TRUMP`S LAWYER CHARGED WITH FRAUD
There is an old adage that states that you are what
your close friends are. If they are crooks, it follows then that you are also a
crook.
Michael
Dean Cohen, age 52 at the time of the publishing of this article is an American
attorney who worked as a lawyer for Donald Trump from 2006 until the
termination of his employment in May 2018, a month after a federal
investigation against Cohen began.
Federal officials homed in on more than $20 million
in loans obtained by a taxi businesses owned by Cohen and his family as part of
an ongoing investigation into possible bank fraud committed by them.
Federal authorities were investigating whether President Trump’s former
personal lawyer and fixer of problems facing Trump , committed bank and tax
fraud zeroed in on well over $20 million in loans obtained by taxi businesses
that he and his family own. Of course,
he isn`t the first lawyer to be accused of wrongdoings. Thousands of them have
been convicted of crimes.
Investigators were also investigating
Cohen as to whether or not he violated
campaign finance or other laws by helping to arrange financial deals to secure
the silence of women who said they had affairs with the president. The inquiry had entered the final stage and
prosecutors were considering filing charges by the end of August which in fact,
they did.
Any criminal charges
against Mr. Cohen dealt a significant blow to the president. Mr. Cohen had
worked for the president’s company, called the Trump Organization, for more
than a decade. He was one of Mr. Trump’s most loyal and visible aides and later
called himself the president’s personal lawyer after Mr. Trump took office.
The bank loans under scrutiny, the total of which has not been
previously reported, came from two financial institutions in the New York
region that have catered on the taxi industry, Sterling National Bank and the
Melrose Credit Union, according to business records and people with knowledge
of the matter, including a banker who reviewed the transactions.
Federal investigators in
New York were seeking to determine whether Mr. Cohen misrepresented the value
of his assets to obtain the loans, which exceed $20 million.
They were also examining
how he handled the income from his taxi medallions and whether he failed to
report it to the Internal Revenue Service. Taxis in New York City are painted canary
yellow and referred to as medallion
taxis.
The two lenders were cited
in the search warrants for raids that federal agents conducted this spring on
Mr. Cohen’s office, home and a hotel room where he was staying.
A grand jury subpoena was
sought and given seeking records related to the loans.
There is no indication that either bank suffered a loss as a result of
the loans or that Cohen missed payments, which are ordinarily important aspects
in a bank fraud case. While bank fraud without a loss is rarely charged on its
own, it is sometimes charged in conjunction with other crimes, which is what
happened in Cohen’s case.
At this late stage of the
inquiry, it was still possible that Cohen would plead guilty which he did rather
than face an indictment. He hinted publicly and stated explicitly in private
that he is eager to tell prosecutors what he knows in exchange for leniency.
A cooperation agreement
would likely include a provision that Mr. Cohen also provide information to the
special counsel, Robert Mueller, who is investigating possible involvement by
the Trump campaign in Russia’s meddling in the 2016 election.
It is unclear whether the
prosecutors and Mr. Cohen’s lawyers had detailed discussions about a potential
cooperation deal, but it is unlikely that the government would bring charges
without having done so.
But if a plea deal was not
reached, either because Cohen and prosecutors couldn`t agree on the terms or
because prosecutors determined he does not have valuable information or is not
credible, the government would likely would have sought to bring charges well
before the midterm elections.
If the matter was not
finalized by the end of August, prosecutors probably would have to deal with
that issue until after the election. That schedule would conform with the
Justice Department’s informal policy of avoiding bringing politically sensitive
cases that could influence voters close to an election.
The investigation into Mr. Cohen burst into public view on April ninth of
this year when federal
authorities searched his home, office and the hotel room, a move
that sent a seismic wave through Washington and rattled Mr. Trump’s inner
circle.
The investigation began
under Mr. Mueller`s inquiry who then
referred the evidence to the United States attorney’s office in Manhattan. That
office then lead the inquiry along with the F.B.I. and I.R.S., which also
conducted an extensive review of Cohen’s personal business activities.
Days after the search, Mr.
Cohen went to court in an attempt to limit the evidence prosecutors could
review, claiming much of what was seized was covered by attorney-client
privilege. Trump joined the effort to stop the investigation with respect to
the dealings beyween Trump and Coen.
During that litigation,
prosecutors revealed that they had been investigating Cohen for fraud for
“months” and had previously obtained a search warrant for his email accounts.
Mr. Trump railed against
the investigation on Twitter and complained that “attorney-client
privilege is dead.” His lawyer, Rudolph W. Giuliani, referred to the
agents who carried out the
searches as “storm troopers.” The normally combative Cohen, for his
part, told an interviewer that they were “were extremely professional,
courteous and respectful.”
At the time, some of
Trump’s advisers came to view the investigation into Mr. Cohen as more
dangerous to the Trump presidency than Mr. Mueller’s inquiry.
In recent decades, Mr. Cohen has had a wide range of personal business
interests, in addition to his work for the Trump Organization. He was a real
estate investor, had a personal injury law practice and was involved with a
gambling boat in Florida.
But federal investigators appear to be especially focused on his work as
an investor in taxi medallions that the permits that drivers need to legally
operate yellow cabs in New York City.
Cohen pleaded guilty to violating federal campaign
finance laws and has implicated Trump. Here is how their relationship has
evolved.
A review of court filings, business and
property records and interviews with people with knowledge of the matter has
provided the clearest picture to date of the scope of that inquiry.
The search warrants for the
Cohen raids sought records and communications relating to the two financial
institutions, Sterling National Bank and the Melrose Credit Union, as well as
documents regarding the payments to women who said they had affairs with Mr.
Trump, among other materials, several people with knowledge of the inquiry have
said.
The investigation into
possible bank fraud has focused at least in part on a series of loans for more
than $20 million that the two institutions made in December 2014, according to
a review of business records and interviews with people with knowledge of the
matter.
Publicly filed financing
statements indicate that Mr. Cohen used 32 taxi medallions as collateral for
the Sterling loans. The medallions were then valued at more than $1 million
each, and generated more than $1 million a year in income.
The loans were made to 16
separate companies controlled by Cohen and his family, each company owning two
taxi medallions, the person who reviewed the transactions said. Mr. Cohen and
his wife also personally guaranteed the loans, according to the filings.
The tax fraud aspect of the investigation hadbeen focused in part on
whether Mr. Cohen properly reported the income from the medallions, which was
sometimes in cash.
One witness who provided
evidence about the possible bank and tax fraud was Evgeny Freidman, Mr. Cohen’s
long-time friend and former business associate who began cooperating with
federal prosecutors this spring.
Mr. Freidman, known as the
Taxi King for his once vast and long-time holdings in that industry, managed
taxi medallions owned by Cohen and his family between 2012 and 2018. In 2016, a
federal judge found that Freidman, a lawyer who was disbarred earlier this
year, had transferred more than $60 million into offshore trusts to avoid
paying debts. New York City regulators have also barred him from continuing to
manage medallions.
Mr. Freidman was facing up
to 25 years in prison in an unrelated state fraud case in Albany involving his
taxi business. But he struck a deal with state prosecutors under which he
avoided prison in return for cooperating with federal authorities investigating
Cohen.
Several people with
knowledge of the matter have said investigators were focusing, in part, on
precisely what was done with the monthly payments of the income from the taxi
medallions that Freidman made to Cohen, what representations Cohen made to the
banks about those payments, and whether they were reported on Cohen’s taxes.
Freidman’s lawyer, Patrick
J. Egan, said on Friday, “It would be against Mr. Freidman’s interest to make a
public statement regarding an ongoing criminal investigation.” He was right on
that point.
A Long Island accountant who worked for Cohen and Freidman could also
provide testimony about the payments, according to several people with
knowledge of the matter. The accountant, Jeffrey Getzel, has testified before
the grand jury hearing evidence against Cohen
It was previously unclear
whether prosecutors might seek to charge Cohen with conduct related to the
presidential campaign or his work for Trump if he meets with Mueller.
Legal experts have said
that the payments to two women who said they had affairs with Trump could become
part of a campaign finance case. Neither woman, after being paid, spoke
publicly about Trump in the weeks before his election as president.
One of Cohen’s lawyers,
Lanny J. Davis, revealed a possible piece of evidence for such a case
when he
released a recording of a September 2016 conversation Cohen had
with Mr. Trump. On the recording, they discussed a $150,000 deal the tabloid
publisher American Media Inc. struck with one of the women, the former Playboy
model Karen McDougal.
The audio was not protected
by attorney-client privilege, and Mr. Davis said at the time he released it to
contradict a claim that Mr. Giuliani made about what Cohen had said on the recording.
The company, which
publishes The National Enquirer,
bought the rights to her story and declined to publish it, a practice known in
the tabloid industry as “catch and kill.”
Prosecutors have examined whether
Cohen planned the payment in conjunction with A.M.I. to protect Trump’s
election prospects, and they could use the recording as part of the basis for
charges that the dealt with an illegal campaign contribution or weather there was a conspiracy to make an illegal
contribution.
Corporations are prohibited from spending money to influence campaigns
in coordination with candidates.
Prosecutors could also determine
that it was improper that a $130,000 payment to the adult film actress,
Stephanie Clifford, better known by her stage name of Stormy Daniels was made
to her. If so, it was to keep her quite about her supposed sexual affair with
Trump.
Mr. Cohen paid Ms. Clifford
out of his own pocket, and although reimbursed
him many months later, the initial outlay could also count as an
illegal contribution to Mr. Trump’s candidacy, several legal experts have said. Federal campaign finance laws
prohibit individuals from donating more than $5,400 per election cycle to a
federal candidate.
With the release of the
recording, Cohen and his attorneys seemed to be signaling a willingness to
cooperate with the federal prosecutors in Manhattan. Mr. Davis who is a
long-time supporter of Bill and Hillary Clinton, has said that the
tape was released because Cohen is “on a new path — it’s a reset button to tell
the truth and to let the chips fall where they may.”
Mr. Cohen, who once said
that he would “take a bullet” for Trump and also hinted he might help
prosecutors during an interview on Good
Morning America in July, saying “I put family and country first.” It is
obvious that he wouldn`t even “take a pea” out of a pea shooter for Trump.
Cohen as promised; has met
with Mueller staff several times and he has told them that Trump instructed him
to pay off Stormy Daniels to keep her silent about her affair with Trump. That
means that Trump also broke the law with respect to using campaign funds to
repay Cohen after Cohen used his own money to pay the woman.
“To be crystal clear,” he added, “my wife, my daughter and my son, and
this country, have my first loyalties. There
isn’t anything wrong with his first loyalty being to his family. I learned that
when I was a child. However, many people have given their lives for their
country. Both decisions are honourable decisions.
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