WASHINGTON _ Rick Gates, indicted last week with his former boss and mentor Paul Manafort in the special counsel investigation of Russia's meddling in the 2016 presidential election, is best known as a political consultant and lobbyist. In tandem with Manafort, he raked in tens of millions from Ukrainian and Russian oligarchs and a pro-Moscow Ukrainian political party. And when Manafort chaired Donald Trump's bid for the White House, Gates was his deputy.
Less well known is his sideline as a Hollywood producer. Gates has been involved in a handful of films, including this year's "Walk of Fame," which starred Clint Eastwood's son Scott.
Some of Gates' colleagues in those Tinseltown endeavors, however, have run into trouble with the law. Gates _ who, with Manafort, was charged with money laundering and failing to disclose foreign banks accounts in the first public indictments to emerge from special counsel Robert Mueller's probe _ was listed as providing backing for several films whose other producers have been accused of defrauding investors of millions of dollars.
One of the two producers he worked with, James David Williams, pleaded guilty last month in federal court to fraud, identity theft and money laundering in connection with a scheme _ laid out in a related civil case _ in which he and his co-defendants allegedly kept millions of dollars they told investors was destined for films that would star Nicolas Cage and Harry Connick Jr., among others.
Court filings show that Williams is a cooperating government witness. And typically, under such agreements, the government can request such a witness's assistance in other investigations _ such as Mueller's.
Williams and Steven J. Brown, another producer, along with Minnesota Republican fundraiser Jerry Seppala, were ordered in March 2016 to pay back $10.5 million to one of the duped investors, Bill Busbice Jr., owner of a hunting company in Louisiana and, until recently, star of the reality show "Wildgame Nation."
Gates' ties to Brown go beyond being co-producers, though. Manafort's former lobbying firm, where Gates also worked, paid Brown $40,000 for political and media outreach he did in 2012 and 2013 on behalf a Ukrainian political party, Ukrainian Party of Regions.
Lawyers for Gates and Manafort did not respond to detailed questions about Gates' film work and their ties to the Hollywood producers.
Gates himself has not been sued or charged in connection with any movies. But given that his co-producers have been, and that film production is known for being forgiving when it comes to clouding the original source of funds invested, experts say it's extremely unlikely that Mueller is not investigating this part of Gates' finances.
"Unfortunately for Mr. Gates, what he's about to discover _ if he hasn't already _ is that every transaction he's ever been involved with will be excavated by law enforcement," said Ross Delston, a D.C.-based lawyer and money laundering expert.
"What they will be looking for are deals with similar characteristics to those Gates has been linked to in Russia-gate.
"Films are a great way to launder money since most films _ the ones you have never heard of _ lose money," Delston added.
