A bookkeeper for Paul Manafort and his consulting firm indicated financial documents submitted to banks inflated the income of Manafort’s consulting firm by millions of dollars.
Heather Washkuhn, who said Manafort was one of her three dozen clients at Nigro Karlin Segal Feldstein & Bolno, told the jury that several financial statements from Davis Manafort Partners International, Manafort’s consulting firm, did not come from her firm.
One email exchange entered into evidence by the prosecution showed Rick Gates, Manafort’s business associate, requesting from Washkuhn a copy of the firm’s 2015 financial statement in the form of a Word document.
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Gates said the document was to be submitted to the Banc of California.
Washkuhn informed Gates it could not be sent in that form, which Gates pushed back on.
“Poor system,” Gates said in one email. “Sounds like old technology.”
The financial statement for DMP International from Washkuhn’s firm for 2015 showed net income for the firm of $400,744.
But a document presented by the prosecution that purported to be the 2015 financial statement painted a different picture of the company, showing a net income of more than $4 million.
Washkuhn said there were differences between the two documents, including the font, spacing, and figures. She also said her company’s standard disclaimer was not included on the document Gates emailed to a representative of the Banc of California.
The authenticity of another financial statement for DMP International from 2016 Manafort emailed to Federal Savings Bank was also challenged by Washkuhn.
The month September was spelled incorrectly, she said, and there were missing rows and columns from those typically included on documents from her firm.
Additionally, the word “review” was misspelled.
That financial statement showed income for DMP International as of Sept. 2016 of $3 million.
But DMP International’s financial statements for Nov. 30, 2016 indicated the company had a net loss of more than $1 million.
Washkuhn said DMP International did not lose $4 million from September 2016 to November 2016.
Manafort has been a client of Washkuhn’s since 2011. Her firm prepares general ledgers and financial statements for Manafort’s business and personal accounts. That information is then sent to his tax preparers.
Manafort is facing 18 counts of tax and bank fraud. Among the allegations from the government is that Manafort misled banks to secure loans.
