Elon Musk and America PAC know they're doing an 'illegal' lottery, Philadelphia DA says

Philadelphia District Attorney Larry Krasner on Monday testified that Tesla CEO Elon Musk and his political action committee know they are conducting an "illegal" lottery by giving away $1 million to registered voters in Pennsylvania and other swing states before Election Day.

"We are seeing, what I consider to be, in my opinion, guilty knowledge," Krasner testified at a court hearing, where he has asked for an injunction to stop the giveaway by Musk's America PAC, which is backing Donald Trump in the presidential election against Kamala Harris.

"They know what they're doing is illegal and they are doing everything under the sun to clean it up," Krasner said.

"There is no First Amendment right to commit crimes," the DA testified in the Philadelphia County Court of Common Pleas. "There is no First Amendment right to commit fraud."

Under questioning by attorney John Summers, who is representing Krasner's office, the DA said the fact that he is a Democrat had nothing to do with his decision last week to sue the billionaire Musk and America PAC over the daily giveaway, which is due to end Tuesday.

Krasner also said under questioning that he drives a Tesla, and has had one since 2016.

"I like the Tesla," the district attorney testified.

Asked if he would have sued pop star Taylor Swift, who is backing Harris, if she was offering the $1 million prize that Musk is, Krasner said he would.

"I have brought actions against Democrats in the past. I would have brought an action against Taylor Swift if she did this," Krasner testified.

"But as far as I know, she didn't."

Krasner's lawsuit accuses Musk and his PAC of violating Pennsylvania consumer protection laws, in addition to lottery laws, with the giveaway, which requires participants to sign a petition supporting the Constitution.

Before the hearing, America PAC treasurer Chris Gober told reporters, "We're in court today because some district attorney in Philadelphia wants to silence Elon Musk for supporting Donald Trump."

"Let me be clear about one thing. No district attorney, no prosecutor, I don't care how powerful they are, can take away the First Amendment freedoms that are the bedrock of this nation," Gober said.

Gober later testified that the PAC's giveaway does not meet the elements of an illegal lottery because "there is no prize to be won. Instead, we are setting up contractual obligations to serve as spokespeople for the PAC."

Gober also testified that even though Musk has used the word "randomly" to describe how recipients are chosen, that word "is used interchangeably with the words 'by chance."

"We ask people to sign petition, and refer others to sign petition," Gober testified. "We then take that pool of individuals across the country and we determine which one of those individuals would serve as effective spokesperson, and we enter into a contractual obligation with them."

"We know exactly who will be announced as the million-dollar recipient today and tomorrow," he testified.

Summers, the lawyer for the DA, seized on Gober's testimony, calling it "a flat-out admission of liability" in the lawsuit.

This is developing news. Check back for updates.

Gary Grumbach reported from Philadelphia, and Dan Mangan reported from New York.