When I heard someone say, "I can't believe we will have a convicted felon as President," I was prepared with a few simple questions: What do you know about Federal Election Commission regulations, business accounting, or legal settlements? Unsurprisingly, the response was silence."
The FEC does not recognize hush money as a campaign contribution.
While I am not an FEC attorney, I have signed enough FEC reports to understand that payments like those made to Stormy Daniels cannot be classified as campaign expenses.
In 2018, we purchased an off-highway recreational vehicle (OHRV) for backcountry travel and my U.S. Senate campaign. Because the OHRV wasn't solely for campaign use, its purchase cost couldn't be charged to the campaign. However, we did charge the campaign for mileage and daily use when it was used for the campaign. I reimbursed the campaign for the initial expense.
Similarly, the Trump Organization paid Stormy Daniels for a non-disclosure agreement (NDA) benefiting Trump personally and professionally. Since this payment occurred before Trump became a candidate and was unrelated to his campaign, it could not be considered a campaign expense. This is why the FEC chose not to prosecute him.
Precedent in Campaign Finance
Consider the case of John Edwards in 2011. He was indicted for funneling nearly $1 million in campaign contributions to conceal his relationship with Rielle Hunter. Despite clear FEC violations, the Department of Justice (DOJ) opted not to prosecute.
In Trump's case, it's worth noting that Judge Merchan, who lacks expertise in FEC law, barred a retired Federal Election official from testifying about what constitutes a campaign expense.
Misclassifying an accounting entry is not a felony.
As a business owner, I occasionally handled payroll and general ledger activities. I understand the basic principles of debits, credits, assets, and liabilities. However, some accounting decisions—like whether a repair should be classified as an expense or depreciated as an asset—require judgment. Should business owners face felony charges for these decisions?
Take shoplifting, for example. Years ago, losses from theft were considered incidental and accounted for as overhead expenses. With shoplifting now more prevalent, businesses may reassess its impact on their books. Should these reassessments lead to criminal charges?
The Trump Organization classified the payment to Stormy Daniels as legal fees. Given the lack of a specific account for "hush money," this categorization seems reasonable. Yet, Judge Merchan did not allow a Certified Public Accountant to testify about standard accounting practices.
The Role of Non-Disclosure Agreements
In my 40 years as a contractor, I've been involved in legal disputes, all of which ended with settlements including NDAs. These agreements protect sensitive information, such as financial details or the nature of the dispute.
For those surprised by my company's legal history, let me emphasize that the construction industry is inherently litigious but, surprisingly, does not hinder companies from continuing to work together. At the start of my U.S. Senate campaign, I was asked if I had ever been sued. My answer was yes, and it wouldn't be a problem; they would donate to my campaign.
Dangerous Precedents
District Attorney Bragg and Justice Merchan's actions have damaged public trust in the judicial system. They've set a precedent where a hyper-partisan district attorney, judge, and jury can manipulate the judicial system to convict a former U.S. President.
To illustrate this danger, consider President Obama's 2011 decision to order the execution of Anwar al-Awlaki, a U.S. citizen. If a district attorney in New Mexico sought to charge Obama with murder, the legal precedent established in Trump's case could potentially allow it.
Conclusion
Historians will likely judge harshly the hyper-partisan manipulation of the judicial branch in pursuit of political rivals.