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Testimony: Federal Savings Bank took a hit for Manafort's loans

When Richard Westling resumed his cross examination, he asked Brennan about the process of approving the loan for 377 Union Street in Brooklyn.

The defense showed the credit memorandum Brennan wrote for the loan, which he would do at the last stage for all loans. He provided a risk rating of 4 — which is considered “average.” Over a 4 rating, a risk is considered troubled and is not approved.

Brennan said later in Greg Andres' redirect that he didn’t think the loan should be rated a 4, but that the loan should not be made. However, since the loan was already  approved, he had to provide at least a 4 rating as higher ratings are not approved.

Brennan said he had collected information on Manafort as part of the process and identified two key credit risk issues  his past work for foreign governments provided an unknown risk to the bank, and his New York properties potentially losing value if the housing market crashed.

Throughout his cross, and re-cross, Westling sought to sow doubt in the bank’s proficiency and blame them for the errors on Manafort’s applications. He asked Brennan about an issue with the Bridgehampton loan that incorrectly computed Manafort’s income, an error that made it look larger. Westling also pointed out that some at the bank were aware that Manafort’s initial Union Street loan was in default.

Westling also asked Brennan about the information inputted on the 1003 form, or the loan application, implying someone other than Manafort might have provided the incorrect information, rather than Manafort himself.

He also asked if P&L sheets can be provided by others, including accountants, bookkeepers or business associates. Brennan said they could be.

After, Andres asked Brennan if Federal Savings Bank made money off the Manafort loans. Brennan answered that the bank took a hit and wrote off the loans. He said the bank is still owed $11.8 million, but he didn’t specify how to account for the discrepancy from $16 million.

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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.

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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.

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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?

A: No.