highly classified communications intercepts and eavesdropping on kim jung-un to find out what his real intentions may be. >> barbara starr at the pentagon for us. coverage continues now with wolf blitzer in "the situation room." happening now, breaking new, manafort on trial. in the first big court test for special counsel robert mueller, former campaign chairman paul manafort goes on trial accused by prosecutors of hiding millions in secret income from taxes. could manafort turn on president trump to avoid spending the rest of his life in prison? russia attacking again? facebook shuts down dozens of pages that it says may have been tied to russians spreading disinformation ahead of the mid term elections. is the kremlin once again targeting u.s. voters? saving general kelly.

white house chief of staff john kelly announces that president trump has asked him to stay on until at least 2020. the retired general has been fighting rumors of an imminent departure almost since he took the job. is that job now safe? and kim's new missiles, a new report warns north korea may be building new long range missiles that could pose a risk to the united states. just weeks after president trump pronounced that north korea is no longer a nuclear threat. i'm wolf blitzer, you are in "the situation room" on. . breaking news, the first trial in the mueller investigation gets under way as the jury is quickly seated and prosecutors label paul manafort a shrewd liar who ran a global scheme to avoid paying taxes on millions of dollars in secret

income. manafort faces 18 counts of tax and banking violation and could face life in prison. and he still faces another trial related to foreign lobbying. i'll speak with senator chris van hollen. and our koerptss a corresponden specialists are standing by. but first let's go straight to evan perez outside the federal court in alexandria, virginia. you were inside today for the opening statements. what did the prosecution have to say? >> reporter: prosecutors made it clear that they were going to put paul manafort's what they called his extravagant lifestyle on trial essentially. it will be used to illustrate how paul manafort was using for years offshore bank accounts to hid up to $60 million that he got paid by ukrainian oligarchs according to prosecutors. prosecutors pointed to paul manafort and said that he was, quote, a man who believed the

law did not apply to. so it is clear that prosecutors will paint a picture that they were using -- that paul manafort was using these complex financial instruments, offshore shell bank accounts, wolf, as a way to hide money that he was using to fund paying for $6 million in real estate that he paid for in cash. $21,000 that he used to boouy a wash, $15,000 he spent on a jacket made from an osthich. prosecutors want jurors to follow the thich. prosecutors want jurors to follow thich. prosecutors want jurors to follow the money. respect i. >> how did manafort's defense team respond? >> they basically said paul manafort did not intend to dereceiver td deceive the irs or government, that he wasn't trying to hide the money. that he met with the fbi in 2014 and laid out that he had been

paid $27 million for instance from ukraine. and also identified some of the offshore bank accounts. and they also made clear that the defense will put rick gates, paul manafort's former deputy, on trial. they called him the star witness and they called out the government for barely mentioning rick gates in their opening. rick gates obviously also served on the trump campaign, as a matter of fact he stayed the trump campaign even after paul manafort was fired from the campaign. one of the things we won't hear in court and we've talked about it a little bit is we won't hear much about president trump. the prosecute are tore ors and l try to make it only about the financial instruments, the taxes and bank accounts that according to the government paul manafort was lying about. they want to make sure that russia and the collusion question never enter into this trial. the jury is now right at this moment hearing from the first witness. this is a court that moves very

quickly as you mentioned. tadd devine a democratic strategy is testifying for prosecutors. we expect that the defense will also raise questions to tadd devine essentially showing that paul manafort worked for not only republicans, he also worked with democrats that really he was working when he was working overseas, it was a nonpartisan issue. >> evan perez in alexandria, virginia, thank you. with the mueller investigation's first trial now under way, president trump and his lawyers seem to be cooking up a new defense slogan of their own. the president will hold a campaign rally shortly in tampa, florida. let's go there. jim acosta is already on the scene for us. so jim, what is the latest? >> reporter: president trump is in florida tonight to do some campaigning ahead of the mid term elections. but the president and his team are still busy trying to get their story straight on the

russia investigation. mr. trump is now echoing his lawyers who have gone from saying there was no collusion during the 2016 election to insisting that collusion is not a kricrime after all. president trump appears to have a new strategy for the russia investigation. ignore questions from reporters while spinning up a new defense where he shielded from outside scrutiny tweeting collusion is not a crime, a notable leap from the president who claimed there was no collusion. >> there is no collusion because you know why, i don't speak too russian as. there has been no crime. i can only say this, there was absolutely no collusion. everybody knows it. every committee. there is no collusion. no collusion with russia other than by the democrats. >> reporter: the president now amplifying what rudy giuliani

said monday. >> i don't even know if that is a crime. >> reporter: and another trump attorney jay sekulow said today. >> not just technically correct. that is actually the law. but there is no violation of law, statute, rule, regulation that we somewhere seen after reviewing this case for a year and i think bob mueller will come to the same conclusion. >> reporter: democrats aren't buying it. >> i can't keep up with rudy giuliani's theories and defense. they change almost by the hour. you know, collusion at one point never happened. the next point, if it happened, it is not serious. >> reporter: weighed done by the russia probe, the president is turning to issues popular with his base threatening to shut down the government to make congress pay for a border wall insisting that is a small price to pay and tweeting i don't care what the political ramifications are. even fellow republicans are leery of a shutdown with the midterm elections fast approaching. >> i kind of see it as posturing. it is irresponsible thing to do i think. >> reporter: mr. trump's border policy is coming under

increasing scrutiny with an administration official admitting that the practice of separating children amounts to child abuse. >> there is no question that separation of children from parents entails significant potential for traumatic psychological injury to the child. >> reporter: one of the president's hard liners on immigration john kelly appears to be sicking around. sources confirm the president has asked kelly on to remain at his post until 2020. though cnn has learned the chief of staff wanted the story leaked to tamp down reports that he could be on his way out. mr. trump arrives in florida with the upcoming elections on his mind throwing his support behind ron desantis. >> he reads stories. >> then mr. trump said you're fired. >> reporter: desantis appears in a new ad teaching his children how to build their own wall and a show of big league flattery. >> big league, so good. >> reporter: the white house closed out the month of july

without holding a briefing to reporters, so that means the white house held only three briefings for the press this month and eight total since the end of may. there is no other way to describe what the white house is doing these days, though top officials including the president are hiding from the press. and just to give you a sense, you can hear there is a are chorus of boous aboos and other saying things like cnn sucks, go home and fake news. obviously all those things are false. we're staying right here, we'll do our job and report on this rally to all of our viewers here tonight. >> as you should. jim beingacrososta, thank you. facebook has announced that it is shutting down dozens of pages that may have been tied to russians spreading disinformation ahead of the november mid term elections. drew griffin has been digging in to this for us. what are you learning? >> reporter: well, facebook did shut down these 32 accounts, they run the gamut from an

indian support page to an account about mindfulness. but the biggest had to do with the divisive political issues which we saw so much of around that 2016 presidential campaign. page after page about race resistance is one of them including one with president trump and a flag all aimed at further polarizing the american electorate. one page i want to show you called resister organized several events, one was held last november in new york. plenty of people showed up not realizing the whole thing was started by a fake facebook group likely run by russians. resisters also set up another event in d.c., a counter protest to a white national rally scheduled less than two weeks from today. five other real groups got involved with this, some of the people we contacted having a hard time believing the people that they have been messaging on facebook aren't who they say they are. in all, nearly 290,000 users followed these 32 fake accounts.

as for who is behind it, facebook can't say for sure that it the russian, but it has all the hallmarks of the activities the russians were doing around the presidential election in 2016. this time the pages doesn't lead back to russian ip addresses. they used third party services to boost their posts and encourage people to follow the pages. but again, it looks an awful lot like russian activity. >> and what are u.s. officials saying about the russian involvement in this case? >> reporter: the sect of homeland security happened to be speaking at cybersecurity conference today in new york. she said there is no doubt russia is gearing up to meddle in the u.s. midterm elections and she compared the threat to a looming storm. >> today i believe the next major tack is more likely to reach us online than on an airplane. we are in a crisis mode. the cat 5 hurricane has been forecast and now we must

prepare. >> reporter: dhs today said they had advanced notice of this activity with facebook, and they are working with facebook on this as facebook continues to monitor all this russian activity and take it down as soon as they can figure it out. >> i suspect there is even more out there that they will eventually learn about. drew griffin, thank you. joining us now, democratic senator chris van hollen, key member of the appropriations and budget committees. senator, thanks so much for joining us. do you believer faceboyou belieg enough to fight back against russian interference in the u.s. elections? >> well, i think facebook is. they are trying to get in front of this. i don't think the u.s. government is doing enough. look, we just had the director of national intelligence say that all the red lights were flashing, the statement from the secretary of homeland security. we know that the russians have tried to interfere already in three elections. including senator mccaskill's election.

which is why after i finish talking to you, i'm going to join senator rubio on the floor and we'll call on the senate to urgently take up our legislation called the deter act which would tell putin if he gets caught interfering in the 2018 elections or elections going forward, he will face immediate harsh penalties. we have to take every action to protect our democracy. the trump administration is not doing enough. the senate has to act. >> is president trump personally involved, is he doing what he needs to do as the president of the united states to deal with this? >> reporter: well, as we know, he hasn't really come around to fully admitting in his heart that the russians everyone interfered in the 2016 election. and so they have taken no real action to protect us. the 2018 election if they are serious about it, if the trump administration wants to support the effort, they should support our bipartisan legislation. we have 98 days or so to go into the election. and we have to pass this.

we have to let putin know that the cost of interference are much higher than any benefit he seeks to gain. >> how much support do you and senator rubio have? >> we have growing support. we have about 12 co-sponsors already, six republican, six democrats. it is growing every day. we had a briefing in the banking committee which oversees sanctions earlier today. both the senate foreign relations committee and banking committees will be having hearings. but hearings aren't enough. the real test about whether the republican leadership wants to join with democrats to protect our democracy will be whether they get beyond the hears and actually move on the deter act. >> let's turn to our top story, former campaign compare man paul manafort in court today. first trial of the special counsel's investigation. how important is this case to robert mueller's overall russia probe? >> well, it is very important. of course manafort was the

campaign manager for the trump campaign for a period of time. he had very deep ties to russia, these financial ties which are the subject of the hearing. and we also know that donald trump and the trump administration folks, lots of people in the administration, have had very deep ties financially to russia. but i think the main purpose here is to show that they have collected evidence, they the mueller investigation, and we've had a lot of indictments. this is the first trial. so this is a very important step. and i think it just underscores the importance of protecting this investigation, let the facts lead where they may. as you have been reporting, would he have already seen the administration changing its story. first it was a parade of tweets saying no collusion and now it is no can ollusion but that did mean there is any crime. the realty is if there was a

conspiracy to collaborate with the russians to interfere in the elections, that would be a crime. and let's just let mueller do his work and get to the bottom of it. >> we'll see what happens. chris van hollen, thanks so much for joining us. up next, first big court test for robert mueller as the trial of paul manafort gets under way. and is moscow once again targeting u.s. voters? facebook shuts down dozens of pages that it says may have been tied to russians spreading disinformation ahead of the midterm elections. ♪ ♪ i can do more to lower my a1c. because my body can still make its own insulin. and i take trulicity once a week to activate my body to release it, like it's supposed to. trulicity is not insulin. it comes in a once-weekly, truly easy-to-use pen.

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in, opening statements are read and the first witness has already taken the stand in the trial of paul manafort. he faces 18 counts. the first big court test for the robert mueller and this isn't even tied to the election attacks. jim sciutto is joining us right now. so where do things stand overall in the mueller investigation? >> despite all the presidential tweet tsz as and the attacks on special counsel and all attacks to try to define what robert mueller is up to, he has produced a number of charges against so far four of trump's campaign associates, 25 russians for interfering in the election. but paul manafort, the president's former campaign chairman, very much a focus of

his investigation. hopefully denounced. >> call it the rigged witch hunt. >> reporter: robert mueller's investigation has produced a steady stream of indictments and are arrests over the last 14 months and enters a new phase with the start of the first of two trials for paul manafort. trump's former campaign chairman. in virginia he faces charges of bank and tax fraud. in washington, he is accused of failing to register as a lobbyist for a foreign government. and obstruction of justice. and mueller may not be done with manafo manafort. this memo indicates that the special counsel is still investigating whether manafort was, quote, colluding with russian government officials, end quote, to interfere in the 2016 election. >> there is no evidence that mr. manafort or the colluded. >> reporter: rick gates has

already pleaded guilty and will testify against manafort. among the others indicted, michael flynn, trump's former national security adviser and george papadopoulous, former campaign aid. both pleaded guilty to lying to prosecutors and both are cooperating with the investigation. an associate of manafort's described in court documents as a suspected russian intelligence operative also indicted, 13 russian nationals and three russian entities. charged with interfering in the 2016 election. and most recently, another group of 12 russian nationals, charged with hacking the democratic national committee and the clinton campaign. his team has interviewed at least two dozen members of the trump administration and other trump associates. >> bob mueller is not making deals left and right. rick gates, george papadopoulous and michael flynn all traded some pieces of information for their respective plea deals.

that is presumably incredible information. >> reporter: and what has mueller found out about the june 2016 trump tower meeting between donald trump jr., paul manafort, jared kushner and russians who promised to share dirt on hillary clinton? trump jr. has said that he never told his father about the meeting. >> there was nothing to tell. >> it was just a waste of 20 minutes which was a shachme. >> reporter: but sources say michael cohen is now claiming trump knew of the meeting in advance and that cohen is prepared to tell mueller. cohen himself may not be on mueller's to-do list though having referred his case to federal investigators in new york. >> so it brings the issue of collusion or conspiracy right to the president's feet. >> reporter: mueller's latest indictment of the russian hackers hinted that he may still be looking at the role of other u.s. persons. >> conspirators cores respondre

with several americans. >> reporter: some speculate that may be roger stone. u.s. intelligences believes wikileaks acted as a middle man. >> it is innocent. there is no evidence of collusion or conspiracy or coordination. >> reporter: department of justice also recently released the fisa warrant obtained to surveil carter page. at the time the fbi told the court it believed page was the subject of recruitment by the russian government. >> i've never been an agent of the foreign -- a foreign poll power in any -- by any stretch of the imagination. >> reporter: questions also remain about blackwater founder's mysterious meetings with a russian banker and george nader, an unofficial representative of the united arab emirates. >> no one was aware that i was there. it had nothing to do where the u.s. government, nothing to do with the trump team or anything else. >> reporter: cnn has reported that the purpose of that meeting

was to arrange a possible back channel communication between the u.s. and russia. but the uae connection could expand humanlmueller's investig. nader has been cooperating with investigators. perhaps the biggest question is what if anything mueller has in store for president trump. including whether he obstructed justice. >> i think that really that obstruction piece will be the final element of this. and that what we'll more likely see is sort of these dots being connected. >> reporter: looming large is whether the special counsel will demand a sitdown interview with president trump himself. >> i've always wanted to do an interview because, look, there has been no collusion. >> reporter: for now mr. trump's attorney rudy giuliani says any interview is still under negotiation. >> i think he shouldn't. i know how convinced he is that he didn't do anything wrong and wants to explain it and i've

seen other people get into trouble thinking that, innocent people. >> reporter: it should be clear none of the charges that manafort faces so far involve cooperation, conspiracy or collusion with the russians. he did however work for years for the pro-russian leader of the ukraine including defending his actions to a western audience for instance defending that his jailing of the political opponent. so he was working for it, getting paid tens of millions for a pro-russian politician guilty of main bny bad acts. >> millions of dollars from a pro-russian very close to the kremlin, very close to ukranian leaders. so that is significant. >> also accused of shooting civilian protesters in a demonstration. so there was a lot of malign activity by the person he was working for. >> an important issue. thanks very much.

coming up, more breaking new, the first trial in the mueller investigation has begun as prosecutors layout their case against the former trump campaign chairman paul manafort accused of avoiding taxes on millions of dollars in secret income. and president trump hits the campaign trail echoing the new argument that collusion is not a crime. stay with us. my mom's pain from moderate to severe rheumatoid arthritis was intense. i wondered if she could do the stuff she does for us which is kinda, a lot.

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. we're following multiple breaking stories. the first witness already is testifying in the trial of paul manafort facing charges brought by robert mueller. our experts are here to discuss what we're learning from the opening statements. and joey jackson, what stands on out to you so far from the opening statements? >> well, quite frankly, what stands out to me is why there is a trial in the first place. let me be clear. there are 18 counts here. it means that if you are convicted of any one of those counts, it is problematic. we know that he faces 305 years. why are you going to trial. compound that against the backdrop of the feds having a 95% conviction rate, and i don't see the play. to the specifics of the trial, in terms of what they are saying, what stabs o at stabs s saying, what stabs otands out i issue of agreed, of lgreed, of . jurors do not like when people have several homes and they have

lied to get those homes because they allegedly lied to the bank, bookkeeper, to the government about tax and other issues that they get $21,000 watches and $15,000 jackets that they didn't earn. and so the government is dropping that all upon them and that becomes problematic. and so if you look at the greed, you look at the dishonor and you collectively look at the extent of the alleged fraud, and you look at the 18 counts, you scratch your head and you say why was there not cooperation here. >> you how important is this first trial for the overall mueller probe? >> i think it is highly significant. to be clear this trial is not about the campaign. it is not about trump. it is not about collusion. however, when you as a prosecutor go out the gate and you have an 18 count case where you have witnesses who are just going to bring to him, it establishes if you are successful not only that you mean business, that your investigations are thorough, that you have people there who are credible, but it also sends

a signal to others that you might want to cooperate. you know what, you might want to take a plea deal. you know what, you may not want to go to trial. so i think not wiwithstanding t fact that this is not related to campaign activity, it is highly significant to mueller, to the probe and to just the general competence of the prosecution team in the first instance. >> john kirby, at the same time russia apparently is still doing what they were doing in the 2016 presidential campaign correspond to facebook, they have had to delete a lot of pages, hundreds of thousands of followers. and the suspicion is the russians are trying to foment dissent, a lot of division. do they appear to be deploying the same strategies as they did in 2016? >> from the press reporting, it certainly appears to be that way. and good on facebook for being public about doing something about it. and helping to alert facebook users and the rest of the public about the threat.

but it does appear like they are taking a page out of their old playbook and running it again. and we need to be mindful of other vehicles that they might use to sow dissent and chaos. >> what are you hearing about how the president is thinking dealing with and i will of this as he is trying to go about being president? >> first of all, i'm told part of the sort of manic state of his tweets especially recently and we'll see what he does at this rally tonight has been as it has been for months and months and months if not longer about the mueller probe and the fact that he still even to this day when he sees and hears that he thinks, okay, it is my critic saying that i'm not a legitimate president. but i'm also told it is more than that and that is that he is becoming increasingly concerned and aware of the prospect of the republicans taking over the house in november and he is saying to aids that t s oies thf

rally he is doing tonight he wants to do more of about this is donald trump's m.o. when he sees problems, he sees things not getting done, he says forgets it, i'll do it myself. no one can do its way i can. he did that in business and he certainly did it in politics. but the question is whether it will play when is he not on the ballot. certainly in tampa where he is going to support a republican in a primary, other places where he won by big margins in north dakota and west virginia, but a lot of the battleground in the house will be won or lost in swing areas where some of the republican candidates may not be so thrilled with him coming to help them. >> and sgrjamie, you brokes sto of bob woodward mass abook -- has a book coming out entitled

"fear." what are you hearing? >> we're told that donald trump is about to get the bob woodward treatment, that he interviewed dozens of firsthand sources, that he has hundreds of hours of taped interviews. and that they also -- the book will take you right into the white house. you will see donald trump in the oval office, in the swituation room, even in the white house residence. and beyond that, we're told that the sources gave woodward documents. that he has memos, notes, dia diarieses files, everyone notes handwritten by donald trump. we're going to see exactly where this goes, but i'm told that some of what is in the book includes explosive debates around decision-making and you can expect to hear about china, north korea, the middle east.

there is new information about the russia investigation. and also you go behind the scenes about what i'm told president trump was thinking during those protests in charlottesville. >>. >> we'll see what he comes up with. looking forward to it. stick around, there is more news we're following. after months of dedeanin inof d collusion, why is he now tweeting collusion is not a crime? and also why the president is attacking some of his fellow republicans calling the koch brothers and i'm quoting him now a total joke.

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party with those tweets. but why would the president tweet this now? the context is the koch brothers and -- just charles koch now is the leader of the koch network. it does political work, policy work and other work. they had their meeting in colorado springs over the weekend. and one of the top koch officials, brian hooks, was very critical, said that the white house and divisiveness that it is creating will do long term damage. and they also said that they were frustrated with republicans who have followed the president's lead on issues like trade and immigration and that they were going to hold those republicans accountable by potentially not supporting them in crucial election as. >> isn't there is a preliminary risk for the president to attack the koch network likeas. >> isn't there is a preliminary risk for the president to attack the koch network lis. >> isn't there is a preliminary risk for the president to attack the koch network like this so brutally? >> in one sense, no, because the kochs have never really liked donald trump, donald trump never

really liked the kochs. they didn't support him in the presidential election. so no bridges left to be burnt. but the kochs' network is comprised of hundreds of donors and businessmen. so there is an element of this that could be a risk for the president if he wants to upset this very powerful network. at the same time, this really highlights the split in the republican party and donald trump now is the leader of the party. it has gone in his direction. we've seen republicans take his side on some of the key policy issues and that is why the koch network this weekend expressed such frustration with republicans that they would side with the president on issues like trade, why they want to hold him accountable, but frankly the president lashes out because he is the leader of the republican party.

>> doesn't he real rise thize t koch network gives millions of dollars to conservative think tanks, and very often that is part of the base that reports the republican leadership. >> and they are also spending millions right now, they have committed to spend millions pushing back against the administration's proposed tariffs trying to understand mine one of the president's central policy issues. that would not help him politically to have them working against him. he doesn't seem to care though. >> their network is highly overrated, i have beaten them at every turn. so this war under way. thanks very much for that report. coming up, despite his agreement with president trump, is kim jung-un secretly building new long range intercontinental ballistic missiles? >> tech: at safelite autoglass,

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korea may be building one or two new intercontinental ballistic missiles. "the washington post" posts u.s. officials familiar with the intelligence which includes satellite images saying this is a significant moment. will ripley is following developments for us from hong kong. what are you learning over there, will? >> well, wolf, if these reports in the post are correct, then the missiles that are being built right now in north korea, this is the same factory that has produced icbms that are capable of striking the east coast of the united states.

this as cnn is learning there has not been any official contact in weeks since secretary pompeo visited pyongyang and had a disastrous visit about denuclearization. more than eight months after north korea's last missile launch, what could be a major blow to president trump's diplomatic efforts with north korean leader kim jong-un. "the washington post" reports north korea may be developing new intercontinental ballistic missiles at this plant on the outskirtsf of pyongyang. seemingly a far cry from the pledge to work toward complete denuclearization of the korean peninsula. >> what we see is real time that north korean officials don't take this seriously. they have no intention of giving up anything. that doesn't come as a surprise to the survival of kim jong-un and his family.

>> a u.s. official tells cnn kim has not made a full commitment to denuclearization, and u.s. intelligence agencies believes work continues at almost all north korean nuclear facilities, including this one. >> their nuclear capability is still intact. their testing capability, we just saw a few months ago in the destruction of a testing site. the production is a different question. >> in other words, u.s. intelligence says, no significant signs of denuclearization. contradicting this tweet from president trump one day after singapore, declaring there is no longer a nuclear threat from north korea. >> north korea continues to produce fissile material, nuclear bomb material. is that correct? >> yes, they continue to produce fissile material. >> defense officials say the kind of liquid fueled missiles north korea may be developing right now don't pose a major threat. they have to be rolled out and

fueled up before launch, giving the u.s. plenty of advance warning. the big challenge one official says, learning as much as possible about north korea's nuclear arsenal before they declare their inventory so the u.s. can make sure kim jong-un is telling the truth. >> and that last part is crucial because, according to "the washington post," u.s. intelligence agencies believe that north korean officials are in fact preparing to deceive the united states about the number of warheads and the number of missiles they have, and they haven't even indicated that they're willing to declare a full inventory yet. wolf. >> will ripley with the very latest, disturbing information indeed. thank you. coming up, the breaking news in the first big court case for the special counsel, robert mueller. former trump campaign chairman paul manafort goes on trial, accused by prosecutors of hiding millions of dollars in secret income. tripadvisor makes finding your perfect hotel... relaxing.

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