Showing posts with label Payment. Show all posts
Showing posts with label Payment. Show all posts

Friday, 4 May 2018

Trump Is Said to Know of Stormy Daniels Payment Months Before He Denied It

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WASHINGTON — President Trump knew about a six-figure payment that Michael D. Cohen, his personal lawyer, made to a pornographic film actress several months before he denied any knowledge of it to reporters aboard Air Force One in April, according to two people familiar with the arrangement.

How much Mr. Trump knew about the payment to Stephanie Clifford, the actress, and who else was aware of it have been at the center of a swirling controversy for the past 48 hours touched off by a television interview with Rudolph W. Giuliani, a new addition to the president’s legal team. The interview was the first time a lawyer for the president had acknowledged that Mr. Trump had reimbursed Mr. Cohen for the payments to Ms. Clifford, whose stage name is Stormy Daniels.

It was not immediately clear when Mr. Trump learned of the payment, which Mr. Cohen made in October 2016, at a time when news media outlets were poised to pay her for her story about an alleged affair with Mr. Trump in 2006. But three people close to the matter said that Mr. Trump knew that Mr. Cohen had succeeded in keeping the allegations from becoming public at the time the president denied it.

Ms. Clifford signed a nondisclosure agreement, and accepted the payment just days before Mr. Trump won the 2016 presidential election. Mr. Trump has denied he had an affair with Ms. Clifford and insisted that the nondisclosure agreement was created to prevent any embarrassment to his family.

Mr. Giuliani said this week that the reimbursement to Mr. Cohen totaled $460,000 or $470,000, leaving it unclear what else the payments were for beyond the $130,000 that went to Ms. Clifford. One of the people familiar with the arrangement said that it was a $420,000 total over 12 months.

Allen Weisselberg, the chief financial officer of the Trump Organization, has known since last year the details of how Mr. Cohen was being reimbursed, which was mainly through payments of $35,000 per month from the trust that contains the president’s personal fortune, according to two people with knowledge of the arrangement.

One person close to the Trump Organization said people with the company were aware that Mr. Cohen was still doing “legal work” for the president in 2017, but declined to say more about what Mr. Weisselberg knew. Another person familiar with the situation said that Mr. Weisselberg did not know that Mr. Cohen had paid Ms. Clifford when the retainer payments went through.

If Mr. Weisselberg was involved in directing the use of the funds to silence Ms. Clifford, it could draw Mr. Trump’s company deeper into the federal investigation of Mr. Cohen’s activities, increasing the president’s legal exposure in a wide-ranging case involving the lawyer often described as the president’s “fixer” in New York City.

In interviews on Wednesday and Thursday, Mr. Giuliani insisted that the president had reimbursed Mr. Cohen for the $130,000 hush payment — and then paid him another $330,000, if not more — which was in direct conflict with the longstanding assertion by Mr. Trump and the White House that he did not know about the hush money or where it came from.

In an interview with The New York Times on Friday, Mr. Giuliani sought to clarify his statements by saying that he did not know whether Mr. Trump had known that some of the payments to Mr. Cohen had gone to Ms. Clifford. “It’s not something I’m aware of, nor is it relevant to what I’m doing, the legal part,” Mr. Giuliani said.

A lawyer for the Trump Organization declined to comment, and a spokeswoman for the organization did not respond to an email about Mr. Weisselberg.

The president has said that he would view any investigation into his finances or those of his family as “a violation,” though he was referring to the investigation into Russia by the special counsel, Robert S. Mueller III; the investigation into Mr. Cohen is being run by federal prosecutors in the Southern District of New York.

The payment to Ms. Clifford is a part of that investigation. The circumstances surrounding it had become all the murkier this week after Mr. Giuliani gave an explanation of how the funds to Ms. Clifford were accounted for that contradicted all those that came before it.

After initially appearing to back Mr. Giuliani’s assertions in a series of Twitter messages on Thursday, Mr. Trump reversed course on Friday, after a series of headlines suggesting that the president had lied about knowing of the hush payment. In remarks to reporters on Friday, Mr. Trump criticized Mr. Giuliani and said he would eventually “get his facts straight.”

“Virtually everything said has been said incorrectly, and it’s been said wrong, or it’s been covered wrong by the press,” Mr. Trump told reporters, though he excused Mr. Giuliani by explaining he had “just started a day ago.”

In a written statement later in the day, Mr. Giuliani said that he had not been “describing my understanding of the president’s knowledge.” And he reversed a previous suggestion that the payment to Ms. Clifford was motivated by the election. Mr. Giuliani said on Friday that the payment was personal in nature and “would have been done in any event, whether he was a candidate or not.”

While some White House officials had insisted that Mr. Trump was pleased with Mr. Giuliani’s performance on Fox News in an interview with Sean Hannity on Wednesday night, two people close to the president painted a different picture. They said that Mr. Trump was displeased with how Mr. Giuliani, a former New York mayor, conducted himself, and that he was also unhappy with Mr. Hannity, a commentator whose advice the president often seeks, in terms of the language he used to describe the payments to Ms. Clifford.

The nature of the payments is significant because of campaign finance laws that regulate who may contribute to candidates and how much they can give.

If Mr. Cohen or others paid to silence Ms. Clifford primarily out of fear that a public airing of her story would have harmed Mr. Trump’s election prospects — rather than to keep it from his family for personal reasons — then the payment would most likely be viewed as an illegal campaign expenditure. Mr. Giuliani told The Times on Friday that the issue was “primarily” about keeping Mr. Trump’s wife, Melania, from being embarrassed by the claim, which Mr. Trump has maintained was false.

But if investigators determine that the hush payment was in effect a campaign expenditure, then how the funds were distributed could take on added legal significance. Mr. Cohen had been careful to say that neither the campaign nor the Trump Organization was involved in the deal or any effort to reimburse him.

Under campaign finance law, Mr. Trump would have been within his rights to pay Ms. Clifford himself as a way to protect his presidential prospects — though he would have had to have formally made note of it in his public campaign filings, which had no accounting of the payment. If he directed Mr. Cohen to pay it on his behalf, then that could qualify as an illegal, coordinated campaign expenditure, even if Mr. Trump later paid him back.

Any involvement by the Trump Organization would further complicate the legal picture, given that American election law is strictest of all when it comes to corporate involvement with political campaigns. Businesses are not allowed to donate directly to campaigns or to coordinate with them.

Ms. Clifford’s lawyer, Michael J. Avenatti, has been arguing for months that Mr. Trump’s company was more involved in the arrangement than Mr. Cohen had been letting on.

After filing a lawsuit on Ms. Clifford’s behalf seeking to get out of the deal — which he has called invalid — Mr. Avenatti showed that Mr. Cohen had used his Trump Organization email at one point in arranging the payment. He also pointed to a secret document in California that a Trump Organization lawyer filed to force Ms. Clifford into arbitration this year.

At the time, the Trump Organization said that the lawyer, Jill A. Martin, who works in California, had acted in a personal capacity to help Mr. Cohen, who needed assistance with the initial arbitration filing from someone licensed in the state. The Trump Organization had said that “the company has had no involvement in the matter.”

In an interview, Mr. Avenatti said that any indication that still more executives at the Trump Organization knew about the effort to reimburse Mr. Cohen for the payment to Ms. Clifford could lead to further investigation of the Trump family business.

“There’s no question it opens up another avenue of inquiry into the depths of the involvement of the Trump Organization,” he said.



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Thursday, 3 May 2018

The Path of Stormy Daniels’s $130,000 Payment to Keep Quiet

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It may prove to be the most-talked-about secret payment in American political history — the $130,000 that President Trump’s lawyer Michael D. Cohen paid to the pornographic film actress Stephanie Clifford to keep quiet about an alleged affair with Mr. Trump before he became president.

That payment to Ms. Clifford, known professionally as Stormy Daniels, was a mere 0.005 percent of the $2.4 billion spent on the 2016 election. But it could have an outsize impact on the presidency.

The payment has helped spur a lawsuit by Ms. Clifford against Mr. Trump and a federal investigation into Mr. Cohen. Campaign finance watchdogs assert the transaction was the result of a secret, and illegal, effort to subvert election spending laws on behalf of the president.

Mr. Trump on Thursday rejected any notion that payments to Ms. Clifford had violated campaign finance laws, though in the course of his defense he contradicted earlier statements that he had known of no payments to the actress.

The story behind the payment to Ms. Clifford — when Mr. Cohen paid it, how he paid it, whether he was paid back and by whom — will be critical to both the lawsuit and investigation, not to mention others that may come.

Below is what we know about what happened, how the explanations have evolved and why it all matters.

Cohen forms a shell company in Delaware

Oct. 17, 2016

Mr. Cohen sets up a new company in Delaware, Essential Consultants L.L.C., from which he will later pay Ms. Clifford.

Delaware has minimal disclosure requirements for people who create companies there, making it hard to know their identities.

Many companies incorporate in Delaware. The location of Essential Consultants could become legally significant if investigators establish that Mr. Cohen used Essential Consultants to evade campaign finance laws requiring full disclosure of campaign donations and disbursements. Mr. Cohen and lawyers for Mr. Trump have denied wrongdoing.

Money is moved, and aliases are involved

Oct. 26, 2016

Mr. Cohen communicates with his bank, First Republic Bank, about a payment to Ms. Clifford through his Trump Organization email account. Ms. Clifford’s lawyer Michael Avenatti has pointed to Mr. Cohen’s use of that account to argue he was working on the payment in his official capacity working for the Trump Organization. Mr. Cohen has said that “neither the Trump Organization nor the Trump campaign was a party to the transaction.”

Oct. 27, 2016

Keith Davidson, then Ms. Clifford’s lawyer, receives a $130,000 wire transfer in his client-trust account at City National Bank in Los Angeles.

Oct. 28, 2016

Mr. Cohen and Ms. Clifford sign a contract that effectively promises Ms. Clifford money in exchange for not talking about the alleged affair with Mr. Trump.

Mr. Trump’s name does not technically appear on the document.

According to a draft amendment to the original contract, which was shared with The New York Times, Ms. Clifford was referred to as “Peggy Peterson.” Mr. Trump was named as “David Dennison” in the document.

Mr. Clifford’s lawyer later contends that in failing to sign the document himself, Mr. Trump rendered the contract null and void.

A close call just before the election

Nov. 4, 2016

The Wall Street Journal publishes an article about a $150,000 deal between the tabloid company American Media and another woman alleging an affair with Mr. Trump, the former Playboy model Karen McDougal, to keep silent during the campaign. That article makes glancing mention of Ms. Clifford, reporting that she was considering sharing her story with ABC News but abruptly disappeared on the network before doing so.

The election is held four days later. The story about Ms. Clifford’s payment does not get any real attention for another 14 months.

The secret deal is secret no more

Jan. 12, 2018

News reports reveal that Mr. Cohen arranged the deal to pay Ms. Clifford $130,000 during the campaign and that a contract amendment identifies Ms. Clifford as Peggy Peterson and Mr. Trump as David Dennison.

Mr. Cohen responds in a statement, “These rumors have circulated time and again since 2011. President Trump once again vehemently denies any such occurrence as has Ms. Daniels,” and forwards a denial from Ms. Clifford. A White House official says, “These are old, recycled reports, which were published and strongly denied before the election.”

Feb. 13, 2018

Mr. Cohen tells The Times that he paid the $130,000 to Ms. Clifford out of his own pocket, adding that neither the Trump Organization nor the Trump campaign reimbursed him.

The implication: Mr. Cohen struck the deal with Ms. Clifford on his own and without the knowledge of the president. The watchdog group Common Cause alleges that Mr. Cohen’s payment was in effect a campaign contribution made to help protect Mr. Trump from negative news toward the end of his campaign; individual donations to candidates were limited to $5,400 per election cycle in 2016.

March 6, 2018

Ms. Clifford files a lawsuit, and reveals that Mr. Cohen took her to arbitration to secure a restraining order to silence her, which her lawyer declares invalid because Mr. Trump never signed the contract.

March 7, 2018

Sarah Huckabee Sanders, the White House press secretary, says, “There was no knowledge of any payments from the president,” adding, “I’ve had conversations with the president about this.” She says, “He has denied all these allegations.”

Cohen: The secret payment was from a home loan

March 9, 2018

Mr. Cohen provides a detailed account of the payment to Ms. Clifford, describing where the money used for the payment came from. “The funds were taken from my home equity line and transferred internally to my L.L.C. account in the same bank,” he said.

Mr. Cohen repeats his statement that he was not reimbursed by either the Trump Organization or the Trump campaign.

Trump denies knowing about the payment: ‘You’ll have to ask Michael Cohen’

April 5, 2018

Reporters on Air Force One ask Mr. Trump if he knew about the payment to Ms. Clifford. He responds, flatly, “No.” Asked why Mr. Cohen made the payment, Mr. Trump says: “You’ll have to ask Michael Cohen. Michael is my attorney.” He says he does not know where the money for the payment came from.

Trump reverses his stance

April 26, 2018

Mr. Trump, in an interview on “Fox & Friends,” acknowledges knowing that Mr. Cohen represented him in dealing with Ms. Clifford. “He represents me, like with this crazy Stormy Daniels deal, he represented me,” he said.

May 2, 2018

Mr. Trump’s new lawyer, former Mayor Rudolph W. Giuliani of New York, tells Sean Hannity of Fox News that the “the president repaid it,” referring to the payment Mr. Cohen made to Ms. Clifford. In fact, he says, “they set up a reimbursement, $35,000 a month.”

Those payments, he says later in interviews, started in early 2017 and ultimately added up to as much as $470,000, which included “incidental expenses.”

In a tweet the next morning, Mr. Trump acknowledges paying Mr. Cohen a monthly retainer. He reiterates that the retainer had nothing to do with his campaign.



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The Legal Issues Raised by the Stormy Daniels Payment, Explained

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In the end, a jury acquitted Mr. Edwards of one charge while deadlocking on the other five, and prosecutors opted not to seek a new trial. Richard L. Hasen, a professor of law at the University of California, Irvine, said that after the Edwards mistrial, federal prosecutors will be reluctant to go forward with similar cases unless they have “documentary proof, a smoking gun, that a payment was in fact election-related.”

What is the argument that the payment was not campaign-related?

In an interview on Thursday on the Fox News program “Fox & Friends,” Mr. Giuliani insisted that the payment was not a campaign contribution. He said Mr. Cohen was trying to help Mr. Trump’s family “to save their marriage — not their marriage so much as their reputation.” But then, muddying that message, Mr. Giuliani said, “Imagine if that came out on Oct. 15, 2016, in the middle of the last debate with Hillary Clinton.” Separately, in an interview with The New York Times, Mr. Giuliani acknowledged that “it could overlap as a campaign problem,” but reiterated that Mr. Trump was not thinking of the payment as a campaign expense.

It could work in Mr. Trump’s favor that he and his lawyers had a long history of using legal avenues to try to fight off damaging claims. That history could form the basis of an argument that Mr. Cohen’s payment to Ms. Clifford — and Mr. Trump’s reimbursement of it — would have happened whether or not he was running for president.

“If this was a first-time candidate without a public reputation, then it would be harder to argue that it wasn’t an expenditure to influence an election,” said Charles Spies, a Republican election lawyer who worked in support of one of Mr. Trump’s rivals, the former Florida governor Jeb Bush, in the 2016 Republican primary. “But Donald Trump has a long record of aggressively defending his reputation from attacks.”



That track record could prove less compelling if the authorities obtain evidence that Mr. Cohen privately discussed the payment in the context of Mr. Trump’s campaign. Last month, federal law enforcement officials in New York raided Mr. Cohen’s office and hotel room, carting away numerous documents and electronic devices that are now the subject of a fight over attorney-client privilege. One of the things they are apparently investigating is the payment to Ms. Clifford.

If the payment was a loan, is Cohen out of trouble?

Not if the loan was intended to influence the election. Campaigns routinely take out large loans from banks when they’re running short of cash ahead of elections. But federal election laws require that those loans come from banks as routine business transactions. Personal loans count as contributions that are still legally capped at the individual contribution limit — even if they are later repaid in full, according to the Federal Election Commission website.

When would this have had to be reported, and by whom?

If the payment were to be deemed campaign-related, the Trump campaign should have disclosed it in its periodic filings with the F.E.C., as soon as Mr. Trump or his campaign learned that Mr. Cohen had made it. If Mr. Trump or his campaign only discovered the payment after the fact, they should have amended their previous filings to reflect the expenditure, and any reimbursements to Mr. Cohen. The Wall Street Journal first reported the $130,000 payment to Ms. Clifford in January, and Mr. Trump has not moved to amend his disclosures.

In an interview with The Times, Mr. Giuliani was vague about key questions concerning what Mr. Trump knew and when he knew it, saying that Mr. Trump “did know that there was a form of reimbursements” to Mr. Cohen over the course of 2017, but maintaining that the president did not know what it was for specifically. Mr. Giuliani also said that some executives at the Trump Organization “knew about the fact that Cohen believes money was owed to him — I don’t know when that came up.”


Might a loan raise non-election-law issues?

Yes. As a government employee, Mr. Trump is also required to report any liabilities in excess of $10,000 on a financial disclosure form filed with the Office of Government Ethics. His 2017 form — which he signed in June, certifying it was “true, complete and correct” — does not list any outstanding loan from Mr. Cohen, campaign-related or otherwise. When he spoke with The Times on Thursday, Mr. Giuliani did not answer why the money was not listed on the president’s financial disclosure form.

What could the penalties be?

When campaign finance violations are punished, they typically result in fines by the Federal Election Commission that are pegged to the size of the unlawful contribution or expenditure. The Justice Department can also prosecute willful violations of election laws, or willful false statements on the federal personal financial disclosure forms, which are felonies and can result in up to five years in prison.

There is little chance that the department would file charges against Mr. Trump, regardless of what the evidence shows, because its Office of Legal Counsel has opined that the Constitution makes sitting presidents immune from prosecution.

But Mr. Cohen, after the raid last month, is under intense legal pressure.


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What Giuliani Said About Cohen’s Payment to Stormy Daniels

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HANNITY: They funneled it through a law firm.

GIULIANI: They funneled through a law firm, and the president repaid it.

HANNITY: Oh. I didn’t know that. He did.

GIULIANI: Yep.

HANNITY: There’s no campaign finance law.

GIULIANI: Zero. Just like every — Sean, Sean —

HANNITY: So this decision was made by —

GIULIANI: Everybody was nervous about this from the very beginning. I wasn’t. I knew how much money Donald Trump put into that campaign, and I said, “$130,000? He could do a couple of checks for $130,000.”

When I heard of Cohen’s retainer for $130,000, he was doing no work for the president. I said, “Well, that’s how he’s repaying it, with a little profit and a little margin for paying taxes for Michael.



HANNITY: But you know the president didn’t know about this?

GIULIANI: Ah, he didn’t know about the specifics of it, as far as I know. But he did know about the general arrangement, that Michael would take care of things like this. Like, I take care of this with my clients. I don’t burden them with every single thing that comes along. These are busy people.

_________

HANNITY: As we continue with President Trump’s attorney, former New York City mayor, Rudy Giuliani, I want to clarify something. Because I was asking you about Perkins Coie and you said that the money was not campaign money — “I’m giving you a fact now that you don’t know, it’s not campaign money, no campaign violation.” And I said, “Because they funneled through a law firm.”

I think we were talking about two different things there. I want to make sure.

GIULIANI: I was talking about the $130,000 payment —

HANNITY: Right.

GIULIANI: The settlement payment, which is a very regular thing for lawyers to do. The question there was, the only possible violation there would be: Was it a campaign finance violation? Which usually results in a fine, by the way, not this big stormtroopers coming in and breaking down his apartment and breaking down his office.


That was money that was paid by his lawyer, the way I would do, out of his law firm funds or whatever funds — it doesn’t matter — and the president reimbursed that over the period of several months.

HANNITY: He had said, I distinctly remember, that he did it on his own —

GIULIANI: He did?

HANNITY: Without asking —

GIULIANI: I don’t know, I haven’t investigated that. No reason to dispute that, no reason to dispute that recollection. I like Michael a lot, you like Michael a lot —

HANNITY: I’ve known him a long time.

GIULIANI: I feel very bad he’s been victimized like this. The president feels even worse. The fact is, just trust me, they’re going to come up with no violations there. Payments are perfectly legal.

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Trump Says Payment to Stormy Daniels Did Not Violate Campaign Laws

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Photo






President Trump backed up a surprising announcement by his lawyer Rudolph W. Giuliani, who said Mr. Trump repaid a $130,000 payment that Michael D. Cohen made to the actress Stephanie Clifford.

Credit
Doug Mills/The New York Times




WASHINGTON — President Trump said on Thursday that he paid a monthly retainer to his former lawyer and fixer, suggesting that a payment to a pornographic film actress was not a campaign contribution — comments that appear to contradict his earlier statements that he knew of no such payment to the actress who says she had an affair with Mr. Trump.

The president continues to deny the affair.

In a pair of Twitter posts Thursday morning, Mr. Trump backed up a surprising announcement that came late on Wednesday by the president’s lawyer, Rudolph W. Giuliani, who said Mr. Trump repaid a $130,000 payment that his former lawyer, Michael D. Cohen, made to the actress Stephanie Clifford just days before the presidential election in 2016. Mr. Giuliani said this removed the question of whether it was a campaign finance violation.



The president’s new statements about the payment and a nondisclosure agreement with Ms. Clifford, who performs under the name Stormy Daniels, potentially signal a shift in strategy for the legal fight with the actress.

Ms. Clifford is suing Mr. Cohen to try to be released from the nondisclosure agreement. Mr. Cohen is under federal investigation for bank fraud, raising concerns in the president’s inner circle that Mr. Cohen will cooperate with the government.

The president’s tweets on Thursday were far more formal that his usual morning messages to the world, which often include words in all capital letters and are punctuated with exclamation points.

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