WEBVTT - Ghislaine Maxwell’s Attack-the-Victim Strategy

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<v Speaker 1>You're listening to Bloomberg Law with June Grasso from Bloomberg Radio.

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<v Speaker 1>The bail hearing for Gallen Maxwell ended with the judge

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<v Speaker 1>ruling that she must span the next year behind bars

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<v Speaker 1>awaiting trial on sex trafficking charges. The judge sighted Maxwell's

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<v Speaker 1>extraordinary financial resources and international ties and concluded there was

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<v Speaker 1>a substantial risk that Maxwell would flee the country. The

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<v Speaker 1>British socialite pleaded not guilty to charges that she helped

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<v Speaker 1>her longtime boyfriend Jeffrey Epstein run a sex trafficking scheme

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<v Speaker 1>targeting girls as young as fourteen. The bail hearing offered

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<v Speaker 1>a glimpse at Maxwell's strategy at trial and at her

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<v Speaker 1>life hiding from authorities at a luxurious secluded a state

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<v Speaker 1>in New Hampshire, guarded around the clock by a team

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<v Speaker 1>of former British military Joining me as Patricia Hurtado, Bloomberg

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<v Speaker 1>Legal reporter, pat you actually attended the hearing, So tell

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<v Speaker 1>us what it was like in this in the midst

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<v Speaker 1>of the coronavirus pandemic. Well, it's of the first hearings

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<v Speaker 1>that was held in the Seroal Courthouse in Lower Manhattan,

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<v Speaker 1>and you know this is a place that's seen big trials,

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<v Speaker 1>show trials of world Calm and Bernie made Off case

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<v Speaker 1>and it's been shut down throughout the pandemic, and they

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<v Speaker 1>opened it earlier this month for hearing and it's open

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<v Speaker 1>to the public that on a restricted basis. You have

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<v Speaker 1>to get your temperature checks before you go in. We

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<v Speaker 1>went in and they had the Central Jury Room, which

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<v Speaker 1>is this massive room where the jury potential jurors gather

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<v Speaker 1>before they go up to trial. They had this massive room,

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<v Speaker 1>socially distanced chairs, so about six ft apart. It was

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<v Speaker 1>seating for about sixty people, and they had giant screens overhead,

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<v Speaker 1>and everybody was in remote places. So Glenne Maxwell was

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<v Speaker 1>in a lawyer's conference room over a screen, probably a

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<v Speaker 1>laptop in the federal jail in Brooklyn. Per lawyer Mark

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<v Speaker 1>Cohen was in his office. The judge was apparently at

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<v Speaker 1>her possibly her home office. She was not in the courthouse,

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<v Speaker 1>I was told, And everybody was appearing virtually, so it

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<v Speaker 1>kind of unusual to see court not in court. Tell

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<v Speaker 1>us about Maxwell's appearance. What did she look like? Well,

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<v Speaker 1>her lawyer had complained that since she arrived at the MDC,

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<v Speaker 1>they had not allowed her to take a shower for

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<v Speaker 1>seventy two hours. She seems in great physical shape. She

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<v Speaker 1>had her hair pulled back in a bun. She was

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<v Speaker 1>wearing brown looked like short sleeve jail fatigues. And she

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<v Speaker 1>speaks in a very posh, clipped, educated British accent, very composed.

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<v Speaker 1>She's had her shoulders squared, and she was really attentive

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<v Speaker 1>throughout the hearing. Was there a separate hearing for the

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<v Speaker 1>bail as opposed to the pola. The hearing happened in

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<v Speaker 1>several chapters. The first one is they have to do

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<v Speaker 1>a whole proviso where the judge advises everybody be and

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<v Speaker 1>and asks Maxwell if she's consenting to appear. Virtually, she

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<v Speaker 1>has a right to be in the courthouse and have appearance,

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<v Speaker 1>but because of the coronavirus pandemic, the courts are closed

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<v Speaker 1>and this was going to be happening virtually, So that

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<v Speaker 1>was the first part. Second part was she was arraigned

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<v Speaker 1>and entered a not guilty plea, and then the next

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<v Speaker 1>part was the prosecutors and the defense lawyers made their

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<v Speaker 1>best arguments for why Maxwell should get bail. Her lawyers

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<v Speaker 1>were arguing or why she should not be bailed because

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<v Speaker 1>she poses a flight risk. So let's talk first about

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<v Speaker 1>some of her arguments for bail. Of course, COVID nine

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<v Speaker 1>team and her lawyer is Mark Cohen, who's a former

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<v Speaker 1>federal prosecutor in Brooklyn. He argued that she should get

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<v Speaker 1>five million dollars bond because keeping her in the jail,

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<v Speaker 1>it's cumbersome and too difficult to show her all these

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<v Speaker 1>thousands of pages of documents. He said he had to

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<v Speaker 1>read most of the stuff over the own to her.

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<v Speaker 1>Because all the federal jails are under shut down, they

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<v Speaker 1>can't have attorney's visits for the reason that the attorneys

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<v Speaker 1>could bring COVID into the jail or the virus could

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<v Speaker 1>get spread, so there are no attorney visits. Everything's done

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<v Speaker 1>virtually over video conferencing, So showing a client evidence over

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<v Speaker 1>a screen and having them read it over the screen

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<v Speaker 1>is really really difficult. And they only get a limited

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<v Speaker 1>amount of time anyway in these for these lawyer conferences,

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<v Speaker 1>So imagine only getting an hour to share your clients

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<v Speaker 1>two thousand pages of documents. So that was number one.

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<v Speaker 1>This was going to hamper her ability to defend herself. Secondly,

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<v Speaker 1>they argued she's at risk because she's fifty eight, that

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<v Speaker 1>she could get coronavirus, but the judge noted that she

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<v Speaker 1>had not raised any pre existing conditions that would possibly

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<v Speaker 1>put her at risk. So the judge, who has in

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<v Speaker 1>the past allowed other people out of prison because of

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<v Speaker 1>the virus, did not make a finding on that, so

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<v Speaker 1>that was a losing argument for her. Now, one of

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<v Speaker 1>the alleged victims testified. Her name is Annie Farmer. She

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<v Speaker 1>says she was sixteen years old when she met Maxwell,

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<v Speaker 1>and Maxwell invited her to meet Epstein because he was

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<v Speaker 1>going to offer her to pay for her education. She

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<v Speaker 1>was invited for a weekend at this New Mexico retreat

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<v Speaker 1>with other high school students because they were meeting this

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<v Speaker 1>finance here who was looking for intelligent children to help

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<v Speaker 1>back their education. And she find herself all alone with

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<v Speaker 1>Epstein and Maxwell and a New Mexico ranch, and that's

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<v Speaker 1>when the abuse started. So she spoke out, and the

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<v Speaker 1>victims are entitled to speak out, you know, don't allow

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<v Speaker 1>this person out because of the harm they've caused me.

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<v Speaker 1>That's under the federal world. I've been talking to Bloomberg

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<v Speaker 1>legal reporter Pat Hurtado about Galine Maxwell's bail hearing. Was

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<v Speaker 1>the prosecutor's argument, basically that there's nothing that can ensure

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<v Speaker 1>that she won't leave the jurisdiction. Yeah, that was the argument.

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<v Speaker 1>Maxwell wanted out on five million dollar a bomb secured

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<v Speaker 1>by six people unnamed to she said, we're siblings, unnamed.

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<v Speaker 1>She wasn't putting up any of her money. She was

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<v Speaker 1>offering to put up property about three point seven five

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<v Speaker 1>million in the UK, that's hers, but she was not

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<v Speaker 1>offering to put up any of her own money. The

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<v Speaker 1>government said she has all these mysterious finances. There seemed

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<v Speaker 1>to be possibly fifteen bank accounts, including a Swiss bank

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<v Speaker 1>account which appears to hold up more than twenty million dollars,

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<v Speaker 1>and there's been a lot of transactions going back and

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<v Speaker 1>forth where money would be funneled from an Epstein account

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<v Speaker 1>to her account, back and forth. And they're not clear

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<v Speaker 1>the origins of the money or how much she has.

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<v Speaker 1>They know she has at least one Swiss bank account

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<v Speaker 1>and where this money went. She sold an apartment to

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<v Speaker 1>townhouse It's pretty County on East sixty five Street on

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<v Speaker 1>the upper east Side for about fifteen million a couple

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<v Speaker 1>couple of years ago, and the government says we don't

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<v Speaker 1>know where that money went. And then she bought this

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<v Speaker 1>how in New Hampshire where they arrested her, you know,

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<v Speaker 1>a hundred fifty six acres in Bradford, New Hampshire for

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<v Speaker 1>one point two million, but it was purchased under an LLC.

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<v Speaker 1>And the government said there were all these red flags.

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<v Speaker 1>When they questioned Maxwell, she they said she's been less

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<v Speaker 1>than truthful. For example, when pre trial it is called

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<v Speaker 1>pre trial services and it's the court people who interviewed

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<v Speaker 1>the person and say, okay, you just got arrested. Tell

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<v Speaker 1>us a bit about yourself. Do you have any bank accounts?

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<v Speaker 1>You know, help us out here because we're trying to

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<v Speaker 1>assess if you're eligible for bail or if you're too poor.

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<v Speaker 1>You need as a sense lawyer so you can get

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<v Speaker 1>a federal defender paid for by the government. Maxwell. When

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<v Speaker 1>they asked her where she lived, she said, oh, I

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<v Speaker 1>live in a house. I don't know who owns it,

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<v Speaker 1>but the people who own it let me live there.

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<v Speaker 1>And the government said that was very curious to them

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<v Speaker 1>because they got a call from the real estate agent

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<v Speaker 1>who sold the New Hampshire proper the who said that

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<v Speaker 1>they recognized Galae Maxwell as the woman who had come

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<v Speaker 1>with a man. The man said his name was Scott

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<v Speaker 1>and the woman said her name was Jen, and how

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<v Speaker 1>he introduced himself as retired British military who was working

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<v Speaker 1>on a book, and she introduced herself as Jen Marshall

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<v Speaker 1>and said she was a journalist who is looking for privacy.

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<v Speaker 1>So the circumstances of I don't know who owns my house,

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<v Speaker 1>but the real estate agent said, this is the woman

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<v Speaker 1>I recognized to introduced herself as somebody completely different. The

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<v Speaker 1>government said these are ruses that show that she's willing

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<v Speaker 1>to be less than forthcoming and hide off the grid

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<v Speaker 1>to conceal herself, and that she's been hiding for the

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<v Speaker 1>last year, and Judge finally decided with the government there

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<v Speaker 1>was just too much risk and too many unknown factors

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<v Speaker 1>about her. She's also a French citizen, and France does

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<v Speaker 1>an extradited citizens, so that's also a problem. We got

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<v Speaker 1>some insight into how she was living while she was

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<v Speaker 1>hiding in New Hampshire, including that she had a team

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<v Speaker 1>of former British military guarding her. Yeah, and the defense

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<v Speaker 1>lawyer Mark Cohen was making an argument that Galais Maxwell

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<v Speaker 1>has been the victim of a sensatiable media basically that

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<v Speaker 1>have been going after her, so that Maxwell hired these

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<v Speaker 1>people was a team of former British military who guarded

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<v Speaker 1>her compound and that when the FBI says, when they

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<v Speaker 1>got to her gate, it was locked. They had to

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<v Speaker 1>cut the lock. They were immediately confronted with a guard

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<v Speaker 1>who demanded who they were, and they announced that they

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<v Speaker 1>were FBI and they were there to arrest her. They

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<v Speaker 1>go up to the front door and one of them

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<v Speaker 1>looks through the window and sees Maxwell running away from

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<v Speaker 1>the door, and then they announced themselves and they say

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<v Speaker 1>they had to breach the door, and then they went

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<v Speaker 1>in and they found her hiding in another room. One

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<v Speaker 1>of the agents found a cell phone wrapped in tinfoil,

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<v Speaker 1>which they said was a misguided effort to avoid being

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<v Speaker 1>tracked on her phone. Now, her lawyer said this is

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<v Speaker 1>all because Maxwell has been victimized by the media who's

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<v Speaker 1>always trying to track her down. So this is what

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<v Speaker 1>she did. She hired guard to protect her from the press,

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<v Speaker 1>and that the phone last year sometime that he claimed

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<v Speaker 1>that her phone had been hacked by British press and

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<v Speaker 1>that's why she was wrapping it in tinfoil to avoid

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<v Speaker 1>this phone from being hacked by the press. When the

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<v Speaker 1>judge said no bail, you're going to be in jail

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<v Speaker 1>for about a year until your trial, did she have

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<v Speaker 1>a visible reaction. I mean, some people said they saw

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<v Speaker 1>her wiping a tear from her eye. What I saw

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<v Speaker 1>is that almost looks like someone who was sitting up straight,

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<v Speaker 1>very perky and attentive, and she had the look of

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<v Speaker 1>you know, she was totally impassive expression the whole time.

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<v Speaker 1>But when she lost that argument and the judge that

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<v Speaker 1>I find her a risk, she has the ability to flee.

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<v Speaker 1>There's no circumstances I feel comfortable allowing her out. She

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<v Speaker 1>seemed to deflate, and her shoulders sagged, and she looked

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<v Speaker 1>she cast her eyes down and she stopped looking up,

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<v Speaker 1>so it looked like, you know, somebody, the air went

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<v Speaker 1>out of her. The defenses arguments at the bail hearing

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<v Speaker 1>hint at possible trial strategies from Maxwell, and one was

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<v Speaker 1>challenging the credibility and the motives of the alleged victims,

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<v Speaker 1>one of whom had just testified. Yeah, and one of

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<v Speaker 1>the people that the defense lawyer Cohen went after was

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<v Speaker 1>Annie Farmer, and he basically, in a kind of a

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<v Speaker 1>parenthetical aside, said, you know, this is a woman who

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<v Speaker 1>has filed a lawsuit seeking millions of dollars from this Maxwell,

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<v Speaker 1>who has also applied for There's an Epstein Victims compensation

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<v Speaker 1>fund est ablished out of this more than six million

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<v Speaker 1>dollars that was in Epstein's estate when he died last

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<v Speaker 1>August in a federal jail awaiting sex trafficking charges. So

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<v Speaker 1>in May they worked out a deal where they established

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<v Speaker 1>this fund that would have trustees and the victims of

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<v Speaker 1>Epstein's abuse could make applications to be compensated because of

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<v Speaker 1>the abuse. And he was basically suggesting, don't listen to

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<v Speaker 1>any Farmer because she wants money and she's seeking millions

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<v Speaker 1>from Maxwell, and she's going to get millions from Epstein's fund.

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<v Speaker 1>Is that kind of attack on the alleged victims, who

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<v Speaker 1>were teenagers at the time risky, especially in the me

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<v Speaker 1>too era? Mighty backfire a trial? Um, Yeah, you know,

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<v Speaker 1>it's interesting because I covered Harvey Weinstein's trial and it

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<v Speaker 1>was a similar kind of approach that it has not

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<v Speaker 1>and Bill Cosby certainly did it in his trial, so

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<v Speaker 1>it hasn't been successful in the Post meets New World.

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<v Speaker 1>And I asked, um, David Boys is a lawyer for

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<v Speaker 1>any farmer and he represents other victims. And I said,

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<v Speaker 1>are you confident you know there's if you're aware of it.

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<v Speaker 1>There's a history of litigation. Um. Some of the victims

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<v Speaker 1>did sue Epstein in federal court. Um. There's a long

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<v Speaker 1>travail of lawsuits and cases. Um. After the victims find

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<v Speaker 1>out that there was a plea deal that Epstein got

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<v Speaker 1>in the Southern District of Florida where he evaded prosecution,

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<v Speaker 1>they were upset that they were cut out. And you know,

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<v Speaker 1>under the law, it's called a Crime Victims Restitution Act

0:13:37.600 --> 0:13:41.280
<v Speaker 1>where victims can be have to be notified and then

0:13:41.320 --> 0:13:45.000
<v Speaker 1>they get to participate and say this person did this

0:13:45.080 --> 0:13:48.040
<v Speaker 1>to me, and I want you to judge to know

0:13:48.360 --> 0:13:51.280
<v Speaker 1>to inform the judge for a sentence. Well, these people

0:13:51.400 --> 0:13:54.000
<v Speaker 1>got didn't get told. And the women found out after

0:13:54.040 --> 0:13:55.880
<v Speaker 1>the fact that he got a plea deal and it

0:13:55.960 --> 0:13:59.760
<v Speaker 1>was all over. The case was over. So UM, the

0:14:00.000 --> 0:14:03.560
<v Speaker 1>as women basically want that there's a lot of out there.

0:14:03.640 --> 0:14:09.559
<v Speaker 1>There's depositions, there's testimony. Um, they've spoken out, they filed lawsuits,

0:14:09.679 --> 0:14:11.880
<v Speaker 1>So when I was asking David boys, are you worried

0:14:11.880 --> 0:14:14.400
<v Speaker 1>about some of these victims that they may get assailed?

0:14:14.559 --> 0:14:17.840
<v Speaker 1>And are new confident that Annie Farm her, knowing what

0:14:17.960 --> 0:14:21.480
<v Speaker 1>happened today, will be able to sit withstand this kind

0:14:21.480 --> 0:14:24.520
<v Speaker 1>of cross examination if maxwell lawyers go after her, and

0:14:24.560 --> 0:14:28.000
<v Speaker 1>he said, fine, I'm perfectly confident she's going to stand

0:14:28.040 --> 0:14:31.040
<v Speaker 1>up just fine. So you know, it remains to be seen.

0:14:31.040 --> 0:14:33.200
<v Speaker 1>It would be quite a trial because it will be

0:14:34.320 --> 0:14:37.480
<v Speaker 1>Epstein's top lieutenant that these young women said, you know,

0:14:37.520 --> 0:14:40.080
<v Speaker 1>I was fourteen years old. I was sixteen years old,

0:14:40.160 --> 0:14:42.640
<v Speaker 1>and this lady came up to me and she seemed

0:14:42.680 --> 0:14:44.720
<v Speaker 1>so nice, and she befriended me, and she checked me

0:14:44.720 --> 0:14:48.120
<v Speaker 1>into Epstein's world. Did the defense attorney also try to

0:14:48.160 --> 0:14:51.120
<v Speaker 1>portray Maxwell as a bit of a victim herself here,

0:14:51.440 --> 0:14:54.920
<v Speaker 1>which seems like it would be a stretch before a jury. Well,

0:14:55.520 --> 0:15:00.960
<v Speaker 1>he indicated that she a didn't know anything was going on,

0:15:01.760 --> 0:15:05.720
<v Speaker 1>and then it seemed like he could possibly be indicating

0:15:05.760 --> 0:15:08.760
<v Speaker 1>that that might be an avenue they're going to explore

0:15:09.320 --> 0:15:11.600
<v Speaker 1>she didn't know what was going on behind closed doors.

0:15:11.680 --> 0:15:14.800
<v Speaker 1>I wasn't there, I didn't know it. But secondly that

0:15:15.480 --> 0:15:18.800
<v Speaker 1>if she was involved. If there was any involvement, it

0:15:18.880 --> 0:15:22.040
<v Speaker 1>was because she was in Epstein's thraw kind of signaled

0:15:22.040 --> 0:15:24.080
<v Speaker 1>that he was going to raise that it's got to

0:15:24.120 --> 0:15:26.320
<v Speaker 1>be it's going to be more developed, I believe, you

0:15:26.360 --> 0:15:28.760
<v Speaker 1>know when we see down the road when these papers

0:15:28.760 --> 0:15:32.440
<v Speaker 1>get filed and the motions start getting made and there's

0:15:32.440 --> 0:15:35.600
<v Speaker 1>a July trial day, so we'll have a July twelve

0:15:36.440 --> 0:15:40.120
<v Speaker 1>one trial day. That's literally going to be nearly two

0:15:40.200 --> 0:15:43.120
<v Speaker 1>years to the day from when Epstein first got arrested.

0:15:43.720 --> 0:15:46.200
<v Speaker 1>In reading about it, it seems as if the defense

0:15:46.240 --> 0:15:49.440
<v Speaker 1>attorney was just throwing everything against the wall to see

0:15:49.480 --> 0:15:51.880
<v Speaker 1>what would stick, even saying that, oh, there were no

0:15:52.040 --> 0:15:56.520
<v Speaker 1>video or audio tapes of what happened, which is certainly

0:15:56.560 --> 0:16:00.600
<v Speaker 1>not a requirement right right, and and once that was

0:16:00.640 --> 0:16:03.800
<v Speaker 1>one thing that David Boys was saying to me after

0:16:03.920 --> 0:16:07.720
<v Speaker 1>the hearing, that, um, you don't need stuff in this

0:16:07.800 --> 0:16:11.320
<v Speaker 1>day and age, and another defense lawyers said this former

0:16:11.400 --> 0:16:14.200
<v Speaker 1>prosecutor said this to me that you know, that was

0:16:14.240 --> 0:16:17.720
<v Speaker 1>an argument you made, Oh there's no video, and people say,

0:16:18.400 --> 0:16:22.280
<v Speaker 1>but there was this that argument was made before cell

0:16:22.280 --> 0:16:25.080
<v Speaker 1>phone You know, people make cell phone videos all the time.

0:16:25.120 --> 0:16:28.200
<v Speaker 1>And now we see what happened to George Floyd, for example.

0:16:28.720 --> 0:16:34.280
<v Speaker 1>But there is the testimony. These these former prosecutors and

0:16:34.320 --> 0:16:37.440
<v Speaker 1>boys were saying, if you hear the steering accounts from

0:16:37.480 --> 0:16:40.880
<v Speaker 1>a woman, and the jury assesses whether that person is

0:16:40.920 --> 0:16:46.600
<v Speaker 1>credible the story enough is going to be pretty potent

0:16:47.600 --> 0:16:50.480
<v Speaker 1>evidence before a jury. And the other thing the government

0:16:50.480 --> 0:16:55.239
<v Speaker 1>says is they have travel records, photographs, and other material

0:16:55.880 --> 0:17:00.600
<v Speaker 1>that will actually, um, you know, corroborate what these young

0:17:00.640 --> 0:17:04.320
<v Speaker 1>women said happen, even though it's twenty five years old.

0:17:05.320 --> 0:17:07.920
<v Speaker 1>I have to say that it seems as if since

0:17:08.000 --> 0:17:12.159
<v Speaker 1>Jeffrey Epstein committed suicide that all the attention that might

0:17:12.200 --> 0:17:14.480
<v Speaker 1>have been on his trial and him and all the

0:17:14.520 --> 0:17:18.919
<v Speaker 1>blame is going to be pushed to her. Yeah. I

0:17:18.960 --> 0:17:22.360
<v Speaker 1>think that's what's happened. I mean, um, there's an speculation

0:17:22.480 --> 0:17:26.080
<v Speaker 1>of if she played guilty, could she possibly give up

0:17:26.080 --> 0:17:31.600
<v Speaker 1>other people in the network. But um, the former prosecutors

0:17:31.600 --> 0:17:34.000
<v Speaker 1>I spoke to said, you know, you you view her.

0:17:34.320 --> 0:17:39.639
<v Speaker 1>She was Epstein from the victim's accounts. She was Epstein's enabler.

0:17:39.960 --> 0:17:43.640
<v Speaker 1>She was the one that enticed and lured these young women, teenagers,

0:17:44.119 --> 0:17:50.399
<v Speaker 1>kids into his orbits and constantly funneled this these women.

0:17:50.600 --> 0:17:54.159
<v Speaker 1>And then also the government says she was present so

0:17:54.280 --> 0:17:57.880
<v Speaker 1>that she kind of would quote unquote normalize the abuse. Well,

0:17:57.960 --> 0:18:00.119
<v Speaker 1>it can't be so bad as this lady. She is,

0:18:00.160 --> 0:18:02.520
<v Speaker 1>this nice lady. Oh you're asking me to take my

0:18:02.600 --> 0:18:05.040
<v Speaker 1>clothes off to do a massage. Oh, well, the lady's

0:18:05.040 --> 0:18:08.680
<v Speaker 1>still here, you know, and she helped normalize this a

0:18:08.760 --> 0:18:12.120
<v Speaker 1>barrent behavior for these poor kids, many of whom were

0:18:12.119 --> 0:18:18.640
<v Speaker 1>homeless or destitute or came from broken homes. So it's

0:18:18.800 --> 0:18:25.199
<v Speaker 1>Jeffrey Epstein died in August of twenty but this is

0:18:25.600 --> 0:18:29.600
<v Speaker 1>as close as you get to his second in command.

0:18:30.080 --> 0:18:33.320
<v Speaker 1>And you know, if she was involved with this, with

0:18:33.400 --> 0:18:37.480
<v Speaker 1>this behavior as the as the victims say she was,

0:18:38.040 --> 0:18:41.320
<v Speaker 1>then you know it's uh, there's there's a reason why

0:18:41.359 --> 0:18:44.159
<v Speaker 1>she's going to go to trial. One final question, is

0:18:44.200 --> 0:18:47.680
<v Speaker 1>anyone considering or is there a thought that since she'll

0:18:47.680 --> 0:18:51.200
<v Speaker 1>be in jail for a year, that they'll be pressure

0:18:51.280 --> 0:18:54.600
<v Speaker 1>on her to lead guilty. And I mean, would the

0:18:54.640 --> 0:18:57.439
<v Speaker 1>government even want to give her a deal? Yeah, some

0:18:57.560 --> 0:19:01.040
<v Speaker 1>of the some of the people I was talking to

0:19:01.240 --> 0:19:05.240
<v Speaker 1>said yes, this would be you know, she may get

0:19:05.280 --> 0:19:07.760
<v Speaker 1>realized it's not so much fun being in lock up.

0:19:07.960 --> 0:19:10.360
<v Speaker 1>It's not fun to be told when to take a shower.

0:19:10.880 --> 0:19:13.840
<v Speaker 1>And the conditions at the Federal jail in Brooklyn have

0:19:14.000 --> 0:19:17.919
<v Speaker 1>come under incredible scrutiny for the lack of you know,

0:19:19.080 --> 0:19:22.880
<v Speaker 1>the women don't get enough air, they don't get time outside,

0:19:23.119 --> 0:19:25.760
<v Speaker 1>and they don't get even get sunlight. It's a Some

0:19:25.880 --> 0:19:28.679
<v Speaker 1>of the dormitories are like one big giant room with

0:19:28.720 --> 0:19:31.840
<v Speaker 1>a bunch of bunk beds side by side. And during

0:19:31.880 --> 0:19:35.320
<v Speaker 1>the pandemic, they've been complaints that the women have been

0:19:35.520 --> 0:19:40.679
<v Speaker 1>ordered during a lockdown. There's been some situations whatever security situations,

0:19:40.680 --> 0:19:42.520
<v Speaker 1>and they're told to sit on their beds all day

0:19:42.560 --> 0:19:44.879
<v Speaker 1>long and don't move, and they have to be escorted

0:19:44.960 --> 0:19:47.800
<v Speaker 1>to go to the bathroom and they're not necessarily allowed to.

0:19:48.240 --> 0:19:50.720
<v Speaker 1>So it's been kind of you know, it's not the

0:19:50.760 --> 0:19:53.920
<v Speaker 1>greatest conditions. So if she's in these conditions when she's

0:19:54.040 --> 0:19:57.359
<v Speaker 1>used to living quite the life, living very well. She's

0:19:57.400 --> 0:20:01.479
<v Speaker 1>the daughter of a British publishing baron, Robert Maxwell. She

0:20:01.520 --> 0:20:04.760
<v Speaker 1>grew up, she went to Oxford, She's lived very very

0:20:04.840 --> 0:20:07.760
<v Speaker 1>high life and now suddenly the reality may be sinking

0:20:07.760 --> 0:20:10.520
<v Speaker 1>in for her in a federal jail. Not a lot

0:20:10.560 --> 0:20:14.399
<v Speaker 1>of fun facing federal charges that maybe it's time to

0:20:15.240 --> 0:20:17.200
<v Speaker 1>kind of deal with the government and try to get

0:20:17.200 --> 0:20:21.240
<v Speaker 1>some leniency, whether or not they get offered to her,

0:20:21.960 --> 0:20:25.720
<v Speaker 1>and whether or not it's a deal that she accepts,

0:20:25.760 --> 0:20:27.760
<v Speaker 1>and whether or not, you know, she might have to

0:20:27.760 --> 0:20:30.160
<v Speaker 1>throw herself on the mercy of the court, and if

0:20:30.320 --> 0:20:32.480
<v Speaker 1>whether or not she wants to give up other people

0:20:32.680 --> 0:20:36.040
<v Speaker 1>and the government possibly might be suspicious if she starts

0:20:36.119 --> 0:20:38.840
<v Speaker 1>pointing fingers at other people when they know otherwise that

0:20:38.920 --> 0:20:41.680
<v Speaker 1>she was more directly involved than they were. It's called

0:20:41.680 --> 0:20:45.919
<v Speaker 1>cooperating down. So whether you would go point down to

0:20:46.040 --> 0:20:49.280
<v Speaker 1>a person lower on the on pyramid, on the power

0:20:49.400 --> 0:20:52.800
<v Speaker 1>pyramid and say, oh, it's their fault, you know, that's

0:20:52.840 --> 0:20:55.480
<v Speaker 1>not going to look good for her before a federal

0:20:55.560 --> 0:20:58.840
<v Speaker 1>judge trying to implicate someone else and claim that she's

0:20:58.880 --> 0:21:01.679
<v Speaker 1>less culpable. So it remains to be saying, what's going

0:21:01.760 --> 0:21:06.480
<v Speaker 1>to happen next? And if she gave up to other people, um,

0:21:06.960 --> 0:21:11.160
<v Speaker 1>who would they be. Someone likened this to somebody who's

0:21:11.280 --> 0:21:14.800
<v Speaker 1>the head of a drug kingpin running a drug conspiracy

0:21:15.000 --> 0:21:19.600
<v Speaker 1>right drug trafficking. The drug kingpin dies, but his top

0:21:19.680 --> 0:21:22.680
<v Speaker 1>lieutenant is still around. So if that top lieutenant wants

0:21:22.720 --> 0:21:24.960
<v Speaker 1>to plead guilty. Who are they going to implicate? There

0:21:25.040 --> 0:21:27.679
<v Speaker 1>might be other people involved that they're the still number

0:21:27.680 --> 0:21:31.680
<v Speaker 1>two in this this organization. So what they were suggesting

0:21:31.720 --> 0:21:35.760
<v Speaker 1>to me as she may decide to point fingers at

0:21:35.760 --> 0:21:38.719
<v Speaker 1>other people, but they may just be other clients. And

0:21:38.760 --> 0:21:42.160
<v Speaker 1>I'm not condoning those other individuals who may have been

0:21:42.240 --> 0:21:48.439
<v Speaker 1>clients because they were having sex with underage girls. But um,

0:21:48.440 --> 0:21:53.040
<v Speaker 1>in the world of who's culpable and Jeffrey and Epstein's

0:21:53.200 --> 0:21:57.520
<v Speaker 1>sex trafficking ring, it's gonna be equation. The government's going

0:21:57.600 --> 0:21:59.359
<v Speaker 1>to have to work out. Thanks so much for being

0:21:59.359 --> 0:22:02.760
<v Speaker 1>on the Bloomberg A Show, Patty. That's Patricia Hurtado, Bloomberg

0:22:02.840 --> 0:22:08.240
<v Speaker 1>Legal Reporter. After last minute legal battles and exhausting all

0:22:08.359 --> 0:22:11.879
<v Speaker 1>legal avenues, the Texas Republican Party has given in and

0:22:12.000 --> 0:22:15.960
<v Speaker 1>is having its convention online. The Texas State Supreme Court

0:22:16.040 --> 0:22:18.439
<v Speaker 1>refused to force the city of Houston to allow the

0:22:18.520 --> 0:22:21.639
<v Speaker 1>party to host its convention indoors at the George R.

0:22:21.720 --> 0:22:25.919
<v Speaker 1>Brown Convention Center as the city is fighting the coronavirus pandemic.

0:22:26.320 --> 0:22:30.119
<v Speaker 1>Joining me is Bloomberg Legal reporter Laurel Culkins So Laurel

0:22:30.160 --> 0:22:32.880
<v Speaker 1>tell us about the legal whirlwind. Okay, well, it all

0:22:33.040 --> 0:22:35.439
<v Speaker 1>erupted at the last minute, sort of the middle of

0:22:35.520 --> 0:22:40.719
<v Speaker 1>last week when Houston's Mayor Sylvester Turner, after repeatedly trying

0:22:40.760 --> 0:22:43.760
<v Speaker 1>and failing to convince the Texas Republican Party to shift

0:22:43.800 --> 0:22:48.399
<v Speaker 1>to a virtual convention, instructed convention officials to find a

0:22:48.440 --> 0:22:52.440
<v Speaker 1>way out of the contract. And they've decided that the

0:22:52.560 --> 0:22:56.280
<v Speaker 1>risk of six thousand more or less delegates coming to

0:22:57.160 --> 0:22:59.480
<v Speaker 1>the city of Houston, which is an epidemic hot zone

0:22:59.600 --> 0:23:02.960
<v Speaker 1>at this point, was simply too great a risk for

0:23:03.040 --> 0:23:05.359
<v Speaker 1>a health stand point to both the attendees and a

0:23:05.400 --> 0:23:09.120
<v Speaker 1>local convention and hotel and restaurant workers. So they triggered

0:23:09.160 --> 0:23:11.720
<v Speaker 1>the forced masure clause, which is an escape clause in

0:23:11.840 --> 0:23:15.639
<v Speaker 1>contracts that says, if you cannot perform this contract, you

0:23:15.680 --> 0:23:19.440
<v Speaker 1>don't have to. Okay. Immediately, two different groups of Republicans suit,

0:23:19.560 --> 0:23:22.800
<v Speaker 1>and they suit on different grounds. The Texas Republican Party

0:23:22.840 --> 0:23:27.280
<v Speaker 1>itself said, well, that's actually not forced masure. You can

0:23:27.480 --> 0:23:30.639
<v Speaker 1>safely hold a convention for six thousand people in a

0:23:30.720 --> 0:23:34.919
<v Speaker 1>hall built for fifty thousand people with appropriate social distancing

0:23:35.080 --> 0:23:38.080
<v Speaker 1>and cleaning procedures. You just don't want to, and that's

0:23:38.080 --> 0:23:41.440
<v Speaker 1>an improper use of forced masure. Well, the other group,

0:23:41.600 --> 0:23:44.960
<v Speaker 1>let's just call them the rogue Republican big wigs because

0:23:44.960 --> 0:23:48.760
<v Speaker 1>they're not actually the Texas Republican Party. They also sued,

0:23:48.800 --> 0:23:52.639
<v Speaker 1>and they claimed constitutional ground that Turner, who is a Democrat,

0:23:53.080 --> 0:23:56.760
<v Speaker 1>was squashing their constitutional rights to free speech and assembly

0:23:57.040 --> 0:23:59.680
<v Speaker 1>and it was a political hit job by a Democrat

0:23:59.760 --> 0:24:03.560
<v Speaker 1>at and the rival political party, And both groups made

0:24:03.600 --> 0:24:06.760
<v Speaker 1>a great deal of the contrast between the way Sylvester

0:24:06.880 --> 0:24:11.120
<v Speaker 1>Turner vocally supported the Black Lives Matter marchers, which drew

0:24:11.160 --> 0:24:15.560
<v Speaker 1>sixty thousand protesters to Houston City streets last month, with

0:24:15.800 --> 0:24:20.119
<v Speaker 1>his saying, well, you can't safely have Republicans meet indoors

0:24:20.160 --> 0:24:23.160
<v Speaker 1>with six thousand people this month. Now, the city said, obviously,

0:24:23.200 --> 0:24:26.160
<v Speaker 1>an outdoor gathering like that is different than an indoor gathering,

0:24:26.280 --> 0:24:30.480
<v Speaker 1>especially given the World Health Organization's recent guidance that tiny

0:24:30.560 --> 0:24:34.919
<v Speaker 1>aerosolized particles of coronavirus can readily transmit the disease indoors.

0:24:34.960 --> 0:24:37.320
<v Speaker 1>That's the groundwork that all the fighting started on, and

0:24:37.359 --> 0:24:39.119
<v Speaker 1>at one point it was actually active in front of

0:24:39.160 --> 0:24:41.240
<v Speaker 1>three courts at the same time, but then quite a

0:24:41.320 --> 0:24:44.280
<v Speaker 1>roller coaster. So take us through the legal proceedings on

0:24:44.359 --> 0:24:46.520
<v Speaker 1>the lower courts all the way up to the Texas

0:24:46.520 --> 0:24:50.119
<v Speaker 1>Supreme Court. There were two different lower court judges that

0:24:50.160 --> 0:24:53.440
<v Speaker 1>were looking at the two different groups lawsuits separately. Both

0:24:53.440 --> 0:24:55.600
<v Speaker 1>of the judges were Democrats, because all of the local

0:24:55.600 --> 0:24:58.800
<v Speaker 1>state court judges in Houston are Democrats. Both judges, for

0:24:58.920 --> 0:25:03.040
<v Speaker 1>different reasons, rejected the Republican group's request for an emergency

0:25:03.160 --> 0:25:05.960
<v Speaker 1>order forcing the city to put the convention back on track.

0:25:06.359 --> 0:25:08.840
<v Speaker 1>So both of these groups over the weekend ran to

0:25:08.920 --> 0:25:11.320
<v Speaker 1>the Texas Supreme Court. They just skipped right over the

0:25:11.320 --> 0:25:14.040
<v Speaker 1>intermediate pelate courts, went straight to the Texas Supreme Court,

0:25:14.080 --> 0:25:17.160
<v Speaker 1>which by the way, is all Republican, and they were

0:25:17.200 --> 0:25:20.280
<v Speaker 1>hoping they would get a different answer there well on Sunday.

0:25:20.280 --> 0:25:23.159
<v Speaker 1>On Monday morning, hard to keep up. Monday morning, the

0:25:23.160 --> 0:25:26.920
<v Speaker 1>State Supreme Court said, you know, nice, try, but even

0:25:26.920 --> 0:25:29.720
<v Speaker 1>if your political rights are getting squashed, you don't have

0:25:29.760 --> 0:25:33.080
<v Speaker 1>the right to commandeer the convention center when they've appropriately

0:25:33.240 --> 0:25:36.359
<v Speaker 1>exercised an escape clause in a contract. So that ended

0:25:36.400 --> 0:25:38.760
<v Speaker 1>that aspect of it. And yet there was still a

0:25:38.800 --> 0:25:41.840
<v Speaker 1>local judge that had an emergency order in front of him.

0:25:42.160 --> 0:25:44.639
<v Speaker 1>Monday morning, so he held a hearing all Monday and

0:25:44.720 --> 0:25:46.840
<v Speaker 1>essentially ended up in the same place that the Texas

0:25:46.880 --> 0:25:49.199
<v Speaker 1>Supreme Court had ended up, where he said, it's a

0:25:49.240 --> 0:25:52.920
<v Speaker 1>contract case. They properly invoked the escape clause. You can

0:25:52.920 --> 0:25:54.960
<v Speaker 1>just fight about the damages down the road. We're not

0:25:54.960 --> 0:25:57.600
<v Speaker 1>putting the convention back on. That was Monday. So then

0:25:57.640 --> 0:26:01.840
<v Speaker 1>Monday night, the state Republican party leadership their executive committee

0:26:01.840 --> 0:26:05.119
<v Speaker 1>meeting and voted to go ahead and moved to convention

0:26:05.280 --> 0:26:08.000
<v Speaker 1>into a virtual online basis, which they had sort of

0:26:08.000 --> 0:26:10.960
<v Speaker 1>been planning for back since March when this whole pandemic

0:26:11.000 --> 0:26:13.880
<v Speaker 1>thing started gaining traction. They appropriately had a Plan B.

0:26:14.119 --> 0:26:15.920
<v Speaker 1>So they voted to go to Plan B. And you

0:26:15.920 --> 0:26:17.560
<v Speaker 1>would think that beie the end of it Monday night,

0:26:17.760 --> 0:26:23.320
<v Speaker 1>but no, the die hard, the rogue Republicans refused to

0:26:23.320 --> 0:26:27.280
<v Speaker 1>give up, and on Tuesday they grafted their constitutional claims

0:26:27.320 --> 0:26:30.959
<v Speaker 1>over the convention being canceled to an existing lawsuit they

0:26:31.000 --> 0:26:34.040
<v Speaker 1>had in federal court in Houston that was fighting actually

0:26:34.040 --> 0:26:38.280
<v Speaker 1>on a different matter about the Texas governors COVID business

0:26:38.320 --> 0:26:42.200
<v Speaker 1>restrictions and contract tracing and all kinds of constitutional claims

0:26:42.240 --> 0:26:44.359
<v Speaker 1>related to that business. And you think that was a

0:26:44.400 --> 0:26:47.239
<v Speaker 1>stretch to try to join all those people together on

0:26:47.280 --> 0:26:49.000
<v Speaker 1>that claim, and it was a stretch. But the reason

0:26:49.080 --> 0:26:51.280
<v Speaker 1>they did it was the federal judge that they had

0:26:51.359 --> 0:26:55.399
<v Speaker 1>drawn in that case is well known for anti government views.

0:26:55.480 --> 0:26:58.160
<v Speaker 1>He he rules against the government every chance to get

0:26:58.240 --> 0:27:00.760
<v Speaker 1>and he smacked them around in the process. So they thought, well,

0:27:00.760 --> 0:27:03.639
<v Speaker 1>it's worth a shot. And so on Wednesday, the federal

0:27:03.720 --> 0:27:06.560
<v Speaker 1>judge Hella hearing almost all day long, and he tortured

0:27:06.600 --> 0:27:09.320
<v Speaker 1>the City of Houston attorneys with questions that at one

0:27:09.359 --> 0:27:11.560
<v Speaker 1>point seriously had been thinking he was going to put

0:27:11.600 --> 0:27:15.480
<v Speaker 1>the Republican Convention back on track, until after hours late

0:27:15.520 --> 0:27:18.680
<v Speaker 1>in the day the judge said, no, it's likely true

0:27:18.960 --> 0:27:22.720
<v Speaker 1>that the Republican Party's political rights were trampled, you know,

0:27:22.800 --> 0:27:25.320
<v Speaker 1>violation of constant shores. But it's just too late and

0:27:25.359 --> 0:27:27.600
<v Speaker 1>they have a plan B that they're already working anyway,

0:27:27.800 --> 0:27:30.199
<v Speaker 1>So I'm not gonna let you do it. Is the end.

0:27:30.480 --> 0:27:34.199
<v Speaker 1>It is, finally is. I was texting with the lawyer afterwards,

0:27:34.200 --> 0:27:36.879
<v Speaker 1>and I said, you know, it's this, really it is.

0:27:36.960 --> 0:27:40.080
<v Speaker 1>The silver bullet been shot into this thing. And uh.

0:27:40.160 --> 0:27:42.320
<v Speaker 1>He admitted that it was just too late and they

0:27:42.320 --> 0:27:45.720
<v Speaker 1>were going to have to go online, and in truth,

0:27:45.720 --> 0:27:47.600
<v Speaker 1>they've been planning to do that as a plan B

0:27:47.880 --> 0:27:50.040
<v Speaker 1>all along. But you know, they want to have their

0:27:50.080 --> 0:27:52.520
<v Speaker 1>party hats, they want to have their you know, crazy

0:27:52.560 --> 0:27:55.359
<v Speaker 1>banners and and political meetings and that's actually their right

0:27:55.400 --> 0:27:58.040
<v Speaker 1>as a political party to meet however they choot and

0:27:58.080 --> 0:28:00.560
<v Speaker 1>however they prefer. That is a constitution all right, under

0:28:00.560 --> 0:28:03.200
<v Speaker 1>both the state Constitution and the federal Constitution. But like

0:28:03.359 --> 0:28:05.520
<v Speaker 1>the Texas Supreme Court said, in the midst of a

0:28:05.560 --> 0:28:09.040
<v Speaker 1>pandemic and when certain conditions trigger the city can appropriately

0:28:09.080 --> 0:28:12.440
<v Speaker 1>say you just can't do that here. Thanks Laurel. That's

0:28:12.480 --> 0:28:16.119
<v Speaker 1>Laurel Calkins, Lburg legal reporter. I'm June Brusso and this

0:28:16.280 --> 0:28:16.919
<v Speaker 1>is Bilburg.