Trump Lawyer Michael Cohen Used the Same Delaware Company for Payment Deals to Two Women

Federal probe looks closely at money flowing in and out of Essential Consultants

Venture capitalist Elliott Broidy paid an initial installment of $62,500 to the company, Essential Consultants LLC, as part of Mr. Cohen’s $250,000 total fee for negotiating a nondisclosure agreement related to Mr. Broidy’s affair

.. The magazine, then owned by Wenner Media, had what staffers believed to be a solid source on the alleged affair by the younger Mr. Trump and called the Trump Organization for comment, according to the people involved in the matter. They received a call back from Mr. Cohen, who threatened legal action and became so irate that they muted the call while he spoke, one of these people said.

“We were all on speakerphone and huddled around the phone,” this person said. “He was just one of these New York characters where he was just like swearing at us and totally over-the-top threatening.”

The magazine’s staff didn’t believe it was a big story that would be worth a legal fight and had a good working relationship with the elder Mr. Trump on stories related to the TV show “The Apprentice,” so they dropped the story.

The Real Investigation

If there had been anything criminal to that storyline, the politicized anti-Trump factions in the intelligence and law-enforcement agencies would have leaked it.

.. the administration has taken enough aggressive steps against Russia that it is past time for the Kremlin to broadcast the big kompromat file if it exists.

.. But as long as a president’s actions — e.g., firing the FBI director, discussing the possibility of pardons — are on their face legal and within his legitimate constitutional authority, I do not believe they can validly predicate an obstruction prosecution.

.. I believe that the government is investigating whether there was, in connection with Trump’s White House bid, a conspiracy to commit fraud and extortion for the purpose of silencing potentially compromising sources — specifically, people in a position to portray Donald Trump as a womanizer.

.. Clearly, the prosecutors regard Trump and Cohen as potential co-conspirators. That does not mean a conspiracy will be proven, but the possibility is certainly being scrutinized.

.. Various reports also indicate that a former Trump-building doorman named Dino Sajudin was paid $30,000 to stay silent about an unverified claim that, nearly 30 years ago, Trump fathered a child out of wedlock with a young Trump Organization employee.

.. But there are twists to the known NDAs — not least, the remarkable coincidence that the same Los Angeles–based lawyer, Keith Davidson, turns up representing each of the muzzled women.

.. Clifford worked through her manager, a former porn actress, Gina Rodriguez, whom she met through the latter’s husband

.. Cohen also allegedly called Rodriguez, whose husband, Deuschle, answered the phone. He recalls that Cohen warned him, “You tell Gina if she ever wants to work in this business again then she needs to call me immediately.”

.. Clifford explains that the fake names, coupled with the fact that Trump himself did not sign the document, were intended to enable Trump falsely to deny knowledge of the arrangement.
.. When the Journal learned of the agreement in January 2017 and began sniffing around, Clifford signed a statement denying that the sexual encounter had occurred. She now says Cohen used “intimidation and coercive tactics” to induce her signature.
.. McDougal decided to tell her story in May 2016 — when Trump was plowing through the GOP primaries.
.. Through a mutual friend, she found Davidson, who told her that a deal with AMI could result in a “seven-figure publishing contract” with an initial $500,000 payment in an escrow account. But after an AMI official interviewed her extensively, the company initially declined to buy the story and Davidson confessed that there was no escrow money. AMI explains that it chose not to publish the story because it could not be verified, but concedes discussing McDougal’s allegations with Cohen “as part of its reporting process.”
.. Weeks later, though, when McDougal was in negotiations with ABC News, Davidson informed her that AMI had a new proposal: AMI would buy her story but not publish it owing to Pecker’s relationship with Trump. The company would pay $150,000 (a sizable chunk of which went to Davidson).
.. The deal was especially attractive to the model-turned-fitness-instructor because she was additionally promised that AMI would run her fitness columns and feature her on at least two publication covers.
.. Interestingly, just yesterday, the Wall Street Journal broke news about another NDA cobbled together by Cohen and Davidson. Turns out that in late 2017, Cohen negotiated a $1.6 million hush-money pay-off by his client, Elliott Broidy, a top Republican fundraiser with close ties to Trump.
.. The silenced beneficiary of the NDA is a different, currently unidentified former Playboy model, who became pregnant during an extramarital affair with Broidy. The model, who apparently terminated the pregnancy, was represented by Davidson. And here’s a coincidence for you: The NDA is rife with pseudonyms. Broidy and the model are referred to, respectively, as “David Dennison” and “Peggy Peterson,” the same names used in the Trump–Clifford NDA.
.. If that’s not enough camouflage, the lawyers have phony names, too — Cohen is listed as “Dennis Donohue,” and Davidson as “Paul Patterson.” Cute, no?
.. the only thing protected in a lawyer’s office are attorney–client communications and work product.
If Cohen had incriminating items unrelated to attorney work in his office, being a lawyer does not shield him from liability.
Furthermore, if there is no attorney–client relationship on a particular matter, there is no privilege
.. Trump and Cohen both say that Cohen did not tell Trump about the Clifford arrangement. Sounds implausible, but on
its face it means there was no attorney–client relationship regarding that transaction.
.. More important, if a lawyer is involved with a client in a criminal conspiracy, the crime-fraud exception to the attorney–client privilege strips their communications of privileged status. It seems evident that prosecutors are investigating on the theory that Clifford, McDougal, and perhaps others were defrauded or extorted into silence. The fact that they accepted money does not foreclose the possibility that their agreement to remain silent was procured, in part, by trickery or threats.

Trump Sees Inquiry Into Cohen as Greater Threat Than Mueller

President Trump’s advisers have concluded that a wide-ranging corruption investigation into his personal lawyer poses a greater and more imminent threat to the president than even the special counsel’s investigation, according to several people close to Mr. Trump.

.. Mr. Trump found himself increasingly isolated in mounting a response. He continued to struggle to hire a new criminal lawyer, and some of his own aides were reluctant to advise him about a response for fear of being dragged into a criminal investigation themselves.

.. In addition to searching his home, office and hotel room, F.B.I. agents seized material from Mr. Cohen’s cellphones, tablet, laptop and safe deposit box

.. Prosecutors revealed in court documents that they had already secretly obtained many of Mr. Cohen’s emails.

Mr. Trump called Mr. Cohen on Friday to “check in,” according to two people briefed on the call. Depending on what else was discussed, the call could be problematic, as lawyers typically advise their clients against discussing investigations.

.. The lawyers fear that Mr. Cohen will not be forthcoming with them about what was in his files, leaving them girding for the unknown.

.. Mr. Cohen argued that he or an independent lawyer should be allowed to review the documents first.

.. Joanna C. Hendon, a lawyer for Mr. Trump, said in court. “I’m not trying to delay. I’m just trying to ensure that it’s done scrupulously.”

Mr. Cohen’s lawyer, Stephen Ryan, wrote in a court filing that the search “creates constitutional concerns regarding officers of the executive branch rummaging through the private and privileged papers of the president.”

.. Prosecutors argued that the previously seized emails revealed that Mr. Cohen was “performing little to no legal work, and that zero emails were exchanged with President Trump.” They said their investigation was focused on Mr. Cohen’s business dealings, not his work as a lawyer.

.. And the New York search warrant makes clear that the authorities are interested in his unofficial role in the campaign.

.. Prosecutors demanded all communication with the campaign — and in particular two advisers, Corey Lewandowski and Hope Hicks

.. Mr. Cohen had secretly made, but he told people in recent days that he did not tape his conversations with Mr. Trump. Mr. Cohen frequently taped conversations with adversaries and opposing lawyers

.. Trump has considered firing Mr. Mueller, Attorney General Jeff Sessions and the deputy attorney general, Rod J. Rosenstein.

.. prosecutors said they had found evidence of fraud and a “lack of truthfulness”

.. Mr. Trump has viewed any investigation of his business and private life to be off limits to prosecutors, but the search warrants make clear that investigators consider those topics part of their case.

Trump’s allies worry that federal investigators may have seized recordings made by his attorney

President Trump’s personal attorney Michael D. Cohen sometimes taped conversations with associates, according to three people familiar with his practice, and allies of the president are worried that the recordings were seized by federal investigators in a raid of Cohen’s office and residences this week.

.. Investigators were also looking for any records related to adult-film star Stormy Daniels and ex-Playboy model Karen McDougal, who both received payments after alleged affairs with Trump.

.. Legal experts said Cohen’s taped conversations would be viewed by prosecutors as highly valuable.

“If you are looking for evidence, you can’t do any better than people talking on tape,” said Nick Akerman, a former Watergate prosecutor.

Such recordings “would be considered a gold mine,” said Stephen Gillers, a law professor at New York University who specializes in legal ethics.

“The significance is 9.5 to 10 on a 10-point scale,” he added, noting that investigators know “that when people speak on the phone, they are not guarded. They don’t imagine that the conversation will surface.”

Federal investigators would not automatically get access to any tapes that might have been seized in the raids. First, the recordings would be reviewed by a separate Justice Department team and possibly by a federal judge.

.. Cohen wanted his business calls on tape so he could use them later as leverage, one person said. Cohen frequently noted that under New York law, only one party had to consent to the taping of a conversation, this person added.

During the 2016 race, Cohen — who did not have a formal role on the campaign — had a reputation among campaign staff as someone to avoid, in part because he was believed to be secretly taping conversations.

.. One outside Trump adviser said Cohen may have begun recording his conversations in an attempt to emulate his boss, who has long boasted — often with no evidence — about secretly taping private conversations.

.. “Back in the early 2000s, Trump used to tell me all the time that he was recording me when I covered him as reporter for the New York Times,” O’Brien wrote.

.. But after Trump sued him for libel shortly after his biography came out, O’Brien’s lawyers deposed Trump in December 2007 — during which Trump admitted he had not, in fact, clandestinely taped O’Brien.

“I’m not equipped to tape-record,” Trump said in the deposition. “I may have said it once or twice to him just to — on the telephone, because everything I said to him he’d write incorrectly; so just to try and keep it honest.”