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New Day
Real Cost of Covid Relief; South Korean President after Biden Meeting; David Arias is Interviewed about a Helicopter Rescue. Aired 8:30-9a ET
Aired May 23, 2022 - 08:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[08:30:25]
JOHN BERMAN, CNN ANCHOR: Eighteen people have been charged in Texas for using money from Covid relief funds for personal use. They join the growing list of hundreds of people charged with crimes related to these funds.
John Avlon with a "Reality Check."
John.
JOHN AVLON, CNN SENIOR POLITICAL ANALYST: There are moments where innocence and experience collide. And for some children of the 1990s, that might have happened this weekend when they learned that a lead actor on the "Mighty Morphin Power Ranger" show has been charged with Covid relief fraud. Yes, the actor who played the red power ranger, a man by the name of Jason Geiger, was one of 18 people indicted for fraudulently applying for PPP loans. Now, in this particular scheme, a total of $3.5 million in government funded Covid relief was allegedly diverted to pay for unauthorized personal purposes, including cash withdrawals, gold and silver purchases, luxury jewelry items and vehicles. That's according to the DOJ announcement -- indictment.
Now, it's important to point out that Mr. Geiger has pleaded not guilty but his story provides a pop culture hook into a big problem that we haven't discussed enough, the massive fraud that's clustered around an attempt to protect the American people from economic calamity during the pandemic.
Now, file it under no good deed goes unpunished because of course this was an unprecedented situation, resulting in unprecedented action, bipartisan support for some $5 trillion in relief. Just over $1 trillion of which went to unemployment benefits, providing a $600 a week bump at the height of the crisis. For many folks this was a lifeline, allowing families to stay afloat and pay their bills. But for others, it was just a funnel of free money.
Now, get this, according to a Labor Department report, as much as $163 billion, that's with a "b," may have been improperly paid out. The lion's share lost to fraud. And that's stolen from you, the taxpayers, in ornate schemes, including identity theft, overpayment, hacking and fraudulent loans.
Senator Ron Wyden described it as a magnet for rip-off artists and the fraudsters, worsened by the focus on getting benefits out the door fast and the outdated computer infrastructure many states still use.
For example, in Maryland, Republican Governor Larry Hogan announced that $501 million had been stolen by a massive criminal enterprise involving more than 47,000 fraudulent unemployment claims. And that was in July of 2020. And the tip-off was a huge spike in out of state claims for pandemic assistance.
Now, the only language criminals and fraudsters understands is accountability. And there have been a steady stream of arrests announced by the DOJ, like the Houston dude who cashed in his PPP loan for a Lamborghini and is now serving nine years in prison, or the guy who lied to obtain a Covid loan and spent $57,000 of it on a Pokemon card. He's serving three years in the pokie.
And that's a small potatoes compared to the grifters who siphoned off as much as $1 billion amid procurement chaos during the early days of Covid, as detailed in the new book "Pandemic Inc" by ProPublica reporter J. David McSwane.
Now, as of March, just over $4 billion of the missing $163 billion has been recovered. Which means that the vast majority will probably never be found. And the tragedy is that for most people who needed it, Covid relief was an experiment that worked. It stopped many folks from losing their jobs and their homes and dragging the whole economy down with them. It helped America bounce back to a 40-year high of economic growth just last year.
But Senator Everett Dirksen reportedly said, a billion here and a billion there, pretty soon you're talking real money. $163 billion taxpayer dollars lost. That demands answers. It requires learning the right lessons so that it doesn't happen again.
Yes, if people were angels, no government would be necessary. But this has a cost beyond the bottom line because it increases cynicism and undermines trust between fellow citizens. And, after all, that's what democracy depends upon.
And that's your "Reality Check."
BERMAN: Yes, look, it's stealing from all of us, even -- you know, even when it's the red power ranger.
AVLON: That's it. Lamborghini and Pokemon cards.
BERMAN: Pokemon in the pokie. I caught that too.
John Avlon, thank you very much.
All right, just in to CNN, the NYPD releasing these new photos of the suspected gunman in a deadly subway shooting. A manhunt underway this morning.
BRIANNA KEILAR, CNN ANCHOR: And why the man who is charged with attacking Dave Chappelle says he stormed the stage.
(COMMERCIAL BREAK) [08:38:45]
KEILAR: Time now for "5 Things to Know for Your New Day."
President Biden catching his own aides off guard by announcing that the U.S. will intervene militarily if China invades Taiwan.
BERMAN: The first air lift of Operation Fly Formula arriving in Indianapolis on a flight from Germany. The first shipment will be distributed to hospitals, doctors, home and health care facilities and pharmacies in regions where the needs are most acute.
KEILAR: Pfizer says three doses of Covid-19 vaccine -- of its Covid-19 vaccine in children ages 6 months to under 5 years is safe and effective. The trial data will be submitted to the FDA this week. And the White House Covid adviser says a decision on these shots is expected here in the next few weeks.
BERMAN: Police in New York City searching for the gunman who fatally shot a man on a subway early Sunday and then fled. Authorities are asking anyone with relevant information to call the NYPD.
KEILAR: And the man accused of attacking comedian Dave Chappelle on stage told "The New York Post" that he was triggered by jokes about the LGBTQ plus community, pedophilia and homelessness. He's facing four misdemeanor charges in the case. He's also facing attempted murder charges for stabbing his roommate in another case.
BERMAN: And those are the "5 Things to Know for Your New Day." More on these stories all day on CNN and cnn.com.
[08:40:02]
And don't forget to download the "5 Things" podcast every morning. Go to cnn.com/5things.
CNN speaks exclusively with South Korea's new president after his meeting with President Biden. His new message for North Korea.
KEILAR: And the president walking back his comments on monkeypox after saying people should be, quote, concerned.
(COMMERCIAL BREAK)
BERMAN: We have a CNN exclusive. The new president of South Korea opens up to Paula Hancocks about his country's strained relationship with North Korea and why he views China as too sensitive.
Paula joins us now live from Seoul.
What else did he tell you?
[08:45:01]
PAULA HANCOCKS, CNN CORRESPONDENT: Well, John, he may only be two weeks into his new job, but South Korea's president, Yoon Suk-Yeol, is stamping his mark on North Korean policy, claiming that his predecessor's policy has failed. President Yoon saying it's up to Kim Jong-un to start a dialogue if he wants to.
(BEGIN VIDEOTAPE)
HANCOCKS (voice over): South Korea's new president, Yoon Suk-Yeol, set up a new sign for his desk, a gift from U.S. President Joe Biden, who was just in Seoul, a popular quote from the late U.S. President Harry Truman. A former prosecutor just two weeks into his presidency and fresh from a summit with Biden, Yoon is now dealing with a North Korea expected to launch a long-range missile or conduct an underground nuclear test any day.
PRESIDENT YOON SUK YEOL, SOUTH KOREA (through translator): Our response will be stronger and firmer than it has been before. We will coordinate closely with our U.S. counterparts.
HANCOCKS (on camera): But in Kim Jong-un you -- you have a leader who's given a five-year plan of what he wants to achieve militarily. He seems to have no interest in talking whatsoever. How do you convince him to talk?
YOON: I think the ball is in Chairman Kim's court. It is his choice to start a dialogue with us. I do not want North Korea to collapse. My hope is for North Korea To prosper alongside South Korea.
HANCOCKS (voice over): At the same time, Yoon says he believes his predecessor's policy of prioritizing dialogue with North Korea has failed.
YOON: Just to temporarily escape North Korean provocation or conflict is not something that we should do. Many call it servile diplomacy, but the policy of being concerned about the other side's feelings does not work and has proven to be a failure in the past five years.
HANCOCKS: South Korea is one of 13 nations President Biden announced today is joining his new Indo-Pacific economic framework, already criticized by China, South Korea's largest trading partner.
YOON: Even if we strengthen our alliance with the United States in security and technology, it does not mean that we think our economic cooperation with China is unimportant. So, I do not believe it is reasonable for China to be overly sensitive about this matter.
HANCOCKS: President Yoon says he believes China should abide by the rules based international order. At a time when that order is under pressure around the world, South Korea's president is clear that his country's future, at least for the next five years, is firmly by the side of the United States.
(END VIDEOTAPE)
HANCOCKS: Now, when it comes to his discussions with President Bide, about expanding the joint military drills, we know for a fact and from experience that Pyongyang will be angered by that. But President Yoon says it is the duty of every military around the world to maintain their readiness.
John.
BERMAN: Paula, a crucial time to have a discussion like this. Thank you so much.
KEILAR: Another remarkable CNN exclusive. Jake Tapper sitting down with U.S. Marine veteran Trevor Reed, who spent nearly three years in Russian custody in a jail, a psych ward and a work camp. Before his experience, he says he didn't believe that Russia's government was evil, but his views have since changed.
(BEGIN VIDEO CLIP)
TREVOR REED, RETURNED TO THE U.S. AFTER BEING DETAINED IN RUSSIA: To have absolutely no value of human life, and -- and that apathy permeates every level of the Russian government. And that trickles down from the very top to the lowest level. Prison guard, inside of their government, all of their police officers, all of their FSB, everyone who works for that government has absolutely no empathy for other humans. They are completely desensitized to that. That government is really sincerely evil, at all levels, from the top to the bottom. And there is absolutely no reason why any Americans should travel to Russia, for anything, ever.
(END VIDEO CLIP)
KEILAR: Now, Reed was able to return home to his family thanks to a prisoner exchange, something that he says should not be controversial.
(BEGIN VIDEO CLIP)
JAKE TAPPER, CNN ANCHOR: It is controversial in some circles to do a prisoner swap. People who are not in favor of it say this is just going to incentivize other governments to take Americans hostage or prisoner under false charges so as to get their people out of American jails. You don't buy it?
REED: No. The thing that you have to understand is, countries like North Korea, Russia now, obviously, China, Syria, Iran, Venezuela, countries like that are going to take Americans hostage no matter what. Those types of governments need no incentive to take Americans hostage. They're always going to do that. It's our duty as Americans to get back every American who's being held overseas. And I think that's what sets the United States apart.
(END VIDEO CLIP)
KEILAR: It is fascinating to hear him speaking, just how clear-eyed he is after this experience he's been through, and also just after having spoken, as we have, Berman, with his family, to see them all together is just wonderful.
[08:50:11]
BERMAN: Look, just to hear his voice. I couldn't get over his voice. The whole hour, I'm just, it's amazing to hear him speak after so long, when we've been speaking to his mother, his father and his sister. And then to see him, in that interview setup right there, with his mother and his sister just grabbing on, as if they're never going to let him go no matter what. Such an indelible image.
All right, next, we'll be joined by one of the rescuers who pulled off this incredible operation on a California cliffside.
(COMMERCIAL BREAK)
[08:55:07]
BERMAN: All right, it's time for "The Good Stuff."
Stunning new video shows a risky rescue in San Mateo County, California. A California highway patrol helicopter crew rescuing a man who was stranded on the face of a cliff. You're seeing a flight officer paramedic being lowered from the helicopter on a tether to the shirtless man who was about 500 feet down a 900-foot cliff. I'm not sure why his shirt-wearing status was a factor here. But it's still amazing to see. And you can see him lifted to safety. No injuries reported there.
Joining us now, Flight Officer Paramedic David Arias, who was part of this incredible rescue team.
David, just walk us through what happened there.
DAVID ARIAS, FLIGHT OFFICER PARAMEDIC, CALIFORNIA HIGHWAY PATROL: Hi, John. Thank you so much for having me on the show.
Yes, so this happened this past Thursday. And when the initial call came in through a local fisherman that was down at the shore, we got into our helicopter and got going. And as we were headed over there, the call was kind of progressing, so we were developing a plan of attack and kind of just going over the different risks that we would be involved.
Unfortunately for this call, we were kind of battling some strong winds, about 30 to 40 knots. So, we knew that was going to be a factor. But my team did a really good job in kind of positioning me to where the victim was.
One of the things we did run into is he -- as I got into position, right near him, he went ahead and grabbed onto my leg. This is kind of a pretty extremely dangerous thing he did just because, obviously, with the winds and everything, if I would have swung away from the cliff, I could have brought him with me.
But, yes, right around that time they positioned me. They lowered me down and got me into the right position. And I had about a four-second window to execute the rescue and I got him into the harness and we went on our way.
KEILAR: That is a narrow window.
So, I mean, David, what was he doing there? Why was he 500 feet down this cliff?
ARIAS: Yes. So, as soon as we get him to our rendezvous and we met the fire department, I asked him the same, exact question. And he said he was at the top of the cliff. He didn't explain why, but he said that he did fall from the very top, which was a pretty big miracle that he was with the small amount of injuries that he sustained.
BERMAN: David, is this something you do? I mean, have you ever had a rescue like this before?
ARIAS: Yes, sir. So, I've been with the department, with the California Highway Patrol for approximately three years. And we do a lot of training. But even before that, I have about ten years working in the helicopter rescue capacity throughout the country. So, it's pretty routine.
BERMAN: This -- it didn't look routine to me. And what with the wind there, I mean, what was it like to be -- to be dangling from the helicopter like that?
ARIAS: So, in those types of situations, we train for them over and over. So, it's not necessarily something that would make one of us nervous. I think more or less we're just kind of trying to adapt to the quickly changing conditions that we're dealt with on a moment-to- moment basis as we try to execute the rescue.
KEILAR: Why did you only have four seconds to get that around him?
ARIAS: Just with the winds. And I was suspended approximately 100 feet below the aircraft. It was a very dynamic environment. And you don't necessarily want to grab onto the cliff and unweight the hook and the cable because, in that case, if there's a little bit of slack in the cable and you tend -- and you were to fall or slip down, you could potentially shock the cable and either cause injury or cause damage.
So, you have to be in the right, right position. And my team did a phenomenal job of getting me right into that position where I was able to get -- just try to get some grip with about -- one of my knees, just where he was, and about four seconds later is when we started separating from the mountain cliff.
BERMAN: David Arias, I have to say, the more we look at this, the more harrowing it seems to me. It's just incredible video.
You seem like you're a good guy to have around. So I'm really happy to get to you know and meet you this morning. Thank you so much and congratulations for your fine work.
ARIAS: Oh, absolutely. Thank you, guys, so much for having me on the show. We really appreciate it.
BERMAN: He seems like a nice guy, too.
KEILAR: Oh, he --
BERMAN: I mean if I ever find myself on the side of a cliff, he's exactly the kind of guy I want to have come rescue me.
KEILAR: He's so chill about it. We only had four seconds. Four seconds!
BERMAN: All right, thank you, everyone, for joining us.
[08:59:43]
CNN's coverage continues right now.