A tax preparer for Paul Manafort said Friday that she had suspicions about loans extended to Manafort’s consulting business, but included them when filing his taxes anyway.
Cindy Laporta of the firm KWC told the court about two suspect loans to Davis Manafort Partners International: One from Telmar for $900,000 and one from Peranova Holdings for $1.5 million.
She thought both entities were customers of Manafort’s firm and did not see all the documentation for them.
Laporta told the jury she didn’t believe all the representations about the loans from Manafort and Rick Gates, his business associate, but filed the taxes anyway despite her concerns.
Laporta also said Manafort never informed her he had foreign bank accounts or control of other entities overseas, mainly in Cyprus.
“We would always want to know the full picture,” she said.
Prosecutors allege Manafort extended loans from offshore entities to his consulting firm in an effort to hide income.
They argue he concealed millions of dollars he made for political work in Ukraine in overseas accounts to evade taxes.
Laporta also discussed a 2015 conversation about Manafort’s tax bill, during which Gates said Manafort “didn’t have that money” to pay the amount listed in a draft summary of his tax return.
Laporta took over Manafort’s account after his previous tax preparer, Philip Ayliff, retired. Ayliff also testified Friday that Manafort kept relevant details of his finances from him.
Gates then proposed changing the amount of a loan listed in the return, which Laporta told the court would lessen the amount of income taxes Manafort had to pay.
“It’s not appropriate,” Laporta said of Gates’ request.
“You can’t pick and choose what’s a loan and what’s income,” she continued.
In a subsequent email entered as evidence by the prosecution, Gates said they could lessen the loan amount further if needed.
It was determined the loan amount would be lessened to $900,000, which Gates said would result in a tax bill that Manafort could pay.
Laporta received immunity from the government in exchange for her testimony. She said she sought immunity because she feared she would be prosecuted in response to her testimony.
