Manafort's former tax accountant fired by firm after testimony

Getty Images  TPM Illustration

A U.S. Internal Revenue Service agent testified on Wednesday that former Trump campaign chairman Paul Manafort, who is on trial on tax and bank fraud charges, had $16.5 million in unreported taxable business income between 2010 and 2014.

In testimony Tuesday, Gates laid responsibility squarely at Manafort's feet for a series of crimes, saying the two had committed crimes together by stashing money in foreign bank accounts and falsifying bank loan documents. He testified that Mr. Manafort directed him not to report the existence of offshore bank accounts that prosecutors allege were used to hide millions of.

Paul Manafort's former accountant was sacked from a Virginia firm after she told the court she was aware that Manafort's tax returns contained false information.

Manafort, 69, faces tax evasion and bank fraud charges, as he is accused of hiding a "significant percentage" of income earned from his lobbyist work in Ukraine from the IRS.

Testimony resumes Thursday at 9:30 a.m. ET in Alexandria, Virginia, and the government is expected to rest by Friday.

He testified under terms of a deal with Justice Department Special Counsel Robert Mueller, who's investigating suspected collusion between Russian Federation and Trump's campaign during the 2016 presidential election.

Mueller, a former Federal Bureau of Investigation director, has indicted more than 30 people - including 26 Russians - in connection with his probe into whether members of Trump's campaign colluded with Russia to help get the real estate tycoon elected. Gates said that these loans were actually income.

But Downing wasn't able to re-ask Gates the question about four extramarital affairs.

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.

Although the allegations of collusion between Donald Trump and Russian Federation are not at issue in this trial, any significant blows to the government's case are likely be seized on by the president's defenders, including conservative media, to support his contention that Mueller's investigation is a "rigged witch-hunt".




Manafort's political work included advising Viktor Yanukovich on policy after he won the Ukrainian presidency, Gates said.

In a dramatic moment before the jury, Manafort's defence counsel, Kevin Downing, put it to the government's star witness: "There's another life, right, the other Rick Gates? I'm trying to change".

"After all these lies, and the fraud you have committed, you expect this jury to believe you?"

Gates replied that "I made many mistakes over many years" before stepping down from the witness stand.

The FBI forensic accountant, Morgan Magionos, told jurors that bank records from Cyprus, St. Vincent and the Grenadines and the United Kingdom revealed the accounts were connected to Manafort and his associates.

Earlier on Tuesday, the prosecution had continued to question Gates, who described how millions of dollars were allegedly funnelled from entities controlled by Ukrainian businessmen into Manafort's shell companies in Cyprus. "They may think he's a sleazebag - but that's not going to make them overturn how they view the documents", the former attorney said.

After Gates testified that Manafort was "pretty good about knowing" where his money was, Ellis couldn't suppress a quip that appeared to call into question Gates' testimony.

Gates said he falsely labeled hundreds of thousands of dollars in income as loans to reduce Manafort's tax liability. Gates also said Manafort floated banker Stephen Calk's name for consideration as Secretary of the Army, a post he ultimately did not get.

Mr Gates told jurors that he had been "tasked" by his boss "to determine how we could lower the taxes".

Throughout the trial, tensions have been evident between Ellis and prosecutors.

Related news:

Hot News

isis-killer-beheading-video-story-top Angelina Jolie Alleges That Brad Pitt Has Not Paid Enough Child Support
Aug 09, 2018 - 17:15
The report comes soon after a TMZ story claimed that Jolie and Laura Wasser, another one of her attorneys, had parted ways . Brad Pitt's team fired back at Angelina Jolie's claims by insisting he has paid millions to support his children.

isis-killer-beheading-video-story-top Here's How The Bachelorette Is Handling Garrett's Social Media Scandal
Aug 08, 2018 - 04:10
Harrison surprised them with an all-expense-paid trip back to Thailand and a minivan, in honour of Garrett's first night gag. Blake bops over to the house in pink shorts and a matching bouquet of pink flowers that he pretends wasn't on objective .

isis-killer-beheading-video-story-top Don Lemon fires back against 'nasty, hateful' Trump attack
Aug 08, 2018 - 04:00
The announcement comes just a few days after James and Trump escalated their public feud. The segment is a ideal representation of where we are culturally as a country right now.

isis-killer-beheading-video-story-top Community Members Call For Brooklyn Nail Salon To Close Following Brawl
Aug 08, 2018 - 02:56
Thomas refused medical treatment, according to police. "You can't treat us like we're second-class citizens", said one protester. The women were dissatisfied with the service from the salon and ultimately, refused to pay $5 for a "f**ked up" eyebrow job.

isis-killer-beheading-video-story-top #JustIn: Kaliagnar M. Karunanidhi Passes Away At 94
Aug 08, 2018 - 00:59
In the years that followed, the state government alternated between Karunanidhi and its main political rival, the AIADMK . The death of " Kalaignar " M Karunanidhi would remain a "black day" in his life, actor-politician Rajinikanth said today.

isis-killer-beheading-video-story-top Elon Musk considers taking Tesla private
Aug 08, 2018 - 00:57
If Musk can't prove the allegedly secured funding at $420 per share, he may be accused of market manipulation or market fraud. Going private is one way to avoid close scrutiny by the public market as Musk and the company face those challenges.

isis-killer-beheading-video-story-top First Look at Margot Robbie as Sharon Tate
Aug 07, 2018 - 02:08
Robbie let the photo of her scarily accurate take on Tate do the talking, keeping the caption simple: "First look. And I couldn't be happier about the dynamic teaming of DiCaprio and Pitt as Rick and Cliff", said Tarantino.

isis-killer-beheading-video-story-top Duchess Meghan's half-sister likens her to Disney's Cruella de Vil
Aug 07, 2018 - 02:05
Harry, who served as best man , looked handsome in a long coat as he led Meghan to the ceremony. She explained: "I think we'd like to have a really relaxed and really calm summery wedding".

isis-killer-beheading-video-story-top Daily Updates Manafort accountant recalls backdated documents
Aug 07, 2018 - 02:01
Laporta said she knew what she did was "not appropriate", adding that "you can't pick and choose what's a loan and what's income". And if he signed those documents to open the foreign accounts, that would mean he knew they existed, the former prosecutor said.

isis-killer-beheading-video-story-top Becomes exclusive United States home for Community Shield showdown | Programming
Aug 07, 2018 - 00:57
Chelsea have lost their last four appearances in the Community Shield and City have lost two of their three most recently played. Both goals came courtesy of fine team moves - and both were started by City's centre-backs.

isis-killer-beheading-video-story-top Denmark Fines Woman for Wearing Niqab
Aug 07, 2018 - 00:49
The women pushed to each other and uprorious scenes arise in which the Niqab , among other things, is being torn by one woman. The country's "Burqa Ban" also outlaws other accessories covering the face like balaclavas, masks and false beards.

isis-killer-beheading-video-story-top Iran nuclear deal: European Union shields firms from United States sanctions law
Aug 07, 2018 - 00:43
Unlike many other news organizations, we have not put up a paywall. "Most have two passports and their families are overseas ". He said Iran had "always welcomed negotiations", but that Washington would first have to demonstrate it can be trusted.

isis-killer-beheading-video-story-top Former Kentucky basketball stars defend LeBron James after Trump tweet
Aug 05, 2018 - 09:32
Lemon tweeted. "A man who puts kids in classrooms or one who puts kids in cages?" James has publicly criticized Trump before. LeBron James' first tweet after receiving a petty attack from Donald Trump had nothing to do with the president.

isis-killer-beheading-video-story-top Dustin Poirier calls Nate Diaz the second biggest name he could've fought
Aug 05, 2018 - 08:26
McGregor was arrested, but was sentenced last month to perform five days of community service, avoiding jail time in a plea deal. Dustin Poirier confirmed for UFC 230, it'll be interesting to see if either fighter is part of the presser.

isis-killer-beheading-video-story-top Ohio State places Urban Meyer on paid administrative leave
Aug 05, 2018 - 04:17
Ohio State Buckeyes head coach Urban Meyer reacts during the fourth quarter against the Iowa Hawkeyes at Kinnick Stadium . Urban Meyer said he received a call regarding an incident in 2009 while Zach Smith was an intern under him at Florida .