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Paul Manafort's former bookkeeper has testified that the former Donald Trump campaign chairman kept her in the dark about the foreign bank accounts he was using to allegedly buy millions in luxury items and personal expenses.
Mr Manafort, facing trial on back fraud and tax charges otherwise approved “every penny” of the personal bills she paid for him, said Heather Washkuhn of the accounting firm NKFSB.
Washkuhn's testimony on the third day of the trial appeared to undercut an argument by Manafort's attorneys that he can't be responsible for financial fraud because he left the details of his spending to others, including his longtime associate Rick Gates. Washkuhn said Gates was involved only in Manafort's business dealings, not his personal expenses.
When it came to personal expenses, Mr Manafort - who denies all the charges against him “approved every penny of everything we paid,” Ms Washkuhn told jurors.
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Earlier, prosecutors asked the judge to allow photographs of his lavish lifestyle to be shown to jurors, arguing it is crucial to their case.
Judge TS Ellis has so far stopped the prosecutors from showing photos of Mr Manafort’s luxury purchases to the jury. Mr Ellis has reminded the lawyers and Northern Virginia jurors multiple times that it is not a crime for a person to be rich.
Prosecutors spent the first two days of the trial attempting to portray Mr Manafort as a tax cheat and a liar who hid much of the $60 million he earned from political work in Ukraine by stashing it in undisclosed overseas accounts.
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Mr Manafort routed millions of dollars to the United States by putting it in real estate, and spending it on expensive suits, cars and home renovations, according to half a dozen witnesses who testified on Wednesday.
Prosecutors allege that Mr Manafort evaded taxes through this scheme. Five of the 18 counts he faces relate to filing false tax returns. Mr Manafort has pleaded not guilty to all charges.
In a new filing, prosecutors wrote: “Manafort had an expensive lifestyle that required lots of money to maintain is important proof as to why he would commit the bank frauds” after lobbying work in Ukraine declined in 2014.
The trial is the first stemming from Special Counsel Robert Mueller's 14-month investigation of Russia's apparent meddling in the 2016 US presidential election and potential coordination between the Trump campaign and Moscow, though none of the charges against Mr Manafort involve this issue.
Prosecutors are due to question the head of a landscaping firm and one other vendor on Thursday before moving on to call accountants and a “series of tax preparers” to the stand.
After suggesting on Wednesday that their potential star witness, Mr Manafort's former associate Rick Gates, may not take the stand, the prosecution have also clarified they do intend to call him.
“We have every intention of calling him as a witness,” Greg Andres, a member of Mr Mueller's team said in a federal court in Alexandria, Virginia, outside Washington.
Mr Gates pleaded guilty to making false statements after being indicted by Mr Mueller and took a plea deal. Defence lawyers have sought to paint Mr Gates as an untrustworthy business partner who dealt with the funds from Mr Manafort's consulting firm.
Mr Mueller has indicted or secured guilty pleas from 32 people and three companies as part of his investigation. President Trump has repeatedly called Mueller's investigation a witch hunt and on Tuesday, he called on Attorney General Jeff Sessions to end it.
The prosecution are still laying out their case - with today expected to a case of the US attorneys asking the jurors to "follow the money trail" of Mr Manafort's political work in Ukraine.
There has also been some early talk of witnesses for later in the trial.
After suggesting yesterday that their potential star witness, Mr Manafort's former associate Rick Gates, may not take the stand, the prosecution have clarified they do intend to call him.
Mr Gates would take the stand - possibly as early as Friday - prosecutor Greg Andres said in court without the jury in the room.
Judge TS Ellis has brought up one of the elephants in the room — whether Mr Manafort himself will testify.
Mr Ellis said he did not yet know if Mr Manafort would testify in his own defense, and did not want to force a decision from the defense team until they begin their side of the case, after the prosecution's case rests.
“He will not be penalized for the right to remain silent,” Mr Ellis said.
Prosecutors are also formally arguing to Judge TS Ellis that they should be able to show proof to the jury of Paul Manafort’s lavish lifestyle, including photos of his high-end custom jacket, his real estate expenditures, and other purchases.
Judge Ellis has so far stopped the prosecutors from showing photos of Mr Manafort’s luxury purchases to the jury. The defense has wanted them kept out of the trial too. Mr Ellis has reminded the lawyers and Northern Virginia jurors multiple times that it’s not a crime for a person to be rich.
But in a filing, prosecutors wrote:
“That Manafort had an expensive lifestyle that required lots of money to maintain is important proof as to why he would commit the bank frauds” after his lobbying work declined in 2014.
A landscaper in the Hamptons has described in court how Paul Manafort — and Mr Manafort alone — commissioned him to care for hundreds of flowers at his house, as well as "one of the biggest ponds in the Hamptons."
Michael Regolizio of New Leaf Maintenance said Mr Manafort paid for much of the work through international wire transfer, and was his only client to do so.
Mr Regolizio testified that Mr Manafort spent about $450,000 on landscaping over five years.
Next to take the the stand is Paul Manafort's bookkeeper, Heather Washkuhn.
Prosecutors say her testimony will delve into the tax and bank fraud allegations in their case. Mr Manafort is accused of lying to the IRS to hide his income, and lying to banks to secure millions of dollars in loans.
Mr Manafort has pleaded not guilty to all charges.
As for the current witness, Heather Washkuhn, Mr Manafort's business and personal estate bookkeeper from 2011 to 2018, she has testified she had access to Mr Manafort’s personal and business bank accounts, managed his spending and also oversaw several of his properties, including a horse farm in Virginia, condos in New York City and a property in Florida.
Prosecutor Greg Andres asked Ms Washkuhn if she had ever heard of 14 different shell-company bank accounts Mr Manafort is alleged to have used. Ms Washkuhn answered "no" to every account.
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