Donald Trump with Michael Cohen in 2006. (Obtained by The Washington Post)
A critical element in Donald Trump's hush money trial is whether the $420,000 Trump paid to Cohen in twelve $35,000 checks was Cohen's salary or reimbursement for money Cohen paid on behalf of Trump. According to the prosecution, these twelve checks were mostly a reimbursement for money that Cohen had paid to keep porn star Stormy Daniels quiet about her sexual encounter with Trump. The prosecution's proof for explaining the money is a worksheet (Exhibit 35) with handwritten notes by Trump's Chief Financial Officer, Alan Weisselberg.
Michael Cohen, seen here during a break in Donald Trump's civil fraud trial in October 2023. Timothy A. Clary/AFP via Getty Images
This note shows that (A) $130,000 was wired to Keith Davidson Associated on 10/27 (Stormy Daniels' attorneys); (B) $50,000 paid to Red Finch for Technical Services; (C) $180,000 "grossed up" to $360,000; (D) $60,000 for a bonus; and a total of (E) $420,000. Cohen says that he paid Red Finch $20,000 for phony poll results for Trump, although he claimed that these services to Red Finch cost $50,000. In other words, Cohen admitted to stealing $30,000 from Trump. It is also important to note that the prosecution and Cohen maintain that $180,000 is "grossed up" or doubled so that Cohen would not "lose" $90,000 to taxes because Cohen was in the 50 percent tax bracket. The note does not show a $60,000 bonus for Cohen being grossed up, presumably because employers do not pay employee taxes.
Alternatively, Trump's defense team claims that the entire $420,000 represents Cohen's salary for legal services. Their most compelling support for this claim is that it is approximately what his salary was the previous year. There is a severe problem with the defense's argument. If $420,000 is Cohen's salary, then Cohen could not have stolen $30,000. One cannot steal one's salary! Yet, the defense is contradicting their primary defense of Trump.
Alternatively, Trump's defense team claims that the entire $420,000 represents Cohen's salary for legal services. Their most compelling support for this claim is that it is approximately what his salary was the previous year. There is a severe problem with the defense's argument. If $420,000 is Cohen's salary, then Cohen could not have stolen $30,000. One cannot steal one's salary! Yet, the defense is contradicting their primary defense of Trump.