#ManafortTrial Thread (1/9)
At the start of his testimony Tuesday, prosecutor Greg Andres asked Gates to explain the payment structure Manafort allegedly used with shell companies in Cyprus.
At the start of his testimony Tuesday, prosecutor Greg Andres asked Gates to explain the payment structure Manafort allegedly used with shell companies in Cyprus.
“Ukrainian businessmen” told Manafort and Gates that establishing Cypriot accounts would make their transfers easier, Gates said.
One the accounts were set up, the next step was to draft a consulting agreement.
One the accounts were set up, the next step was to draft a consulting agreement.
“[Manafort] and [the Ukrainian client] would sit together. Manafort would create a political policy, craft a budget and then they would negotiate a pay structure,” Gates said.
The fee would be entered into the consulting contract and from there, Gates said a “Cypriot attorney” would review it.
It would then pass through Konstantin Kilminik’s hands for a final review, Gates said.
It would then pass through Konstantin Kilminik’s hands for a final review, Gates said.
Then it was up to Manafort to tweak the agreement from there.
Andres then displayed a handful of the consulting agreements between Manafort and his Ukrainian clients. The bulk of the contracts displayed Tuesday morning were from 2012 and detailed plans for payment between
Andres then displayed a handful of the consulting agreements between Manafort and his Ukrainian clients. The bulk of the contracts displayed Tuesday morning were from 2012 and detailed plans for payment between
Manafort’s shell companies, Black Sea View Limited, Leviathan Advisers and Peranova Holdings Limited and Ukrainian-held companies, Telmar Investments Limited and Dressler Limited.
According to prosecutors, Telmar Investments Limited is owned by Serhiy Lovochkin; Dressler is owned by Serhiy Tihipko.
“What was this money for?” Andres asked Gates.
“It was money received for policy work,” Gates said.
“What was this money for?” Andres asked Gates.
“It was money received for policy work,” Gates said.
“Did [Black Sea View, Leviathan or Peranova] sell any products or have any employees?”
“No,” Gates said.
“What was their purpose?”
“No,” Gates said.
“What was their purpose?”
“Their purpose was to accept and make payments,” Gates said of the shell companies.
When Andres asked Gates why Manafort opted to set up the accounts this way, his former partner responded plainly: so Manafort could avoid disclosing his taxable income.
When Andres asked Gates why Manafort opted to set up the accounts this way, his former partner responded plainly: so Manafort could avoid disclosing his taxable income.
