Stormy Daniels’ lawyer: No­var­tis made $400K in 'sus­pi­cious' pay­ments to Trump at­tor­ney Michael Co­hen

Stormy Daniels’ at­tor­ney Michael Ave­nat­ti has out­lined a se­ries of “sus­pi­cious fi­nan­cial trans­ac­tions” in­volv­ing close to $400,000 in pay­ments No­var­tis made to the ac­count of Es­sen­tial Con­sul­tants, which was ear­li­er used by Don­ald Trump’s per­son­al at­tor­ney Michael Co­hen to pay $130,000 to the adult film ac­tress to keep her silent about al­le­ga­tions of an af­fair with the pres­i­dent.

Ac­cord­ing to the re­port, No­var­tis $NVS made four wire pay­ments of $99,980 each, just un­der the $100,000 mark, which Ave­nat­ti not­ed be­gan last fall and were wrapped in ear­ly Jan­u­ary of this year, just weeks be­fore soon-to-be CEO Vas Narasimhan met with Trump in Davos. [This sto­ry has been up­dat­ed with new in­for­ma­tion here: No­var­tis now says that it paid Co­hen’s com­pa­ny $1.2M]

A spokesper­son for No­var­tis re­spond­ed to a query I sent Tues­day night, say­ing: “Still chas­ing af­ter this – but want to clar­i­fy for your in­for­ma­tion that any agree­ments with Es­sen­tial Con­sul­tants were en­tered be­fore our cur­rent CEO tak­ing of­fice in Feb­ru­ary of this year and have ex­pired.” Lat­er, the phar­ma gi­ant tried to put some ad­di­tion­al dis­tance be­tween Narasimhan and the pay­ments, which they said in­volved “health­care pol­i­cy mat­ters.”

Who­ev­er drove the deal at No­var­tis, get­ting swept up in the Daniels scan­dal at the height of the me­dia tem­pest — days ahead of a ma­jor pol­i­cy ini­tia­tive on drug pric­ing by Trump — is ex­tra­or­di­nar­i­ly em­bar­rass­ing for the Swiss com­pa­ny, which still has plen­ty of ex­plain­ing to do.

The bomb­shell in the re­port spot­light­ed $500,000 paid by Russ­ian oli­garch Vik­tor Vek­sel­berg, with close ties to Rus­sia’s au­thor­i­tar­i­an leader Vladimir Putin, af­ter the elec­tion. Ac­cord­ing to Ave­nat­ti, that mon­ey could have been used to re­pay Co­hen for the hush mon­ey he paid Daniels. An­oth­er $200,000 came from AT&T, which has con­firmed the pay­ments to re­porters cov­er­ing the sto­ry, say­ing it paid for “in­sights in­to un­der­stand­ing the new ad­min­is­tra­tion.” Ko­rea Aero­space In­dus­tries paid $150,000.

“Mr.  Vek­sel­berg  and  his  cousin  Mr.  An­drew  In­trater  rout­ed  eight  pay­ments  to  Mr.  Co­hen  through  a  com­pa­ny  named  Colum­bus  No­va  LLC  (“Colum­bus”)  be­gin­ning  in  Jan­u­ary  2017  and  con­tin­u­ing  un­til  at  least  Au­gust  2017,” states Ave­nat­ti’s re­port.

“Al­so  in­clud­ed  in  these  sus­pi­cious  fi­nan­cial  trans­ac­tions  are  four  pay­ments  in  late  2017  and  ear­ly  2018  to­tal­ing  $399,920  made  by  glob­al  phar­ma­ceu­ti­cal  gi­ant  No­var­tis  di­rect­ly  to  Es­sen­tial  in  four  sep­a­rate  trans­ac­tions  of  $99,980  each  (just  be­low  $100,000).

“Fol­low­ing  these  pay­ments,  re­ports  sur­faced  that  Mr.  Trump  took  a din­ner  meet­ing  with the  in­com­ing  CEO  of  No­var­tis be­fore  Mr.  Trump’s  speech at  the  World  Eco­nom­ic  Fo­rum  in  Davos,  Switzer­land  in  late  Jan­u­ary  2018.”

Ave­nat­ti in­clud­ed a link to a Fier­cePhar­ma sto­ry on the group of ex­ec­u­tives meet­ing with Trump for din­ner in Davos.

Overnight, No­var­tis ex­ecs scram­bled to cir­cle the wag­ons around their CEO, con­firm­ing the pay­ments but in­sist­ing Narasimhan was nev­er in­volved in the “arrange­ment.” Their state­ment:

In Feb­ru­ary 2017, No­var­tis en­tered in­to a one year agree­ment with Es­sen­tial Con­sul­tants short­ly af­ter the elec­tion of Pres­i­dent Trump fo­cused on US health­care pol­i­cy mat­ters. The terms were con­sis­tent with the mar­ket. The agree­ment ex­pired in Feb­ru­ary 2018.

As al­ready stat­ed, the en­gage­ment of Es­sen­tial Con­sul­tants pre­dat­ed Vas Narasimhan be­com­ing No­var­tis CEO. Dr. Narasimhan had no in­volve­ment what­so­ev­er with this arrange­ment.

No­var­tis was con­tact­ed in No­vem­ber 2017 by lawyers from the Spe­cial Coun­sel’s of­fice re­gard­ing the com­pa­ny’s agree­ment with Es­sen­tial Con­sul­tants. No­var­tis co­op­er­at­ed ful­ly with the Spe­cial Coun­sel’s of­fice and pro­vid­ed all the in­for­ma­tion re­quest­ed. No­var­tis con­sid­ers this mat­ter closed as to it­self and is not aware of any out­stand­ing ques­tions re­gard­ing the agree­ment.

Vas Narasimhan may have been still the in­com­ing CEO at No­var­tis at that point in late Jan­u­ary, but he had di­rect­ed the de­vel­op­ment ef­fort at the phar­ma gi­ant for sev­er­al years and had been tapped for the CEO’s job months be­fore his meet­ing with Trump, along with a large group of ex­ec­u­tives. He took the CEO job at the be­gin­ning of Feb­ru­ary as CEO Joe Jimenez stepped down.

This al­so isn’t No­var­tis’ first in­volve­ment in a cor­rup­tion in­ves­ti­ga­tion. A lit­tle more than a month ago the com­pa­ny agreed to pay a fine of $25 mil­lion to the SEC af­ter com­pa­ny reps were ac­cused of of­fer­ing doc­tors in Chi­na lav­ish en­ter­tain­ment in ex­change for boost­ing the use of No­var­tis’ drugs.

No­var­tis and the phar­ma in­dus­try in gen­er­al have been step­ping up their pres­ence in Wash­ing­ton DC, in­ten­si­fy­ing lob­by­ing ef­forts as Trump and his top of­fi­cials in health­care fo­cus on a pledge to dra­mat­i­cal­ly low­er drug prices in the US. Trump is ex­pect­ed to give a speech on that very top­ic this Fri­day. I fol­lowed up with some more ques­tions for No­var­tis, but haven’t heard back.

Ave­nat­ti, mean­while, took to Twit­ter to call out all the com­pa­nies in­volved in con­tribut­ing to a “slush fund.”

https://twit­ter.com/MichaelAve­nat­ti/sta­tus/994156631440216069

Im­age: Michael Ave­nat­ti Shut­ter­stock

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