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Early Start with John Berman and Zoraida Sambolin

Mueller: Manafort Broke Cooperation Deal; FAA Sticks with Embattled Boeing Jet; Celebrities Ensnared in College Admissions Scandal; California Putting Death Penalty on Hold; Parliament Rejects May's Brexit Plan; Fighting in Eastern Syria Intensifying; Giants Trade Odell Beckham Jr. to Browns. Aired 5-5:30a ET

Aired March 13, 2019 - 05:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

DAVE BRIGGS, CNN ANCHOR: The remaining parts of 21st Century Fox will be spun off in a new company simply known as Fox. It will include the Fox Broadcast Network, Fox News and Fox Sports.

[05:00:02] Staffers of the 20th Century Fox Studio now bracing for layoffs. The company has not commented on the specific plans. Analysts expect Disney will lay off at least 5,000 people.

JESSICA DEAN, CNN ANCHOR: EARLY START continues right now.

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DEAN: Paul Manafort could get ten more years in prison today, or is another light sentence in store as we await Robert Mueller's report?

BRIGGS: The U.S. now the only major country where airlines and the government are sticking with the Boeing 737 MAX 8. Turns out pilots raised concerns after the first crash in October.

DEAN: Celebrities among dozens caught up in an unprecedented college admissions scandal. An elaborate team of cheating, bribing, lying.

BRIGGS: And breaking overnight, California putting a moratorium on the death penalty. Why Governor Gavin Newsom is making that move now.

Good morning, everyone. Welcome to EARLY START. I'm Dave Briggs.

DEAN: Hi, everyone. I'm Jessica Dean. It's Wednesday, March 13th. And it's 5:00 a.m. in the East.

Round two for Trump campaign chairman Paul Manafort this morning. Seventeen months after his indictment, the first in the Mueller probe, Manafort will learn how long he'll spend in prison.

After a sentence last week for financial crimes, a sentence many thought was lenient, the 69-year-old Manafort will now face a judge who will revoke his bail and threw him in jail last summer.

We have more now from CNN's Shimon Prokupecz in Washington.

(BEGIN VIDEOTAPE) SHIMON PROKUPECZ, CNN CRIME AND JUSTICE REPORTER: Good morning, Dave and Jessica.

In just hours, Paul Manafort is back for his final court appearance. Judge Amy Berman Jackson will sentence Paul Manafort for the final time. And she'll sentence him to two criminal charges to which he pleaded guilty to conspiracy against the U.S. and conspiracy for witness tampering.

The judge will also potentially consider that he intentionally lied during his cooperation to investigators, and also when he testified before a grand jury, about his contact with a Russian operative while chairman of the Trump campaign during the 2016 election. The lies ultimately led the Mueller team to throw out the cooperation agreement that they had with Manafort.

In all, Paul Manafort can be sentenced up to ten years total for the two crimes. It was just last week that Paul Manafort got nearly four years in prison. How much more will this judge in Washington, D.C. add to that prison sentence?

Dave, Jessica?

(END VIDEOTAPE)

BRIGGS: OK, Shimon, thank you.

In addition to Manafort, two big days in court this week in the Russia probe. One for former Manafort deputy Rick Gates on Friday, another for former national security adviser Michael Flynn. Today in a court filing -- on Tuesday, special counsel Robert Mueller revealed Flynn's cooperation with his office is done, but he is not ready for sentencing because he's still cooperating with the Justice Department on a pending criminal case against his former lobbying partner.

DEAN: And Roger Stone is back in court tomorrow. Judge Amy Berman- Jackson also overseeing the Manafort case is expected to set a trial date for the president's longtime ally. She ruled last week Stone is already in violation of the gag order.

BRIGGS: Countries and airlines around the world grounding that Boeing MAX 8. The U.S. right now stands virtually alone. Check out this map, in red, you'll see where countries or airlines themselves have decided to ground the plane.

Overnight, airlines in Russia and Canada stopped their flights. But the FAA says it doesn't see a need to pull the 737 MAX 8 despite two crashes that killed hundreds. The agency says, quote, our review shows no systemic performance issues and provides no basis to order grounding the aircraft.

CNN's Richard Quest asked the Ethiopian Airlines CEO if the MAX 8s should be grounded.

(BEGIN VIDEO CLIP) RICHARD QUEST, CNN INTERNATIONAL BUSINESS CORRESPONDENT, HOST, "QUEST MEANS BUSINESS": Do you think there should be a worldwide grounding of the MAX planes?

TEWOLDE GEBREMARIAM, CEO, ETHIOPIAN AIRLINES: I think although we don't know -- we don't yet know the exact cause of the accident and speculation is not helpful in either way, but I think there are questions without answers on the airplane.

(END VIDEO CLIP)

BRIGGS: And also new this morning, documents from a federal database where pilots can report aviation incidents anonymously. At least five complaints since the Lion Air crash in October, where some saying the nose pointed down while the plane was on autopilot during departure. President Trump spoke with Boeing CEO Tuesday, to "The Washington Post", Dennis Muilenburg argued to keep the planes in the sky.

Mr. Trump also tweeted airplanes are becoming far too complex to fly. I don't want Albert Einstein to be my pilot. I want great professionals that are allowed to easily and quickly take control of the planes. Unclear why the president isn't calling on the plane to be grounded if he thinks they're too complicated to fly.

[05:05:07] Boeing's stock fell sharply. Shares of the company fell more than 11 percent over the last two days. According to Bloomberg, Boeing has lost $24 billion in market cap. The sharp drop caused the Dow 96 points Tuesday.

Despite all this, Wall Street is still backing Boeing. As of Tuesday afternoon, 19 of the 24 analysts following the company had it rated a buy.

DEAN: Family members who lost loved ones on that doomed Boeing jet are now headed to Ethiopia where there is news about the black boxes.

Let's go live to Addis Ababa and bring in David McKenzie -- David.

DAVID MCKENZIE, CNN INTERNATIONAL CORRESPONDENT: That's right. Good morning, Jessica.

Yes, those families are en route to the scene as we speak. It's going to be a very difficult day for them. I want to get you the latest on the investigation. The black boxes, the flight data recorder are going to be on their way out of the country.

The Ethiopian Airlines officials saying they don't have the capacity to record and analyze those details that could give some answers as to why this brand-new plane crashed just minutes after takeoff, which has caused all of these countries and territories to ground the plane or to ban airspace from that Boeing 737 MAX.

Now, the Ethiopian airlines CEO also saying they have details from flight recording, or ground control and that very experienced pilot, saying he was reporting they had flight control problems in the early stage of that flight. Investigators that I've spoken to believe that plane carrying down at a very vertical trajectory, plowing into the hillside, creating that deep crater, a quite narrow crater in a relatively small debris field. Forensics experts also on the scene there today, I'm sure they were there yesterday, to try and comb through any evidence that could give some kind of answers as to why this plane went down, so on after that Lion Air plane went down in the Java Sea.

Now, there are no direct links between these two crashes. But certainly, it poses very serious questions -- Jessica, Dave.

DEAN: Yes, no doubt about that. All right. Thanks so much, David.

Cleat on tests, bribe admissions officers and pretend those payments were for charity, an unprecedented college admission scheme alleged by prosecutors. Fifty people across six states charged in Operation Varsity Blues.

DEAN: Among them, actress Felicity Huffman, seen here in federal court, and actress Lori Loughlin, famous for their roles in "Desperate Housewives" and "Full House." Allegations have witnesses upset, perplexed. The cooperating witness who helped bring them down, the very man who helped the rich and famous pull it off, Rick Singer.

CNN's Brynn Gingras is in Boston with the story.

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BRYNN GINGRAS, CNN NATIONAL CORRESPONDENT: Dave and Jessica, the mastermind behind this elaborate scheme also cooperated with authorities in their year-long investigation. He actually left the courthouse after pleading guilty to four federal charges and didn't say a word. He could serve up to 65 years in prison.

Now quickly, let me describe how this scheme would operate, according to authorities. They say the parents would pay Singer to help their kids get into elite universities and colleges across the country by one of two avenues -- either academically or through athletics.

If it was academic, he would ask a -- he would hire someone to basically change test scores or to have someone take a test for students with those SATs or ACTs in order to get them enrolled -- admitted, rather, into colleges and universities.

If they went the athletic route, Singer would bribe coaches of athletic teams and get these students admitted through that route as a potential athlete, even if that student never played the sport that they were allegedly being recruited by.

So it was an elaborate scheme which was a case-by-case basis, depending on who Singer was helping out.

Now, we have two names, of course, that everybody has been talking about. That is Felicity Huffman and Lori Loughlin. Both of them, according to authorities, took different routes.

In Felicity Huffman's case, attorneys for the DOJ say that she paid $15,000 to get her daughter's test scores altered. In the case of Loughlin, authorities say that her and her husband paid $500,000 to get her two daughters admitted to USC on the crew team when they never even rowed for a crew.

So again, just elaborate schemes that not only include those two actresses, but we're talking about CEOs of major companies, fashion designers, and a lot of people charged in this case that was dubbed Operation Varsity Blues.

More people are pleading guilty, we're expecting -- and it's possible that more arrests could come down the line.

[05:10:04] And as far as universities and how they're responding, essentially, they are distancing themselves from this. And again, no universities have been charged in this case -- Dave and Jessica.

(END VIDEOTAPE)

BRIGGS: OK, Brynn, thanks.

Breaking overnight, California Governor Gavin Newsom just hours after posing a moratorium on the state's death penalty. That means an instant temporary reprieve for 737 inmates, the largest death throw population in the nation. The executive order will not change any current sentences and it will not lead to the release of any prisoners on death row.

DEAN: California's executions were halted in 2006 when a condemned inmate challenged the state's protocol for lethal injections. In a speech later today, Governor Newsom is expected to highlight the racial disparities in sentencing. Six in 10 prisoners on California's death row are people of color. Newsom sites the death penalty and the number of people who have wrongly sentenced to death.

BRIGGS: All right. Coming up, British lawmakers facing a Brexit deal or no deal. Is the no deal exit the only way to leave the E.U.? We're live on 10 Downing Street with the latest.

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[05:15:18] BRIGGS: All right. How the U.K. exits the European Union is anybody's guess at this point. The Brits have just two weeks to figure this all out.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Point of order, the Prime Minister.

(END VIDEO CLIP)

BRIGGS: Prime Minister Theresa May suffering another humiliating defeat in parliament. Lawmakers voting down her Brexit deal, 391 to 242. So what happens now?

Hadas Gold joining us live from 10 Downing Street in London, 9:15 a.m. there. Hadas, how much talk is there about a second referendum?

HADAS GOLD, CNN BUSINESS REPORTER: Well, Dave, there's definitely more talk than there has been in the past. What we saw last night was another stunning defeat for the prime minister for her Brexit deal, 149 members voted against the deal, 75 were actually members of her own party who voted against that deal.

Now, tonight, there will be another vote, a vote whether no deal should be taken off the table. That means members of parliament that get to vote on whether the U.K. should wait to leave the European Union until they have a deal in place. If they vote for that tonight, on Thursday, they will then possibly go vote to ask the European for an extension on that deadline.

As you said, the deadline currently stands at March 29th. That's two weeks away and we have no idea what's going to happen there. There is no deal currently in place.

Beyond the political and bureaucratic questions this creates, there's questions of whether Theresa May can actually stay in this scenario, there's also the personal question. There are people who are actually affected by this. There are U.K. residents in the European Union who currently have health insurance through E.U. countries who would lose that health insurance with a no deal scenario.

Today, the government announced a new tariff plan, and in those tariff plans in a no deal scenario, cars from the European Union could increase in costs by nearly $2,000. So, there are real implications here. And nobody has any idea what's going to happen -- Dave.

BRIGGS: Another fascinating and contentious day on the way in London. Hadas Gold live there for us, thank you.

DEAN: Happening now, fighting in Eastern Syria intensifying as U.S.- backed forces attempt to drive ISIS out of its last remaining enclave.

CNN's Ben Wedeman is live on the front line for us with an exclusive look -- Ben.

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, Jessica.

Well, what we saw overnight was an intense bombardment in air strikes on this last encampment, basically a junk yard that is all that is left of this so-called Islamic State. I will step out of the way so our cameraman can zoom in.

In addition to the smoke blowing off the ruins in front of us, looks like we're in for a dust storm as well. So, visibility is getting worse. And in fact under conditions like these is when ISIS oftentimes counterattacks.

Overnight, it did attack, counterattack, in two positions, we're told. Taking those positions back from the U.S. from the U.S. backed Syrian Democratic Forces. They're also using suicide car bombs overnight, five we were told so far. So, the going has been rough, but in fact, we can still see, not right

now, but there is still a black banner of ISIS flying in the ruins in behind me. Right now, I'm hearing heavy machine gunfire from that area. It's not at all clear how much longer this battle is going to go. I

n the last 24 hours, the Syrian Democratic Forces tell us 3,000 jihadists and their families have surrendered. What's not clear is how many are still left inside fighting, it appears, to the death -- Jessica.

DEAN: Incredible reporting, Ben. Thanks so much.

BRIGGS: All right. Ahead, there's good news and bad news for New York football fans. Andy Scholes has the departure and the arrival in the "Bleacher Report" next.

And it's a stunner.

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[05:23:42] BRIGGS: It was a mind-blowing news for NFL fans here in New York. Odell Beckham Jr. on his way out of New York. Le'Veon Bell on his way in.

DEAN: Andy Scholes has more on the "Bleacher Report."

Please explain.

BRIGGS: Wow!

ANDY SCHOLES, CNN SPORTS CORRESPONDENT: Yes, I mean, Dave --

BRIGGS: This is such a stunner to wake up to.

SCHOLES: Yes, New York Giants fans feel bad for them this morning. They're not happy. The deal doesn't look good for the Giants.

The general manager just said two weeks ago, he didn't sign Odell Beckham Jr. to that huge contract extension to trade him. I guess something changed over the last few days. The Giants reportedly trading Beckham to the Cleveland Browns. Beckham one of the best wide receivers in the NFL. After the trade, the Browns oddly in the Super Bowl jumped up to sixth in the NFL.

When was the last time the Browns are the sixth best chance of winning the Super Bowl? It's been a long time.

Here's the trade, Beckham going to Cleveland. The Giants are getting a first round pick, third round pick and safety Jabrill Peppers. And the trade reunites Beckham with his college teammate and fellow receiver Jarvis Landry, they played together back in the day at LSU.

All right. The New York Jets meanwhile adding a star player, signing running back Le'Veon Bell, reportedly with a four-year deal with up to $61 million now. [05:25:01] Remember, Bell forfeited more than $14 million last season

after sitting out the season after being franchised by the Steelers.

Bell tweeting the news last night, saying: I'm back in the green, baby. Let's get it. Referring to when he wore green when he played college ball at Michigan State.

All right. After the investigation, the Utah Jazz have permanently banned a fan engaged in a heated exchange with Thunders star Russell Westbrook Monday night. The team saying there's no place in our game for personal attacks or disrespect.

The NBA meanwhile fining Westbrook $25,000 for directing profanity and threatening language to a fan. Westbrook said after the game that more needs to be done to protect the players. And I spoke to Charles Barkley about this, he told me, well, there isn't really much that can be done.

(BEGIN VIDEO CLIP)

CHARLES BARKLEY, TNT BASKETBALL ANALYST: Fans have always crossed the line. Fans have always crossed the line, but, Andy, you have to ignore it. You have to walk away.

You ain't no punk or anything like that. You have to walk away, because all they really want you to do is hit them so they can sue you. And you're probably going to have to settle the case.

So, my advice, fans have out of control. It's a small percentage, it's a very small percentage. But you have to walk away, plain and simple.

(END VIDEO CLIP)

SCHOLES: All right. Finally, a huge upset in college basketball last night, St. Mary's playing their best game of the season, beating top- ranked Gonzaga to punch their ticket to the tournament. They were 15- point underdogs in this game. And they won by 13.

And their head coach Randy Bennett pretty proud of his squad.

(BEGIN VIDEO CLIP)

RANDY BENNETT, ST. MARY'S HEAD COACH: It's so sweet. I feel sorry for all of those guys on the bubble right now, but we're not.

(END VIDEO CLIP)

SCHOLES: Well, we're on the bubble, Dave. And now they shocked the world beating Gonzaga last night.

BRIGGS: That's the number one overall seed, right?

SCHOLES: They probably lost that one seed with that loss to St. Mary's.

BRIGGS: If the Cleveland Browns acquisition wasn't enough, they won four football games in three combined seasons, the Browns and now --

(CROSSTALK)

SCHOLES: The favorites in the division, right?

BRIGGS: I love it. Great day in sports, Scholes. Thank you, my friend.

SCHOLES: All right.

DEAN: The president's former campaign chairman set to be sentenced again. Paul Manafort could get ten more years as we await the Mueller report.

BRIGGS: And it turns out pilots raised concerns about the Boeing MAX 8 after that crash in October. The U.S. now the only major country where the plane is still flying.

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