Farro says Cohen "changed course" once before opening LLC that he used to make Stormy Daniels payment

Day 8 of Trump New York hush money trial

By CNN's Kara Scannell, Lauren Del Valle and Jeremy Herb in the courthouse

Updated 6:31 p.m. ET, April 26, 2024
139 Posts
Sort byDropdown arrow
4:28 p.m. ET, April 26, 2024

Farro says Cohen "changed course" once before opening LLC that he used to make Stormy Daniels payment

Farro says the bank "did all of our work to establish" Cohen's original account, but it was never funded.

"A deposit was never made in the account, so the account never went live," Farro says.

Thirteen days later, on October 26, 2016, Farro received another email from his assistant to return Michael Cohen's call, according to the court exhibit.

"He stated he was changing course and no longer wanted to open Resolution Consultants, and wanted to open a new account," Farro says.

"Every time Michael Cohen spoke to me he gave a sense of urgency and this was one of those times."

The new LLC was Essential Consultants LLC, Farro says.

This is the LLC that Cohen used to pay Stormy Daniels the $130,000 payment.

On the form the bank prepared for Cohen to open the account, it stated under "business narrative" that Cohen was opening the account for a real estate consulting company to collect fees for consulting work on real estate deals.

Cohen again checked "No" on a form that asked if the entity is "associated with political fundraising/Political Action Committee (PAC)."

4:26 p.m. ET, April 26, 2024

Cohen checked "No" on a form asking if his entity was associated with political fundraising

Cohen checked "No" on a form that asked if the entity, Resolution Consultants LLC, which was created by him as a Delaware entity, is "associated with political fundraising/Political Action Committee (PAC)."

Farro testified several times that his understanding was that Cohen was opening the account for "real estate."

Per the paperwork, Cohen described the entity's function to be "management consulting (including HR & marketing)."

Cohen was the only authorized signatory for the account.

Farro says that the bank "did all of our work to establish" Cohen's account, but it was never funded.

"A deposit was never made in the account so the account never went live," Farro says, confirming the account was not opened.

4:20 p.m. ET, April 26, 2024

Farro is walking lawyers through the specifics of his bank's arrangement with Cohen

Farro and the attorneys are getting into the finer details of his bank's arrangement with Cohen, testifying that Trump's former personal attorney was the only authorized signatory on the account and repeating the account was meant for real estate purposes.

4:13 p.m. ET, April 26, 2024

Analysis: Farro's testimony shows what the trial is about

The testimony of Gary Farro, Michael Cohen's former banker, wasn't expected or anticipated, but it gets to what the trial is about, CNN anchor Kaitlan Collins says.

"This is why it matters because (Farro) is trying to arrange the payment to Stormy Daniels (from Michael Cohen), which is what all of this is about ... Maybe it's not as salacious but this is actually what the trial is about," Collins said.
4:10 p.m. ET, April 26, 2024

Farro discusses email asking him to return Cohen's call about "an important matter"

The first document is being shown to the jury is an email from Farro's assistant informing him that Michael Cohen called on October 11, 2016.

Farro received another email two days later.

"Please return Michael Cohen's call when you are available today regarding an important matter," the email said.

The banker called Cohen who told him he wanted to open a new LLC account. Cohen said the account was for "capital real estate," Farro says.

"Need an account opened for Mike Cohen immediately. He wants no address on the checks. Calling you now to discuss," an October 13, 2016, email Farro wrote says.

Then banker says that it wasn't that unusual for an LLC not to have addresses on the checks.

Cohen called to set up an account for Resolution Consultants LLC.

The jury is now seeing pages of documents that show Resolution Consultants LLC was created by Michael Cohen as a Delaware entity.

For background: This was the LLC Cohen created for the Karen McDougal payment that never happened.

4:04 p.m. ET, April 26, 2024

Farro is walking attorneys through the way his bank's email servers worked

Farro is being asked about email servers at First Republic and what information they recorded.

The emails include bank transactions and client communications, Farro testifies.

Now the first document from several binders full of them is being shown to the jury.

4:01 p.m. ET, April 26, 2024

Trump attorneys are flipping through big binders as Mangold introduces documents into evidence

Trump's attorneys, Emil Bove and Todd Blanche, are flipping through big binders full of documents as Mangold begins introducing documents into evidence with Farro.

Trump is sitting between them, staring straight ahead with his eyes closed.

3:57 p.m. ET, April 26, 2024

Farro says Cohen held personal bank accounts at First Republic

Farro is being asked about recording keeping at First Republic. Prosecutors will introduce evidence through him.

He says Cohen held personal accounts and entities there including some lending programs. Cohen opened bank accounts while working with Farro, he says.

"I didn’t open any accounts for the Trump Organization."

3:56 p.m. ET, April 26, 2024

Farro says he was "very excited" to be working for Cohen

Farro says there was a branch nearby Michael Cohen's office in Trump Tower so he'd frequently go there in person.

Farro says he was "very excited to be working for him."