ALEXANDRIA, Va. — Paul Manafort reported $13.4 million in personal income to the IRS between 2010 and 2014 — but repeatedly failed to disclose money stashed in overseas accounts, his longtime accountant testified Friday.
“Did KWC ask Mr. Manafort whether he had any foreign bank accounts each year,” prosecutor Uzo Asonye questioned certified public accountant Philip Ayliff about his firm Kositzka & Wicks Company.
“Yes,” Ayliff answered.
“What did Mr. Manafort report?” Asonye asked.
“No,” the CPA responded.
Ayliff testified that Manafort — who served as President Trump’s campaign chairman and is facing criminal bank and tax fraud charges — repeatedly certified to him in writing that he had no interest in or control over foreign bank accounts.
Asonye also rattled off the names of about a dozen foreign entities including Global Highway Limited and Peranova Holdings that prosecutors claim Manafort used to buy luxury goods including a $15,000 ostrich leather jacket. Earlier this week business owners including the manager of Alan Couture in New York where Manafort purchased the ostrich coat testified that Manafort paid by international wire from bans in Cyprus.
Ayliff told jurors he believed what Manafort and his former right-hand-man Rick Gates told him — that the entities were overseas clients.
But Ayliff started to wonder about how Manafort paid for pricey real estate including a $2.85 million Brooklyn brownstone referenced on his 2013 tax returns.
Asonye showed Ayliff an email Gates had written him in September 2014.
“What do you ask about the Union Street purchase?” Asonye asked.
“Where did the funds come from for the purchase,” Ayliff testified.
Gates responded that the money was from “a savings account of Kathy’s accord to PJM,” referring to Paul J. Manafort and his wife Kathy.
“Would you want to know if the source of these funds was a foreign bank account?” Asonye asked.
“Yes,” Ayliff answered, adding that he’d want to “comply with the law” and declare that money on Manafort’s tax returns.
Gates has turned government witness and is expected to testify in the coming days.
