Trump fined $1,000 for breaking gag order in hush money case; former employee reveals reimbursements.

NEW YORK - The judge in Donald Trump's hush money trial leveled a $1,000 fine against him on Monday, accompanied by a stern warning that any future violations of the gag order could result in jail time for the former president. This rebuke set the stage for a day of revealing testimony, as jurors were given insight into the financial transactions at the heart of the case, complete with payment cheques bearing Trump's signature. Former Trump Organization controller, Jeffrey McConney, took the stand to provide a detailed account of how the company reimbursed payments meant to silence potentially damaging stories during Trump's 2016 presidential campaign.

These payments were then recorded as legal expenses, a practice that prosecutors argue was illegal. McConney's testimony, while lacking the dramatic flair of previous witnesses, such as Hope Hicks, was crucial in establishing a foundation for the prosecution's case. The focus of the testimony was a $130,000 payment made by Trump's lawyer, Michael Cohen, to adult film star Stormy Daniels in October 2016, aimed at preventing her from disclosing an alleged affair with Trump a decade earlier.

The charges against Trump include 34 counts of falsifying business records, alleging that the payments to Cohen were improperly recorded as legal fees. Prosecutors contend that by disguising the reimbursement as legitimate expenses and making monthly payments to Cohen, the Trump Organization effectively concealed the true nature of the transactions. Interestingly, McConney revealed that most of the cheques used to reimburse Cohen were drawn from Trump's personal account.

However, there was no mention in the testimony that Trump himself directed the payments to be characterized as legal expenses, a key point of contention for the prosecution. During cross-examination, McConney admitted that Trump never instructed him to label the reimbursements as legal expenses and never discussed the matter with him. Similarly, Deborah Tarasoff, a Trump Organization accounts payable supervisor, testified that she did not seek Trump's approval before issuing the cheques in question.

The judge, Juan M. Merchan, issued a firm warning to Trump regarding future violations of the gag order, emphasizing that repeated infractions could result in imprisonment. This penalty marked the second time Trump had been fined for breaching the gag order since the trial began, highlighting the gravity of the situation.

Despite the threat of jail time, Merchan expressed reluctance towards such a drastic measure, citing Trump's status as a former president and potential future leader. He emphasized that incarceration would be a last resort, only considered if recommended by prosecutors. The most recent violation stemmed from a televised interview in which Trump criticized the jury selection process and alleged political bias without evidence.

As the trial proceeded, McConney detailed conversations with Allen Weisselberg, the Trump Organization's finance chief, regarding the reimbursement to Cohen for the payment to Daniels. Weisselberg's notes outlined a plan to compensate Cohen with various components, including a base reimbursement, tax considerations, a bonus, and a technology contract. McConney's own notes concurred with this plan, indicating that the payments would come from Trump's personal account.

When questioned about the decision to record the payments as legal expenses, McConney admitted that it was his idea, not a directive from Trump or Weisselberg. Despite the prosecution's allegations of deception, Trump's attorney argued that labeling the payments as legal expenses made sense given Cohen's role as a lawyer at the time. The trial continues to unfold, with prosecutors building their case towards Cohen's testimony, a pivotal moment expected to face intense scrutiny from the defense.

As the legal battle progresses, the spotlight remains on Trump's actions and the implications for the former president. ------ Tucker reported from Washington.