IRS agent testifies that Manafort had $16.5M United States in unreported income

IRS agent testifies that Manafort had $16.5M United States in unreported income

"I was critical of counsel for ... allowing an expert to remain in the courtroom", Ellis told the jury prior to Thursday's testimony.

"Yes, because I'm here to tell the truth and take responsibility for my actions", Gates said.

On Wednesday Judge Ellis tire into prosecutors after they revealed a witness, IRS agent Michael Welch, had been watching the Manafort trial from the courtroom. Downing also asked whether Mueller's investigators had interviewed Gates about his role in the campaign, prompting an objection from prosecutors and a sidebar conference with U.S. District Judge T.S. Ellis III.

"Don't do that again", he bellowed at Mr. Asoyne.

In the six days since the trial began, the jury has heard from 15 witnesses including two of Manafort's former accountants and his former bookkeeper.

Paul Manafort collected more than $65 million in foreign accounts for his Ukrainian political work from 2010-2014 and spent more than $15 million in the same period on real estate, landscaping, home improvement and luxury items like his ostrich and python jackets, an Federal Bureau of Investigation witness told jurors on Wednesday.

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

Ellis has repeatedly pushed prosecutors to whittle down their case to save time.

Downing spent several hours on Tuesday firing questions at Gates to impugn his credibility and paint him as a liar, asking about everything from his extramarital affair in London and funds he embezzled from Manafort, to questions on whether he may have crossed the line by submitting personal expenses when he worked for Republican candidate Trump's inaugural committee.

The judge's comments came in response to a written filing by prosecutors on the eighth day of Manafort's trial on charges of tax evasion and bank fraud.

In one case, Ellis snapped at prosecutors in front of the jury because they allowed an IRS agent to attend the trial.

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Downing seized on those admissions to try and cast doubt on whether the jury can trust Gates' claims that he only carried out the fraud alleged by prosecutors at Manafort's behest.

Prosecutor Greg Andres addressed the defence lawyer's questions about whether the special counsel's office had tried to coach Gates on how to testify.

"It was highly inappropriate to raise the other affairs, and the judge's response was very generous", said Gene Rossi, a former prosecutor who has been attending the trial as a spectator. He finished his testimony Wednesday, Day 7 of the trial.

Gates, who is married and has four children, acknowledged having had a "relationship" a decade ago and admitted to stealing from his boss during a "difficult time" in his life by inflating personal expenses.

Paul Manafort's attorney Kevin Downing on Wednesday asked whether longtime Manafort deputy Rick Gates had four extramarital affairs - and not just one overseas 10 years ago - implying that Gates might have lied to special counsel Robert Mueller's team and could put his plea deal in jeopardy.

"WTF", Mr Manafort wrote in response, "How could I be blindsided like this".

Manafort's lawyers have not yet indicated whether they plan to call witnesses as part of his defense.

Neither man was charged in connection with their Trump campaign work, but the trial has nonetheless been closely watched by a president who insists Manafort was treated shabbily and who continues to fume publicly about Mueller's investigation into potential ties between his associates and the Kremlin. "I'm trying to change".

But it was Gates' testimony that has generated the most drama, as the witness admitted embezzling hundreds of thousands of dollars from his boss, confessed to an extramarital affair and turned in spectacular fashion against a longtime mentor.

Gates said he and Manafort created an elaborate operation in Cyprus to use shell companies to secretly accept the money.

Trump was indirectly referenced in multiple ways throughout the testimony, highlighting the risks to the president of Special Counsel Robert Mueller's investigation.

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