NEW YORK: Mired in financial woes, Michael Cohen is sticking his hand out and asking the public for help paying for his legal defense, and one anonymous donor already has ponied up $50,000.
Through his lawyer, Donald Trump’s former “fixer” says collecting contributions through a GoFundMe page set up after his guilty plea this week is the only way to ensure the truth comes out about the president.
It’s also the latest sign that Cohen is broke.
Trump’s former personal lawyer owes at least $1.4 million to the IRS after pleading guilty Tuesday to tax evasion, campaign finance violations and bank fraud, and has racked up millions of dollars in debt. Because of his plea, he’s being forced to give up his New York City taxi medallions, which have shrunk in value as Uber and Lyft shake up the industry.
“He’s without resources and owes a lot of money,” Cohen’s lawyer, Lanny Davis, said in a battery of television interviews on Wednesday.
Cohen, who once said he would “take a bullet” for Trump, commented in court on Tuesday that Trump directed him to arrange payments of $130,000 to porn star Stormy Daniels and $150,000 to former Playboy model Karen McDougal to buy their silence about alleged affairs before the election.
While Trump denies the affairs, his account of his knowledge of the payments has shifted. In April, Trump denied he knew anything about the Daniels payment. He told Fox News in an interview aired Thursday that he knew about payments “later on.”
By Thursday afternoon, the GoFundMe page dubbed the “Michael Cohen Truth Fund” had raised more than $145,000 from about 2,600 donations. Most reaction on social media was incredulous and unsympathetic, but one $5 donor was encouraging, writing: “The USA would love you for your honesty.”
Confusion over the web address for the fundraising page, michaelcohentruthfund.com , led someone on Wednesday to anonymously register a shorter version, michaelcohentruth.com , that redirects to Trump’s re-election campaign website.
Cohen’s crowdfunding campaign, which has a goal of raising $500,000, could be a way for Cohen to bolster his whistleblower status by appealing to Democrats and others who want to see Trump taken down.
It’s not the first time someone who felt wronged by Trump has asked the public to pony up. Fired former FBI deputy director Andrew McCabe raked in more than $500,000 in just five days of his legal defense campaign, and Daniels funded her lawsuit against the president with about $500,000 raised from nearly 17,000 donors.
Cohen could ultimately need much more to wipe his books clean.
Court papers filed in connection with Cohen’s guilty plea detailed his precarious financial state, as well as his side gigs as a taxicab magnate, high-interest lender and broker of real estate and handbag deals.
In one arrangement, according to the papers, Cohen used a line of credit he obtained at 5 percent interest to float a $6 million loan to a Chicago taxi operator at 12 percent interest.
Later, when applying for the $500,000 home equity credit line used to finance the Daniels payment, the papers say Cohen failed to disclose $14 million in medallion-related debt. Cohen and his wife claimed on the loan paperwork that they had a positive net worth of more than $40 million.
In April, transaction records show, Cohen put up his multimillion-dollar Trump Park Avenue home — valued at $9 million — as collateral on some of his taxi-related loans.
The value of medallions, the physical plates affixed to cabs that owners are required to display, have dropped precipitously in recent years from highs of over $1 million apiece in New York just a few years ago to nearly a quarter of that amount today.
Cohen has been involved in the gritty New York City yellow cab industry since the 1990s. He’s owned about 30 medallions with his wife and father-in-law, as well as a fleet of 22 cabs in Chicago, records show. Some of them are held through companies with names such as Love Bug Cab Corp. and Tailgater Cab Corp.
In addition to his Trump and taxi work, the court papers say Cohen made $100,000 in 2014 for brokering the sale of a piece of property in a Florida aviation community and $30,000 in 2015 for brokering the sale of a Birkin bag, a highly coveted French handbag.
Davis, who is listed as the creator of Cohen’s fundraising page, told The Associated Press last month that Cohen was footing the bill for his defense after pivoting from loyalty to Trump to looking out for himself, but was “thinking of trying to get some help.”
A description on the GoFundMe page describes it as a “transparent trust account, with all donations going to help Michael Cohen and his family” as he goes forward with telling the truth about Trump.
Loyola Law School professor Jessica Levinson said crowdfunding campaigns raise ethical concerns because they allow people to contribute to a political cause similarly to a campaign contribution, but without the same transparency and regulation.
“Who does the lawyer and client feel grateful to?” Levinson said. “Right now, there is no clear way of finding out.”
GoFundMe no longer allows fundraisers to download a list of donor’s information such as email addresses, citing new data protection regulations. Fundraisers can communicate with donors through the GoFundMe site. And although there is an option to make donations appear anonymously on the public-facing part of the website, it appears that the fundraiser can still view the name of these donors.
GoFundMe did not immediately reply to a request for comment.
The money also could add to Cohen’s already sizeable tax bill.
Robert Rizzi, a lawyer specializing in tax and government ethics, said the law is unclear whether Cohen would have to pay taxes on the fundraising proceeds. Taxes would apply if the money counts as income, but not if it’s a gift — but gifts must be given “out of detached and disinterested generosity,” Rizzi said.
“There would be an irony in being taxed on money he raised to defend himself for tax evasion,” Rizzi said.
Pawn to pauper: Broke Trump foe Cohen crowdfunds legal bills
Pawn to pauper: Broke Trump foe Cohen crowdfunds legal bills
- Trump’s former personal lawyer owes at least $1.4 million to the IRS after pleading guilty Tuesday to tax evasion, campaign finance violations and bank fraud, and has racked up millions of dollars in debt
- ohen has commented in court that Trump directed him to arrange payments to two women to buy their silence about alleged affairs before the 2016 US election
8 in 10 British Muslims face ‘financial faith penalty’ when seeking home finance, survey finds
- Restricted choices plague potential buyers
LONDON: Eight in 10 British Muslims say their home finance choices are restricted because of their faith, according to a new national survey that highlighted what researchers describe as a growing “financial faith penalty” in the UK housing market.
The report, published by Islamic home finance fintech firm Offa, found that 80 percent of Muslim respondents believe their religious beliefs limit their access to suitable home finance, while those who do use Islamic products often face slower decisions, heavier paperwork and poorer customer experiences than in the conventional mortgage market.
Based on surveys of 1,000 British Muslims conducted by Muslim Census, and 2,000 non-Muslims carried out by OnePoll, the research calls on providers, brokers and policymakers to modernize Islamic home finance and improve access to Sharia-compliant products.
Among the 24.3 percent of British Muslims who have used Islamic home finance, just 5 percent said they had received a same-day decision.
Some 62 percent waited up to two weeks, while 33 percent waited more than 15 days, including 16 percent who waited over a month.
Long decision times were cited as the biggest challenge by 28 percent of respondents, followed by excessive paperwork (22.6 percent) and poor customer service (18.9 percent).
Islamic home finance differs from conventional mortgages by avoiding interest and steering investment away from sectors considered harmful to society, including gambling, alcohol, tobacco, arms trading and animal testing.
Sagheer Malik, chief commercial officer and managing director of home finance at Offa, said the findings showed British Muslims were being underserved by outdated systems.
Malik said: “Property is the asset class of choice for many of the UK’s 3.87 million Muslims, both as a route to generational wealth and as a long-term financial foundation, yet our insightful research report reveals that British Muslims are being underserved and deterred by slow, outdated and opaque Islamic home finance provision.
“This is not a niche concern. It goes to the heart of financial fairness and inclusion in modern Britain.”
He added that Muslims deserved Sharia-compliant products that matched mainstream standards on “price, speed and simplicity.”
Despite strong demand, uptake remains low.
Only 12.8 percent of British Muslims surveyed said they currently use Islamic home finance, with a further 11.5 percent having done so in the past. More than three quarters (75.7 percent) have never used it.
Faith plays a central role in financial decisions, with 94.2 percent saying it is important that their financial products align with their ethical or religious beliefs. Yet more than half of those using conventional mortgages said they felt unhappy or uneasy about doing so because of their faith.
The study also found that British Muslims share similar home ownership aspirations to the wider population, with 79.1 percent citing the desire to provide a stable home for their family, while 18.6 percent said building generational wealth was their main motivation. Only 2.2 percent said they did not want to own a home.
The report suggests Islamic finance could appeal beyond Muslim communities. While 64 percent of non-Muslim respondents had never heard of Islamic home finance, 63 percent said they favored its ethical principles once explained.
Younger generations were the most receptive, with 43 percent of Generation Z and 37 percent of millennials saying they would consider using Islamic home finance, compared with just 7 percent of baby boomers. More than three quarters of Gen Z and 72 percent of millennials also said it was important that their finance provider avoided investing in ethically harmful sectors.
Offa said the findings pointed to an opportunity to expand ethical finance in the UK, provided the industry can deliver faster, simpler and more transparent services.
