Trump fined $1,000 for gag-order violation, ex-employee recounts reimbursements
The judge presiding over Donald Trump’s hush money trial fined him $1,000 on Monday and warned that future gag order violations could send him to jail, while jurors heard detailed testimony for the first time about the financial reimbursements at the centre of the case.
The testimony from Jeffrey McConney, the former Trump Organization controller, provided a mechanical but vital recitation of how the company reimbursed payments meant to suppress embarrassing stories from surfacing during the 2016 presidential campaign and then logged them as legal expenses in a manner that Manhattan prosecutors said broke the law.
McConney’s appearance on the witness stand came as the first criminal trial involving a former American president entered its third week of testimony. It nonetheless yielded an important building block for prosecutors trying to pull back the curtain on what they say was a corporate records cover-up of transactions designed to protect Trump’s presidential bid during a pivotal stretch of the race.
At the centre of the testimony, and the case itself, is a $130,000 payment from Trump attorney and personal fixer Michael Cohen to porn actor Stormy Daniels to stifle her claims of an extramarital sexual encounter with Trump a decade earlier.
The 34 felony counts of falsifying business records accuse Trump of labelling the money paid to Cohen in his company’s records as legal fees. Prosecutors contend that by paying him income and giving him extra to account for taxes, the Trump executives were able conceal the reimbursement.
McConney and another witness testified that the reimbursement cheques were drawn from Trump’s personal account. Yet even as jurors witnessed the cheques and other documentary evidence, prosecutors did not elicit testimony Monday showing that Trump himself dictated that
the payments would be logged as legal expenses, a designation that prosecutors contend was intentionally deceptive.
McConney acknowledged during cross-examination that Trump never asked him to log the reimbursements as legal expenses or discussed the matter with him at all. And another witness, Deborah Tarsoff, a Trump Organization accounts payable supervisor, said under questioning that she did not get permission to cut the cheques in question from Trump himself.
“You never had any reason to believe that President Trump was hiding anything or anything like that?” asked Trump attorney Todd Blanche. ”Correct,” Tarasoff replied. The testimony followed a stern warning from Judge Juan M. Merchan that additional violations of a gag order barring Trump from inflammatory outof-court comments about witnesses, jurors and others closely connected to the case could result in jail time.
The $1,000 fine imposed Monday
marks the second time since the trial began last month that Trump has been sanctioned for violating the gag order. He was fined $9,000 last week, $1,000 for each of nine violations. “It appears that the $1,000 fines are not serving as a deterrent. Therefore going forward, this court will have to consider a jail sanction,” Merchan said before jurors were brought into the courtroom.
Trump’s statements, the judge added, “threaten to interfere with the fair administration of justice and constitute a direct attack on the rule of law. I cannot allow that to continue.”
Trump sat forward in his seat, glowering at the judge as he handed down the ruling. When the judge finished speaking, Trump shook his head twice and crossed his arms.
Even as Merchan warned of jail time, he also made clear his reservations about a step that he described as a “last resort.”
“The last thing I want to do is put you in jail,” Merchan said. “You are the former president of
the United States and possibly the next president as well. There are many reasons why incarceration is truly a last resort for me. To take that step would be disruptive to these proceedings.”
The latest violation stems from an April 22 interview with television channel Real America’s Voice in which Trump criticized the speed at which the jury was picked and claimed, without evidence, that it was stacked with Democrats.
Once testimony resumed, McConney recounted conversations with longtime Trump Organization finance chief Allen Weisselberg in January 2017 about reimbursing Cohen for a $130,000 payment intended to buy Daniels’ silence over her account of a sexual encounter at a 2006 celebrity golf outing in Lake Tahoe, California.
Weisselberg “said we had to get some money to Michael, we had to reimburse Michael. He tossed a pad toward me, and I started taking notes on what he said,” McConney testified. “That’s how I found out about it.”