Manafort's attorney suggests Gates lied about how many affairs he had
08 August, 2018, 20:29 | Author: Rachel Logan
The questioning is part of the Manafort defense strategy of presenting Gates to the jury as someone who lies and can not be trusted.
"After all the lies you've told and fraud you've committed, you expect this jury to believe you?"
Gates said he did, but the defense lawyer wasn't satisfied. "You know. Yeah, because on the one hand Gates stole money from him but on the other hand he clearly learned everything that Manafort taught him". U.S. District court Judge T.S. Ellis III presides.
That is expected to continue on Wednesday - and then prosecutors are expected to have an opportunity to question Gates again and try to rehabilitate him.
Gates, who was Manafort's longtime business associate, had testified on Tuesday that he had an affair in London, where he maintained an apartment for two months. At one point, as Gates had trouble recalling the details of his confession, Downing asked him, "Have they confronted you with so many lies that you can't even remember them?" The defense moved on. The loan was actually income disguised to lower Manafort's taxes, he said, and then forgiven to help Manafort get a loan. Gates also provided the first witness testimony that overlaps with Trump's presidential campaign.
During his testimony Monday, Gates admitted he had embezzled money from Manafort by creating false expense reports on his own behalf. He also committed credit card and mortgage fraud, falsified a letter for a colleague involved in an investment deal and made false statements in a deposition at Manafort's direction.
Prosecutors summoned Gates, described by witnesses as Manafort's "right-hand man, " to give jurors the first-hand account of a co-conspirator they say helped Manafort carry out an elaborate offshore tax-evasion and bank fraud scheme. "In reality, it was basically money moving between accounts", Gates said.
Paul Manafort's former business partner, Rick Gates, is on the stand for the third straight day in Manafort's bank and tax fraud trial as prosecutors and defense lawyers wage their battle over Gates' credibility.
The tax and bank fraud charges in the current trial - the first of two Manafort is scheduled to face - however, have nothing to do with Manafort's work on the Trump campaign.
As part of his plea agreement to cooperate with prosecutors, Gates also admitted to lying to investigators from the special counsel's office - a fact Downing also seized upon.
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.
Prosecutors showed contracts laying out that Manafort would be paid $4 million a year in quarterly installments of $1 million, all channeled through Cyprus.
Update from the Paul Manafort trial: Rick Gates admitted... everything in testimony yesterday.
Gates says that Manafort asked him to meet with one of the Ukrainian businessmen involved in paying him millions of dollars to find out if one of the shell companies used to pay him was a "clean entity". Gates also said Manafort floated banker Stephen Calk's name for consideration as Secretary of the Army, a post he ultimately did not get.
Gates said it was a "very common method" for Dr. K and that, once the money was moved into the accounts, Manafort decided what to do with it.
Gates converted the 2015 DMP P&L to a Word document for Manafort, but there were spacing, font, and other discrepancies between that copy and the original.
When asked if he took "unauthorized expenses" from Manafort to "fund your separate secret life", Gates replied, "yes, I acknowledge I had a period of time where I had another relationship". When Gates had prepared the transaction, he would run the final logistics by Manafort.
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