Weekend Law: Elections, Pardons & Endangered Species

24 Jul 2026 · 38 min · 7 chapters

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In short

Episode topic: Three legal/policy stories—(1) New Jersey’s DMV software error that improperly registered non-citizens to vote and the federal response; (2) the Trump administration’s rescission of the Endangered Species Act “harm rule” and resulting lawsuits; (3) President Trump’s clemency/pardon spree, including unprecedented pardons for companies.

Guests

Jonathan Diaz, Director of Voting Advocacy and Partnerships at the Campaign Legal Center. Pat Parenteau, professor at Vermont Law and Graduate School. Ava Benny Morrison, Bloomberg legal reporter.

Key claims

New Jersey’s error registered about 6,600 non-citizens; about 400 allegedly voted, but that’s 0.009% of 2024 NJ ballots and “doesn’t justify” draconian federal registration changes. DHS claims (e.g., 250,000 non-citizens across four states) are criticized as methodologically unclear and possibly inflated; Mullen threatened state officials with fines/penalties/prison. The “harm rule” rescission removes habitat-protection safeguards without a replacement and skips required consultation/NEPA steps; lawsuits seek injunctions and may challenge Sweet Home v. Babbitt. Trump’s clemency includes company pardons (e.g., BitMEX/HDR Global Trading) wiping ~$200M in penalties; critics cite optics and legality debates.

Notable examples

NJ DMV glitch; DHS letters and Mullen threats; monarch habitat context; Earthjustice litigation; BitMEX $100M fine; Aussie Media commutation ($96M penalties); Diesel Freak/“Ryan Lalonde” emissions-control tampering pardons.

Written by AI. May contain mistakes. Listen to the episode to check what was said.

Chapters

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New Jersey's Voter Registration Error Explained

1:00 to 1:12

Discussion on the New Jersey software error affecting voter registration.

New Jersey's Voter Registration Error Explained

1:16 to 12:45

Discussion on the New Jersey software error affecting voter registration.

“This is Bloomberg Law with June Grosso from Bloomberg Radio.”

Decline of Monarch Butterflies and Environmental Laws

14:48 to 27:24

An expert discusses the alarming decline of monarch populations and the implications of the Trump administration's changes to the Endangered Species Act.

“It's really quite troubling to see that monarch populations are declining.”

Decline of Monarch Butterflies and Environmental Laws

28:36 to 28:59

An expert discusses the alarming decline of monarch populations and the implications of the Trump administration's changes to the Endangered Species Act.

“Because to us, owning a home in your 30s, working in tech without the traffic, and still being able to make it to your kid's soccer game sounds pretty good.”

Trump's Unprecedented Pardons

29:36 to 41:22

Explore the implications of President Trump's pardons and clemency grants.

“Just hours after his inauguration, President Trump granted full pardons to 1 ,500 people convicted of storming the Capitol on January 6th.”

Conclusion and Further Information

41:22 to 42:02

Wrap-up of the episode and ways to stay updated on legal news.

“Trump certainly set the pace on the first day of his term when he issued mass pardons to people charged in connection with the January 6th riots on Capitol Hill.”

Conclusion and Further Information

42:19 to 42:45

Wrap-up of the episode and ways to stay updated on legal news.

“And that's it for this edition of the Bloomberg Law Show.”
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Transcript

Automatic transcript. May contain errors.

0:00So there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now, a global workforce of 300 ,000 can use AI to fill their HR questions, resolving 94 % of common questions. Not noise. Proof of how we can help companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business. IBM. Some people like working twice as hard just to stay right where they are. And in Ohio, we really don't get it. Because to us, owning a home in your 30s, working in tech without the traffic, and still being able to make it to your kid's soccer game, sounds pretty good.

0:48In fact, Ohio is the second most affordable state to buy a home. Your move. Learn more at yourmoveohio.com If your best finance people are doing expense reports, chasing receipts, or spending time on month-end close, it's time to get Brex AF, a gentic finance that eliminates that work before it starts. Learn more at brex.com slash AF. This is Bloomberg Law with June Grosso from Bloomberg Radio. A serious software error in New Jersey's motor vehicle system led to the improper voter registration of what we believe to be roughly 6 ,600 people in our state. New Jersey Governor Mickey Sherrill blamed a software glitch for the state mistakenly adding 6 ,600 non-citizens to its voter rolls, leading to around 400 of them improperly voting since 2023.

1:52Although Sherrill said there's no evidence those votes swayed the outcome of any election. Still, President Trump seized on the disclosure to support his unproven claims of widespread voter fraud and the need to pass the Save America Act. And Homeland Security Secretary Mark Wayne Mullen says DHS has identified hundreds of thousands of non-citizens on voter rolls in four states. We've identified 250 ,000 non-citizens registered to vote in California and Pennsylvania, New Jersey and Nevada. And Mullen went further, threatening state officials who don't go along with the administration's election security demands.

2:42If the election officials, once we gave them the information they need to secure their elections, and they chose not to, then those individuals can also be held accountable by fines, by penalties, and even, depending on how far it goes, prison time. My guest is Jonathan Diaz, Director of Voting Advocacy and Partnerships at the Campaign Legal Center. Jonathan, explain what happened in New Jersey. So it appears that there was some sort of technological error in New Jersey's DMV system where about 6 ,000 or so individuals who correctly identified themselves as non-citizens, you know, they weren't trying to register to vote, nevertheless were erroneously registered.

3:28New Jersey's election officials and governor made this announcement. They identified this problem. They've directed officials to remove them from the rolls. They are fixing the glitch in their driver's license system. And this is, I think, an example of how the system is supposed to work. The state and local officials who are responsible for overseeing voter registration identified a problem, made it clear to the public, and announced steps to mitigate the problem. You know, they don't need the federal government to step in and do it for them. But that does mean that as many as 400 non-citizens ended up voting illegally.

4:05So I think it's important to remember that more than 4.1 million ballots were cast in New Jersey in 2024. So that number, you know, even if it was 400 in total, that's less than 1 % of 1%. It's 0.009 % of the total votes cast in New Jersey in 2024. which is nowhere near affecting the outcome of any federal election that took place in New Jersey in that year. Trump and other Republicans are using this to boost claims of widespread voter fraud and the need for the SAVE Act. There's nothing in any of the proposals that the federal government has put forward that would have addressed this scenario.

4:51This was a simple case of human error, of technological error. Somebody misprogrammed the system. And so, you know, requiring, as the Trump administration wants, requiring voters to provide additional proof of citizenship to show a passport or a birth certificate to register to vote wouldn't have stopped this because these people said that they were not citizens. They weren't trying to register to vote. But, you know, elections are run by people. Sometimes people make mistakes. Sometimes there is a glitch in the system. And, you know, that's why we have safeguards built in to ensure that it can be caught and fixed for the next time.

5:26And even in a scenario like this, where there was a technological problem that did result in some people being erroneously registered, it's not happening anywhere near the numbers on the scale that the president and the White House are suggesting that it is. You know, this is a tiny, tiny, tiny percentage of the votes, so small that it doesn't affect the outcome. And so, you know, in my view, this technological error, which is really all that it is, does not justify the kind of draconian restrictions that the Trump administration is proposing for voter registration, because those things, A, wouldn't have solved this problem, and B, would have prevented many more people than this who are eligible from actually registering and voting.

6:12Mark Wayne Mullen, DHS secretary, said that in New Jersey, reviews found 35 ,152 non-citizens registered. The governor said that we've asked them for any evidence of this, where they got that number, who this is. We've received nothing back yet. I don't know where DHS's numbers came from, nor does New Jersey. If you look at the numbers, Secretary Mullen released, and you compare not just these New Jersey numbers, but, you know, DHS and the White House released data about a number of states who have voluntarily shared their data with the federal government. And the White House and DHS's numbers for states like Texas and Louisiana are incredibly inflated compared to what those states themselves are reporting.

7:01And Texas reported lower numbers than the White House did about, you know, suspected non-citizens on their roles, and then had to backtrack because they had wrongfully identified naturalized citizens as being ineligible. So whenever a federal or state agency makes, you know, inflated claims about huge numbers in the tens of thousands of, you know, ineligible registrants, I think we have to look at those with some skepticism because almost inevitably they get walked back. And especially in the case of DHS, there's just nothing that they have given us in terms of where they got their data, what methodology they used.

7:40We don't know where those numbers came from. They could have pulled them out of a hat. So if we're going to take those numbers seriously, I think we need a lot more information from DHS about how they came up with them. Do you think this disclosure by New Jersey has any connection to the Trump administration's recent push? You know, the announcement from New Jersey's governor seems to me to be completely unrelated from what DOJ sent them. This was their own investigation into their own system, which every state is doing all the time. And I think that's the key takeaway here is that state governments who are the ones legally responsible for running our elections are constantly going through their voter registration rules and their election systems to fix errors and to make sure that they are as accurate as is humanly possible.

8:25And what they don't need is wild accusations from the federal government based on no evidence that they're doing it wrong. You know, I think this incident in New Jersey shows that states are more than capable of maintaining clean voter rolls and addressing the problems as they arise. Because, you know, we have a very complicated election system and it's totally decentralized. It's run by states and in most important ways by counties and municipalities. You know, one of the things that makes it so resilient is that we don't have a single national election infrastructure that could be compromised or, you know, have some problem with it that would affect everybody.

9:04Are you concerned that if the Trump administration doesn't like the results in New Jersey in the midterms, that they'll use this disclosure to try to attack those results? I'm sure that no matter what New Jersey officials say or do, that the Trump administration is going to point to this incident and claim that New Jersey's results can't be trusted. But that's why New Jersey, like every state, has audits and recounts and hand-marked paper ballots that can be checked after the fact. And, you know, that's why they're making this announcement now and removing these ineligible individuals from the rolls so that this can't happen again in November.

9:44But regardless of what New Jersey does, I expect the White House to use this as ammunition, not just in any claims that they make about the results in November, but also in their push to pass the Save America Act and to enable federal agencies to have a bigger role or take control of certain election administration functions, despite their lack of legal authority to do that. DHS Secretary Mullen has made threats against election officials. But what exactly is he asking them to do? That's a good question. DHS sent letters to these four states. And those letters were pretty tame. They said, you know, DHS had done an analysis and identified suspected, you know, potential non-citizens on the rolls, reminded the states that, you know, federal law requires them to maintain accurate voter rolls and that non-citizens are prohibited from voting in U.S.

10:35elections. But then otherwise just kind of said, you know, DHS is ready to help you if you need it. The letters were very, very tame. His remarks on Friday were not. And, you know, in his speech, he did both say that DHS is directing the states to remove all of those individuals from the rolls, which number one, DHS doesn't have the authority to direct states to do anything with their voter rolls. And number two, the states can't just take thousands of people off the rolls because somebody in the federal government tells them to. There is a process that they have to go through under both state and federal laws to verify those claims.

11:10They have to do their due diligence. They have to check. I imagine that the states will. They will take this seriously. But Secretary Mullen also, much like Assistant Attorney General Harmeet Dillon did a couple of weeks ago, threatened election officials and said that they'll be prosecuted if they don't cooperate with the federal government. And I don't think that's an empty threat. I think that this administration is very willing to lean on its criminal enforcement authority and go after election officials if they don't go along with the administration's policy priorities when it comes to elections.

11:45Fortunately, I don't think that those charges would hold up. And election officials have very good counsel kind of across the board, have litigated against a lot of them. They know what they're doing. But it is alarming when senior officials in the federal government are threatening state and local election officials with criminal prosecution. You know, it's almost like it's like watching a mob movie to do what we want or else. And that's just not the relationship that we have seen between the federal government and the states in the past when it comes to elections. And the federal government typically provides resources and support and assistance to state and local election officials in carrying out their responsibilities.

12:22But this kind of aggressive posture towards election officials is really something new. But election officials have the winning record in federal court against the Trump administration over the administration's quest to get unredacted voter rolls. I believe the states are 16-0. Thanks so much for joining me, Jonathan. That's Jonathan Diaz of the Campaign Legal Center. Coming up next on the Bloomberg Law Show, the Trump administration is gutting the Endangered Species Act, and environmental groups are taking them to court. I'm June Grosso, and you're listening to Bloomberg. This is Tony Ayo from The Real Report with Tony Ayo and Uncle Murda.

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14:20In fact, Ohio is the second most affordable state to buy a home. Your move. Learn more at yourmoveohio.com. If your best finance people are doing expense reports, chasing receipts, or spending time on month-end clothes? It's time to get Brex AF, a gentic finance that eliminates that work before it starts. Learn more at brex.com slash AF. It's really quite troubling to see that monarch populations are declining. And if there aren't enough flowers to feed monarchs, imagine all of the lesser-known pollinators that aren't getting the things that they need. The iconic orange and black monarch butterfly is one of the most recognizable species but 80 percent of the butterflies have been wiped out since the 1990s.

15:10It's because of the destruction of their habitat, the main reason that species become extinct. By helping monarchs and restoring this diverse native habitat that's pesticide-free, we can really help a whole suite of other species. But now the Trump administration has decided that destroying the habitats of endangered species is not harmful. It's rescinded the so-called harm rule, a 50-year-old rule that's protected endangered wildlife from losing millions of acres of habitat. Thirteen environmental groups are suing the administration in federal courts in California and Washington state, challenging the decision that allows developers and private landowners to destroy the habitat of endangered species without it being considered harm to the species.

16:02Joining me is an expert in environmental law, Pat Parenteau, a professor at the Vermont Law and Graduate School. Pat, start by explaining what the Trump administration has done here to the Endangered Species Act. Well, they have just published a final rule rescinding what's called the harm rule under the Endangered Species Act, which has been on the books for over 50 years, was first enacted in 1975 in the Gerald Ford administration. And it's been upheld by the U.S. Supreme Court in 1995 in the case Sweet Home versus Babbitt. So now the Trump administration is saying, forget about all that. We hereby rescind the harm rule.

16:50And oh, by the way, we're not going to propose a replacement. We're just going to say we don't need a harm rule at all. We don't need to define the word harm, which is in the statute. We don't even need to do that. So we're just going to repeal it. We're not going to comply with NEPA. We're not going to do an environmental impact statement. We're not going to comply with the Endangered Species Act itself, which requires consultation before you take an action like this and produce what's called a biological opinion to demonstrate that the action that you're taking will not jeopardize endangered species or result in the adverse modification of their critical habitat.

17:36So it's crazy on stilts what we're talking about. You can boil it down to this. The Trump administration has hereby decreed that destroying the habitat of endangered species is not harmful. The administration said this move would reduce permitting and compliance costs for farmers, landowners, and energy producers. Right. Without producing real data to show that this rule is responsible for, I guess you would call it unreasonable costs. I mean, it's certainly true that every law that Congress enacts is going to impose certain obligations on people that will in turn require the expenditure of some money.

18:24That's what regulation is all about. The money being spent is for a good purpose, a public purpose, right? You can argue about how important saving endangered species is. If you ask the American people, they will tell you it's really important. That has been a consistent polling result over the life of the Endangered Species Act from 1973 to today. The amount of public support for this law is in the 90 % range. So yeah, does compliance with laws require money? Sure they do. And the loss of habitat causes more species to go extinct than any other single factor? Yes, it is the leading cause of species extinction in the U.S.

19:12and globally. The other thing about it is the Endangered Species Act is all about habitat. I mean, the very stated purpose of the law is to conserve the ecosystems upon which these species depend. So right from the get-go in 1973, this is really kind of amazing for Congress to be this ecologically literate in 1973. They were talking about ecosystems. They were talking about habitat. That was the whole point of the law. Congress recognized that loss of habitat was driving species to extinction. And unless it was both stopped or arrested and mitigated, more and more of the species would go extinct.

19:57Tell us about the basis of the lawsuits by the environmental groups over the rescission of this rule. Multiple grounds. They start by saying the Sweet Home decision in 1995 is still the law of the land. It has not been overturned. The Trump administration is clearly aiming to get this issue back in front of the Supreme Court in their hope that the Supreme Court will reverse its decision in Sweet Home and basically adopt the dissent in Sweet Home written by the late Justice Antonin Scalia. Leah, you know, there's an echo here because this is the same strategy that Lee Zeldin is pursuing under the Clean Air Act to repeal the endangerment finding.

20:45Once again, EPA, the Trump administration, is saying the Supreme Court got it wrong in Massachusetts versus EPA. We don't have authority to regulate greenhouse gases, and we're going to get that issue back in front of the court so they can overturn Mass versus EPA. Same thing is happening here with the harm rule. They want to get this case back to the court in the hopes that they can get a decision overturning the Sweet Home decision. The reason they believe they have a shot at this, of course, is because the Supreme Court has now overturned the Chevron doctrine with deference to agency interpretations.

21:24If Sweet Home was based on Chevron, which the court has eliminated, and you also have a Supreme Court that just last term reversed two longstanding precedents, do you have any confidence that the court will respect the precedent of Sweet Home and uphold the harm rule? Well, we know, of course, that the court will do what the court will do with five votes. I think this one will be a closer call. I don't rule out, of course, the prospect or the danger that the Supreme Court might do what Trump is asking it to do. You can't rule that out. But here's the thing. Justice Roberts, in the Loper-Bright case, which overturned the Chevron Doctrine, said very clearly, our overturning Chevron does not mean that prior decisions of this court that relied on Chevron are not still the law.

22:23They are still the law, unless and until, of course, the Supreme Court changes the law. So the argument that Loper Bright automatically means Trump wins is wrong. It's just flat wrong on the face of the Loper Bright decision. It's certainly true that if this case gets to the Supreme Court, there's a risk that it'll do the wrong thing from the standpoint of protecting endangered species. I would be naive to the extreme to think that, you know, the Supreme Court is bleeding over the fate of endangered species. But on the other hand, this principle, which is called statutory stare decisis, When the Supreme Court has said that a statute means something specifically, that is a strong precedent.

23:12So it doesn't get overruled with the snap of a finger or the fact that there's a new administration in town who doesn't like the prior ruling. So that's not enough to get that victory that Trump is hoping for in this case. I'll ask you the question I usually ask you, which is, so let's say that there's a Democratic administration that comes in next. and overturns the overturning of the harm rule. How much damage can be done in the remaining two years of the Trump administration if there's not an injunction put in place? Yeah, well, there is going to be a request for a preliminary injunction and maybe even a temporary restraining order right out of the box.

23:54The Earth Justice is handling one of the major cases, and that's the most formidable environmental litigating group in the country. They will leave no stone unturned. So the problem is by saying that the harm rule is no longer in effect, that influences all kinds of activities that are ongoing. It means that the Forest Service now, you know, the Trump administration wants to ramp up timber harvest in the habitat of many endangered species, spotted owls, marble murailettes. You go down the list, a whole bunch. So what happens now in that context of when agencies still have the obligation to ensure that their actions do not result in jeopardy or adverse modification of critical habitat?

24:39If the Fish and Wildlife Service and NOAA, with regard to marine species, if they are no longer engaged in analyzing whether the destruction of the habitat is going to result in harm to the species, that's going to affect a lot of the decision making that multiple agencies are doing. The Fish and Wildlife Service won't be providing them with the kind of biological information they need to meet the demand of the Endangered Species Act. So they'll be subject to more litigation over that. Now, the Trump administration doesn't really care about that. They're happy to see chaos in litigation. That seems to make their day.

25:19But the regulated community is not going to be happy about that. Timber companies that are relying on Forest Service decisions or BLM decisions for grazing or mining or any number of things. You know, if you start tearing out the foundation of how the Endangered Species Act is supposed to work, including looking at the effects of habitat loss, you're going to destabilize the whole regulatory framework. So some of this is being laid out already. I've seen it in the complaint that Earth Justice has filed. They've called out specific projects that will be affected by this decision right now, today.

25:59I predict we will see a motion for at least a preliminary injunction very soon. And Pat, factor into all this that a recent poll shows that 84 percent of Americans support the Endangered Species Act. I think in time you're going to see more and more, maybe backlash is the word, I don't know, more reaction from the public over this. And communities that have seen the value of the restoration of endangered species. If you think about the wolf reintroduction or the fact that the grizzly bear population has improved, whether it's been fully recovered is another question. But they certainly have improved.

26:39And what has that created? It's created a really robust ecotourism industry, if you will, recreation based. Those gateway communities around Yellowstone are there to see the wolves. And that's money in the pocket of local businesses, local communities and schools and all the rest. So it's not true that restoring endangered species, you know, is a cost without taking account of the benefits that it creates. So I don't think you can make a case, frankly, that the investment in recovering these species isn't worth it. Quite the contrary. We'll watch to see if the environmental groups get a preliminary injunction here.

27:20Thanks so much, Pat. That's Professor Pat Parenteau of the Vermont Law and Graduate School. Coming up next, President Trump is pardoning companies like a 17th century English king. I'm June Grosso and this is Bloomberg. This is Tony Ayo from The Real Report with Tony Ayo and Uncle Murda. You ever notice how everything keeps going up? Rent's going up. Streaming services are going up. Even your favorite burrito spot suddenly thinks salsa should cost extra. But with Boost Mobile, you and your phone bill don't have to play the will it go up soon game because Boost Mobile has an unlimited talk, text and data plan at a price that'll never go up.

27:55It's the same price you'll pay for life, meaning you're set to never worry about your bill increasing again for as long as you're on the plan. While the world keeps finding new ways to nickel and dime you, Boost Mobile gives you unlimited wireless at one set price for life. Imagine something in your budget actually staying the same. You'll pay the same for unlimited wireless when you're posting mirror selfies in your 20s and when you're posting mirror selfies in retirement. Some things never change. Switch now for unlimited wireless at a price that will never go up. Only at Boost Mobile. After 30 gigabytes, customers may experience slower speeds.

28:28Customers will pay$25 a month as long as they remain active on a Boost Unlimited plan. Some people like working twice as hard just to stay right where they are. And in Ohio, we really don't get it. Because to us, owning a home in your 30s, working in tech without the traffic, and still being able to make it to your kid's soccer game sounds pretty good. In fact, Ohio is the second most affordable state to buy a home. Your move. Learn more at yourmoveohio.com.

Read the full transcript

29:05Ask yourself, what are your best people spending their time on right now? Expense reports, receipt chasing, month-end close that takes weeks. You become what you spend on, and that's not what you're building toward. Brex is the intelligent finance platform that eliminates that work before it starts. AI agents that handle the manual stuff automatically, so your team can spend their time on what actually compounds. It's time to get Brex AF. Learn more at brex.com slash AF. So this is January 6th. These are the hostages. Approximately 1 ,500 for a pardon. Yes. Full pardon. Just hours after his inauguration, President Trump granted full pardons to 1 ,500 people convicted of storming the Capitol on January 6th.

29:56I see murderers in this country get two years, one year, and maybe no time. So they've already been in jail for a long time. These people have been destroyed. And his pardon spree hasn't slowed down. Trump has granted clemency to almost 1 ,700 people in the past 18 months, far outpacing his predecessors and often benefiting allies, donors and loyalists. And Trump has taken a step no other president has taken. He's granting pardons to companies. The precedent for this? Apparently, it's English king Charles II pardoning a company more than 300 years ago. And Trump's grants of clemency to nine companies have wiped out about$200 million in financial penalties, some of which would have gone to victims of crime.

30:48Joining me is Bloomberg legal reporter Ava Benny Morrison. Ava, Trump is the first president to pardon companies. And with a flourish on July 3rd, he pardoned nine men and half a dozen auto businesses. That's right. What's particularly unusual about the most recent state of pardons is it included pardons for companies. Each of these auto parts suppliers, their companies were prosecuted as well for this conduct. And Trump signed a bunch of these clemency grants, which wiped clean the convictions against the companies and the individuals and any outstanding financial penalties for the companies.

31:27And this is the first time a president, certainly in modern times, has used the clemency authority in that way. Is it legal because former President Jimmy Carter considered it before deciding against pardoning a business that had conspired with the mob to buy a Las Vegas casino because there was a disagreement within his administration about whether the Constitution allowed it? It is legal and the White House told us that there is nothing in the Constitution that says pardons can only be for people. But I think in the past, presidents have steered away from it because it's not good from an optics perspective.

32:12I've spoken to a number of academics who've delved into this issue. And one in particular said there is no way a past president would have touched this with a barge pole. It's one thing to pardon someone who you believe is innocent or has rehabilitated or is remorseful, but it's another thing entirely to get rid of criminal liability of major financial crime. So yes, other presidents in modern times had worked with the idea, but no one's actually done it. So to find precedent, they had to go back more than 300 years to England and King Charles II. second. Yes, one of the interesting parts of this reporting process was looking at how this debate even started in the White House after Trump came to power in early 2025.

32:59And we've heard that the parent company of crypto platform BitMEX was discreetly angling for a pardon from President Trump at the time, not only for the individuals who worked there, but for the company itself, which was facing a$100 million fine. And as they were lobbying, the administration advisors at the White House started asking the question, you know, can we even pardon a company? And some advisors there saw precedent in King Charles II of England pardoning a corporation some 300 years ago. And that was included in some of the discussion and consideration that went into eventually pardoning the parent company of BitMEX.

33:40That was the first time that Trump pardoned a company. So tell us about that BitMEX case. The first company pardon that Trump issued in early 2025 was to HDR Global Trading, which is the parent company of crypto platform BitMEX. And BitMEX was in strife for violating anti-money laundering laws. And the company was facing a $100 million fine. BitMEX is an interesting one because one of its co-founders was embracing Trump's softening stance around crypto. The platform was a early launcher of a derivative swap associated with the Trump meme coin. The Trump meme coin has ended up earning the president millions of dollars, as we've seen in some recent reporting.

34:26And the co-founder, Arthur Hayes, wrote a essay that was widely read by those in the industry, you know, calling Trump's embrace of mean coins, framing it as a move towards political accountability. And he'd also, in early 2025, he'd been spotted at Mar-a-Lago at an event there talking about the need for crypto deregulation. And with the pardon of BitMEX, a$100 million fine was wiped out. And in the last 18 months, Trump's grants of clemency have wiped out about$200 million in financial penalties, which could have gone to victims of crime. Yes, and that's a mix of restitution, forfeiture, financial penalties, much of which would have been available through different avenues to victims of crime, particularly the restitution and the forfeiture.

35:16And something that's particularly unique about Trump's commutations is that they have also wiped out outstanding financial penalties. So we saw that in the case involving media startup Aussie Media, that company and its founder, Carlos Watson, were on the hook for about$96 million in financial penalties. And Trump commuted the sentence of both Watson and the company and included in that language of that commutation was that this applies to any outstanding penalties. And we just haven't seen that under previous presidencies. And Carlos Watson really worked this to get it before Trump and in the way he wanted so that his company would be pardoned as well.

36:00Yes, Watson was really working the phones in the lead up to the date that he was meant to begin his 10 year prison sentence. And he was reaching out to anyone and everyone that he thought could help push his case for clemency. We know that he thought it was possible that he could get a pardon for Aussie media and not just himself. And in these conversations where he's talking to people to try and get them on board with his clemency push, again and again, he's reiterating, Aussie and me, Aussie and me, the clemency needs to be for both himself and the company. Also in his arguments to the administration about why he deserved clemency, he framed the prosecution of his company as just an extra push by the Justice Department to crush everything that he believed in.

36:44Those arguments obviously resonated with the White House and President Trump issued a commutation for Watson and Aussie media on the morning he was due to report to prison. Are the clemency applicants going through the normal process through the Justice Department's office of the pardon attorney or are they going around the office and straight to the White House? These company pardons in particular, it's been a bit of a mix. We can tell from the Pardon Attorney Office website that BitMEX, for example, didn't apply through the formal channels for a pardon. But the nine diesel mechanics who received pardons, their name pops up in the database.

37:26And that shows us that they at least went through one of the traditional channels in applying for a pardon, which is coming up with an application and filing a bunch of supporting material to the DOJ. So it's definitely been a bit of a mix, which is a pattern that we've also seen with a number of these high profile individual clemencies. And it's a new little business of lawyers and lobbyists with connections who work to try to get these pardons through. Absolutely. One unique thing we've seen pop up during this Trump administration is this industry of lawyers and lobbyists and consultants and fixers who hold themselves out as having connections and access to people that matter in the White House.

38:10And they're marketing those connections to onboard clients who want clemency, saying, I can get your case in front of the decision makers, in front of the people that matter. But that representation is coming with extraordinary fees. You know, we've heard stories of some lawyers charging at a base level a million dollars. And there are plenty of rumors about the figures being much higher than that. And talking about rumors and word of mouth among those seeking clemency, tell us about Ryan Lalonde, who was one of those who got the July 3rd pardons, where President Trump said they were persecuted by the Biden administration for fixing their cars.

38:52Yes, that's one way to put it. Ryan Lalonde is a auto parts dealer from Michigan and he was charged a few years ago with tampering with emissions controls devices on vehicles. So these controls, you need to have them on trucks, especially ambulance vehicles, school buses, and it's meant to control the amount of emissions that go out of the vehicle and into the air. People in the trucking industry say that they are really cumbersome and they break down a lot and that leads to them having to carry out costly repairs. Of course, environmental advocates don't see it that way. And they say, you know, when you don't have these, it leads to greater air pollution.

39:34So Ryan, along with many other mechanics around the country, had helped a number of heavy vehicle owners tamper with these controls, essentially. So turning them off in a certain way. And he was charged over this behaviour a few years ago. His business, his company, Diesel Freak, was also charged. And together, they were facing a fine of about$750 ,000. He pleaded guilty, but he always maintained that he didn't do anything wrong. And he was sentenced to probation. And then at the end of last year, he heard about President Donald Trump pardoning a fellow diesel mechanic in Wyoming, Corry Lake. And like Ryan, he had a company that worked on diesel engines, and he was also charged for carrying out similar behavior and Trump pardoned him.

40:23And Ryan thought, wow, you know, I might have a chance here as well. So Ryan got in contact with Troy. He actually went to his pardon party in Wyoming over the winter and ended up teaming up with the same lawyer and lobbyist who helped push for Troy's clemency. And then a day before July 4 this year, Ryan, along with five other individuals who were charged with similar conduct, all received pardons. And where does Trump stand compared to his predecessors as far as these grants of clemency? Well, we had a close look at how many clemency grants Trump has issued in those 18 months, and he far outstrips any president during that same period.

41:05If we look back at the Biden administration, President Biden issued 4 ,000-odd clemency grants by the end of his term, and that was certainly a record. But no president has issued as many grants as Trump has in the first 18 months of their term. Trump certainly set the pace on the first day of his term when he issued mass pardons to people charged in connection with the January 6th riots on Capitol Hill. So that takes up the bulk of his clemency grants. But aside from that, we have seen him issue pardons and commutations to a number of wealthy, well-connected, well-resourced defendants for white-collar crimes.

41:49Trevor Milton, for example, donated millions of dollars to his political action committees and also supporters of his, political allies of his. It's a great story, Ava. A lot of research went into it. Thanks so much. That's Bloomberg legal reporter Ava Benny Morrison. And that's it for this edition of the Bloomberg Law Show. Remember, you can always Always get the latest legal news by listening to our Bloomberg Law Podcast wherever you get your favorite podcasts. I'm June Grosso. Stay with us. Today's top stories and global business headlines are coming up right now. And that's it for this edition of the Bloomberg Law Show.

42:26Remember, you can always get the latest legal news on our Bloomberg Law Podcast. You can find them on Apple Podcasts, Spotify, and at www.bloomberg.com slash podcast slash law. And remember to tune into the Bloomberg Law Show every weeknight at 10 p.m. Wall Street time. I'm June Grosso, and you're listening to Bloomberg.

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