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.


What to know about the hush money case

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


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Pecker testifies about Karen McDougal before court ends for day

"Karen McDougal was a Playboy model," former National Enquirer publisher David Pecker said, recalling how he learned in June 2016 "that there's a Playboy model who is trying to sell a story about a relationship that she had with Donald Trump for a year."

Pecker said he immediately called Trump's then-attorney Michael Cohen to inform him. By then, he was speaking to Cohen "a couple times a week," but that soon changed. Pecker said he and Cohen spoke "much more frequently" about McDougal's claims.

"Michael was very agitated. It looked like he was getting a lot of pressure to get the answer right away," Pecker said. "He kept on calling, and each time he called he seemed more anxious."

Pecker said he assumed "Mr. Trump was asking Michael Cohen, 'Did we hear anything yet?'" Pecker said.

"Did you ever come to believe that Michael Cohen had spoken with Mr. Trump about McDougal's claims?" prosecutor Josh Steinglass asked.

"Yes I did," Pecker responded before recounting a phone conversation Pecker said he himself had with Trump.

"I said I think the story should be purchased and we should buy it," Pecker recalled telling Trump. "Mr. Trump said to me, 'I don't buy stories. Anytime you do anything like this, it always gets out.'"

Ultimately, McDougal was paid $150,000 and promised a series of exercise articles in the publication.

Following that testimony, court was adjourned.

It's expected the jury will hear more on McDougal upon Pecker's return to the witness stand, when court resumes on Thursday.


Pecker kept doorman under contract until after election

According to former National Enquirer publisher David Pecker, Michael Cohen pushed for the National Enquirer to keep doorman Dino Sajudin locked into a contract until after the 2016 election, even though the story Sajudin was shopping about Trump having a love child were untrue.

"I told Michael Cohen the story was not true. I told him that the doorman is very difficult to deal with," Pecker testified.

Cohen had earlier encouraged Pecker to add a $1 million penalty to Sajudin's contract if he broke the agreement and tried to shop around the story.

"He would breach this agreement and owe American Media a million dollars," Pecker said. "It was basically a lever over him to make sure that wouldn't happen."

Cohen encouraged Pecker to keep Sajudin locked in, according to the former publisher.

"I am going release him one way or the other," Pecker said he told Cohen regarding Sajudin. "He said, 'No, release him after the election.'"

"When was he released?" prosecutor Joshua Steinglass asked Pecker.

"December 9, 2016," Pecker said.

"After the presidential election?" Steinglass asked.

"Yes," Pecker responded.


Pecker details catch-and-kill deal with Trump Tower doorman

Former National Enquirer publisher David Pecker described the very first story he "caught and killed" pursuant to his agreement with Donald Trump and his then-attorney Michael Cohen: a false story from a Trump World Tower doorman in 2015.

Trump, sitting at the defense table, shook his head when Pecker laid out the allegation: that "Donald Trump fathered an illegitimate girl with a maid at Trump Tower."

Pecker testified that he "immediately called Michael Cohen" when his team got wind of those allegations being shopped by the doorman, Dino Sajudin. Cohen told him it was "absolutely not true" -- but Pecker testified he ultimately moved forward with buying the story to the tune of $30,000.

"This could be a very big story. I believe that it's important that it should be removed from the market," Pecker said he told Cohen.

Asked about Cohen's response, Pecker said: "He said the boss would be very pleased," saying he understood "the boss" to mean Donald Trump.

Pecker testified that Cohen later called back to say the story is "absolutely not true" and that Trump "would take a DNA test" -- an apparently new revelation -- but Pecker said it wouldn't be necessary.

Pecker conceded that if the story turned out to be true, it "probably would be the biggest sale" for the paper since the death of Elvis Presley.

Still, Pecker testified he would have held it until after the campaign was over.

"I would have published it after the election," Pecker said. "That was the conversation I had with Michael Cohen, and that's what we agreed to."

Ultimately, the story turned out to be untrue -- but Pecker still paid for it.

"Why are you paying $30,000 for an untrue story?" prosecutor Joshua Steinglass asked while displaying the contract Pecker had with Sajudan to the jury.

"Because if the story got out to another publication, it would have been embarrassing for the campaign," Pecker said.

"So this was a way to lock it up?" Steinglass asked.

"That's correct," Pecker responded.


Pecker testifies that he strategized with Steve Bannon

Donald Trump introduced David Pecker to Steve Bannon to strategize future stories about Trump's opponents, the former National Enquirer publisher testified.

"[Trump] thought both of us could work very well together," Pecker said of Bannon, who would go on to become chief strategist in the Trump White House.

Pecker said Bannon liked some of the National Enquirer's past coverage and had ideas for the future.

"He liked them very much. He had some other ideas," Pecker said, mentioning a proposed plan to book one of Pecker's reporters on Sean Hannity's Fox News show to talk about the National Enquirer's reporting about Hillary Clinton.


Pecker reiterates that he didn't want Stormy Daniels' story

Former National Enquirer publisher David Pecker testified on cross-examination that the publication's limited involvement in Stormy Daniels' hush money payment was unrelated to the August 2015 Trump Tower meeting where Pecker vowed to serve as the "eyes and ears" of Trump's presidential campaign.

Pecker's testimony on cross-examination about the Daniels story appeared consistent with his testimony yesterday about his strong desire not to be involved in the Stormy Daniels payment.

Pecker said yesterday that he did not want to be involved in the story due to concerns about reputational harm to the National Enquirer and a lack of reimbursement for the other payments he had made to suppress previous Trump stories.

"I said, we already paid $30,000 to the doorman, we paid $150,000 to Karen McDougal, and I am not a bank. I am not paying out any further disbursements among us," Pecker testified yesterday. Pecker said he instructed National Enquirer Chief Content Officer Dylan Howard to flag the Stormy Daniels story to Michael Cohen, who made the payment to Daniels himself.

Asked about Daniels' payment on cross-examination, Pecker said that the National Enquirer's limited involvement was unrelated to their vow to Trump.

"You did not consider the Stormy Daniels story to be part of any agreement you had in August 2015?" defense attorney Emil Bove asked.

"That is correct," Pecker said.

"You wanted nothing to do with it?" Bove said.

"That's correct," Pecker said.

Pecker added that he did not "authorize" Howard to continue communicating with Stormy Daniels' lawyer Keith Davidson about the payment.

When Howard raised concerns to Pecker that Davidson had not yet been paid by Michael Cohen, Pecker said he was angry that Howard continued to communicate with Davidson about the story. In addition to the nature of the story -- which Pecker said could endanger the National Enquirer's relationship with its distributors -- Pecker said Cohen's delay in paying Daniels' lawyer could result in reputational harm to the National Enquirer.

"Frankly, you were not happy to be hearing that?" Bove asked about Cohen's delayed payment.

"Yes," Pecker said.

"The main concern was Howard's reputation?" Bove asked.

"Yes," Pecker said.