Guest: Former Asst. U.S. Attorney Randall D. Eliason on NY indictments of Trump Organization, CFO Weisselberg, and what's next; Also: Trump files 'asinine' lawsuit against social media companies, stiffs Giuliani...
By Brad Friedman on 7/7/2021, 5:54pm PT  

Last week, New York prosecutors filed multiple criminal indictments against the Trump Organization and its CFO Allen Weisselberg in response to an alleged "sweeping and audacious" 15-year tax fraud scheme. Today, Donald Trump himself filed a lawsuit against social media companies for banning him after he used his accounts to incite an attack on the U.S. Capitol on January 6th. Today on The BradCast, we discuss both issues and more, including our conversation with a former Asst. U.S. Attorney who is dubious about the legal expert consensus that NY prosecutors plan to file additional charges against other "senior executives" at the Trump Organization. [Audio link to full show is posted below summary.]

First up, Trump's new lawsuits against Facebook, Twitter and YouTube were announced on Wednesday, with the disgraced former President claiming that his First Amendment rights are being violated by the private companies who no longer allow him to use their platforms to lie about last year's election and to incite violence. The First Amendment, however, does not apply to private companies. It applies to the Government. In fact, as one legal expert notes today, "Trump has the First Amendment argument exactly wrong. In fact, Facebook and Twitter themselves have a First Amendment free speech right to determine what speech their platforms project and amplify --- and that right includes excluding speakers who incite violence."

It was next to impossible to find coverage of the lawsuit today which quoted any legal expert unrelated to the suit or the disgraced former President, who supported Trump's legal theory. Even Fox "News" quoted a libertarian lawyer describing the complaint as "asinine".

While it's unclear who is footing the legal bill for Trump's latest legal folly, seemingly meant to further hoax his gullible "conservative" supporters into believing they are all "victims" of political censorship by "radical left" giant social media companies, we're almost certain that Rudy Giuliani will no longer be lending his efforts. A new book by Michael Wolff documents Trump's rage over losing to Joe Biden last year, and claims that he is now unwilling to pay Giuliani for his legal work in criss-crossing the country to claim, without evidence, that the 2020 election was stolen from Trump. That, as Rudy has now had his law license suspended in New York for his false legal claims about the election; is facing a federal investigation for his foreign lobbying work on behalf of Trump; and is named in billion dollar lawsuits by the Dominion Voting System [PDF] company for myriad lies about their products.

But Trump, of course, is facing his own legal problems as well, including the 10 criminal indictments filed against his company last week, along with 15 counts against his longtime Chief Financial Officer, Allen Weisselberg. The indictments, which include charges such as Scheme to Defraud; Conspiracy; Grand Larceny; Criminal Tax Fraud; and Falsifying of Business Records, stem from what prosecutors describe as a tax fraud scheme that includes more than a million dollars in off-the-books compensation for apartments, cars, and school tuition for Weisselberg and others, "orchestrated by the most senior executives” at the Trump Organization from 2005 until this year.

In the wake of last week's charges, many legal experts have argued the indictments suggest more charges will be coming, as part of the ongoing two year investigation by Manhattan District Attorney Cyrus Vance and NY Attorney General Letitia James --- perhaps even for "senior executives" named Trump. Our guest today, however, former Asst. U.S. Attorney RANDALL D. ELIASON of George Washington University Law School, disagrees. At least, he is dubious.

In the days both before and after last week's indictments, Eliason suggested on Twitter that if NY ended up charging Trump's company along with Weisselberg, that would be a signal that there is not, in fact, more charges to come, as many have speculated.

Eliason, an expert in White Collar Criminal Law and a frequent contributor to Washington Post and his own Sidebars Blog, describes the charges against Weisselberg --- who allegedly received more than $1.7 million in untaxed, off-the-books compensation and stiffed city, state and federal governments for at least $900,000 --- as a very "serious case" indeed. He explains why nobody should be fooled by "Attorneys for Weisselberg and the Trump Organization [who] have tried to downplay these as just a 'fringe benefits' case, to make it sound as though it's about the company maybe just failing to report something."

He notes, in particular, prosecutors claims that the company was "keeping two sets of books" to hide their "tax fraud scheme". Eliason says this suggests a "very deliberate" effort to defraud that "makes it pretty hard to claim that it was just a mistake or a misunderstanding about the complicated tax code," as Trump implied during a rally in Sarasota, Florida over the weekend. (That, by way of stark contrast with his boast at a 2016 rally when he declared: "I know more about taxes than human being that God ever created!")

Eliason offers a great deal of insight into what these charges mean and how serious they are. Still, he goes on to argue that, in his opinion, unless prosecutors manage to flip Weisselberg --- which he believes would have already happened if Weisselberg was flippable --- that it is unlikely there will be further charges against others in the case.

"Failing cooperation by Weisselberg," he tells me, "the fact that they included the company [in the indictments] makes me think, if he doesn't flip, that's all we're going to have. Because otherwise you hold off on the company, you isolate Weisselberg, and if you bring cases against other individuals, with or without Weisselberg, that just makes the case against the company stronger. Because the company is only liable vicariously through the actions of its agents. So you don't charge the company now if you think there's more to come."

I challenge Eliason on a number of these points today, in which each of us concede we are reading tea leaves. Of course, he's the expert attorney and I am anything but. Please tune in for this interesting discussion!

Finally, we close with what is best described as some "good-ish news" regarding Elsa, the first Atlantic storm to come ashore this year, in what is already a record setting storm season...

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