Rick Gates Set to Testify Against Ex-Boss Paul Manafort

Kevin Downing attorney for Paul Manafort walks to the Alexandria Federal Courthouse in Alexandria Va. Monday Aug. 6 2018 for President Donald Trump's former campaign chairman Manafort's tax evasion and bank fraud trial. (AP

Gates studiously avoided Manafort's gaze and looked only at Andres, the judge or the jury.

Manafort's lawyers are expected to use the theft to try to undermine Gates' credibility as a witness.

Gates admitted that at Manafort's behest, they later created a loan agreement for Lyovochkin's payment, though no loan existed. Gates was also charged in the case, but he made a deal with Special Counsel Robert Mueller's office to plead to a lesser charge in exchange for his cooperation.

Manafort faces 18 charges of tax evasion and bank fraud and a maximum 305-year prison sentence if the Eastern Virginia jury hands him a guilty verdict.

On Tuesday, Gates did connect one part of the bank fraud charges against Manafort to his role in the Trump campaign.

He also said he lied in a deposition in a civil case against Manafort involving a private equity fund and wrote a letter saying his friend Steve Brown, who is facing fraud prosecution in a NY federal court, had income that didn't exist.

Gates also testified that both he and Manafort had control over the foreign accounts, as well as Manafort's business associate Konstantin Kilimnik.

Rick Gates leaves a Washington courthouse in February.

Gates described how he helped Manafort hide the amount of taxes he owed.

It would be notable if there had been any ties between Manafort and Poroshenko, because Poroshenko's administration was criticized by Trump's supporters for targeting Manafort during the presidential campaign in an effort to help Hillary Clinton.

In a reflection of Gates' importance to the prosecution's case, a cart of about a half dozen green-and-white document boxes bearing his name was rolled into the courtroom ahead of his testimony.

Nonetheless, jurors were told of more than $900,000 in expensive suits, a $15,000 ostrich jacket and lavish properties replete with expensive audio and video systems, a tennis court encircled by hundreds of flowers and, as one witness put it, "one of the bigger ponds in the Hamptons".

Rick Gates, Manafort's former partner in crime (literally, it turns out), took the stand to detail the many shady sides of the worldwide lobbying business he helped the ex-superlobbyist run for years.

Laporta, who testified under an immunity deal with the government, acknowledged that she agreed under pressure from Gates to alter a tax document for one of Manafort's businesses.

"At Mr. Manafort's request, at different points in the year, we did not disclose the foreign bank accounts", Gates said.

He said millions of dollars had been concealed in foreign bank accounts, listing shell companies he and Manafort set up in places including Cyprus and the UK.

Mr Mueller is also investigating possible coordination between Trump campaign members and Russian officials in the election campaign, but the charges against Mr Manafort do not address that.

"In Cyprus, they were documented as loans".

Prosecutors will turn to Gates for first-hand support of their accusations that Manafort concealed millions of dollars in foreign income and later lied when he applied for bank loans.

Testimony from Mr Manafort's tax preparer continued on Monday.

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