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Celebrities Face Legal Exposure After Collapse Of Crypto Giant; Financial Expert Suze Orman Joins CNN THIS MORNING; "ELLEN" Show's Stephen 'Twitch' Boss Dead By Suicide At 40. Aired 7:30-8a ET
Aired December 15, 2022 - 07:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[07:30:00]
KRISTEN MEINZER, ROYAL WATCHER, HOST, "WHEN MEGHAN MET HARRY": Of us actually care about.
DON LEMON, CNN ANCHOR: Got it.
ZAIN ASHER, CNN INTERNATIONAL ANCHOR: I have to say, though, the line -- the line that got me the most -- the line that made me emotional is when she said look, this is not my country. I have tried so hard to fit in and it's simply not good enough.
LEMON: Yes.
ASHER: Every Black, British person understands exactly what she meant by that statement --
TRISHA GODDARD, CNN CONTRIBUTOR: To some, yes.
ASHER: -- because we've all been there.
GODDARD: Yes.
ASHER: We know what that is.
GODDARD: Yes.
ASHER: You know, to be bullied -- anyone who has been to high school understands that to be bullied in this world, generally there's two ingredients. There's two things that make a person more vulnerable for bullying, and that is if they are different --
GODDARD: Yes.
ASHER: -- and if they are vulnerable.
She's obviously different because she's Black. She's vulnerable because nobody had her back. Apart from Doria, nobody. Not her family, not her husband's family. And, oh -- I mean --
LEMON: I understand the racism here, but in Britain it is deep.
ASHER: Yes.
LEMON: It is deep.
We've got to run, though.
GODDARD: Yes.
LEMON: Thank you.
KAITLAN COLLINS, CNN ANCHOR: Thank you all three so much. It was a really great conversation.
MEINZER: Thank you.
GODDARD: Thank you.
COLLINS: All right. Some celebrities here in the United States are facing big lawsuits over their promotion of cryptocurrency. We'll tell you what kind of exposure they may be facing.
POPPY HARLOW, CNN ANCHOR: Plus, tips on how to protect your money -- your assets -- there she is -- in this uncertain economy. Financial expert guru Suze Orman is here.
LEMON: Hi, Suze.
COLLINS: I'm so glad you said that because that's such an important --
(COMMERCIAL)
[07:35:20]
LEMON: Good morning, everyone, and welcome back to CNN THIS MORNING.
The conversation about mental health in America after the suicide of Stephen 'Twitch' Boss -- we'll talk about that. Plus, frustration is boiling at the border as officials brace for a surge of migrants in the coming week. And we're going to dive into the so-called Twitter files. What facts -- what is fact and what is fiction.
COLLINS: Also this morning, the FTX debacle and downfall has brought a renewed focus on celebrities who have endorsed and touted crypto. Tom Brady, Jimmy Fallon, Madonna, David Ortiz -- just some of the rich and famous that are facing lawsuits from investors now, with plaintiffs claiming they did not properly disclose their own involvement with the digital financial institutions.
CNN's Christine Romans joins us now. Are they facing real legal exposure?
CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT, ANCHOR, "EARLY START": You know, look, the A-list there -- they're out hunting for lawyers and using the lawyers they already have because sports celebrities and sports figures are finding out that those high-profile crypto endorsements that they hyped are bringing costly lawsuits. (BEGIN VIDEOTAPE)
ROMANS: Disgraced FTX founder and former CEO Sam Bankman-Fried is in jail, accused of carrying out what a prosecutor called one of the biggest financial frauds in American history.
Bankman-Fried earned the backing of prominent figures across Hollywood, sports, and politics.
TOM BRADY, QUARTERBACK, TAMPA BAY BUCCANEERS: I'm getting into crypto.
UNIDENTIFIED MALE: With FTX -- you're in?
ROMANS: Now, several celebrities who endorsed cryptocurrency are all under fresh legal scrutiny, including 7-time Super Bowl champion Tom Brady, supermodel Gisele Bundchen, and 4-time NBA champion Steph Curry.
They're among some named in a class action lawsuit filing against Bankman-Fried last month after his company suffered a liquidity crisis, collapsed, and filed for bankruptcy. At least a million people can't access their funds. He is denying defrauding customers.
The lawsuit alleges they did not properly disclose the scope and amount of compensation they personally received in exchange for the promotion of FTX.
One of the plaintiffs in the proposed class action suit, Michael Livieratos, says, "As a New England Patriots fan my entire life, you can imagine the influence that Tom Brady would have," claiming he moved nearly all his money from another crypto exchange to FTX.
Adam Moskowitz, the lawyer representing the plaintiffs, told The Washington Post "You have very rich people we all love telling us that they checked this out and it was okay. Why shouldn't they be held responsible?"
This is just the tip of the iceberg for the crypto fallout. Another lawsuit was filed earlier this month by cryptocurrency investors against the NFT series Bored Ape Yacht Club.
JIMMY FALLON, HOST, "THE TONIGHT SHOW STARRING JIMMY FALLON": We're part of the same -- we're part of the same community.
PARIS HILTON, MEDIA PERSONALITY: Yes.
FALLON: We're both apes.
HILTON: Yes. I love it.
ROMANS (voice-over): In the complaint, 37 defendants are named, including Paris Hilton, Jimmy Fallon, Justin Bieber, Madonna, Serene Williams, and again, Steph Curry. The lawsuit accuses the creators of enlisting A-listers to mislead their followers into buying bad investments at inflated prices. Actor Ben McKenzie testified before the Senate Banking Committee
Wednesday, describing crypto as a bill of goods sold to tens of millions of Americans.
BEN MCKENZIE, ACTOR: They have been lied to in ways both big and small, by a once seemingly mighty crypto industry whose entire existence, in fact, depends on misinformation, hype, and yes, fraud.
(END VIDEOTAPE)
ROMANS: So, none of the celebrities named in these lawsuits responded to CNN's request for comment, you guys.
Another crypto lawsuit against EthereumMax was dismissed recently after the judge said that it wasn't clear the investors who sued actually saw the promotions.
Kim Kardashian and Floyd Mayweather Jr. were named in that one.
Kardashian, by the way, paid more than a million dollars in October to settle with the SEC over failing to disclose that she was paid to promote a crypto token on Instagram. She was paid $250,000 to promote a token on Instagram -- something that was not disclosed. She settled quickly with the SEC over that.
HARLOW: Yes.
LEMON: Yes.
COLLINS: Big questions for all of these celebrities.
ROMANS: Yes.
LEMON: A lot more fallout, I'm sure.
COLLINS: Thank you.
HARLOW: All right. The Federal Reserve raised rates again by half a point yesterday. This follows months of much higher increases to the Fed -- to the Fed's fight on inflation. But higher interest rates from the Fed means higher interest rates for you on loans, on credit cards, and a lot more.
Jerome Powell, the Fed chair, warned there is a long way to go until we see normal inflation.
(BEGIN VIDEO CLIP)
JEROME POWELL, CHAIRMAN, FEDERAL RESERVE: It's good to see progress, but let's just understand we have a long ways to go to get back to price stability.
(END VIDEO CLIP)
HARLOW: Meantime, the Treasury Sec. Janet Yellen is cheering the state of the economy in a new Wall Street Journal op-ed this morning. She calls the U.S. economy, quote, "resilient." She notes the labor market is strong, and she says "Household balance sheets are healthy, consumer spending is robust, and credit card delinquencies are low."
[07:40:03]
So we're so happy to bring in now financial expert Suze Orman, the host of the popular podcast "Women & Money (And Everyone Smart Enough To Listen)". The woman who never ages, by the way. That's what I said to her in the commercial break. It is great to have you. I should also note you are the co-founder of SecureSave.com, which creates employer- sponsored emergency savings accounts, which a lot of people need.
LEMON: Whoo.
HARLOW: Thank you, thank you.
And who is right? Who is right?
SUZE ORMAN, FINANCIAL EXPERT, HOST, "WOMEN & MONEY (AND EVERYONE SMART ENOUGH TO LISTEN)" PODCAST, CO-FOUNDER, SECURESAVE.COM (via Webex by Cisco): Well listen, it's -- you can have all these people on television saying everything's great -- but just look, truthfully, at your next door neighbor, at the people on the streets. The people that I talk to, Poppy, that call in or that write in to the podcast.
They don't have the money to pay their bills. Many of them are living paychecks to paychecks. They can't afford their rent. Good luck if they're ever going to be able to afford a house at these prices, and the cost of food.
So, I have -- I just think we're in far greater trouble than everybody wants us to believe that we're in.
HARLOW: You do?
So listen to this, Suze. The CEO of United Airlines, Scott Kirby, was on with us a few days ago. Here's what he said.
ORMAN: Yes.
(BEGIN VIDEO CLIP)
SCOTT KIRBY, CEO, UNITED AIRLINES: If I didn't watch business shows or read The Wall Street Journal, the word recession wouldn't be in my vocabulary because we just don't see it in our data.
(END VIDEO CLIP)
HARLOW: But you see it from normal folks?
ORMAN: Yes. Of course, you don't see it in your data because you're also not seeing where are the people who are getting those tickets to fly on your airlines. Where does that money come from? Now, maybe the people aren't delinquent yet on their credit cards but they are paying this on their credit cards. Most people in the United States don't have an emergency savings
account of more than a few bucks if anything. You know, most people can't even afford $400 for an emergency. So, there are people who are absolutely flying, who are going out to eat, who are going to hotels. But in my opinion, they're putting that on their credit cards.
And they're doing it because of why? They had so much in savings during the pandemic because we subsidized them in every possible way. They didn't have to pay their mortgages. They didn't have to pay their student loan. They didn't have to do anything. And yet, they were getting all of this money.
Now, savings have gone from all-time highs to really, they're almost all gone. And so, you're going to see eventually, again --
HARLOW: They're not --
ORMAN: -- credit card debt -- yes, go on.
HARLOW: Yes. I was just -- delinquencies -- credit card delinquencies are a -- it sounds like what you're saying -- are lower. It sounds like what you're saying is we're on the precipice maybe, right? Because Jamie Dimon of JPMorgan was warning about this -- what happens in a year or so when all -- when all those -- that excess savings is gone.
Is that what you're worried about?
ORMAN: Yes, I'm worried about that. I'm worried about that many cars now -- we have almost the highest repossession in cars than we've had in a long time. We have over 250,000 people who bought homes that are now underwater. We have a million people that only have 10 percent equity in their homes.
So, we have a situation where, yes, people may be going out, people may be doing things --
HARLOW: Yes.
ORMAN: -- but they're still living paycheck to paycheck. And that is a big warning sign in my book. People need to be careful.
HARLOW: So let's get to your advice because folks write you, they come on the podcast, they ask you all of these questions. Quickly, let's tick through a few.
If someone asked you right now if they should sell their home?
ORMAN: I would say if they want to move -- they're not going to stay in their home -- I would sell it sooner than later. You bet I would.
HARLOW: What about a car -- for persons thinking about an optional car purchase, not something urgent?
ORMAN: Yes. If you're going to buy a car and you cannot afford to buy a car outright -- really, everybody, don't buy a brand-new car. Buy a used car. Because the second you drive a car off the lot --
HARLOW: Yes.
ORMAN: -- it depreciates 24 (PH) percent. So, used car prices are finally coming down.
HARLOW: That's good.
ORMAN: But if it's an optional purchase, just wait. Don't do it right now. They're going to get cheaper.
HARLOW: Don is sitting over here nodding and giving you a thumbs up. Because I've never bought a new car.
ORMAN: Yes, Don. Yes, Don.
HARLOW: I've never bought a new car.
LEMON: I see her.
HARLOW: I have a -- I have a 2010 Toyota. I've always bought a used car. I totally agree with you.
Quickly, before you go, though, I think yesterday in the announcement from the Fed chair and the rate announcement that it sort of is getting glossed over that the Fed did say unemployment, they think, will tick up to 4.6 percent, and that would mean a million more jobs lost in like a year.
ORMAN: Yes, and --
HARLOW: That's a lot of pain.
ORMAN: And that's what -- that's a lot of pain. So, people, are you going to be one of the ones that they're going to have to lay off?
[07:45:03]
I mean, I just think, really, very shortly, it's so crazy that your goal is to lay people off. You want unemployment to go up. Think about that. If you're one of the people that are going to be laid off, you don't have a savings account, you have debt. Just think about that.
So, everybody, bottom line is save your money. Really put money away. If you can't pay off your credit card in full every single month you're already in credit card trouble, in my opinion.
COLLINS: Wow.
HARLOW: Thoughts? Christine Romans is here with us, too -- guys?
ROMANS: In a high-interest-rate-environment you've got to be paying down that high-interest debt. Be so careful of the -- and, you know, Suze, credit card interest rates are record highs. And those store credit cards -- I know you hate these like I do. These store credit cards, 29 percent -- HARLOW: Yes.
ROMANS: -- for these store credit cards. I mean, it seems to me like it's a sign --
HARLOW: I never open them, ever.
LEMON: It's easy. Don't do it.
ROMANS: -- of distress.
LEMON: Don't do it.
ROMANS: A sign of financial distress if you're -- if you're getting all these cards with these high interest rates.
ORMAN: Yes, and it's not only that. It's also home equity lines of credit. A lot of people are moving now from -- once they've maxed out credit cards or whatever -- let's take out a home equity line of credit. We have 70 percent equity in our homes or whatever it may be. Remember, when rates go up, your home equity line of credit is going to skyrocket.
HARLOW: Yes.
ORMAN: So, everybody, let's come back to Earth. If you don't have the cash to pay for it, don't buy it.
LEMON: Thank you, Suze.
HARLOW: We are on Earth thanks to you. Thank you, Suze.
LEMON: Hi to K.T., Suze.
ORMAN: All right.
LEMON: Be well. Merry Christmas to you.
ORMAN: Oh, love to Tim. Bye-bye.
LEMON: Thank you. Thank you.
ORMAN: Thank you. Happy holidays.
LEMON: Thank you. You as well.
HARLOW: All right. That was so helpful.
LEMON: Does a 1987 station wagon count as a used car?
HARLOW: Oh -- because you get like --
(Crosstalk)
HARLOW: Don gets, like, fancy used cars. I'm like old Toyota. There is new data this morning on when cancer is being detected and diagnosed in the United States. Why it left the author of this study shocked.
LEMON: And we're going to remember deejay and dancer Twitch. He died by suicide.
(COMMERCIAL)
[07:56:15]
(BEGIN VIDEO CLIP)
STEPHEN "TWITCH" BOSS, RUNNER-UP, "SO YOU THINK YOU CAN DANCE": Dancing to John Mayer's "Dreaming With a Broken Heart."
(END VIDEO CLIP)
LEMON: Well, this morning, the entertainment world is mourning the loss of the "THE ELLEN SHOW" deejay Stephen Boss. And you may also know him as Twitch. The L.A. County medical examiner confirmed that he died by suicide.
Twitch rose to fame on the fourth season of "SO YOU THINK YOU CAN DANCE" where he was a runner-up. He would later go on to deejay for "THE ELLEN DEGENERES SHOW."
In an Instagram post, the former daytime host wrote this. "I'm heartbroken. Twitch was pure love and light. He was my family and I loved him with all my heart."
DeGeneres paid tribute to her deejay in one of the final episodes of the series.
(BEGIN VIDEO CLIP)
ELLEN DEGENERES, HOST, "THE ELLEN DEGENERES SHOW": I love you like crazy.
BOSS: I love (crying) -- I'm sorry. I was not prepared. I love you and also, I love the family that we've gained here. And something that I'll always remember is that you gave me a place where I could just be myself.
(END VIDEO CLIP)
LEMON: Twitch was just 40 years old.
Joining us now is Dr. Jodi Gold. She's the director of the Gold Center For Mind Health Wellness. Thank you for joining us.
This is really sad and -- but it's a -- it's an opportunity, sadly, to talk about these issues and to get people to understand it more. You just don't know. It's hiding in plain sight most of the time.
DR. JODI GOLD, DIRECTOR, GOLD CENTER FOR MIND HEALTH WELLNESS: Yes, that's the truth. The truth is we have a hidden epidemic of mental health and it's hiding in plain sight. And I think that deejay Twitch's suicide is just a reminder of that because I think his public persona was such a happy, positive persona that maybe we didn't know. But the truth is that sometimes we just don't ask.
HARLOW: So can we talk about that?
GOLD: Yes.
HARLOW: Like, we don't go to brunch with our friends -- I mean, we go deep on things but how often do we actually say, like, are you OK? We've been talking about --
LEMON: Yes. But usually, people don't say I'm OK but -- or I'm thinking about suicide. They just don't do that, right?
GOLD: Right, they don't. And we do check in with our friends but the truth is we don't often ask about suicide.
LEMON: Ah.
GOLD: The truth is that one in 10 adults and one in five teenagers think seriously about suicide.
HARLOW: Really?
GOLD: Yes, it's that prevalent.
HARLOW: Twenty percent of teens?
GOLD: Twenty percent of teens have thought seriously about suicide. There is a suicide once every 11 minutes. So this is real, the fact that suicide happens, but it doesn't have to happen. And I think that there's been an increased awareness like the pandemic, and there's the surgeon general's warning that there's a mental health crisis for kids. And we know that up to a third of kids and adults with depression don't get the treatment they need.
But what's so striking about this is that he seemed like he had everything, right? And the truth is that you to ask.
Now, we don't know about his personal life and all of that, but it does bring up the conversation about the conversation do we ask enough? Do we screen enough?
COLLINS: And I feel like one thing that I've noticed is -- I'm 30. I feel like people my age and younger -- they're way more open in talking about their mental health. I think that people who are --
HARLOW: And my friends don't.
COLLINS: -- older generations --
HARLOW: Isn't that interesting?
COLLINS: -- they don't talk -- HARLOW: And I'm 40.
COLLINS: -- about it as much.
HARLOW: Yes.
COLLINS: And I wonder how much that factors into this -- like, just not talking about it -- what Don was saying.
GOLD: That is such a good point. I have noticed that.
One of the good things that came out of the pandemic is we started talking more about this. I've noticed with teenagers and young adults there's a huge discussion on mental health. If you go on TikTok or Instagram, there's just a constant dialogue.
And I feel like I've seen the stigma. I treat kids and young adults and I've seen the stigma decrease immensely. So I do find that kids and young adults are more likely to reach out and ask their friends -- and speak to their friends. I think adults -- there's still a huge stigma. There's a lot of shame in saying that you're depressed or that you need help.
[07:55:02]
And while I think we reach out to friends, we don't often ask the right questions. We don't often say -- it's more than just are you OK.
HARLOW: What are -- what should we ask?
GOLD: It's like have you been thinking about life not being worth living? Are you feeling hopeless? Are you alone? And I realize that's not super fun. It doesn't roll off the tongue.
But if you're worried about someone, that's the way you get -- I mean, you'd be surprised when I ask those questions how much people will answer no, I actually need help or I've been thinking about it.
And then, there's help out there. I mean, I think that's part of the discussion as well, right? There's an increase in screening. We have -- we have suicide hotlines that you can call, which is wonderful. We still need more screening and we still -- and on a more global level need better treatment.
COLLINS: Yes.
GOLD: Do you know that like every state in this country is a -- doesn't have enough child psychiatrists? And that 70 percent of our country doesn't -- has a deficit in mental health providers.
COLLINS: It's just the numbers are awful.
GOLD: They're -- yes.
COLLINS: But it is an important conversation to have, so thank you for joining us to have that conversation this morning, Dr. Gold. GOLD: Thank you for having me.
LEMON: Thank you.
COLLINS: And if you or someone that you know is struggling with suicidal thoughts, as the doctor said, there is help. The Suicide and Crisis Lifeline is available 24/7. All you have to do is dial 988. You can also talk with someone online at 988lifeline.org. Make sure you check on your loved ones this holiday season, especially.
We'll be back in a moment.
(COMMERCIAL)
