A U.S. Internal Revenue Service agent testified on Wednesday that former Trump campaign chairman Paul Manafort, who is on trial on tax and bank fraud charges, had $16.5 million in unreported taxable business income between 2010 and 2014.
Defense attorneys then used several hours of cross-examination to try to damage Gates' credibility in the eyes of jurors. Based on the witnesses prosecutors have said they intend to call, Thursday will focus on the bank fraud they say he turned to after his Ukraine political work dried up.
On the seventh day of former Trump campaign chairman Paul Manafort's criminal trial, the prosecution wasn't ready to rest.
Mr Manafort and Mr Gates were the first people indicted in Mr Mueller's investigation into potential ties between Russian Federation and the Trump campaign.
In the filing, they argued that Ellis should instruct the jury that he made an error in admonishing them during the testimony of IRS agent Michael Welch.
He also said Manafort had asked him to disguise income as loans. Prosecutors allege Manafort used various ways to hide his income, including wiring money from Ukraine to the United States via a bank in Cyprus and listing it as a loan, and laundering almost $1 million through the purchases of Oriental rugs. Gates and Manafort were not targets of the Federal Bureau of Investigation at the time of the interview.
Ellis even took aim at journalists, threatening on Monday to kick reporters out of the courtroom if they continue being "disruptive". Gates, a longtime business partner of Manafort, had been working on the incoming president's transition team. They said his outburst prejudiced the jury by suggesting they had acted improperly and could undermine Welch's testimony.
Litman said he believed the indictment was hard to put together - "but once put together, a pretty straightforward case to prove".
The questioning is part of the Manafort defense strategy of presenting Gates to the jury as someone who lies and can not be trusted.
Melinda James, a mortgage loan assistant at Citizen's Bank, testified about a loan application from Manafort she helped process in late 2016 and early 2016.
On re-direct from the prosecution, Magionos agreed that two of Manafort's signatures on the same foreign bank document appeared different - implying that he didn't always sign his name the same way.
But on Wednesday, Manafort attorney Kevin Downing seemed to accuse Gates of having affairs with multiple individuals, asking Gates whether he disclosed four affairs to the special counsel's office.
Prosecutor Greg Andres asked Gates Thursday whether Mueller's team had told him how to answer questions.
At times, Ellis has crossed lines, Litman said. He also admitted to embezzling money from other employers in the past. "I am trying to change".
Mr Gates told jurors that he had been "tasked" by his boss "to determine how we could lower the taxes".
Gates told the court in Alexandria, Virginia, that he had met with government lawyer Greg Andres and Federal Bureau of Investigation agents 20 times and been told only to tell the truth, without any guarantee that he will be spared prison.
In testimony Tuesday, Gates acknowledged embezzling hundreds of thousands of dollars from Manafort and carrying on an extramarital affair.
Gates also said that he did not report 15 foreign offshore bank accounts to the government. And he lied to special counsel investigators after striking a plea agreement with them. On Tuesday, Downing straight out asked Gates: "After all the lies you've told and fraud you've committed, you expect this jury to believe you?"
Downing's smear of Gates may not matter if jurors think the documentary and email evidence prosecutors presented lines up with Gates' testimony.
When Downing resumed his questioning about what he called Gates' "secret life", Gates testified that he'd "made many mistakes over many years and I regret them".
"They may not like him".
Numerous jurors have diligently taken notes throughout the proceedings, peering down into small monitors in front of them to scrutinize bank and tax documents.