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Rick Gates, the key prosecution witness in the tax and fraud trial of former Trump campaign chairman Paul Manafort, testified Monday he had committed crimes alongside and at the direction of his former partner -- and had also stolen from Manafort himself.In stunning testimony at Manafort's trial on tax and fraud charges, Gates stated he and Manafort had 15 foreign accounts they did not report to the federal government, and knew it was illegal. Gates said he did not submit the required forms "at Mr. Manafort's direction."Gates then admitted that he also turned the tables on Manafort -- cheating him out of "several hundred thousand" dollars by submitting false expense reports that were paid out of some of the undisclosed foreign bank accounts in Cyprus.The testimony from Gates, a former adviser to Donald Trump, comes after reaching a plea deal with special counsel Robert Mueller earlier this year to testify against his former partner in a lucrative international political consulting firm.Manafort stared directly at Gates as he read aloud the details of his plea agreement, which could see him receive a reduced sentence, at the direction of a prosecution lawyer.Gates did not make eye contact with Manafort as he took the stand wearing a yellow tie and navy blue suit.Prosecutors allege that Manafort financed a lavish lifestyle featuring sumptuous residences and extravagant wardrobes by using millions of dollars in profits that he hid from tax authorities then turned to bank fraud when his income started to dry up. Manafort has pleaded not guilty to all charges.  1595

SACRAMENTO, Calif. (KGTV) -- A billion-dollar plan to upgrade California’s water system would increase a ratepayer’s water bill upwards of a month.  However, the Metropolitan Water District and Department of Water Resources said the upgrade is necessary to update a 50-year-old system, improve water reliability, and protect the Sacramento-San Joaquin Delta environment.“It’s absolutely essential that we take care of this,” said Department of Water Resources Director Grant Davis. “This resource is akin to the heart and lungs of the state of California.”San Diego County gets roughly 30% of its water from the delta.  MWD officials said it’s still cheaper than desalination or purified recycled water.If approved by several state water agencies and organizations, California WaterFix would take years to complete.  The Metropolitan Water District, which sells the Delta water to the San Diego County Water Authority, will vote on WaterFix October 10th.  The Westlands Water District voted against the project Tuesday.  However, water officials were unclear what impact that would have on the overall project. 1150

SACRAMENTO, Calif. (AP) — California's governor on Friday threatened a possible takeover of the troubled utility blamed for sparking deadly wildfires across the state with its outdated equipment unless it can emerge from bankruptcy ahead of next year's wildfire season with a plan focused on safety.Gov. Gavin Newsom called all sides to a meeting early next week, saying he would personally try to mediate a solution involving Pacific Gas & Electric.But if an agreement can't be reached, Newsom said, "then the state will prepare itself as backup for a scenario where we do that job for them."PG&E has come under more scrutiny in recent weeks as it cut off power to millions of people to avoid a repeat of last year's deadly fire season.The shutoffs have angered residents, businesses and local governments, who say the company has done a poor job of communicating."This is not the new normal," Newsom said. "There are things that can be done immediately and will be done immediately."It's unclear how the state could take over PG&E in the event it does not meet the June 30th deadline. But the governor's office pointed to General Motors as an example. The automaker filed for bankruptcy in 2009, and the federal government purchased a controlling stake in the company. The government later sold its shares once the company was on solid footing."That kind of a move would give the state a lot of control over the strategic direction that PG&E takes without getting it into the nitty gritty of running the day to day," said Michael Wara, director of the Climate and Energy Policy Program at the Woods Institute for the Environment at Stanford University.Local governments, including San Francisco, have offered to purchase portions of PG&E's equipment for .5 billion so it could operate parts of the power system on its own. Asked if taxpayers would buy the company, Newsom said: "We're scoping all of that.""It's not writing a check," Newsom said. "This is not plan 'A,' but it is a plan. We would be irresponsible not to scope that plan. So we're not going to sit back and hope and hope an expectation that everything else works out."Pacific Gas & Electric filed for bankruptcy earlier this year after a 2018 wildfire mostly destroyed the town of Paradise and killed 85 people. An investigation revealed the fire was started by one of the company's powerlines that was knocked down during a windstorm.The utility is facing up to billion in damages from that fire and others.Shareholders and creditors have been battling for control of the utility in bankruptcy court, offering two competing plans for the company's future.A federal judge has expressed concern the two sides are not making progress, and last week appointed a mediator to try and resolve the case.In June, Newsom signed a law setting up a billion fund that could help utility companies pay out claims for future wildfires as climate change makes them more frequent and destructive.Utility companies would have to spend at least billion on safety improvements and meet new safety standards to participate. PG&E would have to be out of bankruptcy by June 30th to use the fund.Friday, Newsom called on PG&E executives, shareholders and creditors along with wildfire victims to meet with him. Newsom said he is confident the meeting will occur.However, representatives for the largest groups of bondholders and shareholders did not respond to a request for comment.PG&E spokesman James Noonan indicated the company would participate."We welcome the governor's and the state's engagement on these vital matters and share the same goal of fairly resolving the wildfire claims and exiting the Chapter 11 process as quickly as possible," he said. 3762

SACRAMENTO, Calif. (AP) — Insurance claims have topped billion for the November wildfires in California, making them the most expensive in state history.The figure released Wednesday by Insurance Commissioner Ricardo Lara covers the fire that destroyed the town of Paradise and two Southern California blazes.Most of the damages relate to the Paradise fire, which killed 85 people and destroyed nearly 19,000 buildings."While last year's tragic wildfires turned thousands of people's lives upside down, insurance is helping to rebuild and recover," Lara said in a news release during Wildfire Preparedness Week.California experienced some of its deadliest and most destructive wildfires in its history in 2017 and 2018. A series of sweeping fires in late 2017 had been the most expensive, with claims topping .8 billion.The increasing destruction is making it harder and more costly for people to obtain homeowners insurance.The insurance department has started collecting data on policy non-renewals to better assess patterns and locations where coverage is being dropped, Lara said earlier this year.When insurers decline to renew policies, state law requires them to notify customers about other options. The state has a pooled insurance plan of last result known as the "FAIR plan."California lawmakers are grappling this year with ways to address the cost and destruction of wildfires.Pacific Gas & Electric Corp., the state's largest utility, filed for bankruptcy in January, saying it could not afford potentially tens of billions of dollars in liability costs related to fires.State law makes utilities financially liable for damages from wildfires caused by their equipment, even if they aren't found to be negligent. 1745

SACRAMENTO, Calif. (AP) — The California Assembly voted Thursday to cap the interest lenders may charge on loans that can carry rates spiraling into the triple digits.Backed by civil rights groups, religious organizations and some trade associations, the proposed law would cap annual rates at around 38% for loans between ,500 and ,000.The bill comes as legislators across the country seek to reign in a storefront lending industry critics accuse of preying on low-income consumers in need of cash and trapping them under mounds of debt for years.But even as the bill advanced, some California lawmakers expressed concern that it will limit choices for consumers with bad credit or little access to banks and other financial products. And the lending industry, which wields significant influence in legislatures as well as in Washington, has launched an advertising campaign in California attacking the bill as it heads to the state Senate, where observers expect a tougher fight.Proponents of capping interest rates point to an explosion in high-interest consumer loans around the state over the last decade.The state already caps interest rates on consumer loans under ,500 but not for amounts over that threshold. In 2009, 8,468 loans for amounts between ,500 and ,000 came with interest rates over 100%, according to data from state regulators. Lenders now issue more than 350,000 loans each year with interest rates in the triple digits. A legislative analysis said at least one out of three borrowers is unable to pay their loans.But proposals to cap interest rates in recent years have faltered at California's Legislature. Several lawmakers still expressed concern about the latest proposal, suggesting it could drive lenders out of the market, pushing consumers with low incomes toward unregulated lenders or cutting off their easy access to capital."Without these alternative financial service providers, those folks would have nowhere else to go," said Democratic Assemblywoman Sydney Kamlager-Dove of Los Angeles.Assembly Speaker Anthony Rendon dismissed arguments the bill would ultimately harm low-income residents."Those are merely talking points of an industry that has repeatedly lied to members of this chamber," he said.Casting the bill as a moral issue, the Democrat said the legislation can be considered as important as any other lawmakers will vote on this year in the country's most populous state.The bill ended up passing with bipartisan support as one Republican legislator cited religious prohibitions on usury."I'm a free-market capitalist and I'm unashamed of it but we need to stand up and protect people who are being preyed upon," said Assemblyman Jordan Cunningham of San Luis Obispo.The support of the financial industry this year, too, may also signal that the sector foresees a reckoning in the state or at least further political uncertainty if lawmakers do not approve limits for loans between ,500 and ,000.The California Supreme Court cast a legal question mark last year over the lending industry's practices, deciding in one class action lawsuit that some interest rates can be so high as to be deemed unconscionable under financial laws.Democratic Assemblywoman Monique Limon of Santa Barbara, the bill's author, also suggested that an interest rate cap could end up on the ballot if the Legislature does not act.If passed, California would join 38 states and the District of Columbia in capping interest rates for these types of loans, according to a legislative analysis. The level proposed in California would be on the higher end.Observers expect a bigger political fight when the bill heads to the state Senate, however.Opponents of the bill have launched an advertising campaign aimed at stopping it.The trade group Online Lenders Alliance has bought ads on Sacramento television stations, according to Federal Communication Commission filings.A group calling itself Don't Lock Me Out California has also bought online ads attacking the bill. 4018