Manafort trial - live updates: IRS agent testifies Manafort did not pay taxes on $15.5 million in Ukrainian income as Judge TS Ellis clashes with prosecutors

Interrogation of government's star witness continues after he is accused of telling 'so many lies' he cannot remember them all

Ex-Trump Campaign Chair Manafort's Court Arrival

The bruising cross-examination of Paul Manafort’s protege continues today, with Rick Gates set to return to the witness stand for a third day.

Mr Gates – the government’s star witness in a case against Donald Trump’s erstwhile campaign chairman – was yesterday accused of being immersed in “so many lies” he cannot remember them all.

Lawyers for Mr Manafort are challenging the credibility of Mr Gates. Defence lawyer Kevin Downing has already pressed Mr Gates on lies he told special counsel Robert Mueller’s investigators and on the hundreds of thousands of dollars he admitted to embezzling from his former boss.

Mr Downing briefly ventured into territory the two sides mostly avoided for the first five days of the trial: the president’s presidential campaign. The charges are not related to Mr Manafort’s work with the Trump campaign.

Today, the lawyer is set to grill Mr Gates further about a “secret life” he claims was funded by embezzlement and about an extramarital affair that Mr Gates has admitted.

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Key Points

What we know so far:

[8 August 2018 21:54 · Kristin Hugo]

During cross-examination of FBI forensic accountant Morgan Magionos, defense attorney Richard Westling attempted to sow doubt in the case regarding the authenticity of the Paul Manafort signature on various documents that have been presented.

The defense compared several examples of Mr Manafort's signature on bank account information with a sample of his signature from a document that was seized from his home during the FBI's raid.

[8 August 2018 21:59 · Kristin Hugo]

IRS Revenue Agent Michael Welch is next on the stand, who was assigned in April to help prosecutors prepare for trial.

Mr Welch testified that he examined Paul Manafort’s business and tax records and, as with the last witness, prepared charts summarising what he had found.

[8 August 2018 22:00 · Kristin Hugo]

Assistant US Attorney Uzo Asonye has revealed that Mr Welch had been seated in the courtroom for the duration of the proceedings.

Judge Ellis was not happy, saying that he typically bars all witnesses — save the case agent — from observing the proceedings, and thought he had done so in this case.

Mr Ellis allowed Mr Welch to testify, but issued a stern warning to Mr Asonye.

[8 August 2018 22:44 · Kristin Hugo]

Prosecutors are using IRS agent Michael Welch to state clearly what they argued in opening statements and have had witnesses testify on for several days now — Paul Manafort did not pay taxes on all of the income he earned in Ukraine between 2010 and 2014.

Mr Welch testified that Mr Manafort received about $15.5 million from Ukraine which he then paid directly to vendors, and which he did not report or pay taxes on. The money never entered Mr Manafort’s business or personal accounts in the United States, Mr Welch added.

[8 August 2018 23:02 · Kristin Hugo]

Testimony has ended for the day.

The day finished with joint statements from Mr Manafort's attorneys and prosecutors about agreed upon facts in the case.

Prosecutors said they have about eight witnesses left to call to the stand. Prosecutors also said they're still on track to end by Friday.

The trial will resume at 9:30am ET on Thursday.

[8 August 2018 23:02 · Kristin Hugo]

With that, we are ending our live blog coverage for the day. Thanks for reading.