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‘An M.O. for Other More Serious Crimes’

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An expert in anti-corruption enforcement writes to Josh Marshall about Michael Cohen’s work for Donald Trump:

First, bribe money can be laundered from the “client” through the lawyer as fictitious legal services. The lawyer can issue bogus invoices to the client in amounts sufficient to cover bribe payments, a commission to the lawyer, and a gross-up for any taxes the lawyer would have to pay on the fee income (bagmen, after all, don’t want to be stuck paying taxes on amounts they pay out as bribes). Sound familiar?

Second, by disguising the bribes as payments for legal fees, businesses can try to write them off as expenses (bribes are not deductible). This is tax evasion, of course, but it is common practice for the corrupt. Third, the lawyer-client relationship can be an impediment to law enforcement. It can be very difficult for prosecutors to pierce what appears on the surface to be a legitimate attorney-client relationship.

So now we have Giuliani confirming that this is exactly how Trump and Cohen operated. Hush money to Stormy Daniels is one thing and certainly raises potential serious campaign finance violations, but she is not a public official. What I find most significant about Rudy’s admission is what it says about the nature of the relationship between Trump and Cohen and how it suggests an M.O. for other more serious crimes.

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About Political Wire

Taegan Goddard is the founder of Political Wire, one of the earliest and most influential political web sites. He also runs Political Job Hunt, Electoral Vote Map and the Political Dictionary.

Goddard spent more than a decade as managing director and chief operating officer of a prominent investment firm in New York City. Previously, he was a policy adviser to a U.S. Senator and Governor.

Goddard is also co-author of You Won - Now What? (Scribner, 1998), a political management book hailed by prominent journalists and politicians from both parties. In addition, Goddard's essays on politics and public policy have appeared in dozens of newspapers across the country.

Goddard earned degrees from Vassar College and Harvard University. He lives in New York with his wife and three sons.

Goddard is the owner of Goddard Media LLC.

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