Cohen's Legal Troubles: What Were His Crimes?

Michael Cohen, former lawyer and fixer to President Donald Trump, was sentenced to three years in prison for committing a slew of federal crimes. Cohen pleaded guilty to eight charges, including tax evasion, making false statements to a bank, and campaign finance violations. Cohen admitted to paying adult film actress Stormy Daniels $130,000 and arranging a $150,000 payment to former Playboy model Karen McDougal in exchange for their silence about alleged affairs with Trump during the 2016 election. Cohen also pleaded guilty to lying to Congress about the Trump Organization's efforts to develop a property in Moscow. Trump has denied directing Cohen to break the law, claiming that Cohen acted independently and was responsible for any criminal violations.

Violating campaign finance law

Michael Cohen, former lawyer to Donald Trump, was sentenced to three years in prison for violating campaign finance law, among other charges. 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 their silence about alleged 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 to McDougal flouted the ban on corporations contributing directly to campaigns.

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 also pleaded guilty to lying to Congress about the Trump Organization's efforts to develop a property in Moscow during the presidential campaign, as part of a plea deal with special counsel Robert Mueller's Russia investigation.

The case has parallels to the federal campaign finance prosecution of former North Carolina Sen. John Edwards, who was indicted in 2011 on charges that he was part of a scheme to conceal an affair during his 2008 campaign. While prosecutors argued that the payments were illegal campaign contributions, the Justice Department eventually dropped the case after trial jurors deadlocked on five of the criminal counts and acquitted him on the sixth.

In addition to violating campaign finance law, Cohen was also sentenced for tax evasion and bank fraud. He failed to report more than $4 million in personal income, made false statements to a federally-insured bank, and concealed his true financial condition to obtain a home equity line of credit.

Trump has denied directing Cohen to break the law, claiming that Cohen acted independently and that the campaign finance charges were added to embarrass him. However, Cohen stated that he acted out of "blind loyalty to Donald Trump" and felt it was his "duty to cover up his dirty deeds."

Tax evasion

Michael Cohen, former lawyer and "fixer" for President Donald Trump, pleaded guilty to tax evasion in 2018. Cohen admitted to failing to report over $4 million in income to the Internal Revenue Service (IRS) between 2012 and 2016. This included income from his work with taxicab companies, consulting fees, real estate sales, and the sale of a Birkin handbag. Cohen's plea agreement required him to file amended tax returns and pay restitution, including back taxes, penalties, and interest, totalling $1,495,305.

Cohen's tax evasion was just one of several charges he faced, including bank fraud and campaign finance law violations. He pleaded guilty to eight counts in total and faced a maximum sentence of 65 years in prison. Cohen ultimately received a sentence of three years in prison and agreed to pay $1.5 million to the IRS as part of his plea deal.

The case against Cohen was the result of a federal investigation and marked a falling out between him and President Trump. Cohen had previously stated he would take a bullet for Trump but later admitted to committing crimes related to the Trump campaign during the 2016 election. These included orchestrating hush money payments to two women who claimed they had affairs with Trump, which Trump denies. Cohen's payment to one of the women exceeded the legal limit for personal contributions to a political candidate.

The charges against Cohen and his subsequent guilty plea shed light on the complex financial dealings of Trump's inner circle and raised questions about the president's involvement. While Trump denied instructing Cohen to break the law, the case highlighted the ethical boundaries of the attorney-client relationship and the potential for abuse of power.

Making false statements to a federally-insured bank

Michael Cohen, former lawyer to Donald Trump, was convicted of making false statements to a federally-insured bank, among other charges. Cohen was sentenced to three years in prison for his crimes.

In Cohen's case, he was found to have made false statements to influence the action of a federally-insured bank. He had been granted a working capital line of credit for his construction business, with the agreement that he would not borrow more than a specified percentage of the total amount of the firm's accounts receivable. Cohen submitted false reports and certificates that overstated the total amount of accounts receivable, with the intention to deceive the bank and draw more money from his line of credit. These actions resulted in significant losses to the bank.

The specific charge of making false statements to a federally-insured bank carries a maximum penalty of a $1,000,000 fine, 30 years in prison, or both.

Lying to Congress

Michael Cohen, former lawyer to President Donald Trump, was sentenced to three years in prison for a series of federal crimes, including lying to Congress. Cohen pleaded guilty to lying to Congress about the Trump Organization's efforts to develop a new property in Moscow during the presidential campaign.

In February 2019, Cohen lied to the House Oversight Committee at least six times. These lies included denying committing fraudulent acts to which he had pleaded guilty, stating that he did not seek employment in Trump's White House despite evidence to the contrary, and denying directing the creation of a Twitter account known as @WomenForCohen. Cohen also lied to the House Permanent Select Committee on Intelligence (HPSCI) in a 2019 deposition, where he admitted to lying under oath about whether he was directed to inflate certain financial numbers.

Cohen's testimony has been the basis for a politically motivated prosecution of a former president, and his conviction for lying to Congress has had significant implications for investigations into the Trump administration.

Lying to a bank

Bank fraud is different from ordinary fraud in that the intended victim is the financial institution itself. Most bank fraud is committed online, with 33% of these crimes occurring through online banking and another 29% executed on mobile devices. Bank fraud can take several forms, including impersonating a bank or bank employee, forging checks, and providing false financial information during loan or credit card applications. Providing false or inaccurate financial information to a bank is considered a crime if the information can influence the bank's credit decision.

In the case of Michael Cohen, he was charged with bank fraud in addition to campaign finance violations, making false statements to Congress, and tax evasion. Cohen was sentenced to three years in prison for these crimes. While the specific details of Cohen's bank fraud are not publicly available, it is likely that he provided false or misleading information to a financial institution in order to obtain funds or other benefits.

Committing bank fraud by lying to a financial institution is a serious offense that can result in severe penalties. It is important to understand the legal definitions and consequences of such actions to avoid committing a federal crime.

Frequently asked questions