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FBI Sting In Albany, New York Leads To Two Arrests

Aired August 05, 2004 - 11:00   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.


DARYN KAGAN, CNN ANCHOR: We are looking at 11:00 a.m. on the East Coast and 8:00 a.m. on the West Coast. From CNN Center in Atlanta, good morning once again. I'm Daryn Kagan.
Up first this hour on CNN, is al Qaeda on the move?

We are told that intelligence suggests that the terrorist network may be regrouping at its training camps in Pakistan.

Our Pentagon correspondent Barbara Starr is tracking that story, and she joins us with details. Barbara, good morning.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Daryn, as you say, defense and intelligence officials say there is recent intelligence, recent indicators based in part on overhead imagery that terrorist training camps, al Qaeda terrorist training camps inside Pakistan, have recently been be reactivated.

They are noticing the activity of people and vehicles at these camps. This is all along the southeastern border between Afghanistan and Pakistan. However, officials emphasize they have no reason to believe, at this point, that any of this is tied to the current terrorist threat warning being raised in the United States.

People will remember that many of these so-called training camps inside Pakistan are very rudimentary. They pop up. They go away. They're back and forth. And they have seen some recent intelligence now indicating some activity.

Of course Pakistani military forces in recent weeks have been moving a great deal through this frontier area. They know that al Qaeda and Taliban operatives are throughout the area.

There's been a lot of Pakistani military activity. And the belief now is that the Pakistanis will eventually move through and deal with this situation with the camps. Nonetheless, it's something they are keeping a very close eye on -- Daryn?

KAGAN: And Barbara, while I have you here. Let's ask you about the other big story of the day for the defense department, and that is President Bush signing this defense appropriations bill.

STARR: Well, yes, that is something that has been long-awaited. Of course, you know, the big funding issues at the moment involve the money to pay the troops who are in Iraq and also to continue with the modernization programs. There's a lot of weapons modernization that the Pentagon is continuing to work on right now, laying the groundwork for the next generation of the military.

A lot of people don't see it out there, but a lot of that money is going for modernization of Army forces, making them more responsive, more quickly able to move. The idea is that they will be not so reliant in the future on some of that heavy armor equipment.

It's one of the lessons that they have learned from the situation in Iraq, lighter, more mobile, more ready to respond. But all of that cost a lot of money -- Daryn?

KAGAN: A lot of money -- billions and billions. Barbara, thank you.

And now to Albany, New York where a mosque is the scene of a federal raid that ended just this morning. Federal law enforcement sources say two people are being held following a terrorism sting, a sting operation at that mosque.

Our Jeanne Meserve is covering that story and has the latest -- Jeanne?

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Daryn, government sources say those raids were conducted at the Masjid As- Salam mosque in Albany, New York. They began at a about 11:00 last night and ended shortly before 6:00 this morning.

We are told that two individuals have been arrested as a result of these raids. One is the imam of that mosque, his name Yasin Aref. He is an Iraqi citizen but has asylum status in the United States. He is the imam, as I mentioned, of the mosque.

His wife tells CNN Alina Cho that he never came home last night. And she assumed that he was at the mosque, but that at two in the morning, the FBI took her and their three children to a local hotel for questioning. She says she is not aware of the charges against her husband.

The other man arrested is identified as Mohammed Musharef Hossain, 49, a native of Bangladesh, a U.S. citizen and identified by government sources as a founder of the mosque.

In an interview with the "Albany Times Union" newspaper, Hossain in June said, "I am proud to be an American. When I was in high school in Bangladesh, I looked at a map of America and I dreamed of coming to this great land. Since I have been here, opportunity has kissed my feet. Hard work has done the rest."

The raids were conducted after the two men were approached. We've just gotten an affidavit from the justice department outlining how this all came down. They indicated that this investigation began in the summer of 2003, that they used a man who had been, who had pled guilty to a felony related to the fraudulent acquisition of documents as an undercover operative in a sting operation. He approached Hossain, according to this affidavit, telling him that he sold missiles, that he brought ammunitions, shoulder to air missiles from China that he provided to brother mujahedeen.

He further described how the imported generated a significant amount of cash; and that before he used to invest all the money in China market and New York City, but now he can't do that.

He turned to Hossain, offered to give him $50,000 and have Hossain pay him back in $2,000 increments. But Hossain would be able to keep $5,000 of the original $50,000 payment. So this the result of a sting operation.

The Albany mayor had much to say to reporters this morning.

(BEGIN VIDEO CLIP)

MAYOR JERRY JENNINGS, ALBANY, NEW YORK: We're not going to get into any real detail here gang, OK, as far as questions. I just wanted to confirm that this was a coordinated effort by the Albany police department, the New York state police and the FBI. It's been an ongoing investigation, and obviously the results are good.

This is something that we anticipated. People shouldn't be concerned because we've been on top of this for quite a while, and we're going to stay on top of it. There will be a continuing investigation. And we've accomplished what we wanted to accomplish here this morning.

(END VIDEO CLIP)

MESERVE: Sources say the two men were taken into custody without incident. As I mentioned, the mosque was raided, so were two other buildings. They will likely face charges of lending material support to terrorists and money laundering.

Daryn, back to you.

KAGAN: Jeanne Meserve, thank you for the latest. We will learn more from you in a bit.

Also, we are expecting to learn more about the mosque raid later today. A news conference scheduled this hour in Albany New York.

Governor Pataki is expected to be there. We will bring that to you live when it happens.

Meanwhile, a different terror related story -- investigators sifting through the intelligence behind the heightened terror alert in the U.S. The information is adding to concerns that al Qaeda may have operatives inside this country.

Our justice correspondent Kelli Arena has that story.

(BEGIN VIDEOTAPE) KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): Two senior U.S. government sources tell CNN one reason for increased concern about a possible terror attack is evidence showing suspected al Qaeda operatives in Pakistan contacted an individual or individuals in the United States in the past few months.

The U.S. officials would not characterize that communication, but two senior Pakistani intelligence officials went further, telling CNN the evidence shows alleged al Qaeda computer expert Muhammad Naeem Noor Khan contacted at least six al Qaeda operatives in the United States.

TOM RIDGE, HOMELAND SECURITY SECRETARY: We are exploring every conceivable, potential contact that any al Qaeda operative anywhere in the world might have had with anyone in the United States.

ARENA: Sources say Khan also contacted alleged al Qaeda members in Britain, leading to several arrests. The information lends credibility to the concern al Qaeda may have operatives in place in the United States ready to attack.

ED STROZ, FMR. COUNTERTERRORISM AGENT: Certainly when you have actionable information with adversaries who are capable and intent on taking direct military loss of life action, you can't have anything of greater consequence and more importance than this.

ARENA: Information about contacts between al Qaeda and someone in the U.S. follows criticism the Bush administration was touting old surveillance information found in Pakistan about al Qaeda targeting financial institutions.

But officials now say there was a separate stream of intelligence that surfaced last week corroborating the surveillance information.

RIDGE: Old information isn't irrelevant information, particularly with this kind of enemy. This is an enemy that plotted for years before 9/11.

ARENA: Investigators continue to scrub that intelligence from Pakistan. U.S. sources say it has provided leads for investigators working to uncover possible terror cells.

(on camera) But still, officials cite nothing definitive on the timing of an attack. And they say there isn't any solid proof showing al Qaeda is ready to execute one.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

KAGAN: A pay raise for U.S. troops and more money for the wars in Iraq and Afghanistan. Those are some of the items in the defense budget signed by President Bush about an hour ago.

The Senate unanimously approved the $418 billion appropriations bill. It includes money to add 20,000 troops to the Army and a 3.5 percent pay raise for military personnel.

Also included, money for Sudan and an additional $25 million for operations - actually a $25 billion for operations in Afghanistan and Iraq.

A fierce street fight in the holy Iraqi city of Najaf today in the shadows of one of Islam's most revered shrines -- 10 Iraqis have been killed in the battle against militias loyal to radical cleric Muqtada Al-Sadr. A U.S. helicopter ferrying a wounded U.S. service member was brought down by small arms fire injuring two additional troops.

Separately, a U.S. soldier was killed, five wounded when their convoy was hit by a rocket propelled grenade and small arms fire outside of Najaf.

A suicide attack today near an Iraqi police station south of Baghdad, it killed six people and wounded 24 others. The bomber exploded a minibus near the station, which is 40 miles outside the capital.

He was the translator who was there when U.S. special forces made an incredible find. Capturing Saddam, seem through the eyes of someone who was part of it.

That story is just ahead.

Also, is the case against Kobe Bryant coming apart? His accuser may be having second thoughts, but it doesn't mean his troubles are over.

And later, they're taking on a weighty issue, how one group is trying to change perception about obesity.

CNN LIVE TODAY is back after this.

(COMMERCIAL BREAK)

KAGAN: A report out today says the husband of missing Utah woman confessed to his brothers that he killed her.

The "Salt Lake City Tribune" said that Mark Hacking's brothers confronted him about five days into the search for his wife Lori. Hacking was arrested on Monday.

Police using cadaver dogs returned to a landfill last night to resume the search for Lori Hacking's somebody.

More testimony about information seized from Scott Peterson's computers is expected when his trial resumes next hour. According to testimony yesterday, computer hard drives showed Peterson was searching for information about fishing and currents in San Francisco Bay.

Prosecutors accuse Peterson of killing his wife Laci and dumping her body in the bay. The defense says someone else killed Laci Peterson and framed Scott.

The woman who accuses Kobe Bryant of sexual assault is weighing whether to withdraw from the case. Her attorney says that she is expected to make a decision within a week to 10 days. They say that mistakes by court officials have made it difficult for her to continue.

Her name and other information from confidential hearings was accidentally sent out in e-mail to different media organizations.

So what does this mean for the future of the case against Kobe Bryant? Well in transcripts from a hearing in June, a prosecutor said the case would be vulnerable if information about the accuser's sexual history were allowed.

She said, quote here, "I'm thinking the prosecution is going to sit down and re-evaluate the quality of its case and its chances of a successful prosecution."

Former U.S. attorney, Kendall Coffey is in Miami with some insight on these latest developments.

Kendall, good morning. Good to see you.

KENDALL COFFEE, FORMER U.S. ATTORNEY: Hey, good morning, Daryn.

KAGAN: How important is this woman's participation to the success of this case?

COFFEY: Well, technically it's the prosecutors call whether to continue with the case or not, Daryn. But realistically speaking, if she isn't cooperating 100 percent in what is already a damaged prosecution case, they've got no alternative but to drop the case.

KAGEN: She has a new attorney, Lin Wood, who hasn't represented the Ramsey family. He has represented Richard Jewell, the man who was falsely accused after the Olympic Park bombing from here in Atlanta.

Are you thinking -- perhaps she is thinking going in a civil direction instead of a criminal direction?

COFFEY: I think a very clearly. I think from the standpoint of the criminal defense team of Kobe Bryant, they are on a Rocky Mountain high right now.

This case is badly damaged, maybe irretrievably. And going on national television yesterday, Daryn, saying that you're maybe thinking of dropping the criminal case and/or pursuing a civil case, that by itself is immensely harmful to the prosecution because it means either one, they don't believe in the prosecution anymore. That's bad.

But even worse, there might be a big, big motive for the jury not to believe what she said in a he said/she said. That is millions of dollars of reasons, according to the defense, for her to be making up some of these allegations against Kobe Bryant. KAGEN: How strong would her civil case be without the criminal charges, though?

COFFEY: Well, the criminal makes it much easier. That's why a lot of lawyers tell an alleged victim, get the guy successfully prosecuted, then worry about the civil case.

But given the way the criminal case is going, I think they want that over with. And a civil case can still be successful. As we know, it's a lower standard of proof. That's important.

And by the way, let's face it, Daryn, it is much easier to settle a civil case like this, especially for somebody who's got lots and lots of Monday, than it is to make a criminal case go away.

KAGEN: And also to make a comment of "no comment" to make that part of the deal if that's how it turns out.

Now despite how this case turns out going, Kendall, what about how this court has handled this case and the message to potential rape victims out there that really you are not safe and you can't put yourself in the hands of this court?

COFFEY: Well, I think there's going to be short-term damage, Daryn. I mean, there's been blunder bolt after another shattering the privacy expectations of an alleged victim; and that message has been heard around the country.

Hopefully, people will understand that this is an extraordinary case with what courts have described as a media frenzy. And this kind of thing is completely aberrational, and that the system really does work hard to protect the rights of alleged rape victims.

But let's face it, there has been some damage. And the Kobe Bryant case is going to be talked about by, or thought about, by a lot of people who are trying to decide whether to report rape allegations to the authorities.

KAGEN: Kendall Coffey, thanks for talking about it with us today.

COFFEY: Thanks, Daryn.

KAGEN: Good to see you, Kendall.

Day three of a military hearing for a soldier featured prominently in the Iraqi prison abusive photos. A series of witnesses have disputed Lynndie England's contention that she was only following orders to soften up prisoners.

One investigator told the court today that the abuse happened all the time. Photographs show prisoners in humiliating and sexually explicit poses.

The hearing is expected to conclude tomorrow. The court will decide whether she'll face a full court-martial on 19 proposed counts. Well, say it loud. They say they are fat and they are proud. One group is literally throwing its weight around hoping to change people's perception. That's up next.

And later, remember hanging Chad, angry voters' bitter accusations? Some in Florida say it will be all different this time around. They think it's going to be worse.

The controversy in Florida coming up.

(COMMERCIAL BREAK)

KAGAN: All right. Let's check in on weather. Rob Marciano is with us today doing just that. Rob, some cool fronts in some places in the beginning of August.

ROB MARCIANO, CNN METEOROLOGIST: Yes, cooler air is sliding down.

(WEATHER BREAK)

MARCIANO: So, they'll get a little slice of cool air as well. And it will be welcome for folks who have been sweating this August. That's for sure.

KAGAN: A welcome relief.

MARCIANO: Yes.

KAGAN: Rob, thank you for that.

MARCIANO: You bet.

KAGAN: A group that's called the National Association to Advance Fat Acceptance is holding it's 35th annual convention in Newark this week.

Frank Zapola of our affiliate WWOR has a look.

(BEGIN VIDEOTAPE)

MARILYN WANN, NAAFA: I think thin is beautiful; I also think fat is beautiful. I think everybody is beautiful.

FRANK ZAPOLA, WWOR CORRESPONDENT (voice-over): Marilyn Wann and so many of her fellow activists don't want your pity. They're comfortable in their own skin and want everyone to get over it.

Wann has even written a book about her coming out fat, as she calls it, called "Fat, So?"

WANN: What I've learned since I came out as a fat person 10 years ago, is that it's much easier to change my world than it is to change my thighs.

ZAPOLA: And that is what this four-day get together in Newark is all about.

(on camera) And the opening of this conference included a session called sharing our words.

UNIDENTIFIED NAAFA MEMBER: These hips are mighty hips!

ZAPOLA: This woman, through poem, celebrated her expanding hips.

While the so-called fat freedom singers sang about making their mark in the world. This is the kind of world they say Americans are force-fed and the young suffer the most.

ANDI BRAY, NAAFA: Think it's unfortunate that that's not only what I see, but what teenagers and children see and lots of others -- anorexia problems in grammar school. And people are trying to be what their bodies are not supposed to be.

ZAPOLA: Or not paying attention to the person inside.

ELLEN MONROE, NAAFA: Try and meet the person and get to know them first and watch what they eat. A lot of times they may eat even less than you do.

(END VIDEOTAPE)

KAGAN: And thanks to WWOR. As part of the week celebration of size, the Body Liberation Movement will rally in a New York park tomorrow. Hundreds of overweight people will dance the hokey pokey and like the woman in that piece said, will come out as fat.

Controversy over voting machines, disenfranchised voters and accusations of bias -- now stop us if you think you've heard this one before. Florida is gearing up, could it be for a repeat of 2000?

We're going to take a closer look at that when CNN LIVE TODAY returns.

(COMMERCIAL BREAK)

KAGAN: I'm Daryn Kagan in Atlanta. Let's check what's happening now in the news for this Thursday, August 5th.

Federal agents raided a mosque today in Albany, New York. Two leaders of the mosque are jailed this morning, accused in a sting about money laundering to buy a shoulder-fired missile from an undercover agent.

New York Governor George Pataki will discuss the raid in about 15 minutes. And a justice department news conference is scheduled for 1:30 p.m. Eastern.

Live coverage on CNN.

Defense and intelligence sources tell CNN that imagery from spy satellites indicates al Qaeda training camps along the Afghan, Pakistani boarder are operational once again. One official says there's nothing to suggest the activity at the camps is linked to the higher terror alert in three U.S. cities.

Conjoined twins from the Philippines are reported strong and stable after 17 hours of separation surgery in New York after it ended early this morning. The 2-year-old boys were fused at the top of their heads.

And a Los Angeles man says she has an alibi and was wrongly accused of murder. His defense attorney found a shot of him on a videotape at a Dodgers game. The man is new suing the city.

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

Both presidential candidates have jam-packed schedules again today. Let's go to Judy Woodruff in Washington for our voter alert.

Judy, apparently they're not blocks apart at the same time today.

JUDY WOODRUFF, CNN ANCHOR: For a change, they are not, Daryn, thanks very much.

But both President Bush and John Kerry have already finished events here in Washington today. And both of them have a long day ahead. The president signed a $417 billion defense spending bill.

In about 90 minutes, he holds an "Ask President Bush" event in Columbus, Ohio, then he heads for Saginaw, Michigan.

Senator Kerry gave a speech and took questions at a conference of minority journalists. This afternoon, he and his running mate, John Edwards, reunite in Missouri.

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 August 5, 2004 - 11:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: We are looking at 11:00 a.m. on the East Coast and 8:00 a.m. on the West Coast. From CNN Center in Atlanta, good morning once again. I'm Daryn Kagan.
Up first this hour on CNN, is al Qaeda on the move?

We are told that intelligence suggests that the terrorist network may be regrouping at its training camps in Pakistan.

Our Pentagon correspondent Barbara Starr is tracking that story, and she joins us with details. Barbara, good morning.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Daryn, as you say, defense and intelligence officials say there is recent intelligence, recent indicators based in part on overhead imagery that terrorist training camps, al Qaeda terrorist training camps inside Pakistan, have recently been be reactivated.

They are noticing the activity of people and vehicles at these camps. This is all along the southeastern border between Afghanistan and Pakistan. However, officials emphasize they have no reason to believe, at this point, that any of this is tied to the current terrorist threat warning being raised in the United States.

People will remember that many of these so-called training camps inside Pakistan are very rudimentary. They pop up. They go away. They're back and forth. And they have seen some recent intelligence now indicating some activity.

Of course Pakistani military forces in recent weeks have been moving a great deal through this frontier area. They know that al Qaeda and Taliban operatives are throughout the area.

There's been a lot of Pakistani military activity. And the belief now is that the Pakistanis will eventually move through and deal with this situation with the camps. Nonetheless, it's something they are keeping a very close eye on -- Daryn?

KAGAN: And Barbara, while I have you here. Let's ask you about the other big story of the day for the defense department, and that is President Bush signing this defense appropriations bill.

STARR: Well, yes, that is something that has been long-awaited. Of course, you know, the big funding issues at the moment involve the money to pay the troops who are in Iraq and also to continue with the modernization programs. There's a lot of weapons modernization that the Pentagon is continuing to work on right now, laying the groundwork for the next generation of the military.

A lot of people don't see it out there, but a lot of that money is going for modernization of Army forces, making them more responsive, more quickly able to move. The idea is that they will be not so reliant in the future on some of that heavy armor equipment.

It's one of the lessons that they have learned from the situation in Iraq, lighter, more mobile, more ready to respond. But all of that cost a lot of money -- Daryn?

KAGAN: A lot of money -- billions and billions. Barbara, thank you.

And now to Albany, New York where a mosque is the scene of a federal raid that ended just this morning. Federal law enforcement sources say two people are being held following a terrorism sting, a sting operation at that mosque.

Our Jeanne Meserve is covering that story and has the latest -- Jeanne?

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Daryn, government sources say those raids were conducted at the Masjid As- Salam mosque in Albany, New York. They began at a about 11:00 last night and ended shortly before 6:00 this morning.

We are told that two individuals have been arrested as a result of these raids. One is the imam of that mosque, his name Yasin Aref. He is an Iraqi citizen but has asylum status in the United States. He is the imam, as I mentioned, of the mosque.

His wife tells CNN Alina Cho that he never came home last night. And she assumed that he was at the mosque, but that at two in the morning, the FBI took her and their three children to a local hotel for questioning. She says she is not aware of the charges against her husband.

The other man arrested is identified as Mohammed Musharef Hossain, 49, a native of Bangladesh, a U.S. citizen and identified by government sources as a founder of the mosque.

In an interview with the "Albany Times Union" newspaper, Hossain in June said, "I am proud to be an American. When I was in high school in Bangladesh, I looked at a map of America and I dreamed of coming to this great land. Since I have been here, opportunity has kissed my feet. Hard work has done the rest."

The raids were conducted after the two men were approached. We've just gotten an affidavit from the justice department outlining how this all came down. They indicated that this investigation began in the summer of 2003, that they used a man who had been, who had pled guilty to a felony related to the fraudulent acquisition of documents as an undercover operative in a sting operation. He approached Hossain, according to this affidavit, telling him that he sold missiles, that he brought ammunitions, shoulder to air missiles from China that he provided to brother mujahedeen.

He further described how the imported generated a significant amount of cash; and that before he used to invest all the money in China market and New York City, but now he can't do that.

He turned to Hossain, offered to give him $50,000 and have Hossain pay him back in $2,000 increments. But Hossain would be able to keep $5,000 of the original $50,000 payment. So this the result of a sting operation.

The Albany mayor had much to say to reporters this morning.

(BEGIN VIDEO CLIP)

MAYOR JERRY JENNINGS, ALBANY, NEW YORK: We're not going to get into any real detail here gang, OK, as far as questions. I just wanted to confirm that this was a coordinated effort by the Albany police department, the New York state police and the FBI. It's been an ongoing investigation, and obviously the results are good.

This is something that we anticipated. People shouldn't be concerned because we've been on top of this for quite a while, and we're going to stay on top of it. There will be a continuing investigation. And we've accomplished what we wanted to accomplish here this morning.

(END VIDEO CLIP)

MESERVE: Sources say the two men were taken into custody without incident. As I mentioned, the mosque was raided, so were two other buildings. They will likely face charges of lending material support to terrorists and money laundering.

Daryn, back to you.

KAGAN: Jeanne Meserve, thank you for the latest. We will learn more from you in a bit.

Also, we are expecting to learn more about the mosque raid later today. A news conference scheduled this hour in Albany New York.

Governor Pataki is expected to be there. We will bring that to you live when it happens.

Meanwhile, a different terror related story -- investigators sifting through the intelligence behind the heightened terror alert in the U.S. The information is adding to concerns that al Qaeda may have operatives inside this country.

Our justice correspondent Kelli Arena has that story.

(BEGIN VIDEOTAPE) KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): Two senior U.S. government sources tell CNN one reason for increased concern about a possible terror attack is evidence showing suspected al Qaeda operatives in Pakistan contacted an individual or individuals in the United States in the past few months.

The U.S. officials would not characterize that communication, but two senior Pakistani intelligence officials went further, telling CNN the evidence shows alleged al Qaeda computer expert Muhammad Naeem Noor Khan contacted at least six al Qaeda operatives in the United States.

TOM RIDGE, HOMELAND SECURITY SECRETARY: We are exploring every conceivable, potential contact that any al Qaeda operative anywhere in the world might have had with anyone in the United States.

ARENA: Sources say Khan also contacted alleged al Qaeda members in Britain, leading to several arrests. The information lends credibility to the concern al Qaeda may have operatives in place in the United States ready to attack.

ED STROZ, FMR. COUNTERTERRORISM AGENT: Certainly when you have actionable information with adversaries who are capable and intent on taking direct military loss of life action, you can't have anything of greater consequence and more importance than this.

ARENA: Information about contacts between al Qaeda and someone in the U.S. follows criticism the Bush administration was touting old surveillance information found in Pakistan about al Qaeda targeting financial institutions.

But officials now say there was a separate stream of intelligence that surfaced last week corroborating the surveillance information.

RIDGE: Old information isn't irrelevant information, particularly with this kind of enemy. This is an enemy that plotted for years before 9/11.

ARENA: Investigators continue to scrub that intelligence from Pakistan. U.S. sources say it has provided leads for investigators working to uncover possible terror cells.

(on camera) But still, officials cite nothing definitive on the timing of an attack. And they say there isn't any solid proof showing al Qaeda is ready to execute one.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

KAGAN: A pay raise for U.S. troops and more money for the wars in Iraq and Afghanistan. Those are some of the items in the defense budget signed by President Bush about an hour ago.

The Senate unanimously approved the $418 billion appropriations bill. It includes money to add 20,000 troops to the Army and a 3.5 percent pay raise for military personnel.

Also included, money for Sudan and an additional $25 million for operations - actually a $25 billion for operations in Afghanistan and Iraq.

A fierce street fight in the holy Iraqi city of Najaf today in the shadows of one of Islam's most revered shrines -- 10 Iraqis have been killed in the battle against militias loyal to radical cleric Muqtada Al-Sadr. A U.S. helicopter ferrying a wounded U.S. service member was brought down by small arms fire injuring two additional troops.

Separately, a U.S. soldier was killed, five wounded when their convoy was hit by a rocket propelled grenade and small arms fire outside of Najaf.

A suicide attack today near an Iraqi police station south of Baghdad, it killed six people and wounded 24 others. The bomber exploded a minibus near the station, which is 40 miles outside the capital.

He was the translator who was there when U.S. special forces made an incredible find. Capturing Saddam, seem through the eyes of someone who was part of it.

That story is just ahead.

Also, is the case against Kobe Bryant coming apart? His accuser may be having second thoughts, but it doesn't mean his troubles are over.

And later, they're taking on a weighty issue, how one group is trying to change perception about obesity.

CNN LIVE TODAY is back after this.

(COMMERCIAL BREAK)

KAGAN: A report out today says the husband of missing Utah woman confessed to his brothers that he killed her.

The "Salt Lake City Tribune" said that Mark Hacking's brothers confronted him about five days into the search for his wife Lori. Hacking was arrested on Monday.

Police using cadaver dogs returned to a landfill last night to resume the search for Lori Hacking's somebody.

More testimony about information seized from Scott Peterson's computers is expected when his trial resumes next hour. According to testimony yesterday, computer hard drives showed Peterson was searching for information about fishing and currents in San Francisco Bay.

Prosecutors accuse Peterson of killing his wife Laci and dumping her body in the bay. The defense says someone else killed Laci Peterson and framed Scott.

The woman who accuses Kobe Bryant of sexual assault is weighing whether to withdraw from the case. Her attorney says that she is expected to make a decision within a week to 10 days. They say that mistakes by court officials have made it difficult for her to continue.

Her name and other information from confidential hearings was accidentally sent out in e-mail to different media organizations.

So what does this mean for the future of the case against Kobe Bryant? Well in transcripts from a hearing in June, a prosecutor said the case would be vulnerable if information about the accuser's sexual history were allowed.

She said, quote here, "I'm thinking the prosecution is going to sit down and re-evaluate the quality of its case and its chances of a successful prosecution."

Former U.S. attorney, Kendall Coffey is in Miami with some insight on these latest developments.

Kendall, good morning. Good to see you.

KENDALL COFFEE, FORMER U.S. ATTORNEY: Hey, good morning, Daryn.

KAGAN: How important is this woman's participation to the success of this case?

COFFEY: Well, technically it's the prosecutors call whether to continue with the case or not, Daryn. But realistically speaking, if she isn't cooperating 100 percent in what is already a damaged prosecution case, they've got no alternative but to drop the case.

KAGEN: She has a new attorney, Lin Wood, who hasn't represented the Ramsey family. He has represented Richard Jewell, the man who was falsely accused after the Olympic Park bombing from here in Atlanta.

Are you thinking -- perhaps she is thinking going in a civil direction instead of a criminal direction?

COFFEY: I think a very clearly. I think from the standpoint of the criminal defense team of Kobe Bryant, they are on a Rocky Mountain high right now.

This case is badly damaged, maybe irretrievably. And going on national television yesterday, Daryn, saying that you're maybe thinking of dropping the criminal case and/or pursuing a civil case, that by itself is immensely harmful to the prosecution because it means either one, they don't believe in the prosecution anymore. That's bad.

But even worse, there might be a big, big motive for the jury not to believe what she said in a he said/she said. That is millions of dollars of reasons, according to the defense, for her to be making up some of these allegations against Kobe Bryant. KAGEN: How strong would her civil case be without the criminal charges, though?

COFFEY: Well, the criminal makes it much easier. That's why a lot of lawyers tell an alleged victim, get the guy successfully prosecuted, then worry about the civil case.

But given the way the criminal case is going, I think they want that over with. And a civil case can still be successful. As we know, it's a lower standard of proof. That's important.

And by the way, let's face it, Daryn, it is much easier to settle a civil case like this, especially for somebody who's got lots and lots of Monday, than it is to make a criminal case go away.

KAGEN: And also to make a comment of "no comment" to make that part of the deal if that's how it turns out.

Now despite how this case turns out going, Kendall, what about how this court has handled this case and the message to potential rape victims out there that really you are not safe and you can't put yourself in the hands of this court?

COFFEY: Well, I think there's going to be short-term damage, Daryn. I mean, there's been blunder bolt after another shattering the privacy expectations of an alleged victim; and that message has been heard around the country.

Hopefully, people will understand that this is an extraordinary case with what courts have described as a media frenzy. And this kind of thing is completely aberrational, and that the system really does work hard to protect the rights of alleged rape victims.

But let's face it, there has been some damage. And the Kobe Bryant case is going to be talked about by, or thought about, by a lot of people who are trying to decide whether to report rape allegations to the authorities.

KAGEN: Kendall Coffey, thanks for talking about it with us today.

COFFEY: Thanks, Daryn.

KAGEN: Good to see you, Kendall.

Day three of a military hearing for a soldier featured prominently in the Iraqi prison abusive photos. A series of witnesses have disputed Lynndie England's contention that she was only following orders to soften up prisoners.

One investigator told the court today that the abuse happened all the time. Photographs show prisoners in humiliating and sexually explicit poses.

The hearing is expected to conclude tomorrow. The court will decide whether she'll face a full court-martial on 19 proposed counts. Well, say it loud. They say they are fat and they are proud. One group is literally throwing its weight around hoping to change people's perception. That's up next.

And later, remember hanging Chad, angry voters' bitter accusations? Some in Florida say it will be all different this time around. They think it's going to be worse.

The controversy in Florida coming up.

(COMMERCIAL BREAK)

KAGAN: All right. Let's check in on weather. Rob Marciano is with us today doing just that. Rob, some cool fronts in some places in the beginning of August.

ROB MARCIANO, CNN METEOROLOGIST: Yes, cooler air is sliding down.

(WEATHER BREAK)

MARCIANO: So, they'll get a little slice of cool air as well. And it will be welcome for folks who have been sweating this August. That's for sure.

KAGAN: A welcome relief.

MARCIANO: Yes.

KAGAN: Rob, thank you for that.

MARCIANO: You bet.

KAGAN: A group that's called the National Association to Advance Fat Acceptance is holding it's 35th annual convention in Newark this week.

Frank Zapola of our affiliate WWOR has a look.

(BEGIN VIDEOTAPE)

MARILYN WANN, NAAFA: I think thin is beautiful; I also think fat is beautiful. I think everybody is beautiful.

FRANK ZAPOLA, WWOR CORRESPONDENT (voice-over): Marilyn Wann and so many of her fellow activists don't want your pity. They're comfortable in their own skin and want everyone to get over it.

Wann has even written a book about her coming out fat, as she calls it, called "Fat, So?"

WANN: What I've learned since I came out as a fat person 10 years ago, is that it's much easier to change my world than it is to change my thighs.

ZAPOLA: And that is what this four-day get together in Newark is all about.

(on camera) And the opening of this conference included a session called sharing our words.

UNIDENTIFIED NAAFA MEMBER: These hips are mighty hips!

ZAPOLA: This woman, through poem, celebrated her expanding hips.

While the so-called fat freedom singers sang about making their mark in the world. This is the kind of world they say Americans are force-fed and the young suffer the most.

ANDI BRAY, NAAFA: Think it's unfortunate that that's not only what I see, but what teenagers and children see and lots of others -- anorexia problems in grammar school. And people are trying to be what their bodies are not supposed to be.

ZAPOLA: Or not paying attention to the person inside.

ELLEN MONROE, NAAFA: Try and meet the person and get to know them first and watch what they eat. A lot of times they may eat even less than you do.

(END VIDEOTAPE)

KAGAN: And thanks to WWOR. As part of the week celebration of size, the Body Liberation Movement will rally in a New York park tomorrow. Hundreds of overweight people will dance the hokey pokey and like the woman in that piece said, will come out as fat.

Controversy over voting machines, disenfranchised voters and accusations of bias -- now stop us if you think you've heard this one before. Florida is gearing up, could it be for a repeat of 2000?

We're going to take a closer look at that when CNN LIVE TODAY returns.

(COMMERCIAL BREAK)

KAGAN: I'm Daryn Kagan in Atlanta. Let's check what's happening now in the news for this Thursday, August 5th.

Federal agents raided a mosque today in Albany, New York. Two leaders of the mosque are jailed this morning, accused in a sting about money laundering to buy a shoulder-fired missile from an undercover agent.

New York Governor George Pataki will discuss the raid in about 15 minutes. And a justice department news conference is scheduled for 1:30 p.m. Eastern.

Live coverage on CNN.

Defense and intelligence sources tell CNN that imagery from spy satellites indicates al Qaeda training camps along the Afghan, Pakistani boarder are operational once again. One official says there's nothing to suggest the activity at the camps is linked to the higher terror alert in three U.S. cities.

Conjoined twins from the Philippines are reported strong and stable after 17 hours of separation surgery in New York after it ended early this morning. The 2-year-old boys were fused at the top of their heads.

And a Los Angeles man says she has an alibi and was wrongly accused of murder. His defense attorney found a shot of him on a videotape at a Dodgers game. The man is new suing the city.

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

Both presidential candidates have jam-packed schedules again today. Let's go to Judy Woodruff in Washington for our voter alert.

Judy, apparently they're not blocks apart at the same time today.

JUDY WOODRUFF, CNN ANCHOR: For a change, they are not, Daryn, thanks very much.

But both President Bush and John Kerry have already finished events here in Washington today. And both of them have a long day ahead. The president signed a $417 billion defense spending bill.

In about 90 minutes, he holds an "Ask President Bush" event in Columbus, Ohio, then he heads for Saginaw, Michigan.

Senator Kerry gave a speech and took questions at a conference of minority journalists. This afternoon, he and his running mate, John Edwards, reunite in Missouri.

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