Judge tonight is calling the Trump Administration reunification efforts unacceptable. When all in starts right now. Good evening from new york, im chris hayes. At the close of the first week of Paul Manaforts trial, things do not look good for the former Campaign Chairman of the trump campaign. And today in particular, the testimony about manaforts alleged tax evasion and bank fraud took on a Very Human Dimension when his accountant admitted under oath on the stand that she had in fact knowingly falsified Tax Documents in order to save Manafort Hundreds Of Thousands of dollars in taxes. Manaforts accountant, Cindy La Porta testifying i knew it was wrong, i could have refused but that would expose the Accounting Firm to the risk of litigation or i could have called longtime clients liars. I very much regret it. This is the first of two trials of Paul Manafort being brought by special counsel robert
wire transfers to prove that Paul Manafort was hiding millions of dollars of income from the irs, tax evasion. Heres the thing. It got worse for manafort. After the testimony of his bookkeeper, his tax preparer, now his accountant, and today jurors as well as manafort himself were shown one by one the tax returns from the years 2010 through 2015 in Which Manafort had again and again checked no on the very direct and explicit question about whether he had any Foreign Bank Accounts. Paul manaforts wife, kathleen, wiped her eyes with a tissue and walked out of the courtroom for a moment when manaforts cpa said she had no knowledge of more than a dozen foreign entities that we now know to be owned by manafort. For more on todays dramatic testimony, im joined by two reporters who were inside the courtroom today. Nbc News National security and justice reporter Julia Ainsley and tierney sneed. Chris Hayes discusses the days top news. Chris Hayes discusses the days top news. Important for this reason. Part of the reason i think of the defense to the extent theres been one has been like whatever is being done, he didnt know about maybe was all a mistake. Oh, i didnt know that you had to check the box that says you have a foreign bank account. Laporta is up there saying i knew what they were doing, they knew what they were doing. They were committing crimes. Yeah. Well, laporta was able to take us through the time period where you see Paul Manafort really be in a financial crunch and need more loans to keep up his lavish lifestyle. So what we saw through her testimony are these Accounting Tricks and allegedly fraudulent Accounting Tricks that they used to convince banks to give them more money and Paul Manafort was cced on these emails, he was instructing gates sending doctored financial documents so they could secure these loans. As i read testimony in the case and as i page through some
report them on his income taxes. He failed to disclose these Foreign Bank Accounts. Today we saw evidence of bank fraud. In fact so well that it makes me wonder whether theyll have to call rick gates to testify as the cooperator. As weve discussed before, paper cases are a lot safer. You dont have to worry about a witness going south. Will he or wont he testify i think still remains a little bit of a question because the evidence is coming in so well for the prosecution. I totally agree. The defense that the defense put on in their opening, its just falling apart. They have not been able to substantiate that this was all rick gates fault. In fact the evidence is just the opposite. They have it in emails, both manafort and gates are cced on everything. Theyre both in Conference Calls with the tax preparers. I mean in fact i think there was an email in evidence today if im not mistaken, in which the tax preparer says to manafort, hey, do you have any Foreign Bank Accounts . And he writes back in all caps,
no. You cant get any clearer than this. So whatever theory the defense had of this case, it has really gone down the toilet today. It is not there. He is absolutely gone on this case. And i agree with barbara. As i said the other night, i just dont think theyre going to be calling on rick gates. Theres no reason to at this point. I mean even on the issue of conspiracy, that the judge spoke to the prosecutors about, they have got them conspiring on emails. They have got them conspiring on phone calls with the accountants. There was a sidebar, barbara, that was interesting because it reminded me of a kind of defense that Rudy Giuliani has used for the president , which is when talking about the president s possible obstruction of justice, he says, well, it cant be on struck, hes doing it in broad daylight. Hes saying it on camera. Thats not how you do obstruction. Theres an analogous argument made by mr. Downing, the lawyer for manafort today. He says in a sidebar, therefore, only a fool would give that kind
of information to his accountant if he was trying to conceal that information from the irs. So the court says so he now wants to provide evidence for the jury that says look, there is a trail in these documents that could lead to the truth in that. That seems like a pretty flimsy argument. I agree with you. The person sitting next to me said, wow, if thats the best argument youve got, hes in big trouble. The facts were that Paul Manafort had disclosed to his accountant the names of some of these entities that he controlled, but he told them that they were clients, not that they were his own entities. So its about three steps removed that hes disclosing this and doing this crime in broad daylight. So if that is the best argument that they have, i agree with this spectator that they are in some trouble. It does seem to remember, this is a mueller prosecution. Weve got all of that lurking in the background. This is adjacent to the case, it doesnt have to do with the trump campaign, doesnt have to do with collusion, thats been
very clear both in terms of what the court will allow and what the case is being tried on. But you cant but look at it and say this guy was so desperate. Hes so desperate theres even an email in there where he is basically trying to squeeze his daughter over Furniture Purchases for a shared piece of property they have. Thats how squeezed the guy is, right . He writes a stern email. Hey, weve got this shared property, ive got to see those receipts for that furniture. That same dude during this period goes and works for free on the trump campaign. Nothing is for free, lets start with that premise. What he was doing was also trying to ingratiate himself with various oligarchs. Deripaska was one in particular. He was willing to provide updates on the campaign as it went along. That was one of the people providing him with all that money during that time period. Remember, the email let me just read that. When he gets the job he goes to
const cont conconstantine clim neck and says how do we use my job to get whole. Have they seen that i have this job . Thats what he was using this for, to try to get back into that russian money, the exact same thing. There was a motive to his madness here. Barbara, what is your sense about the arc of this . This trial, the judge has been cracking the whip, the testimony has gone very quickly. I think the prosecution has made this case quite quickly. They have moved through the witnesses pretty quickly. Crosses have not been particularly long. What do you see for next week . Maybe we will or maybe we wont see rick gates. I also think they are teeing up a summary witness for many of the witnesses who have testified, the prosecutors have put in front of them a chart that has not been published to the jury but they have just been asked have you verified the accuracy of the numbers in the chart. I think what were going to get is an fbi agent or irs agent to sort of make it Crystal Clear to the jury what these numbers
mean, what numbers were going in, what was going out. So i think we are likely to see that coming out next week. Someone to sort of tabulate it all and basically be like, look, im the one who made the case. Heres the evidence youve seen and heres what we were able to make out of it . Yeah, i think so. Just to make sure that the jury draws the appropriate conclusions. They have heard all the raw evidence, but it can be difficult to keep up. Theyre long days, its tedious. Some of these witnesses are testifying about lengthy testimony about tax returns, line 17, line 22. And so i can imagine having a summary witness in the form of an fbi or irs agent who kind of pulls together the relevant numbers that they have already heard about but puts it into context. Ive been getting my daily update from you guys and im wrapped. Thank you both. Next, why a woman known as Manhattan Madam spoke with special counsel Robert Muellers team. Well tell you that story in two minutes. To find my dream abode. Right away, i could tell
his priorities were a little unorthodox. Keep going. Stop. A little bit down. Stop. Back up again. Is this adequate sunlight for a Komodo Dragon . Yeah. Sure, i want that discount on Car Insurance just for owning a home, but im not compromising. Youre taking a shower . Water pressures crucial, scott its like they say location, location, koi pond. They dont say that. Its like they say location, location, koi pond. We cantwhy . Y here flat toilet paper ill never get clean way ahead of you. Charmin ultra strong. It cleans better. Its four times stronger and you can use less. Enjoy the go with charmin. Once upon a time in new york city in the tabloids, at least, there was no bigger story than the Manhattan Madam scandal. The madam was Kristin Davis and before she was arrested in 2008, she ran a highend Escort Service that provided sex workers for rich and famous businessmen, athletes and at least one politician, the former governor of new york, eliot spitzer. Wednesday Kristin Davis met with the team of special counsel Robert Mueller. See, davis is apparently good friend of Trump Confidant Roger Stone who was her Campaign Strategist when she ran, very unsuccessful unsuccessfully, for new york governor back in 2010. The key difference between the mta and my former Escort Agency is that i operated one set of books and my former agency delivered on time and reliable service. Thats a good line. Now, roger stone has recently been making super, super weird instagram posts about davis,
like the ones you see there with her child, and he says, quote, why do fbi agents dispatched by Robert Mueller keep asking my friends if i am the father of this baby, and what does that have to do with Russian Collusion in the 2016 election, fol followed by a lot of hilarious hash tags. Today he says Kristin Davis is a long time friend and associate of mine. I am the godfather of her 2yearold son. She knows nothing about the alleged Russian Collusion, wikileaks collaboration or any other impropriety related to the 2016 election which i thought was the subject of this probe. Joining me now is michael isikoff. What is going on . Good question, chris. Look, i can, first of all, attest that Kristin Davis was very close to roger stone at the crucial period that Robert Mueller is looking at. I interviewed i remember interviewing roger stone at the offices of yahoo in new york in the closing weeks of the campaign and Kristin Davis showed up with him handling
logistics, side by side and then they left together. So, you know, clearly whats interesting here to me is that mueller obviously stone obviously remains very clearly a subject of muellers investigation. Mueller has farmed out other aspects that hes come across, such as Michael Cohens taxi stuff and the election the illegal election money to the Southern District of new york. He hasnt done that with roger stone. When that indictment came out a couple of weeks ago about the hacking of the dnc, there was an explicit reference to stone. Not by name but there was no question it was stone he was talking about as somebody who was in regular touch with donald trump during the 2016 campaign and was in communication with guccifer 2. 0, the russian
military intelligence persona. So most likely this relates to information that she may have about who stone was in communication with. Right. And how he was communicating during that crucial time in september and october. Yeah. I mean that part of it to me the only way to make sense of her talking to mueller is if shes talking about stone. Maybe theres something that we dont know, right and stone having something to do with Stones Communications in 2016 in the closing months of the campaign. Which again is part of andrew miller, who is an associating of stone who just was ordered to testify after losing a lawsuit against the constitutionality of the entire mueller operation. It just seems very clear that we dont know whats going to happen, but to your point hes farmed other stuff out, stone seems like hes sitting right there in the tractor beam of the mueller investigation. Yeah. Look, all the signs are that
mueller is closing in on stone. I think if were going to see a case, i think its extremely likely we could be seeing it in the next few weeks. The expectation is mueller is not going to do anything after labor day. He doesnt want to be accused of bringing cases in the course of the election. So, you know, this may drag out until post election, but i would think given the pace of activity that its reasonable to think that we could be seeing something very soon. One other thing worth mentioning, yes, weve all been focused on those communications that stone appeared to have or his advance knowledge, appeared to have about what wikileaks was going to be releasinreleasing, podestas time in the barrel, theres going to be an october surprise. There was the podesta emails. Stone also was running this operation he called stop the steel, which was kind of an Election Poll watching event
that was clearly designed to intimidate voters or suppress africanamerican participation in the election. You know, there may be questions about the funding of that that mueller is interested in and that Kristin Davis could provide some answers for. I didnt realize, the broll was running before and you were testimony to this, the closeness of them and these are two people hanging out all the time. It all makes a bit more sense in the context of that. What doesnt make sense are the bizarre instagram posts of roger stone, which maybe theyre asking about the child, but its just weird. Those are weird. Theres a lot of things that roger stone has been doing of late that is weird. He seems to be somewhat unhinged. Ive seen some of the texts hes sending to various people caught up in this investigation and they are quite intemperate and provocative. So i think stone is clearly feeling the heat. Michael isikoff, thank you so much for being here. Any time. Next, remarkable new reporting from the Washington Post that shows the president s New York Hotel reaping Windfall Profits from the saudi royal family. Ill talk to the reporter who broke the story after this. Hair and scalp and keeps you flake free. Manolo . Look at my soft hair. I should be in the shot now too. Try head and shoulders two in one. At the Marine Mammal center, the environment is everything. We want to do our very best for each and every animal, and we want to operate a sustainable facility. And pg e has been a partner helping us to achieve that. Weve helped the Marine Mammal center go solar, install electric vehicle charging stations, and become more energy efficient. Pg e has allowed us to be the most Sustainable Organization we can be. Any time you help a customer, its a really good feeling. Its especially so when its a customer thats doing such good and important work for the environment. Together, were building a better california. Hypothetically, just spit balling here, if you wanted to bribe the current president of the United States, i think the simplest, cleanest way to do so would be just to throw money at his businesses. So just think that of a second. Now, a story today, pretty remarkable report from the Washington Post, it looked as if the Trump International hotel here in manhattan was all set to take a loss in the First Quarter of this year. In fact trump hotels in blue areas of the country have been
struggling. Then came a lastminute visit to new york but none other than the crown prince of saudi arabia. This information comes from a previously unreported letter from the hotels General Manager obtained by the post. Heres the most telling part. The crown prince didnt even stay at trumps hotel, but according to the General Manager due to our close industry relationships, he wrote in his letter, we were able to accommodate many of the accompanying travelers. So in short the head of a foreign state has his entire group stay in a hotel he doesnt stay in that just happens to be a trump property that indirectly lines the president s pockets. Such transactions have fueled lawsuits accusing the president of reaping revenue from foreign governments in violation of an explicit constitutional prohibition of the practice. To talk more about whether this is explicitly unconstitutional and what we know, im joined by the coauthor of the piece, reporter jonathan oconnell, and zefer, a former law professor. Jonathan, what information do we have about what happened here . Well, we know the saudi prince came to new york on a very publicized visit to america in march. We know that some members of the people traveling with him stayed at the trump hotel instead of the plaza hotel where the prince was staying. And we know that that stay was lucrative enough for the trump hotel that their revenue went up by 13 for that quarter instead of dropping as it had done in the previous two years. Just to be clear here, this letter they dont have shareholders, right, its a family owned business. The letter is a kind of like an Earnings Call that you would do if you did have shareholders. So hes saying when you want to look at what kind of quarter we did, we had this big boost because the saudis rolled through and spent a lot of money basically. Right. The specifics here are that the hotel is managed and branded by president trumps company, which he still benefits from financially. The units in the hotel are mostly owned by independent investors. So every so often they get a
report from the General Manager about how leasing is going and how the hotel is performing. Right. So this was that letter to them. You have been very vocal about this stuff. Is this constitutional . No. Its blatantly unconstitutional. On its face, the constitution prohibits taking emoluments, profits, advantages from foreign states. By the way, the constitution even mentions princes, that federal officers cannot take something of value from a prince or a foreign state. And the reason for this is really obvious. We cannot have federal officers, and especially the president of the United States, who is getting cash in his pocket from foreign governments while we are making critical, critical Foreign Policy decisions about trade and diplomacy. And War And Peace in the middle east and whether were going to let the saudis stwat
tod invade qatar. Jonathan, one of the things is just how much we dont know. Lets say i wanted to bribe the president and i was a qatari emir. You could get 40 rooms in a trump hotel for two weeks. My question to you is would we know if someone was doing that . Thats an interesting question. The president s company donated 150,000 to the treasury at the end of 2017 which they said was the profits from the Major Business at their hotel company. We dont know anything more than that. We dont know who the people spending that money are, other than a few published reports about major stays at mostly the trump d. C. Hotel. We dont know how much each of them spent. We dont know who exactly stayed there. So there is really quite a bit that we dont know. Actually we may learn more about the business at the trump hotel in d. C. Because of this lawsuit that the attorneys general in d. C. And maryland have already filed and which is now proceeding. What do you think of the lawsuit, zephr . Its an incredible and essential lawsuit. But of course the new York Attorney general, and new york should be in that lawsuit so we can learn what is happening in new york with new york businesses. The other story from the Trump International hotel that we dont know, the other stories about foreign money going through trumps businesses that we dont know. And actually a week after donald trump was elected, even before he took office, i sounded the alarm and said, look, it looks like donald trump is set to violate this essential clause of the constitution, worked with an incredible legal team and three days after Donald Trump Took Office we filed the first emoluments lawsuit. But the new York Attorney general needs to be a part of this because we know theres unconstitutional behavior, but only from public reports. We dont have the tax returns. We dont know all the financial flows. But we do have now, jonathan, that that this is sort of
somewhat uncharted constitutional territory. Absolutely. And what did happen for a lot of reasons we havent had a person like this be president of the United States before, but the federal judge, at least at the district level, said yeah, youve got standing and this is a real case that can go forward. Right. And i think the particularly tough news for the Trump Organization out of that court case is that the judgeemolument compared to what the Department Of Justice wanted, the way they defined it. Even payments made to the president s company at a market rate for a service that they are paying, you know, a market rate for could be defined as emoluments under the judges definition and the judge has been fairly clear if you look at what he said about the case so far that a competitor in new york, that another state may have standing if there is a hotel or a business in their jurisdiction or area conducting this type of business. Zephyr, youre nodding your
head to the competitor point. I was nodding my head to the whole thing. The only thing i would frame slightly differently is Donald Trumps lawyers had a radical and cramped and bizarre definition of emoluments which basically said its only an emolument if its a bribe. If its an exchange for some president ial action. So the judge defined emoluments in a way that i and others have been pushing for 20 months but its the common sense way to understand it. This prohibition is against money coming in from foreign governments. You dont have to prove that theres some kind of quid pro q quo. Thank you both. Still to come, the ongoing horror of the trump Family Separation scandal. Why a judge today, a federal judge, slammed the Trump Administration for suggesting that somebody else take over the work of reuniting families. And next, what even is Great Britain anyways . Thats tonights thing 1, thing 2, right after this. Is frank. Sup this is franks favorite record. This is franks dog. And this is franks record shop. Frank knowns northern soul, but how to set up a limited liability company. Whats that mean . Not so much. So he turned to his friends at legalzoom. Yup they hooked me up. We helped with his llc, contracts, and some other stuff thats part of running a business. So frank can focus on the beat. You hear that . This is franks record shop. And this is where life meets legal. You wouldnt accept an incomplete job from any one else. Why accept it from your Allergy Pills . Flonase sensimist relieves your worst symptoms, including nasal congestion, which most pills dont. It helps block six key inflammatory substances. Most pills block one. Flonase sensimist. Im ray and i quit smoking with chantix. I tried cold turkey, i tried the patch. They didnt work for me. I didnt think anything was going to work for me until i tried chantix. Chantix, along with support, helps you quit smoking. Chantix reduced my urge to smoke. I needed that to quit. When you try to quit smoking,
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journal, i mean you dont hear the word britain anymore. Its very interesting. Its like, nope. Last month he told piers morgan. You can say england, you can say uk, you can say united kingdom, so many different you know, you have so many different names. Great britain. I always say, which one do you prefer . Last month he told the sun he prefers england. You dont hear england as much as you should. I miss the name england. You understand that . I miss the name england. Ike england is a beautiful name and you dont hear it very much anymore. Thats so true, you just dont hear england anymore. Last night trump was in wilkesbarre, pennsylvania, and he brought up the uk again. I have Great Respect for the uk, united kingdom, Great Respect. People call it britain, they call it Great Britain, they call it they used to call it england, different parts. But the uk, Great Respect. Great respect. Hey, what can you ask for . Nobody elected this man to get
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months. Lee found out back in june when he traveled to arizona and talked to the florence project, a group that provides Free Legal Services to detain democrats. Its very empty. Its very isolating. Physically and emotionally. The Detention Centers are placed out there for a reason. It is very intentional. Annabelle drives this Dusty Highway Four Times a week. 70 miles into the Arizona Desert to the infamous detention center. A jail run by a private prison corporation. Now it houses undocumented immigrants. 15 of them have died in as many years due to suicide or inadequate medical care. What is the toughest part about making this trip . The toughest part. Not being able to help them in the way they want you to help them. Annabelle works with the florence project. They call themselves first
responders and some separated from their children by the u. S. Government. Many dont know their rights. They often dont have money for an attorney and speak english. Annabelle is here to try to help them. Was this a good day or not so good day . I dont think it was a good day personally. Just from the conversations and the reactions that i had and the tears that i had. I definitely think i would need to decompress a little bit and see how i could help further. These parents were in tears. Yes. They were in tears. There are more than 3,000 undocumented immigrants imprisoned in arizona on any given day. And the florence project is the only nonprofit providing to them. What were seeing right now is completely unprecedented in terms of the Family Separation. Reporter laura st. John is the florence project legal director. A 2yearold cant tell you their mother or fathers name. Its just mommy and daddy. A 2yearold cant tell you, how does mom spell that name and then we have to be able to track this person down and identify them and its extremely difficult. Is there any Legal Recourse for those Family Members who had their kids ripped away from them . There is no immigration defender. If youre being deported, you might have the right to have an attorney, but only if you can pay for one. That means in the facilities that we work in, approximately 86 of the people will go throughout the process without an attorney. They are going against the trained lawyers and the court system that operates differently than the American Criminal Court system, right . Overall, the system is extremely difficult for people and there are a lot of people who have potentially valid claims who simply for lack of a lawyer, are not able to explain themselves well enough to be able to prevail on those claims. Not only are they worried about themselves and their case but also worried about what will happen in the case of their children. Annabelle is the first Point Of Contact for many of the 7,500 immigrants the florence project helps each year. She is their lifeline. What is going through their mind . Separated from their child. One phone call. What are they thinking . You know, one of the clients said, you know, this isnt justice. But this is how it is. Latest Government Numbers on separated families 572 immigrant children remain in governments custody across the country. Not been reunited. With legal aclu immigrant rights project. I have to say when you look at that project. Florence is not as big as the aclu. Even the aclu, is it as crazy as it seems to me for the federal government, who separated the kids, to turn around and go to a federal court and say we think the aclu should put everyone back together. It was a stunning by the government. You go do it and you find parent and tell us where you find them. We have a lot of support, but we have no where near the support the u. S. Government has and the government, worse, is sitting on information to help us and they havent given it to us. They have Phone Numbers of parents and we have addresses and sometimes a city with 700,000 people. That was the address they gave us. Theyre telling us to get us the Phone Numbers, they need eight more days. I mean, thats terrible. Im confused here. We have 2,500. Around 2,500. The vast majority have been reunited, right . A documented fact. That has happened. And were thrilled about that. 1,700, 1,800 in that ballpark. And now were down to 500, but those 500, as the judge said, are critical. Were talking about them being orphaned if we dont find these parents. Right now we have 2,000 reunited and 500 left. The vast majority of my understanding of that class of kids who, again, theyre waking up every day in some detention
facility and foster care facility and Child Detention Center facility. Vast majority of parent have been deported. Exactly. The government is saying, look, theyre in honduras somewhere. Theyre telling us, yeah, theyre telling us what country theyre in and yesterday they gave us addresses for some of them but theyre barely usable and we said, you know, what about the Phone Numbers. We said, oh, we didnt realize you wanted the Phone Numbers. Well get you Phone Numbers in ten days. Why not go through the 400 files and find the Phone Numbers in one weekend. We offered to send our paralegals down there and in one day theyll get those 400 files. What did the judge think about the governments idea that you put everybody back together . The judge was Crystal Clear. The government separated these children. These children are in real harm. Its the governments responsibility and he said i want a point person for the government and i want that person to submit a plan. Right now i thought i was getting a plan from the
government, ive got nothing. Theres also real concern about the conditions these kids are in. We had a number of reports, pro public reporting about southwest key, one of the biggest contractors. Its a nonprofit, but it has hundreds of millions of government contracts. Arizona central yesterday another employee arrested for sex abuse at a Shelter Court documents show. I believe that is the third, if im not mistaken, from that particular employer. Are you concerned about that . Weve been concerned about conditions and facilities housing children for a long time. Thats exactly why you wouldnt want to put more children there. Reunite them maybe well detain a bunch of them. You dont need to detain families. A mother with a 2yearold. Plenty of ways to ensure supervision. The Trump Administration got rid of a way that was 98 effective that the Obama Administration created at the end. They released a lot of people and there are still a lot of people detained and those people
need representation immediately. Theyre in danger of being deported. Play out the logic. The 400 children in u. S. Custody being cared for by the u. S. Taxpayer, first of all. Right . I mean, what is the governments plan here . If the governments plan is, well, we deported the parents and not reuniting them, what are you going to do for the kids . Are you going to raise them until theyre 18. Whats the deal . Youre exactly right. I mean, from the governments Self Interest they ought to be finding these parents. Thats less energy and less taxpayer money than trying to find a place for these children. I mean, otherwise, were just stuck with these children and the parents and the children want to be together. Youve done incredible work on this. Thank you for taking time on this friday night. That is all in for this evening. The Rachel Maddow show starts