counsel Robert Mueller's office in Washington, DC, U.S. on August 1, 2018. Image released August 1, 2018. Courtesy Special Counsel's Office/Handout via REUTERS ATTENTION EDITORS - THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY.
ALEXANDRIA, VA - JULY 31: An activist holds a picture of former Trump campaign chairman Paul Manafort during a protest outside the Albert V. Bryan United States Courthouse prior to the first day of the trial of Manafort July 31, 2018 in Alexandria, Virginia. Manafort was charged with financial frauds and is the first defendant in special counsel Robert Mueller's investigation into Russian interference in the 2016 presidential election to face trial. (Photo by Alex Wong/Getty Images)
Jackets included in the government's exhibits admitted into evidence, at the trial of President Donald Trump's former campaign chairman Paul Manafort, are seen in this combination image of pictures released from Special Counsel Robert Mueller's office in Washington, DC, U.S. on August 1, 2018. Courtesy Special Counsel� Office/Handout via REUTERS ATTENTION EDITORS - THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY. THIS PICTURE WAS PROCESSED BY REUTERS TO ENHANCE QUALITY. UNPROCESSED VERSIONS HAVE BEEN PROVIDED SEPARATELY
ALEXANDRIA, VA - JULY 31: Activists hold signs during a protest outside the Albert V. Bryan United States Courthouse prior to the first day of the trial of former Trump campaign chairman Paul Manafort July 31, 2018 in Alexandria, Virginia. Manafort was charged with financial frauds and is the first defendant in special counsel Robert Mueller's investigation into Russian interference in the 2016 presidential election to face trial. (Photo by Alex Wong/Getty Images)
ALEXANDRIA, VA - AUGUST 02: Kathleen Manafort (L), wife of former Trump campaign chairman Paul Manafort, arrives at the Albert V. Bryan United States Courthouse August 2, 2018 in Alexandria, Virginia. Manafort has been charged with bank and tax fraud as part of special counsel Robert Mueller's investigation into Russian interference in the 2016 presidential election. (Photo by Win McNamee/Getty Images)
Defense Attorney Kevin Downing arrives at U.S. District Court for the opening day of Former Trump Campaign Manager Paul Manafort's trial on bank and tax fraud charges stemming from Special Counsel Robert Mueller's investigation into Russian meddling in the 2016 U.S. presidential election, in Alexandria, Virginia, U.S., July 31, 2018. REUTERS/Aaron P. Bernstein
Protesters gather outside the US District Courthouse ahead of Former Trump campaign manager Paul Manafort arriving for the opening day of his trial on bank and tax fraud charges stemming from Special Counsel Robert Mueller's investigation into Russian meddling in the 2016 U.S. presidential election, in Alexandria, Virginia, U.S., July 31, 2018. REUTERS/Aaron P. Bernstein
Defense Attorney Kevin Downing arrives at U.S. District Court for the opening day of Former Trump Campaign Manager Paul Manafort's trial on bank and tax fraud charges stemming from Special Counsel Robert Mueller's investigation into Russian meddling in the 2016 U.S. presidential election, in Alexandria, Virginia, U.S., July 31, 2018. REUTERS/Aaron P. Bernstein
Heather Washkuhn, manager of Paul Manafort's personal and business finances, left, walks toward District Court in Alexandria, Virginia, U.S., on Thursday, Aug. 2, 2018. Washkuhn told the jury that she had no knowledge of the offshore companies and bank accounts that prosecutors say helped former Donald Trump campaign manager Paul Manafort hide tens of millions in income from the U.S. government. Photographer: Andrew Harrer/Bloomberg via Getty Images
Defense Attorney Kevin Downing arrives at U.S. District Court for the opening day of Former Trump Campaign Manager Paul Manafort's trial on bank and tax fraud charges stemming from Special Counsel Robert Mueller's investigation into Russian meddling in the 2016 U.S. presidential election, in Alexandria, Virginia, U.S., July 31, 2018. REUTERS/Aaron P. Bernstein
The U.S. District Courthouse is seen ahead of Former Trump campaign manager Paul Manafort arriving for the opening day of his trial on bank and tax fraud charges stemming from Special Counsel Robert Mueller's investigation into Russian meddling in the 2016 U.S. presidential election, in Alexandria, Virginia, U.S., July 31, 2018. REUTERS/Aaron P. Bernstein
ALEXANDRIA, VA - JULY 31: Members of Manafort's legal team Jay Nanavati, (C), and Richard Westling, (R), wait to enter the Albert V. Bryan United States Courthouse to attend the trial of former Trump campaign manager Paul Manafort who was arrested last year on financial fraud charges, on July 31, 2018 in Alexandria, Virginia. (Photo by Mark Wilson/Getty Images)
The U.S. District Courthouse is seen ahead of Former Trump campaign manager Paul Manafort arriving for the opening day of his trial on bank and tax fraud charges stemming from Special Counsel Robert Mueller's investigation into Russian meddling in the 2016 U.S. presidential election, in Alexandria, Virginia, U.S., July 31, 2018. REUTERS/Aaron P. Bernstein
Protesters gather outside the U.S. District Courthouse ahead of Former Trump campaign manager Paul Manafort arriving for the opening day of his trial on bank and tax fraud charges stemming from Special Counsel Robert Mueller's investigation into Russian meddling in the 2016 U.S. presidential election, in Alexandria, Virginia, U.S., July 31, 2018. REUTERS/Aaron P. Bernstein
UNITED STATES JULY 31: Media set up microphones in front of the United States District Court in Alexandria, Virginia where President Donald Trump's former campaign manager Paul Manafort stands trial July 31, 2018. (Photo By Sarah Silbiger/CQ Roll Call)
UNITED STATES JULY 31: A protester is seen outside of the United States District Court in Alexandria, Virginia where President Donald Trump's former campaign manager Paul Manafort stands trial July 31, 2018. (Photo By Sarah Silbiger/CQ Roll Call)
ALEXANDRIA, VA - JULY 31: An activist wears an 'It's Mueller Time' T-shirt as she hits a drum during a protest outside the Albert V. Bryan United States Courthouse prior to the first day of the trial of former Trump campaign chairman Paul Manafort July 31, 2018 in Alexandria, Virginia. Manafort was charged with financial frauds and is the first defendant in special counsel Robert Mueller's investigation into Russian interference in the 2016 presidential election to face trial. (Photo by Alex Wong/Getty Images)
UNITED STATES JULY 31: A protester is seen outside of the United States District Court in Alexandria, Virginia where President Donald Trump's former campaign manager Paul Manafort stands trial July 31, 2018. (Photo By Sarah Silbiger/CQ Roll Call)
ALEXANDRIA, VA - JULY 31: An activist holds a puppet of U.S. President Donald Trump during a protest outside the Albert V. Bryan United States Courthouse prior to the first day of the trial of former Trump campaign chairman Paul Manafort July 31, 2018 in Alexandria, Virginia. Manafort was charged with financial frauds and is the first defendant in special counsel Robert Mueller's investigation into Russian interference in the 2016 presidential election to face trial. (Photo by Alex Wong/Getty Images)
ALEXANDRIA, VA - JULY 31: People wait in-line to enter the Albert V. Bryan United States Courthouse to hear the first day of the trial of former Trump campaign chairman Paul Manafort July 31, 2018 in Alexandria, Virginia. Manafort was charged with financial frauds and is the first defendant in special counsel Robert Mueller's investigation into Russian interference in the 2016 presidential election to face trial. (Photo by Alex Wong/Getty Images)
Jay Nanavati, co-counsel for former Trump Campaign Manger Paul Manafort, left, and Richard Westling, co-counsel for former Trump Campaign Manger Paul Manafort, right, wait to enter District Court in Alexandria, Virginia, U.S., on Tuesday, July 31, 2018. The 18-count Alexandria indictment includes five charges of filing false tax returns, five for conspiracy to commit bank fraud, four bank fraud counts and four counts of failing to file reports of his foreign bank and financial accounts with the U.S. Photographer: Zach Gibson/Bloomberg via Getty Images
ALEXANDRIA, VA - JULY 31: Anti Trump and Manafort protesters gather in front of the Albert V. Bryan United States Courthouse where the trial of former Trump campaign manager Paul Manafort starts today, on July 31, 2018 in Alexandria, Virginia. Manafort was arrested last year on financial fraud charges. (Photo by Mark Wilson/Getty Images)
ALEXANDRIA, VA - JULY 31: A protester stands in front of the Albert V. Bryan United States Courthouse where the trial of former Trump campaign manager Paul Manafort starts today, on July 31, 2018 in Alexandria, Virginia. Manafort was arrested last year on financial fraud charges. (Photo by Mark Wilson/Getty Images)
Paul Manafort's lawyer Thomas Zehnle (C) is surrounded by media as he arrives at the Albert V. Bryan US Courthouse in Alexandria, Virginia on July 31, 20187, for the opening of the jury selection for the Paul Manafort trial. - Donald Trump's former campaign chief Paul Manafort on July 31, 2018 becomes the first member of the president's election team to face trial on charges stemming from the probe into Russian interference in the 2016 vote. Manafort, 69, has pleaded not guilty to 18 counts of bank and tax fraud related to his lobbying activities on behalf of the former Russian-backed government of Ukraine. (Photo by Jim WATSON / AFP) (Photo credit should read JIM WATSON/AFP/Getty Images)
ALEXANDRIA, VA - JULY 31: People wait in line to enter the Albert V. Bryan United States Courthouse to attend the trial of former Trump campaign manager Paul Manafort was arrested last year on financial fraud charges, on July 31, 2018 in Alexandria, Virginia. (Photo by Mark Wilson/Getty Images)
Kathleen Manafort departs from U.S. District Court following the opening day of Former Trump Campaign Manager Paul Manafort's trial on bank and tax fraud charges stemming from Special Counsel Robert Mueller's investigation of Russia's role in the 2016 U.S. presidential election, in Alexandria, Virginia, U.S., July 31, 2018. REUTERS/Aaron P. Bernstein
Defense Attorney Kevin Downing departs from U.S. District Court following the opening day of Former Trump Campaign Manager Paul Manafort's trial on bank and tax fraud charges stemming from Special Counsel Robert Mueller?s investigation of Russia's role in the 2016 U.S. presidential election, in Alexandria, Virginia, U.S., July 31, 2018. REUTERS/Aaron P. Bernstein
ALEXANDRIA, VA - AUGUST 02: Heather Washkuhn, managing director of the accounting firm Nigro Karlin Segal Feldstein & Bolno, arrives at the Albert V. Bryan United States Courthouse to testify in the Paul Manafort trial August 2, 2018 in Alexandria, Virginia. Manafort has been charged with bank and tax fraud as part of special counsel Robert Mueller's investigation into Russian interference in the 2016 presidential election. (Photo by Win McNamee/Getty Images)
ALEXANDRIA, VA - AUGUST 02: Jay Nanavati, attorney of former Trump campaign chairman Paul Manafort, arrives at the Albert V. Bryan United States Courthouse August 2, 2018 in Alexandria, Virginia. Manafort has been charged with bank and tax fraud as part of special counsel Robert Mueller's investigation into Russian interference in the 2016 presidential election. (Photo by Win McNamee/Getty Images)
ALEXANDRIA, VA - AUGUST 02: Kevin Downing, attorney of former Trump campaign chairman Paul Manafort, outside the Albert V. Bryan United States Courthouse August 2, 2018 in Alexandria, Virginia. Manafort has been charged with bank and tax fraud as part of special counsel Robert Mueller's investigation into Russian interference in the 2016 presidential election. (Photo by Win McNamee/Getty Images)
ALEXANDRIA, VA - AUGUST 01: The statue of Justice outside the Albert V. Bryan U.S. Courthouse is reflected in a television news camera lens on the second day of former Trump campaign chairman Paul Manafort's trial August 1, 2018 in Alexandria, Virginia. Manafort has been charged with bank and tax fraud as part of special counsel Robert Mueller's investigation into Russian interference in the 2016 presidential election. (Photo by Chip Somodevilla/Getty Images)
Accountant Cindy Laporta arrives to testify on day 5 of the trial against former Trump campaign manager Paul Manafort on 18 charges stemming from bank and tax fraud at US District Court in Alexandria, Virginia, on August 6, 2018. (Photo by SAUL LOEB / AFP) (Photo credit should read SAUL LOEB/AFP/Getty Images)
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Manafort faces charges that he hid tens of millions of dollars earned in Ukraine in offshore accounts and defrauded banks for loans. Four alternate jurors, three women and one man, also were chosen.

"A man in this courtroom believed the law did not apply to him. Not tax, not banking law," Asonye told the jury of six men and six women in federal court in Virginia, referring to Manafort.

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

SEE ALSO: Witness list for trial of Trump's former campaign chief released

 

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 Internal Revenue Service.

Asonye said Manafort set up more than 30 bank accounts in overseas countries and funneled millions of dollars into them in order to bankroll an extravagant lifestyle. Asonye described how Manafort snapped up expensive real estate in the United States, spent millions of dollars on renovating his properties and more than a half million dollars on "fancy clothes."

Manafort has pleaded not guilty to all the charges.

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

Prosecutors are seeking to provide details of Manafort's work for a pro-Russian political party in Ukraine, raising the possibility that new information about his Russian connections could emerge.Manafort has filed a motion to have details of that work excluded from trial.

Manafort faces 18 criminal counts, which center on allegations that he hid much of the $60 million he earned in Ukraine in undisclosed overseas bank accounts and failed to pay taxes on it.

Prosecutors also accuse him of lying to U.S. banks to obtain real estate loans in a bid to maintain a lavish lifestyle after his client, former pro-Russia Ukrainian President Viktor Yanukovych, fell from power in 2014 and the money stopped.

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Paul Manafort indicted in Russia probe
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Paul Manafort indicted in Russia probe
U.S. President Donald Trump's former campaign manager Paul Manafort arrives for a hearing at U.S. District Court in Washington, U.S., November 2, 2017. REUTERS/Aaron P. Bernstein
Kevin Downing (C), attorney for President Donald Trump's former campaign manager Paul Manafort, arrives for a hearing at U.S. District Court in Washington, U.S., November 6, 2017. REUTERS/Yuri Gripas
Paul Manafort, former campaign manager for U.S. President Donald Trump, departs after a bond hearing at U.S. District Court in Washington, U.S., November 6, 2017. REUTERS/Joshua Roberts
Paul Manafort, former campaign manager for U.S. President Donald Trump, departs after a bond hearing at U.S. District Court in Washington, U.S., November 6, 2017. REUTERS/Joshua Roberts
U.S. President Donald Trump's former campaign manager Paul Manafort departs U.S. District Court after a hearing in the first charges stemming from a special counsel investigation of possible Russian meddling in the 2016 presidential election in Washington, U.S., October 30, 2017. REUTERS/Jim Bourg
Former Trump 2016 campaign chairman Paul Manafort (L) leaves U.S. Federal Court after being arraigned on twelve federal charges in the investigation into alleged Russian meddling in the 2016 U.S. presidential election in Washington, U.S. October 30, 2017. REUTERS/James Lawler Duggan
Former Trump 2016 campaign chairman Paul Manafort (L) leaves U.S. Federal Court after being arraigned on twelve federal charges in the investigation into alleged Russian meddling in the 2016 U.S. presidential election in Washington, U.S. October 30, 2017. REUTERS/James Lawler Duggan
Former Trump campaign manager Paul Manafort, one focus of special counsel Robert Mueller's investigation into alleged Russian meddling in the 2016 U.S. presidential election, hides behind his car visor as he leaves his home in Alexandria, Virginia, U.S. October 30, 2017. REUTERS/Jonathan Ernst TPX IMAGES OF THE DAY
U.S. President Donald Trump's former campaign manager Paul Manafort departs U.S. District Court after a hearing in the first charges stemming from a special counsel investigation of possible Russian meddling in the 2016 presidential election in Washington, U.S., October 30, 2017. REUTERS/Jim Bourg
U.S. President Donald Trump's former campaign manager Paul Manafort arrives for a hearing at U.S. District Court in Washington, U.S., November 2, 2017. REUTERS/Aaron P. Bernstein
U.S. President Donald Trump's former campaign manager Paul Manafort uses a sun visor to block the view of photographers as departs U.S. District Court after a hearing in the first charges stemming from a special counsel investigation of possible Russian meddling in the 2016 presidential election in Washington, U.S., October 30, 2017. REUTERS/Jim Bourg
WASHINGTON, DC - NOVEMBER 2: Ex Trump campaign official Paul Manafort, center, departs U.S. District Court with his attorney Kevin Downing, left, on November, 02, 2017 in Washington, DC. (Photo by Bill O'Leary/The Washington Post via Getty Images)
Paul Manafort, former campaign manager for Donald Trump, walks out of the U.S. Courthouse after a bond hearing in Washington, D.C., U.S., on Monday, Nov. 6, 2017. Manafort, 68, an international political consultant, was accused along with his right-hand man, Rick Gates, of lying to U.S. authorities about their work in Ukraine, laundering millions of dollars, and hiding offshore accounts. Both pleaded not guilty on Oct. 30. Photographer: Andrew Harrer/Bloomberg via Getty Images
WASHINGTON, DC - NOVEMBER 02: Former Donald Trump campaign manager, Paul Manafort arrives at the E. Barrett Prettyman United States Courthouse on Thursday November 02, 2017 in Washington, DC. Manafort faces several charges. (Photo by Matt McClain/The Washington Post via Getty Images)
WASHINGTON, DC - NOVEMBER 06: Former Trump campaign manager Paul Manafort and his wife Kathleen arrive at the Prettyman Federal Courthouse for a bail hearing November 6, 2017 in Washington, DC. Manafort and his former business partner Richard Gates both pleaded not guilty Monday to a 12-charge indictment that included money laundering and conspiracy. (Photo by Mark Wilson/Getty Images)
WASHINGTON, DC - NOVEMBER 06: Kevin Downing, attorney of former Trump campaign chairman Paul Manafort, arrives at a U.S. District Court House November 6, 2017 in Washington, DC. Manafort and his associate Rick Gates are scheduled to be back in court for a bond hearing this morning after they pleaded not guilty on October 30 to charges in a 12-count indictment, ranging from money laundering to acting as unregistered agents of Ukraine's former pro-Russian government. (Photo by Alex Wong/Getty Images)
Paul Manafort, former campaign manager for Donald Trump, right, arrives to the U.S. Courthouse for a bond hearing in Washington, D.C., U.S., on Monday, Nov. 6, 2017. Manafort, 68, an international political consultant, was accused along with his right-hand man, Rick Gates, of lying to U.S. authorities about their work in Ukraine, laundering millions of dollars, and hiding offshore accounts. Both pleaded not guilty on Oct. 30. Photographer: Andrew Harrer/Bloomberg via Getty Images
UNITED STATES - NOVEMBER 6: Former Trump campaign chairman Paul Manafort leaves the E. Barrett Prettyman U.S. Courthouse after a court hearing on the terms of his bail and house arrest on Monday, Nov. 6, 2017. (Photo By Bill Clark/CQ Roll Call)
WASHINGTON, DC - NOVEMBER 02: Richard Gates arrives at the Prettyman Federal Court Building for a hearing November 2, 2017 in Washington, DC. Gates and former business partner and former Trump campaign chairman Paul Manafort both pleaded not guilty Monday to a 12-charge indictment that included money laundering and conspiracy. (Photo by Chip Somodevilla/Getty Images)
WASHINGTON, DC - OCTOBER 30: Kevin Downing, who is an attorney for Paul Manafort exits the William B. Bryant Annex United States Courthouse after Manfort was indicted on several charges on Monday October 30, 2017 in Washington, DC. (Photo by Matt McClain/The Washington Post via Getty Images)
WASHINGTON, DC - OCTOBER 30: Former Trump campaign chairman Paul Manafort gets into his car after leaving federal court, October 30, 2017 in Washington, DC. Paul Manafort and Rick Gates, have been indicted by a federal grand jury in the investigation into Russian meddling in the U.S. election. (Photo by Drew Angerer/Getty Images)
Paul Manafort, former campaign manager for US President Donald Trump, leaves the E. Barrett Prettyman United States Court House after being charged October 30, 2017 in Washington, DC. President Donald Trump's former campaign chairman Paul Manafort pleaded not guilty Monday to charges of conspiracy and money laundering after the Justice Department unveiled the first indictments in the probe into Russian election interference. Manafort, 68, and business partner Rick Gates, 45, both entered not guilty pleas in a Washington court after being read charges that they hid millions of dollars they earned working for former Ukrainian politician Viktor Yanukovych and his pro-Moscow political party. / AFP PHOTO / Brendan Smialowski (Photo credit should read BRENDAN SMIALOWSKI/AFP/Getty Images)
Paul Manafort, former campaign manager for Donald Trump, right, exits the U.S. Courthouse in Washington, D.C., U.S., on Monday, Oct. 30, 2017. The federal investigation into whether President Trump's campaign colluded with Russia took a major turn Monday as authorities charged three people a former campaign chief, his business associate and an ex-policy adviser -- with crimes including money laundering, lying to the FBI and conspiracy. Photographer: Zach Gibson/Bloomberg via Getty Images
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Manafort actively conferred with his lawyers during the jury selection process, writing and passing notes. Manafort's wife, Kathleen, was sitting behind him in the courtroom.

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

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 coordination between Trump's campaign and Moscow.

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

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

Prosecutors have said they will not present evidence of collusion at this trial. The Virginia trial will be followed by a second one in Washington in September in which Manafort is charged with money laundering, failing to register as a foreign agent and witness tampering. Manafort has pleaded not guilty to those charges, as well.

(Additional reporting by Lawrence Hurley; Editing by John Walcott, Peter Cooney and Will Dunham)

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