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Anderson Cooper 360 Degrees

Judge Dismisses Securities Fraud Charge in Martha Stewart Trial; Haiti in Crisis: Marines on Standby

Aired February 27, 2004 - 19:00   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.


(BEGIN VIDEOTAPE)
ANDERSON COOPER, HOST (voice-over): Blockbuster from the bench: Martha's judge throws out the most serious allegation.

Help for Haiti? Three ships, 2,200 Marines. Will the U.S. go in?

Ten similar slayings. Is there a serial killer in the Southwest?

Calling all NASCAR dads. The President wants you, and he's got the ads to prove it.

And anchors away. Japan looks for a few good men: seamen.

(END VIDEOTAPE)

ANNOUNCER: Live from the CNN Broadcast Center in New York, this is ANDERSON COOPER 360.

COOPER: And good evening. Thanks for joining us on 360.

Three U.S. Navy ships with 2,200 Marines on alert at this hour for possibly deployment off the coast of Haiti, where the chaos is growing. Details and a live report from Port-au-Prince just ahead.

But our top story tonight, a blockbuster in the Martha Stewart trial. The securities fraud charge, the most serious one against Stewart, dismissed. She no longer faces a penalty of 10 years in prison and a $1 million fine. She is not off the hook yet.

More from CNN's Allan Chernoff.

(BEGIN VIDEOTAPE)

ALLAN CHERNOFF, CNN FINANCIAL NEWS CORRESPONDENT: Martha Stewart, on her way to a celebratory lunch in Chinatown. Judge Miriam Cedarbaum had just tossed out the most serious charge against Stewart, ruling, "The evidence and inferences the government presents are simply too weak to support a finding beyond a reasonable doubt of criminal intent."

(on camera): Mr. Morvillo, your reaction to the throwing out of the securities fraud charge?

ROBERT MORVILLO, STEWART'S ATTORNEY: We are pleased, and we think the judge has made the right decision. End of answer.

CHERNOFF (voice-over): Prosecutors had charged Stewart with trying to defraud investors in her company, Martha Stewart Living Omnimedia, by claiming she did nothing wrong in selling her ImClone stock. Stewart claimed she had an agreement with stockbroker Peter Bacanovic to sell ImClone if the price fell under $60 a share. That issue is still before the court. Prosecutors charge Stewart sold after getting a tip that ImClone chief Sam Waksal was trying to dump his stock.

(END VIDEOTAPE)

CHERNOFF: That allegation underlies the four criminal charges still confronting Martha Stewart: obstruction of justice, conspiracy, and two counts of making false statements. Closing arguments are scheduled for Monday and Tuesday, after which the case goes to the jury -- Anderson.

COOPER: All right. Allan Chernoff, thanks very much. We'll have more on the Martha Stewart case coming up later on, on 360.

We go now to Haiti, where the chaos is just getting worse. The capital, Port-au-Prince, may soon be overrun. The U.S. and its allies are still hoping for a breakthrough that could clear the way for a multinational force.

American forces, as we told you, were on standby. Three Navy ships, 2,200 U.S. Marines could get orders to sit off Haiti's coast as a precautionary measure. Earlier today, President Bush talked about U.S. efforts.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We're interested in achieving a political settlement, and we're still working to that effect. We're also, at the same time, planning for a multinational force that would go in and make sure that if aid needed to be delivered, or there needed to be some stability, that it could go in, dependent upon a political settlement.

(END VIDEO CLIP)

COOPER: President Bush talked about stability. The problem is, at this hour, there seems to be no stability in Haiti. Anarchy prevails.

Right now in the capital city, there is chaos, looting, while President Jean-Bertrand Aristide is vowing to remain in power.

With the latest on the crisis, here's CNN's Lucia Newman in Port- au-Prince. We first want to warn you, some of the video you might see is graphic.

(BEGIN VIDEOTAPE)

LUCIA NEWMAN, CNN CORRESPONDENT (voice-over): Truckloads of armed thugs patrolling the streets, ransacking and shooting whom they please. People looting warehouses at the port. The police nowhere to be seen. The rebels fast approaches the capital.

The brutality so many feared is here. Execution-style killings, like these two men found shot through the head with hands tied behind their backs. Another man castrated with a machete. A seasoned photographer familiar with Haiti calls it anarchy.

UNIDENTIFIED MALE: This is sort of a combination of political vendettas, as well as just very basic vandalism, looting, and people thieving and taking advantage of the lawlessness that exists here today.

NEWMAN: At the airport despair. This Canadian missionary unconsolable when told he can't leave Haiti. Virtually all international flights canceled because of the unrest, leaving hundreds, if not thousands, stranded.

UNIDENTIFIED MALE: It shouldn't be. Because, you know, this is the last place that should be shut down, if anything. Because this is the only way for anybody to be able to do anything, whether to escape...

NEWMAN: With Haiti in chaos, the U.S. Coast Guard repatriated 531 Haitian boat people picked up trying to get to Florida. With armed rebels now taking over more and more towns, insurgent leader De Phillipe (ph) says he plans to encircle the capital and choke off supplies, instead of attacking right away. Residents are scrambling to stock up on food and water from the few shops still open, anticipating the worst.

(END VIDEOTAPE)

NEWMAN: The situation is spiraling out of control, Anderson. And with no one really here in control, it's the guys out on the streets with the guns who are calling the shots -- Anderson.

COOPER: All right. Lucia Newman, stay safe.

Today, a disturbing report on priestly abuse of children was released to the public. It is a story CNN's Jason Carroll broke last week: 4,392 priests accused, and some of the details we learned today are simply shocking.

Here again, CNN's Jason Carroll.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): While the numbers from the report are staggering, so too are the unsettling details emerging about the victims. Most were young boys; their average ages just 12 years old. Many were enticed with alcohol or drugs.

The most common form of abuse, touching under a victim's clothes. But also included, oral sex, masturbation and penetration. Much of the abuse taking place in a parish or a cleric's home. UNIDENTIFIED MALE: On behalf of the bishops and the entire Church in the United States, I restate and reaffirm or apologies to all of you who have been harmed by those among us.

CARROLL: The financial fallout, more than half-a-billion dollars in settlement fees and counseling. Another report explored the causes behind the abuse. Among the new findings, clergy didn't do enough to screen candidates for priesthood, nor was there enough preparation for a life of celibacy.

UNIDENTIFIED MALE: Many bishops, certainly not all, breached their responsibilities as pastors, breached their responsibilities as shepherds of the flock, and put their head in the sand.

CARROLL: Recommendations? Better screening and training in the seminary. More outreach to victims, many of whom are critical of the report's numbers, because they're based on information provided by the Church.

UNIDENTIFIED FEMALE: We just have to be skeptical. It would be naive to believe that this is complete and accurate.

(END VIDEOTAPE)

CARROLL: What is painfully clear is that Church leaders did not do enough to protect children. What is unclear, though, is how those same Church leaders should be reprimanded for their actions -- Anderson.

COOPER: All right. Jason Carroll, thanks very much.

On to the politics now and the big push this weekend ahead of the delegate extravaganza known as Super Tuesday. Today, John Edwards said he's making strides in Minnesota, Ohio, and Georgia, ahead of Tuesday's primaries. And John Kerry focused his energy on what he says are President Bush's foreign policy failures.

Kelly Wallace has the story.

(BEGIN VIDEOTAPE)

SEN. JOHN EDWARDS (D-NC), PRESIDENTIAL CANDIDATE: Thank you.

KELLY WALLACE, CNN NATIONAL CORRESPONDENT (voice-over): John Edwards arriving in St. Paul to some good news. Howard Dean's state organization recommending its Minnesota activists back him on Super Tuesday.

EDWARDS: Welcome and thank you to supporters of Governor Dean who are here today.

WALLACE: And to the political observers who believe his performance in Thursday night's debate did nothing to change the dynamics of the race, the senator from North Carolina says they are wrong. EDWARDS: I think these debates every time we've had one has helped me and my campaign, because people see then that it's basically a two-person race and it's a clear choice.

WALLACE: Edwards is focusing on Minnesota, Ohio, Georgia, and New York, states all hard-hit by job losses. He says no matter what happens Tuesday, he expects to stay in the race, although he concedes eventually it comes down to simple math.

EDWARDS: Our goal is to continue to win delegates, and win delegates in substantial amounts.

WALLACE: John Kerry's aids, thrilled with his performance at the debate, continue their strategy of trying to make the Massachusetts senator look presidential. He delivered a foreign policy speech in Los Angeles.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I don't fault George Bush for doing too much in the war on terror. I believe he's done too little.

WALLACE: With Kerry continuing to say that he, as opposed to Edwards, has the national security experience to defeat the president in November.

KERRY: So I think there is a significant difference in my preparedness, my readiness to be president of the United States.

WALLACE (on camera): Both candidates are now looking ahead to Sunday morning's debate in New York City. Edwards' aides says his strategy won't change. So the question is, will his performance in this final debate before Super Tuesday help him pull off an upset?

Kelly Wallace, CNN, St. Paul, Minnesota.

(END VIDEOTAPE)

COOPER: We are following a number of developing stories right now "Cross Country." Let's take a quick look.

In Washington: the speaker gives in. House Speaker Dennis Hastert has agreed to allow the president's 9/11 Commission an extra 60 days to fin the work. Hastert had been opposed to allowing the extra time. The nonpartisan group said they needed the time to finish their report.

Grundy, Virginia: the guy says he's sorry, this man, Peter Atikizua (ph). He killed three people in 2002 in a shooting rampage at a law school here. Today, he pleaded guilty to the crimes and was sentenced to life in prison without parole. The plea deal means he will not have to face the death penalty.

Atlanta, Georgia: Bobby Brown goes to jail. The 35-year-old R & B singer was sentenced to 60 days for violating his probation. He was arrested two months ago for allegedly striking his wife, singer Whitney Houston. Brown was on probation for an earlier drunk driving conviction. He does not look happy there.

Denver, Colorado: threats land a California man in jail. Cedric Augustan (ph) is charged with 26 separate counts, making death threats against the prosecutor and the alleged victim in the Kobe Bryant sexual assault case. Augustan (ph) was arrested by police and federal agents on Thursday. That's the prosecutor there.

In New York: no winner yet. The $10,000 reward offered by the Doonesbury comic strip has so far gone unclaimed. To win, you have to be able to prove that President Bush actually served in the Alabama National Guard during the early '70s.

So far, hundreds have come forward. And no one's been able to prove anything. A Republican National Committee spokeswoman says the contest is a "silly stunt."

And that's a quick look at stories in tonight's "UpLink" -- in "Cross Country."

Truckstop murders coming up. Is a brutal serial killer at work in six states? Find out why police are on alert.

Plus, nerve gas attacks on Tokyo's subway. Final justice for a doomsday cult leader.

And, looking for a few good men. A military recruitment ad you just have to see to believe. You with will not believe it.

It's all ahead. First, let's take a look "Inside the Box" at the top stories on tonight's network newscasts.

(COMMERCIAL BREAK)

COOPER: Well, the question is, is a serial killer on the loose in the Southwest? As many as 10 women have been found, their bodies strewn along half a dozen states, all with striking similarities.

CNN's Ed Lavandera reports now from Oklahoma City.

(BEGIN VIDEOTAPE)

TED UNDERWOOD, VICTIM'S UNCLE: We're looking at Casey's Spirit House.

ED LAVANDERA, CNN CORRESPONDENT (voice-over): Ted Underwood finds comfort knowing his niece, Casey Joe Pipestem (ph), is buried on the family's property, just as their seminal ancestors were laid to rest.

UNDERWOOD: Her death was premature. And not only premature, but it was unnatural. She was murdered by an individual that's possessed with evil. He's sinister.

LAVANDERA: Pipestem (ph) was last seen at an Oklahoma truck stop in January. Days later, her body was found in a Texas creek. Investigators want to know if there's a connection between that killing and the murders of at least nine other women in Oklahoma, Texas, and four other states. About 50 investigators gathered in Oklahoma City to compare the cases.

JESSICA BROWN, OKLAHOMA STATE BUREAU OF INVESTIGATION: Now, we cannot say at this point in time that we're talking about one person who is doing these. We don't know. All we know is that some of these are very similar in nature.

LAVANDERA: Investigators say most of the victims were last seen at truck stops along the same interstate. Most had a history of prostitution, and their bodies were found naked on the roadside.

UNIDENTIFIED MALE: This woman here is who we believe to be or victim.

LAVANDERA: The cases are tough to crack, but perhaps none like this one, a woman last seen in surveillance video in an Oklahoma truck stop. Authorities don't know who she is or how she ended up dead in the Texas Panhandle six hours after this picture was taken.

UNIDENTIFIED MALE: When we have to go home at the end of the day and we still do not know who this lady is, and it's, like I say, frustrating.

(END VIDEOTAPE)

LAVANDERA: There are no suspects at this time, but several investigators say they believe they're looking for a truck driver. We also have been told that the FBI is helping the investigators come up with a profile of who this person might be -- Anderson.

COOPER: All right. Ed, thanks very much, from Oklahoma.

Heading overseas now, the Saudi government has been saying it wants to increase tourism, but now they're on the defensive. Take a look at what was posted on a Saudi government tourism Web site, a list of those who won't be allowed to enter the oil-rich kingdom. It says, "Visas will not be issued to Israeli passport holders and those who don't abide by the Saudi traditions, as well as Jewish people."

They just came out and said it. Jewish people, they don't want them. We called the Saudi embassy, they said it was a mistake. In a statement, officials say, "The Saudi kingdom does not deny visas on the basis of religion, and everyone is encouraged to visit." Just moments ago, in fact, we learned the kingdom now says they are opening an investigation.

We're tracking a number of developing stories around the globe right now. Let's check the "UpLink."

Washington: human rights groups criticize the Bush administration after its announcement today that it will not join an international landmine ban. However, the White House is promising to phase out traditional landmines and use only those timed to self-destruct.

Tokyo, Japan: a death sentence for Shoko Asahara, the cult leader convicted in the 1995 sarin gas attack on the city's subways. Twelve people were killed and thousands of others got sick from the nerve gas.

Beijing: six-nation talks on North Korea's nuclear programs are winding down. China says they'll end tomorrow after three days, an arguable amount of progress. A new round of negotiation is said to be in the works.

Near Manila, Philippines: hundreds are rescued from a burning luxury passenger ferry. Many of them leaped in Manila Bay. In all, there were more than 800 passengers and crew on board. One person was killed, and about 100 are still missing.

Caracas, Venezuela: opposition protesters take to the streets. More than a dozen are hurt in clashes with police. The demonstrations were timed to get the attention of leaders of developing nations meeting in the capital. The protesters wants to vote to recall the Venezuelan president, Hugo Chavez.

And this now from Japan. The navy there is apparently looking for a few good recruits, so they put out a new navy recruiting ad. And, well, you just kind of have to see it to believe it.

(BEGIN VIDEO CLIP)

(MUSIC)

(END VIDEO CLIP)

COOPER: I'm sorry. I've got to see that again.

COOPER: Seamanship.

All right. Same-sex marriages now come out of the closet coast to coast. A New York mayor starts handing out marriage licenses. Is it too late to turn back the clock? We'll talk about that coming up.

Also tonight, a convicted serial killer to be released from prison for good behavior. An unbelievable story. How could it happen? We're going to take a closer look at the case that has victims understandably outraged.

And a little later, raw politics. NASCAR dads and the race for the White House. Gentlemen, start your wallets. Big money being spent to win your hearts.

All ahead.

(COMMERCIAL BREAK)

COOPER: So first it was San Francisco, now an eastern front is opening in the increasingly heated debate over same-sex marriage. About 20 gay and lesbian couples were married today in the tiny town of New Falls, New York. The 26-year-old mayor officiated there.

New Falls is a pretty small village, a college town about 75 miles north of New York City. The state attorney general already turned down a request to block the weddings.

And in California today, a move to stop the weddings being performed at San Francisco City Hall. The attorney general there is asking the state Supreme Court to invalidate the thousands of marriage licenses that have already been handed out to gay couples, and to order the county to stop issuing new ones. Attorney General Bill Lockyer says state law defines marriage as being between a man and a woman.

The whole issue of same-sex marriage may have some unintended consequences for gay couples. It could certainly change the dynamics of some relationships. Will the "M" word give one's partner or one's mother a new reason to nag?

CNN's Jeanne Moos gauged the mood.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): Up until now, straight people felt pressured to get married.

UNIDENTIFIED FEMALE, "GUYS AND DOLLS": All we need now is a license and a blood test.

UNIDENTIFIED MALE, "GUYS AND DOLLS": Blood test?

UNIDENTIFIED FEMALE: Don't worry, Nathan. You've got blood.

COOPER: That was "Guys and Dolls." But these days, guys and guys and dolls and dolls are getting hitched. So are gays starting to feel the heat?

(on camera): Do you think one partner is sort of agitating, "Well, let's get married now. I want to get married now that we can get married." Do you think that's happening?

UNIDENTIFIED FEMALE: I definitely think so. I talk to couples all around the country. Now that it's an option, people are rethinking their relationships.

UNIDENTIFIED MALE: Well, we're thinking about it. It's in my mind for sure. And maybe...

MOOS: Are you going to put a little pressure on him?

UNIDENTIFIED MALE: I might put a little pressure. Not that I have any bride fantasies.

MOOS (voice-over): Now that a marriage certificate is at least possible, even a single gay guy has marriage pressure envy.

UNIDENTIFIED MALE: I would love to have the pressure, because I want a home, I want a backyard, and I want puppies and I want babies.

UNIDENTIFIED MALE: Yes, it's interesting. I never wanted to be married, but now it's kind of like you have to be forced to think about it.

MOOS: And there's a whole segment of gay society that says, "I don't," rather than "I do."

UNIDENTIFIED MALE: But I don't see why gay people have to incorporate something from straight society.

MOOS: Whether it's yep to gay nups, or nope to gay nups, nups aren't the only thing gays are passionate about.

UNIDENTIFIED MALE: I thought you were going to ask me about "The Passion of the Christ," because I have a big opinion about that, too.

MOOS (on camera): I bet you do.

(voice-over): Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

COOPER: All right. Well, coming up, a serial killer possibly set to go free. A shocking story you won't want to miss. We'll be right back.

(COMMERCIAL BREAK)

COOPER: Coming up in the next half-hour on 360, a confessed serial killer to be released for best behavior? Find out how this could possibly happen.

First, let's check our top stories in tonight's "Reset."

Port-au-Prince, Haiti: anarchy. That is how CNN's Lucia Newman describes the situation on the ground. She says with police nowhere to be found, armed gangs have taken over the streets, leaving bodies, looting and fires in their wake. President Aristide still refuses to resign.

Washington: red ink and then some. The Congressional Budget Office estimates that President Bush's budget plans would produce a $2.75 trillion deficit over the next decade. The nonpartisan analysts say the deficits would shrink in the next two years but balloon in the long run.

Denver, Colorado: the governor wants some answers. The state's attorney general has been told to investigate the recruiting scandal of the University of Colorado. The attorney general will act as a special prosecutor during his probe. Several women claim they were raped at so-called sex parties used to entices new recruits.

In Chicago: fewer counts on the rap sheets. Prosecutors have dropped seven of the 21 charges against R. Kelly in what they call a routine pretrial move. He still faces 14 counts of child pornography stemming from a videotape, where he's allegedly seen having sex with an underage girl.

And that is a quick story -- quick look at stories in the "Reset."

A bizarre case in Texas now. A confessed serial killer is expected to be released from prison on parole unless victims' advocates and others can stop it.

CNN's Jeff Flock reports.

(BEGIN VIDEOTAPE)

JEFF FLOCK, CNN CHICAGO BUREAU CHIEF (voice-over): Coral Eugene Watts confessed to killing 13 women.

MELINDA AGUILAR, VICTIM: I could tell that he enjoyed what he was doing, and that was the scary part.

FLOCK: He's a suspect in dozens of others.

ANDY KAHAN, VICTIM'S ADVOCATE: I'm going to say at least 40, possibly more.

FLOCK: And he could be out of prison in two years.

AGUILAR: You've heard of Ted Bundy, you've heard of Charles Manson. Nobody's heard of this man.

FLOCK: In Houston, 1982, Watts admitted killing Joanna Semander's sister, Elena.

UNIDENTIFIED FEMALE: This is one of her letters that she got in high school.

FLOCK: But it was a plea bargain. With little evidence, they only convicted him of burglary.

UNIDENTIFIED FEMALE: And the maximum in 1982 that he could receive was 60 years.

FLOCK: With good time, he sentence is up early 2006.

KAHAN: You don't rehabilitate a serial killer.

FLOCK: Andy Kahan leads a nationwide effort to keep Watts in prison, gathering victims' families in Texas.

KAHAN: He is a diabolical killing machine.

FLOCK: The best hope for a new charge? The case of Gloria Steele.

DAN WATSON, KALAMAZOO PUBLIC SAFETY CHIEF: This is the apartment complex that Gloria Steele lived in and died in.

FLOCK: Kalamazoo, Michigan public safety chief Dan Watson shows us where he thinks Watts murdered the 19-year-old college student in 1974.

WATSON: She was stabbed over 30 times in a very vicious and brutal attack.

FLOCK: Melinda Aguilar's testimony put Watts behind bars on the original burglary charge.

AGUILAR: You know, I can't believe that they would even think, you know, letting him out there.

FLOCK: Through prison officials, Watts declined CNN's request for an interview.

KAHAN: There has never in this country's history ever been a serial killer legally released.

Coral Eugene Watts will be the first, unless we can prevent it.

FLOCK: They're trying.

I'm Jeff Flock, CNN, in Chicago.

(END VIDEOTAPE)

COOPER: And Jeff Flock joins us now. Jeff, I have got to ask you, is there any legal remedy to try to stop this man from being paroled?

FLOCK: Well, the one possibility, of course, is if they can come up with new charges. And that's of course what the families of the victims are trying to do. They're trying to put the word out there and potentially develop a case. That one in Kalamazoo, as we reported, is the strongest possible one. I just talked to the chief there tonight; he says they're still several weeks away from a decision on possible charges there.

COOPER: Unbelievable story. Jeff Flock from Chicago. Thanks, Jeff.

What exactly is being done to try to stop the parole, as Jeff mentioned? Joining me now from Houston, Texas, Andy Kahan, the victims' advocate whom you just saw in Jeff's report, and in San Francisco, a woman who says her sister was killed by Watts, but he has not confessed or been convicted yet of that crime. Thank you both for being with us, Andy and Stephanie.

Stephanie, I want to start off with you. When you heard that Watts might actually get paroled, what did you think?

STEPHANIE, VICTIM'S SISTER: I mean, it's total disbelief. You go through the horrifying ordeal of the death of a loved one, and finally they go to prison and you think it's over, and then 20 years later you hear he's getting out of prison. And it's not parole. It's my understanding it's mandatory release. I mean, he took my sister's life, and he's going to get back on the streets, and he's in his 50s. And he's said he's going to do it again.

COOPER: And this crime was 20 years ago, but this is something you've been living with I imagine every day since then. STEPHANIE: Well, yeah. I mean, exactly. You -- anyone who's lost someone knows, you know, you take everything you have to breathe in and breathe out in the beginning after a death, but you get through it eventually. Your life is never the same. I mean, your family is always changed, but you get through it and you go on. And you think a horrible monster like this, there's no way he can get out, and he's going to get out. I mean, it's unbelievable.

I think people don't really think this is really going to happen, because it's so unbelievable that -- this can't be, but it's going to happen.

COOPER: Andy, is this going to happen?

KAHAN: It's going to happen unless Michigan can file a charge and get him convicted. That's the bottom line. And unless Michigan can do that, Coral Eugene Watts will be the first serial killer in this country's history ever to be legally released.

And that's really important. This is not just a Texas problem, it's not just a Michigan problem. Because if he is released on mandatory release, I guarantee he's not going to stay in Texas, he's not going to go to Michigan. He's going to end up in a neighborhood like somebody -- where you're living, for example, and the bottom line is, he is a killing machine, and he has said when he gets out, he's going to do it again.

COOPER: How many people is he suspected of killing in Michigan? We're not even talking about Texas, where he's confessed to numerous killings.

KAHAN: It could be as many as 40. He's credited with as many as 80. And that's what makes this case so troubling. I mean, he never gets his credit as a serial killer, and quite frankly he's never even been convicted of murder. But when you think of serial killers, you think of Bundy, Dahmer, Gacy. The name of Coral Eugene Watts doesn't even register a blip on the radar scale, and he's probably killed more people in this country's history, including the recent Green River killer.

COOPER: Stephanie, do you have a sense of frustration at all? I mean, do you feel like there's anything you can really do to either stop this or even try to get justice for your sister?

STEPHANIE: Yeah, I mean, that's why I'm here. I don't want to be on TV, but there's got to be witnesses out there. I mean, this man went on a murder rampage for over 10 years. We have to find witnesses, because that's the only thing that is going to get this guy.

There's a lot to the background. They bungled the case. There is a technicality, that's why he's getting out. We have to find witnesses.

And beyond that, I want to know where the governor of Texas is. We've sent thousands of petitions to his office, not to even change the law, but to create a task force to look into this. There's got to be a creative way to find -- to keep this guy in prison. And what's going on? I mean, this is Texas. You know, I want the president. Wake up, somebody get involved. Because that's supposed to be the toughest state in the union, and Texas is going to release the only known serial killer back into society in his 50s. He said he'll do it again. I mean, every woman in the country virtually is at risk.

COOPER: Stephanie, before we go, I don't want to leave with images of this guy in our minds. Tell us a little bit about your sister. What kind of woman was she? And what do you miss about her?

STEPHANIE: I appreciate you asking. Brilliant, she was an art history major in college. She had traveled the world before she was 30. She read two books a week, and most importantly she had a great heart. She worked through high school in a home for mentally retarded children. She felt in love with all of them. She tried to get my parents to adopt one of them.

What I miss is not having a life with her. I was a lot younger than her when she died. She was 30; I was 18. I had so much to learn from her. She was a contributor to society, and what are we going to get instead? You know, Watts, out killing more women?

KAHAN: And that's an important point, Anderson. He was indiscriminate in choosing his victims. They ranged from the ages of 14 to 40. They were all races, all socioeconomic positions, and these were all vibrant, young ladies who had a lot to contribute to society. And the only reason that he killed them and the only reason he chose these victims was because he thought they had evil eyes, and he wanted to extinguish the evil out of them.

COOPER: It's unbelievable. We're obviously going to keep following the story. Andy, we appreciate you joining us. And Stephanie, especially, I know it's tough to talk about, but we appreciate you coming in and talking about your sister as well. Thank you very much.

KAHAN: You bet.

STEPHANIE: Thank you.

COOPER: Well, starting March 4, the Bush-Cheney campaign will spend some $4.4 million in political ads on national cable networks, like CNN, Fox News and MSNBC, but also Fox Sports, during NASCAR time slots. Why, you might ask? Well, it's all about raw politics. Take a look.

(BEGIN VIDEOTAPE)

COOPER: The next time you're watching NASCAR on Fox Sports, don't be surprised if during the commercial break you see something like this.

ANNOUNCER: The president of the United States on America's role in a changing world. GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I've got a foreign policy that is one that believes America has a responsibility in this world.

COOPER: Why run political ads during a race? Politicians have 75 million reasons. That's how many Americans are NASCAR fans. The ads may be new, but the interest is not.

BUSH: Gentlemen, start your engines.

COOPER: Two weeks ago, President Bush popped up at the Daytona 500, the most prestigious NASCAR race.

BUSH: It would have been fun to drive up on these banks, but I'm afraid the agents wouldn't let me, you know.

COOPER: And at the speedway, the Republican National Convention has set up camp to register voters. It's those so-called NASCAR dads politicians are after.

Who are they? According to pollsters, mostly white, working- class men living in rural areas. And research shows so-called NASCAR dads are socially conservative, concerned about the economy, and perhaps most important of all, politically uncommitted.

The NASCAR marketing department likes to claim that its fans are three times as likely to purchase sponsors' products. Politicians are hoping that goes for their products as well.

(END VIDEOTAPE)

COOPER: So now to the Democrats, revving up for what could be their last weekend for full throttle, scrambling for votes. The race could be decided in just days, of course, on super Tuesday. In our week-long series, "10 States, Five Days," we've been looking at the super Tuesday states, with 1,151 delegates up for grabs.

Tonight, we focus on Vermont and New York, and what they mean for Kerry and Edwards. Joining me now, CNN political analyst, Carlos Watson. Carlos, thanks for being with us.

CARLOS WATSON, CNN POLITICAL ANALYST: Good to see you.

COOPER: All right, let's talk about Vermont. We're talking 15 delegates at stake, very small. Independents, Republicans can vote. Edwards not on the ballot. You have this weird situation where Wesley Clark and Howard Dean are on the ballot, but Edwards isn't.

WATSON: So last fall when it was time to register, he didn't think he had a chance. Howard Dean was the leader in the race, it's his home state. Didn't pay the $2,000, didn't get 1,000 signatures. So he's skipping it, which ultimately would probably make sense anyhow, since John Kerry is from next door.

COOPER: All right, let's talk about what's going on in New York, a big prize here. Two hundred thirty-six delegates at stake. Only Democrats can vote. Clinton-Gore, the only Southern candidates to win. It is the second biggest prize on super Tuesday. What are the big issues here?

WATSON: Four issues -- economy and health care, which we're seeing in other places, but two kind of New York special issues. Police brutality. Remember Al Sharpton talking about that in the debate yesterday, and also of course in New York, national security, especially post 9/11.

COOPER: What do you think each candidate needs to do to win here?

WATSON: John Kerry has got three things he needs to do. He has got to have a strong New York City turnout. Remember, close to two- thirds of the people who will probably vote on Tuesday, Democrats, will be in New York City, so he's got to get a great turnout. Number two, he's got to really emphasize the jobs theme, particularly through town halls and other things upstate, in upstate New York. There's some struggles, Buffalo, Utica, et cetera. And last but not least, no major gaffes. There's a debate on Sunday in New York City. You know, he doesn't want to make a mistake there.

COOPER: All right, well, let's talk about Reverend Sharpton. Any chance for New York?

WATSON: Reverend Al actually may surprise you. There are six congressional districts where he could pick up delegates. And here's what's worthy of watching here -- if he walks away from here with 40 or 50, maybe even 60 delegates, when it comes to the convention, he is going to have a lot more say than otherwise. So he's not going to come in first, probably won't even come in second, but if he does well here, he probably gets a prime-time speech at the convention.

If he doesn't do well, maybe you stay up until 2:00 a.m., and you'll see him speak them.

COOPER: And a lot of people are saying, that's what he's been wanting all along. Let's talk predictions. It seems pretty obvious, but Vermont?

WATSON: Well, look, Vermont, you know who's going to win, but before we do New York, I should say that what Edwards has to do is he's got to become the candidate of jobs, particularly upstate, spend all his time there, and last but not least, he's got to hope for a little help from Al Sharpton. If Al Sharpton attacks Kerry in the debate on Sunday, careful, could be a surprise. But there won't be. John Kerry is going to win.

COOPER: All right. Carlos Watson, thanks.

WATSON: Good to see you.

COOPER: Big break for Martha Stewart, a judge dismisses the most serious charge against her, but Stewart's legal fight is not over. That ahead in "Justice Served."

(COMMERCIAL BREAK)

COOPER: In "Justice Served" tonight, a sigh of relief for Martha Stewart. The judge dropped the most serious charges, securities fraud, a count that carried a possible ten year prison sentence. Stewart's legal fight, not over.

Joining me now, Court TV anchor Lisa Bloom, and "Celebrity Justice" correspondent, Carolina Buia. Good to see both of you.

Carolina, you've been in court room every day, every day. Were you surprised by this?

CAROLINA BUIA, CELEBRITY JUSTICE: You know the thing that surprised me the most was that the judge hadn't dropped this charge earlier. She made some indications that she wanted to drop it. She called it a novel application of the charge and during court, she called it problematic during the trial.

And in fact, Lisa and I were writing notes to each other, this charge is going bye-bye. I'm just surprised it took so long, right before closing arguments, right before the jury gets the case.

COOPER: Lisa, what exactly does it mean? What are the charges that are left? Because there are 4 charges left.

LISA BLOOM, COURT TV: Well, this is the top charge against Martha Stewart. It carried a 10 year term. It is now gone. The remaining charges only carry a five-year term. Under the federal sentencing guidelines, if convicted she looking at probably slightly less than one year, under any of the remaining charges. So that's a big victory for her.

And the remaining charges: conspiracy, two charges of making false statements and obstruction of justice all arise from a different set of facts, what she did when she talked to SEC investigators. This case is really a honed down now for the jury. They have a lot less to deliberate about when they consider the case next week.

COOPER: Yes. Carlina, what kind of impact does this have on the jury? This kind of throwing it out at such last minute.

BUIA: Well, it could go either way. They may say, wow, there was a lot of testimony about securities fraud, where is that? Is this a point of weakness in the government's case? Or they may say, okay, there wasn't enough evidence for this. That means the other charges have more credibility.

And on the other hand, they say, great, one less charge to deliberate over.

COOPER: Now, Peter Bacanovic was never accused of this charge, so it doesn't really impact him?

BUIA: No impact against him. All of the charges against him are still in.

COOPER: All right, we're going to leave it there. Lisa Bloom thanks very much. Carolina Buia, thanks.

Chances are you know someone with an addiction, maybe to food, maybe to gambling, drugs or sex, possibilities are really endless. All next week on 360 we bring you a special series, "Addiction in America." Here's a quick preview.

(BEGIN VIDEOTAPE)

COOPER (voice-over): It destroys relationships and ruins lives.

UNIDENTIFIED FEMALE: I used sex as a drug. I mean, it was my drug of choice and I was using sex to numb out...

COOPER: It could cost you your job, your savings, you family.

UNIDENTIFIED MALE: It just went right through the veins, right to the head and I felt like I was in paradise.

COOPER: Addiction in America takes many forms and crosses all lines. Next week a 360 look at the devastating world of addiction. We'll take you to the streets of New York, home to an underground world, where addicts hooked on heroin or meth struggle to feed their desperate habit.

We talk to men and women who have lost everything trying to fulfill an never ending need for sex. And the latest addiction only a mouse click away, why more and more Americans are turning an interest in the Internet into a dangerous obsession.

(END VIDEOTAPE)

COOPER: "Addiction in America" airs all next week right here on 360.

So are you looking for ways to spend the weekend? A little change of subject. Is the new dirty dancing movie worthy of your cash? Find out about that in "The Weekender" just ahead.

Plus "The Current," pre-Oscar buzz and the vows to make it family-friendly. We'll see how long that lasts.

(COMMERCIAL BREAK)

COOPER: All right. Time to quickly check in pop news in tonight's "Current." Let's see what's going on. ABC is vowing to make the show tasteful and family-friendly. It's also imposing a delay, making sure nothing turns up that's obscene, vulgar or indecent. Joan and Melissa Rivers, however, will be allowed to attend.

Mike Tyson pled guilty yesterday for his part in a Brooklyn brawl. Instead of going to jail, the former heavyweight was ordered to coach up and coming boxers in a New York gym. Tyson's advice to boxers includes: jab with your left, keep your chin low, bite his ear off, eat his kids, file for bankruptcy. And the Japanese Navy wants a little appreciation. They put together a commercial. And I know we showed it earlier in the program and we showed it twice, but frankly we think it's the best commercial we've ever seen and we're going to show it again. Take a look.

(BEGIN VIDEO CLIP)

(MUSIC)

(END VIDEO CLIP)

COPPER: Seamanship. All right. Let's take on "The Weekender." Ashley Judd takes a stab at a new genre, "Dirty Dancing" goes to Cuba. And the red carpet is being rolled out -- I'm so excited about Seaman ship. Let's take a look at Friday's edition of the "Weekender."

(BEGIN VIDEOTAPE)

COOPER (voice-over): In movies, Ashley Judd stars in yet another psychological thriller. This one's "Twisted." No, really, that's the name of the movie, "Twisted." Judd plays Jessica Shepard, a hard- drinking homicide detective out to capture a serial killer on the loose, blah, blah, blah, who just might be, you guessed it, Jessica Shepard. Very twisted.

Also out, "Club Dread." It's the latest entry into the newest of film genres, the slasher comedy.

UNIDENTIFIED MALE: Are you telling me there's some totally deranged dude running around out there?

COOPER: Can extreme violence and extreme raunch peacefully coexist on the big screen? Does anyone really care?

Finally, for the 11 of you out there who couldn't wait for a "Dirty Dancing" remake, rest easy, baby. "Dirty Dancing, Havana Nights" transplants all the glamour and intrigue of the Catskills to Cuba circa 1958.

UNIDENTIFIED MALE: You're a pretty good dancer.

FEMALE: I was terrible.

UNIDENTIFIED MALE: Yes, you were terrible.

COOPER: New on DVD, "School of Rock" starring Jack Black as the substitute teacher we never had, but really wish we did.

And on TV, this Sunday, the 76th annual Academy awards starts at 8:30 p.m. At 7:00 p.m., E! unleashes the twin rivers of scorn, Joan and Melissa.

(END VIDEOTAPE)

COOPER: All right. Which nominees will stay seated and politely applaud and which ones will be giving an acceptance speech? Film critic Elvis Mitchell of the "New York Times" joins us with his predictions.

ELVIS MITCHELL, "NEW YORK TIMES": I was so impressed with your Japanese in the other segment. It's so beautifully spoken. Can you translate that for me? And you know what that was still a better movie than "Dirty Dancing 2."

(CROSSTALK)

COOPER: All right. We'll talk about Seaman ship maybe in a little bit if we have time. But first let's have the Academy awards. You know, these Academy Award/Oscar polls, which I got to say I hate -- I hate all forms of office polls.

(CROSSTALK)

COOPER: It puts pressure on the Oscars. I don't want to watch the Oscars with pressure. I don't want to be checking off a list, but apparently a lot of people like it, people in my office like it.

(CROSSTALK)

MITCHELL: Everybody's a winner. But the honor is just in being nominated isn't it?

COOPER: To help out people with these polls, who do you think will win best picture or what do you think is going to win best picture?

MITCHELL: You know what? It's a Japanese -- you're still thinking like that. Bring you back to English here. It probably will be the "Lord of the Rings."

COOPER: I will accept that.

(CROSSTALK)

COOPER: "Lord of the Rings," I totally agree. Best actor?

MITCHELL: Best actor. Now, see, that's a real horse race. (UNINTELLIGIBLE). I think the other nominees, I think Johnny Depp has a real shot with this and it's a great -- that you can give a performance (UNINTELLIGIBLE) movie directed by a guy who (UNINTELLIGIBLE). That's like swimming laps with a refrigerator on your back. It's a really sort of nimble, agile, intelligent, really funny performance.

COOPER: But you have Sean Penn, Bill Murray...

MITCHELL: My favorite performance is Bill Murray. It's just a really great -- it's like a career-capping performance. You figure if he doesn't win for this, what is he going to win for? Not "Caddyshack 3."

COOPER: Ouch. Let's talk about best actress. I guess Charlize Theron is the favorite.

(CROSSTALK)

COOPER: But everyone likes it when an actress takes off the makeup, plays a gritty role, everyone seems to give an Oscar to it.

MITCHELL: Wow, how gender condescending.

COOPER: Didn't Farrah Fawcett get all sorts of hoopla when she did the burning (ph) bed thing years ago?

MITCHELL: Yes, it's was like back in the '30s.

(CROSSTALK)

COOPER: Screenplays, I never know what to pick in this category.

MITCHELL: Now, see, that's the interesting category. Because what's happened is basically the original screenplays all come from independent movies, because the studios want to do movies of books, you know, say the "Lord of the Rings" or "Cold Mountain" or "Mystic River." And so you get all these great categories. You have this amazing "Lost in Translation," you've got all these great pictures that nobody really knows about that were all independent films that got bought by studios eventually. That's the coolest category to me.

COOPER: If there was a category for best commercial do you think the Seamanship commercial would win?

MITCHELL: You said that with a straight face.

COOPER: Could you just show a little Seaman ship? Do we have time to show just a little?

MITCHELL: That will be a nominee for best short film for next year, isn't it? Look at the production technique. They spent tons of yen on that, didn't they?

COOPER: This is a real commercial for Japanese TV. Elvis Mitchell. Thanks very much. I've got to go, we'll be right back.

We say good-bye to one of our own just ahead.

(COMMERCIAL BREAK)

COOPER: Tonight, taking Flock to the "Nth Degree." Earlier we aired a story by Chicago bureau chief Jeff Flock. It turns out that was his last story for CNN. The news, I admit, caught me by surprise. See, Flock is one of the originals. In 1980, the first day CNN went on the air, he was there. And he's been there, here, and everywhere ever since.

Hurricanes and floods, crashes and conflicts. In bad times, and in good. Jeff Flock has covered it all. In the CNN newsroom, his name is also an adjective. It's a flock piece, they say, and everyone knows what that means -- smart, sensitive, original. Those adjectives describe both the reporting and the man. Television is a medium without a memory and forgets fast and remembers little. We however will not forget Jeff Flock. Reporters, like anchors, come and go, but the good thing about TV is you can also come back. Somewhere, sometime, somehow, I hope he comes back on the air. After all, there are still a lot of important stories to tell and no one tells them like Jeff Flock does. Jeff, we've been lucky to have you as long as we have. From all of us at 360, thank you.

Coming up next, "PAULA ZAHN NOW."

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com





Trial; Haiti in Crisis: Marines on Standby>


Aired February 27, 2004 - 19:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)
ANDERSON COOPER, HOST (voice-over): Blockbuster from the bench: Martha's judge throws out the most serious allegation.

Help for Haiti? Three ships, 2,200 Marines. Will the U.S. go in?

Ten similar slayings. Is there a serial killer in the Southwest?

Calling all NASCAR dads. The President wants you, and he's got the ads to prove it.

And anchors away. Japan looks for a few good men: seamen.

(END VIDEOTAPE)

ANNOUNCER: Live from the CNN Broadcast Center in New York, this is ANDERSON COOPER 360.

COOPER: And good evening. Thanks for joining us on 360.

Three U.S. Navy ships with 2,200 Marines on alert at this hour for possibly deployment off the coast of Haiti, where the chaos is growing. Details and a live report from Port-au-Prince just ahead.

But our top story tonight, a blockbuster in the Martha Stewart trial. The securities fraud charge, the most serious one against Stewart, dismissed. She no longer faces a penalty of 10 years in prison and a $1 million fine. She is not off the hook yet.

More from CNN's Allan Chernoff.

(BEGIN VIDEOTAPE)

ALLAN CHERNOFF, CNN FINANCIAL NEWS CORRESPONDENT: Martha Stewart, on her way to a celebratory lunch in Chinatown. Judge Miriam Cedarbaum had just tossed out the most serious charge against Stewart, ruling, "The evidence and inferences the government presents are simply too weak to support a finding beyond a reasonable doubt of criminal intent."

(on camera): Mr. Morvillo, your reaction to the throwing out of the securities fraud charge?

ROBERT MORVILLO, STEWART'S ATTORNEY: We are pleased, and we think the judge has made the right decision. End of answer.

CHERNOFF (voice-over): Prosecutors had charged Stewart with trying to defraud investors in her company, Martha Stewart Living Omnimedia, by claiming she did nothing wrong in selling her ImClone stock. Stewart claimed she had an agreement with stockbroker Peter Bacanovic to sell ImClone if the price fell under $60 a share. That issue is still before the court. Prosecutors charge Stewart sold after getting a tip that ImClone chief Sam Waksal was trying to dump his stock.

(END VIDEOTAPE)

CHERNOFF: That allegation underlies the four criminal charges still confronting Martha Stewart: obstruction of justice, conspiracy, and two counts of making false statements. Closing arguments are scheduled for Monday and Tuesday, after which the case goes to the jury -- Anderson.

COOPER: All right. Allan Chernoff, thanks very much. We'll have more on the Martha Stewart case coming up later on, on 360.

We go now to Haiti, where the chaos is just getting worse. The capital, Port-au-Prince, may soon be overrun. The U.S. and its allies are still hoping for a breakthrough that could clear the way for a multinational force.

American forces, as we told you, were on standby. Three Navy ships, 2,200 U.S. Marines could get orders to sit off Haiti's coast as a precautionary measure. Earlier today, President Bush talked about U.S. efforts.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We're interested in achieving a political settlement, and we're still working to that effect. We're also, at the same time, planning for a multinational force that would go in and make sure that if aid needed to be delivered, or there needed to be some stability, that it could go in, dependent upon a political settlement.

(END VIDEO CLIP)

COOPER: President Bush talked about stability. The problem is, at this hour, there seems to be no stability in Haiti. Anarchy prevails.

Right now in the capital city, there is chaos, looting, while President Jean-Bertrand Aristide is vowing to remain in power.

With the latest on the crisis, here's CNN's Lucia Newman in Port- au-Prince. We first want to warn you, some of the video you might see is graphic.

(BEGIN VIDEOTAPE)

LUCIA NEWMAN, CNN CORRESPONDENT (voice-over): Truckloads of armed thugs patrolling the streets, ransacking and shooting whom they please. People looting warehouses at the port. The police nowhere to be seen. The rebels fast approaches the capital.

The brutality so many feared is here. Execution-style killings, like these two men found shot through the head with hands tied behind their backs. Another man castrated with a machete. A seasoned photographer familiar with Haiti calls it anarchy.

UNIDENTIFIED MALE: This is sort of a combination of political vendettas, as well as just very basic vandalism, looting, and people thieving and taking advantage of the lawlessness that exists here today.

NEWMAN: At the airport despair. This Canadian missionary unconsolable when told he can't leave Haiti. Virtually all international flights canceled because of the unrest, leaving hundreds, if not thousands, stranded.

UNIDENTIFIED MALE: It shouldn't be. Because, you know, this is the last place that should be shut down, if anything. Because this is the only way for anybody to be able to do anything, whether to escape...

NEWMAN: With Haiti in chaos, the U.S. Coast Guard repatriated 531 Haitian boat people picked up trying to get to Florida. With armed rebels now taking over more and more towns, insurgent leader De Phillipe (ph) says he plans to encircle the capital and choke off supplies, instead of attacking right away. Residents are scrambling to stock up on food and water from the few shops still open, anticipating the worst.

(END VIDEOTAPE)

NEWMAN: The situation is spiraling out of control, Anderson. And with no one really here in control, it's the guys out on the streets with the guns who are calling the shots -- Anderson.

COOPER: All right. Lucia Newman, stay safe.

Today, a disturbing report on priestly abuse of children was released to the public. It is a story CNN's Jason Carroll broke last week: 4,392 priests accused, and some of the details we learned today are simply shocking.

Here again, CNN's Jason Carroll.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): While the numbers from the report are staggering, so too are the unsettling details emerging about the victims. Most were young boys; their average ages just 12 years old. Many were enticed with alcohol or drugs.

The most common form of abuse, touching under a victim's clothes. But also included, oral sex, masturbation and penetration. Much of the abuse taking place in a parish or a cleric's home. UNIDENTIFIED MALE: On behalf of the bishops and the entire Church in the United States, I restate and reaffirm or apologies to all of you who have been harmed by those among us.

CARROLL: The financial fallout, more than half-a-billion dollars in settlement fees and counseling. Another report explored the causes behind the abuse. Among the new findings, clergy didn't do enough to screen candidates for priesthood, nor was there enough preparation for a life of celibacy.

UNIDENTIFIED MALE: Many bishops, certainly not all, breached their responsibilities as pastors, breached their responsibilities as shepherds of the flock, and put their head in the sand.

CARROLL: Recommendations? Better screening and training in the seminary. More outreach to victims, many of whom are critical of the report's numbers, because they're based on information provided by the Church.

UNIDENTIFIED FEMALE: We just have to be skeptical. It would be naive to believe that this is complete and accurate.

(END VIDEOTAPE)

CARROLL: What is painfully clear is that Church leaders did not do enough to protect children. What is unclear, though, is how those same Church leaders should be reprimanded for their actions -- Anderson.

COOPER: All right. Jason Carroll, thanks very much.

On to the politics now and the big push this weekend ahead of the delegate extravaganza known as Super Tuesday. Today, John Edwards said he's making strides in Minnesota, Ohio, and Georgia, ahead of Tuesday's primaries. And John Kerry focused his energy on what he says are President Bush's foreign policy failures.

Kelly Wallace has the story.

(BEGIN VIDEOTAPE)

SEN. JOHN EDWARDS (D-NC), PRESIDENTIAL CANDIDATE: Thank you.

KELLY WALLACE, CNN NATIONAL CORRESPONDENT (voice-over): John Edwards arriving in St. Paul to some good news. Howard Dean's state organization recommending its Minnesota activists back him on Super Tuesday.

EDWARDS: Welcome and thank you to supporters of Governor Dean who are here today.

WALLACE: And to the political observers who believe his performance in Thursday night's debate did nothing to change the dynamics of the race, the senator from North Carolina says they are wrong. EDWARDS: I think these debates every time we've had one has helped me and my campaign, because people see then that it's basically a two-person race and it's a clear choice.

WALLACE: Edwards is focusing on Minnesota, Ohio, Georgia, and New York, states all hard-hit by job losses. He says no matter what happens Tuesday, he expects to stay in the race, although he concedes eventually it comes down to simple math.

EDWARDS: Our goal is to continue to win delegates, and win delegates in substantial amounts.

WALLACE: John Kerry's aids, thrilled with his performance at the debate, continue their strategy of trying to make the Massachusetts senator look presidential. He delivered a foreign policy speech in Los Angeles.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I don't fault George Bush for doing too much in the war on terror. I believe he's done too little.

WALLACE: With Kerry continuing to say that he, as opposed to Edwards, has the national security experience to defeat the president in November.

KERRY: So I think there is a significant difference in my preparedness, my readiness to be president of the United States.

WALLACE (on camera): Both candidates are now looking ahead to Sunday morning's debate in New York City. Edwards' aides says his strategy won't change. So the question is, will his performance in this final debate before Super Tuesday help him pull off an upset?

Kelly Wallace, CNN, St. Paul, Minnesota.

(END VIDEOTAPE)

COOPER: We are following a number of developing stories right now "Cross Country." Let's take a quick look.

In Washington: the speaker gives in. House Speaker Dennis Hastert has agreed to allow the president's 9/11 Commission an extra 60 days to fin the work. Hastert had been opposed to allowing the extra time. The nonpartisan group said they needed the time to finish their report.

Grundy, Virginia: the guy says he's sorry, this man, Peter Atikizua (ph). He killed three people in 2002 in a shooting rampage at a law school here. Today, he pleaded guilty to the crimes and was sentenced to life in prison without parole. The plea deal means he will not have to face the death penalty.

Atlanta, Georgia: Bobby Brown goes to jail. The 35-year-old R & B singer was sentenced to 60 days for violating his probation. He was arrested two months ago for allegedly striking his wife, singer Whitney Houston. Brown was on probation for an earlier drunk driving conviction. He does not look happy there.

Denver, Colorado: threats land a California man in jail. Cedric Augustan (ph) is charged with 26 separate counts, making death threats against the prosecutor and the alleged victim in the Kobe Bryant sexual assault case. Augustan (ph) was arrested by police and federal agents on Thursday. That's the prosecutor there.

In New York: no winner yet. The $10,000 reward offered by the Doonesbury comic strip has so far gone unclaimed. To win, you have to be able to prove that President Bush actually served in the Alabama National Guard during the early '70s.

So far, hundreds have come forward. And no one's been able to prove anything. A Republican National Committee spokeswoman says the contest is a "silly stunt."

And that's a quick look at stories in tonight's "UpLink" -- in "Cross Country."

Truckstop murders coming up. Is a brutal serial killer at work in six states? Find out why police are on alert.

Plus, nerve gas attacks on Tokyo's subway. Final justice for a doomsday cult leader.

And, looking for a few good men. A military recruitment ad you just have to see to believe. You with will not believe it.

It's all ahead. First, let's take a look "Inside the Box" at the top stories on tonight's network newscasts.

(COMMERCIAL BREAK)

COOPER: Well, the question is, is a serial killer on the loose in the Southwest? As many as 10 women have been found, their bodies strewn along half a dozen states, all with striking similarities.

CNN's Ed Lavandera reports now from Oklahoma City.

(BEGIN VIDEOTAPE)

TED UNDERWOOD, VICTIM'S UNCLE: We're looking at Casey's Spirit House.

ED LAVANDERA, CNN CORRESPONDENT (voice-over): Ted Underwood finds comfort knowing his niece, Casey Joe Pipestem (ph), is buried on the family's property, just as their seminal ancestors were laid to rest.

UNDERWOOD: Her death was premature. And not only premature, but it was unnatural. She was murdered by an individual that's possessed with evil. He's sinister.

LAVANDERA: Pipestem (ph) was last seen at an Oklahoma truck stop in January. Days later, her body was found in a Texas creek. Investigators want to know if there's a connection between that killing and the murders of at least nine other women in Oklahoma, Texas, and four other states. About 50 investigators gathered in Oklahoma City to compare the cases.

JESSICA BROWN, OKLAHOMA STATE BUREAU OF INVESTIGATION: Now, we cannot say at this point in time that we're talking about one person who is doing these. We don't know. All we know is that some of these are very similar in nature.

LAVANDERA: Investigators say most of the victims were last seen at truck stops along the same interstate. Most had a history of prostitution, and their bodies were found naked on the roadside.

UNIDENTIFIED MALE: This woman here is who we believe to be or victim.

LAVANDERA: The cases are tough to crack, but perhaps none like this one, a woman last seen in surveillance video in an Oklahoma truck stop. Authorities don't know who she is or how she ended up dead in the Texas Panhandle six hours after this picture was taken.

UNIDENTIFIED MALE: When we have to go home at the end of the day and we still do not know who this lady is, and it's, like I say, frustrating.

(END VIDEOTAPE)

LAVANDERA: There are no suspects at this time, but several investigators say they believe they're looking for a truck driver. We also have been told that the FBI is helping the investigators come up with a profile of who this person might be -- Anderson.

COOPER: All right. Ed, thanks very much, from Oklahoma.

Heading overseas now, the Saudi government has been saying it wants to increase tourism, but now they're on the defensive. Take a look at what was posted on a Saudi government tourism Web site, a list of those who won't be allowed to enter the oil-rich kingdom. It says, "Visas will not be issued to Israeli passport holders and those who don't abide by the Saudi traditions, as well as Jewish people."

They just came out and said it. Jewish people, they don't want them. We called the Saudi embassy, they said it was a mistake. In a statement, officials say, "The Saudi kingdom does not deny visas on the basis of religion, and everyone is encouraged to visit." Just moments ago, in fact, we learned the kingdom now says they are opening an investigation.

We're tracking a number of developing stories around the globe right now. Let's check the "UpLink."

Washington: human rights groups criticize the Bush administration after its announcement today that it will not join an international landmine ban. However, the White House is promising to phase out traditional landmines and use only those timed to self-destruct.

Tokyo, Japan: a death sentence for Shoko Asahara, the cult leader convicted in the 1995 sarin gas attack on the city's subways. Twelve people were killed and thousands of others got sick from the nerve gas.

Beijing: six-nation talks on North Korea's nuclear programs are winding down. China says they'll end tomorrow after three days, an arguable amount of progress. A new round of negotiation is said to be in the works.

Near Manila, Philippines: hundreds are rescued from a burning luxury passenger ferry. Many of them leaped in Manila Bay. In all, there were more than 800 passengers and crew on board. One person was killed, and about 100 are still missing.

Caracas, Venezuela: opposition protesters take to the streets. More than a dozen are hurt in clashes with police. The demonstrations were timed to get the attention of leaders of developing nations meeting in the capital. The protesters wants to vote to recall the Venezuelan president, Hugo Chavez.

And this now from Japan. The navy there is apparently looking for a few good recruits, so they put out a new navy recruiting ad. And, well, you just kind of have to see it to believe it.

(BEGIN VIDEO CLIP)

(MUSIC)

(END VIDEO CLIP)

COOPER: I'm sorry. I've got to see that again.

COOPER: Seamanship.

All right. Same-sex marriages now come out of the closet coast to coast. A New York mayor starts handing out marriage licenses. Is it too late to turn back the clock? We'll talk about that coming up.

Also tonight, a convicted serial killer to be released from prison for good behavior. An unbelievable story. How could it happen? We're going to take a closer look at the case that has victims understandably outraged.

And a little later, raw politics. NASCAR dads and the race for the White House. Gentlemen, start your wallets. Big money being spent to win your hearts.

All ahead.

(COMMERCIAL BREAK)

COOPER: So first it was San Francisco, now an eastern front is opening in the increasingly heated debate over same-sex marriage. About 20 gay and lesbian couples were married today in the tiny town of New Falls, New York. The 26-year-old mayor officiated there.

New Falls is a pretty small village, a college town about 75 miles north of New York City. The state attorney general already turned down a request to block the weddings.

And in California today, a move to stop the weddings being performed at San Francisco City Hall. The attorney general there is asking the state Supreme Court to invalidate the thousands of marriage licenses that have already been handed out to gay couples, and to order the county to stop issuing new ones. Attorney General Bill Lockyer says state law defines marriage as being between a man and a woman.

The whole issue of same-sex marriage may have some unintended consequences for gay couples. It could certainly change the dynamics of some relationships. Will the "M" word give one's partner or one's mother a new reason to nag?

CNN's Jeanne Moos gauged the mood.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): Up until now, straight people felt pressured to get married.

UNIDENTIFIED FEMALE, "GUYS AND DOLLS": All we need now is a license and a blood test.

UNIDENTIFIED MALE, "GUYS AND DOLLS": Blood test?

UNIDENTIFIED FEMALE: Don't worry, Nathan. You've got blood.

COOPER: That was "Guys and Dolls." But these days, guys and guys and dolls and dolls are getting hitched. So are gays starting to feel the heat?

(on camera): Do you think one partner is sort of agitating, "Well, let's get married now. I want to get married now that we can get married." Do you think that's happening?

UNIDENTIFIED FEMALE: I definitely think so. I talk to couples all around the country. Now that it's an option, people are rethinking their relationships.

UNIDENTIFIED MALE: Well, we're thinking about it. It's in my mind for sure. And maybe...

MOOS: Are you going to put a little pressure on him?

UNIDENTIFIED MALE: I might put a little pressure. Not that I have any bride fantasies.

MOOS (voice-over): Now that a marriage certificate is at least possible, even a single gay guy has marriage pressure envy.

UNIDENTIFIED MALE: I would love to have the pressure, because I want a home, I want a backyard, and I want puppies and I want babies.

UNIDENTIFIED MALE: Yes, it's interesting. I never wanted to be married, but now it's kind of like you have to be forced to think about it.

MOOS: And there's a whole segment of gay society that says, "I don't," rather than "I do."

UNIDENTIFIED MALE: But I don't see why gay people have to incorporate something from straight society.

MOOS: Whether it's yep to gay nups, or nope to gay nups, nups aren't the only thing gays are passionate about.

UNIDENTIFIED MALE: I thought you were going to ask me about "The Passion of the Christ," because I have a big opinion about that, too.

MOOS (on camera): I bet you do.

(voice-over): Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

COOPER: All right. Well, coming up, a serial killer possibly set to go free. A shocking story you won't want to miss. We'll be right back.

(COMMERCIAL BREAK)

COOPER: Coming up in the next half-hour on 360, a confessed serial killer to be released for best behavior? Find out how this could possibly happen.

First, let's check our top stories in tonight's "Reset."

Port-au-Prince, Haiti: anarchy. That is how CNN's Lucia Newman describes the situation on the ground. She says with police nowhere to be found, armed gangs have taken over the streets, leaving bodies, looting and fires in their wake. President Aristide still refuses to resign.

Washington: red ink and then some. The Congressional Budget Office estimates that President Bush's budget plans would produce a $2.75 trillion deficit over the next decade. The nonpartisan analysts say the deficits would shrink in the next two years but balloon in the long run.

Denver, Colorado: the governor wants some answers. The state's attorney general has been told to investigate the recruiting scandal of the University of Colorado. The attorney general will act as a special prosecutor during his probe. Several women claim they were raped at so-called sex parties used to entices new recruits.

In Chicago: fewer counts on the rap sheets. Prosecutors have dropped seven of the 21 charges against R. Kelly in what they call a routine pretrial move. He still faces 14 counts of child pornography stemming from a videotape, where he's allegedly seen having sex with an underage girl.

And that is a quick story -- quick look at stories in the "Reset."

A bizarre case in Texas now. A confessed serial killer is expected to be released from prison on parole unless victims' advocates and others can stop it.

CNN's Jeff Flock reports.

(BEGIN VIDEOTAPE)

JEFF FLOCK, CNN CHICAGO BUREAU CHIEF (voice-over): Coral Eugene Watts confessed to killing 13 women.

MELINDA AGUILAR, VICTIM: I could tell that he enjoyed what he was doing, and that was the scary part.

FLOCK: He's a suspect in dozens of others.

ANDY KAHAN, VICTIM'S ADVOCATE: I'm going to say at least 40, possibly more.

FLOCK: And he could be out of prison in two years.

AGUILAR: You've heard of Ted Bundy, you've heard of Charles Manson. Nobody's heard of this man.

FLOCK: In Houston, 1982, Watts admitted killing Joanna Semander's sister, Elena.

UNIDENTIFIED FEMALE: This is one of her letters that she got in high school.

FLOCK: But it was a plea bargain. With little evidence, they only convicted him of burglary.

UNIDENTIFIED FEMALE: And the maximum in 1982 that he could receive was 60 years.

FLOCK: With good time, he sentence is up early 2006.

KAHAN: You don't rehabilitate a serial killer.

FLOCK: Andy Kahan leads a nationwide effort to keep Watts in prison, gathering victims' families in Texas.

KAHAN: He is a diabolical killing machine.

FLOCK: The best hope for a new charge? The case of Gloria Steele.

DAN WATSON, KALAMAZOO PUBLIC SAFETY CHIEF: This is the apartment complex that Gloria Steele lived in and died in.

FLOCK: Kalamazoo, Michigan public safety chief Dan Watson shows us where he thinks Watts murdered the 19-year-old college student in 1974.

WATSON: She was stabbed over 30 times in a very vicious and brutal attack.

FLOCK: Melinda Aguilar's testimony put Watts behind bars on the original burglary charge.

AGUILAR: You know, I can't believe that they would even think, you know, letting him out there.

FLOCK: Through prison officials, Watts declined CNN's request for an interview.

KAHAN: There has never in this country's history ever been a serial killer legally released.

Coral Eugene Watts will be the first, unless we can prevent it.

FLOCK: They're trying.

I'm Jeff Flock, CNN, in Chicago.

(END VIDEOTAPE)

COOPER: And Jeff Flock joins us now. Jeff, I have got to ask you, is there any legal remedy to try to stop this man from being paroled?

FLOCK: Well, the one possibility, of course, is if they can come up with new charges. And that's of course what the families of the victims are trying to do. They're trying to put the word out there and potentially develop a case. That one in Kalamazoo, as we reported, is the strongest possible one. I just talked to the chief there tonight; he says they're still several weeks away from a decision on possible charges there.

COOPER: Unbelievable story. Jeff Flock from Chicago. Thanks, Jeff.

What exactly is being done to try to stop the parole, as Jeff mentioned? Joining me now from Houston, Texas, Andy Kahan, the victims' advocate whom you just saw in Jeff's report, and in San Francisco, a woman who says her sister was killed by Watts, but he has not confessed or been convicted yet of that crime. Thank you both for being with us, Andy and Stephanie.

Stephanie, I want to start off with you. When you heard that Watts might actually get paroled, what did you think?

STEPHANIE, VICTIM'S SISTER: I mean, it's total disbelief. You go through the horrifying ordeal of the death of a loved one, and finally they go to prison and you think it's over, and then 20 years later you hear he's getting out of prison. And it's not parole. It's my understanding it's mandatory release. I mean, he took my sister's life, and he's going to get back on the streets, and he's in his 50s. And he's said he's going to do it again.

COOPER: And this crime was 20 years ago, but this is something you've been living with I imagine every day since then. STEPHANIE: Well, yeah. I mean, exactly. You -- anyone who's lost someone knows, you know, you take everything you have to breathe in and breathe out in the beginning after a death, but you get through it eventually. Your life is never the same. I mean, your family is always changed, but you get through it and you go on. And you think a horrible monster like this, there's no way he can get out, and he's going to get out. I mean, it's unbelievable.

I think people don't really think this is really going to happen, because it's so unbelievable that -- this can't be, but it's going to happen.

COOPER: Andy, is this going to happen?

KAHAN: It's going to happen unless Michigan can file a charge and get him convicted. That's the bottom line. And unless Michigan can do that, Coral Eugene Watts will be the first serial killer in this country's history ever to be legally released.

And that's really important. This is not just a Texas problem, it's not just a Michigan problem. Because if he is released on mandatory release, I guarantee he's not going to stay in Texas, he's not going to go to Michigan. He's going to end up in a neighborhood like somebody -- where you're living, for example, and the bottom line is, he is a killing machine, and he has said when he gets out, he's going to do it again.

COOPER: How many people is he suspected of killing in Michigan? We're not even talking about Texas, where he's confessed to numerous killings.

KAHAN: It could be as many as 40. He's credited with as many as 80. And that's what makes this case so troubling. I mean, he never gets his credit as a serial killer, and quite frankly he's never even been convicted of murder. But when you think of serial killers, you think of Bundy, Dahmer, Gacy. The name of Coral Eugene Watts doesn't even register a blip on the radar scale, and he's probably killed more people in this country's history, including the recent Green River killer.

COOPER: Stephanie, do you have a sense of frustration at all? I mean, do you feel like there's anything you can really do to either stop this or even try to get justice for your sister?

STEPHANIE: Yeah, I mean, that's why I'm here. I don't want to be on TV, but there's got to be witnesses out there. I mean, this man went on a murder rampage for over 10 years. We have to find witnesses, because that's the only thing that is going to get this guy.

There's a lot to the background. They bungled the case. There is a technicality, that's why he's getting out. We have to find witnesses.

And beyond that, I want to know where the governor of Texas is. We've sent thousands of petitions to his office, not to even change the law, but to create a task force to look into this. There's got to be a creative way to find -- to keep this guy in prison. And what's going on? I mean, this is Texas. You know, I want the president. Wake up, somebody get involved. Because that's supposed to be the toughest state in the union, and Texas is going to release the only known serial killer back into society in his 50s. He said he'll do it again. I mean, every woman in the country virtually is at risk.

COOPER: Stephanie, before we go, I don't want to leave with images of this guy in our minds. Tell us a little bit about your sister. What kind of woman was she? And what do you miss about her?

STEPHANIE: I appreciate you asking. Brilliant, she was an art history major in college. She had traveled the world before she was 30. She read two books a week, and most importantly she had a great heart. She worked through high school in a home for mentally retarded children. She felt in love with all of them. She tried to get my parents to adopt one of them.

What I miss is not having a life with her. I was a lot younger than her when she died. She was 30; I was 18. I had so much to learn from her. She was a contributor to society, and what are we going to get instead? You know, Watts, out killing more women?

KAHAN: And that's an important point, Anderson. He was indiscriminate in choosing his victims. They ranged from the ages of 14 to 40. They were all races, all socioeconomic positions, and these were all vibrant, young ladies who had a lot to contribute to society. And the only reason that he killed them and the only reason he chose these victims was because he thought they had evil eyes, and he wanted to extinguish the evil out of them.

COOPER: It's unbelievable. We're obviously going to keep following the story. Andy, we appreciate you joining us. And Stephanie, especially, I know it's tough to talk about, but we appreciate you coming in and talking about your sister as well. Thank you very much.

KAHAN: You bet.

STEPHANIE: Thank you.

COOPER: Well, starting March 4, the Bush-Cheney campaign will spend some $4.4 million in political ads on national cable networks, like CNN, Fox News and MSNBC, but also Fox Sports, during NASCAR time slots. Why, you might ask? Well, it's all about raw politics. Take a look.

(BEGIN VIDEOTAPE)

COOPER: The next time you're watching NASCAR on Fox Sports, don't be surprised if during the commercial break you see something like this.

ANNOUNCER: The president of the United States on America's role in a changing world. GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I've got a foreign policy that is one that believes America has a responsibility in this world.

COOPER: Why run political ads during a race? Politicians have 75 million reasons. That's how many Americans are NASCAR fans. The ads may be new, but the interest is not.

BUSH: Gentlemen, start your engines.

COOPER: Two weeks ago, President Bush popped up at the Daytona 500, the most prestigious NASCAR race.

BUSH: It would have been fun to drive up on these banks, but I'm afraid the agents wouldn't let me, you know.

COOPER: And at the speedway, the Republican National Convention has set up camp to register voters. It's those so-called NASCAR dads politicians are after.

Who are they? According to pollsters, mostly white, working- class men living in rural areas. And research shows so-called NASCAR dads are socially conservative, concerned about the economy, and perhaps most important of all, politically uncommitted.

The NASCAR marketing department likes to claim that its fans are three times as likely to purchase sponsors' products. Politicians are hoping that goes for their products as well.

(END VIDEOTAPE)

COOPER: So now to the Democrats, revving up for what could be their last weekend for full throttle, scrambling for votes. The race could be decided in just days, of course, on super Tuesday. In our week-long series, "10 States, Five Days," we've been looking at the super Tuesday states, with 1,151 delegates up for grabs.

Tonight, we focus on Vermont and New York, and what they mean for Kerry and Edwards. Joining me now, CNN political analyst, Carlos Watson. Carlos, thanks for being with us.

CARLOS WATSON, CNN POLITICAL ANALYST: Good to see you.

COOPER: All right, let's talk about Vermont. We're talking 15 delegates at stake, very small. Independents, Republicans can vote. Edwards not on the ballot. You have this weird situation where Wesley Clark and Howard Dean are on the ballot, but Edwards isn't.

WATSON: So last fall when it was time to register, he didn't think he had a chance. Howard Dean was the leader in the race, it's his home state. Didn't pay the $2,000, didn't get 1,000 signatures. So he's skipping it, which ultimately would probably make sense anyhow, since John Kerry is from next door.

COOPER: All right, let's talk about what's going on in New York, a big prize here. Two hundred thirty-six delegates at stake. Only Democrats can vote. Clinton-Gore, the only Southern candidates to win. It is the second biggest prize on super Tuesday. What are the big issues here?

WATSON: Four issues -- economy and health care, which we're seeing in other places, but two kind of New York special issues. Police brutality. Remember Al Sharpton talking about that in the debate yesterday, and also of course in New York, national security, especially post 9/11.

COOPER: What do you think each candidate needs to do to win here?

WATSON: John Kerry has got three things he needs to do. He has got to have a strong New York City turnout. Remember, close to two- thirds of the people who will probably vote on Tuesday, Democrats, will be in New York City, so he's got to get a great turnout. Number two, he's got to really emphasize the jobs theme, particularly through town halls and other things upstate, in upstate New York. There's some struggles, Buffalo, Utica, et cetera. And last but not least, no major gaffes. There's a debate on Sunday in New York City. You know, he doesn't want to make a mistake there.

COOPER: All right, well, let's talk about Reverend Sharpton. Any chance for New York?

WATSON: Reverend Al actually may surprise you. There are six congressional districts where he could pick up delegates. And here's what's worthy of watching here -- if he walks away from here with 40 or 50, maybe even 60 delegates, when it comes to the convention, he is going to have a lot more say than otherwise. So he's not going to come in first, probably won't even come in second, but if he does well here, he probably gets a prime-time speech at the convention.

If he doesn't do well, maybe you stay up until 2:00 a.m., and you'll see him speak them.

COOPER: And a lot of people are saying, that's what he's been wanting all along. Let's talk predictions. It seems pretty obvious, but Vermont?

WATSON: Well, look, Vermont, you know who's going to win, but before we do New York, I should say that what Edwards has to do is he's got to become the candidate of jobs, particularly upstate, spend all his time there, and last but not least, he's got to hope for a little help from Al Sharpton. If Al Sharpton attacks Kerry in the debate on Sunday, careful, could be a surprise. But there won't be. John Kerry is going to win.

COOPER: All right. Carlos Watson, thanks.

WATSON: Good to see you.

COOPER: Big break for Martha Stewart, a judge dismisses the most serious charge against her, but Stewart's legal fight is not over. That ahead in "Justice Served."

(COMMERCIAL BREAK)

COOPER: In "Justice Served" tonight, a sigh of relief for Martha Stewart. The judge dropped the most serious charges, securities fraud, a count that carried a possible ten year prison sentence. Stewart's legal fight, not over.

Joining me now, Court TV anchor Lisa Bloom, and "Celebrity Justice" correspondent, Carolina Buia. Good to see both of you.

Carolina, you've been in court room every day, every day. Were you surprised by this?

CAROLINA BUIA, CELEBRITY JUSTICE: You know the thing that surprised me the most was that the judge hadn't dropped this charge earlier. She made some indications that she wanted to drop it. She called it a novel application of the charge and during court, she called it problematic during the trial.

And in fact, Lisa and I were writing notes to each other, this charge is going bye-bye. I'm just surprised it took so long, right before closing arguments, right before the jury gets the case.

COOPER: Lisa, what exactly does it mean? What are the charges that are left? Because there are 4 charges left.

LISA BLOOM, COURT TV: Well, this is the top charge against Martha Stewart. It carried a 10 year term. It is now gone. The remaining charges only carry a five-year term. Under the federal sentencing guidelines, if convicted she looking at probably slightly less than one year, under any of the remaining charges. So that's a big victory for her.

And the remaining charges: conspiracy, two charges of making false statements and obstruction of justice all arise from a different set of facts, what she did when she talked to SEC investigators. This case is really a honed down now for the jury. They have a lot less to deliberate about when they consider the case next week.

COOPER: Yes. Carlina, what kind of impact does this have on the jury? This kind of throwing it out at such last minute.

BUIA: Well, it could go either way. They may say, wow, there was a lot of testimony about securities fraud, where is that? Is this a point of weakness in the government's case? Or they may say, okay, there wasn't enough evidence for this. That means the other charges have more credibility.

And on the other hand, they say, great, one less charge to deliberate over.

COOPER: Now, Peter Bacanovic was never accused of this charge, so it doesn't really impact him?

BUIA: No impact against him. All of the charges against him are still in.

COOPER: All right, we're going to leave it there. Lisa Bloom thanks very much. Carolina Buia, thanks.

Chances are you know someone with an addiction, maybe to food, maybe to gambling, drugs or sex, possibilities are really endless. All next week on 360 we bring you a special series, "Addiction in America." Here's a quick preview.

(BEGIN VIDEOTAPE)

COOPER (voice-over): It destroys relationships and ruins lives.

UNIDENTIFIED FEMALE: I used sex as a drug. I mean, it was my drug of choice and I was using sex to numb out...

COOPER: It could cost you your job, your savings, you family.

UNIDENTIFIED MALE: It just went right through the veins, right to the head and I felt like I was in paradise.

COOPER: Addiction in America takes many forms and crosses all lines. Next week a 360 look at the devastating world of addiction. We'll take you to the streets of New York, home to an underground world, where addicts hooked on heroin or meth struggle to feed their desperate habit.

We talk to men and women who have lost everything trying to fulfill an never ending need for sex. And the latest addiction only a mouse click away, why more and more Americans are turning an interest in the Internet into a dangerous obsession.

(END VIDEOTAPE)

COOPER: "Addiction in America" airs all next week right here on 360.

So are you looking for ways to spend the weekend? A little change of subject. Is the new dirty dancing movie worthy of your cash? Find out about that in "The Weekender" just ahead.

Plus "The Current," pre-Oscar buzz and the vows to make it family-friendly. We'll see how long that lasts.

(COMMERCIAL BREAK)

COOPER: All right. Time to quickly check in pop news in tonight's "Current." Let's see what's going on. ABC is vowing to make the show tasteful and family-friendly. It's also imposing a delay, making sure nothing turns up that's obscene, vulgar or indecent. Joan and Melissa Rivers, however, will be allowed to attend.

Mike Tyson pled guilty yesterday for his part in a Brooklyn brawl. Instead of going to jail, the former heavyweight was ordered to coach up and coming boxers in a New York gym. Tyson's advice to boxers includes: jab with your left, keep your chin low, bite his ear off, eat his kids, file for bankruptcy. And the Japanese Navy wants a little appreciation. They put together a commercial. And I know we showed it earlier in the program and we showed it twice, but frankly we think it's the best commercial we've ever seen and we're going to show it again. Take a look.

(BEGIN VIDEO CLIP)

(MUSIC)

(END VIDEO CLIP)

COPPER: Seamanship. All right. Let's take on "The Weekender." Ashley Judd takes a stab at a new genre, "Dirty Dancing" goes to Cuba. And the red carpet is being rolled out -- I'm so excited about Seaman ship. Let's take a look at Friday's edition of the "Weekender."

(BEGIN VIDEOTAPE)

COOPER (voice-over): In movies, Ashley Judd stars in yet another psychological thriller. This one's "Twisted." No, really, that's the name of the movie, "Twisted." Judd plays Jessica Shepard, a hard- drinking homicide detective out to capture a serial killer on the loose, blah, blah, blah, who just might be, you guessed it, Jessica Shepard. Very twisted.

Also out, "Club Dread." It's the latest entry into the newest of film genres, the slasher comedy.

UNIDENTIFIED MALE: Are you telling me there's some totally deranged dude running around out there?

COOPER: Can extreme violence and extreme raunch peacefully coexist on the big screen? Does anyone really care?

Finally, for the 11 of you out there who couldn't wait for a "Dirty Dancing" remake, rest easy, baby. "Dirty Dancing, Havana Nights" transplants all the glamour and intrigue of the Catskills to Cuba circa 1958.

UNIDENTIFIED MALE: You're a pretty good dancer.

FEMALE: I was terrible.

UNIDENTIFIED MALE: Yes, you were terrible.

COOPER: New on DVD, "School of Rock" starring Jack Black as the substitute teacher we never had, but really wish we did.

And on TV, this Sunday, the 76th annual Academy awards starts at 8:30 p.m. At 7:00 p.m., E! unleashes the twin rivers of scorn, Joan and Melissa.

(END VIDEOTAPE)

COOPER: All right. Which nominees will stay seated and politely applaud and which ones will be giving an acceptance speech? Film critic Elvis Mitchell of the "New York Times" joins us with his predictions.

ELVIS MITCHELL, "NEW YORK TIMES": I was so impressed with your Japanese in the other segment. It's so beautifully spoken. Can you translate that for me? And you know what that was still a better movie than "Dirty Dancing 2."

(CROSSTALK)

COOPER: All right. We'll talk about Seaman ship maybe in a little bit if we have time. But first let's have the Academy awards. You know, these Academy Award/Oscar polls, which I got to say I hate -- I hate all forms of office polls.

(CROSSTALK)

COOPER: It puts pressure on the Oscars. I don't want to watch the Oscars with pressure. I don't want to be checking off a list, but apparently a lot of people like it, people in my office like it.

(CROSSTALK)

MITCHELL: Everybody's a winner. But the honor is just in being nominated isn't it?

COOPER: To help out people with these polls, who do you think will win best picture or what do you think is going to win best picture?

MITCHELL: You know what? It's a Japanese -- you're still thinking like that. Bring you back to English here. It probably will be the "Lord of the Rings."

COOPER: I will accept that.

(CROSSTALK)

COOPER: "Lord of the Rings," I totally agree. Best actor?

MITCHELL: Best actor. Now, see, that's a real horse race. (UNINTELLIGIBLE). I think the other nominees, I think Johnny Depp has a real shot with this and it's a great -- that you can give a performance (UNINTELLIGIBLE) movie directed by a guy who (UNINTELLIGIBLE). That's like swimming laps with a refrigerator on your back. It's a really sort of nimble, agile, intelligent, really funny performance.

COOPER: But you have Sean Penn, Bill Murray...

MITCHELL: My favorite performance is Bill Murray. It's just a really great -- it's like a career-capping performance. You figure if he doesn't win for this, what is he going to win for? Not "Caddyshack 3."

COOPER: Ouch. Let's talk about best actress. I guess Charlize Theron is the favorite.

(CROSSTALK)

COOPER: But everyone likes it when an actress takes off the makeup, plays a gritty role, everyone seems to give an Oscar to it.

MITCHELL: Wow, how gender condescending.

COOPER: Didn't Farrah Fawcett get all sorts of hoopla when she did the burning (ph) bed thing years ago?

MITCHELL: Yes, it's was like back in the '30s.

(CROSSTALK)

COOPER: Screenplays, I never know what to pick in this category.

MITCHELL: Now, see, that's the interesting category. Because what's happened is basically the original screenplays all come from independent movies, because the studios want to do movies of books, you know, say the "Lord of the Rings" or "Cold Mountain" or "Mystic River." And so you get all these great categories. You have this amazing "Lost in Translation," you've got all these great pictures that nobody really knows about that were all independent films that got bought by studios eventually. That's the coolest category to me.

COOPER: If there was a category for best commercial do you think the Seamanship commercial would win?

MITCHELL: You said that with a straight face.

COOPER: Could you just show a little Seaman ship? Do we have time to show just a little?

MITCHELL: That will be a nominee for best short film for next year, isn't it? Look at the production technique. They spent tons of yen on that, didn't they?

COOPER: This is a real commercial for Japanese TV. Elvis Mitchell. Thanks very much. I've got to go, we'll be right back.

We say good-bye to one of our own just ahead.

(COMMERCIAL BREAK)

COOPER: Tonight, taking Flock to the "Nth Degree." Earlier we aired a story by Chicago bureau chief Jeff Flock. It turns out that was his last story for CNN. The news, I admit, caught me by surprise. See, Flock is one of the originals. In 1980, the first day CNN went on the air, he was there. And he's been there, here, and everywhere ever since.

Hurricanes and floods, crashes and conflicts. In bad times, and in good. Jeff Flock has covered it all. In the CNN newsroom, his name is also an adjective. It's a flock piece, they say, and everyone knows what that means -- smart, sensitive, original. Those adjectives describe both the reporting and the man. Television is a medium without a memory and forgets fast and remembers little. We however will not forget Jeff Flock. Reporters, like anchors, come and go, but the good thing about TV is you can also come back. Somewhere, sometime, somehow, I hope he comes back on the air. After all, there are still a lot of important stories to tell and no one tells them like Jeff Flock does. Jeff, we've been lucky to have you as long as we have. From all of us at 360, thank you.

Coming up next, "PAULA ZAHN NOW."

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