Manafort trial - live updates: Robert Mueller's team ask Rick Gates discussion to be kept secret to protect Russia investigation
Former Trump campaign chairman faces eighth day on trial for tax and bank fraud
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After three days of dramatic testimony in the trial of Paul Manafort,, prosecutors returned on Thursday to the nuts and bolts of their case against Donald Trump's former campaign chairman as they sought to show he obtained millions of dollars in bank loans under false pretenses.
Attorneys for special counsel Robert Mueller also got a rare — and narrow — acknowledgement from Judge TS Ellis III that he likely erred when he angrily confronted them a day earlier over whether he had allowed a witness to watch the trial.
The judge's comments and detailed testimony about Mr Manafort's loans opened the eighth day of his trial as prosecutors began presenting the bulk of their bank fraud case against him after spending days largely on tax-evasion allegations. Mr Manafort denies all the charges against him.
On Thursday, a bank employee told jurors how she discovered discrepancies in the information he put on his loan application, including holes in his claims about a New York City property. Melinda James, a Citizens Bank mortgage loan assistant, testified that Manafort had told the bank that the property would be used as a second residence, but she found it listed as a rental on a real estate website.
In another instance, Ms James said Mr Manafort maintained that there were no mortgages on a separate New York property when there actually were. All the while, Mr Manafort signed paperwork indicating he understood that he could face criminal or civil penalties if he lied to the bank.
Airbnb executive Darin Evenson also told jurors that one of Mr Manafort's New York City properties was offered as a rental through much of 2015 and 2016 — a direct contradiction of the documents the longtime political consultant submitted to obtain a $3.4 million loan. Another bank employee said the distinction matters because the bank caps loans for rentals at $1 million.
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Meanwhile, attorneys for Special Counsel Robert Mueller say in a court filing that “substantive evidence” of the investigation was discussed out of earshot of the jury or the public during the testimony of longtime Mr Manafort deputy Rick Gates earlier in the week.
Prosecutors say the conference involved Mr Manafort's attorneys attempting to pursue a line of questioning with Mr Gates. The filing does not identify the line of questioning, but one bench conference during Mr Gates' testimony was prompted by Mr Manafort lawyers asking whether he had spoken to Mr Mueller about his work on the Trump campaign.
Mr Mueller is investigating Russian election interference and any possible coordination with Trump associates - although the charges against Mr Manafort do not relate to collusion.
Mr Manafort's trial continues.
Associated Press
As Ms James' testimony finished, prosecutors tried to reinforce that even if Mr Gates sent conflicting information about the Union Street mortgage, it was Mr Manafort who signed all papers confirming the accuracy of the paperwork provided to secure the loan.
Mr Manafort was copied on all the emails Mr Gates sent and had ample opportunity to correct any discrepancies on those messages or at closing, according to Ms James.
Darin Evenson, who runs “customer experience” at Airbnb, has testified that from January 2015 through April 2016 Paul Manafort’s condo on Howard Street in Manhattan’s SoHo district was almost always available to rent through the website. That is despite it being labelled as a "second home".
Mr Evenson testified that the loft was available for 1,125 nights in a row, the maximum number allowed on Airbnb.
We are back with Darin Evenson, the former Navy SEAL who now runs “customer experience” at Airbnb, on the stand facing questions from defense attorney Jay Nanavati
The defence lawyer sought to show that Paul Manafort’s Howard Street property in lower Manhattan could still have been a residence, no matter its listing on the website.
Mr Nanavati asked Mr Evenson if those who list properties on Airbnb consider them their primary residences.
“In most cases,” Mr Evenson responded, “it is their primary residence.” He said Airbnb data shows that 73 percent of properties listed are the hosts’ primary residences.
Mr Nanavati then pointed to the listing itself to show that Mr Manafort’s son-in-law, who rented the property, seemed to treat it as a residence. The description said the host or a friend would be available to help those renting the property with problems, and the “House Rules” said only, “As you would expect me to behave in your home.”
Prosecutors showed an email Paul Manafort sent to his then-son-in-law Jeff Yohai as he sought to allegedly cover up that the Soho condo he owned was rented out instead of lived-in.
Mr Manafort needed an independent appraiser in early 2016 to confirm for a bank looking into the property that the condo was a residence.
He directed Mr Yohai to meet with the appraiser, according to the January 2016 email.
"Remember, he believes that you and Jessica are living there," Mr Manafort wrote, referring to Mr Yohai's then-wife, Mr Manafort's daughter Jessica.
Peggy Miceli, an underwriting manager for Citizens Bank, was the last person to finish testifying. She answered questions about loan forgiveness issues and her bank's policy on Airbnb rentals.
Prosecutors said they plan to call two more witnesses: Taryn Rodriguez with Citizens Bank and Gary Seferian.
This has turned into a day full of the technical details about the loan process for banks, and Airbnb policies.
Special counsel Robert Mueller's team told the court they want to keep a discussion regarding Rick Gates secret because releasing the transcript of the conversation would “reveal details of the ongoing investigation.”
The discussion took place Tuesday afternoon and involved the trial attorneys and Judge TS Ellis.
The still-secret conversation occurred in the middle of former Trump deputy campaign chairman Rick Gates' testimony against his longtime boss Paul Manafort.
Defense attorney Kevin Downing asked Mr Gates: “Were you interviewed on several occasions about your time at the Trump campaign?”
Prosecutor Greg Andres objected to the question before Mr Gates could answer.
"Disclosing the identified transcript portions would reveal substantive evidence pertaining to an ongoing investigation ... In addition, sealing will minimise any risk of prejudice from the disclosure of new information relating to that ongoing investigation," the special counsel's team wrote in a court filing about the discussion.
"The government’s concerns would continue until the relevant aspect of the investigation is revealed publicly, if that were to occur," prosecutors wrote.
Testimony is moving slowly, with more about bank loans applied for by Mr Manafort, so with that we are closing our coverage for today.
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