Chris Hayes discusses the day's top news. allegations in the u.s. so we talked about this sort of circumventing the american tax system. overseas payments and overseas bank accounts and never reported which is what is alleged. what is the bank fraud part of the case. >> it is the prosecutors allege that after 2014, when the spigot of cash was turned off, he needed to fund his lavish lifestyle. what he had was real estate holdings that he purchased through the bogus loans. what he did, was he began overstating the value of these property. faking a profit and loss statement for his company. showing cash that he didn't have for bankers including while he was chairman of the campaign. they call it bank c and that is the kind of fraud that they are alleging. prosecutors are going to show that in fact it was false. >> zoe, tad davine was there. he was a partner with manafort in his work in ukraine, what did he have to say? >> so tad talked about being brought in starting in 2005 to head media strategy for the pro russia ukraine political party, the party of regions that manafort worked for. davine talked about emails he exchanged with manafort detailing the extent of his work, the contract that he signed. and some of this evidence was evidence that manafort asked the judge to keep out of the trial, argued that getting too much into yanukovych might prejudice the jury. there is no agreement between the parties about how manafort made his money. how much money he made, where it came from. so this was relevant. and davine's testimony illustrated what appeared to be central tension. exactly how hands on manafort was in his business. whether he was the day-to-day, he knew everything that was going on. the questions from prosecutors tried to get at this idea of manafort as very hands-on. very involved in every aspect of his busy, trying to counter perhaps the defense narrative that manafort was high level and entrusted his financial dealings with his associates like rick gates and he thought even was going to do what they were supposed to with his finances and no intent to mislead any u.s. officials. >> thanks for that. appreciate it. learned a lot. >> possible legal repercussions let's bring in jill wine-banks, and legal analyst mimi roach. you got a case like this. and in some ways a boring case insofar as a lot of paper and money trails. so a little bit of spice. they talked about a $15,000 ostrich jacket. what is the approach here. >> it is a good point. you have to keep the jury's interest a little bit. sometimes dwelling on the extravagant purchases. you know, really what the strategy here is going to be showing and it sounds like the prosecutor was cut off a little bit in the opening on this. but showing how much manafort loved his money. the ostrich jacket is not just quirky interesting fact, who buys that. and you could spend your money on a lot of things, there are a lot of objects to put that kind of money in, but an ostrich jacket is bought by somebody who is flamboyant and wants to sort of really relish and wear their money. >> someone who has been spending too much time around the oligarchs former soviet republic possibly. >> exactly. but it is going to make a defense that he wasn't involved in his business is very hard. >> so jill, we got to first look at the defense, and talk about rick gates who is a central witness here. the defense opening statement focused on rick gates who is paul manafort's deputy. and look, it was all this guy, the guy who is cooperating who is going to be testifying against our client, he is the guy in this. you can't trust him. >> it is often the approach of defendants where it is always someone else's fault. it seldom works especially in a case like this where the evidence will be visible to the jurors. they will see how much money came in, how much money was reported. and they will see the signatures on all of the bank accounts overseas. they will see who had the foreign bank accounts and who didn't. and i think this won't ultimately be successful. and it is exactly what donald trump is doing too. it is not me, it is someone else. always someone else's fault. >> this is an expensive defense. do we know how he is paying for it? >> we don't. the government is entitled to ask that. usually you get a vague response. i don't know, i haven't heard that they have done that in this case. maybe they, you know, hard to know why they wouldn't have done that here, i suppose in some ways they want him to be able to mount whatever defense he is going to mount because they have a strong case and if he is going to be convicted, they want everyone to know he has a fair trial. a strong case and if he is going to be convicted, they want everyone to know he has a fair trial. >> all of the people that i have been talking to, surprising it is going to trial. not going to plead, not going to cooperate. a lot of people feel like in similar situations, a case like this would have been pled out by now. >> i was surprised that it didn't plead much earlier, but at a certain point, he had spent so much money on the defense, that it makes no sense for him to start talking about cooperating at that point. but also very interesting if he is blaming his partner rick gates, rick gates pled out in part because he had no money. so now you have manafort saying he stole my money, embezzled money from me. how come rick gates doesn't have money to defend himself and you do. that would be my question. so that under cuts the argument that rick gates took the money. >> this courtroom which is sealed. at a time when it is the president's campaign manager. and the stuff that they are talking about he was doing, reporting to work by day to get donald trump elected and then filing false forms allegedly with banks? >> this artificial universe. presumably in jury selection the extremes are weeded out. many problems who don't follow this as closely as a lot of people do. >> god bless them. >> probably saner than we are right now. nonetheless, trials when this happens, jurors bring biases and things that they know to trials that happen every day. they hate cops, they never are going to believe a cop. all defendants that are charged must be guilty. those kind of people weeded out. i think that once you are in that courtroom, there is something about the judge, especially a judge like this who is keeping everyone so focused that they are able to get the jurors to focus on the law and the facts. >> and he seems to want to move this along quickly. thank you so much. >> next, the prosecutor's star witness, what rick gates knows that could have trump world worried in two minutes. are you ready to take your wifi to the next level? then you need xfinity xfi. a more powerful way to stay connected. it gives you super fast speeds for all your devices, provides the most wifi coverage for your home, and lets you control your network with the xfi app. it's the ultimate wifi experience. xfinity xfi, simple, easy, awesome. today during opening statement, paul manafort's lawyer said manafort is in -- gates became partners with manafort consulting and lobbying for ukrainian politicians and oligarchs. when manafort 20 to trump campaign, gates went with him. rick gates stayed on the campaign and worked as liaison. he then stayed with trump after trump won as well working on the president's inaugural committee. and after that trump boosting america first policies. and after he was pushed out of the nonprofit, gates was hired by tom barrett. gates was rolled up alongside manafort. by february of this year, gates had a change of heart and he announced he was cooperating with mueller's team and now he centraled this team. he knows a lot. for more on how central rick gates is, joined by daniel goldman. how central is rick gates here? by february of this year, gates had a change of heart and he announced he was cooperating with mueller's team and now he centraled this team. he knows a lot. for more on how central rick gates is, joined by daniel goldman. how central is rick gates here? >> very central to this trial and central to anything involving paul manafort. what is more interesting than whether or not paul manafort evaded taxes or committed loan fraud which are serious crimes is what does rick gates know beyond paul manafort and his financial dealings from his life before the campaign? and as you just recited, he has been paul manafort's right hand man for decades. he knows a lot about what paul manafort knows and so that is going to become a bigger and bigger issue as the collusion investigation ramps up. >> that's the key to me. the thing i keep coming back to is that transition period where there was so much strange stuff going on. kislyak getting shuttled to trump tower. michael flynn lying to who he is talking to. he is there for that transition period too. that is a guy who presumably been talking to federal investigators and prosecutors for months now. >> it is timely that this is happening now and not at all surprising that rudy giuliani went on his circular tour of circular reasoning yesterday. right when paul manafort's lawyers would have received all of the notes and memos about everything rick gates has told mueller and his team. not just about the manafort trial but everything. >> is that the way it works? >> that's the way it works. they are obligated to turn over prior statements so they can be used for pros examination. >> the notes of that. turned over on the eve of trial for discovery. >> exactly. that is what they will use. you testified to x and you said y earlier. they will use that to try to trip him up. it is not a surprise that rudy giuliani is the first person to raise the notion of a pre meeting meeting. and one of the people he says in that meeting is rick gates. >> this idea that giuliani dropping these hints. here is what he had to say. >> lanny davis added there was a meeting two days before the meeting took place with donald jr., jared, manafort and two others. gates and one more person. >> and that's a real meeting. >> that's a real meeting on another provable subject in which he would not participate. >> your key supposition, we don't know, is that manafort's attorneys have in their hands everything that gates told federal prosecutor. how is that being communicated? >> through the lawyers. you are right, it is supposition, it is conjecture. and sometimes our limitations on whether they can share that information. >> what is the ethical guidelines. >> there is no ethical guidelines, it varies. and for all we know, mueller could have gone to the judge and said we want the keep the collusion stuff out of this material. i don't think that would win because you have to cross examine him. it goes to show how crucial rick gates would be to the collusion investigation. we are talking about michael cohen. he may have information. but a lot less for the reasons you described. and by the way, he wasn't there in the june 9th meeting. but if paul manafort left that meeting and went and told rick gates what happened, rick gates can testify to that as a co-conspirator. manafort would have had better access to gates. but if he is telling gates, gates can relay that about what manafort is saying at the time. so you don't need manafort to cooperate if he is sharing. >> it is so fascinating when gates takes the stand. an amazing moment after all of this to see what he has to say. although a lot won't come up. >> that is what you to have recognize. not going to be talking about this stuff. >> daniel goldman, thanks for joining me. >> thank you. >> russians are using the exact same message of sustained criminal sabotage as they did in 2016. and what the trump administration is or is not doing about it after this. ahh... summer is coming. and it's time to get outside. pack in even more adventure with audible. with the largest selection of audiobooks. audible lets you follow plot twists off the beaten track. or discover magic when you hit the open road. with the free audible app, your stories go wherever you do. and for just $14.95 a month you get a credit, good for any audiobook. if you don't like it exchange it any time. no questions asked. you can also roll your credits to the next month if you don't use them. so take audible with you this summer... on the road... on the trail... or to the beach. start a 30-day trial and your first audiobook is free. cancel anytime, and your books are yours to keep forever. no matter where you go this summer make it better with audible. text summer17 to 500500 to start listening today. there were two main prongs of the strategy, the russia based internet research agency pretending to be americans to discord and try to sway voter opinion. also, a dozen russian officials trying to gain access to e-mails. now with just 98 days until the midterm election, here is where we are. senator claire mccaskill has already been targeted by hackers using these same kind of password stealing techniques that exposed john podesta in 2016. and today facebook announced it had uncovered a coordinated attempt to influence the midterm election many they say that quote some of the activity is consistent with what they saw from the russian based agency. anna scheckter has been covering this and joins me tonight. facebook made this announcement today, what did we learn? >> we learned that the exact same tactics have been used. it looks like the russians are behind it. although facebook can't say. they haven't found the russian ip addresses. there is a rally planned for august 12th and engaged real people to show up on august 12th. >> there is a group called black elevation, a group called confront and resist fascism. this is all the same kind of, what is uncanny about this is these are not actually the people they say they are. trying to foment conflict. >> that is right. but still getting people on board. and they had almost 300,000 followers. >> that is a big facebook page -- oh, across the pages. >> across the pages but 30 events taking place. who knows what is going to happen august 12th but calling them to show their fight. show as much discord and as much conflict. you saw in charlottesville, the result with a death and 19 people injured from that tense environment. now we don't know if the internet research agency had anything to do with it, but divisive issues. >> you also have a situation it seems to me where facebook and twitter killed off a bunch of accounts. this seems to be being policed by the companies. who is on the watch for this? >> the companies are working with an fbi task force working specifically on this issue. we didn't see the company's self-policing. but this complete cultural shift where we the users are saying, my data is all over the place. people want the companies to we didn't see the company's self-policing. but this complete cultural shift where we the users are saying, my data is all over the place. people want the companies to hold themselves to account. >> the key point to me is transparency. you don't want to be encountering stuff that is potentially produced by imposters. manipulating your psychology. >> it is deeply unsettling and to know that 30 of these events have already happened. i would like to know more about who showed up to those. and it's pretty sad. >> we will be learning more about how extensive all of this is. thank you so much. joining me now, is angus king of maine. senator, what do you think about the fact that it appears the exact same playbook is being operationalized this year as 2016? >> this is a big deal. as you pointed out, they are back at it. number two, buried in the story today, it appears they are doing it in a sophisticated way. disguising where this is coming from through vpns around the world. and what they are doing is taking aim at our system itself. the combination of the first amendment and democratically elected governments is exactly what they are focusing on. i call it geo political jew -- . >> what do you say if people say, i am not convinced that this is happening a huge effect. >> one of the things, and you mentioned we are going to have a hearing on this tomorrow before the senate intelligence meeting followed up. tomorrow are going to be experts on exactly what is going on. we think we are only seeing the tip of an iceberg. there is a lot more going on that is being used to manipulate us. and what they are doing is simply trying to sow discord and distrust they are doing a good job at it. >> has there been sufficient response from the trump administration? >> the short answer is no. just this morning secretary nielsen in new york started making the right kind of noises. the problem is the response has been spread across a lot of different departments. nobody was in charge. they set up a new office today, and that may help. the other thing she mentioned that is absolutely critical, we have got to convince the russians or the chinese, or the north koreans or whoever proposing to do something like this that they are going to pay a price. we are a cheap date, they knocked the hell out of our process in 2016, nothing that would change their calculus. we have to have a deterrent policy that they understand that if they do this, there is going to be hell to pay. and so far, that hasn't been forth coming. this administration, i have to say, the prior administration was adequate in developing a cyber deterrent strategy. >> let me ask you something, with index of their activity of 2016 campaign, you see, in the center of the chart, there is one line that is higher than any line. it is the single most active day for russian twitter trolls and bots. october 6, 2016. does that strike you as remarkable? >> i think it is a mere coincidence. of course it is remarkable. this wasn't some kind of random attack. this is very sophisticated. and one of the problems is that they are getting more sophisticated. we have to respond now and they know what they are doing and their weaponizing information and using it against us. this is dangerous for our democracy and we have to get our act together to be able to fend it off. >> senator angus king, thanks for making time. still to come, the trump administration was warned of the trauma they would inflict on children in their family separation policy. a warning that was ignored. plus tonight's thing one, thing two starts next. one member of the senate judiciary committee has gone missing. who would do a thing like that to mitch mcconnell in this guy and that is thing two in second sects. absence lasting approximately three more weeks is royally screwing over mcconnell and president trump who need flake in d.c. to continue their mission of packing the courts. maybe this is his way of riding off into the sunset. i'm lucky to get through a shift without a disaster. my bargain detergent couldn't keep up. so, i switched to tide pods. they're super concentrated, so i get a better clean. number one trusted. number one awarded. it's got to be tide plastic cuffs. when visitors showed up in philadelphia, he krouxed behind the sofa. at least one detention center where children were held, children were given psycho tropic medication without consent. on monday in a case that included filings from kids about being forcibly injected with drugs and feeling side effects, a federal judge said the administration can no longer give them psycho tropic drugs without consent. not only it was damage done to these children foreseeable, it was foreseen within the administration. one health and human services official today telling the senate hearing that he warned the administration about what would happen. >> there's no question that separation of children from parents entails significant to do whatever it takes, use every possible resource. to fight cancer. and never lose sight of the patients we're fighting for. our cancer treatment specialists share the same vision. experts from all over the world, working closely together to deliver truly personalized cancer care. specialists focused on treating cancer. using advanced technologies. and more precise treatments than before. working as hard as we can- doing all that we can- for everyone who walks through our doors. this is cancer treatment centers of america. and these are the specialists we're proud to call our own. treating cancer isn't one thing we do. it's the only thing we do. expert medicine works here. learn more at cancercenter.com cancer treatment centers of america. appointments available now. any member of this panel saying to anyone, maybe this isn't such a good idea. commander? >> during the deliberative process over the previous year, we raised a number of concerns in the program about any policy which would result in family separation. due to concerns we had about the best interests of the child as well as about whether that would be operationally supportable and the bed capacity we have. >> that was an hhs official, asked by senator blumenthal, hey, did anyone there say don't rip the families apart? and i'll read this again. during the deliberative process, over the previous year, we raised concerns about any position which results in family separation due to the best interests of the child. in other words, absolutely we raise concerns. absolutely we warn them not to do it. absolutely it would be terrible for these children. do you know what the trump administration did? they went ahead and did it anyway. senator hirono, am i misreading that or is that how you heard it? >> that is how we heard it. the trump administration did not listen to the people and went ahead and instituted this very inhumane, cruel policy. >> what did you learn today? >> very clearly that when the homeland security people instituted it, and all these parents will be criminalally prosecuted, they have to separate the parents from the children and they had no plan or intention of ever unifying these children with their parents. what they can with these children was make them instant orphans and send them on health and human services jurisdiction and pretty much, homeland security washed their hands of it. but for this judge in san diego who said you will reunite these children. and the person who testified from health and human services said, when these children are now deemed unaccompanied children, they were not set up there to reunify them with their parents. they're are to find sponsors for them. they're to do other things. so chaos ensued. >> i want to stop you there. this is important and there's a lot of jargon. what you're saying and what that hhs official testified today, in your hearing, was that when they were taken from their parents, they were turned into what is called unaccompanied minors. the shelters that got them got them fast they had come alone. not with their parents. and those shelters have things in place to place them into foster care or adoption. >> yes. exactly. that's why the person from health and human services said, they were not set up to reunify these children with parents. the thing is, he said the thing that was wrong was the separation of these children from their parents because they became orphans. >> there's something about this story fills me about an old testament wrath. who is going to be held -- i feel like i want a difinitive accounting of who said what to whom, who raised red flags. is there any plan to get some after action report about what happened here? >> we can get to some specifics but basically, the president takes responsibility for this. it is his zero tolerance policy that resulted, and as articulated by the attorney general, all of a sudden we'll start prosecuting thousands of parents as criminals. so this didn't have to happen. as i said, but for this judge in san diego, who was by the way, appointed by a republican president. if this judge did not say to the administration, you will reunite these children, they still wouldn't be doing it. in fact, homeland security would have washed their hands and all these children would have been the responsibility of the health and human services. >> i guess what i'm trying to say is that's not good enough. your colleagues are chasing the deputy attorney general to the gates of hell to turn over documents torsion turn over underlying warrants that have never been turned over in the history of the modern fisa court and i feel like the congress needs to hold some accountability over what this administration has done is that the aftereffects it has caused to these children. >> i share your outrage. there is month way the house which is enabling the president to do all kinds of day on theic and cruel things, don't look to them of at least we had a hearing. three weeks ago, chairman grassley was only going to have the person from i.c.e. come testify. wait a minute. you have to have the health and human services people testify. there was never any intention to reunify these kids. and they said these family detention centers are like summer camps. so when i asked two of the five testifiers who had some experience, including the guy from i.c.e. experience with these family centers, would you send your kid to these so-called summer camps? i just got a lot of hemming and hawing. so we have an administration that still hasn't reunified some 700 kids. >> thank you for joining me. that's "all in" this evening.