Trump's Hush Money: Legal Or Illegal?

In May 2024, former US President Donald Trump was found guilty of 34 counts of falsifying business records for concealing a payoff to former porn star Stormy Daniels. The payment, made in 2016, was intended to hide a sex scandal from voters. Trump reimbursed his ex-attorney Michael Cohen $420,000, which included the $130,000 payment to Daniels, a separate expense, a $60,000 bonus, and money to cover taxes on the payment. These payments were allegedly falsely labeled as being for legal services through a retainer agreement.

Trump's reimbursement payments to Cohen were allegedly disguised as legal payments

In 2023, former US President Donald Trump was indicted on 34 counts of falsifying business records, based on the fact that his reimbursement payments to his former lawyer, Michael Cohen, were allegedly disguised as legal payments. Cohen had paid adult film star Stormy Daniels $130,000 before the 2016 election to cover up allegations of an affair between her and Trump. Trump then reimbursed Cohen $420,000, which included the Daniels payment, an additional expense, a $60,000 bonus, and money to cover taxes on the payment. These payments were allegedly falsely labelled as legal retainer fees in Trump's family real estate company's books.

Trump was charged with falsifying 34 different business records to hide the true nature of the reimbursement, calling them legal fees instead. To convict Trump of each of the 34 counts of falsifying business records, prosecutors had to prove beyond a reasonable doubt that Trump was involved in the scheme to falsify these records. They provided 34 allegedly false invoices, ledgers, checks, and check stubs relating to payments made to Cohen. While they were labelled as legal fees, prosecutors argued that they were actually a way to disguise the true repayment to Cohen.

Trump's defence team argued that there wasn't sufficient evidence to prove beyond a reasonable doubt that Trump was involved in the scheme to falsify the records. They also argued that the payments were, in fact, legal fees and that Cohen, who testified against Trump, was an inveterate liar.

The jury found Trump guilty of the criminal charges, and he was convicted of falsifying business records to hide his reimbursement to Cohen. This conviction is particularly significant as Trump is the first sitting or former US president to be convicted of criminal charges.

Trump was charged with 34 counts of falsifying business records

In May 2024, a Manhattan jury found former US President Donald Trump guilty of 34 counts of falsifying business records. The charges related to a hush money payment made to adult film actress Stormy Daniels during his 2016 election campaign. Trump was not charged with making the $130,000 payment to Daniels, but with how he reimbursed his former lawyer, Michael Cohen, who made the payment.

Prosecutors alleged that Trump falsified 34 different business records to hide the true nature of the repayment to Cohen, calling them legal fees. They argued that Trump did so intending to commit or conceal another crime, a violation of state election law.

To convict Trump of each of the 34 charges, prosecutors had to prove beyond a reasonable doubt that Trump was involved in the scheme to falsify these records. They didn't have to show that he personally created or maintained the false records, but that he caused or assisted others in maintaining them. Trump's signature appeared on some of the checks, but not all of them.

The alleged crime that Trump was charged with, falsification of business records, is typically classified as a misdemeanour under New York law. However, it is elevated to a felony when it is done to facilitate another crime. In this case, prosecutors argued that the falsely labelled payments were done to cover up other crimes, including Cohen's campaign finance crimes and alleged tax issues.

Each felony count that Trump was charged with is punishable by up to four years in prison and a $5,000 fine. However, legal experts believe it is unlikely that Trump would be sentenced to prison as a first-time offender.

The payment to Daniels is not illegal in itself

The $130,000 payment to Stormy Daniels is not illegal in itself. "Hush money" agreements that both parties enter into consensually, in which one party pays money to stop the other party from revealing information, are actually perfectly legal. University of Pennsylvania law professor Tess Wilkinson-Ryan noted that hush money payments can be illegal if they’re done to cover up a crime, or if it’s not a consensual agreement, such as in the case of blackmail or bribery.

In the case of Trump's payment to Daniels, the adult film actress allegedly had an affair with Trump in 2006, and in 2016, Trump's ex-attorney Michael Cohen made a payment to Daniels to cover up her allegations of this affair. Trump then reimbursed Cohen $420,000, which included the payment to Daniels, a separate expense, a $60,000 bonus, and enough to cover taxes on the payment. Many of these payments came out of Trump's personal bank account and were allegedly falsely labeled as being for legal services through a retainer agreement.

Trump is not being charged with making the payment to Daniels or reimbursing Cohen. Instead, he has been indicted on 34 counts of falsifying business records, as the reimbursement payments to Cohen were allegedly disguised as legal payments. This alleged crime of falsifying business records is typically classified as a misdemeanor under New York law but is elevated to a felony when it is done to facilitate another crime.

In Trump's case, prosecutors argue that the falsely labeled payments were done to cover up other crimes, including Cohen's campaign finance crimes and alleged tax issues. Cohen pleaded guilty to federal campaign finance violations in 2018, as the Department of Justice alleged that the payment to Daniels was effectively a donation to Trump's campaign that exceeded the legal limit on political contributions.

While the payment to Daniels is not illegal in itself, the way she was paid—through Cohen, right before the 2016 election—may have been a campaign finance crime.

Trump's signature appears on some of the checks

While the act of paying hush money is not illegal in itself, the way in which it is paid can be. In the case of Donald Trump, the former president was found guilty of 34 counts of falsifying business records, which is typically a misdemeanour, but becomes a felony when done to facilitate another crime.

The checks were allegedly falsely labelled as being for legal services, when in fact they were reimbursements for the hush money payment, as well as a separate expense, a bonus for Cohen, and money to cover taxes on the payment.

In addition to the 34 counts of falsifying business records, prosecutors also argued that Trump's actions violated New York state law, which makes it a crime to promote a candidate's election through unlawful means. In this case, the unlawful means were violations of federal election law that place limits on the amount an individual can contribute to a political campaign.

Trump's case is based on personal conduct, not official duties

The case against Trump for his involvement in the hush money payment to adult film star Stormy Daniels is not related to his official duties as president. Instead, it is based on his personal conduct and actions taken to conceal an affair and boost his chances of winning the 2016 election.

Trump was not charged with making the $130,000 hush money payment to Daniels himself. Rather, the payment was made by his former lawyer, Michael Cohen, who testified that the transaction was intended to protect Trump's presidential bid. The case against Trump focuses on how he repaid Cohen and the potential falsification of business records involved.

Prosecutors alleged that Trump was responsible for falsifying 34 different business records to disguise the true nature of the repayment to Cohen. These records, which included invoices, ledgers, checks, and check stubs, were labelled as legal fees rather than reimbursement for the hush money payment. This constitutes the 34 counts of felony falsification of business records that Trump was convicted of.

The conviction stems from Trump's personal actions and his involvement in a scheme to falsify records, not his official duties as president. The payment to Daniels was made before Trump took office, and the subsequent reimbursement to Cohen was also conducted through Trump's personal bank account and the Trump Organization.

While the hush money payment itself is not illegal, the way it was structured and reimbursed raises legal concerns. The prosecution argued that the false labelling of the reimbursement payments as legal fees was done to conceal other crimes, including Cohen's campaign finance crimes and tax issues.

In conclusion, the case against Trump revolves around his personal conduct and actions taken to conceal the true nature of the hush money payment. The conviction is based on the falsification of business records and is unrelated to his official duties as president.

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