Trump trial: 1st week of testimony ends with testimony from Michael Cohen's former banker
Banker Gary Farro testified in Donald Trump's hush money trial in New York.
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.
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
What to know about the hush money case
READ MORE: Here's what you need to know about the historic case.
'I thought we had an agreement,' Pecker says Trump told him
After court resumed for the afternoon session, David Pecker retook the stand.
The former National Enquirer publisher testified that six months after Donald Trump became president, Trump hosted a "thank-you dinner" for Pecker and some of his business associates.
After taking photos in the Oval Office -- "Jared Kushner was there, Sean Spicer was there" Pecker said -- Trump asked Pecker to walk with him along the colonnade "past the Rose Garden," Pecker recalled. The jury saw a photo of the two men on that walk.
Trump said that on that walk, Trump asked Pecker, "How's Karen doing?" referring to Karen McDougal, who the National Enquirer had paid to catch-and-kill her story claiming a year-long relationship with Trump.
"She's doing well. She's quiet. All's going good," Pecker recalled responding.
Eight months later, in March 2018, Pecker said Trump called him about a television interview McDougal had conducted.
"He said 'Did you see the Anderson Cooper interview with Karen McDougal?' I said yes. He said, 'I thought we had an agreement with Karen that she can't give any interviews or be on any television shows.' So I said yes we have an agreement, but I amended it," said Pecker, who testified earlier that he had done so following the election.
Pecker testified that Trump was very upset. "He couldn't understand why," Pecker said. "He couldn't believe that I did it."
Pecker said Trump also called him after Stormy Daniels appeared on a television interview a short while later.
"He said, 'We have an agreement with Stormy Daniels that she cannot mention my name or do anything like this, and each time she breaches the agreement it's $1 million penalty,'" Pecker said.
Pecker says 'family was never mentioned' as reason for killing stories
Former National Enquirer publisher David Pecker concluded his morning testimony by answering questions about what he perceived to be Trump's motivation to silence negative and salacious stories about him.
"I thought it was for the campaign," Pecker said. "His family was never mentioned."
Pecker added that Trump's motivation for killing stories appeared to change once he announced his run for the presidency.
"Prior to the election, if a negative story was coming out with respect to Donald Trump and we spoke about it, he was concerned about Melania Trump and Ivanka, what the family might hear or say about it, whether it was true or not," Pecker said.
Things changed when Trump changed from a businessman to a politician, Pecker said.
"I didn't hear or discuss that it was what Melania [would] say or what Ivanka would say or what his family would say, but the impact it would have upon the election," Pecker said, before court recessed for the afternoon break.
As Trump left the courtroom for the lunch break, a reporter shouted a question: "Do you still like Pecker?" They did not get a response.
Pecker's testimony is scheduled to resume following the break.
'Thank you for handling' McDougal, Pecker says Trump told him
Former National Enquirer publisher David Pecker testified that he was twice summoned to Trump Tower in the period following the 2016 election: the first time for a meeting with Michael Cohen, and the second with Donald Trump.
The first meeting began in Cohen's office, where Cohen divulged for the first time to Pecker that he personally covered the $130,000 payment to Stormy Daniels, and that he was concerned that he would not receive a bonus from the Trump Organization, Pecker testified.
"He (Cohen) asked me to talk to the boss on his behalf to try to help him get his bonus," Pecker said, referring to Trump.
When Trump himself came into the room, Pecker asked to walk him back to his office -- and at that time, Pecker told Trump that "Michael Cohen is very concerned about his bonus for this year, and I want you to know that he's very loyal."
Trump replied that Cohen had several apartments and taxi medallions, and added, "Don't worry about it, I'll take care of it," Pecker said.
On Jan. 6, 2017, Pecker arrived at Trump Tower for a meeting with Trump and was escorted to his residence by Jared Kushner, he testified.
Pecker said he was ushered into the room, where Trump was surrounded by administration officials James Comey, Sean Spicer, Reince Priebus, and Mike Pompeo -- they were "updating Mr. Trump on the Ft. Lauderdale shooting" that had occurred at the airport there.
Pecker testified that when Trump introduced him to Trump's inner circle of advisers, Trump said of the National Enquirer publisher, "He knows more than anyone else in this room."
"It was a joke. Unfortunately, they didn't laugh," Pecker testified, which brought some laughs from reporters in the gallery. A few jurors smiled at the moment.
Pecker testified that after Trump's advisers left the room, Trump turned to him.
"He (Trump) asked me how Karen [McDougal] was doing -- how's 'our girl' doing. I said, she's writing her articles, she's quiet, things are going fine."
Trump then said, "I want to thank you for handling the McDougal situation." And then he said, "I want to thank you for the doorman situation," Pecker testified.
Pecker testified that he took this to mean that Trump was thanking him "for not publishing any of the stories and helping the way I did."
Pecker says he released McDougal from agreement after election
After the Wall Street Journal ran a story that began to uncover the catch-and-kill arrangement between National Enquirer publisher David Pecker, Donald Trump and Trump's then-attorney Michael Cohen, Pecker testified that he ordered National Enquirer's Chief Content Officer Dylan Howard to contact McDougal's lawyer to ensure that she maintained her silence.
"I didn't know if she went off the reservation, so I asked Dylan to call Keith Davidson," Pecker testified before he began reading through a series of text messages from the 2016.
"She's cool. Moving forward with the [confidentiality agreement]," Howard texted Pecker.
"Excellent news," Pecker texted back.
"One day of discomfort and back [to] the campaign issues," Howard texted.
Days later, Trump was elected president of the United States.
"Is it fair to say that by the time of this [release from the agreement] … Mr. Trump has already been elected president?" Steinglass asked.