When asked whether he was involved in criminal acts with Manafort or breached the law, Gates who was the defendant's longtime business partner said, "Yes," NBC News reported.
Manafort is on trial on charges of bank and tax fraud. Prosecutorsare focusing on his luxurious lifestyle as a result of the money he earned in Ukraine while avoiding to pay taxes.
During the testimony, Manafort's former business partner said that Manafort directed him to report overseas income as loans to lower his taxable income, Reuters reported. Gates also testified that he stole hundreds of thousands of dollars from Manafort by filing false expense reports.
READ MORE: US Court Rejects Manafort Request for Release Before Trial Begins in DC
Richard Gates is considered one of the key witnesses in Manafort's case. He earlier pleaded guilty to charges of conspiracy and lying to the FBI and agreed to cooperate with investigators.