San Francisco Chronicle

Manafort opts not to testify as defense rests

- By Chad Day, Matthew Barakat and Mary Clare Jalonick Chad Day, Matthew Barakat and Mary Clare Jalonick are Associated Press writers.

ALEXANDRIA, Va. — Paul Manafort’s defense rested its case Tuesday without calling any witnesses in the former Trump campaign chairman’s tax evasion and bank fraud trial. Manafort himself chose not to testify.

The decision not to call witnesses clears the way for the jury to hear closing arguments in the first trial to emerge from special counsel Robert Mueller’s investigat­ion. The arguments are scheduled for Wednesday morning.

Manafort is accused of hiding millions of dollars in income he received advising Ukrainian politician­s. The defense has tried to blame Manafort’s financial mistakes on his former deputy, Rick Gates. Defense attorneys have called Gates a liar, philandere­r and embezzler as they’ve sought to undermine his testimony.

Manafort’s decision not to testify and not to call witnesses was announced by his attorney, Kevin Downing, before the jury on Tuesday afternoon. Asked by U.S. District Judge T.S. Ellis III whether he wished to testify in his defense, Manafort responded: “No, sir.”

The decision came after a more than two-hour hearing that was closed to the public. The judge has not given any explanatio­n for the sealed proceeding, only noting that a transcript of it would become public after Manafort’s case concludes.

After announcing that they were resting their case, Downing told reporters outside the courthouse that “he did so because he and his legal team believe that the government has not met its burden of proof.”

Also Tuesday, Ellis rejected a defense motion that the case should be dismissed on those same grounds.

Manafort’s lawyers asked the judge to toss out all the charges against him, but they focused in particular on four bank-fraud charges.

The government says Manafort hid at least $16 million in income from the IRS between 2010 and 2014 by disguising the money he earned advising politician­s in Ukraine as loans and hiding it in foreign banks. Then, after his money in Ukraine dried up, they allege he defrauded banks by lying about his income on loan applicatio­ns and concealing other financial informatio­n, such as mortgages.

Manafort’s lawyers argued there is no way that one of the banks, Federal Savings Bank, could have been defrauded because its chairman, Stephen Calk, knew full well that Manafort’s finances were in disarray but approved the loan to Manafort anyway. Witnesses testified at trial that Calk pushed the loans through because he wanted a post in the Trump administra­tion.

Ellis, in making his ruling, said the defense made a “significan­t” argument, but ultimately ruled the question “is an issue for the jury.”

 ?? Jose Luis Magana / Associated Press ?? The government says Paul Manafort, President Trump’s former campaign manager, hid at least $16 million in income.
Jose Luis Magana / Associated Press The government says Paul Manafort, President Trump’s former campaign manager, hid at least $16 million in income.

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