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					1                  IN THE UNITED STATES DISTRICT COURT
                FOR THE MIDDLE DISTRICT OF NORTH CAROLINA
2

3    UNITED STATES OF AMERICA,        Criminal Action
                                      No. 1:11CR161
4

5             Plaintiff,

6    vs.                              Greensboro, North Carolina

7    JOHNNY REID EDWARDS,             May 17, 2012

8             Defendant.

9    _______________________________/

10

11                TRANSCRIPT OF JURY TRIAL PROCEEDINGS

12                          (CLOSING ARGUMENTS)

13               BEFORE THE HONORABLE CATHERINE C. EAGLES

14                     UNITED STATES DISTRICT JUDGE

15   APPEARANCES:

16   For the Government:      ROBERT J. HIGDON, ESQUIRE
                              BRIAN SCOTT MEYERS, ESQUIRE
17                            Assistant United States Attorneys
                              Eastern District of North Carolina
18                            310 New Bern Avenue, Suite 800
                              Raleigh, North Carolina 27601-1461
19

20                            DAVID V. HARBACH, ESQUIRE
                              JEFFREY E. TSAI, ESQUIRE
21                            United States Department of Justice
                              Public Integrity Section
22                            1400 New York Avenue N.W., Suite 1800
                              Washington, DC 20005
23

24

25             Proceedings reported by stenotype reporter.
           Transcript produced by computer-aided transcription.
                                                            2




1

2    For the Defendant:   ABBE DAVID LOWELL, ESQUIRE
                          Chadbourne & Parke, LLP
3                         1200 New Hampshire Avenue, N.W.
                          Washington, DC 20036
4

5                         ALLISON O. VAN LANINGHAM, ESQUIRE
                          ALAN W. DUNCAN, ESQUIRE
6                         Post Office Box 21927
                          Greensboro, North Carolina 27420
7

8

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10   Court Reporter:      J. Calhoun, RPR
                          Room 101, U.S. Courthouse Building
11                        324 West Market Street
                          Greensboro, North Carolina 27401
12                        (336) 332-6033

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                                                                   3




1                           P R O C E E D I N G S

2        (The Defendant was present.)

3               THE COURT:    Okay.   So the clerk had several little

4    things here to take up with you all before we have the

5    closing arguments.      I'd like to start with the suggested

6    change to the verdict sheet that the government has

7    presented, which I believe is also addressed in the

8    defendant's objections to the jury instructions which they

9    filed some time earlier today.

10              So the dispute -- apparently, everybody agrees I

11   need to submit special interrogatories about the conspiracy.

12   That's what it looked like to me.        People are nodding at the

13   government's table and at the defense table.        Okay.   So I

14   can do that.   And the dispute is whether it should be a

15   special interrogatory -- two special interrogatories or

16   three special interrogatories, basically.        Contributions

17   from Rachel Mellon or Fred Baron in one or whether I need to

18   split that up into two.      That's kind of how I understand the

19   dispute.   So who is speaking on this for the government?

20              MR. TSAI:    I will, Judge.    The instruction that

21   the government has requested, I think, encapsulates exactly

22   what the issue that the jury needs to decide is, which is

23   being unanimous on the verdict as to both -- one or the

24   other of the objects of the conspiracy, or obviously both.

25              The Court already has a unanimity instruction
                                                                  4




1    under the conspiracy count, and it's exactly right.     It

2    indicates that the jury has to be unanimous on the specific

3    object.   So that part of the instruction is correct, we

4    think, Judge.   There is no additional language that's

5    necessary --

6              THE COURT:    There is no additional what?

7              MR. TSAI:    Language that's required that the

8    defense has suggested on page 16 of their brief.   It

9    provides more words on paper, but no more substance, Judge.

10   The Court's current instruction as it stands in that regard

11   is correct on unanimity.    As to --

12             THE COURT:    Has -- go ahead.

13             MR. TSAI:    As to the verdict form itself, the

14   reason only two special interrogatories is necessary as

15   opposed to, I think, four that the defense has requested is

16   because there are only two objects of the conspiracy.      The

17   first object of the conspiracy was the acceptance and

18   receipt of illegal campaign contributions for Mrs. Mellon or

19   Mr. Baron.   So the jury need only find that object of the

20   conspiracy unanimously, and the same applies to the filing

21   or the concealment of the material fact under Count Six.

22             I think the crux of the dispute is that what the

23   defense is suggesting is that the Court split it up both as

24   to Mrs. Mellon and Mr. Baron.    The reason why that's not

25   necessary and isn't correct, as a legal matter, is because
                                                                5




1    those are not separate objects of the conspiracy.     In other

2    words, there's not an object on Mrs. Mellon, and there's not

3    an object separately on Mr. Baron.

4              It would be no different than, Judge, by

5    comparison, to a conspiracy under the drug statutes to

6    violate the drug statutes as to marijuana and to -- as to

7    crack cocaine, for example.    The jury need not decide

8    separate objects as to both because it's a violation of the

9    same statute.   For that reason, the Court need not then

10   split it up into different questions as to each individual.

11             And then the final point I'll note is that the

12   government's also not required to prove conspiracy by

13   special interrogatories as to each conspirator.     So as a

14   result, in any given case, including a campaign finance

15   case, the government would not be required to prove a

16   conspiracy as to Mrs. Mellon and then separately a

17   conspiracy as to Mr. Baron.    It could prove a conspiracy;

18   and as long as the jury agrees on the object, that's

19   sufficient for unanimity, and that's what this topic

20   addresses.

21             THE COURT:    All right.   Thank you.   Mr. Duncan?

22             MR. DUNCAN:    Your Honor, let me start with the

23   second thing first which is the objects of the conspiracy.

24   As the indictment was prepared and made against Mr. Edwards,

25   the government at that time chose to break it between
                                                               6




1    Ms. Mellon and Mr. Baron in terms of the indictment charges,

2    and so we thought that would be the appropriate way to set

3    out the questions to the jury.

4              Equally as important, if not more important,

5    honestly, Your Honor, from our standpoint is it would be

6    very necessary for the jury to know that it would be

7    required to have a unanimous finding as to whatever number

8    of questions or special interrogatories Your Honor decides

9    to put there.    Otherwise, you have the risk that you may

10   have eight jurors decide on one and four on another, and you

11   don't really have unanimity as to all, but you may have had

12   unanimity collectively between different special

13   interrogatories; and I know that, under the law, is

14   something that courts take particular care to avoid.    So

15   that's why we raised that particular issue.

16             Also, I want to say, Your Honor, with respect to

17   the other filing that we made, in looking at the --

18             THE COURT:    Are you speaking beyond the special

19   interrogatory?

20             MR. DUNCAN:    I was only going to say one sentence

21   about it --

22             THE COURT:    Okay.

23             MR. DUNCAN:    -- Your Honor.   I was simply going to

24   say in looking at the Fourth Circuit law, we saw it

25   required, even if we had raised things before, that it was
                                                                  7




1    necessary after the conference to raise it in a separate

2    pleading.    So we understand the Court's worked hard on these

3    issues, but we felt we simply needed to do that in that

4    light.

5                THE COURT:    I'm not offended.   I have very thick

6    skin.

7                MR. DUNCAN:    I know, Your Honor, but I thought it

8    was necessary if we looked at the law to explain why we felt

9    it was necessary to do that.

10               THE COURT:    That's absolutely fine.   I hope I've

11   given you all every opportunity to make your record.

12               MR. DUNCAN:    As Your Honor said, given that it was

13   an early morning this hour, I would have been delighted if

14   the law had not been that way, and we could have simply

15   stood on the earlier.

16               THE COURT:    All right.   Thank you.   All right.

17   I'll include the government's special interrogatories.       If

18   you all will give me a second to confer with the clerk.

19       (Discussion between the Court and clerk.)

20               THE COURT:    I was just discussing the logistics

21   with the clerk.    It's my practice, which I don't think I

22   told you all, but if you had asked anybody, you would have

23   known, to give the jurors copies of the verdict sheet --

24   their own copy of the verdict sheet to have in front of them

25   while you all argue the case to them because I think that's
                                                               8




1    helpful to them.    So any time there's more than a couple of

2    issues, I usually do that.    So I'm going to try to get that

3    process moving along while we're finishing up on the jury

4    instructions.

5              On the jury instructions -- we're all coughing

6    this morning -- I did read through the defendant's

7    objections just to be sure there was nothing there that was

8    new or that I had not focused on.    So on the copy of the

9    charge that I gave you last night, the revised one, on

10   page 10 on the fourth line where it says "received the

11   money, gift, or payment, I will change that to

12   "contribution."    I think that was a fair comment the defense

13   made.

14             The other places they objected to the word "money"

15   was where I was actually defining what a contribution was,

16   so I'm not going to change it there because that ends up

17   with me saying a contribution is a contribution.   But this

18   one I wasn't defining "contribution," so I will change it

19   there.

20             On page 12, in the summary language for Count Two

21   where it says, "Mr. Edwards knowingly and wilfully accepted

22   or received or wilfully caused another," you know, as I

23   perceive it, the defendants objected to not having

24   "knowingly" there.    But, you know, "wilfully caused" is the

25   language of 2(b), but it -- it incorporates -- you know,
                                                                  9




1    it's a higher standard than "knowingly," so I just -- I'm

2    happy to add "knowingly" in there as well, and that would be

3    the case on two through five, to add "knowingly" in on that.

4                And the only other change is a more grammatical

5    one on page 3, next to last line, where it says this is so

6    even if the expenditure "would have been" for an expense, I

7    just -- I'm going to change that to "was" in the interest of

8    clarity.

9                MR. DUNCAN:    Your Honor, I'm sorry.    Could you

10   direct --

11               THE COURT:    Pardon me; I'm so sorry.

12               MR. DUNCAN:    I'm sorry.   I stood up at an

13   inopportune time.    Can you direct me again to where on that

14   page?

15               THE COURT:    Page 23, the next to the last line.

16               MR. DUNCAN:    Thank you, Your Honor.

17               THE COURT:    This is so even if the expenditure

18   "would have been," changing that to "was."

19               And then let me see if there was anything else I

20   forgot to say.    I did -- I appreciated the discussion about

21   personal use and the objections filed this morning, but this

22   is not a -- the defendant's not charged with violating

23   439(a), and I think it is not appropriate to instruct them

24   on the law on 439(a) when he's not charged with violating

25   that statute, among other reasons.       Otherwise, I think I'll
                                                              10




1    overrule the defendant's objections in that document.

2             All right.    Now, the question of the defendant's

3    theory of the case -- madam clerk, here's Mr. Lowell's

4    handwritten document which I took last night, but you can

5    take for the file.

6             Did the defendant have any comment on the way the

7    government reworded the theory?

8             MR. DUNCAN:    Your Honor, suffice it to say we

9    prefer our wording.    It also -- it's substantively, and I

10   haven't tried to do it -- very quickly, having just got it a

11   short time ago, tried to do a comparison.    It does seem to

12   leave out the knowledge issue, and I think our -- I don't

13   think our wording is doing anything beyond setting out what

14   the contentions are, and we believe it's appropriate that we

15   ought to be able to word what our contentions are, even if

16   the government was able to do that in the indictment.

17            The other issue is that it says -- in the

18   government's version, it just says he "claims" as opposed to

19   "contends," which other places, even in the government's

20   version, it says "contends" rather than "claims."   So I

21   point that out not because I think that's the preferred

22   approach, but just a matter of consistency and proper use --

23   what we believe would be the proper use of words.   Your

24   Honor, we consistently sought to use the word "contends"

25   because that's the appropriate thing to put in this type of
                                                                11




1    instruction.

2              THE COURT:    Can I ask you about the way one -- one

3    thing you worded your contention?

4              MR. DUNCAN:    Yes, Your Honor.

5              THE COURT:    He contends the payments made by

6    Mrs. Mellon and Mr. Baron were not campaign contributions,

7    nor covered by the Federal Election Campaign Act -- and

8    here's my question -- and it would be a good faith belief

9    for him to have concluded that.

10             You can't have a hypothetical good faith belief,

11   so -- right?   I mean, you either have it, or you didn't have

12   it.   I mean, you can't hypothetically have it.

13             MR. DUNCAN:    We don't mind using the word

14   "reasonable" there as opposed to good faith belief, Your

15   Honor.

16             THE COURT:    That he had a good faith belief.      I

17   mean, that kind of assumes he believed it.     I mean, that

18   assumes he knew all about it, which I under -- I mean, it's

19   a little hard for me to understand how -- understand that

20   contention because it admits knowledge almost.

21             MR. DUNCAN:    The word "had" would be fine, Your

22   Honor, instead of "it would be."

23             THE COURT:    Okay.   "He had"?

24             MR. DUNCAN:    Yes, Your Honor.   And I apologize.      I

25   think I focused in on the wrong concern at first that Your
                                                                   12




1    Honor was raising.

2               THE COURT:    That's all right.     Okay.   Well, I

3    don't know that I have to give this.        I think I've covered

4    all of this in my instructions elsewhere.        On the other

5    hand, it's not long, and it's not particularly argumentative

6    like in some of the Fourth Circuit cases.

7               MR. DUNCAN:    It was our intent not to be, Your

8    Honor.

9               THE COURT:    Right, okay.    So this is what I will

10   be willing to say to the jury.

11              MR. HARBACH:    Your Honor?

12              THE COURT:    Yes, sir?

13              MR. HARBACH:    I apologize for interrupting.        Can I

14   be heard on one little part of this?

15              THE COURT:    Yes, you may.

16              MR. HARBACH:    The -- one of the reasons for the

17   government's proposed rewrite is the venue issue, and we had

18   some concern about the correctness of the defense's

19   contention as it was written.        In other words -- I believe I

20   raised this yesterday.     As I read the handwritten version,

21   it says:   In addition, he contends that the payments alleged

22   in Counts Three, Four and Five were not accepted or received

23   in the Middle District of North Carolina.

24              And as we discussed yesterday, that's inconsistent

25   with the Court's venue instructions.        In other words,
                                                                13




1    according to the instructions that Your Honor has put forth,

2    this alone would not establish improper venue.

3               So on just that one precise point, that's the

4    reason that we changed the language to be a little bit more

5    generic to simply restate that he doesn't believe that venue

6    is proper.   And as I understand it from having read some of

7    the case law, which I hadn't done yesterday, one of the

8    requirements is that the instruction be correct, and so it's

9    on that correctness issue that we made that change.

10              THE COURT:    All right.

11              MR. DUNCAN:    Your Honor, I'll say simply we were

12   adopting the words used in the statute.     That's where

13   "accepted or received" came from.

14              THE COURT:    Well, that's a legitimate concern.

15              MR. DUNCAN:    Your Honor, might I add one other

16   thing?   In addition to the statute, the indictment actually

17   uses those phrases.

18              THE COURT:    Well, I mean, it's -- I mean, I

19   understand you contend they were not accepted or received.

20   That is not a problem.     It's the "in the Middle District of

21   North Carolina" that's the problem.

22              I think -- you know, the jury is here.    They're

23   waiting.   I think I've covered all the law on all of this.

24   Rather than try to sort through these two here at the last

25   minute, I believe I've covered the law, and I'm just going
                                                                   14




1    to leave it out.   Okay.

2               So I'll make those minor changes on the jury

3    instructions, and I indicated I read all of those.          What

4    else do we need to do before closing argument?

5               MR. DUNCAN:    Your Honor, can I make one last

6    suggestion before we leave that document?

7               THE COURT:    Okay.

8               MR. DUNCAN:    Although we do not prefer the

9    government's, we would take the government's version rather

10   than have nothing with respect to the defense theory of the

11   case, to avoid the Court's concern about trying to sort

12   through dueling versions.

13              THE COURT:    Okay.   Then I'll give the government's

14   version.

15              MR. DUNCAN:    Thank you, Your Honor.

16              THE COURT:    I'll add that in.    And obviously I'll

17   have to add some logical instructions associated with

18   subissues on Count One.      You all -- I assume you all don't

19   need to see those in advance.      It's just a matter of

20   logistically telling them what to do about that, so I'll add

21   that in when I instruct them on that.        Anything else?

22              MS. VAN LANINGHAM:    Your Honor, just one minor

23   point.   This just relates to an exhibit issue I just want to

24   put on the record.      When Mr. Walsh was testifying, there was

25   Exhibit 1250, which was a CD, and 1250A.        They were
                                                                 15




1    submitted subject to redaction.        That's been redacted and

2    now submitted to Ms. Powell, and I just wanted to put that

3    on the record.

4                THE COURT:   All right.    Great.   Anything else?

5    Okay.   We're going to have to take a short break because I

6    have to look at the revised verdict sheet and be sure that

7    it's okay, and we have to get copies made of it for the

8    jury.

9                This is my intention about timing on closing

10   argument.    I'm going to let the government open.     They're

11   going to argue, I assume, at least an hour.        Whenever you

12   finish after that, we will take a short break.

13               Then when we come back, I'll have -- I will excuse

14   the jury for the break, and I'll say specifically what we're

15   going to do about the defense argument, but we will break up

16   the defense argument for lunch.        That means the defense will

17   need to go with their arguments until an appropriate time

18   for lunch, which I would say is no earlier than noon.       If

19   you -- if the -- you know, we can talk about that at the

20   mid-morning break after we know exactly how long the

21   government's first argument is, but I'm -- you know, I don't

22   want to just stop you at noon.        I'll certainly give a right

23   fair amount of leeway on the selection of a best starting

24   point, okay.

25               Then when we come back after lunch, we'll finish
                                                                 16




1    the defense arguments.     Hopefully, we'll be able to go

2    straight into the government's concluding argument and do

3    all of that without a break.     Maybe that will work out,

4    maybe not.

5               I'm just going to play it by ear is the long and

6    the short of it, and you all just will need to be flexible

7    about these things, because I'm -- I don't know that I

8    really want to tie you down to minute-by-minute scheduling

9    on this.   Okay?

10              So let me take a few minutes with the clerk to

11   finalize the verdict form; and then when we come back, we'll

12   proceed.   Okay?   We'll take a 5- or 10-minute recess.

13       (The Court recessed at 9:21 a.m.)

14       (The Court was called to order at 9:34 a.m.)

15       (The defendant was present.)

16              THE COURT:    All right.   We've got the new verdict

17   sheet.   Anything we need to do before the jury comes in?

18   Who is making the closing argument?

19              MR. HIGDON:    I am, Your Honor.

20              THE COURT:    You are going first, and then

21   Mr. Harbach will be making the final --

22              MR. HARBACH:    Yes, Your Honor.

23              THE COURT:    All right.   And over here?

24              MR. LOWELL:    I'll be making the closing argument

25   on behalf of Mr. Edwards.
                                                              17




1             THE COURT:     Thank you.   And given -- I understood

2    from the clerk that the defense team had requested last

3    night that you have a lunch break in your argument; and

4    given that we're starting a little bit later, that is

5    clearly making sense.

6             MR. LOWELL:     Assuming that they'll take the time

7    you allotted, I have a spot about halfway through as to when

8    we'd like that break to be, give or take a few minutes on

9    both sides.

10            THE COURT:     We'll see what time it is when we take

11   the morning break.    You may bring the jury in.

12       (The jury returned to the courtroom at 9:34 a.m.)

13            THE COURT:     Good morning.   We gave our best laid

14   plans, but -- well, we're ready to go.     We had a little

15   issue about some last minute changes to the verdict sheet

16   that needed to be done before we got you all in here.

17            You have heard the evidence, and it will soon be

18   your job to decide from this evidence what the facts are and

19   then to apply the law that I will give you to those facts.

20   To assist you in this process, the lawyers are allowed to

21   make closing arguments to you.

22            We've all agreed they'll each take a couple of

23   hours -- a couple hours for the government and a couple

24   hours for the defense.    The government gets to go first.

25   Then the defense takes it its turn.     Then the government has
                                                               18




1    an opportunity for rebuttal argument.    After these

2    arguments, I will instruct you on the law.

3                Now, this process is going to take all day, and I

4    expect you will begin your deliberations pretty much first

5    thing in the morning.    All right?

6                Now, counsel in their arguments may properly refer

7    to some of the applicable rules of law in their closing

8    argument.    However, I will instruct you fully on the law,

9    and what I say governs.    So if you find there to be any

10   difference in what one of the lawyers says about the law and

11   what I tell you about the law, then you should disregard the

12   attorney's statements about the law and follow what I tell

13   you.

14               The lawyers are also allowed to go over the

15   evidence with you and attempt to persuade you to answer the

16   issues in a particular way.    They may say the evidence in a

17   way that's different from what you heard, and they may

18   remember it differently, or their recollection could be

19   inaccurate.    You know, they are just like all the rest of

20   us.    Or they may put an interpretation on the evidence that

21   you think is unwarranted.    You are the judges of the facts,

22   and nothing the lawyers say is evidence, so you should be

23   guided by your own recollection.

24               Now that said, closing arguments can be quite

25   helpful to jurors in bringing together the evidence and
                                                              19




1    bringing the evidence back to mind, especially in a case

2    that has taken several weeks.    You should give the lawyers

3    your full attention as they argue the case to you and

4    consider their arguments.

5              The clerk has copies of the verdict sheet for you,

6    all right.   You may hand those out.   You each will have a

7    copy in a second.   That's your copy to take notes on during

8    argument and during my instructions, and you'll get the

9    original verdict sheet tomorrow when you begin your

10   deliberations.   Feel free to write on it.   As you can see,

11   there are six counts which will require your decision.    Five

12   of the counts have subissues on venue, and there are a

13   couple of other special questions on the conspiracy count

14   you may need to answer.

15             I'll go over all of that with you when I talk to

16   you about the law, but I did want you to have the verdict

17   sheet in front of you during closing arguments because I

18   think that's helpful.

19             You will note that the verdict sheet begins with

20   Count Two, and then Count One is at the very end.   So that's

21   on purpose, not a mistake, and I think it will be clear to

22   you why when I give my instructions to you.

23             At any time if you cannot hear or see what is

24   going on, please don't be shy.    Speak up and let me know.

25             We will be begin with the government's initial
                                                                  20




1    closing argument, which I understand will be given by

2    Mr. Higdon.    After he makes his initial argument, we'll take

3    a short recess and then come back and begin the defense

4    closing argument.

5               The jury is with the government.

6               MR. HIGDON:   May it please the Court, good

7    morning, ladies and gentlemen.      On December 30, 2006, John

8    Edwards stepped onto a stage in Chapel Hill and told his

9    friends and supporters gathered there and people all over

10   this country who were watching on television that he wanted

11   to be the president of the United States.      He asked all

12   Americans to allow him to be our leader.      He asked for our

13   votes.

14              That day, to anyone watching, John Edwards had a

15   good chance of winning his party's nomination for president.

16   He was an experienced candidate.      He had done this all

17   before.    He had been a senator.    He had run for president in

18   2004.    He had been John Kerry's running mate in 2004.      He

19   had a poverty-based platform focusing on Two Americas, and

20   he had a popular wife, and a beautiful family.

21              But on that day, the seeds of a destruction of his

22   campaign, seeds he had sown himself in February of 2006,

23   were waiting to destroy that campaign.      And as he spoke, as

24   he declared he wanted to be, indeed, should be, our

25   president, he knew it.    He knew that there in the crowd that
                                                                21




1    day, along with his wife and children, was Rielle Hunter, a

2    woman with whom he had been carrying on an affair for more

3    than ten months.    But he was sure that the public would

4    never find out.    He and his close aide, Andrew Young, had it

5    all under control.

6             When the affair began, Rielle Hunter was

7    unemployed and living with a friend.    And as time passed,

8    Mr. Edwards had to find a way to help her financially, to

9    make sure that she was available when he wanted to see her,

10   and he had to make sure that she didn't talk to the media

11   about the affair.    And he found the perfect solution.    He

12   put her on his fledgling campaign as a videographer and

13   allowed her behind-the-scene-access to himself.   So without

14   telling his staff and advisors what was really going on,

15   John Edwards added his mistress to his political road show,

16   and they began traveling around the country campaigning,

17   videotaping, and continuing the affair.

18            It seemed like a great plan.     But unfortunately,

19   Mr. Edwards was surrounded by some savvy advisors and some

20   earnest, observant young staffers who began to suspect that

21   something was wrong.    They watched Mr. Edwards' interaction

22   with this woman.    She was given unequaled access to the

23   candidate.   She flew on private planes when senior staff

24   traveled commercially to save money.    She decided what

25   events she would attend, rather than allowing campaign
                                                                22




1    strategists to make that decision.    She was provided with

2    health insurance when other contractors were not, and John

3    Edwards seemed to involve himself in the most minor of

4    decisions if it involved Rielle.

5              As the months passed, one by one, these staffers

6    and advisors began to be suspicious that Mr. Edwards was

7    carrying on an affair with Ms. Hunter, and they began to

8    fear it would damage or destroy the campaign; and let's face

9    it, it's obvious that it would have.    It's just common

10   sense.   It's something we all know, and every witness who

11   testified before you agreed and understood it would ruin his

12   chances of being elected president, and John Edwards

13   understood that, too.

14             These staff members and advisors began to confront

15   Mr. Edwards with their fears.    First, Josh Brumberger, a

16   well-spoken, smart, dedicated young man who worked for

17   Mr. Edwards as the body man, cautiously raised the issue by

18   explaining to Mr. Edwards that the staff was getting the

19   wrong impression about his relationship with Ms. Hunter.

20             Mr. Brumberger told you that he had to summon the

21   courage to talk with his boss about this and was assured by

22   Mr. Edwards that he understood the problem and would correct

23   it.   But Mr. Edwards didn't stop the affair, and he didn't

24   change his behavior.    Mr. Brumberger told you that he tried

25   again to address the issue with Mr. Edwards by calling him
                                                               23




1    at home and telling him that he was worried about where

2    Mr. Edwards' head was at.    This call was met with a cold

3    silence, the same silence that you heard about time and time

4    again when Mr. Edwards was faced with this problem.

5               Desperate and knowing that an extramarital affair

6    would simply destroy the campaign, Mr. Brumberger turned to

7    more senior people in the campaign page.    He spoke to Nick

8    Baldick and Peter Scher, both of whom testified in this

9    trial.   He explained to Baldick and Scher that he believed

10   that Edwards might be having an affair with Hunter, and he

11   pointed out the obvious:    An affair would destroy the

12   presidential campaign of John Edwards.

13              Baldick and Scher agreed with Brumberger, and they

14   scheduled a meeting with the boss.    They met with Edwards,

15   and they addressed the rumors of an affair directly with

16   him.   Mr. Edwards denied that he was having an affair to

17   those two senior advisors, and he dismissed their concerns,

18   and he decided to punish Mr. Brumberger.

19              On October 16, 2006, Mr. Brumberger flew to

20   Chicago to meet up with Mr. Edwards so that they could

21   travel to China together.    When Brumberger arrived at the

22   airport, he told you Mr. Edwards asked to meet with him

23   privately; and when they were alone, Mr. Edwards let him

24   have it.   Using some pretty salty language, Mr. Edwards

25   accused Mr. Brumberger of being disloyal, told him that he
                                                              24




1    should have handled the issue like a man, and he reminded

2    him that he works for Mr. Edwards, not Baldick and Scher;

3    and then Edwards fired him.

4                He fired the guy who had been traveling with him

5    day and night for months.    He fired the guy who had

6    dedicated his life to helping John Edwards get elected

7    president.    He fired him because he had the guts to tell him

8    the truth.    He fired the guy who actually put the campaign

9    ahead of himself.    And the affair continued, and the

10   campaign continued, and the seeds of destruction continued

11   to grow.

12               Two months later, John Edwards stepped up on that

13   stage in Chapel Hill, and he told the world that he was

14   ready to be president, and he launched his official

15   campaign.    And when John Edwards announced officially that

16   he was the candidate for president of the United States, he

17   was bound to follow the rules that Judge Eagles told you

18   about at the beginning of this trial.

19               You'll recall that she told you that during a

20   primary general election, a candidate for federal office can

21   receive contributions of no more than $2,300 from any one

22   individual for his campaign.    It's a simple rule, and it

23   applies to every candidate and every donor.    Judge Eagles

24   also told you that federal election law requires candidates

25   for federal office to report all contributions over $200 to
                                                              25




1    the Federal Election Commission.   Again, it's a simple rule,

2    and it applies to every candidate and to every donor, and

3    these rules are important.

4              Patricia Young, a 30-plus-year veteran employee of

5    the Federal Election Commission told you about the

6    importance of these reports.   They are required by law, and

7    they are used by the commission, the media, and the public

8    to determine the level of support a candidate has and to get

9    an idea of who is influencing the candidate: the voters or

10   the big donors?

11             In a democracy, it matters what we know about our

12   candidates.   We need to know who is influencing them, we

13   need to know where they get their money from, and we need to

14   know how they choose to spend that money.    So the FEC gets

15   those reports up on their website immediately after they are

16   filed, and the media begins to report on them as soon as

17   they are available.

18             When John Edwards declared his candidacy for

19   president in Chapel Hill in December of 2006, he was

20   promising to abide by those rules.   He was promising to

21   raise no more than $2,300 from any one donor for the primary

22   and the same amount from any one donor if he made it to the

23   general election, and he was promising to report all that

24   money that he raised to the FEC so we would all know who

25   supported him and who was influencing him.
                                                              26




1              John Edwards knew these rules well.    He lived by

2    them when he ran for the senate in 1998.   He lived by them

3    when he ran for president in 2004.   He lived by them when he

4    ran for vice president in 2004.   Donors, staff members, and

5    advisors all testified that he knew the rules.    He knew them

6    so well that he could advise donors, like Tim Toben, about

7    how much they could give, and he asked them to max out

8    whenever possible.   He knew the rules well.

9              But the seeds of disaster that John Edwards had

10   planted in his campaign during 2006 would eventually mean he

11   couldn't comply with these basic rules, and the weeds which

12   sprouted from those seeds began to choke his campaign just

13   as he was announcing his candidacy to the world.

14             The Chapel Hill speech announcing his campaign was

15   part of a five-city tour to generate support for his

16   candidacy.   He arrived in Chapel Hill, the last stop on the

17   tour, with Ms. Hunter in tow.   They were picked up at the

18   airport by Andrew Young and other staffers and were driven

19   to the announcement event.

20             Waiting for him there were his wife and family;

21   and as luck would have it, Mrs. Edwards got her first real

22   glimpse of Ms. Hunter.   She confronted her husband right

23   before the speech.   They argued before he went up on that

24   stage, and the argument continued on into the evening after

25   the event was over, and Mr. Edwards admitted the affair to
                                                                27




1    his wife.    But he told her it was only a one-time thing and

2    that it was over.    In other words, he didn't tell the whole

3    truth; he lied.

4                The next day, Mr. Edwards fired Rielle Hunter as

5    the campaign videographer, and he told her the affair was

6    over; but it wasn't.    It and the trouble it would cause for

7    him and his campaign were just beginning.

8                As far as Mrs. Edwards and the staff knew, Rielle

9    Hunter was gone.    She didn't travel with the campaign.    She

10   wasn't paid by the campaign.    Things were looking better,

11   and John Edwards was a viable candidate, one of three

12   prominent senators who had a chance to win the White House,

13   and he had the affair under control, too.

14               When Mrs. Edwards demanded he fire Rielle Hunter,

15   John Edwards did what he always did when he needed something

16   or when he had a problem.    He turned to his long time aide,

17   Andrew Young.    Young, as you heard during the testimony, had

18   worked for Edwards for nine years.    He ran phone banks for

19   him during his senate campaign in 1998.    He served on his

20   staff in the United States Senate.    He worked for his

21   political action committee.    He worked with Edwards at the

22   Poverty Center.    He worked with him on the 2004 race for

23   president.    He worked with him when he ran for vice

24   president in the general election of that year, and he was

25   working with him again this time around.
                                                             28




1              Over the years, they'd spent an amazing amount of

2    time together, maybe more time than they'd actually spent

3    with their families.    Andrew Young was always waiting for

4    Mr. Edwards when the plane touched down after a campaign

5    trip.   Young had driven Edwards around the state of North

6    Carolina for years.    They visited all 100 counties together.

7    They spent hours talking, and they shared many common

8    interests; and the most important interest they shared was a

9    desire to see John Edwards elected president.

10             And over the years, Andrew Young had shown no

11   hesitation in doing anything and everything John Edwards

12   asked of him, whether he was asked to get the dry cleaning

13   or make sure the wine was chilled and waiting in the car.

14   Andrew Young was willing to sacrifice his personal dignity

15   and self-respect to serve the man who he idolized and

16   respected.   He had been willing to endure his wife's anger

17   and to risk his marriage as he dedicated untold hours and

18   unlimited energy to the political ambitions of John Edwards.

19             So John Edwards turned to Andrew Young and asked

20   him to help hide the continuing affair, and at first it

21   wasn't that hard.    Edwards was traveling the country running

22   for president.   He really wasn't home that much, and Rielle

23   Hunter could meet him along the campaign trail.   No one

24   would ever know.    All Andrew Young really needed to do was

25   to help make Hunter's travel plans and make sure that the
                                                              29




1    phone Edwards used to talk to Hunter was hidden when Edwards

2    returned to North Carolina.

3                So Young began meeting Edwards as he came and went

4    on campaign trips.    He made sure Edwards had the "bat phone"

5    when he left North Carolina, and he retrieved it from him

6    when he came back.    Easy solution.   Andrew would take care

7    of it, and John Edwards wouldn't have to worry about that

8    nasty little problem of leaving evidence of the affair

9    behind for anyone to find.

10               But, of course, the problem became bigger and

11   harder to hide.    The more that Hunter and Edwards met along

12   the campaign trial, the more likely it was that they would

13   be caught, caught by staffers, caught by the media; and if

14   that happened, there was no question it would destroy the

15   campaign.

16               Not long after Hunter was fired, John Davis, the

17   young body man who replaced Josh Brumberger after

18   Mr. Edwards fired him, was in a hotel with Edwards in

19   Detroit, Michigan.    He saw her on an elevator, and it wasn't

20   long before she showed up at the door of his room.    She came

21   in and told him that she had told Mr. Edwards she had seen

22   him on the elevator.    She told Davis that she and Edwards

23   were in love and were engaged in the affair.     She told Davis

24   she was glad that he knew the truth, and then she left

25   Davis' room.
                                                               30




1              The next morning, Mr. Davis began the day with

2    Mr. Edwards as usual.    They reviewed the schedule and

3    prepared to begin campaigning; but then John Edwards took

4    Mr. Davis aside and explained that Rielle Hunter had been in

5    the hotel last night, that she was crazy and that she was

6    claiming to have had an affair with him, which he denied,

7    and that she was threatening to tell the media.

8              According to Davis, Edwards told Davis that he and

9    Andrew Young would be the people in the campaign who would

10   have to deal with her and that Davis should keep Ms. Hunter

11   away from Mr. Edwards.    And think for a minute.   That is

12   exactly what Mr. Harbach told you the evidence would show.

13   When Mr. Edwards was confronted with a threat to his

14   ambitions, he would deny, deceive, and manipulate; and

15   that's exactly what he did to John Davis.

16             But this wasn't the only time the staff members

17   found Ms. Hunter in John Edwards' hotel room.    In June of

18   2007, Ms. Hunter met up with Mr. Edwards and spent the night

19   with him in a hotel room in Florida.    The next morning,

20   Mr. Edwards left the room first, and Ms. Hunter stayed

21   behind.

22             When staff members arrived to sweep the room, to

23   make sure nothing important was left behind, they found a

24   woman locked in the room.    Hunter, panicked by this

25   discovery, called John Edwards, and John Edwards did what he
                                                                31




1    always did.    He called Andrew Young.   Young called

2    Ms. Hunter, calmed her down, and made up a story to explain

3    the problem to the staff members standing at the door.

4    Ms. Hunter got out of the hotel, and no one was the wiser.

5    But days later, in a very strange discussion, when Mr. Young

6    asked Mr. Edwards about the incident at the hotel, Edwards

7    denied that Hunter was even in Florida.

8                Now, as the affair became harder and harder to

9    keep quiet, and as Ms. Hunter became more frustrated and

10   increasingly threatened to go public to avoid living the

11   lie, Mr. Edwards realized he needed a plan to support

12   Ms. Hunter and to keep her quiet.

13               Edwards and Young talked about who could provide

14   money to support Ms. Hunter, at least until the campaign was

15   over, and Mr. Edwards' wife, who was suffering from cancer,

16   had passed away.    What they needed was enough money to

17   support Hunter, fund her travel, and keep her happy, keep

18   her happy enough that she wouldn't tell her friends or any

19   reporters what was going on.    Mr. Edwards wanted to keep the

20   affair going; but he knew if it became public, the campaign

21   was over.

22               Mr. Edwards couldn't use his own funds.

23   Mrs. Edwards kept close tabs on their family money, and she

24   was, by this time, keeping pretty close tabs on Mr. Edwards

25   himself, checking campaign phone records, questioning staff
                                                                32




1    members about Edwards' travel plans and traveling

2    companions, switching phones with Mr. Edwards to keep lines

3    of communications confused.    So Edwards and Young considered

4    other sources of funding.

5               Mr. Edwards first thought about the $400,000 that

6    Andrew and Cheri Young made from the sale of their Raleigh

7    home.    That money was parked in the Young's investment

8    account.    Young had told him about it, and you've seen all

9    the bank records showing the money in the Youngs' account.

10   Mr. Edwards promised that he would pay it back just as soon

11   as Elizabeth died.

12              But when Andrew sheepishly asked his wife if they

13   might use the money to help Edwards continue his affair with

14   Rielle, Cheri Young put her foot down.    They needed that

15   money to pay for the home that they were now building on the

16   property that they had bought from Tim Toben.

17              So Mr. Edwards and Mr. Young continued looking for

18   another way to support Ms. Hunter.    They considered

19   approaching the musician Boyd Tinsley, but that didn't work

20   out.    So Edwards and Young turned to David Kirby,

21   Mr. Edwards' former law partner.    But Mr. Kirby would only

22   offer a $25,000 loan, and that simply wasn't enough.    So

23   Edwards and Young kept searching.

24              That's when Mr. Young recalled a letter he had

25   just received from Bunny Mellon.    Now, you will certainly
                                                               33




1    recall that Mrs. Mellon was one of John Edwards' most

2    dedicated supporters.   Indeed, other than John Edwards

3    himself, there is probably no one on the planet who wanted

4    John Edwards to be president more than Bunny Mellon.

5              Since 2004, when she put her own ads in the local

6    newspaper, Mrs. Mellon had followed Mr. Edwards' career and

7    political success from her estate near Upperville, Virginia.

8    She believed that Mr. Edwards was the right man to lead the

9    country, and she wanted to offer whatever support possible.

10   And with Bunny Mellon, friend of the Kennedys, millionaire,

11   private airplane, lots of wealthy friends, a lot of support

12   was possible.

13             Since December 1st, 2005, Mr. Edwards had been

14   cultivating Mrs. Mellon as a supporter.   He visited her farm

15   on several occasions.   He sent Mr. Young to see her and to

16   encourage her and her good friend, Bryan Huffman, to fund

17   John Edwards' political ambitions.   Edwards stayed in touch

18   with her by telephone, letting her know of his political

19   progress around the country.   He called her on birthdays and

20   special events, just as he did with other supporters,

21   whenever the staff reminded him to do so.

22             And Mrs. Mellon had come to value her relationship

23   with John Edwards.   She was energized by his campaign.    She

24   was excited when her candidate would call her.   She had

25   given more than $3 million to the One America Committee and
                                                              34




1    the Center for Promise & Opportunity to help Edwards prepare

2    for the campaign, and she was upset when she felt that his

3    political opponents were after him.

4              In April of 2007, she was very upset.   She had

5    heard in the media that Mr. Edwards had spent a lot of money

6    on haircuts and had charged that cost to his campaign.     Like

7    any other expenditure attributed to the campaign, the

8    haircut had been reported by the campaign staff to the

9    Federal Election Commission on the quarterly report that you

10   heard Patricia Young talk about, and the media and

11   Mr. Edwards' political opponents who comb these reports just

12   as soon as they were filed were making Mr. Edwards look bad

13   for this pretty extravagant expenditure.

14             And let's just take a moment to think about this.

15   It may seem trivial, but the haircut issue proves that the

16   campaign disclosure system really does work.   In that case,

17   Mr. Edwards had charged his campaign with an extravagant

18   personal expense.   It was paid for with campaign funds.      It

19   was reported on the FEC report, and the media and public

20   were allowed to debate his judgment.   Some people thought it

21   was a big deal.   Others thought it was unimportant.   Either

22   way, the voters knew about it and could factor it into their

23   decision to support or oppose Mr. Edwards' candidacy.

24             But Bunny Mellon didn't see it that way.     She felt

25   that her candidate should have anything he needed to make
                                                              35




1    his campaign a little easier; and if he needed a $400

2    haircut to advance the cause, then so be it.    She didn't see

3    any need to be bothered with those ridiculous government

4    restrictions.    What a candidate, her candidate, spent on

5    himself was nobody's business, as she saw it.

6              So on April 21st 2007, Mrs. Mellon sat down and

7    wrote Mr. Young a letter, and I'm going to ask Mr. Morgan to

8    put Government's Exhibit Number 128 up on the screen.

9    You've seen this letter:

10             "Dear Andrew, the timing of your call on Friday

11   was witchy.    I was sitting alone in a grim mood furious that

12   the press attacked Senator Edwards on the price of a

13   haircut, but it inspired me.    From now on, all haircuts, et

14   cetera, that are necessary, important, and part of his

15   campaign, please send the bills to me, care of Alex Forger,

16   in New York.    It is a way to help our friend without

17   government restrictions.    I see jealousy coming from

18   somewhere in this news report.    With love and a big hug to

19   you and the senator, much love, Bunny."

20             Riding along together while campaigning one day,

21   Young shared the letter with the senator.    Maybe this was a

22   solution to the problem.    But there were two issues.   First,

23   Mrs. Mellon had already given $4,600 to John Edwards'

24   political campaign.    As Aliene Laws and Alex Forger told

25   you, she had given it in response to mailings from the
                                                              36




1    campaign; but all they had to do to get around that rule,

2    Edwards and Young decided, was to tell her that it was for a

3    personal need, something that the senator needed.    Make sure

4    to convince her that it was outside the campaign, and the

5    problems she might have with the FEC rules and those

6    donation limits could be avoided.

7              But how to deal with the second problem:     Alex

8    Forger.   Mr. Forger, as you know, oversaw Mrs. Mellon's

9    investments in her company.   He provided her advice, and he

10   helped manage her considerable resources, and he'd already

11   told her that he couldn't give Edwards more -- that she

12   couldn't give Edwards more than $4,600, and he'd already

13   told Andrew Young that Mrs. Mellon wasn't going to give any

14   more funds right now.

15             On April 24, 2007, just three days after

16   Mrs. Mellon had written Andrew Young, Alex Forger emailed

17   Mr. Young to let him know that Mrs. Mellon wouldn't be

18   giving any more money to any of the other organizations that

19   supported John Edwards' political ambitions, and she was

20   going to follow the advice of her advisors.

21             Mr. Morgan, if you'd put up Government's Exhibit

22   Number 574.   This is the email from Mr. Forger to Andrew

23   Young:

24             "Andrew, Ken Starr, citing her current financial

25   commitments, has advised Mrs. Mellon against taking on any
                                                               37




1    additional projects for the time being.    She has accepted

2    Ken's counsel and requested that I send along her regrets.

3    She continues to be one of the senator's most ardent

4    cheerleaders."

5                Thank you, Mr. Morgan.

6                So they needed to work around Mr. Forger, and that

7    was easy.    More lies, more deceit, more manipulation.

8    Edwards would just call Mellon himself, and Andrew could

9    then follow up and work out the details.    Mrs. Mellon had

10   told them both over and over that she'd do anything she

11   could to help Senator Edwards, help him become president.

12   In letter after letter, she confirmed that support.

13               So Edwards spoke with Mrs. Mellon, and suddenly

14   Mr. Forger wasn't really a problem anymore.    It was as if

15   the sentence in that letter, send the bills to me care of

16   Alex Forger, was simply removed from that letter.    Now they

17   had a plan to support Mr. Edwards without government

18   restrictions.

19               After Edwards talked to Mellon, he told Andrew to

20   call her.    Mr. Edwards said she was good to go.   And so

21   Mr. Young called Mrs. Mellon.    She had a plan, and she was

22   all business.    He could hear papers rustling, and she gave

23   out very detailed instructions.

24               Mr. Young told you that Mellon explained that she

25   was leery of working through her attorneys and wanted to
                                                                38




1    write these checks directly from her personal account

2    because nobody really reviewed that account.    She didn't

3    want the checks to be written to Andrew Young because

4    someone on her staff might recognize Mr. Young's name and

5    connect the money to the campaign.    She explained that she

6    would make the checks out to her friend, Bryan Huffman, and

7    would note that the money was to buy furniture.   Huffman

8    would endorse the checks and forward them on to Young for

9    deposit.    Andrew Young reported to John Edwards that

10   Mrs. Mellon had agreed to provide the support.    Problem

11   solved.

12              Now at about this time, the affair between

13   Ms. Hunter and Mr. Edwards became more complicated.

14   Ms. Hunter was pregnant.    Mellon's money was more important

15   than ever.    It was one thing to hide an affair, it was

16   something altogether different to hide a pregnancy and

17   child.    But Mrs. Mellon's willingness to give so much money

18   meant it was possible, and so Mellon's checks began rolling

19   in.   Mellon wrote them whenever she felt like it.

20              She sent them to Huffman by "fast mail," as you

21   heard.    He endorsed the back of the check, and he quickly

22   forwarded them on to Andrew Young.

23              Now, Andrew Young had to get them in the bank, so

24   he told his wife that she would be the one to deposit them

25   using her name, her maiden name, to endorse the back of the
                                                               39




1    checks.    This would allow them to take the money in without

2    Mellon's staff getting wise.    They wouldn't recognize the

3    name Cheri Pfister.    They wouldn't question Mellon about

4    these funds.

5               Now, this argument made Mr. Young very uneasy.       As

6    he told you:

7               "Mr. Edwards was a viable presidential candidate.

8    This was a truckload of money, much more money than had ever

9    flowed through our accounts; and getting my wife involved

10   and just the methodology, it just all seemed crazy.     It was

11   way, way, way over the limits for contributions to

12   candidates, and this was directed to help him maintain his

13   quest for the presidency."

14              And ladies and gentlemen, that's what this case is

15   all about:    Contributions designed to influence the

16   election, and they were way over the limit.     This is the

17   point of this case.

18              Mrs. Young wasn't easily convinced either.     She

19   had already had just about enough of John Edwards.      For

20   years, she had complained to her husband about John Edwards

21   and the demands of her husband as he worked for Mr. Edwards.

22   She was embarrassed by how willing her husband was to take

23   on menial tasks for Mr. Edwards and his family.    She felt,

24   quite rightly, that the Edwardses took advantage of her

25   husband.    But he did it willingly.   He sacrificed time with
                                                                 40




1    his family, and she wanted to be supportive, supportive even

2    though she felt alienated and lonely because of John

3    Edwards' looming presence in her marriage.

4                But this was different.    Now they were involving

5    her.   And it was so much money.      How could this be legal?

6    It was nearing the end of the second quarter of 2007.       Her

7    husband was frantically raising money for the John Edwards

8    Campaign.    The second quarterly report to the FEC had to

9    show lots of support for John Edwards.       The media would be

10   watching.    The other campaigns would be watching.

11               Mrs. Young told you that she could hear her

12   husband on the phone day after day pushing people to give

13   $50 more, $100 more, give to the limit, max out, give up to

14   $4,600.    So how could someone give hundreds of thousands of

15   dollars to help Mr. Edwards?    How could someone give

16   hundreds of thousands of dollars to make sure John Edwards'

17   campaign could continue?

18               Cheri Young, from outside the campaign, saw the

19   problem.    This was illegal.   So she put her foot down.

20   Andrew, I want to hear it from him myself, she said.      I want

21   to hear John Edwards tell me it's legal.       I want to hear

22   John Edwards explain to me how this is possible.      So Andrew

23   Young got John Edwards on the phone for about the fifth

24   time, and Mr. Edwards wasn't happy.

25               According to Mrs. Young, he was short and angry,
                                                               41




1    but he answered the question.   Mrs. Young told you what

2    Mr. Edwards said.   I heard John Edwards tell me on the

3    phone.   He checked with the campaign lawyers, she said.

4    This was not a campaign donation.   There was nothing

5    illegal.   Get the money in.   And he knew better.   But Cheri

6    and Andrew Young were protesting, and he had to get them

7    over this hump so he could tell them -- he told them

8    whatever he needed to to get them to agree.   So Cheri Young

9    gave in.

10              She gave in because she feared the campaign would

11   fall apart if she didn't.   She told you, we were at a peak

12   point, is what she called it; and if I didn't do this to

13   take care of this woman, the campaign was going down.     She

14   feared that all the work that she and her husband had done

15   for the Edwardses for so many years would all be lost.     She

16   was afraid of the effect on Mrs. Edwards if the news of the

17   affair came out as well.

18              So she took those first two checks, drove to the

19   bank in Chapel Hill, and sat in her car and tried to summon

20   up enough courage to go into the bank to deposit these

21   checks made out to Bryan Huffman, but put into her account.

22   Funny, no one said a word when she actually did it.     No one

23   asked any questions.   They deposited the checks, put the

24   money in her account, and thanked her for her business.        And

25   the checks kept coming, $10,000, 25,000, 65,000, 100,000,
                                                                42




1    150,000, 175,000, 200,000, $725,000 in all, and Cheri Young

2    was scared each time.

3                And sometimes the bank gave her a hard time.     When

4    she tried to deposit a check for $100,000, the bank

5    questioned her, and the banks in California simply wouldn't

6    take the checks.    They had to be sent back to Bryan Huffman

7    so he could deposit them for the Youngs, and he did that,

8    amazingly, at the drive-up window at his bank in Charlotte.

9                And as the money came in, the Youngs began to

10   provide support to Mrs. Hunter, the support John Edwards

11   told them to supply, the support needed to keep Hunter quiet

12   and allow the campaign to continue.       But they only gave her

13   a few thousand dollars a month.    John Edwards told them to

14   limit the money they gave her.    She had debts.     No need to

15   give her too much, or the money wouldn't last long.      Mr. and

16   Mrs. Young wrote, as you saw, $38,000 worth of checks and

17   deposited money into Ms. Hunter's account as Mr. Edwards

18   directed.    You saw the checks, and you saw the deposits into

19   her account.

20               And the plan worked pretty.    Plenty of money was

21   coming in.    Ms. Hunter was being supported.     The campaign

22   was underway.    John Edwards was focused on his strategy of

23   winning the Iowa Caucuses.    Hunter joined Mr. Edwards along

24   the campaign trail to continue the affair, and the media

25   didn't know anything, or so Mr. Edwards thought.
                                                              43




1               But the seeds of destruction that Mr. Edwards had

2    sown when he began his affair when he announced the

3    candidacy in Chapel Hill with Ms. Hunter in the audience,

4    and when he continued the affair to the point of getting Ms.

5    Hunter pregnant were growing all around him.     The media,

6    they're a persistent bunch.    They ask a lot of questions.

7    They don't give up easily, and somehow they suspected the

8    affair.

9               An article appeared in the New York Post on

10   August 27, 2007, but no one paid much attention.    It was

11   vague.    It didn't mention John Edwards.   It didn't mention

12   Rielle Hunter.    A small weed, no big deal.

13              But by September 27, it was more serious.    And

14   this is an interesting day.    You recall that we spent a good

15   deal of time talking about the campaign schedules, reviewing

16   John Davis' cell phone records, and showing you other

17   documents that revealed this chain of events.     On that day,

18   reporters for the National Inquirer located Rielle Hunter.

19   She was living with her friend, Mimi Hockman, in New Jersey.

20              You'll recall from the testimony of Nick Baldick

21   that Ms. Hockman was Ms. Hunter's business partner in a

22   company called Midline Groove.   That's the company that

23   produced all the videotape footage and the webisode.     Rielle

24   Hunter, unemployed, living off Bunny Mellon's money and

25   pregnant by John Edwards, was living there hiding from the
                                                                44




1    news media, but they found her.

2                According to the testimony of John Davis and the

3    schedules we reviewed, John Edwards was miles away in New

4    Hampshire on September 27.    He was campaigning in a state

5    which hosts the second primary contest, and he was only

6    three months away from the first contest, the Iowa Caucuses.

7    John Davis explained that on that day Mr. Edwards had made

8    the decision to take money from the Federal Election

9    Commission, taxpayer money, to fund his campaign, money he

10   needed to keep pace with his rivals, money he felt that

11   would give him enough steam to win the Iowa Caucuses and

12   push him to the front of the pack as the campaign moved on

13   to other states.

14               So that day on CNN he announced that he was taking

15   the taxpayers' money so he could win this election.    But as

16   he came off the campaign bus that day carrying John Davis'

17   cell phone, he got some bad news.    He took a call from

18   Rielle Hunter.    The media was camped out at Mimi's house.

19   They had found her.    "Are you showing?" he asked over the

20   phone as John Davis stood outside the door.     The plan was

21   falling apart.    The seeds of destruction had sprouted.    The

22   weeds were beginning to grow.

23               But John Edwards had a solution.   As always, he

24   turned to Andrew Young.    She'll come stay with you, Edwards

25   told him.    She'll fly there tonight, live with you for a
                                                                45




1    while.    This will all blow over.   This will prevent the

2    story from moving beyond the tabloid trash.      It will keep it

3    from affecting the campaign.    But they had to get past Cheri

4    Young again, and there wasn't much time.

5                Despite the fact that his wife had had medical

6    tests that day and was still wearing EEG wires on her head,

7    Andrew gave her little choice.     The media had discovered

8    Rielle.    She's got to get out of New Jersey.    She's got to

9    come here to stay with us for a while.      It's a gated

10   community.    No one can get in here.    No one will find her.

11   She's coming, Cheri.    And she did come.

12               By that night, Rielle Hunter was standing in the

13   entryway of the Youngs' home, happy, and doing a spin.       Here

14   I am, she said.    So Cheri Young tried to make Hunter

15   comfortable.    For the next couple of weeks, she allowed her

16   to live in the Youngs' home.    She took care of her, and she

17   paid her bills, and she stayed away from her home when John

18   Edwards wanted to come spend the afternoon with his

19   mistress.

20               And the plan worked.   The media seemed to lose

21   track of Ms. Hunter.    She was stashed quietly behind the

22   gates of the Governors Club, and the campaign went on.       The

23   plan worked well enough that Edwards and Young decided

24   Hunter should move into her own house in the neighborhood.

25   She would be safe behind the wall.      The Youngs would provide
                                                                46




1    the financial support using Bunny Mellon's money, and no one

2    would be the wiser; not even Mrs. Edwards, since she wasn't

3    speaking to Andrew and Cheri Young by now.    And the Youngs

4    could keep an eye on her, and they could keep her quiet.

5               So Andrew Young signed a one-year lease and moved

6    Hunter to her own home.    Hunter furnished it and equipped it

7    using Mrs. Mellon's money.    Cheri Young set up all the

8    utilities, and the Youngs got Hunter a credit card tied to

9    their American Express account using the name Jaya James,

10   the name Hunter selected.    And Cheri Young arranged for her

11   to see her own doctors and pay for her medical care, which

12   Ms. Hunter required, and it was paid for out of funds

13   provided by Mrs. Mellon using a cashier's check, and the

14   campaign went on.    But the weeds were growing.

15              In October, The National Enquirer gave the Edwards

16   Campaign a heads up about an article it was planning to run.

17   They were going to accuse Edwards of having an affair, but

18   Mr. Edwards wasn't worried.    He had Hunter hidden away.       He

19   had funds to take care of her, and it was easy to criticize

20   The National Enquirer.    Tabloid trash, he told everyone.

21   And he had the help of some of his closest advisors and

22   friends.

23              Besides Andrew and Cheri Young, Edwards was being

24   helped by his campaign finance chairman, Fred Baron, and his

25   wife, Lisa Blue.    Baron, a wealthy and successful Texas
                                                              47




1    attorney, was a staunch supporter of Mr. Edwards, having

2    been actively recruited in 2004 for his money and

3    connections, according to the testimony of Eileen Mancera.

4    He also had a private plane which Edwards often used to

5    travel and campaign.

6              Now, Baron had only met Hunter briefly for the

7    first time in Seattle in the summer of 2006 when John

8    Edwards visited with a group of trial lawyers.    You saw the

9    videotape where Fred meets Hunter for the first time.    But

10   by now Baron and his wife were interacting with her more.

11   They were helping to keep Hunter quiet, too.

12             Jennifer Palmieri told you that on October 6th,

13   John Edwards summoned her to a hotel room in Iowa.    When she

14   got there, she found a heated argument under way between

15   Elizabeth Edwards, Fred Baron, and Lisa Blue, and

16   Mrs. Edwards wanted answers.   She wanted to know why Fred

17   and Lisa were flying Hunter aboard their plane to California

18   for shopping sprees.   Baron and Blue explained that you keep

19   your friends close and your enemies closer.    Tending to

20   Hunter, Baron said, was important to protect the campaign,

21   the campaign whose finances he oversaw, the campaign to

22   elect candidate who amazingly sat silently in the face of

23   this argument.

24             The article ran in The National Enquirer.     Edwards

25   denied he was having an affair.   He criticized The National
                                                               48




1    Enquirer, continued the affair, and the campaign moved on.

2    The strategy worked.

3                According to Mark Kornblau, the traveling

4    spokesman for the campaign, efforts to keep the story out of

5    the mainstream media were successful, and Mr. Kornblau was

6    pretty proud of the work he himself did to accomplish that

7    goal.    But the weeds continued to grow.    The media didn't

8    give up.

9                In December of 2007, less than a month before the

10   Iowa Caucuses, as John Edwards worked day and night to win

11   that first key race, a very pregnant Rielle Hunter was

12   photographed near Raleigh by photographers from The National

13   Enquirer.    Hunter fled to the Youngs' home in the Governors

14   Club.    The photographers followed.

15               Young called Edwards to discuss what to do, and by

16   the next morning Edwards had a plan.    He called Andrew Young

17   while Young and his wife were shopping at PetSmart.     Knowing

18   Edwards as he had for a long time, Young told you he knew

19   something was coming.

20               Andrew Young told you he talked about this -- how

21   this was bigger than all of us.    He talked about how the

22   election started in a couple of weeks.      That he didn't think

23   that Iowans, where he was extremely popular, were going to

24   take a chance on a minority -- or nominating a minority or a

25   woman.    He talked about the key campaign issues, poverty,
                                                              49




1    getting our kids out of Iraq, health care.     He also talked

2    about that he didn't want Mrs. Edwards to die with this on

3    the front page of the newspapers.

4               But his closing statement was, you know, if we

5    give them something, something that the press will

6    understand, which is an affair between two staffers, which

7    is what he was proposing, then they'll go away.    And he

8    said, Andrew, they don't give an S-H-I-T about you; they

9    want me.    And he also said that he understood that this was

10   a big thing, but he assured us that it was going to be short

11   term.    All Young could remember saying in response was I

12   need to talk to my wife.

13              When Cheri Young came out of the store and got

14   into the car, she asked her husband what John Edwards wanted

15   on the phone.    That was a question she had asked hundreds of

16   times before.    But this time, the answer from her husband

17   was quite different.    He told her they'd talk about it in a

18   while.    Cheri Young pressed her husband.   Finally, he told

19   her John Edwards wants me to claim paternity for Rielle

20   Hunter's child, an unimaginable request, the kind of request

21   that can only be made by someone who, to quote John Edwards

22   from the Nightline interview, is self-centered and

23   egotistical and who believes that there will be no

24   consequences for their actions.

25              But what was even more amazing is Andrew Young was
                                                                 50




1    considering doing it, and Mrs. Young was furious.     The first

2    thought in my mind, she told you, was how in the world could

3    Mr. Edwards ask one more thing of me, of us.      I was mad.     I

4    was upset.    Of course, I said absolutely not.    Screamed at

5    him.   Cursed at him.   Picked up the food and left and didn't

6    speak another peep.

7                Later that day, Andrew sat down with Cheri and

8    made his pitch.    He told her what Mr. Edwards had said to

9    him earlier that day on the phone.     He repeated Mr. Edwards'

10   speech.    But she wasn't really listening.

11               But then there was a phone call, a call that

12   involved the Youngs, Rielle Hunter, and John Edwards.

13   According to Cheri Young, Mr. Edwards was trying to get

14   everyone on board, and Mr. Edwards made his pitch.       And she

15   said, so he started with the campaign.     This is it.   This is

16   our time.    We're doing great.   We've gotten this far.    The

17   story has been covered.    We can do this.    Just over and over

18   about the campaign, she said, as if it was good for our

19   country.    It's good for me.   That's what I worked for.    This

20   is what your family has devoted themselves to.

21               And he told them, it's a one-day story if you take

22   responsibility, Andrew.    Nobody cares.   Who cares about two

23   campaign staffers having an affair?     It will be a one-day

24   story.    And then he talked about Mrs. Edwards.    He reminded

25   them all that she was very ill.     He said she was going to
                                                               51




1    die soon, and he didn't want her to find out.

2                Mrs. Young began to think, and by the end of the

3    night she was the lone holdout.    Ms. Hunter had agreed.

4    Mr. Young had agreed.    Mr. Edwards was the one making the

5    pitch.   So it came down to Cheri Young.   And, as she told

6    you, she felt like everything had been dumped in my lap,

7    that everything -- everyone was on board but me and that I

8    didn't want the responsibility of knowing that because I

9    didn't go along with this, because I didn't want to try it,

10   that the campaign -- that the campaign would explode, and it

11   would be my fault, and I would have to live with that.      So I

12   ultimately agreed to go along with the lie.

13               So Cheri Young allowed her husband to publicly

14   claim paternity of John Edwards' child, and she agreed to

15   pick up her family, leave her home, and run away so that the

16   media couldn't prove the affair so that the campaign could

17   continue.

18               And as you heard, leaving her home was the second

19   part of Mr. Edwards' plan.    He instructed Young to call Fred

20   Baron and told Young that Baron would arrange for them to

21   fly out on a private plane so that they could get away from

22   the media.    Hide Ms. Hunter, who was obviously pregnant, and

23   allow Edwards to wrap up a victory in Iowa.

24               You saw the phone records showing the calls

25   between Young and Edwards and Young and Baron on that day.
                                                             52




1    And I'm going to ask Mr. Morgan to put the slide up,

2    Exhibit 773.

3              You will recall that we talked a lot about phone

4    analysis, and analysis of the calls, which are listed on

5    this exhibit, for December 14, 2007, involving phones that

6    testimony and exhibits showed are connected to Mr. Young,

7    Mr. Edwards, and Mr. Baron, showed that on that day, there

8    were five calls between Mr. Edwards and Mr. Young, and that

9    evening there were three calls between Mr. Young and

10   Mr. Baron as they were setting up the plan to get the Youngs

11   and Ms. Hunter out of North Carolina.    Mr. Young did call

12   Mr. Baron; and as he told you, Mr. Baron clearly understood

13   what the plan was.

14             And so in the early morning hours of December 18,

15   2007, Andrew and Cheri Young, along with Rielle Hunter, went

16   to the Youngs' wooded and dark property in Chapel Hill, left

17   their care, and met up with Tim Toben.    Mr. Toben, a donor

18   and supporter of John Edwards, had received a phone call the

19   day before from Andrew Young asking him to do a big favor

20   for the senator, and he told him he couldn't really explain

21   why the favor was necessary, but Young needed a ride to the

22   airport at 4 a.m.    So Toben obliged, and the group of four

23   drove to the Raleigh-Durham Airport where the Youngs and

24   Hunter hopped aboard a plane provided by Fred Baron and

25   began their three weeks of hotels, villas, luxury homes, and
                                                                53




1    private jets.    Fred kept them moving, and it wasn't cheap.

2               This wasn't a guy quietly helping out a friend who

3    was in trouble.    This was a full rescue operation rescuing a

4    presidential campaign teetering on the brink of huge success

5    or complete destruction, and money was no object.      And don't

6    forget, John Edwards was very grateful.    He called Toben

7    that afternoon to thank him for what he had done.

8               So a chartered, private plane arrived in Raleigh

9    to take the Youngs and Hunter to Florida.    Cost?     More than

10   $9,000.    They checked into the Westin Diplomat Resort in

11   Hollywood, Florida.    Cost?   More than $8,000.

12              And remember the bills weren't paid by Mr. Young,

13   Mrs. Young, or Ms. Hunter.     That wasn't possible.   Their

14   names couldn't be associated with any of these transactions

15   because that would be too easy for the media and press to

16   learn.    So everything was paid for by Mr. Baron directly,

17   and Andrew Young was told to use only cash.    Remember the

18   note Mr. Baron left for him at the front desk with $1,000,

19   Exhibit 275?    On Baron and Blue letterhead, Mr. Baron's law

20   firm, "Old Chinese saying, Andrew.    Use cash, not credit

21   cards."

22              And while they were in Florida, Mr. Young and

23   Ms. Hunter released their public statements falsely saying

24   that Young was the father of Hunter's child.       He was the

25   father of Mr. Edwards' child.
                                                                54




1              Next, the group moves on to Aspen, Colorado, for a

2    brief stay at Mr. Baron's luxury vacation home.   Cost of the

3    private flight more than $29,000.

4              Then they moved to the Loews Coronado Bay Hotel in

5    San Diego.   Cost of the private flight, nearly $15,000.

6    Cost of the hotel stay, more than $10,000.

7              Next, it's back to Aspen in a return visit to

8    Mr. Baron's vacation home.    Cost of the private flight, more

9    than $11,000.

10             And then back to California where the group

11   planned to stay for a while.    Cost of the private flight,

12   more than $15,000.    Cost of the hotel stay at the Four

13   Seasons Hotels, more than $25,000.

14             All these amounts are summarized in a chart which

15   is part of the indictment in Count One.

16             And, of course, John Edwards knew about this plan.

17   John Davis told you so.    You'll recall that while Mr. Davis,

18   John Edwards, and Fred Baron were traveling aboard

19   Mr. Baron's plane in Iowa campaigning for the Iowa Caucuses,

20   the three of them were sitting knee to knee.    Baron leans

21   over and tells Mr. Edwards not to worry about the issue of

22   Rielle Hunter.    According to Mr. Davis, quote, Fred started

23   talking about how the media wasn't going to be able to find

24   Rielle because he was -- they were moving her around,

25   Mr. Davis said.    It was at that point that Mr. Davis told
                                                             55




1    Mr. Baron to stop talking.

2              And, again, Mr. Edwards said nothing.    No

3    questions, no comments, no denial, no challenge, no nothing.

4    It was the same response he had given Josh Brumberger the

5    second time he had warned Mr. Edwards about the risk of an

6    affair, and it was the same reaction Jennifer Palmieri had

7    seen in that Iowa hotel room when Mrs. Edwards was

8    confronting the Barons.

9              Eventually, Mr. Baron settled the Youngs and a

10   very pregnant Rielle Hunter in California, far from the

11   political world Mr. Edwards was living in.    They were behind

12   the wall of a gated community where the media couldn't find

13   her.   She was being watched by the Youngs.   The Youngs were

14   paying her expenses out of Mrs. Mellon's money, and Fred

15   Baron paid $58,667 to move them into a mansion.   But that

16   was just the first month's rent and the security deposit.

17   The rental payments were going to be $20,000 per month.

18             Mr. Edwards knew very well what was going on.

19   Again, let's look at the phone records.   Mr. Morgan, if

20   you'd please put up Exhibit 764A.   Here we have a chart

21   showing contact between Mr. Young's cell phone, the 3105

22   number that we've talked about so much during the trial, and

23   Mr. Edwards' phone, the 0341 number.

24             Now, the defense woulds have us believe that,

25   despite the obvious benefit to his campaign, Mr. Edwards was
                                                                56




1    unaware of the scheme to hide Ms. Hunter and the affair from

2    the public, that Mr. Young came up with all of this on his

3    own.   But looking at the records between the time of the

4    Iowa Caucus and his withdrawal from the race, Mr. Edwards is

5    clearly in touch with Andrew Young or someone in the group

6    in California 63 times, and some of these calls lasted well

7    over an hour.   This is John Edwards trying to keep a lid on

8    the affair while trying to win the presidential primary

9    contest.

10              But as January wore on, the campaign faltered.

11   Edwards came in second in Iowa.   He didn't do well in New

12   Hampshire, Nevada, or in South Carolina, and by January 31,

13   2008, Mr. Edwards suspended his campaign.

14              But the plan had worked.   The affair and the

15   pregnancy had been kept quiet, and it allowed Mr. Edwards to

16   change his focus.   He still wanted to be a player on the

17   national scene.   If he couldn't be president, he would

18   settle for vice president or -- that position on the ticket;

19   and if that didn't work, he'd be glad to be the attorney

20   general, and ultimately he wanted a seat on the Supreme

21   Court.   Either way, he would get to play a big role in the

22   national stage, and his change of focus was immediate.

23              As Leo Hindery told you during his testimony, on

24   the night John Edwards finished second in the Iowa Caucuses,

25   Edwards directed him to make a deal with the Obama Campaign.
                                                              57




1    I'll get out of the race, Mr. Edwards told them through

2    Mr. Hindery, if you make me the vice presidential nominee.

3    That generous offer was politely declined.

4              Edwards tried again toward the end of January.        He

5    asked Hindery to contact the Obama Campaign again and tried

6    to make a deal.   I'll take the position of attorney general

7    in return for my support.    Again, the offer was declined.

8    But by this time Mr. Edwards, according to Mr. Hindery, had

9    opened up his own channels of communication to the Obama and

10   Clinton Campaigns.   He would deal with whichever candidate

11   could advance his ambitions.

12             In June, Edwards met with Andrew Young in

13   Washington, D.C., at the River Inn, and he talked about his

14   chances of becoming the vice presidential nominee.    When

15   former speech writer Wendy Button came in for her meeting

16   that same day, he talked with her, too, about his

17   opportunity to get on the ticket.

18             In that same month, Edwards, out of the blue,

19   invited Tim Toben to dinner.   They sat down to eat, and

20   Edwards immediately launched into a review of the latest

21   polls, and he made the point that he and Senator Obama would

22   make an unbeatable team.    Toben was shocked.   Knowing what

23   he knew, he couldn't believe that Mr. Edwards still

24   seriously thought he could run on the Democratic ticket, and

25   Toben let the Obama Campaign know that they should take the
                                                              58




1    rumors of infidelity seriously.   Don't write them off as

2    tabloid trash, he told them.

3              But Mr. Edwards kept pushing.    He went to Spain

4    and gave a speech, which was interpreted as a clear

5    statement that he didn't want to be vice president.

6    Realizing that the speech had been misunderstood, he

7    immediately asked Wendy Button to get word to the Obama

8    Campaign that he was still available.     He was still

9    interested.   He wanted to do whatever it took to help them

10   and to get on the ticket.

11             At the time of his Nightline interview, after

12   being caught in the Beverly Hilton, he still believed he

13   could be attorney general.   He talked to Jennifer Palmieri

14   about it, and she was amazed.   She told him that he would

15   never be the attorney general, not now, not with all the

16   lies and deceit, not after cheating on his wife.    Palmieri

17   told you, he was delusional.

18             John Edwards' quest to be president was what had

19   brought the Youngs and Rielle Hunter to California, but it

20   was his effort to become vice president or attorney general

21   or to play some other role on the national scene that kept

22   the scheme going after Mr. Edwards suspended his campaign in

23   late January of 2008.

24             Now, the defense has questioned a number of

25   witnesses about whether someone runs for the vice
                                                              59




1    presidential nomination or for attorney general, and, of

2    course, they don't.   There is no obligation to report your

3    interest in those positions to the FEC, but that doesn't

4    make the information irrelevant.    You have to understand

5    what John Edwards wanted in order to understand why the

6    scheme went on after he suspended his campaign, and you have

7    to understand what John Edwards wanted so that the defense

8    doesn't get away with suggesting that this was just all

9    about friends trying to help poor Andrew and poor Rielle.

10   You have to understand that the whole scheme was cooked up

11   to support John Edwards' political ambitions.

12             And so what had been promised as a short term

13   assignment now seemed to have no end, and the Youngs were

14   frustrated.   They were away from home.   There was no real

15   plan.   There seemed to be no way to end this charade.

16   Rielle was hard to live with, and Mr. Edwards wasn't in

17   contact with the Youngs much now.    They didn't know what was

18   going on, and John Edwards' daughter had been born.

19             So the Youngs went to Fred Baron.    In a couple of

20   meetings in Dallas, Fred Baron told the Youngs that they

21   couldn't go home.   They couldn't return to Chapel Hill.

22   John Edwards was going to be vice president, attorney

23   general, or something important.    You need to finish

24   building your home and sell it and go anywhere else.     What

25   we can't have is the Youngs and Ms. Hunter too near Edwards,
                                                              60




1    given the importance of the work he'd be doing in the

2    future.

3              So they waited to see if John Edwards would be the

4    Democratic nominee for vice president.     They waited to see

5    if he'd be selected as attorney general.     They waited to see

6    if he would finally tell the truth about the affair, the

7    child, the scheme to cover it all up.     They waited and they

8    waited.

9              Now, in all fairness, when the Youngs complained

10   to Mr. Baron in Dallas that they never heard from John

11   Edwards, Mr. Edwards did call.   Apparently, much like the

12   staff members from the campaign, Mr. Edwards reminded him to

13   call the Youngs to thank them for their dedication to his

14   cause, and he left them a message when they were in Mexico.

15             After the second meeting with Mr. Baron,

16   Mr. Edwards agreed to meet with Mr. Young at the River Inn.

17   Words were exchanged.   Tempers flared.    But as Young left

18   there, he was still willing to keep up the charade; and

19   Mr. Edwards, like he always had, promised to make sure

20   Andrew was taken care of, and he promised to stay in touch.

21             Now, for quite some time, Mr. Edwards had been

22   talking about a larger poverty center, a poverty foundation,

23   and he hoped to fund it with Bunny Mellon's money.    It would

24   provide him with a platform to travel, make speeches, and

25   lead the way on this issue, and Edwards and Young had
                                                               61




1    discussed it as a way to ensure that Andrew was taken care

2    of.

3               Edwards talked to lots of people about his idea.

4    Two, in particular, clearly remembered this plan.   At dinner

5    with Tim Toben and in talking with Wendy Button, Edwards

6    told them of his plans for a poverty foundation.    He told

7    Toben that Bunny Mellon would support this effort to the

8    tune of $50 million.   With Button, he wasn't as specific,

9    but he made it clear that Mellon would provide the financial

10   backing.   Of course, by the time that Andrew Young was ready

11   to publish his book, John Edwards had told both Toben and

12   Button that it was really Andrew Young's idea to steal this

13   money from Mrs. Mellon.   He had forgotten about those prior

14   conversations.

15              But during the spring and summer of 2008,

16   Mr. Edwards had spoken to Mrs. Mellon about the foundation.

17   He wanted her to provide funding, and he wanted to name it

18   after her father or grandfather, and he even asked Bryan

19   Huffman to sit on the board of directors, no doubt to ensure

20   Mrs. Mellon's continued support.

21              But when Andrew Young had suggested that she

22   donate 40 to $50 million, Mrs. Mellon got upset.    She

23   complained to Huffman, who let Andrew Young know she wasn't

24   happy.   Mr. Young was surprised.   He had called her

25   financial advisor, Mr. Starr, just as Mellon told him to do,
                                                                62




1    and Mr. Starr had been enthusiastic about the idea.

2               But Young passed the information along to

3    Mr. Edwards who called Mrs. Mellon to smooth things over.

4    He told her that he was not aware that Andrew Young had

5    called asking for so much money.      He didn't want her money

6    for the foundation.      When Mr. Huffman reported this

7    conversation from Mrs. Mellon's side, Mr. Young just

8    laughed.   Just call me Throw-Me-Under-The-Bus-Andrew, he

9    said.

10              And Edwards call with Mellon did smooth things

11   over, so much so that John Edwards went to see Mrs. Mellon

12   on August 16, 2008, after he was caught in California and

13   after he went on Nightline on August 8.      He went to see

14   Bunny to get a commitment from her about the poverty

15   foundation, and he was still willing to make sure that

16   Mr. Young was taken care of.      Listen to the recording from

17   Mr. Young's voice mail from the evening of August 12, 2008.

18       (Audio recording played.)

19              MR. HIGDON:    That's when we'll do our work,

20   including the work about you, and making sure you're, uh,

21   protected and included.      Keep your head up, pal.   You can do

22   this.

23              Here was the payoff for all the Youngs had done

24   for Mr. Edwards, and it was all going to be paid for with

25   Mrs. Mellon's money, just as Mr. Edwards planned, and just
                                                              63




1    as he explained to Tim Toben and Wendy Button.    But Alex

2    Forger stood in the way.

3               As Edwards cultivated Mrs. Mellon's support, he

4    didn't know that Forger had become suspicious about the

5    furniture business that Mellon and Bryan Huffman were

6    running.   Forger was aware of the bounced October 2007 check

7    for $150,000.   He became concerned when Mrs. Mellon wanted

8    to know how to spell 175,000 when writing a check in

9    November of 2007.

10              When he reviewed her personal checking account, he

11   realized that something was wrong.    Hundreds of thousands of

12   dollars going to Bryan Huffman for deposit into the account

13   of Cheri Pfister.    These could present tax consequences, and

14   they could be violations of the law.    Indeed, he'd had to

15   remind Mrs. Mellon of the rules as she wrote that $175,000

16   check.   He was concerned about the campaign finance laws.

17              In May of 2008, at an event in New York City,

18   Mr. Forger talked with Edwards and asked him only two

19   questions.   Do you know Bryan Huffman, and have you seen

20   Andrew Young lately?    Not enough to really let Mr. Edwards

21   know of his concerns, and Mr. Edwards wasn't slowed down

22   even a little bit.

23              But in July of 2008, everything changed.

24   Mr. Edwards went to the Hilton in Beverly Hills to see

25   Ms. Hunter and his newborn child, and photographers and
                                                             64




1    reporters were there, and they caught him.    Finally, the

2    event that would have destroyed his presidential campaign,

3    the event which the Edwards -- which Mr. Edwards, Mr. Young,

4    Mrs. Young, and Mr. Baron had worked so hard to avoid had

5    happened, and it was all over the news.    And who did John

6    Edwards call?   Andrew Young.

7             Mr. Morgan if you'd play Government's Exhibit 791.

8        (Recording, Government's Exhibit 791, played.)

9             MR. HIGDON:     While we're on this call, let me ask

10   you, who's in charge of this relationship?    Andrew Young or

11   John Edwards?   Do you really think that Andrew Young is the

12   one who's telling John Edwards what to do?    Just listen to

13   his voice.   Just listen to the words he chose, the deference

14   he showed to his boss.

15            John Edwards doesn't give up.     After this he goes

16   on television to tell the truth.    He explains that he had a

17   short affair with Ms. Hunter that happened while his wife's

18   cancer was in remission.    He denies the child could possibly

19   be his, and he points the finger at Andrew Young.   He denies

20   all knowledge about any money being used to support Hunter

21   and the baby.   I had nothing to do with any money being paid

22   and had no knowledge of any money being paid.    He said, I

23   have not talked to Fred about this.

24            We all now know that Mr. Edwards was lying

25   throughout that interview.    The affair was not a one time
                                                            65




1    thing.   The child is, in fact, John Edwards', and he knew

2    about the money and the effort to hide Hunter and the baby

3    based upon the testimony of Andrew Young, Cheri Young, John

4    Davis and Tim Toben.   And we can easily conclude that he was

5    not telling the truth when he said he hadn't been in touch

6    with Mr. Baron about the money, which was paid.

7              Mr. Morgan, if you would put up the slide showing

8    Exhibit 765A, 766A and 770.   These are exhibits that deal

9    with phone numbers, which testimony and exhibits show are

10   connected to John Edwards and Fred Baron.   You can see those

11   numbers on the screen, and when you deliberate, I urge you

12   to take a look at these three exhibits.   When you analyze

13   these exhibits for the days leading up to the Nightline

14   interview, you will see that in the three days before the

15   August 8 interview, Mr. Edwards and Mr. Baron called each

16   other 16 times, including a call on the very morning the

17   interview was taped.

18             And this pattern repeats itself around key events

19   in the summer of 2008.   For example, between July 22nd and

20   July 26, the days after Edwards is caught at the Beverly

21   Hilton, Edwards and Baron call each other 12 times.   And we

22   have Government's Exhibit 33T, the voice mail from Baron to

23   Young telling Young it's going to be a miserable three or

24   four days, but there's no evidence, so this thing goes away.

25   No evidence of what?
                                                              66




1              Between the Beverly Hilton incident and the

2    Nightline interview, a period of just about 17 days, there

3    are 67 calls between Baron and Edwards, just on the phone

4    numbers we know about.   And on the day before and after the

5    day -- excuse me, and on the day before and the day of the

6    car ride between Edwards and Young in Chapel Hill where

7    Edwards tells Young there'll be no foundation, there are

8    eight calls between Baron and Edwards.

9              So why does Edwards tell ABC News that he knows

10   nothing about Fred's involvement in the scheme to hide

11   Rielle and protect the campaign?   Surely these calls raise a

12   real inference that Edwards and Baron are talking about the

13   unraveling plan in these phone calls, and he lies to ABC,

14   because if he admits knowing about the scheme, which was

15   clearly for his benefit, he's admitting his guilt.

16             Now, after the ABC interview, things go downhill

17   pretty quickly.   In July and early August, Wendy Button,

18   Edwards' speechwriter who'd been working on his speech for

19   the Democratic National Convention, was told that Edwards

20   would not be speaking at the convention, and Mr. Forger was

21   back in the picture.

22             Like everyone else, he'd learned about the affair

23   and he was aware of the Nightline interview and that only

24   made him more concerned.   In early August, after the

25   interview, Mr. Forger called Bryan Huffman.   Huffman again
                                                                67




1    explained the process by which Mrs. Mellon had provided this

2    $725,000 to Mr. Edwards and that the money had been sent to

3    Huffman because Mrs. Mellon did not want to send the check

4    to Andrew Young.

5                After talking with Bryan Huffman about the

6    furniture business, Forger called Fred Baron, the national

7    fundraiser, for Mr. Edwards' campaign.    He told Baron of his

8    concerns and Baron immediately shifted the blame to Andrew

9    Young, and within the day, Edwards was on the phone with

10   Forger denying any knowledge which came from Mrs. Mellon --

11   of the money which came from Mrs. Mellon to support the

12   Youngs, Rielle Hunter or her baby.    And he said, Andrew

13   Young should pay the money back.

14               He abandoned his most loyal supporter and aid just

15   as Andrew had jokingly predicted when talking with Mr.

16   Huffman -- talking with Huffman, Edwards threw him under the

17   bus.   You heard Forger talk about that, and you heard

18   Mr. Moylan talk about that.    Immediately Edwards began

19   pointing the finger at Young, and it was pretty easy.      The

20   money was in Andrew's account.    Young had claimed paternity

21   publicly.    Young was isolated and Bunny would never

22   believe -- would always believe whatever John Edwards told

23   her.

24               So on a lonely road near Edwards' home in Chapel

25   Hill, Edwards made it clear he would do the driving this
                                                               68




1    time.    He told Young how hard things had been lately,

2    complained about his home life.    He told him the foundation

3    idea was dead.    Mrs. Mellon wouldn't provide the funds and,

4    therefore, he couldn't take care of Andrew as he'd always

5    promised, and then he turned to Young and said, that money

6    from Bunny, I didn't know anything about it.    Young knew it

7    was over.    The finger was pointing at him.

8                Now, let's talk a little bit about the charges in

9    this case.    As you know, Mr. Edwards is charged with six

10   violations of the federal campaign laws.    As Judge Eagles

11   has told you, he's charged with conspiracy to violate the

12   campaign finance laws; four charges dealing with the

13   acceptance and receipt of excessive campaign contributions

14   from Mrs. Mellon in 2007 and 2008, and from Mr. Baron also

15   in 2007 and 2008; and he's finally charged with false

16   statements in conjunction with the filing of the FEC reports

17   that should have revealed the illegal campaign contributions

18   from Mrs. Mellon and Mr. Baron.

19               Now, let's quickly look at each charge.   I'm going

20   to start with Count One, conspiracy, even though it's a

21   little bit later in your form.    In order to find the

22   defendant guilty of this charge, you have to find that the

23   government has proven three things beyond a reasonable

24   doubt:

25               First, you have to find that two or more people
                                                             69




1    joined into an unlawful agreement to violate the campaign

2    finance laws, and here the evidence is clear.    When

3    Mr. Edwards and Mr. Young decided to solicit Mrs. Mellon and

4    Mr. Baron to help hide Ms. Hunter from the media and prevent

5    damage to the campaign, they made the unlawful agreement the

6    law prohibits.    And Mr. Baron joined that agreement when he

7    agreed to begin moving Hunter and the Youngs around the

8    country to hide them from the media to avoid damage to the

9    campaign.

10               Secondly, you have to find that the defendant

11   knowingly and wilfully became a member of the conspiracy.

12   Here the evidence clearly shows that Mr. Edwards was well

13   aware of the campaign finance rules, and he'd applied them

14   and used them for years in the various federal campaigns

15   he'd run.    He regularly raised money from donors and could

16   talk to them knowledgeably about the rules when he asked

17   them to include their spouses and grown children and when he

18   asked them to max out.

19               And when he and Young decided to approach

20   Mrs. Mellon, John Edwards was the one who told Young to tell

21   her that it was for a personal matter, so as not to violate

22   the campaign finance rules.    Mr. Edwards knew enough about

23   the campaign finance rules to create a scheme to try to work

24   around those rules, and the scheme that was created itself,

25   is evidence of the knowing and wilful violation of the law.
                                                              70




1                The scheme to move the money from Mrs. Mellon to

2    Bryan Huffman to Cheri Young was designed to accomplish

3    several goals.    It was designed to keep the affair quiet so

4    the public wouldn't find out.    It was designed to make sure

5    the funds were kept away from the campaign, which would have

6    to report it, and it was designed to take in enough money to

7    support and hide Hunter without the limits imposed by those

8    government restrictions.

9                And the same is true when he contacted Fred Baron

10   and the scheme to move the Youngs and Hunter was developed.

11   He clearly knew what the law required and he chose a course

12   with the intent -- a course of conduct with the intent to do

13   what the law forbids.

14               And, ladies and gentlemen, he admitted he knew

15   about it.    He admitted it to Wendy Button when the two of

16   them were working on a draft statement during the summer of

17   2009.   He told her that he had known about the monies that

18   Fred and others had provided at that -- at the time it was

19   happening.    He knew what they were doing but, of course, he

20   tried to run away from it by saying he didn't approve of all

21   the ways it happened.

22               Now, the third thing you have to find when

23   considering the conspiracy charge is that someone in the

24   conspiracy committed at least one overt act in furtherance

25   of the illegal agreement, and that one act was committed in
                                                               71




1    the Middle District of North Carolina.    And you will see 14

2    examples listed in the indictment.    You've heard evidence

3    about each of these events, and you can easily conclude that

4    all of them did occur.    And, as you know, much of the

5    evidence showing the agreement, and how it was carried out,

6    shows that it was -- it occurred here in the Middle

7    District.

8                Much of the plan was set up here with phone calls

9    during which at least one person was in the Chapel Hill

10   area.   Mrs. Mellon's checks were sent here, and most of them

11   were deposited here, so venue seems to be clearly

12   established.

13               Now, for Counts Two through Five, the elements are

14   the same as to those four.    These counts are divided this

15   way because the statute with which we're dealing determines

16   criminal activity based upon the calendar year, so

17   Mr. Edwards is accused of receiving illegal campaign

18   contributions from Mrs. Mellon in 2007, the charge for the

19   money Mrs. Mellon gave Mr. Edwards in 2008, the charge for

20   the money Mr. Baron spent in 2007 and a charge for the money

21   Mr. Baron spent in 2008.

22               As Judge Eagles will explain it, you have to find

23   the following things beyond a reasonable doubt:

24               First, you must find that Mr. Edwards was a

25   candidate for federal office during the time period charged.
                                                                72




1    And there's really no question about that.    All the

2    witnesses agree on that and the parties.    Mr. Edwards and

3    the government have stipulated that he was a candidate for

4    president during the charged time period.

5               Second, you have to find that Mr. Edwards accepted

6    or received a contribution from a person totaling in excess

7    of the $23,000 [sic] limit with respect to the primary or

8    general election.    And here -- excuse me, it has to total up

9    to $25,000, and here you have to look at why the

10   contributions were given.    The question is whether the

11   monies that Mr. Mellon gave -- that Mrs. Mellon gave was

12   given for the purpose of influencing a federal election, and

13   they clearly were.

14              Mrs. Mellon made her intentions quite clear.     She

15   made them clear whenever she spoke to friends, family and

16   staff.    She made them clear when she spoke with Mr. Forger.

17   She made them clear when she gave more than $6 million to

18   Mr. Edwards' various organizations.    She made it clear when

19   she wrote Mr. Young in April of 2007 because of the haircut

20   mess.    She made it clear when she wrote her checks and

21   talked with Mr. Young and Mr. Huffman, and Mrs. Mellon made

22   her intentions clear when Mr. Forger and others found out

23   about the checks that she was writing.    She wanted John

24   Edwards to be elected president, and she was willing to work

25   around those pesky government restrictions to get him
                                                             73




1    elected.

2                The same is true in Counts Four and Five with

3    respect to Mr. Baron, and Mr. Baron's actions are equally

4    telling.    He really began helping Mr. Edwards deal with

5    Ms. Hunter at least a couple of months before the December

6    plan to move the Youngs and Ms. Hunter out of North

7    Carolina.    And the argument which Jennifer Palmieri

8    witnessed in the hotel room in Iowa in October of 2007,

9    Mr. Baron made it quite clear that Rielle Hunter was

10   unpredictable and that the friendship he and his wife and

11   developed with her was designed to insure she didn't start

12   talking to the media.    And then, just two months later,

13   Mr. Baron begins to lay out tens of thousands of dollars to

14   cover for Mr. Edwards in the run-up to the Iowa Caucuses.

15   And he told Mr. Edwards that the media wouldn't be able to

16   find Ms. Hunter because he was moving her around.

17               Clearly Mr. Baron, like Ms. Mellon, was willing to

18   do whatever it took to get Mr. Edwards elected, and in both

19   case, their monies were given with the intention of

20   influencing a federal election.    You must find that the

21   monies that were given by Mrs. Mellon and Mr. Baron totaled

22   more than $25,000 in 2007 and in 2008, depending upon the

23   year listed in the appropriate counts.

24               For Mrs. Mellon, she wrote all her checks in 2007

25   except the one for $200,000.    So in 2007 she gave $525,000,
                                                              74




1    and in 2008 she gave 200,000.    That's for both of the years,

2    Mrs. Mellon was many times over the $2,300 limit and well

3    over the $25,000 requirement.    Likewise, Mr. Baron gave

4    substantial amounts in 2007 and 2008.    All you have to do is

5    look at the chart contained in the conspiracy count of the

6    indictment to total up Mr. Baron's amounts for each of the

7    two years, and you'll find that they exceed the legal limit

8    by a long shot.

9               And, finally, you must find that the defendant

10   acting knowingly and wilfully.    Here, again, the evidence is

11   clear.   Mr. Edwards certainly was well versed in the

12   campaign finance laws and the limits they imposed on

13   individual donors.   He suggested a manner of working around

14   those limits when it came to Mrs. Mellon, and he relied on

15   the way the scheme was set up in order to avoid detection.

16   He clearly knew the law, and he decided to violate it in

17   order to salvage his campaign.

18              Now, you also have to find that some portion of

19   the crimes related to Counts Two through Five took place

20   here in the Middle District, and the evidence supports that

21   finding.   As to Mrs. Mellon's money in 2007, it was all

22   received and deposited here in the Middle District.     And as

23   to the checks, which were deposited in 2008, they were

24   received initially here in the Middle District by Federal

25   Express, and they were part of the plan which had been
                                                               75




1    developed in 2007.

2               As for Mr. Baron, venue is based on the phone

3    conversations between Mr. Baron and Mr. Young.   You'll

4    recall that Mr. Young was in his home in Chapel Hill when he

5    spoke to Mr. Baron about moving his family and Ms. Hunter

6    out of the state, and it is from here that they left that

7    early December morning when Tim Toben met them to drive them

8    to the airport.

9               Now, finally, you have to consider Count Six.

10   Count Six is based on the idea that because every candidate

11   has an obligation to report all of the contributions he

12   receives and all the money he spends, the failure to

13   disclose the monies, so that they can be included in the

14   report and disclosed to the Federal Election Commission,

15   means that the reports from the campaign are incomplete and

16   false and constitute a false statement under the law.

17              Here, we must prove beyond a reasonable doubt that

18   the defendant knowingly concealed or covered up the

19   contribution by trick, scheme or device, as described in the

20   indictment.   Here, the defendant and other members of the

21   conspiracy constructed a pretty elaborate system to get

22   Mrs. Mellon's money to the Young so that Hunter could be

23   taken care of and kept quiet, and Mr. Baron's support was

24   offered in a secretive way, so as to insure the same kind of

25   silence.
                                                              76




1               And the defendant was aware of and encouraged both

2    donors.    He talk with Mrs. Mellon beforehand, and the scheme

3    was developed, and he talked with Baron and Young to arrange

4    the escape from North Carolina and the scheme to hide Hunter

5    around the country.    He listened to Mr. Baron on the plane

6    with John Davis as Baron assured him that the plan was

7    working.

8               Next, you must find that the person from whom the

9    fact was concealed, here, the treasurer of Mr. Edwards'

10   campaign, had a legal duty to disclose the information and

11   that the defendant knew that, and here the analysis is

12   pretty simple.    Because the monies that Mrs. Mellon and

13   Mr. Baron provided were for the purpose of influencing a

14   federal election, they are contributions under the law and,

15   therefore, as we've discussed, they must be reported to the

16   Federal Election Commission.

17              And as you heard Ms. Haggard testify, it was the

18   campaign treasurer's responsibility to report all

19   contributions to the FEC.    Mr. Edwards was well versed in

20   the campaign reporting process when it came to the Federal

21   Election Commission and the reporting of contributions and

22   expenditures.    He participated in that process for a long

23   time, and he'd been burned by it.    This is how the whole

24   haircut issue got started.

25              Next, you have to find that the facts concealed,
                                                                77




1    that is the donations by Mellon and Baron, was material to

2    the Federal Election Commission, and here the word material

3    means something that has the effect of influencing the

4    action of the FEC, and that's pretty clear as well.

5              The FEC regulates the manner in which campaigns

6    are run and the role of the money in the campaign, as you

7    heard from Patricia Young, is at the center of what they do.

8    It is why they require these reports.    It's why they review

9    these reports, and these reports are the FEC's chief method

10   of informing the media and the public about the influences

11   on each candidate.   And the failure of the defendant to

12   report Mrs. Mellon's and Mr. Baron's money goes to the heart

13   of the FEC's ability do its job.

14             And, finally, you have to find that the matter

15   involved was within the jurisdiction of the executive branch

16   of the United States, and both parties agree and have

17   stipulated to that element.    And as with other counts, you

18   have to determine that some portion of the crime took place

19   here in the Middle District.    And Lora Haggard clearly

20   answered that question for us when she told you that the

21   reports were filed from the campaign's Chapel Hill office.

22             Those are the elements that you have to find as to

23   each count in order to convict, and we believe that

24   overwhelming evidence, as Mr. Harbach predicted for you on

25   the day that this case began, has been presented which would
                                                               78




1    allow you to convict on each of these counts.

2              And before I sit down, I want to quickly cover

3    some of the issues which the defense has raised in its

4    opening statement and its cross-examination of the

5    witnesses.   First, let's talk about Andrew Young.   From the

6    beginning of this trial, defense counsel have been trying to

7    make this case about Mr. Young rather than about

8    Mr. Edwards.   They noted that if they can focus you on

9    Mr. Young and if they can convince you that Mr. Young is the

10   instigator of this scheme, then you're unlikely to convict

11   Mr. Edwards, and they've spent days trying to make Mr. Young

12   look like a liar and a thief.

13             But you'll recall in his opening statement

14   Mr. Harbach told you that you'd dislike Mr. Young.   He told

15   that you Mr. Young had done a lot of things wrong and his

16   hands weren't clean.   Mr. Harbach was right, but let's take

17   a careful look at Mr. Young.    Andrew Young came into this

18   courtroom, sat in that witness stand, head bowed, nervous

19   and ashamed about all the things he'd done as a part of this

20   case, but he looked you in the eye, he told you the story

21   and he took everything Mr. Lowell had to offer.

22             He admitted to committing a crime.    He said he

23   knew when Mr. Edwards asked him to put Bunny Mellon's money

24   into his account and take care of Hunter that he was

25   breaking the campaign finance laws, and his wife essentially
                                                              79




1    said the same thing.

2              He told you that he agreed to falsely claim

3    paternity for a child he didn't father and for an affair he

4    didn't have.    In doing that, he humiliated himself and his

5    wife.   He told you that he took his family on the run when

6    the media had got too close, another pretty shameful piece

7    of information.

8              And he told you he kept Bunny Mellon's money when

9    the scheme fell apart after Mr. Edwards was caught at the

10   Beverly Hilton.    He should have given it back.   He should

11   never have had it.    He admitted it.   It's been plowed into

12   his house.

13             Let me pause right here for a moment.     The defense

14   spent hours cross-examining both Mrs. and Mrs. Young about

15   their finances, even after they admitted that they kept

16   hundreds of thousands of dollars of Mrs. Mellon's money, and

17   the defense put on an expert witness to go over the very

18   same thing.

19             But what the expert, Mr. Walsh, told you was very

20   interesting.    He told you that the Youngs started into this

21   whole mess with something around a million dollars in their

22   own accounts.    They were hardly the destitute money grubbers

23   the defense described; but, nevertheless, the Youngs

24   admitted that they took money they shouldn't have.    We all

25   agree on that, but let's talk about the money for just a
                                                               80




1    minute.

2                The defense has focused on the money which went

3    through the Youngs' accounts.    First there's the $300,000

4    Mr. Baron sent to the Youngs' builder.    Based on the

5    testimony you've heard, it's clear that this money was

6    designed to help the Youngs quickly complete their house and

7    move away from North Carolina.

8                There is no question the Youngs didn't tell

9    Mr. Baron about the monies from Bunny Mellon, and they

10   should have, but it was John Edwards to told Andrew Young to

11   keep that information to himself.    Fred is the short-term

12   solution.    Bunny is the long-term solution, Mr. Edwards

13   said.   And Mr. Baron did help out in the short-term.     When

14   things got hot, he moved the Youngs and Hunter out of North

15   Carolina, and he spent thousand and thousand and thousands

16   of dollars to accomplish that mission.    But none of that

17   money went through the Youngs' accounts.    In fact, as we

18   discussed earlier, that was a key part of the plan.

19               But it's the long-term solution that's the problem

20   for the Youngs.    It's the source of all the money in their

21   account, and as the plan was first envisioned, Mr. Edwards

22   intended to use Mrs. Mellon's $725,000 to hide Ms. Hunter

23   and conceal the affair and pregnancy until the election was

24   over and until his wife passed away.

25               But things didn't go as first thought.
                                                                81




1    Mercifully, Mrs. Edwards survived for quite a while, and

2    Mr. Edwards' political ambitions lived beyond the end of his

3    presidential campaign as he tried to maneuver to become vice

4    president or attorney general, and the money was available

5    to hide and take care of Hunter until the summer of 2008.

6    That's when the plan fell apart.

7               First, the Youngs couldn't stand to live with

8    Ms. Hunter any longer.    To keep them happy, and Mrs. Hunter

9    quiet, Mr. Baron moved Hunter to another house in California

10   and then Edwards got caught at the Beverly Hilton in late

11   July.    It was at that point that the plan came to an end.

12   It was at that point that the Youngs came home and, shortly

13   thereafter, Mr. Edwards turned on them.

14              They found themselves on the defense with people

15   making all kinds of accusations about them.    Mr. Young

16   needed to finish his home.    He had no job and nowhere to

17   run.    When he met with Leo Hindery months later, he was a

18   broken man with no job prospects and no way to support his

19   family, and he didn't return what was left of Mrs. Mellon's

20   money.    He should have, but he didn't, and I think you can

21   understand why.

22              But Mr. Young did far more, as you know, than just

23   these things.    His mistakes cover a lot of other ground,

24   too.    He should never have pledged his undying support for

25   John Edwards, or any other politician, in 1998 when he saw
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1    him speak at the trial lawyers event.    He should never have

2    sacrificed time with his young family just to meet John

3    Edwards' ever need and whim.    He should never have let the

4    Edwardses use him as a gopher or personal servant.   He

5    should have had more self respect.    He should never have

6    started drinking because of the stress associated with the

7    demands on his time placed by Mr. Edwards.

8              He should never have stormed out of the house on

9    his anniversary and left his crying wife to wonder if he was

10   coming back all because of John Edwards.    He should never

11   have moved closer to the Edwardses so that he could be even

12   more indispensable to them.    When he learned Mr. Edwards was

13   so reckless as to have an affair while running for

14   president, he should have confronted Mr. Edwards as Josh

15   Brumberger did, or quit the campaign like Peter Scher did,

16   or drop his support like Tim Toben did.

17             He shouldn't have continued helping Mr. Edwards

18   fool the voters.   When the media came calling, he should

19   never have agreed to help Mr. Edwards hide and support

20   Rielle Hunter.   He should have told Mr. Edwards no when he

21   asked him to find a donor who could provide support for

22   Ms. Hunter.   He should have refused to get involved with

23   Mrs. Mellon's checks.   He should have told Edwards no when

24   he asked that Hunter move in with the Youngs and when

25   Edwards made them leave their home, so he could visit with
                                                                83




1    Hunter.

2                He should have said no when Edwards asked him to

3    claim paternity. How could he even ask his wife to allow

4    such a thing?    He should have refused Mr. Edwards' and

5    Mr. Baron's demands that they leave their home, go on the

6    run and hide Ms. Hunter and the baby, and he had no business

7    volunteering to make up a lie when Edwards was caught in

8    California.

9                But, ladies and gentlemen, Andrew Young is not the

10   manipulating mastermind that the defense would have you

11   believe.    In their opening statement they argued to you that

12   it was John Edwards who was being manipulated by Andrew

13   Young.    It was John Edwards who had no choice but to do what

14   Andrew Young wanted him to do because Andrew Young had the

15   dirt on Mr. Edwards.    That's simply an unbelievable

16   argument.

17               Just listen to Andrew Young talking on the phone

18   with John Edwards when Edwards was caught in the Beverly

19   Hilton on July -- in July of 2008 if you want to know who's

20   in charge.    It's Andrew Young begging to help the boss, even

21   after all the boss had put him through.

22               When you analyze the facts of this case, when you

23   follow the money as the defense suggested you do, you can

24   easily conclude that John Edwards is the one who was really

25   benefiting from all of this.    It was John Edwards'
                                                             84




1    irresponsible actions that caused all this.    It was John

2    Edwards' affair which jeopardized the campaign.   It was John

3    Edwards' mistress who the media was chasing.    It was John

4    Edwards whose campaign would be destroyed if the affair

5    became public.    It was John Edwards who benefited if the

6    secret was kept.

7              I finally -- finally I want to talk to you about

8    Mr. Edwards' desire to hide the affair and the pregnancy

9    from his wife and how that should factor into your decision.

10   The defense has tried to leave you with the impression that

11   if you find that Mr. Edwards was motivated by any reason in

12   addition to the protection of his campaign, you must acquit

13   him, but that is not the law.

14             Judge Eagles will remind you that people rarely

15   act with a single purpose in mind.    There is no question

16   that no one wants their spouse to learn of an extramarital

17   affair, but the evidence in this case clearly demonstrates

18   that John Edwards' primary reason for taking these

19   contributions and hiding his mistress from the public, was

20   to prevent damage to his campaign.

21             His wife already knew about the affair when Mrs.

22   Mellon's checks started coming in.    His wife had already

23   been involved in the conversations in October in the Iowa

24   hotel room, and there are simpler ways to hide an affair

25   from your wife.    The affair had been going on for months
                                                              85




1    before the Mellon and Baron monies started rolling in.    But

2    in mid-2007, the scheme was necessary because the election

3    season was heating up.   He was just a few months away from

4    Iowa, and he couldn't talk any chances.

5              The media was more focused and paying more and

6    more attention to him, and by the fall of 2007, Ms. Hunter

7    was running from the media.   They had stalked her in New

8    Jersey, they had photographed her in Raleigh and the

9    elections were fast approaching.   Therefore, Mr. Edwards

10   accepted and received the monies from Mrs. Mellon and Mr.

11   Baron and he accepted those monies because of his campaign,

12   and that's why there is a violation of the law.

13             And last, ladies and gentlemen, you may recall

14   that several of the defense witnesses talked about John

15   Edwards' platform and his speeches around the country.

16   Repeatedly those witnesses in response to questions about

17   Mr. Edwards' agenda talked about two Americas, to use

18   Mr. Edwards' political catchphrase.   He talked about the two

19   Americas, one of those with money, power and influence, and

20   the other with little money, little power, and little

21   influence.   The campaign finance laws are designed to insure

22   that those two Americas are brought together at election

23   time.   The campaign finance laws are designed to limit the

24   influence that the first America has on the second America,

25   and John Edwards forgot his own rhetoric.
                                                                 86




1                He had no problem dividing the two Americas when

2    it suited his purpose.      He had no problem allowing hundreds

3    of thousand of dollars of illegal campaign money into his

4    campaign.    He had no problem trying to hide important

5    information about his supporters and the amount of money

6    they'd given to him when it suited his needs, and that can't

7    happen under our election laws.

8                And so, ladies and gentlemen, I ask you, as you

9    deliberate, and as you apply those laws to John Edwards,

10   that you find him guilty of all counts in the indictment.

11   Thank you.

12               Thank you, Your Honor.

13               THE COURT:    All right, ladies and gentlemen, I'll

14   give you your morning break and excuse you to the jury room.

15   Please remember not to discuss the case or form any opinion.

16   Leave everything in your chairs, and we'll bring you back

17   out in about 15 minutes for the defense argument.

18       (The jury departed the courtroom at 11:08 a.m.)

19               THE COURT:    Mr. Lowell, if your argument can take

20   us to, you know 12:30, around in there, that should work out

21   pretty well.

22               MR. LOWELL:    I clocked the government at 90

23   minutes; is that right?

24               THE COURT:    Maybe a couple minutes shy; but, yeah,

25   right around in there.
                                                                   87




1               MR. LOWELL:    I'd like to set up with your

2    permission.

3               THE COURT:    Yes, absolutely.     Anything else we

4    need to do before we take a short break?         All right.   We'll

5    take a 15-minute recess.

6        (The Court recessed at 11:09 a.m.)

7        (The Court was called to order at 11:23 a.m.)

8        (The defendant was present.)

9               THE COURT:    Anything we need do before the jury

10   comes?    No?   All set up?   All right.    Bring the jury in.

11       (The jury returned to the courtroom at 11:23 a.m.)

12              THE COURT:    Okay.    I meant to move that TV -- that

13   screen right there in the jury box because it's blocking my

14   view of some of the jurors, and I forgot to do it at the

15   recess.   Yeah, that's better.      Thank you.    Can you get the

16   stuff off the -- all right.       Good.   I like to be able to see

17   you in case you're telling me that you can't see or hear.

18              All right.    I believe we're ready to proceed with

19   defense closing argument.        I've asked Mr. Lowell to take us

20   to somewhere between 12:30 and 12:40.        We'll take a lunch

21   break about that time, and then we'll come back and he'll

22   finish his argument after lunch.        All right.   Go ahead.

23              MR. LOWELL:    May it please the Court, counsel,

24   John, Mr. and Mrs. Edwards, and ladies and gentlemen.         This

25   is a case that should define the difference between somebody
                                                             88




1    committing a wrong and someone committing a crime; someone

2    committing an offense against his wife and his family and

3    committing an offense against the U.S. government; and the

4    difference between a sin and a felony.

5             John Edwards has already pleaded guilty to the

6    wrong, to the offense against his family, and to his sins,

7    and he's going to serve a life sentence for all of those,

8    but he has pleaded not guilty to the charges brought by the

9    United States Government, because as many are his moral

10   wrongs, he has not committed a legal one.

11            There have been two books prominently displayed in

12   this courtroom during the last four weeks on the various

13   tables if you noticed.    One is the Holy Bible, the other are

14   the criminal laws.   These two books have never been on the

15   same table.   They were never together, and I think that's a

16   good visual image for you to have in your heads as you view

17   the evidence in this case.

18            In fact, if I could, I would ask that you take two

19   forms into the jury room.    On the first, it would not take

20   you long to vote and to agree that John was a bad husband,

21   someone who lied to his family and the public about his

22   affair and its results.    And on the other, the one that

23   you'll take, the one on the law, it should not take you much

24   longer to agree that there is not the remotest chance that

25   John did or intended to violate any federal campaign laws,
                                                               89




1    let alone federal felonies, for trying desperately to hide

2    an affair from his wife and his family and anyone else, as

3    people who have affairs do.

4                Now, Mr. Harbach said in his opening, and

5    Mr. Higdon in closing, that the prosecution was not going to

6    make the case about John's moral conduct, about John being

7    that bad husband, but that's not what happened in the

8    courtroom.    How many of their witnesses had anything to say

9    about whether John or anyone else thought that there were

10   campaign laws that applied to hiding a mistress?   Instead,

11   they called Josh Brumberger, Jeff Harris, Peter Scher, Nick

12   Baldick, Jennifer Palmieri, Christina Reynolds and Matthew

13   Nelson for little more than, did John lie to you about his

14   affair?   Were they in hotel rooms?   Did Rielle and he travel

15   together?    Did he cuss at you when you brought it up?

16               If you focus on the affair, you may not focus on

17   the actual campaign law charges in this case, and if what

18   John did is a federal crime, let alone six felonies, then we

19   better build a lot more courtrooms, hire a lot more

20   prosecutors and build a lot more jails, because the

21   government will always be able to find a way to turn an

22   affair into a crime.

23               Another thing I'd like to start off with, john

24   lied about his affair to keep it a secret in 2006, 2007,

25   2008, 2009 and straight through to the beginning of 2010
                                                             90




1    when he finally admitted that Quinn was his daughter.   But

2    the prosecutors want you to take one time period from when

3    Mrs. Hunter was -- Ms. Hunter was pregnant, to the time John

4    ended his campaign, and say that was the purpose of the

5    lies.   It was for the election.   The fact that he continued

6    to try to keep it out of the media long after January of

7    2008 tells you that's not the case.    This was not for the

8    purpose of influencing an election.

9              And one more issue to raise with you first.     As

10   you consider the evidence, consider how much of the

11   government's burden, beyond a reasonable doubt, on each

12   element of each charge, depends on what Andrew Young says.

13   Mr. Higdon spent a good deal of time telling you a story.

14   This happened, this happened, John said this, somebody said

15   that, then this happened.    And he told that story as if it

16   was completely divorced from the mouth of Andrew Young.

17             You are the judges of who to believe and

18   disbelieve in this case.    Judge Eagles to going to tell you

19   that you're the sole judges of that, and she's going to give

20   you a number of instructions how to weigh witnesses'

21   credibility and especially the ones about a witness's bias,

22   motive to lie, manner, connections to a party and how a

23   witness will be affected by the outcome of the case.

24             And she's going instruct you even more to consider

25   a witness's inconsistent statements, and with a cooperator
                                                               91




1    like Andrew Young, she's going to tell you to examine his

2    testimony with greater care, caution and attention.    So let

3    me ask you this:    It's three weeks from now, and you're in

4    Greensboro walking down the street.    You run into Andrew

5    Young.   After an awkward moment or two, he offers you a

6    proposal.    He says, if you'll give him $1,000 for the week,

7    he'll return it to you with double of your money.

8                Or after a bad storm you're riding down the

9    street, you see a bridge that has had the weather affected,

10   and there's Andrew Young standing in front of the bridge.

11   You're in the car with your family, and you say, what about

12   the bridge?    And he says, completely safe, drive your family

13   on through.    Would you rely on his word for one of those

14   important decisions in your own life?    But that's what the

15   government is asking you to do in this courtroom for their

16   case.

17               For their case there are specific charges the

18   prosecutors have to prove beyond a reasonable doubt.

19   Mr. Higdon went through them and I agree.    There are four

20   campaign count charges, Counts Two, Three, Four and Five.

21   The government has to prove each beyond a reasonable doubt

22   that the payments were campaign contributions, that they

23   occurred in what is the Middle District of North Carolina,

24   and the judge will tell you that list, that John knew that

25   the payments would be covered by federal election laws,
                                                             92




1    that's the phrase, knowingly, that John knowingly and

2    wilfully violated that federal election law, and that's as

3    to the substantive counts.

4              In addition, there's Count Six, false FEC reports,

5    and for that the government has to prove beyond a reasonable

6    doubt that the payments were the campaign contributions or

7    else they wouldn't have to be on the form, that John knew

8    that they needed to be on the reports filed by the FEC and

9    that John caused what would be campaign contributions to be

10   omitted from those forms by trick, scheme or device; and,

11   finally, as in all the counts, that John took these actions

12   knowingly and wilfully to violate the law.

13             And then finally as to the conspiracy count, the

14   government has to prove beyond a reasonable doubt, that John

15   and another person made an illegal agreement to break the

16   federal campaign laws by causing either excessive campaign

17   contributions or causing an FEC report; that the payments

18   were actually campaign contributions; that John or another

19   person took an overt act to promote that illegal purpose;

20   and that John knowingly and wilfully violated the federal

21   election law.

22             With that said, I want to show you the clear paths

23   to the not guilty verdicts in this case for which we will

24   ask.   You will see first that the payments were not campaign

25   contributions.   You will see next that John did not
                                                              93




1    knowingly and wilfully violate any campaign laws in carrying

2    out his affair.    You will see that it was good faith for

3    John not to think of any such payments as campaign

4    contributions.    You will see there was no illegal agreement

5    or conspiracy between John, Rachel Mellon or Fred Baron.

6               You will see Rachel Mellon's December 2007 and

7    January 2008 checks were not deposited by the Youngs in the

8    Middle District of North Carolina, and the Judge will give

9    you an instruction on how to apply that issue.    You will see

10   that Rachel Mellon's December '07 and January '08 checks

11   were not deposited by the Youngs until after the campaign

12   ended, and you will see that Fred Baron's funds were not

13   paid in the Middle District of North Carolina.    And,

14   finally, you will see that judge -- I'm sorry, John, did not

15   cause any false reports to be filed with the FEC.    One more.

16   The only person who says anything to the contrary is Andrew

17   Young.

18              I am going to divide my argument with you today in

19   two parts.   One I'll do now and take us to the lunch break,

20   and in the next part, I will finish, so let me start as

21   follows:

22              There have been 388 government exhibits, 100 from

23   us, hundreds of emails, checks and documents that you have

24   seen entered into evidence, 24 government exhibit -- 24

25   government witnesses and a handful from us; and, of course,
                                                              94




1    you can review any of that and all of that for as long as

2    you'd like.   But if you'd like to find one way to decide

3    this entire case in the most direct path possible, Judge

4    Eagles is about to give you that path.

5             It is not about adding up all the times Andrew

6    Young lied.   You're going to run out of paper in your

7    notebooks to do that.   It is not to figure out how much

8    money Andrew and Cheri Young kept.   You'd need a calculator

9    to do that.   Every one of the six felony counts that have

10   been brought against John has a high burden of proof.    The

11   government has to prove the elements that we have put out,

12   Mr. Higdon has told you about, but they also have to prove

13   beyond reasonable doubt a specific intent that John had.

14            And as Judge Eagles is going to instruct you, that

15   means that he acted intentionally, not out of ignorance,

16   mistake, accident or carelessness, and that he acted with

17   the knowledge that his course of conduct was unlawful and

18   with the intent to do something that the law forbids.    She's

19   also going to instruct you that the wilfully part of the

20   law's requirements that the government proves beyond a

21   reasonable doubt requires even more and requires proof

22   beyond reasonable doubt that Mr. Edwards acted with a bad

23   purpose to disobey or to disregard the law rather than in

24   good faith.

25            So if you want a path out of all the boxes of
                                                               95




1    evidence, out of the hotel rooms, out of the secret cell

2    phones that Mr. Edwards used to talk to Rielle Hunter

3    without Mrs. Edwards, who you heard monitored the phone

4    bills of the campaign staff, ever finding out, out of the

5    way of the credit cards for baby furniture and the like, you

6    can go right to that element.

7              And what is the evidence that John knew that

8    anything he was doing to hide the affair could be governed

9    by federal campaign laws, let alone that the affair could

10   violate those laws, or that he would not be in good faith to

11   believe otherwise?    Sure, he knew there was a $2,300 limit

12   when somebody wrote a check to the John Edwards for

13   President Campaign.    That is what the witnesses said.

14             But the prosecution wants you to take that one

15   piece of campaign regulation knowledge out of what FEC

16   Chairman Scott Thomas said were 120 pages of law, 360

17   regulations and 1,000 advisory opinions.    The one piece of

18   knowledge that almost anybody in politics has is the $2,300

19   limit or whenever that limit's changed.    Prosecutors want

20   you to then take that and apply it to his knowing that a

21   third party paying for a mistress could be a campaign

22   contribution, that it was intended to be that, and that

23   knowing that, John wilfully and deliberately decided to have

24   the people go over that limit because they all knew there

25   was a contribution.    And these things the government could
                                                                96




1    never prove, under any standard, let alone proof beyond

2    reasonable doubt, because these things weren't on anyone's

3    radar screen at the time.

4              You don't have to be a campaign law expert to know

5    this.   Your common sense can help through the evidence.

6    Affairs, mistresses, pregnancies, OB-GYN's, as opposed to

7    campaign ads, brochures, rallies as campaign contributions

8    to influence the election?    But beyond your own common

9    sense, there's actual testimony in the case.     Every campaign

10   official, with any knowledge of the rules, Josh Brumberger,

11   who was chief of staff, Nick Baldick, who was that and also

12   a senior advisor, Eileen Mancera, who was the actual finance

13   chair of the campaign, and Lora Haggard, the person in

14   charge of the very reports at issue in this case.

15             Among them, with more than a 100 years of federal

16   campaign law experience, all of them said that the topic of

17   how a third party paying the personal expenses of another

18   third party relationship to an affair would never have come

19   up in a conversation manual, training session that they ever

20   had among themselves and certainly never with John.

21             And who does the government rely on on this

22   critical piece of evidence?

23             THE COURT:   Excuse me, I apologize.   Are the

24   screens bothering you all?    A couple of the jurors are

25   indicating that the screen being on is being distracting to
                                                                 97




1    them, so I don't know --

2             MR. LOWELL:    There's going to be some slides and

3    exhibits, Your Honor, so --

4             THE COURT:    Okay.    Was something up there or was

5    it just blue?

6               A VOICE:   I'll take care of it.

7             MR. LOWELL:    Okay.     Thank you.

8             THE COURT:    Okay.    Thank you.     I apologize for

9    interrupting.

10            MR. LOWELL:    No, please, I'm sorry.

11            THE COURT:    Go ahead.

12            MR. LOWELL:    So who did the government rely on for

13   this critical piece of evidence, that is the make and break

14   of their case, that is Mr. Edwards' purposeful violation of

15   campaign laws?    Andrew Young.    But remember the only thing

16   he said on that subject, he said that he had four calls and

17   one meeting with John in which the subject of getting funds

18   to hide the affair came up, and Cheri Young said that she

19   overheard one of those conversations.

20            First, I hope, that when that happened, you

21   noticed that even these two, who could shame Bonnie and

22   Clyde, had not worked hard enough to get this part of their

23   story straight.   He said, all of this happened before they

24   got the first Mellon check.     She said, there was a call and

25   not a last meeting, and it happened between the first check
                                                              98




1    and when she was frozen in fear in a bank parking lot,

2    shaking for more than a hour.

3             And, of course, the timing does not work for that

4    to have occurred, because if you recall, the government

5    presented you their exhibit 549, was a Federal Express

6    package which showed that Mr. Huffman forwarded those checks

7    on June the 14th, for overnight delivery on June the 15th

8    and only arrived therefore on the 15th, the date of the

9    deposit slip.   And then the government showed you the

10   deposit slip on the 15th and indicated that the time of

11   the deposit was around noon in the day.   For all Andrew and

12   Cheri Young said happened, four calls and a meeting, car

13   rides, last minute call with Mr. Edwards being overheard.

14   That didn't happen in the possibility between the FedEx

15   happening and two hours later.

16            But, even if you credit that, what did they say

17   Mr. Edwards had done and what he had said?   They said that

18   Mr. Edwards -- and he said this, he had consulted with

19   several campaign finance experts and that they said that

20   there were no prohibitions of this type of personal gift,

21   and even according to Andrew and Cheri, that it only meant

22   he, John, only mentioned gift taxes.   Understand what that

23   means.

24            And that was also the testimony of Wendy Button,

25   who when she said John was talking to her not then in '07,
                                                               99




1    not in '08, but a year later in '09, said that he had

2    lawyers and others and that they all concurred that these

3    payments were not any violation of campaign laws, and you

4    met one of those lawyers, Wade Smith, and you heard about

5    the other, Jim Cooney.

6             So here's the prosecutor's problem.     If you credit

7    the testimony of their star witness, he's very clear that

8    John said there was no legal violation, and that means he

9    certainly did not have any intent to violate the law.     He

10   did not enter into a legal conspiracy.    He did not decide

11   that he knew the laws and wanted to violate their limits.

12   But if you don't believe Andrew Young that he had that

13   conversation, then that leaves the prosecution with no

14   evidence on this issue.   Either way, cannot overcome their

15   burden to show this knowing, wilful violation of the law

16   beyond a reasonable doubt.

17            So what did Mr. Higdon just do?     First, he wants

18   you to believe that Andrew Young -- that this conversation

19   between him and John happened.    Then he wants you to believe

20   that John actually said that.    Then he wants you to believe

21   that John actually meant the opposite, that he thought it

22   was not legal but that it was illegal and, then, they want

23   that possibility and that chain to be their evidence.

24            Judge Eagles is going to remind you about

25   reasonable doubt, but this much is clear.    Whenever a
                                                              100




1    prosecutor asks you to take a statement that was never made

2    to begin with, and then conclude that the speaker must have

3    meant the opposite of what the statement says, and then that

4    it happened not just once, but five times according to

5    Andrew Young, and then the prosecutor is forced to ask the

6    witness, wasn't that a possibility as happened, that is the

7    definition of reasonable doubt.

8              And just so that we're as clear on the record as

9    we can be, recall that Andrew Young wrote in two books that,

10   quote, these were perfectly proper and not subject to

11   campaign finance laws and made the same statement on

12   television.   But then when he needed to help the government

13   with its case, he came up with that new story about four

14   calls and a meeting and about being scared and about doing

15   it anyway.

16             Do you remember when that happened?      I asked him,

17   why didn't you say that to the government the first time you

18   met them in November of '08?      Why didn't you say that to the

19   time you met with the FBI in February of '09?      Why didn't

20   you say it in your preparation for the grand jury session in

21   June of 2009?   And if you recall, I asked him, weren't you

22   in the grand jury for five or six hours and he said no, no,

23   no, it was seven.   Why didn't you say it there?    Remember

24   what he said?   I don't recall.    And then on top of that I

25   asked him, did you check with anyone else after this alleged
                                                             101




1    conversation between John and you occurred?    And he said,

2    no, sir, not until later.

3              I asked him that question, ladies and gentlemen,

4    because I knew that he had lied to you here, but also

5    because I knew he had just lied about what he had previously

6    told the prosecutors right before the indictment, and that

7    was the point of the stipulation we entered with the

8    government.   That was the point of Stipulation No. 5, where

9    we read to you that in a March 31st, 2011, interview,

10   Mr. Young was interviewed by the government and that there

11   was an agent named Mr. Riley who took notes and that

12   Mr. Young, on that occasion, said that he was concerned

13   about accepting excessive campaign contributions and then

14   said, my fears were alleviated by asking John, and then he

15   made up other attorneys.    And then to Mr. Riley he said

16   those attorneys were David Kirby, Fred Baron and then he

17   threw in Lisa Blue.   You didn't hear that on the stand.

18             The point, of course, is that at any time Andrew

19   Young will just make up whatever he wants and the government

20   will build their case on him.    So much of their case, and

21   the things they need to prove beyond a reasonable doubt,

22   comes out of his mouth and his mouth alone.    So when that

23   occurs, each time it occurs, they're piling up reasonable

24   doubt on top of reasonable doubt and on top of reasonable

25   doubt.
                                                             102




1                Faced with that, faced with having to convince you

2    through the morass of Andrew Young, they've come up with a

3    new argument.    They claim that you could find that John had

4    the required proof beyond reasonable doubt and the required

5    knowledge and intent because he was trying to avoid having

6    knowledge and intent.    I want you to stop and consider that.

7    In the indictment they charged John had the requisite

8    knowledge and purposefulness to violate the law.

9                You will hear Judge Eagles instruct you that they

10   are going to ask you to find guilt based on John taking

11   steps not to find out, not to have that purposeful attempt.

12   Where do they go for that evidence?    Again, Andrew Young.

13   This time, though, you can laugh out loud about the

14   evidence.    Young said that John said he was not supposed to

15   know about any of this from the beginning because, again,

16   Mr. Edwards said from the beginning that he wasn't supposed

17   to know about any of this, in case he had to be sworn in for

18   attorney general.

19               What the prosecutors are going to hope that you

20   will do, and I am asking you not to do, is to confuse John

21   lying about his affair, on the many occasions he did, with

22   what Andrew Young makes up here.    Christina Reynolds and

23   Matthew Nelson particularly told you about those terrible

24   confrontations that John and Mrs. Edwards would have and how

25   John tried to avoid those events.    Lying to avoid those
                                                            103




1    events is not trying to avoid finding out about the campaign

2    laws.

3               And as to the in case he was sworn in as attorney

4    general, he wanted to be kept from the facts, according to

5    Mr. Young, in case he was to be sworn in as attorney

6    general.   As my daughters would say, really?   In the midst

7    of running for president, eight months before the first

8    primary occurred, John is telling Young that he needs to be

9    kept from knowledge of where Rielle Hunter is because he's

10   worried that a year later, after a democrat wins the

11   presidency, and John survives the vetting process that

12   ignores all the media reports about his affair, the

13   president would nevertheless nominate him.   And as John was

14   being sworn in, and he was worried that when he put his hand

15   on the Bible and swore that he would support and defend the

16   Constitution of America, that the chief justice was going to

17   look at him and say, oh, by the way, Mr. Almost Attorney

18   General, did you have an affair with Rielle Hunter?    Is the

19   baby yours?   Did you stay at the Coronado Hotel?

20              Yet that's what Andrew Young made up, and that's

21   what our government sponsors as testimony beyond a

22   reasonable doubt.   John's conduct in this affair and what he

23   did is shameful, but it's human.   Andrew Young's lies on the

24   stand and the government sponsoring those lies is worse.

25              Did you think it was necessary for the prosecutors
                                                               104




1    to have you hear the testimony about Mrs. Edwards at the

2    airplane hangar?    Was that to show that John knew the

3    campaign laws?    Was it to show that he wanted to violate

4    them?   Was it to show how he desperately wanted to violate

5    them and continue and win an election at any cost?     Did it

6    show that he was in the midst of creating a criminal scheme,

7    or was it just to make you dislike him even more?

8              But in doing that awful thing, the prosecutors

9    made our point.    What John was consciously avoiding was not

10   the law, but his wife, who he had damaged and damaged and

11   damaged and had her own way of dealing with those events.

12   And as to John's good faith belief about the law, Judge

13   Eagles will instruct you that if he had such a good faith

14   belief, that his conduct was not a violation, that he did

15   not act knowingly and wilfully.

16             And on this point, ladies and gentlemen, you were

17   given the most important evidence by the witnesses who could

18   tell you the most.    The people who actually deal with the

19   issue of contributions and campaign reports.    John Edwards

20   for President Campaign controller and CFO Lora Haggard and

21   former federal election commissioner Scott Thomas.

22             Remember Lora Haggard, 12 years of FECA

23   experience.   She was an in-house controller for the

24   Democratic Party.    She was the controller in the 2004 John

25   Edwards campaign.    She was the consultant for a
                                                            105




1    congressional candidate.   She worked for the One America

2    Committee.   She was a compliance consultant and an

3    accountant for Citizens for a Strong Senate.    She was the

4    CFO and compliance officer appointed by the treasurer of the

5    2008 campaign, and she filed all of the reports, even to the

6    latest one on April of 2012.

7              And you heard about Scott Thomas, 37 years with

8    experience in federal election law, beginning as an intern

9    at the FEC in the office of the general counsel as a

10   commissioner, serving for chairperson on four separate

11   occasions and now head of that practice at a private law

12   firm.   And on this important critical case deciding point,

13   what did they say?   Mrs. Haggard said that her view as to

14   why these were not included in the reports that she solely

15   was involved with was because they were not campaign

16   contributions and did not need to be reported.

17             And what did Mr. Thomas tell you?    In 37 years of

18   experience, including as chairman of the FEC, that topic of

19   how a third party payment to another third party for the

20   personal expenses associated with an affair could ever be

21   covered by the campaign laws.

22             So permit me go back to the issue that matters.

23   Specific intent to break the campaign laws and deliberating

24   accepting campaign contributions.   Another path out of the

25   hotel rooms, the details about the affair is to focus on
                                                            106




1    that issue of contributions.    Each and every count in this

2    case that the government has to prove beyond a reasonable

3    doubt is that the funds that Mrs. Mellon forwarded, and the

4    expenses that Mr. Baron paid in the specific period of time,

5    in the specific period of time that John was a candidate,

6    was -- John was running for president; not when he was

7    thinking or others were thinking about him running for vice

8    president, not when others were thinking that he might be

9    considered in a cabinet post, that each of those payments

10   during the time he was running for president were campaign

11   contributions.    Because if they were not, or even more to

12   the point if he acted in good faith belief and, therefore,

13   was not knowingly and wilfully violating the law, then each

14   count of this case fails.

15             When you started this case, you may have thought

16   it was a case charging that John had his campaign committee,

17   the John Edwards for Campaign Committee, use its own funds

18   for his affair.    If you remember, towards the end of the

19   case, the prosecutor showed you this email between one of

20   the attorneys, Jim Cooney, and Mr. Forger with a copy to

21   Mr. Smith from whom you heard, and that's exactly what that

22   email said.

23             They said the issue was whether campaign funds

24   were illegally used; not that a third party friend, paying

25   for the affair with a mistress, could actually be a
                                                             107




1    contribution.    But now after you've heard so, so much, you

2    know what the case is not about.    What the charges are not.

3    You now know that no money was solicited and paid to the

4    John Edwards for President Campaign or any PACs or other

5    campaign or political organizations.    None of that money in

6    this case.

7              That no money, not a single penny, was used for

8    any hotel, rent, airplane ride or even the Youngs' hot tub

9    or a Cabo vacation.    None of it came from the campaign or

10   federal matching funds.    No money, not a single penny of the

11   campaign's funds, were used for the affair.

12             Mr. Higdon sort of slid over this when he said to

13   you that Ms. Hunter was hired to be a videographer, but if

14   you recall the sequence, that occurred not from the John

15   Edwards for President Campaign.    And no money, not a single

16   penny, was used for a campaign add, button, sticker,

17   brochure, yard sign or campaign office, and no money, not a

18   single penny, went to John.

19             There are, as the Judge has told you, and will

20   tell you again, a few ways that people can make campaign

21   contributions.    We're almost used to the one where somebody

22   asks from a campaign that you either write a check or use

23   your credit card to make the campaign contribution directly

24   to the campaign.    That's not what's charged in this case.

25             The other two ways when a person can make a
                                                             108




1    payment, not to the campaign itself but for a campaign

2    purpose or activity, for what is either a personal expense

3    of the candidate or for some coordinated activity for the

4    purposes of influencing an election.   Those are what's

5    charged in this case in the various counts, so let me start

6    with that issue.

7               Judge Eagles will instruct you, and you saw the

8    government's exhibit when the FEC wrote to the campaign

9    asking for additional information, that the letter sent from

10   the FEC asking questions to the campaign was whether

11   something was a contribution, that it then defined as if it

12   was for the purpose of influencing the election.

13              The instruction that you're going to hear on the

14   subject will explain that, and what it will explain is as

15   follows:   If a donor would have made the gift or payment

16   notwithstanding the election, it does not become a

17   contribution merely because the gift or payment might have

18   had some impact on the election.

19              Nor does it become a contribution just because the

20   donor knew it might have some influence on the election and

21   found that acceptable.   If the donor's real purpose was

22   personal, for example, if the real purpose was not to

23   influence the election, then it is not a campaign

24   contribution.

25              Judge Eagles will tell you something even more and
                                                               109




1    will tell you that even if it is not possible to determine

2    what the purpose was, then -- beyond a reasonable doubt,

3    then you have to find Mr. Edwards not guilty.

4                So as with all other parts of the case, you can

5    use your commonsense when considering the evidence and

6    conclude that none of these funds were campaign

7    contributions, that is, for the purpose of influencing an

8    election.

9                Recall I asked FBI agent Craig Garey who was on

10   the stand to review all the records that he had done for the

11   government.    And I asked if any of those included expenses

12   that went to campaign activities like ads, brochures,

13   rallies, campaign travel, and he said no to each one.

14               And then when you consider, please consider the

15   campaign manuals that Lora Haggard identified for you,

16   Exhibit 3.    Not only do they not mention anything like a

17   third party to third party payment as she confirmed, they

18   even have in there sections -- if you remember I asked

19   her -- in-kind contributions, to put people on notice what

20   they were.    And remember the manual says what are not

21   in-kind contributions and has a category that says,

22   transportation and living expenses for campaign staff would

23   not be an in-kind contribution.

24               So consider this:   If it is not a contribution

25   when campaign staff members travel and lodging is paid for
                                                              110




1    as part of a campaign, how on earth is it a campaign

2    contribution if the travel and lodging is for a mistress?

3              And as to John's acting knowingly and wilfully to

4    violate the rules, recall this:   People with the most

5    experience, Lora Haggard and Chairman Thomas, said these are

6    dense, complex and complicated laws and include hundreds of

7    rules and regulations and advisory opinions.   Ms. Haggard

8    went further and told you that the FEC often changes the

9    rules in the middle of the game and that you do not know

10   what the rule is until after that occurs.

11             And every witness you heard from, whoever had any

12   experience with this area of the law, said that the topic of

13   how such a third party payment to another third party, not

14   to John, third party to a third party, concerning the issues

15   of a mistress and an affair, would ever come up as being a

16   contribution.   So how can the government prove to you,

17   beyond reasonable doubt, that John acted with the knowledge,

18   intent and purposefulness required to do something that the

19   law violates if no one else, with far more experience than

20   he had, had ever heard that possibility exists?

21             And how would it not be in good faith?   Even if he

22   knew everything that Andrew Young testified to on the stand,

23   if he knew every single fact, how could it be not in good

24   faith to believe that people who help him with an affair

25   could be violating the campaign law when, as I said, the
                                                             111




1    people in the campaigns with the most experience said the

2    topic had never come up.

3              And how can it be that the government can prove

4    beyond a reasonable doubt that the purpose of what you had

5    heard was for the purpose of just influencing the election;

6    not friendship, not to help personally, not to promote John

7    to be vice president, not president, not to promote John to

8    be attorney general or not just, as Alex Forger said,

9    anything John wanted to do.

10             To ask these questions, just answer them.     It

11   cannot be proof beyond a reasonable doubt to conclude that

12   these were contributions.   John thought of them that way,

13   knew they would violate the law by asking, if he did,

14   anybody to help him and purposely decided to do so, and that

15   flaw on contributions affects Counts Two through Five, which

16   are the substantive campaign counts; also Count One on

17   conspiracy; and also Count Six, because if it's not a

18   contribution, there's no limits, there's no illegal

19   agreement, there's no requirement to report it.

20             You know, the point of us calling Lora Haggard and

21   Chairman Thomas was to refocus the case on the issues that

22   matter, the campaign issues; not the affair.   We kept our

23   case as short as possible, not to prolong it a day longer,

24   to try to focus on what the case was supposed to be about.

25   And when we did that, Lora Haggard told you something very
                                                             112




1    important.   She was in charge of filling out the FEC forms.

2    She told you two extraordinary and case ending things, and I

3    hope you remember.

4             First, she said that John was not involved in the

5    decision about what was reported on the forms; not then and

6    not after.   She said that she never saw him review them or

7    never got any input from him and that she said that she has

8    known of these payments from at least the time of the

9    indictment and has, if you remember, filed five different

10   FEC forms after that, and on none of them she made the

11   decision, on her own, not to include the Mellon or Baron

12   payments on any of them.

13            She said she did this because, in her experience,

14   with the responsibility that she has to do it right, she did

15   not see them as contributions.   She did not think she could

16   put them on the form.   In fact, she said that if she put

17   them on one part of the form, it would then violate another

18   part of the law, because campaigns aren't supposed to pay

19   for a mistress.

20            You can have no doubt, therefore, based on what

21   you heard.   Even if we had the burden of proof, you could

22   have no doubt that if Lora Haggard had known every fact that

23   Andrew Young said happened, every single fact, she would

24   have not put them on the forms in 2007.   She would have not

25   put them on the forms in 2008, and you know that because she
                                                               113




1    hasn't done it in 2009, 2010, 2011 and 2012.

2              Were that not enough, Ms. Haggard told you one

3    more thing.   She said that these payments were not just

4    known to her but by the FEC auditors with whom she was

5    having some engagement.    Theses were the people that did the

6    audit.   You saw that it took years.   It was mandatory

7    because of the campaign, and Mr. Thomas told you that these

8    auditors are experienced and thorough.    And then Ms. Haggard

9    told you that her decision not to include these as campaign

10   contributions, even after the indictment, was never

11   questioned by those auditors and that in their final review

12   of the campaign, the campaign was not found to have received

13   excessive contributions.

14             So this, too, is the quickest path out of the mess

15   that this case has created.    If Ms. Haggard and the FEC

16   auditors did that, how does the prosecutor expect you to

17   find beyond a reasonable doubt the opposite, or beyond

18   reasonable doubt that even considering the issue, had John

19   stopped and thought about it and decided I'm doing this

20   anyway, it would have not been in good faith for him to

21   conclude that these didn't need to be included, that they

22   were not contributions?    Not in the evidence here.

23             Let me go one by one through the people that you

24   have heard the government address to you, and count by

25   count, so that you will see that the government has not and
                                                           114




1    cannot use argument to replace evidence beyond a reasonable

2    doubt.

3             Let me start with Rielle Hunter.    The prosecutor's

4    theory of what makes these campaign contributions is this:

5    Ms. Hunter, who was having an affair with John, was a moment

6    away at any time in the campaign of going to the press and

7    revealing the affair.   Her doing so, to use Mr. Higdon's

8    words, would be a disaster.   And so, the money that was

9    spent on her was to keep her from doing that.   And so, after

10   the fact, it can then be called a contribution because it

11   had that purpose of, therefore, influencing the election.

12   For this, too, they rely on Andrew Young.

13            He says, she would often threaten to go public,

14   but he could not answer my questions about how going to the

15   press would help insure Ms. Hunter that she might have a

16   continuing relationship with John, or how that would be good

17   for her baby and her desire that John be part of Quinn's

18   life as he was with his late son Wade and the kids, Emma and

19   Jack he cares for today.

20            And he certainly could not answer the question

21   that if this was supposed to be hush money for her, how did

22   she only get 38,000 of it in the year in which John was

23   running for office and Mr. and Mrs. Young kept the rest?

24   And how did anyone believe that his job was to keep her

25   quiet with that, when she always had a cell phone, and she
                                                             115




1    always had the ability to use it?

2             You know, Andrew Young, if you recall, agreed that

3    others knew about the affair and might be the source, not

4    Rielle, might be the source of anonymous press leaks.

5    Mr. Higdon told you about one.   But then he made a startling

6    admission on the stand.   He said, and admitted in this

7    courtroom, that he was talking to The National Enquirer.      So

8    the prosecutor set up the argument that it was Ms. Hunter

9    who spoke to the press.   They have no proof of that, but

10   then they completely ignore that their star witness, who

11   they gave immunity to, and who has paid no taxes on a

12   million dollars, is the only evidence you heard of anybody

13   talking to The National Enquirer.

14            Mr. Higdon said to consider what Mr. Baron or

15   Ms. Blue said in Davenport, Iowa, and that event certainly

16   happened, but they must hope that you're going to ignore

17   what was going on that day.   Mrs. Edwards was appropriately

18   very upset about the press about the affair and had a

19   suspicion that John still had not told the truth.   She was

20   angry that Mr. Baron and Ms. Blue had befriended Ms. Hunter,

21   and she was emotional.

22            I think you'll recall Mr. Hickman, who's known the

23   Edwardses for some time, even used the phrase that on these

24   occasions she could be volcanic.    No doubt, if you had been

25   in that room, you'd be as uncomfortable as the others were
                                                                116




1    and probably want to get out as fast as you could; and, yes,

2    Mr. Baron may have said, or Ms. Blue may have said, exactly

3    the words that Ms. Palmieri remembered that happened.

4                But Ms. Palmieri said something else.    At the

5    time, in the beginning of October of 2007, she,

6    Mrs. Edwards, John, and the others knew, and I'm talking

7    about early October, the people in the best position knew

8    that the campaign had little hopes of success.      What was

9    going on that day was not about that.     Was not -- to use her

10   words, it was not about forwarding the campaign, but

11   remember what she said?     It was to get out with the family's

12   dignity intact.    That's not a campaign purpose.    It is the

13   opposite.    It's something much more important to

14   Mrs. Edwards and to John.     It's about public humiliation.

15               And that was just one example of what I think is

16   an unfair thing that happened in this court from time to

17   time.   Whether deliberately or not, the witnesses or the

18   prosecutors confused the sequence of events.     They --

19               THE COURT:   Can counsel approach, please.

20       (The following proceedings were had at the bench by the

21   Court and Counsel out of the hearing of the jury:)

22               THE COURT:   Just be really careful that you do not

23   impugn the integrity of opposing counsel.     If you do it

24   again, I'm going to have to come down.     That's not the first

25   time you've done it, so just be real careful.
                                                              117




1               MR. LOWELL:    I understand your rule now.   I didn't

2    know --

3               THE COURT:    I hadn't made that rule up.

4        (End of bench conference.)

5               MR. LOWELL:    It's important to get the sequence

6    right.    Sometimes these events were lumped together, so the

7    time in Davenport, Iowa, in early October blends with the

8    calls or meetings with the second National Enquirer in

9    December, and then the plane ride with Mr. Baron and

10   Mr. Davis, and then with events around the ABC Nightline

11   interview in the summer of 2008, as if it was one continuous

12   event.

13              I hope you noticed that sometimes when we got up

14   to ask questions, our role was to unwind those events into

15   their natural sequence.     I am sure that often when we asked

16   questions you wondered why the question was being asked, and

17   closing argument is not a bad place to explain it.

18              One reason, for example, that I needed to point

19   out to Leo Hindery that he got the date and place wrong

20   about the Martin Luther King speech, that he so forcefully

21   remembered on direct examination, was not to embarrass him,

22   but it's to show that four and a half years after events,

23   sometimes people get the timing wrong and the sequence

24   wrong.

25              And so this is a good time to come back to a
                                                               118




1    guiding principle of criminal trials in our country, and

2    that is the burden of proof.    To really find out what

3    Ms. Hunter was doing and not doing, what she was threatening

4    or not threatening, and what the facts were.    The government

5    could have called her to the stand, and I suppose you wanted

6    to see her and hear from her.    I know everybody out there

7    did.

8              But they did not, and when Mr. Harbach comes back,

9    I'm sure he will say that the defense could have called her

10   as well, but that's where the burden of proof comes in.

11   That's where it matters, when Judge Eagles has told you that

12   the defense has no burden to prove anything.    Doesn't have

13   to call a single witness, that that instruction matters.

14   This is such a case.

15             So what was the real evidence about people's

16   intent and reasons for acting and whether their actions were

17   for the purpose of influencing?    I'd like to start with

18   Rachel Mellon, please.   First, there was no evidence, none,

19   that there was ever a conversation between John and

20   Mrs. Mellon about those Bryan Huffman checks.    Wait.    Except

21   Andrew Young saying there was.

22             Recall there was never a meeting, and it had to be

23   a call.   Jim Walsh loaded 137,000 calls into the computer,

24   and every possibility of a phone was analyzed, except

25   Mr. Harbach asked him on cross-examination about did he not
                                                                119




1    include Mrs. Edwards' phones.     Well, he asked whether or not

2    it's all phones, and Mr. Walsh said, I didn't include

3    Mrs. Edwards' phones.     None that matched what Mr. Young said

4    was found.

5                Does anybody here think that John used

6    Mrs. Edwards' phone to call Mrs. Mellon and ask her for $1.2

7    million, as Andrew Young swore happened, to pay for his

8    mistress?    I suppose.   I suppose that John could have bought

9    some other phone, some throwaway phone, and used it for just

10   that one call, and it never showed up on anybody else's

11   bill, and after he made that one call asking Mrs. Mellon for

12   the 1.2 million, he threw it out and never used it again.

13               But when the government asks that be found as the

14   proof beyond reasonable doubt, they're defining reasonable

15   doubt.   And then Mr. Higdon said that these events must have

16   occurred because the checks started coming.     Remember

17   Mr. Young said, they just started flowing.     And Mr. Higdon

18   said in his closing, they came whenever she, meaning

19   Mrs. Mellon, felt like it.

20               There are certainly calls between Mr. Young and

21   Mrs. Mellon, and I asked him about it, and I'll just give

22   you one example.    You remember the first check that came,

23   and you'll see the phone records where Mr. Young calls

24   Mrs. Mellon before the check arrives.     And there were

25   certainly calls between Mr. Young and his new friend, Bryan
                                                               120




1    Huffman, in this case, quite a number of them, before the

2    checks would arrive, and I'm just giving you a few examples.

3                But there was no evidence of any such calls

4    between John and Mrs. Mellon and, therefore, no evidence of

5    the agreement in that fashion, let alone an illegal

6    conspiracy between him and her.

7                Now, Mr. Young certainly says he was carrying out

8    John's directions by calling her and setting up funds, but

9    then recall what he says he told her from the very first

10   call he says he had with her.    It was not for the campaign

11   purpose, but was for, as you remember it, something

12   personal.    He said that not just once but on more than one

13   occasion, and he said it to Bryan Huffman.    So when you're

14   considering what was going on in Mrs. Mellon's mind, from

15   the first point forward, she was told it was not a campaign

16   purpose.

17               Now, I understand that the government says that

18   Mr. Edwards made this all up and set Andrew Young in motion

19   to tell Mrs. Mellon that thing, but that's what Mr. Young

20   says he told Mrs. Mellon.    That it was not a campaign

21   purpose.    So then please recall Alex Forger, who the

22   prosecutors do not say was part of any scheme or conspiracy.

23               He said that in December 2007, when Mrs. Mellon

24   asked how to write $175,000 on a check, and he asked her

25   about it, she, and he said, it could not be a campaign
                                                               121




1    contribution, so that had to be her view.    In fact, I

2    specifically asked Mr. Forger, what did you ask her.      He

3    said, I asked her what the purpose was, and she said

4    personal, not campaign.

5              Mr. Harbach will tell you that Mr. Forger has the

6    force of a person who was her lawyer and, of course, she

7    would have said that, to defend what she had written in the

8    past, but then ignore the fact that after that she wrote

9    another $200,000 check.

10             You heard about her fondness for John and her

11   friendship and her concerns.    You saw the personal nature of

12   her notes.   How many campaign contributions come with notes

13   that are signed, "A big hug, all my love."    You saw that she

14   had sent gifts, personal gifts and offered for John to come

15   for a rest, even after the Nightline interview, long after

16   the campaign was over.    And you heard from Mr. Forger, that

17   she would even like that today.    That's not a conspiracy to

18   do an illegal contribution.    It's not a contribution at all.

19   They are instead, as Mr. Forger explained, somebody who has

20   known Mrs. Mellon for quite a long time, doing whatever John

21   was working on at the time and not dependent on him being a

22   candidate for anything.

23             So then how do you find proof beyond reasonable

24   doubt that her purpose was to help the campaign?   The

25   government suggests you look to that April 23rd note about
                                                               122




1    the haircut where she talked about government restrictions

2    and they showed you that you note.

3               Again, think about the context.   Does anyone here,

4    after what you've heard about Bunny Mellon, think that when

5    Mr. Huffman said that this was all about her having fun,

6    that she really was thinking, I'm involved in something that

7    is going around the campaign laws, after I've been told

8    repeatedly by Alex Forger and by Andrew Young that it is not

9    for the purposes of the campaign, and this from somebody who

10   when she wanted to help the campaign or help an

11   organization, knew how to spend $6.3 million to do so.

12              Mr. Higdon pointed out to you that you knew this

13   must be some sort of a scheme because of the convoluted way

14   she wrote the checks, you know, to Huffman with the

15   notations for furniture that went to Young, that went to

16   Pfister.   But remember, that was not John's idea.     Indeed,

17   the evidence over and over again was that he didn't know

18   these checks were being written.

19              Remember, that's what Mr. Forger said.      That's

20   what Mr. Huffman said.   Who Mr. Forger reminded you in that

21   August '08 call, Huffman said, John shouldn't know, and

22   there's no need for him ever to know.    That's what

23   Mr. Moylan recalls about being there in August, and that's

24   what Ms. Button recalls John saying even a year later.      And

25   it was not even Andrew Young's idea.    It was Mrs. Mellon's
                                                             123




1    idea to keep her financial advisor, Ken Starr, and her

2    attorney, Alex Forger, from telling her how to spend her own

3    money.

4                But did you notice how even then, Andrew Young's

5    story does not quite hold together?     How does Young explain

6    that Mr. Forger was not to be in the loop when in the very

7    note the government relies on to show that her intent was to

8    get around Forger, she tells Andrew to go through Alex

9    Forger.

10               And Mr. Higdon pointed out the email that was

11   written a few days later where Mr. Forger is explaining that

12   Mrs. Mellon is now not writing any more contributions or

13   donations to the political committees.     Well, that's true on

14   that day.    But the evidence showed how many more millions

15   she wrote after that; and when she did that, you saw the

16   process when she wanted to make a political contribution.

17   The New York office, whether it was for that organization

18   Center for Promise & Opportunity or the One America

19   Committee, that's how she rates campaign contributions,

20   Huffman and furniture is how she does something else.

21               So, stop.   Let's suppose, let's just suppose, that

22   at one point one thought entered in her mind, and I suppose

23   it's possible that it did.     I suppose there's a possibility

24   that in that midst of her personal relationship being told

25   it's not a campaign purpose, all the events you've heard,
                                                              124




1    the love, hug, kisses, gifts, one thought entered her mind

2    and said you know what?   It won't be bad for his campaign

3    either.   But then the instruction you'll hear from the Judge

4    says if the donor would have made the gift or payment

5    notwithstanding the election, it does not become a

6    contribution merely because the gift or payment might have

7    some impact on the election.    So in light of all the

8    evidence of friendship and what she was told about its

9    purpose, how isn't that exactly the point?

10             I mean, forget about argument.    You've heard

11   enough.   Just ask yourself the following question:   Even if

12   we had the burden of proof, does anybody in this courtroom

13   have any doubt that Mrs. Mellon would have helped John with

14   any personal issue that he had and presented, whether he was

15   running for an office or not?    And you don't have to take my

16   word in argument, that's what you heard from Alex Forger.

17             Let me turn to Mr. Baron.    What is the evidence

18   about Mr. Baron's purpose?   First and foremost, remember

19   that Mr. Baron and John were longstanding friends, the kind

20   of friend that would help you even if you weren't running

21   for any office.   Harrison Hickman told you a little bit

22   about Mr. Baron and, especially about his generosity, even

23   how he would help people anonymously in very large numbers,

24   and John was a friend.

25             But here is where you have to find one of two
                                                            125




1    things.   You have to find either that the purpose of the

2    engaged was, again, one of those out-of-sequence events --

3    so let me try, please, to untangle the sequence.   Remember

4    about Mr. Baron, he's not alleged to be involved in the

5    crime until December of '07.   That's what the charges are.

6              At the Davenport, Iowa, meeting in early October,

7    Mr. Baron, according to the evidence Ms. Palmieri told you

8    and Mr. Young, stated that he did not know that Ms. Hunter

9    was pregnant, let alone who the father was, or even if the

10   affair was still going on.    That day in Iowa, the events

11   were about Mrs. Edwards.   By at least then, Ms. Palmieri,

12   Nick Baldick, who said he thought so even longer; Harrison

13   Hickman who had all the polling data, said that anybody in

14   the inner circle knew that the campaign was doomed.

15             So even if Ms. Hunter was the loose cannon that

16   the government argues she was, and that what was being

17   discussed, what was on people's mind in Davenport, Iowa?     To

18   use Ms. Palmieri's explanation, prevent any more public

19   humiliation for Mrs. Edwards, how to get out with dignity

20   and keep the family intact.

21             And when the second National Enquirer article came

22   out in late December of '07, the campaign was certainly not

23   in better shape.   There's no doubt, however, that Mr. Baron

24   got involved, and he got involved in, as you heard, to help

25   Ms. Hunter and the Youngs leave North Carolina; but, again,
                                                              126




1    what was going on in that time frame?

2                Mr. Higdon pointed out that the records will show

3    lots of conversations on various points between Mr. Baron

4    and John.    They were friends.   He was campaign finance

5    chair.   They're going to want you to look at the events at

6    The National Enquirer and at the time of the interview in

7    August, but they've known each other for years.      And there

8    is no doubt, when The National Enquirer stories came out, in

9    which there was rumors about whether the baby was John's or

10   whether or not Andrew Young was the father, or whether or

11   not the affair was going on, of course they'd be talking.

12   So what?    What were they talking about?   You can assume.

13   You can guess.    You can speculate.   But if you do that, base

14   it on the entire nature of their relationship, just as

15   Mr. Higdon showed you the exhibits of the telephones and

16   said look at how many calls there were between Mr. Edwards

17   and Mr. Young in the period of time between December and

18   through the end of January.

19               But you know why those were happening?

20   Mr. Edwards was still not telling Mrs. Edwards what was

21   going on.    Every time he wanted to call Rielle Hunter, who

22   he called every day, those calls were not 30 minutes Andrew

23   and John talking.    It was John calling the phone Andrew had,

24   Andrew taking the phone and giving it to Ms. Hunter.     That's

25   what was going on.    Not day after day of plotting a campaign
                                                              127




1    violation scheme.

2                The best the government will argue is that on --

3    Mr. Baron, I think, on December 10th, '08, they may point to

4    the evidence if you'll recall that said a message where he

5    called John the principal, as if that was some sort of a

6    code word, claiming that it had to be for a campaign law

7    scheme because of that.

8                Instead, all that happened, and the later voice

9    mails where you see that Mr. Baron is concerned about people

10   tapping their phones, was not about the FBI who had not

11   started any investigation yet.    It was not about the Federal

12   Election Commission, they don't tap people's phones, but it

13   was clearly a reference to what was going on.    What was

14   going on?

15               Two National Enquirer stories, and as we've now

16   learned in the newspapers, Mr. Baron's concern about

17   tabloids tapping other people's phones was not an idle

18   concern.    It is, to use Mr. Higdon's phrase, possible that

19   what Mr. Baron meant was really that we are in a campaign

20   law scheme and I want to leave a message for John, calling

21   him the principle, referring to Rielle Hunter as her or our

22   friend and Elizabeth as her, that this day in court would

23   happen and, therefore, everybody wouldn't know what he was

24   talking about.    I think that's possible, I guess.   But that

25   means it's also not possible.    And when something is
                                                              128




1    possible, and they're asking you to accept that versus what

2    it's also possible not, that's the definition of reasonable

3    doubt.

4             Andrew Young did have to admit that he had his own

5    relationship with Mr. Baron and that he told Mr. Baron about

6    what had happened at their home.   Remember The National

7    Enquirer peeking in, kids screaming, how upset he and his

8    family were?   He knew Mr. Baron, and Mr. Baron reacted.

9             Mr. Baron, if you recall the sequence, even if you

10   believe Andrew Young, was not told by Mr. Young that he,

11   Mr. Young, was not the father of Rielle Hunter's baby until

12   March of 2008.   Every action Mr. Baron took between December

13   and March of 2008, if you believe Mr. Young, is in a period

14   where Mr. Young was saying it's my kid.   When he told

15   Mr. Baron, it was after the campaign ended.

16            So, again, here's the dilemma with proof beyond a

17   reasonable doubt.   You either credit Mr. Young's testimony

18   about what was going on at the time and that he was telling

19   Mr. Baron it was his baby and that it was not John's, and,

20   therefore, it doesn't make the purpose being to influence

21   John's election, or you discredit his testimony; and then

22   there's no evidence at all.

23            Mr. Higdon reminded you of the plane trip with

24   Mr. Baron, John and John Davis; but, again, it ignores the

25   timing and the sequence.   It happened at the time Mr. Young
                                                              129




1    was telling Mr. Baron the baby was his, and the context of

2    that conversation was that time period.

3             I don't want to beat around the bush.     The

4    prosecutors have argued, and you might suspect, that despite

5    Mr. Young's moment of truth out of, I don't know, a few

6    thousand, somehow Mr. Baron knew or thought that the baby

7    was John's.   It's possible.   But it's also complete

8    speculation, and it also means it's not possible.   And I saw

9    that you wrote notes from time to time, and some of you are

10   doing that now.   Did you keep track of the number of times

11   that a witness was asked was something possible?    I did.

12   Over a dozen times.

13            And, again, the point of Judge Eagles telling you

14   about the government's burden and proof beyond a reasonable

15   doubt is just that.   When the government, to satisfy their

16   burden, asks you to speculate about whether something

17   happened or didn't happen and uses the word "possible," they

18   are admitting the opposite is also true.    And, again, that's

19   the definition of doubt.

20            I mean, one more thing about the flight with

21   Mr. Baron and John and John Davis.    If Fred Baron and John

22   were involved in a criminal scheme to violate the law, not

23   an effort, especially after what Mr. Baron had witnessed in

24   Davenport, Iowa, and what Mr. Davis had witnessed and heard

25   about in the hangar, if what they were doing was discussing
                                                             130




1    some criminal scheme, why talk about it in front of John

2    Davis?   He's not alleged to be in the criminal conspiracy,

3    which -- and you then heard it wasn't John Edwards who shut

4    up the conversation.    It wasn't even Fred Baron.   It was

5    John Davis who said I don't want to hear any of this.

6              So you have to ask yourself the question:     Did

7    John Davis shut down the conversation because he thought,

8    wow, these guys are involved in a campaign finance scheme,

9    or is it because he had heard way too much about what was

10   going on when he heard about the affair and Mrs. Edwards and

11   her reaction?

12             And as to what Mr. Baron actually knew or thought,

13   and we can speculate or guess about that, it is particularly

14   dangerous to do that in this case, where Mr. Young can, as

15   you saw that he did on a number of occasions, that would be

16   more pages in your notebooks still, to put words in the

17   mouth of someone who died of cancer in 2008 or to put words

18   in the mouth of a 101-year-old woman, neither of whom are

19   here to tell you what really happened.

20             But as to Mr. Baron, he did testify here.     He did.

21   I don't mean just the statements when he was close to his

22   death telling his friend Harrison Hickman that he really did

23   help because at the time he thought the baby was

24   Mr. Young's.    I didn't mean that.   His testimony comes from

25   one obvious and glaring fact that tells you something about
                                                              131




1    Mr. Baron's involvement.

2                Yes, FBI Agent Craig Garey could tell you how much

3    money Mr. Baron spent between December of '07 and January of

4    '08 -- Mr. Higdon ticked off some of those, right?   The

5    hotel, the private jet -- while Mr. Edwards was a candidate.

6    But he did not calculate and did not tell you how much money

7    Mr. Baron spent after Mr. Edwards dropped out of the race

8    and was a candidate for nothing.

9                The government and we entered into a stipulation

10   to show the total amount of money that

11   Mr. Edwards -- Mr. Baron spent in the entirety from the time

12   Mr. Young alleges he was involved to the time Mr. Baron

13   ended his support.    And then if you take the allegations in

14   the indictment and you do the math, this is what you find

15   out:   That before January 30th, 2008, Mr. Baron spent

16   $194,083.    After the campaign was over, he spent $607,235,

17   nearly three times as much after Mr. Edwards was running for

18   nothing.

19               If Mr. Baron's purpose was about the campaign, he

20   knew better than anyone how that campaign was likely or not

21   likely to succeed in the fall of 2007, and he certainly knew

22   that John was not a candidate for anything in February,

23   March, April, May, June, July, August, September, October,

24   to the very day that Fred Baron died.

25               Yes, you heard that Fred Baron and others wanted
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1    John to be vice president and attorney general, and they

2    did.   Fred may have wanted there to be no more gossip and

3    rumors in the press so that that possibility had the chance

4    to succeed.    But as so many witnesses, including Chairperson

5    Thomas, told you, there's no FEC filing that is associated

6    with promoting somebody to be vice president or attorney

7    general, and there are no limits as to what somebody can

8    spend if that is their purpose.

9                And if John considered the possibility on the

10   night of losing the Iowa Caucus and sent Leo Hindery in the

11   midst of battle to call Senator Daschle to consider a ticket

12   with Mr. Obama, or in March when some other person said he

13   was still thinking about higher office, or when he spoke to

14   Andrew Young at the River Inn, well, maybe he wanted that;

15   and Fred Baron, you heard, could have spent any amount of

16   money he wanted to promote that if that was really John's

17   interest.

18               And even if that was part of his interest, as

19   opposed to helping Ms. Hunter and Mr. Young, who, until

20   March, Mr. Young said he never told him truth -- Mr. Hickman

21   told you it was even later than that -- then the funds spent

22   after January 30th of 2008 are not funds that are included

23   in the indictment in this case.

24               One last thing about Mr. Baron for now, and then,

25   Your Honor, I would be fine to take our break.
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1              THE COURT:    All right.

2              MR. LOWELL:    You heard that Mr. Baron was an

3    experienced person in campaign rules.     He was an attorney.

4    Nick Baldick and Harrison Hickman and Eileen Mancera said he

5    cared about following the rules.     I think Mr. Hickman said

6    he was even persnickety about them with things like using

7    his plane and keeping up with those regulations.    You know,

8    you may have heard that testimony sceptically when it came

9    out of the mouth of people who knew him because of the

10   allegations in this case.

11             So let me ask you this:    Why would someone with as

12   much experience as Mr. Baron even remotely think that funds

13   being spent to Mr. Young and Ms. Hunter, when Mr. Young was

14   still saying the baby was his, would implicate the campaign

15   laws?   Federal Election Commissioner and Chairman Thomas,

16   with 37 years' experience, Lora Haggard, with all of her

17   training and all of her work, Josh Brumberger, Nick Baldick,

18   Eileen Mancera and others said the topic of how a third

19   party payment to another third party for personal expenses

20   considering an affair had never occurred in anything that

21   they had done or said.    So if that's what they all say, why

22   would it be any clearer to Fred Baron?

23             THE COURT:    Is that a good place?   All right.

24   We'll stop there.   Ladies and gentlemen, we'll come back

25   at -- I don't know, we'll kind of shoot for a quarter of
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1    two.    It might take you a few minutes longer than that.      But

2    whenever all of you all get back after quarter of two, we'll

3    come back and finish the closing arguments.

4               Over the lunch break, please remember not to

5    discuss the case among yourselves or with anyone else.      Keep

6    an open mind.    Don't have any conversation or communication

7    with anyone about the case.      No contact with the lawyers,

8    parties or witnesses, no media coverage, no internet, all

9    those usual things.      Leave your notes in your chair, and

10   we'll see you back in about a quarter of two.

11          (The jury departed the courtroom at 12:40 p.m.)

12              THE COURT:    Okay.   Anything we need to do before

13   we take our lunch break?

14              MR. LOWELL:    Not for now, Your Honor.

15              MR. HARBACH:    No.

16              THE COURT:    All right.   We'll be in recess until

17   quarter of two.

18          (The Court recessed at 12:40 p.m.)

19          (The Court was called to order at 1:45 p.m.)

20          (The defendant was present.)

21              THE COURT:    I believe we have all the jurors back.

22   Is there anything we need to do before they come back and

23   Mr. Lowell proceeds?

24              MR. HARBACH:    Could I ask for five minutes after

25   Mr. Lowell concludes before I begin?      If it mixes up the
                                                              135




1    schedule, I'll just go, Judge.

2             THE COURT:    No.   I'm just looking at it.   It is

3    just hard to take just five minutes.

4             MR. HARBACH:    I'll go.    I'll just go, Judge.   It's

5    no problem.

6             THE COURT:    Okay.

7             MR. LOWELL:    I think I have 59 minutes.     I don't

8    think I'll take quite that long.     I don't know, that's why

9    I'm asking.

10            THE COURT:    I show that you took about an hour and

11   ten minutes.

12            MR. LOWELL:    Including our bench time and TV time?

13   I had to stop when we had to take off the screen and I

14   stopped talking.

15            THE COURT:    I wasn't counting it minute-by-minute.

16   I will you give --

17            MR. LOWELL:    Will you give me some leeway at about

18   55?

19            THE COURT:    I wrote down that you used 72, but I'm

20   not going to give either of you any trouble about five

21   minutes either way.

22            MR. LOWELL:    Thank you.

23            THE COURT:    Anything else?

24            What I will do is, at the close of Mr. Lowell's

25   argument, I'll ask the jury if they need to step into the
                                                              136




1    jury room.   If they need a break, certainly we will do that.

2              All right.    Bring the jury in.

3              (Jury panel is present.)

4              THE COURT:    All right, ladies and gentlemen, we're

5    ready to finish closing arguments.

6              The jury is with the defense.

7              MR. LOWELL:    Thank you, Your Honor.

8              So then let me turn to the most important person,

9    perhaps, to talk about next.    Let's talk about John.   What

10   have you heard about John?    We've heard about John quite a

11   bit.

12             Today, it is easy to see him in one dimension; the

13   man who cheated on his wife, had a baby out of wedlock, lied

14   about those things to his family and to all of us.

15             The man who still tried to compartmentalize when

16   he, on ABC Nightline, lied about the affair when he was not

17   a candidate for anything.    The man who ignored the advice of

18   his advisers to stop the affair and even cussed at those who

19   confronted him.   None of it good, all of it human, but a

20   trial can also widen the image a bit, and I think it did

21   here.

22             You also heard the man who just did not make his

23   family a campaign slogan, but who Elizabeth Nicholas told

24   you made his kids a part of his life, even while on the

25   campaign trail.   The man who was the first in his family to
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1    go to college and to help people fight when they were

2    injured, and the man who Wade Smith told you was one of the

3    hardest working, if not the hardest working attorney he had

4    ever seen.   A man who ran for office and did so many good

5    things to focus the country's attention on those who needed

6    a voice; the poor, the disenfranchised, the homeless.

7              You know, with all that has happened in the affair

8    and in this investigation, that person can get lost, but

9    here we can remember that person, too, because it says so

10   much about why Josh Brumberger or John Davis, Christina

11   Reynolds, Peter Shrer, Matthew Nelson or Mark Kornblau

12   wanted to work for him, why John Kerry wanted him as his

13   running mate, and why Mrs. Edwards, his parents, Cate, Emma

14   Clare and Jack and Quinn have supported and love him.

15             As to charges in this case, ladies and gentlemen,

16   sometimes in the fog of a trial there can be a fact, a

17   single fact that can slice through the haze, and I think you

18   heard one here.   This fact in the case is one that was not

19   mentioned in opening or closing by the government, and is it

20   is simply this:   John had, and always had the means to pay

21   for the expenses of his affair with Rielle Hunter, to pay

22   for her travel, to pay for her lodging, to pay for her

23   transportation and her meals, her doctor's appointments, her

24   furniture.   He was a successful trial lawyer.   He had the

25   funds.   So if he had the funds, why didn't he use them?
                                                              138




1               You know, if a person is worried about hiding

2    something from the media, or the electorate, with all the

3    scrutiny that candidates get, why include Andrew Young,

4    Cheri Young, Rachel Mellon, Bryan Huffman, Fred Baron, Fred

5    Baron's secretary, Boyd Tensley and David Kirby, or anyone

6    else.

7               The more people you get involved, the more likely

8    your secret is going to get out.    All John had to do was to

9    pay for those expenses himself, but he could not.

10   Mr. Brumberger, Ms. Reynolds, Mr. Nelson, Mr. Baldick,

11   Mr. Hickman and Ms. Palmieri, all told you about the

12   confrontations between John and Mrs. Edwards and how she

13   reacted to any rumor, story or mention of the affair, and

14   how John had so many efforts to keep this affair secret, was

15   not because he was running for a particular office, but

16   because -- not because he was hiding it from the media for

17   that reason, because not he was thinking this is something

18   to do with the Federal Election Campaign Act, but for one

19   reason.    What is the one constant?   What is the one thing

20   that starts in 2006 and goes to 2010?     The screen tells the

21   story.    He was hiding the affair from Mrs. Edwards.    At

22   campaign kickoff when she found the phone.     When there was a

23   Huffington Post inquiry in September.     In October, The

24   National Enquirer.    December, The National Enquirer.   In

25   August, the Nightline, and resisting the paternity statement
                                                                 139




1    straight through until 2010.

2              He was a candidate for such a small period of that

3    time, but he was involved with Mrs. Edwards, poorly as it

4    turned out, for each and every year.       I mean, you even heard

5    about the incident that proved the point.       Don't you

6    remember that Mr. Young, in one of those moments, told you

7    that John had given Rielle his ATM card, and that she used

8    it for funds that she got in New York.       And what happened?

9    Did the campaign find out?      No.   Did the media find out,

10   even The National Enquirer?     No.    Did the Federal Election

11   Commission find out?    Nope.    Who found out?    Mrs. Edwards,

12   because she got a call from the bank and saw the accounts,

13   and she confronted John, who then made up a story about how

14   the money was used, and there you know.       That, was the

15   reason.   Not for the purpose of getting around the campaign

16   laws.   For the purposes of getting around Mrs. Edwards.

17             There was another thing that showed that John had

18   no criminal intent.    Do you remember the testimony of the

19   United Nations spokesperson Mark Kornblau?        Among the things

20   he told you, remember the incident in December of 2007, when

21   the second National Enquirer story came out?        You heard that

22   John decided to agree to let Andrew Young take paternity for

23   the tabloids and the press, no quarrel.       You heard that he

24   lied to Mrs. Edwards again, no quarrel.       You heard he lied

25   to his staff again when they asked him.       No disagreement.
                                                             140




1              You even saw the awful ABC Nightline interview

2    where he still could not bring himself to tell the truth

3    about Quinn, something that Wendy Button, in her draft

4    statements told you he was pained about and tormented.

5              Remember the one thing he would not do.     Even

6    though he could advance this so-called criminal scheme and

7    keep this story out of the press by signing a false

8    affidavit saying he was not having an affair with Ms. Hunter

9    and he was not the father of Quinn, he refused to do it.      As

10   Mark Kornblau and Wade Smith told you, lying to the press is

11   one thing, lying under oath is a crime, and John wouldn't do

12   that.

13             That is realtime evidence, not after the fact

14   testimony from Mr. Young that makes up things in this

15   courtroom, and it is realtime evidence of what John's intent

16   not to violate any law was.

17             You heard more about his intent.   Mr. Forger told

18   you that John was surprised to hear about the Huffman checks

19   when they talked in the summer of '08.   Mr. Moylan was

20   there.   Bryan Huffman himself told him John did not know and

21   even that John should not know, and that he never needed to

22   know.

23             Then a year later, when Wendy Button asked in the

24   summer of 2009, John told her that he had not known these

25   checks were written at the time, as to Mrs. Mellon.    As to
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1    Mr. Baron, he most certainly told her that he knew that

2    Mr. Baron had helped in some way, but Ms. Button used the

3    word "now" as to what Mr. Edwards was learning and how much

4    he was learning, but remember she described it as support

5    for Quinn.

6              Now, Ms. Button surmised on questions, or guessed,

7    that John must have known about Mr. Baron's help all along,

8    but even if he did, according to her, what he was talking

9    about was the support for Quinn, and we know Quinn was born

10   at the end of February and it was after Mr. Edwards was a

11   candidate.

12             We also know, again, in taking the sequence and

13   putting it in its right order, we're not talking about '06

14   or '07, and we're not even talking about '08 any longer.

15   Now we're talking about 2009, and what was going on in 2009

16   when Ms. Button and Mr. Edwards was talking about what he

17   knew?   There was a grand jury investigation.   There was all

18   the publicity about what had happened.   He had hired two

19   lawyers, one of whom you met and one of whom you heard

20   about, and I know, that Ms. Button, who was working on a

21   statement and wrote 13 of them, wanted John to do this and

22   wanted John to do that and thought that John should do this

23   and thought that John should do that, and I know she thought

24   it wasn't truthful to take a sentence about what Mr. Edwards

25   knew about Mr. Baron out of a statement.   We're talking
                                                             142




1    about 2009.

2               Remember, when she said that he couldn't do it for

3    practical and legal reasons?    The practical was obviously,

4    but she told you any way.    The practical was that he was

5    still dealing with Mrs. Edwards, who was not right in a good

6    place, remember, not in a good place to deal with the issues

7    of paternity, not yet in a good place to resolve these

8    issues.

9               He was also in mediation with Ms. Hunter about

10   Quinn.    He was also trying to work those out.   I mean, what

11   a mess.    As far as legal issues, not just those mediation

12   issues, but the grand jury that you heard about.

13              I again know that Ms. Button would have liked John

14   to do more.    I understand that, but remember what she told

15   him at the time.    I only know what he's told me.   The only

16   thing that really should be dictating his actions right now

17   are the legal things from justice.    If doing the right thing

18   messes that up, then he has to wait until that is cleared

19   up.

20              I understand her testimony in 2012; this, that or

21   the other should have happened, or she didn't think it was

22   the right way to do it.    Sometimes, an email that is written

23   at the time, speaks louder than somebody writing a book

24   about these events today.

25              So even after 2008, John did not stop trying to
                                                            143




1    hide the truth, not until January of 2010.   No campaign

2    then, no vice president then.   No Attorney General then.    No

3    convention speech then, no political future then, but still

4    trying to keep his family intact, in what Ms. Palmieri

5    called that complicated relationship that John and

6    Mrs. Edwards had, where one day it could be her directing

7    the campaign and getting the cell phone records of the staff

8    and wanting John to stay in the race even after her illness

9    had returned, and where she could be screaming at him in a

10   car or in an airport hangar, and yet another time, those

11   tender moments of John tending to her in her final month at

12   her bedside, so even as Ms. Palmieri told you, she could

13   pass in the company of the man she loved.

14             One more thing.   What about that after the fact

15   call between Mr. Forger and John's attorney, Wade Smith,

16   where Mr. Forger, again, in sequence, at the end of 2008,

17   after Nightline, after he's not running, after the events

18   are starting to be talked about in the press, was doing this

19   after the fact reconciliation of what all that money

20   Mrs. Mellon paid, so he had a conversation and was trying to

21   get the facts, and spoke to Mr. Smith and spoke to

22   Mr. Cooney, and he told you, it was by a process of

23   elimination that he came to the conclusion that

24   Mrs. Mellon's donative intent, to use his phrase, was for

25   the benefit of Mr. Edwards.   But of course it was, given
                                                              144




1    Mrs. Mellon's gift tax issue.    She didn't buy furniture.      It

2    want supposed to be for Andrew and Cheri Young.     It was not

3    supposed to be for Mr. Huffman.      Her personal relationship

4    and friendship with Mr. Edwards, so by a process of

5    elimination, they came to that conclusion, and not only did

6    Mr. Forger tell you that, so did Mr. Smith.      Mr. Smith

7    cleared it up, that that wasn't something that he had to

8    discuss with Mr. Edwards in order to tell Mr. Forger that.

9               More importantly, Mr. Smith, somebody that you saw

10   and you can determine quite a lawyer, said, you don't reveal

11   the conversations you have with your client, because that

12   violates the attorney/client privilege, and for all that

13   Mr. Forger and Mr. Smith were talking about, remember at the

14   time, we're talking about at the end of '08.      They didn't

15   know where the money had gone.      The money had gone and then

16   they found out later in the course of the investigation, but

17   now we know.   Now we know where the benefit existed, so

18   Mr. Forger and Mr. Smith were wrong.

19              The benefit went here.    The benefit went down the

20   road in Chapel Hill in a 10-acre, 6,581 square foot house,

21   and a lot of trips, vacations and nice things bought along

22   the way.

23              At the very end of his presentation to you this

24   morning, Mr. Higdon started talking about Andrew Young, as

25   if he's an afterthought.
                                                             145




1                You want to know the purpose of the funds, and as

2    Wendy Button emailed to Mr. Young in 2010 when they were

3    talking?    Follow the money.   Oh, my gosh, what did we learn?

4    That from June of 2007 through January of 2008, Andrew Young

5    solicited Mrs. Mellon for $725,000.     From December of 2007

6    through the end of the next year, another hundreds of

7    thousands of dollars from Mr. Baron.

8                The Youngs did not tell Mrs. Mellon about

9    Mr. Baron and did not tell Mr. Baron about Mrs. Mellon, and

10   of course that was John's idea, even though the Youngs were

11   getting all the money and Mr. Edwards was getting none.

12               You want to know the purpose?   Follow the money.

13   It was a $1.8 million house they built on that ten acres,

14   6,000 square feet.    A hundred thousand on a pool, remember

15   he told you, a hundred thousand of a media center and TVs.

16   There was $38,836 the Youngs spent on vacations with their

17   family.    There was $10,557 for private education for their

18   children.    There was even $3,800 for jewelry for Mrs. Young.

19   There was even $35,800 they spent for porcelain crown

20   veneers for Mr. Young, I suppose for his TV appearances.

21   Where did the money not go?     Only 38,000 is supposedly the

22   hush money to keep Ms. Hunter quiet during the campaign.

23               They said a hundred thousand dollars worth of

24   furniture.    Remember that video of the furniture?   Zero went

25   to the campaign.    Zero went to campaign staff and other such
                                                               146




1    events, and of course went to Mr. Edwards.

2               Worse than how they got the money is, what they

3    said to get it.   They used Fred Baron and lied to him by not

4    telling him what they had gotten from Mrs. Mellon, and made

5    him believe that they needed to be reimbursed for that for

6    which Mrs. Mellon had already reimbursed.    They got a

7    second -- last $200,000 check from Mrs. Mellon, after they

8    had already spoken to Mr. Baron and his funds started coming

9    to them.   So each of these individuals didn't know about the

10   other, and the money kept going to them, and then when they

11   tried to reconcile it, you saw the exhibits, and this is

12   what you saw.

13              You saw that they wrote one to Mr. Baron where

14   they put the money at $239,000 that was spent on the affair.

15   Then they collected a large document trying to say what was

16   Ms. Hunter's and what was related to the affair and to that

17   it was $478,000, and then they wrote their amended returns

18   to explain their gift tax issues, and to the IRS, they said

19   191,750, and so this is what they did.

20              Remember, they had gotten over a million dollars,

21   and depending on what circumstances and for whom they wanted

22   it and for what they were using it for, and how they were

23   explaining it and how they were going to cover what they had

24   done, different numbers for different people.

25              While the Youngs could boo-hoo to Tim Toben and
                                                              147




1    Leo Hendry and Wendy Button about how they were ruined, how

2    they had no future, no funds and how they needed more and

3    how John had let them down by not getting them a job, they

4    lied to all of those people.    They didn't tell one of them

5    that they had gotten this money, but they could complain

6    about John, and they could plot against him, but they never

7    told those with whom they were plotting the truth.

8               What do they hold in their hands right now?

9    Mr. Young has an immunity agreement and neither of them have

10   paid taxes on the difference.    There was a campaign purpose

11   for the money, there was, but not for the purpose of

12   influencing any election.   It was a campaign to make the

13   Youngs rich beyond their means, rich beyond their dreams and

14   rich with money they did not earn.

15              Ladies and gentlemen, a lie that is told out of

16   the courtroom, but a lie Mr. Young makes up right in front

17   of you, tells how bad he is.    Every other time, that long

18   term project for whom he needed money that he spoke to

19   Mr. Edwards about in the car ride, never happened.   He said

20   started the ball going where he would talk to Tensley, think

21   of Baron, go to Kirby, end up with Mellon, all of that, the

22   long term project, remember he used the phrase, long term

23   project.

24              Before he got into the courtroom, that long term

25   project had always been, because Ms. Hunter was now pregnant
                                                               148




1    and needed to be taken care of until the baby was born.         Now

2    in court, it was at a time earlier, where Mr. Edwards and he

3    created that scheme.    When Ms. Hunter, while not having a

4    job, was living with her friend and still had money from

5    when she had worked for the pre-campaign events, and because

6    that was the case, in order to make sure the sequence was

7    understood, that is why we entered into stipulation number

8    four, which explained when Ms. Hunter actually became

9    pregnant and when she could have known that she was pregnant

10   and when she would have needed a long term project and when

11   this event really occurred that Mr. Young and his wife

12   figured out that they had the means to take advantage of the

13   situation.    It wasn't May 10th.   It wasn't May 26th.

14   Indeed, she wasn't even pregnant then.     It wasn't before

15   that period when the first Bunny Mellon checks were written

16   at the beginning of June, because she wouldn't have even

17   known.    She went to the doctor in July, and the checks were

18   flowing a month before.

19              The long term project was not as Mr. Young said.

20   That was just yet another of the lies he told.     And, it's

21   not just one lie, and it's not just only the important

22   things.    He just lied over and over again, and it didn't

23   matter whether it was big or small, whether it was whether

24   he or a friend had been driving when he was pulled over for

25   drunk driving.
                                                             149




1              Mr. Higdon said Mr. Young had to suffer through

2    Mr. Edwards' causing him to drink, except for the fact that

3    he had those events before he ever worked for Mr. Edwards.

4              Whether he invented the hundred county tour that

5    he took credit for.   Whether Mrs. Edwards changed her name

6    in order for there to be a political reason as opposed to

7    the passing of her son so she could have the same name as

8    his.   Whether he was a trusted policy advisor on Iraq and on

9    the budget deficit.   Whether Secretary of State Warren

10   Christopher called him to discuss John becoming vice

11   president.   Whether John had a jacket made with the number

12   49, just in case John wanted to be president of the United

13   States, when John was 80 years old, or how he had discussed

14   with John how the Edwards family and the Young family were

15   going to move and live in the vice president's mansion in

16   Washington, D.C. together, or John having a plan to split

17   the democratic convention with his six delegates out of the

18   2,700 needed; or how he could be talking to John about the

19   idea of paternity, because he looked down at his car seat

20   and there on the seat was a Newsweek Magazine, which

21   proclaimed John to be the sleeper, and in a moment of

22   realism, Mr. Young said, I have to do this.   I have to do

23   this because this man is still going to be president and

24   I'll take my future with him, so I looked down at the car

25   seat, I saw the Newsweek Magazine, and that's what convinced
                                                            150




1    me, except in John's schedule, you saw that he was only

2    interviewed for the Newsweek Magazine the day before

3    Mr. Young said he was in his car.   It just happens that the

4    magazine came out a week later, but Mr. Young swears to tell

5    the truth, and tells you that on the stand.

6              You know, there is nothing he won't lie about.

7    When Mrs. Young was asked, have you ever told someone that

8    your husband is such a good liar that you don't even know

9    when he's lying, do you remember what she said?    I don't

10   recall.   That's a vote of confidence from your spouse.

11             There was not a person that was called to the

12   stand, not one person, except his friend, his drinking buddy

13   Tim Toben, who he wrote the emails with about calling John

14   and Mrs. Edwards such despicable and ugly names.   He said he

15   was dishonest, untrustworthy, he couldn't be believed.    You

16   saw the emails between Mr. Toben and him where Mr. Toben

17   wanted him to consider that John actually owed $24 million

18   for all Mr. Edwards had done to the Youngs, but every other

19   person who came to the stand in every walk of life that

20   Mr. Young now had come to work with, told you the same about

21   his reputation.   Imagine people saying that about you.

22             You know, saying that you aren't going to like

23   Mr. Young in opening, or that sometimes he has not been

24   truthful in the past.   I don't know, that's like saying that

25   Hurricanes Floyd or Irene were rain showers.
                                                                 151




1                So let's move on in time and follow the money.

2    You want to see again what it was going for, the purpose?

3    Look at how the Youngs blew through the money they got.

4    Millions.    They needed more.

5                Mr. Walsh went through the thousands and thousands

6    of entries, and you can see this chart, and I know in

7    cross-examination Mr. Walsh was saying is it really in the

8    red, is it not in the red.     How many accounts did it take.

9    What does it really mean?     I'll tell you what it means.        You

10   don't have to be an experienced FBI agent and you don't have

11   to be an experienced IRS agent.      What it means is, by

12   August 18, 2008, the Youngs needed more money.      They were

13   out.   They had blown throughout over a million dollars.

14               Mr. Young even had to admit on the stand that they

15   lost their perspective and got more and more extravagant.

16   Fred Baron telling him at the March meeting that you can

17   never move back, you can never go back?      Is that what

18   happened?    Really?

19               Look at the change orders that we have put into

20   evidence.    Even four days after the meeting with Mr. Baron,

21   telling him that they can't move back, change orders now

22   totaling $412,000.

23               So what then?   He, Mr. Young, had a confrontation

24   with John at the River Inn.      You heard about that, and it

25   didn't go well.    He could not tell the truth about the money
                                                               152




1    he had blown through.    He wanted a new job.

2                There are two pieces of evidence that occurred in

3    realtime.    Mr. Young and Mrs. Young can come to court and

4    lie as much as they want, but there are two pieces of things

5    that occurred outside of the courtroom, and you have seen

6    them both.

7                First, I want to talk about the Beverly Hilton.

8    Remember that incident, John came to see Quinn and came to

9    see Ms. Hunter and there were reporters there?

10   Coincidentally, do you remember what happened next?   John

11   and Mr. Edwards spoke -- I'm sorry, Mr. Young, who was at

12   the time tape recording his voice mails off of his phone and

13   onto a device, so he happened to be taping his side of the

14   conversation with Mr. Edwards?    You remember he told you

15   that story?

16               So he tells you that on December of 2007, this

17   whole paternity idea was John's, from start to finish,

18   John's.   That he struggled, his wife and he ate a hamburger

19   while he thought about it, and that this all occurred over

20   the course of the day of the 13th of December.

21               Now, let me make sure I'm clear about this.    No

22   one is suggesting that Mr. Edwards wasn't ridiculously

23   foolish by accepting the idea to have somebody accept

24   paternity for him in December of 2007.    As Ms. Van Laningham

25   told you, somebody threw him a lifeline, and the crazy
                                                               153




1    absolutely nuts concept that Mr. Edwards had in his head, he

2    had took that lifeline, but the idea that it was just John

3    and not really Andrew's idea to start with, to continue to

4    have the leverage, to continue to be in John's good stead,

5    to continue to be the person that only John could make him

6    successful, when he admitted he was only successful in his

7    life because of John, well, you know better now.

8              You know that those events didn't happen the way

9    Mr. Young said.    You absolutely know it, because in all of

10   the things that happened, remember he was traveling around

11   the country so annoyed to be doing this, upset that John

12   would never call him back.    Annoyed to be living with Rielle

13   Hunter, didn't have a future, didn't have a job, wanted to

14   have that at the River Inn, and it didn't go well.

15             Then what happened in July?    The first opportunity

16   Andrew Young had to talk to John after the Beverly Hilton,

17   he did it again, and this is what he did.    You heard it.

18   Hear it again.

19             (An audio recording was played to the jury.)

20             MR. LOWELL:   Who starts that?   Mr. Higdon says,

21   who's in charge?    I don't know who is in charge.   Whose idea

22   is it to come up with a new lie?    Is there any way you can

23   say you were here visiting me?    This was after he was

24   annoyed, upset, had the River Inn, didn't have a future,

25   didn't have a job, John wouldn't call him back and what is
                                                              154




1    the first thing Mr. Young does?    He comes up with a new

2    scheme in order to try to get money, a job, get back into

3    Mr. Edwards' good stead, so there is the man who said John

4    did everything, and you have concrete proof that the idea

5    was Mr. Young's.

6                The second incident came a little bit later in the

7    summer.   Remember, Andrew's attempt to get -- I'll lie to

8    get back into your good graces by saying you were here to

9    see me at the Beverly Hilton.    John, this time, didn't take

10   the lifeline that he did in December, so Andrew couldn't get

11   back into the gravy that way, so he and his wife did

12   something even worse.

13               Before the car ride on August the 18th, they had

14   gotten Ms. Hunter's private photos and private video.

15   Andrew asked for a second meeting with John, he got it.

16   Remember the sequence.    John had just done the ABC Nightline

17   ridiculousness.    He recalled something that Andrew did not

18   want him to do -- remember, that was something -- that

19   interview was something Andrew didn't want him to do,

20   because once he told Mrs. Edwards the truth, as Mr. Young

21   said, why did you do that, then Mr. Young did not have any

22   leverage.

23               Remember what Mr. Young admitted he wrote.   "The

24   knowledge I had made me the one person who could hurt him

25   the most, and everything I knew made him loyal to me."      As
                                                              155




1    soon as Mr. Edwards told the truth, that hook was gone.

2                So Andrew, at his meeting -- and by the way,

3    remember the sequence; that call of Mr. Edwards that was

4    played to you by the government, happened on August the

5    12th.    That was after August the 8th of the ABC Nightline.

6    It was before Mr. Edwards and Mr. Moylan went to see

7    Mrs. Mellon, spoke to Mr. Baron and spoke to Mrs. Mellon and

8    heard about the Bryan Huffman checks.    So they played the

9    tape to show you that it was such a pleasant call between

10   John and Andrew.    Hi, Buddy I'm going to see Mrs. Mellon,

11   and that's why, because what happened between that and the

12   August 18th trip, that wasn't such a nice trip, the trip to

13   Virginia where John learned the truth for the first time and

14   then what happened on August 18th?    In the car, with the

15   possession he had of the private photos and the videos, he

16   was angry, he as upset, he was desperate, his cash flow was

17   in the red, and he threatened John.    He said, I have

18   evidence.    Well, that's what he said here.   I suppose that's

19   probably not the words he used in the car.     He certainly had

20   possession of the private materials and he certainly raised

21   it with John at the time, and then he sits here and wants to

22   make you think that John threatened him when he wrote and he

23   acknowledged he wrote that he said that, "You're not going

24   to get away scot-free, and I can't control what happens

25   next."    He said John said, "Andrew, you can't hurt me, you
                                                             156




1    can't hurt me," and that's what he says is the threat.

2              Try as they might to lie about what happened and

3    how they got the material and what their purpose was and

4    what they were going to do and what their motives were, that

5    phrase, that a picture is worth a thousand words, is

6    certainly something that comes about now.

7              Not content with being involved and getting access

8    to Ms. Hunter's apartment and house in Governors' Club,

9    whenever that occurred, remember, they did it again.    This

10   time, they brought their kids, and that tells you exactly

11   what happened.

12             (Video recording was played to the Jury.)

13             MR. LOWELL:    See the hundred thousand dollars

14   worth of furniture?

15             It is ironic that the two pieces of evidence that

16   Andrew did not destroy, his Hilton tape and the video, to

17   tell the truth about his purpose.

18             John, when Andrew told you that he could not hurt

19   you any more --

20             THE COURT:    If you'll address the jury, please.

21             MR. LOWELL:    You were wrong.   The guy who would

22   steal Ms. Hunter's property and even try to hold onto it

23   even after being held in contempt of court.     The guy who

24   would threaten you with exposing the private property.      The

25   guy who considered selling it, he could hurt you.    He could
                                                              157




1    hurt you by making up more lies, by putting you in

2    conversations you never had, by blaming you for the actions

3    that he took with Mr. Huffman, by saying things that were

4    your ideas when they were not.    By lying to the FBI and

5    prosecutors repeatedly, by trying to call and tamper with

6    witnesses.    By enlisting whoever he could during the

7    investigation to be on his side.    By leaking things to the

8    press, and then to sit here as if he's the victim.

9                 In opening, Mr. Harbach said that you wouldn't

10   like Mr. Young, and that you should consider him more like

11   an exhibit than a witness.    On that, we'll agree.

12             Ladies and gentlemen, I offer you Government's

13   Exhibit Number 1.    This is Andrew Young.   The man who, when

14   he files something with the IRS that says, "All funds

15   received by the taxpayer were transferred to the employer's

16   associate," calls it a mistake.    And, the man who despite

17   Mr. Harbach asking that if he, Mr. Young lies, or violates

18   his immunity and cooperation agreement, whether he knows

19   that the agreement will be ripped up and that he can be

20   prosecuted, and Mr. Young said he knew that, but he broke

21   that agreement, because he called witnesses after the

22   defense listed them in a pleading.    As far as he is

23   concerned, that agreement is intact.

24             You know, my last question to him when he left the

25   stand was, without knowing more of the details, anyone
                                                                 158




1    looking in from the outside would consider what I did,

2    remember what he said is this, "and conclude that I must

3    have been a cold-blooded schemer who was motivated by ego

4    and greed or the desire for power."      The Politician.    It is

5    not the right title for this book.      I think he just told you

6    the better one.

7                I think about how much of this case depends on

8    what comes out of the mouth of Andrew and Cheri Young, and

9    especially Andrew.    It is from him, not the facts as

10   Mr. Higdon says it, because he just tells you the facts and

11   divorces them from how you learned them; that, there was the

12   car ride hatching a plan to get money from Boyd Tensley,

13   Fred Baron, David Kirby and Rachel Mellon.      Who else told

14   you that?    That there were four calls and meeting to discuss

15   whether the money was legal.      Who else told you that?

16               They spoke in code.   That is his word.   And when

17   given an example, "we just received something important."

18   We just received something important is a code after

19   Mrs. Mellon had given millions of dollars to the campaign,

20   organizations or political operations.

21               John's idea was to go around Alex Forger.       It was

22   John's idea to move Ms. Hunter to North Carolina, even

23   though doing so would put her right where the campaign was,

24   and miles away from Mrs. Edwards.      It was John's idea not to

25   tell Fred Baron or David Kirby about the money from
                                                               159




1    Mrs. Mellon, even though it was Andrew and Cheri Young who

2    kept every penny.

3              By the way, as to all those car rides, is it

4    possible, as the questions were asked of witnesses, that not

5    withstanding that none of the schedules said that Mr. Young

6    was driving, when it was that he says he said, I was

7    driving, had the conversation, was talking about the AFNA

8    Commissions.   Is it possible, that at the last minute it was

9    done that he drove?   It is possible.   It is possible.    Not

10   likely, given what you heard from Mr. Kornblau and others

11   said as to him not being the driver in 2007 because of

12   Mrs. Edwards, but whenever the government seeks to prove

13   beyond a reasonable doubt on the basis of something being

14   possible, it is the definition of reasonable doubt.

15             By the way, that it was John's idea to come up

16   with paternity, even though you heard the Beverly Hilton

17   tape, and that it was John who orchestrated everything,

18   everything ahead of time about Mr. Baron's involvement

19   starting in December, even though you heard Harrison Hickman

20   tell you what Fred said when he was dying, and after you

21   knew that Andrew said when he told him paternity, and after

22   you knew that vice president and attorney general is not

23   something covered in these charges.

24             The government has brought six felony counts

25   against John who was hiding an affair, dealing with
                                                             160




1    Mrs. Edwards, and to use Wendy's Button's words, struggling,

2    struggling with how to deal with all of that; being a father

3    to Quinn who he had denied, to his other children.   But

4    Andrew Young, wants to walk away with his immunity deal

5    intact, the million dollars that he had received and his

6    house.

7              How does that make sense?   How is that a verdict

8    that comports with the evidence in this case?   How will that

9    seem right to you tomorrow, next week or a year from now?

10             In his opening, Mr. Harbach said and Mr. Higdon

11   repeated it in his closing, the words deny, deceive and

12   manipulate, and he was right about that.   He was right that

13   John did all of it, but he left out why, and now you know it

14   was not for the campaign, but something far more human and

15   far more common, hiding an affair, and trying to get out

16   with your family's dignity intact.

17             I would like you to keep the phrase deny, deceive

18   and manipulate in your minds when Mr. Harbach gets up and

19   explains what Mr. Young and Ms. Young did, because it

20   defines those individuals' conduct, but they deny, deceive

21   and manipulate for money, to live a lifestyle that they

22   didn't earn, and to be part of an effort to have John result

23   in what is good for their book, good for their movies, good

24   for their play, good for their speeches, good for their TV

25   appearances.
                                                               161




1                There is nothing he won't do.   Lie before trial to

2    the government.    Lie to you on the stand is not good enough.

3    Despite being held in contempt, he enlisted the help of a

4    handful of potential witnesses like Leo Hindery, Tim Toben.

5    He even offered those two business deals while the

6    investigation was going on, and to talk to Bryan Huffman and

7    Wendy Button during the investigation and having the

8    audacity to start calling witnesses after their names were

9    placed on the defense witness list.

10               You saw the emails, and I'm going to give you just

11   a few, if you want to see them.    I'll come back to that.

12   You saw the email to Mr. Hindery about the deal.    You heard

13   the email to Mr. Huffman, about asking Mr. Huffman a

14   question that he knew Mr. Huffman was going to relay to

15   Chuck from the FBI.    Mr. Huffman didn't know anything about

16   these questions.    These weren't really questions Andrew

17   Young was asking Mr. Huffman about people he didn't know.

18   He was doing it, as Mr. Huffman admitted, with the

19   understanding that it would be passed onto the government in

20   some way.    I don't understand why Mr. Young thought they

21   would not end up on a screen in this courtroom on this day.

22               He did it again with Ms. Button.   "I promise you,

23   Chuck is as nice as he can possibly be.     I promise."   That's

24   what a government witness would say to the witnesses that

25   he's contacting or potential witnesses that he's contacting.
                                                             162




1              There is nothing he won't do.    You know what the

2    irony is, the Youngs have not stopped trying to take

3    advantage of the situation and taking advantage of John.

4    Hundreds of thousands for his book.    Hundreds of thousands

5    for his hope for a movie, more for a play and speeches and

6    who knows what else, and how inconvenient will it be for the

7    Youngs and their future plans, if you see through that and

8    you see through that his evidence is not something on which

9    reasonable doubt can be based and give him his next chapter

10   in his next book.

11             Ladies and gentlemen, I don't know how you enter

12   the courthouse, but if you come through the front door, you

13   might see the plaque on the front on the lawn right in front

14   of the front doors that has the Bill of Rights on it.      I

15   don't know if you noticed it.    But, the Bill of Rights is

16   the document that provides for the rules of a fair trial.

17   It is the Bill of Rights that contain issues concerning the

18   right to counsel, and many of the other things which govern

19   in this case, including the burden of proof and presumption

20   of innocence.    They all derive out of the Constitution and

21   those Bill of Rights.

22             Judge Eagles is going to instruct you on all of

23   these rules.    They all come from those Bill of Rights.   They

24   include, of course, the indictment.    The Judge is going to

25   instruct you that the indictment against the defendant,
                                                             163




1    Mr. Edwards, is not evidence of any guilt.    In fact, the

2    prosecutors wrote the indictment.    They even signed it.

3                Mr. Edwards, over the last few weeks, can answer

4    those charges, and he has.    You will be instructed on the

5    presumption of innocence.

6                John came to this court and said he was innocent

7    and we have shown you that he is.    The Judge will tell you

8    every defendant is presumed by law to be innocent.    In a

9    case like this, those are not empty words.    What they mean

10   is that when the government charges somebody with campaign

11   law violations, but instead prove bad human conduct, that

12   those are two separate things, and that the presumption of

13   innocence as to the real campaign charges, have never been

14   overcome.

15               The third, of course, is the burden.   As Judge

16   Eagles will remind you and instruct you, the burden is

17   always on the government, and it must prove all the elements

18   of every one of their charges, and they must prove them

19   beyond a reasonable doubt, and that's why it is up to them

20   to call the witnesses, and it's up to them to be able to

21   show you the proof.

22               It also means that the defense doesn't have the

23   burden to try to prove whether John confessed his sins, is

24   remorseful for what he did, is making amends, or to explain

25   the complexities that causes someone to have an extramarital
                                                              164




1    affair.

2              The next rule is proof beyond a reasonable doubt.

3    Here, the Judge is going to instruct you that this burden is

4    not a small or light one.   She will tell you it is a heavy

5    and a strict burden, the highest in the law.

6              I could make a much longer chart, but I wanted to

7    at least give you a few to think about as to where there is

8    reasonable doubt that Andrew Young is telling the truth, the

9    whole truth and nothing but the truth.   That Cheri Young is

10   telling truth, the whole truth and nothing but the truth,

11   that the funds were campaign contributions, that John knew

12   anything about Bryan Huffman's checks, as Alex Forger and

13   John Moylan said he did not.   That Fred Baron did not

14   believe that the baby was Andrew Youngs as he had told

15   Harrison Hickman and Harrison Hickman told you.   That Rachel

16   Mellon and Fred Baron would not have helped their friend

17   John even if he wasn't running for anything.   That John

18   caused Lora Haggard to file a false FEC report or that John

19   acted knowingly and purposely to violate the campaign laws.

20   All of that and so much more would fit your notebooks as to

21   a list of reasonable doubt in this case.

22             The last issue that you will hear about is

23   unanimity.   Our system is so concerned that a person not be

24   wrongly convicted, that it requires all jurors to agree

25   unanimously that the prosecutors have proven each one of
                                                              165




1    those charges and each of its elements beyond a reasonable

2    doubt, and you will hear an instruction on that, too.

3              Put it this way.    Once you get the case to

4    deliberate and you're in the jury room, if you start

5    debating and there is a debate, well, did John know about

6    those checks or did he not?    Did he have any concept that a

7    third-party could actually pay another third-party's

8    personal expenses and that would be a campaign contribution?

9    Yes, no, yes, no, no, yes.    Was Mr. Baron helping Mr. Young

10   for the reason of the election or for a number of reasons or

11   can we not figure out the reasons any more, any longer?        If

12   that's the kind of debate you are having, and I assume it

13   is, what you are defining is, reasonable doubt.

14             It also means that there are six different counts

15   in this case, and you have to agree on them all.   We've

16   shown that there is no proof beyond a reasonable doubt for

17   any of them so, please, do not compromise among the six.

18   Each is separate.   Each requires the same amount of proof

19   and each is a fatal felony in this case.

20             Ladies and gentlemen, on behalf of

21   Ms. Van Laningham and Mr. Duncan, we are grateful.   Grateful

22   for the Judge for putting up with my clumsy and inartful

23   questions and evidence mistakes.    Thankful for the court

24   personnel who have made our jobs easier, and especially

25   those who are stopping us from tripping over television
                                                              166




1    cameras.   We're very grateful to Ms. Calhoun and her

2    colleague, Mr. Armstrong, who continue to put up with us

3    talking too quickly.   Thankful to Mr. Morgan and Mr. Gomez

4    for helping each other and you, by getting the exhibits on

5    the screens.

6               Most of all, we're grateful to you.   We're

7    grateful that we have a jury system where real charges can

8    be separated from salacious stories of bad marriage conduct,

9    and grateful that each and every one of you took a month out

10   of your schedules to making the system work.

11              I don't know if you noticed, but Judge Eagles'

12   bench is raised off the floor, and so is the jury box, and

13   that's because you are both judges in this case.   You are

14   both judges in the courtroom.   She's the judge of the law,

15   you are the judges of the facts.

16              You've been very patient with us, and particularly

17   with me taking so much time today.   We did this, because

18   even with all that John has done, his family, his legal

19   career, his being a senator, his running for president and

20   vice president, this is, of course, the most important day

21   in his life, and I hope that throughout the trial and

22   especially now, that me and my colleagues have been able to

23   present the case that he deserves, for all that he's done

24   for his family, his community, this state, and the country.

25              When I'm done, the prosecutor gets to argue again,
                                                            167




1    and then the Judge is going to instruct you on the law.

2    Unlike what's happened during the trial where we go back and

3    forth, we won't get another chance to sift through the

4    evidence with you.   We won't be able, if Mr. Harbach says

5    something that we think could be said differently, to have

6    that chance, so be careful if you hear something for the

7    first time, but then you can be the last word.    That's the

8    job the rules give you.

9               We'll rely on you to be the ones who remember all

10   the evidence and put this in the context of the campaign

11   charges.   Up until now, we have had John's case in our

12   hands.   Now, I have to give it to you.   I can do that,

13   because I'm confident that you'll follow the rules that

14   apply, hold the government to their burden and make sure

15   that proof beyond a reasonable doubt means exactly what the

16   Judge tells you.

17              It should probably not come as a surprise that a

18   good statement that summarizes the evidence in this case was

19   made by a speech writer, Wendy Button, when she was

20   discussing all that she had seen and all that had occurred

21   after John had talked to her about the pain he felt having

22   denied Quinn for so long, and having injured his family the

23   way she described to you that he had done, and having denied

24   Quinn, losing his ability to speak for those who did not

25   have a voice.   Remember what she said?   She said this.
                                                            168




1    "There should be hope in terms of now doing the right thing,

2    and based on my conversations with John and knowing that he

3    wanted to, he was trying to do the right thing, but more

4    chaos ensued, and I didn't understand why it was still going

5    on and why it could not just stop and why people could not

6    just move on."

7                John has made so many mistakes in these events and

8    he's paid such a large price to himself and his family, but

9    among those mistakes, are not the charges that were filed

10   against him in this case.    Certainly not one in which his

11   next chapter is if somebody who is a federal felon for

12   purposely and knowingly violating the campaign laws, when so

13   many people never heard that topic.

14               Your verdict can do what Ms. Button described.     It

15   can allow people to stop and to move on.    The Youngs, they

16   have their story and they have their money.    Ms. Hunter, her

17   baby and the life she can make for her, perhaps with John

18   being, hopefully, the father he's been to Wade, Cate, Emma

19   and Jack.

20               He can continue to try to repair the awful damage

21   that the prosecutors indicated when people were answering

22   questions and telling you what had happened, and then again,

23   perhaps he can speak again for those who don't have that

24   voice, and when he did speak as Ms. Button said, focus the

25   world's attention on a neglected cause, and as Ms. Button
                                                                169




1    said, sometimes made us cry.

2               With all that has gone on, and the heavy burden of

3    proof the government has, please let this sad chapter end

4    and stop with your verdicts of not guilty.

5               THE COURT:   All right.   Ladies and gentlemen,

6    Mr. Harbach will argue next.     It will be for 30 or 35

7    minutes.   Does anybody need a short break before that?      No.

8               All right.   Everybody seems to be okay, so the

9    jury is with the government.

10              MR. HARBACH:   Thank you, Your Honor.

11              May I, Your Honor?

12              THE COURT:   Yes.   You may proceed.

13              MR. HARBACH:   Good afternoon.   You all have been

14   talked to by attorneys for several hours now, and I know

15   that you're eager to get to your deliberations, but before

16   you do that, the government would like to remind you that

17   it's important when you deliberate, that you're thinking

18   about the right things.    The facts that have been put before

19   you by the government's evidence, the reasonable inferences

20   that can be drawn from them in accordance with the law as

21   Judge Eagles is going to give it to you later today.

22              Mr. Lowell has been working very hard today and

23   throughout the trial for his client, as he should, but much

24   of what you just heard, were distractions.

25              The task before you isn't to find the quickest way
                                                              170




1    out.   The task before you is to apply the law as Judge

2    Eagles is about to give it to you, to the evidence that is

3    in the record, not a book that's not in the record, not a

4    false suggestion that a cooperation agreement says anything

5    about calling witnesses when the defense witness list comes

6    out.   You can look at that for yourself, by the way.

7              Your verdict should be based on the evidence and

8    the law that the Judge gives you.   I'm going to talk more

9    about that in a minute.   There is no way that I could have

10   enough time to respond to everything that Mr. Lowell said,

11   but I do want to respond on a few key points.

12             First, Mr. Lowell was right about at least one

13   thing.   The burden in this case is all our's.    It rests

14   totally on the government a hundred percent.     The defense

15   doesn't have to do an opening statement.    They don't have to

16   cross-examine any witnesses.   They don't have to make any

17   argument, but they did all of those things, and so you can

18   certainly consider what they did in your deliberations.

19             It is worth pointing out just some of what you

20   have to believe to believe their story.    You have to

21   believe, for example, that in December of 2008, Andrew Young

22   has the power to persuade Fred Baron, in a six minute phone

23   call, to fly him, Cheri Young and Rielle Hunter all over the

24   country for an undetermined amount of time, that Edwards had

25   nothing to do with it, that Mr. Baron just decided because
                                                              171




1    Andrew Young called him and asked him to, that he would do

2    this out of the goodness of his heart because he's just a

3    generous guy.

4               You have to believe that this man, Andrew Young,

5    who the defense has been ripping for weeks as exaggerating

6    his own role, saying he was a policy advisor when he wasn't,

7    saying he came up with the hundred county tour when he

8    didn't.    The guy who couldn't even keep Mr. Edwards'

9    schedule straight when he was working for him in D.C.,

10   folks, this guy is actually a criminal mastermind.   He's

11   behind the whole thing.    Andrew Young is behind the whole

12   thing.    It was his idea to have Mr. Edwards' mistress move

13   down to North Carolina to live with his family.   I'm sure

14   that was a lot of fun for Cheri and the kids.

15              It was his idea to fly all over the country with

16   his family, drag his kids everywhere to take care of the

17   demanding mistress of a presidential candidate.

18              You know, the one moment -- you may recall this,

19   the one moment that Mr. Young got emotional on the stand, it

20   only happened once, it was when he was talking about the

21   sacrifices his wife made to shelter their kids when they

22   were on the road doing what they were doing for Mr. Edwards.

23   Did that strike you as a sincere emotion?    We submit to you

24   that it was.    And, it makes powerfully the point that I'm

25   making here.    This wasn't his idea.
                                                              172




1              How about this:     It was Mr. Young's idea to take

2    paternity, and all Mr. Edwards did was grab a lifeline.

3    Come on, folks.     This notion that Mr. Young was in charge

4    and that Mr. Edwards was willing to just go along for the

5    ride, based on all that you've heard and all that you've

6    seen in this case, does that sound a little backwards to

7    you?   It does.    It is exactly backwards.   Any doubt that you

8    may have in your mind about who is in charge, what the

9    relationship is between these two guys, listen to the tape

10   that was played for you during Mr. Higdon's summation,

11   Government's 791, and listen to the way Andrew Young talks

12   to Mr. Edwards, not what he says, just listen to the way he

13   talks to him.     Use your commonsense and think about how

14   Mr. Young talks to Mr. Edwards, and then turnaround and

15   listen to Government's 29, 35 and 40.     Those are three calls

16   where Mr. Edwards is doing the talking, when he's talking to

17   Andrew.   Listen to the way Mr. Edwards talks to Andrew.

18   You'll have no doubt about who is running the show between

19   these two guys.

20             But, that's not the end of it.      Not only did

21   Andrew Young pull off this enormous grand scheme, he got a

22   whole bunch of other people together; Bryan Huffman, Tim

23   Toben, John Davis, Jennifer Palmieri, Wendy Button and all

24   of them got together and agreed to come in here and lie to

25   frame the defendant so that Andrew Young and Cheri Young
                                                              173




1    could keep all of this money for themselves.    Andrew Young

2    did all this, folks, Andrew Young.    That's nonsense.

3              Mr. Lowell spent a lot of time up here focusing on

4    Andrew Young and on what a bad person he is and how much he

5    had lied and statements in his book and all the money that

6    they kept.   Well, news flash, Andrew kept a lot of money for

7    himself, of course he did.    Andrew Young has lied in the

8    past, of course he has, but this has been the theme

9    throughout the case, ladies and gentlemen, and it is defense

10   101.   Make the case about the government's witnesses, or

11   witness, even.   Call him a bunch of names, hope the jury

12   ignores who is on trial, hope the jury ignores all the

13   evidence against the defendant.

14             Now, I'm not standing here saying that Mr. Young

15   deserves sympathy.   I'm not saying you should like him.       I'm

16   not saying he's likeable.    Make no mistakes, folks, no

17   matter what Mr. Lowell says about it, the defense is trying

18   to exploit that very fact, and the proof is in the pudding.

19             The example Mr. Lowell used a little bit earlier

20   today, imagine you are out on a street and you run into

21   Mr. Young and you ask him a question or he offers to do

22   something for you, ask yourself whether you would rely on

23   that as an important decision in your live.    What they are

24   trying to do is put you close to him so you'll push him

25   away, because they know that you don't like him.   That's not
                                                              174




1    the end of the inquiry, and I'm going come back to that in a

2    moment, because we got another take on that, but I'll return

3    to that subject.

4              All of this name-calling, Bonnie and Clyde,

5    making -- you know, there was a lot of rhetorical flourish

6    about Andrew Young and his credibility.      A lot of jokes.

7    How does that help you decide the factual issues you need to

8    decide about whether the government has proven the elements

9    of these crimes beyond a reasonable doubt?      It doesn't.    It

10   is not helpful to you.    More to the point -- well, I'm going

11   to keep going.    I got limited time.

12             How should you evaluate Mr. Young?      As we told you

13   in opening statement, and as Judge Eagles is about to tell

14   you, it should be with great care.      Great care means just

15   what it says.    It means careful, thoughtful consideration.

16   It means thinking about Mr. Young and each of the witnesses

17   individually and evaluating each witness's testimony on its

18   own merits.   It doesn't mean finding the quickest way out.

19   It doesn't mean wholesale throwing out all of Mr. Young or

20   any witness's testimony just because you don't like him, or

21   because he's done something that you don't think is fair or

22   because he is greedy and kept a lot of money for his house.

23             Make no mistake, folks, that is exactly what they

24   want you to do, throw it all out.    So, please, we ask you to

25   take your time and evaluate carefully, not rashly.
                                                               175




1                By the way, I'm going to get in a little while to

2    the areas of testimony and the argument that Mr. Lowell made

3    about all of the occasions on which the government is only

4    relying on Mr. Young, but surely you all remember, that that

5    wasn't the case with a lot of what he said.

6                There is plenty of what Mr. Young told you that

7    was corroborated by other witnesses and other evidence in

8    the case, and this could be anything from what they told

9    Mrs. Mellon, namely that it was for a non-campaign purpose.

10   Mr. Huffman told you the same thing.     I guess he wasn't

11   lying about that.    Mr. Young told you, just another example

12   off the top of my head, that Mr. Edwards maintained interest

13   in being vice president or attorney general after the

14   election.    You know, that was corroborated eight ways from

15   Sunday.    I guess he wasn't lying about that.

16               So here is the other take on Mr. Lowell's example.

17   When you are making an important decision in your life, here

18   is another way to think about it.    You might ask someone's

19   opinion.    You might talk to someone.   You may not take their

20   word for it.    You may ask a second, third or a fourth

21   person, but when all three or four of those people start

22   saying the same thing, then you start paying attention.

23               By the way, if all Mr. Young was doing was

24   sticking to the government's story, as Mr. Lowell suggested

25   that he was, saying whatever it took in that witness chair
                                                             176




1    to make the government -- or to help the government or to

2    make its case, don't you think he could have done a lot

3    better job of that?

4               He said that Mr. Edwards told him that he had

5    checked with lawyers and the checks were legal.     That's what

6    Mr. Young's sworn testimony was.    That is a fascinating

7    thing to say by someone who had just tricked the government

8    to immunizing him by being willing to say anything that the

9    government wants in order to sink the defendant.    That

10   doesn't fit.

11              How about this one:   Mr. Young testified that he

12   told Mrs. Mellon that the money was not for a campaign

13   purpose.    Well, that's really great for the government's

14   case, folks.    Don't you think Mr. Young could have done a

15   lot better job than that if he was willing to say anything

16   the government wanted him to say?

17              How about this one?   What I call the creepy car

18   ride, August 18, 2008, where he's in the car with

19   Mr. Edwards.    Mr. Young's testimony was, that Edwards looked

20   at him and said, "I didn't know about those checks, did

21   you?"    Boy, that's a real zinger there, people.   He really

22   stuck it to Mr. Edwards with that one.

23              I don't want to get too cute, but you get the

24   point.    It was not the case that Mr. Young was willing to

25   say anything at all that the government wanted him to say.
                                                              177




1    If that was true, he could have done a heck of a lot better

2    job of it.

3             How about this one.      The second example I gave a

4    moment ago, that the fact that Mr. Young instructed or told

5    Mrs. Mellon that the money was not for a campaign purpose.

6    Did you catch this?    Did you notice that the defense

7    embraced that?

8             Whenever anything Mr. Young said was helpful to

9    them, you should credit it, but whenever Mr. Young says

10   anything that hurts them, he's Bonnie and Clyde, he's the

11   butt of a joke, he's a liar.

12            I want to run through a couple of examples of

13   stuff that happened at trial, not so much during

14   Mr. Lowell's closing, but there was a lot of time spent on

15   cross with these folks and I think there are some

16   illustrative examples from what happened during trial.

17            The defense has overplayed their hand with

18   Mr. Young.   Remember the questions to Mr. Huffman, to

19   Mr. Brumberger, to Mr. Nelson, all that were making a big

20   deal of saying that Mr. Young wasn't at the first meeting

21   with Mrs. Mellon?   Do you remember all of those questions?

22   Let's see what Mr. Young said about that.

23            "Question:    Were you present for Mr. Edwards'

24   first meeting with Mrs. Mellon?

25            "Answer:     No, sir."
                                                                178




1                Here is another one put on -- they put on Harrison

2    Hickman and Elizabeth Nicholas to talk about what a terrible

3    job Mr. Young did as a scheduler while he was in Washington.

4    What did Mr. Young say about that?

5                "Question:   Were you happy in that job?

6                "Answer:   No, sir.

7                "Question:   Why not?

8                "Answer:   I was out of my element.   I was

9    homesick.    It was rough on my marriage and I wasn't very

10   good at the job."

11               This is what they are reduced to, folks.      They are

12   not satisfied with the fact that the guy's book has

13   inaccuracies or that he kept a bunch of money for himself or

14   his family, or with the lies that he's admitted.       That's not

15   enough for the defense.     They overplayed their hand.    They

16   pretend that Mr. Young lied when he didn't.

17               It also is not enough to offer into evidence

18   Mr. Young's phone records around the time of Mrs. Mellon's

19   first check in order to show that Mr. Young may not have had

20   the exact sequence down of the series of people that he and

21   Mr. Edwards had talked to about trying to raise money from

22   them to take care of Mrs. Hunter.     That's not enough for

23   them.

24               They overplayed their hand.   They offered into

25   evidence the same set of records, this was Defendant's 1010,
                                                             179




1    and cross-examined him about it, but they delete the calls

2    with Mrs. Mellon that they don't want.     They delete all the

3    calls that involved Boyd Tensley, and then they extract an

4    entire page of records, as you saw from Government's 689Q,

5    just happens to contain a 30 minute phone call with David

6    Kirby.

7               Here is the point.    Why is the defense doing this?

8    They are overplaying their hand.     It is desperation time,

9    folks.    Throw anything and everything at Mr. Young, get the

10   jury thinking about no one else.

11              It was more the same with the finances and

12   Mr. Walsh.    This was a dog and pony show.   Bring somebody

13   in, spend half a day talking about the Youngs' finances, put

14   up some graphs, put up some charts, put up a lot of red

15   numbers, even though they weren't really in the red, even

16   though none of their accounts was overdrawn by more than a

17   small amount.    Do all of this in the hope that maybe, just

18   maybe, the jury will forget what and who this case is really

19   about.    Don't fall for it.

20              Mr. Lowell made a point about the three different

21   charts.    You may recall a series of questions on

22   cross-examination about whether a particular entry on the

23   chart was for a Radio Shack in Oxnard, or a Radio Shack in

24   Chapel Hill or a CVS in Santa Barbara and a CVS in Chapel

25   Hill.    Seriously.   Think about any occasion where you had to
                                                             180




1    go back and collect receipts, whether it was for a long

2    weekend or business trip or whatever.

3              Now, think about what these people were trying to

4    do, not just collect the documents, but then to parse and

5    categorize each one.   On this point, do you remember a

6    series of questions that I asked Mr. Walsh about the amount

7    of time that he had spent, the software that was at his

8    disposal, the comprehensive set of records that he had?       I

9    think you all got the point there, but I just want to make

10   sure, judging by the cross that occurred.   The point was not

11   to suggest that Mr. Walsh has more resources at his disposal

12   than the government.   The point was, that he had far more

13   time, far more tools, far more experience, far better

14   information than the Youngs, because it was their work that

15   Mr. Walsh was attacking with his testimony.

16             On this subject, they made a big deal about how

17   the numbers on the three different charts were different.

18   Well, of course they are.   There were different purposes for

19   each chart.   One was for Mr. Baron that he asked for kind of

20   off-the-cuff.   Give me a rough idea of how much you all have

21   spent.   The other one was in connection with this other

22   litigation, where they are trying to compile all the

23   expenses they can possibly think of related to the affair.

24   The third one was for the gift tax reforms to the IRS, where

25   the number is smaller.   They're conservative.   All of that
                                                            181




1    makes sense.

2              On all of this stuff, folks, we just ask you to

3    please, don't fall for the easy sell.    Don't fall for what

4    it looks like.   Look underneath it, because you don't have

5    to dig very far to see that it is a false argument.

6              One more thing on this.   How many questions did we

7    have to hear about whether the Youngs listed the money, the

8    extra money that they spent that they received from

9    Mrs. Mellon or Mr. Baron on their tax returns?    We heard

10   about it at least twice during argument from Mr. Lowell

11   today.   There is a simple answer to that.   They didn't owe

12   taxes on those monies, so when Mr. Lowell makes a big deal

13   about saying, as he did today, they didn't pay taxes on the

14   1 million some dollars that they received from Mrs. Mellon,

15   or they didn't pay taxes on the difference that they kept

16   for themselves, they don't owe taxes on that money, folks.

17   It is another distraction.

18             I could go on about Mr. Young, but here is the, I

19   think in a way, the bottom line.    You heard a lot from

20   Mr. Lowell today about all of the evidence that the

21   defendant says came only from the mouth of Andrew Young.     As

22   we've discussed, it's not true as to a lot of what he said,

23   but it is certainly true as to some.    On this point, we ask

24   that you please remember this, that's just the way Edwards

25   wanted it.
                                                                  182




1               Don't forget this.    Mr. Edwards made a choice

2    about who he was going to use.      Who he was going to use for

3    this task.   Mr. Edwards chose Andrew Young.       He chose him

4    for a reason.    He says to himself, this is the perfect fall

5    guy.   He's not that smart.     People on the campaign don't

6    really like him, and most important, no one is going to take

7    this guy's word.    No one is going to believe him.     This is a

8    guy I can use and throw under the bus when I'm finished with

9    him, and the Greyhound, folks, has been rolling through this

10   courtroom for weeks.    Why?    You know why.

11              There was lots of evidence in this case about

12   Mrs. Mellon wanting to be -- wanting Mr. Edwards to be

13   president, hosting fund raisers, making campaign buttons,

14   putting out election signs and so forth.        I want to be clear

15   on this one.    No one from the government is disputing that

16   Mr. Edwards and Mrs. Mellon became friends or that they

17   became fond of one another, but as Judge Eagles will

18   instruct you later today, the government doesn't have to

19   prove that influencing the election was her sole or only

20   purpose.   The law isn't as the defense suggested during

21   opening, that influencing the election must be the purpose

22   of the payments.    That's not the law.

23              Let's face it, commonsense tells you anyway, that

24   people rarely act with a single purpose in mind.       The

25   question for you will be, did she have a real purpose in
                                                             183




1    wanting to influence the election.    Is that what this was

2    about, just speaking colloquially.    Is that what this was

3    about?

4              A few things on this.   First, don't forget the

5    note that started the whole thing.    Anything the Senator

6    needs that is necessary and important for his campaign, send

7    the bills to me.   That's the first clue about where her head

8    is when this all starts.

9              Second, think about the notes that came with the

10   checks.   One of them said, "For the rescue of America."      It

11   didn't say, for Mr. Edwards' personal needs.     It didn't say

12   for his creature comforts.    It said, "For the rescue of

13   America," and Mr. Lowell posed a rhetorical question to you,

14   and I'm going to flip it and pose it the same way.    If

15   Mr. Edwards isn't running for president, does Mrs. Mellon

16   give him any of this money?   Of course not.    I mean, we can

17   have a debate about whether if he isn't running for

18   president she even gives him one thin dime, but what you

19   know for sure is, that she isn't giving him $725,000 if he's

20   not running for president.    No way, no how.

21             These monies were plainly for the purpose of

22   influencing an election for federal office.     There is simply

23   no question about it.

24             Now, what about Mr. Edwards' knowledge about

25   Mr. Baron's money and his scheme to hide Ms. Hunter?    The
                                                               184




1    evidence on this comes from the beginning to the end of the

2    episode.    Right after Mr. Toben takes them to the airport,

3    Mr. Edwards calls Toben to say, Thank you.    Mr. Toben knew

4    what he was talking about, you know what he's talking about.

5                After they're already gone on the road, they're

6    into January, shortly before -- or late December, shortly

7    before the Iowa caucuses, somewhere in there, Mr. Baron told

8    Mr. Edwards on the plane that he wouldn't have to worry

9    about the press any more, because he has taken care of it,

10   he's flying them around the country.    That's what Mr. Davis

11   told you.

12               Long after it was all over, you got Mr. Edwards

13   telling Wendy Button that he knew all along that Fred was

14   footing the bit.    I don't have time to digress on this issue

15   of whether Ms. Button said it was all for Quinn or whether

16   Ms. Button made it clear in the testimony that Edwards was

17   talking about the escapade.    I'll leave it to you-all's

18   memory on that.    The record is pretty clear.

19               Mr. Higdon showed you all the phone contact

20   between Ms. Hunter and Mr. Edwards and Mr. Young and

21   Mr. Edwards during December and January.    Does it make

22   sense -- oh, by the way, you know, you also have phone

23   records in evidence you can look at that established all of

24   the calls that happened from December 12th when Ms. Hunter

25   was caught at the Whole Foods, up until December, I don't
                                                               185




1    know, 17th or 18th, when they finally get on their way to

2    Florida.    There is lots and lots and lots of calls.

3               I don't think it is disputed that a lot of those

4    calls Mr. Edwards was involved in trying to convince these

5    folks to take paternity.     Does it make sense to you that

6    Mr. Edwards was as involved as he was, with trying to get

7    Mr. Young and Ms. Hunter to say Mr. Young was the father,

8    but he had no clue about the travel plans or that Fred would

9    pay?   No way.    Of course he knew.   He was in on it from the

10   git-go.    It would never have happened without him.

11              Here is a larger point worth emphasizing that I am

12   going to have to do in summary fashion, and now is as good a

13   time as any.     None of this would have happened without

14   Mr. Edwards.     None of this would have happened if he didn't

15   want it to happen; running for president, having the affair,

16   asking for the Bunny money, accepting the Bunny money,

17   accepting the payments from Mr. Baron, having Mr. Baron make

18   the arrangements for the cross-country travel, Mr. Young

19   actually going cross-country with his family, staying in the

20   race after Ms. Hunter became pregnant, staying in the race

21   after the first National Enquirer article, after the second

22   National Enquirer article, the push to be vice president or

23   attorney general, Nightline interview.       None of this would

24   have happened, if Mr. Edwards didn't want it to happen.         Of

25   course he knew.     He knew it all, folks.
                                                             186




1               A quick word about Mr. Baron's support after

2    Mr. Edwards dropped out of the race.    There has been lots of

3    discussion about that, and the argument goes something like

4    this:    Because Mr. Baron gave so much support after

5    Mr. Edwards ceased being a candidate, it must be that his

6    intention all along, had nothing to do with Mr. Edwards and

7    running for office, and had everything to do about helping

8    out his good friends Andrew and Rielle.

9               This is why you heard the evidence about Mr. Baron

10   wanting Edwards to be attorney general or about him

11   continuing -- about Mr. Edwards continuing to want to be

12   vice president and so forth.    I won't reiterate the

13   testimony that's conclusive on those subjects from

14   Ms. Palmieri and Mr. Hindery.

15              Here is the point.   The point is not that those

16   payments after January 30th are charged, because they are

17   not.    The point isn't that they can be a basis of

18   conviction, because they can't.

19              The point is, the reason you heard all of the

20   evidence is, is that the reason that those payments were

21   made, had nothing to do with Mr. Baron being friends with

22   Andrew and Rielle, and had everything to do with getting

23   Mr. Edwards into a position of power.

24              Remember, what is charged are the payments

25   Mr. Baron made in December '07 and January '08.   Those are
                                                              187




1    the payments you have to make a decision about.   What was

2    going on when those payments were made?    What was going on

3    when Mr. Baron decided to make those payments?    What was

4    going on was, the presidential campaign was in full swing,

5    high intensity mode.    Iowa is only three weeks away.   It is

6    a hugely important event, and Edwards has just convinced

7    Mr. Young to claim paternity to, "protect everything that

8    they had agreed to work for," in other words, the

9    presidency.   That's when Mr. Baron agrees to step in.

10             That's the evidence you should be considering when

11   you think about what Mr. Baron's purpose was in flying those

12   folks out of Chapel Hill and all over the country.    There is

13   no question that those payments were made for the purpose of

14   influencing the election.

15             Here is another one.    The evidence that

16   Mr. Edwards knew his course of conduct was illegal.      I'm

17   going to start with the preliminary point here.   The

18   government does not have to prove that Mr. Edwards knew

19   chapter and verse that he was violating section so-and-so of

20   United States Code.    What we have to prove and what we

21   anticipate Judge Eagles will instruct you is, that we have

22   to prove that Mr. Edwards knew that his course of conduct

23   was against the law.

24             On this score, we suggest that you take the law

25   from Judge Eagles on this.    What is the evidence on that?
                                                              188




1    It's just what I told you all during opening, the repeated

2    lies that he told during a time period when he had no reason

3    to lie, other than to protect himself from criminal

4    liability, and the lies and the evidence shows that all of

5    the lies were in fact lies.    The denials that he made were

6    false.    The biggest one of all, of course, is the Nightline

7    interview.    I'm not talking about the lies in the interview

8    about the affair.    I'm talking about the lies about the

9    money.

10              By the way, you may remember -- you can watch it

11   again if you want.    Did you notice how he introduced each

12   one?    Did you notice how he introduced the subject of, by

13   the way, Bob, these are allegations from a supermarket

14   tabloid.    Did notice when Mr. Woodruff asked him about

15   whether payments were being made to take care of Ms. Hunter,

16   remember one of the first things Mr. Edwards said was, by

17   the way, Bob, these are all allegations in a supermarket

18   tabloid.    That's an interesting coincidence.    It is quite

19   telling.    Both statements were lies.

20              Mr. Edwards said, I never talked to Fred about

21   this.    The phone records Mr. Higdon showed you at a minimum,

22   that that's not true.    Mr. Lowell says, well, we don't know

23   what happened in those phone calls.      True, we don't have a

24   witness about what happened in those phone calls, but what

25   do we have?    We know that around that time, there were
                                                              189




1    reports in the press that Mr. Baron was bankrolling this

2    operation.    We know that Mr. Edwards goes on and then says

3    on national television that he hasn't spoken to Fred and

4    that same day, Mr. Baron issues a statement saying

5    everything was for Andrew -- my friends Andrew Young and

6    Cheri Young and Mr. Edwards knew nothing about it.      That's

7    called circumstantial evidence, and that's how we know what

8    those men were talking about in that series of phone calls

9    Mr. Higdon pointed out to you leading up to the Nightline

10   interview.

11              It is not a coincidence, folks.     Mr. Edwards lied

12   about it because he knew what he had done was against the

13   law.

14              Incidentally, those questions about the use of

15   money to hide the affair during the Nightline interview,

16   that has nothing to do with Mrs. Edwards.      That has nothing

17   to do with keeping the existence of an affair from his wife,

18   and then later, we've got the statement to Ms. Button that,

19   I got to take that money line out, that's what she called

20   it.    I got to take the money line out for legal and

21   practical reasons.    Couldn't admit that, because he knew it

22   was against the law.    That's what he does.    He denies as

23   much as he has to.    He denies it whenever it suits him.      He

24   pretends not to know things when it suits him.      He lies as

25   much or as little as is necessary.
                                                             190




1                I didn't know about the Bunny money, did you?

2    Rielle wasn't in Florida, what are you talking about; or, in

3    the Nightline interview, I never paid a dime to any of these

4    people that are involved, so if the allegation is that

5    somehow I participated in the payment of money, that is a

6    lie, an absolute lie, which is typical of these kinds of

7    publications.

8                I'm going to stick with the Nightline interview

9    for a moment, and direct your attention to a couple of pages

10   later in the transcript, page 16.    Mr. Edwards says, you

11   know, is it possible that Fred wanted to help because they

12   were in a difficult time, of course.     Is it possible that

13   he's worried that in fact something had happened with me and

14   he wanted to help, I mean, I think all of these things are

15   possible.    Does that sound familiar?

16               A brief word about the incident in the hangar.

17   Mr. Lowell attacked us pretty hard on this and said it was

18   an awful thing that the government did, so I just, on this

19   small point, I want to be clear with the jury about why the

20   evidence came in.

21               The timing of this was the same day that The

22   National Enquirer story came out, October 10th of '07.      This

23   was four days after the fight that had happened in the hotel

24   room in Davenport, Iowa.    This horrible thing happens.    To

25   his face by his wife she says, "You don't even see me."
                                                                191




1    And, what does he do?       He leaves for a campaign event.

2                Now, the point is not to make you dislike

3    Mr. Edwards.    The point is, this is powerful evidence of

4    where his head is, what his priorities are.       His priority

5    wasn't his family, his priority was his campaign.

6                THE COURT:   You have three or four more minutes.

7                MR. HARBACH:    Thank you, Your Honor.

8                MR. HARBACH:    Speaking of his family, Mr. Lowell

9    mentioned Mr. Edwards' children and his parents in his

10   closing statement, and I am going to say nothing about that,

11   other than Judge Eagles' instructions will make it

12   crystal-clear about what role comments like that should play

13   in your deliberations.

14               There is no way I can do it all.     How about this

15   one, it was all over in December.       I'm not going to spend a

16   lot of time on this.       You seen the polls, you seen the

17   emails, you know that the campaign continued.        You know

18   people were working really hard.       You also know that Mr.

19   Edwards could of quit at any time.       The suggestion that he

20   knew in mid November that it is was all over is just

21   nonsense.    That doesn't even pass the smell test.

22               Frankly, ladies and gentlemen, nor does the

23   argument that the reason he continued had nothing to do with

24   actually wanting to be president and everything to do with

25   just Mrs. Edwards wanting him to.       That doesn't pass the
                                                             192




1    smell test, either.

2              This business about the Youngs being attacked

3    during trial, during closing by the fact that Mr. Young

4    saved voice mails or the fact that they videoed taped some

5    of Ms. Hunter's furnishings.   First of all, there was a

6    second video that defense didn't play for you that is

7    evidence that makes it clear what they were doing.

8              Remember the circumstances.    The campaign is

9    trashing Mr. Young once he goes on the road.    There is a

10   long period of time after the baby is born during which

11   there is radio silence from Mr. Edwards.    They are going

12   great guns on this foundation idea, and then Mr. Edwards

13   hangs up on him, and then there is the creepy car ride that

14   you all know well and all the strange things that happened

15   on that, and then he gets a voice mail from Fred saying

16   their phones are tapped.

17             You know, the notion that they were doing this

18   videotaping because it was part of some big criminal

19   mastermind scheme, just doesn't fit.    Are these two people

20   who are criminal masterminds, or are these two people who

21   are in deep.   They are in very deep and they are freaking

22   out about their own exposure and what they've gotten

23   themselves into.   It is as simple as that.

24             I have one last subject before I close:

25   Ms. Haggard and Mr. Thomas.    A lot from Mr. Lowell on this
                                                             193




1    during closing.

2              Judge Eagles is about to tell you in a

3    crystal-clear fashion, about the role that opinion testimony

4    from these witnesses should play in your deliberations.       I

5    don't have time to read it, but pay close attention to what

6    Judge Eagles tells you about it.    It is going to be in her

7    instructions.

8              Also remember with Ms. Haggard, she's got bias

9    issues, folks.    She is the CFO or the controller for this

10   campaign in '04 and '08.    Do you really think when she hears

11   news reports about the $700,000 in potential campaign

12   contributions that come out in an indictment in the summer

13   of '11, that she is going to just roll over to the FEC and

14   say, of course these were contributions that should have

15   been in our forms.    Of course not.   That wouldn't be good

16   for her, so she has a little bit of a bias problem there.

17   It would not be good for her professionally, and she knows

18   it.

19             You don't have to think badly of Ms. Haggard, I'm

20   not suggesting that, to know that she was not objective on

21   this issue.   Second, she doesn't know the law.    The answer

22   that Ms. Haggard gave about why the payments weren't

23   contributions in her view, went something along the lines

24   of, because they were not contributions to the campaign, to

25   urge the public to vote for John Edwards, and they were not
                                                             194




1    qualified expenditures for the same reason.     You're not

2    going to hear that anywhere in Judge Eagles instructions,

3    because that's not the law.

4              She also made it --

5              THE COURT:   You got about thirty seconds.

6              MR. HARBACH:   Thank you, Your Honor.    Finally,

7    folks, Ms. Haggard didn't have all the evidence.    You do.

8    This is your case to decide, not Ms. Haggard's, not

9    Mr. Thomas', not the FEC's, not the government's, not anyone

10   else's.   You are a lawfully impanelled jury in a District

11   Court of the United States.     You are the only ones with all

12   the facts, the only ones who will get a proper instruction

13   on the law from Judge Eagles and the only ones who are

14   empowered and qualified to finally decide this case.    Nobody

15   else.

16             All the distractions that came into this case were

17   designed to take you away from the mountain of interlocking

18   self-reinforcing evidence.    We ask you to do three things:

19   Focus on the evidence.   Don't get distracted.    If you focus

20   on the evidence and the law that Judge Eagles is about to

21   instruct you on and your commonsense, it is over.

22             The government submits that the evidence we

23   presented to you establishes unequivocally and beyond a

24   reasonable doubt, that the payments at issue in this case

25   were contributions, and Mr. Edwards knew it, and he knew
                                                          195




1    accepting them was against the law.

2             The only conclusion that is consistent with the

3    evidence and reflects the truth, the truth is, that he is

4    guilty of every charge in the indictment.

5             (Closings concluded.)

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                                                             196




1                       C E R T I F I C A T E

2

3            I, J. CALHOUN, RPR, United States District Court

4    Reporter for the Middle District of North Carolina, DO

5    HEREBY CERTIFY

6

7            That the foregoing is a true and correct transcript

8    of the proceedings had in the within-entitled action; that

9    I reported the same to typewriting through the use of

10   Computer-Aided Transcription.

11           THIS TRANSCRIPT CERTIFICATION IS VOID, IF THE

12   SIGNATURE IS NOT ORIGINALLY SIGNED BY THE COURT

13   REPORTER WHO REPORTED THIS MATTER.

14

15

16

17

18

19   Date:   05/18/12         J. Calhoun, RPR
                              United States Court Reporter
20                            324 W. Market Street
                              Greensboro, NC 27401
21

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