WEBVTT - Did Postal Chief Violate Campaign Finance Laws?

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<v Speaker 1>You're listening to Bloomberg Law with June Grasso from Bloomberg Radio.

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<v Speaker 1>After lawsuits and weeks of criticism for the widespread delays

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<v Speaker 1>in the mail, Postmaster General Lewis Dejoi is facing more problems.

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<v Speaker 1>The House Oversight Committee is launching an investigation into whether

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<v Speaker 1>de Joy pressured employees at his former business to contribute

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<v Speaker 1>to Republican candidates and then reimburse them with company funds

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<v Speaker 1>and the guise of bonuses, in violation of campaign finance laws.

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<v Speaker 1>The Washington Post reported that five employees of DeJoy's former

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<v Speaker 1>North Carolina company, New Breed Logistics, said they were urged

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<v Speaker 1>by de Joy's aids or by DeJoy himself, to write

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<v Speaker 1>checks to Republicans and attend fundraisers at his mansion, later

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<v Speaker 1>to be reimbursed in bonuses. My guest is Mareth McGehee,

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<v Speaker 1>the executive director of Issue One, which advocates for a

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<v Speaker 1>stronger campaign finance laws. Merit. The basic scheme alleged here

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<v Speaker 1>hiding where donations come from by having employees make them

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<v Speaker 1>and then reimbursing them. Is that considered illegal? Well, it's

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<v Speaker 1>one of the bedrocks of financial and campaign finance disclosure.

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<v Speaker 1>That the purpose of having it is you know the

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<v Speaker 1>true source of the money, and so this notion of

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<v Speaker 1>giving in the name of another has been something that

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<v Speaker 1>has been illegal since the nineteen seventies in the campaign

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<v Speaker 1>finance context, but it's often a problem when you have

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<v Speaker 1>disclosure rules. People's attempts to evade those rules kind of

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<v Speaker 1>described the situation where getting in the name of another

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<v Speaker 1>is this is often referred to, is one of the

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<v Speaker 1>few places where both campaign finance law is clear and

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<v Speaker 1>it actually has, unlike many other portions of law, been

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<v Speaker 1>enforced robustly over the years. So there's a strong record

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<v Speaker 1>of enforcement precisely on this question. It doesn't get into

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<v Speaker 1>all the other questions of dark money, what is coordination,

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<v Speaker 1>all these other you know, places where lives and managed

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<v Speaker 1>to make it fairly murky. This is a clear black line.

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<v Speaker 1>So then if the joy was prosecuted for this, it

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<v Speaker 1>would be a pretty straightforward case. Well, you have to

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<v Speaker 1>show the facts, obviously, but they've had many instances of

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<v Speaker 1>people trying to hide some of the giving and the

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<v Speaker 1>name of another through bonuses, through family members. There has

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<v Speaker 1>been a record of many people who have tried to

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<v Speaker 1>go down this path, and the law, and the record

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<v Speaker 1>here is that if you have the facts and it

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<v Speaker 1>can show what happens, and you don't really have much

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<v Speaker 1>of an excuse for it. Companies can contribute through packs,

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<v Speaker 1>But what did Joy did here was reimbursing employees with

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<v Speaker 1>company money. Is that wrong? Well, there's a few factors

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<v Speaker 1>here to consider. So let's take your normal political action

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<v Speaker 1>committee and this could be whether it as a corporate

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<v Speaker 1>pack or a union pack, but especially corporate pack. The

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<v Speaker 1>way they generally work is that the donations to that pack,

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<v Speaker 1>by law, has to be voluntary. That's by law. They

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<v Speaker 1>cannot be compulsory. Second most executives, and this is usually

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<v Speaker 1>from you know, employees of a corporation. They get a

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<v Speaker 1>slip in their paycheck that says now at the time,

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<v Speaker 1>for you to make your contribution to our pack. And

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<v Speaker 1>then it is up to an individual to decide whetter

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<v Speaker 1>to do that. And there might be a point at

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<v Speaker 1>which you have a whole meeting and people are sitting

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<v Speaker 1>around a room and one of the people, usually the

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<v Speaker 1>general council or someone who runs the pack, gets up

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<v Speaker 1>with this, Well, you want to make sure your voice

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<v Speaker 1>is heard in Washington. Make sure you make your pack contribution.

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<v Speaker 1>You know, this is going to be really important for

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<v Speaker 1>our company. All those happened regularly and are permitted by law.

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<v Speaker 1>There can even be some part where somebody turns to

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<v Speaker 1>you if you're a high level executive and says, hey,

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<v Speaker 1>have you made your contribution this year? And you could,

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<v Speaker 1>you know, certainly feel some pressure. Even though it's supposed

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<v Speaker 1>to be voluntary, you could certainly conceivably feel pressure to

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<v Speaker 1>make that contribution to show that you want to rise

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<v Speaker 1>in the company. All those things happen on a regular basis.

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<v Speaker 1>So does it depend on how much pressure whether the

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<v Speaker 1>employee feels like he or she might be losing their job.

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<v Speaker 1>In this case, apparently there were emails were sent that

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<v Speaker 1>invited employees to fundraisers. They were follow up calls and

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<v Speaker 1>visits to employees desks. So there's the line between Okay,

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<v Speaker 1>at what point is something that's supposed to be voluntary

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<v Speaker 1>become compulsory? Right? You would have to look at the

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<v Speaker 1>set of facts to determine whether that occurred. Something that

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<v Speaker 1>was supposed to be voluntary. Hey, if you want to

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<v Speaker 1>get ahead of this company, you'll know what you'll do. Right.

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<v Speaker 1>Then you've crossed into a line but that's I'm just

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<v Speaker 1>drawing that picture because I think it's important understand that

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<v Speaker 1>that kind of happens on a regular basis every day.

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<v Speaker 1>Why are the line here? I think it sounds like

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<v Speaker 1>according to the stories that come out, it's one thing

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<v Speaker 1>for someone to say, hey, if you're a good company employee,

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<v Speaker 1>you'll give to the pack. It's a far far different

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<v Speaker 1>thing to say, hey, you make your contribution and I'll

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<v Speaker 1>make sure you know that it gets covered, or I'll

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<v Speaker 1>get it, cover it and any taxes based on them

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<v Speaker 1>on the bonus, or why don't you have your wife

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<v Speaker 1>to it and I'll make sure that it gets covered.

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<v Speaker 1>You've crossed the rubicon on legality when you start getting

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<v Speaker 1>into the world of you know, and I'll make sure

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<v Speaker 1>it gets covered. There's a separate question of whether or

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<v Speaker 1>not it's been voluntary based on the pressure. That's one question.

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<v Speaker 1>There's a very different question about whether or not any

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<v Speaker 1>contribution was then covered financially. I suppose a close investigation

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<v Speaker 1>of the books would absolutely show whether or not there

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<v Speaker 1>was a reimbursement of the employee contributions dollar for dollar. Yes,

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<v Speaker 1>And you know, it's very interesting when you look at

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<v Speaker 1>some of the past cases. There was one involving the

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<v Speaker 1>Fiesta Ball back many years ago, and uh, it almost

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<v Speaker 1>sounds like a repeat of many of the instances where

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<v Speaker 1>the x CEO of the Fiestable actually pleaded guilty in

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<v Speaker 1>connection with this kind of um you know, evasion and

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<v Speaker 1>donation in the name of another. So they say, there's

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<v Speaker 1>kind of a long record of where people have tried

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<v Speaker 1>to gain this because they want to get the political credit,

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<v Speaker 1>but they end up getting tripped up and in some

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<v Speaker 1>cases in that case they were not only crying to

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<v Speaker 1>excuse somebody actually went to jail, which was pretty unusual.

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<v Speaker 1>So yeah, you have to look at when what was

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<v Speaker 1>the between the donations and any reimbursements set that occurs

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<v Speaker 1>Nowadays we have email trails, so what was the understanding

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<v Speaker 1>All that comes into the mix as part of the

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<v Speaker 1>fact case that would be looked at. How often does

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<v Speaker 1>this go on across the country because this would not

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<v Speaker 1>have been discovered unless he had become Postmaster General and

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<v Speaker 1>there was all this investigation into his past. Unfortunately, these

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<v Speaker 1>straw downers are they as they take contributions to the

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<v Speaker 1>name of another are strictly prohibited. But we first have

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<v Speaker 1>a federal election commission that currently does not even have

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<v Speaker 1>a quorum. Even when they do, they're very weak and

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<v Speaker 1>many times, uh you know, their investigative capacity is quite limited.

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<v Speaker 1>It will only come cases only come to their attention

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<v Speaker 1>like this if there's really just been either a press

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<v Speaker 1>report or there's been a whistle blore. So it's kind

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<v Speaker 1>of hard to say how often it occurs. Usually, if

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<v Speaker 1>you have a decent general counsel, part of their job

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<v Speaker 1>to make sure you don't do some thing like this,

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<v Speaker 1>which is kind of one of the it's easy to do,

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<v Speaker 1>but it should be easy to know where the line is,

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<v Speaker 1>and uh, you know, to me, this is a failure

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<v Speaker 1>of whoever his campaign finance and company lawyers were to

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<v Speaker 1>make sure that they didn't cross. But it is a

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<v Speaker 1>pretty clear line. As they say, there's a lot of

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<v Speaker 1>murky lines when he comes to camping finance, and this

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<v Speaker 1>isn't one of them. Joyce said that he wasn't aware

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<v Speaker 1>that any employees felt pressured, right, there's a difference between

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<v Speaker 1>feeling pressured and getting reimbursed. The statute of limitation seems

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<v Speaker 1>to have run in this case, so he probably won't

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<v Speaker 1>be prosecuted federally. But apparently North Carolina. He could be

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<v Speaker 1>prosecuted under North Carolina laws. Yes. In fact, the Common

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<v Speaker 1>Cause I just saw on the news wire had just

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<v Speaker 1>filed a complaint in North Carolina. So that has been

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<v Speaker 1>brought to the attention in North Carolina. So the way

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<v Speaker 1>I understand that North Carolina's is not a statute of

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<v Speaker 1>limitations unlike federal law, which is five years. So that's

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<v Speaker 1>why they filed that complaint calling for an investigation of

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<v Speaker 1>the straw Downers scheme. Because the company was in high Point,

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<v Speaker 1>North Carolina, a new breed logistics would fall under North

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<v Speaker 1>Carolina law. Does the federal government outside of the FEC

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<v Speaker 1>do they often bring prosecutions for campaign finance violations? Well,

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<v Speaker 1>there's two ways that these investigations go. So the Federal

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<v Speaker 1>Election Commission can conduct an investigation and decide their administrative fine,

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<v Speaker 1>or if they believe that there has been a criminal violation,

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<v Speaker 1>usually wilful and knowing, then they get referred to the

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<v Speaker 1>Justice Department and there's a public Integrity section that would then, uh,

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<v Speaker 1>you know, take that case on and do the investigation

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<v Speaker 1>and bring any any you know, lawsuit against those folks.

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<v Speaker 1>So the Federal Election Commission does not have the ability

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<v Speaker 1>under current law to adjudicate any criminal willful and knowing

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<v Speaker 1>violation that all falls to the d o J and

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<v Speaker 1>the House Democrats. The Oversight Committee has launched an investigation

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<v Speaker 1>into this, not only for the campaign finance, but also

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<v Speaker 1>for the fact that he may have committed perjury the

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<v Speaker 1>last time he testified. Seems as if, you know, he

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<v Speaker 1>gave sort of a non denial denial when he when

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<v Speaker 1>he testified that and perjury. Would perjury be difficult to

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<v Speaker 1>get him on? Oh, you know, that's always a very

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<v Speaker 1>difficult one. And obviously this is operating in a political arena,

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<v Speaker 1>so you know, and the people that would have to

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<v Speaker 1>bring those cases, that case in a criminal court of

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<v Speaker 1>law again would be the Apartment of Justice. In this

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<v Speaker 1>Department of Justice does not seem so inclined, So you know,

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<v Speaker 1>it's out there. Lying to Congress should be a very

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<v Speaker 1>serious thing to do. Some people have, in fact, you know,

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<v Speaker 1>open found guilty and end up either with with criminal sentences.

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<v Speaker 1>But I think, look, I'm gonna say a word a

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<v Speaker 1>little bit, and I'm only saying this in a very

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<v Speaker 1>very small amount in defense of someone like to Joy.

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<v Speaker 1>And you know, here's a CEO type that's running a company.

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<v Speaker 1>And the reality is he probably is accurate and saying

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<v Speaker 1>he has no clue himself. I'm not I'm not saying

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<v Speaker 1>this is in fact the case. But often with CEOs,

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<v Speaker 1>you know, they don't pay a lot of attention to

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<v Speaker 1>u the details and stuff. Sometimes they do, and like

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<v Speaker 1>in the case of Charles Keating, he was he was

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<v Speaker 1>directing all the Keating Five activities, so he knew exactly

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<v Speaker 1>what was going on. But you know, in the case

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<v Speaker 1>of someone likes the joy, you would have us to

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<v Speaker 1>be able to demonstrate and perhaps there is the evidence

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<v Speaker 1>to show that he personally kind of was involved in

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<v Speaker 1>the e effort. He says he wasn't, and there wasn't

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<v Speaker 1>a kind of an email trail or a whistle blower

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<v Speaker 1>that could say yes, Mr de Joy himself was involved

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<v Speaker 1>in this. I wouldn't be shocked to find out that

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<v Speaker 1>he didn't know, because a lot of you know, business

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<v Speaker 1>types don't think they can be bothered. The answer of

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<v Speaker 1>that is always he should know, right And in this case,

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<v Speaker 1>we'll see if there is a record that shows he

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<v Speaker 1>personally was involved. And you know, with me, some of

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<v Speaker 1>these decisions, so that's a matter of again, that's a

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<v Speaker 1>matter of fact that a thorough investigation could actually determine

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<v Speaker 1>that would be left to the state of North Carolina. Then,

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<v Speaker 1>based on the information so far public, it looks like

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<v Speaker 1>most of this activity so far has been beyond the

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<v Speaker 1>statute of five year statute of limitations. Now there's a

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<v Speaker 1>separate question whether or not he remains a Postmaster general.

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<v Speaker 1>That's a different question. It's not legal but political. Thanks

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<v Speaker 1>so much for being on the show, Meredith. That's Mareth McGee,

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<v Speaker 1>Executive director of Issue One. Census has been a legal

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<v Speaker 1>mine field, with one trip to the Supreme Court over

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<v Speaker 1>the edition of a citizenship question and with more than

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<v Speaker 1>four cases now pending against the Trump administration over the census. Now,

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<v Speaker 1>a federal judge in California has ordered the Census Bureau

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<v Speaker 1>to stop winding down operations until hearing next week. Joining

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<v Speaker 1>me is Leon Fresco, a partner at Hollandon Knight, tell

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<v Speaker 1>us about Judge Lucy Coe's order. So Judge Lucy Co

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<v Speaker 1>issued a temporary injunction this weekend. She's in the Northern

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<v Speaker 1>District of California, and there's two aspects of the census case.

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<v Speaker 1>So this aspect is called the winding down aspect. She

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<v Speaker 1>said that the winding down aspect of the census case,

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<v Speaker 1>which means that the government wanted to stop counting the

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<v Speaker 1>amount of people who hadn't applied for the census, already

0:14:06.000 --> 0:14:09.360
<v Speaker 1>using the online and other methods to enter the census.

0:14:09.720 --> 0:14:14.199
<v Speaker 1>They were supposed to stop on October, and instead it

0:14:14.360 --> 0:14:16.960
<v Speaker 1>was stopping on September thirty if they got moved up

0:14:17.000 --> 0:14:20.560
<v Speaker 1>a month, and in fact, people were already getting fired

0:14:20.600 --> 0:14:23.880
<v Speaker 1>by the Census Bureau and they were already getting wound down.

0:14:24.440 --> 0:14:27.840
<v Speaker 1>So the court judge co eatued a temporary restraining order

0:14:27.880 --> 0:14:31.760
<v Speaker 1>saying stopped doing that, stop firing people, stop winding this down,

0:14:32.400 --> 0:14:36.800
<v Speaker 1>and continue with whoever you have on staff counting people

0:14:36.840 --> 0:14:40.840
<v Speaker 1>who haven't been responsive to the census like you were

0:14:40.880 --> 0:14:43.720
<v Speaker 1>intending to do, which was going to be a deadline

0:14:43.760 --> 0:14:48.880
<v Speaker 1>of October to the October thirtieth deadline come about because

0:14:48.920 --> 0:14:52.720
<v Speaker 1>of COVID nineteen was the end of September, the original deadline.

0:14:52.960 --> 0:14:57.120
<v Speaker 1>It was changed and then changed back correct. What actually

0:14:57.160 --> 0:14:59.880
<v Speaker 1>happened was the original deadline was at the end of April,

0:15:00.400 --> 0:15:03.480
<v Speaker 1>and because of COVID nineteen, it got moved to October.

0:15:03.520 --> 0:15:08.560
<v Speaker 1>So everybody adjusted all their operations to moving it until October,

0:15:09.040 --> 0:15:11.760
<v Speaker 1>and then suddenly in the middle of the summer in August,

0:15:12.280 --> 0:15:16.040
<v Speaker 1>the Census Bureau said, no, we're actually changing this again

0:15:16.680 --> 0:15:19.480
<v Speaker 1>and we're winding this down and we're ending this on September.

0:15:20.400 --> 0:15:22.840
<v Speaker 1>But then they started winding it down immediately if they

0:15:22.840 --> 0:15:27.480
<v Speaker 1>started firing people immediately, and so that was going to

0:15:27.560 --> 0:15:31.560
<v Speaker 1>diminish the resources available to actually count people who hadn't

0:15:31.600 --> 0:15:34.520
<v Speaker 1>responded to the census. And so the nature of these

0:15:34.520 --> 0:15:39.000
<v Speaker 1>claims are, well, that's our Venturian capricius for you to say,

0:15:39.080 --> 0:15:42.800
<v Speaker 1>because of COVID nineteen, we needed this extra time until October,

0:15:43.120 --> 0:15:45.040
<v Speaker 1>and now suddenly we don't need it. And there was

0:15:45.080 --> 0:15:48.560
<v Speaker 1>no good reason given it wasn't like there were certain

0:15:48.600 --> 0:15:51.600
<v Speaker 1>metrics of counting them had been met. They simply just

0:15:51.800 --> 0:15:55.480
<v Speaker 1>wound back the date. Is there any evidence as to

0:15:56.200 --> 0:15:59.720
<v Speaker 1>why they wound that the date? Did an order come

0:15:59.800 --> 0:16:04.040
<v Speaker 1>from above? Well, so they're One of the interesting aspects

0:16:04.040 --> 0:16:07.480
<v Speaker 1>of the case is there's a whistle blower who talked

0:16:07.480 --> 0:16:10.400
<v Speaker 1>to the court, and the court said that they have

0:16:10.480 --> 0:16:13.120
<v Speaker 1>to go through a federal whistle blower process. So that's

0:16:13.160 --> 0:16:16.080
<v Speaker 1>interesting if we find out out at some point later

0:16:16.800 --> 0:16:19.480
<v Speaker 1>what will happen with regards to that whistle blower. But

0:16:19.600 --> 0:16:24.360
<v Speaker 1>in the meantime, the other issue that's very fascinating is

0:16:24.920 --> 0:16:29.480
<v Speaker 1>that the only reason that they give is that the

0:16:29.520 --> 0:16:34.440
<v Speaker 1>administration came to some determination that the census part couldn't

0:16:34.480 --> 0:16:40.800
<v Speaker 1>be completed by December, which was what they believe is

0:16:40.840 --> 0:16:44.560
<v Speaker 1>their satutory deadlines to produce a portionment count. They said,

0:16:44.600 --> 0:16:48.640
<v Speaker 1>there's no way to do this if we collect past September,

0:16:50.920 --> 0:16:54.880
<v Speaker 1>and that wasn't something they were uncomfortable with when they

0:16:55.000 --> 0:16:58.520
<v Speaker 1>made these extension of these deadlines, So it's unclear why

0:16:58.560 --> 0:17:02.160
<v Speaker 1>they're suddenly uncomfortable with it now. And Judge co also

0:17:02.240 --> 0:17:08.240
<v Speaker 1>pointed out some conflicting statements made by a top SENUS official. Yes, correct,

0:17:08.359 --> 0:17:12.679
<v Speaker 1>there were certainly serious questions there about the accuracy of

0:17:12.720 --> 0:17:17.119
<v Speaker 1>the census data that were generated by the declaration that

0:17:17.280 --> 0:17:21.280
<v Speaker 1>individual made. Albert Fontano, who was the associate director for

0:17:21.680 --> 0:17:26.240
<v Speaker 1>the Senial Census Program. He had originally declared that the

0:17:26.320 --> 0:17:29.000
<v Speaker 1>lack of field staff would be a barrier and there

0:17:29.080 --> 0:17:31.439
<v Speaker 1>wasn't a way to do this. But at the time,

0:17:31.880 --> 0:17:35.679
<v Speaker 1>there was a May twenty six webinar organized by the

0:17:35.760 --> 0:17:40.359
<v Speaker 1>National Congress of American Indians where they've already said, we

0:17:40.560 --> 0:17:42.879
<v Speaker 1>passed the point where we could even meet the current

0:17:42.960 --> 0:17:47.160
<v Speaker 1>legislative requirement of December thirty one, we can't do that anymore.

0:17:47.640 --> 0:17:49.960
<v Speaker 1>That was sim Olsen, the head of the field operations

0:17:50.040 --> 0:17:54.000
<v Speaker 1>for Census, and so because he had said that, it

0:17:54.119 --> 0:17:57.160
<v Speaker 1>may the idea that now we have to get this

0:17:57.359 --> 0:18:00.920
<v Speaker 1>done by December thirty one, there's a way that that's

0:18:00.960 --> 0:18:03.199
<v Speaker 1>already been said that I was going to be inaccurate.

0:18:03.520 --> 0:18:05.520
<v Speaker 1>So the one reason given that we have to meet

0:18:05.600 --> 0:18:10.119
<v Speaker 1>in December thirty first deadline isn't a valid reason because

0:18:10.160 --> 0:18:12.359
<v Speaker 1>I was already known in May that we weren't going

0:18:12.400 --> 0:18:14.760
<v Speaker 1>to be able to meet that deadline. So is the

0:18:14.880 --> 0:18:19.680
<v Speaker 1>challenge to the Trump administration not counting undocumented immigrants part

0:18:19.680 --> 0:18:22.840
<v Speaker 1>of this lawsuit. Well, so there's two separate lasses that

0:18:23.000 --> 0:18:25.720
<v Speaker 1>those they're going on in parallel, and one of the

0:18:25.800 --> 0:18:28.960
<v Speaker 1>lawsuits is about this issue of whether you can count

0:18:29.040 --> 0:18:33.119
<v Speaker 1>undocumented individuals in the census. But the real basis for

0:18:33.200 --> 0:18:36.199
<v Speaker 1>these plains that are being made at the moment in

0:18:36.280 --> 0:18:40.080
<v Speaker 1>these lawsuits is that it was just arbitrary and capriitus

0:18:40.119 --> 0:18:43.760
<v Speaker 1>to have a deadline, change the deadline, and then change

0:18:43.760 --> 0:18:46.879
<v Speaker 1>it backward again because people had developed enough of a

0:18:46.960 --> 0:18:50.000
<v Speaker 1>reliance interest in these deadlines that that shouldn't have been

0:18:50.040 --> 0:18:52.000
<v Speaker 1>done at that point. Be I mean, if it's being

0:18:52.040 --> 0:18:55.480
<v Speaker 1>made as a sort of sub textual claim that yes,

0:18:55.520 --> 0:18:58.040
<v Speaker 1>there might be this intense that the bigger cities which

0:18:58.080 --> 0:19:01.760
<v Speaker 1>had more of these individuals don't get counted. Experts have

0:19:01.840 --> 0:19:05.800
<v Speaker 1>warned that shortcuts would lead to inaccurate census counts, missing

0:19:05.960 --> 0:19:10.080
<v Speaker 1>the poor, the young, and minority groups. Traditionally the hardest account.

0:19:10.520 --> 0:19:14.480
<v Speaker 1>Is there any evidence that that's true? Well, I think

0:19:14.600 --> 0:19:19.040
<v Speaker 1>everybody who's in general fearful and hiding from law enforcement

0:19:19.480 --> 0:19:22.960
<v Speaker 1>in general because they know that at the moment to

0:19:23.119 --> 0:19:27.600
<v Speaker 1>their advantage that they be seeing less than as opposed

0:19:27.640 --> 0:19:31.040
<v Speaker 1>to be seen more will be harder to count. And

0:19:31.160 --> 0:19:36.120
<v Speaker 1>so the complication than becomes if you're intensive to actually

0:19:36.240 --> 0:19:40.640
<v Speaker 1>count every human being in the in the United States

0:19:41.040 --> 0:19:44.720
<v Speaker 1>in order to apportion this properly, the less resources you're

0:19:44.760 --> 0:19:48.480
<v Speaker 1>putting towards that goal, you're gonna get more people who

0:19:48.480 --> 0:19:51.680
<v Speaker 1>want to be counted as less people who don't want

0:19:51.680 --> 0:19:55.400
<v Speaker 1>to be counted. And so that would have some natural

0:19:55.480 --> 0:20:00.399
<v Speaker 1>relationship to I'm documented individuals. That is the third count

0:20:00.640 --> 0:20:04.040
<v Speaker 1>of the complaints, That is done by the City of

0:20:04.080 --> 0:20:07.040
<v Speaker 1>Los Angeles, the County of Los Angeles, and others filing

0:20:07.080 --> 0:20:10.680
<v Speaker 1>this lawsuits, they're saying it is a pretext to exclude

0:20:10.720 --> 0:20:16.239
<v Speaker 1>a documented forces from the apportionment count. But again, you

0:20:16.280 --> 0:20:19.919
<v Speaker 1>know this, this wasn't the basis so far for the

0:20:19.960 --> 0:20:25.760
<v Speaker 1>courts temporary injunctions. Of the basis was that the justification

0:20:25.840 --> 0:20:29.520
<v Speaker 1>given by the government doesn't match what they said previously,

0:20:30.240 --> 0:20:32.800
<v Speaker 1>and because there was a deadline given in the past,

0:20:32.840 --> 0:20:35.440
<v Speaker 1>they haven't given a good reason why they would change

0:20:35.440 --> 0:20:39.840
<v Speaker 1>the deadline against. So what happens if the Census Bureau

0:20:40.040 --> 0:20:45.520
<v Speaker 1>is not able to complete the census by December thirty one? Well,

0:20:45.600 --> 0:20:49.919
<v Speaker 1>I think the concern that this administration would have is

0:20:49.960 --> 0:20:55.000
<v Speaker 1>that if it ran into late January, that if the

0:20:55.040 --> 0:20:59.800
<v Speaker 1>president President drump was defeated, that Joe Biden could actually

0:21:00.040 --> 0:21:04.080
<v Speaker 1>and said the count as their belief was, this count

0:21:04.119 --> 0:21:09.640
<v Speaker 1>would be more this advantageous to Republicans, I suppose, than

0:21:10.320 --> 0:21:12.919
<v Speaker 1>the count that this president would set. That's sort of

0:21:12.960 --> 0:21:16.960
<v Speaker 1>the theory that's undergirding these lawsuits is that this would

0:21:16.960 --> 0:21:22.000
<v Speaker 1>be the only possible as some explanation that is clear

0:21:22.119 --> 0:21:26.800
<v Speaker 1>and provable. This explanation is the only explanation that that

0:21:26.840 --> 0:21:29.400
<v Speaker 1>they can surmise for why all of this is happening.

0:21:29.800 --> 0:21:33.600
<v Speaker 1>And there was a request to the Senate to extend

0:21:33.640 --> 0:21:38.360
<v Speaker 1>the deadline beyond December one, and they never took that up. Correct,

0:21:38.400 --> 0:21:40.200
<v Speaker 1>And that's one of the issues that's actually going to

0:21:40.280 --> 0:21:43.920
<v Speaker 1>be under debate right now during this period, right before

0:21:43.960 --> 0:21:49.320
<v Speaker 1>the Continuing Resolution needs to pass on September. And there

0:21:49.400 --> 0:21:53.080
<v Speaker 1>is some beliefs that there is some bipartisan consent this

0:21:53.320 --> 0:21:56.320
<v Speaker 1>here to move defenses because you know, there are states

0:21:56.359 --> 0:21:59.960
<v Speaker 1>like Texas also that are large states that want everybody

0:22:00.040 --> 0:22:03.359
<v Speaker 1>COUNTID in Texas, that are more read you know, and

0:22:03.480 --> 0:22:07.240
<v Speaker 1>say things with Florida than just states like California or

0:22:07.320 --> 0:22:10.120
<v Speaker 1>New York. So it will be interesting to see if

0:22:10.200 --> 0:22:13.480
<v Speaker 1>the Congress is part of the Continuing Resolution actually ends

0:22:13.520 --> 0:22:17.199
<v Speaker 1>up expending these deadlines but not needing these lawsuits. So

0:22:17.280 --> 0:22:20.080
<v Speaker 1>tell us more about the second aspect of these lawsuits

0:22:20.119 --> 0:22:23.959
<v Speaker 1>and where that stands right well. The second aspect is

0:22:24.520 --> 0:22:27.439
<v Speaker 1>the issue that has now been argued in oral argument

0:22:27.520 --> 0:22:30.400
<v Speaker 1>in New York and will be argued soon in California,

0:22:30.720 --> 0:22:34.800
<v Speaker 1>which is can you actually include undocumented immigrants from the census.

0:22:35.640 --> 0:22:39.680
<v Speaker 1>And so that's the issue that is being argued, and

0:22:39.760 --> 0:22:43.119
<v Speaker 1>there's all kinds of peripheral issues there about whether you

0:22:43.160 --> 0:22:46.160
<v Speaker 1>have to wait to do that until after the show

0:22:46.200 --> 0:22:50.399
<v Speaker 1>that you've been damaged by not counting people, or whether

0:22:50.440 --> 0:22:53.960
<v Speaker 1>you can do it now preemptively. But it appears as

0:22:53.960 --> 0:22:56.800
<v Speaker 1>the Second Circuit, where they have a three juch panel

0:22:56.840 --> 0:22:59.600
<v Speaker 1>with some district court and some second Circuit and that

0:22:59.600 --> 0:23:03.600
<v Speaker 1>would go directly to the Supreme Court if they actually

0:23:04.720 --> 0:23:09.600
<v Speaker 1>banned the memo that the President wrote. That panel seems

0:23:09.640 --> 0:23:14.120
<v Speaker 1>to have some skepticism of the government's arguments here, and

0:23:14.200 --> 0:23:18.000
<v Speaker 1>they seem to think that this policy is wrong to

0:23:18.040 --> 0:23:21.879
<v Speaker 1>say that you can't count undocumented individuals, and that the

0:23:21.960 --> 0:23:25.359
<v Speaker 1>timing is fine now at the moment to be able

0:23:25.359 --> 0:23:27.280
<v Speaker 1>to make this claim. You don't have to wait until

0:23:27.400 --> 0:23:31.280
<v Speaker 1>later to show that you were harmed by the accounts

0:23:31.320 --> 0:23:35.240
<v Speaker 1>that were subsequently done. And so because of that, I

0:23:35.640 --> 0:23:38.959
<v Speaker 1>can foresee that kept getting to the Supreme Court relatively quickly.

0:23:39.800 --> 0:23:43.160
<v Speaker 1>Who has the stronger argument at the Second Circuit as

0:23:43.160 --> 0:23:48.119
<v Speaker 1>to whether or not you can count undocumented immigrants. Well,

0:23:48.240 --> 0:23:52.199
<v Speaker 1>it seems that if the Second Circuit panel accepted the

0:23:52.359 --> 0:23:56.679
<v Speaker 1>argument that it would be illegal and unconstitutional not to

0:23:56.800 --> 0:24:01.360
<v Speaker 1>count undocumented immigrants from the census have to see. They

0:24:01.400 --> 0:24:03.919
<v Speaker 1>seem to be having some struggle perhaps with is this

0:24:04.040 --> 0:24:06.760
<v Speaker 1>the right time to make that argument, or do you

0:24:06.800 --> 0:24:09.639
<v Speaker 1>make it after you see the formula and after you

0:24:09.640 --> 0:24:12.720
<v Speaker 1>see the counts so that you can better debate what

0:24:12.960 --> 0:24:16.199
<v Speaker 1>was actually counted or not. But it seems like they

0:24:16.280 --> 0:24:19.320
<v Speaker 1>were convinced in that argument, although we need to see

0:24:19.320 --> 0:24:22.960
<v Speaker 1>the order to see that at the end of the day,

0:24:23.600 --> 0:24:27.760
<v Speaker 1>the the challenge could occur now and that there is

0:24:27.760 --> 0:24:30.679
<v Speaker 1>an unlimited power on the President to determine how to

0:24:30.720 --> 0:24:35.880
<v Speaker 1>apportion the districts. And so it seems likely that we're

0:24:35.880 --> 0:24:37.600
<v Speaker 1>going to be getting an order in the next week

0:24:37.680 --> 0:24:41.560
<v Speaker 1>or two that says that this memo is illegal, and

0:24:41.600 --> 0:24:44.480
<v Speaker 1>then that would be challenge to the Supreme Court. So now,

0:24:44.520 --> 0:24:47.840
<v Speaker 1>remind us the Supreme Court has already ruled on the

0:24:47.880 --> 0:24:51.960
<v Speaker 1>census once via five to four vote. Remind us what

0:24:52.480 --> 0:24:56.320
<v Speaker 1>was decided then, right, the Supreme Court at that point

0:24:56.760 --> 0:25:01.000
<v Speaker 1>invalidated the process and a five four decision by which

0:25:01.119 --> 0:25:05.920
<v Speaker 1>the Census Bureau tried to ask a citizenship question in

0:25:05.960 --> 0:25:09.000
<v Speaker 1>the census because they said that that process was arbitrary

0:25:09.040 --> 0:25:12.080
<v Speaker 1>and capricius and didn't follow the process by which you

0:25:12.080 --> 0:25:16.160
<v Speaker 1>would insert such a question in the census. They didn't say.

0:25:16.320 --> 0:25:20.600
<v Speaker 1>They didn't say one way or the other, definitively, what

0:25:20.840 --> 0:25:22.680
<v Speaker 1>is the fate of whether you could ask such a

0:25:22.760 --> 0:25:25.920
<v Speaker 1>citizenship questions? Nor did they say whether it would be

0:25:25.960 --> 0:25:31.120
<v Speaker 1>illegal or not to exclude undocumented individuals from the census.

0:25:31.119 --> 0:25:35.800
<v Speaker 1>But nevertheless, that claim appears to be heading more squarely

0:25:36.320 --> 0:25:40.240
<v Speaker 1>to a chord that appears to have for sure for

0:25:40.520 --> 0:25:43.120
<v Speaker 1>judges that seems to think that that's fine to exclude

0:25:43.160 --> 0:25:46.920
<v Speaker 1>undocumented immigrants, for the seems to think it's not fine

0:25:47.000 --> 0:25:49.400
<v Speaker 1>to exclude. And then we're gonna be left to see

0:25:49.400 --> 0:25:51.399
<v Speaker 1>what justice Roberts will be able to come up with

0:25:51.480 --> 0:25:53.639
<v Speaker 1>his two as he was the swing vote in the

0:25:53.680 --> 0:25:58.399
<v Speaker 1>prior census case to determine whether undocumented individuals can be

0:25:58.440 --> 0:26:00.879
<v Speaker 1>counted in the census. There are more than half a

0:26:00.920 --> 0:26:05.080
<v Speaker 1>dozen other lawsuits you mentioned a few that are percolating

0:26:05.160 --> 0:26:09.720
<v Speaker 1>through the system, and so could they be conflicting decisions.

0:26:10.680 --> 0:26:14.840
<v Speaker 1>They're absolutely could be conflicting decisions. But the point is,

0:26:14.920 --> 0:26:18.240
<v Speaker 1>as long as there's one chord that is issuing either

0:26:18.280 --> 0:26:22.760
<v Speaker 1>a temporary or training order or a preliminary injunction, then

0:26:23.040 --> 0:26:26.880
<v Speaker 1>and and they comment on a nationwide basis that this

0:26:27.040 --> 0:26:30.960
<v Speaker 1>means that the United States Department of Justice would have

0:26:31.080 --> 0:26:33.560
<v Speaker 1>to go to the Supreme courts to get that I'm done.

0:26:34.119 --> 0:26:37.800
<v Speaker 1>And so there's three bites of the apple that the

0:26:37.840 --> 0:26:40.840
<v Speaker 1>plaintiffs are trying. They're trying in the districts of Maryland,

0:26:40.880 --> 0:26:43.199
<v Speaker 1>they're trying in the southern districts of New York, and

0:26:43.280 --> 0:26:46.360
<v Speaker 1>they're trying in the northern districts of California. And they

0:26:46.359 --> 0:26:49.400
<v Speaker 1>only have to be right one. And if they're right one,

0:26:49.760 --> 0:26:52.960
<v Speaker 1>this will mean that that case will go to the

0:26:53.000 --> 0:26:57.080
<v Speaker 1>Supreme Court. Who are the plaintiffs in these cases? Some

0:26:57.240 --> 0:27:00.520
<v Speaker 1>are groups of our city, from our county, from our state,

0:27:01.200 --> 0:27:04.640
<v Speaker 1>and they're sort of interspersed by where these locations are.

0:27:05.040 --> 0:27:07.600
<v Speaker 1>The New York case is the state of New York

0:27:07.760 --> 0:27:12.920
<v Speaker 1>luck some localities. The the Dordan District of California case

0:27:12.960 --> 0:27:15.920
<v Speaker 1>has a lot of California based localities. Of the Maryland

0:27:15.960 --> 0:27:21.200
<v Speaker 1>case as more immigration group type places in it. Let's

0:27:21.240 --> 0:27:25.440
<v Speaker 1>say Joe Biden wins the election and the census had

0:27:25.480 --> 0:27:29.680
<v Speaker 1>been completed the information handed over by December thirty one.

0:27:29.920 --> 0:27:34.080
<v Speaker 1>Can there be litigation then to dispute the findings of

0:27:34.119 --> 0:27:38.800
<v Speaker 1>the census I mean, how would that even work out? Well, yes, technically.

0:27:39.000 --> 0:27:43.120
<v Speaker 1>So let's say let's say that the census comes out

0:27:43.200 --> 0:27:45.520
<v Speaker 1>during a time where Joe Biden as president, and he

0:27:45.600 --> 0:27:48.959
<v Speaker 1>said I don't want any of this immigration unrelated stuff

0:27:49.400 --> 0:27:52.639
<v Speaker 1>impacting the census in any way, shape or ford. You

0:27:52.720 --> 0:27:56.240
<v Speaker 1>still could have litigation where the states that don't want

0:27:56.240 --> 0:28:00.359
<v Speaker 1>I'm documented individuals counted could do and and say that

0:28:00.480 --> 0:28:02.719
<v Speaker 1>they shouldn't be counted because of a portion had been

0:28:02.760 --> 0:28:06.639
<v Speaker 1>brief that their apportunateen is being negatively affective that you

0:28:06.640 --> 0:28:10.920
<v Speaker 1>know that wasn't filed or in any other decade. But

0:28:11.040 --> 0:28:14.720
<v Speaker 1>maybe this issue is percolated to such a powerful political

0:28:14.760 --> 0:28:17.840
<v Speaker 1>issue that you might see that this time around. Thanks

0:28:17.840 --> 0:28:21.000
<v Speaker 1>for being on the Bloomberg Law Show. Leon. That's Leon Fresco,

0:28:21.119 --> 0:28:24.000
<v Speaker 1>a partner at Hollandon Knight. The stakes are high in

0:28:24.040 --> 0:28:27.760
<v Speaker 1>these cases. The census helps determine how one point five

0:28:27.880 --> 0:28:31.440
<v Speaker 1>trillion dollars in federal funding is distributed and how many

0:28:31.480 --> 0:28:35.680
<v Speaker 1>congressional seats each state gets in apportionment. As of Saturday,

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<v Speaker 1>more than eighty six percent of households have been counted.

0:28:38.920 --> 0:28:42.040
<v Speaker 1>More than sixty five percent of households were counted from

0:28:42.040 --> 0:28:47.200
<v Speaker 1>self responses online, by mail, or by telephone, and tent

0:28:47.320 --> 0:28:50.360
<v Speaker 1>of households were counted by census takers who went to

0:28:50.440 --> 0:28:54.240
<v Speaker 1>households that hadn't yet answered the questionnaire. And that's it

0:28:54.360 --> 0:28:57.200
<v Speaker 1>for this edition of Bloomberg Law. Remember you can always

0:28:57.240 --> 0:28:59.800
<v Speaker 1>get the latest legal news on our Bloomberg Law podcast.

0:29:00.080 --> 0:29:03.320
<v Speaker 1>You can find them on iTunes, SoundCloud, or Bloomberg dot

0:29:03.320 --> 0:29:07.560
<v Speaker 1>com slash podcast slash Law. I'm June Grasso. Thanks so

0:29:07.640 --> 0:29:08.400
<v Speaker 1>much for listening.