Cohen's Campaign Finance Law Violation: What Happened?

Michael Cohen, former lawyer to President Donald Trump, pleaded guilty to violating campaign finance law during the 2016 election. Cohen paid adult film actress Stephanie Clifford (known as Stormy Daniels) $130,000 and arranged for a $150,000 payment to former Playboy model Karen McDougal to keep quiet about alleged affairs with Trump. These payments exceeded the $2,700 limit on individual contributions to a single candidate for an election and broke the law banning corporations from contributing directly to campaigns. Cohen was sentenced to 36 months in prison for these violations, as well as for tax evasion and bank fraud.

Michael Cohen's payments exceeded individual contribution limits

Michael Cohen, President Donald Trump's former lawyer, broke campaign finance law by making hush money payments to two women who alleged they had affairs with Trump. The payments were made during the 2016 election campaign and were intended to prevent the women from going public with their allegations.

Cohen paid adult film actress Stephanie Clifford, known as Stormy Daniels, $130,000 and arranged for a publishing company to pay former Playboy model Karen McDougal $150,000 for her story. These payments exceeded the limit on individual campaign contributions, which was capped at $2,700 per election in 2016. This means Cohen could have only lawfully contributed $5,400 directly to a single candidate during primary and general elections.

Cohen's payment to Clifford exceeded the $2,700 limit on personal contributions to a single candidate for an election. The payment he helped arrange for McDougal violated the ban on corporations contributing directly to campaigns. These payments were treated as campaign contributions, which are subject to restrictions under the Federal Election Campaign Act.

Cohen pleaded guilty to violating campaign finance law and other offenses as part of a plea agreement with the U.S. attorney's office in Manhattan. He was sentenced to 36 months in prison, in part for "brazen violations of the election laws." The charges carry a maximum prison sentence of five years and a potential fine of $250,000 on each count.

In court, Cohen admitted that he knew he was committing a crime by making the payments and that he did so "at the direction" of Trump "for the principal purpose of influencing the election."

The payments were classed as unlawful corporate contributions

In 2016, Michael Cohen, President Trump's personal attorney, arranged for payments to be made to two women who alleged they had affairs with Trump. Adult film actress Stephanie Clifford, known as Stormy Daniels, received $130,000, and former Playboy model Karen McDougal was paid $150,000 by American Media Inc., the publisher of the National Enquirer. These payments were made in exchange for the women agreeing not to go public with their allegations before the 2016 election.

Cohen pleaded guilty to making an unlawful corporate contribution and causing an unlawful corporate contribution. These charges are felonies, and Cohen faced up to five years in prison on each count. He also faced additional penalties, including supervised release and fines.

The Justice Department argued that the purpose of the hush payments was to influence the outcome of the 2016 election, which made them subject to campaign finance laws. Cohen acknowledged that the goal was to affect the election and protect Trump's candidacy. The case had significant repercussions for President Trump, as Cohen testified that he committed the felonies at the direction of a candidate for federal office.

Cohen's payments were treated as unreported campaign contributions

Michael Cohen, former lawyer to President Donald Trump, pleaded guilty to violating campaign finance law, among other charges, in 2018. Cohen's guilty plea was in relation to hush money payments he made to two women, adult film actress Stephanie Clifford, known as Stormy Daniels, and former Playboy model Karen McDougal, who alleged they had affairs with Trump. Cohen paid $130,000 to Clifford and arranged for a $150,000 payment to McDougal through American Media Inc., the publisher of the National Enquirer. The purpose of these payments was to prevent the women from going public with their allegations before the 2016 election.

The Justice Department argued that the hush money payments were made to influence the outcome of the 2016 election and were therefore subject to campaign finance laws. Cohen himself acknowledged this, stating that the payments were made "for the principal purpose of influencing the election." This admission was a critical piece of evidence, as it is not illegal to pay someone to keep quiet, but it is illegal to make unreported campaign contributions.

The case against Cohen set a precedent and differentiated itself from previous cases involving campaign finance violations. For example, in the case of former North Carolina Senator John Edwards, who was indicted on similar charges, the Justice Department eventually dropped the case. The key difference was that Cohen admitted he knew he was breaking the law, while in the Edwards case, there was no evidence that the violations were willful.

The consequences of Cohen's actions were significant. He was sentenced to 36 months in prison and faced additional penalties for tax evasion and bank fraud. The case also had potential repercussions for President Trump, as Cohen testified that he committed the felonies "in coordination and at the direction of a candidate for federal office." This testimony raised questions about Trump's involvement and whether he could be considered an "unindicted co-conspirator" in Cohen's crimes.

Cohen pleaded guilty to multiple charges, including tax evasion and bank fraud

On August 21, 2018, Michael Cohen, former lawyer and fixer for President Donald Trump, pleaded guilty to eight criminal charges, including tax evasion, unlawful campaign contributions, and making false statements to a bank. Cohen's guilty plea came as part of a deal with prosecutors that could result in a prison sentence of up to five years.

Cohen's charges included five counts of tax evasion, one count of making an excessive campaign contribution, one count of causing an unlawful corporate campaign contribution, and one count of making false statements to a federally insured bank.

Cohen admitted to arranging payments to two women, Karen McDougal and Stephanie Clifford, also known as Stormy Daniels, to keep quiet about their alleged affairs with Trump. These payments were made to influence the 2016 presidential election and exceeded the permissible campaign contribution limits. Cohen also failed to report millions of dollars in income to the IRS and made false statements to obtain loans and credit.

In addition to the campaign finance violations, Cohen's sentence also took into account his tax evasion and bank fraud charges. Cohen had hidden millions of dollars in income from the IRS, including income from his taxi medallion business and other sources. He also made false statements to banks to obtain loans and credit, including a $500,000 home equity loan.

Cohen's actions had serious consequences, and he was sentenced to three years in prison. His case highlights the importance of adhering to campaign finance laws and the potential repercussions for violating them.

Cohen's sentence was reduced from 65 years to five years

Michael Cohen, President Donald Trump's former lawyer and fixer, 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., the 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 violated the second law when he paid adult film actress Stormy Daniels (whose real name is Stephanie Clifford) $130,000 in exchange for her silence about an alleged affair with Trump.

These payments exceeded the $2,700 limit on personal contributions to a single candidate for an election and flouted the ban on corporations contributing directly to campaigns. Cohen's actions were therefore subject to the country's campaign finance laws, which include restrictions on how much people can donate to a campaign and bar corporations from making direct contributions.

The charges initially carried a maximum sentence of 65 years in jail. However, Cohen's deal with prosecutors reduced his sentence to about five years. In addition to the campaign finance violations, Cohen also pleaded guilty to tax evasion, bank fraud, and lying to Congress. He was sentenced to 36 months in prison, which included time served.

Cohen's cooperation with the Russia probe and his agreement to continue providing information to investigators may have been a factor in the reduced sentence. The case has raised questions about Trump's involvement, as Cohen claimed he acted "at the direction" of the president. Trump has denied any wrongdoing and attacked Cohen's credibility.

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