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Ex-Trump lawyer pleads guilty, implicates Trump in hush-money scheme

Updated: 2018-08-22 05:09
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US President Donald Trump's former lawyer, Michael Cohen, leaves the Daniel Patrick Moynihan United States Court House in lower Manhattan, New York City, US August 21, 2018.[Photo/Agencies]

Trump denied to reporters in April that he knew anything about Cohen's payments to Daniels, but the explanations from him and Giuliani have shifted multiple times since.

The president has fumed publicly about the raid, branding it "a witch hunt," an assault on attorney-client privilege and a politically motivated attack by enemies in the FBI. But privately he has worried about what information Cohen may have after working for the Trump Organization for a decade.

"Obviously it's not good for Trump," Sol Wisenberg, who conducted grand jury questioning of President Bill Clinton during the Whitewater investigation, said of the plea bargain.

"I'm assuming he's not going to be indicted because he's a sitting president, Wisenberg added. "But it leads him closer to ultimate impeachment proceedings, particularly if the Democrats take back the House."

The Justice Department's Office of Legal Counsel has held that a president cannot be indicted while in office. Trump's lawyers have said that Mueller plans to adhere to that guidance, though Mueller's office has never confirmed that.

There would presumably be no bar against charging a president after he leaves the White House.

Daniels said Tuesday that she and her lawyer, Michael Avenatti, feel vindicated and look forward to apologies "from the people who claimed we were wrong."

Nothing made public so far indicates Cohen has agreed to cooperate with prosecutors, but Avenatti said he is certain that is happening.

Mueller's team, which is looking into Russian interference in the presidential election, came across some of the evidence against Cohen in the course of its investigation and referred the matter to federal prosecutors in New York.

Deputy US Attorney Robert Khuzami said that in addition to the campaign finance violations, Cohen failed to report more than $4 million in income between 2012 and 2016, including $1.3 million from his taxi medallion holdings.

Cohen also lied to a financial institution by failing to disclose more than $14 million in debt and obtaining a $500,000 home equity line of credit he wasn't entitled to, Khuzami said. Cohen used that credit line to fund the Daniels payment, prosecutors said.

After making the hush money payments, Cohen submitted phony invoices to Trump's company, ostensibly for services rendered in 2017, the prosecutor said.

"Those involves were a sham," Khuzami said. "He provided no legal services for the year 2017. It was simply a means to obtain reimbursement for the unlawful contributions."

Before the election, Cohen had been a trusted member of the Trump organization, working out of an office in Trump Tower next to one used by his boss. He raised millions for Trump's campaign.

The president's initial support for Cohen after the raid soon degenerated into a public feud, with Cohen hinting he might cut a deal with prosecutors.

When Cohen's team produced a recording he had made of Trump discussing one of the hush-money payments, Trump tweeted: "What kind of lawyer would tape a client? So sad!"

AP

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