Rick Gates, testifying in Manafort trial, admits to affair, London apartment

Rick Gates, the prosecution's star witness testifying in the federal fraud trial against Paul Manafort, revealed Tuesday that he once had an extramarital affair and maintained a London apartment — but said he couldn't recall if he used money he embezzled from Manafort to pay for it.

The topic came up as Kevin Downing, Manafort's defense attorney, hammered away at Gates' admitted habit of filing doctored expense reports in attempt to paint Gates as self-motivated and untrustworthy.

Downing then asked about what he called "the secret life of Rick Gates," inquiring whether Gates kept an apartment in London and if he engaged in an extramarital relationship there.

"I admitted to a previous relationship," Gates said. Gates added that he maintained a flat for about two months. According to The Washington Post, the affair occurred about 10 year ago.

During his testimony Monday, Gates admitted he had embezzled money from Manafort by creating false expense reports on his own behalf. He didn't state an exact dollar amount, but estimated it to be "in the hundreds of thousands."

Downing also asked Gates if he had submitted personal expenses to President Donald Trump's inaugural committee.

"It's possible," Gates, who was a Trump campaign aide, replied.

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Rick Gates and Donald Trump
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Rick Gates and Donald Trump
UNITED STATES - OCTOBER 30: FILE PHOTO Rick Gates looks on as GOP Presidential candidate Donald Trump checks the podium early Thursday afternoon in preparation for accepting the GOP nomination to be President at the 2016 Republican National Convention in Cleveland, Ohio on Wednesday July 20, 2016. (Photo By Bill Clark/CQ Roll Call)
UNITED STATES - OCTOBER 30: FILE PHOTO Rick Gates looks on as GOP Presidential candidate Donald Trump checks the podium early Thursday afternoon in preparation for accepting the GOP nomination to be President at the 2016 Republican National Convention in Cleveland, Ohio on Wednesday July 20, 2016. (Photo By Bill Clark/CQ Roll Call)
UNITED STATES - OCTOBER 30: FILE PHOTO From left, GOP Presidential candidate Donald Trump, campaign manager Paul Manafort and Rick Gates stand on stage during their podium check early Thursday afternoon in preparation for accepting the GOP nomination to be President at the 2016 Republican National Convention in Cleveland, Ohio on Wednesday July 20, 2016. (Photo By Bill Clark/CQ Roll Call)
UNITED STATES - OCTOBER 30: FILE PHOTO From left, Rick Gates, GOP Presidential candidate Donald Trump, Ivanka Trump,flanked by campaign manager Paul Manafort and daughter Ivanka, campaign manager Paul Manafort and Jared Kushner stand on stage during their podium check early Thursday afternoon in preparation for accepting the GOP nomination to be President at the 2016 Republican National Convention in Cleveland, Ohio on Wednesday July 20, 2016. (Photo By Bill Clark/CQ Roll Call)
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Gates' earlier testimony on Tuesday, meanwhile, centered on how Ukrainian businessmen paid Manafort for his consultancy work. Gates was asked about 11 Cypriot accounts, and he testified that they were all owned by Ukrainian businessmen.

He told the jury that Manafort, Trump's former campaign chairman, loaned himself money between two Cypriot accounts because "he was trying to decrease his taxable income." Gates said that these loans were actually income.

Gates explained that Manafort's financial difficulties worsened in 2014, when Viktor Yanukovych was no longer in power and the Party of Regions disintegrated.

When Yanukovych lost power, Gates testified that "decreased the income stream" significantly for Manafort, and his financial situation "substantially decreased" from prior years.

"Was he having difficulty paying his bills?" Andres asked.

"He was," Gates answered.

Gates' ongoing testimony on Tuesday — the sixth day of Manafort's fraud trial — came one day after he testified that he'd committed crimes with Manafort.

Gates, a former business partner of Manafort, testified that he began working with Manafort directly in October 2006, and the pair conspired between 2008 and 2015.

Gates said Monday that over the years, Manafort directed him to make payments through wire transfers. The income and the accounts, however, were not reported.

Gates also said that he did not report 15 foreign offshore bank accounts to the government. In addition, he testified, he did not submit the required forms at Manafort's direction. Gates said the money in these accounts was earned from Manafort's political campaign work.

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Trump's former campaign manager Paul Manafort through the years
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Trump's former campaign manager Paul Manafort through the years
U.S. Republican presidential candidate Donald Trump's campaign chair and convention manager Paul Manafort speaks at a press conference at the Republican Convention in Cleveland, U.S., July 19, 2016. REUTERS/Carlo Allegri
Republican presidential nominee Donald Trump gives a thumbs up as his campaign manager Paul Manafort (C) and daughter Ivanka (R) look on during Trump's walk through at the Republican National Convention in Cleveland, U.S., July 21, 2016. REUTERS/Rick Wilking
U.S. Republican presidential candidate Donald Trump's campaign chair and convention manager Paul Manafort appears at a press conference at the Republican Convention in Cleveland, U.S., July 19, 2016. REUTERS/Carlo Allegri
Republican U.S. presidential candidate Donald Trump's campaign manager Paul Manafort talks to the media from the Trump family box on the floor of the Republican National Convention in Cleveland, Ohio, U.S. July 18, 2016. REUTERS/Jonathan Ernst
Paul Manafort, senior advisor to Republican U.S. presidential candidate Donald Trump, smiles as he talks with other Trump campaign staff after Trump spoke to supporters following the results of the Indiana state primary, at Trump Tower in Manhattan, New York, U.S., May 3, 2016. REUTERS/Lucas Jackson
U.S. presidential candidate Donald Trump's senior campaign adviser Paul Manafort (L) walks into a reception with former Republican presidential candidate Dr. Ben Carson, at the Republican National Committee Spring Meeting at the Diplomat Resort in Hollywood, Florida, April 21, 2016. REUTERS/Joe Skipper
CLEVELAND, OH - JULY 21: Trump campaign manager Paul Manafort listens to Ivanka Trump speak at the Republican National Convention in Cleveland on July 21, 2016. (Photo by Michael Robinson Chavez/The Washington Post via Getty Images)
UNITED STATES - JULY 20: A man with a security credential takes a selfie at the podium as Donald Trump, flanked by campaign manager Paul Manafort and daughter Ivanka, checks the podium early Thursday afternoon in preparation for accepting the GOP nomination to be President at the 2016 Republican National Convention in Cleveland, Ohio on Wednesday July 20, 2016. (Photo By Bill Clark/CQ Roll Call)
UNITED STATES - JULY 19: Paul Manafort, advisor to Donald Trump, is seen on the floor of the Quicken Loans Arena at the Republican National Convention in Cleveland, Ohio, July 19, 2016. (Photo By Tom Williams/CQ Roll Call)
MEET THE PRESS -- Pictured: (l-r) Paul Manafort., Convention Manager, Trump Campaign, appears on 'Meet the Press' in Washington, D.C., Sunday April 10, 2016. (Photo by: William B. Plowman/NBC/NBC NewsWire via Getty Images)
NA.R.DoleMicCk1.081596.RG.Republican presidential candidate Bob Dole looks up from podium at balloons and television cameras as convention center manager Paul Manafort, at right, points out preparations for tonight's acceptance speech in San Diego, 08/15/96. (Photo by Robert Gauthier/Los Angeles Times via Getty Images)
WASHINGTON, DC - MARCH 21: Paul Manafort, Roger Stone and Lee Atwater, young Republicans political operatives who have set up lobbying firms. (Photo by Harry Naltchayan/The Washington Post via Getty Images)
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Special counsel Robert Mueller's team, which is investigating Russian interference in the 2016 election, says Gates was heavily involved in helping hide millions overseas. Gates pleaded guilty to reduced charges in February and agreed to cooperate with the government.

The tax and bank fraud charges in the current trial — the first of two Manafort is scheduled to face — however, have nothing to do with Manafort's work on the Trump campaign. Instead, prosecutors for Mueller have accuse Manafort of hiding at least $30 million that he earned while representing Russia's neighboring country of Ukraine and its president, Viktor Yanukovych, an ally of Russian President Vladimir Putin.

Both Gates and Manafort were indicted last October by a federal grand jury on 12 charges, including conspiracy against the U.S. Manafort has pleaded not guilty to all charges.

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