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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

RICHMOND, Indiana — An emergency call credited with foiling the shooting at a Richmond middle school on Thursday was made by the teenage suspect's mother, according to multiple sources with knowledge of the investigation.The call was made at 8:11 a.m. local time by the mother, according to information obtained from Wayne County's Emergency Communications Division.Sources tell WRTV television station in Indianapolis the mother called after the teenage boy had taken another family member hostage and forced them to drive to Dennis Intermediate School, just a little more than a mile from their home.Once the boy was at the school, he entered the building through a side door and eventually exchanged gunfire with responding officers, before turning the gun on himself, according to the sources.WRTV did request a recording of the call made to Wayne County's Emergency Communications Division, but the call is not being released due to the investigation.The advance call gave the school valuable minutes to lock down the middle school and allow police to quickly respond to the school, sources said. 1119

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) — The chair of the California Democratic Party took a leave of absence Monday amid an investigation into sexual misconduct allegations against him.Eric Bauman's leave will last until an outside investigation ends, party spokesman Mike Roth said."Chair Bauman believes this decision is the best way to ensure the independence and integrity of the process," Roth said in a statement. "The Party is confident that the procedures in place will allow for all parties to come forward freely and provide for a thorough and complete review."A party vice chair accused Bauman last week of sexually harassing and assaulting several unnamed people at party functions and called for Bauman's resignation. Others including California U.S. Rep. Ro Khanna and the Orange County Young Democrats called for Bauman to step aside.Daraka Larimore-Hall, the vice chair, spoke to two accusers and a witness, the Sacramento Bee newspaper reported.Bauman announced an outside investigation on Saturday."I take seriously any allegation brought forward by anyone who believes they have been caused pain," Bauman said in a statement. "I look forward to putting these allegations behind us and moving forward as unified Democrats."The party's executive board could vote to remove Bauman from office. But Larimore-Hall's call for Bauman's removal is still several steps from such a vote.In a letter to the party last week, Larimore-Hall said stories from Bauman's accusers illustrate a "clear and escalating pattern" of inappropriate behavior.Larimore-Hall did not respond to a request for comment Monday from The Associated Press.Bauman's leave comes just weeks after California Democrats made major gains in the midterm elections, winning key congressional seats in territory long held by Republicans.A series of sexual misconduct allegations against lawmakers, lobbyists and others in politics rocked California's political world late last year, at the height of the #MeToo movement. Three Democratic men resigned as state lawmakers after investigators hired by the Legislature found they likely engaged in inappropriate behavior.Bauman narrowly won the party chairmanship last year against Kimberly Ellis after a contentious battle between establishment Democrats and progressive activists.During that fight, Bauman said he was falsely targeted by rumors he engaged in inappropriate behavior with teenage boys. Bauman is the party's first openly gay chairman.Bauman called the rumors "despicable lies," and Ellis denounced them.First Vice Chair Alex Rooker will take over Bauman's duties while the investigation proceeds. 2628

SACRAMENTO, Calif. (AP) — California's leaders are getting a raise.A state commission voted Friday to increase Governor Gavin Newsom's salary from 2,000 to around 0,000 in December.The Citizens Compensation Commission also agreed to give a 4% raise to legislators and other state elected officials, such as the lieutenant governor and treasurer.Chairman Tom Dalzell cited the health of the state's economy and California's budget surplus for the move."California remains high," he said of pay for state officials. "So is our cost of living."Newsom will not be the highest-paid governor, however. While America's most populous state currently has the highest-earning chief executive, the New York Legislature voted this year to pay Gov. Andrew Cuomo a salary of 5,000 in 2020 and 0,000 in 2021.But the governor will still earn far more than California's median income, which is around ,000, according to the U.S. Census Bureau.This will mark the seventh year in a row California's governor has gotten a raise and Newsom's pay will near a previous peak for the job of around 2,000.Rank-and-file members of the 120-seat Legislature earn around 0,000, still below a past peak of around 6,000. The lieutenant governor is paid around 1,000, the attorney general around 5,000 and the controller and treasurer around 1,000.Created in 1990 following a statewide vote, the commission is appointed by the governor and usually meets once a year to set the salaries as well as benefits for California's elected officers. The Legislature was previously responsible for setting the salaries of state elected officials. 1644

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