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Hunter Biden Pleads Guilty on Tax Offenses, Strikes Deal on Gun; Desperate Search for Tour Sub as Oxygen Dwindles. Aired 11-11:30a ET

Aired June 20, 2023 - 11:00   ET

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

[11:00:00]

JOHN BERMAN, CNN ANCHOR (voice-over): He will plead guilty to two misdemeanor tax charges. He also struck a deal with federal prosecutors regarding a felony gun charge, according to the Justice Department.

KATE BOLDUAN, CNN ANCHOR (voice-over): We have our team covering many aspects to this but first we want to listen in to House Speaker Kevin McCarthy, reacting on Capitol Hill a short time ago.

(BEGIN VIDEO CLIP)

QUESTION: What is your reaction?

REP. KEVIN MCCARTHY (R-CA), HOUSE SPEAKER: My first reaction is that it continues to show the two-tier system in America. If you are the president's leading political opponent, the DOJ tries to literally put you in jail and give you prison time. If you are the president's son, you get a sweetheart deal.

Now this does nothing to our investigation. Actually, it should enhance our investigation because the DOJ should not be able to withhold any information now saying it's because of the pending investigation. They should be able to provide Chairman Comer with any information that he requires.

MANU RAJU, CNN CHIEF CONGRESSIONAL CORRESPONDENT: But this is a Trump-appointed U.S. attorney that was held over to this administration.

And why would you not accept that this is not a thorough investigation and just accept it on its merits, given the person who investigated it?

MCCARTHY: (INAUDIBLE) --

(CROSSTALK)

RAJU: So you believe it is a thorough investigation?

I am asking you.

MCCARTHY: Do you think it's equal and fair that a political opponent is going to be given jail time, but a presidential son -- and you can compare this to other individuals in America that have these same accusations against them, same crimes that they have been guilty of, that they would propose to have 10 years another time period (ph), I think that's a difference of justice.

(CROSSTALK)

RAJU: But it is a Trump attorney.

QUESTION: Speaker McCarthy, you said that it has no impact on the House investigation (INAUDIBLE).

So what can the American people expect from Republican going forward?

MCCARTHY: Continue to follow whatever information leads us to and (INAUDIBLE) watch time and again. Remember what we have found so far, that the president's family builds nothing, owns no offices.

But we have found out, lo and behold, even though the FBI tried to withhold from us, that in a 1023 form that people have said that they had to pay the president's family money for favors.

We now have found later by suspicious activities through banks how many American families have ever had that happen. But there's hundreds of them.

And money has come through foreign entities into shell companies moved to other shell companies by the president and paid members of his family all the way down to his grandchildren as well.

How many families in America have that, where you literally build nothing, you make no product, you have no offices but you make millions of dollars from entities from foreign --

BERMAN: All right, you've been listening to House Speaker Kevin McCarthy, cornered by our very own Manu Raju on Capitol Hill, to get reaction to this plea deal by Hunter Biden.

The House Speaker called it a sweetheart deal and said it represents a two-tiered justice system at the end of this five-year investigation led by a Trump-appointed federal prosecutor.

BOLDUAN: And what you have heard from Kevin McCarthy you're likely to hear from more Republicans as more reaction is coming in. More about the plea agreement and what went into it from Evan Perez.

What are you picking up, Evan?

EVAN PEREZ, CNN SR. JUSTICE CORRESPONDENT: We are seeing that the documents have been filed in court related to the plea for these two tax charges. I will read you just what it says here.

There's two counts. Both of them were for income of $1.5 million in 2017 and 2018. In both cases, Hunter Biden is saying that he owed in excess of $100,000 to the federal government and he did not pay that money when it was due. Again, this is for the tax years 2017 and 2018. So that is what he is

pleading guilty to and admitting that he did not pay his taxes on time. Now what we know from the reporting from Kara Scannell and Paula Reid is that the -- Hunter Biden's lawyers have said he has paid the money. He has since paid the back taxes and paid the penalties.

And so what this resolves now is the fact that this, obviously, the fact that he did not pay on time is still a crime. That is what Hunter Biden is pleading guilty to.

But what you have heard from Kevin McCarthy there is giving you a preview of what we're going to hear. The Justice Department has been able to withhold a lot of the information of what they have been doing in this ongoing investigation.

[11:05:00]

PEREZ: And that is going to end once the judge gavels and accepts whatever the deal is here between Hunter Biden's lawyers and the Justice Department.

And one other thing to note here is 2017 and 2018 is a period in which Hunter Biden was getting money from a company from China, an energy company. He also was serving on the board of Burisma, an energy company in Ukraine.

Keep those two names in your head, because you will be hearing a lot more from Republicans, who want to know more about where that money went.

Is it possible that it went to other places that they need to investigate?

BERMAN: And also, 2017 and 2018, Evan, to be clear, Joe Biden was not in office, correct?

PEREZ: That is correct. He was not in office at that time. And again, Hunter Biden was having his financial dealings and his work that he was doing in China and in Ukraine.

BERMAN: OK. Evan Perez for us in Washington.

Let's go to the courthouse -- no, not to the courthouse. Outside of the courthouse, Kara Scannell is there.

What are you seeing and hearing?

KARA SCANNELL, CNN CORRESPONDENT: Well, John, we just saw Evan explain that new information hit the docket (INAUDIBLE) explaining what these tax-related charges are. One thing that we're looking for next is to see when the judge, which judge is going to be getting this case and when the judge sets date for the arraignment.

That will be when Hunter Biden will come to the courthouse to enter his guilty plea and allocute to the crimes he has committed. His attorney's statement said that "I know Hunter believes it is

important to take responsibility for these mistakes he made during a period of turmoil and addiction in his life.

"He looks forward to continuing his recovery and moving forward."

That's part of what we'll hear from the Biden team if they have any more statements, that this is part of Hunter Biden's recovery. These crimes were committed when he was addicted to drugs, the gun charges specifically.

He is avoiding having to plead guilty or be sentenced on the felony, the gun possession charge, because he is getting into this diversion program, which is going to require him to undergo certain conditions for a set period of time, which I am told by one source is 24 months.

And if he does that, then the charge will go away. Certainly this reaction coming from the Republicans, including the former president Trump, who has been critical of this deal, because, as we have been reporting, the tax-related misdemeanor charges will result in a recommendation from the U.S. attorney's office here to a judge of probation with no jail time.

This misdemeanor itself carries no more of a maximum of one year in prison anyway under the statute. But the U.S. attorney's office, as part of the plea deal, has agreed to recommend probation.

It is ultimately up to the judge to decide if that is suitable and that is going to be coming further down the line in the process. But we're continuing to watch the docket for additional information and we will be sure to bring it back to you, John.

BERMAN: OK. Kara Scannell, bring us any additional information there.

BOLDUAN: We have hearing reaction from the president and the first lady. Arlette is back with us from outside the White House.

What are you hearing?

ARLETTE SAENZ, CNN CORRESPONDENT: Kate and John, the president and first lady are offering support for their son via a statement from the White House. The president is traveling in California and San Francisco.

But a White House spokesperson, Ian Sams (ph), did issue a statement on their behalf, saying, The president and first lady love their son and support him as he continues to rebuild his life. We will have no further comments."

This tracks from the strategy and approach that we have seen from President Biden as they continually lent support and love to their son as he has been facing this DOJ investigation and also repeated investigations from the Republicans up on Capitol Hill.

And the president has not shied away from Hunter Biden even as the legal issues have been playing out. Hunter Biden has been a sounding board for the president and he has no formal role here at the White House but he has been a fixture at various events over the years, traveling recently with his father as they went to Ireland back in April.

He has been seen at state dinners here as well as the events like the White House Easter Egg Roll. It speaks to the Bidens' belief that they can stick by their son based on the familiar ties.

Over the years, some Democrats have privately expressed concerns about having him around and how it might serve as a distraction for the president politically. But ultimately the Bidens repeatedly have said they are standing by their son's side.

Just a month ago, the president said that he believed that his son had done nothing wrong.

[11:10:00]

SAENZ: The White House have refrained from weighing in on the investigation into Hunter Biden over last two years of Biden's presidency, trying to maintain some independence and distance from it.

But officials from the White House and the president's personal attorney have kept tabs on this case as it has been ongoing. And one thing that the Biden family has also had to navigate over the past few years is the repeated Republican attacks, including from former president Donald Trump.

Hunter Biden was a focal point for them during the 2016 presidential campaign. But for now, the Bidens are sticking by their lines of support for their son as these legal matters have been playing out.

BOLDUAN: Arlette, thank you for bringing us that.

BERMAN: As we said, it has been a five-year investigation by a Trump- appointed U.S. attorney, a holdover from the last administration.

Paula Reid, what are you learning about the back-and-forth over this deal?

PAULA REID, CNN SENIOR LEGAL AFFAIRS CORRESPONDENT: We are learning that negotiations have intensified over the past several weeks. And as you noted, this is a years-long investigation.

But in recent months this whole issue has heated up once again, as CNN reported last summer that the prosecutors had narrowed down potential charges to a few possible tax charges and the prosecution of this gun charge.

Then seven months passed with nothing. As we reported, Biden's lawyers asked for a meeting with the Justice Department officials. And they were granted that meeting with the Trump-appointed attorney and some career officials and they made their pitch, for why Hunger Biden should not be charged.

And they said, look, he has paid these taxes back. And on the gun charge, a recent Supreme Court case would make it more difficult to prove a case beyond a reasonable doubt after the Supreme Court sort of expanded the Second Amendment rights.

But over the last few weeks, calls back and forth, multiple exchanges and possible deals put on the table between Hunter Biden's team and the Justice Department, which resulted finally after years in this agreement.

Now I will note that this is just the proposal that has been agreed upon by the defense attorneys and prosecutors. And it is up to the judge whether they want to approve this or make some modifications.

But right now, we are just waiting to find out when Hunter Biden might have the first appearance for that arraignment in court. It is interesting that, over the past few weeks, it has really ramped up and finally, finally resulted in this plea deal.

BERMAN: A lot of activity and a lot of discussion that no doubt begins now. And in fact, it has begun. Paula Reid, thank you very much.

BOLDUAN: Joining us now for all of this breaking news is Jennifer Rodgers.

And I was looking back at the statement coming from Hunter Biden's attorney, saying that, with this, the legal matter and the investigation into Hunter Biden, the criminal probe is resolved, is the statement coming from the attorney.

Is that the case?

I mean, we hear it from the attorney.

But is that necessarily the case in your view?

JENNIFER RODGERS, CNN LEGAL ANALYST: Well, we don't know. We know they are certainly hoping for that. And obviously, the Republicans are wanting to push further on the corruption charges. And we have not seen more from the DOJ.

It's possible that something else is going on but we have to wait and see. But certainly, these investigations around the tax fraud and the gun charge are resolved with this.

BERMAN: Obviously, you are hearing the shouting, oh, sweetheart deal and, oh, this or that. None of us knows the details of the possible charges here and exactly what was agreed to as part of the plea, Jennifer.

But how does one assess whether this is the type of deal that a normal person, not a president's child, would get in this circumstance?

RODGERS: So you would look to other similar cases. So on the gun form charge, it is very, very standard for someone in this situation who lies on the form because they are an addict. The gun is long gone; apparently only had it for a couple of weeks, very standard for this diversion to occur and to wipe out the charges, assuming he successfully completes it.

And the tax fraud is similar as well. He paid back the taxes a long time ago and that is something that the DOJ takes very, very seriously. And also, Hunter Biden was an addict at the time. You have to think about whether you can prove the mens rea.

Can he undercut their case?

So given all that, this is not a sweetheart deal. I think it's a good deal because he is going to be able to stay out of jail. But it is going to be on his record and it is not a sweetheart deal.

[11:15:00]

BOLDUAN: And we heard from Kevin McCarthy, in his view, that this investigation, this criminal probe is now done. It should now -- there should be nothing standing in the way of the Justice Department handing over any information that congressional Republicans want for their investigation, which they promise will continue and are ongoing.

What is -- how does the Justice Department approach that?

Elie Honig was on earlier and said he didn't think they'd just start handing things over.

RODGERS: I agree with Elie. Even if concluded, it could be revived. There's a lot of confidential information DOJ doesn't want leaked because that would be unfair to the investigation.

And the way that the Republicans have been politicizing their investigations, I would say it is fair that DOJ will do their best to protect the confidential information that is part of their investigations.

BERMAN: All right. Thank you, Jennifer Rodgers, for coming in to help us understand this.

BOLDUAN: Coming up, the search that is already the size of the state of Connecticut. Time running out to find the deep sea vessel somewhere in the Atlantic with five people on board. More on the rescue efforts ahead.

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(COMMERCIAL BREAK)

[11:20:00]

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BERMAN: This morning, search crews in the Atlantic are looking for a missing submersible, a dive vehicle with five people on board meant to explore the wreck of the Titanic.

Officials say the submersible went missing shortly after it launched on Sunday, part of an eight-day journey conducted by OceanGate Expeditions. Now human divers can reach depths of about 1,000 feet. At 3,200 feet, life can no longer be seen. At 5,200 feet, most animals can no longer survive. Sperm whales, as big as you can imagine, can only get 10,000 feet down; 10,000 feet is very, very deep.

The Titanic is even lower than that, more than 12,000 feet below, resting on the ground, 12,000 feet, which is 2.4 miles down at the bottom of the sea. CNN's Jason Carroll is in Boston, following the search efforts for us.

Jason, what is the very latest?

JASON CARROLL, CNN NATIONAL CORRESPONDENT: Well, we are awaiting a press briefing from the U.S. Coast Guard which is expected to happen about 1:00, John. Still a lot of questions, as you can imagine, that we have for the Coast Guard.

Namely, any sort of emergency beacon on board this vessel?

What was the nature of the last communication they had with the Titan before they lost communication with it Sunday and it disappeared?

We can tell you that the U.S. Coast Guard has released more additional information about the search. They say now that a Canadian P-3 Aurora is in the area, conducting sonar searches. And in addition to that, the Solar (sic) Prince and also the R/V Deep Energy is conducting surface searches.

They have searched an area about 10,000 square miles. It is a remote area of the Atlantic Ocean and a massive area. And we are told that there are between 54 to 80 hours of oxygen left.

When we hear this briefing from the Coast Guard, we are hoping to get an update on that figure as well. It is a massive effort underway. You have the U.S. Coast Guard and the U.S. Navy and the Canadian Coast Guard and the Canadian Armed Forces.

The U.S. Coast Guard in Boston has also said that a vessel has been deployed into the area to help with the searching below the surface at this point. The only thing that those who were on board, the family and friends and the colleagues of those on board -- five people on board -- all they can do at this point, John, is to pray for their safe return.

BERMAN: It is such a complicated search to be sure. Jason Carroll, keep us posted. Thank you.

BOLDUAN: And as John and Jason were just talking about, the search capabilities, all of the agencies and all of the authorities and experts now involved in assisting with the search, let's go over to CNN's Oren Liebermann, who has much more on this.

The U.S. Coast Guard and so many others helping out and assisting with the search operation. Walk us through what the search capabilities are that have now been deployed.

OREN LIEBERMANN, CNN PENTAGON CORRESPONDENT: Kate, several different assets coming from both the U.S. Coast Guard and the Canadian Coast Guard. Both have brought C-130s, long-range patrol aircraft, capable of long endurance missions, able to search large areas on the surface of the water.

Basically flying back and forth and using different capabilities to see if there is debris on the surface or if the submersible somehow surfaced with no coms.

[11:25:00]

LIEBERMANN: So we've had those onsite since at least yesterday. Perhaps they remain on Sutter (ph) what'll be one of the primary ways likely of searching on the surface of the water.

In terms of searching below the water yesterday there with P-8 Poseidons from the Canadian Coast Guard, searching. And we have heard from Jason there are P-3s, serve a similar mission, essentially anti- submersible aircraft.

The challenge is this submersible is much smaller than an enemy submarine. The advantage is that this submersible wants to be found. One of the ways that the P-8 searches is by using sonobuoys, dropping them in the water at different locations.

And because sounds can travel so easily underwater, they can pick up acoustic signatures or different sounds and then try to triangulate or figure out where the sound is coming from, to allow them to zero in.

Variables here; more search capability over the weekend. Even with these assets, Kate, it remains an incredibly difficult search.

BOLDUAN: It is great you lay out the search capabilities and what they can provide from the U.S. government and as well as the Canadians as well. It is great to see you, Oren. Thank you -- John.

BOLDUAN: The breaking news this morning, Hunter Biden reaches a plea deal with a Trump-appointed federal prosecutor. And we have new reaction from Capitol Hill and the White House.