Dennis Raico testifies to Manafort loan applications
Dennis Raico was Day 9's first witness, the government's 24th overall. Raico is one of the government’s five witnesses who had been granted immunity for his testimony.
Raico is a senior vice president at Federal Savings Bank. He worked on two loans Manafort received from the bank totaling $16 million. The first loan was for $9.5 million and closed on November 16, 2016 and the second was for $6.5 million, closing January 4, 2017.
The first loan initially began as a construction loan for Manafort and then-son-in-law Jeff Yohai for properties in California and Manafort’s Bridgehampton home. In an unconventional move, Manafort asked the terms be changed at the closing table, dropping the California homes and requesting a cash out refinance loan on the Bridgehampton property using his Virginia home as cross-collateral.
The second loan was a consolidated takeout loan on Manafort’s property at 377 Union Street in Brooklyn.
Raico described Manafort and Yohai to be “a bit disorganized, unstructured, scattered.”
As underwriters were looking at Manafort’s financials in August 2016, Raico said there were some “discrepancies” in his income. “A plus B didn’t equal C all the time,” Raico testified.
In October of 2016, Manafort emailed Calk citing a “major issue.” He said he’d told Calk he had a $2.5 million payoff for his Bridgehampton home when it was in fact a $3.5 million payoff. “I look to your cleverness on how to manage the underwriting,” Manafort wrote.
On October 19, during the closing of this first loan, Raico got a call that Manafort no longer wanted to include his California properties. He said Manafort rewrote the terms of his own loan, something that was “not bank policy,” but when asked by Ellis if it was wrong to do so, answered “no.” He said he’d never seen a loan get restructured at the lending table.
Raico also said he has never seen CEO Calk get involved in approving a loan. Raico described Calk as “very involved.”
With the new structure of the loan, Raico said income was a determining factor on whether or not it would go through. In this scenario, tax returns and P&Ls were required.
On October 20. 2016, bank president Javier Ubarri wrote Raico saying the bank would not proceed with the loan. However, Calk had called earlier approving the loan.
On October 28, 2016, Manafort signed the loan application with the boilerplate stipulation that providing false information was a federal crime. The loan closed on November 16, 2016, with Calk’s approval.
Manafort guilty on 8 counts; mistrial declared on 10 other charges
A federal jury in Virginia convicted Paul Manafort, President Donald Trump's former campaign chairman, on eight counts on Tuesday, but the judge declared a mistrial on the 10 other charges he faced.
Manafort was convicted on five counts of tax fraud, one count of failing to file reports of foreign bank and financial accounts and two counts of bank fraud. A mistrial was declared in three counts of failing to file reports of foreign bank and financial accounts, and seven counts of bank fraud and bank fraud conspiracy.
The trial was the first public test of special counsel Robert Mueller's investigation, and while the special counsel was vindicated, the victory wasn't total.
Jury sent back for further deliberations
The jury has been sent back for further deliberations by Judge Ellis at 11:55. He said, "You should not change your honest conviction soley for the purpose of other jurors or just to come to a verdict.
Judge Ellis implored them to come to consensus, and if they then could not,he would consider the necessity of a hung jury.
Jury to judge: What if we can't come to a consensus on one count?
Jury submits question to judge on Day 4 of deliberations
The jury began Day 4 of deliberations in the Manafort fraud trial at 9:37 a.m., and just before 11 a.m., the jury delivered a note to the judge, prompting a flurry of activity.
It was a question, not a verdict: What if we can't come to a consensus on one count?
Jury begins day 3 of deliberations
Judge Ellis brought the jury into the courtroom promptly at 9:30 a.m. Monday morning and called roll. Jurors were asked if they were able to stay away from news reports and other influences over the weekend, and they all answered that they had.
Deliberations resumed at 9:34 a.m.
Jury dismissed for weekend with no verdict yet reached
Judge Ellis dismissed the jury for the weekend and told them to reconvene at 9:30 a.m. Monday.
Jurors were dismissed at 4:55 p.m.
Jury note: We want to go home at 5 p.m.
The jury gave Judge Ellis a note to let him know that they'll finish deliberations for the day at 5 p.m, because one of the members of the jury has an event they'd like to attend tonight.
Court will reconvene at 4:50 p.m. After that, the jury will be asked what time they wish to report on Monday.
Judge says he has gotten threats, won't reveal juror names
District Court Judge T.S. Ellis, who is overseeing the bank and tax fraud trial of former Trump campaign chairman Paul Manafort, said Friday that he has received threats that necessitate U.S. marshal protection to and from the courthouse.
"I had no idea that this case would excite these emotions, I will tell you that frankly," Ellis told the court as the jury deliberated for a second day. The case is being tried in Alexandria, Virginia.
Ellis's admission came during an afternoon hearing brought by a coalition of media outlets, including NBC News, to unseal juror names and bench conference transcripts of conversations the judge had with the defense and the prosecution.
Jury resumes deliberations, judge grants hearing to unseal documents
The jury resumed deliberations at 9:37 a.m. on Friday after being empaneled by Judge T.S. Ellis.
Judge Ellis also responded to a request from media organizations to unseal certain documents. Ellis granted the request to intervene and will schedule a hearing to hear arguments "sometime after 2 p.m."
He reiterated that all sealings in the case will be unsealed after the trial is over. It would be disruptive to unseal certain documents during the trial, he said. Nevertheless, he will consider the request.
"I'm no stranger to criticism," Ellis said. "This case has brought it to a new level."
Jury asks 4 questions, including query about reasonable doubt
The note, delivered to Judge Ellis minutes ago, contains four questions from the jury. The judge heard argument from both sides as to the answers.
Court is now dismissed for the day, and the jury will resume deliberations at 9:30 a.m. Friday.
Here are the questions from the jury, and the answers the judge gave.
Question: Is one required to file an FBAR if they own less than 50% of the company and no signatory authority?
Answer: After suggestion from the prosecution, Judge Ellis reread Jury Instruction #53, which defined FBARs, and the details surrounding FBARS.
ELLIS: A person is an owner of record (Owner of FBAR) if a person is acting on behalf of a US person with access and control of the account, OR if a US person who owned more than 50% of company.
Q: Define "shelf company"?
A: Rely on collective recollection.
Q: Can you redefine reasonable doubt?
A: The government is not required to prove beyond "all possible doubt," just doubt that can be reasoned.
Q: Can the exhibit list be amended to include the indictment?
Jury deliberations begin
The jury of six men and six women will soon begin to decide the fate of Paul Manafort. Judge T.S. Ellis brought in the jury to call roll and laid out the ground rules for deliberation.
"You may deliberate as little or as much as you like," Judge Ellis said.
The jury requested to deliberate in their break room because the actual jury room is too small. Ellis talked about how he was involved in the layout of the courthouse when it was being built. "I didn't pay attention to the size of the jury rooms," Ellis said. "I certainly paid attention to the size of my quarters."
Ellis granted the request.
Ellis called for a five minute recess after dismissing the jury to deliberate. Ellis said that he has other matters during the day and asked if those parties were in the courtroom.
"Mr. Trump, are you here?" he asked the courtroom. The response in the crowd was a mix of laughter and shock. Manafort himself turned around to look at the crowd with a smile.
Jim Trump, an local attorney, stood up and said that his case was next on the docket.