Gates tells Manafort trial he assisted in filing false tax returns

Gates told the jury that as part of his plea with prosecutors, he revealed several other crimes that were not previously known and that were not included in the federal indictments against him and Manafort.

As a sober Gates recited his testimony, Manafort reacted about the way you'd expect.

Gates admitted that at Manafort's behest, they later created a loan agreement for Lyovochkin's payment, though no loan existed. Gates, who also served on Trump's campaign, pleaded guilty in February and agreed to cooperate with prosecutors under a deal that could lead to a reduced sentence.

Ellis said he doesn't see how the travel testimony "amounts to a hill of beans" in the prosecution of Manafort, who is charged with bank fraud, tax evasion and failure to report foreign bank accounts.

Manafort has pleaded not guilty to 18 bank and tax fraud charges and failing to disclose foreign bank accounts.

Gates also said he lied in a lawsuit deposition years ago, after Manafort "asked me not to include" certain things in the deposition.

Notably, after urging prosecutors to speed things along as jurors heard from 14 witnesses last week, U.S. District Judge T.S. Ellis III said late on August 3 that Downing could begin his questioning of Laporta on Monday and wouldn't rush him.

Gates admitted in court that he embezzled hundreds of thousands of dollars from Manafort, and that he knowingly committed crimes at the behest of his former partner.

He has also sought to blame Mr Gates for the crimes.

Gates will resume his testimony around 1:30 p.m. ET when the jury returns from lunch recess.

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Both were indicted last October for hiding millions of dollars they made lobbying for Ukrainian politicians.

What did Gates tell the court?

U.S. District Judge T.S. Ellis III, who has clashed with prosecutors as he urged them to hurry up presenting their case, has largely allowed the prosecution to question Gates uninterrupted.

On Monday, Gates described his history of working with Manafort, his plea deal and how Manafort's consulting business operated in Ukraine.

During his testimony on Monday, Gates described Manafort as "probably one of the most politically brilliant strategists I've ever worked with".

Speaking at a rapid clip, Gates told jurors he stole from Manafort even as he told lies to bookkeepers and accountants so that his boss could hide most of his offshore earnings, estimated by prosecutors as more than $60 million from 2010 to 2014. "In reality, it was basically money moving between accounts", Gates said.

Speaking at Manafort's trial late that afternoon, Gates bluntly answered the prosecutor's questions.

He has tweeted support for his former campaign manager, suggesting he has been treated worse than gangster Al Capone.

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

After that, Gates sent her a document dated March 6, 2014, that purported to represent a $900,000 loan from a Cyprus entity, Telmar Limited, to Manafort's company. Later, they say, when that income dwindled, Manafort launched a different scheme, shoring up his struggling finances by using doctored documents to obtain millions more in bank loans.

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