Trump Lawyers Payment to Porn Star Flagged by Bank

[RandySF]

The bank used by President Trump’s personal lawyer, Michael Cohen, to wire $130,000 to a former adult-film actress flagged the transaction as suspicious and reported it to the Treasury Department, the Wall Street Journal reports.

“The lawyer, Michael Cohen, wired the money to a lawyer for former actress Stephanie Clifford, known professionally as Stormy Daniels, from an account at First Republic Bank . The money was received on Oct. 27, 2016, 12 days before the presidential election, another person familiar with the matter said. It isn’t clear when First Republic reported it to the government as suspicious.”

Also interesting: “After Mr. Trump’s victory, Mr. Cohen complained to friends that he had yet to be reimbursed for the payment to Ms. Clifford, the people said.”


https://politicalwire.com/2018/03/05/trump-lawyers-payment-porn-star-flagged-bank/

[The Velveteen Ocelot]

1. Reimbursed by whom, exactly?

[unblock]

4. very difficult not to see this as an unreported campaign contribution, almost no matter what.

well i suppose if he were actually reimbursed by the campaign, then it would be a campaign expenditure rather than a contribution. i have to think that would be illegal. i'm not familiar enough with the specific laws but i have to think that's not what campaign funds are supposed to be spent on.

if he was reimbursed by donnie or a donor or not reimbursed at all, then it's in effect a campaign donation in kind, because it was clearly done to benefit the campaign. and just because the money may have bypassed the campaign bank account doesn't change that.

[Dave Starsky]

11. From the FEC website:

"Payments for day-to-day expenses, such as staff salaries, rent, travel, advertising, telephones, office supplies and equipment, fundraising, etc., are permissible operating expenditures. Interest paid on a loan is also considered an operating expenditure.

"Certain other expenses are considered to be permissible operating expenditures on a case-by-case basis, including meal, travel, vehicle and legal expenses. For example, if a campaign pays for the candidate’s travel and subsistence in connection with his or her campaign activities, those payments are also considered operating expenditures.

"Generally, as long as such expenses would not exist irrespective of the candidate’s campaign or duties as a federal officeholder, they are considered permissible."

Although I guess this is a legal expense, the campaign might have to justify that last part.

[barbtries]

5. good question.

first thought was trump, but then again - the campaign perhaps.

[unblock]

2. but her emails

ffs we elected one of the most buttoned-down, proper, prepared, sensible candidates for president ever, and somehow we're stuck with this damn disgraceful disaster of a dunce instead.


i know donnie loves to delay paying suppliers, and maybe not paying them at all until they sue, and then only paying them a fraction, but you'd think the guy who pays hush money for you would be someone you might be eager to pay in full on time.

[ProfessorGAC]

9. "We Elected One of The. . ." etc.

You're right. 4 of the last 5 elections. And we got shafted twice.

[barbtries]

3. what?!

i thought he just did it out of the goodness of his heart!

[mitch96]

6. I thought all transactions over $10,000

That the IRS had to be notified...
m

[brush]

8. That 10k figure is circulated but I've heard it's really aroung $6500.

[ProfessorGAC]

10. Pretty Sure That's Cash, As In Currency, Mitch

Not absolutely certain, but i recall that 10k number relating to direct cash deposits. IIRC, they don't have to report you taking 10k in cash out of your own bank account, but you bring in a bag of cash to deposit and they have to report it.

[Jim Lane]

12. Yes, it's currency, and it's for transactions over $10k, and it does apply to your own withdrawal

You write that "they don't have to report you taking 10k in cash out of your own bank account...." The bank DOES have to report a cash withdrawal, even from your own account. Withdraw $10,000.00 and there's no report. Withdraw $10,00.01 in cash and the bank must report it.

The point of these rules is to create a record. Paying hush money to a porn star isn't covered at all if the payment is made by check, because the bank retains a copy of the check, showing payer, payee, amount, and date.

ETA: I see the payment was actually made by electronic transfer. That also creates no reporting requirement, for the same reason.

All the foregoing relates to a CTR -- cash transaction report. This is a bright-line test. The bank MUST file a CTR for any transaction in currency that's over $10k, and has absolutely no CTR obligation for any lesser amount (although multiple small transactions in the same day, if they add up to more than $10k, do require a CTR).

There's a separate form called the SAR -- a suspicious activity report. This one is more subjective. There are some things that definitely require the bank to file one, but other times it's a judgment call. The SAR requirement can kick in even for a non-cash transaction. My guess, based on what little I've read about this incident, is that the bank had no CTR requirement, but that something about the payment prompted the bank to file the SAR.

[ProfessorGAC]

13. It's The SAR I Remember

BTW: I did say I wasn't certain, so I'll take to being corrected
I was secretary of the board of directors of a 100 million dollar CU for roughly 20 years
I remember getting the seminar on SAR up in Madison, WI.
Some sort of fiduciary duty learning and then golf
Pretty good for a volunteer position

[Liberal In Texas]

7. So Trump stiffed him.

Surprise Surprise.