{"id":125862,"date":"2024-06-02t10:24:10","date_gmt":"2024-06-02t14:24:10","guid":{"rendered":"\/\/www.g005e.com\/?p=125862"},"modified":"2024-08-29t23:53:08","modified_gmt":"2024-08-30t03:53:08","slug":"in-the-end-the-hush-money-case-was-about-accounting","status":"publish","type":"post","link":"\/\/www.g005e.com\/2024\/06\/02\/in-the-end-the-hush-money-case-was-about-accounting\/","title":{"rendered":"trump trial: a case study in accounting?"},"content":{"rendered":"<p><b>could some good accountants have spared the nation its hush money trauma?<\/b><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-125960\" src=\"\/\/www.g005e.com\/wp-content\/uploads\/2024\/06\/accounting-tax-fraud-with-dollar-bills-adobestock_36201847.jpeg\" alt=\"\" width=\"1600\" height=\"1065\" srcset=\"\/\/www.g005e.com\/wp-content\/uploads\/2024\/06\/accounting-tax-fraud-with-dollar-bills-adobestock_36201847.jpeg 1600w, \/\/www.g005e.com\/wp-content\/uploads\/2024\/06\/accounting-tax-fraud-with-dollar-bills-adobestock_36201847-424x282.jpeg 424w, \/\/www.g005e.com\/wp-content\/uploads\/2024\/06\/accounting-tax-fraud-with-dollar-bills-adobestock_36201847-849x565.jpeg 849w, \/\/www.g005e.com\/wp-content\/uploads\/2024\/06\/accounting-tax-fraud-with-dollar-bills-adobestock_36201847-768x511.jpeg 768w, \/\/www.g005e.com\/wp-content\/uploads\/2024\/06\/accounting-tax-fraud-with-dollar-bills-adobestock_36201847-1536x1022.jpeg 1536w, \/\/www.g005e.com\/wp-content\/uploads\/2024\/06\/accounting-tax-fraud-with-dollar-bills-adobestock_36201847-300x200.jpeg 300w, \/\/www.g005e.com\/wp-content\/uploads\/2024\/06\/accounting-tax-fraud-with-dollar-bills-adobestock_36201847-600x399.jpeg 600w\" sizes=\"auto, (max-width: 1600px) 100vw, 1600px\" \/><\/p>\n<p><em>by 卡塔尔世界杯常规比赛时间 research<\/em><br \/>\n<em>analysis and commentary<\/em><\/p>\n<p>the donald trump case involving hush money payments indeed centered around accounting practices and the legal implications of how these transactions were recorded. the payments in question, made to silence allegations of extramarital affairs, were scrutinized for potential violations of campaign finance laws and business records.<\/p>\n<p>a 卡塔尔世界杯常规比赛时间 analysis of generally accepted practices and the professional literature demonstrates the grave lapses that led to felony convictions and the essential role good accountants and honest accounting must play in the executive suite.<\/p>\n<p>the lessons \u2013 and risks \u2013 for accountants are painfully clear.<\/p>\n<p><!--more--><\/p>\n<h3><strong>key points:<\/strong><\/h3>\n<p><strong>1. nature of payments:<\/strong><\/p>\n<ul>\n<li>hush money payments were made to two women, stormy daniels and karen mcdougal, allegedly to prevent them from speaking about their alleged affairs with trump during the 2016 presidential campaign.<\/li>\n<\/ul>\n<p><strong>2. accounting and legal issues:<\/strong><\/p>\n<ul>\n<li>these payments were reportedly made by michael cohen, trump\u2019s then-personal attorney, who was later reimbursed by the trump organization.<\/li>\n<li>the manner in which these payments and reimbursements were documented raised significant legal concerns.<\/li>\n<\/ul>\n<p><strong>3. campaign finance violations:<\/strong><\/p>\n<ul>\n<li>federal prosecutors argued that the payments were intended to influence the outcome of the 2016 election, thus qualifying them as campaign contributions.<\/li>\n<li>failure to properly report these contributions violated campaign finance laws.<\/li>\n<\/ul>\n<p><strong>4. false business records:<\/strong><\/p>\n<ul>\n<li>cohen\u2019s reimbursement for the payments was allegedly recorded as legal fees, which prosecutors claimed constituted false entries in business records, a potential violation of state law.<\/li>\n<\/ul>\n<p><strong>5. legal outcomes:<\/strong><\/p>\n<ul>\n<li>michael cohen pleaded guilty to several charges, including campaign finance violations, and testified that he made the payments at trump\u2019s direction.<\/li>\n<li>trump has denied the allegations and any wrongdoing.<\/li>\n<\/ul>\n<p><strong>what accountants need to know<\/strong><\/p>\n<p>the crux of the trump hush money case lies in the intersection of accounting practices and legal compliance, specifically concerning how these transactions were recorded and reported in relation to campaign finance laws. the case highlights the critical role of accurate financial reporting and adherence to legal standards in corporate and political contexts.<\/p>\n<h6 style=\"padding-left: 40px;\">sources:<\/h6>\n<h6 style=\"padding-left: 40px;\">\u2022 <a href=\"https:\/\/www.nytimes.com\/2018\/12\/12\/nyregion\/michael-cohen-sentence-trump.html\" target=\"_blank\" rel=\"noopener\">the new york times: michael cohen sentenced to 3 years in prison<\/a><br \/>\n<a href=\"https:\/\/www.washingtonpost.com\/politics\/2024\/05\/06\/trump-hush-money-trial-election-law\/\" target=\"_blank\" rel=\"noopener\">\u2022 the washington post: trump\u2019s hush money payments and campaign finance violations<\/a><br \/>\n<a href=\"https:\/\/www.cnn.com\/2024\/04\/13\/politics\/donald-trump-hush-money-trial-explained\/index.html\" target=\"_blank\" rel=\"noopener\">\u2022 cnn: understanding the trump hush money investigation<\/a><\/h6>\n<h3><strong>34 counts, 34 convictions<\/strong><\/h3>\n<p>the 34 counts in the trump hush money case primarily relate to falsifying business records. the indictment, filed by manhattan district attorney alvin bragg, alleges that donald trump falsified business records to conceal the true nature of the hush money payments. each count corresponds to an individual instance where records were allegedly falsified.<\/p>\n<p>each count was related to accounting. here&#8217;s how:<\/p>\n<h4><strong>detailed breakdown:<\/strong><\/h4>\n<p><strong>1. counts 1-34: falsifying business records in the first degree<\/strong><\/p>\n<ul>\n<li>description: each count pertains to a specific instance where trump, along with others, allegedly made false entries in business records.<\/li>\n<li>nature of records: the records include checks, check stubs, and ledger entries that documented the reimbursements to michael cohen.<\/li>\n<li>false entries: the falsified records were created to disguise the nature of the payments as \u201clegal expenses\u201d instead of reimbursements for the hush money.<\/li>\n<\/ul>\n<h4><strong>specific instances:<\/strong><\/h4>\n<p><strong>1) counts 1-11: checks and check stubs:<\/strong><\/p>\n<ul>\n<li>these counts involve monthly checks paid to michael cohen throughout 2017.<\/li>\n<li>each check was recorded as payment for legal services, but prosecutors allege they were reimbursements for the hush money.<\/li>\n<\/ul>\n<p><strong>2) counts 12-22: general ledger entries:<\/strong><\/p>\n<ul>\n<li>the trump organization\u2019s ledger entries for these checks were recorded as legal expenses.<\/li>\n<li>the prosecution claims these entries were made to conceal the actual purpose of the payments.<\/li>\n<\/ul>\n<p><strong>3) counts 23-34: invoices and documentation:<\/strong><\/p>\n<ul>\n<li>these counts include the invoices submitted by cohen to the trump organization.<\/li>\n<li>each invoice falsely described the services rendered, masking the true nature of the payments.<\/li>\n<\/ul>\n<h4><strong>legal implications:<\/strong><\/h4>\n<ul>\n<li>falsifying business records: under new york penal law \u00a7 175.10, falsifying business records in the first degree is a class e felony. the law stipulates that altering or making a false entry in business records with the intent to defraud constitutes this crime.<\/li>\n<li>intent to commit another crime: the charges are elevated to a felony because the falsification was allegedly done with the intent to commit another crime, specifically campaign finance violations.<\/li>\n<\/ul>\n<h4><strong>the bottom line<\/strong><\/h4>\n<p>the 34 counts reflect a pattern of falsifying business records to obscure the purpose of the hush money payments. each count corresponds to specific accounting entries that were allegedly manipulated to disguise reimbursements as legal expenses, thereby violating both state and potentially federal laws.<\/p>\n<h6 style=\"padding-left: 40px;\">sources:<\/h6>\n<h6 style=\"padding-left: 40px;\"><a href=\"https:\/\/manhattanda.org\/d-a-bragg-announces-34-count-felony-trial-conviction-of-donald-j-trump\/\" target=\"_blank\" rel=\"noopener\">\u2022 manhattan district attorney\u2019s office: press release on indictment<\/a><br \/>\n<a href=\"https:\/\/www.cnn.com\/interactive\/2023\/07\/politics\/trump-indictments-criminal-cases\/#:~:text=summary,first%20degree%20by%2012%20jurors.\" target=\"_blank\" rel=\"noopener\">\u2022 cnn: trump indictment explained<\/a><br \/>\n<a href=\"https:\/\/codes.findlaw.com\/ny\/penal-law\/pen-sect-175-10\/#:~:text=a%20person%20is%20guilty%20of,or%20conceal%20the%20commission%20thereof.\" target=\"_blank\" rel=\"noopener\">\u2022 new york penal law \u00a7 175.10: legal text<\/a><\/h6>\n<h3><strong>the value of good, honest accountants<\/strong><\/h3>\n<p>having good and honest accountants involved in the situation would have likely resulted in significantly different outcomes.<\/p>\n<p>here\u2019s a detailed analysis of how ethical accounting practices could have altered the scenario:<\/p>\n<h4><strong>prevention of legal issues:<\/strong><\/h4>\n<p><strong>1. accurate record-keeping:<\/strong><\/p>\n<ul>\n<li>honest accountants would have ensured that all transactions were accurately recorded and categorized.<\/li>\n<li>the payments to michael cohen would have been correctly documented as reimbursements for hush money payments rather than misrepresented as legal fees.<\/li>\n<\/ul>\n<p><strong>2. transparency and compliance:<\/strong><\/p>\n<ul>\n<li>ethical accountants would have flagged the payments as potentially problematic, especially considering their connection to the presidential campaign.<\/li>\n<li>they would have advised against using corporate funds for personal or campaign-related expenses without proper disclosure.<\/li>\n<\/ul>\n<h4><strong>adherence to laws and regulations:<\/strong><\/h4>\n<p><strong>1. campaign finance laws:<\/strong><\/p>\n<ul>\n<li>accountants knowledgeable about campaign finance laws would have recognized the need to report the payments as campaign expenditures if they were intended to influence the election.<\/li>\n<li>they would have ensured compliance with both federal and state regulations regarding political contributions and expenditures.<\/li>\n<\/ul>\n<p><strong>2. internal controls:<\/strong><\/p>\n<ul>\n<li>honest accountants would have implemented robust internal controls to detect and prevent the misuse of corporate funds.<\/li>\n<li>they would have conducted regular audits to ensure all financial transactions were legitimate and properly recorded.<\/li>\n<\/ul>\n<h4><strong>ethical guidance and advisory:<\/strong><\/h4>\n<p><strong>1. professional integrity:<\/strong><\/p>\n<ul>\n<li>accountants with high ethical standards would have provided sound advice, warning against any actions that could be perceived as fraudulent or deceptive.<\/li>\n<li>they would have highlighted the risks associated with misrepresenting financial records and the potential legal consequences.<\/li>\n<\/ul>\n<p><strong>2. disclosure and reporting:<\/strong><\/p>\n<ul>\n<li>ethical accountants would have advocated for full disclosure to regulatory bodies and stakeholders about the nature of the payments.<\/li>\n<li>they would have ensured that all necessary reports were filed accurately and on time, reducing the risk of legal scrutiny and penalties.<\/li>\n<\/ul>\n<h3><strong>consequences of ethical accounting<\/strong><\/h3>\n<p><strong>1. avoidance of criminal charges:<\/strong><\/p>\n<ul>\n<li>accurate and honest accounting would have prevented the creation of false business records, thereby avoiding the basis for the 34 felony counts of falsifying business records.<\/li>\n<li>transparency in financial dealings would have likely mitigated any accusations of intent to defraud or conceal campaign finance violations.<\/li>\n<\/ul>\n<p><strong>2. maintaining reputation:<\/strong><\/p>\n<ul>\n<li>by adhering to ethical standards, the accountants would have protected the reputation of the trump organization and its executives.<\/li>\n<li>ethical behavior would have fostered trust among stakeholders, investors, and the public, maintaining the integrity of the business.<\/li>\n<\/ul>\n<p><strong>3. long-term financial health:<\/strong><\/p>\n<ul>\n<li>honest accounting practices contribute to the long-term financial health and stability of an organization.<\/li>\n<li>by ensuring compliance and transparency, the organization would have been better positioned to withstand regulatory scrutiny and avoid costly legal battles.<\/li>\n<\/ul>\n<h3><strong>卡塔尔世界杯常规比赛时间 assessment:<\/strong><\/h3>\n<p>good and honest accountants would have played a crucial role in preventing the legal issues that arose from the hush money payments. their commitment to accurate record-keeping, adherence to laws and regulations, and ethical advisory would have ensured transparency and compliance, thereby averting the falsification of business records and the subsequent legal repercussions.<\/p>\n<h6 style=\"padding-left: 40px;\">sources:<\/h6>\n<h6 style=\"padding-left: 40px;\">&#8211; <a href=\"https:\/\/www.aicpa.org\/research\/standards\/codeofconduct.html\" target=\"_blank\" rel=\"noopener\">american institute of cpas (aicpa): [code of professional conduct]\u00a0<\/a><br \/>\n<a href=\"https:\/\/www.fec.gov\/legal-resources\/campaign-finance-law\/\" target=\"_blank\" rel=\"noopener\">&#8211; federal election commission (fec): [campaign finance laws]\u00a0<\/a><br \/>\n<a href=\"https:\/\/www.nysscpa.org\/\" target=\"_blank\" rel=\"noopener\">&#8211; new york state society of cpas: [ethical responsibilities and financial reporting]\u00a0<\/a><\/h6>\n<h6 style=\"padding-left: 40px;\"><\/h6>\n","protected":false},"excerpt":{"rendered":"<p><b>could some good accountants have spared the nation its trauma?<\/b><br \/>\n<a href=\"\/\/www.g005e.com\/?p=125862\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-125960\" src=\"\/\/www.g005e.com\/wp-content\/uploads\/2024\/06\/accounting-tax-fraud-with-dollar-bills-adobestock_36201847.jpeg\" alt=\"\" width=\"247\" height=\"164\" srcset=\"\/\/www.g005e.com\/wp-content\/uploads\/2024\/06\/accounting-tax-fraud-with-dollar-bills-adobestock_36201847.jpeg 1600w, \/\/www.g005e.com\/wp-content\/uploads\/2024\/06\/accounting-tax-fraud-with-dollar-bills-adobestock_36201847-424x282.jpeg 424w, \/\/www.g005e.com\/wp-content\/uploads\/2024\/06\/accounting-tax-fraud-with-dollar-bills-adobestock_36201847-849x565.jpeg 849w, \/\/www.g005e.com\/wp-content\/uploads\/2024\/06\/accounting-tax-fraud-with-dollar-bills-adobestock_36201847-768x511.jpeg 768w, \/\/www.g005e.com\/wp-content\/uploads\/2024\/06\/accounting-tax-fraud-with-dollar-bills-adobestock_36201847-1536x1022.jpeg 1536w, \/\/www.g005e.com\/wp-content\/uploads\/2024\/06\/accounting-tax-fraud-with-dollar-bills-adobestock_36201847-300x200.jpeg 300w, \/\/www.g005e.com\/wp-content\/uploads\/2024\/06\/accounting-tax-fraud-with-dollar-bills-adobestock_36201847-600x399.jpeg 600w\" sizes=\"auto, (max-width: 247px) 100vw, 247px\" \/><\/a><br \/>\n<em>by 卡塔尔世界杯常规比赛时间 research<\/em><\/strong><br \/>\n<em>analysis and commentary<\/em><\/p>\n","protected":false},"author":17,"featured_media":125960,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[3925,2780,5,2269,3120],"tags":[4145,674,4144],"class_list":["post-125862","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-audit-assurance","category-news-2","category-outlook","category-politics","category-pro-member-exclusive","tag-election","tag-fraud","tag-trump"],"acf":[],"yoast_head":"<!-- this site is optimized with the 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