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SEC Investigating Sen. Burr For Potential Insider Trading; Minneapolis To Vote On Whether Police Force Should Be Changed. Aired 3:30-4p ET

Aired October 29, 2021 - 15:30   ET

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

[15:30:00]

VICTOR BLACKWELL, CNN HOST: New details are emerging from an investigation into Republican Senator Richard Burr and allegations of insider trading.

ALISYN CAMEROTA, CNN HOST: A new filing by the Securities and Exchange Commission reveals that Burr sold more than $1.6 million in stocks just a week before the market crashed at the beginning of the coronavirus pandemic.

After a phone call with the Senator, Burr's brother-in-law also sold off his stocks before the markets dropped, joining us now is the reporter who broke this story for ProPublica, Robert Faturechi.

Robert, thank you so much for being here. Well, that sounds suspicious. What has your reporting revealed about that phone call?

ROBERT FATURECHI, REPORTER, PROPUBLICA: Yes, the way this began was last year during the beginning of the pandemic, we learned that about a week before the market crash, Senator Burr sold up to $1.7 million of stock. And this was as he was, you know, saying publicly that, you know, the U.S. government was prepared for the coming pandemic. A few weeks after that we learned that on the very same day his brother-in- law also off loaded potentially hundreds of thousands of dollars of stock.

What we learned yesterday from an S.E.C. filing is that not only did they both dump stock on the same day but Senator Burr had material non-public information that he had derived from former staffers about the economic impact of COVID, but that he -- after he had dumped his own stock, he called his brother-in-law, and then, you know, they spoke for about 50 seconds, and literally the next minute after the call, Senator Burr's brother-in-law called his own stockbroker to begin the process of dumping stock.

[15:35:00]

What he said during that call, we don't know. But, you know, the timing looks really bad for Senator Burr.

BLACKWELL: It certainly does. 50 second conversation and then the very next minute, the brother-in-law makes the sales. What is their explanation, how are they explaining away what seems like a clear equation here?

FATURECHI: So, I would love to get their explanations. I've actually called the brother-in-law. I told him why I was calling and who I was. He hung up on me. I have reached out to Senator Burr's office. You know, in the past they have provided comment. Silence now.

CAMEROTA: Do we know what privileged information or special intel Senator Burr was looking at in those days before he sold off all of that stock?

FATURECHI: So, we don't. The S.E.C. said it was material, nonpublic information, which is sort of the crucial, you know, element to an insider trading investigation. We do know that at the time he was chair of the intelligence committee.

He was sitting on the health committee, which was, you know, getting briefings about COVID. And more importantly than that, he had staffers who were, you know, former staffers who were in federal agencies who were specifically working on preparing for the coming crisis.

And, you know, according to the S.E.C., you know, he was getting information from them.

BLACKWELL: Senator Burr has announced that he will not be running for reelection. Prosecutors decided not to file charges but are he and his brother out of the woods? What liability still is out there potentially?

FATURECHI: So, at the very end of the Trump administration, it was announced that the federal criminal investigation by DOJ was not resulting in charges against Senator Burr. We thought that meant it was sort of the end of the story, but apparently, you know, since our stories ran last year, the S.E.C. has been investigating this.

And you know, has been trying to get the brother-in-law Gerald Fauth to comply with the subpoena. He's been saying, oh, I'm too sick, I can't sit down for an interview. But at the same time, he's, you know, chairing the National Mediation Board, which is a federal post, you know, he was appointed to it again by President Biden. So, he's still working but saying, oh, I can't -- I'm too sick to sit down for an interview.

CAMEROTA: All right. Robert Faturechi, thank you for sharing your reporting with us.

FATURECHI: Thanks so much for having me.

BLACKWELL: A mayoral candidate in Minneapolis is looking to transform policing in that city after the murder of George Floyd. She joins us next.

CAMEROTA: And a quick programming note, this week "THIS IS LIFE" uncovers how a constitutionally granted right has led to the modern militias of today. Watch an all new "THIS IS LIFE" with Lisa Ling Sunday night at 10:00 only on CNN.

(COMMERCIAL BREAK)

[15:40:00]

BLACKWELL: Well, now to a CNN exclusive for the first time, jurors of the Derrick Chauvin trial are explaining how they determined the man who killed George Floyd was guilty on all counts.

They told Don Lemon, that race did not enter into their deliberations. And that they wanted to hear from the former Minneapolis police officer who ultimately did not take the stand. And several of them said it's unlikely that they would have changed their outcome after hearing from him.

(BEGIN VIDEOTAPE)

BRANDON MITCHELL: CHAUVIN TRIAL JUROR: For me, no, not at all. The evidence was the evidence. I don't think it would have changed anything. It would have been nice to hear, but it wouldn't have changed the outcome, I don't believe.

SHERRI BELTON-HARDEMAN, CHAUVIN TRIAL JUROR: It would not have changed my decision at all. Still trying to understand 9 minutes and 29 seconds why, and I don't think that Derek Chauvin could explain that to me ever.

(END VIDEOTAPE)

BLACKWELL: Well, now, six months after Chauvin's conviction, the city of Minneapolis may overhaul its police department. On Tuesday, voters will decide if they want to shift the police department to a department of public safety with a quote comprehensive public health approach.

Sheila Nezhad is one of more than a dozen candidates trying to unseat current Minneapolis Mayor Jacob Frey. She coauthored, the ballot question. Sheila, thanks for being with us.

SHEILA NEZHAD, RUNNING AGAINST MINNEAPOLIS MAYOR JACOB FREY: My pleasure, thank you for having me.

BLACKWELL: So, let's start here with what question to this ballot proposal is, it would remove the requirement of a police department, and the police chief from the city charter, also remove the minimum funding requirement, instead replace it with this department of public safety that could include police officers.

Now, you know that fits neatly into the narrative for better or worse of the defund-the-police mantra. Why do you believe this is the appropriate way to go, and is that an appropriate characterization of what you're trying to do?

NEZHAD: Yes, actually, it's a pretty simple change because our state and federal government all have departments of public safety that have police as one part of the approach. And in Minneapolis, it's actually a little bit of an outlier to have a police department required instead of a department of public safety. So, what this amendment allows us to do is have more types of

responses for health, so more mental health responders, more domestic and sexual violence advocates.

[15:45:00]

And by removing the minimum funding requirement, it also opens up budgetary pathways, which is my area of expertise for funding more violence prevention and restorative and transformative justice services.

BLACKWELL: So, when the language says that it could include these public safety officers, police officers, you do or do not envision that there will be armed police officers as part of this public safety department?

NEZHAD: So, we are required to have licensed police officers respond to some kinds of crimes under Minnesota state law, so police will be a part of the department.

However, we want to build up more options for different types of help because many people in Minneapolis are afraid to call 911 right now because they are afraid of who will show up when they call.

And everyone deserves help and that's why I'm running for mayor because I know that we can build up responders who are going to meet the needs of the people of Minneapolis, and also put more resources into preventing violence, and crime before it happens.

BLACKWELL: So, let's talk about violent crime, because the numbers in Minneapolis aren't great this year, the number of homicides up, the number of robberies up, aggravated assault, up year to date. Reports of rape are down. What's your rebuttal to the argument that these numbers would suggest that this is the time to raise the ceiling on police departments, not eliminate the floor of funding?

NEZHAD: Absolutely, so what we need right now is solutions to gun violence. And the reasons why gun violence is happening is often boils down to economics or in the case of interpersonal and domestic violence, right, a lack of ability for people to be able to leave dangerous relationships or a lack of education on consent and healthy relationships.

Policing does not address either of those causes, right. What does address those causes is individualized wrap around services for people who have been involved in gun violence or who are at risk of being involved in gun or gang related violence.

We have a program like that here in Minneapolis called "The Group Violence Intervention Program," very effective at reducing gang- related violence in Minneapolis.

But we're only funding it at $100,000 a year. And our city's police department budget is $170 million a year.

BLACKWELL: Well, it sounds like you have a plan, but one person who has not heard it is the Minneapolis police chief, Medaria Arradondo. He says that he would settle for just a sketch on the back of a napkin. Let's listen to what he says about ballot question 2.

(BEGIN VIDEOTAPE)

MEDARIA ARRADONDO, MINNEAPOLIS POLICE CHIEF: I can't tell you what ballot question number 2 will achieve for your public safety if it passes, because no one including the authors of the ballot or those supporting it have clearly stated that either.

It will not eliminate tragic incidents between police and community from ever occurring in our city. It will not reduce the disproportionate violent crime disparities involving African-American victims that has been a public health crisis in our city for decades. It will not suddenly change a culture of a police department that has been in existence for 155 years.

(END VIDEOTAPE)

BLACKWELL: So, we don't have much time left, but what's your response to what you heard there from the chief?

NEZHAD: So, I think what we've seen in Minneapolis is people took to the streets, they took to city hall, demanding solutions, right. And there are solutions to violence and crime, and policing has failed to address what we need right now.

And has created enormous harm in Minneapolis and in cities across the country. And so, in order to develop real safety, we have to create a city where everyone has a home, kids have somewhere safe place to be. And people don't have to fear the help they get when they call 911.

BLACKWELL: Well, the chief is asking if this plan that's on the ballot on Tuesday is the way to change many of the stats and trends that we've seen out of Minneapolis and across the country. Sheila Nezhad, thank you so much for being with us.

NEZHAD: Yes, thanks for having me.

BLACKWELL: I also want to note that we reached out to Mayor Frey several times to invite him on the show. His office says that he was not available to join us right now.

CAMEROTA: OK, now to this. A huge majority of active-duty service members are getting their COVID-19 vaccines. This is according to the Pentagon. 97 percent have received at least one dose, 87 percent are fully vaccinated. The small percentage that have yet to get a shot, though, still number in the thousands.

[15:50:00]

BLACKWELL: Yes, and the Air Force specifically, at least 12,000 airmen are unvaccinated. The branch has the earliest deadline to get the shot. It's this Tuesday.

CNN Pentagon correspondent Oren Liebermann is live for us at the Pentagon. So, what could happen to those members who are not vaccinated or if they don't get vaccinated?

OREN LIEBERMANN, CNN PENTAGON CORRESPONDENT: The Air Force and other services have made it clear that if you continue to refuse to accept the vaccine for whatever reason, you could very well be separated from the service under the uniform code of military justice, the UCMJ. That's because the order to get a vaccine is a lawful, legal order and refusing it could lead to effectively you getting the boot.

Now that's not the first option. There will be guidance, there will be counselling. Service members can apply for religious or medical exemptions. And those are decided on a case-by-case basis.

But eventually, yes, this could lead to separation. That being said, as you pointed out, the numbers for the military are very good. Much better than, for example, the general population.

Take a look at these numbers. Air Force, 96 percent. Navy, 99. Marine corps, 93. The Army, that's the oldest number we have from earlier this month, 91 percent. So that's come up as well.

And, of course, a quick reminder, the military already requires service members to get a long list of vaccines and that regularly when it needs boosters. Take a look at this list. Anthrax, chicken pox and much, much more. All of that part of the military's argument for getting the vaccine and getting it over with.

CAMEROTA: OK, Oren Liebermann, thank you.

So, the sheriff investigating the deadly shooting on the set of Alec Baldwin's movie is asking the film's armorer to come in and talk to detectives. Why he wants to question her again.

(COMMERCIAL BREAK)

[15:55:00]

BLACKWELL: Here at CNN, we are proud to salute our CNN Heroes. Here are the top ten CNN Heroes of 2021.

(BEGIN VIDEOTAPE)

ANDERSON COOPER, CNN HOST: I'm Anderson Cooper. This year we celebrate a milestone. The 15th anniversary of CNN Heroes. For a decade and a half, we've had the honor of introducing you to extraordinary everyday people who are changing the world. And at a time when we need kindness and courage more than ever, we're thrilled to announce this year's top ten CNN Heroes.

From Philadelphia, pediatric surgeon, Ala Stanford saw COVID-19 ravaging communities of color so she built trust and brought testing and vaccinations to more than 75,000 people.

From San Francisco, David Flink is building understanding and confidence using his journey with ADHD and dyslexia to help kids with learning differences across America thrive. In New York City, Hector Guadalupe uses fitness training to help

formerly incarcerated men and women like himself get family-sustaining jobs and build careers.

From Cartagena, Colombia, Jennifer Colpas brings eco-friendly energy, safe water and sanitation to struggling Colombians living in remote areas.

Lynda Doughty, of Phippsburg, Maine monitors 2,500 miles of coastline providing life-saving support and medical care to thousands of marine animals.

From Bali, Indonesia, exchanging plastic waste for rice. Restaurant owner Made Janur Yasa has sent tons of plastic for recycling and provided foods to thousands of families during the pandemic.

And in Simi Valley, California, Michele Neff Hernandez has turned her profound grief into sustaining support for the widowed.

On colleges, Patrician Gordon walked away from her Beverly Hills private practice to save women around the world from dying of preventable and treatable cervical cancer.

On L.A.'s skid row, Shirley Raines brings dignity and respect to thousands of homeless people every week, rain or shine.

And in Maiduguri, Nigeria, Zannah Mustapha educates orphan children from both sides of a violent extremist conflict providing support to more than 2,000 boys and girls a year.

Congratulations. The top ten CNN Heroes of 2021.

Now it's time for you to choose who inspires you the most. Who should be named CNN Hero of the year and receive $100,000 to continue their great work?

Go to CNNheroes.com to vote and be sure to watch the 15th annual CNN Heroes All-Star Tribute as we announce the Hero of The Year and celebrate all of this year's honorees live, Sunday, December 12th.

(END VIDEOTAPE)

CAMEROTA: OK, most inspiring night of the year.

BLACKWELL: Yes.

CAMEROTA: And you can help decide which one of these will become the CNN Hero Of the Year. Go to CNNheroes.com. The 15th Annual CNN Heroes All-Star Tribute airs live on Sunday, December 12th. We can't wait.

BLACKWELL: All right, so Halloween is this weekend.

CAMEROTA: Yes.

BLACKWELL: I posted a question of the day.

CAMEROTA: You caused a controversy online.

BLACKWELL: Yes, yes, yes. So, my Instagram account, I asked, favorite or least favorite candy, right? I want to know your favorite candy.

CAMEROTA: OK, anything with caramel and chocolate. I like $100,000 bars, I like Snickers. It has to have caramel and chocolate.

BLACKWELL: OK, favorite, Reese's cups. Period.

CAMEROTA: Great, can't go wrong. And how's that controversial.

BLACKWELL: The classic, the simple. OK.

CAMEROTA: That's perfect.

BLACKWELL: Least favorite?

CAMEROTA: Oh, Mounds.

BLACKWELL: Oh, really?

CAMEROTA: I don't like Mounds.

BLACKWELL: Ah, I like that.

CAMEROTA: I don't like all that gooey, what is that coconut?

BLACKWELL: It's coconut.

CAMEROTA: For sure.

BLACKWELL: OK, yes, no, yes, they tell us.

CAMEROTA: OK, what's you least favorite?

BLACKWELL: And then there is Dum Dums. It's a waste of -- for me. I don't like that.

Now candy corn, we both love candy corn.