Gates Says He Stole From Firm to Pay for Affair

Gates Says He Stole From Firm to Pay for Affair

Defense lawyer Kevin Downing began his cross-examination of longtime Manafort deputy Rick Gates by pressing him on his own lies to special counsel Robert Mueller's investigators, an extramarital affair and hundreds of thousands of dollars he admitted to embezzling from his former boss.

But the grilling got more intense, and personal, Tuesday afternoon when Downing pressed Gates about a "secret life" he said was funded by embezzlement, including an extramarital affair that Gates himself acknowledged.

Paul Manafort's former right-hand man, Rick Gates, admitted under cross-examination he stole from Manafort to cover expenses related to a secret relationship.

That's important to prosecutors, who need to not only prove Manafort skimped on paying millions of dollars in taxes.

"WTF", Mr Manafort wrote in response, "How could I be blindsided like this". This was a way to decrease Manafort's taxable income, added Gates, who did not report the money to Manafort's book-keeper or accountants.

In addition, Gates has admitted to other criminal conduct.

Gates pleaded guilty in February to one count of conspiracy against the United States and one count of lying to an Federal Bureau of Investigation agent in exchange for testifying against his former boss.

Later, Gates spoke directly to the 16 assembled jurors: "I'm here to tell the truth".

On Wednesday, Gates initially testified Manafort told him to be truthful during a 2014 interview with the Federal Bureau of Investigation about offshore shell companies and bank accounts that contained millions of dollars in proceeds from their Ukrainian political work.

These statements serve to build up the prosecutors' case against Donald Trump's former campaign chairman, as Manafort is accused of bank and tax fraud.

More news: Demi Lovato ‘Doing Much Better’, Expected To Leave Hospital Soon

For most of his testimony, Gates did not look at Mr Manafort, while the defendant stared intently at his former partner.

Gates also testified on Tuesday how he and Manafort hid income earned for political work in Ukraine, explaining their efforts to set up companies in Cyprus so they could easily be paid by Ukranian businessman who held bank accounts there.

As well as being a senior aide on Trump's election campaign, Gates served as the deputy chairman of the USA president's inaugural committee.

Gates said he and Manafort turned to a Cypriot lawyer, whom he referred to in court as "Dr K", who set up bank accounts and shell companies on Manafort's behalf and "handled everything". Manafort has pleaded not guilty to all charges.

According to Gates, Manafort had a great deal of knowledge and control over the dispensation of funds-personally signing on the payments "hundreds" of times.

The judge asked the lawyers to come to the bench to discuss the matter.

After saying Monday that he committed crimes with Manafort, including concealing offshore accounts to avoid reporting them to the USA government at tax time and claiming false income to get loans, Manafort defense attorney Kevin Downing asked the witness, "This jury is just supposed to believe you after all the lies that you've told and the fraud you've committed?" Walter Mack, Brown's lawyer, declined comment.

In October 2016, for instance, Gates sent Manafort DMP's profit and loss statement (P&L) from January 1 through June 30 of that year, emails introduced in court Tuesday show.

The transfers would usually occur when Manafort made requests for Gates to initiate them-often through a list of to-be-sent wire transfers provided by Manafort to Gates via email. Prosecutors allege that the bank lent Manafort money based on fraudulent documents, and that Calk was named an adviser to the campaign and sought the Army post as part of a quid pro quo.

Prosecutor Greg Andres had objected to the defense using the affair against Gates, saying the Fourth Circuit Court of Appeals has ruled "that if somebody cheats on their wife or whatever, it's not necessarily indicative of truthfulness".

Related Articles

  • Browns send Corey Coleman to Bills for late-round pick

    Browns send Corey Coleman to Bills for late-round pick

    As for the Browns, they now have traded or released every first-round pick they drafted between 2009 and 2016. He was selected by the Browns after they sent their number 2 overall pick to the Philadelphia Eagles .
    Manchester United reject massive offer from Bracelona for Paul Pogba

    Manchester United reject massive offer from Bracelona for Paul Pogba

    Pogba came through the youth system at United before leaving for Juventus on a free transfer. He's my friend, I grew up with him.
    European allies uneasy as United States  restores Iran sanctions

    European allies uneasy as United States restores Iran sanctions

    Speaking at a White House news conference on July 30, Trump had said , "I would certainly meet with Iran if they wanted to meet". The agency reported all protests had taken place without official permission and were subsequently broken up by police.
  • GOP Rep. Chris Collins charged with insider trading

    GOP Rep. Chris Collins charged with insider trading

    Collins was one of President Donald Trump's earliest supporters and acted as the congressional liaison for Trump's 2016 campaign. Chris Collins , one of the wealthiest members of Congress, was arrested on charges insider trading on Wednesday.
    U.S.  tariffs on China: Trump administration adds $16 billion

    U.S. tariffs on China: Trump administration adds $16 billion

    Beijing , accusing the United States of trade bullying, has retaliated by imposing tariffs on an equal measure of American goods. The latest charge comes after the US said it would implement another round of tariffs on $16 billion worth of Chinese goods.
    Senior Hamas officials arrive in Gaza

    Senior Hamas officials arrive in Gaza

    It will be the full first meeting of the movement's political bureau since talks held in Cairo in 2017, officials said. Tensions along the Israel-Gaza fence have escalated since Hamas launched regular protests in the area in late March.
  • Duchess of Sussex's sister takes cruel swipe on her birthday

    Duchess of Sussex's sister takes cruel swipe on her birthday

    Van Straubenzee has known the prince since childhood and was an usher at Harry and Meghan's wedding at Windsor Castle in May. In fact, the attention got to be so much that at one point she began wearing disguises in London to avoid unwanted eyes.
    China plans tariffs on $60 billion of US products

    China plans tariffs on $60 billion of US products

    According to the outlet, there is no indication that Trump tariffs will provide a long-term benefit for the United States. Negotiations with Europe to bring trade barriers down were further along before Trump took office than they are now.

    "Totally Legal": Trump Admits His Son Met Russian Lawyer In Election Year

    The Trump team has argued that Mr Trump Jr ultimately did not receive any damaging information about Mrs Clinton at the meeting. USA media then reported that the U.S. president had been involved in the initial statement his son issued on the meeting.
  • Angelina Jolie Says Brad Pitt Hasn’t Paid ‘Meaningful’ Child Support

    Angelina Jolie Says Brad Pitt Hasn’t Paid ‘Meaningful’ Child Support

    It is unknown at this time what - if any - informal agreement Jolie and Pitt had arrived at prior to this filing. After a period of relative peace, Brad Pitt and Angelina Jolie's divorce has become a battleground once again .
    Newcastle sign Salomon Rondon on loan from West Brom

    Newcastle sign Salomon Rondon on loan from West Brom

    The loan swap between Newcastle United striker Dwight Gayle and West Brom hitman Salomon Rondon is expected to go through today. Rondon said in the club statement: "It's an honour to be here and I'm excited to get started with my team-mates".
    California wildfires: Death toll to 7 as rapid spread continues

    California wildfires: Death toll to 7 as rapid spread continues

    More immediately, the declaration will enable federal agencies to help battle the 17 major fires burning throughout the state. As these fires grow in frequency and severity, the state's cost to fight them is also increasing - dramatically.