Cohen did not appear in court Friday morning and has not been charged with a crime. A hearing is set in the federal investigation for Monday afternoon to review Mr. Cohen's client list and who is entitled to attorney-client privilege, according to the report.
Cohen's attorneys also note that this is an unusual situation, necessitating unusual handling by the court.
Daniels is connected to Cohen's case, because information about the $130,000 payoff was among the materials seized in the New York City raid on Cohen's office, home, hotel room and electronic devices last Monday. Previous search warrants allowed NY federal prosecutors to search multiple email accounts, the filing said.
"Attorney Client privilege is now a thing of the past", he tweeted. I have never known attorney-client privilege so high profile. President Trump has repeatedly claimed that the investigation into his campaign's relationship with Russian officials is inappropriate, and has repeatedly called it a "witch hunt".
Cohen previously tried to get a restraining order against the feds, requesting that he and his legal team be allowed to review the seized documents first. Mueller's office referred the case about his business dealings to NY but hasn't been involved since, the Manhattan prosecutors said.
Investigators were seeking evidence of possible attempts to suppress negative media coverage of Trump in the run-up to the 2016 presidential election.
Cohen made a similar argument last week.
Cohen's attorneys want prosecutors ordered to temporarily halt an examination of the seized material, saying it's protected by attorney-client privilege.
On April 9, the Federal Bureau of Investigation raided Cohen's office, home and hotel room and searched a safety deposit box and two cell phones belonging to him.More news: Ice falling from CN Tower threatens Royals at Jays, report says
Trump's attorneys demanded in a letter to court on Sunday evening that the justice department's plan be halted so that "our firm and the president may review for privilege those seized documents that relate to him" - an extraordinary request from someone in Trump's position in this kind of case. And Cohen himself has suggested appointing an impartial special master to decide.
Among his dealings, Cohen arranged a $1.6-million payment to secure the silence of a former Playboy model who said she became pregnant by Broidy, a person familiar with the matter said on Friday.
The Justice Department is asking for a so-called taint team to vet the material seized in the raids Monday, as is standard process. "All lawyers are deflated and concerned".
"It resulted in the unnecessary seizure of protected attorney client communications between a lawyer and his client", attorney Stephen Ryan said in the statement. Daniels' attorney, Michael Avenatti, said his client will also attend Monday's hearing.
Both McDougal and Daniels said they had affairs with Trump, which the president has denied. They cited the President's own comments.
They acknowledged that the investigation was referred by special counsel Robert Mueller, who is looking into Russian interference in the 2016 USA presidential election, but was being conducted by the US attorney's office in Manhattan.