Michael Cohen cites criminal investigation against him by federal prosecutors in New York
President Donald Trump’s personal attorney Michael Cohen told a federal court here Wednesday he will assert his Fifth Amendment rights against self-incrimination in a civil case because of a continuing criminal investigation against him in New York.
The filing came in a California civil lawsuit brought by former adult-film actress Stephanie Clifford against Messrs. Trump and Cohen. Ms. Clifford, known as Stormy Daniels, sued to invalidate a 2016 agreement barring her from discussing an alleged sexual encounter with Mr. Trump in exchange for $130,000. Mr. Cohen made the payment using a Delaware company called Essential Consultants LLC, which is also named as a defendant in the case.
Attorneys for Mr. Cohen are asking U.S. District Judge S. James Otero to halt the lawsuit in light of a criminal investigation against Mr. Cohen by federal prosecutors in New York. Judge Otero said during a Friday hearing in Los Angeles that Mr. Cohen needed to file an affidavit with the court before he would consider slowing down the case.
Mr. Cohen said in the affidavit filed Wednesday that he realized his Fifth Amendment rights would be implicated on April 10, a day after FBI agents searched his home, office and hotel room. During the raids, he says in the filing, the FBI seized electronic devices and documents “which contain information relating to the $130,000 payment to Plaintiff Stephanie Clifford at the center of this case, and my communications with counsel, Brent Blakely, relating to this action.”
Michael Avenatti, an attorney for Ms. Clifford, called the affidavit a “stunning development” in a Tweet on Wednesday. Mr. Avenatti said in court Friday he doesn’t think the case should be delayed.
The criminal investigation into Mr. Cohen is probing potential bank fraud and campaign-finance violations in connection with the payment to Ms. Clifford and his taxi business, The Wall Street Journal has reported.
Mr. Blakely said in court Friday that the civil case should be delayed both because of the Fifth Amendment issue, and because Mr. Cohen doesn’t have the files he needs to defend himself. He’s asking Judge Otero to pause the contract case for 90 days or less to give them time to assess the criminal investigation.
Ms. Clifford filed her lawsuit after a Feb. 27 emergency order from an arbitrator temporarily restrained her from discussing her relationship with Mr. Trump or the nondisclosure agreement she reached with Mr. Cohen. Her suit claims the agreement isn’t valid in part because Mr. Trump never signed it.
Ms. Clifford has made television appearances to speak about her alleged 2006 sexual encounter with Mr. Trump in a Lake Tahoe hotel room. Lawyers for Messrs. Trump and Cohen have said she could be liable for damages of at least $20 million for breaching the nondisclosure agreement.
