WEBVTT - Trump Electors Targeted in Georgia Criminal Probe

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<v Speaker 1>This is Bloomberg Law with June Brusso from Bloomberg Radio, Fred,

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<v Speaker 1>what are we gonna do? We won the election and

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<v Speaker 1>it's not fair to take it away from us like this.

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<v Speaker 1>That now infamous phone call from former President Donald Trump

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<v Speaker 1>to the Georgia's Secretary of State to find just enough

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<v Speaker 1>votes to flip the state to him is at the

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<v Speaker 1>center of the investigation by the Fulton County District Attorney

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<v Speaker 1>into criminal interference in the presidential election. In May, District

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<v Speaker 1>Attorney Fannie Willis took the unusual step of requesting a

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<v Speaker 1>special grand jury, and in an interview with CNN, she

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<v Speaker 1>was clear about her intent to cast a wide net,

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<v Speaker 1>including this election of a fake slate of Trump electors

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<v Speaker 1>in Georgia. We're gonna look at anything connected with interference

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<v Speaker 1>with the election, and so I've allowed that to be

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<v Speaker 1>a broad scope, not just the president's phone call that

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<v Speaker 1>you played there, but other things that indicate that there

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<v Speaker 1>may have been interference with that election, to include fake electorate.

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<v Speaker 1>Now it appears she may be closer to announcing charges.

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<v Speaker 1>Willis has sent so called target letters to sixteen Republicans

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<v Speaker 1>who served as fake Trump electors to warn them that

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<v Speaker 1>they could be indicted. My guest is Michael Moore, the

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<v Speaker 1>former U S Attorney for the Middle District of Georgia

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<v Speaker 1>and a partner with Moore Hall. Did willis really have

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<v Speaker 1>to call a special grand jury because that special grand

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<v Speaker 1>jury can indict? Well, she's using the special grand jury

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<v Speaker 1>because she's limited on what she can do investigative wives

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<v Speaker 1>with a regular criminal grand jury in Georgia. So in Georgia,

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<v Speaker 1>the criminal grand jury, the rule is that you have

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<v Speaker 1>to present them with an indictment. We would call it

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<v Speaker 1>laying an indictment on the table before the grand jury,

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<v Speaker 1>and that would mean you had already determined which parties

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<v Speaker 1>you were going to ask to and diet what charges

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<v Speaker 1>specifically you're going to ask to die at all. And

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<v Speaker 1>she didn't have that information yet, and she could have

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<v Speaker 1>done that on some limited charges and sort of the

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<v Speaker 1>target approach, But here she's using the special grand jury

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<v Speaker 1>statue to allow her to investigate. And that's sort of

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<v Speaker 1>the difference in federal and state grand juries. The federal

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<v Speaker 1>grand jury has the party issues to penas, to investigate cases,

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<v Speaker 1>to call witnesses before them as they appropriate, and the

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<v Speaker 1>special grand jury mirrors a little bit of the federal

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<v Speaker 1>grand jury. The only difference, as you mentioned, is that

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<v Speaker 1>this special grand jury does not have the power under

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<v Speaker 1>the state statue to issue a diet. They would send

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<v Speaker 1>the issue a report or a recommendation that'd be given

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<v Speaker 1>to her answer the court, and she would then make

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<v Speaker 1>a decision with orne. She then wants to present a

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<v Speaker 1>limited case to a regular criminal grand jury. So she's

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<v Speaker 1>using this to gather information, to bring in witnesses who

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<v Speaker 1>may have been relurked to testify, to gather documents and

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<v Speaker 1>text messages, this kind of thing, and then she'll ultial

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<v Speaker 1>in making decision whether or she wants to present that

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<v Speaker 1>to a to a regular criminal granjeur. Michael, what does

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<v Speaker 1>it tell you that Willis sent these target letters. It's

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<v Speaker 1>an interesting play of events right now. That is, I

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<v Speaker 1>think there's some interest in this fake elector scheme, and

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<v Speaker 1>she has been digging into that. You wouldn't have to

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<v Speaker 1>look very hard to feel like that she's in fact

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<v Speaker 1>expanding the scoop of what could have been a very

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<v Speaker 1>narrowly tailored case, a clean cut case against Trump if

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<v Speaker 1>she wanted to do it, based on the telephone called Raffersburg.

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<v Speaker 1>But it appears that she's broadening it out to other

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<v Speaker 1>people maybe in that orbit or closer to the inner circle,

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<v Speaker 1>and dealing with the efforts to basically avoid out the

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<v Speaker 1>electors who were from Georgia and to avoid apple votes

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<v Speaker 1>that have been cast here. So I'm not surprised to

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<v Speaker 1>see or do that. It's a little interesting that she

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<v Speaker 1>would do it in such a public way, especially given

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<v Speaker 1>some of the political alliances that she has, And I

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<v Speaker 1>think that may come into play here that she has

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<v Speaker 1>actually sent out to notice in the middle of a

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<v Speaker 1>peated campaign season, because typically you don't always see a

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<v Speaker 1>prosecutor be quite as public about those types of things,

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<v Speaker 1>and I think for a good reason. So I think

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<v Speaker 1>she's clearly broad in the scoop. I think she may

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<v Speaker 1>be fishing with a little bit too broad and met

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<v Speaker 1>right Naviga. Sometimes that's where you get caught, you tangled

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<v Speaker 1>up in your own men. And I think some of

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<v Speaker 1>the public comments about the target letters who they went

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<v Speaker 1>to in the time of the may open rose some

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<v Speaker 1>questions down the road a public courts. She last week

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<v Speaker 1>subpoenaed members of Trump's inner circle, former lawyer Rudy Giuliani,

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<v Speaker 1>Senator Lindsey Graham's six other attorneys, and Graham has already

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<v Speaker 1>indicated that he's going to fight it. So this will

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<v Speaker 1>drag out. If she's trying to get people from out

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<v Speaker 1>of state, it will. And I think you know there

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<v Speaker 1>you've seen I think it was yesterday or the day before,

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<v Speaker 1>Georgia Congressman. And he also now has served notice that

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<v Speaker 1>he intends to have the challenge heard in the federal court.

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<v Speaker 1>I think there's a federal court here and set up

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<v Speaker 1>for next week has been scheduled there on the Chavison

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<v Speaker 1>subpoenas you to him. There's a specific provision under the

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<v Speaker 1>federal statutes that allows for sort of a high ranking

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<v Speaker 1>member of the executive brand, if there's a civil or

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<v Speaker 1>criminal action in which their allegations against it, you can

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<v Speaker 1>serve notice and assets case be transferred to the federal court.

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<v Speaker 1>And I think you're gonna see them taking advantage of that.

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<v Speaker 1>And it's a good process in the sense that sort

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<v Speaker 1>of limits overreach by the as who may be aggressive.

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<v Speaker 1>We're not saying she is in this case, but as

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<v Speaker 1>a general principle, it's a sort of a safety valve there.

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<v Speaker 1>But it also is naturally going to drag out the time,

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<v Speaker 1>and her grandjeury is authorized. The special purpose Granders author

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<v Speaker 1>us to convene for about a year. But you also

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<v Speaker 1>have to be thinking that we're getting into election seasons,

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<v Speaker 1>and prosecutors must be they must be conscious of how

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<v Speaker 1>the actions that they undertake may be perceived around election time.

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<v Speaker 1>You simply cannot if the goal is to preserve the

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<v Speaker 1>confidence in the court system and in the prosecutor's decisions

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<v Speaker 1>and then charge of decisions that are made, you cannot

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<v Speaker 1>be seen is somebody who's attempted to be be used the

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<v Speaker 1>criminal process to influence the outcome of an election. You'll

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<v Speaker 1>remember that was one of the big issues with Trump

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<v Speaker 1>and the Department of Justice. I mean he wanted to

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<v Speaker 1>use the department sort of look at political enemies. Well,

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<v Speaker 1>you can't do that as a prosecutor. I mean, they're

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<v Speaker 1>bar implications, their coat of ethics implications. And so the

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<v Speaker 1>timing may become a factor for her, and the law

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<v Speaker 1>ofness goes out whether we're in the federal court having

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<v Speaker 1>federal judges rule on motions to quash that may be

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<v Speaker 1>found for certain sutainas, or whether or not we're in

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<v Speaker 1>the appellate court system. Because their privilege issues and a

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<v Speaker 1>turning client protection issues that come up. Then that is

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<v Speaker 1>maxually going to delay ultimately this this special purpose grand

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<v Speaker 1>jury issue, and they report thinking about all the evidence

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<v Speaker 1>she started out with, including that taped phone call, and

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<v Speaker 1>now she also has the testimony she's taken from state officials.

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<v Speaker 1>I'm wondering why it's taking so long for her to

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<v Speaker 1>decide whether or not to indict Trump. Sure, and I

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<v Speaker 1>think that's a question is well placed. I don't think

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<v Speaker 1>there's any questions she could have based on the tape

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<v Speaker 1>recording as she had, which is for two of us.

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<v Speaker 1>I mean, how many times do you get bostly recorded confession.

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<v Speaker 1>She could have tried to bring charges forward in a

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<v Speaker 1>regular ranger without the nief the special grander. She simply

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<v Speaker 1>could have, you know, in between two regular alleged felons.

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<v Speaker 1>She could have stuck the truck in Nightinga right in

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<v Speaker 1>the middle of it, and and the grudgery could decided

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<v Speaker 1>with him out there going to issue the indictment. You know,

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<v Speaker 1>I understand that she may have had some reticence on

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<v Speaker 1>the part of Rappensburger, who was at the time in

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<v Speaker 1>the middle of a heated primary battle and he may

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<v Speaker 1>have been fact and reticence to come forward because it

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<v Speaker 1>would have appeared that he was cooperating against the former president.

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<v Speaker 1>But she had the recording, and so he tells me

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<v Speaker 1>that she's simply broadened it out. She's looking for other

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<v Speaker 1>people who may have been involved in the planning or

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<v Speaker 1>the efforts to overturn at least the vote totals in Georgia,

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<v Speaker 1>and making it more of a guess, more of a

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<v Speaker 1>spider web and which she can catch more flight as

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<v Speaker 1>opposed to support of the clean cut case. At the

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<v Speaker 1>end of the day, I don't know if that have

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<v Speaker 1>been the right call. And again I don't I don't

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<v Speaker 1>want to second guess everything she's doing. I mean, she

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<v Speaker 1>may have and does have access to facts and evidence

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<v Speaker 1>that I don't have and the pelic doesn't have. But

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<v Speaker 1>as you look at it, I mean, one principle usually

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<v Speaker 1>remains true, and that is that when you keep it simple,

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<v Speaker 1>it often makes for a better case. It's easier to prove,

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<v Speaker 1>it takes less confusion for a jury, it creates less defenses.

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<v Speaker 1>It also creates less pellet issues that would be often

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<v Speaker 1>decided about pelt courts, which in Georgia as you may

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<v Speaker 1>know our pelt courts are basically controlled by Republican appointees

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<v Speaker 1>are good judges and friends of behind and such. But

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<v Speaker 1>you have to wonder about the survival of some of

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<v Speaker 1>these allegations that may be pushing an envelope a little

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<v Speaker 1>bit if they got to the a Pelic court. In

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<v Speaker 1>recent court filing, she has indicated I understand that charges

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<v Speaker 1>including racketeering and conspiracy are being considered. That would become

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<v Speaker 1>a really complicated case, wouldn't it. It's an extraordinary complicated case.

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<v Speaker 1>And you think about racketeering and conspiracy cases when you

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<v Speaker 1>think about organized crime rings, and you know, if you're

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<v Speaker 1>trying to bring down a mafia family in New York,

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<v Speaker 1>he might be talking about racketeering cases. So you're bringing

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<v Speaker 1>it down a drug distribution enterprise somewhere. You think about

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<v Speaker 1>reco cases um conspiracy cases, and so it is legally permissible,

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<v Speaker 1>I will say in in circumstances, the question of is

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<v Speaker 1>whether or not it's wise In a case like this,

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<v Speaker 1>there are many prosecutors who will tell you that you

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<v Speaker 1>should not consider sort of the policy implications and what

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<v Speaker 1>may be out there, other than just following the fact

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<v Speaker 1>and following evidence. We're a little bit in uncharted waters here, No,

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<v Speaker 1>not a little bit. We just from off the Deacon

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<v Speaker 1>and uncharted water. So that is that, you know, we're

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<v Speaker 1>talking about whether or not an indictment is going to

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<v Speaker 1>issue for a former president for conduct that he is

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<v Speaker 1>alleged you have committed while in fact he was president

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<v Speaker 1>out his states, and you have to consider that, and

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<v Speaker 1>you have to consider what it means for the country,

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<v Speaker 1>for the future people who hold that office. And again,

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<v Speaker 1>I think the appellate courts were then we're talking about

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<v Speaker 1>the Supreme Court of Georgia, where we're talking about the

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<v Speaker 1>Eleventh Circuit Court of Appeals, a federal quarter, where we're

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<v Speaker 1>talking about the United States Supreme Court, I think they're

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<v Speaker 1>gonna be cognitive. The fact that this could be setting

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<v Speaker 1>a president that is dangerous. And so when you overreach

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<v Speaker 1>and when you sort of fish with too big a net,

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<v Speaker 1>you bring a lot of these issues at play. If

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<v Speaker 1>you had taken a simple approach and you said, look,

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<v Speaker 1>as a prosecutor, I feel like this is called Rapidsburger

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<v Speaker 1>was in fact illegal, that it was an effort to

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<v Speaker 1>put pressure on the elections official, that it was an

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<v Speaker 1>effort to solicit somebody to commit election fraud and this

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<v Speaker 1>is a very clear case. Or you say, well, look

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<v Speaker 1>there's evidence of witness tampering. And I'm thinking now about

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<v Speaker 1>the prominent justice looking at if in fact allegations coming

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<v Speaker 1>out from a general cist committing or true. Do you

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<v Speaker 1>look at those and so that was conduct committed post presidency,

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<v Speaker 1>that's something that may not have those same policy implications

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<v Speaker 1>going forward. Those soon to me to be much cleaner

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<v Speaker 1>cases for appellate course to the side, and I think

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<v Speaker 1>maybe less dangerous as a president going forward. Again, we've

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<v Speaker 1>not faced this, and I can tell you State d

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<v Speaker 1>a's don't face this where they have to sit down

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<v Speaker 1>and make a decision whether or not they're going to

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<v Speaker 1>die upon the president and so um, it's a little

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<v Speaker 1>bit maybe some decisions may be a little bit made

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<v Speaker 1>on the fly. I think there's no text put to

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<v Speaker 1>go back and look at this the side, but this

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<v Speaker 1>is how we ought to do it, this is what

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<v Speaker 1>we're going to do. I just worry sometimes it's complicating

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<v Speaker 1>a case. As I say, not only gives issues for

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<v Speaker 1>the defense and the appellate courts, it makes it more

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<v Speaker 1>confusing for a jury and it brings in other factors

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<v Speaker 1>that I think in reality we have to consider. Aside

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<v Speaker 1>from that, does she have the chops to prosecute a

0:11:35.800 --> 0:11:39.520
<v Speaker 1>former president because we've seen that the new Manhattan d

0:11:39.679 --> 0:11:42.600
<v Speaker 1>A doesn't seem too he backed off that case as

0:11:42.600 --> 0:11:46.080
<v Speaker 1>soon as he got into office. Well, she's a good lawyer,

0:11:46.200 --> 0:11:49.360
<v Speaker 1>she's a good prosecutor. She has experienced. Again, not the

0:11:49.400 --> 0:11:52.000
<v Speaker 1>second guessing her at all. If you think about it

0:11:52.040 --> 0:11:54.880
<v Speaker 1>from sort of a general rule or general principle, I

0:11:54.880 --> 0:11:57.120
<v Speaker 1>think it's better if we talked about the Department of

0:11:57.200 --> 0:11:59.360
<v Speaker 1>Justice acting when it comes to a case like this

0:11:59.480 --> 0:12:01.480
<v Speaker 1>than just a local be a. I mean, think about

0:12:01.559 --> 0:12:05.199
<v Speaker 1>what happens if Joe Biden goes to Texas and he

0:12:05.240 --> 0:12:07.880
<v Speaker 1>makes a speech near the border about America wealth and

0:12:07.960 --> 0:12:10.360
<v Speaker 1>all people and all people ought to come and you know,

0:12:10.600 --> 0:12:13.400
<v Speaker 1>and then suddenly some local DA decides that they're going

0:12:13.440 --> 0:12:17.800
<v Speaker 1>to prosecute Joe Biden for solicited people to commit immigration

0:12:17.880 --> 0:12:21.240
<v Speaker 1>crimes or something. You know. That may sound extreme, but

0:12:21.320 --> 0:12:23.960
<v Speaker 1>weird extreme waters here, and so I think you have

0:12:24.040 --> 0:12:26.000
<v Speaker 1>to think about it that way. You know, the Congress

0:12:26.040 --> 0:12:28.120
<v Speaker 1>obviously they were the statute says that when this kind

0:12:28.120 --> 0:12:30.120
<v Speaker 1>of thing happens, you can ask that if we transferred

0:12:30.120 --> 0:12:31.959
<v Speaker 1>to the federal course, So that strikes me as a

0:12:32.000 --> 0:12:35.480
<v Speaker 1>place where this type of case is probably more appropriately heard.

0:12:35.760 --> 0:12:37.920
<v Speaker 1>The prosecutors have a duty to prosecute crimes within the

0:12:38.040 --> 0:12:41.000
<v Speaker 1>jurisdiction if they think that something is there. She clearly

0:12:41.040 --> 0:12:43.320
<v Speaker 1>has moved forward with some belief that she thinks there

0:12:43.360 --> 0:12:45.760
<v Speaker 1>may be evidence of a crime committed. But again, you

0:12:45.800 --> 0:12:49.360
<v Speaker 1>are talking about prosecuting for a state crime a formal

0:12:49.400 --> 0:12:52.440
<v Speaker 1>president for crimes that he committed while he was president

0:12:52.480 --> 0:12:54.880
<v Speaker 1>of the United States, and that we take Trump out

0:12:54.880 --> 0:12:57.160
<v Speaker 1>of it and bring in and you can choose, you know,

0:12:57.240 --> 0:13:00.480
<v Speaker 1>bring in whoever you believe was the most beloved prison history.

0:13:00.600 --> 0:13:03.160
<v Speaker 1>I'm sure you may find some state prosecutor somewhere who

0:13:03.200 --> 0:13:05.280
<v Speaker 1>disagreed with something that he had done. Would it be

0:13:05.320 --> 0:13:08.880
<v Speaker 1>appropriate for that state prosecutor to a dike that president

0:13:08.960 --> 0:13:11.240
<v Speaker 1>for crimes that he committed while he was president of

0:13:11.240 --> 0:13:13.200
<v Speaker 1>the United States? And that's a question I think that

0:13:13.520 --> 0:13:16.000
<v Speaker 1>is looming out because we have these kind of discussions.

0:13:16.160 --> 0:13:19.800
<v Speaker 1>A lot of people say that the Georgia investigation is

0:13:19.840 --> 0:13:23.960
<v Speaker 1>the most serious case facing Trump. Do you disagree with that? Then?

0:13:24.360 --> 0:13:26.760
<v Speaker 1>I disagree in the sense that I think a case

0:13:26.880 --> 0:13:29.040
<v Speaker 1>brought forward by the Department of Justice would be the

0:13:29.080 --> 0:13:31.480
<v Speaker 1>most serious case, no matter what that case may be.

0:13:31.640 --> 0:13:34.000
<v Speaker 1>And really the reason is this, I think the likel

0:13:34.040 --> 0:13:36.720
<v Speaker 1>here that you would ever find the former president sitting

0:13:36.760 --> 0:13:40.400
<v Speaker 1>in a Georgia penitentiary be slim or none. I just

0:13:40.480 --> 0:13:43.320
<v Speaker 1>don't think that's going to and even just logistics, just

0:13:43.400 --> 0:13:45.360
<v Speaker 1>because he would have been convicted of that crime with

0:13:45.480 --> 0:13:48.400
<v Speaker 1>former presidents that the private the Secret Services Texas, so

0:13:48.480 --> 0:13:50.640
<v Speaker 1>I don't think you're gonna find a secret service bucking

0:13:50.760 --> 0:13:52.800
<v Speaker 1>up with him, you know, at the state prison. And

0:13:52.840 --> 0:13:55.000
<v Speaker 1>I just don't think so happened. So when I think

0:13:55.040 --> 0:13:57.920
<v Speaker 1>about cases and whether or not they're serious, jail tip

0:13:58.040 --> 0:14:00.120
<v Speaker 1>sort of offer table, I do think there's self than

0:14:00.200 --> 0:14:02.680
<v Speaker 1>to be said about the message of his fins to

0:14:02.760 --> 0:14:05.960
<v Speaker 1>have the United States Department of Justice moved forward on

0:14:06.040 --> 0:14:09.120
<v Speaker 1>the case with career prosecutors that are to be a

0:14:09.200 --> 0:14:12.400
<v Speaker 1>political and free the allegations against a sense of the

0:14:12.480 --> 0:14:15.400
<v Speaker 1>chief executive of the United States. And I don't know

0:14:15.400 --> 0:14:17.880
<v Speaker 1>if they'll be able to produce the evidence to prove

0:14:17.960 --> 0:14:20.840
<v Speaker 1>their allegation or not, but if in fact they can

0:14:20.880 --> 0:14:24.880
<v Speaker 1>prove that either the former president ordered someone to try

0:14:24.880 --> 0:14:27.480
<v Speaker 1>to influence a witness or he himself tried to influence

0:14:27.480 --> 0:14:29.960
<v Speaker 1>a witness to this telephone call. They're able to tie

0:14:30.000 --> 0:14:33.200
<v Speaker 1>those ins together. I think that makes a pretty strong

0:14:33.640 --> 0:14:35.720
<v Speaker 1>rope that would be used to tie not around it.

0:14:36.240 --> 0:14:39.520
<v Speaker 1>That to me is conduct. Again, not to repeat myself,

0:14:39.520 --> 0:14:41.680
<v Speaker 1>but when I look at it, I think about conducts

0:14:41.720 --> 0:14:44.320
<v Speaker 1>that would be performed after it was president of the

0:14:44.400 --> 0:14:46.840
<v Speaker 1>United States. You know, we have an impeachment process that

0:14:47.120 --> 0:14:50.120
<v Speaker 1>is really supposed to clean up messes about the aptitude,

0:14:50.240 --> 0:14:52.120
<v Speaker 1>and we have a twenty put the amendment process. Just

0:14:52.160 --> 0:14:54.960
<v Speaker 1>because somebody is reckless while they're in office, or somebody

0:14:55.280 --> 0:14:58.240
<v Speaker 1>negigent while they're in office, or somebody is derelict, it

0:14:58.320 --> 0:15:00.960
<v Speaker 1>is part of his duties while they're office. That's why

0:15:01.040 --> 0:15:04.040
<v Speaker 1>we have the impeachment process for a president president. That's

0:15:04.040 --> 0:15:07.560
<v Speaker 1>why we have ah amendment process for the cabin to

0:15:07.600 --> 0:15:09.640
<v Speaker 1>come in if they think that there's been something here.

0:15:10.080 --> 0:15:12.480
<v Speaker 1>I think that, you know, looking back and based on

0:15:12.560 --> 0:15:14.560
<v Speaker 1>the evidence that we say, we could say at least

0:15:14.640 --> 0:15:17.360
<v Speaker 1>I will say hopefully, I think the Senate failed. I

0:15:17.360 --> 0:15:19.840
<v Speaker 1>think that they there was a clear evidence that would

0:15:19.840 --> 0:15:23.040
<v Speaker 1>have supported the conviction, but only impeachment charges. They didn't

0:15:23.040 --> 0:15:26.280
<v Speaker 1>do that, and that is our system. So we they're

0:15:26.320 --> 0:15:29.200
<v Speaker 1>just going to rely on state d as to do

0:15:29.320 --> 0:15:33.040
<v Speaker 1>the job that the Senate didn't do. And I would

0:15:33.080 --> 0:15:35.560
<v Speaker 1>just lean towards the fact that I think that charges

0:15:35.600 --> 0:15:38.280
<v Speaker 1>brought by the United States Department of Justice within that

0:15:38.400 --> 0:15:40.840
<v Speaker 1>ben not only more serious, but would sort of carry

0:15:40.840 --> 0:15:45.080
<v Speaker 1>the weight of the justice system behind behind those charges.

0:15:45.480 --> 0:15:49.160
<v Speaker 1>Is Trump's intent the biggest problem and all these the

0:15:49.200 --> 0:15:53.080
<v Speaker 1>biggest challenge in all these cases, it's certainly a required

0:15:53.080 --> 0:15:56.640
<v Speaker 1>element for criminal prosecution, ands in is a sort of

0:15:56.720 --> 0:16:00.080
<v Speaker 1>the cornerstone from bringing criminal charges, and I think to

0:16:00.120 --> 0:16:02.040
<v Speaker 1>come to play in a number of cases. In the

0:16:02.080 --> 0:16:05.160
<v Speaker 1>Georgia case presence the telephone call, well, you know, I

0:16:05.160 --> 0:16:07.240
<v Speaker 1>can think of ways that who could argue that he

0:16:07.320 --> 0:16:10.400
<v Speaker 1>was simply a tender who was calling saying, can't we

0:16:10.440 --> 0:16:12.920
<v Speaker 1>find more votes? Can't you just find that twelve hundred,

0:16:12.960 --> 0:16:16.280
<v Speaker 1>twelve thousand, eleven thousands of under eighty votes? Whatever it was?

0:16:16.320 --> 0:16:18.520
<v Speaker 1>To so I overcome this depths that I mean, I can,

0:16:18.600 --> 0:16:20.480
<v Speaker 1>I can think of ways you can argue, and I'm

0:16:20.520 --> 0:16:23.760
<v Speaker 1>not that's not how I happen to feel about his call,

0:16:23.840 --> 0:16:25.600
<v Speaker 1>but I could I can see as somebody can make

0:16:25.600 --> 0:16:27.720
<v Speaker 1>that argument that he didn't really have the intent. He

0:16:27.800 --> 0:16:30.960
<v Speaker 1>was simply a losing candidate who was searching for ways

0:16:31.120 --> 0:16:34.520
<v Speaker 1>to overcome an elect election. That's when you think about

0:16:34.600 --> 0:16:37.280
<v Speaker 1>any of the allegations against him. I mean, there's been

0:16:37.480 --> 0:16:40.120
<v Speaker 1>much made about, you know, whether or not his direction

0:16:40.240 --> 0:16:43.360
<v Speaker 1>to allow people to come into the speech on January

0:16:43.480 --> 0:16:46.160
<v Speaker 1>six and not worried about going through battle detectives and

0:16:46.320 --> 0:16:48.760
<v Speaker 1>somehow that's some indication that he was intending to send

0:16:48.800 --> 0:16:51.040
<v Speaker 1>him down to the to the Capitol. Well, you could

0:16:51.040 --> 0:16:53.240
<v Speaker 1>also be argued that he's just a narcissist and he

0:16:53.280 --> 0:16:55.160
<v Speaker 1>was trying to build his crowd size, which we know

0:16:55.440 --> 0:16:58.560
<v Speaker 1>from the inauguration day for has been a cornerstone for

0:16:58.640 --> 0:17:01.480
<v Speaker 1>him or something that's the extraordinary portant. How many people

0:17:01.480 --> 0:17:03.600
<v Speaker 1>show up in his rallies, how many people attended as

0:17:03.600 --> 0:17:05.920
<v Speaker 1>an auguration, how big the crowd coming to hear everything.

0:17:06.040 --> 0:17:08.480
<v Speaker 1>Is he adored by his fan and so you can

0:17:08.520 --> 0:17:11.119
<v Speaker 1>make arguments, I think, you know, one way or another.

0:17:11.640 --> 0:17:16.080
<v Speaker 1>That's why things like emails, that's why things like text messages.

0:17:16.160 --> 0:17:19.520
<v Speaker 1>That's why direct statements that people bring in and not

0:17:19.600 --> 0:17:23.000
<v Speaker 1>just hear such statements that that to me is important

0:17:23.000 --> 0:17:27.119
<v Speaker 1>improveing intent. You know, we we we really have to

0:17:27.119 --> 0:17:31.080
<v Speaker 1>be careful not to as we talk about charges against

0:17:31.359 --> 0:17:33.200
<v Speaker 1>a former president, and we don't need to just get

0:17:33.320 --> 0:17:35.639
<v Speaker 1>kind of lost in our onn echo chamber. You know,

0:17:35.680 --> 0:17:38.200
<v Speaker 1>the fact that he threw a plate against the wall

0:17:38.240 --> 0:17:41.040
<v Speaker 1>and some ketchup was on the wall, or the fact

0:17:41.080 --> 0:17:43.800
<v Speaker 1>that he slammed his hands on the desk and yelled

0:17:43.840 --> 0:17:45.320
<v Speaker 1>at people in the meeting, Well, let me tell you

0:17:45.760 --> 0:17:47.879
<v Speaker 1>my belief at the bottom of my heart is that

0:17:47.960 --> 0:17:49.800
<v Speaker 1>it's not the first time of plate's been thrown in

0:17:49.840 --> 0:17:53.159
<v Speaker 1>the lighter, the first time somebody has yelled in the

0:17:53.160 --> 0:17:56.960
<v Speaker 1>oval office. And so it makes for sexy commentary, but

0:17:57.040 --> 0:18:01.200
<v Speaker 1>it's not necessarily I think, indicative of and in and

0:18:01.560 --> 0:18:04.280
<v Speaker 1>it may be out of what we'd call societal norms

0:18:04.359 --> 0:18:09.119
<v Speaker 1>and and social graces, but that's not enough the end

0:18:09.240 --> 0:18:12.480
<v Speaker 1>of itself, to to to prove a criminal intent. It's

0:18:12.520 --> 0:18:14.880
<v Speaker 1>a big bourden, and it should be when you're talking

0:18:14.920 --> 0:18:20.480
<v Speaker 1>about people's liberty and proving that they did violated criminal statute.

0:18:20.520 --> 0:18:22.320
<v Speaker 1>It's a It's a big birden and we want it

0:18:22.320 --> 0:18:24.520
<v Speaker 1>to be. And we don't want to shift that or

0:18:24.600 --> 0:18:27.280
<v Speaker 1>change that just because it might be a Trump's scenario.

0:18:27.600 --> 0:18:30.199
<v Speaker 1>We still want prosecutes to have to prove intent, and

0:18:30.240 --> 0:18:32.600
<v Speaker 1>that's why they I think going through the witnesses and

0:18:32.640 --> 0:18:34.800
<v Speaker 1>at the end of the day, we're seeing witness the

0:18:34.800 --> 0:18:37.280
<v Speaker 1>subpoena and even in the federal grand jury case to

0:18:37.280 --> 0:18:40.439
<v Speaker 1>find out was there any direct communication, with any direct

0:18:40.560 --> 0:18:44.040
<v Speaker 1>orders of commands from Trump. You don't prosecute inner circles,

0:18:44.400 --> 0:18:47.680
<v Speaker 1>you know, outside of conspiracy charges. We talked about that.

0:18:48.280 --> 0:18:50.040
<v Speaker 1>You have to look and see can I prove it?

0:18:50.040 --> 0:18:52.440
<v Speaker 1>If you think about it this way, So, think about

0:18:52.480 --> 0:18:58.080
<v Speaker 1>the Godfather and he sends a direct command to somebody. Well,

0:18:58.480 --> 0:19:00.359
<v Speaker 1>the fact that the horse head is of being in

0:19:00.440 --> 0:19:04.280
<v Speaker 1>somebody's bed in the Godfather, unless you could prove that

0:19:04.320 --> 0:19:07.280
<v Speaker 1>the Godfather ordered to be slipt, you can't prove his intent.

0:19:07.800 --> 0:19:10.640
<v Speaker 1>But if you've got somebody who said the Godfather told

0:19:10.640 --> 0:19:12.240
<v Speaker 1>me to cut the horse head off and take it

0:19:12.280 --> 0:19:14.639
<v Speaker 1>to sell us those bed, that's a different thing. And

0:19:14.680 --> 0:19:16.760
<v Speaker 1>so they've got to sort of get to that place

0:19:16.800 --> 0:19:21.560
<v Speaker 1>and build that bridge between both the facts and the allegations.

0:19:21.560 --> 0:19:24.760
<v Speaker 1>And that's that's where intent comes in. She hasn't ruled

0:19:24.800 --> 0:19:28.080
<v Speaker 1>out subpoena Trump, but if she's after Trump, if he's

0:19:28.119 --> 0:19:31.560
<v Speaker 1>the target, can she subpoena him, or should she subpoena him.

0:19:31.920 --> 0:19:34.520
<v Speaker 1>She should not subpoena him. I mean, generally a prosecutor

0:19:34.560 --> 0:19:38.040
<v Speaker 1>would not be putting somebody up who's a target just

0:19:38.080 --> 0:19:40.399
<v Speaker 1>to claim the Fifth Amendment in front of the grand jury.

0:19:40.560 --> 0:19:43.040
<v Speaker 1>So I would I would be surprised that she would

0:19:43.119 --> 0:19:45.639
<v Speaker 1>be subpoena him, and maybe that she's talking about her.

0:19:45.720 --> 0:19:48.440
<v Speaker 1>She's wanting to subpena him for evidence in another case

0:19:48.480 --> 0:19:50.879
<v Speaker 1>that he's not a target. But I can't believe at

0:19:50.880 --> 0:19:53.560
<v Speaker 1>this stage. And that's a that's a great example two

0:19:53.840 --> 0:19:57.600
<v Speaker 1>of um you know folks who say, well, prosecutors shouldn't

0:19:57.600 --> 0:19:59.520
<v Speaker 1>take into account of policy and that should just move

0:19:59.600 --> 0:20:02.280
<v Speaker 1>forward by still the fact of others and anybody who

0:20:02.280 --> 0:20:04.919
<v Speaker 1>believes that somehow this case is not being handled differently

0:20:04.960 --> 0:20:07.080
<v Speaker 1>because as a former president, let me just ask him

0:20:07.520 --> 0:20:09.800
<v Speaker 1>to tell me how many special grand juries are going

0:20:09.800 --> 0:20:12.920
<v Speaker 1>on in flolting counterybody. Of course it's being handled different

0:20:12.920 --> 0:20:14.960
<v Speaker 1>because it's the former president, you know. I mean, that's

0:20:15.000 --> 0:20:17.959
<v Speaker 1>we know that. And so I think it would be

0:20:18.000 --> 0:20:21.840
<v Speaker 1>a mistake to subpoena him in and with the legal

0:20:21.920 --> 0:20:24.600
<v Speaker 1>challenges that would come with that. And I also think

0:20:24.640 --> 0:20:27.159
<v Speaker 1>that if the prosecutors generally are they know not to

0:20:27.240 --> 0:20:29.600
<v Speaker 1>bring in people who have constitutional rights even if they

0:20:29.600 --> 0:20:32.080
<v Speaker 1>were there, they certainly have costUS rights to take the

0:20:32.080 --> 0:20:34.199
<v Speaker 1>fifth and you did typically don't bring them in. You

0:20:34.280 --> 0:20:36.240
<v Speaker 1>never see that, and you know, I don't think you'll

0:20:36.480 --> 0:20:38.240
<v Speaker 1>be at the pointer or folks in the d as

0:20:38.240 --> 0:20:39.840
<v Speaker 1>al should be able to point to cases where they

0:20:39.840 --> 0:20:42.920
<v Speaker 1>bring in criminal defendants to mostly sit there in front

0:20:42.920 --> 0:20:44.320
<v Speaker 1>of a grand jury and say well, I'm gonna make

0:20:44.359 --> 0:20:46.119
<v Speaker 1>you take the fifth in front of the strandur. You

0:20:46.160 --> 0:20:47.879
<v Speaker 1>don't often see that. You have the cases where you

0:20:47.880 --> 0:20:50.000
<v Speaker 1>bring people in and say well, I'll give you immunity

0:20:50.119 --> 0:20:52.720
<v Speaker 1>to testify, and we're gonna allow you know, use of

0:20:52.720 --> 0:20:55.840
<v Speaker 1>immunity here. But I just would be surprised if she

0:20:55.880 --> 0:20:58.800
<v Speaker 1>actually subpending to him to come in and testify in

0:20:58.880 --> 0:21:02.480
<v Speaker 1>a case against himself. Thanks Michael. That's Michael Moore of

0:21:02.560 --> 0:21:07.679
<v Speaker 1>more Hall. Michael Novak was once the most powerful person

0:21:07.720 --> 0:21:10.760
<v Speaker 1>in the gold market. Now he's on trial with two

0:21:10.760 --> 0:21:15.160
<v Speaker 1>other former JP Morgan Chase employees for operating a criminal

0:21:15.240 --> 0:21:20.040
<v Speaker 1>conspiracy inside one of Wall Street's largest banks. Facing decades

0:21:20.080 --> 0:21:23.720
<v Speaker 1>in prison. Prosecutors set a corrupt group of traders and

0:21:23.800 --> 0:21:28.000
<v Speaker 1>sales staff manipulated gold and silver markets for the benefit

0:21:28.040 --> 0:21:31.639
<v Speaker 1>of the bank and its prized clients, scamming the market

0:21:31.680 --> 0:21:35.440
<v Speaker 1>for years with so called spoofing trades. Joining me a

0:21:35.520 --> 0:21:39.520
<v Speaker 1>securities law expert James Cox, a professor at Duke Law School,

0:21:40.000 --> 0:21:44.399
<v Speaker 1>Jim explain what spoofing is well is keep the fun simple.

0:21:44.440 --> 0:21:47.560
<v Speaker 1>Ground is submitting on order to buy in order to

0:21:47.600 --> 0:21:50.399
<v Speaker 1>sell without the intent of really wanting to buy an

0:21:50.440 --> 0:21:54.040
<v Speaker 1>up seller the price order stated, and it's intended to

0:21:54.240 --> 0:21:58.240
<v Speaker 1>allure the unsuspecting into thinking that the market is moving

0:21:58.320 --> 0:22:01.760
<v Speaker 1>one direction or another. The whole purpose of spoofing isn't

0:22:01.800 --> 0:22:06.520
<v Speaker 1>to close and order, but rather to create the impression

0:22:06.800 --> 0:22:09.439
<v Speaker 1>that prices are moving or rightly to move in a

0:22:09.480 --> 0:22:13.480
<v Speaker 1>certain direction because of a build up of demand demand

0:22:13.520 --> 0:22:16.520
<v Speaker 1>on the sales side or demand on the buy side.

0:22:16.960 --> 0:22:19.360
<v Speaker 1>So all it is is a false order that's being

0:22:19.400 --> 0:22:22.399
<v Speaker 1>sent to the marketplace and a series of false orders

0:22:22.520 --> 0:22:25.040
<v Speaker 1>to create an idea that there's like a surge or price.

0:22:25.200 --> 0:22:27.440
<v Speaker 1>For example, let's assume that you said a whole bunch

0:22:27.520 --> 0:22:30.320
<v Speaker 1>of false orders to buy to create the image that

0:22:30.400 --> 0:22:33.960
<v Speaker 1>there's a lot of demand out there at ten dollars,

0:22:34.040 --> 0:22:36.280
<v Speaker 1>and maybe the price will go up to ten ten,

0:22:37.040 --> 0:22:39.800
<v Speaker 1>and so therefore you should be wanting to go out

0:22:39.840 --> 0:22:42.639
<v Speaker 1>and buy in the market at ten or tennel five

0:22:43.040 --> 0:22:45.800
<v Speaker 1>with the expectation that those markets will suddenly go to

0:22:45.840 --> 0:22:48.399
<v Speaker 1>ten ten. So you go out in the market and

0:22:48.520 --> 0:22:51.280
<v Speaker 1>you're willing to pay more than the current market price

0:22:51.320 --> 0:22:53.840
<v Speaker 1>of ten because you think it's going to go up

0:22:53.840 --> 0:22:56.399
<v Speaker 1>to tennel five, and you close the pennel five minute

0:22:56.400 --> 0:22:59.439
<v Speaker 1>the market stays at ten, So you've gotten clipped. So

0:22:59.480 --> 0:23:03.040
<v Speaker 1>the whole idea of spoofing is to dupe another person

0:23:03.119 --> 0:23:07.000
<v Speaker 1>of believing that there's a shift in the marketplace. So

0:23:07.040 --> 0:23:12.040
<v Speaker 1>now in this case, unlike past cases of allegistrating fraud,

0:23:12.119 --> 0:23:14.960
<v Speaker 1>the prosecutors have sort of up the anti here. They're

0:23:15.000 --> 0:23:19.520
<v Speaker 1>accusing the defendants of a racketeering conspiracy. That's a lot

0:23:19.600 --> 0:23:22.440
<v Speaker 1>you usually see more with the mafia than banks. This

0:23:22.560 --> 0:23:25.680
<v Speaker 1>is true. They're using the RICO and other legislation that's

0:23:25.720 --> 0:23:29.560
<v Speaker 1>been passed over the decades is designed to go after

0:23:29.720 --> 0:23:34.720
<v Speaker 1>purposeful intentional misconduct. We rarely see that used in most

0:23:34.760 --> 0:23:37.680
<v Speaker 1>securities or commodities cases, but they're doing it in this case.

0:23:38.040 --> 0:23:40.679
<v Speaker 1>And I believe it's the fact that we now find

0:23:40.960 --> 0:23:44.240
<v Speaker 1>that certainly with this administration. When you look at who

0:23:44.280 --> 0:23:48.000
<v Speaker 1>the use attorneys are, who's at the SEC, who's at

0:23:48.040 --> 0:23:52.800
<v Speaker 1>the Commodity's Future Trading Commission, those are all now democtratically

0:23:52.960 --> 0:23:57.280
<v Speaker 1>controlled prosecutor offices. And there has been the belief that

0:23:57.320 --> 0:24:00.600
<v Speaker 1>the markets have gotten more and more up through a

0:24:00.680 --> 0:24:04.680
<v Speaker 1>variety of practices, not just spoofing, but spoofing is one

0:24:04.720 --> 0:24:08.359
<v Speaker 1>of those practices where it's rampant. And what's interesting in

0:24:08.400 --> 0:24:12.320
<v Speaker 1>the case that's being prosecuted now is that part of

0:24:12.359 --> 0:24:15.800
<v Speaker 1>the defense is the fact that, look, I came in

0:24:16.320 --> 0:24:19.280
<v Speaker 1>a young broker here and I saw how things were working,

0:24:19.600 --> 0:24:22.920
<v Speaker 1>and people did this practice which turns out to be spoofing,

0:24:23.160 --> 0:24:24.760
<v Speaker 1>doing it all the time, and I just thought that

0:24:24.800 --> 0:24:28.520
<v Speaker 1>was normal and routine processes, and I had no corrupt

0:24:28.640 --> 0:24:33.760
<v Speaker 1>criminal attempt behind it. And the fact that that defense

0:24:33.960 --> 0:24:37.440
<v Speaker 1>in this case has some salience to itself where I

0:24:37.480 --> 0:24:40.000
<v Speaker 1>think that that could be actually the key defense to

0:24:40.119 --> 0:24:44.240
<v Speaker 1>this case is that everybody's doing it indicates that this

0:24:44.320 --> 0:24:47.920
<v Speaker 1>is a pervasive problem. But it also explains why we're

0:24:47.920 --> 0:24:52.040
<v Speaker 1>suddenly seeing spoofing cases being brought, and particularly this spoofing

0:24:52.080 --> 0:24:55.040
<v Speaker 1>case being brought in the criminal arena. That is that

0:24:55.080 --> 0:24:58.760
<v Speaker 1>this is not a question of just getting an injunction

0:24:58.800 --> 0:25:02.400
<v Speaker 1>against somebody making them disgorge the commissions that they may

0:25:02.400 --> 0:25:05.040
<v Speaker 1>have earned by spoofing, or maybe even the gains that

0:25:05.119 --> 0:25:08.320
<v Speaker 1>they made by spoofing. This is the perhaps put somebody

0:25:08.320 --> 0:25:11.399
<v Speaker 1>away for some period of time in prison, and the

0:25:11.480 --> 0:25:15.440
<v Speaker 1>reason for that is that the markets are filled with spoofing.

0:25:16.040 --> 0:25:19.720
<v Speaker 1>Some of the prosecution's witnesses are former traders who are

0:25:19.800 --> 0:25:23.399
<v Speaker 1>cooperating after pleading guilty. So would they be able to

0:25:23.440 --> 0:25:27.280
<v Speaker 1>testify as to what the intent was? Yes, you know,

0:25:27.400 --> 0:25:30.000
<v Speaker 1>the important thing is to describe the phenomenal so the

0:25:30.040 --> 0:25:33.720
<v Speaker 1>trier of fact can really understand why this is manipulative

0:25:33.800 --> 0:25:37.080
<v Speaker 1>conduct and not legitimate business practices. So they would be

0:25:37.119 --> 0:25:40.879
<v Speaker 1>explaining that to explain the consequences of the misconduct. So

0:25:41.240 --> 0:25:44.240
<v Speaker 1>the witnesses are doing that, and I think that they're

0:25:44.280 --> 0:25:48.679
<v Speaker 1>also going to be helpful in describing the likely mental

0:25:48.760 --> 0:25:51.760
<v Speaker 1>state of the defendants in this case. That is that

0:25:52.240 --> 0:25:56.359
<v Speaker 1>brokers all knew that this conduct was illegal, that it

0:25:56.560 --> 0:25:59.919
<v Speaker 1>was pervasively practiced and there was a way to making money,

0:26:00.280 --> 0:26:03.840
<v Speaker 1>and that there were victims, not those who were practicing spoofing,

0:26:03.960 --> 0:26:07.520
<v Speaker 1>but rather the other traders on the other side who

0:26:07.520 --> 0:26:12.040
<v Speaker 1>are innocent, and we're victimized by false appearances about market movements.

0:26:12.160 --> 0:26:14.359
<v Speaker 1>So I think that all of that's important. And the

0:26:14.400 --> 0:26:17.240
<v Speaker 1>fact that they'll be able to get some other traders

0:26:17.320 --> 0:26:20.919
<v Speaker 1>to cooperate while at the same time admitting that they

0:26:20.960 --> 0:26:23.560
<v Speaker 1>had engaged in this conduct makes it more likely that

0:26:23.720 --> 0:26:27.160
<v Speaker 1>the defendants in this case could be found guilty. According

0:26:27.200 --> 0:26:29.840
<v Speaker 1>to the defense evidence that the trial will show that

0:26:29.880 --> 0:26:33.199
<v Speaker 1>the vast majority of all market orders are canceled and

0:26:33.240 --> 0:26:35.679
<v Speaker 1>the typical lifespan of an order is just a couple

0:26:35.680 --> 0:26:39.119
<v Speaker 1>of seconds, and I think that that would understanding pretty

0:26:39.160 --> 0:26:41.840
<v Speaker 1>much in the literature for some time that spoofing has

0:26:41.880 --> 0:26:44.720
<v Speaker 1>been a problem. It's surprising that it took as long

0:26:44.760 --> 0:26:48.119
<v Speaker 1>as it did to be prescribed as a violation, and

0:26:48.160 --> 0:26:50.760
<v Speaker 1>it's surprising that we haven't had more cases brought to

0:26:50.920 --> 0:26:52.280
<v Speaker 1>you know, it's hard to say this is gonna be

0:26:52.320 --> 0:26:55.080
<v Speaker 1>a watershed case, but it's certainly going to be a case.

0:26:55.119 --> 0:26:58.320
<v Speaker 1>It's going to change industry practices if the prosecution sticks.

0:26:58.800 --> 0:27:03.800
<v Speaker 1>Federal prosecutes have been going after spoofing for years, haven't they.

0:27:03.920 --> 0:27:07.919
<v Speaker 1>They have been, and they're they're complicated cases. You know,

0:27:08.000 --> 0:27:11.800
<v Speaker 1>the difficulty you have is the defense are well aware

0:27:11.920 --> 0:27:15.199
<v Speaker 1>that they're probably in better shape if they can have

0:27:15.400 --> 0:27:18.359
<v Speaker 1>the case before not a judge, but have the trial

0:27:18.400 --> 0:27:21.199
<v Speaker 1>effect be a jury since it's a criminal case, because

0:27:21.600 --> 0:27:25.040
<v Speaker 1>juries are persuaded by the many times the equities. When

0:27:25.040 --> 0:27:28.080
<v Speaker 1>the defendant comes and said, what this wasn't manipulative because

0:27:28.080 --> 0:27:30.440
<v Speaker 1>everybody was doing it. It was at the practice and

0:27:30.440 --> 0:27:33.360
<v Speaker 1>everybody knew what was going on out there. Prosecutors can

0:27:33.480 --> 0:27:35.960
<v Speaker 1>say what they want to about that they're innocent people

0:27:35.960 --> 0:27:38.560
<v Speaker 1>who don't expect there to be spoofing, But at the

0:27:38.640 --> 0:27:42.439
<v Speaker 1>same time the defense that everybody's doing it has had

0:27:42.480 --> 0:27:45.879
<v Speaker 1>an effect on juries. Thanks Jim. That's James Cox of

0:27:45.960 --> 0:27:49.159
<v Speaker 1>Duke Law School. Coming up, we'll talk to Bloomberg Special

0:27:49.200 --> 0:27:54.560
<v Speaker 1>Medals reporter Eddie Spence, who's covering the trial. We've been

0:27:54.600 --> 0:27:58.040
<v Speaker 1>talking about the trial of three former JP Morgan employees,

0:27:58.160 --> 0:28:01.000
<v Speaker 1>including the veteran head of the press just Metals Desk,

0:28:01.400 --> 0:28:04.679
<v Speaker 1>the most ambitious government effort yet in the crackdown on

0:28:04.800 --> 0:28:09.960
<v Speaker 1>market manipulation and spoofing. Joining me is Bloomberg Special Metals

0:28:10.040 --> 0:28:13.399
<v Speaker 1>reporter Eddie Spence, who's covering the trial. Tell me a

0:28:13.480 --> 0:28:17.120
<v Speaker 1>little bit about who these defendants are basically all three

0:28:17.119 --> 0:28:19.720
<v Speaker 1>of these guys work. Take Morgan, one of them, Mike

0:28:19.800 --> 0:28:23.440
<v Speaker 1>Novak used to run the precious metals business at Jape Morgan,

0:28:23.560 --> 0:28:26.880
<v Speaker 1>which is by far the biggest precious metals business are

0:28:27.000 --> 0:28:29.600
<v Speaker 1>a commercial bank in the world. Pretty much, you can

0:28:29.640 --> 0:28:32.399
<v Speaker 1>really think of Mike Novak as the top guy in

0:28:32.440 --> 0:28:35.480
<v Speaker 1>the entire gold market. And along with him is Greg Smith,

0:28:35.520 --> 0:28:39.360
<v Speaker 1>who was Mike Novak's top trader, and Jeffrey Ruffo, who

0:28:39.440 --> 0:28:42.720
<v Speaker 1>used to handle sales to hedge funds like more Capital

0:28:42.760 --> 0:28:44.880
<v Speaker 1>and Tudor. It's a really really big players in the

0:28:44.960 --> 0:28:48.840
<v Speaker 1>concert to this market. The prosecution's attempt to prove a

0:28:48.960 --> 0:28:53.360
<v Speaker 1>criminal conspiracy here, is that a reach. It's really difficult

0:28:53.400 --> 0:28:55.920
<v Speaker 1>to say at this point, but it's a pretty crucial

0:28:56.000 --> 0:29:00.440
<v Speaker 1>part of their indictment in trying to prove a criminal comperiracy.

0:29:00.520 --> 0:29:02.520
<v Speaker 1>What they're trying to do is stand up the rico

0:29:02.720 --> 0:29:05.440
<v Speaker 1>charges they've they've put against them, which are they're basically

0:29:05.520 --> 0:29:09.400
<v Speaker 1>charges that are usually used against like Matthews and gangs,

0:29:09.560 --> 0:29:12.840
<v Speaker 1>and they're applying it to white collar crime essentially. So

0:29:12.960 --> 0:29:14.920
<v Speaker 1>it makes it very interesting, and it also makes the

0:29:15.240 --> 0:29:18.120
<v Speaker 1>kind of sense that these guys might get significally more

0:29:18.120 --> 0:29:21.080
<v Speaker 1>severe and if the prosecution a lot more leeway when

0:29:21.120 --> 0:29:24.680
<v Speaker 1>it comes to introducing evidence, and also a lot more

0:29:24.760 --> 0:29:26.320
<v Speaker 1>kind of plot with the jury. You know, if you're

0:29:26.360 --> 0:29:29.520
<v Speaker 1>being told for deeply Morgan traders are equivalent to you know,

0:29:29.760 --> 0:29:32.520
<v Speaker 1>Gambino crime family or something like that, that's a pretty

0:29:32.560 --> 0:29:35.080
<v Speaker 1>striking thing that gives it a bit more jury appeal.

0:29:35.280 --> 0:29:38.600
<v Speaker 1>So tell me about the prosecution's case here. So basically

0:29:38.600 --> 0:29:42.320
<v Speaker 1>what they are trying to prove is these three guys

0:29:42.440 --> 0:29:46.400
<v Speaker 1>conspired to spoof precious metals markets, in this case cold

0:29:46.440 --> 0:29:49.360
<v Speaker 1>and silver, over the courts of about eight years. So

0:29:49.560 --> 0:29:53.000
<v Speaker 1>spoofing is a form of market manipulation where basically you

0:29:53.080 --> 0:29:56.360
<v Speaker 1>show the market huge false orders on one side in

0:29:56.440 --> 0:29:59.040
<v Speaker 1>order to get your orders that are smaller on the

0:29:59.040 --> 0:30:03.120
<v Speaker 1>other side fill other participants. It's considered these days essentially

0:30:03.160 --> 0:30:06.000
<v Speaker 1>a form of fraud because you're basically misleading the market

0:30:06.040 --> 0:30:09.640
<v Speaker 1>about what your true trading intentions are in order to prices.

0:30:09.920 --> 0:30:11.920
<v Speaker 1>A lot. The prosecutors are basically trying to improve is

0:30:11.920 --> 0:30:15.920
<v Speaker 1>that over eight years, these guys use spooping to essentially

0:30:16.120 --> 0:30:19.360
<v Speaker 1>enrich themselves, enrich their clients, and also to enrich the

0:30:19.600 --> 0:30:22.640
<v Speaker 1>precious meat of disks and what does the defense appear

0:30:22.680 --> 0:30:26.360
<v Speaker 1>to be. So the defense in these type of cases

0:30:26.440 --> 0:30:28.880
<v Speaker 1>a lot of the time it's focused around intent. So

0:30:29.000 --> 0:30:32.320
<v Speaker 1>basically what they say is these markets moving incredibly fast,

0:30:32.440 --> 0:30:35.440
<v Speaker 1>party fans, you know, the advent of algorithmic trading, so

0:30:35.480 --> 0:30:38.800
<v Speaker 1>it's necessary for traders to cancel sometimes when they feel

0:30:38.800 --> 0:30:41.080
<v Speaker 1>like an algorithm is trying to pee back off them.

0:30:41.160 --> 0:30:44.160
<v Speaker 1>It really is that frucial point of intent. Basically, whether

0:30:44.200 --> 0:30:47.200
<v Speaker 1>these guys intended to spook the markets when they were

0:30:47.200 --> 0:30:49.280
<v Speaker 1>placing these orders, or whether they were canceling them for

0:30:49.360 --> 0:30:52.720
<v Speaker 1>legitimate reasons. And there are logismic reasons to cancel orders

0:30:52.720 --> 0:30:55.000
<v Speaker 1>after you've placed them, but you can't intend to cancel

0:30:55.080 --> 0:30:57.520
<v Speaker 1>them before you place them. So that's what the defense

0:30:57.640 --> 0:30:59.560
<v Speaker 1>is really going to focus on. That intent point is

0:30:59.640 --> 0:31:02.920
<v Speaker 1>quite because in previous cases or someone has come down

0:31:02.960 --> 0:31:06.600
<v Speaker 1>to is you know a Bloomberg message or you know

0:31:06.680 --> 0:31:09.120
<v Speaker 1>WhatsApp text or something like that where one of the

0:31:09.160 --> 0:31:12.040
<v Speaker 1>defendants has kind of explicitly said that he knows what

0:31:12.080 --> 0:31:14.640
<v Speaker 1>he's doing is is illegal, or you know that he

0:31:14.680 --> 0:31:17.360
<v Speaker 1>actually intends to cancel the orders. But that's the real

0:31:17.360 --> 0:31:20.360
<v Speaker 1>crucial point, is intent among the first witnesses was a

0:31:20.400 --> 0:31:23.240
<v Speaker 1>former trader who made a plea deal with the government,

0:31:23.600 --> 0:31:27.040
<v Speaker 1>John Edmonds. So John Edmins was an interesting one. At

0:31:27.040 --> 0:31:29.480
<v Speaker 1>the time he was working with these guys at jp Morgan,

0:31:29.560 --> 0:31:31.560
<v Speaker 1>he was quite a junior trader. I guess what was

0:31:31.640 --> 0:31:34.360
<v Speaker 1>striking in his testimony is he seemed to suggest that

0:31:34.400 --> 0:31:37.400
<v Speaker 1>he was basically just taking part in what was considered

0:31:37.480 --> 0:31:41.280
<v Speaker 1>standard practice on the desks entire career. And he said

0:31:41.320 --> 0:31:44.000
<v Speaker 1>he knew it was wrong, but to an extent, the

0:31:44.000 --> 0:31:45.880
<v Speaker 1>fact that everyone else is doing it made him feel

0:31:45.880 --> 0:31:48.160
<v Speaker 1>like he didn't really have a choice but to do

0:31:48.200 --> 0:31:50.440
<v Speaker 1>the spoofing. You know. I mean, he had a pretty

0:31:50.840 --> 0:31:53.479
<v Speaker 1>great career ahead of him, um and you know these

0:31:53.520 --> 0:31:55.440
<v Speaker 1>days he's a car salesman because of this. That that

0:31:55.520 --> 0:31:59.240
<v Speaker 1>was pretty striking. The defense tried to attack his credibility,

0:31:59.360 --> 0:32:02.600
<v Speaker 1>Edmund's credit ability on cross How did that go? That

0:32:02.680 --> 0:32:04.560
<v Speaker 1>was a pretty interesting moment. So what they were basically

0:32:04.560 --> 0:32:09.120
<v Speaker 1>doing was bringing up a previous civil case regarding spoofing

0:32:09.440 --> 0:32:13.600
<v Speaker 1>involving JPMorgan, where it turns out that John Edvans had

0:32:13.800 --> 0:32:16.840
<v Speaker 1>lied basically about what the reason was for one of

0:32:16.960 --> 0:32:20.200
<v Speaker 1>his colleagues being fired. It turned out the reason was spooping,

0:32:20.280 --> 0:32:23.520
<v Speaker 1>but he said he lies because his attorney told them

0:32:23.560 --> 0:32:26.000
<v Speaker 1>to do so. And obviously, as soon as you start

0:32:26.120 --> 0:32:28.360
<v Speaker 1>lying on drow, you know, even in the civil case,

0:32:28.560 --> 0:32:31.479
<v Speaker 1>that really does affect your credibility. It was interesting in

0:32:31.480 --> 0:32:35.080
<v Speaker 1>that moment because in the courtroom got quite heated, should

0:32:35.080 --> 0:32:37.240
<v Speaker 1>we say, is the kind of defense laid into into

0:32:37.320 --> 0:32:39.120
<v Speaker 1>edmands in that case, And it was a really long

0:32:39.200 --> 0:32:42.280
<v Speaker 1>cross examination as well, so it was pretty grueling for Fred.

0:32:42.680 --> 0:32:45.560
<v Speaker 1>Do you have any inkling as to whether any of

0:32:45.600 --> 0:32:50.120
<v Speaker 1>the defendants is going to testify? We don't at this stage, essentially,

0:32:50.160 --> 0:32:53.440
<v Speaker 1>the reason being the defense can wait until the prosecution

0:32:53.480 --> 0:32:56.160
<v Speaker 1>respece case before they made that decision. But I've asked

0:32:56.160 --> 0:32:58.800
<v Speaker 1>the defense laways about this um. That's what they've essentially

0:32:58.800 --> 0:33:01.920
<v Speaker 1>told me. It will depend on the prosecution's case goes

0:33:01.960 --> 0:33:04.840
<v Speaker 1>and whether the defense lawys feel like they need to

0:33:04.880 --> 0:33:07.880
<v Speaker 1>put up the defendants to I guess have a better

0:33:07.960 --> 0:33:10.600
<v Speaker 1>chance of getting a not guilty verdict. Thanks so much.

0:33:10.800 --> 0:33:14.840
<v Speaker 1>That's Eddie Spence, Bloomberg Precious Metals Reporter, and that's it

0:33:14.920 --> 0:33:17.480
<v Speaker 1>for this edition of the Bloomberg Law Show. Remember you

0:33:17.520 --> 0:33:20.000
<v Speaker 1>can always get the latest legal news on our Bloomberg

0:33:20.080 --> 0:33:23.840
<v Speaker 1>Law Podcast. You can find them on Apple Podcasts, Spotify,

0:33:23.880 --> 0:33:28.880
<v Speaker 1>and at www dot bloomberg dot com slash podcast, slash Law,

0:33:29.320 --> 0:33:31.920
<v Speaker 1>and remember to tune into The Bloomberg Law Show every

0:33:31.960 --> 0:33:35.400
<v Speaker 1>week night at ten pm Wall Street Time. I'm June

0:33:35.400 --> 0:33:37.600
<v Speaker 1>Grosso and you're listening to Bloomberg