Gates admits stealing from Manafort
Testifies to falsifying tax returns, reports on foreign accounts
ALEXANDRIA, Va. – Rick Gates – the star witness against President Donald Trump’s ex-campaign manager – admitted in federal court Monday that he committed a host of crimes with his former boss, and confessed to stealing from him and others.
In his first hour on the witness stand, Gates catalogued years of crimes, saying most of his wrongdoing was committed on behalf of his former boss, Paul Manafort, while other crimes were for his own benefit, including the theft of hundreds thousands of dollars. Gates also made clear he was testifying against Manafort in the hopes of receiving a lesser prison sentence, having pleaded guilty in February as part of a deal with Special Counsel Robert Mueller.
Manafort’s trial in Alexandria is the first to arise out the Mueller probe and marks a major public test of that investigation’s credibility. Mueller’s team is investigating Russian interference in the 2016 presidential election, and whether any Trump associates conspired with those efforts.
During the trial’s first week, Trump lashed out publicly against Mueller and said the entire effort should be stopped “right now.”
Inside the courthouse Monday, Gates’ testimony against Manafort marked a shattering end to a relationship that made the two political consultants millions of dollars working for foreign politicians, and led them both to prominent positions on the Trump campaign.
Wearing a blue suit and gold tie, Gates strode to the witness stand in Alexandria, Virginia, federal court shortly after 4 p.m., and did not waste much time before cutting to the heart of the issue.
“Did you commit crimes with Mr. Manafort?” prosecutor Greg Andres asked Gates.
“Yes,” Gates responded.
For most of his testimony, Gates did not look at Manafort, while the defendant stared intently at his former business partner.
Presented with a copy of the plea agreement he signed, Gates said he conspired with Manafort to falsify Manafort’s tax returns.
Andres asked Gates whether he understood that his lies and omissions were illegal.
“Yes,” Gates said.
When asked why he had lied, Gates said he had done so at Manafort’s request.
Gates said he and Manafort had 15 foreign accounts they did not report to the federal government, and they knew it was illegal.
“Mr. Manafort directed me” to not report those accounts, Gates testified.
Gates also said Manafort had directed him to report money wired from his foreign bank accounts as loans, rather than as income, to reduce Manafort’s taxable income. By reporting it as a loan, Gates explained, Manafort could defer the amount of taxes he owed.
Gates said that even while he was committing crimes with his boss, he was also stealing from him.