N.Y. State Regulators Target the Trump Organization's Insurance Broker; Judge Wants Roger Stone to Explain Himself After Book Released Criticizing Mueller
KATE BOLDUAN, CNN ANCHOR: Joining me right now, CNN legal analyst and former federal prosecutor, Shan Wu, is here. Shan, as Kara just laid out, the New York State regulator is asking for information going back a decade. What is it that they're looking for with this subpoena, do you think?</s>SHAN WU, CNN LEGAL ANALYST: So they're looking for misrepresentations, fraudulent statements. The key here is they have to be material. As a prosecutor, that's what you're going to look for. I'll give you a very sophisticated legal definition on how to tell the difference. If you claim your leg hurts from a car accident and the insurance company disagreed with you, probably not material. However if they catch you out dancing at night, jumping around that's going to be material. When a valuation of an asset goes up tens of millions of dollars, that's like being caught out dancing at night.</s>BOLDUAN: What reaches the level of turning an insurance claim investigation into a criminal investigation?</s>WU: That's going to be up to the prosecutors. And although the insurance company has been open about the fact that they received the subpoena, which they're free to talk about, it's quite possible that the federal prosecutors or the state prosecutors have already issued subpoenas. Those tend to be secret and they ask the targets to keep them secret. Certainly as the report was saying, they can make a referral to the criminal prosecutors. But the prosecutors don't have to wait for referral. They're looking at this information, they heard the same testimony. They will open up something dependent and they could be doing that already.</s>BOLDUAN: While I have you, I want to ask you about Roger Stone. Stone is in trouble -- honestly this is bananas. Stone's in trouble once again with the judge again in his criminal case. He releases his book and in it, he calls the Special Counsel Robert Mueller crooked. Now the judge says that Stone needs to explain himself once again and explain why he thinks he is not in violation of the gag order she has set. And he has to do that by Monday. This is the second time she's hauled him into court over his public comments. We don't need to go back and talk about the Instagram posting and everything that surrounded that. When does it reach the point where this judge just simply says you've violated a court order and you're going to jail? I mean, where is the line? What is she considering?</s>WU: She's considering making her record carefully and certainly in the court of public opinion, I mean my opinion too is he has crossed the line. But she wants to do it by the book. She is very by the book, controls her courtroom.</s>BOLDUAN: For our viewers for some perspective, you have been before this judge before. You know how she operates.</s>WU: That is correct. I was subject to her gag order. I will say that we were much more careful about it than Roger Stone has been. She's giving his lawyers the full chance to make their record and she wants to make sure she has a proper record. Even though I have lots of rule number ones for a criminal defense, rule number one is don't surprise the judge. OK to surprise the prosecutors but don't surprise the judge. I cannot imagine why they would not have right away told her that this republication was coming out rather than trying to hide it. It makes no sense. It can only be poor legal advisor incredibly ignorant on his part to just ignore it.</s>BOLDUAN: On the theme of the problems and the risks of late-night dancing, dancing also on the line of, am I violating my gag order or not, is also never a good place to sit once, twice, at all. Good to see you, Shan.</s>WU: Good to see you, Kate.</s>BOLDUAN: Thank you. Coming up, there's big pushback coming from the White House as lawmakers zero in on President Trump's inner circle. When it comes to the investigations, is this oversight or is this overreach? One top Democrat joins me, next.