Asked whether the money in the accounts was income to Manafort, Gates said, "it was".
As members of the press and the public waited anxiously for Gates to take the stand, people lobbied aggressively for good seats in the courtroom and the court security had to ask people to quiet down several times. She said no, explaining a technicality, and leaving the possibility hanging in the air that Manafort and his wife, who split ownership of DMP International, may not have needed to make the disclosures. Manafort has pleaded not guilty to all charges. Gates, who is facing five to 10 years in prison, testified Monday that as part of his plea deal he agreed to turn over evidence to the government and testify.
Accountant Cindy LaPorta - who was granted immunity from prosecution - said on Friday she suspected that Gates was misleading her about Mr Manafort's finances.
A lawyer in Cyprus nicknamed "Dr. K", for whom Manafort did some political consulting work, helped them set up the accounts, Gates said.
Rick Gates, Manafort's former partner in crime (literally, it turns out), took the stand to detail the many shady sides of the worldwide lobbying business he helped the ex-superlobbyist run for years.
"I was the one who helped organize the paperwork and initiate the wire transfers", Gates said, describing Manafort's use of unregistered Cypriot bank accounts to collect political consulting payments from Ukrainian oligarchs.
Prosecutors allege he dodged taxes on millions of dollars he made from his work for a Russia-friendly Ukrainian political party.
Gates testified that Manafort told him to report overseas income as loans to lower Manafort's taxable income, supporting the testimony of his accountant.
The defense in the case is likely to subject Gates to an intensive cross-examination after arguing during opening statements that he embezzled millions of dollars from Manafort and then turned against him under pressure from Mueller.
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Paul Manafort's longtime deputy has been called to the witness stand to testify against the former Trump campaign chairman.
Manafort, a flamboyant figure in Washington for decades, became known for his consulting and lobbying work for ethically questionable worldwide leaders like Ukraine's Viktor Yanukovych.
"When income came into the company, Mr. Manafort directed whether it would be treated as income.or loans", Gates said.
"In most instances, it was clear that Mr. Manafort knew what was going on", she said.
"I worked for one of the presidential candidates most recently", Gates said while providing biographical details to the courtroom. Ellis repeatedly scolded and raised his voice with Andres as they discussed the necessity of certain areas of inquiry, such as the stamps on Gates' passport showing his travels of Ukraine.
Prosecutors said last week that they meant to call him to the stand before resting their case this week.
"We are at the heart of the matter", Andres shot back. Ellis shouted at the prosecutor.
After the jury was recessed, the judge and the prosecutors continued to debate the relevance of some of the prosecutors' questions.
On redirect, prosecutor Uzo Asonye used a spreadsheet to show that Manafort's firm had earned $31 million in gross receipts between 2010 and 2014 - half the amount prosecutors say he netted during the same time frame in Ukraine.
Gates came out swinging from the witness box. Ellis implored them to focus their questioning "very sharply".