WEBVTT - Stephen Miller Brings Trump Crusade to the Courts

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<v Speaker 1>This is Bloomberg Law with June Brussel from Bloomberg Radio.

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<v Speaker 1>Stephen Miller, the Trump aide known as the architect of

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<v Speaker 1>the former president's anti immigrant policies, is reviving as cultural

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<v Speaker 1>crusade as the head of a new activist legal group.

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<v Speaker 1>America First Legal is a conservative nonprofit with disdain for

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<v Speaker 1>the radical left and a wide ranging plan to challenge

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<v Speaker 1>the Biden administration in court. The group has already scored

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<v Speaker 1>some early victories, including in lawsuits accusing the federal government

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<v Speaker 1>of discriminating against white business owners. Joining me is Bloomberg

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<v Speaker 1>Legal reporter Eric Larson tell us who Stephen Miller is

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<v Speaker 1>for those who may not know so. Stephen Miller is

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<v Speaker 1>a conservative political operative who served as a senior White

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<v Speaker 1>House aide to Donald Trump UM and also was a

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<v Speaker 1>speechwriter for the president's UM. He is known as the

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<v Speaker 1>sort of the architect of some of Trump's most anti

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<v Speaker 1>immigrant policies, things like the Muslim ban and the family

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<v Speaker 1>separation policies and some of those really divisive policies that

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<v Speaker 1>really riled up a lot of Democrats. Did he start

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<v Speaker 1>America First Legal? He did. It was just started in

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<v Speaker 1>April UM. He did so with the blessing of Donald Trump,

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<v Speaker 1>who issued a press release praising his effort and the

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<v Speaker 1>opening of America First Legal. So it is he's leading it, uh,

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<v Speaker 1>and he's doing so with several other former Trump administration

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<v Speaker 1>officials who have joined him in the effort, including a

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<v Speaker 1>former acting US Attorney General Whittaker, and some other folks.

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<v Speaker 1>He's not a lawyer, right, No, he's not a lawyer,

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<v Speaker 1>but he he has a former Justice Department lawyer during

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<v Speaker 1>the Trump administration, Gene Hamilton's who was known for working

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<v Speaker 1>on a lot of immigration UM policies under Trump. UM

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<v Speaker 1>is one of the lead lawyers at America First Legal.

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<v Speaker 1>So they are established right wing legal advocacy groups such

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<v Speaker 1>as Alliance Defending Freedom and Judicial Watch. So why another group, Well,

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<v Speaker 1>that's a good question. Some folks that I spoke with

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<v Speaker 1>in the conservative nonprofit group there said that even though

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<v Speaker 1>there are these other groups that they still feel like

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<v Speaker 1>they're outguns by UM left leaning organizations like the American

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<v Speaker 1>Civil Liberties Union. You know, they want to see something

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<v Speaker 1>that rises to that level. Even though America First Legal

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<v Speaker 1>has just started earlier this year. That's how they kind

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<v Speaker 1>of already wanted to be seen as really going after

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<v Speaker 1>the Biden administration on a range of policies the same

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<v Speaker 1>way that the A. C. L. You did um during

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<v Speaker 1>the Trump administration. So what are some of the aims

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<v Speaker 1>or maybe I should say targets of the group. They're

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<v Speaker 1>pretty wide ranging. Started out with lawsuits against the administration

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<v Speaker 1>challenging racial equity programs that had been built into the

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<v Speaker 1>Pandemic Relief bill that had earmarked billions of dollars to

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<v Speaker 1>be prioritized toward miority owned restaurants in one provision and

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<v Speaker 1>minority owned farms and ranches in another. And he sued

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<v Speaker 1>filed separate lawsuits over both of those and actually one

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<v Speaker 1>injunctions preliminary injunctions against the administration in those cases which

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<v Speaker 1>are still pending. But he's also sued over the Biden

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<v Speaker 1>administrations returned to policies that banned discrimination against people based

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<v Speaker 1>on sexual orientation or gender identity in healthcare and housing

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<v Speaker 1>and alike. UM. And you know that's just the beginning.

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<v Speaker 1>There are several other aspects of the administration that he

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<v Speaker 1>seems to be eyeing, based on the press releases they've

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<v Speaker 1>been putting out and the Freedom of Information Act requests

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<v Speaker 1>that they've been filing and highlighting on their website. You

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<v Speaker 1>said they had scored victories. These are cases where they

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<v Speaker 1>can pick the judge or at least the courthouse that

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<v Speaker 1>will be hearing the case. Yes, they've been filing suits

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<v Speaker 1>in Texas where they can, but also UM in Washington

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<v Speaker 1>d C. Federal Court UM. In the two cases where

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<v Speaker 1>they did get these preliminary injunctions injunctions, granted those were

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<v Speaker 1>in Texas UM. It was a Republican appointed judge who

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<v Speaker 1>did that, But not all of their cases are before

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<v Speaker 1>UM Republican appointed judges, but so far they've had pretty

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<v Speaker 1>good luck with those. In the suits they have filed

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<v Speaker 1>in Texas. Another case where they didn't get an injunction UM,

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<v Speaker 1>but they did get a preliminary ruling UM where the

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<v Speaker 1>judge you know, seemed to praise or side with what

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<v Speaker 1>they were saying about the Biden administration's handling of undocumented

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<v Speaker 1>migrant children at the border. UM. That was another one

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<v Speaker 1>of the first lawsuits that a fl filed, accusing the

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<v Speaker 1>Biden administration of allowing undocumented migrant children in housing in

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<v Speaker 1>the US even though they might have COVID nineteen was

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<v Speaker 1>his argument that it was a health violation and the

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<v Speaker 1>judge in that case, UM said that that, uh, he

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<v Speaker 1>agreed essentially with that case. In that case, did they

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<v Speaker 1>do it in conjunction with the Texas Attorney General? They did,

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<v Speaker 1>And the Texas Attorney General Ken Paxton, a very outspoken

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<v Speaker 1>Republican of course, who has challenged Biden on a range

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<v Speaker 1>of issues. Um, and it is very critical of the

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<v Speaker 1>administration on his own right, Um, you know, filed that lawsuit.

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<v Speaker 1>It's challenges provisions of the Migrant Protection Protocol, which was

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<v Speaker 1>the Trump policies that Biden tried to walk away from

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<v Speaker 1>and is having trouble doing so. And so a f l.

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<v Speaker 1>One of their first clients was the state of Texas,

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<v Speaker 1>which in a way isn't too surprising because they're extremely

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<v Speaker 1>ideologically aligned. Eric tell us more about Miller's suit challenging

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<v Speaker 1>pandemic aid earmarked for minority owned farms. America First Legal

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<v Speaker 1>filed a couple of lawsuits over provideds of built the

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<v Speaker 1>massive stimulus built passed by Congress and included a few

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<v Speaker 1>equity programs in it that tried to essentially right some

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<v Speaker 1>wrongs that have been done previously by prioritizing some money

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<v Speaker 1>for minority owned restaurants as well as minority owned farms

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<v Speaker 1>and branches. And in these two lawsuits, Stephen Miller's group

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<v Speaker 1>claims that it's discrimination, racial discrimination against white people that

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<v Speaker 1>he says is banned by the Civil Rights Act, which

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<v Speaker 1>is kind of interesting that he's you know, the complaint

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<v Speaker 1>itself was actually fairly short, but it included some language

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<v Speaker 1>and references that you would normally see in a suit

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<v Speaker 1>alleging racial discrimination against racial minorities. So it's kind of

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<v Speaker 1>turning it around and using it sort of against these

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<v Speaker 1>minorities interests, UM, which really wasn't lost on the people, uh,

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<v Speaker 1>some of the people who I interviewed for the story. UM.

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<v Speaker 1>I interviewed the John Boyd is the president and founder

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<v Speaker 1>of the National Black Farmers Association. He filed a motion

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<v Speaker 1>to intervene in one of those cases. Than he he

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<v Speaker 1>won that permission, and he says that it's just flat

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<v Speaker 1>out discrimination, that that the real discrimination here is with

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<v Speaker 1>Stephen Miller's lawsuit. UM, that they're trying to pretend that

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<v Speaker 1>there was never any discrimination in the past and therefore

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<v Speaker 1>there should be no measures taken now to fix it

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<v Speaker 1>in the present. Did a f L respond to this,

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<v Speaker 1>I see that their website says it's committed to fighting

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<v Speaker 1>for all Americans, regardless of race, color, religion, or creed.

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<v Speaker 1>That's correct. I included that in my story because unfortunately

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<v Speaker 1>they didn't respond to repeated requests for comments. I reached

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<v Speaker 1>out to them numerous times by phone and email, also

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<v Speaker 1>to their PR firm, and they just didn't respond. Although

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<v Speaker 1>they do make regular appearances on on Fox News and

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<v Speaker 1>news Max and O A n UM where they spread

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<v Speaker 1>this message, and of course it's we have to remember

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<v Speaker 1>that this is a nonprofit and they're actively raising money

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<v Speaker 1>at all times. Do most of their cases focus on immigration,

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<v Speaker 1>you know, I really don't think so. I think that that, UM,

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<v Speaker 1>you know, is an obvious interest of Stephen Miller, and

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<v Speaker 1>they do have one or two cases related to that,

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<v Speaker 1>But really they're looking at the whole universe of conservative

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<v Speaker 1>concerns UM, you know, gender identity, UM, LGBT rights, even

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<v Speaker 1>critical race theory, UM. Some of the Freedom of Information

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<v Speaker 1>Act requests that they've filed or demanding, you know, information

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<v Speaker 1>from the Biden administration about why they stopped investigating the

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<v Speaker 1>source of COVID nineteen UM. You know, they even sued

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<v Speaker 1>Biden for forcing Russ Vott off of that naval board UM,

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<v Speaker 1>and he's a he's a member of af L, one

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<v Speaker 1>of the directors. Uh. So there's really just a really

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<v Speaker 1>wide range of UM legal issues that they're looking at here,

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<v Speaker 1>and it's not just immigration. Do we know how much

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<v Speaker 1>funding they have and who is funding them? We don't,

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<v Speaker 1>you know. I would have definitely loved to have asked

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<v Speaker 1>them that question to find out UM, but it's too early.

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<v Speaker 1>It's they're too new to have any UM filings, so

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<v Speaker 1>we really just haven't have no way of knowing. Unfortunately,

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<v Speaker 1>because we're a new organization, they seem to have a

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<v Speaker 1>lot of litigation going on, right. I mean, it's you know,

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<v Speaker 1>anything is possible. Of course, we know one person who

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<v Speaker 1>has plenty of money, that's Donald Trump. They always could

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<v Speaker 1>have gotten some from from him, but that's just speculation.

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<v Speaker 1>But they are doing a lot of real work and

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<v Speaker 1>that does cost a lot of money. UM, so one

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<v Speaker 1>can assume that they at least have something that they

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<v Speaker 1>started out with. Is Trump a visible supporter of the group,

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<v Speaker 1>He is UM only in that Uh. The very first

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<v Speaker 1>press release that went out in April, UM quoted President

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<v Speaker 1>Trump praising Stephen Miller by name and saying that the

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<v Speaker 1>left was out funding us in courts us being the right,

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<v Speaker 1>and that we needed something like a fl to counter

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<v Speaker 1>that movement and to to take the Biden administration to court.

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<v Speaker 1>Trump spelled that all out and said that Stephen Miller

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<v Speaker 1>was the guy to do it. You write that prevailing

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<v Speaker 1>in court might not be the primary reason for the group, Yeah,

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<v Speaker 1>that was That was one theory from someone I spoke with.

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<v Speaker 1>You know, they see the names involved, they see there's

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<v Speaker 1>quite a bit of evidence of people in Trump's orbit.

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<v Speaker 1>It's sort of now that he's out of office, finding

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<v Speaker 1>ways to sort of cash in using his name and

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<v Speaker 1>tapping into his huge support Um. You know, he has

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<v Speaker 1>millions of supporters all around the country, and a lot

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<v Speaker 1>of them are very angry, and a lot of them

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<v Speaker 1>are really despised the left. And if you say and

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<v Speaker 1>the right things, do the right things, you can really

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<v Speaker 1>capture their attention and get them to open their wallets.

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<v Speaker 1>So there's some you know, some cynicism around that. Of course,

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<v Speaker 1>they probably would say the same thing about people on

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<v Speaker 1>the left and the A C. L U. Do you

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<v Speaker 1>get any sense that what they're doing, the cases that

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<v Speaker 1>they're bringing are any different from those of Alliance Defending

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<v Speaker 1>Freedom or Judicial Watch. I would say that they seem

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<v Speaker 1>to be signaling that they're going to be a lot

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<v Speaker 1>more active than those groups, and that they're going to

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<v Speaker 1>be looking at a much wider range of issues, and

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<v Speaker 1>that they're going to be really focused on the issues

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<v Speaker 1>that in particular, really seem to concern the far farther

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<v Speaker 1>rights individuals. So whereas you might see some of those

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<v Speaker 1>more established groups might be focusing more on you know,

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<v Speaker 1>different policies than maybe aren't quite so controversial. Uh, I

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<v Speaker 1>don't think that's going to be a concern of a

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<v Speaker 1>f L. So did anyone you spoke to think that

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<v Speaker 1>this was a short term endeavor that possibly it won't

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<v Speaker 1>last pass when Trump will decide whether or not to run.

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<v Speaker 1>Someone I spoke to said that it's possible that they're

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<v Speaker 1>just looking for, you know, a paycheck and waiting to

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<v Speaker 1>see what happens in and maybe um they'll be you know,

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<v Speaker 1>back in power and get bigger jobs in the administration

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<v Speaker 1>or something like that. But even if they were able

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<v Speaker 1>to do that, even if Steven Miller, you know, made

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<v Speaker 1>a triumphant return to the White House, I wouldn't be

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<v Speaker 1>surprised if they found some way to keep America First Legal,

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<v Speaker 1>you know, still going and doing what it what it does. Um,

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<v Speaker 1>but right now they need a booking man and that's Biden,

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<v Speaker 1>and he's in office. If that changes, who knows. It

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<v Speaker 1>seems like their cases are anti anti abortion, anti immigrant,

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<v Speaker 1>anti l g B t Q, that they're fighting against

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<v Speaker 1>other people's rights. That's the big difference between what the

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<v Speaker 1>a c l YOU did and what America First Legal

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<v Speaker 1>is doing. Of course, the a c l U was

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<v Speaker 1>raising the alarm about concerns that rights would be taken away,

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<v Speaker 1>and in fact that was the case. That is what

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<v Speaker 1>the Trump administration tried to do. A f L is

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<v Speaker 1>focused on the concerns of really mostly you know, white people,

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<v Speaker 1>straight white men in particular. That seems to be their

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<v Speaker 1>their good Thanks Eric. That's Bloomberg Legal reporter Eric Larson.

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<v Speaker 1>It made headlines when Left Parness and Igor Frewman were

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<v Speaker 1>arrested in boarding a plane with one way tickets to Europe.

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<v Speaker 1>Prosecutors claimed the pair had made donations to American politicians

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<v Speaker 1>to advance the interests of Ukrainian officials. Now Frewman has

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<v Speaker 1>pleaded guilty and Parness's trial seems to have morphed into

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<v Speaker 1>something different altogether. The government's case has almost nothing to

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<v Speaker 1>do with Ukraine and instead focuses on political contributions allegedly

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<v Speaker 1>intended to help launch a cannabis business. Joining me is

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<v Speaker 1>Bloomberg Legal reporter Christian Berthelson. So Christian, tell us what

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<v Speaker 1>charges Partners is facing at trial. Yeah, So that's what

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<v Speaker 1>a strange one. You know, left Partners and his business

0:13:51.840 --> 0:13:56.120
<v Speaker 1>associating Frewman were charged two years ago. And you know,

0:13:56.160 --> 0:13:59.679
<v Speaker 1>they were involved in Rudy Giuliani's efforts to dig up

0:13:59.720 --> 0:14:03.120
<v Speaker 1>to her on Joe Biden in Ukraine. And this was

0:14:03.200 --> 0:14:07.160
<v Speaker 1>sort of a subtext to the whole first impeachment trial

0:14:07.240 --> 0:14:09.719
<v Speaker 1>of Donald Trump and the quid pro quo he was

0:14:09.760 --> 0:14:14.160
<v Speaker 1>seeking in Ukraine to get damaging information about the Bidens

0:14:14.200 --> 0:14:18.080
<v Speaker 1>prior to the election. Levin and Igor were working with

0:14:18.160 --> 0:14:22.360
<v Speaker 1>Juliani to try and facilitate that. They were actually arrested

0:14:22.760 --> 0:14:25.720
<v Speaker 1>with one way tickets to leave the country getting on

0:14:25.760 --> 0:14:29.600
<v Speaker 1>an airplane in Washington, d C. The government alleged that

0:14:29.680 --> 0:14:34.080
<v Speaker 1>they had been working for Ukrainian officials to advance their

0:14:34.080 --> 0:14:36.720
<v Speaker 1>interests in the United States and that they were played

0:14:36.760 --> 0:14:38.440
<v Speaker 1>a role in the firing of the then U s

0:14:38.480 --> 0:14:42.640
<v Speaker 1>Ambassador in Ukraine, Mariovanovitch. All of those allegations were then

0:14:42.840 --> 0:14:45.480
<v Speaker 1>sort of quietly dropped from the case about a year ago.

0:14:46.120 --> 0:14:51.120
<v Speaker 1>Mr Freman pleaded guilty. Mr Parnass just started trial yesterday,

0:14:51.160 --> 0:14:54.680
<v Speaker 1>but the charges against him now involved allegedly illegal campaign

0:14:54.680 --> 0:14:58.000
<v Speaker 1>donations he made to try and advance a cannabis business

0:14:58.600 --> 0:15:02.400
<v Speaker 1>in Nevada, California and elsewhere. So it's a very different

0:15:02.440 --> 0:15:05.440
<v Speaker 1>case than what prosecutors said it was when they charged

0:15:05.480 --> 0:15:08.560
<v Speaker 1>it two years ago. Is Ferman going to testify for

0:15:08.600 --> 0:15:11.960
<v Speaker 1>the prosecution. No, so two of the defendants in that case,

0:15:12.000 --> 0:15:14.840
<v Speaker 1>there was four defendants, two of them have pleaded guilty.

0:15:14.960 --> 0:15:18.080
<v Speaker 1>Neither one of them pleaded guilty with the cooperation agreement,

0:15:18.280 --> 0:15:22.520
<v Speaker 1>so they are not expected to become government witnesses during

0:15:22.520 --> 0:15:24.000
<v Speaker 1>the trial. Is there going to be a lot of

0:15:24.080 --> 0:15:28.400
<v Speaker 1>mention of former President Trump or Rudy Giuliani. One would

0:15:28.400 --> 0:15:31.280
<v Speaker 1>have thought that given the way the case was charged

0:15:31.320 --> 0:15:34.400
<v Speaker 1>two years ago, But no, as we get to our trial,

0:15:34.440 --> 0:15:36.560
<v Speaker 1>one of the prosecutors told the judge last week that

0:15:36.800 --> 0:15:39.400
<v Speaker 1>Mr Trump and Mr Giuliani are going to be peripheral

0:15:39.400 --> 0:15:42.560
<v Speaker 1>figures at best. Do you know why this case took

0:15:42.680 --> 0:15:46.560
<v Speaker 1>such a turn. At the prosecutors when they dropped that

0:15:46.600 --> 0:15:50.080
<v Speaker 1>allegation from the case, offered no explanation as to why

0:15:50.120 --> 0:15:53.400
<v Speaker 1>they were doing it. They said they were streamlining certain

0:15:53.480 --> 0:15:56.760
<v Speaker 1>factual assertions and they left it at that, and they

0:15:56.800 --> 0:16:00.800
<v Speaker 1>have declined to say anything beyond that. So that is

0:16:00.840 --> 0:16:03.600
<v Speaker 1>really not much of an answer, uh, and sort of

0:16:03.680 --> 0:16:06.360
<v Speaker 1>leaves it open to speculation as to why. You know,

0:16:06.480 --> 0:16:11.080
<v Speaker 1>they do have the the evidence in the campaign finance

0:16:11.160 --> 0:16:15.120
<v Speaker 1>charges and that's an easier case to bring, and potentially

0:16:15.280 --> 0:16:18.040
<v Speaker 1>what they could have done is sort of just wanted

0:16:18.080 --> 0:16:21.520
<v Speaker 1>to charge and try an easier case rather than getting

0:16:21.560 --> 0:16:26.000
<v Speaker 1>into issues that the defense could have raised about, you know,

0:16:26.080 --> 0:16:29.320
<v Speaker 1>doing something on behalf of the president and whether that

0:16:29.560 --> 0:16:33.320
<v Speaker 1>then became acceptable. I don't know. I don't think anyone

0:16:33.400 --> 0:16:35.680
<v Speaker 1>knows outside of the office why they decided to do

0:16:35.720 --> 0:16:40.360
<v Speaker 1>it that way. And what's parnesses defense. So the campaign

0:16:40.480 --> 0:16:45.520
<v Speaker 1>charges involved funds that came from a Russian investor in

0:16:45.560 --> 0:16:49.840
<v Speaker 1>the cannabis business and that were then used to donate

0:16:49.880 --> 0:16:54.240
<v Speaker 1>to certain state politicians around the country. His defense is

0:16:54.320 --> 0:16:58.280
<v Speaker 1>that there was no conspiracy to do that, and the

0:16:58.440 --> 0:17:01.400
<v Speaker 1>funds that were donated and come from the Russian businessman.

0:17:01.640 --> 0:17:05.920
<v Speaker 1>There are two defendants. Are their defenses united? Are they

0:17:06.080 --> 0:17:09.520
<v Speaker 1>working together? They're actually not working together, which has been

0:17:09.560 --> 0:17:13.200
<v Speaker 1>an interesting development and only become clear in the last

0:17:13.240 --> 0:17:16.240
<v Speaker 1>week or so that the other defendant, andre Ka Kushkin,

0:17:16.440 --> 0:17:19.080
<v Speaker 1>basically says that he was a victim of love Parnoff

0:17:19.400 --> 0:17:22.919
<v Speaker 1>and that this entire scheme with the campaign donations was

0:17:22.960 --> 0:17:26.680
<v Speaker 1>really just a scheme to get money out of Mr

0:17:26.760 --> 0:17:30.760
<v Speaker 1>Kakushion and his Russian investor. And in fact, of the

0:17:30.880 --> 0:17:34.600
<v Speaker 1>million dollars that came from Russia, a little over one

0:17:34.640 --> 0:17:38.439
<v Speaker 1>hundred thousand of it actually was donated to politicians. The

0:17:38.520 --> 0:17:42.320
<v Speaker 1>rest was diverted to other purposes. Let's turn to one

0:17:42.400 --> 0:17:47.040
<v Speaker 1>of the witnesses who will testify at the trial, Adam Laxalt,

0:17:47.080 --> 0:17:51.560
<v Speaker 1>who's running for US Senate in Nevada. I believe, so

0:17:51.600 --> 0:17:55.120
<v Speaker 1>why is he testifying at this trial? That's correct, He's

0:17:55.119 --> 0:17:58.640
<v Speaker 1>expected to testify today. He's kind of an interesting figure

0:17:58.840 --> 0:18:02.680
<v Speaker 1>because he was as attorney general and running for governor

0:18:02.880 --> 0:18:07.480
<v Speaker 1>of Nevada when he received donation from Mr Parnass and

0:18:07.840 --> 0:18:10.919
<v Speaker 1>he of course then went on to become a co

0:18:11.080 --> 0:18:15.679
<v Speaker 1>chair of Trump's reelection campaign in Nevada and fanned a

0:18:15.680 --> 0:18:18.800
<v Speaker 1>lot of the voter fraud allegations that Mr Trump was

0:18:18.840 --> 0:18:21.760
<v Speaker 1>making in an effort to overturn the results into Vada.

0:18:22.359 --> 0:18:25.160
<v Speaker 1>The prosecutors have asked the judge to keep the questioning

0:18:25.160 --> 0:18:28.160
<v Speaker 1>away from that issue, but the defense wants to raise

0:18:28.240 --> 0:18:30.639
<v Speaker 1>it because they think it goes to his credibility as

0:18:30.640 --> 0:18:33.480
<v Speaker 1>a witness. Coming up next on the Bloomberg Law Show,

0:18:33.520 --> 0:18:37.760
<v Speaker 1>I'll continue this conversation with Bloomberg Legal reporter Christian Bertelson,

0:18:38.240 --> 0:18:40.840
<v Speaker 1>and we'll talk about the new U S. Attorney for

0:18:40.880 --> 0:18:47.640
<v Speaker 1>the Southern District of New York. You're listening to Bloomberg

0:18:47.720 --> 0:18:52.440
<v Speaker 1>Law with June Grasso from Bloomberg Radio. The U S.

0:18:52.480 --> 0:18:54.960
<v Speaker 1>Attorney's Office for the Southern District of New York is

0:18:54.960 --> 0:18:57.960
<v Speaker 1>the most high profile of the ninety three offices around

0:18:58.000 --> 0:19:01.880
<v Speaker 1>the country, known for police Wall Street and prosecuting high

0:19:01.880 --> 0:19:07.640
<v Speaker 1>profile cases involving terrorism, organized crime, and public corruption. Damian

0:19:07.680 --> 0:19:10.200
<v Speaker 1>Williams is the first black person to be in charge

0:19:10.200 --> 0:19:12.800
<v Speaker 1>of the Southern District in its two thirty two year

0:19:12.920 --> 0:19:15.919
<v Speaker 1>history and one of the youngest. I've been talking to

0:19:15.920 --> 0:19:19.720
<v Speaker 1>Bloomberg Legal reporter Christian Berthelsson, so tell us about his

0:19:19.840 --> 0:19:23.639
<v Speaker 1>background well, if he's born in New York, New York City,

0:19:24.000 --> 0:19:29.000
<v Speaker 1>grew up in Atlanta, his parents are immigrants, he's quite

0:19:29.040 --> 0:19:33.040
<v Speaker 1>success story. Harvard undergrad, you know, law school, clerked for

0:19:33.200 --> 0:19:37.680
<v Speaker 1>Merrick Garland on the DC Appeals Court UH and Marrick

0:19:37.720 --> 0:19:41.600
<v Speaker 1>Garlands of course, now the Attorney General. He has been

0:19:41.640 --> 0:19:45.480
<v Speaker 1>a U S attorney for think about ten years and

0:19:45.640 --> 0:19:49.199
<v Speaker 1>was elevated first from being a ligned prosecutor to the

0:19:49.800 --> 0:19:52.240
<v Speaker 1>co chief of the Securities Unit, and from there to

0:19:52.720 --> 0:19:55.760
<v Speaker 1>head of the entire office, as last week confirmed by

0:19:55.800 --> 0:19:59.119
<v Speaker 1>the Senate after being nominated earlier this year by President Biden.

0:19:59.400 --> 0:20:03.119
<v Speaker 1>Would you say that he's been the star of the U. S.

0:20:03.119 --> 0:20:06.879
<v Speaker 1>Attorney's Office? Certainly. I mean, you know, the Southern District

0:20:06.960 --> 0:20:11.520
<v Speaker 1>Use Attorney's Office has a reputation as being one of

0:20:11.560 --> 0:20:14.880
<v Speaker 1>the most elite offices in the country, partially because of

0:20:15.280 --> 0:20:19.080
<v Speaker 1>you being here in New York and being sort of

0:20:19.119 --> 0:20:23.240
<v Speaker 1>the law enforcement overseer of Wall Street, and within the office,

0:20:23.320 --> 0:20:27.800
<v Speaker 1>the Securities Unit is viewed as the most high profile unit.

0:20:28.640 --> 0:20:32.040
<v Speaker 1>So Mr Williams was a line prosecutor in the unit

0:20:32.400 --> 0:20:35.639
<v Speaker 1>following the financial crisis and did some of the offices

0:20:36.240 --> 0:20:40.840
<v Speaker 1>most high profile cases. They included the conviction of the

0:20:40.840 --> 0:20:45.119
<v Speaker 1>guilty plea of a sitting US congressman for insider trading,

0:20:45.400 --> 0:20:49.800
<v Speaker 1>other cases against hedge funds for insider trading and mismarking

0:20:49.800 --> 0:20:53.520
<v Speaker 1>other forms of security spraud, and another big case involving

0:20:53.920 --> 0:20:59.240
<v Speaker 1>the circulation of non public, highly sensitive information from government

0:20:59.240 --> 0:21:03.560
<v Speaker 1>agencies to hedge funds that inform their trading ahead of

0:21:03.640 --> 0:21:09.160
<v Speaker 1>major decision enoucements. So he's taking over at a time

0:21:09.320 --> 0:21:14.800
<v Speaker 1>when there's been some controversies. Yes, well, you know, the

0:21:14.840 --> 0:21:19.840
<v Speaker 1>past four years under the Trump administration were challenging for

0:21:19.920 --> 0:21:25.600
<v Speaker 1>the Southern District. They included the unceremonious firings of two

0:21:25.800 --> 0:21:29.680
<v Speaker 1>U S attorneys during that period, and uh, you know,

0:21:29.720 --> 0:21:33.040
<v Speaker 1>a fair amount of meddling from main Justice in the

0:21:33.080 --> 0:21:37.800
<v Speaker 1>Affairs and District, the pardoning of defendants who were convicted

0:21:37.840 --> 0:21:43.320
<v Speaker 1>by this office, including Steve Bannon, Mr. Trump's sometimes political advisor,

0:21:43.720 --> 0:21:46.199
<v Speaker 1>And there have also been miss steps by the office itself.

0:21:46.280 --> 0:21:49.240
<v Speaker 1>There have been multiple cases in recent years where the

0:21:49.320 --> 0:21:54.160
<v Speaker 1>office was found to have withheld important, potentially exculpatory information

0:21:54.280 --> 0:21:57.320
<v Speaker 1>from defense lawyers for defendants that were being prosecuted by

0:21:57.320 --> 0:22:01.040
<v Speaker 1>the office, and it has been castigated by judges in

0:22:01.119 --> 0:22:06.199
<v Speaker 1>this district for not playing fair. So there is a

0:22:06.200 --> 0:22:09.840
<v Speaker 1>fair amount of work to do in rebuilding the reputation

0:22:09.880 --> 0:22:13.000
<v Speaker 1>of this office, both with the public and with the

0:22:13.080 --> 0:22:16.560
<v Speaker 1>judges who who oversee the cases they bring. Is he

0:22:16.640 --> 0:22:18.920
<v Speaker 1>stepping into a role in an office where there's a

0:22:19.040 --> 0:22:22.520
<v Speaker 1>morale problem. Yes, People who have left the office say

0:22:22.600 --> 0:22:27.240
<v Speaker 1>that the lawyers who are there have have been having

0:22:27.800 --> 0:22:31.800
<v Speaker 1>morale issues, partly, you know, the same way everyone has

0:22:32.080 --> 0:22:35.680
<v Speaker 1>with this pandemic and through remote work. But the hits

0:22:35.720 --> 0:22:41.240
<v Speaker 1>to the office's reputation from the evidentiary issues everyone has

0:22:41.280 --> 0:22:45.680
<v Speaker 1>taken hard, and the meddling that came from the Trump

0:22:45.720 --> 0:22:50.520
<v Speaker 1>administration has also weighed on morale there. So yes, you know,

0:22:50.560 --> 0:22:53.919
<v Speaker 1>people say that the new U. S. Attorney has a

0:22:53.920 --> 0:22:57.440
<v Speaker 1>fair amount of work to do in trying to restore

0:22:57.600 --> 0:23:02.560
<v Speaker 1>that office to its prior. The Southern district known for

0:23:02.840 --> 0:23:09.480
<v Speaker 1>prosecuting Wall Street crimes, financial securities fraud. During the Trump administration,

0:23:10.000 --> 0:23:13.119
<v Speaker 1>those crimes are not giving the same attention. Any indication

0:23:13.320 --> 0:23:17.399
<v Speaker 1>what he's going to focus on not really. Uh, you know,

0:23:17.440 --> 0:23:22.760
<v Speaker 1>there's no public hearings for the U. S. Attorney nominees,

0:23:22.960 --> 0:23:27.360
<v Speaker 1>so he hasn't had a any kind of public airing

0:23:27.680 --> 0:23:31.720
<v Speaker 1>of you know, his record or or what he sees

0:23:31.760 --> 0:23:34.720
<v Speaker 1>as the office's mission. You know, obviously he has been

0:23:34.760 --> 0:23:40.480
<v Speaker 1>talking to former leaders of the office, former senior officials,

0:23:40.520 --> 0:23:45.720
<v Speaker 1>their friends, colleagues in the months since his nomination as

0:23:45.760 --> 0:23:49.080
<v Speaker 1>he sort of puts together ideas for how he wants

0:23:49.119 --> 0:23:51.040
<v Speaker 1>to lead and what he wants to focus on. But

0:23:51.080 --> 0:23:53.439
<v Speaker 1>the people who have had those conversations with him have

0:23:54.800 --> 0:23:57.760
<v Speaker 1>not wanted to go into great detail about them and

0:23:57.800 --> 0:24:00.840
<v Speaker 1>feel like he should be given room to set those

0:24:00.840 --> 0:24:04.320
<v Speaker 1>priorities and announce those things himself. He just started in

0:24:04.359 --> 0:24:08.120
<v Speaker 1>the job on Sunday, so he hasn't himself held any

0:24:08.200 --> 0:24:11.399
<v Speaker 1>public events yet to articulate that either tell us what

0:24:11.600 --> 0:24:14.440
<v Speaker 1>my profile cases there are in the office right now

0:24:14.480 --> 0:24:17.520
<v Speaker 1>that he's going to be overseen. Well, as you were saying,

0:24:17.800 --> 0:24:22.120
<v Speaker 1>enforcement of white collar of financial type crimes did all

0:24:22.240 --> 0:24:27.520
<v Speaker 1>precipitously during the Trump administration. Part of that is because

0:24:28.240 --> 0:24:31.280
<v Speaker 1>you know, those types of cases tend to come up

0:24:31.720 --> 0:24:34.600
<v Speaker 1>when you have downturns in the market or downturns in

0:24:34.680 --> 0:24:37.159
<v Speaker 1>the economy, and that hasn't been the case in the

0:24:37.280 --> 0:24:39.720
<v Speaker 1>last four years. So there is a bit of a

0:24:39.720 --> 0:24:43.320
<v Speaker 1>cyclical ebb to it. However, you could also infer that

0:24:43.359 --> 0:24:46.000
<v Speaker 1>it just was not a priority of the prior administration

0:24:46.160 --> 0:24:49.199
<v Speaker 1>to bring those kinds of cases. So I think you

0:24:49.200 --> 0:24:53.320
<v Speaker 1>could expect to see an effort to bring more of those.

0:24:53.520 --> 0:24:56.840
<v Speaker 1>You know, this office works particularly closely with the SEC,

0:24:57.760 --> 0:25:01.439
<v Speaker 1>and Gary Gensler, the new SEC chief, has identified areas

0:25:01.440 --> 0:25:04.960
<v Speaker 1>that he sees as right for a greater enforcement. One

0:25:05.119 --> 0:25:07.920
<v Speaker 1>thing that he has focused on is insider trading by

0:25:08.160 --> 0:25:13.119
<v Speaker 1>corporate executives outside of established ten be five plans where

0:25:13.640 --> 0:25:17.719
<v Speaker 1>CEOs have pre established plans to sell equity that they

0:25:17.720 --> 0:25:21.800
<v Speaker 1>accumulate their companies, but you'll occasionally see them either changing

0:25:21.840 --> 0:25:25.199
<v Speaker 1>their plans or trading outside of their plans, and sometimes

0:25:25.320 --> 0:25:28.560
<v Speaker 1>if that is time to market moving information. That's something

0:25:28.560 --> 0:25:31.399
<v Speaker 1>the SEC wants to focus on more. And typically the

0:25:31.440 --> 0:25:34.280
<v Speaker 1>way that works is that you know, the SEC will

0:25:34.280 --> 0:25:38.480
<v Speaker 1>bring its strongest cases where there is evidence of criminality

0:25:38.840 --> 0:25:41.480
<v Speaker 1>to the Southern District and they do those cases jointly.

0:25:42.200 --> 0:25:44.679
<v Speaker 1>So you could expect to see cases like that. So

0:25:44.760 --> 0:25:47.440
<v Speaker 1>the ones that are in the work. H Jollim Maxwell

0:25:47.840 --> 0:25:54.600
<v Speaker 1>Jeffrey Epstein alleged wrangler of underage girls that's charged and

0:25:54.960 --> 0:25:58.600
<v Speaker 1>is coming to trial this fall there was a recently

0:25:58.680 --> 0:26:03.600
<v Speaker 1>charged case corporate case involving an electric vehicle company and

0:26:03.920 --> 0:26:07.399
<v Speaker 1>whether that was misrepresenting its results to the market. But

0:26:07.480 --> 0:26:10.680
<v Speaker 1>there's kind of a dearth right now in big cases

0:26:10.720 --> 0:26:13.960
<v Speaker 1>with a lot of public attention to them. Thanks Christian.

0:26:14.320 --> 0:26:18.119
<v Speaker 1>That's Bloomberg Legal reporter Christian BERTHELSUN and that's it for

0:26:18.160 --> 0:26:20.680
<v Speaker 1>this edition of the Bloomberg Law Show. Remember you can

0:26:20.680 --> 0:26:23.639
<v Speaker 1>always get the latest legal news on our Bloomberg Law Podcast.

0:26:24.000 --> 0:26:26.840
<v Speaker 1>You can find them on Apple Podcasts, Spotify, and at

0:26:27.000 --> 0:26:32.199
<v Speaker 1>www dot Bloomberg dot com, slash podcast Slash Law, and

0:26:32.240 --> 0:26:35.200
<v Speaker 1>remember to join us weeknights at ten pm Wall Street

0:26:35.200 --> 0:26:38.359
<v Speaker 1>Time for the Bloomberg Law Show. I'm June Basso, and

0:26:38.400 --> 0:26:39.840
<v Speaker 1>you're listening to Bloomberg