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CNN Live At Daybreak

Martha Stewart Sentencing Today; Small Victories for Injured Soldier

Aired July 16, 2004 - 06:31   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.


FREDRICKA WHITFIELD, CNN ANCHOR: Good morning from the CNN global headquarters in Atlanta. I'm Fredricka Whitfield in for Carol Costello this morning.
Now in the news, gracious living guru Martha Stewart will be sentenced three and a half hours from now for lying to investigators about a stock sale. And legal analyst Martin Pollner will be here two minutes from now to discuss whether the justice system treats celebrities any differently.

A tragic story at a school in southern India at this hour. A fast-moving fire has killed at least 75 children and injured about 30 others at a girls' school.

Both presidential candidates are on the campaign trail today. President Bush speaks in Tampa, Florida, four hours from now and has a rally in Bethany, West Virginia, 10 hours from now. Senator Kerry speaks in Washington nine hours from now and has a reception in Arlington, Virginia, about 13 hours from now.

And firefighters are claiming progress against a 7,200-acre wildfire that has destroyed 20 homes on the edge of Nevada's capital, Carson City. Five people have been injured, none of them seriously.

Keeping you informed, CNN, the most trusted name in news.

(WEATHER BREAK)

WHITFIELD: Martha Stewart finds out today what her penalty is for lying to investigators about a stock sale. But Stewart's company has been paying a penalty since she was indicted last year.

More on that from CNN's Allan Chernoff.

(BEGIN VIDEOTAPE)

ALLAN CHERNOFF, CNN FINANCIAL NEWS CORRESPONDENT (voice over): Martha Stewart's business empire has turned into a shrinking money- losing operation since her indictment and conviction. The business rose on Martha Stewart's image of perfection, now at fault.

T.K. MCKAY, MORNINGSTAR: As long as her reputation is damaged in any way, it's going to have a direct impact on the long-term prospects of this business.

CHERNOFF: Most troubled: the magazine that is the heart of Martha Stewart Living Omnimedia. Advertisers have been fleeing. Ad pages in "Martha Stewart Living" plummeted 42 percent during the first half of the year, compared to the same period last year. And ad revenue has collapsed 52 percent, the worst performance of any major publication. The company has cut circulation promised to advertisers by 20 percent, down from 1.8 million.

BRENDA WHITE, MEDIA DIRECTOR, STARCOM USA: The view from a buyer's perspective is, is that there is some cause for concern with the fact that a lot of advertisers have pulled out.

CHERNOFF: The company has put Martha Stewart's syndicated television program on hiatus for the coming season and cut its staff.

Martha Stewart Living merchandise sales have held up, but the company will be getting smaller royalty payments from Kmart under a new contract.

Martha Stewart Living Omnimedia declined to speak on camera. A spokesperson said: "People are focused on doing what we love to do in producing the products we know our customers love. It's business as usual."

But increasingly, it's business without Martha Stewart. Her replacement as chief executive, Sharon Patrick, is engineering a subtle re-branding. Beginning in September, the flagship magazine will show a redesigned cover to emphasize the title, "Living;" de- emphasizing Martha Stewart's name. "Everyday Food" magazine dropped its subtitle, "From the Kitchens of Martha Stewart Living."

(on camera): While the company is suffering the impact of Martha Stewart's conviction, it is in no danger of collapse. To the contrary. There is plenty of cash on the books and no debt. But investors fear there may be no earnings for some time to come. The stock is trading near its lowest level since Martha Stewart was indicted.

Allan Chernoff, CNN Financial News, New York.

(END VIDEOTAPE)

WHITFIELD: Coincidence? Kmart is having a sale on Martha Stewart products. Kmart is offering a 25 percent discount on Stewart's bed and bath products. Stewart, who built a catering company into a media empire, earned about, reportedly, $1.5 million last year. In prison, however, she would earn between 12 and 40 cents an hour.

And by the way, Stewart got $228,000 when she dumped her ImClone stock. It's now worth about 315,000 grand.

Well, as we await this morning's sentencing of Martha Stewart, let's look at the bigger issue of celebrity justice. Is it an advantage or a disadvantage to enter the courtroom rich and famous?

Former federal prosecutor Martin Pollner joins us now from new with some insights. Good to see you this morning.

MARTIN POLLNER, FORMER FEDERAL PROSECUTOR: Good morning.

WHITFIELD: Well, no doubt Martha Stewart is being used as an example or one of many examples in the crackdown on corporate crime. Is that likely to work against her simply for the fact of her celebrity?

POLLNER: I think the fact that she's a celebrity underscores the interest by the public, the media, the prosecutor and others. And I've found that in most cases a celebrity coming into a case changes the entire spectrum. For example, Winona Ryder was involved with a shoplifting matter, and she had a two-week trial. That would never have happened if it was just Mary Jones.

So, you do have a skewing of interest and desire on all aspects of it.

WHITFIELD: So, in some respects, you see that celebrities were the big fish or are subjected to harsher treatment, harsher standards.

POLLNER: I believe so, without talking about Martha Stewart right now. But I do believe that a celebrity, in my experience having represented several, changes the entire equation. Prosecutors see it as a mechanism by which they have their big case, because the media are calling. You have judges, for example, in the O.J. Simpson case, who I think became very star-struck and lost his objectivity. So, I do think it works in both directions.

WHITFIELD: All right. Well, specifically about the Martha Stewart case then, is there likely to be some leniency granted because there are no prior convictions, there was no violence involved in this crime?

POLLNER: In the federal system, they have these federal guidelines, which are a volume of various objective criteria. And her being a celebrity has no bearing on it whatsoever. They deal with issues of her contrition, of the harm to the public, of lying to government agencies, and things of that nature. So, I don't see that at all happening here in the federal system.

WHITFIELD: So, in general, this judge would intentionally want to follow the guidelines so as not in any way to be accused of showing any kind of favoritism.

POLLNER: Exactly. Now, her lawyer will ask for what they call a downward departure for various good deeds. She has done charitable work and so forth. And that's where the argument is, whether she should get a downward departure or what within this range of about 10 to 16 months will this judge...

WHITFIELD: Do you want to make any guesses? Do you think it's going to be a probation or jail time?

POLLNER: I think she will receive jail time between 10 and 16 months.

WHITFIELD: All right. Following the guidelines then. Martin Pollner, former prosecutor, thanks very much for joining us.

POLLNER: Thank you very much.

WHITFIELD: Well, we've already mentioned Martha Stewart and her former broker being sentenced today just a few hours apart from one another. So, what's happened to some of the other key players in the case?

ImClone founder and Martha Stewart's pal, Sam Waksal, is now serving a seven-year prison term. Doug Faneuil, the stockbroker's assistant who ratted out Martha Stewart, admitted lying to investigators. Well, Faneuil is expected to be sentenced next week. And Larry Stewart, a U.S. Secret Service ink expert -- no relation to Martha Stewart -- pleaded not guilty to committing perjury at Martha Stewart's trial. He goes on trial September 20.

Again, Martha Stewart's sentencing hearing begins in New York at 10:00 a.m. Eastern Time, and then a few hours after that Peter Bacanovic's sentencing is scheduled.

Well, U.S. Marine Corporal Wassef Ali Hassoun is waking up in America this morning. Hassoun arrived Thursday at the Marine Corps base at Quantico, Virginia, after a flight from Germany. He told investigators he was abducted from his base in Iraq last June. The corporal resurfaced in Lebanon just over a week ago. Military officials are attempting to learn what happened during his capture and his detainment, and how he got to Lebanon, 500 miles away from Iraq.

Well, U.S. troops in Iraq are constantly on the lookout for suicide bombers and roadside ambushes. When a soldier or a Marine is injured, the recovery process can be very difficult.

Reporter Warren Elly of CNN affiliate WTBT in Tampa, Florida, has the story of one Marine experiencing some small victories.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: There you go.

WARREN ELLY, CNN AFFILIATE WTBT REPORTER (voice over): Young hands that fought a war are now fighting a new battle.

UNIDENTIFIED FEMALE: One more, just go ahead. Eat it. Put it in your mouth. There you go. Excellent.

ELLY: Anthony Alegre is learning how to feed himself all over again. You see, the young Marine corporal, who enlisted at 17, was nearly killed by a suicide bomber in Iraq last May. He came home in a coma, shrapnel literally cutting through his brain.

JOE ALEGRE, ANTHONY'S FATHER: It's just something you can't explain. You've got to have a kid to understand the feeling. ELLY: For two months in a naval hospital near Washington, Anthony didn't speak or move. The prognosis was bleak. Then his parents heard about a new blast injury rehab center opening at James Haley Hospital in Tampa.

UNIDENTIFIED FEMALE: Come on. Move forward. This is the first time that he does this.

ELLY: In just two weeks, Anthony's Tampa team of doctors and therapists has him moving again. He spoke his first words last week.

UNIDENTIFIED FEMALE: Anthony, which do you like better? Apple sauce or the pudding?

ANTHONY ALEGRE, INJURED SOLDIER: Apple sauce.

ESTER ALEGRE, ANTHONY'S MOTHER: You can't describe the feeling from your son laying on a bed lifeless to opening his eyes and saying, "Mom." It's just unreal.

ELLY (on camera): Ever since Anthony got to Tampa, just about every day has been a day of small victories, victories his parents believe will bring him back home someday.

UNIDENTIFIED FEMALE: There you go. Pull yourself up. There you go.

ELLY (voice over): There are hours of rehab each day, remarkable progress for such a massive brain injury. Anthony's doctors say it has a lot to do with his parents, who moved to Tampa from Georgia to support him.

DR. SPENCE SCOTT, BLAST INJURY REHAB PROGRAM: It's pretty amazing. He had a very significant, a very severe head injury. He's made nothing short of a miraculous recovery thus far.

ELLY: Anthony's parents wanted you to see this story, because they believe the wounded are being forgotten.

J. ALEGRE: They're laying their life on the line, and they're laid up with injuries for the rest of their life.

ELLY: And they are still showing incredible courage.

UNIDENTIFIED FEMALE: You did excellent. I am so proud of you. Are you proud of yourself, too? Yes. Give me give. All right!

(END VIDEOTAPE)

WHITFIELD: Now, that was Warren Elly of CNN affiliate WTBT in Tampa, Florida. That blast rehab program was brought to Tampa's James Haley Veterans Hospital at the insistence of Senator Bob Graham of Florida.

WHITFIELD: Well, most of those Saddam Hussein statues that stood across Iraq have been pulled down. A pair of 50-foot-tall statues in Tikrit were melted down and recast into this: a memorial at Ford Hood, Texas, home of the 4th Division, the division that captured Saddam Hussein. The GI is kneeling, mourning 81 comrades killed in the Iraq war.

And in New York's Time Square, a dispute over an antiwar message has been settled. A liberal advocacy group calling itself Project Billboard reached agreement with the billboard owners, Clear Channel Communications, on Thursday. Clear Channel rejected the billboard, featuring the image of a bomb with the words, "democracy is best taught by example, not by war." The agreement allows the text to stay, but the bomb goes. In its place: a dove of peace. The message will be there during the Republican Convention.

And what's summer without a blockbuster? Coming up, we've got reviews of robots, Redford and a real-life Cinderella.

(COMMERCIAL BREAK)

WHITFIELD: It's 12 minutes away from the top of the hour. And from "AMERICAN MORNING," let's check in with what's on top with Anderson and Heidi.

Good morning to you all.

ANDERSON COOPER, CNN ANCHOR: Hey, good morning, Fredricka. How is it going?

WHITFIELD: Great.

COOPER: Here are some of the headlines we're going to be talking about this morning on "AMERICAN MORNING." Martha Stewart's sentencing, how harsh is the judge going to be? We're going to talk live to senior legal analyst Jeffrey Toobin. We're also going to talk to Stewart's former media adviser and lawyer.

HEIDI COLLINS, CNN ANCHOR: Yes. We'll find out how much time that she will get.

Also, the Edwards' interview, John Edwards that is. He'll have his first interview with CNN since becoming Kerry's running mate. He talks about his decision to vote for the Iraq war and Vice President Cheney, and his family as well.

COOPER: We'll also tell the story of a soldier charged with cowardice. Big news on his status. A live report from the Pentagon for that.

That and a lot more ahead on "AMERICAN MORNING" -- Fredricka.

WHITFIELD: All right, thanks a lot.

Your news, money, weather and sports. It's now about 11 minutes or so before the hour. And here's what's all new this morning.

The death toll keeps rising in the tragic fire at a girls' school in India. At least 77 children are dead. The blaze started in the kitchen and raced through the school, trapping many of the victims.

The U.S. Senate has approved a $12 billion buyout bill for tobacco farmers. Among the provisions in the legislation: more restrictions on cigarette companies, including a ban on advertising that appeals to children.

In money, eBay gets hip. The online business is testing the digital music download market for six months by allowing some record labels to sell music directly to consumers.

And in culture, a Lewisburg, Pennsylvania, theater owner is offering Republicans a free showing tomorrow of the anti-Bush movie, "Fahrenheit 9/11." The owner says people must prove they are Republicans in order to get in.

In sports, Marion Jones is going to the Olympics after winning the long jump in spectacular fashion at the U.S. Olympic trials. She jumped -- and you'll see it -- 23 feet, four inches, the second longest jump in the world this year. And there it is.

CHAD MYERS, CNN METEOROLOGIST: That's pretty amazing.

WHITFIELD: Yes. And she knew it right away, Chad.

MYERS: Yes, you bet.

(WEATHER BREAK)

WHITFIELD: And those are the headlines.

Well, not everything is as it seems. What if robots weren't really robots? We'll get the critic's impression of Will Smith's new blockbuster coming up. This is DAYBREAK for Friday morning.

(COMMERCIAL BREAK)

WHITFIELD: Well, let's look ahead at not what's coming up in the next hour, but 31 years from now. It's the new Will Smith movie, "I, Robot," set in the year 2035. And Gene Seymour of "In Touch Weekly" magazine has a preview of that film and a couple of others that we're going to talk about for this weekend.

Good morning to you. He's joining us from New York.

GENE SEYMOUR, "NEWSDAY" FILM CRITIC: Good morning.

WHITFIELD: All right. So, do you like "I, Robot?"

SEYMOUR: To my surprise, I do. I didn't expect much out of it. If you look at the trailers for that film, it looks like a bunch of toys having a slam dance. But this is a detective thriller with the emphasis, for a change, on detection. It keeps faking you out in terms of the solution of this murder mystery.

And in the process, there are a lot of set pieces where the robots do, in fact, do a lot of kung fu fighting and all of that kind of stuff. But it has a brain. I wouldn't put this in the category of "Blade Runner" or "Artificial Intelligence," which were better movies that explored the same themes as this one does. But it's a solidly- crafted, very moody detective thriller.

Will Smith, he just takes out his persona and wears it like a brand-new coat and works it just like...

WHITFIELD: And there he is, along with Bridget Moynahan, who is getting a lot of attention, too.

SEYMOUR: Right.

WHITFIELD: And does it just seem to be the case that whatever Will Smith touches it just turns to gold?

SEYMOUR: Well, particularly in this fantasy sub-genre, which is kind of surprising of how it all seems to be working out for him every time he takes on a project like this. But the thing is he knows what he's doing within this context. And while he still seems a little too young to play the kind of world-weary, hard-broiled guy that he plays in this movie, it's still a pretty good stretch for him. He's showing some range.

WHITFIELD: All right. Well, let's talk about something a lot more light-hearted, "A Cinderella Story" with Hilary Duff.

SEYMOUR: Right. Yes, yes.

WHITFIELD: Do you like it?

SEYMOUR: This isn't really a movie so much as it is a referendum on Hilary Duff's box-office potential. I mean, as you know, "Lizzie McGuire" kind of put her over the top as far as a box-office potential. Unfortunately, she's not playing Lizzie McGuire in this, and she doesn't have the TV property to kind of hold her up.

It's kind of a drearier, longer...

WHITFIELD: So, it sounds like you'd go see this movie because you like Hilary Duff.

SEYMOUR: Yes. And...

WHITFIELD: That's what I'm getting from you.

SEYMOUR: And what that means is you're going to have to take -- what that means is a lot of pre-teenagers...

WHITFIELD: All right.

SEYMOUR: Whenever there is a teenager in a movie you always take pre-teens, because they're going to like it.

WHITFIELD: Well, let me get to a movie that may appeal to a broader audience with Robert Redford.

SEYMOUR: Right.

WHITFIELD: "The Clearing."

SEYMOUR: Yes. This has already, you know, been shown in major cities. It's going national this weekend. Robert Redford plays an executive who is kidnapped by a disgruntled employee. And his wife is played by Helen Mirren. The kidnapper, by the way, is Willem Dafoe.

It's a very strong cast and it's very well-written. But it's so well-written and well-crafted that they bleached out any real tension. But if there is a reason to see the movie it's Helen Mirren, who pretty much runs away with the movie by not doing a whole lot. She's very, very polished and very, very subtle in this performance.

WHITFIELD: All right.

SEYMOUR: And I think fans of -- if you're a fan of her I think you're going to like this movie a lot.

WHITFIELD: All right, Gene Seymour, a variety to watch this weekend. Thanks a lot. Good to see you. Have a great weekend.

SEYMOUR: Thank you.

WHITFIELD: And we'll be right back, but first the headlines.

(COMMERCIAL BREAK)

MYERS: All right, we're almost out of time, so we have to go quickly here. It's time to reveal the winner of the mug from yesterday.

What pitch man is joining the campaign to fight against childhood obesity? That was Jerrod of Subway fame. Remember, he ate all of those six grams of fat Subway sandwiches and lost all of that weight?

And what trophy is being sold? That's the original Heisman trophy, and there are expecting it to go for well over $1 million.

Sam Gross from Charleston, West Virginia, you are the winner this morning. Congratulations.

WHITFIELD: Congrats to him. Hey, "AMERICAN MORNING" is next. You guys have a great weekend. You, too, Chad.

MYERS: I will.

WHITFIELD: Have a great weekend.

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


Aired July 16, 2004 - 06:31   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Good morning from the CNN global headquarters in Atlanta. I'm Fredricka Whitfield in for Carol Costello this morning.
Now in the news, gracious living guru Martha Stewart will be sentenced three and a half hours from now for lying to investigators about a stock sale. And legal analyst Martin Pollner will be here two minutes from now to discuss whether the justice system treats celebrities any differently.

A tragic story at a school in southern India at this hour. A fast-moving fire has killed at least 75 children and injured about 30 others at a girls' school.

Both presidential candidates are on the campaign trail today. President Bush speaks in Tampa, Florida, four hours from now and has a rally in Bethany, West Virginia, 10 hours from now. Senator Kerry speaks in Washington nine hours from now and has a reception in Arlington, Virginia, about 13 hours from now.

And firefighters are claiming progress against a 7,200-acre wildfire that has destroyed 20 homes on the edge of Nevada's capital, Carson City. Five people have been injured, none of them seriously.

Keeping you informed, CNN, the most trusted name in news.

(WEATHER BREAK)

WHITFIELD: Martha Stewart finds out today what her penalty is for lying to investigators about a stock sale. But Stewart's company has been paying a penalty since she was indicted last year.

More on that from CNN's Allan Chernoff.

(BEGIN VIDEOTAPE)

ALLAN CHERNOFF, CNN FINANCIAL NEWS CORRESPONDENT (voice over): Martha Stewart's business empire has turned into a shrinking money- losing operation since her indictment and conviction. The business rose on Martha Stewart's image of perfection, now at fault.

T.K. MCKAY, MORNINGSTAR: As long as her reputation is damaged in any way, it's going to have a direct impact on the long-term prospects of this business.

CHERNOFF: Most troubled: the magazine that is the heart of Martha Stewart Living Omnimedia. Advertisers have been fleeing. Ad pages in "Martha Stewart Living" plummeted 42 percent during the first half of the year, compared to the same period last year. And ad revenue has collapsed 52 percent, the worst performance of any major publication. The company has cut circulation promised to advertisers by 20 percent, down from 1.8 million.

BRENDA WHITE, MEDIA DIRECTOR, STARCOM USA: The view from a buyer's perspective is, is that there is some cause for concern with the fact that a lot of advertisers have pulled out.

CHERNOFF: The company has put Martha Stewart's syndicated television program on hiatus for the coming season and cut its staff.

Martha Stewart Living merchandise sales have held up, but the company will be getting smaller royalty payments from Kmart under a new contract.

Martha Stewart Living Omnimedia declined to speak on camera. A spokesperson said: "People are focused on doing what we love to do in producing the products we know our customers love. It's business as usual."

But increasingly, it's business without Martha Stewart. Her replacement as chief executive, Sharon Patrick, is engineering a subtle re-branding. Beginning in September, the flagship magazine will show a redesigned cover to emphasize the title, "Living;" de- emphasizing Martha Stewart's name. "Everyday Food" magazine dropped its subtitle, "From the Kitchens of Martha Stewart Living."

(on camera): While the company is suffering the impact of Martha Stewart's conviction, it is in no danger of collapse. To the contrary. There is plenty of cash on the books and no debt. But investors fear there may be no earnings for some time to come. The stock is trading near its lowest level since Martha Stewart was indicted.

Allan Chernoff, CNN Financial News, New York.

(END VIDEOTAPE)

WHITFIELD: Coincidence? Kmart is having a sale on Martha Stewart products. Kmart is offering a 25 percent discount on Stewart's bed and bath products. Stewart, who built a catering company into a media empire, earned about, reportedly, $1.5 million last year. In prison, however, she would earn between 12 and 40 cents an hour.

And by the way, Stewart got $228,000 when she dumped her ImClone stock. It's now worth about 315,000 grand.

Well, as we await this morning's sentencing of Martha Stewart, let's look at the bigger issue of celebrity justice. Is it an advantage or a disadvantage to enter the courtroom rich and famous?

Former federal prosecutor Martin Pollner joins us now from new with some insights. Good to see you this morning.

MARTIN POLLNER, FORMER FEDERAL PROSECUTOR: Good morning.

WHITFIELD: Well, no doubt Martha Stewart is being used as an example or one of many examples in the crackdown on corporate crime. Is that likely to work against her simply for the fact of her celebrity?

POLLNER: I think the fact that she's a celebrity underscores the interest by the public, the media, the prosecutor and others. And I've found that in most cases a celebrity coming into a case changes the entire spectrum. For example, Winona Ryder was involved with a shoplifting matter, and she had a two-week trial. That would never have happened if it was just Mary Jones.

So, you do have a skewing of interest and desire on all aspects of it.

WHITFIELD: So, in some respects, you see that celebrities were the big fish or are subjected to harsher treatment, harsher standards.

POLLNER: I believe so, without talking about Martha Stewart right now. But I do believe that a celebrity, in my experience having represented several, changes the entire equation. Prosecutors see it as a mechanism by which they have their big case, because the media are calling. You have judges, for example, in the O.J. Simpson case, who I think became very star-struck and lost his objectivity. So, I do think it works in both directions.

WHITFIELD: All right. Well, specifically about the Martha Stewart case then, is there likely to be some leniency granted because there are no prior convictions, there was no violence involved in this crime?

POLLNER: In the federal system, they have these federal guidelines, which are a volume of various objective criteria. And her being a celebrity has no bearing on it whatsoever. They deal with issues of her contrition, of the harm to the public, of lying to government agencies, and things of that nature. So, I don't see that at all happening here in the federal system.

WHITFIELD: So, in general, this judge would intentionally want to follow the guidelines so as not in any way to be accused of showing any kind of favoritism.

POLLNER: Exactly. Now, her lawyer will ask for what they call a downward departure for various good deeds. She has done charitable work and so forth. And that's where the argument is, whether she should get a downward departure or what within this range of about 10 to 16 months will this judge...

WHITFIELD: Do you want to make any guesses? Do you think it's going to be a probation or jail time?

POLLNER: I think she will receive jail time between 10 and 16 months.

WHITFIELD: All right. Following the guidelines then. Martin Pollner, former prosecutor, thanks very much for joining us.

POLLNER: Thank you very much.

WHITFIELD: Well, we've already mentioned Martha Stewart and her former broker being sentenced today just a few hours apart from one another. So, what's happened to some of the other key players in the case?

ImClone founder and Martha Stewart's pal, Sam Waksal, is now serving a seven-year prison term. Doug Faneuil, the stockbroker's assistant who ratted out Martha Stewart, admitted lying to investigators. Well, Faneuil is expected to be sentenced next week. And Larry Stewart, a U.S. Secret Service ink expert -- no relation to Martha Stewart -- pleaded not guilty to committing perjury at Martha Stewart's trial. He goes on trial September 20.

Again, Martha Stewart's sentencing hearing begins in New York at 10:00 a.m. Eastern Time, and then a few hours after that Peter Bacanovic's sentencing is scheduled.

Well, U.S. Marine Corporal Wassef Ali Hassoun is waking up in America this morning. Hassoun arrived Thursday at the Marine Corps base at Quantico, Virginia, after a flight from Germany. He told investigators he was abducted from his base in Iraq last June. The corporal resurfaced in Lebanon just over a week ago. Military officials are attempting to learn what happened during his capture and his detainment, and how he got to Lebanon, 500 miles away from Iraq.

Well, U.S. troops in Iraq are constantly on the lookout for suicide bombers and roadside ambushes. When a soldier or a Marine is injured, the recovery process can be very difficult.

Reporter Warren Elly of CNN affiliate WTBT in Tampa, Florida, has the story of one Marine experiencing some small victories.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: There you go.

WARREN ELLY, CNN AFFILIATE WTBT REPORTER (voice over): Young hands that fought a war are now fighting a new battle.

UNIDENTIFIED FEMALE: One more, just go ahead. Eat it. Put it in your mouth. There you go. Excellent.

ELLY: Anthony Alegre is learning how to feed himself all over again. You see, the young Marine corporal, who enlisted at 17, was nearly killed by a suicide bomber in Iraq last May. He came home in a coma, shrapnel literally cutting through his brain.

JOE ALEGRE, ANTHONY'S FATHER: It's just something you can't explain. You've got to have a kid to understand the feeling. ELLY: For two months in a naval hospital near Washington, Anthony didn't speak or move. The prognosis was bleak. Then his parents heard about a new blast injury rehab center opening at James Haley Hospital in Tampa.

UNIDENTIFIED FEMALE: Come on. Move forward. This is the first time that he does this.

ELLY: In just two weeks, Anthony's Tampa team of doctors and therapists has him moving again. He spoke his first words last week.

UNIDENTIFIED FEMALE: Anthony, which do you like better? Apple sauce or the pudding?

ANTHONY ALEGRE, INJURED SOLDIER: Apple sauce.

ESTER ALEGRE, ANTHONY'S MOTHER: You can't describe the feeling from your son laying on a bed lifeless to opening his eyes and saying, "Mom." It's just unreal.

ELLY (on camera): Ever since Anthony got to Tampa, just about every day has been a day of small victories, victories his parents believe will bring him back home someday.

UNIDENTIFIED FEMALE: There you go. Pull yourself up. There you go.

ELLY (voice over): There are hours of rehab each day, remarkable progress for such a massive brain injury. Anthony's doctors say it has a lot to do with his parents, who moved to Tampa from Georgia to support him.

DR. SPENCE SCOTT, BLAST INJURY REHAB PROGRAM: It's pretty amazing. He had a very significant, a very severe head injury. He's made nothing short of a miraculous recovery thus far.

ELLY: Anthony's parents wanted you to see this story, because they believe the wounded are being forgotten.

J. ALEGRE: They're laying their life on the line, and they're laid up with injuries for the rest of their life.

ELLY: And they are still showing incredible courage.

UNIDENTIFIED FEMALE: You did excellent. I am so proud of you. Are you proud of yourself, too? Yes. Give me give. All right!

(END VIDEOTAPE)

WHITFIELD: Now, that was Warren Elly of CNN affiliate WTBT in Tampa, Florida. That blast rehab program was brought to Tampa's James Haley Veterans Hospital at the insistence of Senator Bob Graham of Florida.

WHITFIELD: Well, most of those Saddam Hussein statues that stood across Iraq have been pulled down. A pair of 50-foot-tall statues in Tikrit were melted down and recast into this: a memorial at Ford Hood, Texas, home of the 4th Division, the division that captured Saddam Hussein. The GI is kneeling, mourning 81 comrades killed in the Iraq war.

And in New York's Time Square, a dispute over an antiwar message has been settled. A liberal advocacy group calling itself Project Billboard reached agreement with the billboard owners, Clear Channel Communications, on Thursday. Clear Channel rejected the billboard, featuring the image of a bomb with the words, "democracy is best taught by example, not by war." The agreement allows the text to stay, but the bomb goes. In its place: a dove of peace. The message will be there during the Republican Convention.

And what's summer without a blockbuster? Coming up, we've got reviews of robots, Redford and a real-life Cinderella.

(COMMERCIAL BREAK)

WHITFIELD: It's 12 minutes away from the top of the hour. And from "AMERICAN MORNING," let's check in with what's on top with Anderson and Heidi.

Good morning to you all.

ANDERSON COOPER, CNN ANCHOR: Hey, good morning, Fredricka. How is it going?

WHITFIELD: Great.

COOPER: Here are some of the headlines we're going to be talking about this morning on "AMERICAN MORNING." Martha Stewart's sentencing, how harsh is the judge going to be? We're going to talk live to senior legal analyst Jeffrey Toobin. We're also going to talk to Stewart's former media adviser and lawyer.

HEIDI COLLINS, CNN ANCHOR: Yes. We'll find out how much time that she will get.

Also, the Edwards' interview, John Edwards that is. He'll have his first interview with CNN since becoming Kerry's running mate. He talks about his decision to vote for the Iraq war and Vice President Cheney, and his family as well.

COOPER: We'll also tell the story of a soldier charged with cowardice. Big news on his status. A live report from the Pentagon for that.

That and a lot more ahead on "AMERICAN MORNING" -- Fredricka.

WHITFIELD: All right, thanks a lot.

Your news, money, weather and sports. It's now about 11 minutes or so before the hour. And here's what's all new this morning.

The death toll keeps rising in the tragic fire at a girls' school in India. At least 77 children are dead. The blaze started in the kitchen and raced through the school, trapping many of the victims.

The U.S. Senate has approved a $12 billion buyout bill for tobacco farmers. Among the provisions in the legislation: more restrictions on cigarette companies, including a ban on advertising that appeals to children.

In money, eBay gets hip. The online business is testing the digital music download market for six months by allowing some record labels to sell music directly to consumers.

And in culture, a Lewisburg, Pennsylvania, theater owner is offering Republicans a free showing tomorrow of the anti-Bush movie, "Fahrenheit 9/11." The owner says people must prove they are Republicans in order to get in.

In sports, Marion Jones is going to the Olympics after winning the long jump in spectacular fashion at the U.S. Olympic trials. She jumped -- and you'll see it -- 23 feet, four inches, the second longest jump in the world this year. And there it is.

CHAD MYERS, CNN METEOROLOGIST: That's pretty amazing.

WHITFIELD: Yes. And she knew it right away, Chad.

MYERS: Yes, you bet.

(WEATHER BREAK)

WHITFIELD: And those are the headlines.

Well, not everything is as it seems. What if robots weren't really robots? We'll get the critic's impression of Will Smith's new blockbuster coming up. This is DAYBREAK for Friday morning.

(COMMERCIAL BREAK)

WHITFIELD: Well, let's look ahead at not what's coming up in the next hour, but 31 years from now. It's the new Will Smith movie, "I, Robot," set in the year 2035. And Gene Seymour of "In Touch Weekly" magazine has a preview of that film and a couple of others that we're going to talk about for this weekend.

Good morning to you. He's joining us from New York.

GENE SEYMOUR, "NEWSDAY" FILM CRITIC: Good morning.

WHITFIELD: All right. So, do you like "I, Robot?"

SEYMOUR: To my surprise, I do. I didn't expect much out of it. If you look at the trailers for that film, it looks like a bunch of toys having a slam dance. But this is a detective thriller with the emphasis, for a change, on detection. It keeps faking you out in terms of the solution of this murder mystery.

And in the process, there are a lot of set pieces where the robots do, in fact, do a lot of kung fu fighting and all of that kind of stuff. But it has a brain. I wouldn't put this in the category of "Blade Runner" or "Artificial Intelligence," which were better movies that explored the same themes as this one does. But it's a solidly- crafted, very moody detective thriller.

Will Smith, he just takes out his persona and wears it like a brand-new coat and works it just like...

WHITFIELD: And there he is, along with Bridget Moynahan, who is getting a lot of attention, too.

SEYMOUR: Right.

WHITFIELD: And does it just seem to be the case that whatever Will Smith touches it just turns to gold?

SEYMOUR: Well, particularly in this fantasy sub-genre, which is kind of surprising of how it all seems to be working out for him every time he takes on a project like this. But the thing is he knows what he's doing within this context. And while he still seems a little too young to play the kind of world-weary, hard-broiled guy that he plays in this movie, it's still a pretty good stretch for him. He's showing some range.

WHITFIELD: All right. Well, let's talk about something a lot more light-hearted, "A Cinderella Story" with Hilary Duff.

SEYMOUR: Right. Yes, yes.

WHITFIELD: Do you like it?

SEYMOUR: This isn't really a movie so much as it is a referendum on Hilary Duff's box-office potential. I mean, as you know, "Lizzie McGuire" kind of put her over the top as far as a box-office potential. Unfortunately, she's not playing Lizzie McGuire in this, and she doesn't have the TV property to kind of hold her up.

It's kind of a drearier, longer...

WHITFIELD: So, it sounds like you'd go see this movie because you like Hilary Duff.

SEYMOUR: Yes. And...

WHITFIELD: That's what I'm getting from you.

SEYMOUR: And what that means is you're going to have to take -- what that means is a lot of pre-teenagers...

WHITFIELD: All right.

SEYMOUR: Whenever there is a teenager in a movie you always take pre-teens, because they're going to like it.

WHITFIELD: Well, let me get to a movie that may appeal to a broader audience with Robert Redford.

SEYMOUR: Right.

WHITFIELD: "The Clearing."

SEYMOUR: Yes. This has already, you know, been shown in major cities. It's going national this weekend. Robert Redford plays an executive who is kidnapped by a disgruntled employee. And his wife is played by Helen Mirren. The kidnapper, by the way, is Willem Dafoe.

It's a very strong cast and it's very well-written. But it's so well-written and well-crafted that they bleached out any real tension. But if there is a reason to see the movie it's Helen Mirren, who pretty much runs away with the movie by not doing a whole lot. She's very, very polished and very, very subtle in this performance.

WHITFIELD: All right.

SEYMOUR: And I think fans of -- if you're a fan of her I think you're going to like this movie a lot.

WHITFIELD: All right, Gene Seymour, a variety to watch this weekend. Thanks a lot. Good to see you. Have a great weekend.

SEYMOUR: Thank you.

WHITFIELD: And we'll be right back, but first the headlines.

(COMMERCIAL BREAK)

MYERS: All right, we're almost out of time, so we have to go quickly here. It's time to reveal the winner of the mug from yesterday.

What pitch man is joining the campaign to fight against childhood obesity? That was Jerrod of Subway fame. Remember, he ate all of those six grams of fat Subway sandwiches and lost all of that weight?

And what trophy is being sold? That's the original Heisman trophy, and there are expecting it to go for well over $1 million.

Sam Gross from Charleston, West Virginia, you are the winner this morning. Congratulations.

WHITFIELD: Congrats to him. Hey, "AMERICAN MORNING" is next. You guys have a great weekend. You, too, Chad.

MYERS: I will.

WHITFIELD: Have a great weekend.

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