All eyes are on Rick Gates Tuesday as the government’s star witness continues testifying against his former boss, Paul Manafort, in special counsel Robert Mueller’s federal tax trial against the former campaign chairman for President Donald Trump.
During the first part of his testimony on Monday, Gates admitted to shielding millions of dollars in over a dozen offshore accounts from United States tax collectors – all at Manafort’s direction, according to Gates.
On trial in Alexandria, Virginia, Manafort is accused of evading taxes on $60 million earned in overseas lobbying and consulting work for a Russian-backed Ukrainian political party. Manafort has pleaded not guilty to all charges.
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11:00 AM – Gates describes how Manafort’s Ukrainian cash cow was put to pasture
When former Ukrainian Prime Minister Viktor Yanukovych left office and fled to Russia in 2014, business dried up for Manafort – that’s when the former Trump campaign chairman turned to alleged fraud to bankroll his luxurious lifestyle, Rick Gates testified Tuesday.
As special counsel prosecutors peppered Gates with questions, the former deputy campaign manager for Donald Trump calmly explained how he created fraudulent invoices at Manafort’s direction.
“Paul Manafort didn’t provide original invoices most of the time,” Gates said Tuesday morning.
As his testimony wore on, Gates described in depth the process by which he, Manafort, and an accountant coordinated to move money in and out of their offshore accounts in order to hide income from U.S. authorities.
After he and the accountant prepared the bill amount, “Paul Manafort would then give verbal approval to the bank,” Gates said in court.
10:15 AM – Gates lays out Manafort’s accounts in Cyprus
Addressing a packed courthouse in Alexandria, Virginia, Rick Gates began his Tuesday testimony by explaining the intricacies of setting up offshore accounts in Cyprus, where Manafort allegedly kept millions of dollars hidden away from the IRS.
Gates showed jurors contracts between Manafort and his Ukrainian patrons, illustrating how the Ukrainian businessmen wired money into Manafort’s accounts in Cyprus.
Gates, donning a dark blue suit and light blue tie, glanced briefly towards Manafort before turning back toward the attentive jury of 12.
ABC News’ Katherine Faulders and Allison Pecorin contributed to this report.