IT'S A RICO PROSECUTION:

At the time of the payments to the two women, Mr. Trump was the head of the company, and although he turned over its management to his elder sons, he still owns it through a trust. While the prevailing view at the Justice Department is that a sitting president cannot be indicted, the prosecutors in Manhattan could consider charging him after leaving office. It is also possible the prosecutors could seek his testimony before he leaves office if they continue the investigation into anyone else who might have had a role in the crimes, a person briefed on the matter said. [...]

In early September, before Mr. Cohen had completed his discussions with prosecutors and before the Southern District renewed its record request, Bloomberg reported that the Southern District was investigating Trump Organization executives other than Mr. Cohen. [...]

Mr. Cohen has told the Southern District prosecutors that he arranged the hush money to the two women at the direction of Mr. Trump. In the filing on Friday, the Southern District prosecutors put the weight of their office behind Mr. Cohen's admission, saying that "with respect to both payments, he acted in coordination with and at the direction of" Mr. Trump. [...]

Mr. Cohen also pleaded guilty to "causing" an illegal corporate donation to Mr. Trump when he urged American Media Inc., which publishes The National Enquirer, to buy the rights to a former Playboy model's story of an affair with Mr. Trump. The deal effectively silenced the model, Karen McDougal, for the remainder of the campaign.

Mr. Cohen has also told the Southern District that Mr. Weisselberg, who is one of Mr. Trump's longtime loyalists, was involved in discussions about how to pay Ms. Daniels, according to a person briefed on the matter. Mr. Cohen linked him to the deal with American Media as well.

During the campaign, Mr. Cohen recorded a conversation he had with Mr. Trump about buying the rights to negative information American Media had collected on Mr. Trump. Mr. Cohen told Mr. Trump, who did not know he was being recorded, that "I've spoken to Allen Weisselberg about how to set the whole thing up." The deal was signed by American Media and Mr. Cohen, according to court papers. But a person familiar with the arrangement said that Mr. Trump balked at reimbursing America Media, as had been agreed to, and the media company was never reimbursed in relation to Ms. McDougal.

But after the campaign, Mr. Weisselberg handled reimbursing Mr. Cohen for the payment to Ms. Daniels, according to people briefed on the matter. In early 2017, Mr. Cohen sought to recoup the $130,000 he paid out of his own pocket to Ms. Daniels as well as $50,000 he spent on a technology company in connection with the campaign, prosecutors have said.

Not only did the Trump Organization repay those expenses, but it agreed to pay taxes Mr. Cohen might have incurred on the reimbursements. This decision to "gross up" Mr. Cohen went against the Trump Organization's typical reimbursement practices, people briefed on the matter said.

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