More on how the defense says Gates funded his 'secret life'
Exchanges between Gates and Downing got testy as the cross examination continued.
Gates testified that he created a consultancy agreement as an additional document the bank required to initiate a wire transfer. Downing asked him if it was “false and misleading.” “Yes it was,” Gates answered.
Downing asked Gates if he discussed this with the special counsel. “I don’t recall if we discussed it or not,” Gates said.
Downing made a point to call it a “fake and phony consultancy agreement” more than once.
The first page of the wire transfer request for $120,000 to Bade LLC for professional services. Bade is a company that Gates set up. He said “These were for expenses,” and admitted the money came from Global Endeavour.
“In this case it was Mr. Manafort’s money,” Gates said, adding, “It’s one of the accounts controlled by Mr. Manafort.”
“Are these payments for your secret life?” Downing prodded. Gates answered they weren’t.
“In essence, I was living beyond my means,” Gates said.
“It was a difficult time,” and said “I was living beyond what I should have…I regret it.”
“So this is for your secret life?” Downing repeated. Gates answered that it wasn’t secret since his wife knew.
Asked about the origins of the money, Gates said, “This is money taken from Mr. Manafort,” adding, “I already said.”
Downing, not letting up, said “Embezzled.” Gates wouldn’t use the same term, repeating that he’d taken money from Manafort.
“Why won’t you say embezzlement?” Downing asked Gates, who then answered, after the third time, “It was embezzled from Mr. Manafort.”