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Six bombshells from Rick Gates' testimony in the Paul Manafort trial

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Rick Gates says he and Manafort disguised foreign income as loans

Check back for updates on this developing story and read Thursday's Arkansas Democrat-Gazette for full details.

Fox News senior judicial analyst Judge Andrew Napolitano expressed his displeasure with the judge presiding over Paul Manafort's tax and bank fraud trial in Virginia by telling him to stop making this about him.

In fact, his name was barely mentioned in the first five days of the tax and bank fraud case brought against his former campaign chairman.

Welch, a 34-year IRS veteran who worked on more than 500 criminal investigations, is an expert witness in the trial.

Gates also said that he did not report 15 foreign offshore bank accounts to the government.

From the prosecution's perspective, Magionos' testimony was key to the jury's understanding of the case.

Gates has told jurors he and Manafort spent years carrying out a vast tax-evasion and bank fraud conspiracy involving millions of dollars. The income and the accounts, however, were not reported.

Neither were charged in connection with their Trump campaign work.

Also on Wednesday, an Federal Bureau of Investigation forensic accountant, Morgan Magionos, told jurors bank records from Cyprus, St. Vincent and the Grenadines and the United Kingdom revealed the accounts were connected to Manafort and his associates. He scoffed at the idea that Gates had repented for his actions, noting that prosecutors have said they won't oppose his bid for probation and getting him to acknowledge he had not repaid the money he had taken from Manafort.

Konstantin Kilimnik, a man prosecutors say has ties to Russian intelligence, was also among the beneficial owners of some of the companies. Prosecutors say they hope to reach their finale by Friday.

"It actually kind of shows in real time the course of months of investigation where they painstakingly did a jigsaw puzzle of records", former USA prosecutor Harry Litman said of Magionos' testimony. "Right now, it seems clear that it's the prosecution that should be specifically requesting that instruction from the judge in advance, as Judge Ellis has had some unusually cutting words for the prosecutors in this case".

During the testimony, Manafort did not stare Gates down as he did Monday.

Manafort's attorneys have signaled they will seek to blame Gates and have accused him of embezzling millions of dollars from Manafort.

"I have made many mistakes over many years", Gates, 46, replied.

Lawyers for Manafort used the opportunity to scrutinize Gates' personal foibles, asking if he had a "secret life" from 2010 to 2014.

Paul Manafort was concerned after a 2014 Federal Bureau of Investigation interview that one of the companies used to pay the former Trump campaign chairman for his Ukrainian political consulting work wasn't "clean".

On Tuesday, Downing asked how the jury could believe Gates "after all the lies you told and fraud you committed".

During his review, he said, he discovered that numerous foreign wire transfers did not appear on general ledgers for Manafort's political consultancy and therefore, "I was not able to trace it into the tax return".

Gates laying out a roadmap on how he and Manafort allegedly dodged USA taxes. after admitting Monday they committed numerous crimes as business partners.

U.S. President Donald Trump's one-time campaign aide Rick Gates testified for a third day on Wednesday at the trial of his former boss Paul Manafort, whose lawyers chipped away at his credibility for admitting he lied and stole money.

"I think Gates was a very poor witness".

Defense attorneys then used several hours of cross-examination to try to damage Gates' credibility in the eyes of jurors.

But it was Gates' testimony that has generated the most drama, as the witness admitted embezzling hundreds of thousands of dollars from his boss, confessed to an extramarital affair and turned in spectacular fashion against a longtime mentor.

A Manafort lawyer has accused the government's star witness of being immersed in "so many lies" that he can't even remember them all.

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