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Rick Gates, a former top official in Trump's campaign, leaves the Federal courthouse on Tuesday. Photo: Evelyn Hockstein/For The Washington Post via Getty Images

Rick Gates, the former right-hand man to Paul Manafort, recounted to jurors in court Tuesday how he and his longtime boss had used bank accounts and over a dozen offshore shell companies in Cyprus to evade taxes on millions of dollars in income from the IRS, reports the AP.

Why it matters: Gates is the star witness against Manafort, who is the first person to go on trial as a result of Special Counsel Robert Mueller's Russian probe. However, his trial is separate from Mueller's investigation. Manafort and Gates were the first two people indicted by the special counsel.

The details: Prosecutors had summoned Gates, who has reportedly been cooperating with Mueller, to detail how he and Manafort orchestrated an elaborate offshore tax-evasion and bank fraud scheme. According to the AP, Gates described the schemes: "In Cyprus, they were documented as loans. In reality, it was basically money moving between accounts."

  • Gates, laying responsibility on Manafort for a series of financial crimes, told jurors he repeatedly fabricated financial documents at the request of his boss, who was concerned about the amount of money he was paying in taxes.

Gates disclosed that he had about 20 meetings with Mueller and admitted to committing wrongdoing on his own — including embezzling hundreds of thousands of dollars without Manafort’s knowledge. Gates said he submitted an expense report to President Trump’s inaugural committee for reimbursement, conceding he may have received payment for something he shouldn’t have, per the Washington Post.

Go deeper

Dion Rabouin, author of Markets
25 mins ago - Economy & Business

Biden's inflation danger

Illustration: Sarah Grillo/Axios

President-elect Joe Biden's $1.9 trillion stimulus proposal has economists and bullish market analysts revising their U.S. growth expectations higher, predicting a reflation of the economy in 2021 and possibly more booming returns for risk assets.

Yes, but: Others are warning that what's expected to be reflation could actually show up as inflation, a much less welcome phenomenon.

Ina Fried, author of Login
2 hours ago - Technology

CES was largely irrelevant this year

Illustration: Sarah Grillo/Axios

Forced online by the pandemic and overshadowed by the attack on the Capitol, the 2021 edition of CES was mostly an afterthought as media's attention focused elsewhere.

Why it matters: The consumer electronics trade show is the cornerstone event for the Consumer Technology Association and Las Vegas has been the traditional early-January gathering place for the tech industry.

The FBI is tracing a digital trail to Capitol rioters

Illustration: Sarah Grillo

Capitol rioters, eager to share proof of their efforts with other extremists online, have so far left a digital footprint of at least 140,000 images that is making it easier for federal law enforcement officials to capture and arrest them.

The big picture: Law enforcement's use of digital tracing isn't new, and has long been at the center of fierce battles over privacy and civil liberties. The Capitol siege is opening a fresh front in that debate.