Why the Stormy Daniels Case Matters
By
David Cay Johnston, DCReport Editor-in-Chief
Important national security, political and other issues are embedded in the lawsuit that a porn actress filed against the president this week.
Treating it as mere entertainment would be a serious mistake.
Further, the inept and
dishonest way the White House and Trump’s personal lawyer have handled the
matter underlines the many facts that establish this administration is a kakistocracy,
a government of the venal, the corrupt and the incompetent.
Instead of the best
and the brightest, the Trump administration draws on the worst and the dullest.
The porn star Stormy
Daniels, whose real name is Stephanie Clifford, is just one of many people who
know dark secrets about Trump.
Like Clifford, these
people have solid evidence—photographs, text messages, outtakes from Trump’s
Celebrity Apprentice and other evidence.
The secrets Clifford knows are for sure not the darkest.
The secrets Clifford knows are for sure not the darkest.
The rest cannot speak
out because their silence has been obtained through cash, coercion or both.
The result is that the public does not have anywhere near a full appreciation of what Trump has done, who he had done it to, how much he has paid in hush money and how vulnerable he is to blackmail and leverage.
The result is that the public does not have anywhere near a full appreciation of what Trump has done, who he had done it to, how much he has paid in hush money and how vulnerable he is to blackmail and leverage.
Virtually everyone who
has worked for Trump since the late 1980s has been required to sign a
nondisclosure agreement, or NDA, as a condition of working for him.
Even some low-level campaign volunteers had to sign NDAs, which included lifetime promises to never speak critically of Trump, his family or the Trump Organization.
Clifford has asked a
Los Angeles County superior court judge to lift any restrictions on telling
about what she says was an affair with Trump that began in 2006 and continued
well into 2007, when Trump’s third wife, the former soft-core porn model
Melania Knaus, was caring for their infant son.
The lawsuit states
Clifford has documentary evidence of the affair, which she plans to make public
if the court rules in her favor.
Trump, aided by
personal lawyer Michael D. Cohen, “aggressively sought to silence” Clifford,
the lawsuit asserts.
Clifford and her
lawyer say Trump never signed the agreement, making it null and void. They also
say public statements by Cohen negate the deal.
The Trump White House
has denied any affair. At the same time, both Trump, Cohen and White House
press secretary Sarah Huckabee Sanders have backhandedly confirmed there was an
affair and, significantly, that hush money was paid.
Our interest is not in
the illicit sex. Rich and powerful men dallying is hardly news.
Rather our interest is
in the denials, the cover-up and what those actions tell us and how they
jeopardized national security.
People with dark
secrets, the kind that make them vulnerable to blackmail, are routinely denied
national security clearances.
By virtue of his
office, Trump has access to every secret—including ones he delivered to Russian
emissaries last year, as we learned from the Kremlin.
We know that Clifford
is not the only woman who could come forward. Earlier the parent company of one
of Trump’s favorite newspapers, the supermarket tabloid The National Enquirer,
paid $150,000 to the 1999 Playmate of the Year to never speak of her 2006 fling
with Trump.
How many others with
dark secrets of all sorts are out there, hidden from the American people
because of nondisclosure agreements or hush money?
What of the mobsters
and the major international drug trafficker with whom Trump has done business
and lucrative favors—the ones we know about from court records, a letter he
wrote and New Jersey casino regulatory files?
Are there others? And
what do they know?
And what is known by
the spies and agents of Vladimir Putin, the Kremlin autocrat of whom Trump
always speaks with fealty and awe despite Russian interference in U.S.
presidential election?
And to show how likely
it is that there are dark secrets out there that endanger our national
security, keep this in mind: Plenty of journalists knew about Clifford, but
only a few knew about the Playmate.
If American reporters
knew these secrets, but could not get them out, imagine what a foreign power
with sophisticated electronic surveillance and trained agents could know.
Keep in mind that Trump’s national security adviser, who was on Putin’s payroll, is now a convicted felon. And he is only one of three men close to Trump who were caught lying to American law enforcement agents and are now convicted felons.
Keep in mind that Trump’s national security adviser, who was on Putin’s payroll, is now a convicted felon. And he is only one of three men close to Trump who were caught lying to American law enforcement agents and are now convicted felons.
Cohen made a number of
legal errors, including technical issues in creating the special purpose
vehicle to make the hush money payoff, a Delaware company called “Essential
Consultants, LLC.”
Its sole purpose, Clifford’s lawsuit says, was to conceal “the true source” of the hush money “thus further insulating Mr. Trump from later discovery and scrutiny.”
A month ago, Cohen got
Clifford to sign a statement denying she ever was intimate with Trump,
evidently through threats of litigation for breaching the hush money agreement
and a demand that she return the money.
Cohen says he paid
$130,000 to Clifford less than two weeks before the presidential election.
Cohen said he paid with his own money, not a cent coming from Trump, the Trump
Organization or the campaign.
This declaration poses
a host of issues:
If the money was a
gift on Trump’s behalf or, indirectly, to Trump, the law requires the filing of
a federal gift tax return, which may include payment of gift tax.
The money can also be
seen as an illegal campaign contribution since federal election law covers
“anything of value” that benefits a candidate. The hush money was 48 times the
maximum lawful campaign contribution from an individual.
Cohen issued a
statement last month about the payment, which appears to violate the two-sided
requirement for confidentiality.
Trump evidently never
signed the hush money agreement, which may, as Clifford claims, render it null
and void.
If Cohen told the
truth—that he acted on his own without Trump’s knowledge—he is a candidate for
disbarment since rule 1.4 of the New York State bar specifically prohibits
lawyers from settling cases without the knowledge and consent of their clients.
Cohen, reporters have
since established, complained to friends that Trump was supposed to reimburse
him but never did. That’s not surprising given Trump’s long and well-documented
history of refusing to pay workers, vendors and even governments.
With such sloppy legal
work, an obvious question arises as to what other legal and reputational
jeopardy Trump may be in because of Cohen’s ineptness.
It surely suggests
that Cohen’s practice of screaming at people who pose a threat to Trump may now
have been rendered ineffective, making him of little future use to Trump. What
secrets does Cohen know, especially given his statement, “I will always protect
Mr. Trump.”
Compounding this was
what Sarah Huckabee Sanders, the White House press secretary, told reporters
Wednesday. Almost as an afterthought, Sanders said: “This case has already been
won in arbitration.”
No such arbitration could exist unless Trump was a party to the event. Sanders went on to clarify that “the arbitration was won in the president’s favor.” That backhanded, and unintentional, admission by Sanders establishes that the affair was real.
Whatever Clifford’s
motives in coming forward, we can only hope that she is freed to speak and that
this encourages others who have been legally gagged by Trump to step forward.
We should also worry
because the Clifford lawsuit shows that Trump is subject to blackmail and
leverage and yet he has unlimited access to every single one of our national
security secrets.
We know that Trump has abused this power. Last year he delivered closely guarded secrets from an ally with the Russian foreign minister and the Russian ambassador in their jocular Oval Office meeting attended by only one other person, a photographer for the Kremlin-controlled news agency Tass.
Keep in mind that
Clifford’s lawsuit goes to the heart of Trump being subject to blackmail. Think
not of illicit sex, but of all the lucrative business Trump is known to have
done over decades with Russian mobsters and others with close ties to the Putin
regime.