Longtime Manafort deputy Rick Gates said he teamed up with his former boss to commit crimes meant to protect Manafort's finances. Defence attorneys have called Gates a liar, philanderer and embezzler as they've sought to undermine his testimony.
USA prosecutors on Monday rested their case against Manafort after 10 days of testimony alleging he evaded taxes and defrauded banks.
They will have to disclose that information Tuesday as the case reaches its final stages.
The testimony, on the 10th day of Manafort's financial fraud trial, comes as the prosecution is expected to rest its case later Monday. The case arose from U.S. Special Counsel Robert Mueller's probe of Russian meddling in the 2016 presidential election. Neither Manafort nor Gates have been charged in connection with their Trump campaign work. But in fact, Mr Brennan testified, Mr Manafort was in default for a $5.7m loan he had taken out for a Los Angeles property and had also stopped paying on a $6.5m loan on a NY residence.
Manafort is being tried on 18 counts, which include tax and bank fraud charges, as well the failure to disclose foreign bank accounts.
Gates testified that he helped Manafort commit crimes in an effort to lower his tax bill and fund his lavish lifestyle. Gates was also forced to admit embezzling a fortune from Manafort and having an extramarital affair.
Manafort's lawyers then sought to have all the charges dismissed, in part arguing the prosecution had not proven he willingly committed crimes. Prosecutors won Judge T.S. Ellis' permission to call back a financial fraud agent with the enforcement agency FinCEN to speak about Manafort's foreign banking charges. The admittedly impatient judge has pushed the government to speed up its case.
The CEO of Federal Savings Bank pushed through $16 million in bank loans to Paul Manafort despite concerns of too much risk to the bank posed by lending to the president's former campaign manager, a bank executive told a Virginia federal jury Monday. Brennan also said Manafort left off mortgages on two NY properties on the application. "It closed because Mr. Calk wanted it to close", Brennan said about the loan.
"Mr. Calk is a co-conspirator, and he participated in the conspiracy to defraud the bank", prosecutor Greg Andres said at the sidebar, in a transcript unsealed over the weekend. Testimony last week indicated Calk was seeking a position within the Trump administration.
Calk also listed 19 potential ambassadorships, including the United Kingdom, France, Holy See and China.
Ellis made this clear during his brief conversation with Manafort. It wrote them off as losses by the end of 2017. "His background is strong in defense issues, management and finance".
Dennis Raico, a former bank vice president said Friday his boss' discussions "made me very uncomfortable".
After announcing that they were resting their case, Downing told reporters outside the courthouse that "he did so because he and his legal team believe that the government has not met its burden of proof". Ellis said the proceedings and the motion will be kept secret until after the case concludes.
Mueller's team hinted in a sidebar conference with Ellis and Manafort's lawyers Friday that Calk is facing more scrutiny than the allegations heard so far at Manafort's trial.
At one point, Judge Ellis left the courtroom and headed toward the jury room.
Closing arguments in the case are scheduled for Wednesday morning.