Done With Michael Cohen, Federal Prosecutors Shift Focus to Trump Family Business – The New York Times

Mr. Trump lashed out at Mr. Cohen on Twitter in recent days, saying, “He lied for this outcome and should, in my opinion, serve a full and complete sentence.”

One of the campaign finance charges Mr. Cohen pleaded guilty to centered on Mr. Cohen’s paying $130,000 to the adult film actress Stormy Daniels, who said she had an affair with Mr. Trump. The payment amounted to an excessive contribution to Mr. Trump’s campaign, prosecutors said, arguing that her silence helped his election chances and that campaign finance law prohibits individuals from donating more than $2,700 to a presidential candidate in the general election.

Mr. Cohen also pleaded guilty to “causing” an illegal corporate donation to Mr. Trump when he urged American Media Inc., which publishes The National Enquirer, to buy the rights to a former Playboy model’s story of an affair with Mr. Trump. The deal effectively silenced the model, Karen McDougal, for the remainder of the campaign.

Mr. Cohen has also told the Southern District that Mr. Weisselberg, who is one of Mr. Trump’s longtime loyalists, was involved in discussions about how to pay Ms. Daniels, according to a person briefed on the matter. Mr. Cohen linked him to the deal with American Media as well.

During the campaign, Mr. Cohen recorded a conversation he had with Mr. Trump about buying the rights to negative information American Media had collected on Mr. Trump. Mr. Cohen told Mr. Trump, who did not know he was being recorded, that “I’ve spoken to Allen Weisselberg about how to set the whole thing up.” The deal was signed by American Media and Mr. Cohen, according to court papers. But a person familiar with the arrangement said that Mr. Trump balked at reimbursing America Media, as had been agreed to, and the media company was never reimbursed in relation to Ms. McDougal.

But after the campaign, Mr. Weisselberg handled reimbursing Mr. Cohen for the payment to Ms. Daniels, according to people briefed on the matter. In early 2017, Mr. Cohen sought to recoup the $130,000 he paid out of his own pocket to Ms. Daniels as well as $50,000 he spent on a technology company in connection with the campaign, prosecutors have said.

Not only did the Trump Organization repay those expenses, but it agreed to pay taxes Mr. Cohen might have incurred on the reimbursements. This decision to “gross up” Mr. Cohen went against the Trump Organization’s typical reimbursement practices, people briefed on the matter said.