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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. (AP) — California's Department of Motor Vehicles improperly disclosed private information to seven other government agencies on more than 3,000 people involved in some type of investigation as suspects or witnesses, officials said Tuesday.The department was sending letters Tuesday to the 3,200 people after determining that they are not currently being investigated.The department improperly gave federal, state and county agencies what were supposed to be internal notes, such as whether drivers' Social Security numbers had been checked to see if they were valid or falsified or if the individual was ineligible for a Social Security number.It sent information on more than 3,000 of the individuals to district attorneys in just two of California's 58 counties, San Diego and Santa Clara.Information on fewer than 200 people went to the federal Department of Homeland Security, including six records for immigrants who were in the country illegally but applied for or received special immigrant licenses.Officials said it was unclear if they were used to investigate the drivers' immigration status or for some other purpose.The remainder went to the Internal Revenue Service, inspector generals for the Social Security Administration and U.S. Small Business Administration, and the California Department of Health Care Services.The information could have been used in criminal, tax or child support investigations, including for witnesses in those inquiries, officials said.It's the latest in series of missteps by the DMV, which last year came under fire for long wait times and for potentially botching about 23,000 voter registrations under the state's "motor voter" law, which lets residents automatically register to vote through the DMV.Department spokeswoman Anita Gore said the DMV stopped making the improper disclosures in August after officials decided that they shouldn't have been giving other agencies the internal notes.She said it took the DMV three months to send the letters because it had to ask each of the seven agencies why they wanted the information, review four available years of records, make sure the 3,200 drivers were not being investigated to avoid tipping them off, and then draft individual letters to each driver. 2278

Right now, thousands of people are without power on the Gulf Coast, and the relentless rains and remnants of what was Hurricane Sally is now soaking the Carolinas and moving northeast.In hard-hit Alabama, where the storm first struck land as a Category 2 Hurricane, debris-laced waters have taken over once-thriving neighborhoods. Swollen and rising rivers are now threatening bridges across Florida.At least two people have been killed since Sally made landfall."Citizens awoke to extensive damage and destructive property, loss of power and infrastructure and sadly even the loss of life," Alabama Gov. Kay Ivey said Thursday.One of those deaths occurred in Georgia, when Sally's heavy rains saturated the soil, triggering the collapse of a tree onto a home."Widespread river flooding is ongoing, and it could continue over the next week in different parts of Florida," Florida Gov. Ron DeSantis said Thursday.Thousands of homes and businesses on the Gulf Coast are still without power, 48 hours after Sally made landfall."Power though is a major, major initiative and a priority at this point," DeSantis said. "...they do have crews here working. They are going to be working 24/7 to get the power back on."Now, officials are keeping their eyes on new threats brewing. The National Hurricane Center is currently monitoring six storms in the Atlantic. One of those systems has already developed into a major hurricane, though it isn't expected to impact the U.S. However, Tropical Depression 22 is expected to strengthen into at least a Tropical Storm in the coming days before making landfall in Texas."There are seven systems out there right now," said Greg Michel, the executive director of Mississippi Emergency Management. "One of which the system in the bay of Campeche, we could be doing this again in a few days." 1831

SACRAMENTO, Calif. (AP) — The director of California's unemployment benefits department, Sharon Hilliard, said she will retire at the end of the year. The announcement Friday comes after the agency has been overwhelmed by more than 15 million claims during the coronavirus pandemic. The agency has a backlog of more than 900,000 people still waiting to receive benefits. Hilliard has said the backlog won't be cleared until the end of January. California Labor and Workforce Development Agency Secretary Julie A. Sue praised Hilliard for helping reset the agency's culture. Republican Assembly Jim Patterson urged the governor to appoint a replacement from outside the agency. 684

SACRAMENTO, Calif. (AP) — California utilities again are facing severe financial pressures from the possibility that their equipment sparked catastrophic wildfires, including two that are now burning at either end of the state.The pressure comes even though Gov. Jerry Brown signed legislation in September giving utilities some relief beginning next year.The law made it easier for utilities to pass along costs from fire-related damages to consumers and also avoid possible bankruptcy from a series of major fires that occurred during the 2017 fire season that produced more than billion in losses.But there was a gap in the law: No damages specific to 2018 were included, so utilities face a higher bar to bill customers to cover those costs. And this year already supplanted 2017 as the most destructive in California's recorded history.Authorities have not determined a cause for either of two major blazes burning now, but Pacific Gas & Electric Co. and Southern California Edison have reported irregularities with their equipment near the time and place where both ignited.A woman who owns land near the site where a deadly wildfire started in Northern California said Monday that Pacific Gas & Electric Co. sought access to her property just before the blaze started because the utility's power lines were causing sparks.PG&E shares have lost more than a third of their value since the Camp Fire broke out northeast of San Francisco, destroying thousands of homes and killing dozens of people as it leveled the town of Paradise.Moody's Investors Service said Monday that the "shortcomings" in the legislation reflect negatively on PG&E's credit rating, which is barely investment grade."Moody's negative outlook incorporates the view that additional financial stress for PG&E is likely," Moody's spokesman Joe Mielenhausen said in an email. "Going forward, we will look for signs of additional legislative and regulatory support for the utility as it works through various legal processes."Last week PG&E told state regulators that it detected a problem on an electrical transmission line near the site of the blaze minutes before the fire broke out. The utility later said it observed damage to a transmission tower on the line, and a PG&E spokeswoman said the company will cooperate with any investigations.Betsy Ann Cowley, a property owner near the site said PG&E sought access to the area before the fire started, telling her power lines were sparking.Southern California Edison told regulators there was an outage on an electrical circuit near the site where the Woolsey Fire started in Ventura County. It quickly spread into Malibu and destroyed hundreds of homes.SoCal Edison said the report was submitted out of an abundance of caution and there was no indication from fire officials that its equipment may have been involved. The report said the fire was reported around 2:24 p.m. Thursday, two minutes after the outage.Shares of parent company Edison International have tumbled more than 20 percent since the fire started.California is one of just two states that hold electric companies entirely liable for damage caused by their equipment, even if they followed all safety precautions. The new law makes it easier for them to pass some of those costs along to consumers.Utilities lobbied aggressively to eliminate that strict liability standard but lawmakers dropped the idea amid pressure from insurers, trial lawyers and fire victims.Instead, legislators passed a law making it easier for utilities to manage the costs without going bankrupt. They created two mechanisms for investor-owned utilities to shift the costs of wildfire lawsuits onto their customers— one process that begins in 2019, and another for the 2017 fires.For reasons that remain unclear, the law left the rules unchanged for 2018."The priority was on addressing 2017 victims and putting in place some fire-safety measures," said Paul Payne, a spokesman for Sen. Bill Dodd, a Napa Democrat and the bill's author. "The focus was on making 2017 victims whole."It's too soon to say whether the Legislature will take up another fight over the 2018 fires, Payne said.SoCal Edison officials say the Legislature needs to do more to shield utilities from wildfire-related liability."SCE believes the state can do more, including enacting fire-smart building codes, particularly in high fire risk areas, and ensuring the proper allocation of risk for the often-tragic consequences of wildfires," spokeswoman Justina Garcia wrote in an email.A PG&E spokesman, Paul Doherty, did not respond to questions about the legislation, saying "our entire company is focused on supporting first responders."Sen. Jerry Hill, a Redwood City Democrat and longtime critic of PG&E, called the report of troubles on PG&E's lines in the area extremely worrisome."At some point we have to say enough is enough and we have to ask: Should this company be allowed to do business in California?" Hill said. "These fires take a spark, and at least in the last few years fires have been caused by negligent behavior by PG&E. We need to see how we can hold them responsible, or look at alternative way of doing business."Hill said he was exploring legislative options to keep a closer check on PG&E, including the possibility of breaking up the utility."They are a monopoly and they act as a monopoly," Hill said. "That is a problem when the motive is profit, and that just may not be the right motive for providing utility services." 5560