AT&T CEO says hiring Michael Cohen was ‘big mistake'

Hiring Michael Cohen was a “big mistake,” AT&T’s CEO told employees in an internal memo sent out Friday morning.

Randall Stephenson, the telecom giant’s top boss, characterized the unusual arrangement made with President Trump’s beleaguered personal lawyer as a “serious misjudgment,” but made sure to assure his workers that the deal was on the up-and-up.

“There is no other way to say it — AT&T hiring Michael Cohen as a political consultant was a big mistake,” Stephenson wrote. “To be clear, everything we did was done according to the law and entirely legitimate. But the fact is, our past association with Cohen was a serious misjudgment.”

Reuters first obtained a copy of the apologetic memo, which also noted that the company’s top lobbyist is stepping down.

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U.S. President Donald Trump's personal lawyer Michael Cohen exits a hotel in New York City, U.S., April 11, 2018. REUTERS/Brendan McDermid
Michael Cohen, personal attorney for U.S. President Donald Trump, arrives to appear before Senate Intelligence Committee staff as the panel investigates alleged Russian interference in the 2016 U.S. presidential election, on Capitol Hill in Washington, U.S. September 19, 2017. REUTERS/Jonathan Ernst
U.S. President Donald Trump's personal lawyer Michael Cohen drives after leaving his hotel in New York City, U.S., April 11, 2018. REUTERS/Brendan McDermid

Attorney Michael Cohen arrives at Trump Tower for meetings with President-elect Donald Trump on December 16, 2016 in New York.

(BRYAN R. SMITH/AFP/Getty Images)

Michael Cohen, personal attorney for U.S. President Donald Trump, talks to reporters as he departs after meeting with Senate Intelligence Committee staff as the panel investigates alleged Russian interference in the 2016 U.S. presidential election, on Capitol Hill in Washington, U.S. September 19, 2017. REUTERS/Jonathan Ernst

Retired Lt. Gen. Michael Flynn, President-elect Donald Trump's choice for National Security Advisor, Michael Cohen, executive vice president of the Trump Organization and special counsel to Donald Trump, and former Texas Governor Rick Perry talk with each other in the lobby at Trump Tower, December 12, 2016 in New York City. President-elect Donald Trump and his transition team are in the process of filling cabinet and other high level positions for the new administration.

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UNITED STATES - SEPTEMBER 19: Michael Cohen, center, a personal attorney for President Trump, leaves Hart Building after his meeting with the Senate Intelligence Committee to discuss Russian interference in the 2016 election was postponed on September 19, 2017. (Photo By Tom Williams/CQ Roll Call)

Attorney Michael Cohen arrives to Trump Tower for meetings with President-elect Donald Trump on December 16, 2016 in New York.

(BRYAN R. SMITH/AFP/Getty Images)

Michael Cohen, President Donald Trump's personal attorney arrives with his attorney, Stephen M. Ryan to speak with reporters after meeting with Senate Intelligence Committee staff on Capitol Hill in Washington, U.S., September 19, 2017. REUTERS/Aaron P. Bernstein

Retired Lieutenant General Michael Flynn, White House national security adviser-designate, from left, Michael Cohen, executive vice president of the Trump Organization and special counsel to Donald Trump, and Rick Perry, former governor of Texas, speak in the lobby of Trump Tower in New York, U.S., on Monday, Dec. 12, 2016. Senate Majority Leader Mitch McConnell said he had the 'highest confidence' in the intelligence community, in sharp contrast to President-elect Donald Trump's attack on the CIA after reports it found that the Russian government tried to help him win the presidency.

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Michael Cohen, President Donald Trump's personal attorney, looks on as his attorney (not pictured) delivers a statement to reporters after meeting with Senate Intelligence Committee staff on Capitol Hill in Washington, U.S., September 19, 2017. REUTERS/Aaron P. Bernstein

Attorney Michael Cohen arrives to Trump Tower for meetings with President-elect Donald Trump on December 16, 2016 in New York.

(BRYAN R. SMITH/AFP/Getty Images)

UNITED STATES - SEPTEMBER 19: Michael Cohen, center, a personal attorney for President Trump, leaves Hart Building after his meeting with the Senate Intelligence Committee to discuss Russian interference in the 2016 election was postponed on September 19, 2017. (Photo By Tom Williams/CQ Roll Call)
U.S. President Donald Trump's personal lawyer Michael Cohen exits a hotel in New York City, U.S., April 11, 2018. REUTERS/Brendan McDermid
U.S. President Donald Trump's personal lawyer Michael Cohen is pictured leaving a restaurant in the Manhattan borough of New York City, New York, U.S., April 10, 2018. REUTERS/Amir Levy
Michael Cohen, President Donald Trump's personal attorney, arrives with his attorney, Stephen M. Ryan, on Capitol Hill in Washington, U.S., October 25, 2017. REUTERS/Aaron P. Bernstein
U.S. President Donald Trump's personal lawyer Michael Cohen is pictured arriving at his hotel in the Manhattan borough of New York City, New York, U.S., April 10, 2018. REUTERS/Amir Levy
Michael Cohen, personal attorney for U.S. President Donald Trump, departs after meeting with Senate Intelligence Committee staff as the panel investigates alleged Russian interference in the 2016 U.S. presidential election, on Capitol Hill in Washington, U.S., September 19, 2017. REUTERS/Jonathan Ernst
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AT&T did not hire Cohen to lobby on behalf of the company, according to the memo.

The one-year contract at $50,000 per month, from January through December 2017, was limited to consulting and advising on a variety of matters, including a pending merger with Time Warner.

“Our Washington D.C. team’s vetting process clearly failed” with the Cohen arrangement, “and I take responsibility for that ... My personal commitment to you is — we will do better,” Stephenson wrote.

The company was one of several large corporations that were revealed this week to have paid Cohen for insight into the new President over the last two years.

Cohen’s consultation to AT&T was made public by Michael Avenatti, the lawyer for porn actress Stormy Daniels.

Trump and Cohen have admitted that Cohen paid Daniels $130,000 just before the election to buy her silence about an alleged affair with Trump in 2006.

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Adult-film actress Stephanie Clifford, also known as Stormy Daniels speaks to the media outside US Federal Court on April 16, 2018, in Lower Manhattan, New York. President Donald Trump's personal lawyer Michael Cohen has been under criminal investigation for months over his business dealings, and FBI agents last week raided his home, hotel room, office, a safety deposit box and seized two cellphones. Some of the documents reportedly relate to payments to porn star Stormy Daniels, who claims a one-night stand with Trump a decade ago, and ex Playboy model Karen McDougal who also claims an affair. / AFP PHOTO / HECTOR RETAMAL (Photo credit should read HECTOR RETAMAL/AFP/Getty Images)
U.S. President Donald Trump's personal lawyer Michael Cohen arrives at federal court in the Manhattan borough of New York City, New York, U.S., April 16, 2018. REUTERS/Mike Segar
Michael Avenatti, lawyer for adult film actress Stephanie Clifford, also known as Stormy Daniels, leaves federal court in the Manhattan borough of New York City, New York, U.S., April 16, 2018. REUTERS/Lucas Jackson
Michael Cohen's attorney Todd Harrison arrives at federal court in the Manhattan borough of New York City, New York, U.S., April 16, 2018. REUTERS/Mike Segar
U.S. President Donald Trump's personal lawyer Michael Cohen (centre) leaves federal court in the Manhattan borough of New York City, New York, U.S., April 16, 2018. REUTERS/Brendan Mcdermid
Adult film actress Stephanie Clifford, also known as Stormy Daniels speaks to media along with lawyer Michael Avenatti (R) outside federal court in the Manhattan borough of New York City, New York, U.S., April 16, 2018. REUTERS/Lucas Jackson
Michael Cohen's attorney Todd Harrison is pictured outside the Manhattan Federal Court in New York City, New York, U.S., April 13, 2018. REUTERS/Jeenah Moon
U.S. President Donald Trump's personal lawyer Michael Cohen exits a hotel in New York City, U.S., April 11, 2018. REUTERS/Brendan McDermid
Adult film actress Stephanie Clifford, also known as Stormy Daniels, speaks to media along with lawyer Michael Avenatti (R) outside federal court in the Manhattan borough of New York City, New York, U.S., April 16, 2018. REUTERS/Brendan Mcdermid
Attorney for Stormy Daniels, Michael Avenatti is pictured though a window as he arrives at federal court in the Manhattan borough of New York City, New York, U.S., April 16, 2018. REUTERS/Lucas Jackson
Adult-film actress Stormy Daniels and attorney Michael Avenatti arrive at Federal Court in New York, U.S., on Monday, April 16, 2018. Daniels claims she had sex with Donald Trump in 2006 and took a $130,000 hush payment shortly before the 2016 election from lawyer Michael Cohen. Photographer: Victor J. Blue/Bloomberg via Getty Images
President Trumps lawyer Michael Cohen exits the US Federal Court on April 16, 2018, in Lower Manhattan, New York. President Donald Trump's personal lawyer Michael Cohen has been under criminal investigation for months over his business dealings, and FBI agents last week raided his home, hotel room, office, a safety deposit box and seized two cellphones. Some of the documents reportedly relate to payments to porn star Stormy Daniels, who claims a one-night stand with Trump a decade ago, and ex Playboy model Karen McDougal who also claims an affair. / AFP PHOTO / EDUARDO MUNOZ ALVAREZ (Photo credit should read EDUARDO MUNOZ ALVAREZ/AFP/Getty Images)
Adult-film actress Stephanie Clifford, (C) also known as Stormy Daniels arrives for a court hearing at the US Courthouse in New York on April 16, 2018. President Donald Trump's personal lawyer Michael Cohen has been under criminal investigation for months over his business dealings, and FBI agents last week raided his home, hotel room, office, a safety deposit box and seized two cellphones. / AFP PHOTO / Hector RETAMAL (Photo credit should read HECTOR RETAMAL/AFP/Getty Images)
Attorney for Stormy Daniels, Michael Avenatti(C), arrives for a court hearing at the US Courthouse in New York on April 16, 2018. President Donald Trump's personal lawyer Michael Cohen has been under criminal investigation for months over his business dealings, and FBI agents last week raided his home, hotel room, office, a safety deposit box and seized two cellphones. / AFP PHOTO / HECTOR RETAMAL (Photo credit should read HECTOR RETAMAL/AFP/Getty Images)
NEW YORK, NY - APRIL 13: Michael Avenatti (R), attorney for Stormy Daniels, arrives for a court proceeding regarding the search warrants served on President Donald Trump's longtime personal attorney Michael Cohen, at the United States District Court Southern District of New York, April 13, 2018 in New York City. Cohen and his lawyers are asking the court to block Justice Department officials from reading documents and materials related to his relationship with President Donald Trump that they believe should be protected by attorney-client privilege. Officials with the FBI, armed with a search warrant, raided Cohen's office and two private residences earlier in the week. (Photo by Drew Angerer/Getty Images)
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The payment to Daniels was made through Cohen’s shadowy shell firm, Essential Consultants, which was also paid by his corporate clients.

On Tuesday, pharmaceutical giant Novartis revealed that it paid Cohen $1.2 million over a year, despite only meeting with the Trump acolyte once.

Novartis CEO Vasant Narasimhan told employees in an internal memo Thursday that “we made a mistake” in entering a contract with Cohen for guidance “as to how the Trump administration might approach certain U.S. health care policy matters.”

Both companies have said that they were contacted by special counsel Robert Mueller regarding their work with Cohen.

Mueller is investigating Russian election meddling and potential coordination between the Trump campaign and the Kremlin.

Cohen’s office, home and hotel room were raided by FBI agents last month. Investigators seized business records, emails and other documents, some related to the Daniels payoff. That probe, being led by the Southern District of New York, is separate from Mueller’s investigation.

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