Double blow for Trump as Michael Cohen faces jail over hush money and Paul Manafort found guilty in fraud trial

Michael Cohen, former personal lawyer to Donald Trump, leaves federal court after reaching a plea agreement in New York: AP
Michael Cohen, former personal lawyer to Donald Trump, leaves federal court after reaching a plea agreement in New York: AP

Michael Cohen has accused Donald Trump of directing him to arrange hush money payments as he and the president’s former campaign manager face jail.

Mr Cohen, former fixer for Mr Trump, confessed to making payments to porn star Stormy Daniels and Playboy model Karen McDougal.

It comes as the US president's former campaign manager, Paul Manafort, was found guilty of bank fraud, tax fraud and campaign finance violations.

Mr Cohen's extraordinary account marks the first time that any Trump associate has gone into open court and implicated Trump himself in a crime.

His guilty plea was part of a double dose of bad news for Mr Trump. But whether - or when - a president can be prosecuted remains a matter of legal dispute.

It came at almost the same moment Mr Manafort was convicted of eight financial crimes in the first trial to come out of special counsel Robert Mueller's sprawling Russia investigation.

In a deal reached with federal prosecutors, Cohen, 51, pleaded guilty to eight counts, including tax evasion. He could get about four to five years in prison at sentencing on December 12.

In entering the plea, Cohen did not name the two women or even Mr Trump, recounting instead that he worked with an "unnamed candidate" to influence the election.

But the amounts and the dates all lined up with the $130,000 paid to Daniels and the $150,000 that went to Playboy Playmate Karen McDougal to buy their silence in the weeks and months leading up to the 2016 presidential election.

Paul Manafort, Donald Trump's former campaign chief, was found guilty on eight charges of tax and bank fraud (AFP/Getty Images)
Paul Manafort, Donald Trump's former campaign chief, was found guilty on eight charges of tax and bank fraud (AFP/Getty Images)

Both women claimed to have had affairs with Mr Trump, which he denies.

Mr Cohen said one payment was "in coordination and at the direction of a candidate for federal office," and the other was made "under direction of the same candidate."

However, in the charging documents, a news release and comments outside the courthouse, prosecutors did not go as far as Mr Cohen did in open court in pointing the finger at the president.

Prosecutors said Mr Cohen acted "in coordination with a candidate or campaign for federal office for purposes of influencing the election."

As news networks were showing split-screen coverage of the conviction and plea bargain by two of his former loyalists, Mr Trump himself boarded Air Force One on his way to a rally in West Virginia and ignored shouted questions about the men.

Mr Trump's personal lawyer, Rudy Giuliani, noted in a statement that "there is no allegation of any wrongdoing against the president in the government's charges against Mr. Cohen."

Daniel Petalas, a former prosecutor in the Justice Department's public integrity section, said, "This brings President Trump closer into the criminal conduct."

"The president has certain protections while a sitting president, but if it were true, and he was aware and tried to influence an election, that could be a federal felony offence," Petalas said.

"This strikes close to home."

After the court hearing, which ended with Cohen released on $500,000 bail, the lawyer wiped away tears as he gazed out a courthouse window.

He left the building and headed straight for a black SUV with tinted windows as people outside chanted, "Lock him up!" as they recorded the scene with their phones.

Under federal law, expenditures to protect a candidate's political fortunes can be construed to be campaign contributions, subject to federal laws that bar donations from corporations and set limits on how much can be given.

"If those payments were a crime for Michael Cohen, then why wouldn't they be a crime for Donald Trump?" Cohen's lawyer, Lanny Davis, tweeted.

Cohen's plea follows months of scrutiny from federal investigations and a falling-out with the president, for whom Cohen once said he would "take a bullet."