1 00:00:03,200 --> 00:00:07,960 Speaker 1: This is Bloomberg Law with June Bresso from Bloomberg Radio. 2 00:00:09,160 --> 00:00:13,200 Speaker 1: For former socialite Glaine Maxwell, the moment of reckoning is 3 00:00:13,240 --> 00:00:17,200 Speaker 1: at hand. This week in Manhattan federal court, jury selection 4 00:00:17,280 --> 00:00:21,520 Speaker 1: began for her trial on trafficking underage girls for sexual 5 00:00:21,520 --> 00:00:25,840 Speaker 1: abuse by her former boyfriend Jeffrey Epstein. The fifty nine 6 00:00:25,920 --> 00:00:30,080 Speaker 1: year old faces six felony charges. All four alleged victims 7 00:00:30,120 --> 00:00:34,440 Speaker 1: are expected to testify. If convicted of the most serious crimes, 8 00:00:34,680 --> 00:00:37,839 Speaker 1: Maxwell could face as long as forty years in prison. 9 00:00:38,320 --> 00:00:42,040 Speaker 1: Joining me is Bloomberg Legal reporter Patricia Hurtado, who's covering 10 00:00:42,080 --> 00:00:44,800 Speaker 1: the trial. Patty. For those who don't know, tell us 11 00:00:44,840 --> 00:00:50,479 Speaker 1: who Glaine Maxwell is. Gleam Maxwell is a British socialite, 12 00:00:50,880 --> 00:00:55,760 Speaker 1: Oxford educated born in Paris, daughter of former British publishing 13 00:00:55,840 --> 00:01:00,200 Speaker 1: baron Sir Robert Maxwell. She is his youngest child and 14 00:01:00,520 --> 00:01:05,120 Speaker 1: she's allegedly was a former girlfriend of Jeffrey Epstein's and 15 00:01:05,240 --> 00:01:10,039 Speaker 1: the government argues that Maxwell conspired with Epstein in the 16 00:01:10,080 --> 00:01:15,240 Speaker 1: six trafficking scheme, accused of alluring underage girls to Epstein's 17 00:01:15,280 --> 00:01:18,679 Speaker 1: so he could sexually abuse them, and also for participating 18 00:01:18,760 --> 00:01:22,840 Speaker 1: some of the abuse. The defense she's been mounting all 19 00:01:22,920 --> 00:01:27,400 Speaker 1: the lawyers, all the motions is expensive. How much money 20 00:01:27,440 --> 00:01:30,880 Speaker 1: does she have now? It's about two million, and the 21 00:01:30,959 --> 00:01:35,640 Speaker 1: government has previously alleged that she got twenty million was 22 00:01:35,720 --> 00:01:41,919 Speaker 1: transferred from accounts tied to Epstein to her accounts offshore accounts, 23 00:01:41,959 --> 00:01:44,600 Speaker 1: and so the government says that she's got at least 24 00:01:44,600 --> 00:01:47,080 Speaker 1: twenty million dollars, which is the reason why they said 25 00:01:47,160 --> 00:01:50,000 Speaker 1: she had the money and the ability to flee. She 26 00:01:50,040 --> 00:01:53,320 Speaker 1: has a French passport and if she fled to France, 27 00:01:53,480 --> 00:01:56,640 Speaker 1: they don't extradsee. So she's been in custody since she 28 00:01:56,800 --> 00:02:03,559 Speaker 1: was arrested in July of So, looking at the prosecution's case, 29 00:02:04,160 --> 00:02:08,600 Speaker 1: what is the prosecution expected to present? But the government 30 00:02:09,280 --> 00:02:12,920 Speaker 1: already promised they're going to have four They were underage 31 00:02:12,960 --> 00:02:16,960 Speaker 1: women under the law that it was illegal for Epstein 32 00:02:17,080 --> 00:02:20,119 Speaker 1: to have sex with them at the time he sexually 33 00:02:20,160 --> 00:02:24,200 Speaker 1: abused them. They're going to have these four underage women 34 00:02:24,280 --> 00:02:27,040 Speaker 1: who are now older. Some of the accuse went back 35 00:02:27,080 --> 00:02:33,000 Speaker 1: as far as when one of the accusers was about 36 00:02:33,040 --> 00:02:37,200 Speaker 1: thirteen or fourteen years old. So they're going to call 37 00:02:37,360 --> 00:02:40,760 Speaker 1: these victims who they say are victims. Maxwell wanted to 38 00:02:40,840 --> 00:02:43,679 Speaker 1: argue they're not victims, and they should just be called accusers. 39 00:02:43,720 --> 00:02:45,800 Speaker 1: So the government is going to call these four people 40 00:02:45,840 --> 00:02:50,440 Speaker 1: to testify, including some of them may testify under pseudonyms 41 00:02:50,520 --> 00:02:55,400 Speaker 1: or nicknames because some of the testimony is incredibly embarrassing 42 00:02:55,480 --> 00:02:57,960 Speaker 1: and it happened to them when they were younger. What 43 00:02:58,040 --> 00:03:01,880 Speaker 1: other witnesses are we likely to see? They've also promised 44 00:03:01,880 --> 00:03:05,000 Speaker 1: that they're going to call other witnesses who may have 45 00:03:05,080 --> 00:03:11,480 Speaker 1: been present or known about the Epstein sex trafficking. So 46 00:03:11,600 --> 00:03:13,600 Speaker 1: it sounds like what the government wants to do is 47 00:03:13,720 --> 00:03:18,119 Speaker 1: call additional victims, although it's not clear yet. Also, there 48 00:03:18,200 --> 00:03:22,560 Speaker 1: was a two thousand eight search by Palm Beach Police 49 00:03:23,040 --> 00:03:27,600 Speaker 1: and they went to Epstein's home and they seized evidence, 50 00:03:27,680 --> 00:03:33,280 Speaker 1: including photographs as well as a massage table. There's apparently 51 00:03:33,360 --> 00:03:39,560 Speaker 1: some sex toys. Also, interestingly, there's been discussion of seizure. 52 00:03:39,800 --> 00:03:43,960 Speaker 1: Somehow the government got ahold of what's called Epstein's Little 53 00:03:43,960 --> 00:03:46,600 Speaker 1: Black Book, and it's an addressed book with names and 54 00:03:46,640 --> 00:03:52,240 Speaker 1: telephone numbers. But there's apparently also another book tied to 55 00:03:52,880 --> 00:03:56,680 Speaker 1: going Maxwell. It's some kind of addressed book and one 56 00:03:56,720 --> 00:04:00,000 Speaker 1: of these books the government has says they have evidence 57 00:04:00,120 --> 00:04:05,680 Speaker 1: that include the names of these underaged young women, as 58 00:04:05,720 --> 00:04:10,640 Speaker 1: well as telephone numbers for their parents. So I guess 59 00:04:10,680 --> 00:04:13,320 Speaker 1: the idea is they were so young they didn't have 60 00:04:13,440 --> 00:04:16,000 Speaker 1: cell phones at the time, and their moms or dads 61 00:04:16,080 --> 00:04:19,200 Speaker 1: that so there was contact information for their parents in 62 00:04:19,240 --> 00:04:23,800 Speaker 1: these phone books. And there's also listings about names under 63 00:04:23,880 --> 00:04:29,240 Speaker 1: massages for these girls allegedly, So the judge hasn't ruled 64 00:04:29,320 --> 00:04:31,920 Speaker 1: on how much evidence the government's going to be allowed 65 00:04:31,960 --> 00:04:34,560 Speaker 1: to show the jury. Of course, the defenses are doing 66 00:04:34,640 --> 00:04:38,760 Speaker 1: vociferously than strongly that some of this information is too 67 00:04:38,800 --> 00:04:43,200 Speaker 1: prejudicial and can't be tied to Maxwell. Are there emails 68 00:04:43,360 --> 00:04:46,880 Speaker 1: or texts that are tied to her? Yes? There apparently 69 00:04:46,920 --> 00:04:52,400 Speaker 1: are also email exchanged between Epstein and Maxwell. We know 70 00:04:52,720 --> 00:04:55,320 Speaker 1: of at least one of them that came out as 71 00:04:55,360 --> 00:04:59,799 Speaker 1: part of evidence in Virginia. Guffre is that Epstein Maxwell 72 00:04:59,839 --> 00:05:04,840 Speaker 1: at user who sued Maxwell for defamation, and they settled 73 00:05:04,880 --> 00:05:09,400 Speaker 1: the lawsuit, but the documents tied to that later got unsealed, 74 00:05:09,880 --> 00:05:13,440 Speaker 1: and so one of them is an email that Epstein 75 00:05:13,600 --> 00:05:16,159 Speaker 1: and Max all exchange that showed they were still in 76 00:05:16,279 --> 00:05:21,200 Speaker 1: contact after he had his non prosecution deal with federal 77 00:05:21,240 --> 00:05:26,080 Speaker 1: prosecutors in two thousand eight, and basically Epstein is telling 78 00:05:26,120 --> 00:05:29,000 Speaker 1: Maxwell to keep your chin up and don't act like 79 00:05:29,040 --> 00:05:33,120 Speaker 1: a criminal. So we definitely have seen some emails, and 80 00:05:33,240 --> 00:05:36,800 Speaker 1: the government has promised more evidence. The defense lawyer said 81 00:05:36,800 --> 00:05:40,640 Speaker 1: he intends to ask the alleged victims why they failed 82 00:05:40,640 --> 00:05:44,560 Speaker 1: to come forward sooner, if substance abuse impaired their memories, 83 00:05:44,640 --> 00:05:47,560 Speaker 1: and also wants to question them about their sexual behavior. 84 00:05:48,000 --> 00:05:51,719 Speaker 1: Those sounds like questions from years ago, before the Me 85 00:05:51,839 --> 00:05:55,440 Speaker 1: Too movement, blaming the victim. You got it there. I 86 00:05:55,520 --> 00:05:59,000 Speaker 1: agree with you. I've covered courts for years now, and 87 00:05:59,480 --> 00:06:02,960 Speaker 1: I cover State Court in Brooklyn, and there were many 88 00:06:03,000 --> 00:06:08,039 Speaker 1: occasions that caused outrage back then where defense lawyers wanted 89 00:06:08,080 --> 00:06:11,560 Speaker 1: to question a witness. I can remember one of prostitute. 90 00:06:11,920 --> 00:06:16,000 Speaker 1: She had witnessed a murder or an attempted murder, and 91 00:06:16,120 --> 00:06:19,320 Speaker 1: the lawyer wanted to question her about her sex life 92 00:06:19,320 --> 00:06:22,960 Speaker 1: and her sex history. So that was not allowed and 93 00:06:23,040 --> 00:06:26,080 Speaker 1: that caused If you're at least twenty years ago in 94 00:06:26,120 --> 00:06:30,520 Speaker 1: Brooklyn State Supreme Court, it's hard to believe it's and 95 00:06:30,560 --> 00:06:34,360 Speaker 1: we're having this discussion again. The judge, it's unclear what 96 00:06:34,440 --> 00:06:37,880 Speaker 1: she has ruled. She had an in camera hearing with 97 00:06:37,920 --> 00:06:43,000 Speaker 1: the lawyers about that testimony and how much the defense 98 00:06:43,120 --> 00:06:47,000 Speaker 1: is going to be allowed to raise the sexual background 99 00:06:47,279 --> 00:06:51,520 Speaker 1: of these complaining witnesses, these four women. I mean, you 100 00:06:51,560 --> 00:06:54,839 Speaker 1: could argue it's not out of the realm of the 101 00:06:55,000 --> 00:06:59,400 Speaker 1: possible that even if someone is sexually active, they can 102 00:06:59,440 --> 00:07:03,440 Speaker 1: still be victimized by someone else and it's still going 103 00:07:03,480 --> 00:07:06,360 Speaker 1: to be a crime. Now, I don't know whether that's 104 00:07:06,480 --> 00:07:09,440 Speaker 1: to raise reasonable doubt. Seems like that's what the defense 105 00:07:09,520 --> 00:07:11,800 Speaker 1: is trying to do, and it's unclear that's still on 106 00:07:11,840 --> 00:07:14,920 Speaker 1: the table, and the judge hasn't officially said what her 107 00:07:15,000 --> 00:07:18,240 Speaker 1: ruling is on that. Besides attacking the victims, are trying 108 00:07:18,280 --> 00:07:21,520 Speaker 1: to discredit them. Do you have a sense of what 109 00:07:21,720 --> 00:07:24,960 Speaker 1: the defense is going to be. It sounds like the 110 00:07:25,040 --> 00:07:28,200 Speaker 1: defense there's kind of a hodgepodge of things. But there 111 00:07:28,240 --> 00:07:31,600 Speaker 1: was a defense filing a couple of weeks ago which 112 00:07:31,800 --> 00:07:36,440 Speaker 1: was they'd like to call these two experts their forensic psychiatrists. 113 00:07:36,440 --> 00:07:40,480 Speaker 1: Is one of them is an expert on false memory, 114 00:07:40,680 --> 00:07:45,080 Speaker 1: and it's a woman who testified at Harvey Weinstein's trial 115 00:07:45,240 --> 00:07:49,080 Speaker 1: that people can have false memories of some traumatic event 116 00:07:49,320 --> 00:07:53,600 Speaker 1: like a sexual assault. And she testified at Harvey Weinstein's 117 00:07:53,600 --> 00:07:56,520 Speaker 1: trial that maybe these women were making up these stories 118 00:07:56,680 --> 00:08:00,320 Speaker 1: and the jury did believe it and rejected that and 119 00:08:00,360 --> 00:08:04,960 Speaker 1: convicted Harvey Weinstein. The prosecution says that this doctor and 120 00:08:05,000 --> 00:08:07,880 Speaker 1: this expert has never been allowed to testify in federal court. 121 00:08:08,200 --> 00:08:11,720 Speaker 1: That's also a pending request. They also want to call 122 00:08:11,840 --> 00:08:14,960 Speaker 1: an expert that says there's no such thing as grooming 123 00:08:15,120 --> 00:08:18,960 Speaker 1: in a sexual abuse case. You know, we've heard, now, 124 00:08:19,600 --> 00:08:22,800 Speaker 1: I guess in the common nomenclature that someone was being 125 00:08:22,880 --> 00:08:28,000 Speaker 1: groomed for abuse by getting presents and gifts and being enticed. 126 00:08:28,720 --> 00:08:30,840 Speaker 1: And I guess the defense is trying to blunt that 127 00:08:31,200 --> 00:08:34,360 Speaker 1: with suggesting there is no such thing as grooming. This 128 00:08:34,520 --> 00:08:39,679 Speaker 1: is just a concoctive theory or concoctive terminology. It's kind 129 00:08:39,720 --> 00:08:43,520 Speaker 1: of psycho babble, and that it's really just being nice 130 00:08:43,880 --> 00:08:47,080 Speaker 1: can be misinterpreted as grooming. So they were trying to 131 00:08:47,160 --> 00:08:50,640 Speaker 1: keep the testimony about grooming out of the case. It 132 00:08:50,679 --> 00:08:53,320 Speaker 1: sounds like the judges willing and favor the government and 133 00:08:53,440 --> 00:08:57,840 Speaker 1: not allowing this claim that grooming doesn't exist. They're also 134 00:08:58,320 --> 00:09:04,240 Speaker 1: arguing that Epstein had the halo effect, and they argue 135 00:09:04,400 --> 00:09:06,719 Speaker 1: that they want to have an expert that he had 136 00:09:06,720 --> 00:09:11,840 Speaker 1: a personality trait he was able to exploit the halo effect, 137 00:09:11,960 --> 00:09:16,599 Speaker 1: like surrounded by this aura of wonderfulness that automatically attracted 138 00:09:16,640 --> 00:09:20,560 Speaker 1: people to him, and that people were attracted to his wealth, 139 00:09:20,640 --> 00:09:22,920 Speaker 1: some people seeking some of the wealth that he had 140 00:09:22,920 --> 00:09:26,760 Speaker 1: and his aura of attractiveness, if you will. It sounds 141 00:09:26,800 --> 00:09:30,040 Speaker 1: like the defense wants to argue that, you know, maybe 142 00:09:30,080 --> 00:09:34,880 Speaker 1: perhaps Maxwell fell into that lore of Epstein's halo effect 143 00:09:34,960 --> 00:09:38,240 Speaker 1: and that she too came under his spell. So is 144 00:09:38,240 --> 00:09:41,640 Speaker 1: there any chance that she'll take the stand in her 145 00:09:41,679 --> 00:09:45,800 Speaker 1: own defense. I don't think so, mainly because she's are 146 00:09:45,840 --> 00:09:50,040 Speaker 1: also charged with perjury and she's charged with wine under 147 00:09:50,040 --> 00:09:56,239 Speaker 1: oath during depositions she gave in that Virginia Gufrey defamation lawsuit. 148 00:09:56,720 --> 00:10:01,280 Speaker 1: So grew Fris lawyers David Boy's question x well, and 149 00:10:01,720 --> 00:10:05,000 Speaker 1: the government says that based on her answers claiming that 150 00:10:05,040 --> 00:10:09,120 Speaker 1: she didn't know anything about sexualized massages involving teenage girls 151 00:10:09,720 --> 00:10:13,080 Speaker 1: under the age of consent, that she was lying, and 152 00:10:13,160 --> 00:10:15,640 Speaker 1: so they charged her with two counts of perjury. So 153 00:10:15,679 --> 00:10:18,680 Speaker 1: the judge has ruled that those perjury counts will be 154 00:10:18,760 --> 00:10:23,160 Speaker 1: tried later, and so Maxwell would be opening herself up 155 00:10:23,200 --> 00:10:27,880 Speaker 1: to basically getting confronted about whether or not those were 156 00:10:27,920 --> 00:10:32,160 Speaker 1: wise before that perjury case can go forward. I don't 157 00:10:32,160 --> 00:10:34,839 Speaker 1: think her lawyers want to put her in that position. 158 00:10:35,480 --> 00:10:38,480 Speaker 1: So how does she appear You've been sitting through jury selection. 159 00:10:38,520 --> 00:10:41,920 Speaker 1: How does she appear in the courtroom? Well, it's been 160 00:10:41,960 --> 00:10:45,920 Speaker 1: an interesting transformation. I mean we all had seen her 161 00:10:46,040 --> 00:10:51,000 Speaker 1: with that great short Bob's black haircut, you know, shining 162 00:10:51,040 --> 00:10:55,640 Speaker 1: black hair, dangling earring, dressed at gala's and going to 163 00:10:55,760 --> 00:11:00,000 Speaker 1: events smiling, you know, as a British socialite. She's even 164 00:11:00,080 --> 00:11:03,840 Speaker 1: photographed going to the Ascot Races, the Royal Ascot Races 165 00:11:03,880 --> 00:11:07,280 Speaker 1: with Prince Andrew in a giant hat and beautiful clothes. 166 00:11:07,600 --> 00:11:11,240 Speaker 1: She came to court earlier this year and she was 167 00:11:11,360 --> 00:11:15,920 Speaker 1: just you know, drawn out, pale, wearing prison guard like 168 00:11:16,040 --> 00:11:20,400 Speaker 1: prison fatigues, and she was shackled like Marley's Ghost, wearing 169 00:11:20,480 --> 00:11:23,559 Speaker 1: a chain around her waist and she was handcuffed to 170 00:11:23,600 --> 00:11:26,439 Speaker 1: that chain, and then she had shackles around her ankles. 171 00:11:26,480 --> 00:11:29,840 Speaker 1: The first day she came in for the hearings this week, 172 00:11:30,280 --> 00:11:34,000 Speaker 1: they started individual questioning of jurors. She was wearing a 173 00:11:34,080 --> 00:11:38,800 Speaker 1: black turtleneck and a pair of gray slacks and like 174 00:11:38,920 --> 00:11:41,640 Speaker 1: black ballet flats. She had a huge smile on her 175 00:11:41,640 --> 00:11:45,840 Speaker 1: face and she hugged all of her lawyers and seem 176 00:11:46,000 --> 00:11:49,760 Speaker 1: very chipper and happy, and she's been very animated. She's 177 00:11:49,840 --> 00:11:56,160 Speaker 1: also been irritated, apparently by the court artists. So she 178 00:11:56,320 --> 00:11:59,959 Speaker 1: has turned around and they have, you know, court sketch artists, 179 00:12:00,000 --> 00:12:04,120 Speaker 1: because photography is not allowed in federal court. So there's 180 00:12:04,200 --> 00:12:07,040 Speaker 1: these professional artists that come to court and they draw 181 00:12:07,320 --> 00:12:09,400 Speaker 1: the scene, and they may draw the witness that they 182 00:12:09,480 --> 00:12:12,320 Speaker 1: draw the descendants, and they draw the judge. In this case, 183 00:12:12,320 --> 00:12:13,920 Speaker 1: they're not going to be allowed to draw some of 184 00:12:13,960 --> 00:12:18,840 Speaker 1: these witnesses, these women accusers. But Maxwell seemed irritated. And 185 00:12:19,000 --> 00:12:21,400 Speaker 1: I was sitting next to one of the court artists 186 00:12:21,880 --> 00:12:24,760 Speaker 1: and Maxwell shot a look at me and then went 187 00:12:24,840 --> 00:12:28,720 Speaker 1: over and started scribbling madly on her pad. She had 188 00:12:28,760 --> 00:12:32,080 Speaker 1: like a notepad, so she was drawing the court artists 189 00:12:32,120 --> 00:12:35,920 Speaker 1: as they drew her. And she looked very fierce. Oh, 190 00:12:36,559 --> 00:12:38,839 Speaker 1: I guess everyone deals with it in their own way 191 00:12:38,880 --> 00:12:42,480 Speaker 1: of the pressures of being on trial. How is jury 192 00:12:42,520 --> 00:12:46,840 Speaker 1: selection been going, What kinds of concerns has the judge 193 00:12:46,840 --> 00:12:51,040 Speaker 1: been addressing. The judge has basically tried to find out 194 00:12:51,200 --> 00:12:53,840 Speaker 1: what they know about the f Stein case and what 195 00:12:53,920 --> 00:12:57,960 Speaker 1: do they know about Maxwell if they seen the Netflix series. 196 00:12:58,040 --> 00:13:00,160 Speaker 1: You know, I think there's been three different up for 197 00:13:00,240 --> 00:13:02,840 Speaker 1: a television series. Of books have been written about this. 198 00:13:03,360 --> 00:13:07,920 Speaker 1: The Miami Harold reporter Julie Brown investigated it for The 199 00:13:07,960 --> 00:13:11,520 Speaker 1: Miami Harold into the multi part series. She wrote a 200 00:13:11,520 --> 00:13:14,000 Speaker 1: book that just come out. So the judge needs to 201 00:13:14,040 --> 00:13:17,840 Speaker 1: find out what they know about Epstein Maxwell case, and 202 00:13:17,880 --> 00:13:20,680 Speaker 1: they have any biases or prejudice based on what they've 203 00:13:20,720 --> 00:13:23,720 Speaker 1: known or read. And so there was even a guy 204 00:13:23,800 --> 00:13:27,280 Speaker 1: today we had that actually met Epstein, which seems like 205 00:13:27,320 --> 00:13:29,640 Speaker 1: if you've got a jury that comes from the southern 206 00:13:29,640 --> 00:13:35,360 Speaker 1: district of New York's five Counties, which includes Manhattan, the Bronx, Westchester, 207 00:13:35,480 --> 00:13:38,840 Speaker 1: Putnam and Rockland County, you would think that somebody in 208 00:13:38,880 --> 00:13:43,240 Speaker 1: Manhattan in all these decades where Epstein lived might have 209 00:13:43,280 --> 00:13:46,200 Speaker 1: had some interactions with him. I've certainly covered trials since 210 00:13:46,240 --> 00:13:48,760 Speaker 1: the descendants, neighbors, you know, show up on the jury 211 00:13:48,840 --> 00:13:51,720 Speaker 1: or something. But in this case, there was only one 212 00:13:51,800 --> 00:13:55,360 Speaker 1: guy out of dozens of people interviewed, and he said 213 00:13:55,840 --> 00:13:59,000 Speaker 1: he had had a business feeling with Epstein, who was 214 00:13:59,040 --> 00:14:03,400 Speaker 1: an investor in his fund, and that he met Epstein once, 215 00:14:03,520 --> 00:14:07,640 Speaker 1: very briefly for thirty seconds. So um, the judge asked, 216 00:14:07,720 --> 00:14:10,480 Speaker 1: having met Epstein, did that caused him to follow the 217 00:14:10,520 --> 00:14:13,240 Speaker 1: case more closely, which he said yes, So he was 218 00:14:13,280 --> 00:14:17,679 Speaker 1: actually excused our opening statements on Monday. No. Actually, they 219 00:14:17,720 --> 00:14:21,080 Speaker 1: went through questionnaire with like about six hundred people that 220 00:14:21,160 --> 00:14:24,920 Speaker 1: they summoned. Of those six hundred, they brought in two 221 00:14:25,000 --> 00:14:28,800 Speaker 1: hundred thirty one that qualified based on their answers, there 222 00:14:28,880 --> 00:14:33,320 Speaker 1: was nothing really apparent that you know, disqualified them from sitting. 223 00:14:33,880 --> 00:14:38,600 Speaker 1: And then the judge interviewed uh, almost sixty people starting 224 00:14:38,640 --> 00:14:41,560 Speaker 1: on Monday, and she's been doing whole day sessions of 225 00:14:41,720 --> 00:14:46,479 Speaker 1: nine hours at a time interviewing, so she's got about 226 00:14:46,520 --> 00:14:50,960 Speaker 1: sixty and she's allowing the lawyers they know who these 227 00:14:51,000 --> 00:14:53,680 Speaker 1: potential jurors are, and they have the names, they're going 228 00:14:53,720 --> 00:14:56,680 Speaker 1: to be allowed to see if there's any conflict or 229 00:14:56,680 --> 00:14:59,800 Speaker 1: they have any objection students people. So she's giving them 230 00:14:59,800 --> 00:15:02,000 Speaker 1: time him to do the research and figure out who 231 00:15:02,000 --> 00:15:04,280 Speaker 1: they want on the jury, and they're going to actually 232 00:15:04,320 --> 00:15:07,880 Speaker 1: come into court on November twenty nine. They're gonna pick 233 00:15:07,920 --> 00:15:11,560 Speaker 1: the jury and do peremptory challenges and they're going to 234 00:15:11,760 --> 00:15:15,840 Speaker 1: pick a jury of twelve and six alternates on and 235 00:15:15,840 --> 00:15:18,720 Speaker 1: then they're going to do opening statements. So, and the 236 00:15:18,800 --> 00:15:22,640 Speaker 1: judge herself has made some news recently. Yeah, it was 237 00:15:22,720 --> 00:15:25,880 Speaker 1: kind of surprising. Uh, she was very corey about it. 238 00:15:25,920 --> 00:15:28,960 Speaker 1: But she announced everyone after it came out in the 239 00:15:29,000 --> 00:15:33,120 Speaker 1: New York Times that Senator Charles Schimmer was recommending her 240 00:15:33,320 --> 00:15:35,760 Speaker 1: to be on the federal appeals court called the Second 241 00:15:35,800 --> 00:15:39,240 Speaker 1: Circuit Court of Appeals. So she told everyone she wanted 242 00:15:39,280 --> 00:15:42,200 Speaker 1: to give them comfort that she intended to stay with 243 00:15:42,240 --> 00:15:44,240 Speaker 1: the case and keep the case till it was done. 244 00:15:44,480 --> 00:15:46,160 Speaker 1: And we have had judges in the past that have 245 00:15:46,320 --> 00:15:50,560 Speaker 1: kept cases, like Denny Chin, federal judge in the Southern District, 246 00:15:50,720 --> 00:15:53,720 Speaker 1: and he got nominated to the Second Circuit Court of 247 00:15:53,760 --> 00:15:56,520 Speaker 1: Appeals while he still had the made Off Turning made 248 00:15:56,520 --> 00:15:59,400 Speaker 1: off case, so he kept it even after he was 249 00:15:59,440 --> 00:16:02,400 Speaker 1: on the Circuit. Thanks for being the Bloomberg Gloss Show, Patty. 250 00:16:02,640 --> 00:16:08,120 Speaker 1: That's Bloomberg Legal reporter Patricia Hurtado. The prosecution is wrapping 251 00:16:08,200 --> 00:16:11,680 Speaker 1: up its case against Elizabeth Holmes, arguing that Holmes was 252 00:16:11,760 --> 00:16:15,600 Speaker 1: remarkably deceptive and building blood testing start up there a 253 00:16:15,720 --> 00:16:19,880 Speaker 1: nose into a nine billion dollar company, dazzling partners and 254 00:16:19,920 --> 00:16:23,600 Speaker 1: investors with the expectation they would profit from a revolution 255 00:16:23,640 --> 00:16:27,400 Speaker 1: in healthcare, even though she knew her blood analyzers were 256 00:16:27,400 --> 00:16:30,600 Speaker 1: failed technology. Holmes is now at the point in the 257 00:16:30,680 --> 00:16:33,840 Speaker 1: trial where she'll have to decide whether she'll testify in 258 00:16:33,920 --> 00:16:38,200 Speaker 1: her own defense. Joining me is Bloomberg Legal reporter Joel Rosenblatt, 259 00:16:38,320 --> 00:16:42,000 Speaker 1: who's been covering the trial. During the prosecution's case, what 260 00:16:42,120 --> 00:16:46,920 Speaker 1: have jurors been learning about theorophns? What are the big takeaways? 261 00:16:46,920 --> 00:16:49,640 Speaker 1: A big take leader a number of recurring themes that 262 00:16:49,720 --> 00:16:53,400 Speaker 1: the prosecution has just kind of hammered away at One 263 00:16:53,440 --> 00:16:58,760 Speaker 1: would be former THEOS employees, including the highest level lab director, 264 00:16:59,520 --> 00:17:04,400 Speaker 1: having deep misgivings about the accuracy of fairness blood testing machines, 265 00:17:04,920 --> 00:17:11,600 Speaker 1: raising those concerns to Elizabeth Homes and eventually being pressured 266 00:17:11,680 --> 00:17:15,200 Speaker 1: to kind of find a way around the results, and eventually, 267 00:17:15,240 --> 00:17:19,400 Speaker 1: because of those misgivings, because they so deeply offended, these 268 00:17:19,640 --> 00:17:24,919 Speaker 1: employees sense of scientific integrity, you know, their integrity as scientists, 269 00:17:25,160 --> 00:17:29,879 Speaker 1: but also their own personal morality, quitting the company. Oftentimes 270 00:17:29,920 --> 00:17:32,199 Speaker 1: they're not lasting more than a year or so, but 271 00:17:32,400 --> 00:17:37,560 Speaker 1: very committed, high level, very highly educated employees, just not 272 00:17:37,720 --> 00:17:41,000 Speaker 1: wanting to stay, unable to stay. That was kind of 273 00:17:41,000 --> 00:17:43,919 Speaker 1: the first piece of what they've heard. Then the prosecution 274 00:17:43,960 --> 00:17:49,400 Speaker 1: moved into investors and how investors were misled by Elizabeth 275 00:17:49,400 --> 00:17:52,679 Speaker 1: Holmes about the accuracy, which you know from the previous 276 00:17:52,720 --> 00:17:56,280 Speaker 1: testimony that just described you knew wasn't there. And then 277 00:17:56,320 --> 00:17:59,919 Speaker 1: also the work that she was doing with pharmaceutical company. 278 00:18:00,760 --> 00:18:04,719 Speaker 1: So early on, Saranos did indeed have some contracts with 279 00:18:04,840 --> 00:18:09,480 Speaker 1: pharmaceutical companies who were interested in her blood analyzer, but 280 00:18:09,800 --> 00:18:12,600 Speaker 1: eventually they didn't see the results that they thought were 281 00:18:12,880 --> 00:18:16,600 Speaker 1: accurate enough for them to continue that relationship. What George 282 00:18:16,640 --> 00:18:21,320 Speaker 1: have seen is that in some instances Elizabeth Holmes presented 283 00:18:21,359 --> 00:18:27,240 Speaker 1: reports showing that her analyzer was was accurate, but lifting 284 00:18:27,440 --> 00:18:32,520 Speaker 1: the logos of Fiser, for example, onto this report, and 285 00:18:32,880 --> 00:18:37,800 Speaker 1: those reports were essentially falsified to show that her analyzer 286 00:18:37,880 --> 00:18:40,760 Speaker 1: was accurate, when in fact these companies walked away from 287 00:18:40,800 --> 00:18:44,879 Speaker 1: it precisely because it wasn't accurate enough. So that's a 288 00:18:45,000 --> 00:18:49,960 Speaker 1: level of just kind of fabrication, of falsification, of plagiarism 289 00:18:50,000 --> 00:18:53,400 Speaker 1: that was It's rather blatant, it's pretty shocking. The third 290 00:18:53,440 --> 00:18:55,879 Speaker 1: one is that is part of her promotion of the 291 00:18:55,920 --> 00:19:00,560 Speaker 1: analyzer to investors, she told investors and kind of the 292 00:19:00,560 --> 00:19:04,800 Speaker 1: world rather widely that her blood test analyzer was being 293 00:19:05,119 --> 00:19:07,520 Speaker 1: had been adopted by the U. S. Military, and was 294 00:19:07,560 --> 00:19:12,280 Speaker 1: being used on the battlefield in combat on Metavac helicopters. 295 00:19:12,680 --> 00:19:15,800 Speaker 1: This was proven to be not true. It was never true. 296 00:19:16,160 --> 00:19:18,600 Speaker 1: There was one small contract she had with the U. S. 297 00:19:18,720 --> 00:19:22,240 Speaker 1: Army very early on, but it was never adopted by 298 00:19:22,240 --> 00:19:25,199 Speaker 1: the military, it was never used in any way in 299 00:19:25,280 --> 00:19:29,160 Speaker 1: what she described, and this was refuted by no less 300 00:19:29,200 --> 00:19:33,040 Speaker 1: than former Secretary of Defense James Maddis, who took the stand. 301 00:19:33,320 --> 00:19:36,480 Speaker 1: So that was another example of just a blatant lie 302 00:19:36,560 --> 00:19:40,919 Speaker 1: really that she's telling investors, who also factored that heavily 303 00:19:40,920 --> 00:19:45,000 Speaker 1: in their decision to give her hundreds of millions of dollars. 304 00:19:45,000 --> 00:19:49,080 Speaker 1: So it sounds like a pretty powerful prosecution case. So far. 305 00:19:49,320 --> 00:19:52,919 Speaker 1: Was the defense able to make any inroads with these witnesses. 306 00:19:53,640 --> 00:19:57,800 Speaker 1: The inroads that they've made have been on cross examination. 307 00:19:58,920 --> 00:20:02,160 Speaker 1: In my estimation, it's it's been hard to follow. Uh. 308 00:20:02,320 --> 00:20:04,800 Speaker 1: First of all, it's difficult. It's just difficult to kind of, 309 00:20:04,880 --> 00:20:08,840 Speaker 1: I think overcome that testimony and where they are. It's 310 00:20:08,840 --> 00:20:12,399 Speaker 1: been a kind of scatter shot approach. And so now 311 00:20:12,440 --> 00:20:18,120 Speaker 1: what we've seen is long, long cross examinations that are 312 00:20:19,200 --> 00:20:23,520 Speaker 1: beginning to irritate the judge. They're irritating everyone else, including 313 00:20:24,280 --> 00:20:27,280 Speaker 1: one presumes the jury. And I think it's an effort 314 00:20:27,320 --> 00:20:30,639 Speaker 1: to draw out the trial, you know, I think the 315 00:20:30,640 --> 00:20:34,480 Speaker 1: the short answer to your question is the cross examinations 316 00:20:34,480 --> 00:20:37,320 Speaker 1: have not been particularly effective, at least as far as 317 00:20:37,359 --> 00:20:40,240 Speaker 1: I can tell. They're hard to follow. Their their scatter shot, 318 00:20:40,640 --> 00:20:44,920 Speaker 1: and they're they're long. Has there been any mention of 319 00:20:45,200 --> 00:20:51,560 Speaker 1: Sonny Belwani and his part in this, Well, Sonny is 320 00:20:51,800 --> 00:20:55,320 Speaker 1: a co conspirator, He was charged as a co conspirator. 321 00:20:55,800 --> 00:20:58,840 Speaker 1: Their trials were severed, so he's going to be tried 322 00:20:58,960 --> 00:21:02,840 Speaker 1: tried separately starting in January. And he comes up a lot. 323 00:21:03,080 --> 00:21:07,480 Speaker 1: So he's been mentioned a lot. I mean, they were, 324 00:21:07,520 --> 00:21:12,160 Speaker 1: according to the prosecution, partners in crime here. So he figures, 325 00:21:12,680 --> 00:21:17,080 Speaker 1: he figures prominently. It's a kind of careful dance prosecutors 326 00:21:17,160 --> 00:21:20,040 Speaker 1: have to do there because it's Elizabeth Holmes who's on trial, 327 00:21:20,440 --> 00:21:24,960 Speaker 1: and they've taken extraordinary efforts to show that while they 328 00:21:25,080 --> 00:21:29,359 Speaker 1: were co conspirators, that she was in charge. So for 329 00:21:29,560 --> 00:21:32,679 Speaker 1: the purposes of this trial and trying to get her conviction, 330 00:21:33,200 --> 00:21:35,399 Speaker 1: they've had to show that she was in charge. And 331 00:21:35,400 --> 00:21:41,200 Speaker 1: they've raised numerous instances elicited testimony in which former employees 332 00:21:41,720 --> 00:21:46,919 Speaker 1: or business partners said that in meetings that they both attended, 333 00:21:47,680 --> 00:21:51,040 Speaker 1: Elizabeth Holmes was really in charge. You know what the 334 00:21:51,080 --> 00:21:55,040 Speaker 1: defense is going to be. Did they say they're opening 335 00:21:55,119 --> 00:21:58,800 Speaker 1: statements what the defense would be? Well, this is the 336 00:21:58,840 --> 00:22:02,560 Speaker 1: big question war and and we're nearly at the crossroads. 337 00:22:02,680 --> 00:22:06,120 Speaker 1: The prosecution has said it will rest this week. I'm 338 00:22:06,119 --> 00:22:09,200 Speaker 1: not sure if that's going to happen. But your question 339 00:22:09,280 --> 00:22:13,000 Speaker 1: is the big question, because she indicated before the trial 340 00:22:13,359 --> 00:22:16,280 Speaker 1: that she may raise a defense pointing to Sunny Baul 341 00:22:16,320 --> 00:22:21,119 Speaker 1: Wahani as having been so uh psychologically in some instances 342 00:22:21,119 --> 00:22:25,760 Speaker 1: even physically abusive, that she was in fact controlled by him, 343 00:22:25,880 --> 00:22:29,240 Speaker 1: that her that his abuse was so so strong and 344 00:22:29,280 --> 00:22:35,560 Speaker 1: so forceful and so formative that she was essentially doing, 345 00:22:35,800 --> 00:22:39,040 Speaker 1: you know, the things she's accused of under his control. 346 00:22:39,600 --> 00:22:44,280 Speaker 1: So that has not been raised so plainly yet at trial. 347 00:22:44,359 --> 00:22:48,399 Speaker 1: Before the jury in opening arguments, her lawyer did hint 348 00:22:48,440 --> 00:22:51,600 Speaker 1: at it that that this relationship she was in a 349 00:22:51,720 --> 00:22:56,000 Speaker 1: romantic relationship with Sunny while they were both at para nose. 350 00:22:56,200 --> 00:22:59,919 Speaker 1: He was, he was the president. Lance Wade, her lawyer, 351 00:23:00,000 --> 00:23:03,960 Speaker 1: indicated in opening arguments that this relationship was one of 352 00:23:04,200 --> 00:23:07,760 Speaker 1: a number of bad choices that Elizabeth Holmes made, So 353 00:23:08,240 --> 00:23:10,879 Speaker 1: he has hinted at it. It's just not clear. We 354 00:23:11,040 --> 00:23:13,400 Speaker 1: just don't know what her defense is going to be yet. 355 00:23:13,520 --> 00:23:16,520 Speaker 1: We don't know if she's going to pursue this unprecedented 356 00:23:16,640 --> 00:23:19,600 Speaker 1: defense to a you know, a white car criminal fraud case. Right, 357 00:23:19,600 --> 00:23:21,800 Speaker 1: it is unprecedented in this kind of a case. And 358 00:23:21,840 --> 00:23:26,080 Speaker 1: then we've heard that kind of defense coming from battered 359 00:23:26,119 --> 00:23:30,160 Speaker 1: women as a self defense, usually to some kind of 360 00:23:30,600 --> 00:23:34,919 Speaker 1: criminal act, but not in this context. So has the 361 00:23:35,000 --> 00:23:41,080 Speaker 1: prosecution been anticipating it in any way? Well, yes, I 362 00:23:41,080 --> 00:23:44,040 Speaker 1: mean the short answer is yes. You can see there 363 00:23:44,040 --> 00:23:46,879 Speaker 1: have been kind of preemptive strikes. I think this, this 364 00:23:46,920 --> 00:23:49,840 Speaker 1: effort that I explained earlier to show that she was 365 00:23:49,880 --> 00:23:52,960 Speaker 1: in charge, can be seen as a preemptive strike to 366 00:23:53,080 --> 00:23:56,239 Speaker 1: this type of defense. In other words, if she's in 367 00:23:56,320 --> 00:23:59,760 Speaker 1: charge and she's running a company, not only is she 368 00:24:00,200 --> 00:24:03,840 Speaker 1: kind of superior, not only is she Sunny's superior, and 369 00:24:03,920 --> 00:24:07,560 Speaker 1: she was in fact entitled his superior as chief executive, 370 00:24:07,800 --> 00:24:10,879 Speaker 1: but she was running the show. And so the idea is, 371 00:24:10,920 --> 00:24:16,200 Speaker 1: how could she possibly be so highly functional and so 372 00:24:16,480 --> 00:24:19,879 Speaker 1: in charge and and yet at the same time being 373 00:24:19,960 --> 00:24:24,919 Speaker 1: so manipulated by Bye Sonny Bowani. The defense is a 374 00:24:24,960 --> 00:24:28,880 Speaker 1: is a real stretch because you know, essentially what they 375 00:24:28,920 --> 00:24:32,240 Speaker 1: have to prove is that she was so under his 376 00:24:32,280 --> 00:24:35,479 Speaker 1: control that she couldn't tell right from wrong. That's that's 377 00:24:35,520 --> 00:24:37,919 Speaker 1: what they have to prove. And I think that's a 378 00:24:37,960 --> 00:24:42,320 Speaker 1: real stretch. She has the benefit of Balwannie not being 379 00:24:42,400 --> 00:24:45,080 Speaker 1: in the courtroom, not being on trial with her. As 380 00:24:45,119 --> 00:24:49,320 Speaker 1: you said, his his trial was severed, so she can 381 00:24:49,359 --> 00:24:51,199 Speaker 1: say what she wants to and no one will be 382 00:24:51,240 --> 00:24:54,440 Speaker 1: able to check with him. Well, that's right, That's exactly 383 00:24:54,440 --> 00:24:57,199 Speaker 1: why the trial was severed, because Sonny Bowani made the 384 00:24:57,200 --> 00:25:00,000 Speaker 1: point that he can't possibly defend against the government's allegations 385 00:25:00,359 --> 00:25:04,000 Speaker 1: and hers at the same time. So she has yea 386 00:25:04,560 --> 00:25:08,280 Speaker 1: wide latitude and lee way to to to blame him 387 00:25:08,440 --> 00:25:12,600 Speaker 1: and point to him. She's under oath, right, so if 388 00:25:12,640 --> 00:25:16,680 Speaker 1: she testifies or whoever testifies on her behalf, she has 389 00:25:16,720 --> 00:25:19,359 Speaker 1: she does have an expert lined up as a as 390 00:25:19,359 --> 00:25:25,920 Speaker 1: a potential witness as psychological expert. You know, everybody, everybody 391 00:25:26,200 --> 00:25:29,720 Speaker 1: who's understand is sworn to tell the truth. So she 392 00:25:29,760 --> 00:25:32,800 Speaker 1: can say what she wants. But unless she's willing to 393 00:25:32,920 --> 00:25:37,760 Speaker 1: just lie under oath and risk being in contempt of court. Uh, 394 00:25:37,920 --> 00:25:41,920 Speaker 1: it has to be truthful. So she's been painted as 395 00:25:42,200 --> 00:25:46,680 Speaker 1: very charismatic. I mean, we've all seen the interviews she did. 396 00:25:47,200 --> 00:25:50,879 Speaker 1: What is she like in the courtroom? Well, in the courtroom, 397 00:25:51,040 --> 00:25:53,400 Speaker 1: you know, she hasn't had a chance to speak yet, 398 00:25:54,240 --> 00:25:57,280 Speaker 1: and again it's not clear if she's going to. Most 399 00:25:57,280 --> 00:25:59,920 Speaker 1: criminal defense players will tell you that they don't want 400 00:26:00,320 --> 00:26:03,919 Speaker 1: they don't want their defendant to understand. So so she's 401 00:26:04,080 --> 00:26:06,000 Speaker 1: she hasn't had a chance to speak even if she 402 00:26:06,119 --> 00:26:11,520 Speaker 1: wanted to. In the courtroom, she sits perfectly still. She's 403 00:26:11,600 --> 00:26:15,320 Speaker 1: dressed very well, um, not in the in the black 404 00:26:15,600 --> 00:26:19,720 Speaker 1: sweater that she wore as CEO, but generally in skirts 405 00:26:19,840 --> 00:26:24,280 Speaker 1: and dress coats and dressed very carefully conservatively, and she 406 00:26:24,400 --> 00:26:29,560 Speaker 1: sits remarkably to me, perfectly upright in her chair between 407 00:26:29,600 --> 00:26:33,359 Speaker 1: her lawyers. Her back doesn't touch the back of her chair, 408 00:26:33,920 --> 00:26:38,359 Speaker 1: and she's looking just directly at witnesses the whole time, 409 00:26:38,840 --> 00:26:43,960 Speaker 1: and on Breakes. She's very friendly. I've run into her 410 00:26:44,040 --> 00:26:47,560 Speaker 1: numerous times. She's friendly to everybody. She's with her here 411 00:26:47,560 --> 00:26:51,600 Speaker 1: with her mother every day, her partner, and I believe 412 00:26:51,720 --> 00:26:55,320 Speaker 1: husband now has oftentimes been here. So she has family 413 00:26:55,400 --> 00:27:01,720 Speaker 1: here and she's um. She seems retentive and relaxed. And 414 00:27:01,760 --> 00:27:05,679 Speaker 1: I'll just add that jury consultants I've spoken to have 415 00:27:05,800 --> 00:27:08,399 Speaker 1: said that in this case, this might be a case 416 00:27:08,400 --> 00:27:13,600 Speaker 1: where the defendant should testify, just given how dynamic she 417 00:27:13,600 --> 00:27:16,520 Speaker 1: she is and how she was as as CEO and 418 00:27:16,600 --> 00:27:21,040 Speaker 1: presumably still is al kind of nimble and intelligent and 419 00:27:21,400 --> 00:27:24,720 Speaker 1: carefully spoken she is. I've wondered one thing, she's a 420 00:27:24,760 --> 00:27:28,119 Speaker 1: new mother. Is the jury aware of that. I have 421 00:27:28,280 --> 00:27:33,360 Speaker 1: seen press accounts where um, this is kind of explained, 422 00:27:33,880 --> 00:27:38,200 Speaker 1: UM myself a father. But I haven't seen no indication 423 00:27:39,119 --> 00:27:44,199 Speaker 1: of Elizabeth Holmes showing the jury that she is a 424 00:27:44,240 --> 00:27:48,080 Speaker 1: new mother. There is no indication of that to me. 425 00:27:48,280 --> 00:27:50,879 Speaker 1: I've not seen it. I mean I've personally seen it 426 00:27:51,200 --> 00:27:54,520 Speaker 1: when the jury is out of the courtroom. In other words, 427 00:27:54,640 --> 00:27:58,280 Speaker 1: she appears to seems to have a nanny who's here, um, 428 00:27:58,280 --> 00:28:04,360 Speaker 1: who's visiting, and she is taking breaks periodically. Um, presumably 429 00:28:05,040 --> 00:28:07,919 Speaker 1: to either be with her child or just taking the 430 00:28:07,920 --> 00:28:11,560 Speaker 1: breaks of that a new mom needs um. But I 431 00:28:11,640 --> 00:28:16,640 Speaker 1: have not seen the jury seeing evidence of that. They 432 00:28:16,680 --> 00:28:19,000 Speaker 1: will if she takes the standard. Yeah, yeah, and I'll 433 00:28:19,040 --> 00:28:21,720 Speaker 1: add and all that that Lance Wade, her lawyers had 434 00:28:22,040 --> 00:28:24,800 Speaker 1: pointed out an opening remarks that she lives, you know, 435 00:28:24,920 --> 00:28:29,440 Speaker 1: nearby with her husband, and and he did mention her 436 00:28:29,520 --> 00:28:33,960 Speaker 1: child going to be very interesting if she testifies. Thanks 437 00:28:33,960 --> 00:28:38,040 Speaker 1: so much, Joel. That's Joel Rosen Black, Bloomberg Legal Reporter, 438 00:28:38,640 --> 00:28:40,800 Speaker 1: and that's if the edition of the Bloomberg Law Show. 439 00:28:41,280 --> 00:28:43,240 Speaker 1: Remember you can always get the latest legal news on 440 00:28:43,280 --> 00:28:47,000 Speaker 1: our Bloomberg Law podcast. 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