Gates said it was money he took from Manafort that was unauthorized, but the answer wasn't enough for Downing. "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".
Prosecutors had intentionally left many of these pieces of evidence blank on an itemized list of documents they are presenting in court, signaling they could be the most sensational and attention-grabbing files in the evidence binder.
The defense highlighted the terms of the deal Gates received for testifying in the bank and tax fraud case against Manafort on charges that stem from special counsel Robert MuellerRobert Swan MuellerSasse: US should applaud choice of Mueller to lead Russian Federation probe MORE's Russian Federation investigation.
Manafort and Gates were the first two people indicted in Mueller's investigation into potential ties between Russian Federation and the Trump campaign. This kept the scheme mostly hidden from accountants and bookkeepers-though immunized witness Cynthia Laporta earlier testified that she had her doubts about the veracity of Manafort's and Gates's representations surrounding the loans.
Asked if he got any personal benefit from Mr Manafort's falsified loan applications, Gates responded: "No, I did not".
Lawyers for Manafort are looking to undermine Gates' credibility and blame him for any crimes in the case, suggesting that he's told "so many lies" that he can't possibly remember them all.
Gates, a former business partner of Manafort, testified that he began working with Manafort directly in October 2006, and the pair conspired between 2008 and 2015.
"When asked by Assistant U.S. Attorney (AUSA) Greg Andres whether Gates understood there was "some level of secrecy involved", Manafort's former right-hand man assented and added that "[Manafort] understood his name would not be represented".
"He's confessing to stealing from the same guy that he was committing crimes with", Noah said of Gates.
Gates said prosecutors agreed not to pursue charges on those matters, and dropped a second indictment against him accusing him of bank and tax fraud. In addition, he pleaded guilty to making false statements to investigators. Gates also provided the first witness testimony that overlaps with Trump's presidential campaign.
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. Gates testified they were not loans but compensation to Manafort.
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. Prosecutors had previously said that Manafort's interactions with Calk were the only part of the trial expected to overlap with his Trump campaign role.
The face-off between longtime business associates and former senior members of the Trump campaign drew scores of people who waited in line for hours outside the courthouse and then jammed into both the courtroom and an overflow room that contained a video feed of the proceedings. Gates testified that he'd followed Manafort's instructions as they set up Cypriot and other foreign bank accounts, moved money from Ukrainians into the United States, made sure Manafort's name was scrubbed from the accounts, then lied to the IRS and banks.
In one email, Manafort wrote "WTF" and "not happy" about tax payments he was going to have to make, Gates said.
Gates described to jurors how he repeatedly submitted fake financial documents at Manafort's behest as his former boss became concerned he was paying too much in taxes and, later, that his funds were drying up.
In another heated exchange, Downing tried to press Gates into explicitly saying that he had embezzled money from Manafort.
Prosecutors will likely draw Gates back to those facts and away from his own misbehavior on redirect examination. Manafort broke his stare only to review government exhibits on a small monitor in front of him.