WEBVTT - Trump Contentious Hearing & Adnan Syed Conviction Reinstated

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<v Speaker 1>This is Bloomberg Law with June Brusso from Bloomberg Radio.

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<v Speaker 2>In the first court here and in nearly a year,

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<v Speaker 2>a lawyer for Donald Trump clashed with the judge in

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<v Speaker 2>the federal election interference prosecution of the former president. Prosecutors

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<v Speaker 2>and defense lawyers are bitterly at odds over the next

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<v Speaker 2>steps in the case. After the Supreme Court narrowed the

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<v Speaker 2>scope of the prosecution by ruling that former presidents are

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<v Speaker 2>entitled to broad immunity from criminal charges. There were several

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<v Speaker 2>tens exchanges between Judge Tanya Chuckkin and Trump lawyer John Lauro,

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<v Speaker 2>particularly when he referenced the November election. We're talking about

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<v Speaker 2>the presidency of the United States, Laura said. At one point,

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<v Speaker 2>Chuckkins shot back, I'm not talking about the presidency of

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<v Speaker 2>the United States. I'm talking about a fore count indictment.

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<v Speaker 2>Joining me is Zoe Tillman, Bloomberg senior reporter who is

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<v Speaker 2>at the hearing and is joining us from the courthouse. ZOEA.

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<v Speaker 2>I understand it was pretty contentious between the judge and

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<v Speaker 2>Trump's attorney.

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<v Speaker 3>Yeah, that's right. You know, I think that the defense

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<v Speaker 3>really wanted to come out swinging, saying that they think

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<v Speaker 3>that the Special Council is rushing and trying to move

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<v Speaker 3>things too fast and prejudice them by going first, essentially

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<v Speaker 3>to try and make their case for why the indictment

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<v Speaker 3>should move forward after the Supreme Court's immunity ruling, and

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<v Speaker 3>the Judge repeatedly said, you know, I don't want to

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<v Speaker 3>hear rhetoric. I want to hear legal arguments. It doesn't

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<v Speaker 3>seem like there's rushing and you know, references to the election.

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<v Speaker 3>The judge made clear that she was deeply uninterested considering

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<v Speaker 3>the electoral calendar and deciding what to do next. So

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<v Speaker 3>those are all tension points.

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<v Speaker 2>Today, there was a dispute about which side will file

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<v Speaker 2>briefs first. The Special Council wants to submit a brief

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<v Speaker 2>first on why it's superseding indictment complies with the sup

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<v Speaker 2>Frame Court's immunity decision, and it would include a lot

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<v Speaker 2>of evidence like grand jury transcripts and FBI notes on

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<v Speaker 2>witness interviews.

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<v Speaker 3>They wanted to essentially lay out the facts and the

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<v Speaker 3>evidence that they're going to present as part of this

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<v Speaker 3>next stage of the case and then argue why those

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<v Speaker 3>all survive the immunity decision. Either because they are not

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<v Speaker 3>official acts by Trump as president, or even if they are,

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<v Speaker 3>why they sort of overcome the presumption of immunity that

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<v Speaker 3>the Supreme Court laid out for sort of non core

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<v Speaker 3>official acts by a president. And so they argued that

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<v Speaker 3>the most efficient way to do this, rather than wait

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<v Speaker 3>for Trump to file emotion to dismiss the incitement, which

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<v Speaker 3>would be the normal course of action, would be for

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<v Speaker 3>them to preemptively sort of lay out their case, make

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<v Speaker 3>the argument for why it is legally valid under the

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<v Speaker 3>immunity framework, and then have Trump respond to that.

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<v Speaker 2>So did the judge decide whether to proceed in that

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<v Speaker 2>way with them filing the brief first.

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<v Speaker 3>She did not. She said that she hoped to set

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<v Speaker 3>a schedule later in the day or at least soon,

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<v Speaker 3>And you know, agreed with Trump's lawyers that this would

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<v Speaker 3>sort of be going out of order. That's the normal

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<v Speaker 3>course of business, and the normal rules would call for

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<v Speaker 3>the defense to go first and sort of raise the

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<v Speaker 3>points they want to raise about what is sufficient in

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<v Speaker 3>the new indictments. But as the judgment also noted, you know,

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<v Speaker 3>just because normal course of action doesn't mean that they

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<v Speaker 3>can't change up the order and the government argued that

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<v Speaker 3>this would avoid multiple potential appeals by Trump's lawyers, versus

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<v Speaker 3>putting everything sort of in one package and then whoever

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<v Speaker 3>loses can take all of that up to the DC circuit.

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<v Speaker 2>So it seemed as if the judge and the prosecution

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<v Speaker 2>acknowledge that no matter what happened, there was going to

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<v Speaker 2>be an appeal, and that the prosecution was just trying

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<v Speaker 2>to keep it down to one appeal.

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<v Speaker 3>That's right. Basically, Trump lawyers talked about wanting to handle

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<v Speaker 3>this in a couple stages where they first want to

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<v Speaker 3>argue that by keeping allegations about Donald Trump's efforts to

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<v Speaker 3>pressure then Vice President Mike Pence in the indictment, that

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<v Speaker 3>that conduct specifically is still official acts not entitled to immunity.

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<v Speaker 3>And if that's the case, they argue, that means that

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<v Speaker 3>this new grand jury that returned the superseding indictment was

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<v Speaker 3>tainted and the entire indictment should be tossed up. And

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<v Speaker 3>then if the judge disagrees and says that the Pence

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<v Speaker 3>information can stay in, then they would go to a

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<v Speaker 3>next round of briefing as to why other parts of

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<v Speaker 3>the indictment bill fail. Out of the immunity test. But yees,

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<v Speaker 3>I think everyone agreed that whatever happens, whatever jun Tutkin does,

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<v Speaker 3>will be appealed, and she at one point even said

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<v Speaker 3>that she thought it was a quote exercise in futility

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<v Speaker 3>to try to set some kind of trial schedule because

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<v Speaker 3>it just doesn't matter, and everything we put on hold

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<v Speaker 3>again when it goes up to the circuit or the

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<v Speaker 3>Supreme courtance.

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<v Speaker 2>Trump's lawyers took the position that the whole case has

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<v Speaker 2>to fall if Trump's interactions with Mike Pence are immune

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<v Speaker 2>from prosecution, and did the judge disagree with the defense

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<v Speaker 2>interpretation of the Supreme Court decision?

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<v Speaker 3>Not in so many words, but she suggested that she

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<v Speaker 3>didn't think that it was clear cut that that was

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<v Speaker 3>definitely off limits and that it was official acts and

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<v Speaker 3>immune from prosecution. I think a few times she indicated

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<v Speaker 3>that what exactly the Supreme Court had to say about

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<v Speaker 3>the indictment was not as sort of clear cut as

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<v Speaker 3>Trump's lawyers suggested it was, and that it had to be,

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<v Speaker 3>you know, a fact based determination as opposed to just

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<v Speaker 3>a decision on the wall about whether that that part

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<v Speaker 3>of the indictment is wholesale off limits to prosecutors or not.

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<v Speaker 2>Anyone who read that decision knows it's not clear cut.

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<v Speaker 2>There's not much that's clear cut in that decision. Now. Also,

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<v Speaker 2>the Trump lawyers did not try before for this to

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<v Speaker 2>make an argument that the Special Counsel's appointment is unconstitutional,

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<v Speaker 2>but now they want to make that argument here they do.

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<v Speaker 3>There was definitely some tense back and forth about that

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<v Speaker 3>as well, you know, with the judge and the prosecutor

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<v Speaker 3>from Jack's miss Office, Tom Wyndham, basically saying that they

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<v Speaker 3>actually missed the deadline to raise that argument before the

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<v Speaker 3>case was paused during the immunity fights. But regardless, you know,

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<v Speaker 3>Judge Chuckkin is going to give them some time to

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<v Speaker 3>raise that argument, but she already signaled that it's an

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<v Speaker 3>uphill battle for them. They noted, you know, that Judge

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<v Speaker 3>Eileen Cannon and Florida had just missed the other case

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<v Speaker 3>that miss Office brought regarding Trump's handling class by documents

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<v Speaker 3>on the appointment's clause issue, and that Justice Thomas, in

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<v Speaker 3>a concurring opinion in the immunity case, had mentioned that

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<v Speaker 3>issue as one of interests him at least. And Trump

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<v Speaker 3>lawyer said, well, these two things you know, really make

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<v Speaker 3>this an important issue for us to approach now. And

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<v Speaker 3>Judge Chuckkins said, I don't know about that. She said

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<v Speaker 3>that she thought Judge Cannon's opinion on this issue was

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<v Speaker 3>not quote, particularly persuasive. So I think we got an

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<v Speaker 3>indication that she's not inclined to join Judge Cannon and Florida.

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<v Speaker 3>And there's also finding PC Circuit president on this issue.

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<v Speaker 3>So regardless of what she thinks about Judge Cannon's opinion,

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<v Speaker 3>her hands are tied here. But they'll be able to

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<v Speaker 3>raise it, but you unlikely to succeed, at least not

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<v Speaker 3>in the way that they did in Florida.

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<v Speaker 2>Is there still an attempt to move the case forward

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<v Speaker 2>quickly even though it's obvious that it can't be tried

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<v Speaker 2>before the election. Or are the prosecutors sort of a

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<v Speaker 2>little bit more laid back about it?

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<v Speaker 3>You know, it's interesting when they put in writing what

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<v Speaker 3>they wanted to do next ahead of this hearing, the

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<v Speaker 3>government noticeably did not commit to a certain date when

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<v Speaker 3>they wanted things to get started. They just said that

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<v Speaker 3>we're prepared to move as quickly as the judge wants

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<v Speaker 3>us to. In court today, Judge Chuckkins said, you got

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<v Speaker 3>to give me more than that. You know, how quickly

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<v Speaker 3>are you prepared to really move and they said three weeks,

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<v Speaker 3>two to three weeks, probably three weeks, so you know,

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<v Speaker 3>that's that is quite fast. And I think it's really

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<v Speaker 3>now a question of is the judge inclined to go

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<v Speaker 3>with that schedule and sort of move things forward and

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<v Speaker 3>have you know, new pleadings and aspects of this fight

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<v Speaker 3>play out publicly before the election, or is she inclined

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<v Speaker 3>to go with the sort of slower pace post election

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<v Speaker 3>schedule that Trump's lawyers have proposed.

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<v Speaker 2>And at one point, did Trump's lawyer actually say that

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<v Speaker 2>they didn't want sensitive information coming out before the election?

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<v Speaker 3>You know what Trump lay, John Laurro said a few

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<v Speaker 3>times because he referred to this quick, sensitive time, and

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<v Speaker 3>he brought that up a few times, and the judge

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<v Speaker 3>finally said, let's talk about what you're talking about here.

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<v Speaker 3>You're talking about the election. She goes, you know, I

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<v Speaker 3>understand that there's an election coming, but and this is

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<v Speaker 3>the point that she's made before the election does not

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<v Speaker 3>dictate my schedule. It's not relevant to the schedule that

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<v Speaker 3>I'm setting here. And at one point she even said

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<v Speaker 3>to trumpflar. She accused them of trying to drag this

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<v Speaker 3>out to avoid influencing the election, and you know, their

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<v Speaker 3>argument was that they didn't want the government to sort

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<v Speaker 3>of go first, right, So the implication was that they

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<v Speaker 3>were trying to delay this anything coming out that might

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<v Speaker 3>be hurtful to Trump's campaign before the election. And John

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<v Speaker 3>Laurier pushed back on that and said, no, no, that's

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<v Speaker 3>not what we're trying to do here. We just think

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<v Speaker 3>that the Supreme Court has required us to give these

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<v Speaker 3>very weighty issues related to the presidency careful considerations. That

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<v Speaker 3>it was clear, you know, she was trying to unwrap

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<v Speaker 3>what she said was really the subtext of what they

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<v Speaker 3>were saying. When Dunlaer kept talking about this being a

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<v Speaker 3>sensitive time.

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<v Speaker 2>No surprise that they're trying to delay the case, as

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<v Speaker 2>they've delayed every case so far. Was there any talk

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<v Speaker 2>of whold an evidentiary hearing? Perhaps before the election.

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<v Speaker 3>There was, but it didn't sound like that something that

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<v Speaker 3>would happen anytime here from lawyer John Morrow talked about

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<v Speaker 3>at some point their clients should have the ability to

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<v Speaker 3>question the Special Counsel's witnesses and test their evidence as

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<v Speaker 3>this immunity fight plays out, but neither side was really

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<v Speaker 3>pushing for that kind of airing of evidence or testimony

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<v Speaker 3>in the near future.

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<v Speaker 2>So what's the next thing that will happen.

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<v Speaker 3>So what we're waiting for now is for the judge

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<v Speaker 3>to enter a scheduling order and it will indicate sort

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<v Speaker 3>of who wins and loses this round, at least when

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<v Speaker 3>it comes to timing, and will see, you know, if

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<v Speaker 3>she sets any deadlines before November fifth, that's really the

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<v Speaker 3>most important operative date right now, and what order she

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<v Speaker 3>puts things in, if she has breathed to do sort

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<v Speaker 3>of all at once, or if she staggers them. But

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<v Speaker 3>we're not really expecting any other surprises on just when

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<v Speaker 3>those first deadlines are Judge Chuckkin.

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<v Speaker 2>Judge Chuckkins seems like a no nonsense judge. Judge Chuckkins

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<v Speaker 2>seems like a no nonsense judge.

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<v Speaker 3>She does, and you know, I think as a reporter

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<v Speaker 3>watching her, you could sense the frustration that she had

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<v Speaker 3>with some of the ways that Trump's lawyers were framing

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<v Speaker 3>their arguments. You At one point she told John Laura

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<v Speaker 3>to sort of cool it with the rhetoric, and he

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<v Speaker 3>pushed back and said this is not rhetoric. These are

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<v Speaker 3>legal arguments.

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<v Speaker 2>Thanks so much, Zoe for taking us inside the courtroom.

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<v Speaker 2>That's Bloomberg Senior reporter Zoe Tillman coming up next on

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<v Speaker 2>the Bloomberg Law Show. Another twist and turn in the

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<v Speaker 2>odd non Sayyed case, the legal saga that gained national

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<v Speaker 2>attention through the podcast serial. I'm June Grosso and you're

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<v Speaker 2>listening to Bloomberg. Yet another twist and turn in the

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<v Speaker 2>odd non Sayyed case, a llegal saga that gained national

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<v Speaker 2>attention through the hit podcast serial. After more than two

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<v Speaker 2>decades in prison, Sayed was freed in September of twenty

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<v Speaker 2>twenty two when a Baltimore judge overturned his conviction for

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<v Speaker 2>the murder of his ex girlfriend at the request of

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<v Speaker 2>Baltimore prosecutors, who said they found flaws in the evidence

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<v Speaker 2>used against him at trial. But now Siyed is once

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<v Speaker 2>again facing prison. His conviction has been reinstated after the

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<v Speaker 2>Maryland Supreme Court, in a four to three decision, ruled

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<v Speaker 2>that the earlier proceedings had violated the rights of the

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<v Speaker 2>victim's family because they weren't given enough notice of the

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<v Speaker 2>time of the hearing. Joining me as trial attorney David

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<v Speaker 2>Ring of Tailor and Ring in Los Angeles. If prosecutors

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<v Speaker 2>decide that they've wrongfully convicted someone, shouldn't it be their

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<v Speaker 2>decision to drop the charges? I mean, why should a

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<v Speaker 2>court make that decision?

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<v Speaker 1>The court has a say in that because the or

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<v Speaker 1>it's the ultimate gatekeeper. You know, we have to have

0:13:02.880 --> 0:13:05.520
<v Speaker 1>checks and balances. Look, most of the time, if the

0:13:05.559 --> 0:13:08.600
<v Speaker 1>prosecution comes in and says, hey, you know, this guy's

0:13:08.640 --> 0:13:12.080
<v Speaker 1>wrongfully convicted, the vast majority of the time, the court's

0:13:12.120 --> 0:13:15.080
<v Speaker 1>going to agree with them and drop the charges. But

0:13:15.600 --> 0:13:17.920
<v Speaker 1>this court still has to sign off on it. There

0:13:17.960 --> 0:13:20.360
<v Speaker 1>still has to be some sort of hearing, and it's

0:13:20.440 --> 0:13:22.720
<v Speaker 1>just a way to have checks and balances to make

0:13:22.760 --> 0:13:25.760
<v Speaker 1>sure that everyone's playing fairly in the system.

0:13:26.200 --> 0:13:29.200
<v Speaker 2>So in this case, the issue is that the victim's brother,

0:13:29.679 --> 0:13:33.160
<v Speaker 2>who spoke at the hearing by video conference from his

0:13:33.360 --> 0:13:36.840
<v Speaker 2>house in California, he argued that you should have gotten

0:13:36.840 --> 0:13:40.720
<v Speaker 2>more notice of the proceeding. He was given notice on

0:13:40.840 --> 0:13:42.760
<v Speaker 2>Friday about a Monday hearing.

0:13:43.280 --> 0:13:46.160
<v Speaker 1>That was the issue. But here's the bigger picture on

0:13:46.200 --> 0:13:49.680
<v Speaker 1>that issue. Because the way it's kind of framed sometimes

0:13:49.679 --> 0:13:51.200
<v Speaker 1>in the media, it's like well, what's the big deal?

0:13:51.240 --> 0:13:55.440
<v Speaker 1>He beared by zoom. But that hearing was a monumental hearing.

0:13:55.800 --> 0:13:59.040
<v Speaker 1>That was a hearing where the prosecution basically came into

0:13:59.120 --> 0:14:02.800
<v Speaker 1>court and said, hey, Court, we want to drop these charges,

0:14:02.840 --> 0:14:06.439
<v Speaker 1>we want to have this conviction overturned. And what Maryland's

0:14:06.559 --> 0:14:09.920
<v Speaker 1>highest court has said in respond to that was, if

0:14:09.920 --> 0:14:13.000
<v Speaker 1>you're going to have a hearing like that, the victim

0:14:13.200 --> 0:14:16.760
<v Speaker 1>or the victim's representative absolutely has a right not only

0:14:16.800 --> 0:14:20.400
<v Speaker 1>to be there in person, but to be heard. And

0:14:20.440 --> 0:14:23.200
<v Speaker 1>that's a big part of this ruling is that you know,

0:14:23.480 --> 0:14:27.000
<v Speaker 1>the victim's brother, mister Lee, he was in California. He

0:14:27.120 --> 0:14:29.800
<v Speaker 1>was given notice on a Friday to be there Monday.

0:14:30.040 --> 0:14:32.520
<v Speaker 1>He had an attorney who was representing him. They said, hey,

0:14:32.520 --> 0:14:34.280
<v Speaker 1>give us another week. We want to be there in

0:14:34.320 --> 0:14:36.480
<v Speaker 1>person and we want to be heard. And they weren't

0:14:36.520 --> 0:14:39.560
<v Speaker 1>given that opportunity. And the key to this decision is

0:14:39.640 --> 0:14:43.240
<v Speaker 1>if he had been given time to come to Baltimore

0:14:43.360 --> 0:14:46.600
<v Speaker 1>to appear in court with his lawyer, the lawyer has

0:14:46.640 --> 0:14:49.720
<v Speaker 1>a right to argue in basically in the shoes of

0:14:49.720 --> 0:14:52.960
<v Speaker 1>the victim and say why is this conviction being dropped?

0:14:53.360 --> 0:14:56.520
<v Speaker 1>There's plenty of evidence here, this guy did it, there's

0:14:56.560 --> 0:14:59.000
<v Speaker 1>no new evidence to drop it, and they basically have

0:14:59.240 --> 0:15:03.560
<v Speaker 1>a right to challenge the prosecution's decision to drop the case.

0:15:03.800 --> 0:15:06.400
<v Speaker 1>That's where this decision is so important.

0:15:07.080 --> 0:15:10.680
<v Speaker 2>There's no set time for the notice to a victim

0:15:10.800 --> 0:15:14.360
<v Speaker 2>in Maryland law. So how did the Maryland Supreme Court

0:15:14.680 --> 0:15:17.880
<v Speaker 2>decide what notice is enough? And how did they.

0:15:17.880 --> 0:15:21.520
<v Speaker 1>Come to that it's a reasonableness standard. And so basically,

0:15:21.640 --> 0:15:24.640
<v Speaker 1>in a very close decision four to three, the Supreme

0:15:24.680 --> 0:15:29.920
<v Speaker 1>Court said it's not reasonable to tell the victims representative

0:15:30.000 --> 0:15:32.880
<v Speaker 1>on a Friday that you're having a hearing on a

0:15:32.960 --> 0:15:35.880
<v Speaker 1>Monday and say, oh, gee, but you can appear by zoom.

0:15:36.120 --> 0:15:38.320
<v Speaker 1>That's not reasonable. They have a right to be there

0:15:38.440 --> 0:15:42.480
<v Speaker 1>in person. So what's reasonable? Okay, set it a week out,

0:15:42.480 --> 0:15:44.920
<v Speaker 1>two weeks out, but setting it on the next business

0:15:45.000 --> 0:15:50.200
<v Speaker 1>day unreasonable. It denied the victim's representative of his right

0:15:50.280 --> 0:15:53.520
<v Speaker 1>to be in court and to be heard. That's the key.

0:15:54.080 --> 0:15:57.640
<v Speaker 2>While the appeal was pending, and eight days before the deadline,

0:15:57.880 --> 0:16:03.760
<v Speaker 2>the Baltimore States Attorney had dropped all charges against Sayed

0:16:04.320 --> 0:16:08.080
<v Speaker 2>in the dessense, Justice Michelle Houghten argued the issue was

0:16:08.120 --> 0:16:11.840
<v Speaker 2>moot because the underlying charges no longer exist. Quote, this

0:16:12.000 --> 0:16:16.440
<v Speaker 2>case exists as a procedural zombie. It has been reanimated

0:16:16.520 --> 0:16:20.400
<v Speaker 2>despite its expiration. The doctrine of mootoness was designed to

0:16:20.480 --> 0:16:24.880
<v Speaker 2>prevent such judicial necromancy. Very good language.

0:16:24.880 --> 0:16:28.640
<v Speaker 1>Then I totally disagree with her. I think in this

0:16:28.720 --> 0:16:32.720
<v Speaker 1>day and age, the victim's rights are incredibly important, and

0:16:32.800 --> 0:16:35.760
<v Speaker 1>too many times the victim or their family the rights

0:16:35.800 --> 0:16:39.520
<v Speaker 1>get trampled in the criminal process and the prosecutor. Remember,

0:16:39.600 --> 0:16:43.120
<v Speaker 1>the prosecutor represents the people. They don't necessarily represent the

0:16:43.240 --> 0:16:47.200
<v Speaker 1>victim's family or the victim. They represent the people. And

0:16:47.280 --> 0:16:50.680
<v Speaker 1>so I think what Maryland Supreme Court has said here is, hey,

0:16:50.680 --> 0:16:54.160
<v Speaker 1>you know what, we're going to respect the victim's rights here.

0:16:54.280 --> 0:16:58.400
<v Speaker 1>And this victim had its rights trampled upon by this prosecutor,

0:16:58.480 --> 0:17:02.440
<v Speaker 1>who who quickly went in court had completely reversed course

0:17:02.520 --> 0:17:06.399
<v Speaker 1>on how they felt about Saii's conviction and suddenly was

0:17:06.440 --> 0:17:09.399
<v Speaker 1>willing to let this guy go free. And basically the

0:17:09.480 --> 0:17:13.520
<v Speaker 1>Supreme Court of Maryland said, hey, you know what, that's

0:17:13.560 --> 0:17:17.240
<v Speaker 1>not fair. This victim her representative has an absolute right

0:17:17.280 --> 0:17:21.080
<v Speaker 1>to be there and to challenge that decision by the prosecutor. Look,

0:17:21.160 --> 0:17:23.439
<v Speaker 1>I think if you want to kind of read between

0:17:23.480 --> 0:17:26.000
<v Speaker 1>the lines here, you know, sometimes we have to read

0:17:26.040 --> 0:17:29.040
<v Speaker 1>between the lines of how these decisions get played out

0:17:29.400 --> 0:17:33.240
<v Speaker 1>in the highest course. I think that the Supreme Court

0:17:33.520 --> 0:17:36.480
<v Speaker 1>is basically saying, we don't think Saia should be free.

0:17:36.640 --> 0:17:38.920
<v Speaker 1>We think there should be a new trial. Why did

0:17:38.920 --> 0:17:42.320
<v Speaker 1>the prosecution, you know, fight this for twenty years and

0:17:42.359 --> 0:17:46.200
<v Speaker 1>then suddenly in twenty twenty two reverse course and say, yeah,

0:17:46.240 --> 0:17:48.520
<v Speaker 1>you know what, he should be free. Why did that

0:17:48.560 --> 0:17:51.320
<v Speaker 1>suddenly happen? I think they want to see a new trial.

0:17:51.400 --> 0:17:53.200
<v Speaker 1>They don't want to see him go free.

0:17:53.480 --> 0:17:59.200
<v Speaker 2>Well, the prosecution did a complete new investigation and new

0:17:59.280 --> 0:18:04.000
<v Speaker 2>DNA has staying from the shoes of the victim, excluded

0:18:04.119 --> 0:18:08.080
<v Speaker 2>Sayed as a suspect. The prosecution had new evidence, and

0:18:08.160 --> 0:18:10.360
<v Speaker 2>you know, the rights of the victim are one thing,

0:18:10.400 --> 0:18:14.160
<v Speaker 2>but you know that our justice system is far from

0:18:14.200 --> 0:18:17.840
<v Speaker 2>perfect and there are a lot of wrongful convictions. So

0:18:17.960 --> 0:18:20.639
<v Speaker 2>how do you weigh you know, the twists and turns

0:18:20.640 --> 0:18:23.600
<v Speaker 2>in this case. It's been going on for twenty years,

0:18:23.720 --> 0:18:26.560
<v Speaker 2>you know, the rights of the victim versus the rights

0:18:26.640 --> 0:18:32.639
<v Speaker 2>of a defendant that the prosecution says now was wrongfully convicted.

0:18:33.040 --> 0:18:36.320
<v Speaker 1>Well, so Here's here's where this dynamic kicks in is

0:18:36.400 --> 0:18:39.960
<v Speaker 1>because again it's all about the opportunity to be heard

0:18:40.400 --> 0:18:43.359
<v Speaker 1>and to have a fair playing field. And so when

0:18:43.440 --> 0:18:46.680
<v Speaker 1>the prosecution came in in twenty twenty two and said, oh,

0:18:46.720 --> 0:18:51.000
<v Speaker 1>we have new evidence which we think exonerates, said, well,

0:18:51.000 --> 0:18:54.520
<v Speaker 1>they did that behind closed doors. They didn't do that

0:18:54.600 --> 0:18:57.040
<v Speaker 1>in open court. You know it's come out what the

0:18:57.080 --> 0:18:59.520
<v Speaker 1>evidence was. But I'll tell you, if you'd have fresh

0:18:59.560 --> 0:19:02.560
<v Speaker 1>eyes on that so called new evidence, I'm not sure

0:19:02.640 --> 0:19:05.680
<v Speaker 1>how new or exculpatory it really is. I mean, there's

0:19:05.720 --> 0:19:08.679
<v Speaker 1>no DNA on her shoes. To me, that's like a

0:19:08.880 --> 0:19:11.960
<v Speaker 1>so wet you know, she was strangled to death. Why

0:19:11.960 --> 0:19:14.840
<v Speaker 1>would there be his DNA on her shoes? How does

0:19:14.880 --> 0:19:17.560
<v Speaker 1>that exonerate him? I get it. There's two sides to

0:19:17.640 --> 0:19:21.280
<v Speaker 1>this case. There are people who absolutely believe he got

0:19:21.359 --> 0:19:23.639
<v Speaker 1>railroaded and didn't do it, and there's people who believe

0:19:24.000 --> 0:19:27.159
<v Speaker 1>that he absolutely did it. And so the Supreme Court

0:19:27.240 --> 0:19:29.840
<v Speaker 1>is saying, you know what, not so fast here, not

0:19:29.960 --> 0:19:32.800
<v Speaker 1>so fast prosecution. There's got to be a hearing on this.

0:19:33.240 --> 0:19:35.480
<v Speaker 1>We want to shine a spotlight on what your new

0:19:35.480 --> 0:19:39.920
<v Speaker 1>evidence is and what your reasons are for suddenly reversing

0:19:40.000 --> 0:19:42.200
<v Speaker 1>a conviction and letting a guy go free, and we're

0:19:42.200 --> 0:19:44.280
<v Speaker 1>not going to let you do it behind closed doors.

0:19:45.359 --> 0:19:49.600
<v Speaker 2>Now there's another twist in the case because the Baltimore

0:19:49.600 --> 0:19:53.040
<v Speaker 2>State's Attorney, Marilyn Moseby, who had moved to throw out

0:19:53.080 --> 0:19:56.240
<v Speaker 2>the conviction and drop the charges, she's no longer the

0:19:56.280 --> 0:20:01.359
<v Speaker 2>Baltimore State Attorney. And now there's a new Baltimore's state attorney,

0:20:01.600 --> 0:20:04.359
<v Speaker 2>and his office said it needed time to review the

0:20:04.440 --> 0:20:08.240
<v Speaker 2>Supreme Courts lent the opinion, and to determine whether his

0:20:08.359 --> 0:20:11.480
<v Speaker 2>office has a conflict of interest in the case. What

0:20:11.680 --> 0:20:14.040
<v Speaker 2>kind of conflict of interest are they referring to.

0:20:14.720 --> 0:20:18.040
<v Speaker 1>So you have a new prosecutor, Ivan Bates, And in

0:20:18.119 --> 0:20:21.320
<v Speaker 1>his campaign to become the prosecutor, he seemed to be

0:20:21.359 --> 0:20:24.960
<v Speaker 1>a proponent that the conviction should be dropped. And so look,

0:20:25.000 --> 0:20:27.879
<v Speaker 1>he's in a political pickle right now because it's a

0:20:27.920 --> 0:20:31.119
<v Speaker 1>tough decision. Do you drop this conviction for murder or

0:20:31.200 --> 0:20:34.400
<v Speaker 1>do you go ahead and reverse course yet again and

0:20:34.640 --> 0:20:37.440
<v Speaker 1>have a new trial. So he might take the easy

0:20:37.440 --> 0:20:40.960
<v Speaker 1>way out. He might punt it to another independent agency

0:20:40.960 --> 0:20:43.320
<v Speaker 1>and let them make the decision. You know, he may

0:20:43.400 --> 0:20:45.159
<v Speaker 1>look back at it and say, hey, this is too

0:20:45.240 --> 0:20:49.399
<v Speaker 1>much water under the bridge here for this Baltimore prosecution office,

0:20:49.640 --> 0:20:53.240
<v Speaker 1>and we've lost credibility on this case. Let's let an independent,

0:20:53.720 --> 0:20:56.760
<v Speaker 1>another state agency come in and make that decision for us.

0:20:57.800 --> 0:21:01.240
<v Speaker 2>This case, as you know, has gotten so much attention

0:21:01.680 --> 0:21:05.040
<v Speaker 2>because of the serial podcast, and there have been so

0:21:05.200 --> 0:21:10.439
<v Speaker 2>many legal twists and turns in the case. And after

0:21:10.480 --> 0:21:14.320
<v Speaker 2>his release there were crowds outside the courthouse and it

0:21:14.400 --> 0:21:20.120
<v Speaker 2>was covered nationally. He's now out pending the determination here.

0:21:20.640 --> 0:21:24.119
<v Speaker 2>I mean, what would it be like politically for a

0:21:24.160 --> 0:21:27.760
<v Speaker 2>state's attorney to say, oh, we're going to refile charges

0:21:28.359 --> 0:21:29.639
<v Speaker 2>and you have to go back to prison.

0:21:30.760 --> 0:21:33.480
<v Speaker 1>They'd absolutely be an outpright And I don't think anyone's

0:21:33.560 --> 0:21:36.720
<v Speaker 1>expecting that decision to be made for that exact reason,

0:21:36.840 --> 0:21:39.400
<v Speaker 1>because that's a tough decision to say, you know what,

0:21:39.520 --> 0:21:42.160
<v Speaker 1>we're gonna have another trial, We're going to go through

0:21:42.200 --> 0:21:44.560
<v Speaker 1>this all over again, and that's going to be more

0:21:44.640 --> 0:21:47.399
<v Speaker 1>years and more appeals and all that, and you know,

0:21:47.440 --> 0:21:49.320
<v Speaker 1>we're going to take this guy who's now out there

0:21:49.320 --> 0:21:51.200
<v Speaker 1>and free and we're going to put him back in prison.

0:21:51.320 --> 0:21:54.159
<v Speaker 1>That's the toughest decision to make. And you're right, The

0:21:54.240 --> 0:21:56.520
<v Speaker 1>easy decision is we're just going to let things stand

0:21:56.520 --> 0:21:59.040
<v Speaker 1>where they are. We're gon we're gonna pursue this any further.

0:21:59.080 --> 0:22:01.400
<v Speaker 1>It's been going on too long already. It's been going

0:22:01.440 --> 0:22:04.440
<v Speaker 1>on for twenty five years. You know, he was convicted

0:22:04.760 --> 0:22:07.800
<v Speaker 1>in the year two thousand. This case has been going

0:22:07.800 --> 0:22:10.400
<v Speaker 1>on for a long time. But it's not over yet

0:22:10.440 --> 0:22:13.040
<v Speaker 1>because we still have to have this new hearing. The

0:22:13.119 --> 0:22:15.600
<v Speaker 1>Supreme Court said there's going to be another hearing on

0:22:15.680 --> 0:22:19.680
<v Speaker 1>whether this conviction is going to be dropped. The victim's

0:22:19.720 --> 0:22:22.399
<v Speaker 1>brother has a right to be heard at that hearing,

0:22:22.720 --> 0:22:24.760
<v Speaker 1>and then there could be appeals that flow from that.

0:22:24.960 --> 0:22:27.160
<v Speaker 1>This case is going to go on for a few

0:22:27.200 --> 0:22:28.120
<v Speaker 1>more years.

0:22:28.240 --> 0:22:32.320
<v Speaker 2>Although if the victim's family gets its chance to appear

0:22:32.680 --> 0:22:37.879
<v Speaker 2>and the charges are dropped again, that should and the appeals,

0:22:37.960 --> 0:22:40.520
<v Speaker 2>I mean, tell us what could happen at this hearing.

0:22:40.760 --> 0:22:44.360
<v Speaker 1>Well, look, here's the possible outcomes of this next hearing. Right,

0:22:44.840 --> 0:22:46.880
<v Speaker 1>So it's going to be a redo, and we don't

0:22:46.920 --> 0:22:49.000
<v Speaker 1>know which way the prosecution is going to come in.

0:22:49.040 --> 0:22:51.960
<v Speaker 1>But let's say the prosecution stays where they were in

0:22:52.000 --> 0:22:54.880
<v Speaker 1>twenty twenty two and says, hey, we think the conviction

0:22:54.960 --> 0:22:59.080
<v Speaker 1>should be overturned, right, and then the mister Lee, the

0:22:59.119 --> 0:23:01.240
<v Speaker 1>brother gets to come in and argue that shouldn't be

0:23:01.280 --> 0:23:03.520
<v Speaker 1>the case. But let's say the judge agrees with that,

0:23:04.080 --> 0:23:06.159
<v Speaker 1>all right, that probably brings an end to the case.

0:23:06.320 --> 0:23:10.840
<v Speaker 1>You know, the conviction's overturned, he's free. Finally it's over. However,

0:23:11.200 --> 0:23:13.239
<v Speaker 1>you know, there's going to be a new judge on

0:23:13.320 --> 0:23:15.480
<v Speaker 1>this hearing. It's not going to be the judge from

0:23:15.480 --> 0:23:19.439
<v Speaker 1>twenty twenty two. There's new prosecutors on this case, not

0:23:19.520 --> 0:23:22.879
<v Speaker 1>the same ones from twenty twenty two, and there's a

0:23:22.960 --> 0:23:27.919
<v Speaker 1>decent chance that with the new players involved and a

0:23:28.000 --> 0:23:30.720
<v Speaker 1>new judge, this judge could say, you know what, I'm

0:23:30.760 --> 0:23:34.439
<v Speaker 1>not going to overturn the conviction. We're going to have

0:23:34.480 --> 0:23:36.760
<v Speaker 1>a new trial, and we're going to go back to

0:23:36.840 --> 0:23:39.320
<v Speaker 1>square one, back where we were in two thousand, and

0:23:39.400 --> 0:23:42.040
<v Speaker 1>have a new trial on this whole thing. I agree,

0:23:42.040 --> 0:23:44.920
<v Speaker 1>it's a remote possibility, but it's a possibility.

0:23:45.520 --> 0:23:49.119
<v Speaker 2>And it's really hard to try a murder case twenty

0:23:49.160 --> 0:23:51.120
<v Speaker 2>five years later, very.

0:23:51.080 --> 0:23:57.320
<v Speaker 1>Very difficult, especially given such the high profile, incredibly high

0:23:57.320 --> 0:24:01.080
<v Speaker 1>profile nature of this case and all the interviews and

0:24:01.119 --> 0:24:04.760
<v Speaker 1>the podcasts and all of the statements made by some

0:24:04.800 --> 0:24:09.280
<v Speaker 1>of the key witnesses over the years, and wildly inconsistent

0:24:09.400 --> 0:24:13.520
<v Speaker 1>statements and less space at the forensic evidence twenty five

0:24:13.600 --> 0:24:17.040
<v Speaker 1>years ago is far different than what it is today.

0:24:17.280 --> 0:24:20.360
<v Speaker 1>DNA and cell phone towers and all that. It would

0:24:20.400 --> 0:24:24.800
<v Speaker 1>make it really, really tough to retry this case twenty

0:24:24.840 --> 0:24:26.280
<v Speaker 1>five years later, A.

0:24:26.280 --> 0:24:29.399
<v Speaker 2>Long way to go before that decision is made. Thanks

0:24:29.400 --> 0:24:32.600
<v Speaker 2>so much, David. That's David Ring of Tailor and Ring

0:24:33.200 --> 0:24:37.160
<v Speaker 2>coming up next. Short Sellers are spooked by the Andrew

0:24:37.240 --> 0:24:41.119
<v Speaker 2>Left indictment. I'm Juan Grosso and you're listening to Bloomberg.

0:24:42.200 --> 0:24:46.560
<v Speaker 2>Short Sellers are beefing up disclaimers in their research reports

0:24:47.000 --> 0:24:50.480
<v Speaker 2>in the clearest sign yet that the criminal charges against

0:24:50.520 --> 0:24:55.560
<v Speaker 2>Andrew Left are reverberating throughout the industry. Short seller Andrew

0:24:55.640 --> 0:24:58.800
<v Speaker 2>Left securities fraud trial has been scheduled to start on

0:24:58.880 --> 0:25:03.000
<v Speaker 2>September thirtieth of twenty twenty five in federal court in

0:25:03.080 --> 0:25:07.920
<v Speaker 2>Los Angeles. Prosecutors say Left exploited his ability to move

0:25:08.000 --> 0:25:11.560
<v Speaker 2>stocks in almost two dozen companies. It's sort of a

0:25:11.600 --> 0:25:15.320
<v Speaker 2>novel case, and Bloomberg legal reporter Eric Larson has looked

0:25:15.359 --> 0:25:19.400
<v Speaker 2>into it. Were the criminal charges against Andrew Left sort

0:25:19.400 --> 0:25:23.160
<v Speaker 2>of years in the making, you know, explain what happened there.

0:25:23.440 --> 0:25:27.240
<v Speaker 4>So this investigation by the SEC and the DOJ had

0:25:27.240 --> 0:25:30.560
<v Speaker 4>been going on for a few years. And Andrew Lasty's

0:25:30.600 --> 0:25:33.600
<v Speaker 4>on a prominent short cellar. He's well known in the industry,

0:25:33.680 --> 0:25:35.800
<v Speaker 4>and it was known that, you know, he was one

0:25:35.800 --> 0:25:39.600
<v Speaker 4>of the people who was perhaps concerned. But the investigations

0:25:39.600 --> 0:25:41.760
<v Speaker 4>sort of dragged on for a little while without anything happening,

0:25:41.760 --> 0:25:43.840
<v Speaker 4>so I think some people thought it was over, and

0:25:43.880 --> 0:25:46.159
<v Speaker 4>then you know, in July, out of nowhere came this

0:25:46.440 --> 0:25:50.680
<v Speaker 4>SEC civil complaints and then a DOJ criminal charges for

0:25:50.840 --> 0:25:53.639
<v Speaker 4>security spraud. So this was sort of the culmination of

0:25:53.680 --> 0:25:56.600
<v Speaker 4>this investigation into the industry.

0:25:56.960 --> 0:26:00.200
<v Speaker 2>So what exactly is he accused of doing.

0:26:00.560 --> 0:26:04.159
<v Speaker 4>So it's a securities broad case and it's a little unusual.

0:26:04.400 --> 0:26:08.399
<v Speaker 4>Someone called it a landmark case. And because it's alleging

0:26:08.480 --> 0:26:13.040
<v Speaker 4>securities fraud without pointing to specific victims or anything like that.

0:26:13.480 --> 0:26:19.959
<v Speaker 4>So the indictment accuses Andrew Left of misleading investors by

0:26:20.280 --> 0:26:24.679
<v Speaker 4>issuing his research reports alleging, you know, that a company

0:26:24.840 --> 0:26:27.919
<v Speaker 4>was overvalued by the market, in the hopes that his

0:26:28.080 --> 0:26:31.639
<v Speaker 4>reports and his tweets about his reports and would have

0:26:31.760 --> 0:26:34.880
<v Speaker 4>influence and would move the market just enough for him

0:26:34.920 --> 0:26:38.120
<v Speaker 4>to make some trades, to close out his short positions

0:26:38.200 --> 0:26:40.760
<v Speaker 4>or his long positions in some cases, and to make

0:26:40.800 --> 0:26:44.919
<v Speaker 4>a quick profit. So the DJ alleges that he was

0:26:45.240 --> 0:26:48.960
<v Speaker 4>misleading lying about his views on these companies in some

0:26:49.040 --> 0:26:51.800
<v Speaker 4>cases by putting out target prices, saying that a company

0:26:51.880 --> 0:26:54.560
<v Speaker 4>was trading for X but should be training at you

0:26:54.560 --> 0:26:58.840
<v Speaker 4>know at why, and instead of holding on to his

0:26:58.880 --> 0:27:01.720
<v Speaker 4>position to see if he was correct that the stock

0:27:01.760 --> 0:27:05.080
<v Speaker 4>would fall that low, he would sell it, sometimes within

0:27:05.119 --> 0:27:08.359
<v Speaker 4>hours or days or even minutes of putting out a

0:27:08.560 --> 0:27:11.639
<v Speaker 4>negative report about the company, long before it reached that

0:27:11.760 --> 0:27:15.560
<v Speaker 4>target price, for example. And so the DJ is saying

0:27:15.560 --> 0:27:18.080
<v Speaker 4>that this was evidence of him trying to manipulate the

0:27:18.119 --> 0:27:22.120
<v Speaker 4>market by misleading investors and trying to nudge stocks up

0:27:22.160 --> 0:27:23.600
<v Speaker 4>or down in such a way that he could make

0:27:23.640 --> 0:27:27.520
<v Speaker 4>a quick buck, making between sixteen and twenty million dollars

0:27:27.520 --> 0:27:31.600
<v Speaker 4>in illicit profits over several years of doing this. So

0:27:31.640 --> 0:27:34.919
<v Speaker 4>it's a very unusual case different they're not saying that

0:27:35.000 --> 0:27:39.920
<v Speaker 4>specific investors and specific companies were defrauded of specific amounts

0:27:39.920 --> 0:27:43.680
<v Speaker 4>of money. They're just saying that he manipulated the stocks

0:27:43.720 --> 0:27:49.080
<v Speaker 4>in about fifteen companies, big companies like Tesla American Airlines, Twitter,

0:27:49.560 --> 0:27:51.679
<v Speaker 4>Facebook back when they were known as the Twitter and

0:27:51.720 --> 0:27:55.080
<v Speaker 4>Facebook by putting out negative reports and then making a

0:27:55.119 --> 0:27:56.120
<v Speaker 4>quick profit when the.

0:27:56.040 --> 0:28:02.240
<v Speaker 2>Stocks moved, and this industry general operates in gray areas.

0:28:03.000 --> 0:28:05.919
<v Speaker 4>The way that short sellers I interviewed for the story

0:28:06.440 --> 0:28:09.560
<v Speaker 4>described it is that they thought that there was a

0:28:09.560 --> 0:28:12.040
<v Speaker 4>certain rule books that they were playing under that they

0:28:12.119 --> 0:28:15.440
<v Speaker 4>understood that as long as they put out research reports

0:28:15.440 --> 0:28:19.280
<v Speaker 4>with accurate information and it was clear that they stood

0:28:19.320 --> 0:28:22.560
<v Speaker 4>the benefit from their own trading, that that was sufficient.

0:28:22.880 --> 0:28:26.080
<v Speaker 4>So now I think there's this question about whether or

0:28:26.119 --> 0:28:30.640
<v Speaker 4>not some activities in the short selling industry are okay,

0:28:30.720 --> 0:28:33.360
<v Speaker 4>or whether or not other companies or researchers could be

0:28:33.720 --> 0:28:35.439
<v Speaker 4>in the wrong. You know, a lot of it depends

0:28:35.480 --> 0:28:37.600
<v Speaker 4>on how this case goes, if it goes to trial,

0:28:37.640 --> 0:28:40.840
<v Speaker 4>what a cury decides. So the question that kind of

0:28:40.840 --> 0:28:44.720
<v Speaker 4>boils down to, you know, today, can a short seller

0:28:45.040 --> 0:28:48.240
<v Speaker 4>put out a report that is damning about a company

0:28:48.760 --> 0:28:50.760
<v Speaker 4>in such a way that it nudges the stock down

0:28:50.880 --> 0:28:54.160
<v Speaker 4>and specifically tries to make a profit by trading, you know,

0:28:54.160 --> 0:28:57.160
<v Speaker 4>because short seller is the profit when a stock goes down.

0:28:57.280 --> 0:28:59.400
<v Speaker 4>So if they put out a report that's negative of

0:28:59.440 --> 0:29:01.320
<v Speaker 4>that a company, the stock goes down a bit and

0:29:01.360 --> 0:29:03.840
<v Speaker 4>they trade they can make the money on that. So

0:29:04.080 --> 0:29:08.080
<v Speaker 4>the case put out some clarity around that kind of behavior,

0:29:08.560 --> 0:29:10.600
<v Speaker 4>and I should add that to Andrew left case. So

0:29:10.880 --> 0:29:13.200
<v Speaker 4>it goes a bit further than just saying he did that.

0:29:13.200 --> 0:29:16.360
<v Speaker 4>That invitment is filled with what the DLJA that describes

0:29:16.400 --> 0:29:22.280
<v Speaker 4>with evidence of less specifically misleading the public about his

0:29:22.440 --> 0:29:26.720
<v Speaker 4>trading intentions, So saying I'm going to hold this short

0:29:26.760 --> 0:29:29.120
<v Speaker 4>on this company until it reaches zero, for example, but

0:29:29.160 --> 0:29:32.960
<v Speaker 4>then not actually doing that, and also allegedly lying about

0:29:32.960 --> 0:29:36.040
<v Speaker 4>his coordination with one or two hedge funds that he

0:29:36.640 --> 0:29:39.640
<v Speaker 4>was allegedly secretly working with on the side to carry

0:29:39.680 --> 0:29:43.200
<v Speaker 4>out additional trades on his behalf, coordinating those trades around

0:29:43.200 --> 0:29:45.920
<v Speaker 4>his reports to again make some of this profits. So

0:29:46.040 --> 0:29:48.880
<v Speaker 4>it's not just as straightforward as saying whether the type

0:29:48.880 --> 0:29:51.520
<v Speaker 4>of trading is long or not. A lot of this

0:29:51.680 --> 0:29:55.760
<v Speaker 4>conduct is more specific just to Andrew Left, But that

0:29:55.800 --> 0:29:58.440
<v Speaker 4>doesn't mean that it isn't spooking the industry, and a

0:29:58.440 --> 0:30:01.200
<v Speaker 4>lot of short sellers are concerned that the case could

0:30:01.200 --> 0:30:03.520
<v Speaker 4>have a chilling effect on some of their profitable types

0:30:03.520 --> 0:30:04.600
<v Speaker 4>of trades that they do.

0:30:05.080 --> 0:30:09.960
<v Speaker 2>Eric, his lawyer, Left's lawyer said that his predictions about

0:30:10.040 --> 0:30:13.760
<v Speaker 2>companies were accurate. Does the government disagree with that.

0:30:14.560 --> 0:30:17.240
<v Speaker 4>There are a lot of cases where his predictions about

0:30:17.240 --> 0:30:21.600
<v Speaker 4>companies were accurate, and the government doesn't really specifically allege otherwise.

0:30:21.600 --> 0:30:25.160
<v Speaker 4>And that's another interesting angle to this case here. Obviously,

0:30:25.200 --> 0:30:28.680
<v Speaker 4>the prosecutors are aware of it, and I believe that

0:30:28.760 --> 0:30:32.560
<v Speaker 4>he broke the law anyway in his efforts to allegedly

0:30:32.600 --> 0:30:36.600
<v Speaker 4>manipulate the markets and investors. And it seems that their

0:30:36.680 --> 0:30:39.400
<v Speaker 4>reasoning is that even though he might have been correct

0:30:39.680 --> 0:30:43.520
<v Speaker 4>that a company was heading down for various reasons, that

0:30:43.640 --> 0:30:47.160
<v Speaker 4>his intentions, you know, with putting out his report was

0:30:47.200 --> 0:30:50.160
<v Speaker 4>to try to somehow capture a profit by misleading people

0:30:50.240 --> 0:30:52.920
<v Speaker 4>into helping him move the market down. So it is

0:30:53.040 --> 0:30:55.760
<v Speaker 4>very complicated. I'm not going to pretend to totally understand

0:30:55.760 --> 0:30:58.120
<v Speaker 4>it one hundreds, but it is going to be I

0:30:58.160 --> 0:31:01.720
<v Speaker 4>think that a complicated casey if it goes to a jury,

0:31:02.120 --> 0:31:04.440
<v Speaker 4>and a lot of the short sellers they talked to

0:31:04.440 --> 0:31:06.280
<v Speaker 4>you made that exact point that you made. He was

0:31:06.360 --> 0:31:08.360
<v Speaker 4>right a lot of the time, but you know, some

0:31:08.560 --> 0:31:12.200
<v Speaker 4>of other short sellers prominent short sellers were critical of

0:31:12.520 --> 0:31:15.440
<v Speaker 4>Andrew Left as well. So it's not like there's a

0:31:15.600 --> 0:31:19.680
<v Speaker 4>uniform belief that this case was brought incorrectly. There are

0:31:19.680 --> 0:31:22.360
<v Speaker 4>some short sellers who don't really engage in the type

0:31:22.360 --> 0:31:24.960
<v Speaker 4>of trading that Andrew Left does who thinks that the

0:31:25.000 --> 0:31:26.200
<v Speaker 4>case has some merit.

0:31:26.440 --> 0:31:29.480
<v Speaker 2>Because I can see if the government would go after you,

0:31:29.720 --> 0:31:32.880
<v Speaker 2>even if your predictions were correct. I could see why

0:31:33.280 --> 0:31:37.000
<v Speaker 2>some short sellers would be spooked by this because where's.

0:31:36.760 --> 0:31:39.640
<v Speaker 4>The line exactly? And I think that that's why we

0:31:39.720 --> 0:31:44.880
<v Speaker 4>saw recently two research firms, Hindenberg Research, Carry's del Capital.

0:31:45.000 --> 0:31:48.800
<v Speaker 4>They both recently put out reports, short reports about companies

0:31:48.840 --> 0:31:51.920
<v Speaker 4>that help drive some stock down. As they do, that's

0:31:51.920 --> 0:31:54.720
<v Speaker 4>the normal force of business. And they've always had, like

0:31:54.800 --> 0:31:58.720
<v Speaker 4>all short sellers, including Andrew Left, they have detailed disclaimers,

0:31:58.880 --> 0:32:01.920
<v Speaker 4>you know, telling the public, you know, their opinions, various

0:32:01.960 --> 0:32:05.880
<v Speaker 4>legal assurances that they understand that they're not financial advisors

0:32:05.880 --> 0:32:09.040
<v Speaker 4>for everyone and they could profit if the stock goes down,

0:32:09.080 --> 0:32:12.440
<v Speaker 4>and that sort of thing. But these two outfits, Pinnenberg

0:32:12.480 --> 0:32:16.120
<v Speaker 4>and Carry's Ville recently changed their disclaimers, and Carry's bill

0:32:16.320 --> 0:32:19.400
<v Speaker 4>Capital in particular kind of four page disclaimer on the

0:32:19.480 --> 0:32:24.400
<v Speaker 4>last report specifically ripped apart. This case against Andrew Left

0:32:24.600 --> 0:32:28.000
<v Speaker 4>included a little bit of even like starcasm and humor

0:32:28.040 --> 0:32:32.200
<v Speaker 4>and sort of picking at the allegations and saying, yes,

0:32:32.440 --> 0:32:35.640
<v Speaker 4>let me just be very clear, we might make trade

0:32:35.760 --> 0:32:37.959
<v Speaker 4>after we put out a report to make a profit,

0:32:38.120 --> 0:32:40.479
<v Speaker 4>and you should just assume that's what we're going to do.

0:32:40.720 --> 0:32:43.480
<v Speaker 4>So you can see that there's already been some impacts

0:32:43.520 --> 0:32:46.240
<v Speaker 4>on the industry. But yeah, a lot of this, like

0:32:46.280 --> 0:32:48.200
<v Speaker 4>I said, it's really just going to hinge on where

0:32:48.240 --> 0:32:51.680
<v Speaker 4>this case goes. If the Justice Department has brought a

0:32:51.720 --> 0:32:54.560
<v Speaker 4>good case here and is on point, or if they've

0:32:54.640 --> 0:32:57.880
<v Speaker 4>sort of overstepped and didn't quite understand how the industry worked.

0:32:58.280 --> 0:33:01.080
<v Speaker 4>As Andrew Left's lawyer and some other short sellers told me,

0:33:01.680 --> 0:33:05.720
<v Speaker 4>that's their opinion that the DJ doesn't really understand how

0:33:05.720 --> 0:33:08.440
<v Speaker 4>the industry works, and that's what's brought about this case.

0:33:08.800 --> 0:33:13.120
<v Speaker 2>Well. Also, as you're right, one of less defenses are

0:33:13.160 --> 0:33:16.040
<v Speaker 2>his own disclaimers that he posted. His lawyer said he

0:33:16.080 --> 0:33:18.440
<v Speaker 2>posted a disclaimer that saying that no one should make

0:33:18.480 --> 0:33:21.200
<v Speaker 2>assumptions about his trading. So I don't know that a

0:33:21.240 --> 0:33:22.640
<v Speaker 2>disclaimer is going to do the trick.

0:33:23.560 --> 0:33:25.280
<v Speaker 4>Yeah, I mean, that's clearly going to be a big

0:33:25.320 --> 0:33:28.320
<v Speaker 4>part of the defense. But I think in probably a

0:33:28.320 --> 0:33:31.480
<v Speaker 4>lot of cases, different types of cases, you know, disclaimers

0:33:31.520 --> 0:33:35.240
<v Speaker 4>a different sorts come up as defenses, and it really

0:33:35.320 --> 0:33:37.160
<v Speaker 4>is going to be up to the jury to decide

0:33:37.200 --> 0:33:41.320
<v Speaker 4>whether or not everything is all fine and dandy because

0:33:41.480 --> 0:33:44.560
<v Speaker 4>of that disclaimer. I think that's far from certain.

0:33:45.440 --> 0:33:48.240
<v Speaker 2>And so what happens next in this case, I think.

0:33:48.080 --> 0:33:51.600
<v Speaker 4>We can expect to see Andrew left the dismissal of

0:33:51.640 --> 0:33:54.920
<v Speaker 4>the indictment at some point. No deadlines that I'm aware

0:33:54.920 --> 0:33:55.800
<v Speaker 4>of said on that yet.

0:33:56.360 --> 0:34:00.600
<v Speaker 2>And while I have you, you're always following the Trump cases.

0:34:01.000 --> 0:34:04.000
<v Speaker 2>He tried once again to move the hush money case

0:34:04.680 --> 0:34:07.840
<v Speaker 2>after the verdict and before the sentencing, he tried to

0:34:07.880 --> 0:34:10.759
<v Speaker 2>move it to federal court. What was his reasoning.

0:34:11.400 --> 0:34:16.520
<v Speaker 4>His reasoning was the July landmark US Supreme Court decision

0:34:16.520 --> 0:34:21.400
<v Speaker 4>on presidential immunity finding that former presidents have some immunity

0:34:21.440 --> 0:34:25.280
<v Speaker 4>from criminal charges for conduct related to their official duties

0:34:25.280 --> 0:34:28.840
<v Speaker 4>in office. And that was a landmark decision finding that

0:34:28.840 --> 0:34:32.360
<v Speaker 4>that type of immunity from criminal charges exist for the

0:34:32.400 --> 0:34:35.960
<v Speaker 4>first time. So that of course came out after his

0:34:36.160 --> 0:34:39.840
<v Speaker 4>conviction in the hush money case in May, so, Trump

0:34:40.000 --> 0:34:43.480
<v Speaker 4>argued that the case should be removed to federal court

0:34:43.960 --> 0:34:47.160
<v Speaker 4>because of the sort of federal questions raised around whether

0:34:47.239 --> 0:34:51.480
<v Speaker 4>or not his trial was painted by evidence or testimony

0:34:51.520 --> 0:34:54.480
<v Speaker 4>that wouldn't have been allowed under this new Supreme Court ruling.

0:34:54.520 --> 0:34:57.640
<v Speaker 4>He argued that only a federal judge should decide this.

0:34:58.560 --> 0:35:02.680
<v Speaker 4>Sister judge here in Manhattan rejected that and said that

0:35:02.760 --> 0:35:06.359
<v Speaker 4>it was not in his jurisdiction to handle a New

0:35:06.440 --> 0:35:10.680
<v Speaker 4>York state law case. Notwithstanding the argument that Trump made.

0:35:10.800 --> 0:35:13.160
<v Speaker 4>It was actually trump second time to try to move

0:35:13.239 --> 0:35:16.320
<v Speaker 4>the case to to federal court. You know, he tried

0:35:16.360 --> 0:35:20.160
<v Speaker 4>that before the trial even happened, and that was shot down.

0:35:20.360 --> 0:35:23.400
<v Speaker 4>He appealed that and sort of abandoned that appeal, so

0:35:23.440 --> 0:35:26.080
<v Speaker 4>it never really went to an appeals court properly. But

0:35:26.280 --> 0:35:29.640
<v Speaker 4>that was, of course before the immunity ruling. So he

0:35:29.719 --> 0:35:32.239
<v Speaker 4>went back for a second bite at the apple. It

0:35:32.320 --> 0:35:35.560
<v Speaker 4>didn't work out, and now he is appealing again.

0:35:36.560 --> 0:35:39.560
<v Speaker 2>Explain one of the reasons why Trump wants to move

0:35:39.640 --> 0:35:41.879
<v Speaker 2>this case to federal court.

0:35:42.200 --> 0:35:46.040
<v Speaker 4>So, one potential benefit of moving this case to federal

0:35:46.080 --> 0:35:48.800
<v Speaker 4>court would be that it could get to the Supreme

0:35:48.840 --> 0:35:51.680
<v Speaker 4>Court faster. You could see him trying to overturn his

0:35:52.239 --> 0:35:56.120
<v Speaker 4>guilty verdict and then if the judge denied that, you know,

0:35:56.320 --> 0:35:59.800
<v Speaker 4>appealing to the Second Circuit and then onto the Supreme Court.

0:36:00.160 --> 0:36:03.240
<v Speaker 4>In this sort of faster track route than you might imagine.

0:36:03.520 --> 0:36:05.960
<v Speaker 4>It's had to work its way through the New York

0:36:06.000 --> 0:36:09.399
<v Speaker 4>State Court his challenge to his verdict, which by the way,

0:36:09.440 --> 0:36:12.880
<v Speaker 4>he's already appealed that verdict in state court. That's one benefit,

0:36:12.920 --> 0:36:15.360
<v Speaker 4>and other is that it simply would delay his sentencing,

0:36:15.800 --> 0:36:18.719
<v Speaker 4>which of course is set for September eighteenth. If this

0:36:18.760 --> 0:36:22.319
<v Speaker 4>had been moved to federal court, that really would have

0:36:22.360 --> 0:36:24.399
<v Speaker 4>been unlikely that that sentence thing would have been able

0:36:24.440 --> 0:36:27.399
<v Speaker 4>to go forward. And of course the election is coming up.

0:36:27.640 --> 0:36:31.759
<v Speaker 4>He has been fighting to avoid being sentenced before the

0:36:31.880 --> 0:36:35.239
<v Speaker 4>voters go to the polls. He calls that election interference.

0:36:35.680 --> 0:36:38.760
<v Speaker 2>Also, if it's a federal case and he wins the election,

0:36:39.280 --> 0:36:40.400
<v Speaker 2>he can dismiss.

0:36:40.040 --> 0:36:44.400
<v Speaker 4>It, right, he can ask the Justice Department to dismiss

0:36:44.560 --> 0:36:48.640
<v Speaker 4>a case in federal court. You know, it's all very unprecedented.

0:36:48.680 --> 0:36:51.960
<v Speaker 4>We did see this, however, happened, you might recall, and

0:36:52.120 --> 0:36:55.840
<v Speaker 4>the civil defamation lawsuits filed by Ejene Carroll that was

0:36:55.880 --> 0:36:59.120
<v Speaker 4>started in state court and he actually was able to

0:36:59.200 --> 0:37:02.880
<v Speaker 4>move it as a result of the Westball Acts. Is

0:37:02.920 --> 0:37:04.560
<v Speaker 4>something I know we talked about a lot back then,

0:37:04.680 --> 0:37:08.160
<v Speaker 4>but the idea being that if has claimed it to

0:37:08.200 --> 0:37:11.520
<v Speaker 4>be covered by that federal law had worked in federal court,

0:37:11.560 --> 0:37:13.480
<v Speaker 4>he could have had the justice part and just missed

0:37:13.480 --> 0:37:16.160
<v Speaker 4>the case that didn't end up happening, But that is

0:37:16.200 --> 0:37:18.880
<v Speaker 4>another benefit to having it in fedal report.

0:37:19.200 --> 0:37:23.560
<v Speaker 2>So many cases and so many motions. Thanks so much, Eric.

0:37:24.280 --> 0:37:27.759
<v Speaker 2>That's Bloomberg Legal reporter Eric Larson, and that's it for

0:37:27.800 --> 0:37:30.839
<v Speaker 2>this edition of the Bloomberg Law Podcast. Remember you can

0:37:30.880 --> 0:37:33.800
<v Speaker 2>always get the latest legal news by subscribing and listening

0:37:33.840 --> 0:37:37.560
<v Speaker 2>to the show on Apple Podcasts, Spotify, and at Bloomberg

0:37:37.600 --> 0:37:41.680
<v Speaker 2>dot com, slash podcast, slash Law. I'm June Grosso and

0:37:41.760 --> 0:37:43.040
<v Speaker 2>this is Bloomberg