Trump trial: Trump hit with contempt, witnesses detail Stormy Daniels deal

Prosecutor Becky Mangold concluded her direct examination of banker Gary Farro by asking if First Republic Bank would have still permitted the wire transfer to Stormy Daniels if Michael Cohen disclosed the money was going to an adult film actress.

"There would definitely have been enhanced due diligence on that," Farro said, adding that the due diligence would have delayed the payment.

"We might consider that a reputational risk," Farro added.

After prosecutors completed their direct examination of Gary Farro, defense attorney Todd Blanche began his cross-examination.

Michael Cohen's former banker, Gary Farro, returned to the stand, where he was asked by prosecutor Becky Mangold about Cohen's frantic effort to create a bank account for a new company he created called Essential Consultants LLC on October 26, 2016.

Referring to Stormy Daniels, Farro told jurors that Cohen did not disclose the account would be used to send money to an adult film actress, adding that his bank, First Republic, avoided financing the adult-entertainment sector.

Farro said that Cohen added $131,000 to an account for Essential Consultants LLC using a home equity line of credit.

Farro then began walking jurors through a wire transfer authorization form that was filled out on October 27, 2016, using information provided by Michael Cohen.

The form -- which was signed by Cohen -- listed that $130,000 was being wired to Keith Davidson's attorney-client trust account. The money would be held in the account for Davidson's client.

According to the form, the purpose of the wire was a "retainer" payment.

Cohen completed the $130,000 payment to Stormy Daniels on October 27, 2016, which was 12 days before the presidential election.

In the paper order explaining his ruling holding Trump in contempt for his violations of the case's limited gag order, Judge Merchan warned Trump that he could be locked up if he continues to willfully violate the order.

"Defendant is hereby warned that the Court will not tolerate continued willful violations of its lawful orders and that if necessary and appropriate under the circumstances, it will impose an incarceratory punishment," Merchan wrote in his order.

Merchan wrote that Trump has until 2:15 p.m. ET today to remove posts violating the order from his social media account and campaign website. Trump has until close of business on Friday to submit the $9,000 penalty Merchan levied against him.

In his ruling, the judge also appeared to acknowledge the behavior of Michael Cohen, who has been targeting Trump on TikTok, and indicated that it could possibly lead to modifications of the gag order in the future.

Merchan said it is of the "utmost importance" that the limited gag order "not be used as a sword instead of a shield by potential witnesses," underscoring that the true purpose of the order is to "protect the integrity of these proceedings by shielding those fearful of reprisal by the Defendant so that they may take part in these proceedings without concern."

"However, if a protected party turns that underlying purpose on its head, it becomes apparent that the protected party likely does not need to be protected by the Expanded Order," the judge wrote.

Trump's team has argued that some of Trump's remarks were in response to attacks on him, including from Michael Cohen.

After Judge Merchan fined Trump a total of $9,000 for nine violations of the case's limited gag order, Trump was ordered to pay the fine by the close of business this Friday.

Merchan also ordered Trump to remove the posts from his Truth Social account and campaign website by 2:15 p.m. today.

Before resuming Gary Farro's direct examination, Judge Merchan also informed the parties that Trump will be able to attend his son Barron's high school graduation in May, as Trump had requested.

"I don't think the May 17 date is the problem, so Mr. Trump can certainly attend that day, attend his son's graduation," Merchan said.