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The Guardian - US
The Guardian - US
World
Maanvi Singh and Gloria Oladipo

Trump and two eldest children must testify in New York fraud investigation, judge rules – as it happened

Donald Trump at the White House in November 2020, just before the election.
Donald Trump at the White House in November 2020, just before the election. Photograph: Carlos Barría/Reuters

Today's politics recap

  • A New York judge ruled that Donald Trump and two of his children, Ivanka Trump and Donald Trump Jr, must comply with a subpoena from the state’s attorney general Letitia James to sit for a civil disposition. Trump is likely to appeal the decision.
  • Joe Biden believes a Russian invasion of Ukraine is imminent and that he believes a false-flag operation was under way that Moscow would use to justify an invasion. The Guardian’s separate Ukraine live blog is here.
  • The House announced the Covid-19 measures that will be in place for Joe Biden’s 1 March State of the Union address. Masks, social distancing and testing will be required, and boosters will be “strongly recommended”. Members of Congress are invited to attend but are not allowed to bring guests.
  • House minority leader Kevin McCarthy has come out with an endorsement for Liz Cheney’s primary opponent, making official the in-fighting that is taking place within the GOP.
  • The Senate will vote on a bill extending funding for the government through 11 March to avert a shutdown at midnight tomorrow.

– Lauren Aratani and Maanvi Singh

The Senate is voting on Republican amendments to a bill extending funding for the government through 11 March to avert a shutdown at midnight tomorrow.

The first of such amendments, from Utah Republican senator Mike Lee, would defund Biden’s vaccine mandate for healthcare workers, federal workers, and the military. Another, from Texas’ Ted Cruz, would defund schools and child care centers that mandate the vaccines for children. Florida’s Marco Rubio meanwhile, wants a vote on his measure that would prohibit the federal government from buying any crack pipes or drug paraphernalia – which was spun out of false claims from conservative media that the administration was providing such pipes as part of a harm reduction program.

Today so far

Here’s a quick summary of everything that’s happened so far today:

  • A New York judge ruled that Donald Trump and two of his children, Ivanka Trump and Donald Trump Jr, must comply with a subpoena from the state’s attorney general Letitia James to sit for a civil disposition. Trump is likely to appeal the decision.
  • Joe Biden believes a Russian invasion of Ukraine is imminent and that he believes a false-flag operation was under way that Moscow would use to justify an invasion. The Guardian’s separate Ukraine live blog is here.
  • The House announced the Covid-19 measures that will be in place for Joe Biden’s 1 March State of the Union address. Masks, social distancing and testing will be required, and boosters will be “strongly recommended”. Members of Congress are invited to attend but are not allowed to bring guests.
  • House minority leader Kevin McCarthy has come out with an endorsement for Liz Cheney’s primary opponent, making official the in-fighting that is taking place within the GOP.

Stay tuned for more live updates.

Updated

Hillary Clinton just spoke at New York governor Kathy Hochul’s nomination ceremony at the New York Democratic Committee convention in New York City.

During the speech, which was apparently aired by Fox News, Clinton slammed Republicans for “defending coup plotters”, saying that the January 6 insurrection was a “gift” to China and Russia.

“They know something that we need to remember: America is only as strong as our unity and democracy.”

Cinton also said she would “work [her] heart out” this year to support Democrats during this year’s midterm elections.

Updated

House minority leader Kevin McCarthy is endorsing the primary challenger of representative Liz Cheney, the Wyoming Republican who has drawn ire from her GOP colleagues for criticizing Donald Trump and serving on the House committee investigating the Capitol insurrection.

In an interview with The Federalist, McCarthy said that he has spent time with Cheney’s opponent, Harriet Hageman, who “is readily apparent she will always listen and prioritize the needs of her local communities and is focused on tackling our nation’s biggest problems,” he told the magazine.

“I look forward to serving with Harriet for years to come.”

Republican leaders have been trying to tamper calls to oust Cheney as the midterm elections approach. McCarthy had previously refused to comment on whether he would support Cheney in her primary election.

A spokesperson for Cheney’s office told Politico in a quick response to the endorsement: “Wow, [Hageman] must be really desperate.”

Updated

Senate Democrats had a meeting over lunch with White House chief of staff Ron Klain where, when asked about plans for the social spending bill, Klain reportedly said “there are times when it’s better to say a little, and that’s what I’ll do today,” according to Politico, which quoted an anonymous attendee of the meeting.

Instead, the senators and Klain discussed Biden’s upcoming State of the Union address and progress on Biden’s supreme court nominee pick. Though senators inquired on specifics, the White House remained mum on its timeline.

“It feels like they’re very close,” Senator Debbie Stabenow told reporters after the meeting. “We tried to get a name but couldn’t get it out of them. But, you know, they’re certainly zeroing in on someone.”

Updated

In other news, new Covid-19 guidelines have emerged for Biden’s upcoming State of the Union address on 1 March.

According to a memo sent out by the House sergeant at arms:

  • All members of the Congress are invited to the speech, but are not permitted to bring along any guests.
  • Social distancing will be required.
  • K-N95 masks will be required.
  • All attendees are required to take a PCR Covid-19 test within one day of the speech.
  • A Covid-19 booster shot is not required, but “strongly recommended”.

Updated

Tish James has tweeted about the decision today that Trump and his children must testify under a subpoena previously issued.

James wrote:

Today, a court ruled in our favor that Donald Trump must appear before my office as part of our investigation into his financial dealings.

No one will be permitted to stand in the way of the pursuit of justice, no matter how powerful they are.

Updated

Donald Trump and children must testify under subpoena from New York AG Tish James

Today, a judge ruled that Donald Trump and his two oldest children, Ivanka and Donald Trump Jr, must testify under a subpoena that was issued by Tish James, New York attorney general, in December.

Trump, left, and Tish James, right.
Trump, left, and Tish James, right. Photograph: Robyn Beck/AFP/Getty Images

Judge Arthur Engoron issued the ruling following a two hour hearing with arguments from lawyers with James’ office as well as Trump’s lawyers, reported the Associated Press.

“In the final analysis, a state attorney general commences investigating a business entity, uncovers copious evidence of possible financial fraud, and wants to question, under oath, several of the entities’ principals, including its namesake. She has the clear right to do so,” said Engoron.

While an appeal to the decision will likely be filed, if upheld, Trump will be faced with the decision to answer questions under oath or plead the fifth and stay silent to prevent self-incrimination.

Updated

In other news, the Senate has cleared an initial hurdle for a stop-gap funding bill, nearing passage of the bill that would avoid a government shut down on Friday.

The Senate voted 65-30 today on a procedural obstacle for the funding plan that would provide funds until 11 March. The bill still needs to be passed and signed by Biden before the shutdown deadline, Friday at midnight.

Many lawmakers are worried at how a temporary shutdown would be perceived amid increasing tensions between Russia and Ukraine, reported Reuters.

“A government shutdown would be useless, senseless. Can you imagine how that would look to the Russians?” said Patrick Leahy, the Senate Appropriations Committee chairman, in a speech shortly before the vote.

Despite some bipartisan cooperation, some Republican senators have said they will insist on votes for several, controversial amendments, reported Politico, including funding for “crack pipes” as well as funding for schools and child care centers that require vaccines.

But lawmakers remained hopeful that the deadline could be met:

“If we keep working in a bipartisan way, which we’ve been doing the last week or two, maybe we’ll get there,” said Republican Senator Richard Shelby of Alabama, an Appropriations Committee ranking member.

Updated

Earlier this afternoon, Letitia James accepted the nomination from the New York State Democratic Party to run for a second term as the state’s attorney general.

During her acceptance speech at the state’s democratic convention, James spoke about the investigation she led against former New York governor Andrew Cuomo, saying: “It has become clear that the former governor will never accept any version of these events other than his own,” with James adding, “To achieve that, he is now claiming the mantle of victim and disgracefully attacking anyone in his path.”

“Pushing others down in order to prop himself up. But I will not bow. I will not break,” said James as the audience applauded.

In her speech, James also added that she will not be “bullied” by Cuomo or Donald Trump, in reference to the civil investigation James conducted into Trump’s business activities.

Updated

In court in Manhattan, where New York attorney general Letitia James wants a judge to enforce a subpoena to get Donald Trump to answer questions under oath in the civil investigation into his business, we’ve heard from a different lawyer for Trump.

Hat trick. Trump on tour.
Hat trick. Trump on tour. Photograph: Robyn Beck/AFP/Getty Images

James wants the former president, Ivanka and Don Jr Trump to testify. There’s a parallel criminal investigation into the family business.

The AP further reports:

Another lawyer for Donald Trump, Alina Habba, accused James of trying to use the civil investigation to gather evidence for the criminal probe.

She said the civil investigation should be stayed until the criminal matter is over, claiming James’ office is putting the Trumps “in a position where they either disclose evidence in a civil investigation or they have to invoke the constitutional right not to testify, thereby triggering an adverse inference in the civil action.”

“How is that fair, your Honor? We have to stop one,” she asked the judge.

Alan Futerfas, a lawyer for Ivanka and Donald Trump Jr., said during the court hearing that he had no reason to believe, so far, that either are targets of the [Manhattan] district attorney’s [Alvin Bragg] criminal investigation.

In a statement Tuesday, Trump railed against what he called a “sham investigation of a great company that has done a spectacular job for New York and beyond” and a racially motivated “continuation of a Witch Hunt the likes of which has never been seen in this Country before.”

In a court filing this week, James included a letter from Trump’s longtime accounting firm [Mazars] advising him to no longer rely on years of financial statements it prepared based on his company’s valuations, given the questions about their accuracy.

Last summer, spurred by evidence uncovered in James’ civil investigation, the Manhattan district attorney’s office charged the Trump Organization’s finance chief, Allen Weisselberg, and the Trump Organization with tax fraud, alleging he collected more than $1.7 million in off-the-books compensation. Weisselberg and the company have pleaded not guilty.

Interim summary

It’s been a lively start to the day in US political news and there is plenty of action expected in the coming few hours, so do stay tuned.

Here’s where things stand:

  • The judge hearing New York attorney general Letitia James’s argument that Donald, Ivanka and Don Jr Trump should be questioned under oath in the investigation into the former president’s business practices said he plans to make a decision soon.
  • Joe Biden believes a Russian invasion of Ukraine is imminent and that he believes a false-flag operation was under way that Moscow would use to justify an invasion. The Guardian’s separate Ukraine live blog is here.
  • NY state attorney general Letitia James issued a statement saying: “The Trumps must comply with our lawful subpoenas for documents and testimony” in the civil investigation into the family business empire.
  • Joe Biden made a brief visit to Ohio and talked about a $1bn investment for “the most significant restoration” of the Great Lakes.

Judge to decide soon on Trump fight against subpoena in NY case

The judge hearing New York attorney general Letitia James’s argument that Donald, Ivanka and Don Jr Trump should be questioned under oath in the investigation into the former president’s business practices said he plans to make a decision this afternoon (US eastern time).

Ivanka and Don Jr Trump.
Ivanka and Don Jr Trump. Photograph: Evan Vucci/AP

The Associated Press reports:

James is seeking to enforce subpoenas her office issued in December to Trump and his two eldest children, Ivanka and Donald Trump Jr.

James, a Democrat, said her civil investigation has uncovered evidence Trump’s company used “fraudulent or misleading” valuations of assets like golf clubs and skyscrapers to get loans and tax benefits.

Trump’s lawyers told Judge Arthur Engoron during the hearing that having him sit for a civil deposition now, while his company is also the subject of a parallel criminal investigation, is an improper attempt to get around a state law barring prosecutors from calling someone to testify before a criminal grand jury without giving them immunity.

“If she wants sworn testimony from my client, he’s entitled to immunity. He gets immunity for what he says, or he says nothing,” said Trump’s criminal defense lawyer, Ronald Fischetti.

If Trump testifies in the civil probe, anything he says could be used against him in the criminal investigation being overseen by the new Manhattan district attorney, Alvin Bragg.

Trump could invoke his Fifth Amendment right to remain silent in a deposition. But Fischetti said if he did so, it could still hurt a potential criminal defense.

“If he goes in and follows my advice, which will be you cannot answer these questions without ... immunity because that’s what the law provides, and take the Fifth Amendment, that’ll be on every front page in the newspaper in the world. And how can I possibly pick a jury in that case?” Fischetti said.

A lawyer for the attorney general’s office, Kevin Wallace, told the judge that it wasn’t unusual to have civil and criminal investigations proceeding at the same time.

Another Trump son, Eric Trump, and the Trump Organization’s finance chief Allen Weisselberg, have previously sat for depositions in the civil investigation and invoked their Fifth Amendment rights hundreds of times when they were questioned by investigators in 2020.

In other news, Biden should be rolling out an executive order relating to cryptocurrency next week.

Bloomberg Quint’s Saleha Mohsin, Jennifer Jacobs & Jennifer Epstein wrote about why there had been a delay in the rollout of the order:

President Joe Biden’s cryptocurrency policy rollout was delayed by a dispute between White House officials and Treasury Secretary Janet Yellen over the scope of a pending executive order that could include a digital dollar, according to people familiar with the matter.

The order, intended to set a government-wide strategy for digital assets, was expected to be signed at the start of the year but the squabble between Yellen’s staff and officials on the National Economic Council slowed its progress, the people said, speaking on the condition of anonymity. Senior administration officials have now completed a draft version that is ready for Biden’s consideration, though further action could be delayed because of the Ukraine crisis.

Yellen views the plan for an executive order as unnecessary, particularly any mention of a central bank issued digital dollar, according to two of the people. The Treasury chief and her team say that the Federal Reserve, which released a report last month, are still working on the topic and should be allowed room to develop its thinking. Her team has also expressed to the White House that Treasury and federal regulators, including the Securities and Exchange Commission, have been making progress on providing industry with more clarity on U.S. rules around virtual currencies.

Read the full article here.

Biden just wrapped up his remarks on Lorain, Ohio, speaking about the $1bn investment that will be made to support clean up and restoration efforts for the Great Lakes.

Biden called the money, which will come from the bipartisan infrastructure bill, an investment “for the most significant restoration” in the history of the Great Lakes.

In addition to talking through some of the benefits that the restoration and the infrastructure bill will bring to Lorain, Biden also quoted the late author Toni Morrison, who was born in Lorain and whose birthday is tomorrow.

Biden said: “We got more yesterday than anybody. We need some kind of tomorrow.”

Biden ended the speech with a joke about having to leave his remarks because of weather concerns and a “little thing going on in Europe right now,” in reference to escalating tension between Russia and Ukraine.

Joe Biden is currently speaking in Lorain, Ohio at the Shipyards about the bipartisan infrastructure bill and the $1bn investment being made to support clean up of the Great Lakes.

Stay tuned for updates on his remarks!

Kristof tweeted about the Oregon Supreme Court’s decision today, calling it “very disappointing.”

“Today’s Supreme Court ruling excluding me from the ballot is, of course, very disappointing. But while I won’t be on the ballot, I’m not giving up on our State,” wrote Kristof.

“I know we can be better. I will continue working to help people who are struggling, who lack opportunity and hope.”

In other news, the Oregon Supreme Court ruled today that former New York Times columnist Nicholas Kristof is ineligible to run for governor, reports the Associated Press.

Journalist Nicholas Kristof speaks speaks at Goalkeepers 2017, at Jazz at Lincoln Center on September 20, 2017 in New York City.
Journalist Nicholas Kristof speaks speaks at Goalkeepers 2017, at Jazz at Lincoln Center on September 20, 2017 in New York City. Photograph: Jamie McCarthy/Getty Images

Kristof had already been told he was not eligible to run by Oregon Secretary of State Shemia Fagan since he did not meet residency requirements, but had filed an appeal with the state’s supreme court.

Kristof did not meet the requirement that candidates had to be an Oregon resident for at least three years before the election they were running in.

In October, Kristof quit the Times to run for governor of Oregon, after working there for 37 years.

In a statement Kristof sent to Times staff in October about his decision to leave, he said: “This has been my dream job, even with malaria, a plane crash in Congo and periodic arrests abroad for committing journalism. Yet here I am, resigning – very reluctantly.”

Kristof also added: “I’ve gotten to know presidents and tyrants, Nobel laureates and warlords, while visiting 160 countries. And precisely because I have a great job, outstanding editors and the best readers, I may be an idiot to leave.”

Updated

With eyes on Biden in Ohio and as the ghost of Build Back Better looms, here’s a piece by the Washington Post’s Jeff Stein and Steven Mufson on how the fate of the Democrat’s climate plans is putting billions in private investment on hold:

The chief executive of a Portland area-based battery company believes his products could play a critical role in fighting climate change, storing the energy produced by wind and solar for hours instead of having it dumped whenever consumer demand dips.

But Eric Dresselhuys has put on hold ESS’s plans to expand production by as much as eightfold, fearing the projects will pay off for developers and his company only if Democratic lawmakers enact the clean energy tax credits they proposed as part of the Build Back Better bill. The legislation’s uncertain future has frozen hundreds of billions of dollars in private capital, according to analyses by industry groups and nonpartisan analysts, and complicated America’s much-touted clean energy revolution.

“It would be too risky to pull the trigger on it right now,” Dresselhuys said in an interview. “I want to spend tens of millions of dollars to create tons of jobs, but I have to know there is going to be a market on the backside. The tax credit pushes the economics of this group of projects over the hump.” ...

The proposed bill, backed by President Biden, would pump about $550 billion into the clean energy and climate business, according to the Joint Committee on Taxation, about $311 billion of it in the form of tax credits and incentives.

“Investors are waiting in the wings to deploy capital for clean energy, with this industry poised to be the major engine of 21st-century prosperity,” said Leah Stokes, an associate professor of political science at the University of California at Santa Barbara. “Without these government incentives, that capital won’t get deployed. With them, we are poised to have a prosperous clean energy economy.”

Read the full article here (paywall).

Biden has just landed in Ohio where he will be giving a speech at 12:15 pm eastern time on the bipartisan infrastructure bill; Biden will be speaking at the Shipyards in Lorain, Ohio.

There, Biden along with U.S. Environmental Protection Agency Administrator Michael S. Regan will announce a $1bn investment from the infrastructure bill that will go towards cleanup efforts for the Great Lakes.

With the State of the Union address on March 1 and the Build Back Better social spending package all but “dead” (according to West Virginia senator Joe Manchin), this tour stop in a political battleground like Ohio could be an important reminder of Biden’s domestic wins.

Updated

During a gaggle today aboard Air Force One, the White House confirmed Biden’s previous statements that an attack could happen at any time, adding that the world should be watching for pretext to a possible Russian invasion .

“We’re in the window where we believe an attack could come at any time,” said deputy Press Secretary Karine Jean-Pierre, adding that an invasion could take many forms.

Jean-Pierre added that the recent expulsion of deputy US ambassador to Moscow, Bartle Gorman, was an “escalatory step” that Jean-Pierre called “unprovoked.” Jean-Pierre also said that she does not have any update on if there will be retaliation from the US concerning Gorman being pushed out.

Jean-Pierre noted that pretext that Russia could give to justify a future attacks could include claims of NATO activities by land, sea, or in the air, an incursion into Russia territory, and other false claims.’

“We believe that it is important that the world be watching for that pretext,” said Jean-Pierre, adding for any claims made by Russian state media not verified by independent media to be treated with skepticism.

The US has also received Russia’s written response to US and NATO proposals, Jean-Pierre confirmed, referring questions to the State department.

Follow the Guardian’s Ukraine coverage here.

Biden says Russian attack will happen in 'next days'

Here’s the Guardian’s Jennifer Rankin on Biden’s comments:

Joe Biden has said that a Russian invasion of Ukraine is imminent and that he believes a false-flag operation was under way that Moscow would use to justify an invasion, agencies in Washington reports.

Speaking to reporters as he left the White House, AFP reports him as saying:

“Every indication we have is that they’re prepared to go into Ukraine, attack Ukraine. My sense is it will happen in the next several days.”

According to Reuters, he described the threat as “very high”. He said Russia had not moved back its forces from the Ukrainian border and the United States had reason to believe Russia was engaged in a false flag operation that Moscow would use to justify an invasion.

US Secretary of State Antony Blinken is due to speak at the UN Security Council later on Thursday.

Follow the Guardian’s Ukraine coverage here.

Here’s a piece from the Guardian’s Ed Pilkington on the impact that Mazars USA cutting ties with Trump could have on Trump’s current legal woes:

By withdrawing its stamp of approval from the documents, Mazars leaves Trump potentially exposed to substantial legal and financial trouble.

The papers, known as statements of financial condition, were used by Trump and his family business to attract and secure hundreds of millions of dollars in loans. They are also at the centre of an escalating investigation by the New York state attorney general, Letitia James.

Last month James tightened the screws on Trump and the Trump Organization by releasing details in a filing of several instances involving golf courses, real estate and other assets where the family had allegedly “falsely and fraudulently valued multiple assets and misrepresented those values to financial institutions for economic benefit”.

In a letter dated 9 February, Mazars’ general counsel, William Kelly, told the Trump Organization that the annual financial statements it had prepared for the family business between 2011 and 2020 were no longer reliable.

The accountants said they had based their decision partly on their own investigation into Trump’s finances and on the “totality of the circumstances”, concluding that “we are not able to provide any new work product to the Trump Organization”.

On the back of James’s latest attack, Michael Cohen, Trump’s former personal attorney and an ex-vice president of the Trump Organization, told the Guardian that in his opinion “the House of Trump is crumbling”.

Read the full article here.

AG James: 'Trumps must comply with our lawful subpoenas'

Today, a judge will hear arguments on whether Donald Trump should have to comply with subpoenas about his business affairs in an ongoing New York investigation.

A woman walks past the Trump Building in New York’s financial district, Wednesday, Jan. 13, 2021.
A woman walks past the Trump Building in New York’s financial district, Wednesday, Jan. 13, 2021. Photograph: Mark Lennihan/AP

The office of New York attorney general Letitia James issued the subpoenas in December after an investigation found that Trump’s business had used “fraudulent or misleading” valuations of assets to get benefits such as tax breaks and loans, reported the Associated Press.

James also issued subpoenas for Trump’s two oldest children, Ivanka and Donald Trump Jr, who both worked as executives at one point for Trump Organization.

“The Trumps must comply with our lawful subpoenas for documents and testimony because no one in this country can pick and choose if and how the law applies to them,” said James in a statement reported by AP.

“We will not be deterred in our efforts to continue this investigation and ensure that no one is above the law.”

In the days leading up to opening arguments on the subpoena question, the long time accounting firm for Trump Organization, Mazars USA, said they were cutting ties with the Trump family and retracted 10 years of its financial statements, potentially exposing Trump to many more financial and legal challenges.

Updated

Judge hears arguments on if Trump should be allowed to sit out subpoenas

Good morning US live blog readers! This is Gloria from the New York office on the blog. Here’s what’s on today’s agenda:

  • Today, a judge will hear arguments concerning Donald Trump’s attempts to avoid being questioned under oath in a New York investigation about his business activities. Democrat New York attorney general Letitia James wants to carry out subpoenas that were issued in December for Trump and his two oldest children, Ivanka and Donald Trump Jr. James said last year that her office found evidence that Trump’s business was using “fraudulent or misleading” information in its valuations.
New York Attorney General Letitia James acknowledges questions from journalists at a news conference on May 21, 2021, in New York.
New York Attorney General Letitia James acknowledges questions from journalists at a news conference on May 21, 2021, in New York. Photograph: Richard Drew/AP
  • Joe Biden will speak today at 12.15pm eastern time at The Shipyards in Lorain, Ohio, a political battleground, about the bipartisan infrastructure law. “[Biden will] deliver remarks on how the bipartisan infrastructure law delivers for the American people by investing in clean-up and restoration efforts in the Great Lakes region and surrounding waterways,” said the White House press secretary, Jen Psaki, in a statement yesterday.
  • Despite claims from Russia about a drawdown of military forces on the Ukrainian border, US officials and Nato have warned that there has been no evidence of that and that Russia has actually increased the amount of troops over the past few days. New counts estimate that Russia has over 150,000 troops around Ukraine. A senior US official also warned that Russia’s interest in diplomacy is a “guise”, reported CNN. You can follow the Guardian’s Ukraine coverage here.
  • The US plans to send out high-quality masks for children as apart of an ongoing effort to distribute 400m free KN95 masks from the strategic national stockpile, reported CNN. Around 230m masks have already been delivered through pharmacies and community health centers across the US. Children under the age of five are still not eligible to receive the Covid-19 vaccine as FDA approval was delayed.
  • US lawmakers have less than two days to avoid a government shutdown on Friday by passing a short-term funding bill. However, discussions for the bill, which would keep the government funded through 11 March, have been delayed as GOP lawmakers have asked for Congress to first vote on other initiatives, including cutting funding to schools and childcare centers that require vaccines.

Updated

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