Kathleen Manafort, right, wife of Paul Manafort, arrives to attend the trial of former Trump campaign chairman Paul Manafort as it continues in federal court in Alexandria, Va., Tuesday, Aug. 7, 2018. (AP Photo/Jacquelyn Martin)

Cross-examination focuses on Manafort protege’s own crimes

Former Trump campaign chairman Paul Manafort’s trial continues in federal court in Alexandria, Va.

The questioning of Paul Manafort’s protege was confrontational and personal: Manafort’s lawyer hammered Rick Gates about his own crimes, an extramarital affair and a guilty plea with prosecutors that may spare him severe punishment.

Gates, who faced a bruising cross-examination, returns to the witness stand Wednesday for additional questioning from a Manafort lawyer who accused the government’s star witness of being immersed in “so many lies” that he can’t even remember them all and who demanded to know how a jury could possibly trust him.

Lawyers for Manafort, the former Trump campaign chairman, are determined to impugn the credibility of Gates. Defence attorney Kevin Downing began his cross-examination of Gates, Manafort’s longtime deputy and fellow Trump campaign aide, by confronting him on his own lies to special counsel Robert Mueller’s investigators, getting him to admit to an affair and pressing him about hundreds of thousands of dollars he admitted to embezzling from his former boss.

The aggressive questioning was aimed at shifting blame from Manafort onto Gates, who pleaded guilty in Mueller’s investigation and agreed to co-operate with investigators by testifying in the financial fraud trial.

“After all the lies you’ve told and the fraud you’ve committed, you expect this jury to believe you?” Downing asked incredulously.

Gates said he did, but the defence lawyer wasn’t satisfied. He scoffed at the idea that Gates had repented for his actions, noting that prosecutors have said they won’t oppose his bid for probation and getting him to acknowledge he had not repaid the money he had taken from Manafort.

After Gates described his theft as “unauthorized transactions” instead of embezzlement, Downing prodded him to use the latter term — and Gates ultimately relented, saying, “It was embezzlement from Mr. Manafort.”

Prosecutors had braced for the tough questioning by getting Gates to come clean about his own crimes. He told jurors how he disguised millions of dollars in foreign income as loans in order to lower Manafort’s tax bill. Gates recounted how he and Manafort used more than a dozen offshore shell companies and bank accounts in Cyprus to funnel the money, all while concealing the accounts and the income from the IRS.

Related: Manafort accused of amassing ‘secret income’ as trial opens

Related: What does Mueller have? Manafort trial offers glimpse

Related: Judge sends Trump’s ex-campaign chair Paul Manafort to jail

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. Gates also said he may have submitted personal expenses for reimbursement by Trump’s inaugural committee, which he helped operate.

After Gates struggled to recall precisely what he had told Mueller’s team, Downing asked if he had been confronted with “so many lies” that he can’t keep his story straight.

Gates implicated himself in broad criminal conduct on the stand, an apparent strategic decision by prosecutors to take some of the steam out of defence questioning. He told jurors he embezzled from Manafort by filing false expense reports. He also said he committed credit card and mortgage fraud, falsified a letter for a colleague involved in an investment deal and made false statements in a deposition at Manafort’s direction.

Prosecutors summoned Gates to give jurors the first-hand account of a co-conspirator they say helped Manafort carry out an elaborate offshore tax-evasion and bank fraud scheme. Gates testified that he and Manafort knew they were committing crimes for years, saying they had stashed money in foreign bank accounts and falsified bank loan documents.

“In Cyprus, they were documented as loans. In reality, it was basically money moving between accounts,” Gates said.

Manafort and Gates were the first two people indicted in Mueller’s investigation into potential ties between Russia and the Trump campaign. Gates pleaded guilty months later and agreed to co-operate in Mueller’s investigation of Manafort, the only American charged by the special counsel to opt for trial instead of a guilty plea.

The case 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 election effort co-ordinated with Russia — the central question Mueller’s team has tried to answer. But Trump has shown interest in the proceedings, tweeting support for Manafort.

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

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 also said Manafort floated banker Stephen Calk’s name for consideration as Secretary of the Army, a post he ultimately did not get. The email exchange occurred after Manafort left the Trump campaign but while Gates was active on the Trump inauguration committee.

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.

“WTF,” Manafort wrote to Gates in one email shown to the jury. “How could I be blindsided like this. You told me you were on top of this. We need to discuss options. This is a disaster.”

In other testimony, Gates recounted how he converted a PDF of a profit-and-loss statement to a Microsoft Word document so he could doctor it to inflate the business’ income. Gates also fabricated a forgiveness letter for what he said was already a fake loan between Manafort’s consulting company and a Cypriot entity he controlled.

During the testimony, Manafort did not stare Gates down as he did Monday. 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.

___

Associated Press writer Stephen Braun contributed to this report.

__

Eric Tucker, Matthew Barakat And Chad Day, The Associated Press

Like us on Facebook and follow us on Twitter.

Just Posted

Salmon Arm Silverbacks lock down 5-3 victory over Alberni Valley Bulldogs

Nick Unruh scores three goals to land a hat-trick on home ice

Salmon River and Deep Creek roads in ministry’s 2019 paving plan

Columbia Shuswap Regional District director bemoans lack of money for rural roads

New bus service hopes to announce scheduled stops by Oct. 26

Shuswap is expected to be included in Rider Express Transportation’s plans

Black trucks figure prominently in Shuswap thefts

Chase RCMP investigating stolen vehicles from several communities

Silverbacks head coach Scott Atkinson talks injuries, upcoming games

Team is feeling confident ahead of matches against Alberni Valley, Vernon

Tommy Chong says cannabis legalization makes him proud to be a Canadian

Legendary marijuana advocate and comedian celebrates cultural milestone at Kelowna event

Team Canada gold medal winners for first time in world curling championship

Team Canada earned gold in Kelowna at the 2018 Winn Rentals World Mixed Curling Championship

B.C. passenger caught smoking weed in a car issued $230 fine

Saanich police did a field sobriety test on the driver and deemed it safe for him to drive

Payette invites critics to ‘come and spend a few days’ with her

Governor General Julie Payette made her first official to B.C. back in March

More pot stores expected in B.C. in coming ‘weeks and months’: attorney general

Attorney General David Eby and Public Safety Minister Mike Farnworth visited the new BC Cannabis Store in the province’s Interior

Telus launches charitable foundation to help vulnerable youth

The Telus Friendly Future Foundation complements other social initiatives by the company, including Mobility for Good

Police say suspicious death of B.C. artist ruled a homicide

Patrick Zube Aylward’s body was found in a residence on a rural road outside of Seton Portage, west of Lillooet, B.C.

Temporary roads being built in areas affected by landslide in northern B.C.

Emergency Management BC news release says Disaster Financial Assistance is available to eligible residents of the Peace River Regional District who may have been affected by the landslides

B.C. tickets win big in Lotto Max draw

Jackpot carried over; B.C. tickets share Max Millions prizes

Most Read