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U.S. NEWS Tuesday 7 augusT 2018

Longtime Manafort deputy Rick Gates admits embezzlement

By CHAD DAY and MATTHEW falsifying loan applications
BARAKAT and other documents to
Associated Press help Manafort obtain more
ALEXANDRIA, Va. (AP) in bank loans.
— The government's star "We didn't report the
witness in the financial income or the foreign
fraud trial of Paul Manafort bank accounts," Gates told
testified Monday that jurors, noting that he knew
he embezzled hundreds he and Manafort were
of thousands of dollars committing crimes each
from the former Trump time.
campaign chairman — Gates read off the names
and told jurors that he of more than a dozen
and Manafort committed shell companies he
crimes together. and Manafort set up in
Rick Gates has been Cyprus, St. Vincent and
regarded as a crucial the Grenadines and the
witness for the government United Kingdom to stash
ever since he pleaded the proceeds of Manafort's
guilty this year to two felony Ukrainian political
charges and agreed consulting work.
to cooperate in special Asked whether the money
counsel Robert Mueller's in the accounts was
investigation into possible income to Manafort, Gates
ties between Russia and said, "it was."
the Trump campaign. Gates said he repeatedly Thomas Zehnle, second from right, attorney for Paul Manafort, walks with other members of the
The hugely anticipated lied to conceal the defense team to Alexandria Federal Courthouse in Alexandria, Va., Monday, Aug. 6, 2018.
courtroom showdown bank accounts and, at Associated Press
brought Gates face-to- Manafort's direction, he
face with his longtime would classify money has tried to answer. But Andres said he was from more than a dozen
business associate and that came in as either a Trump has shown interest in entitled to show the jury shell companies used to
fellow Trump campaign loan or income to reduce the proceedings, tweeting why Manafort was getting stash the income in Cyprus.
aide. His testimony, given Manafort's tax burden. support for Manafort tens of millions of dollars in On Friday, a tax preparer
in short, clipped answers Manafort's defense has and suggesting he had payments. named Cindy Laporta
as Manafort rarely broke sought to blame Gates for been treated worse than "When we try to describe admitted that she helped
his gaze from the witness any illegal conduct and gangster Al Capone. the work, Your Honor stops disguise $900,000 in foreign
stand, follows that of cited the embezzlement to U.S. District Judge T.S. us and tell us to move on," income as a loan in order
vendors who detailed impugn Gates' credibility. Ellis III, who repeatedly he said. to reduce Manafort's tax
Manafort's luxurious Gates, who also served interrupted prosecutors Prosecutors say Manafort burden. Laporta, who
spending and financial in a senior role in Donald last week as they tried to used those companies to testified under an immunity
professionals who told jurors Trump's presidential present evidence about stash millions of dollars from deal with the government,
how the defendant hid campaign, is expected Manafort's lavish life such his Ukrainian consulting acknowledged that she
millions of dollars in offshore to face aggressive as $900,000 in expensive work, proceeds he omitted agreed under pressure
accounts. c r o s s - e x a m i n a t i o n suits and a $15,000 ostrich year-after-year from his from Gates to alter a tax
But Gates, described by once prosecutors are jacket, clashed again with income tax returns. Later, document for one of
witnesses as Manafort's finished questioning him. prosecutor Greg Andres they say, when that income Manafort's businesses.
"right-hand man," is Gates pleaded guilty to on Monday when Andres dwindled, Manafort Under cross-examination
expected to provide the financial fraud and to delved into the status and launched a different Monday, defense
most damning testimony lying to investigators as identities of the Eastern scheme, shoring up his attorney Kevin Downing
about Manafort's state of he negotiated the plea Europeans who made struggling finances by using pressed Laporta on the
mind as well as his own role agreement earlier this year. payments to Manafort. doctored documents to complexities of Manafort's
in the crimes. He is awaiting sentencing. Ellis said all that's relevant obtain millions more in finances as he worked to
Gates told jurors that he The criminal case has is that Manafort was paid bank loans. paint a picture of a political
siphoned off the money nothing to do with either and whether he hid the All told, prosecutors allege consultant who left the
without Manafort's man's work for the Trump income from the IRS. that Manafort failed details to professionals and,
knowledge by filing false campaign and there's been "It doesn't matter whether to report a "significant in particular, to Gates.
expense reports. He also no discussion during the trial these are good people, percentage" of the more Downing also accused
admitted to concealing about whether the Trump bad people, oligarchs, than $60 million they say he Gates of embezzling
millions of dollars in campaign coordinated Mafia. ... You don't need received from Ukrainians. "millions," a higher amount
foreign bank accounts on with Russia — the central to throw mud at these They aimed to show jurors than Gates later admitted
Manafort's behalf and to question Mueller's team people," Ellis said. how that money flowed to in his testimony.