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CNN Wolf Blitzer Reports

Can Avila Get Fair Trial?; Will Stock Markets Rebound?; Hospitals May Be Killing Patients

Aired July 22, 2002 - 17:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, HOST: Now on WOLF BLITZER REPORTS: An alleged kidnapper-killer hears the charges against him. Can he get a fair trial? I'll ask noted defense attorney Robert Shapiro.

Wall Street worries.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I'm not a stockbroker or a stock picker.

(END VIDEO CLIP)

BLITZER: Is it always darkest before the dawn?

Hospitals may be killing tens of thousands of patients instead of healing them.

And they're back, still looking for love and trying to find themselves. The appeal of "Sex and the City."

It's Monday, July 22, 2002. I'm Wolf Blitzer in Washington.

There is a major development this afternoon in the case of Samantha Runnion. Twenty-seven-year-old Alejandro Avila has been charged with murder, kidnapping and two counts of committing forcible lewd acts on a child. A court hearing has just ended, and we're about to hear from the prosecutors.

Indeed, let's go live to Santa Ana. That's where the prosecutors are now speaking.

TONY RACKAUCKAS, ORANGE COUNTY D.A.: ... had Mr. Avila charged with the special circumstance murder that has been alleged. And I think that you have copies of the -- of the complaint. A public defender was a pointed for Mr. Avila, and per the request of his attorneys, Mr. Avila did not enter a plea today to the charges against him, but he is scheduled to enter a plea at a video arraignment on August the 9th of this year.

Mr. Avila will be held without bail until that time. He's charged with the following crimes. The criminal complaint contains four counts. Count one alleges felony kidnapping. Count two alleges a forcible lewd act upon a child. Count three, a separate count of a forcible lewd act upon a child. Count four, murder. And in addition to these three -- excuse me. In addition to these four counts, there are three are special circumstances that have been alleged. Mr. Avila is charged with the murder during a kidnapping with two counts -- two special circumstance allegations of murder in the commission of a lewd and lascivious act upon a child under the age 14. And all three of these special circumstance allegations make Mr. Avila potentially subject to the death penalty.

As far as the decision concerning the death penalty, there's a regular process that we do in Orange County, and that process will be followed in this case. The process involves the meeting of a special circumstance committee in the district attorney's office, and that committee is made up of senior members of the district attorney's office, trial attorneys who've had substantial experience in these matters. At that committee, we will consider all of the details concerning the case.

As a part of the process I intend to meet with Samantha's family and to also meet with the attorneys for the defense in this case. And after considering all that they have to offer and all the details that we have, all of the circumstances about the case, then I'll make a decision concerning whether or not we're going to seek the death penalty. I expect that decision to be soon. I'm hopeful that we can get all that done and make that decision within two weeks' time.

While the question of pursuing a death penalty in this case has yet to be decided, I do want to make one thing very clear. Anyone who commits an act like this in Orange County will either die in prison of natural causes or will be executed. It's almost impossible to overstate the amount of damage that this type of crime does to our community and to our nation. This type of crime is extraordinary not only because it's extraordinarily destructive, not only because of the violence that it brings on a single family, but because of the suffering and fear that it brings to the entire community, and in this case, to the entire nation. Many parents and children feel more fearful and less secure because of this crime.

I also want to express my profound sympathy and sadness for the what the Runnion family has been going through these past several days. As parents, we really can hardly even imagine the horrifying event and the terrible suffering that these people have gone through, and our hearts and prayers go out to the Runnion family during this heart-wrenching experience.

Nothing that we do or say can bring Samantha back, but I will tell you this. This case will have the number-one priority in our office. The top prosecutors with the most experience will be assigned to this case, and they will have the resources necessary to be successful.

I also want to thank Sheriff Carona and the media and the public for the prompt apprehension of Mr. Avila in this case. And I've never in my memory seen any cooperation that's worked this -- with this much facility and with this much effect. Sheriff Carona said that the perpetrator would be brought in quickly, that he'd be apprehended, and that's exactly what happened. The cooperation was fantastic in this case because Sheriff Carona so quickly was able to put out a description of the suspect, what we were looking for, and the media promptly put that description out over the air. And within a relatively short time, the public cooperated overwhelmingly by calling in tips and bringing in evidence that that led to Mr. Avila's arrest.

And with respect to the evidence in this case -- and I know that people would have questions about the evidence and about trial strategy and that sort of thing, but I'm not going to be able to discuss that. I can just tell you that the evidence is -- that was amassed by Sheriff Carona and by all of the law enforcement agencies that he was coordinating, including the FBI and other state and local agencies, is very, very compelling. And we are satisfied that we have the right person and that after a trial, that we will be able to bring in a guilty verdict in this case.

If you have any questions, I'd be happy to respond to those at this time.

QUESTION: The sheriff said he was 100 percent certain this was the actual suspect or this was the killer, the kidnapper. You don't seem to be that forceful in what you're saying. Do you feel the same way? Do you back what the sheriff said?

RACKAUCKAS: This is the beginning of the legal process that we have here, and I can explain to you that we don't file criminal charges against a defendant in a criminal case -- and certainly, we haven't in this case -- unless we feel certain that the defendant is the person who committed the crime. And so the filing of criminal charges has that indication to it. So we feel -- we feel certain. I feel certain. The evidence is very compelling, and I feel very strongly that we'll be able to bring in a guilty verdict in this case.

QUESTION: Other than the additional DNA information from the labs that you don't have now -- you just need time -- are you at liberty to -- are you satisfied with the evidence you have now? I guess what I'm asking is, without any more evidence, do you have enough?

RACKAUCKAS: The question is whether or not the district attorney is satisfied with the evidence that we have now. And that's repeated. Does that mean without anymore evidence, do we think we have enough? You know, I think that the evidence is compelling. I've said that a number of times. I said it yesterday, and I'll repeat it now. I think that there's very substantial and compelling evidence in this case.

I think it's important that we don't close off the procedure, at this point. We're -- the -- there's still a lot of investigation going on. As the sheriff indicated during his press releases, there have been a lot of leads, a lot of investigative procedures that have been started that haven't yet been completed. And so that's a continuing process. So we expect to continue with the investigation and to have likely additional evidence that'll be developed as we proceed.

(CROSSTALK)

QUESTION: ... technological advancements that you have in this time in 2002, can you characterize how important you think DNA evidence is in a case like this?

RACKAUCKAS: The question is, how important do I think DNA evidence is in a case like this. You know, I think all I can really tell you is that DNA-type evidence is one type of forensic evidence, and there's a lot of evidence in a case like this that will be considered. Any questions or any evidence about DNA will be a part of all of that, and so I wouldn't -- I don't think it would be even proper for me to say that it has any greater importance than some other item of evidence.

QUESTION: Has your office been in contact with the Riverside County district attorney about what happened a year ago in their prosecution of this same individual?

RACKAUCKAS: Yes, we have. The question is whether or not our office has been in contact with the Riverside district attorney's office concerning the prior case that that was tried in Riverside. We have been in contact, and we've discussed it with the district attorney and with the attorney who tried that case. It was very difficult trial. It was uncorroborated evidence, as you know. And it was a hard trial nor the district attorney in Riverside. And so they did a good job on that case.

(CROSSTALK)

QUESTION: ... that was so important to the sheriff's manhunt. Is that going to be important to your case? Can you characterize that?

RACKAUCKAS: The question has to do with the -- with the importance of -- would you repeat that question? I'm sorry.

QUESTION: The memory of the...

RACKAUCKAS: The memory of the little girl.

QUESTION: ... of the -- of the little girl -- how important is that going to be in your case? Obviously, the sheriff has talked about how important it was in the manhunt.

RACKAUCKAS: The little girl who was a witness to the kidnapping -- her statement was tremendously important to the investigation and to the bringing Mr. Avila into custody. And so she was very important, and she'll, of course, be a witness. Now, as far as just how important her testimony is or her memory is, compared to the rest of the evidence, I don't think it would be fair to try to make any statement about that, at this point.

QUESTION: Does age ever present a problem along those lines?

RACKAUCKAS: The question is does age ever present a problem along those lines. And of course, the answer is that the younger the witness is, the greater the problem, usually, in terms of having the witness qualify to testify. But often, when a very young witness qualifies to testify, their testimony is terribly strong.

(CROSSTALK)

QUESTION: Are you concerned about finding an impartial jury in a situation like this?

RACKAUCKAS: The question is whether or not we're concerned about finding -- about finding an impartial jury in a situation like this. And my answer is no. I'm confident that we'll find an impartial jury. There's a -- there's a process to be able to obtain an impartial jury, and we'll go through that process. And I think that the people in our community are very fair-minded and will be fair and even-handed with the evidence.

(CROSSTALK)

RACKAUCKAS: I'm sorry. Yes?

QUESTION: ... long history of being a very staunch supporter of the death penalty, going back to the days (UNINTELLIGIBLE) when you actively were very instrumental in getting her removed from the bench. With that in mind, is this a foregone conclusion, in your mind, that you're going for the death penalty? And the second part of that is, is this your sole decision, after input from your associates?

RACKAUCKAS: I think that's two questions. One is whether or not, because of my background, it's a foregone conclusion that we're going to seek the death penalty, and the other is -- what was the...

QUESTION: (UNINTELLIGIBLE) your sole decision.

RACKAUCKAS: Whether or not it's my sole decision. So let me answer the second question first, whether or not it's my decision. The answer is, it is my decision. Every time we seek a death penalty in Orange County, it's because I decided that we're going to seek that death penalty. There's a process. I've explained the process a little bit. We're going to go through that, and then I'll make the decision. Whether or not it's a foregone conclusion -- you've got to give me a break on that one. I mean, we have -- we have a process. We're going to go through the process, and we're going to do it in good faith.

(CROSSTALK)

QUESTION: What part does the Runnion family play in this process? How much will you take into account their feelings about the death penalty in this case?

RACKAUCKAS: Well, as I've indicated, I'm going to meet with and talk to the Runnion family, and I think it is something that is necessary to do to, to -- just to go through with them what the process is, where they are, what their views are, and so forth.

QUESTION: (UNINTELLIGIBLE) RACKAUCKAS: Well, it's my decision whether or not to seek the death penalty, and I'm going to make that decision. And while the wishes of the family are, of course, to be considered, it's not -- it's not what I rely on in making the decision.

(CROSSTALK)

QUESTION: What distinguishes between a lewd act upon a child and rape? And does that indicate that you don't have physical evidence, like semen?

RACKAUCKAS: We've charged forcible lewd acts upon a child, and we will present the evidence during the trial to support those charges. And what we've done here is we've filed the charges that we believe we can prove with the evidence.

(CROSSTALK)

QUESTION: What distinguishes that charge?

QUESTION: ... so I can follow up on that question. Should you receive...

BLITZER: The district attorney of Orange County outlining the case, outlining the charges against Alejandro Avila, the man accused of murdering little Samantha Runnion. The proceeding that took place just a short while ago before the district attorney emerged included some comments from Alejandro Avila.

Let's bring in our David Mattingly. He was at the court. He's following this. Talk to our viewers, David. Tell us what happened during that brief procedure involving the suspect.

DAVID MATTINGLY, CNN CORRESPONDENT: Well, "brief" is the definitive word here, Wolf, Alejandro Avila saying fewer than a dozen words, appearing less than four minutes by a video-conferencing set- up, as he appeared by video in California superior court today.

The question of whether or not he was going to plead guilty or innocent in this case not answered today. A public defender asked that a new court date be set for a month from now. Prosecutors, however, balked at that idea. Instead, we'll be back here in little over a week. That's on August 9. The case against Avila, a four- count indictment in the kidnapping that was read today, sexual assault, murder of 5-year-old Samantha Runnion.

(BEGIN VIDEO CLIP)

UNIDENTIFIED JUDGE: You're charged here, Mr. Avila, with several felony counts. In count one, you're charged with kidnapping. That's a felony. Count two, you're charged with forcible lewd conduct upon a child under the age of 14. That's filed as a felony. Count three is identical. You're charged with a forcible lewd act upon a child under 14. That's also filed as a felony. In count four, you are charged with murder of Samantha Runnion. And it is alleged that during the commission of the kidnapping, you committed the murder. That is the special circumstance in the case. Also, it is further alleged that the murder took place during the course of the forcible lewd conduct or lewd act upon the child.

(END VIDEO CLIP)

MATTINGLY: Avila arrested on Friday, after an intense and emotional four-day manhunt. Asked today if the decision to have him appear in court by video was the result of death threats, his public offender [sic] would not comment on that, the sheriff's department saying he's being treated like any other inmate right now in the county jail.

It -- we are, however, looking at special circumstances in this case, that the murder was committed during these other crimes of kidnapping and two counts of sexual assault. So we're going to see more of this coming up in the next trial date or court date of April (sic) 9th -- Wolf.

BLITZER: David Mattingly at the courthouse. Thank you for that report.

And as the charges against Alejandro Avila begin to work their way through the court system, observers are looking ahead to the trial. The Orange County sheriff says the case is airtight.

(BEGIN VIDEO CLIP)

SHERIFF MICHAEL CARONA, ORANGE COUNTY, CALIFORNIA: I've had the opportunity throughout this investigation to look at not only the investigative evidence, but also the forensic evidence that has come out. And the combination of those two elements leads me to believe that, at a level of 100 percent, we have the right man that committed this crime.

(END VIDEO CLIP)

BLITZER: Our guest is no stranger to high-profile criminal cases. The attorney Robert Shapiro was part of O.J. Simpson's defense team. He joins now live from our Los Angeles bureau.

Mr. Shapiro thanks for joining us. It looks like it's a pretty air-tight case, based on what we hear from the sheriff, from the D.A. But they always say that, don't they.

ROBERT SHAPIRO, DEFENSE LAWYER: You know, in major cases, Wolf, the police want to make the arrest as quickly as possible. The district attorney moves quickly. But they still don't have DNA evidence. They haven't really gone through the case to the degree that they will when they present it for trial.

BLITZER: Yesterday, when I spoke to the sheriff, though, Michael Carona, he did say they have DNA evidence already in place.

SHAPIRO: Well, that's very unusual and much to the credit of Sheriff Carona, who I have great respect for. If they have moved that quickly on getting the DNA evidence, that's very, very unusual in California.

BLITZER: Apparently, in Orange County, they do have a DNA lab on the premises. At least, they can do some preliminary work on DNA. But if, in fact, there is that DNA evidence that directly links this suspect to the little girl, then it becomes, I guess, a slam-dunk case, is that right?

SHAPIRO: You know, DNA evidence in the last five years has come to be very well accepted by juries across the country. The evidence is obviously very, very compelling. There are issues about collection of evidence and preservation of evidence that may cause some people to have some doubt about whether the DNA is actually correct, but the science itself today is accepted.

BLITZER: Would I be reading too much into the sort of the nuance difference, the emphasis in the statements from the sheriff and the DA in this particular case, the sheriff being much more outspoken, much more blunt in insisting they have a 100 percent air-tight case?

SHAPIRO: You know, they have two different roles. Sheriff Carona is in charge of maintaining the peace and safety of the community, so he can now put the fears of the parents in Orange County aside and let the children go about their normal activities, knowing, from his point of view, that the case and the person who is really the person who committed these crimes is in custody.

The district attorney, however, has a different role, and his role requires that he exercise discretion and caution and allow the judicial process to take place.

BLITZER: Is there any doubt in your mind they will seek the death penalty? You heard the DA say he wants to study issue, although they do have a few charges that have the so-called special circumstance, which allows them to seek the death penalty.

SHAPIRO: Well, the special circumstance is either life imprisonment or the death penalty, and the district attorney of Orange County will be seeking the death penalty in this case. If this is not a proper case for the death penalty, none exists.

BLITZER: If -- is there any opportunity here at all, any incentive whatsoever on the prosecution, on the DA, to seek some sort of plea agreement that would spare this individual his life?

SHAPIRO: You know, that is always a consideration, and the reason being that unless the evidence is so overwhelming -- and that's rail rarely, rarely the case -- that there may be some very small areas that need to be investigated additionally, and the district attorney might feel that a guilty plea early on in is in everyone's best interest. I think in this case, it's unlikely.

BLITZER: Given the passions involved. Robert Shapiro, as usual, thanks for your expertise. Thanks so much for joining us today.

SHAPIRO: Thanks for inviting me, Wolf. Always a pleasure.

BLITZER: Thank you.

And this important programing note. For continuing coverage, be sure to watch Larry King Live tonight at 9:00 Eastern, 6:00 Pacific. Among Larry's guests, the district attorney of Orange County and the Orange County sheriff, Mike Carona. That's at 9:00 PM Eastern.

The nation's hospitals can be hazardous to your health. Find out why thousands are dying from preventable infections.

Plus, it swims in rivers, walks on land and eats small creatures. Now the White House wants to ban the "frankenfish."

And Monday market madness. How to survive the ups and downs. Call us now, 1-888-CNN-0561. Our money expert, Joe Battipaglia, will answer your questions when we return.

(COMMERCIAL BREAK)

BLITZER: Gloom and doom on Wall Street, as stocks continue to slide. The Dow closed today below 8000, the first time that's happened since 1998. On top of that, scandal-wracked WorldCom files the largest bankruptcy in American history. An upbeat President Bush says he believes things will get better and is urging congressional lawmakers to send him a tough corporate fraud bill before next month's recess.

(BEGIN VIDEO CLIP)

BUSH: I'm not a stockbroker or a stock picker, but I do believe that the fundamentals for economic growth are -- are -- are real. And I believe Congress is going get a bill that will help take some of the uncertainty out of the market, and that bill is going to put some meaningful reforms in place.

(END VIDEO CLIP)

BLITZER: Joining us in New York with his insight on all of this is Joe Battipaglia. He's the chief investment officer with the investment firm Ryan, Beck and Company.

Joe, thanks, as usual, for joining us. Well, the key question a lot of our viewers, whether they're 20, 30 or 60 or 70, want to know: Do they hold their money and ride out this storm, or do they sell, or perhaps, do they start buying some bargains, if there are any out there?

JOE BATTIPAGLIA, CHIEF INVESTMENT OFFICER, RYAN, BECK AND COMPANY: As long as you've got that longer horizon in mind, Wolf, you can ride out this volatility, as painful it is. And the reason that we've had weeks of crushing of declines on a two-and-a-half-year correction of the market excesses, and now we're seeing good fundamentals on the economy, good second quarter profits, and no one's paying attention to it. That's usually indicative of a market looking for a bottom and the creation of buying opportunities. BLITZER: Let's take a quick caller from San Antonio. Go ahead with your question for Joe.

CALLER: Yeah. With the prices being so low, is this a good time for someone who's never invested to get into the market?

BATTIPAGLIA: This is an excellent time for someone who hasn't invested before because they've seen the reaches of euphoria and the reaches of depression and can understand values in that context and can now start to build a portfolio for the future. Now, we'd gotten carried away, at one point, with "It will be good forever." Now we're thinking it'll never be good again. But meanwhile, the U.S. economy, the ship of state, keeps moving forward. And this is a very good time to be coming into it.

BLITZER: There have been previous examples of this kind of very bearish, this kind of bad, bad market, where some smart people got involved at the right moment and made a ton of money. Give us a few examples so that some of our viewers might not think this is the first time they've ever seen anything like this.

BATTIPAGLIA: Good point, Wolf. You don't need to be wise and old investor to know about these -- 1987, 1990, 1994, and of course, the doozy in 1998, where the world's currencies were just going to melt down to zero. Each and every time, panic set in, no rhyme or reason to the selling. There's anticipation that the worse will get even worse. And then, of course, the clouds clear, the market starts to move again. And I think we're setting ourself for a similar position today.

BLITZER: Let's go to Cleveland for another question. Go ahead, Cleveland.

CALLER: Yeah, hi. I just wondered why WorldCom stock went up today and if they're a good buy in the future, or even now.

BATTIPAGLIA: Interestingly enough, the stock did jump a bit, but I think that's certainly premature. A company in bankruptcy has to satisfy its creditors. In that process, the common stockholders may well be wiped out. So to jump into the stock here does not make sense. The WorldCom problem has been going on for a while, with the difficulties of the telecom industry. This will bring a close to that chapter but then the opening of a new one, which is a further consolidation of the telecommunications industry and a group that may well be an exciting place to be in the next three, five, seven years.

BLITZER: And just because WorldCom is in bankruptcy, filing Chapter 11 right now, that doesn't mean they can't come back. I'll put a couple of full-screens up on our -- on our screen right now, some graphics. For example, there is life after Chapter 11. Look at Texaco in 1987 -- 52,000 employees. They merged since then with Chevron. They've got 55,000, almost 56,000 employees. Same with Macy's. Macy's in 1992 went Chapter 11 -- 144 stores at that time. Now they're in pretty good shape. They've got over 200 stores.

So the possibility of WorldCom emerging from this bankruptcy is potentially real, isn't it, Joe.

BATTIPAGLIA: Well, the only problem with all these examples is each case is very specific. And if you look at WorldCom, they have a fairly high debt load, a business where the revenues per minute are declining dramatically. The competitive position is a tough one. And so in the restructuring, the assets will barely cover the outstanding liabilities. It may survive to fight another day. Perhaps it'll be merged into somebody else. But if that happens soon, there's not much left for the shareholder.

BLITZER: Joe Battipaglia, thanks for joining us once again. Appreciate it very much.

And here's your chance to weigh in on this story. Our Web question of the day is this: Are you worried that you won't be able to retire? Go to my Web page, cnn.com/wolf. That's where you can vote. While you're there, let me know what you're thinking. There's a "click here" icon on the left side of the page. Send me your comments. I'll try to read some of them on the air each day at the end of this program. That's also, by the way, where you can read my daily on-line column, cnn.com/wolf.

Is the money flowing freely to terrorists hiding out in the United States? When we return, a closer look at a Jordanian man caught with allegedly some $12 million in counterfeit checks.

Also, brains versus brawn. Why women just seem to remember better.

And a show about women making its season debut. Did "Sex and the City" live up to its reputation?

But first, our news quiz. "Sex and the City" star Sarah Jessica Parker is the hit show's lead actress. What role does she play behind the scenes of "Sex and the City," co-director, co-executive producer, costume designer, lead writer. The answer coming up.

(COMMERCIAL BREAK)

BLITZER: Welcome back. Let's check some of our top stories right now.

The Bush administration will withhold $34 million earmarked for United Nations family planning programs. A State Department spokesman says the move is due to the U.N. Population Fund supporting -- quote -- "coercive abortion programs" in China. Conservative activists reportedly have been pressuring the president to deny the funds as a way to prove his opposition to abortion. The United Nations' Secretary-General Kofi Annan denies the Population Fund provides money for abortions.

The Bush administration is going on the offensive against the land-walking snakehead fish. An import ban on the creature is expected to be announced tomorrow. The Asian animal can grow up to three feet long and can stay out of water for up to three days. It surfaced this summer in a Maryland pond, dumped there by a resident who had initially imported the fish to make soup.

A published report says Iran carried out the deadly bombing of Jewish community center in Argentina in 1994. Eighty-five people were killed in the blast in Buenos Aires. A secret deposition obtained by the "New York Times" also alleges that Iran paid Carlos Menem, Argentina's president at the time, $10 million to deny Iran's involvement. The Bush administration says that it has no clear evidence to link Iran with the attack.

A Saudi-born student who was briefly a roommate of Zacarias Moussaoui, today, admitted in court that he lied about his ties to the first man facing charges in connection with September 11. From New York, CNN's Deborah Feyerick has our story.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): Prosecutors say they met at this mosque in Norman, Oklahoma, Zacarias Moussaoui and Hussein al-Attas. Al-Attas, a 24-year-old Saudi citizen was studying engineering and math at the University of Oklahoma.

ALEXANDER EISEMANN, DEFENSE ATTORNEY: He was a college student who wasn't sure what he wanted to do within life, was not doing well in school and, like many college students, the idea of traveling to a third world -- to another country to learn about things, travel around the United States was appealing.

FEYERICK: Al-Attas admits drove his new friend, who called himself "Shaquille," (ph) from flight school in Norman, Oklahoma, to flight school in Minnesota.

EISEMANN: Mr. Moussaoui told Mr. al-Attas that Mr. Moussaoui's uncle was in the airline industry.

FEYERICK: Al-Attas and Moussaoui talked about visiting New York, Colorado and Los Angeles, a trip, Moussaoui said, to "see the sights." They also talked about holy war or jihad, with al-Attas considering a trip to Pakistan.

EISEMANN: There were differences of opinion between Mr. Moussaoui and Mr. al-Attas about what it meant -- what Islamic teaching meant to participate in jihad.

FEYERICK: The trips never happened. Moussaoui was taken into custody in August. A flight instructor was suspicious about his motives for wanting to fly a jumbo jet. FBI agents questioned al- Attas at the time, then again after the 9/11 attacks, when al-Attas was taken into custody. In court, al-Attas admitted lying to FBI agents, when he denied conversations with Moussaoui about jihad, when he denied the planned road trip across America, and when he denied any of his own plans to go to Pakistan.

EISEMANN: He tried to distance himself from Mr. Moussaoui. It was wrong for him to do that. He actually the United States' laws by lying to federal agents, but his lies were all intended simply to just keep him out of the picture. FEYERICK: Under the deal with prosecutors, which has been in the works for months, al-Attas pleaded guilty to seven counts of making false statements.

(on-camera): And in return, al-Attas testifies against Moussaoui, if there's a trial. His maximum prison time cut from 35 years to six months. He's scheduled to be sentenced in early September.

Deborah Feyerick, CNN, New York.

(END VIDEOTAPE)

BLITZER: Investigators want to learn more, a lot more about a Jordanian man -- Jordanian-born man who was arrested for bringing millions of dollars worth of counterfeit checks into the United States. CNN justice correspondent Kelli Arena has the story.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): Is Omar Shishani an al Qaeda moneyman working with terrorists in the United States? Well, that's what investigators are trying to find out after Shishani was arrested in Detroit last week with nine counterfeit cashier's checks worth $12 million. He was returning to the U.S. from Indonesia.

DAWN CLENNEY, FBI: If you're trying to determine whether or not there are any links to a terrorist organization, money is the main factor. After all, the terrorist organizations have to be financed. It takes money to run something like that.

ARENA: Officials say Shishani's name showed up on a U.S. terrorist watch list after being found on al Qaeda documents in Afghanistan. Whether he is one in the same is still not clear. His lawyer says his client, an international businessman, did not know the checks were fake.

NABIH AYAD, SHISHANI'S ATTORNEY: He was carrying these checks to third parties in the United States, which I cannot disclose their name at the time.

ARENA: The lawyer also denies any terrorist connection.

AYAD: He's a United States citizen. He has two little girls here with his wife. So I see no reason why -- that his name would be on the watch list, but for the fact that he's Arab-American.

ARENA: A joint terrorism task force is looking into Shishani's contacts here and abroad and has asked for help from officials in Indonesia where al Qaeda has been active.

JOHN PARACHINI, RAND CORP.: If indeed this individual is tied to al Qaeda and there is an attempt to bring in that amount of money, it's worrying. ARENA: Worrying because officials say it took only half a million dollars to fund the September 11 attacks. Officials say so far, there is no evidence Shishani is a terrorist.

TOM RIDGE, HOMELAND SECURITY DIRECTOR: Based on his relationship with others in this community, whether it's al Qaeda or not, it deserves investigation.

ARENA: The checks Shishani was carrying were fraudulently issued by a nonexistent branch of the West America Bank and are similar to phony checks passed in Las Vegas, according to the Secret Service.

(on-camera): Seven people have been indicted in that casino scheme and investigators are looking into whether or not there's any connection to this case.

Kelli Arena, CNN, Washington

(END VIDEOTAPE)

BLITZER: You may be getting more at the hospital than you bargained for, a story coming up that could save your life. Stay with us.

(COMMERCIAL BREAK)

BLITZER: On the health front, more evidence that men and women are indeed different. Folklore has it that husbands never remember arguments and wives never forget. A new study suggests women's brains are wired to feel and recall emotions more keenly than the brains of men. Psychologists tested both sexes for their emotional responses to photographs and weeks later, tested their ability to recall the photos. Women scored higher than men in the recall department and brain imaging also showed more active response by women. The study appears in the proceedings of National Academy of Sciences.

When it comes to deadly germs, hospitals may be a threat to your life. An investigation by the "Chicago Tribune" finds that 103,000 hospital deaths were linked to infections in 2000. The report says many of the deaths were caused by dirty instruments, hospital staff who don't wash their hands, and careless doctors and nurses. And joining us now to talk more about this story is the "Chicago Tribune" investigative reporter who broke the story, Mike Berens.

Mike, thanks so much for joining us. This is shocking to a lot of our viewers who have to go into the hospital or have loved ones going in. What's the basic problem out there?

MIKE BERENS, INVESTIGATIVE REPORTER, "CHICAGO TRIBUNE": The basic problem, Wolf, is that there's just a fundamental lack of cleanliness inside many of America's hospitals. And by cleanliness, we're talking about basic, simple, inexpensive procedures such as washing your hands, which alone counts for tens of thousands of deaths each year.

BLITZER: You report that what -- over 100,000 fatalities due to infections in hospitals, three-fourths of those could have prevented. Who came up with that estimate?

BERENS: This estimate's been band (ph) and devote for years in varying degrees. The CDC has estimated that many infections are preventable. We tried to quantify this for the first time in a comprehensive national sweep. We examined thousands and actually, millions of patients' records spanning every state that come to these conclusions.

BLITZER: So who is most at risk based on the investigation you conducted?

BERENS: The most at risk always remain the sickest and most vulnerable, those who's immune systems are the weakest. However, what we're finding is that even relatively healthy people can be at risk from other kinds of germs that have been born in hospitals and now, are escaping into the community.

BLITZER: Did -- what do the hospitals say to you when you confronted them with this evidence?

BERENS: The American Hospital Association acknowledged these problems. The spokesperson, Rick Wade -- he's very knowledgeable and very candidate -- talks about the increased financial strain on hospitals and acknowledges that there have been unprecedented cutbacks on nurses, in people who clean rooms and the very people who look for germs.

BLITZER: Did you find that certain hospitals are more dangerous than others, certain hospitals, for example, in cities as opposed to in rural areas? Is there any difference or is this -- there is a constant out there?

BERENS: It's a constant. You find it in the richest hospitals, in the poorest hospitals, large and small. If there's any commonality, it's that hospitals universally have slipped from the detection of germs and have gone to the more marketplace medicine strategy of treating the patient for an infection rather than trying to find out where that infection came from.

BLITZER: Mike Berens of the "Chicago Tribune", good reporting. Thanks so much for joining us.

BERENS: Thank you so much, Wolf.

BLITZER: All right, let's move on speak to our resident physician, Dr. Sanjay Gupta, who knows a lot about this subject. How alarmed, Sanjay, should our viewers be out there?

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: Well, there's no doubt, Wolf, that this is a concerning thing. We've heard reports in the past that medical errors, for example, are a big thing and certainly, hospital infections, many of which are preventable, are also a big deal. I think the good news in that is that, as Mike just pointed out, a lot of these are largely preventable with pretty simple mechanisms -- just a hand solution, sort of a hand cleaning solution that can be placed outside a patient's door, so that as doctors go from room-to-room, they actually would squirt just a little bit on their hands and clean their hands off for just about 30 seconds. That's all it would take.

More complicated sort of mechanisms, as Mike was also referring to -- costs in mechanisms, such as changing the air ventilations systems in hospitals are also something that hospitals are looking at. But I think it's a problem that people know about. I think that these numbers are alarming and it might actually cause some action to take place as a result of that.

BLITZER: We've seen a lot of -- a lot more use of these latex gloves that the doctors and nurses use over recent years. But I've noticed sometimes they go from patient-to-patient without even changing their gloves. That could be enormously dangerous, couldn't it?

GUPTA: It really is enormously dangerous. And I think that just how enormous is something again that we're starting to see more and more. And you know, in the report that you mentioned, Wolf, 20,000 deaths just from lack of hand washing alone. If you take some of these bugs -- and the hospitals have the nastiness bugs around because there's antibiotics in hospitals, there's sick people in hospitals, so you got already pretty nasty bugs and then, you're taken them from sick people to another sick person, who's immune system might be weaken. And that could be a real, real problem for that person.

So yes, you have to change your gloves. You've got to wash your hands. You've got to change your clothing before going into the operating room. Again, these are all things people know, but I think it's something that people need to be more mindful of.

BLITZER: Bottom line -- anything special that our viewers who may be going into a hospital or have a loved one going into a hospital right now, need to do in order to protect themselves?

GUPTA: Well, Wolf, I think it is a hospital obligation more than anything else. The hospitals need to be doing this. There is an accreditation organization, which oversee the cleanliness of hospitals and they need to be pretty stringent on their guidelines. But as individuals, as residents, you need to be aware that taking too many antibiotics can lead to antibiotic resistant infections. Cleanliness at the home, when taking care of your kids, when taking care of your family members, all that sort of stuff, just like in the hospitals has to take place in the home as well. The hospitals -- certainly, the hospitals have to be sort of mindful of the hospitals, but individuals can do things even at the community level.

BLITZER: As always, good practical advice from Dr. Sanjay Gupta. Sanjay, thanks for joining us.

And there are women who know how to get our attention, but is the show living up to the hype? The "Sex And The City" girls are out with this season's first episode. The reviews next.

(COMMERCIAL BREAK) BLITZER: Earlier we asked -- What role does Sarah Jessica Parker play behind the scenes of "Sex And The City?" The answer, co- executive producer.

Manhattan's most popular single women are back. HBO's award- winning comedy, "Sex And The City," premiered its fifth season last night.

(BEGIN VIDEO CLIP, "SEX AND THE CITY")

KIM CATTRALL, ACTRESS: Ladies, seamen 12:00.

CYNTHIA NIXON, ACTRESS: I pray when I turn around, there are sailors because with her, you never know.

SARA JESSICA PARKER, ACTRESS: Oh wow! We have just spotted our first sailors. Fleet week has begun. Fleet week is that one year a year when the U.S. naval ships dock and our fair city is made even fairer with our cute, sleek, American sailors looking for fun.

(END VIDEO CLIP)

BLITZER: This note, HBO, like CNN, is owned by AOL Time Warner. For more on the show and its success, we're joined now by Dayna Devon. She's an anchor and correspondent for the entertainment news show, "Extra."

Dayna, thanks for joining us. For those random viewers out there who might not be familiar with the program, what's the appeal? Why is it such a phenomenal success?

DAYNA DEVON, ANCHOR, CORRESPONDENT, "EXTRA": You know, I was talking about this with some of my coworkers earlier and I think it's that we all see a little bit of ourselves in each of those characters. And the rewarding thing about it is if you're the Charlotte, the real conservative one of the group, you always fantasize about being Samantha, the real irreverent, crazy sex-hungry girl. So I think it allows us to be -- just see a little bit of all those characters in all of us.

BLITZER: And I can understand why a lot of women love the show because it does take us inside the minds of a lot -- these four beautiful women. But why do men love this show as well?

DEVON: You know what, that's such a good question. I think it's like "Cosmopolitan" magazine for men. The straight men watch it so they can see into our minds and our souls. The gay men watch it so they can be like these girls.

BLITZER: And give us a sense of proportion? Yes, it's an incredibly successful show for HBO, but in the scheme of things, how successful has "Sex And The City" been?

DEVON: You know I think it's one of those shows, like "Seinfield," that transcends television. Some of the expressions they use, the fashions they wear, we have, now, in our every day conversations. We -- you know we all relate to Carrie, who said, "You know I have $40,000 worth of shoes, but nowhere to live." And we all can relate to that. And the terms even that they used on last night's show -- they said a real toxic boyfriend was manthrax. And the -- there was an older woman and she was eating her ice cream with her lithium on top of it. All -- at work today, I heard both of those phrases already in our binoculars. So I think it's one of those shows that truly transcends television.

BLITZER: And it's amazing that now this new series -- the new shows are post 9/11. And it's had an impact on these women who live in New York.

DEVON: Absolutely. And you know it's a very subtle impact. They didn't really ever completely address it. But like, you hear references to it. Sarah Jessica Parker says in last night's episode, "Let's go do our patriotic duty and go pour some money into downtown New York by shopping." So that was their reference to it. They also, you know, made reference to the manthrax, like I just mentioned. And they -- you know, they do talk about that stuff.

So yes, they have made references to it, but didn't completely address it. And it's very typical of them because they're serious yet frivolous, which I think is another reason the show is so appealing because I think we're all a little bit like that. We're serious but frivolous.

BLITZER: All right, it's a great show. It's on HBO. They say it's not TV, it's HBO and there may be something to that. Dayna, thanks for joining us.

Let's go to New York now and get a preview of "LOU DOBBS MONEYLINE." That, of course, begins right at the top of the hour. Jan Hopkins is once again sitting in for Lou -- Jan.

JAN HOPKINS, GUEST HOST, "LOU DOBBS MONEYLINE": Thanks, Wolf. Coming up on "MONEYLINE," another punishing sell-off on Wall Street. We'll have complete market coverage. And I'll be joined by market strategist, Tom McManus.

Also, worrying investors, WorldCom submitting the largest bankruptcy protection filing in history. We'll tell you how it could impact customers. And its builders claim a new type of cargo ship could cut delivery time across the Atlantic by a third. We'll have a special report on fast ships. All of that and a lot more ahead. Please join us -- Wolf, back to you.

BLITZER: Thank you very much, Jan. And are you worried that you won't be able to retire? The results of our "Web Question" when we come back.

(COMMERCIAL BREAK)

BLITZER: And we're following a breaking story just coming into CNN right now. The Israeli air force has launched an airstrike in Gaza City, dropping a bomb in a -- what's described as a residential area and causing casualties, according to Palestinian sources. Several Palestinians say there were injuries in the F-16 strike. At least one empty house was hit. No reaction yet from the IDF, the Israel Defense Forces.

"LOU DOBBS MONEYLINE" begins right now.

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