Manafort deputy admits embezzlement
ALEXANDRIA, VA. — The government’s star witness in the financial fraud trial of Paul Manafort testified Monday that he embezzled hundreds of thousands of dollars from the former Trump campaign chairman — and told jurors that he and Manafort committed crimes together.
Rick Gates has been regarded as a crucial witness for the government ever since he pleaded guilty this year to two felony charges and agreed to cooperate in special counsel Robert Mueller’s investigation into possible ties between Russia and the Trump campaign.
The hugely anticipated courtroom showdown brought Gates face-to-face with his longtime business associate. His testimony, given in short, clipped answers as Manafort rarely broke his gaze from the witness stand, follows that of vendors who detailed Manafort’s luxurious spending and financial professionals who told jurors how the defendant hid millions of dollars in offshore accounts.
But Gates, described by witnesses as Manafort’s “right-hand man,” is expected to provide the most damning testimony about Manafort’s state of mind as well as his own role in the crimes.
Gates told jurors that he siphoned off the money without Manafort’s knowledge by filing false expense reports. He also admitted to concealing millions of dollars in foreign bank accounts on Manafort’s behalf and to falsifying loan applications and other documents to help Manafort obtain more in bank loans.
“We didn’t report the income or the foreign bank accounts,” Gates told jurors, noting that he knew he and Manafort were committing crimes each time.