Why Michael Cohen Agreed to Plead Guilty—And Implicate the President

Prosecutors had reams of evidence and a long list of counts, which also could have included the lawyer’s wife

For weeks, the president had been distancing himself from Mr. Cohen, including by stopping paying his longtime attorney’s legal fees, making clear amid the pressure that he was on his own.

Under oath on Tuesday, before a packed courtroom, Mr. Cohen created a spectacular moment without parallel in American history when he confessed to two crimes that he said he committed at the behest of the man who would become president.

..  For the president, it opens up a perilous new legal front.

..  Mr. Trump denied he directed Mr. Cohen to buy the women’s silence. Contradicting earlier statements, the president said he became aware of the payments to the women “later on” and said Mr. Cohen was reimbursed from his personal funds, not his 2016 campaign coffers.

.. On April 5, days before the raids, Mr. Trump told reporters on Air Force One he didn’t know about the payment to Ms. Clifford, and referred questions about the matter to Mr. Cohen. “You’ll have to ask Michael Cohen,” Mr. Trump said. “Michael is my attorney.”

Mr. Cohen, who that night was staying aboard the yacht of Trump donor Franklin Haney, which was docked in Miami, grew irate on the ship soon after Mr. Trump made his remarks distancing himself from the Clifford payment, according to a person familiar with the episode. Mr. Cohen was swearing loudly as others on the boat were sipping their drinks, the person said.

.. Initially, Mr. Cohen seemed unlikely to turn on the president. Although their relationship was at times turbulent, Mr. Trump appreciated Mr. Cohen’s absolute loyalty. On the day of the raids, Mr. Trump called the move a “disgrace” and a “witch hunt.”

Soon after the April raids, Mr. Cohen’s relationship with Mr. Trump began to deteriorate.

The estrangement began over legal bills, said a person who has spoken with Mr. Cohen about the matter. The Trump family covered part of Mr. Cohen’s legal fees after the raids, but then stopped paying.

Mr. Cohen felt exposed. Public comments by Rudy Giuliani, Mr. Trump’s lawyer, put distance between the president and Mr. Cohen and further alienated the attorney, the person said.

Mr. Cohen told associates and friends he felt Mr. Trump didn’t have his back and vented that the president hadn’t personally offered to pay his legal bills in the Manhattan investigation, which he said were “bankrupting” him.
.. By then, prosecutors and the Internal Revenue Service had focused on Mr. Cohen’s personal income taxes. In conversations with a potential witness in June and July, investigators asked “very pointed” questions about various tax filings, according to a person familiar with the conversations.

“They knew what they wanted, they knew what they had, and they went after it,” the person said.

In late June, Mr. Cohen openly broke with Mr. Trump.

.. Mr. Cohen’s father urged him not to protect the president, saying he didn’t survive the Holocaust to have his name sullied by Mr. Trump
.. On June 20, Mr. Cohen stepped down from his position as the Republican National Committee’s deputy finance chairman and tweeted his first public criticism of his former boss: “As the son of a Polish holocaust survivor, the images and sounds of this family separation policy [are] heart wrenching.” The tweet no longer appears on Mr. Cohen’s Twitter account.
.. In July, a recording became public that Mr. Cohen surreptitiously made of a conversation he had with Mr. Trump in September 2016 about buying the rights to Ms. McDougal’s story. The president has denied the affair.The president’s legal team had waived attorney-client privilege on the recording, which had been seized in the April 9 raids.

.. Given the Justice Department’s policy of not indicting sitting presidents, a guilty plea from Mr. Cohen and his public implication of Mr. Trump were among the strongest outcomes prosecutors could have hoped for

.. For prosecutors, the guilty plea meant they could avoid a contentious trial and free up resources to pursue other investigations.
.. one of Mr. Cohen’s lawyers, Lanny Davis, appeared on cable news shows to say Mr. Cohen wouldn’t accept a pardon from Mr. Trump and “is more than happy to tell the special counsel all that he knows.”

McGahn, White House Counsel, Has Cooperated Extensively in Mueller Inquiry

The White House counsel, Donald F. McGahn II, has cooperated extensively in the special counsel investigation, sharing detailed accounts about the episodes at the heart of the inquiry into whether President Trump obstructed justice, including some that investigators would not have learned of otherwise, according to a dozen current and former White House officials and others briefed on the matter.1

In at least three voluntary interviews with investigators that totaled 30 hours over the past nine months, Mr. McGahn described the president’s fury toward the Russia investigation and the ways in which he urged Mr. McGahn to respond to it

.. It is not clear that Mr. Trump appreciates the extent to which Mr. McGahn has cooperated with the special counsel. The president wrongly believed that Mr. McGahn would act as a personal lawyer would for clients and solely defend his interests to investigators

..  Mr. McGahn cautioned to investigators that he never saw Mr. Trump go beyond his legal authorities, though the limits of executive power are murky.

.. the two rarely speak one on one — the White House chief of staff, John F. Kelly, and other advisers are usually present for their meetings — and Mr. Trump has questioned Mr. McGahn’s loyalty.

.. Mr. McGahn that he has called the president “King Kong” behind his back, to connote his volcanic anger, people close to Mr. McGahn said.

.. Mr. Burck said that Mr. McGahn had been obliged to cooperate with the special counsel. “President Trump, through counsel, declined to assert any privilege over Mr. McGahn’s testimony

.. He wanted to take on Mr. Mueller directly, attacking his credibility and impeding investigators. But two of his newly hired lawyers, John M. Dowd and Ty Cobb, have said they took Mr. Trump at his word that he did nothing wrong and sold him on an open-book strategy.

.. As White House counsel, not a personal lawyer, he viewed his role as protector of the presidency, not of Mr. Trump. Allowing a special counsel to root around the West Wing could set a precedent harmful to future administrations.

..  Mr. Trump blamed him for a number of fraught moments in his first months in office, including the chaotic, failed early attempts at a ban on travelers from some majority-Muslim countries and, in particular, the existence of Mr. Mueller’s investigation.

.. Mr. McGahn’s decision to cooperate with the special counsel grew out of Mr. Dowd’s and Mr. Cobb’s game plan, now seen as misguided by some close to the president.

.. Last fall, Mr. Mueller’s office asked to interview Mr. McGahn. To the surprise of the White House Counsel’s Office, Mr. Trump and his lawyers signaled that they had no objection, without knowing the extent of what Mr. McGahn was going to tell investigators.

Mr. McGahn was stunned

.. Mr. Burck has explained to others that he told White House advisers that they did not appreciate the president’s legal exposure and that it was “insane” that Mr. Trump did not fight a McGahn interview in court.

..  the White House has to understand that a client like Mr. Trump probably made politically damaging statements to Mr. McGahn as he weighed whether to intervene in the Russia investigation.

.. Mr. McGahn and his lawyer grew suspicious. They began telling associates that they had concluded that the president had decided to let Mr. McGahn take the fall for decisions that could be construed as obstruction of justice, like the Comey firing, by telling the special counsel that he was only following shoddy legal advice from Mr. McGahn.

.. McGahn told people he was determined to avoid the fate of the White House counsel for President Richard M. Nixon, John W. Dean, who pleaded guilty to conspiracy to obstruct justice in the Watergate scandal.

Mr. McGahn decided to fully cooperate with Mr. Mueller. It was, he believed, the only choice he had to protect himself.

.. “This sure has echoes of Richard Nixon’s White House counsel, John Dean, who in 1973 feared that Nixon was setting him up as a fall guy for Watergate and secretly gave investigators crucial help while still in his job,” said the historian Michael Beschloss.

.. By exerting attorney-client privilege, which allows the president to legally withhold information, they would have gained the right to learn what Mr. McGahn planned to tell investigators and what he might reveal that could damage the president. But the president’s lawyers never went through that process, although they told people that they believed they still had the ability to stop Mr. Mueller from handing over to Congress the accounts of witnesses like Mr. McGahn and others.

.. Mr. Burck and Mr. McGahn met the special counsel team in November for the first time and shared all that Mr. McGahn knew.

.. Mr. McGahn gave to Mr. Mueller’s investigators, the people said,

.. it became apparent that Mr. McGahn and Mr. Burck had overestimated the amount of thought that they believed the president put into his legal strategy

 

 

Stormy Daniels’s Lawyer Michael Avenatti Complicates Michael Cohen Probe

A lawyer for former adult-film star Stephanie Clifford has frustrated efforts by federal prosecutors to obtain information about a hush-money deal involving President Donald Trump’s personal lawyer, according to people familiar with the matter.

.. But behind the scenes, Mr. Avenatti has slowed prosecutors’ efforts to discuss the nondisclosure agreement with Ms. Clifford’s former lawyer, these people say. Mr. Avenatti also demanded to review documents investigators subpoenaed from Ms. Clifford’s former manager, they said.

.. Mr. Avenatti hasn’t yet acted on multiple requests from federal prosecutors in Manhattan for Ms. Clifford to waive the attorney-client privilege that prevents her former lawyer from discussing their communications about the nondisclosure deal
..  Mr. Avenatti tried to block Ms. Rodriguez from providing her communications with Ms. Clifford to federal prosecutors until he had reviewed them, other people familiar with the matter said.
.. Mr. Avenatti has told federal prosecutors he is trying to get Ms. Clifford to agree to waive her attorney-client privilege, but prosecutors have come to believe he is stringing them along
.. The delays in responding to their requests to waive privilege aren’t seen as highly damaging to the probe but have frustrated investigators
.. while the situation involving Ms. Clifford is unusual, lawyers in general are reluctant to give up attorney-client protections.

What President Trump doesn’t understand about attorney-client privilege

Cohen said he acted on his own in paying Clifford. Trump agreed, saying he didn’t know about the payment. In this case, Cohen was not acting as Trump’s attorney in the transaction, and there is no attorney-client relationship since, according to the president, there are no communications in which he sought legal advice. Trump has essentially waived the attorney-client protection on this issue. Moreover, if any of the materials obtained were used in furtherance of a crime, they are subject to a crime-fraud exception to the attorney-client privilege.

His conviction that it was still in play, however, is probably a consequence of the way he and other affluent figures have long used attorney-client privilege as a preemptive shield. Whether they realize prosecutors have ways to navigate the attorney-client privilege, they know that getting around it is never easy.

.. This presumption of privilege can give cover to criminal actors. Well-heeled criminals often include attorneys in their illicit communications to shield their activity from discovery. Conversely, people who are familiar with the privilege often assume it’s stronger than it really is: Former White House aide Hope Hicks reportedly alarmed Mark Corallo, former spokesman for Trump’s legal team, when she made a potentially compromising statement without a lawyer present and thus — in Corallo’s view — unprotected by the attorney-client privilege. The mere presence of a lawyer would not, in practice, have made the conversation legally privileged. Nevertheless, Corallo’s assumption that it could have shielded the comment from discovery speaks to the way Trump and his ilk have attempted to take advantage of attorney-client privilege.