IRS agent: Manafort had $16M in unreported income

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Gates said that these loans were actually income.

Prosecutors had braced for the tough questioning by getting Gates to come clean about his own crimes. That includes even using his position as Trump campaign chairman to sway a banker for a few more million dollars, according to court filings and previous testimony. He told jurors how he disguised millions of dollars in foreign income as loans in order to lower Manafort's tax bill. He testified that Mr. Manafort directed him not to report the existence of offshore bank accounts that prosecutors allege were used to hide millions of.

Defense lawyer Kevin Downing guided Gates on a tour through the wide array of lies he's told, and sought to paint him as a man not to be trusted.

Downing responded that the question goes to whether Downing told the truth to the special counsel or whether the plea agreement should be ripped up - potentially devastating to the government's case and to the public perception of special counsel Robert Mueller's investigation into Russian election interference.

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. They have tried several times to impugn his credibility before the jury.

Then he suggested that Gates had not been honest.

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.

Numerous jurors have diligently taken notes throughout the proceedings, peering down into small monitors in front of them to scrutinize bank and tax documents.

Gates conceded it was "in excess of 50 to 100 years", but said any eventual sentence - including avoiding jail by receiving probation - would be up to a judge. The email exchange occurred after Manafort left the Trump campaign but while Gates was active on the Trump inauguration committee. "Mr Manafort had the same path".

Gates struck a deal with special counsel Robert Mueller in February, pleading guilty to one count of conspiracy against the United States and one count of making false statements to the Federal Bureau of Investigation.

Rick Gates says he and Manafort disguised foreign income as loans

Instead, Manafort is charged with evading taxes and bank fraud related to the money he made providing political consulting services in Ukraine.

Numerous emails admitted into evidence Wednesday showed how Manafort personally directed wire transfers from such accounts.

Day seven of the Paul Manafort trial took a technical turn Wednesday, an indication that prosecutors could be wrapping up their case against the former Trump campaign chairman.

"After all the lies you've told and fraud you've committed, you expect this jury to believe you?"

He also said Manafort had asked him to disguise income as loans.

The face-off between longtime business associates and former senior members of the Trump campaign drew scores of people who waited in line for hours outside the courthouse and then jammed into both the courtroom and an overflow room that contained a video feed of the proceedings.

Manafort's defense team's primary strategy has been to pin much of the blame for financial crimes on Gates, and some observers felt Downing made some headway toward that goal on Tuesday.

For this Manafort was paid US$4million a year, in quarterly payments of US$1million, Gates recalled, though at some point the currency switched from United States dollars to Euros.

Ellis, known for his courtroom humor and occasional scolding of lawyers, has set strict boundaries on Manafort's trial.

In other testimony, Gates recounted how he converted a PDF of a profit-and-loss statement to a Microsoft Word document so he could doctor it to inflate the business' income.

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