Mueller’s ‘star witness’ returns for second day of testimony against Paul Manafort

All eyes are on Rick Gates Tuesday as the government’s star witness continues testifying against his former boss, Paul Manafort, in special counsel Robert Mueller’s federal tax trial against the former campaign chairman for President Donald Trump.

During the first part of his testimony on Monday, Gates admitted to shielding millions of dollars in over a dozen offshore accounts from United States tax collectors – all at Manafort’s direction, according to Gates.

Jose Luis Magana/AP, FILE

On trial in Alexandria, Virginia, Manafort is accused of evading taxes on $60 million earned in overseas lobbying and consulting work for a Russian-backed Ukrainian political party. Manafort has pleaded not guilty to all charges.

Follow along for updates.

2:30 PM – Special counsel wraps up questioning of Gates, on to cross-examination

After sitting through nearly six hours of questioning from the special counsel prosecutors, Rick Gates is on to cross-examination, where Manafort’s attorneys are expected to paint Gates as the true culprit behind their client’s alleged criminal activity.

During opening remarks last week, a defense attorney representing Manafort accused Gates of being “willing to say anything to save himself,” and insisted that Manafort’s only crime was “placing his trust in the wrong person,” referring to Gates.

1:30 PM – Manafort trial in recess after morning of Gates testimony

As court breaks for lunch, jurors have been told to expect more testimony this afternoon from Gates, who has spent the morning session outlining how he and Manafort dodged American tax collectors by using offshore bank accounts funded by a Ukrainian political party.

In an effort to “reduce his overall tax liability,” Gates further explained how Manafort ordered his bookkeepers to report some of his Ukrainian income as loans. Gates testified that Manafort ordered him to create fake loan agreements for loans “that didn’t exist.”

In 2014, as Manafort’s business clientele in Ukraine suffered the departure of former President Victor Yanukovych, Gates on Tuesday showed the court an email from Manafort lamenting a tax estimate, which read, “WTF… How could I be blindsided like this? This is a disaster.”

With prosecutors winding down their questioning, the defense should expect to cross-examine Gates within the next few hours.

11 AM – Gates describes how Manafort’s Ukrainian cash cow was put to pasture

When former Ukrainian President Viktor Yanukovych left office and fled to Russia in 2014, business dried up for Manafort – that’s when the former Trump campaign chairman turned to alleged fraud to bankroll his luxurious lifestyle, Rick Gates testified Tuesday.

As special counsel prosecutors peppered Gates with questions, the former deputy campaign manager for Donald Trump calmly explained how he created fraudulent invoices at Manafort’s direction.

“Paul Manafort didn’t provide original invoices most of the time,” Gates said Tuesday morning.

As his testimony wore on, Gates described in depth the process by which he, Manafort, and an accountant coordinated to move money in and out of their offshore accounts in order to hide income from U.S. authorities.

After he and the accountant prepared the bill amount, “Paul Manafort would then give verbal approval to the bank,” Gates said in court.

Dana Verkouteren via AP

10:15 AM – Gates lays out Manafort’s accounts in Cyprus

Addressing a packed courthouse in Alexandria, Virginia, Rick Gates began his Tuesday testimony by explaining the intricacies of setting up offshore accounts in Cyprus, where Manafort allegedly kept millions of dollars hidden away from the IRS.

Gates showed jurors contracts between Manafort and his Ukrainian patrons, illustrating how the Ukrainian businessmen wired money into Manafort’s accounts in Cyprus.

Gates, donning a dark blue suit and light blue tie, glanced briefly towards Manafort before turning back toward the attentive jury of 12.

ABC News’ Katherine Faulders and Allison Pecorin contributed to this report.