The Latest: Manafort ‘not happy’ about tax payments

ALEXANDRIA, Va. (AP) — The Latest on the fraud trial of former Trump campaign chairman Paul Manafort (all times Eastern):

2:04 p.m.

Prosecutors want the judge in Paul Manafort's fraud trial to let them show evidence his businesses failed to file federal foreign bank account reports detailing hidden assets abroad.

Attorneys for special counsel Robert Mueller's office say in a court filing that Manafort's defense lawyers opened the door to such evidence by repeatedly referring to complex rules governing the required reporting of foreign bank account reports, known as FBARs (EFF-BARS).

Prosecutors want to show that the former Trump campaign chairman didn't file any FBARs detailing accounts owned by his businesses, Davis Manafort Partners and DMP International.

The filing comes after a special agent with the Treasury Department's Financial Crimes Enforcement Network testified Monday that neither Manafort nor his wife personally submitted the paperwork as required by law.

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1:24 p.m.

Rick Gates says he repeatedly submitted fake financial documents at the behest of his boss, Paul Manafort.

Gates also says the former Trump campaign chairman repeatedly voiced concerns that he was paying too much in taxes and, later, that his funds were drying up.

In one note described to the jury, Gates says Manafort wrote "WTF" and "not happy" about tax payments he was going to have to make.

Gates told jurors how he helped Manafort convert foreign income into loans as a way to reduce his tax bill. He says he later helped draft sham loan agreements and loan forgiveness letters.

The testimony has bolstered the prosecution's tax-evasion and fraud case against Manafort. Manafort's attorneys will cross-examine Gates later Tuesday. They have sought to paint Gates as the instigator of any criminal conduct.

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11:17 a.m.

Rick Gates says he was interviewed by the FBI in 2014 as part of a forfeiture investigation being done by Ukrainian authorities and the FBI.

Gates told jurors under questioning Tuesday that he did not believe at the time that he or Paul Manafort, who was also interviewed, were the focus of that investigation.

Gates says Manafort instructed him to travel to France to notify a Ukrainian businessman that the FBI wanted to interview them and to get more information about his business.

Manafort's lawyers have said he was interviewed multiple times by the FBI. The asset-recovery investigation came after the fall of Ukrainian President Viktor Yanukovych, who employed Manafort for years.

Yanukovych and his officials have been accused of misappropriating tens of millions of dollars in Ukrainian assets.

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10:38 a.m.

Paul Manafort's one-time protege has described for jurors how millions of dollars flowed from entities controlled by Ukrainian businessmen into Manafort's bank accounts in Cyprus.

Rick Gates returned to the witness stand Tuesday as the government's star witness in Manafort's financial fraud trial in Alexandria, Virginia.

Gates said Manafort was paid for Ukrainian political consulting work, but that the money was classified as loans instead of income. He told jurors Manafort classified the money that way to decrease his taxable income. Gates says he didn't report the money as income to Manafort's bookkeeper or accountants.

Gates looked directly at prosecutor Greg Andres as he fielded questions. Manafort sometimes looked at Gates but also appeared to stare intently at documents displayed for the jury and on a screen in front of him.

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9:45 a.m.

The star witness for the government in Paul Manafort's financial fraud trial is returning to the witness stand.

Rick Gates, the longtime deputy of the former Trump campaign chairman, is continuing to relate the crimes he says he committed with Manafort.

Gates resumed his testimony Tuesday, a day after telling jurors how he helped Manafort hide millions of dollars in offshore accounts from the IRS and later aided him in fraudulently obtaining bank loans. Gates also admitted to embezzling hundreds of thousands of dollars from Manafort.

Gates is testifying as part of a plea deal he made with the government earlier this year. Manafort faces the potential of spending the rest of his life in prison.

Manafort's defense has sought to blame Gates for any crimes.

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12:23 a.m.

The star witness in the financial fraud trial of President Donald Trump's former campaign chairman is set to return to the witness stand after telling jurors he himself embezzled hundreds of thousands of dollars from his old boss.

Rick Gates is expected on Tuesday to continue describing the ins-and-outs of defendant Paul Manafort's finances, including what prosecutors say was an elaborate offshore tax-evasion and fraud scheme.

Gates is almost guaranteed to face withering cross-examination by Manafort's defense attorneys, who are seeking to blame any crimes on Manafort's onetime associate.

On Monday, Gates calmly acknowledged having embezzled hundreds of thousands of dollars from Manafort by filing false expense reports. He said the two committed crimes together by stashing money in foreign bank accounts and falsifying bank loan documents.

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