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New York Attorney General Seeks Testimony of Trump and Oldest Children; January 6 Committee Subpoenas Giuliani and Three Others; White Hours: Russia Could Attack Ukraine At Any Point; Major airlines, Pilots Cite Safety Concerns; British Prime Minister Denies Knowing Party Breached COVID Rules. Aired 4-4:30a ET

Aired January 19, 2022 - 04:00   ET

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

[04:00:00]

ISA SOARES, CNN ANCHOR: Hello and a very warm welcome to our viewers joining us in the United States and right around the world. I'm Isa Soares in London, and just ahead right here on CNN NEWSROOM.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Letitia James has subpoenaed the former president and his two adult children Donald Trump Jr., and Ivanka Trump.

UNIDENTIFIED FEMALE: The January 6 committee has subpoenaed and obtained phone records from two people very close to former President Trump.

UNIDENTIFIED MALE: We are going to be seeing additional Trump intimates and then the ultimate question, the ex-president himself.

(END VIDEO CLIP)

SOARES: Misstatements and omissions. The New York Attorney General wants to hear from Donald Trump and his two oldest children as part of a fraud investigation into the family's business practices. We have the very latest for you.

Invasion fears, the U.S. warns Russia could launch an attack on Ukraine at any moment. This as Secretary of State Antony Blinken is in Kiev for crisis talks. We are live in Moscow this hour.

Plus, "Pork Pie Plot." British Prime Minister Boris Johnson faces a growing revolt by lawmakers amid calls for him to resign over "Partygate."

ANNOUNCER: Live from London, this is CNN NEWSROOM with Isa Soares. SOARES: Welcome to the show, everyone. It is Wednesday, January 19th,

and we are learning new details about the New York Attorney General's investigation into the Trump organization, the former U.S. president as well as his two eldest children. Now, the office of Letitia James says it needs their testimony to determine how much they knew about tax submissions and, quote, misleading statements and omissions in financial statements to obtain loans.

All have so far refused to cooperate. But in a tweet James, as you can see there, warned, no one in this country can pick and choose if and how the law applies to them.

Well, investigators are basically trying to figure out who allegedly cooked the books and overvalued key properties. And they suggested the Trump children may have played a significant role in the possible fraud.

Saying, quote, Donald Trump, Jr., and Ivanka Trump worked as agents of Mr. Trump, acted on their own behalf, and supervised others in connection with the transactions at issue here.

Their testimony is necessary. Well, the Attorney General's office says Ivanka Trump was a key liaison with lender Deutsche Bank and Don Jr., certified the accuracy of financial statements from 2017 onward. CNN's senior legal analyst explains what investigators may be zeroing in on. Have a listen.

(BEGIN VIDEOTAPE)

ELIE HONIG, CNN SENIOR LEGAL ANALYST: Well, obviously the core theory here goes to this valuation idea. Did the Trump organization selectively and intentionally over value assets when it was convenient or under value may be those same assets when it was also convenient.

The first question that I'm thinking about is, who can they specifically tie to this conduct. They mentioned the Trump organization, and they say, the words are chosen very carefully here, that there is some involvement by, and then they name some members of the Trump family. But in order to make -- let's say there's two possibilities here. There's a civil charge and a criminal charge. You would need to tie specific people to that conduct.

So, I think this is a real warning sign to the Trump organization as a corporate entity, potentially could lead to civil liability for some of the individuals who they're talking about here. And potentially if they can prove criminal intent beyond a reasonable doubt, and if the Manhattan District Attorney agrees, that could lead to criminal charges. But I don't think that's quite what the Attorney General, I don't think the Attorney General has gone quite that far and her statement.

(END VIDEOTAPE)

SOARES: We'll have more on our top story for you throughout the hours.

Now, in the coming hours, the National Archives is set to turnover four pages of Trump-era White House documents to the House Select Committee investigating the Capitol -- the attack, of course, on the U.S. Capitol on January 6. The former president has been fighting to keep the records secret and has asked the Supreme Court to block the release of hundreds of pages of documents related to January 6. The court has not yet acted.

And this, of course, all comes as the House Select Committee is ramping up its sweeping probe of the January 6 riot and issuing more subpoenas. Among the latest to Rudy Giuliani, a key figure in former President Trump's failed attempt to overturn, of course, the 2020 election. CNN's Paula Reid has more now from Washington for you.

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[04:05:00]

PAULA REID, CNN SENIOR LEGAL AFFAIRS CORRESPONDENT: The House Select Committee investigating January 6 firing off subpoenas for four Trump advisers who helped to push the big lie. One of the biggest name on this list is, of course, Rudy Giuliani. A long-time personal attorney of former President Trump who spearheaded efforts to try to uncover any evidence of fraud to undermine the results of the 2020 election.

The committee also targeting two other former Trump attorneys, one Jenna Ellis. She circulated two memos that purported to analyze the options former Vice President pence had to block the electoral votes.

Also being targeted, Sidney Powell, who was at one time part of the Trump legal team. But she was eventually pushed out. But she was one of the loudest voices pushing the big lie.

Now the committee also targeting Boris Epstein. He was a Trump adviser who actually spoke to former President Trump on January 6 about the options that remained to try to block the certification of electoral results.

Now, interestingly, I spoke with Rudy Giuliani's attorney. He dismissed the subpoena as, quote, political theater. He noted that his client has not only claims of attorney/client privilege, but also potentially executive privilege as well. And it seems unlikely that the committee will get any information out of Giuliani. We can likely expect similar arguments about attorney/client privilege or executive privilege out of Jenna Ellis and Sidney Powell.

But it will be interesting to see what Boris Epstein says in response to the subpoena. Also notable, we're told that Giuliani was not asked to come in voluntarily before getting the subpoena.

And this comes as CNN has learned that the committee has also sought and obtained records for phone numbers connected to the former president's son Eric Trump and Kimberly Guilfoyle. Who is of course, engaged to the president's other son, Donald Trump, Jr.

Now what's interesting about these records is they do not show the contents of calls, but they do provide some data that could be of interest to the committee, including the date and time and the length of these calls. CNN has previously reported that the committee has sought similar records for over 100 other individuals.

Paula Reid, CNN, Washington.

(END VIDEOTAPE)

SOARES: Now, Ukraine says Russia is almost completed its military buildup near its border, deploying more than 127,000 troops. The defense ministry shared its latest intelligence assessment exclusively with CNN and this map doesn't even include a contingent of forces dispatched to Belarus.

Well, U.S. Secretary of State Antony Blinken is in Ukraine right now. Where he'll meet soon with the president there. On Friday he travels to Geneva for talks with Russian Foreign Minister Sergey Lavrov in a bid really to ease tensions. Here's what the White House said about the mission. Have a listen.

(BEGIN VIDEO CLIP)

JEN PSAKI, WHITE HOUSE PRESS SECRETARY: President Putin has created this crisis by amassing 100,000 Russian troops along Ukraine's borders. Our view is this is an extremely dangerous situation. We are now at a stage where Russia could at any point launch an attack in Ukraine. And what Secretary Blinken is going to go do is highlight very clearly there is a diplomatic path forward. It is the choice of President Putin and the Russians to make whether they are going to suffer severe economic consequences or not.

(END VIDEO CLIP)

SOARES: Let's get more on this story. CNN's Fred Pleitgen joins me now live from Moscow. Fred, this is escalating ever so quickly with U.S. now warning that Russia could attack Ukraine at any point. What is the U.S. and its other allies prepared to do here to deter Russia?

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, I think first of all, we have that flurry of diplomatic activity, Isa, where we see the U.S. Secretary of State there on the ground in Kiev today. On the one hand, of course, to assure the Ukrainians that the U.S. is going to stand by their side, that the U.S. is going to have their back. And that it will be tough against Russia if the Russians do decide to further invade Ukraine to launch a sort of attacks.

But of course, he's also there to assure U.S. citizens as well that there are going to be contingency plans should there be a further Russian invasion of Ukrainian territory. In fact, I hear that he is apparently right now at the U.S. embassy at this point in time.

But you're absolutely right the situation does appear to be growing more dangerous by the day. And one of the things that you were just talking about is certainly something that concerns not just the U.S., but especially Ukraine as well with the Russians now themselves saying that they have troops inside of Belarus. And we have that map on our screen right now and can see that the southern border of Belarus is also the northern border of Ukraine. So, the Ukrainians are saying they're feeling ever more encircled by those Russian forces. But Russia today, once again, from one of its embassy put out a

statement saying that, they don't intend to invade anyone. They say what's going on right now is what they call panic inside of Kiev.

[04:10:00]

But certainly, there is a real military buildup that is going on. The German foreign minister yesterday when she was in Moscow, she alluded to that again.

But I do think that one of the things that maybe does offer a glimmer of hope is that you do have that diplomatic activity that's going on with the U.S. Secretary of State today in Ukraine. Tomorrow in Berlin. And then that key meeting on Friday with Sergey Lavrov, the Russian foreign minister in Geneva.

And that is definitely key, because remember that after the talks in Geneva, the initial talks between the U.S. and Russia, the Russians said they were so disappointed they weren't sure that further talks would even be necessary or would even be possible. Well, right now it seems as though those talks are going to be possible and they are having on an even higher level than the previous talks that happened in Geneva. So certainly, possibly a glimmer of hope there, but at the same time, you know, as those numbers that were given to CNN by the Ukrainians indicate, there is a very, very large force in place there and a lot of concern about that.

SOARES: Clearly Secretary Blinken as well as Europe still looking very much for a diplomatic solution. We shall see where this goes. Fred Pleitgen for us in Moscow this hour. Thanks very much, Fred, good to see you.

Now, a bipartisan group of U.S. senators has just returned from Kiev promising to explore more military aid for Ukraine and tougher sanctions on Russia. Take a listen to Democrat Chris Murphy speaking with CNN's Anderson Cooper.

(BEGIN VIDEOTAPE)

SEN. CHRIS MURPHY (D-CT): The United States supports Ukraine's right to decide for themselves whether they want to have an alliance with NATO or EU, or whether they want to have an alliance with Russia. We're supporting Ukraine's democratic future, whereas Russia is proposing an invasion or threatening an invasion to force the Ukrainian people into an alliance with Russia that they don't want.

The Ukrainians are going to fight for their lives. There will be a long-term counter insurgency. It will be bloody. It will be drawn out and it will be a black mark on Russia that could end up leading to Russia's downfall as the Afghanistan invasion arguably contributed to the Soviet Union's downfall.

(END VIDEOTAPE)

SOARES: Well, the crisis in Ukraine is proving to be a major challenge in this first year of the Biden administration, and reporters will likely ask about it when the U.S. president holds a news conference. That's happening later today.

Mr. Biden will enter his second year with one of the lowest approval ratings of any modern-day president. He has surging COVID, rising inflation, and Democratic in fighting have really overshadowed achievements on infrastructure, a boom as well as drop in poverty.

And be sure to tune in for President Biden's news conference later today. Our coverage begins at 4:00 p.m. eastern in New York or in Washington. That is 9:00 p.m. if you're watching here in London.

Now, if you remember, we told you yesterday about the warnings from top U.S. airline executives on the rollout of 5G cell services near major airports. That was our top story yesterday. Well, the White House says it's working to find a solution to concerns that 5G frequencies may interfere with critical aviation equipment.

CNN's parent company, AT&T, as well as Verizon are delaying the rollout near some airports. But Delta Airlines says it's still planning for possible weather-related cancellations due to 5G services, servicing dozens of airlines. Several international airlines have canceled some flights into the U.S. because of the uncertainty about the rollout.

CNN's Anna Stewart is monitoring all this for us. And anna, they are delaying it. Do we know how long the delay is for? And if they are delaying, why are some airlines cancelling?

ANNA STEWART, CNN REPORTER: Good question, yes. The telecoms giant Verizon and AT&T said are temporarily delaying implementation of 5G near certain airports. There are no real time frame there. Now, one wouldn't imagine they want to delay this for long. It's not the first time they had to delay the rollout on account of aviation concerns.

They believe the FAA, the aviation regulator, has had plenty of time to look through this, to certify aircraft, to ensure it all went smoothly. So, there's been a lot of frustration over the last 24 hours. Verizon, AT&T, also point to the fact that some 40 other countries around the world have implemented 5G without any aviation disruption.

Now, there are certain specifics that are actually different region to region and country to country. Now, this will have hoped, of course, without any disruption. It hasn't entirely. Lots of airlines have decided, particularly international ones, big long-haul flights from Asia, for instance, have decided to cancel certain routes or they have swapped aircraft. We've seen a number of statements from the likes of ANA, Japan Airlines, Air India.

And a lot of swapping of aircraft, Isa. Because actually, the FAA had approved around 45 percent of commercial aircraft saying that if 5G had been rolled out, those aircraft actually had radio altimeters that wouldn't have been affected by 5G. So, there's been a bit of swapping. And that's actually news that we just heard from Lufthansa. The European carrier based in Germany.

[04:15:00] They have canceled one flight to Miami today but they're also swapping around aircraft. That is not easy. If you imagine, each plane has a different capacity. It has staffing requirements. So, any change there has a knock-on effect potentially for other routes. So, crisis not quite averted -- Isa.

SOARES: We shall see how long this delay lasts, of course, because it's not the first time they have had to delay. Anna Stewart there for us, thanks very much, Anna.

Now, it was a rough day on Wall Street on Tuesday where all major, three major indices have closed in the red. There have been worries about higher lending rates, rising bond yields, as well as earning season sent the Dow more than -- down more than 500 points. You see it finished down 1.5 percent. The Nasdaq there down there down just over 2.5 percent. The S&P 500 down almost 2 percent.

Now, oil prices rose to a new seven-year high on Tuesday. And one Wall Street bank predicts prices will go even higher. Brent crude topped $87 a barrel for the first time since October 2014. U.S. crude also had its highest close in eight years.

And Goldman Sachs is predicting oil price will hit $100 a barrel later this year, and prices are expected to rise into 2023. And that means, of course, you could be paying more at the pump.

Still to come right here on the show, Americans can soon skip the lines for COVID tests. Now they can be shipped right to your door. We'll have the details on the new system next.

Plus, Boris Johnson says no one told him a party at 10 Downing Street was against the rules. Why this new, I didn't know, defense may not work. That's next.

[04:20:00]

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SOARES: Now, Americans can now have their COVID tests shipped right to their homes free of charge. A U.S. government website to order those tests launched on Tuesday one day ahead of its formal rollout. You are limited to four rapid tests per household. Shipping is scheduled to start later this month. The government is also setting up a hotline to request the free tests.

Well, meanwhile, Pfizer says several lab studies show the antiviral drug paxlovid is effective against the Omicron variant. The pill was given Emergency Use Authorization, if you remember, last month in the U.S. for limited treatment of COVID-19. Pfizer tested the drug against multiple variants of the virus, finding it blocked an enzyme needed for the virus to replicate. The company says it will continue to monitor patients using the drug.

In Now, new data shows just how much harder the virus is hitting the unvaccinated. The head of the CDC tweeted that in November, unvaccinated adults were 13 times more likely to be hospitalized than those who are fully vaccinated. But hospitalization rates were significantly higher for the unvaccinated in all age groups, even among teenagers.

Now, here in U.K., the British Prime Minister's new response to the controversy of lockdown parties. Well, he didn't know he was breaking the rules. Boris Johnson said no one told him a gathering was held at the garden of 10 Downing Street May 2020 was a potential breach of COVID restrictions. But remember, he is the Prime Minister and he imposes social distancing rules. Here's what he said just days before that party.

(BEGIN VIDEO CLIP)

BORIS JOHNSON, BRITISH PRIME MINISTER: You must obey the rules on social distancing. To enforce those rules, we will increase the fines for the small minority who break them.

(END VIDEO CLIP)

SOARES: Let's get more on this story. Salma Abdelaziz joins me now. And Salma, I was reading this morning, in the papers this morning pretty much front page on the story. It's being called a "pork pie plot" because the calls are growing really for the Prime Minister to resign. Are the numbers there, though, to trigger a leadership challenge, though?

SALMA ABDELAZIZ, CNN REPORTER: Isa, that's a good question. And I think a lot of that is going to depend on how the Prime Minister performs in Parliament today. Over the course of the last week, he's apologized to the public. He's apologized to the House of Commons. He's apologized to the Queen herself.

So, his own lawmakers, conservative lawmakers are going to be watching him closely today. Does he still hold authority? Is he still that popular Prime Minister who can win us votes? Or is he on shaky ground? Is he on the way out? Because, really, Isa, this is starting to stretch belief to expect that Prime Minister Boris Johnson was in the garden on May 20 with booze and people in attendance during a very strict social lockdown and somehow had no idea it broke the rules. Still, that's his excuse. Take a listen.

(BEGIN VIDEO CLIP)

JOHNSON: Categorically, that nobody told me and nobody said that this was something that was against the rules. It was a breach of the COVID rules. That we were doing something that wasn't a work event because, frankly, I don't think -- I can't imagine why on earth it would have gone ahead or why it would have been allowed to go ahead.

(END VIDEO CLIP)

ABDELAZIZ: Now, the Prime Minister will be back in Parliament today for the regularly scheduled PMQs. Last week we saw him really a man in distress at moments flinching, looking down in shame as he apologized to the House of Commons. What will he look like today? And I'm going to leave you with the key thing here. 54, 54 MPs, 54 conservative lawmakers need to mutiny against Prime Minister Johnson. Need to turn against him for a vote of no confidence to be triggered. So far, we know that there's already a small handful. We haven't reached that threshold. But if he can't convince his own to vote for him, to continue to support him, Isa, that's when he could lose his seat.

SOARES: And the irony here is that those potentially who won't be supporting him are the ones that put him in power in the first place. We shall see what that number is. Salma Abdelaziz, as always. Thanks very much, Salma.

[04:25:00]

Now, an upscale hotel in Washington, D.C., is getting a lot of attention for its role in the U.S. Capitol riot. Just ahead, what investigators are hoping to learn from the Willard.

Plus, voting rights on the ropes with a key election reform bill appearing doomed to fail in the U.S. Senate. Democratic leaders announced a plan to maneuver around GOP obstruction. Both those stories after a short break. You are watching CNN NEWSROOM.

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SOARES: Welcome back to CNN NEWSROOM. Now, the committee investigating the U.S. Capitol riot is taking a closer look at a posh hotel in Washington described by some as a war room for Trump advisers on January 6 of last year. CNN's Tom Foreman has the story for you.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice-over): As the Capitol riot raged in public, a block from the White House at the fancy and historic Willard Hotel, Trump insiders were privately, desperately trying to keep the defeated president in office.

DUSTIN STOCKTON, ORGANIZER, "STOP THE STEAL" RALLY: There were actually several, quote-unquote, "war rooms" at the Willard. Basically, it was the central hub of all of the different organizing efforts.

FOREMAN (voice-over): Trump confidante Roger Stone was photographed outside the Willard on January 6th with members of the right-wing Oath Keepers. Stone has denied any knowledge of plans to storm the Capitol, but some Oath Keepers were charged in the attack, including at least one seen with Stone.