Gates says Manafort told him to be truthful to Federal Bureau of Investigation

"Did you commit crimes with Mr Manafort?" prosecutor Greg Andres asked Gates.

More broadly, this trial is a direct result of the special counsel's investigation into the Trump's campaign contacts with Russian Federation. The loan was actually income disguised to lower Manafort's taxes, he said, and then forgiven to help Manafort get a loan.

Gates proved essential to prosecutors' attempt to tie Manafort to the dozens of foreign bank accounts in Cyprus, the United Kingdom, and St. Vincent and the Grenadines where he allegedly hid millions of dollars of taxable income from the IRS for almost a decade.

Gates, who is awaiting sentencing, told jurors that he siphoned off money without Manafort's knowledge by filing false expense reports.

Manafort defense attorney Kevin Downing tried to confront Gates over whether he had engaged in four extra-marital affairs and failed to disclose them to prosecutors before becoming a witness for the government. Gates said the money in these accounts was earned from Manafort's political campaign work.

Gates said prosecutors agreed not to pursue charges on those matters, and dropped a second indictment against him accusing him of bank and tax fraud.

While the defense's strategy seems focused destroying Gates' trustworthiness in the eyes of the jury, prosecutors have sought to broaden their case so it's not completely reliant on him.

He is the first subject of special counsel Robert S. Mueller's investigation to stand trial. He's expected to go for at least another hour in questioning with Manafort's attorney's.

In October 2016, for instance, Gates sent Manafort DMP's profit and loss statement (P&L) from January 1 through June 30 of that year, emails introduced in court Tuesday show. The email exchange occurred after Manafort left the Trump campaign but while Gates was active on the Trump inauguration committee.

Gates, who was working on Trump's transition team, testified that Manafort had suggested Stephen Calk as a candidate for Army secretary two weeks after Trump was elected.

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Trump's freakish and inaccurate claims in support of the laws certainly won't help win much additional support on the issue. He issued a vialed threat about a government shutdown unless congress acts to fully fund a boarder wall.

More recently, after the launch of the Mueller investigation but before his plea bargain, Gates lied to the FBI about a meeting between Manafort and an unnamed US Congressman regarding a "specific issue".

Manafort, who helped Republicans Gerald Ford and Ronald Reagan reach the White House, was Mr Trump's campaign chairman from May to August 2016.

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.

He told the jury that Manafort, Trump's former campaign chairman, loaned himself money between two Cypriot accounts because "he was trying to decrease his taxable income". Courtroom illustration courtesy of Bill Hennessy.

Gates described to jurors how he repeatedly submitted fake financial documents at Manafort's behest as his former boss became concerned he was paying too much in taxes and, later, that his funds were drying up.

Gates converted the 2015 DMP P&L to a Word document for Manafort, but there were spacing, font, and other discrepancies between that copy and the original.

Prosecutors also say the men falsified documents to lie to banks in order to qualify Manafort for loans. "Mr Manafort had the same path".

During the testimony, Manafort did not stare Gates down as he did Monday.

That testimony probably explains one of the minor mysteries of the first week of the Manafort trial. "We don't plan on doing that, but we plan on questioning him about what we call his, you know, separate secret life and how ... it relates to money he had stolen, embezzled, and things that he was doing, but specifically as to infidelity, we do not think we're going to get into that".

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