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After deliberating for a little more than a day, a Manhattan jury on Thursday found Donald Trump guilty of falsifying 34 business records to aid or conceal “another crime,” an intent that turns what would otherwise be misdemeanors into felonies. If you assumed that the jury’s conclusions would be driven by political animus, this first-ever criminal conviction of a former president is the result you probably expected in a jurisdiction where Democrats outnumber Republicans by 9 to 1. But in legal terms, the quick verdict is hard to fathom.

That’s not because there were so many counts to consider, each related to a specific invoice, check, or ledger entry allegedly aimed at disguising a hush-money reimbursement as payment for legal services. Once jurors accepted the prosecution’s theory of the case, it was pretty much inevitable that they would find Trump guilty on all 34 counts. But that theory was complicated, confusing, and in some versions highly implausible, if not nonsensical. Given the puzzles posed by the charges, you would expect conscientious jurors to spend more than an afternoon, a morning, and part of another afternoon teasing them out.

Manhattan District Attorney Alvin Bragg’s case against Trump stemmed from the $130,000 that Michael Cohen, then Trump’s lawyer and fixer, paid porn star Stormy Daniels shortly before the 2016 presidential election to keep her from talking about her alleged 2006 sexual encounter with Trump. When Trump reimbursed Cohen in 2017, prosecutors said, he tried to cover up the arrangement with Daniels by pretending that he was paying Cohen, whom he had designated as his personal attorney, for legal work.

Cohen testified that Trump instructed him to pay off Daniels and approved the plan to mischaracterize the reimbursement. Cohen was the only witness who directly confirmed those two points, and the defense team argued that jurors should not trust a convicted felon, disbarred lawyer, and admitted liar with a powerful grudge against his former boss. But even without Cohen’s testimony, there was strong circumstantial evidence that Trump approved the payoff and went along with the reimbursement scheme.

The real problem for the prosecution was proving that Trump falsified business records with “an intent to commit another crime or to aid or conceal the commission thereof”the element that was necessary to treat the misleading documents as felonies. Prosecutors said the other crime was a violation of Section 17-152, an obscure, little-used provision of the New York Election Law. Section 17-152 makes it a misdemeanor for “two or more persons” to “conspire to promote or prevent the election of any person to a public office by unlawful means.” But prosecutors never settled on any particular explanation of “unlawful means,” and Juan Merchan, the judge presiding over the trial, told the jurors they could find Trump guilty even they could not agree on one.

According to one theory, Cohen made an excessive campaign contribution, thereby violating the Federal Election Campaign Act (FECA), when he fronted the money to pay Daniels. Cohenpleaded guiltyto that offense in 2018 as part of an agreement that also resolved several other, unrelated federal charges against him.While jurors heard about that guilty plea during the trial, CNNnotes, Merchan instructed them that they should consider it only “to assess Cohen’s credibility and give context to the events that followed, but not in determining the defendant’s guilt.”

It is unclear whether Trump violated FECA by soliciting Cohen’s “contribution,” a question that hinges on thefuzzy distinctionbetween personal and campaign expenditures. Given the uncertainty on that point, it isplausiblethat Trump did not think the Daniels payment was illegal, which helps explain why he was never prosecuted under FECA: Toobtain a conviction, federal prosecutors would have had to prove that he “knowingly and willfully” violated the statute.

The New York prosecutors said Cohen and Trump conspired to promote his election through “unlawful means.” Under New York law, a criminal conspiracy requires “a specific intent to commit a crime.” Trump’s understanding of FECA was relevant in assessing whether he had such an intent, meaning he recognized the nondisclosure agreement with Daniels as “unlawful means.” Trump’s understanding of FECA therefore also was relevant in assessing whether he falsified business records with the intent of covering up “another crime.”

That theory assumed three things: 1) that Trump recognized the Daniels payment as a FECA violation; 2) that he knew about Section 17-152, a moribund, rarely invoked law; and 3) that he anticipated how New York prosecutors might construe Section 17-152 in light of FECA. The first assumption is questionable, the second is unlikely, and the third is highly implausible. Yet you would have to believe all three things to conclude that Trump approved a plan to misrepresent his reimbursement of Cohen as payment for legal services with the intent of covering up a FECA-dependent violation of Section 17-152.

According to a second theory, Trump facilitated a violation of New York tax law by allowing Cohen to falsely report his reimbursement as income. Although that violation is described as “criminal tax fraud,” Merchan said it did not matter that Cohen’s alleged misrepresentation resulted in a highertax bill. The judge noted that it is illegal to submit “materially false or fraudulent information in connection with any return,” regardless of whether that information benefits the taxpayer.

Putting aside that counterintuitive definition of tax fraud, this theory required believing that Trump, when he reimbursed Cohen, not only contemplated what would happen when Cohen filed his returns the following year but also thought that “unlawful means” somehow would influence an election that had already happened. The logic here was hard to follow.

Likewise with the third theory of “unlawful means.” Prosecutors suggested that Trump’s falsification of business records was designed to aid or conceal the falsification of otherbusiness records. CNNreportedthat the latter records could involve, among other things, the corporate bank account that Cohen created to pay Daniels, Cohen’s transfer of the money to Daniels’ lawyer, or the Trump Organization’s 1099-MISC forms for the payments to Cohen.

Since the 1099 forms were issuedafterthe election, it is hard to see how they could have been aimed at ensuring Trump’s victory. And although the other records predated the election, this theory involves a weird sort of bootstrapping.

Prosecutors said the records related to Cohen’s dummy corporation, for example, were falsified because they misrepresented the nature and purpose of that entity, which by itself is a misdemeanor. That misdemeanor was the “unlawful means” by which Trump allegedly sought to promote his election, another misdemeanor. And because Trump allegedly tried to conceal the latter misdemeanor by falsifying the records related to Cohen’s reimbursement, those records are 34 felonies instead of 34 misdemeanors.

The theory that Trump falsified business records to conceal the falsification of business records was “so circular as to produce vertigo in the jury room,” George Washington University law professor Jonathan Turley said. If so, the jurors seem to have quickly recovered from their queasiness. They accepted either this dubious theory, one of the others, or possibly some combination of them. Since unanimity was not required, it is possible that some jurors bought the FECA theory, some preferred the double falsification theory, and some concluded that the case was clinched by a tax fraud with no pecuniary benefit.

To disguise the difficulties with its dueling theories, the prosecution averredthat Trump committed “election fraud” when he directed Cohen to pay Daniels for her silence, thereby concealing information that voters might have deemed relevant in choosing between him and Hillary Clinton. “This was a planned, coordinated, long-running conspiracy to influence the 2016 election, to help Donald Tump get elected through illegal expenditures, to silence people who had something bad to say about his behavior,” lead prosecutor Matthew Colangelotoldthe jury in his opening statement. “It was election fraud, pure and simple.”

During his summation, prosecutor Joshua Steinglass called the nondisclosure agreement with Daniels “a subversion of democracy.” Hesaid it was an “effort to hoodwink the American voter.” He told “a sweeping story about a fraud on the American people,” as The New York Timesput it. “He argue[d] that the American people in 2016 had the right to determine whether they cared that Trump had slept with a porn star or not, and that the conspiracy prevented them from doing so.”

Did the American people have such a right? If so, Trump would have violated it even he had merely asked Daniels to keep quiet, perhaps by appealing to her sympathy for his wife. If Daniels had agreed, the result would have been the same. As the prosecution told it, that still would amount to “election fraud,” even though there is clearly nothing illegal about it.

The jurors evidently bought this cover story. During deliberations, they revisited the testimony of former National Enquirer publisher David Pecker, a Trump buddy whom prosecutors implicated in that “long-running conspiracy to influence the 2016 election.” Pecker’s arrangement with Trump, which he described as mutually beneficial, was not the basis for any of the charges against Trump. But his testimony reinforced Bragg’s legally dubious claim that Trump engaged in “election interference” when he sought to avoid bad press.

Pecker said he agreed to help Trump in several ways. He would run positive stories about Trump and negative stories about his opponents. He also would keep an eye out for potentially damaging stories about Trump and alert Cohen to them. The latter promise resulted in two agreements that the Enquirer negotiated with Dino Sajudin, a former Trump Tower doorman who falsely claimed that Trump had fathered a child with a woman hired to clean the building, and former Playboy Playmate Karen McDougal, who described a year-long affair with Trump. After paying $30,000 to Sajudin and $150,000 to McDougal for exclusive rights to their stories, the Enquirer sat on them.

Again, Trump was not charged in connection with any of this, and much of what Pecker did was constitutionally protected, albeit journalistically unethical. The fact that the jury nevertheless wanted to be read excerpts from Pecker’s testimony suggests they accepted the prosecution’s commodious understanding of “election fraud,” which did not necessarily require any actual lawbreaking, let alone any attempt to interfere with the casting, counting, or reporting of votes.

In short, there was a glaringmismatch between the charges against Trump and what prosecutors described as the essence of his crime, which isnot a crime at all. Since they could not charge him with “election fraud” merely because he tried to hide embarrassing information, they instead built a convoluted case that relied on interacting statutes and questionable assumptions about Trump’s knowledge and intent.

That approach suggests several possible grounds for appeal. It is not clear, for example, whether a violation of federal campaign finance regulations counts as “another crime” under the state law dealing with falsification of business records. Even if it does, it is not clear whether Section 17-152 applies in the context of a federal election, where federal law generally pre-empts state law. There are also questions about what is required to prove that Trump had “an intent to defraud” when he signed the checks to Cohen.

Bragg’s predecessor, Cyrus R. Vance Jr., after lengthy consideration of possible state charges based on the Daniels payment, decided they were too legally iffy to pursue. Mark Pomerantz, a former prosecutor in Vance’s office who worked on the Trump investigation,concludedthat “such a case was too risky under New York law.” In a 2023book, Pomerantznotedthat “no appellate court in New York had ever upheld (or rejected) this interpretation of the law.”

Last week,New York Times columnist David French worried about the consequences of a conviction that is overturned on appeal. “Imagine a scenario in which Trump is convicted at the trial, Biden condemns him as a felon and the Biden campaign runs ads mocking him as a convict,” he wrote. “If Biden wins a narrow victory but then an appeals court tosses out the conviction, this case could well undermine faith in our democracy and the rule of law.” In his desperation to prevent Trump from reoccupying the White House, Bragg has already accomplished that.

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Lily Allen says she had her children for ‘all the wrong reasons’

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Lily Allen says she had her children for 'all the wrong reasons'

Lily Allen says she had her children “for all the wrong reasons,” at a “high pressure” point in her career when she felt “overwhelmed”.

The singer and actress had her two daughters, Marnie, 12 and Ethel, 11, with her ex-husband Sam Cooper when she was in her mid-20s.

By the time she became a mum, she’d already had hit singles including Smile and The Fear, released two studio albums and received a Brit Award for best British female solo artist.

Speaking about motherhood on the BBC podcast Miss Me?, which Allen hosts with her long-time friend Miquita Oliver, she said: “I think I had children for all the wrong reasons, really.

“Because I was yearning for unconditional love, which I haven’t felt in my life since I was a child.”

The now 39-year-old star added: “And also, my career was at such high speed, high pressure, and I felt like very overwhelmed by what was happening. I just didn’t get much respite you know?

“And I felt like the only way to stop people hassling me was to say, ‘It’s not about me, actually this is about this other person that’s inside me’.

When asked by Oliver if it worked, Allen says: “Yeah, they did leave me alone. I don’t think I really understood what was happening, what I got myself into.”

The daughter of actor Keith Allen and film producer Alison Owen, she went on to discuss her own childhood.

“My mum, bless her, had children really early as well, and she really struggled. But she doesn’t really talk about the struggle. And so… She inadvertently gaslit me into thinking it was, you know, easy.

“You just sort of throw the kid over your shoulder and you get on with it.

“Her job was very static, and in one place and went to an office and mine wasn’t like that at all. It wasn’t easy. It just wasn’t easy.”

Lily Allen is married to Stranger Things star David Harbour
Image:
Allen is married to Stranger Things star David Harbour

The ‘nasty scars’ caused by absent parents

Allen previously told the Radio Times podcast that while she loves her children, having them “ruined her career”.

She said her decision to prioritise them over her pop career was a decision she made so as not to inflict the “nasty scars” of being an “absent” parent onto them.

She also said the myth of having it all “really annoyed” as it simply was not true.

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Allen, whose younger brother is Game Of Thrones actor Alfie Allen, married Stranger Things star David Harbour in 2020.

Away from her music career, Allen has branched out into acting over the last few years, starring in two plays in London’s West End, and winning a role in Sky drama Dreamland last year.

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Environment

JB Hunt launches first electric aftermarket semi truck route in Arizona

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JB Hunt launches first electric aftermarket semi truck route in Arizona

Following successful inbound implementations in the Pacific Northwest, North Carolina, and Mexico, Daimler Trucks North America (DTNA) is expanding the reach of its electric semi fleet into Arizona with long-time associate JB Hunt.

JB Hunt will add the new Freightliner eCascadia electric semi to its Arizona fleet immediately, and put it to work delivering aftermarket truck parts from DTNA’s parts distribution center (PDC) in Phoenix to multiple DTNA dealers along a dedicated route.

The electric Freightliner truck is expected to cover approximately 100 miles in a given day before heading “home” to a Detroit eFill charger installed at Daimler’s Phoenix facility.

This milestone marks the first all-electric route in the DTNA aftermarket parts distribution network, significantly reducing carbon emissions and setting a precedent for future sustainable outbound logistics operations.

“This solution with DTNA is a great example of our commitment to supporting customers’ efforts to reduce their carbon footprint and work towards energy transition,” explains Greer Woodruff, executive vice president of safety, sustainability and maintenance at JB Hunt. “JB Hunt owns and operates several eCascadias on behalf of customers, and our drivers have really enjoyed their in-cab experience. As customer interest continues to grow, we are here to enable their pursuit for a more sustainable supply chain in the most economic means possible.”

Daimler is analyzing future expansion opportunities throughout its internal parts distribution and logistics with an eye on electrifing additional routes and further reducing the carbon footprint of its logistics operations.

JB Hunt will evaluate its utilization of the charging station for other customers in the area, eventually enabling fully integrated zero-emission vehicle solutions into its 3PL fleets.

SOURCE | IMAGES: Daimler Trucks North America.

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Intel’s wild week leaves Wall Street more uncertain than ever about chipmaker’s future

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Intel's wild week leaves Wall Street more uncertain than ever about chipmaker's future

Intel CEO Patrick Gelsinger speaks at the Intel Ocotillo Campus in Chandler, Arizona, on March 20, 2024. 

Brendan Smialowski | AFP | Getty Images

It was quite a week for Intel.

The chipmaker, which has lost over half its value this year and last month had its worst day on the market in 50 years after a disappointing earnings report, started the week on Monday by announcing that it’s separating its manufacturing division from the core business of designing and selling computer processors.

And late Friday, CNBC confirmed that Qualcomm has recently approached Intel about a takeover in what would be one of the biggest tech deals ever. It’s not clear if Intel has engaged in conversations with Qualcomm, and representatives from both companies declined to comment. The Wall Street Journal was first to report on the matter.

The stock rose 11% for the week, its best performance since November.

The rally provides little relief to CEO Pat Gelsinger, who has had a tough run since taking the helm in 2021. The 56-year-old company lost its long-held title of world’s biggest chipmaker and has gotten trounced in artificial intelligence chips by Nvidia, which is now valued at almost $3 trillion, or more than 30 times Intel’s market cap of just over $90 billion. Intel said in August that it’s cutting 15,000 jobs, or more than 15% of its workforce.

But Gelsinger is still calling the shots and, for now, he says Intel is pushing forward as an independent company with no plans to spin off the foundry. In a memo to employees on Monday, he said the two halves are “better together,” though the company is setting up a separate internal unit for the foundry, with its own board of directors and governance structure and the potential to raise outside capital.

Intel CEO Pat Gelsinger speaks while showing silicon wafers during an event called AI Everywhere in New York, Thursday, Dec. 14, 2023.

Seth Wenig | AP

For the company that put the silicon in Silicon Valley, the road to revival isn’t getting any smoother. By forging ahead as one company, Intel has to two clear two gigantic hurdles at once: Spend more than $100 billion through 2029 to build chip factories in four different states, while simultaneously gaining a foothold in the AI boom that’s defining the future of technology.

Intel expects to spend roughly $25 billion this year and $21.5 billion next year on its foundries in hopes that becoming a domestic manufacturer will convince U.S. chipmakers to onshore their production rather than relying on Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung.

That prospect would be more palatable to Wall Street if Intel’s core business was at the top of its game. But while Intel still makes the majority of processors at the heart of PCs, laptops, and servers, it’s losing market share to Advanced Micro Devices and reporting revenue declines that threaten its cash flow.

‘Next phase of this foundry journey’

With challenges mounting, the board met last weekend to discuss the company’s strategy.

Monday’s announcement on the new governance structure for the foundry business served as an opening salvo meant to convince investor that serious changes are underway as the company prepares to launch its manufacturing process, called 18A, next year. Intel said it has seven products in development and that it landed a giant customer, announcing that Amazon would use its foundry to produce a networking chip.

“It was very important to say we’re moving to the next phase of this foundry journey,” Gelsinger told CNBC’s Jon Fortt in an interview. “As we move to this next phase, it’s much more about building efficiency into that and making sure that we have good shareholder return for those significant investments.”

Still, Gelsinger’s foundry bet will take years to pay off. Intel said in the memo that it didn’t expect meaningful sales from external customers until 2027. And the company will also pause its fabrication efforts in Poland and Germany “by approximately two years based on anticipated market demand,” while pulling back on its plans for its Malaysian factory. 

TSMC is the giant in the chip fab world, manufacturing for companies including Nvidia, Apple and Qualcomm. Its technology allows fabless companies — those that outsource manufacturing — to make more powerful and efficient chips than what’s currently possible at volume inside Intel’s factories. Even Intel uses TSMC for some of its high-end PC processors.

Intel hasn’t announced a significant traditional American semiconductor customer for its foundry, but Gelsinger said to stay tuned.

“Some customers are reluctant to give their names because of the competitive dynamics,” Gelsinger told Fortt. “But we’ve seen a large uptick in the amount of customer pipeline activity we have underway.”

Prior to the Amazon announcement, Microsoft said earlier this year it would use Intel Foundry to produce custom chips for its cloud services, an agreement that could be worth $15 billion to Intel. Microsoft CEO Satya Nadella said in February that it would use Intel to produce a chip, but didn’t provide details. Intel has also signed up MediaTek, which primarily makes lower-end chips for mobile phones.

U.S. President Joe Biden listens to Intel CEO Pat Gelsinger as he attends the groundbreaking of the new Intel semiconductor manufacturing facility in New Albany, Ohio, U.S., September 9, 2022.

Joshua Roberts | Reuters

Backed by the government

Intel’s biggest champion at the moment is the U.S. government, whish is pushing hard to secure U.S.-based chip supply and limit the country’s reliance on Taiwan.

Intel said this week that it received $3 billion to build chips for the military and intelligence agencies in a specialized facility called a “secure enclave.” The program is classified, so Intel didn’t share specifics. Gelsinger also recently met with Commerce Secretary Gina Raimondo, who is loudly promoting Intel’s future role in chip production.

Earlier this year, Intel was awarded up to $8.5 billion in CHIPS Act funding from the Biden administration and could receive an additional $11 billion in loans from the legislation, which was passed in 2022. None of the funds have been distributed yet. 

“At the end of the day, I think what policymakers want is for there to be a thriving American semiconductor industry in America,” said Anthony Rapa, a partner at law firm Blank Rome who focuses on international trade.

For now, Intel’s biggest foundry customer is itself. The company started reporting the division’s finances this year. For the latest quarter, which ended in June, it had an operating loss of $2.8 billion on revenue of $4.3 billion. Only $77 million in revenue came from external customers.

Intel has a goal of $15 billion in external foundry revenue by 2030.

While this week’s announcement was viewed by some analysts as the first step to a sale or spinoff, Gelsinger said that it was partially intended to help win new customers that may be concerned about their intellectual property leaking out of the foundry and into Intel’s other business.

“Intel believes that this will provide external foundry customers/suppliers with clearer separation,” JPMorgan Chase analysts, who have the equivalent of a sell rating on the stock, wrote in a report. “We believe this could ultimately lead to a spin out of the business over the next few years.”

No matter what happens on that side of the house, Intel has to find a fix for its main business of Core PC chips and Xeon server chips.

Intel’s client computing group — the PC chip division — reported about a 25% drop in revenue from its peak in 2020 to last year. The data center division is down 40% over that stretch. Server chip volume decreased 37% in 2023, while the cost to produce a server product rose.

Intel has added AI bits to its processors as part of a push for new PC sales. But it still lacks a strong AI chip competitor to Nvidia’s GPUs, which are dominating the data center market. The Futurum Group’s Daniel Newman estimates that Intel’s Gaudi 3 AI accelerator only contributed about $500 million to the company’s sales over the last year, compared with Nvidia’s $47.5 billion in data center sales in its latest fiscal year.

Newman is asking the same question as many Intel investors about where the company goes from here.

“If you pull these two things apart, you go, ‘Well, what are they best at anymore? Do they have the best process? Do they have the best design?'” he said. “I think part of what made them strong was that they did it all.”

— CNBC’s Rohan Goswami contributed to this report

WATCH: CNBC’s full interview with Intel CEO Pat Gelsinger

Watch CNBC's full interview with Intel CEO Pat Gelsinger

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