A federal judge has rejected former Trump campaign chairman Paul Manafort’s latest effort to win release from house arrest by offering up properties aimed at fulfilling the $10 million bail the judge has set.
U.S. District Court Judge Amy Berman Jackson said she would not accept Manafort’s Alexandria, Virginia, condominium as part of the bail package because it is pledged as part of the security for a $10.5 million loan Manafort obtained in 2016 on another home in Long Island, New York.
“The Court has determined that in the absence of additional security or assets pledged by a surety, it will not accept as security the Alexandria property that has already been pledged in its entirety as collateral for the loan on the Bridgehampton property,” Jackson wrote in an order Thursday afternoon.
Lawyers for Manafort argued in a court filing earlier this week that Manafort’s Long Island home is worth $13.5 million and could more than satisfy the outstanding loan if he defaulted. But the judge said both properties are liable for foreclosure under the loan, so the Alexandria condo isn’t a free-and-clear asset that can be used to secure Manafort’s release.
“Notwithstanding the information provided to the Court concerning the borrower’s understanding of the transaction, none of the loan documents submitted to the Court specifies that the security for the bank loan must be forfeited in any particular order,” Jackson wrote.
Manafort had offered four properties to secure his bond, including the Alexandria condo, a property in Arlington, Virginia, and two properties in Manhattan. One of those is an apartment in Trump Tower.
The judge did not mention it in her order Thursday but prosecutors have alleged that Manafort obtained the $10.5 million loan under false pretenses by using “doctored” financial statements for his consulting business.
There have been no public charges filed over the alleged fraud, although there was an indication Wednesday that prosecutors filed some new charges in the case under seal.
Manafort’s attorneys, who are under a gag order in the case, have not responded to the allegations. They did not respond to requests for comment Thursday.
Manafort has been under house arrest at his Alexandria condo since October, when special counsel Robert Mueller’s office obtained an indictment against Manafort and former Trump campaign aide Rick Gates on charges including money laundering and failing to register as foreign agents in connection with their work related to Ukraine.
Gates was released from house arrest in January after posting a $5 million bail package. The house arrest for both men allowed for exceptions for legal meetings, medical treatment and religious observances. They were also allowed for some family events.