Stormy Weather TFG on Criminal Trial in NYC

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Adam Klasfeld
@KlasfeldReports
Back on the stand: Gary Farro.

The prosecutor returns to the "Know Your Customer" form that Michael Cohen had to supply to open an account.

Asked what would have happened if the bank knew the money would go to an adult film actress, Farro reiterates that First Republic Bank does not work "with that industry."

Cohen may not have been able to open an account.

Farro explains what a home equity line of credit (HELOC) is — the kind that Michael Cohen used to obtain the money to funnel to Stormy Daniels' lawyer.



Next exhibit:

In an email assigned a "High" importance, the bank's staffer requests expedited processing on a $131,000 advance.





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.

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.

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.

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.

Asked if the witness is paying for his own lawyers, Farro replies that he isn't.

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.

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."

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.

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."

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.

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Morning recess.

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 (expletive) is going on."

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."

Trump in the C-SPAN video:

"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.”

No further questions. No cross. The witness leaves.

Next witness up:

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.

The witness authenticates another passage of the transcript about the "Access Hollywood" tape.

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Adam Klasfeld
@KlasfeldReports
Next witness of substance:

"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 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.

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.

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 (sic) 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."

Exhibit: Email from June 15, 2016

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."

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."







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.

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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.

Klasfeld notes that there are wifi issues.





Davidson said he understood that McDougal deal for Michael Cohen's "client" closed, which he said referred to Trump.

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Adam Klasfeld
@KlasfeldReports
·
4h
Three days after the execution date of the contract, Davidson and Howard exchanged texts about letting down ABC.

"Btw - they promised her a role on dancing with the stars. Season 578568655," Davidson quipped, confirming this was a joke.

"Ha!" Howard replied.



Questioning pivots to Davidson's former client Stephanie Clifford p.k.a. Stormy Daniels.

Davidson:

After Daniels' manager Gina Rodriguez received a voicemail from Michael Cohen, Rodriguez called him to complain "some jerk" called her, was "very aggressive," and threatened to sue her.

Q: I hate to ask this way, but who was that jerk?
A: (chuckling) Michael Cohen

The phone call happened in 2011, after a blog post on The Dirty named Trump and Daniels.

Davidson says he sent a cease-and-desist letter, which succeeded in taking that story way back then.



hen, the prosecutor pivots, came the "Access Hollywood" tape.

"It's what was called a 'hot mic,'" Davidson recalled, recapping the conversation between Trump and Billy Bush.

Euphemistically, Davidson says the "Access Hollywood" tape produced "allegations" that the hot mic recorded comments that were "troublesome."

As a result of its release, interest in Stormy Daniels' story reached a "crescendo," Davidson said.

Davidson's then-appraisal of the impact of the "Access Hollywood" tape:

"Trump is (expletive)."

Howard replied, "Wave the white flag, it's over people!"

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Davidson said that AMI "washed their hands" of the deal.

In other words, he says: "Michael Cohen stepped into AMI's shoes."

Davidson says that Gina Rodriguez told him that he would have to deal with "that asshole Cohen."

Q: What was Stormy Daniels' pseudonym?
A: Peggy Peterson.

Q: What was Trump's pseudonym?
A: David Dennison.

Davidson supplies an interesting backstory. P- was short for "plaintiff," and D- was short for "defendant. But Dennison was also on his high school hockey team.

Dennison wasn't happy about how Davidson used his name, the witness cracks, sheepishly.

Email from mid-October refers to "PP v. DD," the shorthand for Daniels' and Trump's pseudonyms.

Davidson informed Cohen that Daniels did not receive the money stipulated in the written settlement agreement.

Davidson says Cohen had a bunch of excuses for nonpayment, including Yom Kippur, the Secret Service, and the computer servers.

One time, Davidson recalled Cohen telling him: "My guy is in five f***ing states today," as an excuse for nonpayment.

Davidson says he believed that Cohen didn't have the authority to send the money:

"I let him know that [Daniels'] level of dissatisfaction was quite high."

Then, Cohen said: "Goddamn it, I'll just do it myself," according to Davidson.

Q: Did you ever believe that Michael Cohen was going to be the ultimate source of the funds?
A: Never prior to funding, no.

Q: Where did you understand the money would be coming from?
A: From Donald Trump or some corporate affiliation thereof.

Next exhibit: Another email bearing the subject line "PP v. DD."

Davidson: "Please be advised that my client deems the Settlement Agreement cancelled and void ab initio," using the Latin phrase for "from the beginning."

Davidson said that he effectively told Cohen and his client, "I'm out. Go in peace."

The rest of the email read:

"Please further be advised that I no longer represent her in this or any matter."

Davidson said he expressed to Cohen that he believed Cohen was not being truthful.

Q: What did you think was really happening?

After repeating the question, Davidson answers: "I thought he was trying to kick the can down the road until after the election."

Afternoon break.





False start as prosecutors try to introduce an exhibit.

Objection from the defense table.

Sustained.

After a bit of back-and-forth, Davidson says the resurrected Stormy Daniels deal shifted from AMI to Cohen, directly.

Davidson:

"The entire matter was very frustrating, that it was on again, off again, that there were delays in funding, cancellation, disengaging with client, re-engaging with client."

Davidson:

"Then, I call Cohen, and Cohen tells me, 'I'm not paying anything.'"

AMI was paying, Cohen told him, according to the testimony.

Davidson reviews an exhibit of an email showing him sending his wiring instructions to Cohen — "for the fourth or fifth time," he adds, with a rueful laugh.

On Oct. 26, Michael Cohen sent Davidson an email with the subject "First Republic Bank Transfer."

Cohen forwarded the message after Davidson told him he "didn't believe" he actually planned to send the money.

The original email came from Farro's assistant at First Republic Bank.

Farro was the first witness testifying today, and it comes full circle.

Davidson: "It meant nothing to me because he had my wiring instruction."

But Cohen didn't wire the funds.

Cohen forwarded the email.

Davidson on Cohen:

"He was highly excitable. Sort of a pants-on-fire sort of guy."

The witness compares Cohen to the distracted dog shifting attention to a "Squirrel!" in the movie "Up."

So ends his testimony for the day.

The jury is excused.

Justice Merchan tells the lawyers to expect to begin oral arguments on the next batch of alleged gag order violation on Thursday, at 9:30 a.m. "sharp."

Trump, his son Eric and the defense attorneys exit.

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TL;dr

Summarize
@summarizest

Summary:

Judge Merchan's order warns Trump of potential incarcẹration if he continues willful vioIations, despite the limitation of a $1,000 fine per vioIation under the criminaI contempt statute.

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Adam Klasfeld
@KlasfeldReports
Good morning from New York.

Trump's criminal trial resumes this morning, but before the jury comes in, the judge will hear arguments over the next batch of alleged gag order violations after writing days ago: "jail may be a necessary punishment."

Live coverage ahead





That said, Trump's latest batch of alleged gag order violations fell *before* the judge's latest, most explicit warning of jail.

So it's seen as unlikely that Merchan will choose that option this time.



Trump enters the courthouse and sits at the defense table.

He adjusts himself in his chair as the photojournalists take his picture.

Entering now:

The prosecution team

"All rise."

Justice Merchan announces that proceedings will begin with the contempt hearing.

The prosecution is not going to play the video, just describe the clips.

rosecutor Christopher Conroy starts off quoting this from Trump:

“That jury was picked so fast. 95% Democrats…You think of it as a purely Democrat area. It’s a very unfair situation.”

Conroy: "It’s not just any jurors. It’s these jurors in this case."

Conroy says comments like these create "an air of menace."

“By talking about the jury at all,” Trump places the integrity of the proceedings “in jeopardy,” he says.

Conroy turns to Trump's statement during a press conference: “David’s been very nice, a nice guy.”

"This is classic carrot and stick," Conroy says of Trump's remark about Pecker.

He adds Trump's comment is a "deliberate shots across the bow" to other witnesses.

Conroy turns to Trump's comments about Michael Cohen, the two other alleged violations.

"We understand the court's concern about Michael Cohen," he says.

In his recent order, the judge gave Trump a pass on one alleged violation because he'd arguably been responding to Cohen.

But Conroy says Trump hadn't been responding to Cohen here.

Moreover, the prosecutor says: “Michael Cohen is not a political opponent.”

Conroy asks for a maximum fine, though explicitly NOT jail.

Since "we prefer to minimize disruption to these proceedings, we are not yet seeking jail."



Blanche brings up Biden's recent swipes at Trump: “Donald has had a few tough days lately. You might call it Stormy weather.”

The lawyer argues that Trump needs to be able to respond to the Stormy Daniels reference.

Merchan notes the gag order allows Trump to respond to Biden, but Trump doesn't need to swipe at Daniels to do that.

Blanche defends Trump's remark about Pecker.

"He gave a very factual and neutral answer."

Blanche denies any deeper message there.

"There's no threat. There's no threat in what President Trump said."

After Blanche makes a reference to "what's going on behind us," the judge pins him down: "What are you referring to?"

"The press," Blanche says.

Merchan pointedly notes there's "no surprises here" at the media interest.

Blanche complains about Trump's inability to respond to press and witness statements: "Everyone in the world can say everything that they want."

Justice Merchan notes the difference — Trump is a criminal defendant.

Merchan:

I don’t have authority over the press. I don’t have authority over the other people saying things.

Justice Merchan remarks that he's not "terribly concerned" about Trump's remarks about Pecker.

Todd Blanche displays a string of exhibits of Michael Cohen taunting Trump in tweets and retweets throughout April.

Cohen's nickname for him, "Von (expletive)," has entered the public record.



Justice Merchan presses Todd Blanche to respond to Trump's remarks about the jury.

Blanche says that Trump believes that he's facing a "political persecution."

Merchan asks him whether it's a violation of the gag order. Blanche, after a preamble, finally answers no.

After Blanche says that Trump didn't refer to any *particular* juror in his remark, Justice Merchan shakes his head and looks at him incredulously.

That's clearly the one that bothers the judge most.

The morning's hearing ends.

Brief recess.

As happened during the first contempt hearing, Justice Merchan did not immediately issue a ruling.

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Adam Klasfeld
@KlasfeldReports
Keith Davidson is back on the witness stand.

"All rise."

The jury is entering.

Davidson reviews a series of emails between him, Dylan Howard and Michael Cohen, starting on the evening of Oct. 26, 2016.

That's when Cohen started his scheme to funnel the hush money through his shell company, Essential Consultants LLC.

Davidson says the emails reflect his losing trust in Cohen.

Q: I believed that he was not telling me the truth.
A: About what?
Q: Delays in funding.

On Tuesday, Davidson said he thought Cohen tried to kick the can down the road until after the election.







Testimony turns to the Wall Street Journal's report exposing Karen McDougal's story.

Davidson says that Cohen told him the boss would be upset, and he understood that to mean Trump.



Dylan Howard's response to the "What have we done?" text was "Oh my god."

Davidson recalls a conversation with a frustrated Michael Cohen on Dec. 9, 2016.

"Jesus Christ, can you (expletive) believe that I’m not going to Washington? After everything I’ve done for that (expletive) guy!" [...]

"I've saved that guy’s ass so many times, you don’t (expletive) know."

Davidson also recalled Cohen telling him:

"You know that (expletive) guy’s not even paying me the $130,000 back."

Exhibit:

Keith Davidson responding to a Wall Street Journal press inquiry by saying, "Nothing about the present day regurgitation of these rumors causes us to rethink our prior denial issued in 2011."

He says he then forwarded that exchange to Cohen.

Davidson on why he forwarded the press inquiry to Cohen:

"I think I had a contractual duty to let them know that something was about to be published."



The prosecutor and the witness go line-by-line, showing how an extremely technical reading of the document may be justified.

For example, Davidson quibbles with the phrase "hush money."

He prefers the word "consideration."

On Jan. 17, 2018, Cohen texted Davidson: "I have her tentatively scheduled for Hannity tonight. Call me after your trial."

Davidson says Cohen was "frantic," with many phone calls and text messages.

Text from Cohen to Davidson on Jan. 27, 2018:

“Keith,
The wise men all believe the story is dying and don’t think it’s smart for her to do any interviews."

Davidson replied: "100%."

Daniels never went on Hannity.

More texts about Daniels:

Cohen: "Just no interviews or statements unless through you."
Davidson: "Got it."

More texts:

Davidson, 1.24.18: Spoke to her. Everything is as we discussed - she steadfastly refused to speak about the past.

Cohen, 1.25:18: We will see because it airs tonight.

Cohen, 1.26.18: Why is she going on Kimmel after the Sotu

Davidson, 1.26.18: Idk I was pissed. She said this was her shot. I’m meeting with her this weekend to prep her and get the statement.

Trump is closely following along the text message chain as the evidence is displayed on the screen in front of him.

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Daniels denied on Kimmel that she signed signed it, sparking this exchange.

Cohen: "They showed her signature and she claimed it was not hers on Kimmel."

Davidson: "Wtf"

He delicately calls that an “expression of exasperation,” then spells out the acronym under his breath.

Texts from 1/31/18

Cohen: "Please tell Gina to ensure she responds the same as your statement tomorrow when she does the view. This is not a comedy show."

Davidson: "Gina is ticked off at stormy because stormy made her look like a liar. Gina says she is going to have a LONG talk with stormy on the plane to NY tomorrow. She assured me this will get handled."

Davidson says Cohen threatened to sue Stormy Daniels, saying things like "Don’t (expletive) with us" and "You don’t know who you’re (expletive) with."

Next texts: Davidson runs his reply to a press inquiry from Chris Cuomo by Cohen.

Davidson said reports that Michael Cohen paid Daniels through "personal funds" is in "complete harmony with what [Cohen] informed me of at the time of the transaction.”

"Perfect," Cohen replied.

Davidson said he believed it was "truthful," even if he stood by his earlier testimony that he believed Trump was the ultimate source of the funds.

The prosecution's final question on direct—

Q: Do you have any stake in the outcome of this trial?
A: No, not at all.

Morning recess.

[ti-amie]

Adam Klasfeld
@KlasfeldReports
Trump's lawyer Emil Bove kicks off cross-ex:

Asked whether he ever met Trump, Davidson replies, "Never"

Bove asks him about his "strong professional relationship" and close friendship with Dylan Howard.

Q: How did you guys meet?
A: I don't know.

Q: Was it in connection with your work?
A: I think so.

Under questioning, Keith Davidson agrees that Karen McDougal had a "very healthy career" before her alleged affair with Trump became public.

After the 2011 blog post on The Dirty, the Daily News picked it up. Davidson also worked to get that story down.

But Davidson did not formally rep Daniels, via an engagement letter, until 2016.

Bove presses Davidson to agree that "Peggy Peterson" and "David Dennison" pseudonym was his contrivance — but Davidson pushes back.

Q: That was your idea, right?
A: No.

Davidson says this whopper when asked about Michael Cohen complaining about not going to Washington after Trump's election:

"I thought that he was going to kill himself."

Bove asks a series of questions about extortion, sparking objections from the prosecution table. The judge lets in a question about whether the statute of limitations expired on that crime.

Q: "You're an attorney and you haven't thought about that?"
A: "I have not."

Bove heavily suggests that Davidson was concerned about "the line" before committing extortion.

Q: Even today, you don't remember whether you were concerned about linking the election to these payments.
A: Correct.

Q: In 2016, you had in fact familiarized yourself with the law of extortion based on a very specific experience, right?
A: No.

Davidson agrees that he was subjected to a state and federal investigations with regard to Hulk Hogan.

Asked if he threatened Michael Cohen regarding the election, Davidson replies emphatically: "I never made any threats to anyone."

Bove asks Davidson about TMZ posting information about Lindsay Lohan regarding a confidential patient file.

Davidson says he doesn't recall helping axed Betty Ford employee get paid.

Bove asks Davidson about other legal matters he's dealt with involving Tila Tequila, Charlie Sheen and others.

Davidson frequently answers that he doesn't recall these.

Bove sarcastically asks whether Davidson's memory "seems a little fuzzy" about these events.

Davidson replies that he's had "1,500 clients in my career."

Bove tells the witness: "We’re both lawyers. I’m not here to play lawyer games with you."

Objection
Sustained.

After Bove says he's trying to extract truthful answers, Davidson replies: "You’re getting truthful answers, sir."

But Davidson says he's "not going to discuss confidential matters."

"And if you’re not here to play legal games, then don’t say, 'Extract,'" he pointedly adds.

Q: You made a monetary demand to Hulk Hogan's representatives so as to not publish these tapes?
A: No.

Asked if it was for Hulk Hogan to get the rights to purchase the tapes, Davidson answers: Yes.

Q: There was an FBI investigation related to this?
A: Yes.

Davidson agrees that he practiced criminal law toward the beginning of his career — and Bove says the FBI conducted a sting operation.

The Tampa Police Department also conducted an extortion investigation.

Davidson was not ultimately charged.

Q: But that experience gave you familiarity with extortion law?
A: Perhaps, I'm not sure.

Next exhibit: Davidson's retainer agreement with Karen McDougal.

It originally called for 35% of attorney's fee, later increased to 45%, according to Bove.

The defense revisits Davidson's teaser to Dylan Howard: "I have a blockbuster trump story."

Davidson concedes that AMI initially wasn't interested, in part because Karen McDougal hadn't provided enough "corroborating information."

Lunch recess.

Andrew Weissmann (weissmann11 on Threads)
@AWeissmann_
Weissmann Notes from 100 Centre St:
-- The cross of Davidson is bizarre.
--The proper cross is to point out that he had NO dealings directly with Trump and then to sit the hell down.
--Instead Bove chose to try to make Davidson out to be a sleaze- odd choice, particularly since that was not the tack with David Pecker- who by his own account engaged in far sleazier and more consequential activity. One suspects the cross was at the direction of the client, one Donald J. Trump.

[ti-amie]

Adam Klasfeld
@KlasfeldReports

We're back.

Trump's attorney Susan Necheles hands over "a stack of news articles" by legal commentators like Jonathan Turley and others. She says Trump wants to post them, but she wants to make sure they do not violate the gag order.

"We think that they are perfectly fine."

Prosecutor:

"It seems odd that they're asking the court for an advanced ruling" on these sorts of things.

Justice Merchan:

"I'm not going to give advanced rulings."

The judge adds "there is no ambiguity" in the gag order, and the appellate court confirmed that.

"I think the best advice you can give your client is, 'When in doubt, steer clear,'" Merchan says.

Necheles pushes the issue of sharing these articles:

"I frankly do not know if that violates the gag order."

Merchan reiterates that he's not going to give advanced rulings and says once again, "When in doubt, steer clear."

[ti-amie]

Adam Klasfeld
@KlasfeldReports
Davidson's cross-ex resumes:

Trump lawyer Emil Bove unpacks a one-degree of separation happenstance.

Karen McDougal's ex-husband was James Grdina, whom Bove said was tied to The Dirty, the blog that named Stormy Daniels and Trump in 2011.

Questioning turns to Davidson's conversations with Michael Cohen:

Davidson is asked whether he ever expressed that Stormy Daniels had "settler's remorse" or used the word "leverage." The witness says he doesn't recall.

At one point, Davidson suspected that Michael Cohen had been recording their conversations.

"He was talking in a linear fashion," Davidson said. "It was a very structured conversation. It wasn’t really his personality."

Davidson, donning headphones, hears his tape with Cohen.

After listening, Davidson agrees he used the word "leverage."

Q: That was Ms. Daniels' goal, was it not, to create leverage over Donald Trump.
A: No.

During this series of questions, Davidson is being confronted with his recorded conversation to refresh his memory.

So we're not hearing the conversation, but he's listening — via old-school headphones that hang below his chin rather than above his head.

In a private conversation with Cohen, Davidson told him that there wasn't any indication that Cohen needed authority to pay the $130,000.

Davidson agrees he also said: "It's the truth, Michael. You know that, and I think that you and I both want the truth out there."

Davidson recalls stating that he thought Trump would lose the election, and when he did, "we lose all (expletive) leverage and this case is worth zero."



Bragg sits at his usual spot two rows back behind the prosecution table, watching his assistants do their work.