Transcript: Michael Cohen Testifies Against Trump In New York, Their Recorded Conversation on Alleged Suppression of McDougal Story Played In Open Court

As you read this, remember that Michael Cohen has not been cross-examined. This is the first part of his testimony that portrays Trump in a bad light. Once the prosecution is done, the defense will challenge these claims below.

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On a significant day at the New York Business Records falsification and election interference trial of Donald Trump, Susan Hoffinger conducted a direct examination of Michael Cohen, Trump's former lawyer, at 100 Centre Street, Manhattan. Cohen testified about his legal and non-legal involvements with Trump, revealing intricate details of their professional relationship that spanned years, including non-payment of substantial legal fees.

Cohen's testimony included pointed insights into how Trump managed his business dealings. He recounted an incident involving a $100,000 legal bill related to Trump Entertainment Resorts that was not paid. Cohen stated, "It was quite lengthy and there were some issues, we ultimately resolved it and the bill was about $100,000."

Cohen also described his role within the Trump organization, emphasizing that he worked directly under Trump and not as part of the general counsel's office, noting, "Just Mr. Trump." This direct line to Trump involved handling sensitive and critical tasks, including negotiating with vendors to reduce bills significantly.

"Every single day, and multiple times a day," Cohen met or spoke with Trump, handling both business and personal matters, including interfacing with the press to manage Trump's public image, he said.

One of the most revealing aspects of Cohen's testimony involved his discussions with David Pecker, head of American Media Inc. (AMI), about managing negative news and promoting positive stories about Trump during the campaign.

They discussed the strategic use of the National Enquirer's broad reach to influence public perception. Cohen recalled how mock-ups of negative stories about Trump's political opponents were used, sharing these with Trump, who responded enthusiastically, "That's fantastic," or "That's unbelievable."

The trial also touched on specific incidents of 'catch and kill' practices involving stories that could harm Trump's image, such as the story of Dino the Doorman, with Cohen and AMI arranging to buy the life rights to keep the story unpublished.

Cohen described how these arrangements were made to ensure they lasted indefinitely, "the agreement had an end date, so I suggested make it in perpetuity."

As the examination continued, Cohen highlighted the potential impact of these stories on the presidential campaign, describing them as "Significant."

His narrative painted a picture of a tightly controlled and strategically managed approach to both legal and media aspects of Trump's business and political activities, directly overseen by Trump himself.

Michael Cohen also detailed his efforts to suppress a potentially damaging story about Karen McDougal during the 2016 presidential campaign. Under direct examination by Susan Hoffinger, Cohen recounted his frequent communications with David Pecker, CEO of American Media Inc. (AMI), and Dylan Howard, to ensure the story did not reach public outlets.

Cohen revealed that from June to August 2016, he was in constant contact with Pecker and Howard, discussing strategies to acquire and suppress McDougal's story. Their communications included various methods such as phone calls, texts, emails, and the Signal app, with Cohen emphasizing the urgency of keeping the story under wraps due to the ongoing presidential campaign.

One significant exchange displayed in court, People’s Exhibit 349, illustrated the intensity of Cohen's efforts. The exhibit summarized multiple calls between Cohen and Donald Trump on June 16, 2016, where Cohen attempted to update Trump on the situation immediately after speaking with Howard.

Further testimony revealed a direct conversation between Trump and Pecker, where Trump assured Pecker that covering the $150,000 cost to control the story would not be an issue, indicating Trump's commitment to suppressing the story by stating, "I’ll take care of it." Cohen interpreted this as Trump agreeing to reimburse AMI for the expenses.

Cohen also testified about the pressure he felt to keep the story from leaking to major news outlets like ABC News. He explained that Pecker assured him the agreement to suppress the story was "bulletproof," effectively preventing it from becoming public. Upon confirming that the agreement was finalized and secure, Trump's reaction, as recounted by Cohen, was enthusiastic and approving: "Fantastic, great job."

As of now, these details highlight the deliberate actions taken within Trump's circle to manipulate information and control media narratives during a critical time in his political career, aiming to shield potentially harmful stories from influencing public perception and voter decisions.

Continuing the testimony, the courtroom attention turned to the audibly recorded conversation between Michael Cohen and Donald Trump, played in open court, which had been a pivotal moment in the investigation. This recording, referred to as People's Exhibit 246, alongside its transcript, Exhibit 248, captured a discussion involving Trump, Cohen, and intermittently, Trump's assistant Rhona Graff.

The conversation initially covered a range of topics including a real estate project in Charleston before turning to the sensitive topic of reimbursing American Media Inc. (AMI) for the payment made for Karen McDougal's life rights. During the recording, Cohen and Trump discussed the specifics of the reimbursement to David Pecker, the head of AMI, who had laid out $150,000 for McDougal's story and was under pressure to retrieve this amount due to internal financial scrutiny at AMI.

Cohen testified about a subsequent meeting with Pecker where Pecker expressed his urgency and frustration over needing the money back, highlighting the financial and operational risks he was facing. Cohen relayed these concerns to Trump, who reassured him by saying, “don't worry, I'll take care of it.”

Further deepening the complexity of the situation, Cohen revealed concerns about Pecker potentially leaving AMI for a position at Time Inc., which could jeopardize the confidentiality of sensitive documents related to Trump stored at AMI. This led to discussions about creating an LLC to handle these matters discreetly, a plan Trump was reportedly briefed on and had discussed with Allen Weisselberg, the CFO of the Trump Organization.

Weisselberg's involvement was crucial as he handled all financial transactions within the organization, which Cohen highlighted by stating, “Every penny that came in or out went through Allen’s office." The conversation on the tape also touched upon the specifics of the payment for McDougal's life rights, with Trump directly referencing the amount of $150,000, indicating his awareness and involvement in the decision-making process.

As the jury listened to these details, the gravity of the discussions between Cohen, Trump, and Pecker about managing potentially damaging stories through financial transactions and strategic corporate structures became clear, showcasing the lengths to which Trump's team was prepared to go to protect his image during the critical moments of the presidential campaign.

Partial transcript since the court is in recess

Hoffinger: "Did you perform some additional legal work for him at that time?"

Cohen: "I did, some legal and some non-legal matters, he did not pay me."

Hoffinger: "Did you present him with a bill at some point for the legal work?"

Cohen: "I was asked to do a series of docs that had to do with Trump Entertainment Resorts, Mr. Trump had asked me, I reviewed it, 'It was quite lengthy' and there were some issues, we ultimately resolved it and the bill was about $100,000."

Hoffinger: "What happened to the Phillips Nizer [the law firm] bill for $100,000?"

Cohen: "It was not paid."

Hoffinger: "He offered me a position as EVP and special counsel and I would only answer to him, there was a back and forth negotiation regarding salary."

Hoffinger: "Who did you report to at the Trump organization?"

Cohen: "Mr. Trump."

Hoffinger: "Were you at any time part of the general counsel’s office at the Trump org?"

Cohen: "No ma’am."

Hoffinger: "Why not?"

Cohen: "It was not part of the discussion when I joined the Trump org."

Hoffinger: "So just for Mr. Trump?"

Cohen: "Just Mr. Trump."

Hoffinger: "Did he ever ask you to negotiate bills?"

Cohen: "Yes. For example, a law firm would send an invoice. If he felt it wasn’t fair and justified, he would give me the task to renegotiate a specific bill."

Hoffinger: "Did you also work on personal matters for him?"

Cohen: "Yes."

Hoffinger: "Did you work with the press to minimize negative stories and enhance positive stories?"

Cohen: "Yes."

Hoffinger: "During the time you worked there for Mr. Trump, how often would you say you met with him or spoke with him."

Cohen: "Every single day, and multiple times a day."

Hoffinger: "How did you get in touch with him?"

Cohen: "Generally in person or on a cell phone."

Hoffinger: "How did you come to start working with Donald Trump?"

Cohen: "I was introduced to Mr. Trump by Don Jr, there was an issue at Trump World Tower that Mr. Trump asked me, I had an apt and my parents and in-laws had bought there, so we overtook the board and resolved the issue to Mr. Trump’s satisfaction and he liked the way that occurred and he asked me to help him with other matters."

Hoffinger: "Did you and Mr. Trump meet with David Pecker at Trump Tower to discuss what AMI could do for the campaign?"

Cohen: "We met in Mr. Trump’s office on the 26th floor, we discussed the power of the National Enquirer and that fact that it is in so many supermarkets and bodegas and if we can place positive stories that would be beneficial and negative stories about other candidates would be beneficial. Pecker offered to Trump that he could keep an eye out for anything negative about Mr. Trump and could help us know in advance so we could stop it from coming out. Trump suggested Pecker let Cohen know about any such negative stories."

Hoffinger: "What did you do?" Cohen: "We needed to acquire the story so I reached out to Pecker."

Hoffinger: "Did you meet regularly with Pecker and Howard regarding McDougal's story?" Cohen: "Yes, to stop the story from getting to an outside source."

Hoffinger: "Did AMI regularly update you about negotiations regarding the story?" Cohen: "Yes."

Hoffinger: "How did you communicate with Pecker and Howard?" Cohen: "It would either be by phone, text, email, Signal app."

Hoffinger: "A little later in June 2016, were you present for a conversation that Trump had with Pecker about the Karen McDougal matter?" Cohen: "Yes ma’am, I was in Mr. Trump’s office, and Trump used a speaker box on his desk so I heard the conversation."

Hoffinger: "Who else was in Trump's office besides yourself and Mr. Trump?" Cohen: "Just the two of us."

Hoffinger: "Did David Pecker call in?" Cohen: "Yes ma’am, in Mr. Trump’s office, he had the call put through and he had a speaker box on his desk."

Cohen: "David [Pecker] stated that it’s going to cost him $150,000 to control the story, to which Mr. Trump replied no problem, 'I’ll take care of it.'"

Hoffinger: "And what did you understand that to mean?" Cohen: "That [Trump] was going to pay him back."

Hoffinger: "Why were you pressing for this information from Dylan Howard?" Cohen: "I wanted to know what the number was because I'd have to report back to Mr. Trump."

Hoffinger: "Was there some particular pressure at this point [in time]?" Cohen: "There was the campaign, and we were concerned that this story was going to find its way to ABC News."

Hoffinger: "Did Pecker tell you the agreement was bulletproof?" Cohen: "Yes, it would be locked down and prevented from going to ABC News. Effectively, the story had now been 'caught'."

Hoffinger: "What was Mr. Trump’s reaction to hearing that an agreement had been signed, and done, and that it was bulletproof?" Cohen: "Yes, [Trump's] reaction was 'fantastic, great job.'"

Hoffinger: "I now direct your attention to September 2016. Did you record a conversation with Trump regarding purchasing Karen McDougal's life rights?" Cohen: "Yes, and this was the only one I taped."

Hoffinger: "Whose voices are on that audio recording?" Cohen: "Trump, mine, Rhona Graff." Cohen: "Rhona came in and out, but you can hear her voice; she was Trump’s assistant."

Hoffinger: "After AMI finalized the deal [with KM] and paid the money for her life rights, did you speak to Pecker about Mr. Trump reimbursing?"

Cohen: "Pecker wanted the $150,000 back because it was too much money for him to hide from the CEO of the parent company, and he had laid out $30,000 (also for Dino the Doorman), so he was putting pressure on me to get the money to pay him back."

Hoffinger: "Did you have lunch with Pecker where he pressed you on the matter?" Cohen: "He asked me to meet him at a restaurant, and again he expressed his anger saying I need the money back, and I said Mr. Trump said he will pay you back."

Hoffinger: "Did you talk to Mr. Trump about that? Did you inform him about that?" Cohen: "He said 'don't worry, I'll take care of it.'"

Cohen: "There’s a file drawer, or a locked drawer as Pecker described it, where files that relate to Mr. Trump existed. And at that point in time, David was being considered for the position of CEO at Time Inc." Cohen: "And one of the concerns that I had that I expressed to Mr. Trump, was that if Pecker goes, there’s a series of papers there [at AMI] that relate to you." Hoffinger: "Was Mr. Trump concerned about that?" Cohen: "Yes."

Hoffinger: "You mentioned in your conversation with Mr. Trump, Allen Weisselberg. Who’s he?" Cohen: "CFO of Trump Org." Hoffinger: "Why did you tell Mr. Trump you were setting up the LLC and discussing it with Mr. Weisselberg?" Cohen: "Because Mr. Trump had previously directed me to speak to Mr. Weisselberg about getting this matter handled, because we are going to need money and open up the LLC and resolved this issue."

Cohen: "AW was the Chief Financial Officer and 'Every penny that came in or out went through Allen’s office.'"

Hoffinger: "What did Mr. Trump mean 'what do we got to pay for this?'" Cohen: "We were going to have to pay for [KM's] lifetime rights." Cohen: "Trump already knew based upon conversations with David, which is why he mentioned the number 150." Cohen: "'All that stuff' is referencing the information that David Pecker had accumulated over the years related to Mr. Trump that was in that locked drawer, including the Karen McDougal story."

Cohen: "Our friend David" I was referring to David Pecker."

Hoffinger: "Why didn’t you use David Pecker’s full name?" Cohen: "It wasn't necessary. Mr. Trump knew who I was talking about. It was an ongoing conversation that we had."