The defense team for Paul Manafort, including Kevin Downing, center, Thomas Zehnle, right, and Richard Westling walk to federal court during the trial of the former Trump campaign chairman, Friday, Aug. 10, 2018, in Alexandria, Va. (AP Photo/Evan Vucci)

The Latest: Banker says chairman approved loan to Manafort

August 10, 2018 - 3:30 pm

ALEXANDRIA, Va. (AP) — The Latest on the bank fraud and tax evasion trial of former Trump campaign chairman Paul Manafort (all times local):

4 p.m.

A New York banking executive is testifying that the chairman of his bank overruled his own bank's president in order to approve a $9.5 million loan to former Trump campaign chairman Paul Manafort.

Federal Savings Bank Senior Vice President Dennis Raico said Friday during Manafort's financial fraud trial that the bank's chairman, Stephen Calk, green-lighted the loan.

The loan was aimed for a Manafort property in Bridgehampton, New York, but the bank's president, Javier Ubarri, had torpedoed the loan application, questioning whether Manafort had enough income to pay it back.

Raico says the conversation occurred in late October 2016. That was two months after Calk had openly talked of his hope to gain a cabinet post if Manafort's then-boss, Donald Trump, won the presidency.

__

3:10 p.m.

Paul Manafort's financial fraud trial has resumed with the testimony of a bank executive who says he was pressured for political reasons to give the former Trump campaign chairman more than $16 million in loans.

The trial of the former Trump campaign chairman had been delayed for several hours Friday, and the judge offered no explanation for the recess ahead of banker Dennis Raico's testimony.

Raico, who testified under an immunity agreement, is detailing for jurors how he grew uncomfortable by pressure from Federal Savings Bank chairman Stephen Calk to approve the loans. Prosecutors have said that Calk pushed through the loans for Manafort because he wanted a job in the Trump administration.

Raico told jurors that Calk specifically referenced being a candidate for secretary of the Treasury or Housing and Urban Development.

Manafort is being tried on charges of tax evasion and bank fraud.

__

10:50 a.m.

The judge in Paul Manafort's trial has called a recess without explanation.

U.S. District Judge T. S. Ellis lll huddled with attorneys from Special Counsel Robert Mueller's office and Manafort's defense lawyers, as well as court security officers, for more than 20 minutes before calling the recess. The judge then exited the courtroom toward the jury room.

The recess comes as prosecutors are preparing to finish their case Friday. Manafort faces charges of bank fraud and tax evasion.

___

10:45 a.m.

Prosecutors for Special Counsel Robert Mueller are asking the judge overseeing the fraud trial of Paul Manafort to correct an earlier statement.

On Thursday, prosecutors questioned a loan officer for Citizen's Bank of New York, asking about Manafort's 2016 loan application that the bank rejected. U.S. District Judge T.S. Ellis III interjected: "You might want to spend time on a loan that was granted."

Early Friday, prosecutors said Ellis' crack "misrepresents the law" regarding bank conspiracy and "is likely to confuse the jury."

Ellis has yet to comment on the motion.

A day earlier, the judge acknowledged that he likely erred when he angrily confronted them a day earlier.

___

12:01 a.m.

Prosecutors in Paul Manafort's financial fraud trial say they expect to rest their case on Friday.

On Thursday, prosecutors returned to the nuts and bolts of their case against the former Trump 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, acknowledgment from U.S. District Judge T.S. Ellis III in Alexandria, Virginia, that he likely erred when he angrily confronted them over whether he had allowed a witness to watch the trial.

Thursday's testimony was devoid of some of the drama of recent days, when star witness Rick Gates was confronted about embezzling hundreds of thousands of dollars from Manafort and was forced to admit to an extramarital affair.

AP Editorial Categories: 
Comments ()