WEBVTT - Implications of Mark Meadows Getting Immunity

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<v Speaker 1>This is Bloomberg Law with June Brusso from Bloomberg Radio.

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<v Speaker 1>Mark Meadows, listen, I did this for seven years. As

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<v Speaker 1>you guys know, you do not give.

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<v Speaker 2>Immunity complete immunity.

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<v Speaker 1>It's a former White House chief of staff unless he's got.

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<v Speaker 3>Information that is devastating and that you couldn't get any

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<v Speaker 3>other way.

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<v Speaker 1>Donald Trump is a huge trouble. Chris Christy, the former

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<v Speaker 1>US Attorney for New Jersey and a current presidential candidate,

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<v Speaker 1>was blunt about the news that Mark Meadows, the final

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<v Speaker 1>chief of staff to Donald Trump, was given immunity from

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<v Speaker 1>prosecution by the Special Council in the election interference case

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<v Speaker 1>against the former president. According to Bloomberg sources, Meadows testified

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<v Speaker 1>before the DC Grand Jury that he repeatedly told Trump

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<v Speaker 1>in the weeks following the conclusion of the twenty twenty

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<v Speaker 1>election that claims of election fraud were baseless. Trump denies

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<v Speaker 1>that because I've spoken to Mark Medos many many times

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<v Speaker 1>over the years, and he strongly believed the election was rigged.

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<v Speaker 2>Now, of course, you know, deranged Jack Smith and the

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<v Speaker 2>prosecutors and go after somebody for years and they say, look,

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<v Speaker 2>here's the story. We'll give you nothing will erect a

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<v Speaker 2>statute to you, or you're going to go to jail

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<v Speaker 2>for ten years but having done nothing wrong. So you know,

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<v Speaker 2>a lot of people have to make that decision. Some

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<v Speaker 2>people would never make that decision, other people would.

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<v Speaker 1>Joining me is former federal prosecutor Robert Mentz, a partner

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<v Speaker 1>McCarter and English Bob. There are different kinds of immunity.

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<v Speaker 1>What kind does Meadows reportedly have?

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<v Speaker 4>Based upon report? Mark Meadows, former President Donald Trump's final

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<v Speaker 4>chief of staff, has spoken with Special Counsel Jack Smith's

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<v Speaker 4>team at least three times and reportedly has testified before

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<v Speaker 4>the federal grand jury. That only came after Meadows was

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<v Speaker 4>granted immunity to testify under oath. In this case, there's

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<v Speaker 4>two types of immunity. There's use community and transactional immunity. Reportedly,

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<v Speaker 4>mister Meadows was given use community, which protects him from

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<v Speaker 4>any statements he makes to the grand jury or information

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<v Speaker 4>derived from those statements. So what that means effectively is

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<v Speaker 4>that prosecutors can't use those statements and can't use information

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<v Speaker 4>derived from those statements in a prosecution against them in

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<v Speaker 4>the future. As a practical matter, it is very difficult

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<v Speaker 4>for prosecutors to pursue a criminal case against somebody, even

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<v Speaker 4>if they've only been given this use community, because they

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<v Speaker 4>would have to show that they brought these charges based

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<v Speaker 4>not upon the statements and not derived from those statements

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<v Speaker 4>in order to make a successful case. So they would

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<v Speaker 4>have to show that there's some kind of independent source

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<v Speaker 4>for the evidence that they use to charge somebody. As

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<v Speaker 4>a practical matter, what that means is, once somebody's given

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<v Speaker 4>use community, it effectively means that prosecutors have decided not

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<v Speaker 4>to charge them with a criminal offense related to that testimony.

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<v Speaker 1>Former New Jersey US Attorney Christie has said that as

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<v Speaker 1>a prosecutor, you don't give immunity to someone like Mark Meadows,

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<v Speaker 1>the former chief of staff, unless he has some devastating

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<v Speaker 1>evidence against Trump. Do you agree with that in this case.

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<v Speaker 4>Well, there's a couple of reasons you'd want to give

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<v Speaker 4>somebody immunity. One of them is because that you do

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<v Speaker 4>believe they have valuable evidence and you're willing to essentially

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<v Speaker 4>immunize them from prosecution in exchange for the testimony they're

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<v Speaker 4>about to give. But there are also some other reasons why

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<v Speaker 4>you would give immunity, And one of them is to

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<v Speaker 4>lock in that testimony of that witness. So what would

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<v Speaker 4>have happened if they had not given immunity to Mark

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<v Speaker 4>Meadows is he would have gone before the grand jury

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<v Speaker 4>and he would have asserted his Fifth Amendment right against

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<v Speaker 4>self incrimination and refuse to answer questions that would leave

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<v Speaker 4>prosecutors not knowing what he might stay at a trial

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<v Speaker 4>down the road. By giving him immunity, they essentially forced

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<v Speaker 4>him to testify because he could no longer rely on

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<v Speaker 4>that Fifth Amendment right, and it forced him to go

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<v Speaker 4>on the record under oath with his statements about everything

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<v Speaker 4>the prosecutor asked him about related to January sixth, the

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<v Speaker 4>events around the January sixth and efforts to overturn the

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<v Speaker 4>twenty twenty election.

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<v Speaker 1>I mean, it does seem like Meadows has a lot

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<v Speaker 1>to talk about. He was in this really unique position

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<v Speaker 1>by Trump's side, seemingly a central player in efforts to

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<v Speaker 1>overturn the election. So all those meetings we heard about

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<v Speaker 1>inside the White House in the run up to January sixth,

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<v Speaker 1>he was privy to.

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<v Speaker 4>He certainly was a central figure. As you say, The

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<v Speaker 4>January sixth Committee report placed him in the thick of

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<v Speaker 4>a series of key meetings and actions inside the White

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<v Speaker 4>House during the run up to the US capital attack.

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<v Speaker 4>He was also on that infamous call with the Georgia

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<v Speaker 4>Secretary of State where Trump said, find me eleven thou

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<v Speaker 4>seven hundred and eighty votes. So he is on the

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<v Speaker 4>inside of many of the most controversial and critical aspects

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<v Speaker 4>of the case that prosecutors are pursuing in federal court

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<v Speaker 4>in Washington.

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<v Speaker 1>Now, one thing may cut against the importance of his testimony.

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<v Speaker 1>ABC News reported that investigators specifically asked Meadows if Trump

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<v Speaker 1>ever acknowledged to him that he lost the election, and

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<v Speaker 1>Medows told investigators that he never heard Trump say that.

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<v Speaker 1>Does that missing element make his testimony a little less

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<v Speaker 1>valuable to prosecutors?

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<v Speaker 3>Well, that's a.

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<v Speaker 4>Great question, is and we really don't know how valuable

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<v Speaker 4>Mark Metow's testimony might be. It's hard to stay because

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<v Speaker 4>we don't know exactly what he said. But we can

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<v Speaker 4>surmise from his prior statements and from the information that

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<v Speaker 4>we are getting from news sources, that he is contradicting

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<v Speaker 4>President Trump's statements immediately after the election, and he is

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<v Speaker 4>interestingly contradicting his own statements in a book that he

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<v Speaker 4>wrote shortly after the election, in which he's supported the

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<v Speaker 4>allegation that there were improprieties and irregularities connected to the

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<v Speaker 4>twenty twenty election. According to reports, now he has backtracked

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<v Speaker 4>and reversed his position on that and acknowledged that there

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<v Speaker 4>was no credible evidence that there was any tampering or

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<v Speaker 4>illegality associated with the twenty twenty election that would have

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<v Speaker 4>overturned the election results, and that he said as much

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<v Speaker 4>to former President Trump. That goes to the heart of

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<v Speaker 4>the Trump defense, which is the president's state of mind

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<v Speaker 4>when he decided to pursue these attacks on the twenty

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<v Speaker 4>twenty election results.

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<v Speaker 1>Meadows took public stances that the election was stolen. As

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<v Speaker 1>you said in his book, he said the election was

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<v Speaker 1>stolen and rigged. So how much credibility will he have

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<v Speaker 1>before a jury when now he's saying, no, I lied,

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<v Speaker 1>or words to that effect.

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<v Speaker 4>Well, that's the problem the prosecutors frequently faced with people

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<v Speaker 4>who cooperate with him. It's not unusual for a witness

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<v Speaker 4>who have testified and who have made statements saying one thing,

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<v Speaker 4>and then when it comes to trial, they now reverse

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<v Speaker 4>their position, and ultimately the credibility of the witness depends

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<v Speaker 4>upon how they can explain the change in their position.

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<v Speaker 4>In this case, the statements that were made in the

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<v Speaker 4>book were obviously not under oath. When he was finally

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<v Speaker 4>placed under oath, or perhaps forced to be placed under

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<v Speaker 4>oaths because of the immunity deal, he told the truth.

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<v Speaker 4>That's what prosecutors are going to argue.

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<v Speaker 1>It seems a little different, though, because he memorialized these

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<v Speaker 1>lies in a published book, and I'm sure the defense

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<v Speaker 1>is going to read from pertinent parts of that book

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<v Speaker 1>if he takes the stand.

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<v Speaker 4>Yeah, I mean, that makes him a flawed witness for sure.

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<v Speaker 4>And he has gone on records having said that he

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<v Speaker 4>believes much of what Trump has said regarding the election.

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<v Speaker 4>Now he's changing course here and saying he didn't believe

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<v Speaker 4>it at all. That's something the prosecutors will have to

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<v Speaker 4>address if they decide to use him as a key

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<v Speaker 4>witness in the federal trial.

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<v Speaker 1>And Bob, will you explain the importance to the prosecution

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<v Speaker 1>of the reporting that Meadows said he repeatedly told Trump

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<v Speaker 1>in the weeks following the twenty twenty election that claims

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<v Speaker 1>of election fraud were baseless.

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<v Speaker 4>If that's true, that could bolster the prostitution's case that

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<v Speaker 4>Trump pushed to reverse his defeat knowing that that was

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<v Speaker 4>not true. At the end of the day, the case

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<v Speaker 4>turns on what's called the men's rea, or the corrupt

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<v Speaker 4>intent of former President Trump. Prosecutors have to prove that

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<v Speaker 4>he knew when he pushed these fake electors and these

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<v Speaker 4>allegations of tampering with the election, that he knew that

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<v Speaker 4>it was not true at the time. And if it's

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<v Speaker 4>true that Mark Meadows repeatedly told him that it was

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<v Speaker 4>not true, that helps get to this question of state

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<v Speaker 4>of mind. The real question is is it reasonable? Is

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<v Speaker 4>it believable that former President Trump did not believe that

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<v Speaker 4>he lost that election. That requires the jury to get

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<v Speaker 4>into the mind of the defendant to try to understand

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<v Speaker 4>what he was thinking. And the only way to do

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<v Speaker 4>that is to show circumstantially by witness testimony what he

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<v Speaker 4>was told at the time and what he may have

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<v Speaker 4>said in response to others telling him that the election

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<v Speaker 4>was lost.

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<v Speaker 1>Meadows was not among the six unindicted co conspirators described

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<v Speaker 1>in the August indictment returned against Trump. Does that indicate

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<v Speaker 1>that prosecutors at that point knew that he was going

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<v Speaker 1>to cooperate or targeted him as a cooperator.

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<v Speaker 4>There's long been speculation about whether Mark Meadows was actually

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<v Speaker 4>cooperating with federal prosecutors, because, if you remember, the Department

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<v Speaker 4>of Justice declined to prosecute him for refusing to comply

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<v Speaker 4>with his subpoenas to turnover documents to the Congressional committee

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<v Speaker 4>investigating the January sixth, twenty twenty one attack on the

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<v Speaker 4>US Capitol. Others were prosecuted for their failure to cooperate,

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<v Speaker 4>he was not, and so there has long been questions

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<v Speaker 4>about whether mister Meadows was cooperating with federal prosecutors. And

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<v Speaker 4>now that he has struck this immunity deal allegedly, that

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<v Speaker 4>only adds further fear fuel to that speculation.

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<v Speaker 1>Coming up next, we'll take a look at the barrage

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<v Speaker 1>of arguments Trump is making to try to get the

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<v Speaker 1>DC judge to dismiss the election interference case against him.

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<v Speaker 1>I'm June Grosso, and you're listening to Bloomberg. This is

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<v Speaker 1>Bloomberg Law with June Grosso from Bloomberg Radio. Stunny News

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<v Speaker 1>this week that Mark Meadows, the final chief of staff

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<v Speaker 1>to Donald Trump, has been given immunity from prosecution in

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<v Speaker 1>the election interference case against the former president, and has

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<v Speaker 1>testified before a DC grand jury hearing evidence in the case.

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<v Speaker 1>According to Bloomberg's sources, in his testimony before the grand jury,

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<v Speaker 1>Meadows said he repeatedly told Trump that claims of election

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<v Speaker 1>fraud in the twenty twenty presidential election were baseless. Trump

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<v Speaker 1>has denied that on truth Social saying, quote, Mark Meadows

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<v Speaker 1>never told me that allegations of significant fraud about the

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<v Speaker 1>rigged election we're baseless. The former president also addressed that

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<v Speaker 1>during a break in the Manhattan trial where his business

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<v Speaker 1>empire is at stake.

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<v Speaker 2>But Mark Medo has always felt it was radio. His

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<v Speaker 2>whole thing was rigged, and it was still element.

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<v Speaker 1>I've been talking to former federal prosecutor Robert Mintz of

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<v Speaker 1>McCarter and English. So, as you say, as part of

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<v Speaker 1>the immunity deal, the evidence Meadows gives can't be used

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<v Speaker 1>against him in a federal prosecution, But what about in

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<v Speaker 1>the Georgia prosecution where he's a co defendant.

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<v Speaker 4>That's an excellent point, because the immunity deal that he

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<v Speaker 4>has from the federal prosecutors only protects him from federal

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<v Speaker 4>prosecutors using those statement in a federal prosecution does not

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<v Speaker 4>protect them from the state prosecution that is ongoing in Georgia,

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<v Speaker 4>where he has charged as the defendant in a rico

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<v Speaker 4>conspiracy to overturn the election. So it suggests to me

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<v Speaker 4>that at some point he may also strike a deal

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<v Speaker 4>to plead guilty in the case in Georgia, although that

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<v Speaker 4>has not yet happened.

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<v Speaker 1>If you were his lawyer, would you allow him to

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<v Speaker 1>give evidence in a federal case, you know, when he

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<v Speaker 1>has jeopardy in a state case.

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<v Speaker 4>Meadows was not indicted in the federal case in Washington

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<v Speaker 4>that's set to go to trial in March, but he

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<v Speaker 4>was charged alongside former President Trump and other top allies

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<v Speaker 4>in the Fulton County District Attorney case being Georgia. There

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<v Speaker 4>he was charged on rico conspiracy charges for trying to

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<v Speaker 4>overturn the twenty twenty election results. And the interesting development

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<v Speaker 4>here is by striking this immunity deal and being forced

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<v Speaker 4>to give testimony in the federal case, will those statements

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<v Speaker 4>ultimately used against them in the case in Georgia. Under

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<v Speaker 4>the law, there's nothing that ties the DA's handing Georgia

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<v Speaker 4>to not use that information. Federal prosecutors can be willing

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<v Speaker 4>to give up prosecution of mister Meadows in a federal

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<v Speaker 4>case and agree not to use his statements in any

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<v Speaker 4>federal prosecution, but they cannot bar the DA in Georgia

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<v Speaker 4>from using those statements.

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<v Speaker 1>Are you surprised that so many people are flipping on

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<v Speaker 1>Donald Trump? We have Mark Meadows, we have four people

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<v Speaker 1>in Georgia, including three attorneys, and CNN is reporting that

0:13:10.960 --> 0:13:14.199
<v Speaker 1>the Georgia DA is talking to six other defendants.

0:13:15.080 --> 0:13:17.559
<v Speaker 4>Well, again, just to be clear, we don't know whether

0:13:17.640 --> 0:13:21.240
<v Speaker 4>Mark Meadows has actually become a cooperator with federal prosecutors.

0:13:21.440 --> 0:13:25.160
<v Speaker 4>Maybe that he did, but we can't necessarily make that

0:13:25.280 --> 0:13:28.280
<v Speaker 4>conclusion based upon the information we have. We just know

0:13:28.360 --> 0:13:31.120
<v Speaker 4>that he's been given immunity and he's given testimony. We'll

0:13:31.120 --> 0:13:33.240
<v Speaker 4>have to see where that case goes. But we do

0:13:33.360 --> 0:13:36.600
<v Speaker 4>know that other individuals in the Georgia case have pled

0:13:36.640 --> 0:13:39.160
<v Speaker 4>guilty and have agreed to cooperate, and that's always a

0:13:39.160 --> 0:13:41.880
<v Speaker 4>bad sign for the defense. You always want a united

0:13:41.960 --> 0:13:44.800
<v Speaker 4>front as a defendant. In this case, it was particularly

0:13:44.920 --> 0:13:47.960
<v Speaker 4>useful for the Trump team to have a case go

0:13:48.080 --> 0:13:51.680
<v Speaker 4>to trial before former President Trump went to trial in Georgia.

0:13:51.880 --> 0:13:54.720
<v Speaker 4>That would have given him a preview of the state's case.

0:13:54.960 --> 0:13:57.400
<v Speaker 4>It would have allowed them to hear the testimony from

0:13:57.400 --> 0:14:00.719
<v Speaker 4>the state's witnesses, had to use that testimony later on

0:14:00.840 --> 0:14:03.720
<v Speaker 4>in a case against former President Trump when all these

0:14:03.720 --> 0:14:06.400
<v Speaker 4>defendants decide to plead guilty rather than go to trial.

0:14:06.480 --> 0:14:09.320
<v Speaker 4>It's the prive defense of that advantage.

0:14:09.720 --> 0:14:14.320
<v Speaker 1>Turning away from Mark Meadows, on Monday, Trump rolled out

0:14:14.360 --> 0:14:18.760
<v Speaker 1>a new multi pronged attack in the federal election obstruction case,

0:14:19.440 --> 0:14:25.160
<v Speaker 1>making arguments based on claims of presidential immunity, selective prosecution,

0:14:25.680 --> 0:14:30.360
<v Speaker 1>the First Amendment, do process, and more. Judge Tanya Chutkin

0:14:30.520 --> 0:14:33.160
<v Speaker 1>to throw out the case against him, which is schedule

0:14:33.280 --> 0:14:36.040
<v Speaker 1>to begin on March fourth. Do any of the arguments

0:14:36.080 --> 0:14:37.560
<v Speaker 1>seem like winners to you.

0:14:38.080 --> 0:14:42.480
<v Speaker 4>We've seen former President Trump lawyers unleasha barrage of defenses

0:14:42.840 --> 0:14:44.960
<v Speaker 4>in the federal case that's set to go to trial

0:14:45.000 --> 0:14:48.520
<v Speaker 4>in March. They have argued a number of defenses. I

0:14:48.560 --> 0:14:51.320
<v Speaker 4>don't think any of them are likely to succeed before

0:14:51.360 --> 0:14:54.800
<v Speaker 4>this judge. One of them is presidential immunity. We've seen

0:14:54.800 --> 0:14:58.080
<v Speaker 4>that argument made time and again. Essentially, what the Trump

0:14:58.120 --> 0:15:01.440
<v Speaker 4>team is claiming is that former President Trump has immunity

0:15:01.480 --> 0:15:05.480
<v Speaker 4>against charges for conduct that falls within what's called the

0:15:05.520 --> 0:15:09.360
<v Speaker 4>outer perimeter of his presidential duties. The US Supreme Court

0:15:09.400 --> 0:15:12.400
<v Speaker 4>adopted that standard a long time ago to protect current

0:15:12.520 --> 0:15:16.440
<v Speaker 4>and former presidents against civil lawsuits, but it's an open

0:15:16.520 --> 0:15:20.480
<v Speaker 4>question about how that is affected by criminal prosecutions. The

0:15:20.480 --> 0:15:24.640
<v Speaker 4>Trump lawyers argue that a strong shield is necessary to

0:15:24.720 --> 0:15:28.160
<v Speaker 4>empower presidents to make decisions in office without worrying about

0:15:28.200 --> 0:15:32.760
<v Speaker 4>threats of future charges from political rivals. Prosecutors argue there's

0:15:32.760 --> 0:15:35.640
<v Speaker 4>no support of position in the Constitution or in any

0:15:35.680 --> 0:15:38.640
<v Speaker 4>Supreme Court president, and they say it should be harder,

0:15:39.080 --> 0:15:42.280
<v Speaker 4>not easier, for current and former office holders to claim

0:15:42.360 --> 0:15:45.960
<v Speaker 4>criminal immunity because those prosecutions are meant to protect the

0:15:46.000 --> 0:15:49.200
<v Speaker 4>interests of the public, not private parties. So we're in

0:15:49.280 --> 0:15:53.120
<v Speaker 4>uncharted ordered once again with this argument, because we've never

0:15:53.160 --> 0:15:56.000
<v Speaker 4>had a circumstance where a president was attempting to claim

0:15:56.080 --> 0:15:58.280
<v Speaker 4>immunity from a criminal prosecution.

0:15:58.720 --> 0:16:02.160
<v Speaker 1>You know, Selective prosecution is another one of the arguments

0:16:02.200 --> 0:16:06.080
<v Speaker 1>they're making, and he's used that before, for example in

0:16:06.120 --> 0:16:09.440
<v Speaker 1>the New York Attorney General civil case against him. And

0:16:09.480 --> 0:16:12.360
<v Speaker 1>listen to what he said outside the courtroom. This is a.

0:16:12.360 --> 0:16:15.720
<v Speaker 5>Railroad, and it's all coming out of the Department of Justice.

0:16:15.800 --> 0:16:18.680
<v Speaker 5>It's all set up by Biden and his thubs that

0:16:18.760 --> 0:16:22.080
<v Speaker 5>he's surrounded with to try and stick out an election

0:16:22.280 --> 0:16:25.000
<v Speaker 5>victory that he's not entitled to win because he's been

0:16:25.000 --> 0:16:28.400
<v Speaker 5>the worst president in the history of our country.

0:16:28.680 --> 0:16:31.800
<v Speaker 4>Well, I think we're seeing the selective prosecution argument coming

0:16:31.840 --> 0:16:34.920
<v Speaker 4>out again and again because it serves two purposes. One,

0:16:35.040 --> 0:16:37.280
<v Speaker 4>it is a legal argument that they can make, albeit

0:16:37.400 --> 0:16:40.000
<v Speaker 4>one that's very difficult to prove. But I also think

0:16:40.040 --> 0:16:43.600
<v Speaker 4>it plays to the larger attempt by the Trump defense

0:16:43.680 --> 0:16:47.400
<v Speaker 4>team to sell this case and to sell the defense

0:16:47.720 --> 0:16:51.120
<v Speaker 4>to the public at lawrence. The selective prosecution argument is

0:16:51.200 --> 0:16:55.600
<v Speaker 4>essentially the argument that former President Trump is being treated unfairly,

0:16:55.600 --> 0:16:58.920
<v Speaker 4>that he's being singled out by an allegedly corrupt Department

0:16:58.960 --> 0:17:02.600
<v Speaker 4>of Justice, and that President Biden is behind all of

0:17:02.640 --> 0:17:06.040
<v Speaker 4>these prosecutions in order to try to eliminate his chief

0:17:06.160 --> 0:17:09.399
<v Speaker 4>rival in the upcoming election. But the reality is that

0:17:09.440 --> 0:17:13.320
<v Speaker 4>these selective prosecutions from a legal standpoint, are exceedingly difficult

0:17:13.600 --> 0:17:16.920
<v Speaker 4>to win. People make these arguments all the time. For example,

0:17:17.119 --> 0:17:20.080
<v Speaker 4>if you're driving down the highway and you're in a

0:17:20.119 --> 0:17:22.280
<v Speaker 4>group of ten cars that are all speeding. You get

0:17:22.359 --> 0:17:25.000
<v Speaker 4>pulled over, you could turn around and say, why am

0:17:25.040 --> 0:17:27.080
<v Speaker 4>I being pulled over when the nine other people were

0:17:27.080 --> 0:17:29.480
<v Speaker 4>doing exactly what I was doing and none of them

0:17:29.600 --> 0:17:33.239
<v Speaker 4>are being prosecuted for speeding. The reality is that in

0:17:33.359 --> 0:17:36.359
<v Speaker 4>order for that defense have any merits, you have to

0:17:36.400 --> 0:17:39.159
<v Speaker 4>show not only that you're singled out, but that you

0:17:39.200 --> 0:17:43.520
<v Speaker 4>were singled out for some discriminatory or unconstitutional reason. Here

0:17:43.560 --> 0:17:46.199
<v Speaker 4>that's going to be very difficult to prove. Essentially, the

0:17:46.240 --> 0:17:49.800
<v Speaker 4>defense would have to prove that there's a political motive

0:17:49.880 --> 0:17:53.760
<v Speaker 4>for all of these prosecutions, and that President Biden is

0:17:53.800 --> 0:17:57.120
<v Speaker 4>somehow behind these prosecutions. That's an argument we've heard over

0:17:57.160 --> 0:17:59.639
<v Speaker 4>and over again, but not one that is likely to

0:17:59.680 --> 0:18:01.639
<v Speaker 4>be well received by this judge.

0:18:01.880 --> 0:18:06.359
<v Speaker 1>Well, Special Counsel Jacksmith's office already filed its opposition to

0:18:06.440 --> 0:18:10.320
<v Speaker 1>Trump's presidential immunity claim, and they're going to have two

0:18:10.359 --> 0:18:14.760
<v Speaker 1>weeks to respond to this latest round of challenges. Thanks

0:18:14.760 --> 0:18:18.359
<v Speaker 1>so much, Bob. That's former federal prosecutor Robert Mintz, a

0:18:18.440 --> 0:18:22.480
<v Speaker 1>partner Maccarter and English Sam Bankman. Freed came to court

0:18:22.520 --> 0:18:25.920
<v Speaker 1>today prepared to take the stand and defend his actions

0:18:25.920 --> 0:18:28.040
<v Speaker 1>in the lead up to the collapse of his digital

0:18:28.040 --> 0:18:31.359
<v Speaker 1>asset Empire. To the jury, it's always risky for a

0:18:31.400 --> 0:18:33.720
<v Speaker 1>defend and to take the stand, but it may have

0:18:33.800 --> 0:18:37.560
<v Speaker 1>been Bankman Freed's only play after taking a beating from

0:18:37.680 --> 0:18:41.080
<v Speaker 1>former colleagues who described him as the mastermind of a

0:18:41.200 --> 0:18:45.720
<v Speaker 1>year's long scheme to defraud FTX customers and investors. But

0:18:45.880 --> 0:18:49.879
<v Speaker 1>instead of testifying to the jury, Bankman Freed spent three

0:18:49.920 --> 0:18:54.480
<v Speaker 1>hours testifying to Judge Lewis Kaplan, trying to convince the

0:18:54.600 --> 0:18:57.960
<v Speaker 1>judge to allow him to testify to the jury about

0:18:57.960 --> 0:19:01.159
<v Speaker 1>the role FTX lawyer's play in the lead up to

0:19:01.200 --> 0:19:04.920
<v Speaker 1>the collapse of the crypto exchange and the alleged mismanagement

0:19:05.040 --> 0:19:08.520
<v Speaker 1>of customer funds. Joining me is Bloomberg Legal reporter Bob

0:19:08.640 --> 0:19:12.200
<v Speaker 1>van Vores, who was in the courtroom today to see

0:19:12.200 --> 0:19:17.520
<v Speaker 1>this testimony before the testimony. So, Bob, did Bankmin Freed

0:19:17.600 --> 0:19:20.359
<v Speaker 1>give any testimony before the jury today?

0:19:21.080 --> 0:19:22.919
<v Speaker 3>Not in front of the jury. That's the thing. He

0:19:23.000 --> 0:19:26.080
<v Speaker 3>spent the entire afternoon on the stand, but he was

0:19:26.160 --> 0:19:30.320
<v Speaker 3>previewing testimony that he wants to give relating to advice

0:19:30.400 --> 0:19:34.080
<v Speaker 3>that he got from lawyers. So Judge Kaplan is listened

0:19:34.119 --> 0:19:36.040
<v Speaker 3>to the testimony, he's going to rule in the morning.

0:19:36.600 --> 0:19:38.840
<v Speaker 3>What the jury gets to hear they got sent home

0:19:38.880 --> 0:19:39.560
<v Speaker 3>after lunch.

0:19:40.160 --> 0:19:43.840
<v Speaker 1>This is something advice of counsel that the judge nixt

0:19:44.160 --> 0:19:47.879
<v Speaker 1>stopped the defense from using at the beginning of the

0:19:47.920 --> 0:19:49.719
<v Speaker 1>trial in the opening statements.

0:19:50.160 --> 0:19:52.680
<v Speaker 3>Well, yeah, that's the thing. The judge said that they

0:19:52.680 --> 0:19:54.800
<v Speaker 3>couldn't bring it up in the opening statement, but that

0:19:55.000 --> 0:19:56.639
<v Speaker 3>you know, when it came to the trial, when it

0:19:56.680 --> 0:19:59.200
<v Speaker 3>came to actual questions, he'd rule on a case by

0:19:59.240 --> 0:20:03.199
<v Speaker 3>case basis. So he told the parties that, you know,

0:20:03.440 --> 0:20:07.439
<v Speaker 3>rather than rule on objections after objections when they come up,

0:20:07.760 --> 0:20:11.400
<v Speaker 3>he would listen to banquin free testimony and let them

0:20:11.440 --> 0:20:14.159
<v Speaker 3>know what was okay and what was not okay, not

0:20:14.320 --> 0:20:18.680
<v Speaker 3>basically what was addressed rehearsal for his testimony, So tell

0:20:18.760 --> 0:20:19.080
<v Speaker 3>us what.

0:20:19.080 --> 0:20:21.720
<v Speaker 1>He testified to some of the areas he testified to.

0:20:22.119 --> 0:20:25.800
<v Speaker 3>So he got up and was asked on direct basically

0:20:26.160 --> 0:20:29.840
<v Speaker 3>about particular transactions that were problematic that were part of

0:20:29.880 --> 0:20:33.680
<v Speaker 3>the charges of the case. And you know, did lawyers

0:20:33.760 --> 0:20:37.639
<v Speaker 3>advise him on that these included There was testimony early

0:20:37.680 --> 0:20:41.400
<v Speaker 3>in the trial about how he told people to put

0:20:41.440 --> 0:20:46.679
<v Speaker 3>their communications on auditorily so that communications would delete after

0:20:46.720 --> 0:20:48.639
<v Speaker 3>a week. His side was trying to show that that

0:20:49.160 --> 0:20:51.320
<v Speaker 3>wasn't sinister at all, but that it was part of

0:20:51.359 --> 0:20:54.760
<v Speaker 3>a document retention policy and that he was advised by

0:20:54.840 --> 0:20:57.840
<v Speaker 3>lawyers and that lawyers were aware of them. Basically, the

0:20:57.920 --> 0:21:01.000
<v Speaker 3>point that defense is trying to get across is that

0:21:01.440 --> 0:21:04.600
<v Speaker 3>he did things in the plain sight of lawyers, and

0:21:04.760 --> 0:21:08.080
<v Speaker 3>so therefore he didn't have any intent to defraud people.

0:21:08.640 --> 0:21:11.879
<v Speaker 1>So it's not really an advice of counsel defense so

0:21:12.040 --> 0:21:13.760
<v Speaker 1>much as it's a sort.

0:21:13.600 --> 0:21:17.320
<v Speaker 3>Of a take on that, Yeah, that's exactly right. They're

0:21:17.359 --> 0:21:21.240
<v Speaker 3>not putting a formal advice of counsel defense where he

0:21:21.280 --> 0:21:24.119
<v Speaker 3>would say, look, I ran this by my lawyer. My

0:21:24.200 --> 0:21:28.200
<v Speaker 3>lawyer told me to do this. Did it. Therefore, even

0:21:28.240 --> 0:21:31.480
<v Speaker 3>if it, you know, was against the law, you can't

0:21:31.920 --> 0:21:34.760
<v Speaker 3>prosecute you for that. It's less formal than that. It's

0:21:34.800 --> 0:21:37.920
<v Speaker 3>just that, you know, he's saying that I didn't have

0:21:38.200 --> 0:21:41.760
<v Speaker 3>criminal intent here because you know, obviously I was doing

0:21:41.760 --> 0:21:43.760
<v Speaker 3>this in fronal lawyers. I thought it was okay, and

0:21:43.800 --> 0:21:45.639
<v Speaker 3>that shows that I thought it was okay.

0:21:46.200 --> 0:21:50.520
<v Speaker 1>So Judge Caplan has it seems like with every major

0:21:50.880 --> 0:21:55.000
<v Speaker 1>motion question that's come up, Judge Caplan has ruled against

0:21:55.280 --> 0:21:58.720
<v Speaker 1>bank and freed. Today. He asked his lawyer about a

0:21:58.760 --> 0:22:02.520
<v Speaker 1>hypothetical situation where someone comes across a large sum of money,

0:22:03.119 --> 0:22:05.880
<v Speaker 1>uses a lawyer to buy an apartment on billionaire's row,

0:22:06.000 --> 0:22:09.199
<v Speaker 1>and is later charged with money laundering. How is that

0:22:09.240 --> 0:22:12.600
<v Speaker 1>different from what you're trying to do in principle? It

0:22:12.720 --> 0:22:14.960
<v Speaker 1>sounds like he doubts this as well.

0:22:15.880 --> 0:22:17.840
<v Speaker 3>It does sound like he's skeptical, and we're going to

0:22:17.880 --> 0:22:21.280
<v Speaker 3>find out tomorrow morning. You know, how much of if

0:22:21.320 --> 0:22:24.440
<v Speaker 3>any of this he's going to allow in. The prosecution

0:22:25.240 --> 0:22:28.200
<v Speaker 3>is trying to argue that, you know, this is basically

0:22:28.960 --> 0:22:31.640
<v Speaker 3>evidence that's going to confuse the jury, and that's not

0:22:31.760 --> 0:22:35.159
<v Speaker 3>going to basically elucidate the points that the defense is

0:22:35.200 --> 0:22:38.720
<v Speaker 3>trying to make, or at least legitimate point, and they

0:22:38.760 --> 0:22:40.440
<v Speaker 3>want the judge to keep it out.

0:22:41.240 --> 0:22:43.200
<v Speaker 1>The judge also said at the beginning that this was

0:22:43.240 --> 0:22:45.960
<v Speaker 1>going to confuse the jury. They think the jury can

0:22:46.000 --> 0:22:49.959
<v Speaker 1>handle all these different financial transactions, but they can handle

0:22:50.000 --> 0:22:54.720
<v Speaker 1>adviceive counsel. It seems to me the confusion argument is

0:22:54.880 --> 0:22:55.800
<v Speaker 1>just so thin.

0:22:57.040 --> 0:22:58.880
<v Speaker 3>That's a really good point, you know, I think you're

0:22:58.960 --> 0:23:01.959
<v Speaker 3>right about that. Has been a lot of testimony about

0:23:02.400 --> 0:23:08.159
<v Speaker 3>crypto wallets and money moving around virtually and accounting and

0:23:08.720 --> 0:23:11.280
<v Speaker 3>all that sort of stuff. Yeah, I think you're right

0:23:11.359 --> 0:23:14.119
<v Speaker 3>that they can make sense of that kind of testimony.

0:23:14.119 --> 0:23:16.080
<v Speaker 3>But we'll see, we'll see what the judge has to

0:23:16.080 --> 0:23:16.680
<v Speaker 3>say about that.

0:23:17.000 --> 0:23:19.080
<v Speaker 1>What was his demeanor like on the stand?

0:23:20.200 --> 0:23:24.800
<v Speaker 3>He was very even on direct he was very concise,

0:23:25.000 --> 0:23:29.680
<v Speaker 3>to the point in giving his testimony under question from

0:23:29.720 --> 0:23:35.200
<v Speaker 3>his own lawyer. On cross examination by Danielle Festinini, his

0:23:35.320 --> 0:23:40.439
<v Speaker 3>distiguous attorney, he was very might even call him a vasis.

0:23:40.480 --> 0:23:44.200
<v Speaker 3>He was polite, but quibbling with the questions, did a

0:23:44.240 --> 0:23:49.040
<v Speaker 3>lot of digressions, sort of dodging occasionally, even apologized in

0:23:49.119 --> 0:23:51.919
<v Speaker 3>advance if he was not going to be answering the

0:23:52.000 --> 0:23:55.879
<v Speaker 3>question she asked. It was not a very good performance

0:23:55.920 --> 0:23:59.600
<v Speaker 3>on cross and if his cross examination in front of

0:23:59.600 --> 0:24:02.480
<v Speaker 3>the jury is the thing he's going to have some difficulty.

0:24:03.040 --> 0:24:04.800
<v Speaker 1>This is sort of like a trial run for him,

0:24:04.800 --> 0:24:06.600
<v Speaker 1>then they can try to correct.

0:24:07.320 --> 0:24:09.800
<v Speaker 3>That's why in the press room we're calling it the

0:24:09.840 --> 0:24:13.440
<v Speaker 3>dress rehearsal testimony, because the jury, you know, they're all

0:24:13.520 --> 0:24:16.639
<v Speaker 3>homes and in front of the judge. But you know,

0:24:16.720 --> 0:24:20.280
<v Speaker 3>sometimes if the dress rehearsal doesn't go well. The premiere

0:24:20.400 --> 0:24:23.840
<v Speaker 3>is a smash ht so we'll we'll have to see.

0:24:23.880 --> 0:24:26.680
<v Speaker 3>But if it's a repeat performance tomorrow, I don't think

0:24:26.680 --> 0:24:28.640
<v Speaker 3>it's doing very good for Sampaker Freed.

0:24:29.119 --> 0:24:32.200
<v Speaker 1>What other witnesses is the defense intending to call?

0:24:32.800 --> 0:24:35.600
<v Speaker 3>The defense is done with everybody except for sampakm and Free.

0:24:35.600 --> 0:24:38.679
<v Speaker 3>They had a couple of brief witnesses this morning. They

0:24:38.760 --> 0:24:43.359
<v Speaker 3>had an expert witness to talk about sort of forensic

0:24:43.400 --> 0:24:48.680
<v Speaker 3>witness to talk about the transfers between Alameda and FTX.

0:24:49.440 --> 0:24:52.479
<v Speaker 3>Very brief defense case other than to put on dam

0:24:52.560 --> 0:24:56.520
<v Speaker 3>Beck and Freed. Who's likely to go all day tomorrow,

0:24:56.800 --> 0:24:57.920
<v Speaker 3>maybe into Monday.

0:24:58.480 --> 0:25:02.640
<v Speaker 1>Let's go back and look at the reason why he

0:25:03.680 --> 0:25:09.000
<v Speaker 1>may be testifying is because the evidence that the prosecution

0:25:09.840 --> 0:25:14.080
<v Speaker 1>presented against him in these weeks has been pretty compelling.

0:25:14.680 --> 0:25:17.920
<v Speaker 1>Describe some of the main witnesses testimony.

0:25:18.400 --> 0:25:21.719
<v Speaker 3>Well, Houston faced with testimony from a number of people

0:25:21.800 --> 0:25:25.840
<v Speaker 3>that he was once close to, that he formerly worked with,

0:25:26.320 --> 0:25:31.399
<v Speaker 3>including three insiders, three people very close to them in

0:25:31.440 --> 0:25:36.160
<v Speaker 3>the Inner circle who have pled guilty and are testifying

0:25:37.000 --> 0:25:41.240
<v Speaker 3>cooperating with the government. These include Caroline Ellison, his former

0:25:41.280 --> 0:25:45.320
<v Speaker 3>girlfriend who he installed as the CEO about me to Research,

0:25:46.000 --> 0:25:51.200
<v Speaker 3>which is the affiliated hedge fund with the SDX crypto extreme.

0:25:51.720 --> 0:25:57.680
<v Speaker 3>She gave very effective testimony. Also Gary Wong, his FTX

0:25:57.720 --> 0:26:00.639
<v Speaker 3>co founder, and Nishad Singh, who is the head of

0:26:00.680 --> 0:26:05.440
<v Speaker 3>engineering for FTX. All three of them gave very clear testimony.

0:26:06.160 --> 0:26:10.719
<v Speaker 3>In addition, put on Ken's son, the former general counsel,

0:26:10.800 --> 0:26:14.560
<v Speaker 3>the top in house lawyer at FTC, who testified that

0:26:14.920 --> 0:26:19.000
<v Speaker 3>Backmin Freed did not let him know about the huge

0:26:19.040 --> 0:26:23.879
<v Speaker 3>amount of borrowing from al Amida that al Amita took

0:26:23.920 --> 0:26:26.080
<v Speaker 3>from customer funds at FTX.

0:26:27.080 --> 0:26:32.000
<v Speaker 1>Did Bankmin Freed come off as unlikable through the testimony

0:26:32.040 --> 0:26:36.520
<v Speaker 1>about his lifestyle and how he wanted to project this

0:26:36.840 --> 0:26:39.879
<v Speaker 1>image and hanging around with celebrities.

0:26:40.440 --> 0:26:43.679
<v Speaker 3>There was certainly a decent amount of that sort of

0:26:43.800 --> 0:26:48.400
<v Speaker 3>testimony about him, you know, sort of dominating other people,

0:26:48.800 --> 0:26:51.800
<v Speaker 3>presenting an image to the public that he wasn't actually

0:26:52.280 --> 0:26:56.119
<v Speaker 3>you know, manifesting in his personal life that you know,

0:26:56.160 --> 0:26:59.960
<v Speaker 3>he was calculating. There was that sort of testimony during

0:27:00.080 --> 0:27:03.240
<v Speaker 3>the trial, and you would think that's part of the

0:27:03.240 --> 0:27:05.560
<v Speaker 3>reason that he wants to testify his counter some of that,

0:27:05.760 --> 0:27:07.520
<v Speaker 3>so you know, we'll have to see how effective he

0:27:07.640 --> 0:27:08.000
<v Speaker 3>is at that.

0:27:08.560 --> 0:27:11.480
<v Speaker 1>Yeah, his whole defense is writing on him. And they

0:27:11.560 --> 0:27:15.120
<v Speaker 1>say that when a defendant takes the stand, it becomes

0:27:15.160 --> 0:27:19.160
<v Speaker 1>all about his credibility for the jury. So we'll see

0:27:19.160 --> 0:27:22.639
<v Speaker 1>what happens tomorrow. I understand this was like a hot

0:27:22.640 --> 0:27:25.600
<v Speaker 1>ticket today. There were people waiting in line to get

0:27:25.600 --> 0:27:26.360
<v Speaker 1>into the courtroom.

0:27:26.880 --> 0:27:30.280
<v Speaker 3>That's right. There were dozens of people. When I came

0:27:30.320 --> 0:27:33.399
<v Speaker 3>in this morning a little bit before nine, dozens of

0:27:33.400 --> 0:27:37.520
<v Speaker 3>people lined up for just twenty one press steachs in

0:27:37.560 --> 0:27:40.840
<v Speaker 3>the courtroom today. I talked to one of the reporters

0:27:40.840 --> 0:27:43.280
<v Speaker 3>who was number two in line. He had showed up

0:27:43.320 --> 0:27:45.760
<v Speaker 3>at two forty in the morning to line up for

0:27:45.880 --> 0:27:47.639
<v Speaker 3>that seat.

0:27:47.000 --> 0:27:50.200
<v Speaker 1>And there were three overflow rooms for those who couldn't

0:27:50.200 --> 0:27:52.439
<v Speaker 1>get into the courtroom. Have there been a lot of

0:27:52.520 --> 0:27:54.480
<v Speaker 1>crypto enthusiasts at the trial?

0:27:55.200 --> 0:27:57.879
<v Speaker 3>There absolutely has been a lot of crypto press, a

0:27:57.880 --> 0:28:01.720
<v Speaker 3>lot of just people who follow currency. This is a

0:28:01.840 --> 0:28:04.960
<v Speaker 3>very very interesting trial for people in that world. It's

0:28:05.000 --> 0:28:09.040
<v Speaker 3>obviously an event that was a huge watershed in the

0:28:09.080 --> 0:28:12.360
<v Speaker 3>crypto world, and people want to see these personalities who

0:28:12.400 --> 0:28:14.480
<v Speaker 3>they came to know. They want to see them in

0:28:14.520 --> 0:28:16.160
<v Speaker 3>person telling their stories.

0:28:16.080 --> 0:28:19.439
<v Speaker 1>And has the jury been attentive through these weeks of testimony.

0:28:19.840 --> 0:28:23.119
<v Speaker 3>The jury has been in tentive. There's certainly with SBF

0:28:23.160 --> 0:28:26.080
<v Speaker 3>on the stand, you can expect them to be glued

0:28:26.119 --> 0:28:30.200
<v Speaker 3>to every word. They were very attentive for Carolyne Ellison's

0:28:30.200 --> 0:28:34.120
<v Speaker 3>testimony and things and lungs as well. A little less

0:28:34.160 --> 0:28:38.360
<v Speaker 3>so with some of the more technical testimony. But yeah,

0:28:38.400 --> 0:28:41.160
<v Speaker 3>they're going to be riveted tomorrow if.

0:28:41.320 --> 0:28:45.960
<v Speaker 1>The judge doesn't allow this advice of council defense or

0:28:46.080 --> 0:28:48.760
<v Speaker 1>you know, this version of an advisive council defense. What

0:28:48.840 --> 0:28:51.480
<v Speaker 1>does that leave the defense to argue?

0:28:52.200 --> 0:28:54.280
<v Speaker 3>We'll have to see what they're going to question him on,

0:28:54.440 --> 0:28:57.680
<v Speaker 3>because whatever they question him on, he can get hostile

0:28:57.760 --> 0:29:01.120
<v Speaker 3>questioning on across examination. So you know, the last thing

0:29:01.120 --> 0:29:04.120
<v Speaker 3>the defense wants to do is prove the government's case

0:29:04.200 --> 0:29:06.680
<v Speaker 3>for that. So they're going to have to think very

0:29:06.720 --> 0:29:11.120
<v Speaker 3>strategically about what they want Sambaquins Creed to testify on.

0:29:11.360 --> 0:29:14.840
<v Speaker 3>And you know, where he's vulnerable and where he's vulnerable.

0:29:15.040 --> 0:29:18.560
<v Speaker 1>We'll find out tomorrow morning what he's allowed to testify to.

0:29:18.760 --> 0:29:20.880
<v Speaker 1>It will be an exciting day tomorrow in the court,

0:29:20.880 --> 0:29:24.240
<v Speaker 1>I think, Bob, thanks so much that's Bloomberg Legal reporter

0:29:24.360 --> 0:29:26.920
<v Speaker 1>Bob van Vories, and that's it for this edition of

0:29:26.920 --> 0:29:29.560
<v Speaker 1>The Bloomberg Law Show. Remember you can always get the

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0:29:32.880 --> 0:29:37.120
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0:29:41.360 --> 0:29:44.400
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