“I don’t see what relationship this indictment has with what the special counsel is investigating,” U.S. Senior Judge T.S. Ellis III, a Reagan appointee, told government lawyers at Friday’s hearing.
The Virginia indictment alleges Manafort hid tens of millions of dollars he earned advising pro-Russia politicians in Ukraine from the Internal Revenue Service, money earned from 2006 through 2015. The indictment accuses Manafort of fraudulently obtaining millions in loans from financial institutions later, after his Ukrainian work dwindled. Prosecutors say that part of the conspiracy stretched from 2015 through January 2017, including the months while he was working on the Trump campaign.
Under questioning from Ellis, government lawyers admitted that Manafort had been under investigation for years in the Eastern District of Virginia before Mueller was ever appointed special counsel. And Ellis said it was implausible to think that the charges against Manafort, which primarily concern his business dealings and tax returns from about 2005 through 2015, could have a real connection to Trump’s 2016 presidential campaign.
Ellis suggested the real reason Mueller is pursuing Manafort is to pressure him to “sing” against Trump, though he also noted that such a strategy is a “time-honored practice” for prosecutors and not necessarily illegal. Ellis went on to say that defense lawyers are naturally concerned that defendants in that situation will not only sing but “compose” — meaning that they’ll make up facts.
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Manafort’s lawyer, Kevin Downing, has argued that a special counsel should be tightly constrained in how it operates. He noted that the law authorizing the special counsel was passed to replace the old independent counsel law, which was derided for allowing overbroad, yearslong investigations during the Reagan and Clinton administrations.
Downing has argued that the charges should be dismissed if Mueller lacked authority to bring them. Ellis, though, suggested another remedy would be to simply hand the case back to regular federal prosecutors.
Ellis withheld ruling on the motion and will issue a written ruling at a later date.