Good morning from New York.
An ex-senior managing director of First Republic Bank is expected to testify how Michael Cohen funneled a $130,000 home equity loan through a shell company to Stormy Daniels' lawyer.
The record came into evidence, but the jury hasn't seen it yet.🧵
An ex-senior managing director of First Republic Bank is expected to testify how Michael Cohen funneled a $130,000 home equity loan through a shell company to Stormy Daniels' lawyer.
The record came into evidence, but the jury hasn't seen it yet.🧵
When banker Gary Farro began his testimony on Friday, he conveyed that, with Cohen, every request was urgent.
He said this was also true on Oct. 26, 2016, shortly before Election Day, when Cohen set up a bank account Essential Consultants LLC.
He said this was also true on Oct. 26, 2016, shortly before Election Day, when Cohen set up a bank account Essential Consultants LLC.
https://x.com/KlasfeldReports/status/1783954495216427122
The shell company had been created only days earlier in Delaware, evidence showed.
Connecting the two threads here
https://x.com/KlasfeldReports/status/1785303323303612557
Farro authenticates this request for a home equity line of credit in the names of Michael Cohen and his wife.
Next exhibit:
In an email assigned a "High" importance, the bank's staffer requests expedited processing on a $131,000 advance.
In an email assigned a "High" importance, the bank's staffer requests expedited processing on a $131,000 advance.
Next exhibit:
Email of Cohen nudging bank officials for confirmation that the funds were transferred to his account.
"Important..."
Email of Cohen nudging bank officials for confirmation that the funds were transferred to his account.
"Important..."
Minutes later, on Pacific Time, Farro's assistant gave Cohen the confirmation.
Farro now reviews the bank's account statement for Essential Consultants LLC, from Oct. 26 to 31, 2016.
Why so short a time frame?
The account didn't exist before the earlier date. The statement is the image at the top of the thread.
Why so short a time frame?
The account didn't exist before the earlier date. The statement is the image at the top of the thread.
Farro testifies: "All wires have to approved by the bank."
If they knew the wire would benefit a political candidate, Farro says, it could have delayed the transactions.
If they knew the wire would benefit a political candidate, Farro says, it could have delayed the transactions.
Farro said there also would have been "enhanced due diligence" had the bank known that the money was going to an adult film star.
That could have delayed, or even blocked, the transfer, he adds.
Direct examination concludes.
That could have delayed, or even blocked, the transfer, he adds.
Direct examination concludes.
Up now for cross-ex: Trump's lead attorney Todd Blanche.
Blanche emphasizes that the witness is testifying pursuant to a subpoena, but he has been cooperative—and has no reason not to be cooperative.
Farro agrees.
Blanche emphasizes that the witness is testifying pursuant to a subpoena, but he has been cooperative—and has no reason not to be cooperative.
Farro agrees.
Asked if the witness is paying for his own lawyers, Farro replies that he isn't.
His employer banks have paid his legal bills.
His employer banks have paid his legal bills.
Blanche's questions shift the focus to Michael Cohen.
Q: Indeed, if he had said, this is a deal I'm doing with my employer, you may have asked questions.
A: I would have asked questions.
Q: Indeed, if he had said, this is a deal I'm doing with my employer, you may have asked questions.
A: I would have asked questions.
Blanche asks whether Farro suspected the LLC was a shell company.
Farro notes that LLCs are "commonly used for business," and he agrees that wouldn't typically raise any "red flags."
Farro notes that LLCs are "commonly used for business," and he agrees that wouldn't typically raise any "red flags."
Blanche asks the witness about the acronym PEP: "Politically Exposed Person."
Farro says he would not have considered Michael Cohen a "PEP" because of his then-status of candidate Donald Trump's attorney.
Farro says he would not have considered Michael Cohen a "PEP" because of his then-status of candidate Donald Trump's attorney.
PEPs' accounts are "monitored closely," in terms of transaction activity, Farro says.
Redirect by the prosecution:
Farro says Cohen's accounts were closed after the barrage of "negative press."
Asked what negative press, Farro replies: "The ... Stormy Daniels, when that came out."
Farro says Cohen's accounts were closed after the barrage of "negative press."
Asked what negative press, Farro replies: "The ... Stormy Daniels, when that came out."
On recross:
Todd Blanche asks Farro whether the outcome meant that the bank didn't do appropriate due diligence.
Farro pushes back on that, chalking up the issue to the client misleading them.
Farro's testimony ends.
Todd Blanche asks Farro whether the outcome meant that the bank didn't do appropriate due diligence.
Farro pushes back on that, chalking up the issue to the client misleading them.
Farro's testimony ends.
Morning recess.
Prosecutor Josh Steinglass broaches "outstanding issues" for argument with the jury out of the room, such as redactions.
Prosecutor Josh Steinglass broaches "outstanding issues" for argument with the jury out of the room, such as redactions.
Prosecutors also want to file a new "Sandoval" notice, requesting permission to confront Trump with his nine new contempt findings if he testifies.
Trump's attorney Todd Blanche opposed the jury hearing a message that “shady shit is going on."
The full context wasn't immediately clear, and the judge has not yet ruled on the defense's request.
The full context wasn't immediately clear, and the judge has not yet ruled on the defense's request.
Next witness: Robert Browning, a custodian of records for C-SPAN
He's testifying pursuant to a subpoena as an executive director of its archives
A C-SPAN exhibit of Trump at a rally is played:
"I have no idea who these women are. I have no idea."
[...]
"The stories are total fiction. They are 100% made up. They never happened. They never would happen."
"I have no idea who these women are. I have no idea."
[...]
"The stories are total fiction. They are 100% made up. They never happened. They never would happen."
Trump in the C-SPAN video:
"These are all horrible lies, all fabrications."
"These are all horrible lies, all fabrications."
Video of Trump on Michael Cohen, in happier days:
“Michael Cohen is a very talented lawyer, very good lawyer, my friend.”
“Michael Cohen is a very talented lawyer, very good lawyer, my friend.”
No further questions. No cross. The witness leaves.
Next witness up:
Phillip Thompson, another custodial witness for Esquire Deposition Solutions
Phillip Thompson, another custodial witness for Esquire Deposition Solutions
Thompson came up from Texas to testify pursuant to a subpoena.
The witness authenticates Trump's deposition in the E. Jean Carroll's case.
A prosecutor plays a clip of it, with Trump explaining what Truth Social is, for the jury.
A prosecutor plays a clip of it, with Trump explaining what Truth Social is, for the jury.
The witness authenticates another passage of the transcript about the "Access Hollywood" tape.
Next witness of substance:
"The People call Keith Davidson."
That's Stormy Daniels and Karen McDougal's former lawyer.
"The People call Keith Davidson."
That's Stormy Daniels and Karen McDougal's former lawyer.
Prosecutors begin direct examination with the preliminaries — biographical background, contact information and more.
Davidson says he's testifying pursuant to a subpoena.
He says he received immunity, but he didn't seek it.
Davidson says he's testifying pursuant to a subpoena.
He says he received immunity, but he didn't seek it.
Davidson is asked about Gina Rodriguez, an L.A.-based talent manager who reportedly helped negotiate Stormy Daniels' confidentiality agreement pursuant to the hush-money deal.
Davidson is asked about AMI's former chief content officer Dylan Howard.
"We were professional acquaintances and friends," Davidson says, adding that "on occasion" his clients would end up in tabloid media.
"We were professional acquaintances and friends," Davidson says, adding that "on occasion" his clients would end up in tabloid media.
Questioning turns to Davidson meeting Michael Cohen:
That happened after the publication of a blog post mentioning Trump and Davidson's then-client Stephanie Clifford (a.k.a. Stormy Daniels), he says.
That happened after the publication of a blog post mentioning Trump and Davidson's then-client Stephanie Clifford (a.k.a. Stormy Daniels), he says.
Davidson authenticates email correspondence between him and Cohen in 2016.
Q: Do you know someone named Karen McDougal?
A: I do.
Q: In what context?
A: She was a client of mine.
Davidson said that he made her because she had been dating a friend of his.
A: I do.
Q: In what context?
A: She was a client of mine.
Davidson said that he made her because she had been dating a friend of his.
Davidson:
McDougal's former brother-in-law was a client, and he made the "re-introduction."
McDougal's former brother-in-law was a client, and he made the "re-introduction."
Exhibit: Email from June 15, 2016
Davidson's email to McDougal sending her a "signature-ready" retainer agreement.
Davidson's email to McDougal sending her a "signature-ready" retainer agreement.
Davidson reviews and recites the attached agreement, which is entered into evidence.
His scope of services included "negotiating a confidentiality agreement and/or life rights related to interactions with Donald Trump" and related "exclusive press opportunities."
His scope of services included "negotiating a confidentiality agreement and/or life rights related to interactions with Donald Trump" and related "exclusive press opportunities."
Davidson, pushing back at a question that he perceived edged close to privileged conversations:
"I can't and won't discuss what I discussed with Ms. McDougal. I think the paragraph speaks for itself."
"I can't and won't discuss what I discussed with Ms. McDougal. I think the paragraph speaks for itself."
On June 7, 2016, Davidson texted Dylan Howard: "I have a blockbuster trump story."
Davidson, testifying, called it a "teaser."
Howard replied: "Talk 1st thing. I will get you more than ANYONE for it. You know why..."
Davidson, testifying, called it a "teaser."
Howard replied: "Talk 1st thing. I will get you more than ANYONE for it. You know why..."
Three days later, Howard asked: "Did [Trump] cheat on Melania?"
On June 12, Davidson replied: "I really can't say yet. Sorry." But Davidson testified that he knew; he just couldn't disclose it yet.
On June 12, Davidson replied: "I really can't say yet. Sorry." But Davidson testified that he knew; he just couldn't disclose it yet.
On June 20, 2016, Howard went to Davidson's office for a meeting, where McDougal alleged she had an affair with Trump.
The meeting is memorialized in the text exchange.
The meeting is memorialized in the text exchange.
Davidson testifies that Howard told him he would have to "run it up the flagpole," which he says he knew meant David Pecker, as the only more senior figure at AMI.
Davidson to Howard: "It's a story [t]hat should be..."
He says that refers to his client McDougal's story, and Howard replied: "I agree."
He says that refers to his client McDougal's story, and Howard replied: "I agree."
Davidson said of his client Karen McDougal: "The girl is being cornered by the estrogen mafia," calling the phrase "regrettable"—and not one he came up with.
The phrase referred to pressure on McDougal to tell her story to ABC, he adds.
The phrase referred to pressure on McDougal to tell her story to ABC, he adds.
* should be told."
Text exchange goes deep inside the negotiations:
"How about 1m now," asked Davidson, shorthanding "million."
"I'll take it to them but thinking it's more hundreds than millions," Howard replied.
"How about 1m now," asked Davidson, shorthanding "million."
"I'll take it to them but thinking it's more hundreds than millions," Howard replied.
Davidson quipped during the negotiations: "Throw in an ambassorship for me. I'm thinking Isle of Mann."
He says he wrote that in "jest," knowing that the British Crown Dependency wasn't a country with an ambassadorship.
The prosecutor spells out the joke: It was for Trump.
He says he wrote that in "jest," knowing that the British Crown Dependency wasn't a country with an ambassadorship.
The prosecutor spells out the joke: It was for Trump.
Next exhibit: An invitation to a video conference meeting on Aug. 2, 2016.
Davidson, Howard, McDougal and one more person were invited to attend.
Lunch recess.
Davidson, Howard, McDougal and one more person were invited to attend.
Lunch recess.
Service advisory: Sporadic Wi-Fi.
Updates will continue when possible.
Updates will continue when possible.
Note:
I'll be tweeting the afternoon session from a separate thread.
I'll be tweeting the afternoon session from a separate thread.
Connecting those threads here.
https://x.com/KlasfeldReports/status/1785372137051574357
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