On his first day on the stand Friday, banker Gary Farro told jurors that he was assigned to work with Michael Cohen in 2015 after one of Farro’s colleagues left First Republic Bank, and that in October 2016 Cohen frantically attempted to open an account for a new business called Resolution Consultants LLC.
Prosecutors allege that Cohen intended to use that account to transfer $125,000 to National Enquirer parent AMI for the rights to Playboy playmate Karen McDougal’s story about an alleged affair with Trump, but the deal fell through after publisher David Pecker consulted with his attorneys.
“I am not going forward. It is a bad idea, and I want you to rip up the agreement,” Pecker recounted telling Cohen. “He was very, very, angry. Very upset. Screaming, basically, at me.”
Ultimately, Farro said the account for Resolution Consultants LLC was never funded or opened by Cohen; prosecutors allege the account was abandoned along with the deal to reimburse AMI for the McDougal story. Then, said Farro, Cohen sought him out in October 2016 to open a new account for a company called Essential Consultants LLC, which Farro said Cohen described as a real estate consulting company “to collect fees for investment consulting work [Cohen] does for real estate deals.”
According to prosecutors, the day after the account was created, Cohen used it to wire $130,000 to Stormy Daniels in exchange for her silence ahead of the 2016 election.