Testimony ends for the day in Trump hush money trial

David Pecker testified that he had concerns about the legality of the catch and kill deals. In 2016, Pecker testified he consulted an election law attorney when AMI was structuring the catch and kill contract with Karen McDougal and said that AMI’s in-house attorney was aware of the deal.

Still, AMI moved forward and signed a deal with McDougal, including rights to any stories involving married men, with no intention of publishing health and fitness articles they promised her.

Two years later, AMI signed a non-prosecution agreement with federal prosecutors investigating Michael Cohen. Under the deal, AMI admitted it violated federal campaign finance laws by making a $150,000 donation to Trump’s campaign while coordinating with the campaign. AMI never disclosed the contribution to the Federal Election Commission. As part of the deal, Pecker cooperated with federal prosecutors.

During questioning Thursday, Pecker said he knew at the time the 2016 deal was illegal and he wouldn’t have entered into it if it wasn’t for Trump’s benefit.

Records show McDougal was paid via her attorney on August 10, 2016 — a few days after the contract was signed August 5.

Steinglass is now introducing the AMI payment voucher. The prosecutor is walking Pecker through the mechanics of how this payment was made from start to finish.

Steinglass is having Pecker confirm with each document the dates of the payment and the amount of the payment listed.

Pecker explains filing the payment to McDougal under the president's budget was a clerical decision because the editors' budget was limited for smaller transactions.

AMI, the National Enquirer's parent company, paid for McDougal's life rights via wire transfer, Pecker says. The paperwork for that transaction is now being shown in court.

Pecker testifies that he, National Enquirer Dylan Howard and AMI's general counsel were aware of the contract with McDougal.

Steinglass asks Pecker who on Trump's side knew about the contract. "Michael Cohen," Pecker says.

After an objection for a leading question that was sustained, Steinglass asks a second question about who else knew on Trump's side.

"Yes, I believe Donald Trump knew," Pecker says.

Steinglass is now showing an AMI invoice for $150,000 from Keith Davidson, McDougal's attorney.

Pecker is explaining how the $150,000 expense was coded at AMI to the "president's budget," which was Pecker's office.

Steinglass asks whether this was the "true purpose" of the agreement. Yes, Pecker says.

The prosecutor asks then why did Pecker include the other items in the agreement. "I wanted to substantiate the $150,000 payment," Pecker says.

Steinglass asks again whether the primary purpose of entering into the agreement was to buy McDougal's life rights. "Yes it was," Pecker says.

"I wanted to have the contract be a record that stipulates that for the services that she was going to perform for American Media has a basis for it with $150,000," he says.

Pecker explains that if McDougal breached the contract, she would have to return the $150,000.

Pecker explains what "limited life rights" means, saying that "you buy the rights for this specific story and it cannot be published by any other publishing company."

"You cannot discuss it with any other media. It was exclusively owned by American Media," he said.

Steinglass is highlighting a line in the agreement that states AMI acquired McDougal's rights for her story, including "any romantic personal and/or physical relationship McDougal has ever had with any then-married man."

Steinglass asks Pecker who the married man was in reference to. "She was referring to Donald Trump," Pecker says.