Stormy Daniels–Donald Trump scandal

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Daniels (2010) and Trump (2011)

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The Stormy Daniels–Donald Trump scandal is a political scandal involving a nondisclosure agreement (NDA) signed by U.S. President Donald Trump's personal lawyer Michael Cohen and adult film actress Stormy Daniels just before the 2016 United States presidential election. After the existence of the NDA was revealed by The Wall Street Journal in January 2018, Daniels sued Trump and Cohen to argue that the agreement is invalid. The dispute has gained significant media coverage, and has drawn legal attention to Cohen's involvement in the matter.

In August 2018, Cohen pleaded guilty to eight charges, including one related to the scandal, and he stated under oath that he paid Daniels "in coordination with and at the direction of a candidate for federal office," meaning Trump.

Allegation and non-disclosure agreement

The first reports of an alleged affair between Trump and Daniels were published in October 2011 by the blog The Dirty and the magazine Life & Style.[1] Around the same time, Daniels talked about the alleged affair with the gossip magazine In Touch Weekly, which chose not to publish the interview after Cohen threatened to sue the magazine.[2]

On January 12, 2018, The Wall Street Journal reported that Cohen paid Daniels $130,000 in October 2016, a month before the presidential election, to stop her discussing an affair she allegedly had with Trump in 2006.[3][4] A lawyer for Daniels made claims that the payment was a cover-up, while others also raised questions (which has since been admitted as true in a guilty plea by Cohen in criminal court proceedings) about whether the NDA itself constituted an illegal campaign payment and therefore criminal violation.[5] Cohen on January 14 denied the existence of an affair on behalf of his client, Trump,[6] but on February 13 acknowledged having paid Daniels $130,000, saying the payment was made with his own funds.

On March 6, Daniels filed a lawsuit against Trump claiming that the nondisclosure agreement she had signed about the alleged affair was invalid because Trump had never personally signed it, despite acknowledging that she accepted the payment made in consideration for her silence in the matter.[7][8] The suit also alleges that Trump's attorney has been trying to intimidate Daniels and "scare her into not talking". On the next day, Cohen initiated an ex parte arbitration process that resulted in an order barring Daniels from disclosing "confidential information" related to the nondisclosure agreement. The order itself, which Daniels' lawyers called bogus, was supposed to remain confidential.[9]

In an interview with 60 Minutes on March 25, Daniels said that she and Trump had sex once, and that later she had been threatened in front of her infant daughter, and felt pressured to later sign a nondisclosure agreement.[7][8]

On April 9, FBI agents raided Cohen's office and seized emails, tax documents, and business records relating to several matters, including the payment to Daniels.[10] On April 26, Trump, for the first time, admitted that Cohen represents him in "the Stormy Daniels deal".[11]

Trump's new personal attorney Rudy Giuliani told Sean Hannity on May 2 that Trump has reimbursed Cohen for the payment, stating Trump "didn’t know about the specifics of it but he did know about the general arrangement, that Michael [Cohen] would take care of things like this," which contradicted Trump's claim on Air Force One of April 5 of having no knowledge of the payment.[12]

Legal issues

Paul Ryan, an official with Common Cause, stated that the group filed complaints with the Department of Justice and the Federal Election Commission, claiming that Trump’s campaign should have disclosed the payment to the Federal Election Commission and to the public.[13] There are also concerns about where the funds originated, and whether they are an illegal or undisclosed in-kind contribution to the campaign. However, several members of Trump's legal team have denied the payment was related to the campaign and claimed it was instead aimed at saving Trump's marriage.[14] Questions have also been raised about how the payment was classified for tax purposes, and if there is a possibility of tax-based charges or fees relating to the payment.[15]

Daniels filed a civil suit on March 6, 2018,[16] in an attempt to nullify the nondisclosure agreement between her and Trump. The hearing was set in July but has since been pushed back by U.S. District Judge James Otero citing the possible indictment of Cohen in the on going criminal probe by federal prosecutors.[17][needs update][18]

Cohen could also face discipline from the State Bar of New York under the New York Rules of Professional Conduct, which prohibits lawyers making loans to clients.[19]

In some jurisdictions, certain contracts, such as real estate transactions, must be signed by all parties to be valid and enforceable. In other types of contracts, some courts have enforced unsigned contracts. [20] A well established principle of contract law is the offer and acceptance of "consideration" or something of value, in exchange for a promise to do something (or not do something in the case of a non-disclosure agreement).[21] Legal experts argue that the $130,000 payment being accepted by one party is valid consideration and enforceable regardless of the unsigned state of the Daniels non-disclosure agreement, but other elements in the Daniels agreement make predicting the outcome difficult. Issues such as the use of pseudonyms, some info disclosed possibly being in public domain, and the disclosure exception for law enforcement investigations may favor Ms. Daniels' position.[22]

On August 21, 2018, Cohen pled guilty to eight charges, including tax fraud, bank fraud, and campaign finance violations, for his role in the payment, and implicated Trump.[23]

Timeline

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January 2018

  • January 12, 2018: The Wall Street Journal reported that Cohen paid Daniels $130,000 in October 2016, a month before the presidential election, to stop her discussing an affair she allegedly had with Trump in 2006.[3][4] Cohen denied the existence of an affair on behalf of his client, Trump,[6] but later acknowledged having paid Daniels $130,000 out of his own money.
In its initial report the Wall Street Journal elaborated that the payment was made through a private company, Essential Consultants LLC. The company was founded by Cohen on October 17, 2016, in Delaware.[24] At the time, Daniels was reportedly in talks to tell her account to Good Morning America and Slate.[25] The Daily Beast was also in talks with Daniels "after three sources—including fellow porn star Alana Evans—told The Daily Beast that Daniels and Trump were involved. Daniels ultimately backed out on November 3, just five days before the 2016 election."[6][26]
  • January 16, 2018: CNN reported that Fox News reporter Diana Falzone had written an article about Daniels and Trump in October 2016 that Fox News never published. It included Daniels' then-manager Gina Rodriguez alleging on-the-record about a sexual relationship between them. CNN also reported that "Falzone had even seen emails about a settlement" between Daniels and Trump.[27] The next day, In Touch Weekly published excerpts of a 2011 interview of Daniels alleging a 2006 extramarital affair with Trump. The magazine described her account as being supported by a polygraph and corroborated with both her friend and her ex-husband.[28] Cohen alleged that claims made in that interview were untrue and had previously been published in October 24, 2011, in Life & Style magazine. However, The Daily Beast described the interviews as "hardly identical", noting that Daniels had declined to comment to Life & Style, while the In Touch Weekly interview had direct quotes from Daniels.[29]
  • January 18, 2018: Mother Jones reported that in 2009, as Daniels was considering running to become the Senator for Louisiana, she had identified Trump as a potential campaign donor to a political consultant, and also described details of a sexual relationship with Trump. That consultant discussed Daniels' revelations to another consultant in emails which Mother Jones obtained and published.[30]
  • January 30, 2018: Cohen produced a letter allegedly signed by Daniels denying the affair and the payment of hush money.[6][31] However, later that day in an interview with Jimmy Kimmel, Daniels claimed no knowledge of the denial statement with her purported signature.[32]

February 2018

  • February 13, 2018: Cohen publicly acknowledged paying Daniels $130,000 and said the payment was made with his own funds. He also said he was not reimbursed by The Trump Organization or the 2016 Trump presidential campaign. In response, Daniels' attorneys notified Cohen that by disclosing the payment he was in breach of the agreement, meaning that she was no longer bound by the agreement.[33][34]

March 2018

  • March 5, 2018: the Wall Street Journal cited anonymous sources recounting Cohen as saying he missed two deadlines to pay Daniels because Cohen "couldn't reach Mr. Trump in the hectic final days of the presidential campaign", and that after Trump's election, Cohen had complained that he had not been reimbursed for the payment. Cohen described this report as "fake news".[35]
  • March 6, 2018: Daniels filed a lawsuit against Trump in California Superior Court, claiming, among other things, that the nondisclosure agreement never came into effect because Trump never signed it.[36][37][38][39] The suit, which is a complaint for declaratory relief, seeks a judgment declaring that no agreement was formed and for costs of the suit and other relief the Court might deem proper.[40][41] The Court set a July hearing date.[17]
  • March 7, 2018: NBC News reported that Trump's lawyer, Cohen, initiated an ex parte private arbitration case on February 27, 2018, against Daniels, and obtained a restraining order barring Daniels from disclosing "confidential information" related to the nondisclosure agreement and states that Daniels will face penalties if she discusses in public her alleged relationship with Trump. The order itself, which Daniels' lawyers called bogus, was supposed to remain confidential.[9] White House Press Secretary Sarah Huckabee Sanders said that President Trump's personal attorneys had won an arbitration case "in the President’s favor" against Daniels, and that "there was no knowledge of any payments [to Daniels] from the President".[42][43][44][45]
  • March 14, 2018: documents surfaced indicating that Jill Martin, assistant general counsel for the Trump Organization, had signed legal papers in connection with the restraining order against Daniels.[46][47]
  • March 16, 2018: Daniels' lawyer, Michael Avenatti, said on CNN and MSNBC that Daniels had been threatened with physical harm if she did not remain silent about the alleged affair with Trump.[48] Avenatti did not state when the threat was made, or who made it.[48]
  • March 16, 2018: Cohen, with Trump’s approval, asked for Daniels’ suit to be moved from state to federal court, based on the criteria that the parties live in different places and the amount at stake is more than $75,000. Cohen asserted that Daniels could owe up to $20 million in liquidated damages for breaching the agreement.[49] The filing marked the first time that Trump himself, through his personal attorney, has taken part in the Daniels litigation.[50][51]
  • March 25, 2018: Daniels' involvement with Trump was the subject of a segment on the U.S. television news program 60 Minutes.[8][52] The segment included interviews by Anderson Cooper with Daniels, her attorney Avenatti, and Trevor Potter, the former chairman of the Federal Election Commission. In her interview, Daniels said that she briefly spanked Trump with a copy of a Forbes magazine; that she had sex with Trump in the same encounter; that she later met Trump privately and did not have sex on that occasion; and that, under pressure from her former business manager–lawyer, she signed multiple false statements that the affair did not happen. She also said that, while she was getting her infant daughter out of their vehicle in a Las Vegas parking lot, an unknown man showed up at the vehicle car and said "Leave Trump alone. Forget the story. That's a beautiful little girl. It'd be a shame if something happened to her mom."[7]

April 2018

  • April 5, 2018: On Air Force One, Trump said he did not know about the $130,000 payment Cohen made to Daniels. He also said he was not aware of why Cohen had made the payment or where he got the money.[53]
  • April 9, 2018: FBI agents raid Cohen's office and seized emails, tax documents, and business records relating to several matters, including payments to Daniels. The raid was conducted on behalf of the United States Attorney for the Southern District of New York, and is seen as likely to have resulted from information uncovered from Mueller's investigation.[10] Following the raid, Daniels was reportedly cooperating with federal investigators.[54]
  • April 26, 2018: In an interview on Fox & Friends, Trump said Cohen "would represent me and represent me on some things. He represents me like with this crazy Stormy Daniels deal, he represented me."[55] This is Trump's first admission of any relationship to the case.
  • April 27, 2018: Judge put Stormy Daniels lawsuit on hold for at least 90 days while the criminal investigation of Cohen moves forward in New York because Cohen would assert his Fifth Amendment right not to incriminate himself while the criminal investigation continues.[56]
  • April 30, 2018: Daniels' lawyer Michael Avenatti, tweeted about a lawsuit filed against Trump, in which Daniels is currently suing Trump for his "recent irresponsible and defamatory statements" made against Daniels. These statements can be seen in a tweet mocking the released police sketch of the man Daniels claims told her to drop her allegations of the affair, and have been claimed to be defamatory as they accuse Daniels of falsely accusing a person of threatening her.[57]

May 2018

  • May 2, 2018: Trump's personal lawyer Rudy Giuliani said on Fox News that "the president repaid" Cohen the $130,000 that Cohen had paid to Daniels. Giuliani also said that Trump "did know the general arrangement" of Cohen's payment, but not "the specifics". This appeared to contradict Trump's claim of April 5 that he had no knowledge of the payment.[58][59]
  • May 3, 2018: Trump tweeted that Cohen had entered into a nondisclosure agreement with Daniels. In the tweets, Trump wrote Cohen was reimbursed for the $130,000 through monthly $35,000 retainer payments to him and wrote that "Money from the campaign, or campaign contributions, played no roll [sic] in this transaction."[60]
  • May 4, 2018: Trump contradicted Giuliani's statements, saying that Giuliani "wasn't familiar with everything" and that "He started yesterday. He'll get his facts straight."[61] Giuliani later released a statement saying "the payment was made to resolve a personal and false allegation in order to protect the President's family".[62]
  • May 5, 2018: Daniels appeared on Saturday Night Live, playing herself, in a sketch involving the President, played by Alec Baldwin, and mocking Trump with the line; "I know you don't believe in climate change but a storm's a-coming baby."[63]
  • May 9, 2018: CNN reported that Mueller's team has questioned Russian oligarch Viktor Vekselberg about hundreds of thousands of dollars in payments his company's US affiliate made to Cohen.[64] The US Treasury Department opened an investigation into the leak of Michael Cohen's private bank records to Michael Avenatti, the porn actress' lawyer, who had sent a seven-page dossier to the New York Times and other news outlets.[65]
  • May 10, 2018: Newsweek reported that Michael Cohen's lawyers argued that some of the small transactions that Avenatti reported were for a different Michael Cohen but did not deny that the large transaction were for their client.[66] Greenberg Traurig, the former law firm of Giuliani, released a statement against Giuliani's claim that it was common practice for lawyers to make secret payments to individuals. A spokeswomen for the firm stated: "We cannot speak for Mr. Giuliani...speaking for ourselves, we would not condone payments of the nature alleged to have been made or otherwise without the knowledge and discretion of a client."[67]
  • May 16, 2018: In his annual disclosure of personal finances required by the Office of Government Ethics, Trump acknowledged that Cohen was paid between $100,000 and $250,000 last year, out of which potentially came the $130,000 payment for Daniels.[68][69] The form reports on page 45, "Mr. Cohen sought reimbursement of those expenses and Mr. Trump fully reimbursed Cohen in 2017. The category of the value would be $100,001 to $250,000..."[70]
  • May 24, 2018: Daniels' lawyer Avenatti filed a motion in federal court to have a judge allow Daniels' lawsuit to move forward, instead of continuing the 90-day hold that been placed last month.[71] Avenatti cited recent statements by Trump and Giuliani, that potentially contradict Cohen's argument for the stay, with the recent disclosure of the Settlement Agreement and the "new facts call into question whether Mr. Cohen's Fifth Amendment rights..." in relation to the case are "as compelling as previously argued..."[72]

June 2018

  • June 6, 2018: Daniels sued both Michael Cohen and her own former lawyer, Keith M. Davidson, accusing Cohen of encouraging Davidson to violate her attorney-client privilege.[73] The lawsuit also alleges Trump was aware of the efforts for Daniels to deny the affair on media interviews.[74]
  • June 6, 2018: Trump's lawyer, Rudy Giuliani, verbally attacked Daniels, saying: "The business you were in entitles you to no degree of giving your credibility any weight … Explain to me how she could be damaged … If you're going to sell your body for money, you just don't have a reputation … a woman who sells her body for sexual exploitation I don't respect."[75][76][77]
  • Daniels' May 24 motion was denied. Avenatti said he would file an appeal shortly.[78]

July 2018

  • July 12, 2018: Daniels was arrested in Columbus, Ohio by undercover vice cops in a sting operation.[79] Officers alleged that Daniels "touched" three undercover officers in the club where she was performing, which is against Ohio law.[80] While Daniels was booked into the county jail, two other female adult entertainers who were arrested at the club for the same alleged violations were given summonses to appear in court and did not have their mugshots taken, unlike Daniels.[81] Daniels retained Columbus defense lawyer Chase Mallory,[82] who worked with prosecutors to dismiss the charges less than 12 hours later, citing that the law did not apply to out-of-town performers.[83] It was later reported that the lead detective on the vice squad in charge of the arrest was a supporter of Donald Trump.[84]

August 2018

  • August 21, 2018: Cohen officially surrendered to the FBI.[85] That afternoon, Cohen pleaded guilty to eight charges: five counts of tax evasion, one count of making false statements to a financial institution, one count of willfully causing an unlawful corporate contribution, and one count of making an excessive campaign contribution at the request of a candidate or campaign.[86][87][88] The plea deal reportedly does not include any agreement to cooperate with investigators.[89] However, the plea does include jail time and a substantial monetary fine.[23] In his plea, Cohen implicated Trump, but did not identify him by name.[23] No charges had been filed in connection with the Stormy Daniels-Trump scandal prior to Cohen's guilty plea.[90] Following the plea, Daniels stated that she felt "vindicated."[91]
  • August 22, 2018: The New York Times reported that Cohen court documents revealed that two senior Trump Organization executives were also involved in the hush money payments, and that Cohen “coordinated with one or more members of the campaign, including through meetings and phone calls” about the payments.[92]
  • August 23, 2018: During a Fox & Friends interview Trump stated that the payment funds came from him personally and not from campaign funds. Trump also said that he only knew about the payments "later on". These comments contradict earlier statements from Cohen that were given while under oath. Lanny Davis, Cohen's lawyer suggested that Trump should be prosecuted for the crimes he instructed Cohen to commit.[93][94]

September 2018

  • September 7, 2018: Cohen offers to rescind and invalidate the non-disclosure agreement with Daniels, in return for Daniels refunding the $130,000 Cohen had paid to her.[95][96]
  • September 8, 2018: Lawyers for Trump have declared that Trump will neither enforce the non-disclosure agreement nor contest Daniels' claim that it is invalid.[97]
  • September 12, 2018: Stormy Daniels announces a book titled Full Disclosure about her life which she says will include details of her tryst with Donald Trump. [98][99]

See also

References

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  5. ↑ BBC News, April 9, 2018, Why the Stormy Daniels-Donald Trump story matters
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  47. ↑ Stephanie Clifford a.k.a. Stormy Daniels a.k.a. Peggy Peterson v. Donald J. Trump a.k.a. David Dennison, Essential Consultants, LLC, and Does 1 through 10, case no. BC 696568, Superior Court of the State of California in and for the County of Los Angeles.
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  51. ↑ Stephanie Clifford a.k.a. Stormy Daniels a.k.a. Peggy Peterson v. Donald J. Trump a.k.a. David Dennison and Essential Consultants, LLC, case no. 18-cv-02217, U.S. District Court for the Central District of California (Western Div. – Los Angeles).
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  98. ↑ Stormy Daniels writes tell-all book: "Full Disclosure"
  99. ↑ Stormy Daniels writes tell-all book: "Stormy Daniels' tell-all book on Trump: salacious detail and claims of cheating"
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