After three days of dramatic testimony in the trial of Paul Manafort,, prosecutors returned on Thursday to the nuts and bolts of their case against Donald Trump's former campaign chairman as they sought to show he obtained millions of dollars in bank loans under false pretenses.
Attorneys for special counsel Robert Mueller also got a rare — and narrow — acknowledgement from Judge TS Ellis III that he likely erred when he angrily confronted them a day earlier over whether he had allowed a witness to watch the trial.
The judge's comments and detailed testimony about Mr Manafort's loans opened the eighth day of his trial as prosecutors began presenting the bulk of their bank fraud case against him after spending days largely on tax-evasion allegations. Mr Manafort denies all the charges against him.
On Thursday, a bank employee told jurors how she discovered discrepancies in the information he put on his loan application, including holes in his claims about a New York City property. Melinda James, a Citizens Bank mortgage loan assistant, testified that Manafort had told the bank that the property would be used as a second residence, but she found it listed as a rental on a real estate website.
In another instance, Ms James said Mr Manafort maintained that there were no mortgages on a separate New York property when there actually were. All the while, Mr Manafort signed paperwork indicating he understood that he could face criminal or civil penalties if he lied to the bank.
Airbnb executive Darin Evenson also told jurors that one of Mr Manafort's New York City properties was offered as a rental through much of 2015 and 2016 — a direct contradiction of the documents the longtime political consultant submitted to obtain a $3.4 million loan. Another bank employee said the distinction matters because the bank caps loans for rentals at $1 million.
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Interrogation of government's star witness continues after he is accused of telling 'so many lies' he cannot remember them allJudge Ellis has been very outspoken during the trial, with has included several run-ins with the prosecution. One on Wednesday involved the judge admonishing counsel over an expert witness.
“I was critical of counsel for … allowing an expert to remain in the courtroom,” he said before testimony began. “You may put that aside… I may well have been wrong.”
On Wednesday, Judge Ellis scolded prosecutors for calling an IRS expert who has sat through the trial in the gallery. Prosecutors filed a motion Thursday morning pointing out that the transcript backed up their understanding that Ellis had explicitly allowed the expert to do so.
“The Court’s reprimand of government counsel suggested to the jury—incorrectly—that the government had acted improperly and in contravention of Court rules,” prosecutors wrote. “This prejudice should be cured.”
Judge Ellis said Thursday that he had not actually read the transcript, which was attached to the government motion.
But, the judge said, “I was probably wrong.”
Melinda James, who worked at the bank, testified that all the applications Mr Manafort submitted indicated his property on 29 Howard St. was a second residence, her research indicated otherwise. She said that as she was processing the loan, she went to a website called StreetEasy to confirm the address.
“It was listed for rent,” Ms James testified.
Citizens Bank mortgage loan assistant Melinda James has also testified that Mr Manafort apparently lied about whether there was a mortgage on a townhouse he owned in Brooklyn.
Ms James said that in emails Mr Manafort indicated he owned the Carroll Gardens home “free and clear,” but insurance declarations showed a mortgage on the property.
A central pillar of the defence's strategy has been to paint Mr Gates - described as Mr Manafort's 'right-hand man' as being the one behind any fraud.
Mr Gates agreed a plea deal with prosecutors earlier this year and has been their star witness during the trial.
Mr Evenson testified that the loft was available for 1,125 nights in a row, the maximum number allowed on Airbnb.
We are back with Darin Evenson, the former Navy SEAL who now runs “customer experience” at Airbnb, on the stand facing questions from defense attorney Jay Nanavati
The defence lawyer sought to show that Paul Manafort’s Howard Street property in lower Manhattan could still have been a residence, no matter its listing on the website.
Mr Nanavati asked Mr Evenson if those who list properties on Airbnb consider them their primary residences.
“In most cases,” Mr Evenson responded, “it is their primary residence.” He said Airbnb data shows that 73 percent of properties listed are the hosts’ primary residences.
Mr Nanavati then pointed to the listing itself to show that Mr Manafort’s son-in-law, who rented the property, seemed to treat it as a residence. The description said the host or a friend would be available to help those renting the property with problems, and the “House Rules” said only, “As you would expect me to behave in your home.”
Prosecutors showed an email Paul Manafort sent to his then-son-in-law Jeff Yohai as he sought to allegedly cover up that the Soho condo he owned was rented out instead of lived-in.
Mr Manafort needed an independent appraiser in early 2016 to confirm for a bank looking into the property that the condo was a residence.
He directed Mr Yohai to meet with the appraiser, according to the January 2016 email.
Peggy Miceli, an underwriting manager for Citizens Bank, was the last person to finish testifying. She answered questions about loan forgiveness issues and her bank's policy on Airbnb rentals.
Prosecutors said they plan to call two more witnesses: Taryn Rodriguez with Citizens Bank and Gary Seferian.
"Disclosing the identified transcript portions would reveal substantive evidence pertaining to an ongoing investigation ... In addition, sealing will minimise any risk of prejudice from the disclosure of new information relating to that ongoing investigation," the special counsel's team wrote in a court filing about the discussion.
"The government’s concerns would continue until the relevant aspect of the investigation is revealed publicly, if that were to occur," prosecutors wrote.
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Meanwhile, attorneys for Special Counsel Robert Mueller say in a court filing that “substantive evidence” of the investigation was discussed out of earshot of the jury or the public during the testimony of longtime Mr Manafort deputy Rick Gates earlier in the week.
Prosecutors say the conference involved Mr Manafort's attorneys attempting to pursue a line of questioning with Mr Gates. The filing does not identify the line of questioning, but one bench conference during Mr Gates' testimony was prompted by Mr Manafort lawyers asking whether he had spoken to Mr Mueller about his work on the Trump campaign.
Mr Mueller is investigating Russian election interference and any possible coordination with Trump associates - although the charges against Mr Manafort do not relate to collusion.
Mr Manafort's trial continues.
Associated Press
