When one of the defense lawyers tried to suggest to Mr. Manafort’s tax accountant Monday that Mr. Gates had kept Mr. Manafort in the dark about his own finances, the accountant, Cynthia Laporta, pushed back.
“In most instances, it was clear that Mr. Manafort was aware what was going on,” she testified.
Mr. Gates’s statements reinforced that picture. He said that Mr. Manafort knew it was illegal not to report his foreign bank accounts to the Treasury Department but asked Mr. Gates to help him deceive his accountants so he could conceal income and pay less in taxes.
“I assisted Mr. Manafort in filing false tax returns,” Mr. Gates testified. “We didn’t report the income or the fact that the accounts existed.”
.. He said that some of Mr. Manafort’s income was disguised as loans from 15 shell companies that Mr. Manafort controlled, most of them in Cyprus... Once that income dried up, the government alleges, Mr. Manafort, with Mr. Gates’s help, falsified financial records so he could obtain bank loans to maintain his opulent lifestyle... Gates testified that Mr. Manafort also was paid $4 million a year to help Mr. Yanukovych govern after he was elected president in 2010... while Mr. Yanukovych ran on a platform of integrating with the European Union, while also maintaining good relations with Russia, he eventually pivoted toward Moscow.. Mr. Gates also said that two American lobbying firms — the Podesta Group and Mercury Public Affairs — assisted with their policy consulting efforts. Mr. Mueller’s team has referred cases related to the firms’ work to federal investigators in the Southern District of New York... Mr. Manafort asked Mr. Gates to help arrange inauguration tickets and administration posts — including secretary of the Army — for a banker from whom Mr. Manafort is accused of fraudulently seeking loans, Mr. Gates testified.
.. Emails presented during Mr. Manafort’s trial showed that he sought the favors for Stephen M. Calk, the founder and chief executive of The Federal Savings Bank of Chicago. The bank began issuing loans that eventually totaled $16 million to Mr. Manafort in the days after Mr. Trump’s election based on false information provided by Mr. Manafort.
.. Mr. Gates said he was involved in discussions about nominating Mr. Calk to an economic advisory council.
.. Mr. Gates, 46, admitted Monday that he was guilty of a long list of crimes, including stealing hundreds of thousands of dollars from Mr. Manafort’s accounts by inflating his business expenses. He said that while he was helping Mr. Manafort hide income to evade taxes, and later to inflate his income to obtain bank loans, he was doing essentially the same on his own behalf.
.. In exchange for his cooperation, the government in February agreed to dismiss 22 criminal charges stemming from his involvement in the scheme for which Mr. Manafort is now on trial.
.. sentencing guidelines recommend a prison term of up to six years, he testified that prosecutors have agreed not to object if his defense attorney argues that he should receive probation.
Did Mercury Public Affairs participate in a scheme to obscure its Ukrainian lobbying?
.. Vin Weber, a former Republican congressman from Minnesota turned DC power-lobbyist, was a foreign policy adviser to presidential candidate Mitt Romney and in line for a top administration job, should Romney win the White House.
.. The work was lucrative—it ultimately netted Mercury more than $1.1 million—but problematic. It might have required Weber to register as a foreign agent for a regime known for its close ties to Russia, which Romney famously denounced as America’s top geopolitical threat. That, in turn, might have complicated Weber’s chances of landing a job in a Romney White House.
.. Prosecutors charge that Manafort and Gates arranged for a Brussels-based think tank, the European Centre for a Modern Ukraine, to be “the nominal client” of Mercury and the Podesta Group
.. the former congressman pushed for Mercury and Podesta to avoid registering with the Justice Department under the Foreign Agents Registration Act, or FARA, as agents for Ukraine.
.. The “Centre is funded by a group of Ukrainian business people,” not Yanukovych’s Party of Regions, a spokeswoman for the firm inaccurately told the Daily Beast at the time.
.. The Podesta Group eventually agreed to skip registering under FARA after insisting that the firms also obtain a written certification from the European Centre that it was not funded or controlled by a foreign government or a political party
.. It has kept up its foreign lobbying business, in recent months signing on as one of a number of DC firms lobbying for Qatar.
.. Last month, Mercury registered to represent the Turkey-US Business Council, a group formerly headed by a shadowy businessman, Ekim Alptekin, who in 2016 arranged for Michael Flynn to secretly work for Turkey
.. Gates and Manafort held weekly calls with Mercury and the Podesta Group “to provide them directions as to specific lobbying steps that should be taken,” and “both congratulated and reprimanded” the firms “on their lobbying work,”
.. allege that both Mercury and Podesta “were paid for their services not by their nominal client, the Centre, but solely through offshore accounts” controlled by Manafort.