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Tyco Mistrial; Police Deem Seiler Abduction Hoax; U.S. Vows to Crack Down on Fallujah

Aired April 2, 2004 - 19:00   ET


ANDERSON COOPER, CNN ANCHOR (voice-over): Tyco mistrial, minutes away from a verdict the jury is sent home. Will the government retry the case? We'll give you the inside story.

Audrey Seiler, liar? Police say the University of Wisconsin student was never kidnapped. She may now face charges.

Terrorists warn of new attacks on American citizens, when and where they say they'll strike again.

The U.S. vows to crack down in Fallujah, can Marines cool off this hotbed of hatred?

The FCC gets tough on daytime soaps but have you seen what's going on, on that Spanish telenovelas?


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

COOPER: And a good evening to you tonight.

A stunning turn of events in the case of a college student who said she was abducted. Police now say Audrey Seiler's harrowing tale of a kidnapping at knifepoint is a lie and they have an incriminating video that shows it. That story in just a moment.

But first our top story, the collapse of the Tyco trial. After six months in court, 12 days of jury deliberations and reports of bitter infighting in that jury room, the trial of ex-Tyco CEO Dennis Kozlowski and another former executive ended in a mistrial.

CNN's Allan Chernoff has been covering it all.


ALLAN CHERNOFF, CNN FINANCIAL CORRESPONDENT (voice-over): Dennis Kozlowski and Mark Swartz appear to have dodged a conviction. Jurors tell CNN they were close to finding both defendants guilty of grand larceny which carried a maximum prison term of 25 years.

GREGORY SUTTON, JUROR: We were divided on most of the counts. We had several that we thought they were guilty on, several we thought they were not guilty on.

CHERNOFF: But Judge Michael Obus announced to a stunned courtroom he had no choice but to grant a mistrial because of efforts to pressure the jury. A person who observed closed door proceedings in the judge's chambers tells CNN a coercive letter had been sent to Juror No. 4, the apparent holdout. Judge Obus questioned the juror and based on her answers declared a mistrial.

The "New York Post" and "Wall Street Journal" had revealed Juror 4's identity after she appeared to signal the defense with an OK sign. Kozlowski and Swartz were charged with stealing $600 million from Tyco through unapproved bonuses, forgiven loans and stock sales.

Manhattan District Attorney Robert Morgenthau said the mistrial was unfortunate and said he intends at the earliest opportunity to seek a retrial. Defense attorneys say they'll be ready.

CHARLES STILLMAN, ATTORNEY FOR MARK SWARTZ: My expectation at this point is that there will be a retrial, yes sir.

STEPHEN KAUFMAN, KOZLOWSKI'S ATTORNEY: My client went into this case with courage and determination and he still has those qualities today.


CHERNOFF: Judge Obus has scheduled a hearing for May 7th to discuss a new trial -- Anderson.

COOPER: Unbelievable ending to this. All right, Allan Chernoff thanks very much.

We're going to have extensive coverage of this mistrial. Coming up an exclusive interview with one of the Tyco jurors. You're going to get a firsthand account of what went on inside that poisonous jury room, as some of them described it, also, legal and financial analysis of the ruling, that all ahead.

Right now a story still developing at this moment, a mystery that is just getting deeper. What happened to Audrey Seiler? That 20- year-old University of Wisconsin student said she was kidnapped at knifepoint, no less, held for four days. Today, police poked big holes in her story. Now they say what she told them is bogus.

Jonathan Freed has the latest from Madison.


JONATHAN FREED, CNN CORRESPONDENT (voice-over): Four days of searching, a family's tears, a frightened community. Now, Audrey Seiler's story has imploded.

ASST. CHIEF NOBEL WRAY, MADISON POLICE: We do not believe that there is a suspect at large period.

FREED: Police held not one but two news conferences Friday. At the first, they announced they confronted Seiler with inconsistencies in her story about being abducted at knifepoint last Saturday, the result...

WRAY: Audrey admitting that in fact she had not been abducted at her apartment at all. Audrey stated that she just wanted to "be alone."

FREED: But Seiler still insisted this man had taken her hostage just not from her home and police again urged people to take safety precautions. Even as that word was spreading through the community, police were back just two hours later punching more holes in Seiler's story.

They now said they had videotape of the university student buying things, including rope, duct tape and a knife at a local store. The officer is holding examples. The items were found at the marshy crime scene and Seiler claimed they had been used against her. There was more.

WRAY: She had preplanning on computer searches, Madison wooded areas, parks, weather conditions for five day forecasts.

FREED: And at Seiler's school, the University of Wisconsin...

UNIDENTIFIED FEMALE: It's really upsetting to know that our resources were wasted like that.


COOPER: Understandably upsetting. Jonathan, where do police believe or are they saying where they think she was for all these four days?

FREED: Well, Anderson, they're not sure where she was the entire time but they did say today that they have at least two witnesses who say that they saw Audrey Seiler just walking around for part of the time.

COOPER: Unbelievable. Jonathan Freed from Madison thanks very much. We're going to have more on this story coming up.

Alleged victims making up stories to the police, certainly nothing new. We're going to take a look at some of the more famous cases and we're also going to talk to a psychiatrist about why people might do this.

Moving on today, a new warning on terrorism. U.S. officials said that attacks on mass transit, like the bombing in Spain, could be carried out here this summer. They told local law enforcement to step up their vigilance.

CNN's Justice Correspondent Kelli Arena has the latest.


KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): From Los Angeles to New York to Washington, transportation officials are reacting to the latest warning about a possible terror attack.

CAPT. TIMOTHY GRONAU, DC METRO TRANSIT POLICE: We've always been concerned and prepared. We're just continuing our proactive efforts to try and prevent anything of this magnitude occurring in our system.

ARENA: The warning about trains and busses went out to law enforcement officials nationwide. It says terrorists may try to hide explosives in luggage or carry-on bags like backpacks.

ASA HUTCHINSON, HOMELAND SECURITY UNDERSECRETARY: This is an area of concern. We're working with our transit authorities to enhance that security, put the appropriate protective measures in place.

ARENA: The advisory clearly states the intelligence is uncorroborated. It does not name specific U.S. cities and only offers summer as a time frame.

UNIDENTIFIED MALE: I'm just hoping that the people who do their job in security, you know, they'll do their job and hopefully we've learned a lesson from Spain and they'll carry it over here.

ARENA: Industry officials say they were paying close attention and admit the Madrid bombings prompted change.

GRONAU: We've increased our patrols. We've reassigned some of our administrative people back into the rail system during heightened hours. We've altered our sweep teams.

ARENA: Earlier today, Spanish police found another bomb under high speed rail tracks between Madrid and Seville and, in London this week authorities seized 1,000 pounds of ammonium nitrate as part of a terror investigation. That's the very same substance the FBI advisory says could be used in attacks against the United States.


ARENA: Officials say there is no connection between those events and the new warning but when pieced together they offer good reason to worry -- Anderson.

COOPER: Definitely that. All right, Kelli Arena thanks.

Bad news on terror, good news on jobs, the government reporting today U.S. employers added 308,000 jobs last month. Now that is the biggest monthly gain since April of 2000, six times more than in February.

As Dana Bash reports now, the numbers are certainly welcome news to the White House.


DANA BASH, CNN WHITE HOUSE CORRESPONDENT (voice-over): A thumbs- up from a president with a little more bounce in his step after getting the robust jobs report he'd been waiting months for, 308,000 new jobs created in March, the fastest pace in four years. January and February's job numbers were revised to 205,000, up from 118,000, and for the first time in 44 months, no jobs lost in manufacturing.

In West Virginia, a traditionally Democratic state, the president won in the last election and thousands of lost jobs since, he hailed the news and took credit.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The tax relief we passed is working. It's making a difference for this economy.

BASH: As job recovery lagged, Mr. Bush has campaigned on other positive economic signs like the rise in home ownership and the stock market but knowing nothing rivals the political importance of jobs, the president's team was out in full force.

JOHN SNOW, TREASURY SECRETARY: I think it will be sustainable and I'm encouraged by that number.

JOSH BOLTEN, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET: It confirms that the economy is in solid shape, is growing, and it's a growing economy.

KAREN HUGHES, PRESIDENTIAL ADVISER: I think what that says is we're finally back.

BASH: Big job growth is tough political news for Senator John Kerry, campaigning on the nearly two million jobs lost on the president's watch. At a photo op with his own economic team he argued one positive report doesn't change three down years.

SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: The fact is that the deficits, which go out as far as the eye can see, the lack of any one single manufacturing job in those jobs and the huge numbers of jobs that are leaving for overseas tells the real story of the economy of our country.


BASH: It is still unclear whether this jobs report is the beginning of a trend but Democrats do privately worry a few more months like this could make the president a lot harder to beat -- Anderson.

COOPER: All right, Dana Bash at the White House thanks.

We're following a number of developing stories right now "Cross Country." Let's take a look.

In Orlando, Florida, a bus wreck, 18 people hospitalized after this tour bus flipped on its side after the driver, he had swerved to avoid hitting another truck. Police say the incident was set in motion by a car making an illegal U-turn. The bus was carrying Alabama High School seniors returning from a trip to the Bahamas. What a way to end the trip.

Also, Orlando, Walt Disney World, a man dressed as the character Tigger, Tigger the tiger, this guy is charged with molesting a 13- year-old girl and committing battery against her mother. They say it happened while he was posing with them for pictures. The man, Michael Shartrand (ph) has been suspended without pay. That's another Tigger there.

Norwalk, California now, morning turns rowdy, about 10,000 people take to the streets waiting for hours to pay their respects to 19- year-old Mexican singer Adan Sanchez. The crowd became a bit rowdy rocking cars when they were turned away. No arrests were made.

Hurricane force researchers from Colorado State University today predict 14 named storms this year, one more than previously forecast. Eight will be hurricanes, three of them intense hurricanes, meaning sustained winds of more than 111 miles per hour. The researchers say there's a 71 percent chance an intense hurricane will make landfall. We'll see if they're right. That's tonight's "Cross Country."

Moving on, days after those savage slayings, Fallujah still a hotbed of hatred in Iraq. How are U.S. Marines going to try to cool things down? We'll take a closer look at that.

Plus, closing a terrorist loophole, what millions of travelers can soon expect at the airport.

And TV sex scandal and drama, the FCC may be cracking down. Where can you turn for a fix? Can you say Telenovela, Spanish language soaps that are anything but squeaky clean.

Before we get to that, let's take a look "Inside the Box," the top stories on tonight's network newscasts.


COOPER: Well, the realities of the post-9/11 world are about to be experienced by millions of travelers entering the U.S. Starting next fall, visa or no visa visitors from 27 more countries will be photographed and fingerprinted on their way through customs.

Homeland Security Correspondent Jeanne Meserve explains why.


JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice-over): A digital fingerprint scan, a photograph, a check against terrorist and criminal databases, a process that takes 23 seconds. Travelers who require visas to enter the U.S. have been going through this process at U.S. airports and seaports since January 5th.

But by the end of September even travelers from countries like the United Kingdom and Japan, who do not need visas, must also go through it. Only Canadians who do not need a visa and Mexicans with border crossing cards will be exempt. The intent is to close a loophole exploited by terrorists.

ASA HUTCHINSON, HOMELAND SECURITY UNDERSECRETARY: Some of the terrorists of the past have not just come in with a visa, they've actually traveled through visa waiver country passports and that's been attractive to them and we've recognized that, that we need to address. That's one of the reasons that we're doing this.

MESERVE: For scientific and technical reasons, the so-called visa waiver countries will not meet a congressionally mandated October deadline for instituting passports with facial scans embedded in a computer chip. U.S. Visit will act as a security stopgap. With 2.5 million screened so far, officials say it is effective.

HUTCHINSON: Over 12,000 potential visas overstays have been identified. That's been referred for further investigation review. In addition, there's been over 200 criminal watch list hits.

MESERVE: But not one known terrorist has been stopped by U.S. Visit.

(on camera): When the program began in January, Brazil retaliated by fingerprinting and photographing American visitors. There is certainly the potential for more of that. Hutchinson says we recognize it is a two-way street.

Jeanne Meserve, CNN, Washington.


COOPER: Right now we're tracking a number of developing stories around the globe. Let's take a look at the "Up Link."

Jerusalem, clash at holy site, Israeli police storm an Al Aqsa mosque after Friday prayers firing and tear gas and plastic bullets trying to disperse rock-throwing youths. Over a dozen Palestinians arrested. More are injured.

In London now, American GI sentenced to four and a half years, an ex-Marine who had sex with a British girl he met over the Internet. Do you remember the story? The man pleaded guilty to abduction and indecency charges in February.

Hamburg, Germany, 9/11 trial in doubt, a judge says the retrial of a Moroccan man, the only 9/11 suspect convicted so far I should mention, could fall through if the U.S. continues to deny access to a key witness. An appeals judge has overturned the man's conviction last month saying he was denied a fair trial.

Moving to Guantanamo Bay, Cuba now, 15 freed. The U.S. releases 15 more prisoners from the GITMO detention center. They're being sent back to their homes in Afghanistan as well as Turkey, also Iraq, to name a few places. The Pentagon says 134 detainees have now been let go. That's a quick look at the "Up Link" for you.

Now to Iraq where a Muslim cleric is condemning this week's burning and mutilation of four American contractors but, listen to this, he's not condemning the killing itself. Tonight, U.S. Marines are on the outskirts of the city. The U.S. is vowing that that attack will not go unanswered.

CNN's Jim Clancy is there.


JIM CLANCY, CNN CORRESPONDENT (voice-over): U.S. Marines were nowhere in sight and even the strong desert winds that swept through central Iraq Friday didn't silence bravado on the streets.

"Let him bring his troops" said one, while another vowed the city would become a graveyard for the Americans. But other comments heard in Fallujah gave indications many people want to avoid conflict and did not condone the gruesome scenes that played out on city streets this week.

"The profit prohibits mutilation of bodies and bad acts like those done by some of the people" said Sheikh Abdul Katar al-Walid (ph). Still, no condemnation of the killings.

Those acts involve the mutilation of the charred corpses of four American contractors killed Wednesday in a hail of gunfire and hand grenades. The U.S. vowed to pursue and punish those responsible by sending in the Marines and, if necessary, taking the city by force. These images captured by news agencies are already a part of an ongoing investigation.

BRIG. GEN. MARK KIMMITT, DEPUTY DIR., COALITION OPERATIONS: And I would tell you that those people that we have photographed and we have video that were involved in this operation, that were involved in this brutality, that we have a significant interest in finding them and talking to them.

CLANCY: Iraqi police in Fallujah said the best advice for pacifying the city would be for the Marines to stay away. That doesn't appear likely.


COOPER: And, Jim joins us now. Jim, fascinating to listen to that video, the soldiers saying that they have an interest in finding those people and talking to them, that they have the videotape. They're looking at it closely. I'm not sure they're just going to do some talking. Any sense that they've made any moves on trying to find those people?

CLANCY: Well, certainly there's a couple of things here, Anderson. First of all, they've got scores, scores of pictures from the video, from still photographs of the people that were involved there.

Second, once people are detained it is likely that some of them in order to get out of detention are going to be giving up the names, perhaps the addresses of some of the people in that videotape or in those pictures.

And third, it appears that the most consistent story at the scene was that all the gunmen were masked. That may lead investigators to conclude they were not masked and the men that they are after, the men who killed those four contract workers are probably shown somewhere in those photographs.

One point, one concern, Anderson, that is the media is afraid they will be blamed, the photographers will be blamed for the mistakes that have been made by the mob in Fallujah.

COOPER: All right, Jim Clancy reporting live from Baghdad, thanks very much Jim.

Coming up, Michael Jackson grand jury, his lawyers are saying the gloved one is being treated unfairly. They are vowing to fight any indictment, the latest twists and turns.

Also tonight, a college student who says she was kidnapped but police say her story is bogus. Why did she buy duct tape before she disappeared?

Also, a 360 exclusive, you'll hear from a Tyco juror who sat through months of deliberation -- months on the jury, weeks of deliberation, $600 million fraud case. Hear why he is outraged over the outcome. Be right back.


COOPER: Well, Michael Jackson's defense team is apparently fed up with the secretive nature of his child molestation case. Today, they said if Jackson is indicted they may fight it because according to them prosecutors are withholding important evidence.

CNN's Frank Buckley has the latest.


FRANK BUCKLEY, CNN NATIONAL CORRESPONDENT (voice-over): Michael Jackson attorney Ben Brafman carried binders that he said contained more than 100 items of so-called exculpatory material, things that would cast doubt on Jackson's guilt.

In court, Brafman told Judge Rodney Melville the material was headed to the grand jury hearing testimony in the case. "There is a wealth of clearly exculpatory material," Brafman said.

This week, witnesses who were shielded from view as they arrived testified before the grand jury as the prosecution attempted to make its case for indictments against Jackson. Among those testifying Larry Feldman, who has counseled the accuser and his family, the boy himself and his psychologist.

Brafman argued that prosecutors have dragged their feet in providing other items contained in search warrants that would help Jackson's cause before the grand jury.

BENJAMIN BRAFMAN, MICHAEL JACKSON ATTORNEY: And the objective was and is and will continue to be that we try and keep a level playing field.

BUCKLEY: Brafman also revealed Jackson attorneys are seeking records related to this 1999 lawsuit filed by the accuser's mother against J.C. Penney after loss prevention agents accused the boy of shoplifting.

Charges were dismissed and the family received more than $137,000 in a settlement. Brafman and Jackson attorney Mark Geragos said among other things they were after medical and psychiatric reports on the accuser and his mother.

Jackson supporters, meanwhile, were on hand again but in fewer numbers. The pop star himself, who was in Washington this week to receive a humanitarian award, wasn't here at all.


BUCKLEY: And District Attorney Tom Sneddon wasn't here either. He was instead before the grand jury seeking those indictments against Michael Jackson and it's likely that he will get those indictments. Just based on history, the old saying is that you can get a grand jury to indict a ham sandwich because it so favors, this process so favors the prosecution.

But the prosecution is required to provide any exculpatory evidence to the grand jurors before they make their decision. That's the type of evidence that would tend to show that Michael Jackson in this case is innocent.

And that's where Ben Brafman said if he is not able to get all of that information before the grand jurors, specifically referring to that search warrant material, he will move to have those indictments, if they come, thrown out -- Anderson.

COOPER: All right, Frank Buckley from California thanks very much Frank.


COOPER (voice-over): Tyco mistrial, we'll give you the inside story from a Tyco juror.

The FCC gets tough on daytime soaps, have you seen what's going on, on that Spanish telenovelas?

And, an occult comic book hero, an unlikely fairy tale romance and The Rock, what to watch this weekend at the Multiplex.



COOPER: In the next half hour here on 360, $600 million mistrial, an exclusive interview with a Tyco juror. He'll take you inside the jury room where he says they were on the verge of handing down their verdict.

First, let's check our top stories in tonight's "Reset." Madison, Wisconsin, it didn't happen the way she said. Authorities say this woman, Audrey Seiler, faked her own abduction. Investigators have a videotape showing she bought a knife, rope and duct tape and cold medicine, the same items she said her abductor used to restrain her. The University of Wisconsin honor student was also seen walking freely on the street during the four days of her reported captivity.

Washington, setting a new record, John Kerry's presidential campaign raises more than $50 million in the first quarter of 2004. Ca-ching is right. Beating the record $16 million Howard Dean raised, plus more than half of Kerry's money was raised online breaking another Dean record.

But Republicans also set a campaign fund-raising record. President Bush's campaign hasn't released an exact total for donations from the past three months. But campaign officials say the president beat his own record -- are you ready for the ca-ching? Beat his own record of $50 million set last year by raising a total of more than $182 million so far.

Moving onto Washington now. Depressing numbers, a new report says preschool children are the fastest growing group of patients on antidepressant medications. Preschool kids. The Food and Drug Administration warned last month that antidepressants in kids make the kids more likely to commit suicide. That's a quick look at stories in tonight's "Reset."

Now, to "Justice Served." In the biggest legal story of the day, perhaps the last couple of months, the corruption trial of ex-Tyco CEO Dennis Kozlowski and co-defendant Mark Swartz ending in a mistrial. Earlier today, I spoke with one of the jurors. His name is Peter McEntegart. I began by asking him how close they came to reaching their verdict.


PETER MCENTEGART, TYCO JUROR: Well, I mean I thought we were very close. Yesterday, on Thursday, we almost got there.

COOPER: You said you were very close, 24 charges for each defendant, 48 counts in all. How close -- I mean on all of them you could have made a ruling?

MCENTEGART: We were close to that point. I mean we didn't get all the way there. And obviously since we never handed in a verdict, we didn't technically get any -- all the way any counts. So anything that we might have even thought at the time or voted was just essentially a straw vote.

COOPER: Were you looking for -- I mean were you heading toward guilty? Not guilty on many of them? Or did you have...

MCENTEGART: Well, what I mean is both directions, so some were going one way and some were going the other. COOPER: I mean how frustrated are you right now? You've been deliberating on this for a long time. This has been a very long trial.

MCENTEGART: It's almost -- I'm almost numb at this point.

COOPER: Six months, you deliberating 12 days.

MCENTEGART: We were there. I mean the trial was, you know, 5 1/2 months, and generally on a day-to-day basis extremely boring. And then all of a sudden we get into deliberations and it was -- it was a very intense emotional situation. And it was just such a complicated case, that even if everyone, you know, had walked into the room feeling pretty much the same way, which was completely not the case, it would have taken a long time to go through things.

COOPER: So now last week, there was a note saying that the atmosphere in the jury room was poisonous.

MCENTEGART: Poisonous.

COOPER: How bad was it?

MCENTEGART: Well, I think poisonous was a pretty accurate description at the time.

COOPER: Everyone's been talking about this juror No. 4.

MCENTEGART: Right. And you know, we're supposed to avoid the media attention as much as is humanly possible. But on Saturday afternoon, it's hard to walk down a city street and not see the cover of one of the newspapers.

COOPER: So you believe your juror No. 4 was deliberating in good faith, as she believes she was?

MCENTEGART: I -- yes, I believe. For that that first week, it didn't seem that the actions actually exhibited someone with an open mind. But remarkably, you know, we come back Monday and we -- and there was a change of heart.

COOPER: She had had a change of heart on Monday?

MCENTEGART: On just on a very -- you know, on one charge, you know, that we had spent pretty much all Thursday on. And so that sort of got things back on track, and we sort of tried to continue going through the...

COOPER: So there was some momentum there?

MCENTEGART: Yes. And from my perspective, it seemed like we just literally ran out of time. We got -- we almost got there on Thursday.

COOPER: There had been a story about juror No. 4 signaling in some way, making OK signs. Did you see any of that? MCENTEGART: Did I hear about the story or did I see it? I didn't see any sign, no.

COOPER: Did you see it and then did you hear about story.

MCENTEGART: I mean I saw the drawing on the cover of the "Post." That was sort of hard to, avoid. But I think to our credit, no one mentioned that in the jury room.

COOPER: How much of an impact were the videos that we have all seen by now, these lavish parties and all these stories about the $6,000 shower curtain and things like that? Did that play -- how did that impact you? How did it impact the jury?

MCENTEGART: Well, it didn't really impact me at all. It impacted the jury in a way that was very negative to the prosecution. In general, most -- we spent very little time talking about Jimmy Buffett or shower curtains or even Sardinia in the jury room. It really didn't have that much to do with the some of the specific charges.

COOPER: Finally, should there be a retrial?

MCENTEGART: I certainly hope there will be.

COOPER: All right. Pete, thanks very much.



COOPER: Paula Zahn is going to talk to some more jurors on "PAULA ZAHN NOW" coming up in the 8:00 hour. A lot of questions remain about what happened and what happens now. Andy Serwer of "Fortune" magazine, editor at large with us, and "360" legal analyst Kimberly Guilfoyle Newsom join me. Appreciate both of you being with me.

Kimberly, let's start off with you. What happened? This is kind of unheard of?

KIMBERLY GUILFOYLE NEWSOM, CNN LEGAL ANALYST: It really is unprecedented. This is the type of thing you read about in a John Grisham novel that you have coercive forces from the outside. And apparently what we've been hearing, because the record is sealed, is that there was some kind of threatening letter sent to the juror No. 4. And it just really of begs the question, because this is exactly what we were afraid of to begin with. That she was identified by media organizations and singled out, which prompted someone from the outside to send a threatening note. And now six months of work of these hard jurors putting in tough hours is gone. And they have to start all over again.

COOPER: We should point out, we're not using this juror's name.

NEWSOM: Correct. COOPER: Others news organizations did, "Wall Street Journal" and "New York Post."

The judge is saying though, he's worried about what kind of impact this might have on future jury selection.

NEWSOM: Well, it taints. Everyone has heard about this case. It's already essentially been tried in the press. We've gone through the motions. Everyone saw the picture on the cover of the "Post." So people are going to know a lot about this case and they also may be reluctant to get involved with the case that takes this long.

COOPER: Andy, how has Tyco held up in all of this?

ANDY SERWER, EDITOR, "FORTUNE" MAGAZINE: Well, Tyco unlike Enron, Arthur Anderson or WorldCom has kind of moved beyond this phase. I mean they're not tainted in the sense that these other companies have been.

COOPER: Because their name isn't linked with Dennis Koslowski?

SERWER: That's right. You know, they're huge -- this is a huge company. It's a conglomerate. It's got about $36 billion in sales. Quarter of a million of employees. One problem, Anderson, they have is potentially a huge litigation settlement with shareholders who've sued the company because of the shenanigans that occurred when Kozlowski was there. They're looking at $10 billion. So even though this company is in pretty good shape, they're still probably going to have to pay out a huge multibillion-dollar award.

COOPER: And that's all looming out there in the future?

SERWER: That's right. And it's sort of contingent upon this trial because it makes it easier for this case to go forward if Kozlowski and Swartz are found guilty.

COOPER: Kimberly, you were a prosecutor. The D.A. says they are going to retry the case. What would you do differently?

NEWSOM: Well, I think in this case, that the D.A. made this case too complicated. It was too long. They need to simplify things. I think there was a little bit of juror fatigue involved. And don't put in so many of these salacious things, like the videos and the shower curtain, et cetera. People get point; you don't need to do that. Take a lesson from the Martha Stewart prosecutors. Keep it clean and simple.

COOPER: Andy, how shocked are you that other news organizations were using this woman's name. This is a juror serving on a court.

SERWER: I think the real bad guys today, Anderson, are not Dennis Kozlowski and Mark Swartz. I'm sorry to say it's the "New York Post" and "The Wall Street Journal" for printing her name. I mean I think it's unconscionable. I'm always going to refer to that woman as juror No. 4 because I just think you don't to that. You violate the law. They caused this mistrial. There may have been a hung jury; those news organizations, I say, caused the mistrial.

COOPER: And it was a very complex trial. I mean the juror I talked to said they were very close to getting some charge -- some sort of a unanimous verdict on all of the counts. There were 24 counts against each of these guys. It's going to be a difficult trial to retry.

NEWSOM: Well, it is. And both sides have advantages now because they know what the other side is going to do. But it would be a miscarriage of justice if the prosecutors didn't proceed forward. But you know what? The defense better read the writing on the wall. It's over. If they can, they should beg for a plea disposition, but I don't think the prosecutors are feeling too generous right now.

COOPER: Yes, certainly not.

Kimberly Guilfoyle Newsom, thanks so much. And Andy Serwer, good to talk to you.

SERWER: You're welcome.

COOPER: Well, getting to the bottom of the student mystery, that is coming up. More on the strange case of this woman, the University of Wisconsin co-ed. and a look at hoaxes from the past that captured the nation's Italians attention.

Also, tonight escaping the wrath of the FCC, Spanish soap operas. Have you seen these you? You won't believe the stuff they do. Yikes! Let's get off that one quick before the FCC sees.

And a little later, a look at what's new in the movies, including the latest comic book action hero to leap to the silver screen. Which one is it, the left or the right? "Hellboy," hmm. We'll find out. Be right back.


COOPER: Well, we've been updating you on the Wisconsin student who says she was abducted. Police now think her claims are bogus. What really happened? Well, there is still a lot we don't know. One thing is for sure, this not the first time authorities have chased a story -- including the media have chased a story that turned out to be false.

Gary Tuchman has that.


GARY TUCHMAN, CNN CORRESPONDENT (voice-over): It was a case that transfixed a nation.

SUSAN SMITH, CONVICTED MURDERER: I just screamed. I said what are you doing? He said shut up and drive. And he had a gun, he was poking it in my side, you know telling me to drive.

TUCHMAN: Suzanne and David Smith's two small children kidnapped in Union, south Carolina. Or so Susan Smith said. The searchers worked around the clock, the mother remained convincing.

SMITH: I can't even describe what I'm going through. I mean it's my heart. It just aches so bad. I can't sleep, I can't eat, I can't do anything but think about them.

TUCHMAN: But Susan Smith was a liar.

UNIDENTIFIED MALE: Susan Smith has been arrested and will be charged with two counts of murder.

TUCHMAN: Her car was found in the bottom of a lake with boys still strapped in their seats. She was found guilty of their murders and is in prison for life.

It was an especially horrible hoax, but it was one of many hoaxes police deal with. Just this week in Texas, a 20-year-old woman was arrested after allegedly faking a kidnapping by locking herself in a trunk. Earlier this year in Connecticut, a man claimed his wife, a sergeant in the Army Reserve was killed in Iraq. She was there but is alive and well, and her husband was arrested. There is also the case of a teenager who pretended she was kidnapped in Oregon.

UNIDENTIFIED FEMALE: I would like to take this time to say how sorry I am.

TUCHMAN: And instead drove with friends to Seattle.

The hoaxes are authorities deal with are wide ranging, and unfortunately, not all that unusual.

Gary Tuchman, CNN, Atlanta.


COOPER: Now, the question is of course, why do people lie of being victims of crime?

In Chicago, I'm joined by psychiatrist Dr. Helen Morrison.

Doctor, thanks for being with us.


COOPER: You know, it is not just lying about being a victim of crime, if that is in fact that what she did. There was a level of preparation apparently to this hoax or bogus report?

MORRISON: Absolutely. She spent apparently weeks planning this, and she planned to the point where she had the weather forecasts for five days out. She had all of the supplies that she claimed the abductor had used. And she basically looked at all the parks and marshes and parks, and there are few of them around Madison.

COOPER: So what does that tell you? I mean does it tell -- I mean clearly, if someone is capable of preparing like, what does that mean? MORRISON: Well, it tells you one, she's not out of contact with reality. She knew extremely well what she was doing. Two, there had to be a reason. She said to the police that she wanted to be alone. But Madison is a city that can you drop out in; you can be alone any time you want.

So what were her motives? The possibilities are to get away from stresses, expectations, things she couldn't possibly meet from people around her. A bad relationship, perhaps?

COOPER: Do people think they can really pull this stuff off, though? Because I mean in this day and age, you know, a story like this, so many people are concerned. So many people are out searching. There's going to be a lot of attention.

MORRISON: Well, there is a lot of attention, that wasn't what she was doing. But the people -- I think the people thought initially, you know, a person disappears; they're gone for two days. By the third day you expect that they're going to be dead. Can you imagine what agony family and friends went through? And then she pops up, essentially perfectly fine. So all of the worry and positive attention she had is now going to become such a negative part of her life. Her future is basically over.

COOPER: So for some people who do this, it's they want that attention? I mean they want to be the focus of people's concern?

MORRISON: Well, some do, but they don't go to this degree. I mean a little kid will lie to a parent and say they went one place when they were going to another. But she carried it to such an extent that the backlash against her is going to be something that she will probably have extreme difficulty in coping with.

COOPER: Yes. You've got to feel for her family tonight.

MORRISON: Oh, yes.

COOPER: And her friends. Dr. Helen Morris, appreciate you joining us. It was very interesting. Thank you.

MORRISON: Thank you.

COOPER: Coming up, Spanish soap operas, steamy, sexy off the FCC radar. Coming up, a taste of telenovelas, "The Young and the Restless," they got nothing on these guys.

Also tonight, The Rock's "Walking Tall" and swinging a bat in his new movie. Also tell you what else is playing at the multiplexes this weekend.

And our favorite sailors from Japan. They've been away at sea for a while, but now they're back. Set your VCR. The seamen are coming.

(COMMERCIAL BREAK) COOPER (voice-over): All right, so "Sex and the City" is off the air, the FCC is on the warpath about too much sex talk on the radio. And the daytime soaps? Well, squeaky-clean these days. What's a viewer to do?


UNIDENTIFIED MALE: Hey, how are you?



COOPER: If you're worried American soaps are becoming sanitized, flip on over to some of the Spanish language channels and feast your eyes. Daytime soaps may be getting squeaky-clean but telenovelas are hotter than ever. Watched by millions of die-hard fans who aren't tuning in for the show's educational value.

You can say that again.

The actors are as sexy as the stories outrageous.

RICHARD PEREZ FERIA, EDITOR, "PEOPLE EN ESPANOL": It's the sexiness, the beautiful people; they're always shirtless randomly.

COOPER: Telenovelas are usually about poor and beautiful women in love with, pursued by, killed by or out to kill rich and beautiful men.

ANA MARIA MONTERO, CNN ESPANOL CORRESPONDENT: It's drama! I mean Latinos; we're all about drama!

COOPER: You want drama. Just listen to these plot lines. Three men, three women, and their story of love, honor and treason. A beautiful young girl falsely accused of assassinating the man who violated her. The love of two men for the same you get the idea.

FERIA: It's not taboo, it's understood to be complete fantasy.

COOPER: Novellas make up nine of the top 10 Spanish language TV programs. But so far, the FCC doesn't seem to be focusing their attention on them.

MONTERO: If the FCC comes in and Starts fooling with their telenovelas, the stories that represent their cultures and their countries, and it's their connection to home, I don't think they're going to be very excited about it.

COOPER: So, if you're looking for sizzle and want to escape all the reality, tune into a telenovela, just don't tell the FCC we sent there you.


All right. Time to check on some pop news in tonight's "Current." Let's take a look at what's going on.

Bobby Brown is reportedly shopping around a reality show, where TV cameras would keep track of every move Brown and his wife, Whitney Houston makes. Producers have a working title for the show, "Cops."

There may be a problem with Viagra; a new study says the sex drug may speed up the release of an enzyme needed for fertilization. But researchers caution they'll need more time for testing, lots and lots of testing.

Wrestling star, Hulk Hogan wants to manage his daughter Brook's aspiring pop star career. Hogan will be her full time handler teaching her the tricks of the trade. I'm sure she'll be the best pile driving, catapulting and body-dropping singer in the ring.

And it's Friday, of course. On Friday, we like to let down our proverbial hair a bit, play our favorite commercial. It's a real commercial the Japanese navy produced it. And well, we think it's the best darn commercial ever made. You guys want us to play the commercial?




COOPER: All right. Those are the guys celebrating the commercials. You asked for, it here it is, a little bit -- a little commercial about a ship and seamanship.


COOPER: Seaman. Well, that's what we do on Fridays. Sorry.

And so if there you're tired of TV, there's a lot of other stuff can you do this weekend. If may be you need some other diversions a check of all the new flicks out this weekend's right now on the "Weekender." Let's take a look.


RON PERLEMAN, ACTOR (as "Hellboy"): Didn't I kill you already?

COOPER (voice-over): New in movies, "Hellboy." Ron Perelman stars as the comic book hero, a rammed horn creature battling paranormal forces. Don't worry Hellboy has got a heart of gold, odd because well, Hellboy is, you know, is from hell.

THE ROCK, ACTOR (as Buford Pusser): You're all fired.

COOPER: If you like action heroes with a sensitive side there's "Walking Tall" a remake of the 1973 southern justice flicks. At 6 foot 5, at least, The rock does walk tall. He's a special forces vet who returns to his hometown to find it run by stock character villains. And it seems only a bat will get them out. THE ROCK: This is my town.

JULIA STYLES, ACTRESS: You're a prince and that's why they were taking photos of us.

COOPER: Then there's "The Prince and Me," a teen dream about a co-ed, played by Julia Styles, who fell in love with a bored Danish prince. But will she choose a life of royalty over four years of med school? "Sophie's Choice," it isn't.

UNIDENTIFIED MALE: It's hero time.

COOPER: For the kids there's Disney's latest animated, musical feature, "Home on the Range." Roseanne Barr supplies the voice of a cow who tries to save a ranch from an evil cattle wrestler. Watch out for the branding iron.

COOPER: And new on DVD, "The House of Sand and Fog."

UNIDENTIFIED FEMALE: This is my house, I lived here and you stole this house from me.

COOPER: Ben Kingsley leads a stellar cast that chronicles the devastating result of the purchase of an auction home.


COOPER: Well, one more big "Weekender" item to tell you about, nirvana for college basketball fans. The NCAA Final Four, Mike Hall is here to give us the game plan. Now, if you've never heard of Mike Hall, he's ESPN's newest anchor after beating out over 10,000 contestants on the network's reality show, "Dream Job."

I asked Mike if it was true he didn't have plans to try out for the job in the first place.


MIKE HALL, ESPN ANCHOR: Yes, That's right. When I heard about it, you know, six, seven months ago I thought nay, it's just going to be a cattle call. There's no point in me even going. What am I going to do to stand out in front of thousands of people? But I had two friends of mine; two girls on one day independently both send me an e- mail saying with a press release on it saying, "If you don't do this, I will hurt you."

COOPER: Ninety-five thousand dollars for your first job out of college. That's great!

HALL: Great would be a good word, yes.

COOPER: Are your friends just like busting your chops over this?

HALL: Yes, yes, I had one friend say remember how you owe me $95,000? It's been pretty good. Well, my favorite friend comment though was -- I had one guy tell me, "dude, basic cable." COOPER: You know what? I've actually used that line myself a couple times. When people say, oh, wow, you're doing great. I say, basic cable, it's all right.

All right. Now, Mike, I don't know a thing about sports. I'm a complete idiot, but I'm told there is something big happening this weekend, the Final Four basketball something or other. Tell me who's going to win?

HALL: Oh, I thought you meant a cricket match.

COOPER: No. No. No.

HALL: There's supposedly a big cricket match somewhere.

COOPER: Oh, yes? Is that right? All right. Well, who's going to win?

HALL: I think.

COOPER: There's the first game Oklahoma versus Georgia Tech, who's going to win it?

HALL: I'm like, you know, I'm not an analyst or an expert, or anything. I think Oklahoma State is going to win.

COOPER: Don't let that stop you, Mike!

HALL: They have nine upper classmen on their 12-man roster. And that can't be understated come, you know, April basketball. They've got a big man in Ivan McFarland. They've got a lot of guard play; they're really good at defense. Georgia Tech is a great team. They're incredibly deep in guard play you.

COOPER: But you think Oklahoma State in the.

HALL: I think OK State, yes.

COOPER: OK State. All right. Then the next one Duke versus Connecticut, that's the nightcap?

HALL: It's so easy to pick either one of those because of their history and their talent. But I think it's going to be UConn. I think even if their star Emeka Okafor is injured. He's probably -- they're probably still going to be good enough to go. And I think he won't be injured anyway. So, they've got too much talent.

COOPER: Yes. You know, I pretend I knew what you were talking about. But I really have no idea of what you're talking about. Monday night, before this thing wraps up, who's going to win overall?

HALL: I like Oklahoma State. Again, it's really easy to pick UConn. They're too talented. So that's not fun at all. So I'm going to go with Oklahoma State with Eddie Sutton. He's their head coach, and he hasn't won one yet in a last few years. A lot of good coaches, who haven't won, have finally won in this year. So I think it's his year.

COOPER: Yes man, you don't need to tell me that, Mike. Actually you do because I really don't know. Mike Hall, congratulations on an amazing accomplishment already. Good luck to you in your career.

HALL: Thanks.

COOPER: Quick correction for you, earlier we said President Bush has raised $182 million in his re-election campaign. But our graphic said B, indicating a billion, which was clearly a mistake. It was $182 million. Apologize for that.

Coming up, TV censorship, is it going to far? Ahead on the "Nth Degree," we'll take a look at that. "The View" agrees to a five second delay. "The View?" We don't want to let that happen here.

Be right back.


COOPER: Tonight, taking delays to the "Nth Degree." We were horrified to read today that the view and "Good Morning America," two of our favorite shows will now be on a five second tape delay. This of course, the latest wave of the Janet Jackson nipple ripple. Now, when Star Jones says kiss my (AUDIO GAP) no one will hear it. Don't worry, she can still say, "You know I'm a lawyer."

We here at "360" will never permit (AUDIO GAP) just wouldn't stand for it. If you care about free speech (AUDIO GAP) don't worry; tape delays are nothing more than a (AUDIO GAP) good idea.

Wait a minute, are you guys delaying me? (AUDIO GAP)

Stop! I'm not saying anything wrong! (AUDIO GAP) Stop! I'm going to call my lawyer, Star Jones.

That's all the time we have. Thanks for watching. I'm Anderson (AUDIO GAP)

Stop it! I said, really, stop it.

Coming up (AUDIO GAP) enough already. "PAULA ZAHN NOW."


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