$4.4 Million Flow to Cohen LLC | Firm Tied to Russian Oligarch Made Payments to Michael Cohen
A shell company that Michael D. Cohen used to pay hush money to a pornographic film actress received payments totaling more than $1 million from an American company linked to a Russian oligarch and several corporations with business before the Trump administration, according to documents and interviews.
Financial records reviewed by The New York Times show that Mr. Cohen, President Trump’s personal lawyer and longtime fixer, used the shell company, Essential Consultants L.L.C., for an array of business activities that went far beyond what was publicly known. Transactions adding up to at least $4.4 million flowed through Essential Consultants starting shortly before Mr. Trump was elected president and continuing to this January, the records show.
Among the previously unreported transactions were payments last year of about $500,000 from Columbus Nova, an investment firm in New York whose biggest client is a company controlled by Viktor Vekselberg, the Russian oligarch. A lawyer for Columbus Nova, in a statement on Tuesday, described the money as a consulting fee that had nothing to do with Mr. Vekselberg.
Other transactions described in the financial records include hundreds of thousands of dollars Mr. Cohen received from Fortune 500 firms with business before the Trump administration, as well as smaller amounts he paid for luxury expenses like a Mercedes-Benz and private club dues.
References to the transactions first appeared in a document posted to Twitter on Tuesday by Michael Avenatti, the lawyer for Stephanie Clifford, the adult film star who was paid $130,000 by Essential Consultants to keep quiet about an alleged affair with Mr. Trump. The lawyer’s seven-page document, titled “Preliminary Report of Findings,” does not explain the source of his information but describes in detail dates, dollar amounts and parties involved in various dealings by Mr. Cohen and his company. Most of the transactions involved two banks: First Republic Bank and City National Bank.
The Times’s review of financial records confirmed much of what was in Mr. Avenatti’s report. In addition, a review of documents and interviews shed additional light on Mr. Cohen’s dealings with the company connected to Mr. Vekselberg, who was stopped and questioned at an airport earlier this year by investigators for Robert S. Mueller III, the special counsel examining Russian interference in the 2016 presidential election.
Taken together, the Times’s findings and Mr. Avenatti’s report offer the most detailed picture yet on Mr. Cohen’s business dealings and financial entanglements in the run-up to the election and its aftermath. Federal prosecutors in Manhattan are investigating Mr. Cohen for possible bank fraud and election-law violations, among other matters, according to people briefed on the investigation. Stephen Ryan, a lawyer representing Mr. Cohen, declined to comment.
Ms. Clifford, whose stage name is Stormy Daniels, is suing Mr. Cohen and Mr. Trump to break her nondisclosure agreement related to the $130,000.
It is unclear whether that or any of the other transactions were improper, but Mr. Avenatti has asserted that Mr. Cohen’s use of Essential Consultants potentially violated banking laws. The financial records indicate that at least some of the money that passed through Essential Consultants was from sources and in amounts that were inconsistent with the company’s stated purpose.
Mr. Cohen also used the company to collect $250,000 after arranging payments in 2017 and 2018 by a major Republican donor, Elliott Broidy, to a former Playboy model he allegedly impregnated, according to news reports last month.
Among the other payments to Mr. Cohen’s company described in the financial records were four for $99,980 each between October and January by Novartis Investments S.A.R.L., a subsidiary of Novartis, the multinational pharmaceutical giant based in Switzerland. Novartis — whose chief executive was among 15 business leaders invited to dinner with Mr. Trump at the World Economic Forum in January — spent more than $10 million on lobbying in Washington last year and frequently seeks approvals from federal drug regulators. Novartis said in a statement that its agreement with Essential Consultants had expired.
In addition, Korea Aerospace Industries paid Mr. Cohen’s company $150,000 last November, according to the records. The company, an aircraft manufacturer, has partnered with the American defense contractor Lockheed Martin in competing for a multibillion-dollar contract to provide trainer jets for the United States Air Force that is expected to be awarded this year. A representative for Korea Aerospace declined to comment.
AT&T made four payments totaling $200,000 between October 2017 and January 2018, according to the documents. AT&T, whose proposed merger with Time Warner is pending before the Justice Department, issued a statement on Tuesday evening confirming that it made payments to Mr. Cohen’s firm.
“Essential Consulting was one of several firms we engaged in early 2017 to provide insights into understanding the new administration,” the statement said. “They did no legal or lobbying work for us, and the contract ended in December 2017.”