Gates Describes Manafort Orders While Defense Hammers 'Secret Life'

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After saying Monday that he committed crimes with Manafort, including concealing offshore accounts to avoid reporting them to the US 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?"

Gates admitted to stealing from Manafort, but he said he did not know how much money he took.

Noah added, "It's like if at the end of "Karate Kid", Daniel-san kicked the shit out of Mr. Miyagi".

During Gates' testimony on Tuesday, Manafort stared coldly at Gates as the business partner-turned-witness testified against 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.

Downing outlined how Gates gave false and misleading information to the special counsel after he had entered his plea agreement.

Under questioning by prosecutor Greg Andres, Gates walked the six-man, six-woman jury through the foreign bank accounts used by Manafort to receive payments from Ukrainian politicians - money that was not reported to the Internal Revenue Service (IRS).

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.

Under questioning from Downing, Gates acknowledged he had to plead guilty to false statements after lying during a February interview with federal investigators.

While Gates and others have pleaded guilty, Manafort has refused to strike a deal and legal experts say he may be holding out hopes of a pardon from Trump.

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.

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. Gates also provided the first witness testimony that overlaps with Trump's presidential campaign.

"He always had control over the accounts", Gates said of Manafort, and the income was not reported to his bookkeepers, his accountants or the USA tax authorities. 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. 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 USA, made sure Manafort's name was scrubbed from the accounts, then lied to the IRS and banks.

Mr Manafort's trial in Alexandria is the first to arise out the Mueller probe and marks a major public test of that investigation's credibility.

Rick Gates is seen on the witness stand as a message between he and his former boss, Paul Manafort, appears before the court during Manafort's trial in Virginia.

Prosecutors showed contracts laying out that Manafort would be paid $4 million a year in quarterly installments of $1 million, all channeled through Cyprus. And Manafort made millions of dollars working as a political consultant for a pro-Russia party in Ukraine before he worked for the Trump campaign, which could raise questions about Trump's friendly rhetoric towards the country.

He said Manafort asked for tickets to Trump's inauguration so he could give them to a banker involved in approving a loan at the centre of his financial fraud trial. Gates did not have a chance to respond to those allegations Monday.

He has already admitted embezzling some funds from Manafort.

Manafort to Gates in 2016, doctoring numbers in a financial statement. When the trial broke for lunch, Manafort looked back at his wife, sitting in the front row, smiled and winked at her, followed by a quick shake of his head, seeming to indicate he was unfazed by the morning's testimony.

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