The Latest: Gates admits crimes with Manafort, embezzlement
By Associated Press
Aug 6, 2018 9:00 PM CDT
Kevin Downing, attorney for Paul Manafort, walks to the Alexandria Federal Courthouse in Alexandria, Va., Monday, Aug. 6, 2018, for President Donald Trump's former campaign chairman Manafort's tax evasion and bank fraud trial. (AP Photo/Susan Walsh)   (Associated Press)

ALEXANDRIA, Va. (AP) — The Latest on the trial of former Trump campaign chairman Paul Manafort (all times local):

9:50 p.m.

The star prosecution witness in the financial fraud trial of Paul Manafort testifies that he concealed millions of dollars in foreign bank accounts on Manafort's behalf and falsified documents to help his former boss obtain millions of dollars more in bank loans.

Rick Gates also admits he embezzled hundreds of thousands of dollars from the former Trump campaign chairman.

Gates on Monday calmly related his criminal conduct as prosecutors looked to provide jurors with damning testimony from a co-conspirator they say carried out an elaborate offshore tax-evasion and fraud scheme on behalf of Manafort.

Gates is expected to continue testifying for several hours Tuesday.

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6:20 p.m.

The judge in Paul Manafort's financial fraud trial is pressuring the prosecution to hurry up.

U.S. District Judge T.S. Ellis III says prosecutors for special counsel Robert Mueller's office are wasting time drilling into the details of Manafort's Ukrainian work and the backgrounds of those who paid him.

Ellis says the case is not as complex as prosecutors are making it to be. But prosecutor Greg Andres says the testimony is necessary to show the flow of money from Ukrainians, through offshore shell companies to Manafort in the U.S.

Ellis made the comments outside the presence of the jury after cutting off the testimony of Manafort's longtime deputy Rick Gates.

Gates is testifying against his former boss and mentor. His testimony will resume Tuesday.

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5:35 p.m.

Paul Manafort conspired to hide millions of dollars in offshore accounts from the IRS and directed his longtime deputy to lie to bookkeepers, banks and accountants to conceal the scheme. That's what the former Trump campaign chairman's "right-hand man," Rick Gates, told jurors in Manafort's financial fraud trial.

Gates says that when millions of dollars came in from Manafort's Ukrainian consulting work, Manafort would decide whether to classify it as income or a loan. Gates says the goal of the fraud was to lower Manafort's tax bill and allow him to defer payment on the income until later years.

Gates is testifying as part of a plea agreement with the government. Manafort's defense has sought to blame Gates for any illegal conduct, calling him a liar and embezzler.

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5:30 p.m.

The government's star witness in the trial of Paul Manafort admits he embezzled hundreds of thousands of dollars from the former Trump campaign chairman.

Rick Gates told jurors that he siphoned off the money without Manafort's knowledge by filing false expense reports. Gates says he admitted the conduct to the government as part of his cooperation agreement. He is awaiting sentencing.

The testimony comes hours after Manafort's defense attorneys accused Gates of embezzling as they sought to paint Gates as an untrustworthy witness.

Gates is also admitting to carrying out a vast scheme to conceal millions of dollars in foreign bank accounts on Manafort's behalf. And Gates says he also falsified loan applications and other documents to help Manafort obtain millions more in bank loans.

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4:21 p.m.

Paul Manafort's longtime deputy has been called to the witness stand to testify against the former Trump campaign chairman.

Rick Gates has been regarded as a crucial government witness ever since he pleaded guilty last year and agreed to cooperate in special counsel Robert Mueller's investigation.

Prosecutors will turn to Gates for firsthand support of their accusations that Manafort concealed millions of dollars in foreign income and later lied when he applied for bank loans.

Manafort's defense has sought to blame Gates for any illegal conduct and accused him of embezzling millions of dollars.

Gates and Manafort worked closely together for years. They were the first two people indicted by Mueller's grand jury.

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4 p.m.

Prosecutors have called a witness other than Rick Gates in the financial fraud trial of President Donald Trump's former campaign chairman, Paul Manafort.

A lawyer for Manafort had said in court Monday afternoon that Gates, who is Manafort's longtime deputy and is regarded as the government's star witness, would be the next witness up.

Instead, prosecutors called a different witness named Paula Liss. Lawyers then met privately with the judge for a bench conference.

Manafort's defense has sought to blame Gates for any illegal conduct and accused him of embezzling millions of dollars.

Prosecutors said last week that they intended to call him to the stand before resting their case this week.

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3 p.m.

Paul Manafort's attorney says the former Trump campaign chairman's longtime deputy will be testifying next in Manafort's fraud trial.

Manafort attorney Kevin Downing says that Rick Gates will testify at the conclusion of the testimony of Manafort's tax preparer. Downing made the comment in court.

The prosecution didn't confirm that Gates, a prosecution witness, would be next.

Manafort's defense has sought to blame Gates for any illegal conduct and accused him of embezzling millions of dollars from Manafort. Gates will follow the testimony of tax preparer Cindy Laporta, who says she came to suspect Gates was misleading her about Manafort's finances.

Under cross examination, she said at the time she believed Manafort was directing Gates' actions and "knew what was going on."

Gates has been cooperating with special counsel Robert Mueller's Russia probe after he cut a plea deal earlier this year. During that process, Gates admitted to two felony charges, but his testimony would be the first time he details those crimes face-to-face with Manafort, his former boss and mentor.

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1:04 p.m.

The most critical moment in the financial fraud trial of former Trump campaign chairman Paul Manafort will likely arrive this week with the testimony of his "right-hand man" — the person defense attorneys blame for any crimes.

Rick Gates has been a key cooperator for special counsel Robert Mueller's team after he cut a plea deal earlier this year. During that process, Gates admitted to two felony charges, but when he testifies it will be the first time he'll detail those crimes face-to-face with his former boss and mentor.

The trial is set to resume Monday afternoon in federal court in Alexandria, Virginia. It's the first of Mueller's prosecutions to reach a jury, but lawyers have made no mention of President Donald Trump or possible campaign coordination with the Kremlin.

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