Judge Clashes with Prosecution in Manafort Trial

Judge Clashes with Prosecution in Manafort Trial

As Gates described his involvement in preparing a fraudulent invoice on Manafort's behalf, the former Trump campaign chairman sat with his arms folded across his chest.

"In Cyprus, they were documented as loans".

Gates is cooperating with the investigation as part of a plea bargain with the prosecution, whilst Paul Manafort denies all charges- which include tax fraud; bank fraud; and failing to report foreign bank accounts. One accounting trick saved Manafort $US500,000 in taxes, she said.

Gates is the 15th witness the government has called to testify in the trial through the halfway point of the sixth day.

Gates was clean-shaven, unlike his February 23 court appearance, when he pleaded guilty to conspiracy and making false statements.

Throughout the trial, they have tried to pin the blame for financial misdeeds on Gates, whom they also have accused of embezzling millions from Manafort's consulting firm. She recounted two other purported Telmar loans totaling $1 million that Gates helped engineer. The charges are not related to Manafort's work with the Trump campaign.

Gates will resume his testimony around 1:30 p.m. ET when the jury returns from lunch recess.

Gates also told jurors that after the money from their Ukrainian political consulting work dried up in 2014, the two men tried to earn money from a new opposition party that was formed, but payments were slow to come.

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Originally charged as a co-conspirator, he acknowledged in court on Monday he was co-operating with the prosecution in the hope of leniency. Mr Gates was Mr Manafort's partner in the consultancy.

Jurors will hear again Monday from Cynthia Laporta, an accountant who testified August 3 about going along with phony, backdated documents meant to help lower Manafort's tax bills and secure real-estate loans even as his personal debt rose.

He was asked by Uzo Asonye, the prosecutor: 'Were you involved in any criminal activity with Mr Manafort?' He replied: 'Yes'. Gates' admission, on his first day of testimony under a plea deal with Special Counsel Robert Mueller, is key to rebutting the prime counter-narrative that Manafort is trying to tell the jury: that.

Over 75 minutes, prosecutor Greg Andres posed dozens of questions about Gates's financial crimes and the ways that he worked to help Manafort hide from his financial professionals and tax authorities.

He has tweeted support for his former campaign manager, suggesting he has been treated worse than gangster Al Capone.

He testified that Mr Manafort had directed him to lower taxable income by reporting overseas income as loans, according to USA media. Previous evidence has indicated that Peranova, a company Gates said Manafort controlled, never loaned Manafort money. Gates also said Manafort floated banker Stephen Calk's name for consideration as Secretary of the Army, a post he ultimately did not get.

Manafort, a flamboyant figure in Washington for decades, became known for his consulting and lobbying work for ethically questionable worldwide leaders like Ukraine's Viktor Yanukovych.

Gates' testimony began on Monday and will likely continue into Tuesday, when Manafort's defense attorneys will cross-examine him.

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