Categories
Politics

Trump Org safety chief Matthew Calamari Jr. to testify earlier than Manhattan grand jury

Former U.S. President Donald Trump speaks during a rally in Cullman, AL.

Marvin Gentry | Reuters

Matthew Calamari Jr., the Trump Organization’s director of security and son of its chief operating officer, is expected to testify Thursday before a Manhattan grand jury investigating former President Donald Trump’s company, a person with direct knowledge of the matter told CNBC on Wednesday.

Calamari Jr. was served a subpoena for his testimony earlier this week, the person said.

The person declined to be named in order to discuss the secret grand jury proceedings.

The development in the ongoing investigation comes two months after the Trump Organization and its chief financial officer, Allen Weisselberg, were charged in connection with an alleged tax-avoidance scheme spanning 15 years. Weisselberg and the Trump Organization have pleaded not guilty.

Calamari Jr.’s testimony could grant him crucial immunity protections in the wide-ranging and long-running criminal investigation by Manhattan District Attorney Cyrus Vance Jr.’s office.

The office of New York Attorney General Letitia James is also probing Trump’s company “in a criminal capacity.”

CNBC Politics

Read more of CNBC’s politics coverage:

A spokesman for Vance’s office declined to comment. The Trump Organization did not immediately respond to a request for comment on the testimony.

The Wall Street Journal, which first reported Wednesday that Calamari Jr. is expected to testify this week, also reported that senior Trump Organization finance official Jeffrey McConney is expected to go before the grand jury this week as well.

The prosecutors are looking at how Calamari Jr. reported on his taxes an apartment he received from Trump’s company, the Journal reported.

McConney prepared the personal tax returns of Matthew Calamari Sr., according to the newspaper.

The elder Calamari has reportedly come under scrutiny by prosecutors over whether he violated tax rules when he received benefits from the company.

Categories
Health

Elizabeth Holmes’ attorneys cite unfavourable protection in request to develop jury choice

Elizabeth Holmes, founder and former executive director of the Theranos Center, is leaving the U.S. Federal Court in San Jose, California on May 6, 2021.

Nina Riggio | Bloomberg | Getty Images

In the case of Elizabeth Holmes, it seems that any advertisement is not a good advertisement.

Attorneys for the former Theranos CEO cite widespread negative media coverage as a reason to add to the pool of jurors in their upcoming criminal trial.

A 21-page motion filed late Thursday set out examples of extremely descriptive and unflattering stories about Holmes in recent years.

“The advertising is consistently negative,” said Holmes lawyers. In addition, she is “routinely mentioned in derisive and inflammatory terms directly relevant to the cable fraud charges in this case. Media coverage describes her as” fraud “,” cheater “,” cheater “,” more ashamed. ” Theranos Founder “. Cheater and an angry psychopath.

Holmes requests an extended subpoena from the jury and has proposed a written questionnaire for the jury. Holmes attorneys wrote, “Media coverage also addresses adverse tropes and recurring issues, often related to Ms. Holmes’ behavior, voice and physical appearance.” They say the negative publicity dates back to at least 2015 and “has focused intensely on Ms. Holmes personally, not just the circumstances surrounding the dissolution of Theranos’ company”.

In the court record, Holmes’ lawyers said they conducted a comprehensive search of news articles and other media that generated 462,000 entries. These included 3,755 results from “Negative Personal News” and 2,862 results from “Negative Business News”.

Holmes attorneys proposed a 46-page jury questionnaire covering topics ranging from working in the blood test or the medical industry to experience in the venture capital world.

The questionnaire also asks whether the prospective juror has ever been a victim of fraud, had a bad experience with an investment, or was involved in a dispute over misdiagnosis.

Holmes left Stanford at the age of 19 and founded Theranos. He claimed his technology could accurately perform thousands of tests on just a drop or two of blood. The former executive has pleaded guilty to under a dozen fraud charges relating to misleading patients and investors.

The judge has scheduled a court hearing on June 15th. The jury selection is scheduled to begin in San Jose on August 31st.

Categories
Health

Jury can hear restricted proof of CEO way of life

Theranos founder Elizabeth Holmes leaves the Robert F. Peckham Federal Building with her defense team in downtown San Jose, Calif., on Tuesday, May 4, 2021.

MediaNews Group/The Mercury News via Getty Images | MediaNews Group | Getty Images

Jurors in the trial of Elizabeth Holmes will hear evidence about her extravagant lifestyle as Theranos CEO but with some limitations.

That’s the ruling issued by U.S. District Court Judge Edward Davila late Saturday as part of a 100 page response to motions in Holmes’ upcoming criminal trial.

The judge granted in part Holmes’ motion to exclude evidence referencing her extravagant lifestyle outside of her position as chief executive of the blood-testing start-up.

“The Government may introduce evidence that Holmes enjoyed a lifestyle as Theranos CEO that is comparable to those of other tech company CEOs. This includes salary, travel, celebrity, and other perks and benefits commensurate with the position,” Davila wrote in the filing.

However, “references to specific purchases or details reflecting branding of clothing, hotels, or other personal items is not relevant, and the prejudicial effect of that evidence outweighs any probative value,” the judge added.

The ruling is a partial victory for Holmes as prosecutors cannot introduce details about Holmes’ specific purchases and personal items outside of her position as CEO. Holmes lived in an expensive rental home, traveled by private jet, stayed at luxury hotels and employed Theranos-paid assistants to run her lavish shopping sprees.

“Each time Holmes made an extravagant purchase, it is reasonable to infer that she knew her fraudulent activity allowed her to pay for those items,” Davila wrote. “While the benefits of these purchases are not as directly tied to the fraud…it may still be probative of Holmes’ scienter.”

The ruling comes two weeks after Holmes battled it out with prosecutors in court over whether details of her wealth, lifestyle and perks she attained as CEO would be relevant to jurors in her trial.

At the height of Theranos, the start-up was valued at $9 billion and Holmes was touted as the world’s youngest self-made woman billionaire. The company collapsed in 2018 following a Wall Street Journal investigation that revealed failings in the blood-testing technology.

Davila ruled on more than 20 dueling motions on what jurors can hear in her trial, scheduled to begin on Aug. 30.

A motion by the government to admit business-related text messages between Holmes and her co-defendant Ramesh “Sunny” Balwani was denied by Davila.

Prosecutors say the messages show the two top executives knew how much trouble Theranos was in before it collapsed. In a November 2014 text to Holmes, Balwani describes one Theranos lab as a “f*cking disaster zone,” adding he would “work on fixing this.”

Holmes and Balwani have both pled not guilty to a dozen criminal wire fraud charges in connection with deceiving investors, patients and doctors.

Categories
Politics

Grand jury expenses Minneapolis cops with civil rights violations

This combination of photos, provided by the Hennepin County Minnesota Sheriff’s Office on Wednesday June 3, 2020, shows Derek Chauvin from left, J. Alexander Kueng, Thomas Lane, and Tou Thao. Chauvin is charged with the murder of George Floyd, second degree, a black man who died after being detained by him and other Minneapolis police officers on May 25th. Kueng, Lane and Thao were accused of helping and assisting Chauvin.

Hennepin County Sheriff’s Office | AP

Former Minneapolis Police Officer Derek Chauvin listens to a jury found guilty of second degree murder, third degree murder and second degree manslaughter in the death of George Floyd in Minneapolis, Minnesota, United States on April 20, 2021 found in a still image from video.

Pool via Reuters

Federal prosecution accuses Chauvin, who held his knee on or around the neck of a handcuffed and recumbent Floyd for more than nine minutes, killing the 46-year-old while violating his right before the use of inappropriate force officer to be protected by a police force.

It also accuses two of Chauvin’s colleagues – Tou Thao and J. Alexander Kueng – of “deliberately” failing to intervene to prevent Chauvin from using unreasonable force, a failure that also led to Floyd’s death.

All three ex-officers, along with the fourth, Thomas Lane, are accused of causing Floyd to die by deliberately failing to help him when they saw Floyd “lying on the floor clearly in need of medical attention”.

Floyd was arrested by police on suspicion of using a counterfeit invoice in a purchase.

In the separate federal indictment related to his arrest of the 14-year-old, Chauvin is also charged with holding his knee by the boy’s neck and upper back, even after the teenager was “prone, handcuffed and unopposed”.

“This crime resulted in bodily harm to the boy,” the prosecution said.

Chauvin, whose actions against the boy were caught on camera, responded to a call from a woman who said her son and daughter assaulted her, the Minneapolis Star Tribune reported. The Star Tribune also reported that Chauvin repeatedly hit the boy in the head with his flashlight after the boy refused to get off the floor and then choked the boy unconscious with his knee.

The federal criminal charges are separate from a US Department of Justice investigation into the practices of the Minneapolis Police Department announced by Attorney General Merrick Garland the day after Chauvin was convicted.

Garland said the probe will assess whether the MPD “has a pattern or practice of using excessive force, including during protests”.

The Star Tribune reported last week that following the state jury rulings against Chauvin, prosecutors ordered a grand jury in the Minnesota District Court to indict Chauvin and the other three police officers involved in the arrest of Floyd. The newspaper had also reported that federal authorities wanted to indict Chauvin over the 14-year-old case.

Chauvin, an 18-year-old police veteran, is due to be tried in June.

His attorneys appealed earlier this week, arguing that public relations work on the case last year violated Chauvin’s right to a fair trial. The appeal also said the trial judge wrongly failed to grant a defense motion attempting to bring Chauvin to justice outside of Minneapolis.

All four ex-cops are charged in the new federal indictment of deprivation of rights under the color of the law for “deliberately depriving George Floyd of the right to be free and protected by the Constitution and United States law, free to be safe from improper seizure, which includes the right to be exempt from the use of improper force by a police officer. “

One of the counts, directed exclusively to Chauvin, is that the cop kept his left knee over Floyd’s neck and his right knee over Floyd’s back and arm, and kept his knees on Floyd’s neck and body even after Floyd stopped responding. “”

“This crime resulted in the assault and death of George Floyd,” the indictment read.

CNBC policy

Read more about CNBC’s political coverage:

Count two of the indictment states that Thao and Keung were “aware” that Chauvin was using his knee to hold Floyd by the neck and that he continued to do so “after Floyd stopped responding.”

“The defendants deliberately failed to intervene to stop the use of inappropriate force by the defendant Chauvin,” the indictment reads. “This crime resulted in bodily harm and the death of George Floyd.”

All four officers are collectively charged with violating Floyd’s civil rights by “deliberately acting indifferent to his serious medical needs.”

“In particular, the defendants saw George Floyd lying on the floor in urgent need of medical attention and willfully fail to help Floyd, thereby deliberately acting indifferently to a significant risk of harm to Floyd,” the indictment read.

“This crime resulted in bodily harm and the death of George Floyd.”

Categories
Politics

Jury begins deliberating in Derek Chauvin homicide trial

Former Minneapolis Police Officer Derek Chauvin and his defense attorney Eric Nelson attend the final confrontation during the Chauvin’s trial for second degree, third degree and second degree homicide in the death of George Floyd with his defense attorney Eric Nelson in Minneapolis, Minnesota , part. US April 19, 2021 in a still from video.

Reuters

Prosecutors and the defense advanced their final arguments to the jury on Monday in the murder trial of Derek Chauvin, the white ex-police officer who was accused of killing George Floyd last May.

The anonymous, multiracial jury can now deliberate until a unanimous verdict is reached.

Violent police violence against black men broke out in Minneapolis and elsewhere.

“You can believe your eyes,” Prosecutor Jerry Blackwell told the jury. A video of Chauvin with his knee to Floyd’s neck was a central aspect of the prosecution.

“Why is it necessary to continue to lethally restrain a man who is defenseless, who is handcuffed, who does not resist, who does not breathe, who has no pulse?” Blackwell added.

“It was like he was in a truck. It was like being squeezed into a truck,” said prosecutor Steve Schleicher.

Schleicher pushed back the defense’s arguments that Floyd died as a result of his underlying health conditions and drug use.

“You don’t have to believe the amazing coincidence that after this nine-minute restriction of 29 seconds, Floyd” chose this moment to die of heart disease, “said Schleicher.

Eric Nelson, Chauvin’s attorney, began his arguments to get the jury to think deeply about whether Chauvin was acting within the law.

“The standard is not what the officer should have done in the circumstances. It is not what the officer could have done otherwise,” Nelson said.

Nelson said the standard was what a reasonable officer would do in any circumstance he or she faces.

“All the evidence shows that Mr. Chauvin thought he was following his training,” said Nelson. “There is absolutely no evidence that the officer chauvin intentionally and deliberately used unlawful violence.”

The case is the best-known litigation involving a white officer accused of killing a black man in recent years.

Immediately after the arguments concluded, Nelson asked Judge Peter Cahill to issue a mistrial, citing comments from Rep. Maxine Waters, D-Calif. Waters called on protesters on Saturday to “become more confrontational” if the jury concludes that they are not guilty.

Cahill turned down a lawsuit but said, “I give you that Congressman Waters may have given you something on appeal.”

“I wish elected officials would stop talking about this case, especially in ways that do not respect the rule of law, the judiciary or our role,” said Cahill.

White House press secretary Jen Psaki was briefed on the case during a press conference Monday afternoon. Psaki declined to say whether President Joe Biden would be personally disappointed if Chauvin was found not guilty.

The final arguments put forward two very different versions of what happened on May 25, the day Floyd died after Chauvin and other Minneapolis police officers tried to arrest him on suspicion of passing a forged bill.

The Floyd family and Reverend Al Sharpton gesticulate as they arrive at the Hennepin County Government Center to finalize testimony on the trial of former police officer Derek Chauvin, charged with the murder of George Floyd in Minneapolis, Minnesota, USA in April 19, 2021.

Nicholas Pfosi | Reuters

Prosecutors and their experts have told the jury that Chauvin killed Floyd by cutting off his airway with the police officer’s knee while the black suspect was handcuffed and pegged to the floor for about 9 minutes.

During the trial, they made extensive use of video footage recorded by bystanders showing Floyd pleading for his life and telling officers he could not breathe.

The prosecutor also called Dr. Martin Tobin, a pulmonologist and respiratory science expert, who testified that Floyd had died of a lack of oxygen.

“A healthy person exposed to what Mr. Floyd was exposed to would have died,” Tobin told the jury.

Schleicher relied heavily on Tobin’s earlier statements in his final arguments.

“It was very clear that George Floyd died of low oxygen levels,” he said.

The indictment was led by Matthew Frank, an attorney with the Minnesota Attorney General. Two other prosecutors, Schleicher and Blackwell, shared the final arguments.

The defense led by Nelson argued that Floyd died as a result of the large amount of the drug fentanyl that he was taking prior to his arrest in addition to his underlying medical problems. An autopsy also found methamphetamine in Floyd’s system.

Nelson also tried to label the crowd of spectators who were there on May 25 as a threat to the arresting officers and to make their work more difficult. He has argued that Chauvin’s knee may not be on Floyd’s neck, but rather was on his back.

Nelson also highlighted obvious discrepancies between the prosecution’s arguments and Dr. Andrew Baker, Hennepin County’s medical examiner, who performed Floyd’s autopsy.

Baker ruled Floyd’s death was murder, but did not establish that the cause of death was asphyxiation or lack of oxygen as prosecutors alleged.

“The sub-dual law enforcement, reluctance, and neck compression were simply more than Mr. Floyd could endure due to this heart condition,” Baker said.

Dr. David Fowler, a former Maryland chief medical officer called on by the defense, testified that carbon monoxide fumes from a nearby vehicle may have contributed to his death in addition to his enlarged heart, high blood pressure, and drug use.

Chauvin has been charged with second degree murder, third degree murder, and second degree manslaughter. Each of these allegations requires prosecutors to show that chauvin was a “major contributing factor” to Floyd’s death.

Second degree murder is sentenced to a maximum of 40 years in prison. Third degree murder is 25 years maximum and manslaughter charges are 10 years maximum. Actual penalties are often below the legal maximums.

Jurors are instructed that if they have reasonable doubts about Chauvin’s guilt, they must not vote guilty. A unanimous jury is required to convict any of the cases.

The jury consists of 14 people, including two deputies who can be dismissed before the deliberations. The diverse group consists of two multiracial women, three black men, one black woman, six white women, and two white men.

The trial comes as tensions are high. On April 11, while the clashes were ongoing, police officer Kimberly Potter Daunte Wright, a 20-year-old black man, fatally shot and killed during a traffic obstruction in nearby Brooklyn Center and sparked protests.

Potter stepped back, claiming she thought she was using a taser. She was charged with second degree manslaughter.

– The Associated Press contributed to this report

Subscribe to CNBC Pro for the live TV stream, deep insights and investment analysis.