Jonah Green has more.
T.S. Ellis, a 78-year-old Reagan-appointed judge in the case known for colorful comments, said this week that the prosecution can not prove a key part of their case unless prosecutors call Gates to the stand.
Prosecutors are giving more insight into how they built their case against former Trump campaign chairman Paul Manafort.
Prosecutors have said the accounts Manafort used were never declared to the IRS, part of a long-running scheme, they allege, to evade paying taxes on millions of dollars in income.
She admitted helping Manafort and his business partner's request to backdate documents and falsify financial records to reduce his tax burden and help him qualify for loans.
Ayliff testified that KWC did not know Manafort controlled Peranova, and that if the transfer was a payment related to his consulting work, it would have been treated as income - not as a loan - on his tax returns.
Testifying on the fourth day of the trial, Ms Laporta, who has been given immunity in exchange for testifying, said she knew what she did with fabricating the loan was "not appropriate".
For three hours Friday, Laporta appeared to be a knowledgeable and careful accountant, describing with verve the way clients should report taxes and pausing to double-check evidence the prosecutors led her through. Ayliff said that such declarations are the client's responsibility and that the firm isn't responsible to check the accuracy of information provided by a client.
That's how people learned he once spent more than $400,000 in a single year on his own personal wardrobe, paying handsomely for it with it through worldwide wire transfers from foreign bank accounts, according to witnesses and prosecutors.
Gates pleaded guilty to making false statements after being indicted by Mueller.
Earlier in the day, another accountant told testified that Mr. Gates and Mr. Manafort provided documentation for a suspicious foreign, not the lender.
The jury also heard from several money managers contracted to keep tabs on Manafort's cash flow. "But Manafort might still offer a great deal of help for Mueller, for instance, discussing the history of financial back-and-forth between Trump and Russian Federation".
"Rick said it was too high" and that Manafort "didn't have that money", Laporta said in response questions by prosecutor Uzo Asonye. He then switched from hiding his income in foreign bank accounts to inflating it so American banks would extend millions in real estate loans to him.
The Washington Post reported Saturday that Trump thinks both the media and Mueller are using Manafort's trial on bank and tax fraud charges this week to try to undercut his presidency.
The trial is the first stemming from Special Counsel Robert Mueller's 14-month investigation of Russia's role in the 2016 USA presidential election and potential coordination between the Trump campaign and Moscow, though none of the charges against Manafort involve this alleged collusion.
Here are four of the most shocking allegations that prosecutors have brought to the jury's attention so far during Manafort's trial.
While the question of collusion remains unanswered, Manafort's financial fraud trial has exposed the lucrative and secretive world of foreign lobbying that made Manafort rich.
Paul Manafort never told his bookkeeper about the foreign bank accounts he used to pay for millions in luxury items and other personal expenses. This case has had hours of tax code explanation and tax returns, corporate financial accounting and the intricacies of loan, income and mortgage tax deductions.
Ayliff also testified that he sometimes communicated with Gates about the former Trump campaign chairman's personal and business tax returns.