1 I8LQCOHp 3 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ------------------------------x UNITED STATES OF AMERICA v. 4 MICHAEL COHEN 5 Defendant ------------------------------x 1 2 18 CR 602 (WHP) Plea 6 New York, N.Y. August 21, 2018 4:15 p.m. 7 8 9 Before: 10 HON. WILLIAM H. PAULEY III District Judge 11 12 13 14 15 16 APPEARANCES GEOFFREY S. BERMAN United States Attorney for the Southern District of New York RACHEL MAIMIN ANDREA GRISWOLD THOMAS McKAY NICHOLAS ROOS Assistant United States Attorneys 19 PETRILLO KLEIN & BOXER LLP Attorneys for Defendant GUY PETRILLO AMY LESTER PHILIP PILMAR 20 -Also Present- 21 BARD HUBBARD, FBI GIOVANNI LEPORE, IRS KIRSTEN SCHILL, FBI RYAN CAREY, FBI JOE DVORE, FBI 17 18 22 23 24 25 SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 2 I8LQCOHp 1 (Case called) 2 DEPUTY CLERK: 3 Cohen. 4 5 United States of America v. Michael Would counsel for the government gave their appearance. 6 MS. GRISWOLD: 7 Andrea Griswold, Rachel Maimin, Thomas McKay and 8 Good afternoon, your Honor. Nicolas Roos for government. 9 We're joined at counsel table by Special Agent Bard 10 Hubbard with the FBI and Special Agent Giovanni Lepore with the 11 IRS. 12 THE COURT: 13 DEPUTY CLERK: 14 Good afternoon. Would counsel for defense give their appearance. 15 MR. PETRILLO: 16 For Mr. Cohen, Guy Petrillo and Amy Lester, Petrillo 17 Yes. Good afternoon, your Honor. Klein and Boxer. 18 THE COURT: 19 I note the presence of the defendant, Mr. Cohen at 20 Good afternoon to you. counsel table. 21 Ms. Griswold, what is the status of this matter? 22 MS. GRISWOLD: Your Honor, we are here today for a 23 waiver of indictment. We would like to file an information and 24 I believe the defendant needs to be presented, arraigned on 25 that information, have the waiver of indictment, and then SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 3 I8LQCOHp 1 intends to enter a guilty plea to the counts in the 2 information. 3 THE COURT: Very well. 4 Let's begin then with an initial appearance. 5 Mr. Cohen, I am District Judge William Pauley. The 6 purpose of this proceeding, sir, is to inform you of certain 7 rights that you have, to inform you of the charges against you, 8 and to consider whether counsel should be appointed for you, 9 and to decide under what conditions you should be released. 10 First, you have the right to remain silent. You are 11 not required to make any statements. 12 statements to the authorities, you need not make any further 13 statements. 14 Even if you have made any Anything that you do say can be used against you. You have the right to be released either conditionally 15 or unconditionally pending trial unless I find that there are 16 no conditions that would reasonably assure your presence in 17 court and the safety of the community. 18 You have the right, sir, to be represented by counsel 19 during all court proceedings, including this one, and during 20 all questioning by authorities. 21 attorney, I will appoint one to represent you. 22 23 If you cannot afford an Now, the government has offered here an information in this case. Have you seen that information, Mr. Cohen? 24 THE DEFENDANT: 25 THE COURT: Yes, your Honor. And have you read it? SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 4 I8LQCOHp 1 THE DEFENDANT: 2 THE COURT: 3 I have, sir. Have you discussed it with your attorney, Mr. Petrillo? 4 THE DEFENDANT: 5 THE COURT: I have, sir. Do you waive my reading the information 6 here in open court word for word? 7 THE DEFENDANT: 8 THE COURT: 9 Yes, your Honor. How do you plead to the charges in the information that are lodged against you? 10 THE DEFENDANT: 11 THE COURT: 12 Mr. Petrillo, I'm informed that the defendant has an 13 application. 14 Not guilty, sir. Very well. What is that application? MR. PETRILLO: Correct, your Honor. With the Court's 15 permission, Mr. Cohen would move to withdraw his plea of not 16 guilty and to enter a plea of guilty to the eight count 17 information that's been handed up to the Court, and there is a 18 plea agreement, which I believe the government has the original 19 copy of. 20 THE COURT: All right. The record should reflect that 21 a plea agreement is being handed up to me for my inspection. 22 And Mr. Petrillo, prior to commencement of this proceeding, did 23 you review with your client an advice of rights form? 24 MR. PETRILLO: 25 THE COURT: I did, your Honor. And did he sign it in your presence? SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 5 I8LQCOHp 1 MR. PETRILLO: 2 THE COURT: 3 MR. PETRILLO: 4 THE COURT: He did, your Honor. And did you sign it as his attorney? I did, your Honor. The record should reflect that an advice 5 of rights form has been marked as Court Exhibit 1 and is being 6 handed to me for inspection. 7 8 9 10 So, at this time, I am going to direct my deputy to administer the oath to Mr. Cohen. (Defendant sworn) THE COURT: Mr. Cohen, do you understand, sir, that 11 you are now under oath, and that if you answer any of my 12 questions falsely, your false or untrue answers may later be 13 used against you in another prosecution for perjury or making a 14 false statement? 15 THE DEFENDANT: 16 THE COURT: 17 Very well. For the record, what is your full name? 18 THE DEFENDANT: 19 THE COURT: 20 I do, your Honor. Michael Dean Cohen. And at this time, Mr. Cohen, you may be seated, and I'd ask that you pull the microphone close to you. 21 THE DEFENDANT: Thank you, your Honor. 22 Mr. Cohen, how old are you, sir? 23 THE DEFENDANT: 24 THE COURT: 25 THE DEFENDANT: In four days, I'll be 52. How far did you go in school? Law. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 6 I8LQCOHp 1 THE COURT: 2 understand English? Are you able to read, write, speak and 3 THE DEFENDANT: 4 THE COURT: 5 Yes, your Honor. Are you now or have you recently been under the care of a doctor or a psychiatrist? 6 THE DEFENDANT: 7 THE COURT: No, your Honor. Have you ever been treated or hospitalized 8 for any mental illness or any type of addiction, including drug 9 or alcohol addiction? 10 THE DEFENDANT: 11 THE COURT: No, sir. In the past 24 hours, Mr. Cohen, have you 12 taken any drugs, medicine or pills or have you consumed any 13 alcohol? 14 THE DEFENDANT: 15 THE COURT: 16 THE DEFENDANT: 17 What have you taken or consumed, sir? THE COURT: All right. Is it your custom to do that, sir? 20 THE DEFENDANT: 21 THE COURT: 22 Last night at dinner I had a glass of Glenlivet 12 on the rocks. 18 19 Yes, your Honor. No, your Honor. All right. Have you had anything since that time? 23 THE DEFENDANT: 24 THE COURT: 25 THE DEFENDANT: No, your Honor. Is your mind clear today? Yes, your Honor. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 7 I8LQCOHp 1 THE COURT: 2 THE DEFENDANT: 3 THE COURT: 4 THE DEFENDANT: 5 THE COURT: 6 THE DEFENDANT: 7 THE COURT: 8 9 10 Are you feeling all right today? Yes, sir. Are you represented by counsel here today? I am. Who are your attorneys? Guy Petrillo and Amy Lester. And, Mr. Petrillo, do you have any doubt as to your client's competence to plead at this time? MR. PETRILLO: THE COURT: I do not, your Honor. Now, Mr. Cohen, your attorney has informed 11 me that you wish to enter a plea of guilty. 12 enter a plea of guilty? 13 THE DEFENDANT: 14 THE COURT: Do you wish to Yes, sir. Have you had a full opportunity to discuss 15 your case with your attorney and to discuss the consequences of 16 entering a plea of guilty? 17 THE DEFENDANT: 18 THE COURT: Yes, your Honor. Are you satisfied with your attorneys, 19 Mr. Petrillo and Ms. Lester, in their representation of you in 20 this matter? 21 THE DEFENDANT: 22 THE COURT: Very much, sir. On the basis of Mr. Cohen's responses to 23 my questions and my observations of his demeanor here in my 24 courtroom this afternoon, I find that he is fully competent to 25 enter an informed plea at this time. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 8 I8LQCOHp 1 Now, before I accept any plea from you, Mr. Cohen, I'm 2 going to ask you certain questions. 3 to satisfy me that you wish to plead guilty because you are 4 guilty, and that you fully understand the consequences of your 5 plea. 6 My questions are intended I am going to describe to you certain rights that you 7 have under the Constitution and laws of the United States, 8 which rights you will be giving up if you enter a plea of 9 guilty. 10 Please listen carefully, sir. If you do not 11 understand something I am saying or describing, then stop me, 12 and either I or your attorneys will explain it to you more 13 fully. Do you understand this? 14 THE DEFENDANT: 15 THE COURT: I do, your Honor. Under the Constitution and laws of the 16 United States, you have a right to a speedy and public trial by 17 a jury on the charges against you which are contained in the 18 information. Do you understand that? 19 THE DEFENDANT: 20 THE COURT: I do, sir. And if there were a trial, you would be 21 presumed innocent, and the government would be required to 22 prove you guilty by competent evidence and beyond a reasonable 23 doubt. You would not have to prove that you were innocent at a 24 trial. Do you understand that? 25 THE DEFENDANT: I do, your Honor. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 9 I8LQCOHp 1 THE COURT: If there were a jury -- excuse me -- if 2 there were a trial, a jury composed of 12 people selected from 3 this district would have to agree unanimously that you were 4 guilty. Do you understand that? 5 THE DEFENDANT: 6 THE COURT: I do, your Honor. If there were a trial, you would have the 7 right to be represented by an attorney; and if you could not 8 afford one, an attorney would be provided to you free of cost. 9 Do you understand that? 10 THE DEFENDANT: 11 THE COURT: Yes, sir. If there were a trial, sir, you would have 12 the right to see and hear all of the witnesses against you, and 13 your attorney could cross-examine them. 14 right to have your attorney object to the government's evidence 15 and offer evidence on your behalf if you so desired, and you 16 would have the right to have subpoenas issued or other 17 compulsory process used to compel witnesses to testify in your 18 defense. You would have the Do you understand that? 19 THE DEFENDANT: 20 THE COURT: Yes, sir. If there were a trial, Mr. Cohen, you 21 would have the right to testify if you wanted to, but no one 22 could force you to testify if you did not want to. 23 inference or suggestion of guilt could be drawn if you chose 24 not to testify at a trial. 25 THE DEFENDANT: Do you understand that? Yes, your Honor. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 Further, no 10 I8LQCOHp 1 THE COURT: Do you understand, sir, that by entering a 2 plea of guilty today, you are giving up each and every one of 3 the rights that I've described, that you are waiving those 4 rights, and that you will have no trial? 5 THE DEFENDANT: 6 THE COURT: 7 Yes, sir. Do you understand that you can change your mind right now and refuse to enter a plea of guilty? 8 THE DEFENDANT: 9 THE COURT: Yes, sir. You do not have to enter this plea if you 10 do not want to for any reason whatsoever. 11 this fully, Mr. Cohen? 12 THE DEFENDANT: 13 THE COURT: 14 of the information? Yes, your Honor. Now, Mr. Cohen, have you received a copy 15 THE DEFENDANT: 16 THE COURT: 17 THE DEFENDANT: 18 THE COURT: 19 Yes, sir. And have you read it? I have, sir. Did your attorney discuss the information with you? 20 THE DEFENDANT: 21 THE COURT: Yes, your Honor. Do you waive my reading the information 22 word for word here in open court? 23 THE DEFENDANT: 24 THE COURT: 25 Do you understand Yes, your Honor. Do you understand that Counts One through Five of the information charges you with evasion of personal SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 11 I8LQCOHp 1 income tax for the calendar years 2012, 2013, 2014, 2015 and 2 2016 respectively in violation of Title 26 of the United States 3 Code, Section 7201. Do you understand that? 4 THE DEFENDANT: 5 THE COURT: Yes, your Honor. Do you understand, sir, that Count Six of 6 the information charges you with making false statements to a 7 financial institution in connection with a credit decision from 8 at least in or about February 2015 up to and including in or 9 about April 2016 in violation of Title 18 of the United States 10 Code, Section 1014. Do you understand that? 11 THE DEFENDANT: 12 THE COURT: Yes, your Honor. Do you understand, sir, that Count Seven 13 of the information charges you with willfully causing an 14 unlawful corporate contribution from at least in or about 15 June 2016 up to and including in or about October 2016 in 16 violation of Title 52 of the United States Code, Sections 17 30118(a) and 30109(d)(1)(A) and Title 18 of the United States 18 Code, Section 2(b). Do you understand that, sir? 19 THE DEFENDANT: 20 THE COURT: Yes, your Honor. Do you understand that Count Eight of the 21 information charges you with making an excessive campaign 22 contribution on or about October 27, 2016 in violation of Title 23 52 of the United States Code, Sections 30116(a)(1)(A), 24 30116(a)(7) and 30109(d)(1)(A) and Title 18 of the United 25 States Code, Section 2(b). Do you understand that? SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 12 I8LQCOHp 1 THE DEFENDANT: 2 THE COURT: Yes, your Honor. Now, do you understand, sir, that you have 3 a constitutional right to be charged by an indictment rather 4 than by an information? 5 THE DEFENDANT: 6 THE COURT: I do, sir. An indictment would be from a grand jury 7 and not like the information here, simply a charge by the 8 prosecutor. 9 right to be charged by an indictment, and that you have 10 Do you understand, sir, that you have waived the consented to being charged by an information of the government? 11 THE DEFENDANT: 12 THE COURT: 13 I understand, sir. And do you waive this right voluntarily and knowingly? 14 THE DEFENDANT: 15 THE COURT: I do, your Honor. Do you understand that if you did not 16 plead guilty, the government would be required to prove each 17 and every part or element of the charges in the information 18 beyond a reasonable doubt at trial? 19 THE DEFENDANT: 20 THE COURT: Yes, sir. Ms. Griswold, for the benefit of the Court 21 and the defendant, would you describe the essential elements of 22 the crimes charged in this information? 23 MS. GRISWOLD: 24 Beginning with Counts One through Five, the tax 25 Yes, your Honor. evasion counts, the elements are as follows: SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 13 I8LQCOHp 1 First, the existence of a substantial tax debt; 2 Second, willfulness of non-payment, meaning failure to 3 4 report was voluntary and intentional; And, third, an affirmative act by the defendant 5 performed with intent to evade or defeat the calculation or 6 payment of the tax. 7 8 9 10 11 12 13 14 15 With respect to Count Six, the false statements to a bank, there are four elements: First, that the defendant made a false statement to a lending institution; Second, that the lending institution had its deposits federally insured; Third, that the defendant knew that the statements he made were false; Fourth, that the defendant made these statements for 16 the purpose of influencing in any way the action of that 17 lending institution such as to influence a loan application. 18 19 20 21 22 With respect to Count Seven, causing an unlawful corporate contribution, there are five elements: First, a corporation made a contribution or expenditure in excess of $25,000; Second, that the contribution or expenditure was made 23 directly to or in coordination with a candidate or campaign for 24 federal office; 25 Third, that the contribution or expenditure was made SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 14 I8LQCOHp 1 2 for the purpose of influencing an election; Fourth, that the defendant caused the corporation to 3 make the contribution or expenditure by taking some action 4 without which the crime would not have occurred; 5 6 7 8 And, finally, that the defendant acted knowingly and willfully. With respect to Count Eight, making an excessive campaign contribution, there are four elements: 9 First, an individual made a contribution or 10 expenditure in excess of $25,000 to a candidate or campaign; 11 Second, that the contribution was made directly or the 12 expenditure was made in cooperation, consultation or concert 13 with, or at the request or suggestion of a candidate or 14 campaign; 15 16 Third, it was made for the purpose of influencing election; 17 And, fourth, it was done knowingly and willfully. 18 The government would also need to prove that venue was 19 proper in the Southern District of New York for all counts. 20 THE COURT: Thank you, Ms. Griswold. 21 Mr. Cohen, have you listened carefully to Assistant 22 United States Griswold as she has described the essential 23 elements of each of the crimes charged against you? 24 THE DEFENDANT: 25 THE COURT: I have, your Honor. And do you understand that if you did not SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 15 I8LQCOHp 1 plead guilty, the government would be required to prove each 2 and every part of those elements by competent evidence beyond a 3 reasonable doubt at trial in order to convict you? 4 THE DEFENDANT: 5 THE COURT: Yes, sir. Now, do you understand, sir, that the 6 maximum possible penalty for the charges in Counts One through 7 Five of evasion of personal income tax is a maximum term of 8 five years of imprisonment, followed by a maximum term of three 9 years of supervised release, together with a maximum fine of 10 $100,000 or twice the gross pecuniary gain derived from the 11 offense or twice the gross pecuniary loss to persons other than 12 yourself resulting from the offense, and a $100 mandatory 13 special assessment. Do you understand that? 14 THE DEFENDANT: 15 THE COURT: Yes, sir. Mr. Cohen, supervised release means that 16 you will be subject to monitoring when you're released from 17 prison, the monitoring to be under terms and conditions which 18 could lead to reimprisonment without a jury trial for all or 19 part of the term of supervised release without credit for time 20 previously served on post release supervision if you violate 21 the terms and conditions of supervised release. 22 understand that? 23 THE DEFENDANT: 24 THE COURT: 25 Do you I do, sir. Do you understand, sir, that the maximum possible penalty for the crime charged in Count Six of making SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 16 I8LQCOHp 1 false statements to a financial institution is a maximum term 2 of 30 years of imprisonment, followed by a maximum term of five 3 years of supervised release, together with a maximum fine of 4 $1 million, and a $100 mandatory special assessment. 5 understand that? 6 THE DEFENDANT: 7 THE COURT: Do you Yes, sir. Do you understand, sir, that the maximum 8 possible penalty for the crime charged in Count Seven of 9 causing an unlawful corporate contribution carries a maximum 10 term of five years of imprisonment, together with a maximum 11 term of three years of supervised release, a maximum fine of 12 $250,000 or twice the gross pecuniary gain derived from the 13 offense or twice the gross pecuniary loss to persons other than 14 yourself resulting from the offense, and a $100 mandatory 15 special assessment. Do you understand that? 16 THE DEFENDANT: 17 THE COURT: Yes, sir. And do you understand that the maximum 18 possible penalty with respect to Count Eight charging you with 19 making an excessive campaign contribution is a maximum term of 20 five years of imprisonment, followed by a maximum term of three 21 years of supervised release, together with a maximum fine of 22 $250,000 or twice the gross pecuniary gain derived from the 23 offense or twice the gross pecuniary loss to persons other than 24 yourself resulting from the offense, and a $100 mandatory 25 special assessment. Do you understand that? SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 17 I8LQCOHp 1 THE DEFENDANT: 2 THE COURT: Yes, sir. Do you also understand that as part of 3 your sentence, that restitution will be required to any person 4 injured as a result of your criminal conduct? 5 THE DEFENDANT: 6 THE COURT: Yes, your Honor. Do you also understand, sir, that under 7 the terms of your plea agreement, you are agreeing to forfeit 8 any property or benefit that you received in connection with 9 the bank fraud charged in Count Six of the information? 10 11 12 13 MR. PETRILLO: Just for the record, your Honor, it's a false statement to a bank rather than a bank fraud. THE COURT: Thank you. Do you understand, sir, that you are forfeiting any property derived as a result of that crime? 14 THE DEFENDANT: 15 THE COURT: Yes, sir. Now, you understand that you are pleading 16 guilty to different counts in the information. 17 understand, sir, that you will be separately sentenced on each 18 of those counts? 19 THE DEFENDANT: 20 THE COURT: Do you I do. And do you further understand that I may 21 order you to serve the sentences either concurrently or 22 consecutively, meaning either together or one after the other? 23 THE DEFENDANT: 24 THE COURT: 25 Yes, your Honor. Do you understand, sir, that if I decide to run the sentences consecutively, that your sentence could be SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 18 I8LQCOHp 1 a maximum total of 65 years of imprisonment? 2 THE DEFENDANT: 3 THE COURT: Yes, sir. Now, do you understand that if I accept 4 your guilty plea and adjudge you guilty, that adjudication may 5 deprive you of valuable civil rights, such as the right to 6 vote, the right to hold public office, the right to serve on a 7 jury or the right to possess any kind of firearm? 8 THE DEFENDANT: 9 THE COURT: 10 Yes, sir. Now, have you discussed with your attorney the Sentencing Guidelines? 11 THE DEFENDANT: 12 THE COURT: Yes, your Honor. And you understand, sir, that the 13 Sentencing Guidelines are advisory. 14 the Court will not be able to determine your sentence until 15 after a presentence report is completed by the probation 16 office, and you and the government have had a chance to 17 challenge any of the facts reported by the probation office? 18 THE DEFENDANT: 19 THE COURT: And do you understand that Yes, sir. And do you understand that if you are 20 sentenced to prison, parole has been abolished, and you will 21 not be released any earlier on parole? 22 THE DEFENDANT: 23 THE COURT: Yes, your Honor. Do you understand that if your attorney or 24 anyone else has attempted to estimate or predict what your 25 sentence will be, that their estimate or prediction could be SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 19 I8LQCOHp 1 wrong? 2 3 4 THE DEFENDANT: No estimate was given to me, your Honor. THE COURT: No one, Mr. Cohen, not even your attorney 5 or the government can, nor should, give you any assurance of 6 what your sentence will be. 7 until after the probation office report is completed, and I've 8 ruled on any challenges to the report and determined what 9 sentence I believe is appropriate giving due regard to all the 10 factors in Section 3553(a). 11 THE DEFENDANT: 12 THE COURT: Your sentence cannot be determined Do you understand that, sir? I do, your Honor. Do you also fully understand that even if 13 your sentence is different from what your attorney or anyone 14 else told you it might be or if it is different from what you 15 expect, that you will still be bound to your guilty plea, and 16 you will not be allowed to withdraw your plea of guilty? 17 THE DEFENDANT: 18 THE COURT: 19 agreement. Now, I have been given this plea Have you signed it? 20 THE DEFENDANT: 21 THE COURT: 22 I have, sir. And did you read this agreement prior to signing it? 23 THE DEFENDANT: 24 THE COURT: 25 I do, your Honor. I did, your Honor. Did you discuss it with your attorneys before you signed it? SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 20 I8LQCOHp 1 THE DEFENDANT: I did that as well, sir. 2 THE COURT: 3 the time that you signed it? Did you fully understand this agreement at 4 THE DEFENDANT: 5 THE COURT: Yes, your Honor. Does this agreement constitute your 6 complete and total understanding of the entire agreement among 7 the government, your attorneys and you? 8 THE DEFENDANT: Yes, sir. 9 THE COURT: 10 contained in this agreement? Is everything about your plea and sentence 11 THE DEFENDANT: 12 THE COURT: 13 THE DEFENDANT: 14 THE COURT: Yes, sir. Has anything been left out? Not that I'm aware of, sir. Has anyone offered you any inducements or 15 threatened you or forced you to plead guilty or to enter into 16 the plea agreement? 17 THE DEFENDANT: 18 THE COURT: No, your Honor. Do you understand that under the terms of 19 this plea agreement that you are giving up or waiving your 20 right to appeal or otherwise challenge your sentence if this 21 Court sentences you within or below the stipulated Sentencing 22 Guideline range of 46 to 63 months of imprisonment. 23 understand that? 24 THE DEFENDANT: 25 THE COURT: Do you Yes, sir. Do you understand, sir, that I'm SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 21 I8LQCOHp 1 completely free to disregard any position or recommendation by 2 your attorney or by the government as to what your sentence 3 should be, and that I have the ability to impose whatever 4 sentence I believe is appropriate under the circumstances, and 5 you will have no right to withdraw your plea? 6 THE DEFENDANT: 7 THE COURT: I am, sir. Mr. Petrillo, do you know of any valid 8 defense that would prevail at trial or do you know of any 9 reason why your client should not be permitted to plead guilty? 10 MR. PETRILLO: 11 THE COURT: 12 Mr. Petrillo, is there an adequate factual basis to support this plea of guilty? 13 MR. PETRILLO: 14 THE COURT: 15 I do not, your Honor. There is, your Honor. Ms. Griswold, is there an adequate factual basis to support this plea of guilty? 16 MS. GRISWOLD: 17 THE COURT: There is, your Honor. Mr. Cohen, would you please tell me what 18 you did in connection with each of the crimes to which you are 19 entering a plea of guilty. 20 THE DEFENDANT: 21 THE COURT: 22 THE DEFENDANT: 23 Your Honor, I also just jotted down some notes so that 24 25 Yes, your Honor. May I stand? You may. Thank you, sir. I can keep my focus and address this Court in proper fashion. As to Counts One through Five, in the tax years of SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 22 I8LQCOHp 1 2012 to 2016, I evaded paying substantial taxes on certain 2 income received that I knew was not reflected on the return and 3 that I caused to be filed. 4 included was received by me in the Southern District of New 5 York. 6 The income intentionally not As to Count Six, on or about February of 2016, in 7 order to be approved for a HELOC, a home equity line of credit, 8 I reviewed an application form that did not accurately describe 9 the full extent of my liabilities. 10 inaccurate information on the form. 11 it would be submitted to the bank as part of their HELOC 12 application process. 13 located in Manhattan. As to Count Seven -- 15 THE COURT: Did you know that those statements were false when you made them? 17 THE DEFENDANT: 18 opposed to being false. 19 20 I signed it knowing that The bank was federally insured and is 14 16 I did not correct the THE COURT: They were omitted, your Honor, as Well, you knew it was false; that it falsely depicted your financial condition, didn't you? 21 THE DEFENDANT: 22 THE COURT: Yes, your Honor. And you omitted those statements, did you 23 not, for the purpose of influencing action by a financial 24 institution? 25 THE DEFENDANT: Yes, your Honor. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 23 I8LQCOHp 1 THE COURT: All right. You may proceed. 2 THE DEFENDANT: 3 As to Count No. Seven, on or about the summer of 2016, Thank you, sir. 4 in coordination with, and at the direction of, a candidate for 5 federal office, I and the CEO of a media company at the request 6 of the candidate worked together to keep an individual with 7 information that would be harmful to the candidate and to the 8 campaign from publicly disclosing this information. 9 number of discussions, we eventually accomplished the goal by 10 the media company entering into a contract with the individual 11 under which she received compensation of $150,000. 12 participated in this conduct, which on my part took place in 13 Manhattan, for the principal purpose of influencing the 14 election. 15 After a I Your Honor, as to Count No. Eight, on or about October 16 of 2016, in coordination with, and at the direction of, the 17 same candidate, I arranged to make a payment to a second 18 individual with information that would be harmful to the 19 candidate and to the campaign to keep the individual from 20 disclosing the information. 21 company that was under my control to make a payment in the sum 22 of $130,000. 23 later repaid to me by the candidate. 24 conduct, which on my part took place in Manhattan, for the 25 principal purpose of influencing the election. To accomplish this, I used a The monies I advanced through my company were I participated in this SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 24 I8LQCOHp 1 THE COURT: Mr. Cohen, when you took all of these acts 2 that you've described, did you know that what you were doing 3 was wrong and illegal? 4 THE DEFENDANT: 5 THE COURT: 6 Yes, your Honor. All right. You may be seated for the moment. 7 THE DEFENDANT: 8 THE COURT: Thank you, sir. Would the government please summarize its 9 evidence against the defendant. 10 MS. GRISWOLD: 11 I will go first with the evidence as to the tax 12 13 Yes, your Honor. evasion charged in Counts One through Five. As the defendant allocuted, we would prove at trial 14 that between the tax years 2012 and 2016, Mr. Cohen knowingly 15 and willfully failed to report more than $4 million on his 16 personal income tax returns for the purpose of evading taxes. 17 We would prove this through the following categories of 18 evidence: 19 Mr. Cohen's personal income tax returns for 2012 20 through 2016 on which he declared under the penalty of perjury 21 that the amount of income he disclosed was accurate, testimony 22 from IRS agents and employees, testimony and documentary 23 evidence, including emails and text messages from individuals 24 who paid income to Mr. Cohen, and testimony of individuals 25 involved in the preparation of Mr. Cohen's taxes, and email SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 25 I8LQCOHp 1 2 communications between those individuals and Mr. Cohen. With respect to our evidence on Count Six, as the 3 defendant allocuted, we would prove at trial that in connection 4 with an application for a home equity line of credit, the 5 defendant made false statements to a bank about his true 6 financial condition, including about debts for which he was 7 personally liable and about his cash flow. 8 9 We would prove this through the following categories of evidence: 10 Bank records, including the home equity line of credit 11 application that Mr. Cohen signed and submitted to the bank, as 12 well as other financial information that Mr. Cohen provided to 13 the bank about his liabilities or lack thereof, testimony from 14 certain bank employees, and email communications between 15 Mr. Cohen and the bank. 16 With respect to Counts Seven and Eight, as the 17 defendant allocuted, and as detailed in the information filed 18 today, the government would prove that the defendant caused an 19 illegal corporate contribution of $150,000 to be made in 20 coordination with a candidate or campaign for federal office, 21 and also that Mr. Cohen made an excessive contribution of 22 $130,000 in coordination with the campaign or candidate for 23 purposes of influencing the election. 24 25 The proof on these counts at trial would establish that these payments were made in order to ensure that each SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 26 I8LQCOHp 1 recipient of the payments did not publicize their stories of 2 alleged affairs with the candidate. 3 include: 4 This evidence would Records obtained from an April 9, 2018 series of 5 search warrants on Mr. Cohen's premises, including hard copy 6 documents, seized electronic devices, and audio recordings made 7 by Mr. Cohen. 8 9 We would also offer text messages, messages sent over encrypted applications, phone records, and emails. 10 We would also submit various records produced to us 11 via subpoena, including records from the corporation referenced 12 in the information as Corporation One and records from the 13 media company also referenced in the information. 14 Finally, we would offer testimony of witnesses, 15 including witnesses involved in the transactions in question 16 who communicated with the defendant. 17 THE COURT: Thank you, Ms. Griswold. 18 Mr. Cohen, if you would stand at this time. 19 Mr. Cohen, how do you now plead to the charge in Count 20 One of evasion of personal income tax for the calendar year 21 2012? Guilty or not guilty. 22 THE DEFENDANT: 23 THE COURT: Guilty, your Honor. And how do you plead to the charge in 24 Count Two of the information of evasion of personal income tax 25 for the year 2013? Guilty or not guilty. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 27 I8LQCOHp 1 THE DEFENDANT: 2 THE COURT: Guilty, your Honor. How do you plead to the charge in Count 3 Three of evasion of personal income tax for the year 2014? 4 Guilty or not guilty. 5 THE DEFENDANT: 6 THE COURT: Guilty, your Honor. How do you plead to the charge in Count 7 Four of evasion of personal income tax for the calendar year 8 2015? 9 Guilty or not guilty. THE DEFENDANT: 10 THE COURT: Guilty, your Honor. How do you plead to the charge in Count 11 Five of evasion of personal income tax for the calendar year 12 2016? Guilty or not guilty. 13 THE DEFENDANT: 14 THE COURT: Guilty, your Honor. How do you plead to the charge in Count 15 Six of the information of making false statements to a 16 financial institution in connection with a credit decision? 17 Guilty or not guilty. 18 THE DEFENDANT: 19 THE COURT: Guilty, your Honor. How do you plead to the charge in Count 20 Seven of the information of willfully causing an unlawful 21 corporate contribution? 22 THE DEFENDANT: 23 THE COURT: Guilty or not guilty. Guilty, your Honor. And, finally, how do you plead to the 24 charge in Count Eight of the information of making an excessive 25 campaign contribution? Guilty or not guilty. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 28 I8LQCOHp 1 THE DEFENDANT: 2 THE COURT: 3 Mr. Cohen, are you pleading guilty to each of these counts because you are guilty? 4 THE DEFENDANT: 5 THE COURT: 6 your own free will? THE DEFENDANT: 8 THE COURT: Yes, sir. Mr. Petrillo, do you wish me to make any further inquiries of your client? 10 MR. PETRILLO: 11 THE COURT: 12 Yes, your Honor. Are you pleading guilty voluntarily and of 7 9 Guilty, your Honor. No, your Honor. Thank you. Ms. Griswold, does the government wish me to make any further inquiries of the defendant? 13 MS. GRISWOLD: 14 THE COURT: No, your Honor. All right. Mr. Cohen, because you 15 acknowledge that you are guilty as charged in the information, 16 and because I find you know your rights and are waiving them 17 knowingly and voluntarily, and because I find your plea is 18 entered knowingly and voluntarily and is supported by an 19 independent basis in fact containing each of the essential 20 elements of the crimes, I accept your guilty plea and adjudge 21 you guilty of the eight offenses to which you have just pleaded 22 as charged in the information. 23 You may be seated. 24 THE DEFENDANT: 25 THE COURT: Thank you, sir. Now, the U.S. Probation Office will next SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 29 I8LQCOHp 1 prepare a presentence report to assist me in sentencing you. 2 You will be interviewed by the probation office. 3 important that the information you give the probation officer 4 be truthful and accurate because the report is important in my 5 decision as to what your sentence will be. 6 It is You and your attorneys have a right and will have an 7 opportunity to examine the report, challenge or comment upon 8 it, and to speak on your behalf before sentencing. 9 10 I am going to set this matter down for sentencing on December 12 at 11:00 a.m. 11 Now, what is the bail status of the defendant? 12 MS. GRISWOLD: 13 14 15 Bail needs to be set, your Honor, and we have a proposed joint package for your consideration. THE COURT: All right. That package was presented, but why don't you put it forth on the record. 16 MS. GRISWOLD: Certainly, your Honor. 17 A 500,000 personal recognizance bond cosigned by two 18 financially responsible individuals -- I'm sorry, your Honor -- 19 cosigned by the defendant's wife and a second person who will 20 be interviewed by the U.S. Attorney's Office and qualified as a 21 financially responsible person; 22 The defendant is to be released today on his own 23 signature with the other two signatures within one week, which 24 would be August 28; 25 The defendant is to surrender any and all firearms and SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 30 I8LQCOHp 1 2 ammunition within 24 hours to law enforcement; Travel restricted to the Southern and Eastern 3 Districts of New York, the Northern District of Illinois, the 4 Southern District of Florida, and Washington D.C., surrender of 5 the defendant's passport to his counsel and no new applications 6 for travel documents. 7 8 9 THE COURT: All right. Is that the proposed package, Mr. Petrillo? MR. PETRILLO: May I have a moment, your Honor? 10 THE COURT: Yes. 11 (Counsel confer) 12 MR. PETRILLO: 13 THE COURT: Nothing else, your Honor. Thank you. I will note in the submission that was 14 sent to me shortly before the proceeding, there was a provision 15 for pretrial to approve travel without Court approval to other 16 locations. 17 requests for travel are to be submitted to me for my approval 18 before the defendant is to travel anywhere other than the 19 places provided for on the record here. I am not going to authorize that. 20 MR. PETRILLO: 21 THE COURT: 22 23 Any additional Understood, your Honor. All right. So I've set the date for sentencing. I'm going to direct the government to promptly prepare 24 a prosecution case summary for submission to the probation 25 department. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 31 I8LQCOHp 1 And, Mr. Petrillo, I'm going to direct you to arrange 2 promptly for an interview with the probation department so that 3 the preparation of the presentence report can proceed. 4 5 Now, Mr. Cohen, have you listened closely to these conditions that have been fixed for your release? 6 THE DEFENDANT: 7 THE COURT: I have, your Honor. All right. And do you understand, sir, 8 that those conditions are going to apply now until the time 9 that you are sentenced, and that any violation of those 10 conditions could be severe? 11 THE DEFENDANT: 12 THE COURT: Yes, sir. And do you understand that if you fail to 13 appear for sentencing on the day and time set, that that could 14 subject you to prosecution for another crime separate and apart 15 from the crimes that are charged here? 16 THE DEFENDANT: 17 THE COURT: 18 Very well. Then I fully expect to see you on December 12. 19 THE DEFENDANT: 20 THE COURT: 21 MS. GRISWOLD: 22 THE COURT: 23 MR. PETRILLO: 24 THE COURT: 25 I'm aware, your Honor. Of course, sir. Anything further from the government? No, your Honor. Thank you. Anything further from the defense? No, your Honor. Very well. Have a good afternoon. Thank you. This matter is concluded. (Adjourned) SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300