WEBVTT - Sunny Balwani's Defense in Second Theranos Trial

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<v Speaker 1>This is Bloomberg Law with June Brasso from Bloomberg Radio. Hello, Walgreens,

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<v Speaker 1>Welcome to the ARNS. We're gonna launch in September, but

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<v Speaker 1>we're gonna launch in phases. Phase one. We're gonna use

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<v Speaker 1>the Semens machines to run the tests. I think I

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<v Speaker 1>can program new software for it that says I love

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<v Speaker 1>you all Greens. Just need to know exactly what we're

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<v Speaker 1>running the tests on. Yes, just phase one. The Dropout

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<v Speaker 1>on Hulu is the latest recounting of the spectacular rise

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<v Speaker 1>and fall of Elizabeth Holmes and her blood testing start up,

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<v Speaker 1>paras with a sort of co starring role for her

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<v Speaker 1>former boyfriend and Tharahns president Ramesh Sunny bell Wanni. The

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<v Speaker 1>first episode premiered just in time for the start of

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<v Speaker 1>bell Wanni's trial in the same courthouse where Holmes was

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<v Speaker 1>convicted of de frauding investors in January and on the

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<v Speaker 1>same charges. Joining me is Bloomberg Legal reporter Joel Rosenblatt,

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<v Speaker 1>who also covered the Holmes trial. This trial started about

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<v Speaker 1>two and a half months after the conviction of Elizabeth Holmes.

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<v Speaker 1>Was it difficult to get a jury who didn't know

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<v Speaker 1>about that trial? Incredibly difficult. So the attorneys and the

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<v Speaker 1>court ran into all the same problems that they had

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<v Speaker 1>with Elizabeth Holmes in terms of the exposure to the

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<v Speaker 1>book and just the coverage generally. But now add the

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<v Speaker 1>dropout this docu dropped my series, which has this only

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<v Speaker 1>added to the exposure. So it took five or six

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<v Speaker 1>days and a number of groups of jurors who were excused.

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<v Speaker 1>There was a media circus for Elizabeth Holmes trial. What

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<v Speaker 1>about Balwannies, it's greatly diminished. I mean, it's basically non existent.

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<v Speaker 1>There are journalists covering the trial for sure, but the

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<v Speaker 1>members of the public you don't see them. It's a

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<v Speaker 1>rather a quiet affair. In the opening statements, the prosecutor

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<v Speaker 1>repeatedly started sentences with Bale and Holmes. Tell us what

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<v Speaker 1>that indicates. The opening arguments were very much the same

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<v Speaker 1>as they were against Elizabeth Holmes. They were streamlined, so

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<v Speaker 1>there was a lot cleaner. The rough edges kind of

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<v Speaker 1>weren't there. And by pairing him with Elizabeth, they're really

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<v Speaker 1>aiming at the conspiracy theory. They were indicted as co conspirators,

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<v Speaker 1>so that's an important charge. But also they're just trying

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<v Speaker 1>to pair him with everything that she did, and that's

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<v Speaker 1>not difficult because the texts and emails, all the conversations,

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<v Speaker 1>really all the functions of the company, and they were

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<v Speaker 1>romantically involved. Was there a differentiation between what bal Wanni

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<v Speaker 1>did and what Holmes did or is the prosecution just

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<v Speaker 1>lumping them in together for everything. They're lumping them together

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<v Speaker 1>for most things. I would say, but there is a distinction.

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<v Speaker 1>Sonny boy was in charge of the laboratories, so he

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<v Speaker 1>had more exposure to two important facts. One is the

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<v Speaker 1>bad blood results the inaccuracies of the fair Noose technology.

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<v Speaker 1>He had more exposure to that from both just the

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<v Speaker 1>results themselves, but also complaints from employees about the inaccuracies.

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<v Speaker 1>He also was in charge of finances, or more in

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<v Speaker 1>charge of revenue projections. Elizabeth Holmes tried to blame him

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<v Speaker 1>for that, but he did have more of a Hammond

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<v Speaker 1>in those projections, as well as the company's relationship with Walgreens.

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<v Speaker 1>So there are some differences, and the prosecution wills teek

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<v Speaker 1>to kind of emphasize those areas in which Sonny Boltwani

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<v Speaker 1>was more exposed or had a greater responsibility for what

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<v Speaker 1>they say are the inaccuracies in the fraud. Much was

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<v Speaker 1>made at Holmes trial. She accused Belwanni of emotional and

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<v Speaker 1>sexual abuse, but there won't be any mention of that

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<v Speaker 1>at this trial. I don't think so. I mean, there's

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<v Speaker 1>kind of one very sensational question, which is whether or

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<v Speaker 1>not she's now cooperating with the government to reduce her

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<v Speaker 1>sentence marginally. That would be marginally at this point, given

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<v Speaker 1>how long she waited to cooperate, and whether she'll testify,

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<v Speaker 1>in which case maybe that testimony comes out. But I

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<v Speaker 1>think the chances of her testifying are unlikely, and there's

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<v Speaker 1>no reason she was the one who leveled those charges

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<v Speaker 1>at him, not the government. To the government has no

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<v Speaker 1>interest or really right to mention any of that. Do

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<v Speaker 1>some people actually think that she will testify. Many media,

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<v Speaker 1>of course want her to testify because it would be

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<v Speaker 1>so great, you know, really kind of bring the whole

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<v Speaker 1>thing back. But there's just a lot of risks, and

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<v Speaker 1>it's also been pointed out to me repeatedly that the

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<v Speaker 1>government really doesn't need her for its case. The downside

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<v Speaker 1>of the risk don't outweigh what seemed to be the

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<v Speaker 1>risks of kind of making the trial about her Again.

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<v Speaker 1>I don't think the government wants to do that. Elizabeth

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<v Speaker 1>Holmes made the risky decision of taking the stand. That

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<v Speaker 1>didn't help ultimately, but it might have helped with some

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<v Speaker 1>of the counts against her. What about Bell Wannie, any

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<v Speaker 1>indication that he might take the stand as well? No, again,

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<v Speaker 1>very unlikely. She was compelling, right, I mean, she was believable.

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<v Speaker 1>Whether or not you actually did end up believing what

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<v Speaker 1>she said, she at least had a chance of convincing

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<v Speaker 1>jurors of her side of the story. And it was believable,

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<v Speaker 1>even though maybe it doesn't sound it went there. But

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<v Speaker 1>he didn't have that kind of charisma. He seems uncomfortable

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<v Speaker 1>just generally in the courtroom, in the spotlight, and it's

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<v Speaker 1>just almost unimaginable to believe that he or his lawyers

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<v Speaker 1>would feel that his testimony would serve his defense. It

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<v Speaker 1>would be hard to top her magnetism, that's for sure.

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<v Speaker 1>What did Bani's attorney reveal about the defense in his

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<v Speaker 1>opening statement? You know, this is where this case is

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<v Speaker 1>very interesting to me, and it stands to be completely

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<v Speaker 1>different from Elizabeth Holmes's trial. There's a database at Sarakos

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<v Speaker 1>that collected the results of patient tests giant database and

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<v Speaker 1>it was, for lack of a better word, destroyed, And

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<v Speaker 1>Sunny Bolani and his lawyers are pointing to that database

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<v Speaker 1>to say, the government has selected, you know, just a

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<v Speaker 1>sliver the thinnest fraction of test results of bad test

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<v Speaker 1>results for its case. They're gonna bring patients on saying

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<v Speaker 1>we got inaccurate results. But what Sonny balt Wannis lawyers

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<v Speaker 1>are saying is that there were nine million results in

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<v Speaker 1>this database and you didn't even bother to look at them,

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<v Speaker 1>and so we're being unfairly impugned. There are inaccuracies at

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<v Speaker 1>laboratories all the time, and we suffered maybe a reasonable

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<v Speaker 1>number of inaccuracies, but you failed to look at all

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<v Speaker 1>the great test, all the perfectly accurate results. That's a

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<v Speaker 1>kind of fraught defense in its own way. The government

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<v Speaker 1>alleges that Saranos intentionally destroyed this database. So this trial

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<v Speaker 1>looks like it's going to be headed towards a kind

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<v Speaker 1>of trial about this database. If Sonny Baltwanna continues to

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<v Speaker 1>go down that road, I think it's actually strategically a

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<v Speaker 1>great choice for him. I think it gives them at

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<v Speaker 1>least a chance. Did the defense attorney also point at

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<v Speaker 1>Homes as the real guilty party here. They did. They

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<v Speaker 1>pointed out that she founded the company, she was the CEO,

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<v Speaker 1>she was in charge of the company for years before

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<v Speaker 1>he came on as president, and that's all accurate, and

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<v Speaker 1>so they kind of brushed at that. They didn't go

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<v Speaker 1>as forcefully in that direction as I had expected. As

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<v Speaker 1>I mentioned, it looks like they're relying more on this

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<v Speaker 1>defense based on the defunct database then pointing at her.

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<v Speaker 1>She suffered from the same problem as you mentioned. She

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<v Speaker 1>pointed the finger at him, and now he's left the

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<v Speaker 1>door open to doing that to her. But like I said,

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<v Speaker 1>they're so paired, the text and the communications, the romantic involvements,

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<v Speaker 1>they're just so completely tied together that it's I think

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<v Speaker 1>very difficult for either one to extract themselves from the

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<v Speaker 1>alleged co conspiracy. Holmes was the face of the business

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<v Speaker 1>and she was the darling of the media. There are

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<v Speaker 1>all these different interviews with her, and she was on

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<v Speaker 1>the cover of magazines, all the boasting two investors and

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<v Speaker 1>the media. So was that all done by Holmes? Will

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<v Speaker 1>Bell wanna get a pass on some of that? I

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<v Speaker 1>think he doesn't get a pass on that. I mean,

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<v Speaker 1>he just wasn't. Her testimony her trial showed that he

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<v Speaker 1>had dressed her up and he had prepared her, and

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<v Speaker 1>he had a strong hand in making her be that person.

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<v Speaker 1>But he also revealed that she enjoyed that and that

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<v Speaker 1>was a role that she embraced and he wasn't. Yeah,

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<v Speaker 1>he didn't make many of these public statements. He wasn't

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<v Speaker 1>out there, uh, making these claims as publicly as she was.

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<v Speaker 1>And I think that helps him, but not enough, not

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<v Speaker 1>enough to absolve him. So the charges are the same,

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<v Speaker 1>Are many of the witnesses going to be the same.

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<v Speaker 1>Is it going to be like a rerun? It is?

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<v Speaker 1>It is. I think the one question is whether the

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<v Speaker 1>patients will be different or the government will spend more

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<v Speaker 1>time on patients who claimed that they got bad results

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<v Speaker 1>and what the what the kind of bad effects of

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<v Speaker 1>those bad results were, because the government spent very little

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<v Speaker 1>time on that actually in her trial and she was absolved.

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<v Speaker 1>She was vindicated on all the accounts of patient fraud,

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<v Speaker 1>all of them. So it remains to be seen whether

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<v Speaker 1>or not the government is kind of happy just to

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<v Speaker 1>kind of paint him with these patients, even if they

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<v Speaker 1>don't quite connect him to the fraud against them, or

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<v Speaker 1>if they look to shore up their case and bring

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<v Speaker 1>in more patients or patients with kind of darker, more

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<v Speaker 1>disturbing stories about the test results, and whether or not

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<v Speaker 1>they choose to emphasize that part of their case more. Obviously,

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<v Speaker 1>this isn't a retrial, but it seems a lot like

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<v Speaker 1>a retrial. Who do you think has the advantage, the

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<v Speaker 1>prosecution or the defense. It's hard to say, really. I

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<v Speaker 1>mentioned the opening arguments. The government's opening arguments were really

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<v Speaker 1>strong because they have been through this before and they won, right,

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<v Speaker 1>they won, so you can kind of do what you

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<v Speaker 1>did before and if it isn't broke, then don't fix

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<v Speaker 1>it kind of attitude. On the other hand, sunny Balhalwani

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<v Speaker 1>got to see the whole thing before he has to

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<v Speaker 1>go to trial, and so he knows what's coming, and

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<v Speaker 1>so hard to say. I think the advantage, you have

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<v Speaker 1>to say, on balance goes to the government because of

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<v Speaker 1>the government won the first time, so it's kind of

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<v Speaker 1>like you've got a winning hand and Sunny Balwanni is

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<v Speaker 1>gonna have to do something very special in order to

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<v Speaker 1>up end that. What's happening with Holmes right now, has

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<v Speaker 1>she filed a motion for a retrial. That's a great question,

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<v Speaker 1>because those motions were due and the deadline came and passed,

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<v Speaker 1>and so that, to me, you've raised a lot of questions.

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<v Speaker 1>She's awaiting her sentencing, which isn't until September, and that's

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<v Speaker 1>because the judge wants to see what Sunny bans well.

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<v Speaker 1>First of all, what happens with him, whether he's convicted

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<v Speaker 1>or not, and either way kind of what his role was.

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<v Speaker 1>Especially if he's convicted, he needs to figure out who

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<v Speaker 1>was more culpable in terms of kind of meeting out

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<v Speaker 1>their respective sentences. So he wants the information from this

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<v Speaker 1>trial for sentencing both of them. Whether or not that

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<v Speaker 1>miss deeadline means that she's not going to make those

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<v Speaker 1>filings and is cooperating is a question that I have.

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<v Speaker 1>I don't know the answer, but she could still file

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<v Speaker 1>an appeal. But these kind of routine motions for a retrial,

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<v Speaker 1>like I said, came and went, and that's unusual. That's

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<v Speaker 1>very interesting because as you say, those are usually filed

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<v Speaker 1>after trial. Tell us about the aggravating and mitigating factors

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<v Speaker 1>the judge will consider in sentencing homes well. So she

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<v Speaker 1>was the CEO, and like you said, the face of

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<v Speaker 1>the company and also the person who was the point

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<v Speaker 1>person for the contact with investors, and so she was

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<v Speaker 1>really very heavily involved in deceiving investors. So that's an

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<v Speaker 1>aggravating role. If you're seen as the person who was

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<v Speaker 1>really leading the fraud, that can at some time. But

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<v Speaker 1>the biggest problem for her is the amount of money

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<v Speaker 1>that investors were defrauded of, which if you add up

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<v Speaker 1>accounts that she was convicted on, is a hundred and

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<v Speaker 1>forty four million dollars. That's just an astounding sum of

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<v Speaker 1>money in a wire fraud case. And that some of

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<v Speaker 1>money gets her to around ten years and I think

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<v Speaker 1>that's going to be difficult for her to get out

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<v Speaker 1>from underneath. And so we also have these mitigating factors,

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<v Speaker 1>which is that she is a new mother. Her baby

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<v Speaker 1>was born in July, I believe, and she's likely to

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<v Speaker 1>raise that point as well as the fact that she's

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<v Speaker 1>the first time felon the child. Though is is not

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<v Speaker 1>legally a mitigating factor, it's something that she can raise.

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<v Speaker 1>So depending on what the judge feels about those various

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<v Speaker 1>factors will determine what sentence he arrives. At but he

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<v Speaker 1>also has to send a message to Silicon Valley, and

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<v Speaker 1>you know this is a widely watched case, and he's

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<v Speaker 1>going to want to I think give her some serious time, thanks, Joel.

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<v Speaker 1>That's Bloomberg Legal reporter Joe Rosenblatt on Maye. The c

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<v Speaker 1>d C is lifting the asylum band known as Title

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<v Speaker 1>forty two, which allows migrants and asylum seekers to be

0:13:13.040 --> 0:13:16.560
<v Speaker 1>turned away at the border under a pandemic public health order,

0:13:16.960 --> 0:13:20.640
<v Speaker 1>and three Republican states are taking the Biden administration to

0:13:20.800 --> 0:13:24.440
<v Speaker 1>court over its plans to end the Trump era policy.

0:13:24.520 --> 0:13:27.920
<v Speaker 1>Here's White House Press Secretary Jen Saki. This is a

0:13:27.960 --> 0:13:31.480
<v Speaker 1>decision made by the CDC. It's a public health decision.

0:13:32.040 --> 0:13:34.720
<v Speaker 1>It's not one that should be wrapped up, of course

0:13:34.720 --> 0:13:37.840
<v Speaker 1>in politics. Joining me is Leon Fresco, a partner at

0:13:37.880 --> 0:13:41.679
<v Speaker 1>Hollandon Night. Leon. Is this purely a decision by the

0:13:41.760 --> 0:13:44.880
<v Speaker 1>c d C with public health in mind? Or are

0:13:44.920 --> 0:13:47.760
<v Speaker 1>there political factors at play? Well? I think there are

0:13:47.800 --> 0:13:51.240
<v Speaker 1>a number of issues that the person who is none

0:13:51.240 --> 0:13:53.400
<v Speaker 1>of this has been done in a vactive There's litigation

0:13:53.559 --> 0:13:57.680
<v Speaker 1>in the challenging the dutility of Title forty two. That

0:13:57.840 --> 0:14:01.480
<v Speaker 1>litigation is pricing them in the district of Columbia. B'm

0:14:01.520 --> 0:14:04.840
<v Speaker 1>not using it towards families, And so then the question is,

0:14:04.840 --> 0:14:07.760
<v Speaker 1>is the policy works do things just for single adults?

0:14:07.920 --> 0:14:10.840
<v Speaker 1>And then you start having a difficult question about, well,

0:14:10.840 --> 0:14:13.520
<v Speaker 1>what is the public health reason to use it only

0:14:13.600 --> 0:14:16.160
<v Speaker 1>for single adults and not for families or for kids.

0:14:16.160 --> 0:14:18.760
<v Speaker 1>It's either a public health thing or it's not a

0:14:18.800 --> 0:14:23.040
<v Speaker 1>public health thing. And as other public health restrictions start

0:14:23.160 --> 0:14:26.840
<v Speaker 1>to lessen across the United States, then it becomes more

0:14:26.840 --> 0:14:29.720
<v Speaker 1>and more difficult to justify the use of site afforty too.

0:14:30.080 --> 0:14:33.520
<v Speaker 1>There's political pressure for many Democrats in Congress to live

0:14:33.640 --> 0:14:36.880
<v Speaker 1>site afforty too, and all of that in conjunction then

0:14:37.000 --> 0:14:40.880
<v Speaker 1>of the CDC, who originally wasn't a big plan of

0:14:40.960 --> 0:14:42.880
<v Speaker 1>using tide A forty two has to sort of be

0:14:43.040 --> 0:14:46.080
<v Speaker 1>voted into using it. Now makes it easier for the

0:14:46.160 --> 0:14:49.160
<v Speaker 1>CDC sort of to return to their original position that

0:14:49.320 --> 0:14:53.320
<v Speaker 1>these public health exclusions weren't necessarily the greatest idea to

0:14:53.400 --> 0:14:57.120
<v Speaker 1>begin with. What the use of title for you two did,

0:14:57.240 --> 0:15:01.480
<v Speaker 1>and some called it a pretext to end a asylum claims,

0:15:01.600 --> 0:15:04.120
<v Speaker 1>is that it expelled people before they could make an

0:15:04.120 --> 0:15:08.240
<v Speaker 1>asylum claim. Correct, the normal law is that if anybody

0:15:08.280 --> 0:15:11.320
<v Speaker 1>appears either at the port of entry or even in

0:15:11.360 --> 0:15:14.640
<v Speaker 1>between the ports of entry, meaning they crossed the border illegally,

0:15:15.160 --> 0:15:18.280
<v Speaker 1>the very first thing that happens is whoever encounters them

0:15:18.280 --> 0:15:20.560
<v Speaker 1>has to ask them if they have a fear of

0:15:20.640 --> 0:15:23.960
<v Speaker 1>being returned to the country that they take from, and

0:15:24.000 --> 0:15:25.800
<v Speaker 1>if they do, they have to go through this intricate

0:15:25.880 --> 0:15:28.480
<v Speaker 1>process that decides whether they can stay and make a

0:15:28.560 --> 0:15:30.720
<v Speaker 1>claim here or not. And the point of Pride of

0:15:30.800 --> 0:15:33.520
<v Speaker 1>forty two is it completely short circuited that in the

0:15:33.640 --> 0:15:37.600
<v Speaker 1>anxiety events, we have a public health crisis. This crisis

0:15:37.640 --> 0:15:40.960
<v Speaker 1>is of such intensity that we must not even ask

0:15:40.960 --> 0:15:44.520
<v Speaker 1>you any questions. We must immediately turn you back into Mexico.

0:15:45.160 --> 0:15:47.520
<v Speaker 1>And that's maybe the state of affairs for about two

0:15:47.600 --> 0:15:51.080
<v Speaker 1>years now in the United States, and that created this

0:15:51.200 --> 0:15:54.920
<v Speaker 1>massive backlog of people seeking asylum of the Mexican border.

0:15:55.600 --> 0:15:57.440
<v Speaker 1>And we're going to wait to see how this plays

0:15:57.480 --> 0:16:01.200
<v Speaker 1>out as Tide of forty two starts to uh wind down.

0:16:02.600 --> 0:16:06.200
<v Speaker 1>That's my next question, because according to US Customs and

0:16:06.280 --> 0:16:09.400
<v Speaker 1>Border Protection, more than one point six million migrants have

0:16:09.480 --> 0:16:14.040
<v Speaker 1>been expelled under Title forty two since March of Some

0:16:14.160 --> 0:16:18.000
<v Speaker 1>simply were returned to Mexico. So is there a build

0:16:18.080 --> 0:16:21.800
<v Speaker 1>up of people waiting across when the policy is lifted?

0:16:22.720 --> 0:16:26.040
<v Speaker 1>According to US Customs and Border Protection, more than one

0:16:26.080 --> 0:16:29.960
<v Speaker 1>point six million migrants have been expelled under Title forty

0:16:29.960 --> 0:16:34.120
<v Speaker 1>two since March of Some simply were returned to Mexico.

0:16:34.720 --> 0:16:38.120
<v Speaker 1>So is there a build up of people waiting across

0:16:38.200 --> 0:16:41.400
<v Speaker 1>when the policy is lifted. I think there's seeing three

0:16:41.680 --> 0:16:45.520
<v Speaker 1>types of individuals. First, within the one point million, there

0:16:45.520 --> 0:16:48.080
<v Speaker 1>are a lot of repeat crossers who keep trying to

0:16:48.120 --> 0:16:50.880
<v Speaker 1>get through and hope the title won't be applied to them.

0:16:50.960 --> 0:16:53.480
<v Speaker 1>But having said that, there's a second group, which our

0:16:53.560 --> 0:16:57.080
<v Speaker 1>people coming across the border. And these are people from Ukraine,

0:16:57.440 --> 0:17:02.920
<v Speaker 1>from Russia, from the Karagwa, from Cuba, from Venezuela, from Colombia,

0:17:03.000 --> 0:17:06.560
<v Speaker 1>from Brazil, Katie. All kinds of places around the world

0:17:06.720 --> 0:17:09.600
<v Speaker 1>are sending people to the southern border. And so there

0:17:09.600 --> 0:17:13.240
<v Speaker 1>are people already there waiting in Mexico and either standing

0:17:13.280 --> 0:17:17.080
<v Speaker 1>Teabrow in San Diego or Brownville or laurezell pass O.

0:17:17.160 --> 0:17:20.680
<v Speaker 1>There's people waiting all over the border. But in addition,

0:17:21.240 --> 0:17:24.879
<v Speaker 1>once it becomes clearer that people will be able to

0:17:24.920 --> 0:17:27.680
<v Speaker 1>come across the border, then the question is you start

0:17:27.760 --> 0:17:30.919
<v Speaker 1>to see not just the people waiting there trying across,

0:17:30.920 --> 0:17:33.359
<v Speaker 1>but people coming from all over the world, is right

0:17:33.400 --> 0:17:36.920
<v Speaker 1>to answer. Through the southern border, the Secretary of Homeland

0:17:36.960 --> 0:17:41.360
<v Speaker 1>Security was saying that they're prepared for this. What does

0:17:41.400 --> 0:17:45.520
<v Speaker 1>it take to process someone when people arrive at the

0:17:45.600 --> 0:17:48.800
<v Speaker 1>border and they say they're seeking asylum, Well, it's a

0:17:48.920 --> 0:17:51.840
<v Speaker 1>very kind consuming process because for the very first thing

0:17:51.840 --> 0:17:54.959
<v Speaker 1>you have to do is apprehend the individual or the family.

0:17:55.440 --> 0:17:58.000
<v Speaker 1>And when they're you apprehending individual or the family, that

0:17:58.040 --> 0:18:01.000
<v Speaker 1>will then depend on what kind of center their place into,

0:18:01.240 --> 0:18:04.880
<v Speaker 1>whether they placed into a processing center that's holding families

0:18:05.000 --> 0:18:07.520
<v Speaker 1>or a little kids, or whether they placed into one

0:18:07.560 --> 0:18:10.760
<v Speaker 1>that's holding just signal adult. Then you have to take

0:18:10.800 --> 0:18:13.520
<v Speaker 1>the fingerprints to make sure they're not a reduced crosser

0:18:14.000 --> 0:18:16.040
<v Speaker 1>or that they actually have God forbid, some sort of

0:18:16.040 --> 0:18:20.280
<v Speaker 1>criminal or terrorist record. And then once youven Tabli said send.

0:18:20.320 --> 0:18:23.320
<v Speaker 1>The question is what the government wants to do in

0:18:23.359 --> 0:18:25.840
<v Speaker 1>a situation where someone doesn't have any status at all

0:18:26.200 --> 0:18:29.280
<v Speaker 1>is to do what's called an expedited removal order, which

0:18:29.280 --> 0:18:33.080
<v Speaker 1>is to say we will we will re transmut you

0:18:33.160 --> 0:18:36.000
<v Speaker 1>back to your home country as soon as possible, but

0:18:36.080 --> 0:18:39.840
<v Speaker 1>What then happens is the defense to expedited removal is

0:18:39.880 --> 0:18:42.240
<v Speaker 1>that you try to do that to me, I will

0:18:42.280 --> 0:18:46.560
<v Speaker 1>be persecuted based on my rage, religion, national origin, social group,

0:18:46.680 --> 0:18:50.800
<v Speaker 1>or political opinion. And here the government just has to say, well,

0:18:51.359 --> 0:18:54.399
<v Speaker 1>does the person have what's called a credible fear, And

0:18:54.480 --> 0:18:57.159
<v Speaker 1>a credible fear is a very very low threshold, and

0:18:57.280 --> 0:19:01.280
<v Speaker 1>say we reason about possibility of think an asylum claim,

0:19:01.680 --> 0:19:06.040
<v Speaker 1>and an asylum claim is considered even a one intent

0:19:06.240 --> 0:19:10.480
<v Speaker 1>chance of persecution in your home country, So reasonable possibility

0:19:10.760 --> 0:19:13.520
<v Speaker 1>I'm a one in contance of persecution is not a

0:19:13.640 --> 0:19:17.360
<v Speaker 1>very high threshold. And in the Trump administration that got

0:19:17.400 --> 0:19:20.359
<v Speaker 1>to as low as high sevties. In the Obama and

0:19:20.359 --> 0:19:23.240
<v Speaker 1>the Biden administration has been at the low nineties. So

0:19:23.320 --> 0:19:26.159
<v Speaker 1>somewhere between the high seventy percent and low ninety percent

0:19:26.240 --> 0:19:31.160
<v Speaker 1>of people can meet this credible fear threshold. And then

0:19:31.200 --> 0:19:33.600
<v Speaker 1>the question is what happens to them? And here it's

0:19:33.600 --> 0:19:36.760
<v Speaker 1>a little bit dicey because there's still a litigation going

0:19:36.800 --> 0:19:40.439
<v Speaker 1>on about remain in Mexico, which means that there's a

0:19:40.440 --> 0:19:43.440
<v Speaker 1>court order that some number of these people still have

0:19:43.600 --> 0:19:46.680
<v Speaker 1>to be sent back to Mexico to wait to make

0:19:46.760 --> 0:19:49.520
<v Speaker 1>their asylum claims. So they've weighed in Mexico still the

0:19:49.640 --> 0:19:53.280
<v Speaker 1>day of their immigration court hearing, whereas others are going

0:19:53.320 --> 0:19:55.879
<v Speaker 1>to be allowed to enter the United States. And the

0:19:56.000 --> 0:19:58.560
<v Speaker 1>question is, well, how is that going to be determined?

0:19:58.960 --> 0:20:00.879
<v Speaker 1>And I think a lot of people will be monitoring

0:20:00.920 --> 0:20:03.920
<v Speaker 1>that to see if there's either any kind of discriminatory

0:20:04.000 --> 0:20:06.679
<v Speaker 1>treatment um who's getting in and who's getting out, or

0:20:06.720 --> 0:20:08.600
<v Speaker 1>how many people are being forced to wait in the

0:20:08.640 --> 0:20:12.240
<v Speaker 1>remaining Mexical program. And so there's a lot of that

0:20:12.520 --> 0:20:16.080
<v Speaker 1>uncertainty that's going to be surrounding this ending of prilep

0:20:16.119 --> 0:20:20.080
<v Speaker 1>forts too. To get asylum in this country. It's not

0:20:20.320 --> 0:20:23.520
<v Speaker 1>enough that you want a better life economically. You want

0:20:23.520 --> 0:20:27.080
<v Speaker 1>to you know, better your condition. So could the standard

0:20:27.119 --> 0:20:32.400
<v Speaker 1>for credible fear be changed be made more difficult? Well,

0:20:32.440 --> 0:20:36.159
<v Speaker 1>the problem is this is tasatory language from the ninety

0:20:36.240 --> 0:20:39.280
<v Speaker 1>eighties that would have to be changed by Congress, and

0:20:39.400 --> 0:20:42.760
<v Speaker 1>we know how difficult it is for Congress to change anything.

0:20:42.880 --> 0:20:45.880
<v Speaker 1>And the standards could have been raised. The Trump administration

0:20:45.920 --> 0:20:49.400
<v Speaker 1>would have raised the standards, But the Trump administration tried

0:20:49.480 --> 0:20:52.960
<v Speaker 1>to do because it couldn't raise the standards for credible

0:20:53.000 --> 0:20:57.280
<v Speaker 1>fear is it tries to basically take away the two

0:20:57.359 --> 0:21:02.280
<v Speaker 1>kinds of asylum claims predominantly made by Central American asylum seekers,

0:21:02.400 --> 0:21:06.600
<v Speaker 1>which were for males gang related claims, and that is

0:21:07.040 --> 0:21:09.359
<v Speaker 1>that if you were asked to join the gang and

0:21:09.480 --> 0:21:13.080
<v Speaker 1>you refuse, you you see into what's called the social groups,

0:21:13.200 --> 0:21:15.159
<v Speaker 1>because you have to have persecution based from one of

0:21:15.200 --> 0:21:18.359
<v Speaker 1>five factors. And so they were using social group to

0:21:18.520 --> 0:21:21.520
<v Speaker 1>say I refused to join a gang. I'm a known

0:21:21.960 --> 0:21:24.439
<v Speaker 1>entity who was used to join a gang, and so

0:21:24.640 --> 0:21:27.199
<v Speaker 1>now the gang is gonna kill me, and the the

0:21:27.320 --> 0:21:30.200
<v Speaker 1>government of my Central American country to do anything to

0:21:30.320 --> 0:21:33.920
<v Speaker 1>solve that, and so the some administration really takes the

0:21:34.000 --> 0:21:37.679
<v Speaker 1>Vietnam like that's not from the violent place, that doesn't count.

0:21:38.160 --> 0:21:40.720
<v Speaker 1>And then for winning, the primary claim was that they

0:21:40.720 --> 0:21:44.199
<v Speaker 1>were going to be victims of domestic violence and that

0:21:44.240 --> 0:21:46.679
<v Speaker 1>they were being persecuted on the basis of being women

0:21:47.040 --> 0:21:50.359
<v Speaker 1>because the government in whatever country in Central America that

0:21:50.400 --> 0:21:54.560
<v Speaker 1>they were applying from was not seriously protecting domestic violence plays.

0:21:55.280 --> 0:21:59.359
<v Speaker 1>And both of those were very foreclosed by the trump

0:21:59.359 --> 0:22:03.000
<v Speaker 1>of Ministrates and the Biden administrations actually working on regulations

0:22:03.000 --> 0:22:06.600
<v Speaker 1>to resuscitate those plays and so if that happens, you're

0:22:06.640 --> 0:22:09.439
<v Speaker 1>likely to see more of these Central American claims. But

0:22:09.520 --> 0:22:14.159
<v Speaker 1>in addition, you're seeing actual political asylum claims for people

0:22:14.200 --> 0:22:20.240
<v Speaker 1>from Cuba, Nicaragua, and as Raila, Columbia, and the Ukrainians

0:22:20.280 --> 0:22:22.320
<v Speaker 1>that are now coming across the border, of the Russians

0:22:22.359 --> 0:22:25.119
<v Speaker 1>that are coming across the border. So even changing the

0:22:25.119 --> 0:22:28.480
<v Speaker 1>same aren'thin't gonna work because there's actually quite a number

0:22:28.520 --> 0:22:33.080
<v Speaker 1>of garden varieties, you know, brand backed normal asylum plays

0:22:33.359 --> 0:22:35.200
<v Speaker 1>that we're starting to see on the border. So this

0:22:35.280 --> 0:22:38.920
<v Speaker 1>is really a complicated situation for the president. Let's say

0:22:38.960 --> 0:22:42.600
<v Speaker 1>you pass the credible fear interview, they release you at

0:22:42.640 --> 0:22:46.840
<v Speaker 1>that point into the country awaiting a court right. So

0:22:46.920 --> 0:22:50.000
<v Speaker 1>this is interesting too because there's a new regulation that

0:22:50.240 --> 0:22:54.960
<v Speaker 1>the Biden administration actually promulgated that said that for some

0:22:55.119 --> 0:22:58.600
<v Speaker 1>people who are apprehended at the border, they would not

0:22:58.760 --> 0:23:02.520
<v Speaker 1>have to wait even for their court proceeding. They would

0:23:02.560 --> 0:23:07.560
<v Speaker 1>actually get interviewed for their actual emerits asylum proceedings pretty

0:23:07.560 --> 0:23:09.840
<v Speaker 1>soon after they arrived by a U. S c I

0:23:10.040 --> 0:23:14.040
<v Speaker 1>s adjudicating officer, hoping that what they can do is

0:23:15.280 --> 0:23:18.399
<v Speaker 1>lead out the successful claims. So most claims don't have

0:23:18.520 --> 0:23:21.439
<v Speaker 1>to wait years and years and years, and also so

0:23:21.520 --> 0:23:24.920
<v Speaker 1>that they don't have to make the unsuccessful claims also

0:23:25.040 --> 0:23:27.800
<v Speaker 1>have to take years and years and years. But the

0:23:27.880 --> 0:23:30.200
<v Speaker 1>question is they've got to stack this thing up so

0:23:30.760 --> 0:23:33.480
<v Speaker 1>that so normally what happens, you'd have an immigration for

0:23:33.720 --> 0:23:37.119
<v Speaker 1>daring and now some segment of this group, and it's

0:23:37.160 --> 0:23:39.520
<v Speaker 1>supposed to be, in fact, the entire segment of the

0:23:39.560 --> 0:23:41.880
<v Speaker 1>group both to be everyone. So we have to wait

0:23:41.880 --> 0:23:44.159
<v Speaker 1>and see how that works, stopping wise with U s

0:23:44.160 --> 0:23:47.639
<v Speaker 1>c I S. But technically everybody's down supposed to go

0:23:47.720 --> 0:23:50.920
<v Speaker 1>through a U s c I S officers. And if

0:23:50.960 --> 0:23:53.600
<v Speaker 1>that U s c I S officers says you've ward

0:23:53.640 --> 0:23:56.800
<v Speaker 1>your asylum place you've you're supposed to get it actually

0:23:56.920 --> 0:24:00.560
<v Speaker 1>very quickly now, such that the only ones that will

0:24:00.560 --> 0:24:03.879
<v Speaker 1>go to immigration court are ones that have sailed in

0:24:03.960 --> 0:24:10.040
<v Speaker 1>this first round asylum adjudication. Is the Biden administration prepared

0:24:10.160 --> 0:24:13.840
<v Speaker 1>for this influx. They're predicting about eighteen thousand a day,

0:24:13.920 --> 0:24:16.720
<v Speaker 1>up from seven thousand a day. If there are eighteen

0:24:16.800 --> 0:24:21.240
<v Speaker 1>thousand a day, it's basically going to be impossible to

0:24:21.359 --> 0:24:25.440
<v Speaker 1>say you're quote unquote prepared for day. The amount of traffic,

0:24:25.520 --> 0:24:27.800
<v Speaker 1>the amount of processing that's going to need to happen,

0:24:28.160 --> 0:24:31.400
<v Speaker 1>while you're simultaneously trying to do a new asylum regulation,

0:24:31.440 --> 0:24:35.040
<v Speaker 1>while you're tympineously trying to implement Romain in Mexico to

0:24:35.119 --> 0:24:39.640
<v Speaker 1>some extent for some people, while you're simultaneously allowing Ukrainians

0:24:39.680 --> 0:24:42.120
<v Speaker 1>to come across the border and you're giving them poles,

0:24:42.400 --> 0:24:46.800
<v Speaker 1>all of these naked white a pytical environment for the

0:24:46.920 --> 0:24:49.760
<v Speaker 1>CVP to be dealing with on the southern border, and

0:24:49.840 --> 0:24:51.960
<v Speaker 1>for people to think this is going to go smoothly

0:24:52.160 --> 0:24:55.560
<v Speaker 1>is unreal listing. The question really is what is the alternative?

0:24:55.760 --> 0:24:59.040
<v Speaker 1>Then you have Tydal forty two forever. And I think

0:24:59.080 --> 0:25:01.520
<v Speaker 1>this is the complication because obviously the answer the one

0:25:01.560 --> 0:25:05.960
<v Speaker 1>question to go. So that brings us to Republican led

0:25:06.080 --> 0:25:11.760
<v Speaker 1>states are taking the Biden administration to court over these plans.

0:25:11.800 --> 0:25:14.639
<v Speaker 1>What's the basis of their lawsuit? Well, they're using the

0:25:14.640 --> 0:25:18.440
<v Speaker 1>traditional administrative procedure at playing, which is that there is

0:25:18.480 --> 0:25:21.480
<v Speaker 1>a change in policy. That change in policy is both

0:25:21.600 --> 0:25:26.840
<v Speaker 1>arbitury and capricious and not supported by notice and comment rulemaking. Now,

0:25:26.880 --> 0:25:29.560
<v Speaker 1>I don't think you would need notice and comment rulemaking

0:25:29.760 --> 0:25:33.199
<v Speaker 1>to eliminate Title forty two, since you didn't necessarily need it.

0:25:33.280 --> 0:25:36.560
<v Speaker 1>To implement Title forty two, you need a proclamation from

0:25:36.600 --> 0:25:40.280
<v Speaker 1>the CDC. But in any case, I do think you

0:25:40.400 --> 0:25:43.160
<v Speaker 1>get the right judges. These days, it seems like people

0:25:43.200 --> 0:25:45.679
<v Speaker 1>are getting rulings in these cases that you might not

0:25:45.760 --> 0:25:49.760
<v Speaker 1>have predicted normally based on a just simple doctrinal analysis

0:25:49.760 --> 0:25:52.560
<v Speaker 1>of the law. I could literally see a judge saying

0:25:52.600 --> 0:25:55.080
<v Speaker 1>something as simple as well, how do you have mass

0:25:55.160 --> 0:25:58.640
<v Speaker 1>mandates on playing and that had Title forty two. You've

0:25:58.640 --> 0:26:01.400
<v Speaker 1>got to pick one or the other. This is arbitrarian

0:26:01.480 --> 0:26:04.520
<v Speaker 1>capriction and just you know, thrown away based on that

0:26:04.760 --> 0:26:08.320
<v Speaker 1>and continue ordering the Biden administration to youth Title forty two.

0:26:08.320 --> 0:26:11.000
<v Speaker 1>I would say in enough lawsuits that file, the odds

0:26:11.000 --> 0:26:13.440
<v Speaker 1>you'll find the judge will say something like that will

0:26:13.440 --> 0:26:16.240
<v Speaker 1>be incredibly high. But I do think that at some point,

0:26:16.600 --> 0:26:19.320
<v Speaker 1>once there are no COVID restrictions that the federal government

0:26:19.359 --> 0:26:21.880
<v Speaker 1>is operating in any area, then it will be far

0:26:22.080 --> 0:26:25.560
<v Speaker 1>easier to justify the recision of Final forty two. I

0:26:25.640 --> 0:26:28.840
<v Speaker 1>do think in this world where there are mixed messages

0:26:28.880 --> 0:26:31.640
<v Speaker 1>that the federal government is issuing with regards to COVID,

0:26:31.800 --> 0:26:35.199
<v Speaker 1>specifically with regard to mass mandates and other things. I

0:26:35.280 --> 0:26:38.520
<v Speaker 1>do think they're it becomes a little bit complicated. It's

0:26:38.560 --> 0:26:41.400
<v Speaker 1>kind a clean argument why you're ending Title forty two

0:26:41.720 --> 0:26:47.160
<v Speaker 1>and leon. Some of these Republican challenges to Biden administration

0:26:47.240 --> 0:26:51.560
<v Speaker 1>policy have been successful, right like remain in Mexico as one.

0:26:51.600 --> 0:26:54.159
<v Speaker 1>I don't know what the others are. Well, the Republican

0:26:54.440 --> 0:26:59.560
<v Speaker 1>attorney generals have been able to successfully enjoin the prosecutorial

0:26:59.640 --> 0:27:03.919
<v Speaker 1>describe some guidelines that the Biden administration has don DOCTA.

0:27:04.600 --> 0:27:08.280
<v Speaker 1>They've been challenging very successfully pretty much anything that's been

0:27:08.359 --> 0:27:11.600
<v Speaker 1>tried to be accomplished with regards to the lessoning of

0:27:11.720 --> 0:27:15.960
<v Speaker 1>enforcement on immigration law, they're getting injunctions. Now what the

0:27:16.080 --> 0:27:18.159
<v Speaker 1>end result of these injunctions are going to be as

0:27:18.240 --> 0:27:22.119
<v Speaker 1>tough because they can't actually take over ICE and for

0:27:22.280 --> 0:27:26.920
<v Speaker 1>its removals that doesn't want to actually remove people for

0:27:27.720 --> 0:27:30.479
<v Speaker 1>but they are doing a job on the edge. Is

0:27:30.560 --> 0:27:34.080
<v Speaker 1>basically saying, hey, look, whether it's pervading in Mexico, whether

0:27:34.119 --> 0:27:37.879
<v Speaker 1>it's GOATA, whether it's the classecutorial dispersion of guideline, whether

0:27:37.960 --> 0:27:42.800
<v Speaker 1>it's any kind of elimination of enforcement into any circumstances,

0:27:42.840 --> 0:27:46.359
<v Speaker 1>the chords are enjoining vote. Thanks for being on the show. Leon.

0:27:46.840 --> 0:27:50.000
<v Speaker 1>That's Leon Fresco, a partner at Hollandon Knight. And that's

0:27:50.000 --> 0:27:52.640
<v Speaker 1>it for this edition of The Bloomberg Law Show. Remember

0:27:52.680 --> 0:27:55.240
<v Speaker 1>you can always get the latest legal news, Honor Bloomberg

0:27:55.320 --> 0:27:59.080
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0:27:59.119 --> 0:28:03.240
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0:28:03.440 --> 0:28:06.360
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0:28:06.440 --> 0:28:09.600
<v Speaker 1>Show every week night at ten BM Wall Street Time.

0:28:10.119 --> 0:28:12.840
<v Speaker 1>I'm June Grossow, and you're listening to Bloomberg