NEW YORK _ President Donald Trump's personal lawyer, Michael Cohen, was flagged to the federal government after he used a shell company to wire $130,000 to a porn star in exchange for her silence about a yearlong extramarital affair with Trump, according to a report.
Cohen, who has worked for Trump in various capacities since 2007, sent X-rated actress Stormy Daniels the substantial hush payment via a First Republic Bank account 12 days before the 2016 presidential election, a person familiar with the matter told The Wall Street Journal on Monday. The hefty transaction, wired through an anonymous limited liability company, drew the attention of First Republic bankers, who reported it to the Treasury Department as suspicious, a second source said.
Banks usually flag any large transactions that deviate from a customer's typical banking patterns or have no apparent business purpose.
Daniels, whose real name is Stephanie Clifford, threatened to cancel the nondisclosure agreement that Cohen had drawn up after he failed to meet two payment deadlines, a source said. Cohen reportedly bungled the payments because he couldn't get a hold of Trump during the hectic final days of the campaign.
After Trump's election, Cohen complained to friends that the newly minted commander in chief had yet to pay him back for the hush payment to Daniels, several people familiar with the matter said.
Cohen admitted last month that he "facilitated" the payment to Daniels using his own money. But he refused to explain why he had paid the "Good Will Humping" actress and denied that he was reimbursed by Trump, his campaign or his namesake company.
The White House and Cohen have vehemently denied reports that Trump and Daniels had a yearlong affair that started a few weeks after first lady Melania gave birth to their son, Barron, in 2006.
But Daniels detailed her steamy affair with Trump in a 2011 interview with InTouch Magazine. The extensive interview was not published until January because Cohen had threatened to sue the magazine, according to reports.
Cohen did not return a request for comment from the New York Daily News Monday. Representatives for Daniels did not respond to emailed questions.
Some members of Congress have started to show interest in Cohen's payment to Daniels as it might have violated campaign finance laws.
Reps. Ted Lieu, D-Calif., and Kathleen Rice, D-N.Y., asked the FBI last week to investigate whether Cohen coordinated the payment with Trump or his campaign. If he did, Lieu and Rice charge that the Daniels payment would constitute an illegal campaign contribution that should have been reported to the Federal Election Commission.
Meanwhile, special counsel Robert Mueller is reportedly investigating Cohen's role in a bid to build a Trump Tower in Moscow after Trump's campaign announcement. The project was abruptly canceled after concerns were raised about a U.S. presidential candidate making real estate ventures in a foreign adversary's capital.
