1 00:00:03,200 --> 00:00:07,960 Speaker 1: This is Bloomberg Law with June Brussel from Bloomberg Radio. 2 00:00:11,119 --> 00:00:14,040 Speaker 1: Stephen Miller, the Trump aide known as the architect of 3 00:00:14,080 --> 00:00:18,599 Speaker 1: the former president's anti immigrant policies, is reviving as cultural 4 00:00:18,640 --> 00:00:21,480 Speaker 1: crusade as the head of a new activist legal group. 5 00:00:21,760 --> 00:00:25,919 Speaker 1: America First Legal is a conservative nonprofit with disdain for 6 00:00:25,960 --> 00:00:29,640 Speaker 1: the radical left and a wide ranging plan to challenge 7 00:00:29,680 --> 00:00:33,559 Speaker 1: the Biden administration in court. The group has already scored 8 00:00:33,640 --> 00:00:37,879 Speaker 1: some early victories, including in lawsuits accusing the federal government 9 00:00:37,960 --> 00:00:41,800 Speaker 1: of discriminating against white business owners. Joining me is Bloomberg 10 00:00:41,840 --> 00:00:45,919 Speaker 1: Legal reporter Eric Larson tell us who Stephen Miller is 11 00:00:46,000 --> 00:00:49,280 Speaker 1: for those who may not know so. Stephen Miller is 12 00:00:49,320 --> 00:00:53,600 Speaker 1: a conservative political operative who served as a senior White 13 00:00:53,600 --> 00:00:56,680 Speaker 1: House aide to Donald Trump UM and also was a 14 00:00:56,760 --> 00:01:00,720 Speaker 1: speechwriter for the president's UM. He is known as the 15 00:01:00,800 --> 00:01:03,560 Speaker 1: sort of the architect of some of Trump's most anti 16 00:01:03,680 --> 00:01:07,759 Speaker 1: immigrant policies, things like the Muslim ban and the family 17 00:01:07,800 --> 00:01:11,160 Speaker 1: separation policies and some of those really divisive policies that 18 00:01:11,440 --> 00:01:14,840 Speaker 1: really riled up a lot of Democrats. Did he start 19 00:01:15,040 --> 00:01:19,520 Speaker 1: America First Legal? He did. It was just started in 20 00:01:19,560 --> 00:01:24,959 Speaker 1: April UM. He did so with the blessing of Donald Trump, 21 00:01:24,959 --> 00:01:28,440 Speaker 1: who issued a press release praising his effort and the 22 00:01:28,480 --> 00:01:33,640 Speaker 1: opening of America First Legal. So it is he's leading it, uh, 23 00:01:33,880 --> 00:01:38,800 Speaker 1: and he's doing so with several other former Trump administration 24 00:01:39,200 --> 00:01:41,720 Speaker 1: officials who have joined him in the effort, including a 25 00:01:41,800 --> 00:01:46,319 Speaker 1: former acting US Attorney General Whittaker, and some other folks. 26 00:01:47,080 --> 00:01:49,960 Speaker 1: He's not a lawyer, right, No, he's not a lawyer, 27 00:01:50,200 --> 00:01:53,560 Speaker 1: but he he has a former Justice Department lawyer during 28 00:01:53,560 --> 00:01:57,040 Speaker 1: the Trump administration, Gene Hamilton's who was known for working 29 00:01:57,040 --> 00:02:01,160 Speaker 1: on a lot of immigration UM policies under Trump. UM 30 00:02:01,240 --> 00:02:04,080 Speaker 1: is one of the lead lawyers at America First Legal. 31 00:02:04,840 --> 00:02:09,080 Speaker 1: So they are established right wing legal advocacy groups such 32 00:02:09,120 --> 00:02:14,840 Speaker 1: as Alliance Defending Freedom and Judicial Watch. So why another group, Well, 33 00:02:15,000 --> 00:02:17,680 Speaker 1: that's a good question. Some folks that I spoke with 34 00:02:18,040 --> 00:02:22,000 Speaker 1: in the conservative nonprofit group there said that even though 35 00:02:22,040 --> 00:02:24,360 Speaker 1: there are these other groups that they still feel like 36 00:02:24,400 --> 00:02:28,240 Speaker 1: they're outguns by UM left leaning organizations like the American 37 00:02:28,280 --> 00:02:31,160 Speaker 1: Civil Liberties Union. You know, they want to see something 38 00:02:31,160 --> 00:02:34,200 Speaker 1: that rises to that level. Even though America First Legal 39 00:02:34,200 --> 00:02:37,120 Speaker 1: has just started earlier this year. That's how they kind 40 00:02:37,120 --> 00:02:40,400 Speaker 1: of already wanted to be seen as really going after 41 00:02:40,440 --> 00:02:44,399 Speaker 1: the Biden administration on a range of policies the same 42 00:02:44,440 --> 00:02:46,800 Speaker 1: way that the A. C. L. You did um during 43 00:02:46,840 --> 00:02:50,359 Speaker 1: the Trump administration. So what are some of the aims 44 00:02:50,560 --> 00:02:54,040 Speaker 1: or maybe I should say targets of the group. They're 45 00:02:54,120 --> 00:02:59,360 Speaker 1: pretty wide ranging. Started out with lawsuits against the administration 46 00:02:59,520 --> 00:03:03,120 Speaker 1: challenging racial equity programs that had been built into the 47 00:03:03,200 --> 00:03:09,000 Speaker 1: Pandemic Relief bill that had earmarked billions of dollars to 48 00:03:09,040 --> 00:03:13,560 Speaker 1: be prioritized toward miority owned restaurants in one provision and 49 00:03:13,840 --> 00:03:18,000 Speaker 1: minority owned farms and ranches in another. And he sued 50 00:03:18,040 --> 00:03:20,840 Speaker 1: filed separate lawsuits over both of those and actually one 51 00:03:20,960 --> 00:03:26,120 Speaker 1: injunctions preliminary injunctions against the administration in those cases which 52 00:03:26,160 --> 00:03:29,639 Speaker 1: are still pending. But he's also sued over the Biden 53 00:03:29,680 --> 00:03:36,080 Speaker 1: administrations returned to policies that banned discrimination against people based 54 00:03:36,080 --> 00:03:40,720 Speaker 1: on sexual orientation or gender identity in healthcare and housing 55 00:03:40,760 --> 00:03:44,360 Speaker 1: and alike. UM. And you know that's just the beginning. 56 00:03:44,400 --> 00:03:48,680 Speaker 1: There are several other aspects of the administration that he 57 00:03:48,760 --> 00:03:51,000 Speaker 1: seems to be eyeing, based on the press releases they've 58 00:03:51,000 --> 00:03:53,400 Speaker 1: been putting out and the Freedom of Information Act requests 59 00:03:53,400 --> 00:03:56,760 Speaker 1: that they've been filing and highlighting on their website. You 60 00:03:56,760 --> 00:03:59,760 Speaker 1: said they had scored victories. These are cases where they 61 00:03:59,760 --> 00:04:02,880 Speaker 1: can pick the judge or at least the courthouse that 62 00:04:02,920 --> 00:04:06,680 Speaker 1: will be hearing the case. Yes, they've been filing suits 63 00:04:06,760 --> 00:04:10,640 Speaker 1: in Texas where they can, but also UM in Washington 64 00:04:10,760 --> 00:04:14,200 Speaker 1: d C. Federal Court UM. In the two cases where 65 00:04:14,200 --> 00:04:17,240 Speaker 1: they did get these preliminary injunctions injunctions, granted those were 66 00:04:17,279 --> 00:04:20,920 Speaker 1: in Texas UM. It was a Republican appointed judge who 67 00:04:21,279 --> 00:04:24,320 Speaker 1: did that, But not all of their cases are before 68 00:04:24,720 --> 00:04:27,760 Speaker 1: UM Republican appointed judges, but so far they've had pretty 69 00:04:27,760 --> 00:04:30,440 Speaker 1: good luck with those. In the suits they have filed 70 00:04:30,480 --> 00:04:34,360 Speaker 1: in Texas. Another case where they didn't get an injunction UM, 71 00:04:34,440 --> 00:04:38,640 Speaker 1: but they did get a preliminary ruling UM where the 72 00:04:38,720 --> 00:04:43,520 Speaker 1: judge you know, seemed to praise or side with what 73 00:04:43,560 --> 00:04:47,919 Speaker 1: they were saying about the Biden administration's handling of undocumented 74 00:04:48,040 --> 00:04:51,160 Speaker 1: migrant children at the border. UM. That was another one 75 00:04:51,160 --> 00:04:55,400 Speaker 1: of the first lawsuits that a fl filed, accusing the 76 00:04:55,560 --> 00:05:01,440 Speaker 1: Biden administration of allowing undocumented migrant children in housing in 77 00:05:01,480 --> 00:05:04,719 Speaker 1: the US even though they might have COVID nineteen was 78 00:05:04,800 --> 00:05:07,880 Speaker 1: his argument that it was a health violation and the 79 00:05:07,960 --> 00:05:10,960 Speaker 1: judge in that case, UM said that that, uh, he 80 00:05:11,040 --> 00:05:14,720 Speaker 1: agreed essentially with that case. In that case, did they 81 00:05:14,760 --> 00:05:18,880 Speaker 1: do it in conjunction with the Texas Attorney General? They did, 82 00:05:19,080 --> 00:05:22,640 Speaker 1: And the Texas Attorney General Ken Paxton, a very outspoken 83 00:05:22,640 --> 00:05:25,799 Speaker 1: Republican of course, who has challenged Biden on a range 84 00:05:25,800 --> 00:05:28,039 Speaker 1: of issues. Um, and it is very critical of the 85 00:05:28,040 --> 00:05:32,120 Speaker 1: administration on his own right, Um, you know, filed that lawsuit. 86 00:05:32,120 --> 00:05:35,919 Speaker 1: It's challenges provisions of the Migrant Protection Protocol, which was 87 00:05:35,920 --> 00:05:39,040 Speaker 1: the Trump policies that Biden tried to walk away from 88 00:05:39,080 --> 00:05:42,200 Speaker 1: and is having trouble doing so. And so a f l. 89 00:05:42,279 --> 00:05:44,440 Speaker 1: One of their first clients was the state of Texas, 90 00:05:44,440 --> 00:05:46,720 Speaker 1: which in a way isn't too surprising because they're extremely 91 00:05:46,760 --> 00:05:52,279 Speaker 1: ideologically aligned. Eric tell us more about Miller's suit challenging 92 00:05:52,360 --> 00:05:57,240 Speaker 1: pandemic aid earmarked for minority owned farms. America First Legal 93 00:05:57,279 --> 00:06:01,200 Speaker 1: filed a couple of lawsuits over provideds of built the 94 00:06:01,240 --> 00:06:04,080 Speaker 1: massive stimulus built passed by Congress and included a few 95 00:06:04,720 --> 00:06:08,280 Speaker 1: equity programs in it that tried to essentially right some 96 00:06:08,520 --> 00:06:12,320 Speaker 1: wrongs that have been done previously by prioritizing some money 97 00:06:12,320 --> 00:06:15,720 Speaker 1: for minority owned restaurants as well as minority owned farms 98 00:06:15,839 --> 00:06:20,119 Speaker 1: and branches. And in these two lawsuits, Stephen Miller's group 99 00:06:20,160 --> 00:06:24,880 Speaker 1: claims that it's discrimination, racial discrimination against white people that 100 00:06:24,960 --> 00:06:27,440 Speaker 1: he says is banned by the Civil Rights Act, which 101 00:06:27,560 --> 00:06:30,080 Speaker 1: is kind of interesting that he's you know, the complaint 102 00:06:30,160 --> 00:06:34,560 Speaker 1: itself was actually fairly short, but it included some language 103 00:06:34,600 --> 00:06:37,840 Speaker 1: and references that you would normally see in a suit 104 00:06:38,000 --> 00:06:41,440 Speaker 1: alleging racial discrimination against racial minorities. So it's kind of 105 00:06:41,480 --> 00:06:44,960 Speaker 1: turning it around and using it sort of against these 106 00:06:45,000 --> 00:06:48,920 Speaker 1: minorities interests, UM, which really wasn't lost on the people, uh, 107 00:06:49,040 --> 00:06:51,760 Speaker 1: some of the people who I interviewed for the story. UM. 108 00:06:51,800 --> 00:06:55,159 Speaker 1: I interviewed the John Boyd is the president and founder 109 00:06:55,200 --> 00:06:58,440 Speaker 1: of the National Black Farmers Association. He filed a motion 110 00:06:58,520 --> 00:07:01,080 Speaker 1: to intervene in one of those cases. Than he he 111 00:07:01,360 --> 00:07:03,960 Speaker 1: won that permission, and he says that it's just flat 112 00:07:04,000 --> 00:07:07,240 Speaker 1: out discrimination, that that the real discrimination here is with 113 00:07:07,240 --> 00:07:11,520 Speaker 1: Stephen Miller's lawsuit. UM, that they're trying to pretend that 114 00:07:11,560 --> 00:07:14,520 Speaker 1: there was never any discrimination in the past and therefore 115 00:07:14,600 --> 00:07:16,600 Speaker 1: there should be no measures taken now to fix it 116 00:07:16,640 --> 00:07:20,280 Speaker 1: in the present. Did a f L respond to this, 117 00:07:20,320 --> 00:07:23,320 Speaker 1: I see that their website says it's committed to fighting 118 00:07:23,400 --> 00:07:27,320 Speaker 1: for all Americans, regardless of race, color, religion, or creed. 119 00:07:27,920 --> 00:07:31,000 Speaker 1: That's correct. I included that in my story because unfortunately 120 00:07:31,240 --> 00:07:35,080 Speaker 1: they didn't respond to repeated requests for comments. I reached 121 00:07:35,080 --> 00:07:37,800 Speaker 1: out to them numerous times by phone and email, also 122 00:07:37,840 --> 00:07:40,720 Speaker 1: to their PR firm, and they just didn't respond. Although 123 00:07:40,720 --> 00:07:43,880 Speaker 1: they do make regular appearances on on Fox News and 124 00:07:43,920 --> 00:07:46,960 Speaker 1: news Max and O A n UM where they spread 125 00:07:47,000 --> 00:07:50,560 Speaker 1: this message, and of course it's we have to remember 126 00:07:50,600 --> 00:07:53,840 Speaker 1: that this is a nonprofit and they're actively raising money 127 00:07:53,840 --> 00:07:58,520 Speaker 1: at all times. Do most of their cases focus on immigration, 128 00:07:59,360 --> 00:08:02,760 Speaker 1: you know, I really don't think so. I think that that, UM, 129 00:08:02,800 --> 00:08:06,280 Speaker 1: you know, is an obvious interest of Stephen Miller, and 130 00:08:06,320 --> 00:08:09,640 Speaker 1: they do have one or two cases related to that, 131 00:08:10,120 --> 00:08:13,840 Speaker 1: But really they're looking at the whole universe of conservative 132 00:08:14,000 --> 00:08:19,920 Speaker 1: concerns UM, you know, gender identity, UM, LGBT rights, even 133 00:08:19,960 --> 00:08:23,280 Speaker 1: critical race theory, UM. Some of the Freedom of Information 134 00:08:23,320 --> 00:08:26,320 Speaker 1: Act requests that they've filed or demanding, you know, information 135 00:08:26,400 --> 00:08:30,920 Speaker 1: from the Biden administration about why they stopped investigating the 136 00:08:30,960 --> 00:08:34,720 Speaker 1: source of COVID nineteen UM. You know, they even sued 137 00:08:34,760 --> 00:08:40,920 Speaker 1: Biden for forcing Russ Vott off of that naval board UM, 138 00:08:40,960 --> 00:08:43,319 Speaker 1: and he's a he's a member of af L, one 139 00:08:43,320 --> 00:08:46,400 Speaker 1: of the directors. Uh. So there's really just a really 140 00:08:46,440 --> 00:08:50,240 Speaker 1: wide range of UM legal issues that they're looking at here, 141 00:08:50,240 --> 00:08:53,120 Speaker 1: and it's not just immigration. Do we know how much 142 00:08:53,120 --> 00:08:56,240 Speaker 1: funding they have and who is funding them? We don't, 143 00:08:56,280 --> 00:08:58,280 Speaker 1: you know. I would have definitely loved to have asked 144 00:08:58,320 --> 00:09:02,600 Speaker 1: them that question to find out UM, but it's too early. 145 00:09:02,640 --> 00:09:05,800 Speaker 1: It's they're too new to have any UM filings, so 146 00:09:05,920 --> 00:09:08,520 Speaker 1: we really just haven't have no way of knowing. Unfortunately, 147 00:09:08,880 --> 00:09:11,320 Speaker 1: because we're a new organization, they seem to have a 148 00:09:11,360 --> 00:09:15,000 Speaker 1: lot of litigation going on, right. I mean, it's you know, 149 00:09:15,320 --> 00:09:17,640 Speaker 1: anything is possible. Of course, we know one person who 150 00:09:17,679 --> 00:09:21,839 Speaker 1: has plenty of money, that's Donald Trump. They always could 151 00:09:21,840 --> 00:09:24,560 Speaker 1: have gotten some from from him, but that's just speculation. 152 00:09:25,559 --> 00:09:27,880 Speaker 1: But they are doing a lot of real work and 153 00:09:27,920 --> 00:09:31,600 Speaker 1: that does cost a lot of money. UM, so one 154 00:09:31,600 --> 00:09:33,520 Speaker 1: can assume that they at least have something that they 155 00:09:33,520 --> 00:09:37,480 Speaker 1: started out with. Is Trump a visible supporter of the group, 156 00:09:37,880 --> 00:09:41,000 Speaker 1: He is UM only in that Uh. The very first 157 00:09:41,000 --> 00:09:44,680 Speaker 1: press release that went out in April, UM quoted President 158 00:09:44,840 --> 00:09:49,960 Speaker 1: Trump praising Stephen Miller by name and saying that the 159 00:09:50,120 --> 00:09:54,320 Speaker 1: left was out funding us in courts us being the right, 160 00:09:54,640 --> 00:09:57,199 Speaker 1: and that we needed something like a fl to counter 161 00:09:57,280 --> 00:09:59,960 Speaker 1: that movement and to to take the Biden administration to court. 162 00:10:00,200 --> 00:10:02,320 Speaker 1: Trump spelled that all out and said that Stephen Miller 163 00:10:02,400 --> 00:10:04,880 Speaker 1: was the guy to do it. You write that prevailing 164 00:10:04,920 --> 00:10:09,320 Speaker 1: in court might not be the primary reason for the group, Yeah, 165 00:10:09,400 --> 00:10:11,839 Speaker 1: that was That was one theory from someone I spoke with. 166 00:10:12,200 --> 00:10:14,640 Speaker 1: You know, they see the names involved, they see there's 167 00:10:14,720 --> 00:10:17,439 Speaker 1: quite a bit of evidence of people in Trump's orbit. 168 00:10:17,880 --> 00:10:20,520 Speaker 1: It's sort of now that he's out of office, finding 169 00:10:20,520 --> 00:10:23,240 Speaker 1: ways to sort of cash in using his name and 170 00:10:23,240 --> 00:10:27,040 Speaker 1: tapping into his huge support Um. You know, he has 171 00:10:27,240 --> 00:10:29,559 Speaker 1: millions of supporters all around the country, and a lot 172 00:10:29,600 --> 00:10:31,640 Speaker 1: of them are very angry, and a lot of them 173 00:10:31,640 --> 00:10:33,840 Speaker 1: are really despised the left. And if you say and 174 00:10:34,040 --> 00:10:36,000 Speaker 1: the right things, do the right things, you can really 175 00:10:36,360 --> 00:10:39,640 Speaker 1: capture their attention and get them to open their wallets. 176 00:10:40,040 --> 00:10:42,560 Speaker 1: So there's some you know, some cynicism around that. Of course, 177 00:10:43,000 --> 00:10:44,880 Speaker 1: they probably would say the same thing about people on 178 00:10:44,920 --> 00:10:48,120 Speaker 1: the left and the A C. L U. Do you 179 00:10:48,160 --> 00:10:52,439 Speaker 1: get any sense that what they're doing, the cases that 180 00:10:52,679 --> 00:10:57,760 Speaker 1: they're bringing are any different from those of Alliance Defending 181 00:10:57,840 --> 00:11:01,439 Speaker 1: Freedom or Judicial Watch. I would say that they seem 182 00:11:01,520 --> 00:11:03,200 Speaker 1: to be signaling that they're going to be a lot 183 00:11:03,240 --> 00:11:06,280 Speaker 1: more active than those groups, and that they're going to 184 00:11:06,320 --> 00:11:10,120 Speaker 1: be looking at a much wider range of issues, and 185 00:11:10,160 --> 00:11:13,360 Speaker 1: that they're going to be really focused on the issues 186 00:11:13,480 --> 00:11:17,640 Speaker 1: that in particular, really seem to concern the far farther 187 00:11:17,840 --> 00:11:21,200 Speaker 1: rights individuals. So whereas you might see some of those 188 00:11:21,200 --> 00:11:25,240 Speaker 1: more established groups might be focusing more on you know, 189 00:11:25,360 --> 00:11:30,320 Speaker 1: different policies than maybe aren't quite so controversial. Uh, I 190 00:11:30,320 --> 00:11:31,760 Speaker 1: don't think that's going to be a concern of a 191 00:11:31,920 --> 00:11:35,880 Speaker 1: f L. So did anyone you spoke to think that 192 00:11:36,640 --> 00:11:40,960 Speaker 1: this was a short term endeavor that possibly it won't 193 00:11:41,080 --> 00:11:45,120 Speaker 1: last pass when Trump will decide whether or not to run. 194 00:11:45,679 --> 00:11:47,760 Speaker 1: Someone I spoke to said that it's possible that they're 195 00:11:47,800 --> 00:11:49,920 Speaker 1: just looking for, you know, a paycheck and waiting to 196 00:11:49,960 --> 00:11:54,560 Speaker 1: see what happens in and maybe um they'll be you know, 197 00:11:54,640 --> 00:11:57,760 Speaker 1: back in power and get bigger jobs in the administration 198 00:11:57,840 --> 00:12:00,800 Speaker 1: or something like that. But even if they were able 199 00:12:00,840 --> 00:12:03,360 Speaker 1: to do that, even if Steven Miller, you know, made 200 00:12:03,360 --> 00:12:06,559 Speaker 1: a triumphant return to the White House, I wouldn't be 201 00:12:06,600 --> 00:12:09,080 Speaker 1: surprised if they found some way to keep America First Legal, 202 00:12:09,320 --> 00:12:12,959 Speaker 1: you know, still going and doing what it what it does. Um, 203 00:12:13,000 --> 00:12:15,200 Speaker 1: but right now they need a booking man and that's Biden, 204 00:12:15,280 --> 00:12:18,360 Speaker 1: and he's in office. If that changes, who knows. It 205 00:12:18,440 --> 00:12:24,800 Speaker 1: seems like their cases are anti anti abortion, anti immigrant, 206 00:12:25,440 --> 00:12:29,280 Speaker 1: anti l g B t Q, that they're fighting against 207 00:12:29,520 --> 00:12:33,760 Speaker 1: other people's rights. That's the big difference between what the 208 00:12:33,800 --> 00:12:37,480 Speaker 1: a c l YOU did and what America First Legal 209 00:12:37,760 --> 00:12:40,040 Speaker 1: is doing. Of course, the a c l U was 210 00:12:40,160 --> 00:12:44,000 Speaker 1: raising the alarm about concerns that rights would be taken away, 211 00:12:44,640 --> 00:12:47,000 Speaker 1: and in fact that was the case. That is what 212 00:12:47,040 --> 00:12:50,200 Speaker 1: the Trump administration tried to do. A f L is 213 00:12:50,240 --> 00:12:55,080 Speaker 1: focused on the concerns of really mostly you know, white people, 214 00:12:55,880 --> 00:12:59,480 Speaker 1: straight white men in particular. That seems to be their 215 00:12:59,559 --> 00:13:04,360 Speaker 1: their good Thanks Eric. That's Bloomberg Legal reporter Eric Larson. 216 00:13:06,640 --> 00:13:10,080 Speaker 1: It made headlines when Left Parness and Igor Frewman were 217 00:13:10,200 --> 00:13:14,680 Speaker 1: arrested in boarding a plane with one way tickets to Europe. 218 00:13:15,080 --> 00:13:19,360 Speaker 1: Prosecutors claimed the pair had made donations to American politicians 219 00:13:19,440 --> 00:13:23,560 Speaker 1: to advance the interests of Ukrainian officials. Now Frewman has 220 00:13:23,559 --> 00:13:27,520 Speaker 1: pleaded guilty and Parness's trial seems to have morphed into 221 00:13:27,600 --> 00:13:31,760 Speaker 1: something different altogether. The government's case has almost nothing to 222 00:13:31,800 --> 00:13:36,520 Speaker 1: do with Ukraine and instead focuses on political contributions allegedly 223 00:13:36,559 --> 00:13:39,800 Speaker 1: intended to help launch a cannabis business. Joining me is 224 00:13:39,840 --> 00:13:43,800 Speaker 1: Bloomberg Legal reporter Christian Berthelson. So Christian, tell us what 225 00:13:44,120 --> 00:13:48,120 Speaker 1: charges Partners is facing at trial. Yeah, So that's what 226 00:13:48,440 --> 00:13:51,800 Speaker 1: a strange one. You know, left Partners and his business 227 00:13:51,840 --> 00:13:56,120 Speaker 1: associating Frewman were charged two years ago. And you know, 228 00:13:56,160 --> 00:13:59,679 Speaker 1: they were involved in Rudy Giuliani's efforts to dig up 229 00:13:59,720 --> 00:14:03,120 Speaker 1: to her on Joe Biden in Ukraine. And this was 230 00:14:03,200 --> 00:14:07,160 Speaker 1: sort of a subtext to the whole first impeachment trial 231 00:14:07,240 --> 00:14:09,719 Speaker 1: of Donald Trump and the quid pro quo he was 232 00:14:09,760 --> 00:14:14,160 Speaker 1: seeking in Ukraine to get damaging information about the Bidens 233 00:14:14,200 --> 00:14:18,080 Speaker 1: prior to the election. Levin and Igor were working with 234 00:14:18,160 --> 00:14:22,360 Speaker 1: Juliani to try and facilitate that. They were actually arrested 235 00:14:22,760 --> 00:14:25,720 Speaker 1: with one way tickets to leave the country getting on 236 00:14:25,760 --> 00:14:29,600 Speaker 1: an airplane in Washington, d C. The government alleged that 237 00:14:29,680 --> 00:14:34,080 Speaker 1: they had been working for Ukrainian officials to advance their 238 00:14:34,080 --> 00:14:36,720 Speaker 1: interests in the United States and that they were played 239 00:14:36,760 --> 00:14:38,440 Speaker 1: a role in the firing of the then U s 240 00:14:38,480 --> 00:14:42,640 Speaker 1: Ambassador in Ukraine, Mariovanovitch. All of those allegations were then 241 00:14:42,840 --> 00:14:45,480 Speaker 1: sort of quietly dropped from the case about a year ago. 242 00:14:46,120 --> 00:14:51,120 Speaker 1: Mr Freman pleaded guilty. Mr Parnass just started trial yesterday, 243 00:14:51,160 --> 00:14:54,680 Speaker 1: but the charges against him now involved allegedly illegal campaign 244 00:14:54,680 --> 00:14:58,000 Speaker 1: donations he made to try and advance a cannabis business 245 00:14:58,600 --> 00:15:02,400 Speaker 1: in Nevada, California and elsewhere. So it's a very different 246 00:15:02,440 --> 00:15:05,440 Speaker 1: case than what prosecutors said it was when they charged 247 00:15:05,480 --> 00:15:08,560 Speaker 1: it two years ago. Is Ferman going to testify for 248 00:15:08,600 --> 00:15:11,960 Speaker 1: the prosecution. No, so two of the defendants in that case, 249 00:15:12,000 --> 00:15:14,840 Speaker 1: there was four defendants, two of them have pleaded guilty. 250 00:15:14,960 --> 00:15:18,080 Speaker 1: Neither one of them pleaded guilty with the cooperation agreement, 251 00:15:18,280 --> 00:15:22,520 Speaker 1: so they are not expected to become government witnesses during 252 00:15:22,520 --> 00:15:24,000 Speaker 1: the trial. Is there going to be a lot of 253 00:15:24,080 --> 00:15:28,400 Speaker 1: mention of former President Trump or Rudy Giuliani. One would 254 00:15:28,400 --> 00:15:31,280 Speaker 1: have thought that given the way the case was charged 255 00:15:31,320 --> 00:15:34,400 Speaker 1: two years ago, But no, as we get to our trial, 256 00:15:34,440 --> 00:15:36,560 Speaker 1: one of the prosecutors told the judge last week that 257 00:15:36,800 --> 00:15:39,400 Speaker 1: Mr Trump and Mr Giuliani are going to be peripheral 258 00:15:39,400 --> 00:15:42,560 Speaker 1: figures at best. Do you know why this case took 259 00:15:42,680 --> 00:15:46,560 Speaker 1: such a turn. At the prosecutors when they dropped that 260 00:15:46,600 --> 00:15:50,080 Speaker 1: allegation from the case, offered no explanation as to why 261 00:15:50,120 --> 00:15:53,400 Speaker 1: they were doing it. They said they were streamlining certain 262 00:15:53,480 --> 00:15:56,760 Speaker 1: factual assertions and they left it at that, and they 263 00:15:56,800 --> 00:16:00,800 Speaker 1: have declined to say anything beyond that. So that is 264 00:16:00,840 --> 00:16:03,600 Speaker 1: really not much of an answer, uh, and sort of 265 00:16:03,680 --> 00:16:06,360 Speaker 1: leaves it open to speculation as to why. You know, 266 00:16:06,480 --> 00:16:11,080 Speaker 1: they do have the the evidence in the campaign finance 267 00:16:11,160 --> 00:16:15,120 Speaker 1: charges and that's an easier case to bring, and potentially 268 00:16:15,280 --> 00:16:18,040 Speaker 1: what they could have done is sort of just wanted 269 00:16:18,080 --> 00:16:21,520 Speaker 1: to charge and try an easier case rather than getting 270 00:16:21,560 --> 00:16:26,000 Speaker 1: into issues that the defense could have raised about, you know, 271 00:16:26,080 --> 00:16:29,320 Speaker 1: doing something on behalf of the president and whether that 272 00:16:29,560 --> 00:16:33,320 Speaker 1: then became acceptable. I don't know. I don't think anyone 273 00:16:33,400 --> 00:16:35,680 Speaker 1: knows outside of the office why they decided to do 274 00:16:35,720 --> 00:16:40,360 Speaker 1: it that way. And what's parnesses defense. So the campaign 275 00:16:40,480 --> 00:16:45,520 Speaker 1: charges involved funds that came from a Russian investor in 276 00:16:45,560 --> 00:16:49,840 Speaker 1: the cannabis business and that were then used to donate 277 00:16:49,880 --> 00:16:54,240 Speaker 1: to certain state politicians around the country. His defense is 278 00:16:54,320 --> 00:16:58,280 Speaker 1: that there was no conspiracy to do that, and the 279 00:16:58,440 --> 00:17:01,400 Speaker 1: funds that were donated and come from the Russian businessman. 280 00:17:01,640 --> 00:17:05,920 Speaker 1: There are two defendants. Are their defenses united? Are they 281 00:17:06,080 --> 00:17:09,520 Speaker 1: working together? They're actually not working together, which has been 282 00:17:09,560 --> 00:17:13,200 Speaker 1: an interesting development and only become clear in the last 283 00:17:13,240 --> 00:17:16,240 Speaker 1: week or so that the other defendant, andre Ka Kushkin, 284 00:17:16,440 --> 00:17:19,080 Speaker 1: basically says that he was a victim of love Parnoff 285 00:17:19,400 --> 00:17:22,919 Speaker 1: and that this entire scheme with the campaign donations was 286 00:17:22,960 --> 00:17:26,680 Speaker 1: really just a scheme to get money out of Mr 287 00:17:26,760 --> 00:17:30,760 Speaker 1: Kakushion and his Russian investor. And in fact, of the 288 00:17:30,880 --> 00:17:34,600 Speaker 1: million dollars that came from Russia, a little over one 289 00:17:34,640 --> 00:17:38,439 Speaker 1: hundred thousand of it actually was donated to politicians. The 290 00:17:38,520 --> 00:17:42,320 Speaker 1: rest was diverted to other purposes. Let's turn to one 291 00:17:42,400 --> 00:17:47,040 Speaker 1: of the witnesses who will testify at the trial, Adam Laxalt, 292 00:17:47,080 --> 00:17:51,560 Speaker 1: who's running for US Senate in Nevada. I believe, so 293 00:17:51,600 --> 00:17:55,120 Speaker 1: why is he testifying at this trial? That's correct, He's 294 00:17:55,119 --> 00:17:58,640 Speaker 1: expected to testify today. He's kind of an interesting figure 295 00:17:58,840 --> 00:18:02,680 Speaker 1: because he was as attorney general and running for governor 296 00:18:02,880 --> 00:18:07,480 Speaker 1: of Nevada when he received donation from Mr Parnass and 297 00:18:07,840 --> 00:18:10,919 Speaker 1: he of course then went on to become a co 298 00:18:11,080 --> 00:18:15,679 Speaker 1: chair of Trump's reelection campaign in Nevada and fanned a 299 00:18:15,680 --> 00:18:18,800 Speaker 1: lot of the voter fraud allegations that Mr Trump was 300 00:18:18,840 --> 00:18:21,760 Speaker 1: making in an effort to overturn the results into Vada. 301 00:18:22,359 --> 00:18:25,160 Speaker 1: The prosecutors have asked the judge to keep the questioning 302 00:18:25,160 --> 00:18:28,160 Speaker 1: away from that issue, but the defense wants to raise 303 00:18:28,240 --> 00:18:30,639 Speaker 1: it because they think it goes to his credibility as 304 00:18:30,640 --> 00:18:33,480 Speaker 1: a witness. Coming up next on the Bloomberg Law Show, 305 00:18:33,520 --> 00:18:37,760 Speaker 1: I'll continue this conversation with Bloomberg Legal reporter Christian Bertelson, 306 00:18:38,240 --> 00:18:40,840 Speaker 1: and we'll talk about the new U S. Attorney for 307 00:18:40,880 --> 00:18:47,640 Speaker 1: the Southern District of New York. You're listening to Bloomberg 308 00:18:47,720 --> 00:18:52,440 Speaker 1: Law with June Grasso from Bloomberg Radio. The U S. 309 00:18:52,480 --> 00:18:54,960 Speaker 1: Attorney's Office for the Southern District of New York is 310 00:18:54,960 --> 00:18:57,960 Speaker 1: the most high profile of the ninety three offices around 311 00:18:58,000 --> 00:19:01,880 Speaker 1: the country, known for police Wall Street and prosecuting high 312 00:19:01,880 --> 00:19:07,640 Speaker 1: profile cases involving terrorism, organized crime, and public corruption. Damian 313 00:19:07,680 --> 00:19:10,200 Speaker 1: Williams is the first black person to be in charge 314 00:19:10,200 --> 00:19:12,800 Speaker 1: of the Southern District in its two thirty two year 315 00:19:12,920 --> 00:19:15,919 Speaker 1: history and one of the youngest. I've been talking to 316 00:19:15,920 --> 00:19:19,720 Speaker 1: Bloomberg Legal reporter Christian Berthelsson, so tell us about his 317 00:19:19,840 --> 00:19:23,639 Speaker 1: background well, if he's born in New York, New York City, 318 00:19:24,000 --> 00:19:29,000 Speaker 1: grew up in Atlanta, his parents are immigrants, he's quite 319 00:19:29,040 --> 00:19:33,040 Speaker 1: success story. Harvard undergrad, you know, law school, clerked for 320 00:19:33,200 --> 00:19:37,680 Speaker 1: Merrick Garland on the DC Appeals Court UH and Marrick 321 00:19:37,720 --> 00:19:41,600 Speaker 1: Garlands of course, now the Attorney General. He has been 322 00:19:41,640 --> 00:19:45,480 Speaker 1: a U S attorney for think about ten years and 323 00:19:45,640 --> 00:19:49,199 Speaker 1: was elevated first from being a ligned prosecutor to the 324 00:19:49,800 --> 00:19:52,240 Speaker 1: co chief of the Securities Unit, and from there to 325 00:19:52,720 --> 00:19:55,760 Speaker 1: head of the entire office, as last week confirmed by 326 00:19:55,800 --> 00:19:59,119 Speaker 1: the Senate after being nominated earlier this year by President Biden. 327 00:19:59,400 --> 00:20:03,119 Speaker 1: Would you say that he's been the star of the U. S. 328 00:20:03,119 --> 00:20:06,879 Speaker 1: Attorney's Office? Certainly. I mean, you know, the Southern District 329 00:20:06,960 --> 00:20:11,520 Speaker 1: Use Attorney's Office has a reputation as being one of 330 00:20:11,560 --> 00:20:14,880 Speaker 1: the most elite offices in the country, partially because of 331 00:20:15,280 --> 00:20:19,080 Speaker 1: you being here in New York and being sort of 332 00:20:19,119 --> 00:20:23,240 Speaker 1: the law enforcement overseer of Wall Street, and within the office, 333 00:20:23,320 --> 00:20:27,800 Speaker 1: the Securities Unit is viewed as the most high profile unit. 334 00:20:28,640 --> 00:20:32,040 Speaker 1: So Mr Williams was a line prosecutor in the unit 335 00:20:32,400 --> 00:20:35,639 Speaker 1: following the financial crisis and did some of the offices 336 00:20:36,240 --> 00:20:40,840 Speaker 1: most high profile cases. They included the conviction of the 337 00:20:40,840 --> 00:20:45,119 Speaker 1: guilty plea of a sitting US congressman for insider trading, 338 00:20:45,400 --> 00:20:49,800 Speaker 1: other cases against hedge funds for insider trading and mismarking 339 00:20:49,800 --> 00:20:53,520 Speaker 1: other forms of security spraud, and another big case involving 340 00:20:53,920 --> 00:20:59,240 Speaker 1: the circulation of non public, highly sensitive information from government 341 00:20:59,240 --> 00:21:03,560 Speaker 1: agencies to hedge funds that inform their trading ahead of 342 00:21:03,640 --> 00:21:09,160 Speaker 1: major decision enoucements. So he's taking over at a time 343 00:21:09,320 --> 00:21:14,800 Speaker 1: when there's been some controversies. Yes, well, you know, the 344 00:21:14,840 --> 00:21:19,840 Speaker 1: past four years under the Trump administration were challenging for 345 00:21:19,920 --> 00:21:25,600 Speaker 1: the Southern District. They included the unceremonious firings of two 346 00:21:25,800 --> 00:21:29,680 Speaker 1: U S attorneys during that period, and uh, you know, 347 00:21:29,720 --> 00:21:33,040 Speaker 1: a fair amount of meddling from main Justice in the 348 00:21:33,080 --> 00:21:37,800 Speaker 1: Affairs and District, the pardoning of defendants who were convicted 349 00:21:37,840 --> 00:21:43,320 Speaker 1: by this office, including Steve Bannon, Mr. Trump's sometimes political advisor, 350 00:21:43,720 --> 00:21:46,199 Speaker 1: And there have also been miss steps by the office itself. 351 00:21:46,280 --> 00:21:49,240 Speaker 1: There have been multiple cases in recent years where the 352 00:21:49,320 --> 00:21:54,160 Speaker 1: office was found to have withheld important, potentially exculpatory information 353 00:21:54,280 --> 00:21:57,320 Speaker 1: from defense lawyers for defendants that were being prosecuted by 354 00:21:57,320 --> 00:22:01,040 Speaker 1: the office, and it has been castigated by judges in 355 00:22:01,119 --> 00:22:06,199 Speaker 1: this district for not playing fair. So there is a 356 00:22:06,200 --> 00:22:09,840 Speaker 1: fair amount of work to do in rebuilding the reputation 357 00:22:09,880 --> 00:22:13,000 Speaker 1: of this office, both with the public and with the 358 00:22:13,080 --> 00:22:16,560 Speaker 1: judges who who oversee the cases they bring. Is he 359 00:22:16,640 --> 00:22:18,920 Speaker 1: stepping into a role in an office where there's a 360 00:22:19,040 --> 00:22:22,520 Speaker 1: morale problem. Yes, People who have left the office say 361 00:22:22,600 --> 00:22:27,240 Speaker 1: that the lawyers who are there have have been having 362 00:22:27,800 --> 00:22:31,800 Speaker 1: morale issues, partly, you know, the same way everyone has 363 00:22:32,080 --> 00:22:35,680 Speaker 1: with this pandemic and through remote work. But the hits 364 00:22:35,720 --> 00:22:41,240 Speaker 1: to the office's reputation from the evidentiary issues everyone has 365 00:22:41,280 --> 00:22:45,680 Speaker 1: taken hard, and the meddling that came from the Trump 366 00:22:45,720 --> 00:22:50,520 Speaker 1: administration has also weighed on morale there. So yes, you know, 367 00:22:50,560 --> 00:22:53,919 Speaker 1: people say that the new U. S. Attorney has a 368 00:22:53,920 --> 00:22:57,440 Speaker 1: fair amount of work to do in trying to restore 369 00:22:57,600 --> 00:23:02,560 Speaker 1: that office to its prior. The Southern district known for 370 00:23:02,840 --> 00:23:09,480 Speaker 1: prosecuting Wall Street crimes, financial securities fraud. During the Trump administration, 371 00:23:10,000 --> 00:23:13,119 Speaker 1: those crimes are not giving the same attention. Any indication 372 00:23:13,320 --> 00:23:17,399 Speaker 1: what he's going to focus on not really. Uh, you know, 373 00:23:17,440 --> 00:23:22,760 Speaker 1: there's no public hearings for the U. S. Attorney nominees, 374 00:23:22,960 --> 00:23:27,360 Speaker 1: so he hasn't had a any kind of public airing 375 00:23:27,680 --> 00:23:31,720 Speaker 1: of you know, his record or or what he sees 376 00:23:31,760 --> 00:23:34,720 Speaker 1: as the office's mission. You know, obviously he has been 377 00:23:34,760 --> 00:23:40,480 Speaker 1: talking to former leaders of the office, former senior officials, 378 00:23:40,520 --> 00:23:45,720 Speaker 1: their friends, colleagues in the months since his nomination as 379 00:23:45,760 --> 00:23:49,080 Speaker 1: he sort of puts together ideas for how he wants 380 00:23:49,119 --> 00:23:51,040 Speaker 1: to lead and what he wants to focus on. But 381 00:23:51,080 --> 00:23:53,439 Speaker 1: the people who have had those conversations with him have 382 00:23:54,800 --> 00:23:57,760 Speaker 1: not wanted to go into great detail about them and 383 00:23:57,800 --> 00:24:00,840 Speaker 1: feel like he should be given room to set those 384 00:24:00,840 --> 00:24:04,320 Speaker 1: priorities and announce those things himself. He just started in 385 00:24:04,359 --> 00:24:08,120 Speaker 1: the job on Sunday, so he hasn't himself held any 386 00:24:08,200 --> 00:24:11,399 Speaker 1: public events yet to articulate that either tell us what 387 00:24:11,600 --> 00:24:14,440 Speaker 1: my profile cases there are in the office right now 388 00:24:14,480 --> 00:24:17,520 Speaker 1: that he's going to be overseen. Well, as you were saying, 389 00:24:17,800 --> 00:24:22,120 Speaker 1: enforcement of white collar of financial type crimes did all 390 00:24:22,240 --> 00:24:27,520 Speaker 1: precipitously during the Trump administration. Part of that is because 391 00:24:28,240 --> 00:24:31,280 Speaker 1: you know, those types of cases tend to come up 392 00:24:31,720 --> 00:24:34,600 Speaker 1: when you have downturns in the market or downturns in 393 00:24:34,680 --> 00:24:37,159 Speaker 1: the economy, and that hasn't been the case in the 394 00:24:37,280 --> 00:24:39,720 Speaker 1: last four years. So there is a bit of a 395 00:24:39,720 --> 00:24:43,320 Speaker 1: cyclical ebb to it. However, you could also infer that 396 00:24:43,359 --> 00:24:46,000 Speaker 1: it just was not a priority of the prior administration 397 00:24:46,160 --> 00:24:49,199 Speaker 1: to bring those kinds of cases. So I think you 398 00:24:49,200 --> 00:24:53,320 Speaker 1: could expect to see an effort to bring more of those. 399 00:24:53,520 --> 00:24:56,840 Speaker 1: You know, this office works particularly closely with the SEC, 400 00:24:57,760 --> 00:25:01,439 Speaker 1: and Gary Gensler, the new SEC chief, has identified areas 401 00:25:01,440 --> 00:25:04,960 Speaker 1: that he sees as right for a greater enforcement. One 402 00:25:05,119 --> 00:25:07,920 Speaker 1: thing that he has focused on is insider trading by 403 00:25:08,160 --> 00:25:13,119 Speaker 1: corporate executives outside of established ten be five plans where 404 00:25:13,640 --> 00:25:17,719 Speaker 1: CEOs have pre established plans to sell equity that they 405 00:25:17,720 --> 00:25:21,800 Speaker 1: accumulate their companies, but you'll occasionally see them either changing 406 00:25:21,840 --> 00:25:25,199 Speaker 1: their plans or trading outside of their plans, and sometimes 407 00:25:25,320 --> 00:25:28,560 Speaker 1: if that is time to market moving information. That's something 408 00:25:28,560 --> 00:25:31,399 Speaker 1: the SEC wants to focus on more. And typically the 409 00:25:31,440 --> 00:25:34,280 Speaker 1: way that works is that you know, the SEC will 410 00:25:34,280 --> 00:25:38,480 Speaker 1: bring its strongest cases where there is evidence of criminality 411 00:25:38,840 --> 00:25:41,480 Speaker 1: to the Southern District and they do those cases jointly. 412 00:25:42,200 --> 00:25:44,679 Speaker 1: So you could expect to see cases like that. So 413 00:25:44,760 --> 00:25:47,440 Speaker 1: the ones that are in the work. H Jollim Maxwell 414 00:25:47,840 --> 00:25:54,600 Speaker 1: Jeffrey Epstein alleged wrangler of underage girls that's charged and 415 00:25:54,960 --> 00:25:58,600 Speaker 1: is coming to trial this fall there was a recently 416 00:25:58,680 --> 00:26:03,600 Speaker 1: charged case corporate case involving an electric vehicle company and 417 00:26:03,920 --> 00:26:07,399 Speaker 1: whether that was misrepresenting its results to the market. But 418 00:26:07,480 --> 00:26:10,680 Speaker 1: there's kind of a dearth right now in big cases 419 00:26:10,720 --> 00:26:13,960 Speaker 1: with a lot of public attention to them. Thanks Christian. 420 00:26:14,320 --> 00:26:18,119 Speaker 1: That's Bloomberg Legal reporter Christian BERTHELSUN and that's it for 421 00:26:18,160 --> 00:26:20,680 Speaker 1: this edition of the Bloomberg Law Show. Remember you can 422 00:26:20,680 --> 00:26:23,639 Speaker 1: always get the latest legal news on our Bloomberg Law Podcast. 423 00:26:24,000 --> 00:26:26,840 Speaker 1: You can find them on Apple Podcasts, Spotify, and at 424 00:26:27,000 --> 00:26:32,199 Speaker 1: www dot Bloomberg dot com, slash podcast Slash Law, and 425 00:26:32,240 --> 00:26:35,200 Speaker 1: remember to join us weeknights at ten pm Wall Street 426 00:26:35,200 --> 00:26:38,359 Speaker 1: Time for the Bloomberg Law Show. I'm June Basso, and 427 00:26:38,400 --> 00:26:39,840 Speaker 1: you're listening to Bloomberg