An IRS agent revealed that Paul Manafort had at least $16 million in unreported taxable business income over four years while testifying during the former Trump campaign chairman's trial for tax and bank fraud on Wednesday.
Rick Gates, under cross examination at the tax evasion and bank fraud trial of his former boss Paul Manafort, admitted that he had "another relationship" involving first-class flights and luxury hotels, but denied these were funded with money embezzled from Manafort.
Manafort also falsely classified another $1.5 million in income as a loan, Welch testified - while adding that Manafort never indicated he had foreign bank accounts on his tax returns.
The jury has heard how Manafort made tens of millions of dollars working for pro-Russian politicians in Ukraine. But then prosecutor Greg Andres invoked Trump's name, and Gates' and Manafort's work on the campaign became more explicitly tied to the alleged crimes at the heart of the trial.
Gates replied that "I made many mistakes over many years" before stepping down from the witness stand.
Mr Gates said he did, but the defence lawyer wasn't satisfied.
Rick Gates said under questioning from Manafort's lawyer Wednesday that he told Federal Bureau of Investigation agents and Justice Department lawyers about some of the offshore companies that contained millions of dollars in proceeds from their Ukrainian political work.
Gates's testimony wrapped moment later.
"I'm here to tell the truth and take responsibility for my actions", Gates said in response to a question from Downing about his trustworthiness.
Gates had testified about one five-month affair with a paramour in London almost a decade ago, but had never been directly questioned on the stand about whether he'd had any other sexual relationships.
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Downing accused Gates of using the funds he admitted to stealing from Manafort to pay for a lavish lifestyle that included a London apartment and travel funds to finance one of his extramarital affairs. So frequent were Gates's crimes that he could not answer definitively when asked if he had stolen money from the Trump inauguration committee, for which he served as deputy chairman.
Part of that record were several emails Manafort sent Gates. But Gates pleaded guilty months later and agreed to cooperate in Mueller's investigation of Manafort, the only American charged by the special counsel to opt for trial instead of a guilty plea.
U.S. District Judge T.S. Ellis has repeatedly prodded them to move swiftly while seemingly giving the defense more latitude.
Those who dealt with Manafort's taxes also testified that even though they asked Manafort whether he maintained any bank accounts overseas, he told them no.
And after Rick Gates finished giving his close-up angle on Manafort's financial doings, the prosecution zoomed out to put the financial charges all into context.
He told jurors he embezzled from Mr Manafort by filing false expense reports. "In reality, it was basically money moving between accounts". He was so desperate, prosecutors say, that he allegedly falsified loan application documents to keep himself afloat. But Trump has shown interest in the proceedings, tweeting support for Manafort.
FBI forensic accountant Morgan Magionos walked jurors through her special counsel-ordained investigation that revealed how Manafort purchased luxury goods back in the USA through foreign bank accounts.
As well as being a senior aide on Trump's election campaign, Gates served as the deputy chairman of the U.S. president's inaugural committee.
Gates added that Manafort also wanted to give the businessman a heads-up about the FBI's interest in the offshore accounts as part of the USA government's efforts to recover assets stolen under former Ukrainian President Viktor Yanukovych.
Rick Gates said that he told Federal Bureau of Investigation agents and Justice Department lawyers about some of the offshore companies that contained millions of dollars in proceeds from their Ukrainian political work.