Mr Avenatti, who claimed that Daniels was paid $130,000 in "hush money" by Mr Cohen, reported that Suspicious Activity Reports filed by Mr Cohen's bank to the US Treasury showed he had received money from "Ukrainian interests".
Cohen is reportedly under criminal investigation in the USA for bank fraud and campaign finance law violations, among other things.
Freidman, the chief executive officer of Taxi Club Management dubbed the "taxi king" of New York City, pleaded guilty before Judge Peter Lynch to resolve allegations he stole more than $5 million from the state and evaded taxes.
Nonetheless, Mr. Freidman's agreement to cooperate in his tax fraud case in Albany could have larger implications. He declared bankruptcy on some of his medallions in 2016 and past year was charged by the NY state attorney general with theft. This eventually led to Michael Cohen, the president's lawyer and trusted fixer.
He moved into Trump Park Avenue, where Cohen and Ivanka Trump and Jared Kushner lived. "Friedman pocketed money that should have provided much-needed investment in our transit system and he'll now have to pay back every cent".
Last year, Freidman was charged with four counts of tax fraud and one count of grand larceny for failing to collect more than $5 million in 50-cent fare surcharges meant to help fund mass transit. And he's going to be put on probation for about five years because of the plea deal that he made.More news: Woman detained after feces flinging incident at Langley Tim Hortons
Cohen took to Twitter Wednesday morning to distance himself from the "Taxi King".
Cohen is facing some legal troubles of his own.
Last month, Bloomberg reported that Cohen, a significant operator in the taxi business, had more than $185,000 in new state warrants for unpaid taxes on his taxi companies.
In a text message to a reporter for the New York Daily News, Friedman denied he flipped on his friend in exchange for leniency.
However, the meeting was in doubt even as Poroshenko was en route to the USA, infuriating Ukranian officials that Cohen took the money, reportedly as high as $600,000, despite not being able to make good on his promise, the BBC reports. "'Gene Freidman and I are not partners and have never been partners in this business or any other.' #MediaWrongAgain".
Sources in Ukraine told the BBC that Poroshenko believed that Trump's Democratic rival, Hillary Clinton, would win the US presidency, and had authorized the leak of a document that was published by The New York Times in August 2016. Together they managed Cohen's 32 taxi medallions.