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Trump trial: 1st week of testimony ends with testimony from Michael Cohen's former banker

PHOTO: Former President Donald Trump appears at Manhattan criminal court before his trial in New York, April 26, 2024.
1:59
Dave Sanders/The New York Times via AP, Pool
Who could testify at Trump’s trial this week?
By Aaron Katersky, Peter Charalambous, Olivia Rubin, Lucien Bruggeman, Julia Reinstein
Last Updated: April 26, 2024, 9:13 PM

Former President Donald Trump is on trial in New York City, where he is facing felony charges related to a 2016 hush money payment to adult film actress Stormy Daniels. It marks the first time in history that a former U.S. president has been tried on criminal charges.

MORE: Who are the 12 jurors in Trump's historic criminal trial

Trump last April pleaded not guilty to a 34-count indictment charging him with falsifying business records to hide the reimbursement of a hush money payment his then-attorney Michael Cohen made to Daniels in order to boost his electoral prospects in the 2016 presidential election.

Top headlines:

  • Banker says he set up LLC, which Cohen used to pay Daniels
  • 'Thank you for handling' McDougal, Pecker says Trump told him
  • 'This story is true,' Pecker recounts being told of Stormy Daniels
  • Pecker describes $150,000 negotiations for McDougal's story
  • Secret Service has plans if Trump is confined for contempt: Sources
Here's how the news is developing.

Pinned
Apr 22, 2024 9:51 AM

What to know about the hush money case

READ MORE: Here's what you need to know about the historic case.


Pinned
Apr 25, 2024 4:29 PM

'This story is true,' Pecker recounts being told of Stormy Daniels

"Do you know someone by the same of Stephanie Clifford?"

The question, by assistant district attorney Josh Steinglass, was the jury's introduction during the evidentiary phase of the trial to the woman whose long-denied claim of a sexual tryst with Donald Trump set in motion the alleged falsification of business records.

"Stormy Daniels is, or was, a porn star," former National Enquirer publisher David Pecker replied, using Clifford's stage name.

Pecker was having dinner with his wife on a Saturday night in early October 2016 when he said he received an urgent call from National Enquirer editor Dylan Howard.

"He said that she, she being Stormy Daniels, is trying to sell a story that she had a sexual relationship with Donald Trump, and Dylan can acquire the story for $120,000 from Keith Davidson if we made a decision right now," Pecker recalled.

In a series of text messages the jury saw, Howard told Pecker, "I know denials were made in the past but this story is true."

PHOTO: Former President Donald Trump attends his trial for allegedly covering up hush money payments linked to extramarital affairs, at Manhattan Criminal Court in New York City, Apr. 25, 2024.
Jeenah Moon/POOL/EPA-EFE/Shutterstock
Former President Donald Trump attends his trial for allegedly covering up hush money payments linked to extramarital affairs, at Manhattan Criminal Court in New York City, Apr. 25, 2024.
Jeenah Moon/POOL/EPA-EFE/Shutterstock

Pecker replied to Howard, "We can't pay 120k." The company had already paid $30,000 for the Dino Sajudin story and $150,000 for the Karen McDougal story, and Pecker recalled thinking, "I am not a bank."

In the text exchange, Howard responded, "Perhaps I call Michael and advise him and he can take it from there, and handle."

Pecker texted back, "Yes a good idea."

Pecker recalled having "a number of conversations" with Michael Cohen about Stormy Daniels. Cohen wanted Pecker to catch and kill the story.

"I said, 'I am not purchasing this story, I am not going to get involved with a porn star,'" Pecker testified he told Cohen. "He was upset and said the boss would be furious with me."


Apr 26, 2024 9:13 PM

Trump, leaving court, says prosecutors have 'no case'

Following a brief huddle with his attorney Todd Blanche and legal adviser Boris Epshteyn, former President Trump departed the courtroom at the conclusion of the second week of his criminal trial.

PHOTO: Former U.S. President Donald Trump gives a brief statement after leaving the courtroom at the end of the day of his hush money trial at Manhattan criminal court, April 26, 2024, in New York City.
Michael M. Santiago/Getty Images
Former U.S. President Donald Trump gives a brief statement after leaving the courtroom at the end of the day of his hush money trial at Manhattan criminal court, April 26, 2024, in New York City.
Michael M. Santiago/Getty Images

In remarks to reporters, he reiterated that there is "no case."

Court is off on Monday, so the proceedings will resume Tuesday morning.

-ABC News' Kelsey Walsh and Mike Pappano


Apr 26, 2024 9:03 PM

Banker says he set up LLC, which Cohen used to pay Daniels

Banker Gary Farro testified that he got an urgent message from Michael Cohen on October 13, 2016.

According to Farro, Cohen needed to quickly create a new business named Resolution Consultants LLC.

"My understanding was it was a real estate consulting company," Farro testified.

According to prosecutors, Resolution Consultants LLC was the shell company that Cohen planned to use to pay for the exclusive rights to Karen McDougal's story in which she claimed to have had a yearlong sexual relationship with Trump.

Farro walked through the paperwork used to create the Delaware-based company, including a description, which said it was a consulting firm to offer "strategy, PR and marketing." He collected Cohen's signature and an affirmation that the company would not involve political fundraising.

"[It] would be something the bank wants to know," Farro said on the stand about political contributions, adding that it would trigger an additional review by the bank.

Farro said that while the company was established, it was never funded. Prosecutors allege that the deal that prompted the creation of the account -- paying National Enquirer parent AMI for the McDougal story -- fell through at the last minute.

PHOTO: Former President Donald Trump sits in the courtroom during his hush money trial at Manhattan criminal court, Apr. 26, 2024, in New York City.
Michael M. Santiago/Getty Images
Former President Donald Trump sits in the courtroom during his hush money trial at Manhattan criminal court, Apr. 26, 2024, in New York City.
Michael M. Santiago/Getty Images

A few weeks later, Farro received another phone call from Cohen on October 26, 2016.

"He stated he was changing course," Farro said. Prosecutor Becky Mangold asked if Cohen made the call seem urgent.

"Every time Michael Cohen spoke to me, he gave a sense of urgency," Farro said. "This is one of those times."

Farro testified he was busy at the time -- "I was at a golf course, very cliche for a banker" -- but a colleague handled Cohen's request for the paperwork for a new company called Essential Consultants LLC.

In the paperwork, Cohen described it as a "real estate consulting company to collect fees for investment consulting work he does for real estate deals," Farro said.

According to prosecutors, Cohen that day transferred $131,000 from a personal home equity line of credit into an account for Essential Consultants LLC.

The next day, Cohen transferred $130,000 from that account to a lawyer for Stormy Daniels, prosecutors allege.

Farro's testimony is expected to continue when court resumes on Tuesday. The proceedings have adjourned until then.


Apr 26, 2024 8:07 PM

Farro says Cohen became his banking client in 2015

Gary Farro, formerly a senior managing director at First Republic Bank, testified that he first met Michael Cohen when Cohen became a banking client of his in 2015, after one of Farro's colleagues left the bank.

Asked why Cohen was assigned to him, Farro cited his "ability to handle individuals who might be a little challenging."

"Frankly, I didn't find him that difficult," Farro remarked.

PHOTO: Former President Donald Trump, sitting with attorney Todd Blanche, attends his trial for allegedly covering up hush money payments linked to extramarital affairs, at Manhattan Criminal Court in New York City, Apr. 26, 2024.
Dave Sanders/POOL/AFP via Getty Images
Former President Donald Trump, sitting with attorney Todd Blanche, attends his trial for allegedly covering up hush money payments linked to extramarital affairs, at Manhattan Criminal Court in New York City, Apr. 26, 2024.
Dave Sanders/POOL/AFP via Getty Images

First Republic Bank had a branch across the street from Trump Tower, where Cohen worked. Farro said Cohen frequently visited the bank and eagerly told him that he worked for Trump.

"He was a lawyer or is a lawyer. I am not sure," Farro said about Cohen, who was disbarred in 2019.

Prosecutors are now walking through First Republic Bank's policies for retaining documents. Prosecutors plan to use Farro as a custodial witness to authenticate records that will be used as evidence.



Apr 26, 2024 7:53 PM

Prosecution calls Gary Farro as next witness

Following the conclusion of Rhona Graff's testimony, prosecutors called Gary Farro as their next witness.

Farro currently works at Flagstar Bank. He said he is testifying voluntarily, though he said he received a subpoena prior to his testimony.


Apr 25, 2024 4:29 PM

'This story is true,' Pecker recounts being told of Stormy Daniels

"Do you know someone by the same of Stephanie Clifford?"

The question, by assistant district attorney Josh Steinglass, was the jury's introduction during the evidentiary phase of the trial to the woman whose long-denied claim of a sexual tryst with Donald Trump set in motion the alleged falsification of business records.

"Stormy Daniels is, or was, a porn star," former National Enquirer publisher David Pecker replied, using Clifford's stage name.

Pecker was having dinner with his wife on a Saturday night in early October 2016 when he said he received an urgent call from National Enquirer editor Dylan Howard.

"He said that she, she being Stormy Daniels, is trying to sell a story that she had a sexual relationship with Donald Trump, and Dylan can acquire the story for $120,000 from Keith Davidson if we made a decision right now," Pecker recalled.

In a series of text messages the jury saw, Howard told Pecker, "I know denials were made in the past but this story is true."

PHOTO: Former President Donald Trump attends his trial for allegedly covering up hush money payments linked to extramarital affairs, at Manhattan Criminal Court in New York City, Apr. 25, 2024.
Jeenah Moon/POOL/EPA-EFE/Shutterstock
Former President Donald Trump attends his trial for allegedly covering up hush money payments linked to extramarital affairs, at Manhattan Criminal Court in New York City, Apr. 25, 2024.
Jeenah Moon/POOL/EPA-EFE/Shutterstock

Pecker replied to Howard, "We can't pay 120k." The company had already paid $30,000 for the Dino Sajudin story and $150,000 for the Karen McDougal story, and Pecker recalled thinking, "I am not a bank."

In the text exchange, Howard responded, "Perhaps I call Michael and advise him and he can take it from there, and handle."

Pecker texted back, "Yes a good idea."

Pecker recalled having "a number of conversations" with Michael Cohen about Stormy Daniels. Cohen wanted Pecker to catch and kill the story.

"I said, 'I am not purchasing this story, I am not going to get involved with a porn star,'" Pecker testified he told Cohen. "He was upset and said the boss would be furious with me."


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