1 00:00:03,520 --> 00:00:07,040 Speaker 1: Welcome to the Bloomberg Law Podcast. I'm June Grosso. Every 2 00:00:07,120 --> 00:00:09,680 Speaker 1: day we bring you insight and analysis into the most 3 00:00:09,720 --> 00:00:12,200 Speaker 1: important legal news of the day. You can find more 4 00:00:12,240 --> 00:00:16,160 Speaker 1: episodes of the Bloomberg Law Podcast on Apple Podcasts, SoundCloud 5 00:00:16,280 --> 00:00:20,239 Speaker 1: and on Bloomberg dot com slash podcasts. President Trump tweeted 6 00:00:20,280 --> 00:00:23,520 Speaker 1: this morning the Dems and their committees are going nuts. 7 00:00:23,920 --> 00:00:27,240 Speaker 1: This follows the new Democratic Chairman of the House Intelligence Committee, 8 00:00:27,240 --> 00:00:31,040 Speaker 1: Adam Schiff, announcing a sweeping new investigation into whether foreign 9 00:00:31,080 --> 00:00:35,360 Speaker 1: governments or individuals had improper leverage over the president or 10 00:00:35,440 --> 00:00:38,920 Speaker 1: his business interests. Our job involves making sure that the 11 00:00:38,920 --> 00:00:41,879 Speaker 1: policy United States is being driven by the national interest, 12 00:00:42,640 --> 00:00:46,720 Speaker 1: not by any financial entanglement, financial leverage, or other form 13 00:00:46,760 --> 00:00:50,479 Speaker 1: of compromise. Joining me is former federal prosecutor Elie Honig 14 00:00:50,479 --> 00:00:54,680 Speaker 1: Special counsel Loewenstein Sandler. Ellie, let's start with the basics. 15 00:00:54,800 --> 00:00:59,160 Speaker 1: What can Congressional committees do in investigations? What are their 16 00:00:59,200 --> 00:01:03,520 Speaker 1: powers compared aired with say, federal prosecutors. Sure, so the 17 00:01:03,560 --> 00:01:07,240 Speaker 1: powers are actually quite different, and I think in important ways. Obviously, 18 00:01:07,280 --> 00:01:11,479 Speaker 1: federal prosecutors have the heavier stick. They can bring criminal charges, 19 00:01:11,520 --> 00:01:14,120 Speaker 1: they can arrest people, they can send people to prison. 20 00:01:14,280 --> 00:01:16,360 Speaker 1: By and large, Congress cannot do that. But but the 21 00:01:16,400 --> 00:01:19,919 Speaker 1: difference is the vast majority of the work that federal 22 00:01:19,959 --> 00:01:22,560 Speaker 1: prosecutors do, whether it's Robert Mueller as Special Counsel of 23 00:01:22,600 --> 00:01:25,200 Speaker 1: the Southern District of New York, is done under lock 24 00:01:25,280 --> 00:01:27,560 Speaker 1: and key. It's done in grand juries, it's done in secrecy, 25 00:01:27,840 --> 00:01:30,640 Speaker 1: and we the public only learned about what federal prosecutors 26 00:01:30,680 --> 00:01:33,399 Speaker 1: are doing on the rare occasion when court filings go 27 00:01:33,480 --> 00:01:35,920 Speaker 1: in or there's a public arrest. But Congress has the 28 00:01:35,920 --> 00:01:39,759 Speaker 1: ability a to hold very public hearings and we're about 29 00:01:39,800 --> 00:01:43,160 Speaker 1: to see one tomorrow with Matthew Whittaker and be Um, 30 00:01:43,280 --> 00:01:46,520 Speaker 1: to do things quite quickly, to serve as a painter, 31 00:01:46,600 --> 00:01:49,920 Speaker 1: to schedule hearing on fairly short notice, and to do 32 00:01:49,960 --> 00:01:52,680 Speaker 1: it in a way that really ensures accountability. Also, Congress 33 00:01:52,760 --> 00:01:56,680 Speaker 1: is really not limited in scope. Federal prosecutors can only 34 00:01:56,720 --> 00:01:59,320 Speaker 1: look at criminal activity, but Congress can look at any 35 00:01:59,360 --> 00:02:02,520 Speaker 1: form of way abuse corruption, whether it's criminal or not. 36 00:02:03,000 --> 00:02:07,480 Speaker 1: So picking up on the scope, is Shift just pursuing 37 00:02:07,600 --> 00:02:10,600 Speaker 1: lines of inquiry that the Republican led committee did not, 38 00:02:10,880 --> 00:02:14,160 Speaker 1: or is he opening up new lines of inquiry? It 39 00:02:14,200 --> 00:02:16,519 Speaker 1: seems like he's doing both. I think Shift has he 40 00:02:16,919 --> 00:02:19,480 Speaker 1: released in the last day or two a list of 41 00:02:19,480 --> 00:02:21,519 Speaker 1: the types of questions that he wants to investigate, and 42 00:02:21,600 --> 00:02:23,760 Speaker 1: I think Shift is being careful. I think he does 43 00:02:23,800 --> 00:02:26,280 Speaker 1: not want to be accused of overreaching or going into 44 00:02:26,360 --> 00:02:29,880 Speaker 1: unnecessary areas. But he's made fairly clear what he's interested in. 45 00:02:29,919 --> 00:02:33,799 Speaker 1: He's interested in collusion collaboration between Trump and Russia. He's 46 00:02:33,840 --> 00:02:36,320 Speaker 1: interested in Russian interference with the election, which both of 47 00:02:36,320 --> 00:02:39,880 Speaker 1: which I think are undisputably matters important to the Congress. 48 00:02:39,919 --> 00:02:42,840 Speaker 1: And he wants to know about Trump's finances, as those 49 00:02:42,880 --> 00:02:46,600 Speaker 1: finances relate to his potential relationship with Russia, as those 50 00:02:46,600 --> 00:02:50,840 Speaker 1: finances explain why Trump may have been indebted financially or 51 00:02:50,880 --> 00:02:53,919 Speaker 1: otherwise to Russia. But I think Schiff has has been 52 00:02:53,960 --> 00:02:56,240 Speaker 1: savvy so far. I think he's made clear he's going 53 00:02:56,280 --> 00:02:58,280 Speaker 1: to be aggressive, but I think he wants to avoid 54 00:02:58,600 --> 00:03:01,680 Speaker 1: being rightly accused. He will be accused, but rightly accused 55 00:03:01,720 --> 00:03:03,840 Speaker 1: of going on a fishing expedition or a witch hunt. 56 00:03:04,200 --> 00:03:08,520 Speaker 1: The President has termed a new phrase, presidential harassment, perhaps 57 00:03:08,600 --> 00:03:12,280 Speaker 1: replacing witch hunt, now that it's not just Mueller investigating him, 58 00:03:12,320 --> 00:03:15,480 Speaker 1: but Congressional committees and the Southern District of New York 59 00:03:15,560 --> 00:03:18,200 Speaker 1: and the New York Attorney General. Which of the many 60 00:03:18,280 --> 00:03:23,400 Speaker 1: investigations do you think carries the most risk for the president? Yes, 61 00:03:23,480 --> 00:03:26,239 Speaker 1: so this is another effort at defensive branding, I think, 62 00:03:26,240 --> 00:03:28,040 Speaker 1: and it will go right on the shelf with with 63 00:03:28,120 --> 00:03:31,240 Speaker 1: the witch hunt. First of all, the notion of presidential harassment, 64 00:03:31,280 --> 00:03:34,560 Speaker 1: this is what federal prosecutors are bound to do to 65 00:03:34,560 --> 00:03:37,200 Speaker 1: to investigate the facts, and Congress by Article one, they 66 00:03:37,240 --> 00:03:39,680 Speaker 1: have oversight authority. I think the Southern District of New 67 00:03:39,760 --> 00:03:43,080 Speaker 1: York poses in some ways the gravest threat to the president. 68 00:03:43,080 --> 00:03:44,880 Speaker 1: I'd come out of the Southern District of New York, 69 00:03:45,160 --> 00:03:47,920 Speaker 1: but I think objectively, and the reason is the Southern 70 00:03:47,920 --> 00:03:52,000 Speaker 1: District has certain structural advantages that Mueller doesn't have. Look, 71 00:03:52,040 --> 00:03:55,200 Speaker 1: Robert Mueller is the best prosecutor anyone could hope to be. 72 00:03:55,320 --> 00:03:57,880 Speaker 1: So this is not a reflection on the quality of 73 00:03:58,000 --> 00:04:00,520 Speaker 1: Robert Muller. But the Southern District has a couple of 74 00:04:00,560 --> 00:04:03,360 Speaker 1: structural advantages. First of all, the president can't fire the 75 00:04:03,360 --> 00:04:06,400 Speaker 1: Southern District. He can't defund the Southern District, as Whittaker 76 00:04:06,440 --> 00:04:08,960 Speaker 1: once suggested, if he did fire the U. S. Attorney 77 00:04:08,960 --> 00:04:11,440 Speaker 1: for the Southern District, you'd have a hundred fifty a 78 00:04:11,600 --> 00:04:13,040 Speaker 1: U S. A S. Which I used to be right 79 00:04:13,040 --> 00:04:15,960 Speaker 1: there to pick up the banner. The Southern District is 80 00:04:16,000 --> 00:04:18,919 Speaker 1: not limited in scope. Mueller is limited by his commission 81 00:04:18,920 --> 00:04:22,520 Speaker 1: to investigating Russian election interference and matters directly arising. The 82 00:04:22,560 --> 00:04:26,240 Speaker 1: Southern District can go wherever the evidence leads it, into finances, 83 00:04:26,279 --> 00:04:28,960 Speaker 1: into sanctions, you name it. Southern District is not going 84 00:04:29,000 --> 00:04:31,359 Speaker 1: to face the same kind of political pressure to wrap 85 00:04:31,440 --> 00:04:33,480 Speaker 1: up in a certain amount of time that we already 86 00:04:33,520 --> 00:04:36,040 Speaker 1: see mother facing. The Southern District can take what time 87 00:04:36,040 --> 00:04:39,159 Speaker 1: it needs. And the Southern districts not subject to the 88 00:04:39,160 --> 00:04:42,960 Speaker 1: Special Council regulations which require the Special Council to run 89 00:04:43,080 --> 00:04:46,360 Speaker 1: certain decisions through the Attorney General and ultimately to file 90 00:04:46,400 --> 00:04:48,640 Speaker 1: his report with the Attorney General. Those don't apply to 91 00:04:48,680 --> 00:04:51,080 Speaker 1: the Southern District. So on top of all that, I 92 00:04:51,120 --> 00:04:54,599 Speaker 1: know firsthand that the ethic Southern District is to be 93 00:04:54,960 --> 00:04:57,679 Speaker 1: really tenacious and relentless until you get to the bottom 94 00:04:57,720 --> 00:05:01,280 Speaker 1: of whatever was was done ends out among the U. S. 95 00:05:01,320 --> 00:05:05,240 Speaker 1: Attorney's offices. For sure, going back to Adam Shift's committee 96 00:05:05,279 --> 00:05:08,400 Speaker 1: for a moment, the committee voted to send Mueller additional 97 00:05:08,440 --> 00:05:11,960 Speaker 1: transcripts from the interviews the panel has conducted. Among those 98 00:05:11,960 --> 00:05:17,080 Speaker 1: transcripts of Donald Trump Junior, Jared Kushner, former Trump strategist 99 00:05:17,120 --> 00:05:20,760 Speaker 1: Stephen Bannon, are they thinking that there may be perjury 100 00:05:20,839 --> 00:05:24,880 Speaker 1: charges akin to those facing Roger Stone. I do think 101 00:05:24,920 --> 00:05:28,760 Speaker 1: that's exactly why Shifts sent those over to Muller. Look, 102 00:05:29,040 --> 00:05:33,000 Speaker 1: we know that Mueller has and will charge false statements 103 00:05:33,040 --> 00:05:35,159 Speaker 1: to Congress. He charged Roger Stone with it. As you noted, 104 00:05:35,360 --> 00:05:38,359 Speaker 1: Michael Colin also pled guilty to making false statements to 105 00:05:38,360 --> 00:05:43,040 Speaker 1: Congress about Trump. Mascow projects, Yeah, anyone who gave testimony 106 00:05:43,080 --> 00:05:46,400 Speaker 1: to the House and was untruthful should be very scared 107 00:05:46,480 --> 00:05:49,240 Speaker 1: right now because this is the next step in the process. 108 00:05:49,279 --> 00:05:52,320 Speaker 1: Mother now has those transcripts, they'll go through them and 109 00:05:52,839 --> 00:05:56,760 Speaker 1: mark my words, if somebody testified falsely about a material matter, 110 00:05:57,120 --> 00:06:00,200 Speaker 1: not about some tangential thing, then I think Muller will 111 00:06:00,320 --> 00:06:04,120 Speaker 1: is very likely to charge them criminally. Speaking about perjury, 112 00:06:04,160 --> 00:06:07,760 Speaker 1: I'm hearing a lot of the term process crimes. I 113 00:06:07,800 --> 00:06:10,400 Speaker 1: don't remember in any year of law school ever studying 114 00:06:10,520 --> 00:06:14,680 Speaker 1: process crimes. What is this all about? That's another made 115 00:06:14,720 --> 00:06:17,360 Speaker 1: up term, that's a pr term, that's not a legal term. 116 00:06:17,640 --> 00:06:19,720 Speaker 1: And if it was, the process that we're talking about 117 00:06:19,720 --> 00:06:24,599 Speaker 1: here is the criminal justice process. Prosecutors and judges alike, 118 00:06:24,880 --> 00:06:28,960 Speaker 1: take quote unquote process crimes are like, shouldn't even promote 119 00:06:28,960 --> 00:06:31,560 Speaker 1: the use of that term. But take crimes like obstruction 120 00:06:31,560 --> 00:06:37,080 Speaker 1: of justice, witness tampering perjury extremely seriously because they threatened 121 00:06:37,080 --> 00:06:40,760 Speaker 1: the fundamental core of our criminal justice system. People have 122 00:06:40,880 --> 00:06:44,159 Speaker 1: likened it to in an athletic event, to to tampering 123 00:06:44,160 --> 00:06:46,680 Speaker 1: with the referees. You're you're messing with the very rules, 124 00:06:46,760 --> 00:06:49,839 Speaker 1: the very fairness and foundation of our system. So I 125 00:06:49,920 --> 00:06:53,840 Speaker 1: completely dismissed those efforts to minimize those types of serious crimes. 126 00:06:53,920 --> 00:06:57,280 Speaker 1: We just have a minute here, quick reaction to the 127 00:06:57,320 --> 00:07:01,360 Speaker 1: committee putting off the testimony of Michael Cohen. My main 128 00:07:01,720 --> 00:07:03,760 Speaker 1: question is, well, what's going to happen between now and that? 129 00:07:04,040 --> 00:07:06,800 Speaker 1: Because the stated reason for for putting it off a 130 00:07:06,800 --> 00:07:09,559 Speaker 1: few weeks was in the interests of the investigation, which 131 00:07:09,920 --> 00:07:12,880 Speaker 1: sort of logically suggests to me that something will happen 132 00:07:12,920 --> 00:07:15,200 Speaker 1: between now and the end of February when when his 133 00:07:15,600 --> 00:07:17,920 Speaker 1: testimony is slated forward there under look, they're under time 134 00:07:17,920 --> 00:07:20,720 Speaker 1: pressure he's going to jail in early March. Not to 135 00:07:20,720 --> 00:07:22,720 Speaker 1: say they can't pull him out of jail, but that's 136 00:07:22,720 --> 00:07:24,640 Speaker 1: gonna make it a lot more difficult. So I want 137 00:07:24,640 --> 00:07:26,360 Speaker 1: to see what's going to happen in the next few weeks. 138 00:07:26,480 --> 00:07:28,320 Speaker 1: All right, Thanks so much. It's always a pleasure to 139 00:07:28,360 --> 00:07:31,920 Speaker 1: have you on. That's former federal prosecutor Ellie Hoenig, special 140 00:07:32,000 --> 00:07:36,840 Speaker 1: counsel at Lowenstein Sandler. Thanks for listening to the Bloomberg 141 00:07:36,920 --> 00:07:40,000 Speaker 1: Law Podcast. You can subscribe and listen to the show 142 00:07:40,040 --> 00:07:44,760 Speaker 1: on Apple Podcasts, SoundCloud, and on bloomberg dot com slash podcast. 143 00:07:45,160 --> 00:07:47,880 Speaker 1: I'm June Brosso. This is Bloomberg