Manafort trial: Judge TS Ellis calls for short closing arguments on Wednesday as defence rests case

Manafort Trial Turns from Prosecution to Defense as Manafort's wife and attorneys arrive

The defence has rested in the trial of former Donald Trump presidential campaign chairman Paul Manafort, with Judge TS Ellis calling closing arguments for Wednesday morning.

Mr Manafort’s trial on several counts of tax evasion and bank fraud will like see the jury head out for deliberations on Wednesday, after his legal team did not call any witnesses to the stand in the federal court in Alexandria, Virginia.

Mr Manfort decided not to testify in what is the first trial related to the FBI investigation led by special counsel Robert Mueller, of Russian election meddling and possible collusion between Mr Trump’s 2016 campaign team and Russian officials.

Mr Manafort's charges are not directly related to his work on the campaign, but Mr Mueller and the prosecution have alleged some of the fraudulent activity occurred while Mr Manafort served as the chairman.

Mr Manafort is accused, among other things, of hiding millions of dollars in more than 30 overseas bank accounts which he did not report on his personal taxes.

His lawyers have repeatedly attacked Mr Manafort’s campaign deputy and longtime business partner Rick Gates, claiming it was he who was responsible for the account management.

Mr Gates had pleaded guilty to the counts outlined in the October 2017 indictment and said to be cooperating with Mr Mueller’s team.

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[14 August 2018 10:55 · Andrew Griffin]

Here's some background from the Associated Press:

The trial is the first to emerge from special counsel Robert Mueller's investigation, but it does not relate to any allegations of Russian election interference or possible coordination with the Trump campaign. Neither Manafort nor Gates have been charged in connection with their Trump campaign work. 

Still, the proceedings have drawn President Donald Trump's attention — and tweets — as he works to undermine the standing of the Mueller investigation in the public square. 

Trump has distanced himself from Manafort, who led the campaign from May to August 2016 — with Gates at his side. Gates struck a plea deal with prosecutors and provided much of the drama of the trial so far. 

The government says Manafort hid at least $16 million in income from the IRS between 2010 and 2014 by disguising money he earned advising politicians in Ukraine as loans and hiding it in foreign banks. Then, after his money in Ukraine dried up, they allege he defrauded banks by lying about his income on loan applications and concealing other financial information, such as mortgages. 

Gates said he helped Manafort commit crimes in an effort to lower his tax bill and fund his lavish lifestyle. During testimony, Gates was forced to admit embezzling hundreds of thousands of dollars from Manafort and conducting an extramarital affair. 

The prosecution has introduced a trove of documentary evidence as they've sought to prove Manafort committed 18 separate criminal counts. Along the way, they've not only faced an aggressive defense team but tongue-lashings from U.S. District Judge T.S. Ellis III, who presides over the case. The admittedly impatient judge has pushed the government to speed up its case. 

Before the government rested its case Monday afternoon, the court heard testimony from a bank executive who said he found several red flags with Manafort's finances while he was being considered for more than $16 million in bank loans. 

James Brennan, a vice president at Federal Savings Bank, says Manafort failed to disclose mortgages on his loan application. He said he also found several "inconsistencies" in the amount of income Manafort reported for his business. 

That information led senior executives to reject one of the loans. But Brennan said Federal Savings Bank chairman Stephen Calk overruled that decision. 

"It closed because Mr. Calk wanted it to close," Brennan said. 

Other witnesses have said Calk pushed the loans through because he wanted a post in the Trump administration. 

Emails admitted into evidence in the trial show that in the weeks after the 2016 election, Manafort lobbied Trump's son-in-law, Jared Kushner, to consider Calk for Secretary of the Army, a position Calk had put at the top of his list in an earlier email to Manafort. Calk also listed seven other senior domestic appointments and 18 ambassadorships — ranked in order of preference — that he would accept. 

In the Nov. 30, 2016, email to Kushner, Manafort passed along Calk's resume along with two other names of people he said "should be a part of the Trump administration." 

"The 3 individuals are people who I believe advance DT agenda. They will be totally reliable and responsive to the Trump White House," Manafort wrote, providing brief biographies for Calk and the other two candidates. 

Manafort noted Calk's background was "strong in defense issues, management and finance." He also listed three "alternative positions" in the Treasury and Commerce departments. 

Kushner responded, "On it!" 

Calk ultimately did not get an administration post, though he did approve the loans for Manafort. 

Brennan said the Chicago-based bank lost at least $11.8 million because it had to write off the two loans, which he said were the two largest the bank had made at that time. 

The prosecution also recalled a Treasury Department agent — over the objections of Manafort's defense team — to testify that two of his companies hadn't filed any reports disclosing the foreign bank accounts as required by federal law. 

Senior special agent Paula Liss said the Treasury Department had no record of DMP International or Davis Manafort Partners filing such reports between 2011 and 2014. 

Liss' testimony came after Manafort's attorneys signaled they intend to argue that the offshore accounts that he used to pay for millions of dollars in personal expenses, such as fancy suits, landscaping, rugs and homes, were actually controlled by the company and not him personally. 

Late Monday, Manafort's team also made a motion to dismiss all the charges, saying the government hadn't met its burden of proof. Ellis took the motion under advisement. 

Ellis also closed the courtroom from the public while he heard arguments on a sealed motion filed by Manafort's team. Ellis said the proceedings and the motion will be kept secret until after the case concludes. 

The closed hearing came after the judge delayed Manafort's trial for hours last Friday without explanation. The judge left the courtroom that day toward the jury room, and later admonished jurors repeatedly to not discuss the case.

[14 August 2018 16:07 · Kristin Hugo]

Today is due to focus on a defense motion to dismiss the charges against Paul Manafort. The defense argue that Mr Manafort would have been granted loans in spite of allegations he lied on forms, with Federal Bank CEO Stephen Calk, allegedly interested in getting Mr manafort to help him get a job in the Trump administration.

Mr Manafort sent an email to Jared Kushner recommending him for a position.

[14 August 2018 16:08 · Kristin Hugo]

Judge TS Ellis III must decide on something called a Rule 29 motion or a “motion for a judgment of acquittal.” And in a filing late Monday, the defense argued that at least one bank would have approved Manafort for loans no matter what information he entered in his loan applications.

The motion filed by defense lawyers usually comes after prosecutors rest and is mostly a procedural matter. It asks the judge to find there is not enough evidence to warrant a conviction and to acquit the defendant without sending the case to the jury.

Judges rarely grant such motions but defense attorneys almost always make the request as a way to preserve the matter for appeal in the future if their clients are convicted. In instances in which such motions are granted, the defendant goes free and cannot be prosecuted again.

[14 August 2018 16:16 · Kristin Hugo]

Mr Manafort's defense team thinks there is potential for the four Federal Savings Bank fraud charges - Mr Calk's bank - to be dismissed because of previous comments made by Judge Ellis in court, who suggested the bank couldn't be defrauded if its founder wanted Manafort to have the loans.

"We believe there's not been a showing of materiality as to those counts, that the bank -- the evidence suggests that the bank did not rely on any representations made by Mr. Manafort in granting those loans, and at this time, it would be appropriate to dismiss those counts," defense attorney Richard Westling said in court Monday evening

[14 August 2018 16:40 · Kristin Hugo]

Mr Manafort's trial has been quite the draw in Alexandria, with some people queuing for the public gallery from 5am.

[14 August 2018 17:00 · Kristin Hugo]

Judge Ellis said he would talk to Paul Manafort on Tuesday about whether he wanted to take the stand in his defense, a move legal experts say is highly unlikely.

Mr Manafort's lawyers will also tell the court on Tuesday whether they plan to call any witnesses. If the defense rests, closing statements would be next, after which the 12-person jury will begin deliberations.

[14 August 2018 17:11 · Kristin Hugo]

The defense attorneys for Paul Manafort rested their case on Tuesday without calling any witnesses or having the former Trump campaign chairman testify in the trial where he is accused of bank and tax fraud.

At the same time, the judge overseeing the trial rejected the motion fro Mr Manafort's legal team to throw out the 18 charges against him.

[14 August 2018 17:55 · Kristin Hugo]

Judge TS Ellis III said that closing arguments in the case will begin at 9:30 a.m. Wednesday, and jurors will be given instructions in the case after that.

The jurors will be sent home at 1:30 p.m. Tuesday, after they see the defense formally rest its case.

The lawyers will discuss on Tuesday afternoon what instructions jurors will receive. Those are wonky, but important, as they will shape how jurors debate the charges of which Mr Manafort is accused.

Mr Manafort denies all the charges.

[14 August 2018 19:23 · Kristin Hugo]

The jurors were called back to the courtroom shortly after 1:30 p.m., when they heard Mr Manafort’s attorneys rest their case and say they would not be calling any witnesses. The defense lawyers had announced their intentions earlier with the jury out of the courtroom.

Lawyers from both sides are expected to reconvene at 3.30pm to hash out jury instructions.

[14 August 2018 20:09 · Kristin Hugo]

On his way out of the courthouse, defense attorney Kevin Downing said that the defense rested its case because “the government has not met its burden of proof.”