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Wed. 8:45 a.m.: Manafort accused of amassing ‘secret income’ as trial opens

ALEXANDRIA, Va. (AP) — Paul Manafort orchestrated a multimillion-dollar conspiracy to evade U.S. tax and banking laws, leaving behind a trail of lies as he lived a lavish lifestyle, prosecutors said as they laid out their case against the former Trump campaign chairman.

The trial scheduled to resume at 9:30 this morning and is expected to last for several weeks.

Prosecutor Uzo Asonye told the jury during his opening statement Tuesday that Manafort considered himself above the law as he funneled tens of millions of dollars through offshore accounts. That “secret income” was used to pay for personal expenses such as a $21,000 watch, a $15,000 jacket made of ostrich and more than $6 million worth of real estate paid for in cash, Asonye said.

“A man in this courtroom believed the law did not apply to him — not tax law, not banking law,” Asonye said as he sketched out the evidence gathered by special counsel Robert Mueller’s team in Manafort’s bank fraud and tax evasion trial.

Manafort’s trial is the first arising from Mueller’s investigation into potential ties between Donald Trump’s presidential campaign and Russia. It opened with extraordinary anticipation amid unresolved questions about whether Trump associates coordinated with the Kremlin to tip the election in the president’s favor.

But it was clear from the outset that the case would not address that question: Prosecutors did not once reference Manafort’s work for the Trump campaign nor mention Mueller’s broader and ongoing investigation into Russian election interference. Mueller was not present in the courtroom.

Manafort, the lone American charged by Mueller who has opted to stand trial instead of cooperate with prosecutors, was described by his defense lawyer as a hugely successful international political consultant who left the details of his finances to others.

He relied on a team of financial experts to keep track of the millions of dollars he earned from his Ukrainian political work and to ensure that that money was being properly reported, said attorney Thomas Zehnle. He especially trusted business associate Rick Gates, who pleaded guilty in Mueller’s investigation and is now the government’s star witness. But that trust was misplaced, Zehnle said in an opening statement that made clear that undermining the credibility of Gates — a former Trump campaign aide who spent years working for Manafort in Ukraine — is central to the defense strategy.

Zehnle warned jurors that Gates could not be trusted and was the type of witness who would say anything he could to save himself from a lengthy prison sentence and a crippling financial penalty.

“Money’s coming in fast. It’s a lot, and Paul Manafort trusted that Rick Gates was keeping track of it,” Zehnle said. “That’s what Rick Gates was being paid to do.”

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