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Possible Contribution of Climate Change to Collapse of Building in Surfside, Florida, Examined; Trump Organization CFO Allen Weisselberg to Surrender to Prosecutors to Face Criminal Tax Charges; Bill Cosby Freed from Prison After Conviction Overturned. Aired 8- 8:30a ET

Aired July 01, 2021 - 08:00   ET

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

[08:00:00]

JOHN BERMAN, CNN ANCHOR: Condominium collapse there. And she was asked if climate change contributed to that building catastrophe. This is what she said.

(BEGIN VIDEO CLIP)

JENNIFER GRANHOLM, ENERGY SECRETARY: Obviously, we don't know fully. But we do know that the seas are rising. We know that we're losing inches and inches of beaches not just in Florida, but all around.

(END VIDEO CLIP)

BERMAN: Do you believe that climate might have played a part?

GINA MCCARTHY, WHITE HOUSE NATIONAL CLIMATE ADVISOR: Well, there's no way we can know. There are professionals looking at this now. And I think we know that, and the secretary was pretty clear, we do know that climate has an impact all along our coasts, but nobody is doing anything about referring to this community other than to offer our sympathies to the families that have lost loved ones. This is a terrible tragedy. I'm sure people will get to the bottom of this. But our effort to address climate is a systemic challenge we need to face everywhere, and we'll leave that tragedy to the professionals who need to take a look at it.

BERMAN: And the president and first lady are on their way at this very moment. National Climate Advisor Gina McCarthy, thank you so much for being with us.

NEW DAY continues right now.

UNIDENTIFIED MALE: This is CNN breaking news.

BERMAN: Good morning to our viewers in the United States and all around the world. It is Thursday, July 1. I'm John Berman with Erica Hill this morning.

We have two stories breaking right now. President Biden and the first lady on their way to Surfside, Florida, wheels up from Joint Base Andrews moments ago. The president no doubt will summon his skills as consoler-in-chief when he touches down. He plans to meet with family members of the victims. There is new video this morning of debris and water gushing into the underground parking garage of the Champlain Tower South just moments before the building collapsed. The death toll now stands at 18, the bodies of on 10-year-old and four-year-old child the latest to be recovered from the rubble.

ERICA HILL, CNN ANCHOR: Also breaking right now, Trump organization CFO Allen Weisselberg surrendering to prosecutors to face criminal tax charges just a short time ago. A grand jury in Manhattan has indicted Weisselberg and the Trump Organization. There's no case that Donald Trump or members of his family will be charged at this time, but we have just received a statement from the Trump Organization, and I want to read that to you, quote, "Allen Weisselberg is a loving and devoted father and grandfather who has worked at the Trump Organization for 48 years." The statements goes on to say he's now being used by the Manhattan district attorney as a pawn in a scorched earth attempt to harm the former president. The district attorney is being a criminal prosecution involving employee benefits that neither the IRS nor any other district attorney would ever think of bringing. This is not justice. This is politics." Again, that statement just coming in from the Trump Organization.

Joining us now, Jennifer Weisselberg, she's the former daughter-in-law of Trump Organization CFO Allen Weisselberg. She's been cooperating with investigators. She's provided them with materials related to the Trump Organization. So at this point this morning, I'm just curious, Jennifer, your reaction to the fact that your former father-in-law has now surrendered, and we are waiting on the details of this indictment.

JENNIFER WEISSELBERG, EX-DAUGHTER-IN-LAW OF ALLEN WEISSELBERG: I'm interested to see how broad it is. I think the D.A. has done a good job. I'm not surprised the indictment has come today. I'm glad that he's finally taking accountability. But to backpedal on what you said, I find it projection, he's been using my kids as leverage, as pawns to try to get me to be silent. So I find it the opposite of the statement he just made.

HILL: So that was a statement from the Trump Organization. So what is it specifically that you take issue with? And when you say he's using your children as pawns, you're talking about your former father-in-law Allen Weisselberg?

J. WEISSELBERG: And discovering the taxes in 2017 in my divorce and realizes there was a lot of imputed money that wasn't being reported, that was in effect my ability to take care of my children. My children haven't been home since February 3rd of 2020. I took them to school. They've been leveraging my silence over that. Although the eviction is bad, I think that my kids have been used as pawns. It's really sad.

HILL: So I want to expand for people who are just joining us who may not be familiar with what you're referring to, talking about an eviction. You were served with an eviction notice, as I understand it, in the spring. You told me at the break this is still an ongoing matter. You have until July 8th to vacate the premises. And so that's what you're talking about. And you contend that that's being used to silence you, because you have been cooperating with prosecutors.

J. WEISSELBERG: Allen's words were, if I can get you homeless and back in Florida, then you're no longer a threat.

HILL: And so you think a lot of this is an attempt to silence you. And yet, as I pointed out, you have been cooperating for some time now. As we know, you mentioned these documents from 2017 from your divorce. As I understand it, some of those documents showed financial transaction from Allen Weisselberg to your family for payments for things like rent, cars, private school tuition.

[08:05:09]

Is there anything specifically in the documents that you've turned over that you believe may have had contributed to this indictment?

J. WEISSELBERG: All of it. When I realized I had to fight for myself because I didn't have a lawyer, I couldn't find my kids based on a W-2 that is $153,000. Where is the rest of the imputed money? Where is the -- tax issue, the tax evasion, the tax fraud became apparent. So I've just been fighting for that and fighting for that. And I'm happy today we've found out that it is true, it's provable, the D.A. has worked hard to get his subpoenas to prove it. And here we are. The silence may or may have not worked, and it's been a terrible thing I've had to go through, but I would do it again, because here we are.

HILL: When is the last time you met with prosecutors?

J. WEISSELBERG: A week ago Friday.

HILL: A week ago Friday. And you've been meeting with them fairly regularly, as I understand. And you also told my colleague, Erin Burnett, on Monday that you've been preparing to testify before the grand jury. Has that happened?

J. WEISSELBERG: I can't comment on that now. What's going on in that black box is important, because we want to succeed, but we're also preparing for a trial.

HILL: I also have with us our chief legal analyst Jeffrey Toobin. He's here. I know you have a couple questions, too, as we're working through all of this, and again, waiting for more of the details this afternoon.

JEFFREY TOOBIN, CNN CHIEF LEGAL ANALYST: I had a question about these fringe benefits. That's apparently a very big part of this case. And you're aware that there were benefits, as Erica said, like school tuitions, like company cars, like apartments that were not reflective in tax documents. Is that right?

TOOBIN: Right. Not indicated incorrectly. Not there at all.

J. WEISSELBERG: Right, that the benefits were given and they were not reflected in the tax documents. And so that's apparently one part of this case. But what I would like to know from you is, are you aware of other illegal activities? Have you told prosecutors of other illegal activities involving the Trump Organization that is not about the taxability of fringe benefits?

J. WEISSELBERG: Yes, because my documents go into Trump compensation as well. And so to answer your question, yes, my grand jury subpoena from the D.A.'s office also involves any information about the Wollman Rink, the Lasker Rink, the city contracts, any financials or any information I learned.

TOOBIN: Was there anything improper that you were aware of in connection with -- for people who don't know, Wollman Rink and Lasker Rink are ice rinks in Central Park that the Trump Organization has managed. Are you aware of anything improper that was done in connection with those ice rinks?

HILL: And wasn't it your ex-husband who managing those?

J. WEISSELBERG: Right, and they were all cash.

HILL: All cash meaning they were all cash transactions at the rink? Or meaning the way that your ex-husband was paid was all in cash?

J. WEISSELBERG: On the website it says all cash, in order to come in to skate, to get a locker, to come as a family, it was all cash. It was an all cash business.

BERMAN: That's not illegal.

J. WEISSELBERG: No, it's not, that's right. It's not, that's right. But I have looked at the expenses, turned them over, and that is the next step. So to answer your question, the taxes are step one, but that's just the beginning.

TOOBIN: I guess that's really my question, is what's step two? Because if this is the case alone, taxability of fringe benefits, that's usually handled in a civil way, not a criminal way. And what I am curious about is, is there a step two? Is there something more here? Or are we just talking about a glorified civil case about taxability of fringe benefits?

J. WEISSELBERG: I don't believe so at all. I do not believe so at all. I think the valuing of -- overvaluing, undervaluing of loans and insurance, I think that's been a big part of it that they worked on. I actually forgot what I was going to say, but to your point, they wouldn't bring this about some fringe benefits. I just think the taxes are finite. We're still working hard with D.A. It's not over. We're still in contact every day with my lawyer.

TOOBIN: I think as we look ahead and look at today's, the release of the actual indictment as opposed to leaks about the indictment, we should really be thinking about, I think, what is this case really about? Does it go farther than taxability of fringe benefits? Because frankly, that is not something that is conventionally applied in a criminal context, and if there is something more, what is it?

HILL: Right, and so that's what we've been hearing and talking about, evening this morning, but in the last several days that fringe benefits are not the kind of thing that would rise to, potentially -- this is not what we see major charges about.

TOOBIN: Absolutely not. It is usually the kind of thing that is handled with, you have to pay the back taxes, you have to pay the penalty for not, the income you actually received, but it is not usually a criminal case. And that's a question the D.A. is going to have to answer today.

[08:10:11]

HILL: So Jennifer, you have said that Allen Weisselberg threatened you. Have you had any contact, any communication with him or his attorneys recently?

J. WEISSELBERG: I'm not supposed to anymore, but the last conversation I had with them was last June.

HILL: June of 2020?

J. WEISSELBERG: That's correct. And I asked if we could handle this discreetly and gracefully, and we could have a discussion about what was going on. And he refused.

HILL: And that was the last communication?

J. WEISSELBERG: Yes, because he had never taken accountability. I think this is the first day he's had to humble himself and face --

HILL: You were --

TOOBIN: I'm sorry, can I just ask a question about Allen Weisselberg? Donald Trump himself famously doesn't use e-mail, doesn't text. Does Allen Weisselberg use e-mail, use text?

HILL: I've given the D.A. an e-mail that they didn't know about, these are all part of my documents. But one of the reasons they both got homes in Florida was because they constantly FedEx between property in Mar-a-Lago and their property in Boynton Beach.

TOOBIN: So what is the answer, does he use e-mail and text?

J. WEISSELBERG: Donald and Allen?

TOOBIN: Allen. Allen personally.

J. WEISSELBERG: He tries not to. He's made mistakes, but typically, no.

TOOBIN: Typically no, but occasionally he does. And what did you say about FedEx, what is it? So they don't have to send electronic messages.

J. WEISSELBERG: Emails.

TOOBIN: So they send FedEx packages.

J. WEISSELBERG: Right. Right. From Boynton to Palm Beach. TOOBIN: Which are practically right next to each other.

J. WEISSELBERG: Right, so that was the issue of working together in Florida, is they would that constantly.

HILL: You would see the FedEx packages constantly?

J. WEISSELBERG: Yes.

HILL: You said you were really convinced at one point you thought Allen Weisselberg would flip. He did not, obviously. He could still decide that he wants to cooperate. Do you see that happening? Do you think that charges could change his mind, knowing what you know about him and knowing who he is.

J. WEISSELBERG: Yes, I think he'll be in a different mindset after today.

HILL: How so?

J. WEISSELBERG: Maybe the new tax attorney is just making him aware of the fact that there are issues here. I thought tax fraud and tax evasion was a crime itself --

TOOBIN: It is.

J. WEISSELBERG: Right. Typically it's a civil case, I understand what you're saying, but I have no doubt they are going -- that they have much more, that they're not going to bring this case against a former president without a lot more. And we have a lot more time with the grand jury panel, correct? We have another four months.

HILL: We should plan for this -- this is not a case against the former president. This involves the company.

J. WEISSELBERG: The company. Right.

HILL: Right. But this involves the Trump Organization, right? And so the president, none of what we're expecting today, none of this is expected, there are not expected to be any charges against the former president. So I think we just need to make that clear.

J. WEISSELBERG: Right, but I'd like to ask -- I don't know the difference, if you own the company and you have tax liability, for example, paying tuition, and then taking major deductions inside the Trump payroll for compensation or for consulting to benefit yourself, if you are the owner of the company. I'm not exactly sure how that works.

You are asking a great question, which I think a lot of people are going to will be asking today, which is why is this case against the corporation? A lot of prosecutors don't like to bring criminal cases against corporations.

HILL: Because no one goes to jail? TOOBIN: Exactly. No, that's exactly right, because the criminal law

is supposed to deter individuals. Corporations are just pieces of paper. And there is almost never a trial of a corporation. Those criminal cases in the rare occasions they're brought almost end in some sort of plea and a fine, because you can't lock up a corporation. All you can do is fine it. And I think, one criticism some people may have of this case -- and again, we have to see the case, well, if you're going to charge tax evasion, the piece of paper that is the Trump Organization didn't do anything. Some human being did it. And the question is, should the human beings who benefited -- and that would be Trump himself -- be charged? Or the people who designed it be prosecuted? And that apparently is Weisselberg, who will be charged. But the issue of a criminal case against a corporation is a difficult one and subject to criticism for a lot of people.

HILL: So then to that point, the fact we know Allen Weisselberg, right, has surrendered himself this morning because of this indictment, that there is at least one person involved, what does that tell us?

TOOBIN: It tells us that the district attorney and the grand jury believe there's probable cause that Allen Weisselberg committed a crime. But the idea of a corporations committing a crime is one that is difficult to get your mind around, because it is not -- corporations don't do anything.

[08:15:08]

Humans do. The question is, will anyone else be charged with these sorts of -- this kind of tax crime because the corporation itself didn't do anything?

ERICA HILL, CNN ANCHOR: So, part of those questions about who could potentially be charged, or other people likely in leadership positions at the company, which of course then brings to mind the former president's children, Eric and Don Jr., both executive presidents at this moment. Ivanka Trump.

I mean, do you have any sense from any meetings that you've had, from anything you may know, that they could somehow be involved, or could have had knowledge?

JENNIFER WEISSELBERG, EX-DAUGHTER-IN-LAW OF ALLEN WEISSELBERG: So, my thought -- my thought process is, and maybe I'm wrong, is that showing Allen that the taxes are not kosher and that there's liability there, criminal intent there, maybe that's enough to get you to walk us through those documents inside the Trump Org, then we can place the became on those who orchestrated it. Maybe that would help get an indictment on the executives.

TOOBIN: This is why white-collar cases almost always rely on an insider who flips because documents need explanation. You need someone, as you say, to walk you through the documents and explain what was really going on here. At the moment, it appears prosecutors don't have that person. Obviously, they're leaning on your former father in law to be that person. Is there hey someone else who was involved in the Trump Organization who could do that? Who could walk them through the documents and explain exactly what was going on?

WEISSELBERG: I think we're here today and it sped up because of Jeff McConney.

TOOBIN: And who is he?

WEISSELBERG: Jeff McConney is the long -- he's been there since 1994. He is the main accountant within the firm. He's the controller of the Trump payroll corp, which seems to be at the hub of the taxes. But he also wrote every bill -- he's not a decision-maker, but he knows where every -- he also knows where every number is puts and every bank account is put.

His name is on a lot. There's a lot of liability, including signing off on Trump -- Wollman rink expenses.

TOOBIN: And he has cooperated with prosecutors? The person, this Jeff --

WEISSELBERG: McConney?

TOOBIN: McConney, he has cooperated, like you have cooperated?

WEISSELBERG: He's walked through -- he's been walking through it with the grand jury people.

HILL: So, he's testified before the grand jury.

WEISSELBERG: Correct.

HILL: So as we're looking at all of this, right, and all trying to figure out who the players are, it brings up a lot of question if there is Jeff McConney, what was the role of Donald Trump's children? What were their roles within the company? What would they have been exposed to?

WEISSELBERG: They became trustee, as we know, but Allen is such a control freak that, you know -- being that they were the Trump children, they could make decisions and no one could override that. Everything was discussed with Donald. He knew about everything, but the roles were -- they became executives right alongside Allen, sitting in that office since 2017.

HILL: You said -- you just said Allen controlled everything.

WEISSELBERG: Yeah.

HILL: So, nothing happened without Allen Weisselberg's knowledge?

WEISSELBERG: I think he liked to control everything. For example, one of the -- Jeff McConney's assistants, Debra Stilio (ph), was suddenly put as a Eric's secretary, I think that's because Allen likes to control and makes sure everything goes the way he set it up since 1973.

TOOBIN: But, I mean, I think you said something very important there. Donald -- they would talk to Donald Trump, the CEO, the former president --

WEISSELBERG: Yeah.

TOOBIN: -- but there would never been any contemporaneous record of those conversations? No e-mails, no texts, because Donald Trump doesn't e-mail or text, right?

WEISSELBERG: There could be other witnesses there, and, you know, they've asked me who longer works there, who would be aggrieved, who no longer rinks since de Blasio closed it, there's a whole slew of witnesses.

TOOBIN: Right.

WEISSELBERG: I think that they're bringing them in.

But, you know, Donald Trump with that sharpie, he liked to sign everything, be a part of every number, you know, I don't really know, Jeff, exactly how it works. I'm just giving the best, I'm putting my voice to the documents and striving for justice.

HILL: What do you think the long-term impact could be on the Trump organization?

WEISSELBERG: Oh, I don't think there's anything legal that's been going on. I think it will be shut down.

HILL: You think the company will be shut down?

WEISSELBERG: Absolutely, yes.

TOOBIN: We shall see.

HILL: We shall see.

[08:20:01]

WEISSELBERG: We shall see.

HILL: A big afternoon ahead, Jennifer. Thanks for coming in this morning. Appreciate it.

Jeffrey Toobin, appreciate it, my friend. Thank you.

TOOBIN: Big day today.

HILL: President Biden and the first lady wheels up moments ago, headed for the collapsed condo building in Florida. We have a live update on that search, just ahead.

JOHN BERMAN, CNN ANCHOR: Bill Cosby, a free man this morning after a court ruling. We'll live reaction from one of his accusers. And the Republican leader now threatening to punish GOP lawmakers if

they dare join a committee to investigate the January 6 attack. He would not punish Marjorie Taylor Greene in this way, but he might punish Adam Kinzinger and Liz Cheney? Really?

(COMMERCIAL BREAK)

BERMAN: Bill Cosby is at home this morning, freed from prison after the Pennsylvania Supreme Court ruled that his due process rights had been violated. Cosby had been in prison since 2018 for sexually assaulting Andrea Constand, though more than 50 women had come forward with similar allegations of him, although in every one of those cases, more or less, the statue of limitations had expired.

Joining me now, the attorney representing several of Bill Cosby's accusers, Gloria Allred, as well as Victoria Valentino. She says Cosby drugged and raped her at a Hollywood Hills apartment in 1969.

[08:25:01]

Victoria, I just want to start with you this morning, Bill Cosby's at home, he's free. How do you feel about that?

VICTORIA VALENTINO, ACCUSED BILL COSBY OF SEXUAL ASSAULT: Dismayed, enraged, infuriated, and stunned. We had just received a letter stating that his parole had been denied, and we received that letter preemptively in May. He wasn't due to come up in parole on his 3 to 10-year sentence until September 25th.

So it was a shock when we got the letter saying that he was preemptively denied parole, but we were, like, yeah. And then this came out of left field. I mean, who would have expected this?

BERMAN: You know, more than 50 women have come forward with accusations like the one you have made. It takes great courage to come forward, in some ways even more courage to come forward --

VALENTINO: More than 60.

BERMAN: More than 60. It takes courage to come forward after so much time has passed.

You know, if you knew this would happen, if you knew he would be released from jail on a technicality, when you made the decision to tell your story, your truth, how would that have affected you?

VALENTINO: Not at all. I stand in solidarity with my sister survivors. When I was raped, when I was drugged, kidnapped and raped in 1969 by Bill Cosby, it never occurred to me that it was anyone more than me being stupid, naive, vulnerable, because my little boy had drowned. I was grieving, and I was very vulnerable.

But then once I broke my silence and discovered there were all these other women coming out of the woodwork, who had the same experience, the same pattern of behavior, I felt, my God, this guy is a serial rapist. I mean, this was a plan, this was a pattern. So I was really grateful to have found other women who had experienced

similar things as I had with him, and we were all finding our voice and standing up for women's rights.

BERMAN: Gloria, the Pennsylvania Supreme Court did not make any determination on the facts themselves that were presented. They did not say this was a case of Andrea Constand, specifically, that she says happened didn't happen, what they did say is there was a deal, that the D.A. in Pennsylvania, that district attorney, Bruce Castro, made a deal, basically I'm not going to prosecutor, you should go testify under oath in this civil trial, and that deal needed to be honored going forward.

Legally sound?

GLORIA ALLRED, VICTIMS' RIGHTS ATTORNEY: Well, that's what the Pennsylvania Supreme Court decided. Of course, there are issues as to whether in fact there really wall a deal, a non-prosecution deal.

But they decided that the promise was made to not prosecute, that Mr. Cosby relied to his detriment on that promise, in that when he testified in the civil case, he could no longer invoke his Fifth Amendment privilege against self-incrimination, and in fact, because he couldn't invoke it -- because he was he relying on a promise not to prosecute, he answered questions, and the Supreme Court said he gave incriminating answers and statements which were used against him in the criminal case. So, they felt that was a violation of do due process.

Look, he is now a free man. There cannot be a further prosecution, at least in Pennsylvania, and I'm not aware of prosecutions anywhere else of Bill Cosby. That's the bad news for many survivors.

The good news is we still have a civil lawsuit pending in L.A. County Superior Court in Santa Monica. We're going back to the judge next month -- well, actually, in August to have a status conference. We have been awaiting this Supreme Court decision, and now the court will be ready to set a date for us to finish our discovery and perhaps to set a date for trial.

The discovery is going to involve Mr. Cosby having to sit for his deposition and answering our questions under oath. This is a very serious case, involving an allegation in this lawsuit of child sexual abuse, that Mr. Cosby is alleged in this lawsuit to have committed an act of child sexual abuse on our client at the Playboy Mansion in southern California.

So, we're looking forward to him answering questions, on under oath, because he can't invoke his Fifth Amendment privilege, because he won't be prosecuted again in Pennsylvania.

And one last thing, which is I would like to say to all the braves victims, to all the survivors.