Trump attorneys highlight key reason why Cohen payments were labeled ‘legal expenses’
By
Ashley Oliver
May 8, 2024 2:55 pm
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Former President Donald Trump is on trial in New York for allegedly falsifying records of a hush money payment, but his defense attorneys made the case in court this week that the way the Trump Organization recorded the expense was aboveboard.
Jeffrey McConney, a former controller who oversaw accounting at Trump’s company, testified this week about the process of recording the $420,000 that Trump paid his ex-attorney Michael Cohen in 2017. The payment is now at the heart of Manhattan District Attorney Alvin Bragg’s charges against the former president.
McConney explained how the Trump Organization, like many companies, used a computer program to maintain its ledger of expenses and revenue. Entries on the ledger corresponded to various accounting categories, such as utility bills or real estate taxes, and users were limited to the choices available in the computer program.
“Legal expense” was one of these categories in the Trump Organization’s accounting system, according to evidence presented during the trial. McConney instructed an accountant to categorize the payments to Cohen as legal expenses “because we were paying a lawyer,” he testified.
“[Legal expense] was basically part of a dropdown menu?” Trump’s attorney Emil Bove asked during his cross-examination of McConney.
“Yes,” McConney replied.
“These categories, there was a level of rigidity to them, right?” Bove asked, observing how the accounting computer program was a product of the 1990s.
“Yes,” McConney said.
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https://www.washingtonexaminer.com/news/justice/2996491/trump-attorneys-highlight-key-reason-cohen-payments-labeled-legal-expenses/
