By Aruna Viswanatha, Sadie Gurman and Julie Bykowicz 

ALEXANDRIA, Va. -- Paul Manafort was convicted Tuesday of not paying taxes on more than $16 million in income and lying to two banks when he sought millions of dollars in loans -- a stunning fall from grace for the onetime Trump campaign chief who earned some $60 million as a star political consultant in Ukraine.

The 12-member Virginia jury of six men and six women reached the guilty verdict on eight counts after four days of deliberations, but couldn't agree on 10 additional counts of bank fraud and reporting violations Mr. Manafort faced. U.S. District Judge T.S. Ellis declared a mistrial on those counts.

Mr. Manafort, who faces the possibility of about 10 years in prison based on the conviction, looked toward the jury and stood silently in court as the verdicts were read aloud. He was flanked by his lawyers and showed little emotion. Judge Ellis said he would order a pre-sentencing report from the probation office to help guide sentencing, but set no date for it.

In brief comments after arriving in West Virginia for a campaign rally, President Trump expressed sadness for Mr. Manafort's convictions, but said the matter had nothing with him or alleged collusion between his campaign and Russia during the 2016 presidential race. The case was brought by Special Counsel Robert Mueller, who is looking into the matter.

Mr. Trump repeated Tuesday that there was no collusion and termed the probe a "witch hunt." Moscow has denied interference.

The president didn't address questions from reporters about a separate legal development Tuesday. The former Trump lawyer Michael Cohen pleaded guilty to criminal charges related to payments he arranged before the 2016 election to silence two women who alleged having affairs with Mr. Trump, directly implicating his former boss in violating campaign-finance laws.

Outside the Alexandria courthouse, an attorney for Mr. Manafort, Kevin Downing, told reporters: "Mr. Manafort is disappointed at not getting acquittals all the way through, or a complete hung jury on all counts, however he would like to thank Judge Ellis for granting him a fair trial and the jury for its hard-fought deliberation." Mr. Downing said Mr. Manafort is evaluating all his options.

A spokesman for Mr. Mueller's office, which prosecuted the Manafort case, declined to comment on the verdict. Prosecutors said in court they needed one week to decide if they wanted to retry Mr. Manafort on the counts on which the jury couldn't reach a verdict.

"I want to know whether each of you believe that there is any reasonable possibility you could reach agreement if you continue your deliberations?" Judge Ellis asked the jurors before the verdict was announced. Each juror responded: "No."

Mr. Manafort still faces a second criminal trial on related charges next month in Washington, D.C.

Over two weeks at the trial, prosecutors called more than two-dozen witnesses and presented hundreds of emails, memos and financial documents indicating Mr. Manafort had not paid taxes on some $16 million in income he earned as a political consultant in Ukraine between 2010 and 2014.

Prosecutors also accused Mr. Manafort of misleading multiple U.S. banks to obtain millions of dollars in loans in 2016 after the Ukraine consulting income dried up. He was convicted of committing bank fraud when he sought loans from Citizens Bank and Banc of California, but the jury did not reach a verdict on counts related to those loans or on fraud charges related to two other loans he got from Federal Savings Bank.

The jury also convicted Mr. Manafort of not filing a report on foreign bank accounts in 2012, but didn't reach a conclusion on identical charges for 2011, 2013, and 2014.

"Mr. Manafort lied to keep more money when he had it and he lied to get more money when he didn't," prosecutor Greg Andres said last week as he summed up the case for the jury. "When you follow the trail of Mr. Manafort's money, it is littered with lies."

Mr. Manafort's lawyers had argued that prosecutors were "selectively pulling" information to create a misleading picture -- and relied too much on testimony from Mr. Manafort's former deputy, Richard Gates. Mr. Gates admitted to a litany of misconduct over three days of testimony, including that he had embezzled hundreds of thousands of dollars from Mr. Manafort.

Defense attorneys also showed that Mr. Manafort had paid $8.3 million in taxes between 2005 and 2015 and had been open about his financial dealings.

The trial was the first to stem from Mr. Mueller's investigation into Russian interference in the 2016 election and possible links to the Trump campaign. But Mr. Trump or the campaign came up only a few times during the trial. The trial instead focused on Mr. Manafort's prior consulting work, how he paid for personal high-end expenses from foreign accounts, and the documents he provided banks as he applied for loans.

Jurors had asked for clarification about the legal obligations for reporting such accounts after their first day of deliberations.

In comments from the bench Tuesday, Judge Ellis said: "I think the government and Mr. Manafort received very zealous and effective representation from their counsel."

Write to Aruna Viswanatha at Aruna.Viswanatha@wsj.com, Sadie Gurman at sadie.gurman@wsj.com and Julie Bykowicz at julie.bykowicz@wsj.com

(END) Dow Jones Newswires

August 21, 2018 18:54 ET (22:54 GMT)