Published: Wed, August 08, 2018
Worldwide | By Lisa Hogan

Takeaways from day six of the Paul Manafort trial

Takeaways from day six of the Paul Manafort trial

Prosecutors had previously said that Manafort's interactions with Calk were the only part of the trial expected to overlap with his Trump campaign role.

On Tuesday, Gates was forced to answer questions about past infidelity, his embezzlement and what Manafort had directed him to do while in his employment.

"This jury is just supposed to believe you after all the lies that you've told and the fraud you've committed?" asked Downing.

Here's how Gates said the scheme worked. He scoffed at the idea that Gates had repented for his actions, noting that prosecutors have said they won't oppose his bid for probation and getting him to acknowledge he had not repaid the money he had taken from Manafort.

Downing seized on those admissions to try and cast doubt on whether the jury can trust Gates' claims that he only carried out the fraud alleged by prosecutors at Manafort's behest.

Rick Gates, under cross examination at the tax evasion and bank fraud trial of his former boss Paul Manafort, admitted that he had "another relationship" involving first-class flights and luxury hotels, but denied these were funded with money embezzled from Manafort.

Downing then asked about what he called "the secret life of Rick Gates", inquiring whether Gates kept an apartment in London and if he engaged in an extramarital relationship there.

Gates finally admitted that he had provided false information prior to striking a plea agreement.

After Gates struggled to recall precisely what he had told Mueller's team, Downing asked if he had been confronted with "so many lies" that he can't keep his story straight.

The judge in the case, U.S. District Judge T.S. Ellis III, cut Gates off, saying, "this isn't the time for that". The defense moved on.

The judge asked the lawyers to come to the bench to discuss the matter. Gates is considered the prosecution's star witness.

During his testimony Monday, Gates admitted he had embezzled money from Manafort by creating false expense reports on his own behalf. In addition, he testified, he did not submit the required forms at Manafort's direction.

Gates said prosecutors agreed not to pursue charges on those matters, and dropped a second indictment against him accusing him of bank and tax fraud.

Gates laying out a roadmap on how he and Manafort allegedly dodged USA taxes. after admitting Monday they committed numerous crimes as business partners. The funds were logged as loans in order to meet later audits in Cyprus that required documentation of transfers between bank accounts. "In reality, it was basically money moving between accounts", Gates said.

Paul Manafort's longtime deputy told jurors Tuesday how he spent years disguising millions of dollars in foreign income as loans to lower the former Trump campaign chairman's tax bill.

He is the first subject of special counsel Robert S. Mueller's investigation to stand trial.

The case against Manafort has little to do with either man's work for the Trump campaign and there's been no discussion during the trial about whether the Trump campaign coordinated with Russian Federation - the central question Mueller's team has tried to answer. But Trump has shown interest in the proceedings, tweeting support for Manafort.

Gates and Manafort first met with Dr. K to set up the companies in 2007 in Cyprus, Gates testified.

In one example, Manafort and Gates emailed each other copies of a doctored profit and loss statement they later sent a bank to help Manafort obtain a loan.

During questioning by prosecutors on Tuesday morning, Gates said that Manafort had emailed him in late 2016 asking for the incoming Trump administration to consider tapping Federal Savings Bank Chief Executive Steve Calk for Secretary of the Army.

"WTF", Manafort wrote in a 2015 email, after learning how much he'd have to shell out to Uncle Sam, Gates said.

Like this: