Donald Trump's $130,000 payment to Stormy Daniels was flagged as suspicious and sent to Treasury Department

The adult star and President Trump had an alleged affair, shortly after the First Lady gave birth to his youngest son Barron Trump. Daniels was reportedly paid hush money of $130,000 by the Republican's private lawyer.

The payment of $130,000 paid by President Donald Trump's lawyer, Michael Cohen, to adult-film star Stormy Daniels was reportedly flagged as suspicious and was even reported to the Treasury Department, according to a Wall Street Journal report on Monday.

Reports state that the adult star and President Trump had an alleged affair, shortly after the First Lady gave birth to his youngest son Baron Trump. The speculations of the alleged affair between the president and the adult star were rife after the Wall Street Journal, on January 12, reported that one of Trump's lawyers had arranged a $130,000 payment for Daniels to keep quiet about the duo's alleged affair.

Trump's personal lawyer Michael Cohen said that he has not been reimbursed by Trump for the payment he made. (Getty Image)

Cohen reportedly sent the money through an account he created with First Republic Bank. Daniels, whose real name is Stephanie Clifford, received the money under the pseudonym Peggy Peterson, the report stated. 

Cohen, last month, had said that he made the payment to Daniels out of his own pocket. The Journal report stated that people familiar with the matter said that the lawyer later complained to his friends saying that he had not been reimbursed for the money he sent to Daniels.

The Journal source also stated that Cohen had missed at least two deadlines to pay the adult star earlier in October 2016, a week before the 2016 presidential elections because he could not contact Trump at the time.

When reporters asked the White House press secretary Sarah Huckabee Sanders whether Cohen talked to trump about the money paid to Daniels, Sanders responded with: "Not that I'm aware of, and I'd refer you to Michael [Cohen]."

Relations between President Donald Trump and First Lady Melania Trump are reportedly worsening because of the alleged Daniel affair.

The Journal report stated that the payment was received at City National Bank in Los Angeles on Oct. 27, 2016. Reports state that the bank found the payment suspicious and initiated an inquiry into it a year after it arrived. 

"As a matter of policy, we don't confirm or comment on inquiries from regulatory agencies or law enforcement, including subpoenas," City National told CNBC.

Cohen, who joined the Republican National Committee (RNC) as national deputy finance chairman, responded to CNBC's request for comment with an emailed statement reading: "Fake News."

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