Campaign Finance Laws Michael Cohen Broke

Michael Cohen, former lawyer to President Donald Trump, pleaded guilty to violating two campaign finance laws: a ban on corporate contributions to candidates for federal office and the limit on individual campaign contributions. Cohen broke the first law when he arranged for American Media Inc., owner of the tabloid National Inquirer, to pay former Playboy model Karen McDougal $150,000 to stay quiet about her alleged affair with Trump during the 2016 presidential race. He broke the second law when he paid adult film actress Stormy Daniels $130,000 for her silence about an alleged affair with Trump, exceeding the $2,700 limit on individual contributions to a single candidate for an election.

Michael Cohen pleaded guilty to violating campaign finance law

On August 21, 2018, Michael Cohen pleaded guilty to eight criminal charges, including one count of violating campaign finance law. Cohen, a former lawyer for President Donald Trump, orchestrated hush money payments to two women during the 2016 election campaign to keep them from disclosing their alleged affairs with Trump. The payments, totalling $280,000, were made to adult film actress Stephanie Clifford, also known as Stormy Daniels, and model Karen McDougal.

Cohen paid Clifford $130,000 himself and then received disguised reimbursements from the Trump Organization. He also encouraged and assisted the National Enquirer in paying McDougal $150,000. These payments were made to influence the 2016 presidential election and were, therefore, treated as campaign contributions.

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 flouted the ban on corporations contributing directly to campaigns. Cohen's violation of campaign finance law was, thus, twofold.

In addition to pleading guilty to violating campaign finance law, Cohen also pleaded guilty to five counts of tax evasion, one count of making false statements to a bank, and one count of making an excessive campaign contribution. He was sentenced to three years in prison and ordered to pay a $50,000 fine, $1,393,858 in restitution to the IRS, and an additional $800 special assessment.

Cohen's payment exceeded the $2,700 limit on personal contributions

Michael Cohen, former lawyer to ex-US President Donald Trump, pleaded guilty in 2018 to multiple campaign finance violations, one of which was exceeding the legal limit for campaign contributions. Cohen's payment of $130,000 to adult film actress Stormy Daniels, just before the 2016 US presidential election, was a personal contribution that far surpassed the $2,700 limit for individual donations. This limit, set by the Federal Election Commission (FEC), applies to contributions made directly to a candidate or their campaign committee. Cohen's payment, facilitated through a shell company, was an attempt to buy Daniels' silence regarding an alleged affair with Trump, and thus influence the outcome of the election. This violation of campaign finance law highlights the importance of transparency and accountability in political donations, with the $2,700 limit in place to prevent individuals from exerting undue influence on candidates and the political process.

The $2,700 limit on personal contributions is a cornerstone of US campaign finance law, designed to ensure fairness and equality in political participation. This limit applies per election, meaning an individual can contribute up to $2,700 for a candidate's primary campaign and another $2,700 for their general election campaign. The restriction aims to prevent wealthy individuals from disproportionately influencing elections, promoting a more level playing field for all citizens. By capping personal donations, the law seeks to encourage candidates to rely on a broad base of small donations from everyday citizens, rather than a few large contributions that could create a sense of obligation or indebtedness.

The limit also serves to prevent corruption and the appearance of impropriety. By capping individual contributions, the law makes it more difficult for donors to exert undue influence or gain special access to candidates and elected officials. This helps maintain the integrity of the political process and ensures that decisions are made in the best interests of the public, rather than in response to the preferences of a few wealthy donors. The cap on personal contributions is a key tool in mitigating the potential for corruption and maintaining trust in democratic institutions.

While the $2,700 limit is a critical component of campaign finance regulation, it is just one aspect of a comprehensive legal framework. This includes additional rules and requirements for contributions from political action committees (PACs), as well as disclosure regulations that promote transparency in political funding. These laws work together to ensure that campaigns are adequately funded while also safeguarding against potential abuses of power and maintaining public trust in the electoral process. Cohen's violation of the personal contribution limit was a serious breach of these regulations, highlighting the need for strict enforcement and ongoing vigilance to protect the integrity of US elections.

The payment to Karen McDougal flouted the ban on corporations contributing

During the 2016 election, Michael Cohen, former lawyer and fixer for then-presidential candidate Donald Trump, orchestrated hush money payments to two women who alleged affairs with Trump. One of these women was Karen McDougal, a former Playboy model. Cohen arranged for a publishing company, American Media Inc. (AMI), to pay McDougal $150,000 for her story in exchange for her agreement not to go public with her allegations. AMI was the parent company of the National Enquirer, which had a practice of "catch and kill"—paying for exclusive access to stories and then not publishing them.

Cohen's payment to McDougal through AMI flouted the ban on corporations contributing directly to campaigns. The Federal Election Campaign Act restricts how much people can donate to a campaign and bars corporations from making direct contributions. Cohen's payment to AMI for McDougal's story was considered an illegal in-kind corporate contribution to Trump's campaign. Federal law prohibits corporations from contributing to campaigns, and the payment was made for the purpose of influencing the election.

Cohen pleaded guilty to violating campaign finance law and was sentenced to 36 months in prison. Trump, however, denied any wrongdoing or knowledge of the payments, and the Federal Election Commission (FEC) did not pursue further investigation due to being equally divided on party lines.

Cohen was sentenced to 36 months in prison for multiple charges

On December 12, 2018, Michael Cohen was sentenced to 36 months in prison for multiple charges. Cohen pleaded guilty to eight criminal charges, including five counts of tax evasion, one count of making false statements to a financial institution, one count of willfully causing an unlawful corporate contribution in breach of the Federal Election Campaign Act (FECA) of 1971, and one count of making an excessive campaign contribution. Cohen's sentence also included a $50,000 fine, $1.4 million in restitution, and the forfeiture of $500,000.

The charges against Cohen stemmed from his role as President Donald Trump's personal attorney and fixer. Cohen admitted to violating campaign finance laws at Trump's direction to influence the 2016 presidential election. During the election, Cohen orchestrated hush money payments to two women who alleged having affairs with Trump. 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. These payments were made to prevent the women from publicly disclosing their alleged affairs before the election. Cohen also concealed more than $4 million in personal income from the Internal Revenue Service, resulting in over $1.3 million in unpaid taxes. Additionally, he made false statements to a federally-insured bank to obtain a $500,000 home equity loan.

Cohen's actions constituted "brazen violations of the election laws," according to federal prosecutors. His sentence reflected the seriousness of his crimes and sent a message that everyone is subject to the same rules and laws, as noted by Attorney for the United States Robert Khuzami.

Cohen's sentence was reduced due to his cooperation with the Russia probe

In 2018, Michael Cohen, President Donald Trump's personal attorney, was sentenced to three years in prison for tax evasion, making false statements to a federally-insured bank, and campaign finance violations. Cohen pleaded guilty to eight criminal counts, including charges of tax evasion, campaign finance violations, and falsifying bank documents. Cohen's sentence was reduced from the recommended 51-63 months to three years due to his cooperation with the Russia probe.

Cohen paid $130,000 to adult film actress Stephanie Clifford, known as Stormy Daniels, and arranged for a publishing company to pay $150,000 to model Karen McDougal, for their silence regarding alleged affairs with Trump during the 2016 election. 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, and the payment to McDougal flouted the ban on corporations contributing directly to campaigns.

In addition to the campaign finance violations, Cohen was also found guilty of tax evasion and bank fraud. He concealed more than $4 million in personal income from the Internal Revenue Service, resulting in the avoidance of over $1.3 million in income tax. Cohen also made false statements to a federally-insured financial institution to obtain a $500,000 home equity loan.

Cohen's cooperation with the Russia probe was noted by attorneys for the special counsel, who detailed his assistance in their investigation into Russia interference in the 2016 presidential election. Cohen met with the special counsel's team seven times and provided information that was deemed credible. However, Mueller's team also noted that Cohen had told lies to Congress that were "deliberate and premeditated" and that he had repeated those lies publicly.

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