Rick Gates says he and Manafort disguised foreign income as loans

Paul Manafort's associate says 'hundreds' of emails prove former Trump campaign chief directed fraud

Paul Manafort's associate says 'hundreds' of emails prove former Trump campaign chief directed fraud

Paul Manafort was concerned after a 2014 Federal Bureau of Investigation interview that one of the companies used to pay the former Trump campaign chairman for his Ukrainian political consulting work wasn't "clean".

The prosecution's case against Manafort doesn't rest exclusively on Gates.

But when Downing tried to question Gates on Tuesday about what the special counsel team had asked him about the Trump campaign, Andres objected.

But at another point Wednesday, Gates attempted to express remorse from the stand, saying "I've made many mistakes over many years".

"In essence, I was living beyond my means", Gates said.

Gates testified Tuesday that he and Manafort engaged a law firm in Cyprus - and its director, "Doctor K" - to help hide millions of dollars they received for their work in Ukraine.

The questioning of Paul Manafort's protege during the political consultant's financial fraud trial has turned confrontational and personal, focusing on Rick Gates' own crimes as well as an extramarital affair and a plea agreement. He admitted to committing fraud on a massive scale and extorting money from Manafort, along with assisting his former boss in filing false tax returns and bank fraud.

His actions came under scrutiny as part of the broader investigation into the Trump campaign and Russian interference in the 2016 election run by Mueller.

"I admitted to a previous relationship", Gates said, adding that he maintained a flat for about two months.

Kevin Downing, an attorney for Manafort, accused Gates of having a "separate, secret life" with his lover in London and of using business expenses to pay for the affair, including an apartment in London.

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Regarding a trading company Manafort had started with a partner in 2011, he asked with deep scepticism: "You're asking the jury to believe Mr Manafort authorised another US$250,000 as a bonus?"

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.

He testified under terms of a deal with Justice Department Special Counsel Robert Mueller, who's investigating suspected collusion between Russian Federation and Trump's campaign during the 2016 presidential election.

Speaking of Ellis, the 78-year-old U.S. District Court judge overseeing the Eastern Virginia trial renewed his angry tone with prosecutors Wednesday.

Ahead of that barrage, Gates implicated himself in a vast amount of criminal conduct on the stand, an apparent strategic decision by prosecutors as they hoped to take some of the steam out of the defense's questioning.

Lawyers for Mr Manafort, Donald Trump's former campaign manager, hammered Rick Gates about his own crimes.

An FBI forensic accountant is telling the jury in Paul Manafort's financial fraud trial how she traced millions of dollars of payments for mortgages, home improvements and expensive cars, rugs and clothes back to his hidden foreign bank accounts. But Trump has shown interest in the proceedings, tweeting support for Manafort and suggesting he has been treated worse than gangster Al Capone.

"Those appear to be substantially different, don't they?" defense attorney Richard Westling asked Magionos, showing her Manafort's signatures on a loan application to the Bank of California and one of the foreign banking documents. Mr Gates also said he may have submitted personal expenses for reimbursement by Mr Trump's inaugural committee, which he helped operate. "In reality, it was basically money moving between accounts", Gates said.

"I'm not happy with this judge", Napolitano told Fox News' Dana Perino. When the trial broke for lunch, Manafort looked back at his wife, sitting in the front row, smiled and winked at her, followed by a quick shake of his head, seeming to indicate he was unfazed by the morning's testimony.

Gates added that Manafort also wanted to give the businessman a heads-up about the FBI's interest in the offshore accounts as part of the USA government's efforts to recover assets stolen under former Ukrainian President Viktor Yanukovych.

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