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President Donald Trump |
WASHINGTON — President
Trump’s new legal team made a chaotic debut as Rudolph W. Giuliani, who was
tapped recently to be one of the president’s lawyers, potentially exposed his
client to legal and political danger by publicly revealing the existence of secret
payments to Michael D. Cohen, the president’s personal lawyer.
After he moved into the
White House, the president began paying Mr. Cohen $35,000 a month, Mr. Giuliani
said, in part as reimbursement for a $130,000 payment that Mr. Cohen made to a
pornographic film actress to keep her from going public about an affair she
said she had with Mr. Trump. The president confirmed he made payments to Mr. Cohen
in a series of Twitter posts on Thursday morning.
The explosive revelation,
which Mr. Giuliani said was intended to prove that Mr. Trump and Mr. Cohen
violated no campaign finance laws, prompted frustration and disbelief among the
president’s other legal and political advisers, some of whom said they feared
the gambit could backfire.
Legally, the failure to
disclose the payments could be a violation of the Ethics in Government Act of
1978, which requires that federal officials, including Mr. Trump, report any
liabilities of more than $10,000 during the preceding year. Mr. Trump’s last
disclosure report, which he signed and filed in June, mentions no debt to Mr.
Cohen.
Politically, Mr.
Giuliani’s remarks — made in television appearances and interviews — raised
questions about the president’s truthfulness and created a firestorm at the
White House, where aides were caught off guard and furiously sought to deflect
questions they could not answer. Sarah Huckabee Sanders, the White House press
secretary, said she had been unaware of the payments before the interviews.
“Everyone is wondering,
what in the world is he doing?” said George Arzt, a longtime New York
Democratic consultant who has known Mr. Giuliani for decades. “I would not have
sent out Rudy to talk about the investigation. But Trump likes chaos and Trump
just added to the chaos.”
By the end of the day, the
president and his advisers had done little to clarify the confusion that Mr.
Giuliani had set in motion a night earlier.
Rudolph
W. Giuliani, the former mayor of New York, recently joined Mr. Trump’s legal
team.
Mr. Giuliani did not
consult every member of the president’s legal team, or the network of lawyers
around Washington whose clients have been entangled in Mr. Trump’s legal
disputes, according to several people close to the team. Emmet T. Flood, a
lawyer hired by Mr. Trump on Wednesday, was not
involved in Mr. Giuliani’s plans to reveal the payments to Mr. Cohen during an
interview with Sean Hannity on Fox News, one of the people said.
The abrupt disclosure — which even caught
Mr. Hannity, a confidant of the president’s, by surprise — set off a flurry of
calls between Mr. Trump’s lawyers as they sought to determine whether Mr.
Giuliani meant to reveal the president’s reimbursement. Witnesses and lawyers
around Washington scoured transcripts, watched television clips and called each
other in an effort to grasp the consequences of what Mr. Giuliani had said.
The president’s other
lawyers ultimately determined that Mr. Giuliani had consulted with Mr. Trump,
people close to them said, but were left speechless about why he decided to
make the disclosure in such a high-profile way and without any
strategy to handle the fallout.
Mr. Giuliani recognized
the situation was problematic, two people close to him said, because Mr.
Trump had previously said on Air Force One that
he was unaware of the hush payments to Stephanie Clifford, the actress who
performs as Stormy Daniels. However, Mr. Trump and his aides see lying to or
misleading the news media as far less troublesome than lying to investigators,
they said.
Even some of the
president’s advisers said they were skeptical of Mr. Giuliani’s statements that
Mr. Cohen entered into a settlement, made payments to a pornographic film
actress and was reimbursed by the president all without Mr. Trump’s knowing
why.
Mr. Giuliani’s disclosure
is a sign of how Mr. Trump’s reshuffled legal team — which now includes a
highly paid Washington lawyer, a famous former mayor, a constitutional lawyer
who specializes in religious cases and former federal prosecutors — will
function in the coming weeks as they sort out who takes the lead on
representing the president.
Mr. Giuliani has said he
is the lead lawyer dealing with the special counsel’s investigation in
Washington. But his statements on Wednesday night related to the continuing
investigation in New York that is examining the conduct of Mr. Cohen. People
close to the president are concerned that Mr. Trump and Mr. Giuliani may create
more problems for themselves if they consult only with each other and leave out
the other lawyers who may know more about the nuances of the cases.
Mr. Trump faces a
two-front battle with the Justice Department: one investigation in New York
into Mr. Cohen and the special counsel investigation in Washington.
Whoever runs the
president’s legal defenses will almost certainly adopt a more aggressive strategy
than the previous team, which was led by the Washington lawyers John Dowd and
Ty Cobb.
Despite the president’s
desire to take on the special counsel, Robert S. Mueller III, and the Justice
Department, Mr. Dowd and Mr. Cobb persuaded Mr. Trump to buy into their
strategy of cooperation. The more helpful the president was, Mr. Dowd and Mr.
Cobb told him last year, the more likely the investigation would conclude by
year’s end.
Instead, the investigation
has intensified, and the president has concluded that approach was a mistake,
according to people close to him. Convinced that the investigation is a growing
threat to his presidency, he has resorted to his initial inclination to fight.
Mr. Trump appears to hope
that Mr. Giuliani, a like-minded political street fighter from New York, will
aid his combative approach. Mr. Giuliani’s comments on Wednesday and Thursday
were an attempt to do just that.
His aggression carried
risks. Besides revealing that the president had reimbursed Mr. Cohen, Mr.
Giuliani appeared to admit that the payment to Ms. Clifford just before
Election Day in 2016 was made because of concerns about the coming vote. That
could be used to argue that it was an illegal campaign contribution.
“Imagine if that came out
on October 15, 2016, in the middle of the, you know, last debate with Hillary
Clinton,” Mr. Giuliani said on the Fox News program “Fox & Friends.” “Cohen
didn’t even ask. Cohen made it go away. He did his job.”
Violating campaign finance
laws can be serious. John Edwards, a former Democratic senator and presidential
hopeful, was charged with corruption for his role in trying
to hide details of his affair with a videographer during his 2008 bid for the
White House. Mr. Edwards’s trial ended in an acquittal on one count with
the jury unable to reach a verdict on five others.
Mr. Giuliani’s comments
also raised fresh questions about the president’s relationship with Mr. Cohen.
As Mr. Giuliani told it, Mr. Cohen entered into a legal agreement with Ms.
Clifford and paid her without Mr. Trump’s knowledge. Mr. Giuliani described
that as commonplace, saying he performed similar services for his own clients.
But legal ethics experts said such an arrangement was highly unusual and would
only expose Mr. Cohen to new questions.
Photo
Michael
D. Cohen, the president’s personal lawyer, paid $130,000 in hush money to Ms.
Clifford, who says she had an affair with Mr. Trump.
Lawyers are required to
keep their clients fully informed of their activities and are generally
prohibited from advancing money to or on behalf of their clients, said Deborah
L. Rhode, a scholar on legal ethics at Stanford Law School. “This is a guy who
says he’ll take a bullet for the president,” she said. “And what they’re giving
him is the legal ethics equivalent of a bullet.”
“Giuliani thinks he’s
serving President Trump’s interest,” she said. “President Trump’s interest is
not the same as Michael Cohen’s interest.”
In his tweets on Thursday,
Mr. Trump contradicted his earlier statements that he knew of no payment to Ms.
Clifford. Mr. Trump said he paid a monthly retainer to Mr. Cohen and suggested
that the payment to the actress could not be considered a campaign
contribution.
Government watchdog groups
warned that willfully violating the financial disclosure laws can be punished
by a fine of up to $50,000 and a year in prison. Although federal officials who
lie on the forms are also typically charged with other, more serious offenses
such as bribery or fraud, more than 20 officials or former officials have been
charged in the past 12 years with making false statements to federal officials,
a felony offense. An Environmental Protection Agency official who failed to
report a source of income on the form, for instance, was convicted and
sentenced to probation.
“Mr. Giuliani did his
client no favors,” said Norman L. Eisen, the chairman of the good-government
group Citizens for Responsibility and Ethics in Washington.
Mr. Cohen had worked for
Mr. Trump for a decade and has said he would “take a bullet” for him. Mr.
Trump, however, treated Mr. Cohen poorly over the years, people familiar with
their relationship have said.
Ms. Clifford is suing Mr. Cohen to try to
be released from the nondisclosure agreement. And Mr. Cohen is under federal
investigation into possible bank fraud, raising concerns in the president’s
inner circle that Mr. Trump’s longtime personal lawyer will cooperate with the
government. Federal agents raided Mr. Cohen’s office and home last
month and seized documents that included information about payments to Ms.
Clifford.
Mr. Cohen recently invoked his Fifth Amendment right
against self-incrimination in Ms. Clifford’s lawsuit.
president trump in court to speak against mueller
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