Why The Stormy Daniels/Trump Hush Agreement Is A Deliberate, Knowing Fraud.
I have previously detailed the legal and ethical issues that Trump attorney Michael Cohen may face related to the Hush Agreement he orchestrated with Stormy Daniels. I would like to add another.
Michael Cohen drafted and signed and attempted to enforce an agreement that he knows is a fraud and knew was a fraud when he did it. On March 28th Cohen’s attorney and spokesman, David Schwartz, directly stated Trump was never a party to the agreement and never even had knowledge of it. Watch the clip below at the 3:30 mark.
Accepting for now that his comments are true, Schwartz directly states that Trump did not even know of the agreement or the payment, and was never told of the agreement or payment by Cohen. To see the undeniably fraudulent nature of the agreement read Paragraph 4.3(b) of the agreement and understand that “DD” is the alias for Donald Trump.
The agreement flat out says that “[Donald Trump] warrants . . .” This is not “Cohen warrants” or his company Essential Consultants warrants. It is Donald Trump warrants. It is self evident that Donald Trump cannot warrant that which Donald Trump does not even know about.
When writing this into the agreement Cohen lied. He wrote this knowing Trump made no such promise or representation because Trump never knew of it. The words “DD [Donald Trump] warrants . . .” are deliberately and knowingly fraudulent.
The words in the preceding paragraph are also critical as they directly state that Trump’s personal warranty is essential to the agreement:
The following agreements, warranties and representations are made by [Donald Trump] as material inducements to [Stormy Daniels] to enter into this Agreement, and each Party acknowledges that she/he is executing this Agreement in reliance thereon.
The agreement directly states that the warranties and representations “are made by [Donald Trump]” and that Trump’s fraudulent warranty is a “material inducement” to the agreement expressly relied upon by Daniels when she signed the agreement. The agreement is void for deliberate fraud in the inducement by Counsel for Donald Trump. There is no other conclusion.
This is not the only example where the agreement fraudulently asserts Trump’s direct involvement. A not necessarily complete list includes (quotes substitute “Donald Trump” for the alias “DD”):
- “Donald Trump claims he has been damaged . . .” Paragraph 2.2(b). How can Trump claim anything if he is not a part of this and does not even know of it?
- “Donald Trump desires to acquire . . .” Paragraph 2.3. This is to set up Trump buying the evidence Daniels has. How can Trump “desire” anything under this contract if he has no knowledge of it?
Trump’s and Cohen’s attorneys are trying to argue that Trump is not a party to the agreement but rather a “third party beneficiary.” That is a legitimate concept under the law, but the notion is contradicted by explicit language in the agreement stating Trump is a party. Section 2.4 of the agreement states:
The Parties expressly acknowledge, agree and understand that the Confidentiality provisions herein and the representations and warranties made by [Stormy Daniels] herein and the execution by her of the Assignments and Transfer of Copyright are at the essence of this Settlement Agreement and are a material inducement to [Donald Trump's] entry into this Agreement, absent which [Donald Trump] would not enter into this Agreement. Donald Trump expects and requires that Stormy Daniels never communicate with him or his family for any reason whatsoever.
Sure hard to reconcile that language with a claim that Trump did not enter into the agreement and did not even know of it.
It should also be noted that in Paragraph 5, listing the remedies for breach of the agreement, all of the remedies apply only to Donald Trump. Neither Cohen, or his company Essential Consultants, has any right to any remedy according to the contract. Only Trump does.
You can read the Hush Agreement itself, attached to Daniels initial complaint, here.