FBI raids office of Trump lawyer Michael Cohen. TRANSCRIPT: 04/09/2018. The Rachel Maddow Show

Guests:
Tom Hamburger
Transcript:

Show: THE RACHEL MADDOW SHOW
Date: April 9, 2018
Guest: Tom Hamburger

RACHEL MADDOW, MSNBC HOST: Or maybe we won`t learn so much as we`ll
continue to be bombarded with unbelievably totally unprecedented news like
we`re being struck by meteors.

CHRIS HAYES, MSNBC HOST, “ALL IN”: I started the day in a pool with my son
in the Caribbean. And that seems so remote. That seems like an Ice Age
ago or something. I cannot believe that`s where today started.

MADDOW: You actually are psychologically excused from having kind of a
dislocated out of body experience. For me, I`m having that just for the
distance between what happened at my news meeting today when we decided
what was going to be on the show and tonight. It`s that far of a distance
as well.

HAYES: All right. I`m going to watch the show.

MADDOW: Thank you, my dear. Much appreciated.

And thanks to you at home for joining us this hour. I did have a whole
different show planned for tonight. We`ll do it tomorrow.

Things happen, you know? Bead up, roll off. I`m trying to be a duck about
this. I`m trying to be a Zen duck. Bead up, roll off. Just let it go.

All right. We`re going to start tonight with an important thing to know
about the FBI raids on the home office and hotel room of the president`s
personal lawyer, Michael Cohen. Since Robert Mueller was appointed to be
special counsel investigating the Russian attack on our presidential
election and the question of whether any Americans were in on that crime,
from the very start, Robert Mueller has been willing to use fairly
aggressive tactics to get his hands on information and evidence and even
people that he and his team think are relevant to their investigation.

There was famously the no-knock search warrant that the Mueller team
executed on former Trump campaign chairman Paul Manafort`s house in
Virginia. That was in the wee hours of the morning one day last summer.
They picked the lock, they stormed in, they took binders full of documents
and computer files.

Paul Manafort`s first notice that they were there was when they knocked on
his bedroom door, because they didn`t knock on the front door. And then
once they knocked on the bedroom door, they came in and photographed his
expensive suits in his closet for evidence.

The special counsel`s team also got a search warrant in May of last year
for a storage locker that belonged to Paul Manafort. According to a new
court filing from Manafort`s lawyer, the way the FBI got access to that
storage locker in the first place is they got a former employee of Paul
Manafort`s who had a key to that storage facility. He got – they got that
employee to open up the storage locker for them. Then once Mueller`s
agents saw what was in that storage locker, they went to a judge, got a
search warrant, and then carted it all away.

We don`t know if that`s actually how that went down. That`s how Manafort`s
lawyers say it went down in their new court filing. Manafort`s lawyers are
actually asking the judge in that case to suppress the evidence that was
taken from that storage locker because they say that former employee had no
right to open it up in the first place, and so, that`s something that judge
is going to have to rule on.

But clearly, Mueller`s team has been aggressive in executing warrants and
conducting searches when it comes to Paul Manafort and others. I mean,
just on Friday, we learned that the special counsel has kept on executing
new search warrants related to Manafort right up to just a few weeks ago,
even though Manafort`s already standing trial in two federal jurisdictions
on dozens of felony charges. As of last month, they were still executing
new warrants against him.

That said, when Mueller first charged Manafort, he did at least allow him
to turn himself in at the local FBI office and then walk right back out
again. Trump campaign foreign policy adviser George Papadopoulos was not
so lucky. Mueller`s team stopped him and arrested him, right after he got
off a plane at Dulles Airport in Washington. They held him overnight in a
cell. They took him to court the next morning.

Then there was also George Nader, a frequent Trump White House visitor, an
ex-con on child porn charges, a reported adviser to the United Arab
Emirates, now reportedly a cooperating witness for the Mueller
investigation. He too was stopped by FBI agents working for Mueller`s
team. They reportedly stopped him at the airport, at Dulles Airport,
searched his electronics, served him with a subpoena to testify to the
grand jury. Eventually, he became a cooperator.

Also, an Australian businessman who reportedly knows George Nader, he also
was reportedly stopped by Mueller`s team at an airport and had his
electronics seized.

A right-wing writer guy who once lobbied for a job in the Trump
administration said just within the last two weeks that he too was detained
by Mueller`s team, in his case at Logan Airport in Boston. There are also
apparently several Russian oligarchs who have been stopped and questioned
by FBI agents working with Mueller`s team including at least one oligarch
who had his plane and his personal electronics searched when he landed at a
New York-area airport in his private jet.

Just last week, Mueller`s investigators showed up unannounced on the
doorstep of some unnamed business associate of the Trump Organization.
They were reportedly armed with subpoenas compelling electronic records and
sworn testimony from that business associate of the Trump organization.
So, we know that Robert Mueller`s office, special counsel`s office, has
done all of these things, right? A no-knock predawn search warrant,
arresting people as they step off of planes, showing up at people`s private
planes and their houses and their offices with subpoenas to seize their
phones and seize their computers and seize their records.

And that`s what we`ve seen from them so far before today. That does not
appear to be what just happened today with Michael Cohen. The president`s
long-time personal attorney Michael Cohen did have his New York office
raided today, along with a hotel room that was apparently his temporary
home. He`s staying at a hotel while his apartment is being renovated I
think.

“New York Times” was first to report today that the FBI raided Cohen`s
office, quote, seizing business records, e-mails and documents related to
several topics including payments to a pornographic film actress. That
would be the $130,000 that Cohen says he paid to adult film star Stormy
Daniels right before the 2016 election in order to keep her quiet about an
extramarital affair she says she had with Donald Trump.

Now, as to why Cohen`s office got raided, “The Washington Post” was the
first to report today that Cohen is under federal investigation for
possible bank fraud, wire fraud, and campaign finance violations.
Investigators took Cohen`s computer, phone, and personal financial records
as part of the search of his office at Rockefeller Center in New York City,
which incidentally is where I sit right this second.

Quote: the broad seizure collected communications between Cohen and his
clients, including some with Trump. So, in this case, while we know that
Mueller`s team has been happy in the past, happy since the start of this
investigation, to execute warrants and searches anywhere, even at very
inconvenient times and at very unexpected places, this doesn`t appear to be
that same thing. This doesn`t fit that pattern, because what happened
today to Michael Cohen doesn`t appear to have been done by Mueller`s team.

These raids today on these premises controlled by Michael Cohen appear to
have come about thanks to a referral from Robert Mueller`s team, a referral
from Mueller`s team to the U.S. attorney`s office in Manhattan, in the
southern district of New York. So, it appears that Mueller`s prosecutors
may have come across something in the course of their investigation, they
may either have concluded themselves or more likely been told that that
something was outside the scope of their investigation in the special
counsel`s office, but that matter still deserved to be pursued as a
potential criminal issue. And so, they passed it on to the federal
prosecutor in the jurisdiction where Michael Cohen lives and works and
presumably where he banks.

So, this wasn`t Mueller`s team. This was a referral from Mueller`s team to
a local prosecutor, the federal prosecutor in the locality where Cohen is.

We think we know of only one other instance in which the Mueller
investigation has led to something like this. That time, it was about Paul
Manafort. It related to some unusual loans that extended to Paul Manafort
right after he left the Trump campaign, over $15 million in loans to Paul
Manafort from a small regional bank in Chicago that seemed to have no
business making those kind of loans.

That bank in Chicago was set up to benefit military veterans. Paul
Manafort is not a veteran. The loans to him also represented almost a
quarter of the bank`s total loanable assets. Why would you give away a
quarter?

The president of the bank turns out to be a Trump campaign adviser. Does
that look a little odd?

NBC News reported, though, that though the special counsel team looked at
those loans, they didn`t see any connection to their investigation in the
special counsel`s office. And so, they referred that case to the U.S.
attorney for the southern district in New York. They referred that case to
the federal prosecutor in Manhattan.

And, of course, it`s not like the Mueller investigation, Mueller and his
team stopped looking into Manafort. They still then and are still going
after Manafort on a gazillion other charges. And in fact when evidence
later turned up that those loans from that little Chicago bank to Manafort,
they might have been a quid pro quo. They might have demand exchange for
promises to the Chicago bank they`re he could get a big job in the Trump
administration.

Well, when that evidence emerged, then Mueller`s team reportedly started
looking at those loans again themselves in light of that new information,
to see if maybe they wanted to un-refer that case. Maybe they wanted to
bring that back under their purview.

So that one thing involving that little bank and those loans to Manafort
right after the election, that`s the only other time we know of that
something like this has happened on a particular matter, Mueller`s
prosecutors came across something they thought was potentially criminal,
but not with their remit at the special counsel`s office so they kicked it
out to a part of the Justice Department that`s outside the special
counsel`s office for them to pursue on their own. That appears to have
happened for a second time today with Michael Cohen.

Now, that seems important. At least in terms of understanding the
importance of what happened it seems like a helpful distinction to grasp,
because there are definitely things Michael Cohen is known to have been
involved in that could conceivably be within the Mueller investigation. In
October 2015, Trump signed a letter of intent to pursue a Trump Tower
Moscow, even while he was insisting publicly that he had no business deals
in Russia. That was a project that was spearheaded by Michael Cohen and a
Trump business associate who is a convicted felon named Felix Sater.

According to e-mails obtained by “The New York Times” last year, Sater
wrote to Michael Cohen about the project, quote, our boy can become
president of the United States and we can engineer it. I will get all of
Putin`s team to buy in on this. I will manage this process. I`ll get
Putin on this program and we will get Donald elected.

A few months later in 2016, Michael Cohen – I`m not kidding – wrote
directly to Vladimir Putin`s office, seeking Vladimir Putin`s help with the
Trump Tower Moscow project, reached out to Putin`s spokesman. We don`t
know if he ever heard back.

So, there is that involving Michael Cohen. There was also the Russia
sanctions relief plan that Michael Cohen appears to have hatched with Felix
Sater and with a pro-Russia Ukrainian lawmaker, a plan to try to get rid of
American sanctions on Russia while Russia also got to keep Crimea, which
would be a great deal for Russia.

Depending on what day you asked Michael Cohen about that Russian sanctions
plan that he helped cook up, he either delivered that incredibly evenhanded
proposal to then national security adviser Mike Flynn at his desk in the
White House or maybe Michael Cohen just delivered that plan right to his
home trash can. Depending what angle you ask him from you might get a
different answer on what became of that Russia-related plan he was involved
with.

So, the FBI has now raided Michael Cohen. There are a couple of Russia-
related things where you could imagine Michael Cohen coming under the
special counsel`s purview as he looks into the Russia matter.

But this raid really could be anything. Reports on the raids of Cohen`s
office and his hotel room today are careful to point out that while it
appears to be related to the hush money payment to Stormy Daniels, it could
absolutely involve other matters as well. Michael Cohen pops up in all
sorts of random Trump stuff that might conceivably have criminal
implications that the southern district of New York might want to execute
an office raid for.

I mean, yes, there`s that $130,000 paid to the porn star that set off all
kinds of red flags at the financial institution that it was routed through.
And it also raises questions about potential campaign finance violations if
that payment was made to try to influence the election.

Then, there`s the matter of a “Playboy” model, not Stormy Daniels,
different lady, who also claimed to have had an adulterous relationship
with Trump. She also got paid 150 grand for not speaking about her story.
She now contends that contract that she signed in that matter was
fraudulent because the guy who she thought was her lawyer in that matter
secretly behind the scenes was working with Michael Cohen.

There was also that time Michael Cohen threatened a reporter who was
digging into different allegations against Trump telling the reporter,
quote: I will make sure that you and I meet one day, and I will take you
for every penny you still don`t have. And I will come after your daily
beast and everybody else you that possibly know, so I`m warning you tread
very F-ing lightly because what I`m going to do to you is going to be F-ing
disgusting. I`m going to mess up your life for as long as you`re on this
frickin` planet, end quote.

I mean, while we`re going down the rundown, hey, back in the day, I should
tell you, Michael Cohen also lied to me, lied to us at this show about an
environmental cleanup legal matter at a place that Don Jr. used to own. I
mean, it really could be anything.

But what we know tonight is that Michael Cohen`s office and his hotel room
have been raided by the FBI under the direction of prosecutors in the
southern district of New York, working on a case referred to them from the
special counsel`s office.

It`s a big deal for a couple of reasons. First, no-knock search warrants
are usually only carried out when prosecutors have reason to believe that
other less intrusive methods won`t work. So, prosecutors in this case
presumably had to convince a judge that just subpoenaing these records that
they want wouldn`t be enough, they had to go grab them, had to go get them
with a search warrant.

This is also important because this appears to have been a referral from
the special counsel`s office.

We`re hearing tonight that if that`s the way this went down a lot of people
at various levels of the justice department would have had to sign off on
this. Up to and including the Deputy Attorney General Rod Rosenstein.
Stick a pin in that. We will come back to it. It`s important.

Third, seizing records from a lawyer`s office is really complicated. Lots
of things are covered by attorney-client privilege, including perhaps
records in Cohen`s office relating to his service as President Trump`s
personal lawyer. So, the FBI and prosecutors have to proceed with a lot of
caution here.

Michael Cohen`s lawyer this evening issued a statement that read in part,
quote: The decision by the U.S. attorney`s office in New York to conduct
their investigation using search warrants is completely inappropriate and
unnecessary. It resulted in unnecessary seizure of protected attorney-
client communications between a lawyer and his clients.

So, there are all sorts of reasons this raid is fascinating and potentially
important today. But, of course, the primary reason this is such a big
deal is the president of the United States just had the office of his
personal lawyer raided by federal agents. And that doesn`t happen every
day. That doesn`t even happen every lifetime. That doesn`t even happen
once a country.

But tonight, the president surrounded by his senior military leadership
called these raids by his own Justice Department a break-in. He said: I
just heard they broke into the office of one of my personal attorneys, a
good man. It`s a disgraceful situation. And then he openly mused about
the possibility of firing special counsel Robert Mueller.

Joining us now is Tom Winter, reporter with the NBC News investigations
unit who`s been following this all day.

Tom, I appreciate your time tonight. Thank you.

TOM WINTER, NBC NEWS INVESTIGATIVE REPORTER: Thank you.

MADDOW: So the first thing that I thought when I heard about this today
was what, this is in the building and we didn`t see it?

(LAUGHTER)

MADDOW: We are in Rockefeller Center. We got no footage of the raid under
way.

WINTER: No. It was – kudos to the FBI. They did not call up ahead of
time and say, hey, you guys may want to get a camera over here. So, no, we
did not know about this when the agents first showed up here at the
building today, and presumably, they were able to enter and leave and
conduct their business without us noticing here and nobody else had a
picture of it. So, yes, they were able to do their job.

MADDOW: And in terms of what – in terms of the way this was executed,
we`ve been advised today that – and Cohen`s lawyer`s making the case,
listen, you could have just asked. You could have asked for these
documents, you could have subpoenaed these documents, we`ve been
cooperating all along.

Why a search warrant? Do we have any indication of why a search warrant,
why it was done this way?


WINTER: Well, sure. And according to the U.S. attorney`s manual, the
first thing you`re supposed to do is ask. The first thing you`re supposed
to do when it involves an attorney is say hey, can we get these documents,
maybe follow it up with a subpoena.

But at some point, if you`re a federal investigator or a federal
prosecutor, you say, you know what, we may not be getting the full story
here or based on documents that they`ve received in other parts of this
investigation, they may have said, hey, we`re not getting everything from
Michael Cohen that we know that he has and so, we need to go to a judge,
present some probable cause here and say, hey, we`re not getting everything
that we need and we have reason to believe that he has files,
communications, media, something on his computer or computers that we need
to have a look at because otherwise we`re not going to get that material
through a lawful subpoena. So, at that point, they have to go get a search
warrant.

Does it send a message? A lot of people like to look at the theater of
this. You know, I think anytime that you have somebody come into your
property or to wherever is your realm and say, we`re taking – physically
taking some of your stuff and you can`t say anything about it because the
Constitution protects our ability to go in and get this warrant and get the
material that a judge approves, yes, that probably sends a message.

But it`s more the fact that it`s prosecutors here that are very good. And
the public corruption unit that`s involved in this with the New York FBI
field office, this particular U.S. attorneys office, which has prosecuted
both Democrats and Republicans, is an office that is known for being very
thorough, and if they went in, this was an effort to get all the documents
that they think they can get their hands on, they can help them with this
investigation.

MADDOW: There is – there is the matter of the fact this is a lawyer`s
office. Some logistics on that, right? That`s a big deal.

WINTER: Sure.

MADDOW: So, Michael Cohen for a long time was a Trump Organization
employee. He is no longer a Trump Organization employee as far as we know.
He had an office still operating as essentially a solo practitioner. He
had an office in another law firm that was located in this building.

WINTER: Yes.

MADDOW: They described their relationship with Michael Cohen as a
strategic partnership, some sort of strategic alliance where he was working
in an office in their firm without being part of their firm. Today, that
law firm announced that relationship has come to an end. They say they`re
in touch with prosecutors and they`re cooperating in this matter.

Presumably, there`s – I mean, presumably, you don`t want anybody working
in your office that`s getting raided by the FBI.

WINTER: Exactly.

MADDOW: It`s just inconvenient. But prosecutors have to take incredible -
- incredibly specific steps to make sure they`re not infringing on
attorney-client privilege when they do something like this.

WINTER: They absolutely do. I mean, first off, you`ve got this right
here, this is just a portion, three or four pages from the U.S. attorney`s
manual. This is just a portion of what they have to do.

MADDOW: Searches the premises of subject attorneys.

WINTER: Subject attorneys, exactly. So, that`s just a little bit of what
they have to in order to get approval to it. They actually have to submit
this form. I redacted the information. But they have to submit this form
to the Justice Department, to their headquarters in Washington, D.C., or
main justice as the saying goes.

So, they`ve got to get all sorts of approvals, all sorts of sign-offs to be
able to do this. And then when they get those communications, or they get
the results of today`s search, then they have to set up a team, and it`s
going to be an entirely separate team that`s going to look at these
communications and say, OK, guys, we know the scope, what the judge has
approved here, we know the scope of what you can get. And then they`ll
hand over those communications to the actual trial team because what they
need to protect in this case is for the people actually going to bring this
potential case to trial, should he be prosecuted.

That team can`t be aware of any sort of communications that occurred as it
related to attorney-client privilege. But if there were communications,
and this is where this whole attorney-client privilege thing goes right out
the window, if there were communications that were some sort of a favoring
of a fraud or covering up of a crime, those communications are not
privileged and those are the type of communications that would be made
available to prosecutors, federal agents, for them to continue their
investigation, to possibly continue their case and one day possibly bring
charges.

MADDOW: So, they`ll have a team look at material that Cohen might say is
privileged –

WINTER: Exactly.

MADDOW: – and they may say some of that you think it`s privileged, but
that`s, actually, you guys – you negotiating a crime with your client,
we`re going the to hand that over to the other side of the law.

WINTER: That`s subject to the search warrant – exactly. That`s going to
the other side of the law, but some of that other communication that may
relate to Trump`s communications on all sorts of matters, most of which
you`ve just discussed, those are going to stay on the other side of the
law.

MADDOW: Tom Winter, reporter with NBC News Investigations Unit – thank
you for helping us understand.

WINTER: Thank you.

MADDOW: Can I keep this?

WINTER: Yes.

MADDOW: Thank you very much.

All right. Much more ahead. Stay with us.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

REPORTER: Did the president and Michael Cohen talk about this payment at
any time during the campaign or thereafter?

SARAH HUCKABEE SANDERS, WHITE HOUSE PRESS SECRETARY: Not that I`m aware
of. And I`d refer you to Michael on that.

RAJ SHAH, WHITE HOUSE DEPUTY PRESS SECRETARY: I`ll have Michael Cohen
address any specifics regarding this. You have to ask Michael Cohen about
the specifics.

SANDERS: Once again I would refer you to the president`s outside counsel.

I would refer you to Michael Cohen.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: You`ll have to ask Michael
Cohen. Michael is my attorney and you`ll have to ask Michael.

(END VIDEO CLIP)

MADDOW: You`ll have to ask Michael. C-O-H – it`s C-O-H-E-N. Call
Michael.

When it comes to questions about the president`s alleged relationship with
adult film actress Stormy Daniels and the $130,000 payment Michael Cohen
says he made to her right before the election, the White House response,
the president`s response personally has been to tell reporters they need to
talk to the president`s lawyer, call Michael Cohen. We`re not answering,
ask him.

Well, today as Cohen`s office and hotel room were raided by the FBI, Carol
Leonnig, Tom Hamburger, and Devlin Barrett at “The Washington Post” were
first to report that while the FBI did today, seize records related to that
payment to Stormy Daniels, what the FBI was after appears to be much
broader than that.

Quote: Michael Cohen, the long-time attorney of President Trump, is under
federal investigation for possible bank fraud, wire fraud, and campaign
finance violations. FBI agents today raided Cohen`s Manhattan office home
and hotel room as part of the investigation, seizing records about Cohen`s
clients and personal finances. Investigators took Cohen`s computer, phone,
and personal financial records including tax returns, tax returns, as part
of the search of his office.

One person familiar with the probe said investigators have been gathering
material on Michael Cohen for weeks including his bank records. Two of the
potential crimes being investigated, bank fraud and wire fraud, suggest
prosecutors have some reason to think Cohen may have misled bankers about
why he was using particular funds or may have improperly used banks in the
transfer of funds.

Joining us now is Tom Hamburger. He`s an investigative reporter at “The
Washington Post” who helped break this story. Mr. Hamburger, it`s nice to
see you. Thank you for being here.

TOM HAMBURGER, POLITICAL INVESTIGATIONS REPORER, THE WASHINGTON POST:
Thank you.

MADDOW: I`m not sure I understand all of what bank fraud and wire fraud
and tax fraud means, what those all mean in these circumstances.

Is the implication of your reporting that Michael Cohen might potentially
be on the hook for all of those things, all of them related to the Stormy
Daniels payment, or the Stormy Daniels payment and a lot of other things
are all being rounded up together by the investigators who called for these
raids today?

HAMBURGER: So, Rachel, thanks for the question. One of the first things
we should do probably is acknowledge what we don`t know, and that is we
don`t have the specific answers to precisely what investigators were
looking for in this massive and surprising search of Michael Cohen`s law
offices, personal residence and hotel room. So, we don`t know precisely.

One of the things we do know from multiple sources is that federal
investigators have been looking at Michael Cohen, as you said, in
connection with bank fraud, wire fraud, and campaign finance violations,
and we know also that some of the materials seized today had to do with the
Stormy Daniels case, the payment to the adult industry star just 12 days
before the election. And so, it`s possible, it`s possible but we don`t
know for sure, that all three of those areas under which Cohen is under
investigation could be connected with that Stormy Daniels payment, and if
so, here`s how it might work.

If there were payments that were made to a bank account, that were made
under false pretenses, or in which Michael Cohen did not provide honest
answers when asked about the source of funds, for example, that could be a
problem. The campaign violation could kick in if the payment to Stormy
Daniels 12 days before the election was seen as in effect a campaign
contribution, something that was done in order to benefit the Trump
presidential campaign. Michael Cohen has denied to us and to others in the
past that there is any connection with the campaign.

But if there was some documentation or some reason to believe that in
effect this money was somehow used to support the Trump campaign or benefit
Donald Trump as a candidate it could fall under campaign finance laws.

MADDOW: Tom, late last week we saw the president for the first time
personally entertain questions about the Stormy Daniels matter and
specifically the payment. The president told reporters last week on tape
that he didn`t know anything about the payment.

Is there any indication that that might have been a catalyst for these
raids going ahead? Is that such a legally significant admission from the
president that that might have kicked this into action?

HAMBURGER: Again, Rachel, I think I have to come back to acknowledge what
we don`t know. What we do know is there is this coincidence in which the
president just a couple of days ago, just last Friday, end of last week,
acknowledges that he was unaware of this arrangement, this deal now subject
to private arbitration, that he was unaware of the deal that was negotiated
on his behalf by his attorney Michael Cohen. It was a stunning revelation
by the president, speaking out about that. And then what we find is just a
few days later, there`s this raid of Michael Cohen`s legal office, private
home, and hotel room.

MADDOW: Yes. I mean, I`m not a lawyer, and I shouldn`t do armchair
lawyering on these things and probably nobody should. But to have the
president saying he didn`t know about that deal, to have the deal
purportedly being something that Michael Cohen negotiated in his interest,
obviously, there`s at least tension there. Whether or not it was
significant to set this off, the story remains to be told.

Tom Hamburger, investigative reporter for “The Washington Post,” it`s
always a pleasure to have you here. Thank you for helping us understand.

HAMBURGER: Thanks. Good to be with you.

MADDOW: Appreciate it.

HAMBURGER: All right. Lots of ground left to cover tonight. Stay with
us.

(COMMERCIAL BREAK)

MADDOW: Today`s FBI raid on the office of the president`s personal
attorney was carried out by FBI agents under the supervision of federal
prosecutors in the U.S. attorney`s office for the southern district of New
York. So, the Manhattan federal prosecutor`s office. But that raid came
after a referral from the office of special counsel Robert Mueller.

Quote: Several law enforcement officials confirmed to NBC News that the
search of Cohen`s office was not the work of Mueller`s prosecutors. It
involves a matter that the Mueller team came across which the team
concluded did not fall under its mandate and they passed it on to the U.S.
attorney`s office in Manhattan.

That decision, though, that issue of whatever or not this – whatever they
came across within the mandate of the special counsel`s office, that
decision was not ultimately made by Robert Mueller himself. The person who
appears to have signed off on that decision is Deputy Attorney General Rod
Rosenstein. Attorney General Jeff Sessions has recused himself from all
matters related to the Russia investigation. Rod Rosenstein is the number
two at the department and he`s in charge of all matters pertaining to the
special counsel`s office and the Russia matter more broadly.

As “Bloomberg” reported today, quote: Mueller brought information involving
Cohen to Rod Rosenstein. Rosenstein decided that the inquiry should be
handled by federal prosecutors in New York.

So, that`s what we believe was the structure of this happening today. But
that exact issue, what falls under Mueller`s mandate, what can Mueller do
himself and what does he have to give to other people to pursue, the
process of deciding what gets wrapped into his investigation and what has
to be pursued by other prosecutors, you know, it`s interesting. This exact
issue came up when Rosenstein testified before Congress this December.

Watch this.

(BEGIN VIDEO CLIP)

REP. ZOE LOFGREN (D), CALIFORNIA JUDICIARY COMMITTEE: It`s my
understanding that under the order appointing him Mr. Mueller has the
authority to investigate matters that arose or may arise directly from the
investigation, which would include crimes uncovered while he is
investigating the main mission. So, for example, if he is looking at the
Russia investigation and he finds out that the person he`s looking at
committed a bank robbery, he isn`t required to ignore a bank robbery.
Would that be a fair assessment of his responsibilities?

ROD ROSENSTEIN, DEPUTY ATTORNEY GENERAL: It`s a fair assessment –

UNIDENTIFIED MALE: The time of the gentleman has expired. Mr. Rosenstein
may answer the question.

ROSENSTEIN: Also, it`s important to recognize because it`s a special
counsel, not an independent counsel, those issues are worked out with the
department. So in the event that he came across evidence that was not
appropriate for him to prosecute, he could refer it to other components of
the department. So, we wouldn`t allow something like that to slip through
the cracks but we would make sure to route it to the appropriate
prosecutor.

(END VIDEO CLIP)

MADDOW: We wouldn`t allow something like that to slip through the cracks.
We would route it to the appropriate prosecutor.

Well, in this instance, Rosenstein apparently decided that the appropriate
prosecutor was the federal prosecutor in Manhattan. And that`s not only an
interesting and important decision for Rod Rosenstein to have made. It
also means that Rosenstein found himself in the spotlight when the
president reacted to this news tonight.

(BEGIN VIDEO CLIP)

TRUMP: Why don`t I just fire Mueller? Well, I think it`s a disgrace
what`s going on. We`ll see what happens. But I think it`s really a sad
situation when you look at what happened.

Many people have said you should fire him. Again, they found nothing and
in finding nothing, that`s a big statement. If you know the person who`s
in charge of the investigation, you know all about that, Deputy Rosenstein,
Rod Rosenstein. He wrote the letter, very critical, of Comey.

One of the things I said I fired Comey, well, I turned out to do the right
thing because you look at all of the things that he`s done and the lies,
and you look at what`s gone on at the FBI, with the insurance policy and
all of the things that happened, it turned out I did the right thing.

But he signed – as you know, he also signed the FISA warrant. So, Rod
Rosenstein, who`s in charge of this, signed a FISA warrant and he also –
he also signed a letter that was essentially saying to fire James Comey.
And he was right about that. He was absolutely right.

So, we`ll see what happens. I think it`s disgraceful, and so does a lot of
other people. This is a pure and simple witch hunt.

Thank you very much. Thank you. Please.

REPORTER: Will Rod Rosenstein keep his job?

TRUMP: Thank you.

REPORTER: Will Rod Rosenstein keep his job?

TRUMP: Thank you all very much.

(END VIDEO CLIP)

MADDOW: You can hear the reporters asking very clearly at the end there,
will Rod Rosenstein keep his job? Thank you very much. No answer from the
president.

Whatever the answer is to that question is now suddenly very, very
important. And we`ve got more on that ahead.

Stay with us.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

REPORTER: Will Rod Rosenstein keep his job?

TRUMP: Thank you.

REPORTER: Will Rod Rosenstein keep his job?

TRUMP: Thank you all very much.

(END VIDEO CLIP)

MADDOW: We weren`t asking to be thanked. We were asking will Rod
Rosenstein keep his – that question directed at the president today after
Deputy Attorney General Rod Rosenstein apparently signed off on sending
this investigation to federal prosecutors in New York who have now raided
the office and the hotel room of the president`s personal lawyer.

No answer from the president tonight on the fate of Rod Rosenstein, but
clearly, that`s an important next thing for our country to understand.

Joining us now is Barbara McQuade, former U.S. attorney for the great state
of Michigan.

Barbara, thank you for being here in person.

BARBARA MCQUADE, FORMER U.S. ATTORNEY: Oh, my pleasure. Thanks.

MADDOW: Let me ask first about this happening in the first place. Is this
a – is this a weird thing? We`ve got a determination by Mueller
apparently under advice from Rosenstein, that this isn`t within the special
counsel`s remit and instead should be handled by the special prosecutor.
Is that an unusual process?

MCQUADE: Well, the whole special counsel situation is a little unusual, a
little different from what we normally see in the way cases are held. But
because of the mandate that Robert Mueller`s to come back to Rod Rosenstein
anytime he wants to expand the scope of his investigation, he probably
thought it was necessary to have a conversation with him. I don`t know
whether Robert Mueller advocated to keep this piece of the case or
advocated that it should go elsewhere, but nonetheless Robert Mueller said
this is a valid investigation that we should pursue, but I see it as beyond
the scope of your job, so we`ll farm it out to the special U.S. attorney`s
office for the southern district of New York.

MADDOW: The president`s remarks and the way he talked about Rosenstein are
putting a hot spotlight on Rosenstein. Is there anything about what we
understand to be his behavior in this matter which would suggest that he
acted either inappropriately or even controversially?

MCQUADE: No, absolutely not. I mean, he`s doing his job.

From time to time U.S. attorney`s office will compete for the same case.
They`ll have, you know, various stakes in the case. Maybe, it`s a company
that is located in Michigan but trades on the stock exchange in New York.
And so, each of those offices has an interest in pursuing those cases.

In those instances, it is the deputy attorney general or even the attorney
general himself who will make a decision that I think the equities of the
case make it more appropriate to be handled in one case, in one
jurisdiction versus another. So, I don`t think there`s anything other than
Rod Rosenstein doing his job today and making this decision.

MADDOW: When you`re serving as U.S. attorney, as you did in Michigan,
you`re making a decision as to how to secure and obtain evidence and
information you that think is relevant to a case, how do you decide whether
you`re going to get it by search warrant versus subpoena versus just
requesting it?

Cohen`s lawyer complaining today this was unnecessary, is the word he used,
saying you didn`t need to come raid this guy`s office and hotel room and
home, you could have just asked, we`re happy to cooperate.

MCQUADE: Well, if you look at the language of the U.S. attorney`s manual,
which governs the process in these cases, and the actual practices, you go
with the least intrusive method for obtaining what you need in an
investigation. And so, you`ll sit down and have a conversation. Do we
think we can get this just by asking them or sending them a letter? And if
so, that`s what you do because it takes fewer resources and you can get
what you need.

Do we need to do something a little more severe by using a grand jury
subpoena which has a little more teeth in it in case they don`t comply and
we can charge them with obstruction of justice? Or if you don`t trust them
to give everything that they have, if you think they will hold something
back, it`s then and only then that you would use a search warrant. And for
an attorney`s office, it`s a very high standard you have to get approval
from the Department of Justice to explain that we`ve gone through this
process and we think it`s necessary to get what we need in this case.

MADDOW: And when they elect to go with a same warrant, does that usually
mean there`s some sort of time sensitivity on, this that they think they
have to act with the element of surprise?

MCQUADE: It could be. There`s usually the element of surprise and there
could be some concern about destruction of evidence. It could just be
we`re not convinced that if we ask for this stuff, that the person`s going
to turn it over for us. But when you get a search warrant, you get ten
days to execute it.

MADDOW: I`m going to stalk with Michael Beschloss, presidential historian,
in just a minute in part about the risk of Rod Rosenstein being targeted by
the president. The president talking about him by name in a sort of
rambling way. The president also talking about Mueller by name in a way he
didn`t use to.

What`s your feeling, what`s your sense about the risk, of what it would
mean for the country or whether it would mean anything significant for the
country if the president took that kind of action?

MCQUADE: I think it would be very damaging to our institutions of
government. Rod Rosenstein has shown himself I think to be a career
professional who`s called – made these calls as he`s seen them. And to be
fired simply for authorizing a lawful search of someone who happens to be
the president`s private attorney seems like such a nakedly political
decision that I think it would be politically disastrous for the president.
And so, I hope it doesn`t happen but I think if it did it would have
serious ramifications for the rule of law.

MADDOW: Political disaster no longer – no longer is an outcome that
predetermines people`s actions. Barbara McQuade, former U.S. attorney for
Michigan – it`s really good to have you here.

MCQUADE: Thanks, Rachel.

MADDOW: Thanks for coming in.

All right. As I mentioned, Michael Beschloss still ahead tonight. Lots
more still to get to. Stay with us.

(COMMERCIAL BREAK)

MADDOW: Michael Cohen is President Trump`s personal lawyer. He doesn`t
work in the White House. He did not work on the campaign. He doesn`t even
work for the Trump Organization anymore.

And yet, the president himself tonight had a bit of an on camera meltdown
on Cohen`s behalf, describing it as disgraceful that Cohen`s office and
hotel room were raided today by the FBI.

Have we ever seen a president make such a public pronouncement to shield a
personal connection? In this case, the president attacking the FBI and the
Justice Department saying their actions in this case were a disgrace.

Joining us now is NBC news presidential historian Michael Beschloss.

Mr. Beschloss, thank you so much for being with us tonight. I`m sure when
you saw the news, you knew I was going to call.

MICHAEL BESCHLOSS, NBC NEWS PRESIDENTIAL HISTORIAN: I thought that might
somehow happen.

MADDOW: Let me just ask the question as I set it up there.

Mr. Cohen has an unusual relationship with the president. He is a personal
attorney. He does not represent the White House. He doesn`t work for the
administration. He doesn`t work for the Trump organization anymore.

But the president say – tonight going out, way out on a limb, attacking
the Justice Department and the FBI for what he says was a disgraceful move
on their part –

BESCHLOSS: Right.

MADDOW: – to raid Mr. Cohen`s office.

BESCHLOSS: He did. And you sort of wonder what he is worried about that
Michael Cohen knows or may have records of.

And, you know, what we saw tonight, Rachel, that is something we have not
seen from a president. You know, to go back to Richard Nixon during
Watergate, he was angry at Archibald Cox, but he didn`t in public sort of
run against Cox and say this is a bad man. He is surrounded by Democrats.
In fact, in private, Nixon was irritated by the fact that Cox had worked
for John F. Kennedy and had Democrats on his staff, but he didn`t try to do
the thing that the president did today.

It didn`t really sound like a president. It sounded to me as I was
listening more like if a Martian came and heard Donald Trump speaking, it
sounded more like some angry political boss in some city machine going out
against the prosecutor.

MADDOW: We just heard from Barbara McQuade, former U.S. attorney from
Michigan. She is a very even-keeled non-hyperbolic speaker. I asked for
her reaction to the prospect that the president might take action against
Rosenstein, against Sessions, against Mueller, some other thing he might
try to do in order to shut this down.

She described that as potentially disastrous for the rule of law, and also
something that would have politically disastrous consequences. I don`t
know how to assess what a political disaster is anymore.

BESCHLOSS: Right.

MADDOW: But I guess – I guess I`d ask you to put that in historical
context, what you think the response would be.

BESCHLOSS: Well –

MADDOW: Yes.

BESCHLOSS: I did sound like an echo of the Saturday Night Massacre in
which Richard Nixon said to Archibald Cox, stop coming after me and asking
for my tapes or else I might fire you, and he did.

In Donald Trump`s case, I think he`s going Nixon, you know, much further,
although did you hear him use that phrase “witch-hunt” tonight? That was
totally out of the Nixon lexicon, that was a term that Nixon used.

But what Donald Trump was suggesting tonight I think he was suggesting that
Rosenstein as a demon or a potential demon, the same thing with Mueller. I
think he`s setting out the predicate, sadly, for a huge war in which he at
least has the possibility of firing Mueller and then trying to wage a
political war.

He is living in a different environment than Richard Nixon did. And it
might be easier for him to do that. So, there might be a political crisis
here. But we can`t predict.

MADDOW: Michael Beschloss, NBC News presidential historian – leaving us
out on the limb at this point.

BESCHLOSS: Sorry about that.

MADDOW: That`s where we all are. That`s where we are. Thanks, Michael.
Appreciate it.

BESCHLOSS: Thank you, Rachel. Be well. We`ll talk soon.

MADDOW: We`ll be right back.

(COMMERCIAL BREAK)

MADDOW: EPA administrator Scott Pruitt has stepped in a hornet`s nest of
scandals recently. Two of the scandals involving him got kicked up a notch
tonight. Scott Pruitt has claimed he had no idea his agency used an
obscure legal provision to give two of his top staffers gigantic raises
after the White House refused to approve them. But “The Atlantic” magazine
reports today that internal e-mails suggest Pruitt very much did know about
at least one of those raises.

According to “The Atlantic”, one of the staffers who got one of these giant
raises wrote to HR in an attempt to confirm that her pay raise of over
$56,000 was being processed. The staffer definitively stated that Scott
Pruitt approves and was supportive of her getting a raise. So, Pruitt said
he had no idea about those raises. Internal e-mails say oh, yes he did.
That will be interesting to follow up.

Then there is Samantha Dravis, who`s one of Scott Pruitt`s closest aides,
one of his senior staffers. She quit last week shortly after Senator Tom
Carper of Delaware sent this letter to the EPA, asking the inspector
general there to investigate reports that Ms. Dravis had not shown up for
work for three months, from November 2017 to January 2018, all while
getting paid the full time.

This is during the same period when Scott Pruitt took Dravis and six other
staffers on that amazing trip to Morocco by way of Paris last December.
So, the allegation is that she didn`t make to it work for three months, but
she did make to it Morocco and Paris.

Tonight, Senator Carper got an answer from the EPA, from the inspector
general`s office. Quote: After analyzing your request, we have decided to
conduct the requested review. The issues raised in your letter are within
the authority of the OIG to review, and we will do so. We will inform you
and your staff when we complete the review.

And then I`ll inform you as soon as I hear about it. Watch this space.

That does it for us tonight. We will see you again tomorrow.

Now, it`s time for “THE LAST WORD WITH LAWRENCE O`DONNELL.”

Good evening, Lawrence.


END



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

Copyright 2018 ASC Services II Media, LLC. All materials herein are
protected by United States copyright law and may not be reproduced,
distributed, transmitted, displayed, published or broadcast without the
prior written permission of ASC Services II Media, LLC. You may not alter
or remove any trademark, copyright or other notice from copies of the
content.>