Manafort trial - as it happened: Prosecution lays out former Trump aide's lavish lifestyle on second day of fraud and tax evasion trial
Prosecution lays out case during second day of trial
Prosecutors have raised the possibility that their expected star witness "may not" testify against Donald Trump's former campaign manager Paul Manafort, as they concentrated on Mr Manafort's lavish lifestyle during the second day of his bank fraud trial.
The trial is the first courtroom test for Special Counsel Robert Mueller, who was tasked last year with investigating Russia's efforts to meddle in the 2016 presidential election and to determine whether any of President Trump's campaign team were involved. So far, Mr Manafort is the lone person to stand trial as a result of the ongoing probe, even though the charges of bank fraud and tax evasion are unrelated to possible collusion. Moscow has denied any interference.
Rick Gates, Mr Manafort's former business partner pleaded guilty to making false statements after being indicted by Mr Mueller, with an agreed plea deal expected to make him the star government witness. However, Judge TS Ellis appeared surprised to hear the prosecution - who said they were moving quicker through their case than expected - may not call him
“He may testify in this case, he may not,” said prosecutor Uzo Asonye, a day after the defence made clear in opening statements to jurors that its strategy was centred on discrediting Mr Gates and blaming him for the fraud.
When the judge asked Mr Asonye for a clarification, Mr Asonye said prosecutors are constantly evaluating the need to call a particular witness and his comments were “not to suggest we are not calling him.”
Prosecutors have portrayed Mr Manafort as a tax cheat who hid money in offshore accounts, and lied to borrow millions more against real estate in a bid to maintain an extravagant lifestyle.
Jurors heard details of Mr Manafort's acquisition of more than $1 million in clothing, expensive cars and more than $3 million in home improvement work — nearly all paid for either in cash or by offshore wire transfers.
An FBI agent present for the July 2017 raid on Mr Manafort's Virginia home, Matthew Mikuska, described finding expensively tailored suits and documents related to other luxury items allegedly bought by Manafort, including two silk rugs bought for $160,000 paid from offshore accounts.
However, the push to show Mr Manafort's extravagance earned a rebuke from Judge Ellis, who had previously shown his distaste for the prosecutions push to criticise wealth.
But when prosecutors introduced photos of Mr Manafort's high-end property and expensive suits, Mr Ellis interrupted so as to limit the growing list of evidence jurors would have to consider.
“All this document shows is that Mr Manafort had a lavish lifestyle,” Judge Ellis said at one point. “It isn't relevant.”
Additional reporting by AP and Reuters
Assistant US Attorney Uzo Asonye - for the prosecution - has surprised Judge TS Ellis by casually mentioned that Richard Gates, Paul Manafort’s former partner and the expected star witness of the case, may or may not testify.
The prosecutor was responding to a question about an agenda from a meeting with Gates in 2013.
“He may testify, he may not,” Mr Asonye said of Mr Gates. “We’re trying to shorten the trial.”
The prosecutor said that was not because of anything particular to Gates; every witness, he said, might not be necessary depending on how the evidence unfolds.
Much of the early court action today has been between the prosecutors and the defense team and judge over what evidence they may use to try and prove Mr Manafort spent his allegedly untaxed income on personal purchases.
Judge TS Ellis has so far not allowed pictures of luxury items allegedly bought by Mr Manafort to be displayed on screens - only allowing the jury to see documents.
The judge has previously expressed his displeasure at the prosecutors case merely looking like it was criticising Mr Manafort for his rich lifestyle.
Court is currently in the middle of a break - we are back under way in about 20 minutes.
While we wait for court to resume, here is a profile of the trial judge, TS Ellis, who has already taken an active role in proceedings.
As court resumes, prosecutors are likely to put forward at least three more witnesses who all serve the purpose of illustrating what Assistant US Attorney Uzo Asonye said in his opening statement yesterday was Mr Manafort's "extravagant lifestyle" fueled by "secret" income hidden away in foreign accounts.
Maximillian Katzman's family owns Alan Couture, a high-end fashion boutique in New York. He claimed on the stand the store only has about 40 regular customers and Mr Manafort was one of "top five" spenders, frequently purchasing sportscoats, suits, and outerwear.
Dressed in a sleek navy suit with slicked back hair, Mr Katzman leafed through several invoices of Mr Manafort's purchases from the boutique between 2010 and 2014 - the amount totalled $929,000, all paid from foreign accounts.
The manner of the government's questions did not appear to please Mr Ellis, who has a reputation for being harder on prosecutors.
In presenting Mr Katzman the invoices for Mr Manafort's purchases, jurors heard the former Trump campaign manager spent more than $100,000 in 2010 and more than $400,000 in 2014 at the clothing boutique.
While the judge allowed the amounts to be read aloud, he stopped short of allowing Mr Katzman to read the total for the five year period of spending, saying about the jury: “Let’s move on. Enough is enough. They can add.”
Mr Ellis pointed out merely being wealthy is not a crime in and of itself. But, Mr Katzman did testify the payments for the clothing came from Cyprus-based enterprises which prosecutors plan on showing were held by Mr Manafort.
Up next on the witness stand for the prosecution is Ronald Wall, CFO of the "world's most expensive store," House of Bijan in Beverly Hills, California.
“I knew he was a very good customer,” Mr Wall said about Mr Manafort's shopping habits at the exclusive boutique which only sold items made in Italy by a small number of companies with whom the store had a relationship.
Like with Alan Couture, Mr Manafort paid House of Bijan with wire transfers from foreign accounts, which Mr Wall testified was an unusual practice for their wealthy clients.
Prosecutors once again drew the ire of Mr Ellis who said from the bench: “You have to prove beyond a reasonable doubt that he signed tax documents to show he knowingly didn’t represent his true income" not just that he spent lavishly.
The witnesses called to the stand today have so far detailed some interesting purchases made by Mr Manafort, who we have noted below spent hundreds of thousands of dollars in two stores alone.
Included in those purchases were a Limited Edition black titanium Royal watch made with crystal.
The reason all this is coming up is because prosecutors hope to show through purchases like these — which were paid for through wire transfers, according to witnesses — that Mr Manafort avoided paying taxes.
Prosecutors have called their fifth witness of the day to the stand.
Daniel Opsut is a salesman at Mercedez Benz of Alexandria, and has claimed like some of the witnesses before him today that the Manaforts made payments via wire transfers.
The wire transfer Mr Opsut described came from Lucicle Consultants, a Cypriot shell company that prosecutors have said Mr Manafort used to hide his income from Ukraine.
Mercedes Benz dealer Daniel Opsut, the sixth overall witness in Mr Manafort's trial, said that the former Trump campaign official's wife, Kathleen Manafort, paid for a new SL550 in 2012 with a wire transfer from a Cypriot shell company.
That car, Mr Opsut said, cost $124,000, but that Ms Manafort at that time traded in two older Mercedes — an E350 convertible and an SL500 — which saved her $56,000.
"It's not common, but it's not unheard of" for customers to pay via wire transfer, Mr Opsut said.
Prosecutors also introduced a stipulation that Mr Manafort and his daughter used an $85,525 wire transfer from Lucicle Consultants to pay for a 2012 Land Rover from Don Beyer Moters in April of that year. A stipulation indicates that the defense does not contest the evidence.
The parent Manaforts also made payments to make a $12,525 down payment on a Range Rover that same month with the same wire transfer method. They then bought a $67,655 Range Rover in June with the same payment firm.
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