Michael Cohen Prosecutors Probed Others for Lies, Obstruction, U.S. Says

(Bloomberg) -- U.S. prosecutors who probed whether hush money paid to a porn star during Donald Trump’s presidential run were campaign-finance violations also examined whether anyone besides Michael Cohen gave false testimony, lied to investigators or otherwise obstructed justice.

The disclosure comes in a redacted footnote in court papers related to Cohen’s case, which was unsealed Thursday in Manhattan.

The filing also shows that when federal agents made their requests for search warrants in the case, they had evidence that Cohen had conversations directly with Trump around the same time as Cohen negotiated with a lawyer for Stephanie Clifford, the adult film actress known as Stormy Daniels, to buy her silence about an alleged affair with the candidate years earlier.

Prosecutors in Manhattan informed U.S. District Judge William Pauley this week that they had concluded their probe of campaign-finance violations, and Pauley ordered the unsealing of the government’s letter and investigative materials.

Federal agents determined that Cohen was involved in a flurry of phone calls both before and after the payments were made to Daniels, including calls to Trump and his campaign press secretary, Hope Hicks, and to David Pecker, the president of American Media Inc. who was close to Trump, the filings show.

Prosecutors haven’t announced any further charges beyond Cohen, an indication the inquiry will close with no additional action. The end of the case removes a significant legal threat to the president’s business and executives close to him.

Other unsealed documents include search warrants, affidavits and filings related to the case. Most of those were released previously with heavier redactions.

Cohen is serving three years in prison after pleading guilty to campaign-finance violations and other crimes. Prosecutors said the payments benefited the Trump campaign by keeping the accusations secret and that they violated U.S. law because they weren’t disclosed publicly. According to court papers, the reimbursements were classified as “legal expenses” and not as payments related to the campaign.

Cohen admitted paying off a woman who claimed to have had an affair with Trump, saying in a court hearing that he did so at Trump’s direction and that Trump’s company then repaid him. In addition to the $130,000 payment to Daniels, Cohen admitted making an illegal contribution of $150,000 to onetime Playboy playmate Karen McDougal.

Prosecutors have said that at least two unidentified Trump company executives approved improper payments to Cohen. Allen Weisselberg, the Trump Organization’s chief financial officer, testified before the grand jury under a grant of limited immunity.

"We are pleased that the investigation surrounding these ridiculous campaign finance allegations is now closed," Trump’s attorney Jay Sekulow said in a statement. "We have maintained from the outset that the President never engaged in any campaign finance violation."

Cohen issued a statement in response saying the decision to exonerate the Trump Organization should be investigated by Congress and the Justice Department. Cohen spent his last few months before prison testifying to congressional panels about Trump’s business practices, alleged frauds, and the ways in which Trump’s associates tried to keep him quiet.

"As I stated in my opening testimony, I and members of the Trump Organization were directed by Mr. Trump to handle the Stormy Daniels matter; including making the hush money payment," Cohen said in the statement.

To contact the reporters on this story: Christian Berthelsen in New York at cberthelsen1@bloomberg.net;Erik Larson in New York at elarson4@bloomberg.net;David Voreacos in New York at dvoreacos@bloomberg.net

To contact the editors responsible for this story: David Glovin at dglovin@bloomberg.net, ;Jeffrey D Grocott at jgrocott2@bloomberg.net, David S. Joachim

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