Cohen's Legal Troubles: Breaking The Law

Michael Cohen, former lawyer to President Donald Trump, was sentenced to three years in prison in 2018 for multiple crimes, including campaign finance violations, tax evasion, and lying to Congress. Cohen pleaded guilty to eight counts, including five counts of tax evasion, one count of making false statements to a financial institution, and one count of making an excessive campaign contribution. He admitted to making hush money payments to two women who alleged affairs with then-candidate Trump, in order to influence the 2016 election. Cohen claimed that he acted at the direction of Trump, who denied any involvement and attempted to distance himself from Cohen, stating that he never directed him to break the law.

Violating campaign finance laws

Michael Cohen, former lawyer and fixer for President Donald Trump, was sentenced to 36 months in prison for committing crimes while working for Trump. Cohen pleaded guilty to eight federal crimes, including five counts of willful tax evasion, one count of making false statements to a bank, one count of causing an unlawful campaign contribution, and one count of making an excessive campaign contribution. Cohen's sentence also took into account his guilty plea for lying to Congress about the Trump Organization's plans to build a property in Moscow during the presidential campaign.

Cohen's violation of campaign finance laws involved orchestrating hush money payments on behalf of President Trump during the 2016 election. Cohen paid $130,000 to adult film actress Stephanie Clifford, known as Stormy Daniels, and arranged for a $150,000 payment to model Karen McDougal. In exchange for these payments, the women agreed not to go public with allegations that they had affairs with Trump. These payments were treated as campaign contributions, which are subject to restrictions under the Federal Election Campaign Act.

Cohen's payment to Clifford exceeded the $2,700 limit on personal contributions to a single candidate for an election. The payment he facilitated for McDougal violated the ban on corporations contributing directly to campaigns. Cohen's actions were intended to influence the 2016 presidential election in Trump's favor.

Cohen's violation of campaign finance laws had serious consequences. His guilty plea and cooperation with the special counsel's office provided valuable information for the investigation into Russian interference in the 2016 election and potential collusion with members of Trump's campaign. Cohen's sentence reflected the seriousness of his offenses and served as a reminder that everyone is subject to the same set of laws.

Tax evasion

Michael Cohen, President Donald Trump's former lawyer and fixer, pleaded guilty to five counts of willful tax evasion, as part of a total of eight or nine charges.

From 2012 to 2016, Cohen concealed more than $4 million in personal income from the Internal Revenue Service (IRS), avoiding more than $1.3 million in income tax. This included income from his work with various taxicab companies, as well as hundreds of thousands of dollars from other activities, including:

• Consulting fees
• Brokering the sale of real estate
• Brokering the sale of a Birkin Bag (a French handbag)
• Interest on personal loans
• Rental income from taxi medallions
• Selling a piece of property in Ocala, Florida

Cohen's scheme to evade taxes involved hiding sources of income from his accountant and the IRS. He arranged to receive portions of his income personally, rather than through his medallion entities, to prevent his accountant from learning of the income. Cohen also failed to file amended tax returns with the IRS and did not pay back taxes, penalties, and interest.

Bank fraud

Michael Cohen, former lawyer to Donald Trump, was sentenced to 36 months in prison for several crimes, including bank fraud. While the specifics of bank fraud laws vary depending on the jurisdiction, it generally involves using potentially illegal means to obtain money or other assets from a financial institution.

In Cohen's case, he was found guilty of tax evasion and lying to a bank. Bank fraud often involves making false statements or misrepresentations to a financial institution, as well as engaging in conduct such as credit card fraud, cheque fraud, and forgery.

• Fraudulent loan applications: Individuals may use false information to hide financial problems and improve their chances of obtaining a loan. This could include overstating income, assets, or profits.
• Identity theft: Obtaining personal information to apply for credit cards, loans, or open fraudulent accounts in someone else's name.
• Phishing or internet fraud: Sending forged emails that impersonate banks or financial institutions to trick users into providing sensitive information.
• Cheque kiting: Exploiting the "float" period in the banking system, where funds are temporarily counted twice when a cheque is deposited.
• Forgery and altered cheques: Changing the name or amount on a cheque or forging a depositor's signature to cash a fraudulent cheque.
• Demand draft (DD) fraud: Corrupt bank employees may create fraudulent demand drafts payable at a distant branch without debiting an account.
• Remotely created check fraud: Checks created by the payee and authorised by the customer remotely, without the customer's signature, are vulnerable to fraud.
• Bill discounting fraud: Gaining a bank's trust by posing as a profitable customer and then requesting upfront payments for bills to be collected later.
• Duplication or skimming of card information: Merchants or criminals may copy credit card numbers or use tampered card readers to steal card information for illegal activities.

Shielding a client from the law

The rulebook that governs attorney conduct stipulates that an attorney can never help a client commit a crime. In the case of Michael Cohen, the former lawyer of Donald Trump, the attorney-client relationship was called into question. Cohen was accused of making hush money payments to two women who claimed to have had affairs with Trump, in order to prevent the story from influencing the 2016 election. Cohen pleaded guilty to violating campaign finance laws, among other offences, and was sentenced to three years in prison.

The rules of attorney conduct clearly state that an attorney cannot act as a nominee for a client to further a crime or shield them from the law. Cohen's actions, therefore, broke the rules of his profession and constituted a crime. An attorney is expected to zealously advocate for their client and seek their objectives, but they are not above the law and are bound by ethical rules.

In the case of Cohen, the attorney-client relationship was questioned because Trump claimed he did not know about the payments made by Cohen. If the client is not aware of the actions taken by the attorney, there is no attorney-client relationship, and therefore no privilege. Cohen's actions were not protected by attorney-client privilege, and he was subject to criminal prosecution.

Furthermore, the rules state that an attorney cannot allow their client to use their license to commit a crime. Any communications between the attorney and client about committing a crime are not privileged. Cohen's actions in shielding Trump from the law by making hush money payments were, therefore, a clear violation of the rules and resulted in criminal charges.

In addition to violating campaign finance laws, Cohen was also found guilty of tax evasion and lying to Congress. These charges were unrelated to the hush money payments but added to the list of crimes that Cohen committed. Cohen's actions had serious consequences, and he was sentenced to prison and disbarred from practising law.

Lying to Congress

Michael Cohen, former lawyer and fixer for Donald Trump, pleaded guilty to lying to Congress about the Trump Organization's efforts to develop a property in Moscow during the 2016 presidential campaign. Cohen's guilty plea was part of a plea deal with special counsel Robert Mueller's Russia investigation. Cohen was sentenced to three years in prison for a series of federal crimes, including making false statements to the House and Senate Intelligence Committees in August 2017 about the timeline of the Moscow project.

The challenge in prosecuting such cases lies in proving that the false statements were made "knowingly or willingly". This allows individuals accused of perjury to claim a lack of knowledge at the time of the statement. Nevertheless, contradictory evidence can weaken this defence. Additionally, individuals who provide evasive answers or lie out of fear during federal investigations may also face the threat of prosecution.

In Cohen's case, he made several false statements to Congress. Firstly, he denied committing fraudulent acts to which he had previously pleaded guilty in federal court. Secondly, he testified that he did not seek employment in President Trump's White House, despite evidence suggesting otherwise. Thirdly, he denied directing the creation of a Twitter account known as @WomenForCohen, which was contradicted by the IT firm that created the account. Fourthly, he failed to disclose reportable foreign government contracts in his Truth in Testimony form, despite having entered into contracts with entities owned in part by foreign governments. Fifthly, his testimony at the hearing contradicted various aspects of his written statement submitted in advance. Lastly, he asserted that he committed crimes out of "blind loyalty" to President Trump, which was contradicted by federal prosecutors and a federal court.

Frequently asked questions