ALEXANDRIA, Va. (CN) – Recalling his chat with Paul Manafort after they both were called in by the FBI, Rick Gates testified Wednesday that the former Trump campaign chair claimed to have told the investigator the truth.
Gates delivered the testimony this morning in a brief 15-minute cross-examination by the defense as Day 7 of Manafort’s trial on bank and tax fraud gets underway. Already Gates has given more than five hours of testimony over the course of direct examination by the federal government, but the defense aims to show that Gates embezzled from his employer and that his testimony should not be trusted.
The bulk of questions posted to Gates this morning by defense lawyer Kevin Downing focused on the interview Gates gave to the FBI in 2014 about lobbying work performed for former Ukrainian President Viktor Yanukovych by Davis Manafort Partners International.
Gates said that, at Manafort’s direction, he told the FBI in that interview about various offshore accounts Manafort controlled.
“He indicated that we should be open and provide the information about the questions that had been asked of us,” Gates said.
The exchange had little of the bite that erupted just before the close of proceedings Tuesday when Downing asked why the jury should trust Gates now given his track record.
“I’m here to tell the truth,” Gates said. “Mr. Manafort had the same path. I’m here.”
Prosecutors have alleged Manafort used these accounts to shield money from U.S. taxes. In addition to Gates, they have solicited testimony to that effect from Manafort’s former accountants and tax preparers, and documented the international intrigue with financial records and other evidence related to Manafort’s foreign bank accounts in Cyprus and St. Vincent and the Grenadines.
Downing finished his cross-examination of Gates this morning by asking whether the witness would be surprised to learn Manafort’s net worth was roughly $20 million in 2015 and 2016, when the revenue stream from Manafort’s work in Ukraine had dried up. Gates said he only had “some idea” about Manafort’s income, but that he understood Manafort’s net worth to be considerable based on the value of the properties he owned.
On redirect, Gates told prosecutor Greg Andres that after the FBI interview Manafort wanted him to meet with their Ukrainian contacts. The purpose of this meeting, Gates said, was to get more information about whether Manafort’s offshore entities were “clean” or in other words untraceable.
Gates testified that he was not under the impression he was under investigation during the FBI interview and that he was never asked to produce his tax returns.
Andres also spent more than 15 minutes asking Gates to clarify parts of his testimony from Tuesday regarding his guilty plea earlier this year to federal charges in Washington, D.C. Tuesday’s cross-examination appeared to throw Gates into momentary confusion about the counts to which he pleaded, but Andres recounted the charges again, methodically.
“Is there any doubt in your mind that you at one time provided false statements [to the special counsel?]” Andres said after Gates read parts of his plea agreement to the court, verbatim.
“No,” Gates said.
Downing also prodded Gates on Tuesday with allegations that he embezzled from Manafort.
Andres worked to scrub out this stain. “Were you ever charged with embezzling in Washington, D.C. or in the Eastern District of Virginia?” the prosecutor asked.