These Handwritten Notes on Michael Cohen Payments Could Doom Trump
At Donald Trump’s hush-money trial Monday, a former Trump Organization executive appears to have, through some handwritten notes, exposed serious tax fraud from the former president. Jeffrey McConney, the former corporate controller at the Trump Organization, testified in court about a reimbursement payment of $360,000 in 2016 to former Trump attorney and fixer, Michael Cohen. That payment was “grossed up” from a $180,000 expense, to offset income taxes. The details were handwritten on Trump stationary by McConney, who was taking notes while speaking to Allen Weisselberg, the company’s chief financial officer, who told him that Cohen was owed money. The written notes outlined a $180,000 reimbursement to Cohen, which consisted of a $130,000 wire transfer (the same amount paid to Stormy Daniels) and $50,000 for tech services, plus an additional bonus of $60,000. This total amount of $240,000 was then grossed up 50 percent to $360,000 to offset income taxes, a fact that Trump lawyer Emil Bove unsuccessfully moved to strike from the record.Prosecutor Matthew Colangelo noted that reimbursement payments usually don’t exceed the amount of expenses, but that Cohen received double the amount of a $180,000 expense. Colangelo asked McConney if he could recall any other instance where an expense reimbursement was doubled for tax purposes. McConney replied no. In other words, a major exception seems to have been made to reimburse Cohen for the hush-money payments.The prosecution hopes that to the jury, all of this is a convincing paper trail of Trump’s payments to Cohen, and thus to Daniels, in order to cover up Trump’s affair with the adult film actress prior to the 2016 elections. Trump is facing 34 felony charges for allegedly falsifying business records with the intent to further an underlying crime, and has pleaded not guilty. Daniels and Cohen have yet to testify, and when Cohen takes the stand, prosecutors will not only seek his confirmation of the payments, but also that they lead directly to Daniels.
At Donald Trump’s hush-money trial Monday, a former Trump Organization executive appears to have, through some handwritten notes, exposed serious tax fraud from the former president.
Jeffrey McConney, the former corporate controller at the Trump Organization, testified in court about a reimbursement payment of $360,000 in 2016 to former Trump attorney and fixer, Michael Cohen. That payment was “grossed up” from a $180,000 expense, to offset income taxes. The details were handwritten on Trump stationary by McConney, who was taking notes while speaking to Allen Weisselberg, the company’s chief financial officer, who told him that Cohen was owed money.
The written notes outlined a $180,000 reimbursement to Cohen, which consisted of a $130,000 wire transfer (the same amount paid to Stormy Daniels) and $50,000 for tech services, plus an additional bonus of $60,000. This total amount of $240,000 was then grossed up 50 percent to $360,000 to offset income taxes, a fact that Trump lawyer Emil Bove unsuccessfully moved to strike from the record.
Prosecutor Matthew Colangelo noted that reimbursement payments usually don’t exceed the amount of expenses, but that Cohen received double the amount of a $180,000 expense. Colangelo asked McConney if he could recall any other instance where an expense reimbursement was doubled for tax purposes. McConney replied no. In other words, a major exception seems to have been made to reimburse Cohen for the hush-money payments.
The prosecution hopes that to the jury, all of this is a convincing paper trail of Trump’s payments to Cohen, and thus to Daniels, in order to cover up Trump’s affair with the adult film actress prior to the 2016 elections.
Trump is facing 34 felony charges for allegedly falsifying business records with the intent to further an underlying crime, and has pleaded not guilty. Daniels and Cohen have yet to testify, and when Cohen takes the stand, prosecutors will not only seek his confirmation of the payments, but also that they lead directly to Daniels.
