Transcripts For CNNW Erin 20240703 : comparemela.com

Transcripts For CNNW Erin 20240703

Carrying a dangerous weapon in a place of religious worship. Wolf . Brian todd reporting, thank you, brian. To our viewers, thanks very much for watching. Erin Burnett Outfront starts erin Burnett Outfront starts right now. Captions by vitac www. Vitac. Com outfront next, breaking news. Fraud, a new york judge ruling that donald trump and his family repeatedly committed fraud illegally inflating Property Values by billions. Is this just the beginning of the end for trumps Business Empire . Were going to speak to a trump Business Insider who say its was trumps m. O. To deceive, work with him for years. Plus, our Fred Pleitgen suddenly found himself in the middle of the ukrainian offensive not far from heavily Armed Russian troops. An incredible report that you will see first. And we are live in Southern Mexico where thousands of migrants are making their way north, some held at gunpoint. This is an outfront exclusive this hour. Lets go outfront. And good evening. Im erin burnett. Outfront tonight, we begin with the breaking news. Fraud. The judge finding donald trump engaged in repeated fraud for years. It puts the existence of trumps entire business at risk tonight. And a new york judge is ruling that trump and his sons are liable for providing false Financial Statements over a decade. And here is the judges ruling. It is a complete rejection of trumps arguments that he did not lie about the value of golf courses, hotels, highrises, his own apartment, maralago, arguments that a judge in new york is ruling tonight are bogus. The groundbreaking ruling coming just days before the case w was going to head to trial. That means that the trial itself will mostly focus not on whether trump did it but on what hes going to pay for having done it, the damages. Those could be massive and transformational. The new York Attorney general is asking for a quarter billion dollars in damages. And the judges 45page opinion is blistering. Using the words bogus again and again you see this. And the judge breaks down fraudulent example after example. The judge writing that trump is just one example of inflating the value at trump tower by three times, overvaluing it by as much as 207 million. Now, in this case, the judge writes, and i quote, a discrepancy of this order of magnitude by a Real Estate Developer can only be considered fraud. The judge continues to say of trumps business fraud, quote, this is a fantasy world, not the real world. But it is important to note that this is the entire world that trump created and sold the world through the apprentice reality tv series, a world that he sold voters, and a world, frankly, that vaulted him to the white house. Nobodys ever been more successful than me. Im the most successful person ever to run. That is part of why he won. And tonight not only is the judge ruling that fraud was the actual reality, but that donald trump and his two sons, eric and donald trump jr. Are losing their business certificates. That may sound esoteric, but what it could mean is that the Trump Organization actually ceases to exist entirely in the state of new york. Now, this is an incredible thing to say. And it is an important and groundbreaking moment that we are in. I want to get straight to Brynn Gingras in new york outside trump tower. What more can you tell us about what the judge is saying in this ruling . Reporter yeah, i mean, erin, its a huge groundbreaking ruling. It also paves the way for the new York Attorney general really to, like you said, figure out what damages now trump is going to owe when this civil trial does expected to get started next week. And again, the judge here deciding on two of the claims, and new York Attorney general Letitia James. But really the crux of it essential aye saying that he and his sons did lie, in fact, about their assets. This is golf courses, this is hotels, its his home. The fact that he lied on paperwork according to this judge, the size of his trump tower apartment, according to the judge, overevaluating it by 114 to 207 million. And also in this court ruling gives a big blow to trump who essentially said he wasnt lying on these Financial Statements and they werent fraudulent and they contained disclaimers. I want to read an excerpt of what the judge wrote in his 35page ruling. It said in defendants world, rent regulated apartments are worth the same as unregulated apartments. Restrictions can evaporate into thin air. A disclaimer by one party casting responsibility on another party, exonerates the other partys lies. That is a fantasy world, not the real world. And my colleague got reaction from trumps attorney regarding this hearing, essentially, his attorney saying that this was an outrageous decision and is going to be seeking appeal. There is, erin, its important to point out an appeal in front of the court right now. There was a decision expected on that appeal some time this week that could factor in possibly a delay for the civil trial thats expected to get started next week. But, as of now, its a go for next week, and the other matters that will be brought up in that trial. But, as you mentioned, Letitia James getting a huge win here, essentially, trying to put trump and his sons out of business in the state of new york, and we can see how that trial continues as it gets started next week. Brynn, thank you very much. I want to bring in ryan goodman, coeditor in chief of just security, former special counsel at the defense department. And jamie gangel. And former assistant u. S. Attorney for the Southern District of new york and hes done a lot of real Estate Litigation in the jurisdiction here at hand. Ryan, we go through here, park avenue, 40 wall street, maralago, trump tower, 7 springs. Every time theyre overvalued by hundreds of millions of dollars. I mean, it adds up to billions. Its incredible. It really is astounding. And the judge says that there is conclusive evidence of this. Thats why it does not need to go to trial. Its an open and shut case, according to the judge. And that means that were just going to be determining, as said, damages up to at least a quarter Million Dollars or more. But the big point is also what the judge orders on the basis of this, which is that all of the certificates of these businesses are hereby canceled and theres a dissolution of these companies. Within ten days the parties have to recommend who will be the receiver, because its going to go into receivership. And that could be the Trump Organization itself, these business certificates. Do we understand from the ruling exactly what that means . We dont understand in a certain sense what are the followon effects because maralago, for example, part of the valuation. But in terms of the Trump Organization or organizations doing business in new york, that seems to be based on this ruling over. Its like youre closed for business pending an appeal. And this will obviously be appealed. When we say this is sort of gro groundbreaking. When you look at Something Like this, this sort of overvaluation. Heres who is valuing the properties and then you went to the Insurance Companies and the banks and said, oh, its 400 more. Again and again and again, thats the incontravertible evidence. Its not about somebody who makes a mistake or even does fraud once. Its about a business thats engaged in persistent fraud. And thats what hes determined here. And he very carefully reviewed the contentions on both sides. There was a lot of evidence on the Attorney Generals side he concluded and on trumps side it was sometimes just trumps, you know, subjective view that i think this is worth more than everybody thinks it is. By 400 . It just is what it is. And its not credible. You dont need trials to decide these issues. Theres no factual dispute that could be had. The judge did not have to make a ruling here, couldve just let the whole thing go to trial. The facts are inconvertible guilty, essentially. Is that unprecedented or unusual, and what does that leave for the jury . Summary judgment isnt unprecedented. It does happen from time to time. But in a case like this where the Summary Judgment finding isnt just on some small issue, its on the central question of fraud. Its devastating and now its just a matter of how much is this going to hurt trump and his business and his family . How much will the damages be, will the judge decide to pull the certificate . So, its just a question of how bad its going to be. This was a bad day for trump and also a bad day for his lawyers who were sanctioned. Harry uses the word devastating. This is devastating. This is hitting donald trump where it hurts. If you think he is angry about the four cases and those 91 charges, he is furious about this because this is about money, property, his business. Look, im sure were going to see a playbook where hes going to come out in a very short time and hes going to yell and scream and deny. But there is no question, Michael Cohen once said to me, you want to get to donald trump, get to his money. And this is what this case will do. I mean, obviously, no one ever has known the extent of his real net worth other than the fact that he inflated it. Thats part of the reality for anybody who covered him knew. But how much of it, does this really put it all at risk . I think so. And, in fact, the judge says at one point when he says conclusive evidence, he says that hes giving credit to the entire case essentially that the Attorney General has mounted that this includes between 800 million and 2. 2 billion in overvaluation. So, it seems to fall apart. Theres other aspects of it that just show this to be kind of a house of cards. Theres one remarkable line where the judge says one reason trump says he could find a buyer in saudi arabia to pay any price for the property, which is just obviously a lot has been made of ivanka trump who is not in this, the sons are not ivanka, and jared and the money they received from saudi arabia, a couple billion dollars since they left the white house to invest. It is interesting that in this, its donald trump, and its the sons, and she has managed to stay away from this. Correct. Association one of the things that has happened since all of these cases have begun is we have seen ivanka and jared distance themselves, and clearly she has separated herself. I dont know if she was part of the trump business exactly. But can we also put this in the perspective of his voters and his supporters . We have not seen any of these other cases erode support among his base. In fact, hes gone up in the polls. Im curious about this one because it speaks to what he has sold himself. Right. When he says i am the most successful person. And now apparently not so much. Right. They can read it for themselves. I dont know whether they will, harry. But they can. Yeah, its a very thorough opinion. And the judge, hes writing for a number of audiences. First, the parties and the lawyers. Secondly, the Appeals Court thats going to scrutinize this very, very carefully. But i think the judge is aware that this is a case thats attracted a lot of media attention, a lot of public attention. So its written for the public audience as well. Its very readable, and its very compelling. Because its real estate, you can look at a picture of each place. You mentioned the appeals, obviously, and the unprecedented nature of the fact that his actual attorneys were sanctioned, which you say is very, very rare. So, how do you evaluate the Appeals Prospects and timing that were going to find that out . So there are two issues. The first issue is that theres a motion pending now to stay the balance of the case. And thats going to be decided by an Appellate Court in new york in a few days. Assuming thats denied, this trial will go forward, and then everything will be taken up at the end of the case, first by an intermediate Appellate Court and then the court of appeals. Those appeals will take years to finally resolve these issues. But its not clear that the judge will stay his order. If the judge says im going to order the dissolution effectively of the Trump Organization. If no judge stays it, the appeal will go on, it wont have the consequence that trump will think. All right. And thatll be what well be watching. Thank you all very much. And, next, the breaking news continues. The new York Attorney general weighing in on this stunning ruling by the judge. Im going to speak on jack odonnell. Hes a trump Business Insider, worked with him for years and years and years. Hes going to tell you about a pattern of deceit that he says he saw from the former president. Plus, incredible new video tonight from the front lines in ukraine. When Fred Pleitgen was there, it was a major Overnight Offensive by Ukrainian Forces. You will see it here first. And more from jake tappers interview with Cassidy Hutchinson this hour. I felt that what she did that day was disloyal. Saying that now with the hindsight and the experience that ive had sounds ludicrous. So, who is hutchinson talking about . Breaking news. New York Attorney general Letitia James just coming out with a statement following the fraud ruling against former President Donald Trump and his sons. James saying, quote, today a judge ruled in our favor and found that donald trump and the Trump Organization engaged in years of financial fraud. We look forward to presenting the rest of our case at trial. And tonight a former top corporate officer for trump saying hes a firsthand witness to what he calls trumps long history of fraud. Outfront now jack odonnell, the former president and Chief Operating Officer of the Trump Plaza Hotel and casino. And, jack, thank you very much for being with me. You read through this, and as harry, a new York Real Estate attorney was just pointing out. Its not just fraud once or twice, its fraud again and again and again over many years. How much is a blow is this ruling to trump . I think its a big blow to him. I think, obviously, for the financial aspect of it. But you know donald trump, its a big blow for his ego. I mean, the perception of failure is just devastating for him, you know, as a person. , and jack, it goes through examples. As i said, park avenue, trump tower, his triplex there, 40 wall street, maralago. It goes through again and again. In the case of seven springs, which is the big estate that he has up in bedford up in Westchester County north of new york, the judge says even giving the defendants the benefit of millions of dollars that they inflated the value of that property by over 400 . And thats what every one of these examples are. But when you read that, does that surprise you . Does that sound unusual . Well, not at all, erin. Harry said something that the judge referenced as persistent fraud. Its been persistent and consistent for well beyond the decade that the judge referenced. Going back to the 90s, you could almost say fraud was a part of the Trump Organizations mission statement. I ran a business, it was very successful. And this is just an anecdotal, you know, response to your question. The plaza was doing terrific and the taj mahal was going to open up. That was going to devastate the market in atlantic city. And at that time we were putting together a budget for the business. We projected a slight decrease in operating income. And we had decreased it to 64 million. When that budget got to new york, they went numberserk, his advisers and lawyers and ultimately donald trump to my face said this budget wont fly with my banks. And at that time he was beginning to have this huge financial difficulty. Literally i said to him, well, what can i do, were not going to be able to do much more money than this. He said you need to make me a budget at 95 million. I literally created a budget for new york that was unrealistic. And that he could submit to his banks so he could borrow money. And erin, you know, its one thing to lie in the media. Its one thing to lie on a speeches that you are giving. But if you inflate the value for your personal benefit, its fraud. And he has been doing this for years and years. I mean, thats incredible when you give that specific example that he said lie by 30 million so he could go to the banks. Its right there, its exactly here. And, as you point out, what youre describing would have this fact pattern here. Its years and years before. So, jack, do you think the future of trump org and of trumps entire Business Empire are now in serious doubt . Well, it obviously is in doubt. You have to have corporate standing in the state that youre doing business, and it can be revoked very easily. So, forget the financial side of it for a minute. They could step in and say were not going to allow you to operate. Now, it doesnt mean that he couldnt relocate somewhere or maybe whatever, but, no, the organization is a threat right now, and the fines here could be monumental depending on

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