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    Inside the Payoff to Stormy Daniels That May Lead to Trump’s Indictment

    Manhattan prosecutors investigating a payout to Stormy Daniels may be poised to make Donald J. Trump the first former president ever to be criminally indicted.At the time, it all was more tawdry than momentous. A reality star invited a porn actress half his age to a hotel room after a round in a celebrity golf tournament. She arrived in a spangly gold dress and strappy heels. He promised to put her on television and then, she says, they slept together.Yet the chain of events flowing from the 2006 encounter that the adult film star, Stormy Daniels, has said she had with the television personality, Donald J. Trump, has led to the brink of a historic development: the first criminal indictment of a former American president.The Manhattan district attorney, Alvin L. Bragg, has signaled he is preparing to seek felony charges against Mr. Trump; Mr. Bragg is expected to accuse him of concealing a $130,000 hush-money payment that Michael D. Cohen, Mr. Trump’s lawyer and fixer, made to Ms. Daniels on the eve of the 2016 presidential election.A conviction would be likely to hinge on prosecutors’ proving that Mr. Trump reimbursed Mr. Cohen and falsified business records when he did so, possibly to hide an election law violation.It would not be a simple case. Prosecutors are expected to use a legal theory that has not been assessed in New York courts, raising the possibility that a judge could throw out or limit the charges. The episode has been examined by both the Federal Election Commission and federal prosecutors in New York; neither took action against Mr. Trump.Mr. Trump has denied having sex with Ms. Daniels and said he did nothing wrong. The former president, who is seeking the Republican nomination for the White House, has made it clear that he will cast the indictment as a political “witch hunt” and use it to rally his supporters. On Saturday, he predicted he would be arrested on Tuesday and called for protests.The prosecutors’ chief witness would be Mr. Cohen, who pleaded guilty to federal campaign finance violations in August 2018, admitting he helped arrange the Daniels payment — and another to a former Playboy model — to aid Mr. Trump’s presidential bid at the behest of Mr. Trump.Any indictment of Mr. Trump brought by the Manhattan district attorney, Alvin L. Bragg, would rely on a legal theory that has not been tested in New York courts, making its success far from assured.Benjamin Norman for The New York TimesAn indictment would mark another extraordinary episode in the Trump era: The former president — whose tenure closed with a riot at the Capitol, who tried to overturn a fair election and who is under investigation for failing to return classified material — may face his first criminal charge for paying off a porn star.A Lake Tahoe encounterMs. Daniels, born Stephanie Gregory and raised mostly in a ramshackle ranch house in Baton Rouge, La., was 27 in July 2006, when she met Mr. Trump, then 60, at the celebrity golf tournament in Nevada.As a child, she wrote in her 2018 memoir, “Full Disclosure,” she felt ashamed and motivated after overhearing a friend’s father refer to her as “white trash.” Attracted by the money she could make, Ms. Daniels started as an exotic dancer even before she finished high school, working at a local joint called Cinnamon’s. At 23, she began acting in pornographic movies and soon married the first of her four husbands: Bartholomew Clifford, who directed adult films under the name “Pat Myne.”When he met Ms. Daniels, Mr. Trump had largely transitioned from real estate mogul to reality star; he had traveled to the tournament without his third wife, Melania, who remained behind with their newborn son. Mr. Trump and Ms. Daniels crossed paths on the golf course and later in the gift room, where they were photographed together at a booth for her porn studio, Wicked Pictures. He invited her to dinner.As they chatted that night in Mr. Trump’s penthouse at Harrah’s Lake Tahoe — she has said he wore black silk pajamas and slippers — he told her that she should be on “The Apprentice,” an NBC reality show. She doubted he could make it happen. He assured her he could, she said.Afterward, he would phone her occasionally from a blocked number, calling her “Honeybunch.” They saw each other at least twice more in 2007, at a launch party for the short-lived Trump Vodka and at the Beverly Hills Hotel, where they watched “Shark Week.” But they did not sleep together again. And Mr. Trump never put her on “The Apprentice.” Still, he kept calling, she has said. Eventually, she stopped answering.Selling storiesStormy Daniels, an adult film star, was paid $130,000 by Mr. Trump’s fixer in exchange for her silence.Shannon Stapleton/ReutersSince 2000, Mr. Trump had staged long-shot presidential runs that more resembled publicity stunts than serious bids for office. He kicked off another in 2011, promoting conspiracy theories that then-President Barack Obama had been born outside the United States. As he did so, Ms. Daniels, still bitter, began working with an agent to see if she could sell the story of their liaison.They negotiated a $15,000 deal with Life & Style, a celebrity magazine, telling its reporter that Ms. Daniels believed Mr. Trump’s offer to make her a contestant had been a lie, according to a transcript later published online.“Just to impress you, to try to sleep with you?” the reporter asked. “Yeah,” Ms. Daniels responded. “And I guess it worked.”When the magazine contacted the Trump Organization for comment, Michael Cohen returned the call. A lawyer who had joined the company four years earlier, Mr. Cohen had become Mr. Trump’s fixer, diving headlong into resolving thorny problems for his boss and the Trump family. Mr. Cohen threatened to sue, the magazine killed the story, and Ms. Daniels did not get paid.Mr. Trump, for his part, dropped out of the race and continued hosting “The Apprentice.”That October, Ms. Daniels’s story about Mr. Trump surfaced briefly after her agent leaked it to a gossip blog called “The Dirty,” trying to gin up interest from a paying publication. A couple of media outlets followed up, but none offered payment. Ms. Daniels denied the story, and her agent had a lawyer in Beverly Hills, Calif., Keith Davidson, get the post taken down.As Mr. Obama prepared to leave office in 2015, Mr. Trump decided to run for president once more. That August, he sat in his office at Trump Tower with Mr. Cohen and David Pecker, the publisher of American Media Inc. and its flagship tabloid, The National Enquirer.Mr. Pecker, a longtime friend of Mr. Trump’s, had used The Enquirer to boost Mr. Trump’s past presidential runs. He promised to publish positive stories about Mr. Trump and negative ones about opponents, according to three people familiar with the meeting. Mr. Pecker also agreed to work with Mr. Cohen to find and suppress stories that might damage Mr. Trump’s new efforts, a practice known as “catch and kill.”The National Enquirer, a tabloid run by David Pecker, played a central role in efforts to “catch and kill” negative stories about Mr. Trump.Marion Curtis, via Associated PressIn spring 2016, Ms. Daniels attempted through her agent to sell her story again — this time for more than $200,000. But the publications she approached all passed, including The Enquirer.Around the same time, Karen McDougal, the former Playboy model, began exploring how to monetize her own tale of sleeping with Mr. Trump. Ms. McDougal, Playboy’s 1998 Playmate of the Year, has said she had an affair with Mr. Trump starting in 2006, when she was 35. They had spent time together in his Trump Tower apartment and at the same golf tournament where Ms. Daniels encountered him. But Ms. McDougal ended the relationship in 2007, she has said. Mr. Trump has denied the affair.In 2016, with her modeling career flagging, Ms. McDougal hired Mr. Davidson, the same lawyer who had helped Stormy Daniels remove the 2011 blog post.Karen McDougal, a former Playboy model, said she also had an affair with Mr. Trump and was paid by The National Enquirer for her story, which was never published.Bennett Raglin/Getty Images for BacardiThe lawyer approached The Enquirer’s editor, Dylan Howard, about buying Ms. McDougal’s story, and Mr. Howard and Mr. Pecker both briefed Mr. Cohen, three people with knowledge of the discussions have said. In late June, Mr. Trump personally appealed to Mr. Pecker for help in keeping Ms. McDougal quiet, according to an account Mr. Pecker gave federal prosecutors.But the tabloid did nothing until Ms. McDougal was about to give an interview to ABC News. In early August, American Media agreed to pay Ms. McDougal $150,000 for the exclusive rights to her story about Mr. Trump, camouflaging the real purpose of the deal by guaranteeing she would appear on two magazine covers, among other things, five people familiar with the events have said.American Media would later admit, in a deal to avoid federal prosecution, that the principal purpose of the agreement was to suppress Ms. McDougal’s story, which the company had no intention of publishing.Stormy Daniels, meanwhile, still had not found any takers for her story. Her luck changed in early October.‘It could look awfully bad’Mr. Trump’s fixer, Michael D. Cohen, right, went to prison in part for campaign finance violations related to hush-money payments. He has turned against the former president and could testify against him.Jefferson Siegel for The New York TimesThe news hit the presidential race like a bomb. On Oct. 7, 2016, The Washington Post published what would become known as the “Access Hollywood” tape, in which Mr. Trump, unwittingly on a live microphone, was recorded describing in lewd terms how he groped women.The people surrounding Stormy Daniels immediately realized that Mr. Trump’s new vulnerability made her more of a threat — and thus gave her story value.Mr. Davidson, the Los Angeles lawyer, was also friendly with Ms. Daniels’s agent, Gina Rodriguez, and with The Enquirer’s editor, Mr. Howard. On the day after the “Access Hollywood” tape emerged, Mr. Davidson and Mr. Howard texted about the damage it had done to Mr. Trump’s campaign. Then Mr. Howard asked Ms. Daniels’s agent to send another pitch for his boss, Mr. Pecker.The Enquirer executives alerted Mr. Cohen; Mr. Cohen asked Mr. Pecker for help containing it.Mr. Howard haggled with Ms. Daniels’s agent, but when he presented Mr. Pecker with an offer to buy the story for $120,000, the publisher refused.“Perhaps I call Michael and advise him and he can take it from there,” Mr. Howard wrote.Dylan Howard, the editor of The National Enquirer, connected Mr. Cohen to a lawyer for Ms. Daniels to discuss a payment for the story of her tryst with Mr. Trump.Ilya S. Savenok/Getty Images for American MediaThat night, Mr. Cohen spoke by phone to Mr. Trump, Mr. Pecker and Mr. Howard, according to records obtained by federal authorities. Mr. Howard connected him to the lawyer, Mr. Davidson, who would negotiate the deal for Ms. Daniels.Three days after the “Access Hollywood” tape’s release, Mr. Cohen agreed to pay $130,000 in a deal that threatened severe financial penalties for Ms. Daniels if she ever spoke about her affair with Mr. Trump. The contract used pseudonyms: Peggy Peterson, or “P.P.,” for Ms. Daniels, and David Dennison, or “D.D.,” for Mr. Trump. Their identities were revealed only in a side letter.Ms. Daniels signed her copy on the trunk of a car near a porn set in Calabasas, Calif. Mr. Cohen signed on Mr. Trump’s behalf.But Mr. Cohen delayed paying. He has said he was trying to figure out where to get the money while Mr. Trump campaigned. According to Mr. Cohen, Mr. Trump had approved the payment and delegated to him and the Trump Organization’s chief financial officer the task of arranging it. They considered options for funneling the money through the company, Mr. Cohen said, but did not settle on a solution.Ms. Daniels began to believe that Mr. Trump was trying to stall until after the Nov. 8 election; if he lost, her story would lose its value. In mid October, after Mr. Cohen had blown two deadlines, Ms. Daniels’s lawyer canceled the deal, and the porn actress again began shopping the story. The next week, Mr. Howard texted Mr. Cohen that if Ms. Daniels went public, their work to cover up the sexual encounter might also become known.“It could look awfully bad for everyone,” Mr. Howard wrote.Mr. Cohen agreed to make the payment himself. He spoke briefly by phone with Mr. Trump, twice. Then he transferred about $130,000 from his home equity line of credit into the account of a Delaware shell company and wired it to Ms. Daniels’s lawyer.Mr. Davidson circulated a new hush-money agreement. Ms. Daniels signed and notarized it at a UPS store near a Walmart Supercenter in Forney, Texas, near her home.“I hope we are good,” Mr. Cohen texted Mr. Davidson afterward.“I assure you we are very good,” the lawyer replied.Ms. Daniels remained silent. A week and a half later, Mr. Trump won the election.Once he was in the White House, Mr. Trump handled one more piece of business related to Stormy Daniels. He signed checks to reimburse Mr. Cohen for paying her off.Jonah E. Bromwich More

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    A Tabloid Ally of Trump and Weinstein Reboots Himself

    Dylan Howard, known for the “catch and kill” deals during the #MeToo reckoning, teams up with an Italian publisher for a publication aimed at the Hamptons crowd.In late May, the luxury brand Ferragamo threw a launch party to celebrate the Grazia Gazette: The Hamptons — the latest free publication in one of the country’s wealthiest enclaves.Most guests did not know that they were also celebrating a comeback.Grazia’s American operation, Grazia USA, is run by Dylan Howard, the disgraced National Enquirer editor who played a key role in suppressing stories about Donald Trump’s affairs during his presidential campaign, helped Harvey Weinstein dig up dirt on his accusers and, in Jeff Bezos’s telling, threatened the Amazon owner with blackmail.At the party for Mr. Howard’s new venture, young stars and social media influencers mingled while sipping a custom rosé. Some sang along to Olivia Rodrigo’s “Driver’s License.”They knew the lyrics, but not much about the man behind the event.“I have never heard of him,” said Isaac Hindin-Miller, the DJ, in a phone call afterward.“I was more there as a guest of Ferragamo,” said Jenné Lombardo, a marketing consultant who went with her husband, Harvey Newton-Haydon, a model.“I don’t know Howard or anything about him,” Julia Moshy, one of the “Rich Kids of Instagram,” wrote in an email.A Dylan Howard primer: During his time as the top editor of The Enquirer, a job he held for more than five years, Mr. Howard used his position to help suppress coverage of Mr. Trump’s reported extramarital affairs, including buying one woman’s story and then burying it in a journalistic maneuver known as “catch and kill.” The company later admitted that the payment amounted to an illegal campaign contribution, and Mr. Howard emerged unscathed after cooperating with federal prosecutors.Mr. Howard also dispatched a reporter to help collect hostile information on the actress Rose McGowan, who had made veiled references to misconduct by Mr. Weinstein. (Ms. McGowan later said the producer had raped her in a hotel room in 1997 — Mr. Weinstein has denied all allegations of nonconsensual sex.)Soon after leaving American Media last year, Mr. Howard started a new company, Pantheon Media Group. Pantheon later struck a licensing agreement with the Mondadori Group, the biggest publisher in Italy and the backer of the Grazia fashion magazine franchise, to publish Grazia in the United States. The Grazia Gazette: The Hamptons is among the first projects.Madelyn Cline on the cover of the first issue of Grazia Gazette: The Hamptons.Grazia GazetteThe model Ambra Battilana, who had been invited to the party, was aware of Mr. Howard’s background. She said she was relieved she had not attended.Ms. Battilana has accused Mr. Weinstein of sexually assaulting her during a meeting in his TriBeCa office. The next day she recorded Mr. Weinstein apologizing to her. The Enquirer unsuccessfully tried to buy Ms. Battilana’s story at the time. (Mr. Weinstein was found guilty of sex crimes against two women last year and sentenced to 23 years in prison.)Given all that, Mr. Howard’s involvement in the Surf Lodge party did not sit well with Ms. Battilana, who spends most summer weekends in the Hamptons and goes to the Surf Lodge frequently. (Mr. Howard also has a home in Springs, a hamlet in the Hamptons, which he bought for $1.1 million at the end of 2017, according to public records.)“I think this is completely horrendous,” she said. “I will be asking who is connected, because I really want to get to the bottom of understanding who was the person who would allow such a person to get in.”In a statement, a spokeswoman for Ferragamo said: “Salvatore Ferragamo has a longstanding relationship with Grazia titles globally and recently expanded that to partner on the launch issue of the Gazette with a dinner co-hosted by editor in chief David Thielebeule and cover star Madelyn Cline, not Dylan Howard.” (Ms. Cline is an actress and one of the stars of Netflix’s “Outer Banks.”Grazia Gazette: The Hamptons is just one part of Mr. Howard’s reinvention plan. He is trying to raise money to “buy the entire Grazia brand worldwide,” according to a copy of his financing proposal reviewed by The New York Times, with whom Mr. Howard did not wish to discuss his new business ventures. He initially agreed to clarify his future plans over lunch, only to cancel through a publicist, Howard Bragman, several days later.“Mr. Howard would of course like to grow his business, including his successful collaboration with Grazia,” Mr. Bragman said in an email. In a separate email, Mr. Howard’s lawyer, Mitchell Schuster, called The Times’s characterization of Mr. Howard’s fund-raising efforts “not correct as stated and misleading.”Maer Roshan, the editor of Los Angeles Magazine and the former editor of Radar, which Mr. Howard took over in 2009 and transformed into something more akin to the gossip site TMZ, was among those in the media who were incredulous at Mr. Howard’s attempted comeback.How “does this dude come back with this glossy magazine and roster of A-list advertisers?” he wondered.Since leaving American Media when his contract expired on March 31, 2020, Mr. Howard has acquired the website for OK Magazine, as well as Radar Online. Both were formerly owned by American Media.Mr. Howard has also continued a sideline he started in 2018 as an author of true-crime books for Skyhorse, which is distributed by Simon & Schuster. Working in collaboration with other authors, but with his name receiving top billing, he has come out with more than half a dozen books, including, “Epstein: Dead Men Tell No Tales,” “Covid-19: The Greatest Cover-Up in History” and “Diana: Case Solved.”In an email, Tony Lyons, Skyhorse’s president and publisher, called Mr. Howard a “dogged investigator and a talented storyteller.”There is also podcasting. This month, PodcastOne, the producer of “The Adam Carolla Show,” “The Dan Abrams Podcast” and more than 200 other audio series, announced that it had reached a deal with Mr. Howard’s Empire Media to create six limited series and eight weekly programs.One company that won’t do business with Mr. Howard is the dating app Bumble, which removed his profile earlier this year after a woman complained about his work for Mr. Weinstein, according to two people with knowledge of the matter (Mr. Schuster, the lawyer, said Mr. Howard chose to remove his profile for “unrelated reasons” and said he did not “work for” Mr. Weinstein).Mr. Howard grew up in Geelong, Australia, a city southwest of Melbourne, and started his career at a local paper. From there he became a sports reporter for Channel 7 in Melbourne before coming to the United States in 2009.After a stint as a producer at Reuters in New York, he joined American Media, which owned a number of celebrity gossip sites and publications, including the supermarket tabloid Star and RadarOnline. Under Mr. Howard, RadarOnline turned into a celebrity scoop machine, posting audio recordings of Mel Gibson’s vitriolic tirades and other Hollywood dirt.In 2011, he tied for entertainment Journalist of the Year at the annual Los Angeles Press Club awards. “In the world of celebrity and entertainment news, even mainstream media couldn’t ignore exclusive stories broken under Dylan Howard’s tenure as senior executive editor of RadarOnline,” the judges wrote.Mr. Howard left American Media in 2012. The Associated Press reported that his departure came after an external investigation into his workplace behavior. (The company said he was cleared of any wrongdoing.) The next year he returned to American Media, whose chief executive was David Pecker, a friend of Donald J. Trump, and he soon became the company’s chief content officer. That job gave him oversight of The Enquirer as well as Us Weekly, Globe and OK!, among other publications.Mr. Howard in 2014, when he was the editor in chief of Radar Online.Ilya S. Savenok/Getty ImagesDuring the 2016 presidential campaign, headlines in The Enquirer lionized Mr. Trump and belittled his political rivals. In addition, as The Wall Street Journal was first to report, American Media made a $150,000 payment to the former Playboy model Karen McDougal in return for the rights to her story of an affair with Mr. Trump. The Enquirer never ran that story.Mr. Howard also worked with Michael D. Cohen, Mr. Trump’s former lawyer, on a deal that silenced another woman, Stormy Daniels, who also said she had sex with Mr. Trump, who has denied having sex with either woman.In an email, Mr. Bragman added that Mr. Howard had been “ORDERED BY MANAGEMENT” to help suppress coverage of Mr. Trump’s affairs. But in a follow-up email, Mr. Schuster, Mr. Howard’s lawyer, said that Mr. Bragman’s comment was not authorized by Mr. Howard.“Please disregard Mr. Bragman’s comment and confirm that it will not be included in your article,” he wrote. “Thank you.”American Media ultimately admitted that its payment to Ms. McDougal violated campaign finance law. Mr. Cohen was sentenced to three years in prison. Mr. Howard, along with Mr. Pecker, entered into a nonprosecution agreement with the government and cooperated with its investigation.The agreement remained in effect only if American Media did nothing to break the law for three years. In 2019, Mr. Bezos, the Amazon founder, accused the company of blackmail after it had published an 11-page exposé of his extramarital affair with the former TV personality Lauren Sanchez headlined “Bezos’ Divorce! The Cheating Photos That Ended His Marriage.”The story led to a public spat in which Mr. Bezos accused the tabloid’s leaders of “extortion and blackmail” in a lengthy post on Medium. The multibillionaire quoted from a letter sent to him by Mr. Howard. In the letter, as quoted by Mr. Bezos, Mr. Howard described the supposedly compromising photographs The Enquirer had in its possession, including a “below-the-belt selfie.”No one was charged in the matter. Mr. Schuster called Mr. Bezos’ post on Medium “self-serving and inaccurate,” and said that Mr. Howard’s reporting was “fair and accurate.”Now, a little more than a year since Mr. Howard made his exit from American Media, Grazia Gazette: The Hamptons appeared in stacks along Main Street in East Hampton. Distributed free, it has a lot of competition in a place where there is no shortage of gratis publications aimed at wealthy readers, a boomlet fueled by ad dollars from real estate agencies promoting multimillion-dollar listings.“Most of them are thrown in the garbage,” said the author Steven Gaines, a resident of East Hampton who has written extensively on the area’s history. “Some people pick them up and look at them, but there’s really nothing interesting.”The lucky ones have a rack under an awning, or a place on an indoor windowsill. The unlucky ones get tossed on doorsteps, rained on and thrown away.Lynn A. Scotti, a president and group publisher at Modern Luxury Media, which publishes Hamptons Magazine, is aware of the new entrant in the field. She said she had seen the Grazia Gazette “out wet,” adding: “We welcome healthy competition and I wish him the best.”The editor and publisher Dan Rattiner, who has run Dan’s Papers, a Hamptons local news publication, for more than 60 years, said of the free glossies: “They come and go. There are so many of them, it’s hard to tell one from another.”Mr. Roshan, the editor, expressed surprise that luxury advertisers would sign on with a publication run by Mr. Howard at a time when “people have been canceled and cast out for far less.”But Joseph Montag, the managing director of the Topping Rose House, a hotel and restaurant and a not infrequent filming location for “The Real Housewives of New York City,” suggested that people in the Hamptons were not likely to be bothered by Mr. Howard’s efforts to bury the accounts of the women who had accused Mr. Weinstein of sexual assault or told of their affairs with Mr. Trump.“People out here are used to those sorts of things,” Mr. Montag said, adding that Matt Lauer, the former NBC anchor who was fired by the network after accusations of sexual assault, was still out and about in the Hamptons.Mr. Gaines, the Hamptons chronicler, seemed to be of two minds.“If he wants to reinvent himself, he should go to Miami,” he said. “They forgive everything down there.”But then again, the Hamptons-specific media market is crowded.“If he took his bad-boy reputation out here and he used that, he exploited that, to make a different type of magazine,” Mr. Gaines continued, “I think people would read that.”Jim Rutenberg, Lauren Hirsch and Michael Rothfeld contributed reporting. Susan Beachy contributed research. More