Manafort trial: Banker testifies about former Trump campaign manger's loans after mystery over Judge TS Ellis' hours-long recess

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Ex-Trump Campaign Chair Manafort's Court Arrival

The chief executive officer of a small Chicago bank that approved $16 million in loans to former Donald Trump campaign chairman Paul Manafort was seeking a post in the new administration, a witness has testified

Dennis Raico, a former Federal Savings Bank executive testifying under immunity, said the bank's chief executive, Stephen Calk, expressed interest in such posts as Treasury secretary or Housing and Urban Development secretary.

Mr Manafort later asked the incoming administration to consider tapping Mr Calk for secretary of the Army, according to testimony earlier in the week. Mr Calk, a retired Army officer and helicopter pilot, did not get the job.

Mr Raico was one of several witnesses scheduled for Friday as the trial resumed after a recess that lasted into the mid-afternoon. He and James Brennan, a Federal Savings executive, were granted immunity against prosecution by Special Counsel Robert Mueller before testifying.

The witnesses were the latest in the government's case against Mr Manafort, who faces 18 felony counts of bank fraud, tax fraud and failing to disclose about 30 foreign bank accounts.

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Four of Mr Manafort's felony counts involve the $16 million of loans prosecutors have said were extended by Federal Savings in late 2016 and early 2017. Mr Manafort denies all the charges against him.

The bank and Mr Calk, who was named an economic adviser to the Mr Trump campaign in August 2016, did not respond to requests for comment.

Rick Gates, the deputy chairman of Trump's inaugural committee, who also worked on his campaign, testified earlier this week that Mr Manafort had told him to ask about making Mr Calk secretary of the Army.

Associated Press

Key Points

• Rick Gates testifies to falsifying documents during Manafort trial
• Who is the former Trump campaign manager and why is he on trial?

[10 August 2018 14:29 · Steve Anderson]

The judge overseeing the Paul Manafort trial has granted a request from the Special Counsel’s office to keep secret a conversation that might shed light on its ongoing investigation into whether the Trump campaign coordinated with Russia.

The conversation came on Tuesday, as Rick Gates, Mr Manafort’s business partner who worked on both the Trump campaign and the Trump inaugural, was on the witness stand. During his cross examination of Mr Gates, Mr Manafort defense attorney Kevin Downing asked, if, during Mr Gates’s cooperation with the special counsel after he agreed to a plea deal, he was interviewed about the Trump campaign. Mr Gates said he had been.

[10 August 2018 15:28 · Steve Anderson]

Among those expected to take the stand are officials from Federal Savings Bank, one of the institutions Mr Manafort is accused of defrauding to get a loan.

Emails were previously shown in court that Mr Manafort had suggested his associate Rick Gates help the founder and CEO of the bank, Stephen Calk, get a job as Army Secretary in the Trump administration, as well as an invite to the presidential inauguration

[10 August 2018 16:32 · Lucy Anna Gray]

A moment of existential contemplation from the Paul Manafort trial...

[10 August 2018 16:35 · Lucy Anna Gray]

Judge in TS Ellis has called a recess without explanation. The US district judge huddled with attorneys from Special Counsel Robert Mueller's office and Paul Manafort's defence lawyers, as well as court security officers, for more than 20 minutes before calling the recess. The judge then exited the courtroom toward the jury room. 

[10 August 2018 16:57 · Steve Anderson]

It was unclear exactly why testimony did not resume on Friday morning. Judge Ellis, the federal judge overseeing the case, reminded jurors on Friday to "keep an open mind," and said that Mr Manafort is presumed innocent. He gave them explicit instructions to not talk to one another or others about the case.

His comments came after holding a long conversation with lawyers for Mr Manafort and the government in the morning.

"I have a lot of other matters that have intruded," he said.

[10 August 2018 19:10 · Steve Anderson]

Still not much to report from the trial other than the mystery surrounding the break>>

Lawyers from both sides huddled with Judge TS Ellis twice this morning. After almost an hour of waiting, lawyers from both sides and Judge Ellis returned to the courtroom at 11:07 a.m.

Mr Ellis brought the 16 jurors in, stressed to them the importance of not discussing the case and told them to "keep an open mind." He also said the court plans to "continue with evidence" presentations in the afternoon today and that he would "expect to make progress."

Mr Ellis then said the court would take an open lunch and reconvene at 1:45 p.m. ET.

​He gave no further detail about the morning's delay. 

[10 August 2018 19:30 · Steve Anderson]

More than 30 minutes after court was supposed to reconvene, Judge TS Ellis, prosecutors and some defence lawyers have still not returned to the courtroom.

Paul Manafort and two of his legal team are still waiting the proceedings in the courtroom.

[10 August 2018 19:41 · Steve Anderson]

Judge Ellis and the legal teams are back in court. 

After conferring with an attorney for the prosecutors - including Greg Andres - and an attorney for the defense briefly, Mr Ellis said:

"Mr. Andres, you may call your next witness."

That's when Andres reminded him the jury still needed to be brought in. 

The courtroom erupted in laughter. 

[10 August 2018 20:15 · Steve Anderson]

A former Federal Savings Bank executive has testified that the bank's CEO asked him to call Paul Manafort to inquire about whether he could become a candidate for U.S. Treasury secretary.

Dennis Raico, the former executive, said Federal Savings Bank CEO Stephen Calk asked him to make the call to Mr Manafort on 11 November 2016, just days after Donald Trump's victory in the presidential election. 

Mr Raico was granted immunity for his testimony.

[10 August 2018 20:49 · Steve Anderson]

Dennis Raico, a loan officer at Federal Savings Bank, has testified that he acted as a go-between for his bank's founder and chairman Stephen Calk and Paul Manafort.

Mr Raico testified that this took place as the bank rushed to approve loans while Mr Calk allegedly sought upper-level perks in the Trump political operation.