1 00:00:03,200 --> 00:00:07,960 Speaker 1: This is Bloomberg Law with June Brussel from Bloomberg Radio. 2 00:00:09,080 --> 00:00:10,559 Speaker 1: I just want you to walk me through the whole 3 00:00:10,560 --> 00:00:13,520 Speaker 1: thing again and how it works. We helped the wealthiest 4 00:00:13,560 --> 00:00:15,960 Speaker 1: families in the US get their kids into school. So 5 00:00:16,000 --> 00:00:18,200 Speaker 1: I've done seven hundred sixty one what I would call 6 00:00:18,280 --> 00:00:21,079 Speaker 1: side door. The front door means getting in on your own. 7 00:00:21,239 --> 00:00:24,239 Speaker 1: So I've created this kind of side door, and because 8 00:00:24,320 --> 00:00:28,720 Speaker 1: my families want to guarantee and it works every time. 9 00:00:29,480 --> 00:00:34,559 Speaker 1: The Varsity blues sting exploded into public view in with 10 00:00:34,680 --> 00:00:38,159 Speaker 1: dozens of parents across the country arrested for paying hundreds 11 00:00:38,159 --> 00:00:42,000 Speaker 1: of thousands of dollars to get their kids into elite universities. 12 00:00:42,400 --> 00:00:46,560 Speaker 1: There was a Netflix documentary, Books Countless Stories, and even 13 00:00:46,560 --> 00:00:49,760 Speaker 1: a Saturday Night Live skit. The vast majority of the 14 00:00:49,800 --> 00:00:53,239 Speaker 1: parents pleaded guilty, but a handful decided to fight the 15 00:00:53,320 --> 00:00:56,400 Speaker 1: charges in court, and now, nearly two and a half 16 00:00:56,480 --> 00:00:59,760 Speaker 1: years later, the first trial of two parents is starting 17 00:00:59,760 --> 00:01:02,120 Speaker 1: in Austin. Here to tell us about what's ahead is 18 00:01:02,160 --> 00:01:05,000 Speaker 1: Bloomberg Legal report of Patricia Hurtado, who has been covering 19 00:01:05,040 --> 00:01:07,680 Speaker 1: the case since the beginning. So pat tell us about 20 00:01:07,720 --> 00:01:10,639 Speaker 1: the two fathers who are going to be tried. Forty 21 00:01:10,680 --> 00:01:13,920 Speaker 1: parents were indicted by the U S Attorney in Massachusetts. 22 00:01:13,920 --> 00:01:16,560 Speaker 1: Thirty three pled guilty. Six of them are fighting the 23 00:01:16,680 --> 00:01:19,360 Speaker 1: charges and one got a partner from President Trump just 24 00:01:19,440 --> 00:01:22,800 Speaker 1: before he left office. Two dads are fighting the charges 25 00:01:22,880 --> 00:01:26,840 Speaker 1: in this first trial. It's John Wilson, the private equity 26 00:01:26,880 --> 00:01:31,080 Speaker 1: investor who is a former Staples and Gap executive, and 27 00:01:31,440 --> 00:01:34,840 Speaker 1: the Maal app del Az, a former executive for Win 28 00:01:34,959 --> 00:01:38,840 Speaker 1: Resort and he operated in Acal and Hong Kong left 29 00:01:38,920 --> 00:01:41,720 Speaker 1: at the time. I understand Rick Singer, the mastermind of 30 00:01:41,760 --> 00:01:45,960 Speaker 1: this day, had two different schemes. One was to boost 31 00:01:46,000 --> 00:01:49,880 Speaker 1: the college entrance test scores of kids whose parents paid money, 32 00:01:50,240 --> 00:01:52,320 Speaker 1: and he would get a test with to take the 33 00:01:52,400 --> 00:01:55,160 Speaker 1: test for the kids. The second scheme is called the 34 00:01:55,200 --> 00:01:58,240 Speaker 1: side door. The back door would be if your parents 35 00:01:58,240 --> 00:02:02,080 Speaker 1: donated stepanmillion dollar and you get into the college of 36 00:02:02,120 --> 00:02:04,640 Speaker 1: your choice because you've given them a new athletic building. 37 00:02:04,840 --> 00:02:07,440 Speaker 1: Or are you Jim. This side door is you don't 38 00:02:07,480 --> 00:02:09,639 Speaker 1: have to donate as much money. You could give the 39 00:02:09,760 --> 00:02:13,560 Speaker 1: two hundred thousand dollars to Rick Singer as a charitable 40 00:02:13,600 --> 00:02:17,080 Speaker 1: donation and he would help with friends and connections at 41 00:02:17,120 --> 00:02:21,680 Speaker 1: all these universities and get the applicant students and as 42 00:02:21,720 --> 00:02:24,760 Speaker 1: a purported athletic recruit, so it's like a jock for 43 00:02:24,800 --> 00:02:28,880 Speaker 1: a designated sport. Wilson is accused of paying Singer a 44 00:02:28,880 --> 00:02:32,480 Speaker 1: total of one point two million dollars for his three kids. 45 00:02:32,639 --> 00:02:35,880 Speaker 1: A Della dizz is accused of paying Singer three hundred 46 00:02:35,919 --> 00:02:39,800 Speaker 1: thousand dollars and more to a USC athletic coach for 47 00:02:39,960 --> 00:02:42,960 Speaker 1: his daughter's admission, and they don't deny they made the payments. 48 00:02:43,800 --> 00:02:46,720 Speaker 1: John Wilson is accused of trying to get his three 49 00:02:46,800 --> 00:02:50,400 Speaker 1: kids into colleges, the first with a son who he 50 00:02:50,440 --> 00:02:54,400 Speaker 1: allegedly paid Singer two hundred thousand dollars to get a 51 00:02:54,480 --> 00:02:58,280 Speaker 1: kid in as a water polo player. The dad says, 52 00:02:58,280 --> 00:03:00,440 Speaker 1: but my kid really was the water polo players. There 53 00:03:00,440 --> 00:03:02,959 Speaker 1: was no faking involved. I gave a few hundred thousand 54 00:03:02,960 --> 00:03:04,840 Speaker 1: dollars to Singer. He told me he was going to 55 00:03:04,919 --> 00:03:07,000 Speaker 1: give it to USC, and as a matter of fact, 56 00:03:07,400 --> 00:03:10,320 Speaker 1: a hundred thousand ended up at USC, and I gotta 57 00:03:10,360 --> 00:03:14,320 Speaker 1: thank you know for my donation. Meanwhile, Singer pocket at 58 00:03:14,360 --> 00:03:17,320 Speaker 1: the next hundred downs. And then he's accused of allegedly 59 00:03:17,680 --> 00:03:21,960 Speaker 1: paying a million dollars to singer five hundred thousand dollars 60 00:03:21,960 --> 00:03:24,520 Speaker 1: a pop for the two twin daughters to get one 61 00:03:24,520 --> 00:03:28,480 Speaker 1: into Stanford as a purported athlete and one into Harvard 62 00:03:28,520 --> 00:03:32,000 Speaker 1: as a purported athlete. The dad Wilson says that his 63 00:03:32,200 --> 00:03:36,520 Speaker 1: two daughters tstoo dutifully and had excellent, if not near perfect, 64 00:03:36,560 --> 00:03:39,360 Speaker 1: college board scores, so they could have gotten into the 65 00:03:39,400 --> 00:03:42,960 Speaker 1: college of their choice. Then the dad Gamal at la 66 00:03:43,040 --> 00:03:45,600 Speaker 1: Zi's he's accused of trying to get his daughter into 67 00:03:45,760 --> 00:03:50,040 Speaker 1: USC as a reported basketball recruit. He says he didn't 68 00:03:50,080 --> 00:03:52,480 Speaker 1: need to pay abroad because she was good enough athletes. 69 00:03:53,400 --> 00:03:56,920 Speaker 1: Is USC on trial here in a sense? Well, it's 70 00:03:57,080 --> 00:04:00,160 Speaker 1: USC and the process, and USC was one of the 71 00:04:00,360 --> 00:04:03,120 Speaker 1: schools that everybody wanted to get into. It was like 72 00:04:03,120 --> 00:04:06,800 Speaker 1: a hot popular school for these West Coast parents. So 73 00:04:07,040 --> 00:04:10,720 Speaker 1: some of these parents went after USC and its admissions processes, 74 00:04:10,760 --> 00:04:13,920 Speaker 1: and it just p the documents and eventually they got 75 00:04:14,200 --> 00:04:17,560 Speaker 1: what they call a smoking gun, which is an eight 76 00:04:17,600 --> 00:04:22,920 Speaker 1: page spreadsheet of names of students who they knew at USC. 77 00:04:23,160 --> 00:04:26,000 Speaker 1: It was called the v I P List, and it 78 00:04:26,040 --> 00:04:29,760 Speaker 1: was submitted for admissions over a period of years. And 79 00:04:29,920 --> 00:04:33,200 Speaker 1: I think there's several dozen students. It's like an eight 80 00:04:33,240 --> 00:04:37,120 Speaker 1: page Xcel spreadsheet, and it explained their connection whether they 81 00:04:37,120 --> 00:04:39,960 Speaker 1: were good for quote unquote fifteen millions to the men's 82 00:04:40,000 --> 00:04:44,760 Speaker 1: golf team, for three millions to the USC Sporting Center. 83 00:04:45,360 --> 00:04:48,279 Speaker 1: It's just stunning to see this all written down in 84 00:04:48,320 --> 00:04:51,200 Speaker 1: this list. There was a magistrate at one point and 85 00:04:51,279 --> 00:04:53,800 Speaker 1: she was questioning what this c I P list was 86 00:04:54,000 --> 00:04:56,839 Speaker 1: and USC said, oh, there's nothing wrong. These are people 87 00:04:56,839 --> 00:05:00,240 Speaker 1: we just consider v I P. And the judge was saying, well, 88 00:05:00,240 --> 00:05:02,440 Speaker 1: why do you even have this list. So some of 89 00:05:02,520 --> 00:05:05,600 Speaker 1: these parents say this is an accepted way. Many schools 90 00:05:05,640 --> 00:05:09,080 Speaker 1: operate that if you just kick in enough cash, you know, 91 00:05:09,200 --> 00:05:12,400 Speaker 1: for a reasonable donation, you can get your kid into 92 00:05:12,520 --> 00:05:14,960 Speaker 1: the college of their choice if you know the right people. 93 00:05:15,240 --> 00:05:17,680 Speaker 1: So they're arguing their children were just part of this 94 00:05:17,760 --> 00:05:19,400 Speaker 1: group of people that are on the v I P 95 00:05:19,560 --> 00:05:22,080 Speaker 1: list and there was nothing wrong with what they were 96 00:05:22,120 --> 00:05:24,760 Speaker 1: doing and it's not criminal. So it seems like a 97 00:05:24,839 --> 00:05:28,440 Speaker 1: two pronged defense. The first is we did nothing wrong, 98 00:05:28,760 --> 00:05:34,000 Speaker 1: and the second is the mastermind Rick Singer misled us right, 99 00:05:34,160 --> 00:05:37,280 Speaker 1: and there's a big question. I was actually really shocked 100 00:05:37,279 --> 00:05:40,200 Speaker 1: when I covered the final pre trial conference for the 101 00:05:40,320 --> 00:05:44,359 Speaker 1: judge on August eating, and the government slipped in on 102 00:05:44,400 --> 00:05:47,960 Speaker 1: a footnote and a filing the night before said we 103 00:05:48,040 --> 00:05:51,520 Speaker 1: don't know if we're calling Rick Singer the mastermind. I 104 00:05:51,600 --> 00:05:54,480 Speaker 1: was kind of looking forward to hearing what his story was, 105 00:05:54,560 --> 00:05:57,919 Speaker 1: because the parents are saying he double talk to us, 106 00:05:57,960 --> 00:06:00,719 Speaker 1: he lied to us what we want to question him 107 00:06:00,720 --> 00:06:04,839 Speaker 1: and thrilled him on class examination. And there's also some notes. 108 00:06:05,240 --> 00:06:09,279 Speaker 1: Singer took notes on his iPhone just as he was 109 00:06:09,360 --> 00:06:12,599 Speaker 1: beginning to cooperate with the government, with the SBI and 110 00:06:12,640 --> 00:06:16,719 Speaker 1: I r S agents in the fall of and he 111 00:06:16,920 --> 00:06:20,440 Speaker 1: says the FBI agents told him to quote unquote telesps 112 00:06:20,640 --> 00:06:23,400 Speaker 1: to the parents to get them to implicate themselves and 113 00:06:23,480 --> 00:06:26,760 Speaker 1: why he was recording their calls. So the parents are 114 00:06:26,880 --> 00:06:31,159 Speaker 1: arguing Singer is a wire and basically fabricated all these 115 00:06:31,200 --> 00:06:34,279 Speaker 1: things that he said to us on the telephone. So 116 00:06:34,400 --> 00:06:37,640 Speaker 1: he told us one story before he cooperated, that everything 117 00:06:37,720 --> 00:06:39,680 Speaker 1: was on the up and up and was totally a 118 00:06:39,880 --> 00:06:43,120 Speaker 1: pure and riable and honest way of getting your kid 119 00:06:43,160 --> 00:06:46,520 Speaker 1: into college. But the minute he started cooperating and he 120 00:06:46,640 --> 00:06:49,240 Speaker 1: realized his neck was on the line, that's when he 121 00:06:49,279 --> 00:06:53,120 Speaker 1: started line and telling the different version, and we never 122 00:06:53,200 --> 00:06:55,680 Speaker 1: agree to what he was saying on the wire tap. 123 00:06:55,880 --> 00:07:00,080 Speaker 1: So because Singer may not testify the parents, probably you 124 00:07:00,200 --> 00:07:03,440 Speaker 1: cannot bring in those I phone notes because that witness 125 00:07:03,480 --> 00:07:05,920 Speaker 1: will not be on the stand. So it's a big question. 126 00:07:06,000 --> 00:07:08,760 Speaker 1: I've thought the lawyers about whether or not the parents 127 00:07:08,839 --> 00:07:11,880 Speaker 1: can make hay of those iPhone notes would prove or 128 00:07:11,920 --> 00:07:15,920 Speaker 1: help their arguments. The Singer was basically concocting stories the 129 00:07:15,960 --> 00:07:18,800 Speaker 1: minutes the FBI was listening. I can see how not 130 00:07:18,920 --> 00:07:22,560 Speaker 1: calling Singer will help the prosecution keep those notes out, 131 00:07:23,280 --> 00:07:25,840 Speaker 1: But how do you not call the alleged mastermind of 132 00:07:25,880 --> 00:07:28,680 Speaker 1: the scheme? Won't the jersey that as a hole in 133 00:07:28,680 --> 00:07:31,520 Speaker 1: the case and ask why are they not calling Singer? 134 00:07:32,000 --> 00:07:35,920 Speaker 1: They must be hiding something. And some people who ask me, well, 135 00:07:35,960 --> 00:07:39,400 Speaker 1: why don't the parents call Singer? But rules of evidence 136 00:07:39,400 --> 00:07:43,200 Speaker 1: and probably agree with me. If you call someone, you 137 00:07:43,320 --> 00:07:47,560 Speaker 1: can't impeach your own witness unless the court declares them 138 00:07:47,560 --> 00:07:50,200 Speaker 1: a hostile witness. And it's like a whole procedure you 139 00:07:50,240 --> 00:07:53,240 Speaker 1: have to go through. And the parents lawyers have never 140 00:07:53,280 --> 00:07:56,400 Speaker 1: spoken to Singer ever, so they don't really know what 141 00:07:56,560 --> 00:07:59,520 Speaker 1: his story is. It's not like the prosecutors who crept 142 00:07:59,560 --> 00:08:02,840 Speaker 1: somebody for days or weeks, having twenty six sessions and 143 00:08:02,880 --> 00:08:05,560 Speaker 1: knowing they asked a question, they exactly know what the 144 00:08:05,640 --> 00:08:09,160 Speaker 1: answer is. This would be like flying blind and asking 145 00:08:09,200 --> 00:08:11,200 Speaker 1: a question that might be a trap door for the 146 00:08:11,280 --> 00:08:15,000 Speaker 1: parents because then Singer could turn on the defense lawyer 147 00:08:15,000 --> 00:08:17,280 Speaker 1: and say, will your clients to criminal or whatever. So 148 00:08:17,320 --> 00:08:20,160 Speaker 1: the parents may not necessarily want to call Singer, but 149 00:08:20,200 --> 00:08:23,560 Speaker 1: they could make argument that there's a missing witness. You know, 150 00:08:23,680 --> 00:08:26,040 Speaker 1: they want to have the jury note that Singer is 151 00:08:26,120 --> 00:08:29,000 Speaker 1: missing and maybe make him out to be the fall 152 00:08:29,040 --> 00:08:32,320 Speaker 1: guy or the real villain of this whole scheme to 153 00:08:32,440 --> 00:08:37,000 Speaker 1: Rebut those wire taps, some of those recordings are very 154 00:08:37,040 --> 00:08:39,720 Speaker 1: you know, the parents are talking about, oh can I 155 00:08:39,720 --> 00:08:41,599 Speaker 1: get a two for one? Oh? How much is it 156 00:08:41,679 --> 00:08:44,520 Speaker 1: going to cost me? And it sounds like the parents 157 00:08:44,600 --> 00:08:48,200 Speaker 1: are scheming. A jury could considerue that that's evidence of 158 00:08:48,240 --> 00:08:51,880 Speaker 1: a father entering into an elicited ringment with Singer. So 159 00:08:51,960 --> 00:08:56,000 Speaker 1: the prosecution could introduce the tapes because the FBI recorded them, 160 00:08:56,280 --> 00:08:58,880 Speaker 1: But normally wouldn't you have the person who recorded them 161 00:08:58,960 --> 00:09:02,000 Speaker 1: on the stand to explain them, right, and you think 162 00:09:02,040 --> 00:09:04,360 Speaker 1: of doubt. Sometimes there's mob cases where they have a 163 00:09:04,400 --> 00:09:06,800 Speaker 1: wire tap, and they don't have a person that says 164 00:09:06,800 --> 00:09:09,400 Speaker 1: the wire taps. They just have the FBI agent saying, yeah, 165 00:09:09,440 --> 00:09:11,680 Speaker 1: we put a wire in the Ravenied Social Club and 166 00:09:11,720 --> 00:09:14,360 Speaker 1: that's how we got John Dotty Cockey. They already made 167 00:09:14,360 --> 00:09:17,280 Speaker 1: a request to the court to authenticate and the usage 168 00:09:17,400 --> 00:09:21,319 Speaker 1: of the case the consensual recordings that Singer made without Singer. 169 00:09:21,800 --> 00:09:23,640 Speaker 1: Do you know if either of the fathers are going 170 00:09:23,679 --> 00:09:26,120 Speaker 1: to take the stand. Of course they don't have to. 171 00:09:26,840 --> 00:09:29,439 Speaker 1: That remains to be seen. I guess how the case 172 00:09:29,640 --> 00:09:32,080 Speaker 1: plays out for the government side of it. One of 173 00:09:32,080 --> 00:09:35,439 Speaker 1: the things that's really interesting is a couple of parents 174 00:09:35,480 --> 00:09:39,040 Speaker 1: are going to testify for the government, a couple from 175 00:09:39,080 --> 00:09:42,440 Speaker 1: California named Bruce and Dzana Isaacson, and they were the 176 00:09:42,480 --> 00:09:46,160 Speaker 1: first to play guilty of all the parents. They immediately 177 00:09:46,240 --> 00:09:49,200 Speaker 1: did a deal and now they're going to testify what 178 00:09:49,360 --> 00:09:52,160 Speaker 1: they were thinking, to give the jury some perspective of 179 00:09:52,400 --> 00:09:54,800 Speaker 1: what parents may have been thinking, of what these two 180 00:09:55,080 --> 00:09:57,360 Speaker 1: fathers may have been thinking. They're also going to call 181 00:09:57,520 --> 00:10:01,400 Speaker 1: some coaching staff that played guil See and other co 182 00:10:01,400 --> 00:10:05,679 Speaker 1: conspirators with Singer in his business to give insight. This 183 00:10:05,800 --> 00:10:08,520 Speaker 1: was a gam that Singer was milking money. I mean 184 00:10:08,559 --> 00:10:10,760 Speaker 1: the government when they announced this case said Singer had 185 00:10:10,800 --> 00:10:14,080 Speaker 1: been doing this for years and had made twenty five millions. 186 00:10:14,120 --> 00:10:16,480 Speaker 1: We've added up the bound of bribes in this case. 187 00:10:16,760 --> 00:10:19,839 Speaker 1: I think we got to maybe ten million or eight millions. 188 00:10:20,000 --> 00:10:23,679 Speaker 1: We've talked about this case several times, and initially I 189 00:10:23,720 --> 00:10:27,080 Speaker 1: thought the prosecution has a slam dunk case, but it 190 00:10:27,160 --> 00:10:29,840 Speaker 1: seems like the defense might knock some holes in the 191 00:10:29,880 --> 00:10:33,600 Speaker 1: prosecution's case. What you can do get a plea deal 192 00:10:33,960 --> 00:10:36,240 Speaker 1: is different from how it will play before a jury. 193 00:10:36,280 --> 00:10:38,560 Speaker 1: I mean some people have said, oh, this is going 194 00:10:38,640 --> 00:10:42,640 Speaker 1: to be so impalatable to the general public ensured that 195 00:10:42,720 --> 00:10:45,520 Speaker 1: they're going to immediately convict and the judge. I'm in 196 00:10:45,760 --> 00:10:49,440 Speaker 1: more than two hundred people to courts in Boston to 197 00:10:49,480 --> 00:10:52,280 Speaker 1: have people fill out a questionnaire. And it's the thirteen 198 00:10:52,320 --> 00:10:54,640 Speaker 1: page questionnaire that asked, how much do you know about 199 00:10:54,679 --> 00:10:57,439 Speaker 1: this case? Have you ever had a child applied to college? 200 00:10:57,520 --> 00:10:59,880 Speaker 1: Have you remember worked in the college system, you have 201 00:11:00,000 --> 00:11:03,280 Speaker 1: work at fundraised? Do you have anything against cooperators? So 202 00:11:03,440 --> 00:11:06,359 Speaker 1: they're going to try to weed out those with opinions 203 00:11:06,400 --> 00:11:10,120 Speaker 1: that might be swayed one way or another, and to 204 00:11:10,360 --> 00:11:12,400 Speaker 1: read out those people and try to get a fair 205 00:11:12,440 --> 00:11:17,120 Speaker 1: and impartial jury. Thanks Pat, That's Bloomberg Legal reporter Patricia Hurtado. 206 00:11:22,360 --> 00:11:26,959 Speaker 1: Another group of charismatic fish are the darters. Darters are 207 00:11:27,000 --> 00:11:31,200 Speaker 1: a small, wonderfully colored bottom dwelling fish that looks more 208 00:11:31,280 --> 00:11:34,680 Speaker 1: suited to live in a coral reef for tropical aquarium 209 00:11:34,920 --> 00:11:39,079 Speaker 1: than the cold, fast flowing streams of the Smokies. The 210 00:11:39,200 --> 00:11:42,760 Speaker 1: snail darter is a tiny Tennessee fish that made big 211 00:11:42,800 --> 00:11:46,079 Speaker 1: waves in legal waters. That is, the three inch fish 212 00:11:46,120 --> 00:11:48,600 Speaker 1: became famous when the case to save it went all 213 00:11:48,640 --> 00:11:51,360 Speaker 1: the way to the Supreme Court, and the court's first 214 00:11:51,400 --> 00:11:57,079 Speaker 1: decision on the landmark Endangered Species Act in articulated an 215 00:11:57,080 --> 00:12:01,000 Speaker 1: expansive interpretation of the law in favor of protections for 216 00:12:01,040 --> 00:12:05,120 Speaker 1: the little fish. Now, after nearly fifty years, the snail 217 00:12:05,200 --> 00:12:08,920 Speaker 1: darter has been taken off the endangered species list, joining 218 00:12:08,920 --> 00:12:10,800 Speaker 1: me as a lawyer who took that case to the 219 00:12:10,840 --> 00:12:14,959 Speaker 1: Supreme Court. Zig Platter, professor at Boston College Law School, 220 00:12:15,160 --> 00:12:19,640 Speaker 1: tell us about the snail darter. The snail darter was 221 00:12:19,840 --> 00:12:26,079 Speaker 1: a tiny perch that was found in the last thirty 222 00:12:26,160 --> 00:12:33,840 Speaker 1: miles of big flowing, clean river in Tennessee because sixty 223 00:12:33,880 --> 00:12:39,320 Speaker 1: seven other damns basically eliminated wherever else it lived, and 224 00:12:39,640 --> 00:12:43,920 Speaker 1: the Tennessee Value Authority decided they wanted to build their 225 00:12:44,040 --> 00:12:49,160 Speaker 1: last damn to impound this river and the darter, it 226 00:12:49,200 --> 00:12:55,280 Speaker 1: turns out, was you know, a perfect illustration two humans 227 00:12:55,720 --> 00:12:57,640 Speaker 1: canary in the coal mine, that this was the last 228 00:12:57,640 --> 00:13:01,440 Speaker 1: place left for humans who having credible trout fishing and 229 00:13:01,720 --> 00:13:04,520 Speaker 1: boy Scouts and girl Scouts could do the float trips there, 230 00:13:04,600 --> 00:13:08,400 Speaker 1: and the history of the Cherokee Indians. The little fish 231 00:13:08,760 --> 00:13:13,839 Speaker 1: was in effect a barometer for a lot of really 232 00:13:13,880 --> 00:13:16,439 Speaker 1: strong public values right at the edge of the Smoky 233 00:13:16,440 --> 00:13:22,080 Speaker 1: Mountains National Park, and so the farmers fought to protect 234 00:13:22,360 --> 00:13:28,160 Speaker 1: their farms by protecting the fish. Um there were three 235 00:13:28,559 --> 00:13:32,680 Speaker 1: family farms that were condemned by the government agency, most 236 00:13:32,720 --> 00:13:35,560 Speaker 1: of them for resale, not most of them not for 237 00:13:35,880 --> 00:13:40,199 Speaker 1: the little lake. So it's a complicated story because you 238 00:13:40,400 --> 00:13:44,280 Speaker 1: got to explain the agency was not building this for hydropower, 239 00:13:44,640 --> 00:13:47,240 Speaker 1: It wasn't building it for flood control. It was it 240 00:13:47,320 --> 00:13:51,840 Speaker 1: had to justify it by inventing a pretend city that 241 00:13:51,960 --> 00:13:54,480 Speaker 1: they said would be built on the land that they 242 00:13:54,480 --> 00:13:58,240 Speaker 1: had condemned. It never was, and also if this would 243 00:13:58,240 --> 00:14:01,040 Speaker 1: be a recreational lake, it's not a Ydro lake in 244 00:14:01,120 --> 00:14:04,440 Speaker 1: terms of his justifications that everything is connected to everything else. 245 00:14:04,440 --> 00:14:07,680 Speaker 1: But it's a complicated story. How did the farmers take 246 00:14:07,760 --> 00:14:13,520 Speaker 1: up this battle? Well, the farmers really were quite sophisticated, 247 00:14:13,760 --> 00:14:17,320 Speaker 1: for you know, Appalachian farmers, who most of them had 248 00:14:17,400 --> 00:14:21,560 Speaker 1: not gone to college. They got a lawyer to bring 249 00:14:21,600 --> 00:14:25,560 Speaker 1: an environmental impact statement case first of all, and the 250 00:14:25,840 --> 00:14:28,520 Speaker 1: government agency, we don't have to do an impact statement 251 00:14:28,600 --> 00:14:33,840 Speaker 1: because we're an emergency agency or something. Uh. They went 252 00:14:33,880 --> 00:14:37,040 Speaker 1: to court and they got an injunction. So for sixteen months, 253 00:14:37,920 --> 00:14:42,040 Speaker 1: the Tennessee Valley Authority had to prepare an environmental impact statement. 254 00:14:42,880 --> 00:14:46,360 Speaker 1: But once you do that, it's a procedure. They've they've 255 00:14:46,400 --> 00:14:50,000 Speaker 1: done the procedure, they can go ahead and flood the valley. 256 00:14:50,120 --> 00:14:53,920 Speaker 1: Um even though the farmers said, the valley, the agriculture, 257 00:14:54,000 --> 00:14:57,920 Speaker 1: the tourism, the history is worth much more than than 258 00:14:58,080 --> 00:15:02,680 Speaker 1: the last most marginal dam. But once they lost, they 259 00:15:02,680 --> 00:15:05,760 Speaker 1: had about given up. And then suddenly this little fish 260 00:15:05,840 --> 00:15:09,960 Speaker 1: was discovered, and the guy who discovered it was in 261 00:15:09,960 --> 00:15:13,480 Speaker 1: the middle of a river. He bent over, and the shallow, beautiful, 262 00:15:13,600 --> 00:15:15,880 Speaker 1: clear river he picked up this fish in his fingers. 263 00:15:16,600 --> 00:15:18,040 Speaker 1: Then he walked over to the bank and he said 264 00:15:18,080 --> 00:15:21,160 Speaker 1: to the farmer, this is an endangered fish and this 265 00:15:21,520 --> 00:15:27,920 Speaker 1: might save your farms. And so they basically carried the case. 266 00:15:28,280 --> 00:15:31,400 Speaker 1: My students and I did the law of it, and 267 00:15:31,480 --> 00:15:35,080 Speaker 1: we had a local attorney on the trial as well. 268 00:15:35,600 --> 00:15:39,960 Speaker 1: But the farmers, they went to Washington. They testified, this 269 00:15:40,080 --> 00:15:46,120 Speaker 1: was grassroots democracy, an incredible story. And then you know, 270 00:15:46,280 --> 00:15:48,560 Speaker 1: we won in the Supreme Court. Tell me how it 271 00:15:48,600 --> 00:15:53,160 Speaker 1: got to the Supreme Court. Well, at trial, the judge 272 00:15:53,560 --> 00:15:57,840 Speaker 1: in Tennessee, of course, decided in favor of the Tennessee 273 00:15:57,880 --> 00:16:02,120 Speaker 1: Valley Authority, but he said, this dam is going to 274 00:16:02,240 --> 00:16:04,840 Speaker 1: jeopardize the survival of the fish and it's going to 275 00:16:04,920 --> 00:16:07,960 Speaker 1: destroy its natural habitat, but I'm not going to stop it. 276 00:16:08,120 --> 00:16:10,080 Speaker 1: And then in the Sixth Circuit Court of Appeal said, 277 00:16:10,120 --> 00:16:14,080 Speaker 1: excuse me, but those are both separate violations of the 278 00:16:14,160 --> 00:16:19,000 Speaker 1: Endangered Species Act. So they stopped the project, and the 279 00:16:19,040 --> 00:16:21,600 Speaker 1: agency took it to the Supreme Court of the United States, 280 00:16:21,880 --> 00:16:25,760 Speaker 1: and the Supreme Court said, well, Congress said, you cannot 281 00:16:25,800 --> 00:16:29,800 Speaker 1: destroy an endangered species or destroy its habitat if you're 282 00:16:29,840 --> 00:16:33,040 Speaker 1: a federal agency. Meanwhile, Of course, there was a firestorm 283 00:16:33,160 --> 00:16:37,840 Speaker 1: going because this is the only law that most citizens 284 00:16:37,880 --> 00:16:42,000 Speaker 1: could bring a suit for that would question the rationality 285 00:16:42,040 --> 00:16:44,080 Speaker 1: of a project. Normally, all they have to do is 286 00:16:44,080 --> 00:16:47,240 Speaker 1: do the paperwork. That's what an environmental impact statement was. 287 00:16:47,800 --> 00:16:51,920 Speaker 1: So eventually, after the Supreme Court there was a cabinet 288 00:16:52,040 --> 00:16:56,280 Speaker 1: level economic study about what was worth more the river 289 00:16:56,400 --> 00:17:00,160 Speaker 1: development that the farmers wanted, or the dam develop but 290 00:17:00,560 --> 00:17:03,480 Speaker 1: that the agency wanted. I mean, this was the God Committee, 291 00:17:03,520 --> 00:17:07,120 Speaker 1: is an extraordinary tribunal that most people don't know about. Unanimously, 292 00:17:07,200 --> 00:17:10,000 Speaker 1: they said the dam was never worth building in the 293 00:17:10,040 --> 00:17:13,360 Speaker 1: first place, and it isn't worth completing because the river 294 00:17:13,840 --> 00:17:18,200 Speaker 1: with agriculture, with the historical stuff, with tourism, with an 295 00:17:18,200 --> 00:17:22,760 Speaker 1: industrial park. The farmers really made an amazingly good argument, 296 00:17:23,359 --> 00:17:28,240 Speaker 1: and so it was vetoed. And then in Congress, the 297 00:17:28,400 --> 00:17:31,439 Speaker 1: industries that were worried about the Endangered Species Act and 298 00:17:31,480 --> 00:17:34,800 Speaker 1: the government agencies that build dams were able to change 299 00:17:34,840 --> 00:17:39,119 Speaker 1: the law. The river died and the fish was wiped 300 00:17:39,160 --> 00:17:44,320 Speaker 1: out in its major natural habitat. It was really heartbreaking 301 00:17:44,359 --> 00:17:47,840 Speaker 1: politics because every member of Congress got a message from 302 00:17:47,880 --> 00:17:52,240 Speaker 1: the Department of Interior and this high level committee saying 303 00:17:53,320 --> 00:17:57,160 Speaker 1: this dam will destroy more than it will ever create. 304 00:17:58,000 --> 00:18:04,760 Speaker 1: But America didn't know that because the firestorm of political 305 00:18:04,880 --> 00:18:09,040 Speaker 1: rhetoric was all, you know, stupid little fish, gigantic hydro 306 00:18:09,119 --> 00:18:11,919 Speaker 1: electric dam. The dam is a tiny little dam and 307 00:18:11,920 --> 00:18:16,080 Speaker 1: it's not a hydro dam. And the cynical environmentalists who 308 00:18:16,160 --> 00:18:19,600 Speaker 1: don't care about the fish, well, you know, we care 309 00:18:19,720 --> 00:18:22,840 Speaker 1: about all living things, and in this case, this living 310 00:18:22,880 --> 00:18:26,520 Speaker 1: thing was connected to economic values, and so it was 311 00:18:26,600 --> 00:18:30,440 Speaker 1: heartbreaking to lose the Little Tennessee River. People were coming 312 00:18:30,480 --> 00:18:33,119 Speaker 1: from hundreds of miles away to fish this place before 313 00:18:33,119 --> 00:18:38,320 Speaker 1: it died. Who relocated the fish? Well, once a species 314 00:18:38,600 --> 00:18:42,520 Speaker 1: is endangered, if Congress has said you cannot save it 315 00:18:42,720 --> 00:18:45,600 Speaker 1: in its natural habitat as they said here, then the 316 00:18:45,640 --> 00:18:49,760 Speaker 1: Department of Interior put together a recovery team and they said, well, 317 00:18:49,800 --> 00:18:52,440 Speaker 1: what can we do to keep the species from dying out? 318 00:18:53,040 --> 00:18:56,919 Speaker 1: And working with tv A, and t v A said okay, 319 00:18:56,960 --> 00:18:59,680 Speaker 1: where can we transplant it? The Department of Interior worked 320 00:18:59,680 --> 00:19:03,080 Speaker 1: out plan and so they put it in several rivers 321 00:19:03,119 --> 00:19:06,080 Speaker 1: that weren't ideal. And so that's part of this story 322 00:19:06,119 --> 00:19:08,439 Speaker 1: that you know, some people say, oh, well, when you 323 00:19:08,440 --> 00:19:11,439 Speaker 1: have an endangered meansy to transplant it somewhere else. It 324 00:19:11,560 --> 00:19:16,080 Speaker 1: took forty years. It took forty years. But the transplant 325 00:19:16,160 --> 00:19:21,000 Speaker 1: now seems to be successful. But to fallback transplantation is 326 00:19:21,320 --> 00:19:23,920 Speaker 1: you know, it's second best. No, it's not even second best, 327 00:19:23,960 --> 00:19:26,879 Speaker 1: it's third best. First best is to keep a species, 328 00:19:27,240 --> 00:19:30,679 Speaker 1: to conserve it in its natural habitat second is to 329 00:19:30,680 --> 00:19:33,040 Speaker 1: put it into a place where it can live without 330 00:19:33,119 --> 00:19:38,040 Speaker 1: any more human investment, human actions. But the third best, 331 00:19:38,080 --> 00:19:41,560 Speaker 1: I guess is what they did because these rivers in 332 00:19:41,600 --> 00:19:45,320 Speaker 1: the summertime got hot, didn't have enough oxygen. So t 333 00:19:45,480 --> 00:19:48,800 Speaker 1: v A now has to pump oxygen into the transplant 334 00:19:48,880 --> 00:19:53,280 Speaker 1: rivers to keep the fish alive. And they're pulsing their 335 00:19:53,400 --> 00:19:57,800 Speaker 1: dams to wash the mud away so that the fish 336 00:19:57,880 --> 00:20:03,040 Speaker 1: can have spawning beds, egg and children in the clean 337 00:20:03,400 --> 00:20:07,760 Speaker 1: gravel below some of these dams. So the fish are surviving, 338 00:20:08,040 --> 00:20:14,000 Speaker 1: but they depend on a government agency maintaining oxygen pumping 339 00:20:14,040 --> 00:20:21,240 Speaker 1: into the water and a special flushing water pressure process 340 00:20:21,280 --> 00:20:24,520 Speaker 1: and the dams. And that's not ideal. You you want 341 00:20:24,560 --> 00:20:30,320 Speaker 1: a transplant that doesn't require human support forever. That's what 342 00:20:30,359 --> 00:20:33,280 Speaker 1: we've got. The government said it's no longer in danger 343 00:20:33,280 --> 00:20:36,000 Speaker 1: of extinction. Is that true or not true? That's right. 344 00:20:36,080 --> 00:20:40,119 Speaker 1: The scientist said, if the t v A keeps putting 345 00:20:40,160 --> 00:20:44,560 Speaker 1: liquid oxygen into the water and keeps flushing the dams 346 00:20:44,560 --> 00:20:46,760 Speaker 1: in a way it hadn't done before so as to 347 00:20:46,920 --> 00:20:50,439 Speaker 1: clean alternative rivers where the fish could survive, then the 348 00:20:50,520 --> 00:20:54,639 Speaker 1: fish can survive. It's no longer endangered. And that's science, 349 00:20:54,880 --> 00:20:58,520 Speaker 1: and I believe it's true. It's just we have to 350 00:20:58,600 --> 00:21:04,560 Speaker 1: be sure that those measures to conserve the species go 351 00:21:04,720 --> 00:21:09,840 Speaker 1: on how long? Forever? Forever? So wouldn't it have been 352 00:21:09,880 --> 00:21:13,240 Speaker 1: better than to leave it on the endangered species list? 353 00:21:13,280 --> 00:21:16,840 Speaker 1: Why did you file a petition to delist it? That's 354 00:21:16,920 --> 00:21:24,399 Speaker 1: a really tough question, and there complicated answers and scientific terms. 355 00:21:24,800 --> 00:21:31,600 Speaker 1: It was no longer endangered because the agencies were pumping 356 00:21:31,600 --> 00:21:36,320 Speaker 1: oxygen and blowing the water clean. So, but this more 357 00:21:36,400 --> 00:21:41,359 Speaker 1: to it. The prior federal administration was attacking the Endangered 358 00:21:41,400 --> 00:21:45,479 Speaker 1: Species Act. It was cutting regulations this way and that 359 00:21:45,480 --> 00:21:50,920 Speaker 1: that the protected species. And we started hearing that there 360 00:21:51,000 --> 00:21:56,919 Speaker 1: was a specific plan to delist the snail darter in 361 00:21:56,960 --> 00:22:01,280 Speaker 1: a way that would not protect it, and so it's 362 00:22:01,400 --> 00:22:07,679 Speaker 1: it's sort of preemptive. We don't like transplantation. But um, 363 00:22:07,720 --> 00:22:13,320 Speaker 1: by filing the petition ourselves, we sort of get special standing. 364 00:22:14,000 --> 00:22:20,680 Speaker 1: Two make sure that those measures continue, that the delisting 365 00:22:20,760 --> 00:22:26,119 Speaker 1: regulation will require those actions to go on forever. And 366 00:22:26,800 --> 00:22:30,879 Speaker 1: you know, if there's ever a double cross, if the 367 00:22:31,200 --> 00:22:37,720 Speaker 1: agency stopped protecting the fish, we will be able under 368 00:22:37,720 --> 00:22:43,600 Speaker 1: the delisting regulation immediately to file for emergency relisting. And 369 00:22:44,640 --> 00:22:48,359 Speaker 1: it's it's unfortunate that we have to talk about it 370 00:22:48,400 --> 00:22:54,159 Speaker 1: in those terms, but I'm thinking that in the circumstances 371 00:22:54,240 --> 00:22:56,720 Speaker 1: it was going to be delisted by the prior administration. 372 00:22:57,000 --> 00:23:00,520 Speaker 1: We filed in July, there was still a year and 373 00:23:00,600 --> 00:23:06,200 Speaker 1: a half of the prior administration or more, and the 374 00:23:06,240 --> 00:23:09,560 Speaker 1: safest thing to do was to try to be part 375 00:23:09,600 --> 00:23:14,320 Speaker 1: of the process to make sure that maintenance of the 376 00:23:14,400 --> 00:23:20,920 Speaker 1: protections could could be assured. What did environmentalists learned from 377 00:23:21,040 --> 00:23:26,120 Speaker 1: the whole saga of the snail darter? Well, it's it's 378 00:23:26,640 --> 00:23:33,080 Speaker 1: it's interesting. In spite of the tremendous criticism that was 379 00:23:33,200 --> 00:23:37,879 Speaker 1: poured against the snail darter, I mean it really was. 380 00:23:39,240 --> 00:23:43,880 Speaker 1: We were called fringe lunatics and Russia Limball called us 381 00:23:43,880 --> 00:23:49,320 Speaker 1: homo socialists. I mean, protecting a stupid little fish against 382 00:23:49,320 --> 00:23:53,639 Speaker 1: a gigantic hydro electric dam. Of course that wasn't the case. 383 00:23:54,200 --> 00:23:58,199 Speaker 1: But this is the point. Even when it was thought 384 00:23:58,240 --> 00:24:03,320 Speaker 1: to be an extreme as the courts enforced the law. 385 00:24:04,480 --> 00:24:09,760 Speaker 1: And that is a precedent that makes people pay attention 386 00:24:09,840 --> 00:24:12,840 Speaker 1: to the law even if they don't like it, if 387 00:24:12,880 --> 00:24:16,359 Speaker 1: they know that even in that case, the courts enforced it. 388 00:24:16,640 --> 00:24:20,440 Speaker 1: So so there is that a really good precedent came 389 00:24:20,520 --> 00:24:24,520 Speaker 1: from it. And the species, you know, the Endangered Species 390 00:24:24,520 --> 00:24:29,080 Speaker 1: Act is recovered a fair number of species over the years. 391 00:24:29,119 --> 00:24:33,639 Speaker 1: The Act works. The Clean Water Act works because the 392 00:24:33,720 --> 00:24:35,840 Speaker 1: water and the rivers where they put the fish is 393 00:24:35,920 --> 00:24:40,679 Speaker 1: cleaner than it was um back forty years ago. So 394 00:24:40,840 --> 00:24:44,919 Speaker 1: so it's one of those things where you make the 395 00:24:45,000 --> 00:24:49,639 Speaker 1: best decision you can in the circumstances when the really 396 00:24:50,040 --> 00:24:54,200 Speaker 1: best solution for everyone, for the farmers, for fisherman, for 397 00:24:54,280 --> 00:24:57,400 Speaker 1: the Cherokee Indians that had their sacred sites in this 398 00:24:57,520 --> 00:25:02,399 Speaker 1: river area, and for the fish. You when you lose 399 00:25:02,440 --> 00:25:07,280 Speaker 1: it there, you do the best you can somewhere else. Um. 400 00:25:07,320 --> 00:25:10,320 Speaker 1: But the president in the law is a good strong one. 401 00:25:11,960 --> 00:25:15,720 Speaker 1: Tell me what the precedent is and whether you think 402 00:25:15,840 --> 00:25:22,040 Speaker 1: this Supreme Court would recognize that precedent today. Well, I mean, 403 00:25:22,280 --> 00:25:28,280 Speaker 1: that's of course a complicated question. The present Supreme Court says, 404 00:25:28,560 --> 00:25:33,119 Speaker 1: the members who have been put there recently say that 405 00:25:33,800 --> 00:25:39,280 Speaker 1: they generally follow precedent. They don't overturn prior Supreme Court decisions. 406 00:25:39,800 --> 00:25:42,280 Speaker 1: Now we'll see with Roe versus Way, that will be 407 00:25:42,320 --> 00:25:46,040 Speaker 1: of course a question. And but this was such a 408 00:25:46,080 --> 00:25:50,600 Speaker 1: declaratory decision by the Chief Justice of the Supreme Court, 409 00:25:50,640 --> 00:25:58,560 Speaker 1: Warren Burger, saying that the Endangered Species Act represents institutionalized caution. 410 00:25:59,400 --> 00:26:07,119 Speaker 1: You don't destroy a species when if there's any possible alternative, 411 00:26:07,760 --> 00:26:11,200 Speaker 1: and of course in most of these cases there are alternatives. 412 00:26:11,960 --> 00:26:16,480 Speaker 1: The president is that the courts will enforce the protection 413 00:26:16,640 --> 00:26:22,560 Speaker 1: of the species and of its habitat um. And that's 414 00:26:22,560 --> 00:26:28,800 Speaker 1: really something. It's it's cited all the time for the 415 00:26:28,920 --> 00:26:36,360 Speaker 1: importance of not having a court overturn a law, and um, 416 00:26:37,119 --> 00:26:40,920 Speaker 1: it's been used to protect many other species. But it's 417 00:26:40,920 --> 00:26:44,840 Speaker 1: also been used in other settings too, where where there's 418 00:26:44,840 --> 00:26:47,120 Speaker 1: a question of whether the Water Pollution Act is going 419 00:26:47,119 --> 00:26:50,840 Speaker 1: to be Well, you cite t V a versus Hill, 420 00:26:51,680 --> 00:26:56,480 Speaker 1: the Stale Darter case, and courts say, oh, yeah, that's 421 00:26:56,480 --> 00:26:59,359 Speaker 1: that extreme case where the courts just enforced the law. 422 00:27:00,240 --> 00:27:03,360 Speaker 1: I guess that's what the law hust be. And if 423 00:27:03,400 --> 00:27:07,879 Speaker 1: Congress is going to change it, and you know, Congress 424 00:27:07,960 --> 00:27:13,719 Speaker 1: is always a question. It's it's but, but you know, 425 00:27:14,359 --> 00:27:19,879 Speaker 1: the Congress doesn't easily change the law. Uh, it holds 426 00:27:19,880 --> 00:27:25,120 Speaker 1: things together and over time, very often endangered species are 427 00:27:25,240 --> 00:27:31,160 Speaker 1: sensitive little indicators of human importance, of human economics as 428 00:27:31,200 --> 00:27:36,200 Speaker 1: well as ecology. The the plan that the farmers did 429 00:27:37,040 --> 00:27:41,320 Speaker 1: for the river had a tourism route from the Interstates, 430 00:27:41,359 --> 00:27:44,440 Speaker 1: going up through the valley, through these historic areas, through 431 00:27:44,440 --> 00:27:49,000 Speaker 1: the farmland into the Smoky's Park it which gets eleven 432 00:27:49,000 --> 00:27:53,360 Speaker 1: million people a year. It would have been an incredible 433 00:27:53,400 --> 00:27:57,320 Speaker 1: money maker for the local region instead of just one 434 00:27:57,359 --> 00:28:02,480 Speaker 1: more damn the dam which is already getting polluted with algae. 435 00:28:02,640 --> 00:28:05,960 Speaker 1: Thanks for being the Bloomberg Law Show. That's Zig Platter, 436 00:28:06,040 --> 00:28:09,679 Speaker 1: a professor at Boston College Law School. And that's it 437 00:28:09,760 --> 00:28:12,280 Speaker 1: for this edition of The Bloomberg Law Show. Remember you 438 00:28:12,280 --> 00:28:14,600 Speaker 1: can always at the latest legal news on our Bloomberg 439 00:28:14,640 --> 00:28:17,960 Speaker 1: Law Podcast. You can find them on Apple Podcasts, Spotify, 440 00:28:18,119 --> 00:28:22,720 Speaker 1: and at www dot Bloomberg dot com. Slash podcast Last Law. 441 00:28:23,200 --> 00:28:25,520 Speaker 1: I'm John Rosso and you're listening to Bloomberg,