Takeaways from Day 7 of the Manafort Trial

Defense in Manafort trial zeroes in on Gates's 'secret life'

In one exchange published in court Wednesday, Manafort instructs his Cypriot lawyer, Kypros Chrysostomides - referred to in court as "Dr. K" because, according to Gates, his name is hard to spell and pronounce - to transfer money from the Manafort-controlled Leviathan Ltd. Gates was asked about 11 Cypriot accounts, and he testified that they were all owned by Ukrainian businessmen.

In one case, Ellis snapped at prosecutors in front of the jury because they allowed an IRS agent to attend the trial.

"Let me be clear, I don't care what the transcript said ... don't do it again", Ellis said, admonishing the prosecutor Uzo Asonye.

He testified that he and Manafort knew they were committing crimes for years, concealing money in foreign bank accounts and falsifying bank loan documents. Referring to Manafort's pretrial confinement, Trump asked whether Manafort was being treated worse than Al Capone.

Wednesday's testimony was focused on the tax fraud allegations against Paul Manafort. But then prosecutor Greg Andres invoked Trump's name, and Gates' and Manafort's work on the campaign became more explicitly tied to the alleged crimes at the heart of the trial.

Both Gates and Manafort were indicted last October by a federal grand jury on 12 charges, including conspiracy against the U.S. Manafort has pleaded not guilty to all charges.

For the previous two days in court, Gates has testified that he and Manafort committed bank and tax fraud together.

Downing followed up: "Do you remember telling the office of the special counsel you actually engaged in four extramarital affairs?"

"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.

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Asked if he had been coached, Gates replied, "The only answer I was told was to tell the truth". But Gates pleaded guilty months later and agreed to cooperate in Mueller's investigation of Manafort, the only American charged by the special counsel to opt for trial instead of a guilty plea.

She said Manafort's passport was used to open many of them in United States dollars, euros and British pounds.

In addition to the unreported income, Welch said that Manafort listed dubious business expenses such as 132,000 euros to a yacht company, $49,000 for an Italian villa rental, $45,000 for cosmetic dentistry and $19,800 for a riding academy, according to The Washington Post.

Earlier Tuesday, Gates told the court that Manafort would frequently pay for clothing, landscaping and other personal expenses using wire transfers directly from his bank accounts in Cyprus and others in St. Vincent and the Grenadines.

Prosecutors have noted that Gates and Manafort were not the targets of the investigation at the time of the interview.

Following Gates' testimony, prosecutors resumed trying to make their case for financial fraud by Manafort through documentary evidence to demonstrate his control of offshore bank accounts containing millions of dollars not reported to the IRS as required by US law.

In his second day of testifying against his former boss, Mr Gates said at the time he worked on President Trump's election campaign, his salary was paid by savings and investments from Mr Manafort.

Moreover, Manafort remains a central figure in the broader inquiry into the Trump campaign's dealings with Russia, including a 2016 Trump Tower meeting at which Russians promised "dirt" on Democratic presidential candidate Hillary Clinton and his role in watering down the 2016 Republican Party platform position on Ukraine.

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