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CNNW The July 2, 2024



breaking news. welcome to "the lead." i'm jake tapper. we start today with a breaking news, cnn exclusive. the special counsel investigating hunter biden is now using a los angeles grand jury as part of the investigation into the business dealings of president biden's son. that is according to sources that tell cnn that president biden's brother, james biden, is among the people who have gotten a subpoena in recent weeks. this major development comes just as sources tell cnn that a separate special counsel, one raiding the handling of classified documents, is not expected to bring any charges in that case. paula reid is breaking had news for us. walk us how this grand jury in los angeles is being used. >> reporter: jake, multiple source tell cnn that multiple witnesses have been subpoenaed to provide testimony and documents for the investigation into hunter biden's personal finances. one of the individuals that has received one of these subpoenas is his uncle, james biden. this is hunter biden's one-time business associate who could provide information that may be relevant to this investigation. at this point, it appears that they are focused on hunter biden's alleged failure to pay his taxes. now, this was something that was supposed to be resolved by a plea deal that fell apart earlier this year, and at this point it's unclear if they're investigating anything beyond that. some of the alleged tax offenses occurred in southern california, which is why this inquiry, previously not been reported, is significant and signals that the special counsel, david weiss, may be considering bringing additional charges against hunter biden. the special conhas already brought gun charges in delaware, and previously used a grand jury in that state to gather evidence, but the fact they're using this grand jury this california is certainly notable. it signals there could be additional charges. representatives for hunter biden, for the special counsel, for the white house, and james biden, have declined to comment. paula, stick around. i want to bring in katelyn pol polantz, who helped break this story as well an ellie hon ig. >> ago paula was explaining, there was a plea agreement that fell apart. now this signals there could be different charges brought against hunter biden, but his lawyers have been quite clear in the court in delaware, hey, we had a deal, and that deal was you can't charge him with tax crimes elsewhere. we're very likely to see his lawyers argue to the judge in del delaware, he's immune from an indictment, that he can't be charged elsewhere, he can't be charged on financial matters or anything else that the special counsel might be looking into. the other thing it tells us, jake, is we're watching this case in delaware, the federal case move forward. hunter biden's team is incredibly ace gressive. they want to fight the facts, they want to fight the law. they want to claim that donald trump initiated a vindictive prosecution. so whatever they're doing, they'll always be aggressive to fight whatever may other may not come out in this grand jury as well. eli hoenig, how worried should they be? >> there's legitimate cause for concern here for hunter biden and his legal team. an katelyn said, he's already under indictment for fire arms possession why an addict. now he faces the possibility of a second and separate indictment coming out of california, relating to his finances and taxes. on that note, jake, when there was a previous deal in place, they agreed that hunter biden had intentionally agreed to pay over $1.1 million. they can't use that agreement against him, but they presumably had evidence of at least that much of a crime. it can't get worse for hunter biden. it will depending on the outcome of the investigation. but if you're looking at one federal charge, the orders are stacked against them. if it becomes two, that's even much more problems for hunter biden. when it comes to president biden and the classified documents case involving him, the special counsel is not likely to brings charges? >> that's right. we reported several weeks ago it was not looking like anyone would be charged in that investigation. today multiple sources familiar with the probe tell us that charges are not expected to be filed as part of this probe. instead, the special counsel is expected to issue a report that we are told is likely going to be quite detailed. we've had multiple sources in and around this investigation talk about just how thorough hurr has been in this investigation, reaching out to witnesses multiple times, going over issues again and again. we expect this will be a detailed report laying out exactly how they conducted this investigation and what they learned. we also expect it would be critical of president biden and his staff on how they handled these classified materials. it's unclear when the report will go to the justice department, but it appears they're aiming to end this by the end of the year. i can already anticipate what we will hear from -- well, specifically one other network, elie that joe biden is not going to be charged? obviously, the cases are different, elie honig, explain what you think. >> robert hurd was a conservative, nominated to the u.s. attorney in 2017 by donald trump. he's not some liberal or joe biden-leaning prosecutor. second of all, there are differences in these cases based on the indictment in mar-a-lago, and based on the public reporting. starting with knowledge and intent we'll see, but presumably he's found no evidence. donald trump has acknowledged publicly he knew he had the documents. donald trump is charged with object suction now, and the evidence set forth in the indictment is overwhelming. joe biden's team came forward with the documents. they were the ones who brought it to doj. so two big, crucial distinctions there. >> katelyn, what are you watching in that case? >> we're watching a different special counsel than the ones bringing the charges against trump in florida related to classified documents. this special counsel count will release the report. it will have the facts. and also why are they not charging people, they will explain. but they'll give a window into the justice department's thinking on the law. so, whatever they're saying there, that matters because the adjust department has to think through, what do we do about classified documents that are found in the possession of high-level former government officials? and what -- how do we bring a case? how do we choose to bring cases? just having that insight into it will be quite useful as we continue to think about the trump case, as it heads to trial. these reports in this era of special counsel do go into detail on areas of law we just really have never seen the justice department show everything that they're thinking about in the same way whenever we get the reports out of special counsels. elie, the new york appeals court judge temporarily lifted the gag order that had been placed on donald trump and his attorneys in the civil fraud trial the judge in the case imposed a gag order after trump had been attacking the judge's law clerk. what do you make of that? >> well, jake, this is a very narrow gag order. the fact that the court of appeals has put it on hold tells me they're being careful. they're trying to respect his first amendment right to speak. his story has shown that a moment a gag order is suspended, to give him the benefit of the doubt, he immediately goes out and violates it. it's technically not suspended, but i think it would be a terrible look to go back to attacking the judge's staff. i think it's a narrowly crafted and fair gag order. all it does is protect vulnerable people who are just doing their jobs as court clerks. we'll see if donald trump respects the spirit of this gas order. the court of appeals is doing its best to give him a chance to appeal the case and giving hem a chance to -- >> he's still attacking paul pelosi, a victim of a violent assault, that's completely indecent, completely inhuman. likely, if one had to take bets, will go back to attacking the judge's law clerk for being biased, even though it's a preposterous and inhuman thing to do. >> when we've seen gag orders put on hold, he goes out and does stuff he was previously barred from doing. he has a first amendment right. he's also a leading republican candidate for the white house. heads lawyers have categorized anything he says as political speech, insists it deserving a heightened protection, but as the judge in the january 6th case here in washington has said, we can't have defendants attacking people for doing their jobs -- witnesses, court clerks, even prosecutors. they have to do this tricky dance between protecting hills right to criticize the process, speak out about his innocence, but protect people just showing up for work. as the special counsel has argued in their appellate litigation, he has shown a pattern for years and years, long before these cases identifying people, singling them out as adversaries, and then people are targeted by threats and harassment. they have to be able to protect people doing their job, but also allow him to speak out. we'll see what the appellate court -- courts think. the problem is he says these things and it has the desired effect, as we saw from other republicans, talking about how members of congress refused to vote to impeach him, because they were afraid that violence would come their way. we heard that from the book about mitt romney. paula, indicatelyn, elie, thank you very much. coming up. george santos has announced he will bow out. he announced he will not run for reelection, after today's damning report from the ethics committee. that's right, congress has an ethics committee. the report showed he has used stolen campaign funds to splurge on vacations, on botox, on the website onlyfans, often used for pornography -- that's right, he used republican campaign cash to splurge on gay pornography. but another breaking story, the israeli military is releasing what it calls of evidence of a tunnel shaft at a hospital complex. we're going to go live to israrl next.. stay witith us. breaking news in our world lead. the israel defense forces now say they have found an operational tunnel shaft leading to the sprawling complex, or under it, rather. israel's arm just shared this video from the al shifa area, cnn has geolocated the video. the army had announced it found the corpse of one of the hostages previously kidnapped. a 65-year-old, who was kidnapped during the horrific attacks. this is the second known hostage death. meanwhile, new signs that the fight could be moves further south. israel dropped leaflets, warning people to head toward known shelters. jeremy diamond is just north of gaza. let's start with what israel says is new evidence underneath app shi if. a. tell us about that. >> reporter: they say they found a shaft on the ground grounds of the hospital. can you see a hole in the ground that leads to what happens to be a tunnel. cnn can't independently verify this video, but what we have been able to do is geo-locate this video to the al shifa complex. there is indeed a couple buildings we have identified as being part of the al shifa complex, one of the main buildings. the hospital appears about 30 yards away from the hole. they say that underground turn structure below for weeks, the military has laying the groundwork. they have said they operate a large command and control center below the complex. this is the first evidence that israel has put forward that they say points to tunnel infrastructure. the united states, jake, has also backed up israel's claims with president biden saying that hamas does indeed -- that was a fact, and he also accused hamas of committing a war crime by having they underground tunnels below that complex. we know the military recovered weapons. >> they showed up images of munitions and tactical vests, all they say found was inside the hospital. >> i believe they also found the body of the hostage near the hospital as well. it's still not clear how she died. what are you hearing from israeli officials about her death? >> yeah, jake, israeli military announcing they found her body in a building adjacent to the hospital. not on the hospital grounds, but near it, it appears. we don't know exactly where. what we also don't know is exactly how she died. she was a 65-year-old woman who appears to have been kidnapped by hamas, taken into the gaza strip. according to the spokesman for the forces, he said she was murdered by terrorists in the gaza strip. we don't know exactly when that happened. he didn't provide additional details of her death. at least now her family, who's been dealing with so much uncertainty, knows her fate, sadly. jeremy diamond, thanks so much. nic robertson is in sderot. do they believe it's enough proof ♪ >> i don't know if they consider it enough proof i think they feel that it's an indication that there's supposition that their intelligence about what was going on below the hospital has borne some factual reality, if you will. how extensive the tunnels are is unclear. we do know that they put down robots in these tunnel systems. they opened up a hole, and then send the robot off to go search out the tunnels. the very fact that they made such an emphasis that this car full of explosives that they say hamas had been used on october 7th, explosives, weapons, ammunition, they said was filly on top of where that tunnel shaft was. it does seem to indicate that this, for them, an absolute connection between the shaft and hamas. they believe there's a more extensive network. separately israel's military dropped leaflets in southern gaza, warning palestinians to, quote, head toward known shelters. that, of course could indicate a southern ground offensive. would that suggest that the mission is complete in the northern part of gaza? >> reporter: yeah, the idf is indicating they have operational control in the western pasch of gaza city itself, so that may be half of the largest urban center. they're still taking control, but they essential are saying hamas has lost their control of the north. this does seemed to kay they would move south. them they're. they split the strip in two bus having a line of forces in the middle. you know, the difficulty obviously for the idf, and they'll be aware of that as well, it's not essentially a double-density population, because so many people have moved from the north to the south, which puts the civilians in double jeopardy as hamas hides out behind them, and if they come to harm, their welfare will be more in jeopardy, because there's so few hospitals now in gaza strip, in its entirety. so, this would be a much more difficult area for the idf to operate in. we're just learning more about additional patriot missiles, for example. one thing to indicate a growing u.s. presence in the region. >> reporter: this has beefed up, they said a couple weeks ago, also the thaads, that they we were sending in a number. they're saying they're all up and operational. they didn't say where they would be placed. we know that missiles are used to strike at u.s. forces. we know saudi arabia has been part of the protection for israel intercepting long-range missiles and drones out of yemen. saudi arabia has been a recipient and user of u.s. patriot systems in the past. so, i think it just shows you the umbrella of security is being stretched out and we're being told it's operational. up next, inside the scathing house ethics committee report on george santos, the alleged trips he bought. he also used campaign money to buy botox and settle his own credit card debt, and much, much more. stick around. the power goes out and we still have wifi to do our homework. and that's a good thing? great in my book! who are you? no power? no problem. introducing storm-ready wifi. now you can stay reliably connected through power outages with unlimited cellular data and up to 4 hours of battery back-up to keep you online. only from xfinity. home of the xfinity 10g network. no, congressman santos, you can't use campaign funds for botox or for onlyfans. apparently that is advice that needs to be pointed out to members of congress these days. this, after a damning record from the house committee on ethics which laid out a myriad of personal purchases from the congressman where he used campaign funds. more than $3,000 for an airbnb, santos said he was off at the hamptons. a hotel in vegas, when santos said he was on his honeymoon. purchases on onlyfans and sephora, and funds spend at a spa. cnn has diving into the report and loose how santos' excuses have changed over time. hamm. hmm. for the 23 federal charges he's facing -- >> i have no clue what you guys are talking about. >> reporter: now george santos could be expelled from the house. >> george santos is a fraud. he should not be a member of congress. >> reporter: after a bipartisan investigation saying he fraudulently exploited every aspect of his house candidacy for his own personal financial profit. he blatantly stole from the campaign, including travel and botox, even making a payment to onlyfans. also reporting he reported fictitious loans, and sustained it all through a constant series of lies. >> i think the people of his district need representation, and they're not getting that right now. >> reporter: the damning report concludes he knowingly filed false report with the fec, and made willful -- >> the committee chair plans to filed a resolution for santos to be expelled. that would be a decision whether or not they believe it would be proper to expel santos. >> reporter: santos acknowledged making mistakes in his filings. they said you made up your income. what happened? >> all i can say, first, no, that's not true. second, were there mistakes made on the forms? now i know they were. were they malicious? no. i didn't understand how that worked. i'm a new candidate, and i'm sorry that mistakes were made. >> reporter: one of the things they say is there's a $500,000 loan that you made. >> oh, i made it. >> but you had $800,000 in your bank consolidate and they say there's no evidence. >> i can guarantee you i made the financial loans. today blasting the committee, calling the report biased, and a disgusting politicized smear, yet announcing he would not seek another temple next year, saying his family deserved better than just this two weeks ago -- you're going to run in 2024? >> absolutely. >> reporter: we are calculating about 50 republicans need to switch their position to supporting the expulsion. if he were expelled, this would be an unprecedented event. the other only five members were either quiblgted of a crime or were kicked out because they were fighting with the confederacy. manu raju, thanks so much. to be clear, he's not resigning. he plans to serve out the rest of his term. why didn't the report recommend that santos be expelled? i will ask a republican on that cocommittee, n next. we're back, the damning house ethics report on congressman santos of new york, including that he used campaign funds for personal uses, including paying off his personal credit card debt. would that was the worst on the list. with me is congressman david joyce, a member of the committee which issued the record. your chairman is expected to make a motion as soon as tomorrow to expel congressman santos from congress. that's a rare occurrence. do you support the move to expel congressman san tows? do you think ultimately he will be kicked out of congress? >> thank you for the time, jake. you know, i was the chair of the investigative subcommittee. we finished our report, and we didn't come to the conclusion necessarily that for expulsion, because to do so would have required us basically to have a trial and give hi

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