On January 12, 2018, The Wall Street Journal reported that in October 2016, just before the 2016 United States presidential election, Michael Cohen, lawyer for then-presidential candidate Donald Trump, arranged a payment of $130,000 to inappropriate contentographic film actress Stormy Daniels to stop her disclosing an affair she and Trump allegedly had in 2006. Daniels had signed a non-disclosure agreement (NDA). At first, Cohen denied Trump had the alleged affair and sought to suppress the allegation based on the NDA, but a month later publicly acknowledged making the payment.
Besides the allegations of the affair itself, the acknowledged payment raised legal and ethical questions as to whether the payment violated federal campaign finance laws, either because the payment was not duly disclosed as a campaign contribution or because campaign funds may have been used towards the payment. On February 13, Cohen said he paid the money out of his own pocket, not as a campaign contribution; and that neither The Trump Organization nor the Trump campaign reimbursed him for making it. On April 5, Trump said he had no knowledge of Cohen's payment; but on April 26 admitted for the first time that Cohen represented him in "the Stormy Daniels deal". On May 2, Trump's new lawyer Rudy Giuliani said that Trump had reimbursed Cohen for the payment.
In August 2018, Cohen pleaded guilty to eight criminal charges, including a campaign finance violation for Daniels's payment. He stated under oath that he paid her "in coordination with and at the direction of a candidate for federal office". Cohen was sentenced to three years in federal prison on various charges, and was disbarred.
