Donald Trump violated gag a 10th time, judge says, threatening jail.
Colangelo’s thrust here is that the money paid to Cohen in January 2017 was not “expenses”, at least as how the Trump Organization processed them.
It gets to the heart of the prosecution’s case, which is that what was recorded as “expenses” to Cohen were false.
McConney acknowledged that Cohen’s reimbursement for $180,000 – which prosecutors allege was falsely recorded as “legal expenses” – was the only expense in his roughly 35 years at Trump Org he knew of that was grossed up for tax purposes.
Prosecutor Matthew Colangelo’s questions about repayments to Cohen touch on prosecutors’ claims about motive.
Donald Trump, they have made clear at multiple points during the trial, was infamously cheap. Therefore, Cohen’s receipt of more money than he’d paid to Daniels indicated that Trump was giving him special treatment… seemingly to maintain his then-lawyer’s silence about the alleged hush money cover-up to the adult movie star.
“Do these notes show that Mr Cohen was receiving $360,000 back on a $180,000 expense?” Colangelo asked.
“Yes”, McConney replied.
“Are you aware of another incident where an expense was doubled because of taxes?” the prosecutor pressed.
“No,” McConney said.
Another notable face in the crowd: Donald Trump’s son Eric, although he doesn’t seem to have bagged himself the best of seats.
Eric Trump is sitting next to Alina Habba (another of his father’s attorneys not involved in this case) in the front row, and is directly behind his father with a good view of the back of his head. He keeps looking toward the TV screen at his left, which is projecting video of the defense table.
It’s the only way Eric Trump can see his father’s reactions to the testimony.
On the stand, meanwhile, Jeffrey McConney, a retired senior executive of the Trump Organization, is describing notes he took during a January 2017 meeting where former Trump Org CFO Allen Weisselberg told him that Trump fixer Michael Cohen was owed money.
Cohen, they determined, was owed about $420,000, including the alleged hush money payment as well as a bonus, his regular pay, and an additional amount to cover taxes.
A judge ruled Monday that Donald Trump again violated his gag order in the New York hush money trial, and he warned that he would consider jailing the former president if the violations continue. After the ruling, witness testimony resumed, with the prosecution calling retired Trump Organization comptroller Jeffrey McConney.
Jeffrey McConney, the former controller at the Trump Organization, described to the jury a meeting in January 2017 in which his boss, Allen Weisselberg, said the company had to pay Michael Cohen.
“Allen said we had to get some money to Michael or reimburse Michael,” McConney testified. “He tossed a pad towards me and I started taking notes about what Allen said.”
Former Trump Organization comptroller Jeffrey McConney was asked what Michael Cohen’s position was with the business. “He said he was a lawyer,” McConney said.
Did he work for the legal department, the prosecutor asked? “I guess so.”
Jeffrey McConney, a senior vice president of the Trump Organization until last year, is explaining to the jury how the company kept its financial records and how it processed payments. Prosecutors are laying the groundwork for introducing the actual records that former president Donald Trump is accused of falsifying — the basis of this criminal case.
Donald Trump just raised his wrist and glanced at his watch as longtime Trump Organization finance executive Jeffrey McConney discussed record-keeping processes at the former president’s namesake company.
Former Trump Organization comptroller Jeffrey McConney is discussing Allen Weisselberg, another longtime finance employee at the Trump Organization who was allegedly involved in sorting out reimbursements to Michael Cohen for his $130,000 hush money payment to Stormy Daniels in 2016.
The next witness called to testify is Jeffrey McConney, a longtime comptroller at the Trump Organization who has retired. McConney has admitted to misconduct in other proceedings and was found liable for civil business fraud in a separate case brought by the New York attorney general.
Donald Trump was threatened with jail for any future violations of a limited gag order imposed in his falsifying business records case.
New York Supreme Court Justice Juan Merchan made it clear to Trump that his 10th gag order violation — which he ruled on at the start of Monday’s court session — was going to be the last that would result in only a fine.
