Lisa Rubin Profile picture
Oct 11, 2023 14 tweets 3 min read Read on X
We learned yesterday that Allen Weisselberg's severance agreement will ultimately pay him $2 million by 12/31/24 if he fully complies. What I didn't appreciate is what he promised in return: 1/ Image
To some extent, it's not atypical to require an employee to promise not to assist with others' claims. The problem here is context--and timing. 2/
Let's start with the fact that while Weisselberg left the company at the end of 2022 and the agreement contemplated his completing his work in good faith before that date, it wasn't executed by him until the literal eve of his Jan. 10, 2023 sentencing. 3/
And it wasn't signed by Alan Garten, the Trump organization's chief legal officer, until Jan. 12, two days after Weisselberg entered Rikers. 4/
What's more, according to the payment schedule appended to the agreement, the Trump Org. did not start paying him until Mar. 31, 2023, well into his prison sentence and certainly *after* reports that the Manhattan DA was still investigating Weisselberg for insurance fraud. 5/ Image
Now let's go back to *his* severance obligations. They include cooperating in an investigation or litigation against the company or Trumps by meeting with them in connection with "discovery or pretrial issues" and providing "truthful testimony on behalf of Releasees." 6/
That means he was likely obligated to meet with them before his trial testimony. 7/
The severance agreement also entitles Weisselberg to be indemnified for any reasonable attorney's fees in any legal matter against him or the company--but there's some big catches. 8/
He can't hire a lawyer without the company's prior approval, and "to the extent there is no direct conflict of interest and at the election of the Company, [Weisselberg] shall be jointly represented by counsel for the Company." 9/
Put another way, if he wants his own fees paid, they get to decide who represents him and even force their own lawyers on him. 10/
But, of course, all of this pales in comparison to Weisselberg's commitment that except where forced by subpoena or other court-ordered process, he won't give information to anyone else with claims against the company and/or anyone he individually released (e.g., Trump)...11/
or "take any action to induce, encourage, instigate, aid, abet or otherwise cause" any person or entity "to bring or file a complaint, charge, lawsuit or other proceeding of any kind against the Company or any person or entity released by this Agreement." 12/
Read broadly, the agreement precludes Weisselberg from voluntarily cooperating with any law enforcement or prosecutorial agency in exchange for lenience as to other crimes for which he could be under investigation and/or ultimately charged. 13/
And yes, that might be the definition of unenforceable as a matter of public policy. But if you're Weisselberg, what incentive do you have to test that proposition when you have $2 million in severance, payable even if you die, riding on it? None. FIN.

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More from @lawofruby

May 8
I’ve heard a number of people refer to the Stormy Daniels testimony as “graphic,” and as a person who embarrasses easily, that’s not how I experienced it. 1/
Yes, there was a stray detail that I expect prosecutors and the defense alike wish she hadn’t said. But her description of the sexual encounter itself was brief and largely devoid of details. 2/
But even if it was not graphic, her testimony was vivid. The black and white tile on the floor of the foyer of Trump’s penthouse suite. Her hands shaking as she put her strappy gold heels back on. The Pert Plus, Old Spice, and gold tweezers she saw when snooping around the bathroom. 3/
Read 4 tweets
May 7
NEW: The ongoing Trump criminal trial is the fourth Trump trial in the last 12 months—and it’s my fourth too. And after watching dozens of witnesses, I’m afraid the more they change, the more things stay the same. 1/
I’ve watched a nearly 80-year-old E. Jean Carroll, who successfully accused Trump of sexual assault and defamation, fend off the implication that she was lying because she never called the police and didn’t tell her story for two decades plus. 2/
And now I’ve seen an adult film star more comfortable with her stage name than her given one similarly attacked for not calling the police or telling those closest to her after she was threatened in a parking lot 7 years before she went public with her whole story. 3/
Read 7 tweets
May 7
NEW: How do you prove a defendant caused others to make false business records where those with direct knowledge of his intent and involvement are limited to the defendant, a man now in jail for perjury, and Michael Cohen? 1/
You surround Michael Cohen’s expected testimony with a mountain of circumstantial evidence, an already substantial pile to which prosecutors just added excerpts from Trump’s books How to Get Rich and Think Like a Billionaire. 2/
Those excerpts reveal Trump as a micromanager who advised never taking one’s eyes off his checkbook, advertised he negotiated the price of everything “down to the paper clips,” trusted Weisselberg wholly, and boasted that he even loved signing checks. 3/
Read 4 tweets
May 7
NEW: If Stormy Daniels is indeed today’s first witness, it’s worthwhile to ask why — in a falsification of business records case — the jury needs to hear from her. Here’s one take: 1/
The prosecution has offered significant (& often direct) evidence of the conspiracy to bury Stormy and Karen McDougal’s stories. But now they have to convince jurors why Trump himself cared enough both to conceal their stories and cover up the Stormy settlement. 2/
That’s especially true given that both a blog and a magazine had published details about the alleged Stormy affair years before the 2016 election. 3/
Read 5 tweets
May 6
NEW: Former Trump Org. comptroller Jeff McConney is now off the stand, but the centerpiece of his direct examination wasn't even something he said. It was handwriting he recognized, specifically that of Allen Weisselberg, on this doc: Image
It's Weisselberg's handwriting on the left, McConney testified, in which Weisselberg sketched out the plan to repay Cohen = $180k for the Stormy payment and another, unrelated $50k, doubled to "gross up" Cohen for tax purposes, and with another $60k on the top for a "bonus."
And of course, it's not written on any old piece of paper, but instead, is scrawled on a First Republic Bank statement for Essential Consultants, LLC, the shell company Cohen set up to pay Stormy.
Read 4 tweets
May 6
Happy Monday, friends, from Courtroom 1530 (aka the Trump criminal trial). Today, we'll not only leave Hope's tears, but more broadly, I expect we'll also move on from the alleged underlying conspiracy to the alleged falsification of business records. 1/
While trial participants have been tight-lipped about who and what might come next, I am anticipating testimony that shows how the repayment scheme was developed, agreed to, & most importantly, papered, from the White House to the Trump Org. over Trump's first year in office. 2/
And of course, the evidence that will matter most is that -- whether testimonial or documentary -- showing Trump knew about and intended to conceal the true manner of the payment to Daniels. 3/
Read 8 tweets

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