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CNN Live At Daybreak

U.S. Alleges Al Qaeda Training Camps Sprouting Up Again; Latest Developments in Military Court Hearing for Lynndie England

Aired August 06, 2004 - 06:00   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.


CAROL LIN, CNN ANCHOR: A terror suspect arrested in a raid this week in Britain could have been in New York as early as 2001.
This is DAYBREAK for Friday, August 6.

Good morning.

From the CNN Global Headquarters in Atlanta, I'm Carol Lin in today for Carol Costello.

Now in the news, CNN has learned that a suspected al Qaeda terrorist now in custody in Britain may have been a key player in planning future attacks against the U.S. Eisa al-Hindi is believed to have been in New York in early 2001 to collect intelligence on possible targets.

In less than three hours, President Bush speaks at the Unity Conference for minority journalists in Washington. John Kerry addressed the convention on Thursday. After his speech, the president heads to New Hampshire.

And the government may wrap up its case today in the hearing against Private Lynndie England. An intelligence analyst testified that military intelligence agents took part in the abuse of prisoners at Abu Ghraib Prison.

Two and a half hours from now, the Labor Department releases July's job numbers. Analysts expect the unemployment rate to stay steady at 5.6 percent -- 5.6 percent, it's good to have a job -- Chad.

CHAD MYERS, CNN METEOROLOGIST: It certainly is.

Good morning, Carol.

(WEATHER REPORT)

LIN: Well, there are several new developments this morning on the fight against terrorism. In Saudi Arabia, for example, security forces have arrested a top al Qaeda leader on their most wanted terror list. An interior ministry official identifies him as a cleric who gives religious justification for al Qaeda's activities.

Al Qaeda and other terror groups have targeted non-Arabs in the kingdom in an effort to undermine the economy.

And some alarming allegations about a man arrested in a roundup of al Qaeda suspects in Britain. Law enforcement sources tell CNN they believe the man was in the New York area in early 2001 casing financial buildings that officials recently identified as possible terror targets.

Now we're going to move on to Pakistan. There are signs that terrorist training camps may have sprouted again. Sources say aerial surveillance gathered last month indicates vehicles and people recently moved into areas known to be al Qaeda training sites along Pakistan's border with Afghanistan.

And closer to home, in Albany, New York, two mosque leaders are being held without bond this morning after being arrested in an FBI sting operation. They are charged with conspiracy and trying to launder money from the sale of a shoulder-fired missile, which could be used in a terrorist act.

And late Thursday, British police arrested a British citizen wanted on terrorism charges in a warrant issued by federal prosecutors in Connecticut.

To London now and to CNN's Diana Muriel.

(BEGIN VIDEO TAPE)

DIANA MURIEL, CNN CORRESPONDENT: A court hearing in central London today following the arrest of a 30-year-old man, Babar Ahmad, in central London on Thursday. The court hearing is at the request of the U.S. authorities, who have accused Babar Ahmad of trying to use the Internet and e-mail to raise funds to finance violence and murder in Chechnya and Afghanistan.

Ahmad was arrested in central London on Thursday at 4:00 in the afternoon by officers from the Metropolitan Police Extradition and International Assistance Unit. He gave an address in Tooting, in south London.

Officers from the anti-terrorist branch are searching three residential premises and one office premises in southwest London on behalf of the U.S. authorities. It's understood that Babar Ahmad is wanted by the FBI in Connecticut and the U.S. attorney, Kevin O'Connor, is expected to give a press conference in Connecticut later this morning.

Diana Muriel, CNN, London.

(END VIDEO TAPE)

LIN: Now overhead, the satellites, the reconnaissance planes and the drones that are watching the wild frontier between Pakistan and Afghanistan. And lately they are seeing a lot of movement, people, vehicles, at the sites of old al Qaeda training camps. Are those sites being reactivated?

Our Ash-Har Quraishi is live from Islamabad -- good morning, Ash- Har.

ASH-HAR QURAISHI, CNN CORRESPONDENT: Good morning, Carol.

Well, that's what U.S. officials are telling CNN. However, here in Pakistan we're getting an outright rejection of that assertion. I just got off the phone with a senior military official, who says that it would be illogical for training camps to be rejuvenated in these areas. He cited a heavy contingency of security forces in the area.

Now, Pakistan has deployed a large number of troops along its western border since the war on terrorism began. And particularly in the last year, they've really moved into the tribal areas, where many of these suspected al Qaeda fighters and remnants of the Taliban have believed to have been hiding over the last few years or so.

So now we're told by military officials that they do believe that some suspected al Qaeda fighters may be in these areas and that they are aggressively pursuing them. But, of course, they are rejecting the assertions from our sources in the U.S. that these training camps may be reopening in those areas. Although we must know that Pakistani authorities have never acknowledged the existence of training camps anywhere in Pakistan -- Carol.

LIN: Thanks very much, Ash-Har.

We're going to have more on this with our military intelligence analyst, Ken Robinson, in this hour.

In the meantime, we move on to New York, where we were talking about two leaders of a mosque in Albany being held without bail now on terror related charges. According to the FBI, the men tried to launder money from the sale of a shoulder-fired missile launcher. At least they agreed to do so to an undercover agent.

A teacher at the mosque defended the men, saying the Muslim- American community should not be painted with a broad brush.

(BEGIN VIDEO CLIP)

FAISAL AHMAD, MOSQUE TEACHER: As the investigation goes forward, let us follow the due process of law and let not some actions of some individuals be used to brush an entire community as terrorists.

(END VIDEO CLIP)

LIN: Authorities say the men were caught in a year long sting operation.

You can get more details on the new threats, the war on terror. You just go to our Web site, cnn.com, for a special report on fighting terrorism.

Another familiar face in the prison abuse scandal will be in a military courtroom today. Specialist Jeremy Sivits is scheduled to testify in the hearing for Private Lynndie England. Now, he's the only soldier to face a court martial so far.

CNN's Bob Franken is in Fort Bragg, North Carolina covering the England trial and he joins us on the telephone with the latest -- Bob, this is the man who cut a deal with investigators.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Right. And the one thing that they emphasize here is that because of the nature of these hearings, he may at the last minute be pulled as a witness. The attorneys for all the sides decide on whether they've, in effect, made their case. Sivits is a bit difficult to get on because of his circumstance.

But assuming he does testify, as you point out, he's the man who cut a deal and has made himself available for that deal to testify against the fellow members of that same military unit. And, of course, Lynndie England is charged with 19 charges. Several of them have to do with the alleged abuse that happened at Abu Ghraib that became such a worldwide controversy.

LIN: Now, what did he base his deal on? What was he able to provide investigators?

FRANKEN: Well, he was there. He was able to give the insider's view, so to speak, to -- is able to relay conversations they may have had before they did some of the things they're charged with doing and after, and any efforts they may have made to try and keep it quiet. So it's not uncommon that the prosecutors would work a deal with somebody like that, who they don't consider the leader.

LIN: All right. Is any of the other defendants going to be in court to hear his testimony...

FRANKEN: First...

LIN: ... for example, Lynndie England or Charles Graner, the others accused?

FRANKEN: Well, Lynndie England, of course, is here. This is a hearing about her case. He, Jeremy Sivits, if he testifies, will be testifying by phone, as have most of the other witnesses. He is being held in Germany and they would put up a phone hookup.

LIN: All right, thanks very much, Bob.

We'll be looking forward to your reporting throughout the day on this case.

More and more Americans becoming the victims of fraud. At 15 after, from magazine subscriptions to phone company switching, how innocent victims are being taken.

And dramatic developments in the murder trial of Scott Peterson. At 20 after, why the judge halted court proceedings Thursday.

But first, here's a look at what else is making news this Friday morning.

(COMMERCIAL BREAK)

LIN: Record high oil prices grease the skids on Wall Street. The Dow Jones opens this morning below 10000, at 9963. That is down 63 -- 163 points. The Nasdaq opens at 1821, down 33. And the S&P 500 opens at 1080, down almost 18.

But the day is still young, so we're going to get a little business buzz.

If you've been a fraud victim, you aren't alone.

Carrie Lee reports.

She's at the Nasdaq market site in Times Square -- good morning, Carrie.

CARRIE LEE, CNN CORRESPONDENT: Hi, Carol.

Good morning to you.

The Federal Trade Commission reporting on its first ever consumer fraud survey, finding that over one in 10 Americans fell victim to consumer fraud last year. This represents about 25 million people, or 11.2 percent of the U.S. population.

Now, the most common scams revolved around credit, people signing up for illegal credit repair services, for example, that didn't improve their credit scores; also advanced fee loans that charge a fee for loans or credit cards that never arrive. These are some of the most common scams.

People struggling with a heavy debt load and those who expected their incomes would rise significantly were the most likely to fall victim to fraud. And part of the problem, Carol, only 8 percent of people who had been scammed reported their problems to authorities. Obviously, that limits the information and so perhaps in an indirect way contributing to the problem. So if you are a victim of scam, always a good idea to try to contact authorities and straighten things out.

LIN: Hey, Carrie, a tough day on Wall Street yesterday.

What are the futures looking like for today?

LEE: It certainly was a tough day yesterday. This morning, Carol, things looking pretty flat right now for the open. Of course, it's all going to depend on the big July jobs report we get at 8:30 Eastern. So an hour before the markets open. The unemployment rate expected to hold steady at 5.6 percent; 243,000 jobs expected to be added to U.S. payrolls. One stock to watch, Pixar Animation Studios. The company did very well in the recent quarter on international DVD sales of "Finding Nemo," handily beating the Wall Street profit estimate. The stock was gaining ground late last night.

LIN: Oh, I love that movie.

LEE: There's a look at the fish. It keeps plugging away. It keeps making money for this company. It's going to be a tough one to beat, the next movie that comes out of this company. LIN: Yes.

Well, we've got to remember, the fish with one fin, you know?

LEE: That's right.

LIN: And who's the hero?

LEE: That's right.

LIN: So, you never know.

LEE: Yes, now hitting the international scene.

LIN: Thanks, Carrie.

LEE: OK.

LIN: Your news, money, weather and sports.

It's now 14 past the hour and here's what's new this morning.

The Bush administration says North Korea is carrying out supposedly banned weapons tests inside Iran. An administration official says the development of ballistic missile technology in Iran is actually being done for North Korea.

And searches are under way in the Northeast U.S. as part of the investigation into the deadly anthrax attacks in 2001. The FBI and postal inspectors are in western New York and Ocean County, New Jersey. Five people died after being exposed to the poison.

In money, Saturn is recalling almost all of its SUVs due to failures in roll-over tests. More than 245,000 Saturn SUVs are involved. Suspension problems caused the vehicles to fail roll-over tests.

And in culture, Olympic sports on your cell phone? European broadcasters are offering live coverage of the Summer Games on the Internet. But here in the U.S., coverage will only be available on a tape delay basis.

And in sports, is Michael Vick hurt again? The Atlanta Falcons' quarterback suffered an apparent hamstring injury during practice. But Vic says it won't keep him off the field. He's already missed 11 games last season after breaking a bone in the same leg.

Chad Myers.

MYERS: He'll work through that.

LIN: You'd be running on a broken leg, wouldn't you? You'd be coming in...

MYERS: No.

LIN: No? OK.

MYERS: No.

LIN: Smart man.

MYERS: No. I'd stay home with a broken leg.

Good morning, Carol.

(WEATHER REPORT)

LIN: Is the Scott Peterson trial over? Prosecutors have new evidence that could change the case dramatically and even bring the trial to an early end.

CNN's Ted Rowlands has more on the bombshell from Redwood City, California.

(BEGIN VIDEO TAPE)

08050003.v98

(END VIDEO TAPE)

LIN: They're fast, they're hip, they're extreme. Pushing sports to an outrageous level -- our sports guru, Chris Cotter, is right here next to talk about the X Games, so stay right there.

(COMMERCIAL BREAK)

LIN: All right, you know, it's quite possible you've never heard of the X Games. But it's 10 years old and it's an extreme sport championship and it's brought along superstars like Tony Hawke and Dave Mirra.

Still no clue? Surly our audience has to be hipper than that.

CNN's sports contributor Chris Cotter here to talk about that.

Chad's back up on the set.

MYERS: I'm back up.

CHRIS COTTER, CNN SPORTS CONTRIBUTOR: Hey, thanks.

It's good to be back.

Yes, the X Games, 10 years now and who would have thunk it?

MYERS: And how many broken bones?

COTTER: Lots. And lots, you know, lots of trips to the emergency room for parents all around the country.

MYERS: Oh, man. Oh, sure. COTTER: Because that's one of the big things about it is the fact that you've got, you know, it's so popular because all the kids can do it. You know, it's BMX, it's skateboarding, it's inline skating. And all the kids see this on TV and they say hey, I want to go out there and ride my bike or I want to get a skateboard. And so that's one thing that's helped it grow is that you can actually do all the things that you see the professionals doing on the screen.

MYERS: And get hurt at it.

COTTER: And definitely get hurt at it, which is...

MYERS: Yes.

COTTER: But, you know, look, we have so far to grow on it.

MYERS: Look at this. Is this the one? This is the one -- off, flipped over...

LIN: Crazy!

MYERS: ... grabbed the bike and was back on it again.

COTTER: Amazing, last night.

LIN: How do you practice something like that? Like where do you go to...

MYERS: I'm not sure you practice that.

COTTER: Well, that's one of the things that these competitors say. It's, hey, every year the envelope is being pushed even further. We've got to try new tricks just to get the crowd going and to be able to get the high scores to win. So it gets riskier and riskier every year.

But look at the crowds, too. They're at the Staples Center in Los Angeles.

LIN: What's the prize for something like that?

COTTER: I have no idea how much they make, but I know they make a lot more than they did 10 years ago.

MYERS: Oh, sure.

COTTER: You know, it's the guys like Tony Hawke. He's a multi- million dollar, you know, businessman right now. He's a father, a family man, you know, and this is -- he's not just one of the punks you see riding his skateboard down at the mall on weekends.

MYERS: Yes, in a drained out pool.

COTTER: Yes, this guy is a real professional.

MYERS: Yes. COTTER: And that's another one of the things about the X Games that makes it so interesting 10 years later is that you've had guys like that legitimize the sport. And Dave Mirra, you mentioned before, and Travis Pastrana and some of these other names that are, you know, they're not just kids now. They are adults. They are professionals and they treat it like a profession and they're businessmen, too.

MYERS: Now, is this something that parents should be watching with their kids, to make sure that the kids don't try some of these things at home?

COTTER: Well, I think they need to be conscious of it, certainly, you know, when the kid's out there building a ramp. If he spends a year and a half out in the garage and you don't know what he's doing, that's certainly something to keep an eye on. But, you know, the helmets, that's one thing that we certainly see the professionals wearing. And that's the biggest thing, wear the protective gear, the helmets and the pads and that kind of stuff. And the pros do a really good job of promoting that by wearing it themselves.

LIN: How do these guys start?

COTTER: They start as kids. I mean they start as kids riding skateboards, riding weight boards or surf boards. Surfing is now a part of the X Games, you know, and that's how they get it going.

LIN: I mean that's not just skateboarding. That's like, that's taking flight.

COTTER: And there -- well, there are parks around the country...

LIN: Look at that. He's riding the rim.

MYERS: Yes.

COTTER: You know, there are parks around the country that have ramps like this that you can go and practice.

MYERS: I was just in Killington, Vermont, and, you know, and it's the -- you know, it's got the big pipe, the tube for all the winter activities.

COTTER: Yes.

MYERS: Now they have built a summer park, too, so the kids can get out there on their skateboards and keep going.

COTTER: Like I said, you start in the mall on the weekends and then when you start the, you know, your skills they come through...

LIN: Wow!

MYERS: Wow! That's just...

LIN: It's amazing, because he's not even... (COMMERCIAL BREAK)

LIN: Look at that! How did he do that? How can he flip -- he's not even strapped to the board and he can get back on it.

COTTER: You're asking the wrong guy. I would be face planted for sure if I tried to do that.

LIN: That's amazing.

MYERS: It's good stuff.

COTTER: It is unbelievable.

LIN: Yes.

All right, Chris, thanks so much.

COTTER: You're very welcome.

LIN: Cool stuff.

All right, so what happened to John Kerry when he was in Vietnam? Well, one group actually has an ad and is claiming he lied about a particular incident. Well, did it actually happen? What the Kerry camp and the Bush camp have to say about that. We're going to talk about that.

And California courts are preparing for potential terrorist attacks. So amid all the recent terror reports, how ready are we now if the real thing were actually to occur? I'm going to talk with our security analyst next.

(COMMERCIAL BREAK)

LIN: Good morning.

From the CNN Global Headquarters in Atlanta I'm Carol Lin.

Now in the news, one of a dozen terror suspects arrested this week in Britain may have scouted financial institutions in the U.S. for possible attacks. A law enforcement source says in 2001 al Qaeda leader Eisa al-Hindi was in three of the buildings named in this week's terror alert for financial institutions.

And the government may wrap up its case today in the hearing against Private Lynndie England. An intelligence analyst testified that military intelligence agents took part in the abuse of prisoners at Abu Ghraib Prison.

And hearings continue later today for terror suspects at the U.S. prison camp at Guantanamo Bay, Cuba. On Thursday, U.S. officials, for the first time, let reporters sit in as prisoners challenged their detentions at a military tribunal.

And get ready for more pain at the pump. Oil prices shot to new highs again today this morning on world markets. U.S. light crude in New York at $44.73 a barrel.

Good morning again -- Chad.

MYERS: Good morning, Carol.

I think the date on the bottom of our screen is wrong.

LIN: Yes?

MYERS: It should say October 1.

LIN: Why?

MYERS: Because this cold front coming down here, this shouldn't happen until October.

(WEATHER REPORT)

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Aired August 6, 2004 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL LIN, CNN ANCHOR: A terror suspect arrested in a raid this week in Britain could have been in New York as early as 2001.
This is DAYBREAK for Friday, August 6.

Good morning.

From the CNN Global Headquarters in Atlanta, I'm Carol Lin in today for Carol Costello.

Now in the news, CNN has learned that a suspected al Qaeda terrorist now in custody in Britain may have been a key player in planning future attacks against the U.S. Eisa al-Hindi is believed to have been in New York in early 2001 to collect intelligence on possible targets.

In less than three hours, President Bush speaks at the Unity Conference for minority journalists in Washington. John Kerry addressed the convention on Thursday. After his speech, the president heads to New Hampshire.

And the government may wrap up its case today in the hearing against Private Lynndie England. An intelligence analyst testified that military intelligence agents took part in the abuse of prisoners at Abu Ghraib Prison.

Two and a half hours from now, the Labor Department releases July's job numbers. Analysts expect the unemployment rate to stay steady at 5.6 percent -- 5.6 percent, it's good to have a job -- Chad.

CHAD MYERS, CNN METEOROLOGIST: It certainly is.

Good morning, Carol.

(WEATHER REPORT)

LIN: Well, there are several new developments this morning on the fight against terrorism. In Saudi Arabia, for example, security forces have arrested a top al Qaeda leader on their most wanted terror list. An interior ministry official identifies him as a cleric who gives religious justification for al Qaeda's activities.

Al Qaeda and other terror groups have targeted non-Arabs in the kingdom in an effort to undermine the economy.

And some alarming allegations about a man arrested in a roundup of al Qaeda suspects in Britain. Law enforcement sources tell CNN they believe the man was in the New York area in early 2001 casing financial buildings that officials recently identified as possible terror targets.

Now we're going to move on to Pakistan. There are signs that terrorist training camps may have sprouted again. Sources say aerial surveillance gathered last month indicates vehicles and people recently moved into areas known to be al Qaeda training sites along Pakistan's border with Afghanistan.

And closer to home, in Albany, New York, two mosque leaders are being held without bond this morning after being arrested in an FBI sting operation. They are charged with conspiracy and trying to launder money from the sale of a shoulder-fired missile, which could be used in a terrorist act.

And late Thursday, British police arrested a British citizen wanted on terrorism charges in a warrant issued by federal prosecutors in Connecticut.

To London now and to CNN's Diana Muriel.

(BEGIN VIDEO TAPE)

DIANA MURIEL, CNN CORRESPONDENT: A court hearing in central London today following the arrest of a 30-year-old man, Babar Ahmad, in central London on Thursday. The court hearing is at the request of the U.S. authorities, who have accused Babar Ahmad of trying to use the Internet and e-mail to raise funds to finance violence and murder in Chechnya and Afghanistan.

Ahmad was arrested in central London on Thursday at 4:00 in the afternoon by officers from the Metropolitan Police Extradition and International Assistance Unit. He gave an address in Tooting, in south London.

Officers from the anti-terrorist branch are searching three residential premises and one office premises in southwest London on behalf of the U.S. authorities. It's understood that Babar Ahmad is wanted by the FBI in Connecticut and the U.S. attorney, Kevin O'Connor, is expected to give a press conference in Connecticut later this morning.

Diana Muriel, CNN, London.

(END VIDEO TAPE)

LIN: Now overhead, the satellites, the reconnaissance planes and the drones that are watching the wild frontier between Pakistan and Afghanistan. And lately they are seeing a lot of movement, people, vehicles, at the sites of old al Qaeda training camps. Are those sites being reactivated?

Our Ash-Har Quraishi is live from Islamabad -- good morning, Ash- Har.

ASH-HAR QURAISHI, CNN CORRESPONDENT: Good morning, Carol.

Well, that's what U.S. officials are telling CNN. However, here in Pakistan we're getting an outright rejection of that assertion. I just got off the phone with a senior military official, who says that it would be illogical for training camps to be rejuvenated in these areas. He cited a heavy contingency of security forces in the area.

Now, Pakistan has deployed a large number of troops along its western border since the war on terrorism began. And particularly in the last year, they've really moved into the tribal areas, where many of these suspected al Qaeda fighters and remnants of the Taliban have believed to have been hiding over the last few years or so.

So now we're told by military officials that they do believe that some suspected al Qaeda fighters may be in these areas and that they are aggressively pursuing them. But, of course, they are rejecting the assertions from our sources in the U.S. that these training camps may be reopening in those areas. Although we must know that Pakistani authorities have never acknowledged the existence of training camps anywhere in Pakistan -- Carol.

LIN: Thanks very much, Ash-Har.

We're going to have more on this with our military intelligence analyst, Ken Robinson, in this hour.

In the meantime, we move on to New York, where we were talking about two leaders of a mosque in Albany being held without bail now on terror related charges. According to the FBI, the men tried to launder money from the sale of a shoulder-fired missile launcher. At least they agreed to do so to an undercover agent.

A teacher at the mosque defended the men, saying the Muslim- American community should not be painted with a broad brush.

(BEGIN VIDEO CLIP)

FAISAL AHMAD, MOSQUE TEACHER: As the investigation goes forward, let us follow the due process of law and let not some actions of some individuals be used to brush an entire community as terrorists.

(END VIDEO CLIP)

LIN: Authorities say the men were caught in a year long sting operation.

You can get more details on the new threats, the war on terror. You just go to our Web site, cnn.com, for a special report on fighting terrorism.

Another familiar face in the prison abuse scandal will be in a military courtroom today. Specialist Jeremy Sivits is scheduled to testify in the hearing for Private Lynndie England. Now, he's the only soldier to face a court martial so far.

CNN's Bob Franken is in Fort Bragg, North Carolina covering the England trial and he joins us on the telephone with the latest -- Bob, this is the man who cut a deal with investigators.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Right. And the one thing that they emphasize here is that because of the nature of these hearings, he may at the last minute be pulled as a witness. The attorneys for all the sides decide on whether they've, in effect, made their case. Sivits is a bit difficult to get on because of his circumstance.

But assuming he does testify, as you point out, he's the man who cut a deal and has made himself available for that deal to testify against the fellow members of that same military unit. And, of course, Lynndie England is charged with 19 charges. Several of them have to do with the alleged abuse that happened at Abu Ghraib that became such a worldwide controversy.

LIN: Now, what did he base his deal on? What was he able to provide investigators?

FRANKEN: Well, he was there. He was able to give the insider's view, so to speak, to -- is able to relay conversations they may have had before they did some of the things they're charged with doing and after, and any efforts they may have made to try and keep it quiet. So it's not uncommon that the prosecutors would work a deal with somebody like that, who they don't consider the leader.

LIN: All right. Is any of the other defendants going to be in court to hear his testimony...

FRANKEN: First...

LIN: ... for example, Lynndie England or Charles Graner, the others accused?

FRANKEN: Well, Lynndie England, of course, is here. This is a hearing about her case. He, Jeremy Sivits, if he testifies, will be testifying by phone, as have most of the other witnesses. He is being held in Germany and they would put up a phone hookup.

LIN: All right, thanks very much, Bob.

We'll be looking forward to your reporting throughout the day on this case.

More and more Americans becoming the victims of fraud. At 15 after, from magazine subscriptions to phone company switching, how innocent victims are being taken.

And dramatic developments in the murder trial of Scott Peterson. At 20 after, why the judge halted court proceedings Thursday.

But first, here's a look at what else is making news this Friday morning.

(COMMERCIAL BREAK)

LIN: Record high oil prices grease the skids on Wall Street. The Dow Jones opens this morning below 10000, at 9963. That is down 63 -- 163 points. The Nasdaq opens at 1821, down 33. And the S&P 500 opens at 1080, down almost 18.

But the day is still young, so we're going to get a little business buzz.

If you've been a fraud victim, you aren't alone.

Carrie Lee reports.

She's at the Nasdaq market site in Times Square -- good morning, Carrie.

CARRIE LEE, CNN CORRESPONDENT: Hi, Carol.

Good morning to you.

The Federal Trade Commission reporting on its first ever consumer fraud survey, finding that over one in 10 Americans fell victim to consumer fraud last year. This represents about 25 million people, or 11.2 percent of the U.S. population.

Now, the most common scams revolved around credit, people signing up for illegal credit repair services, for example, that didn't improve their credit scores; also advanced fee loans that charge a fee for loans or credit cards that never arrive. These are some of the most common scams.

People struggling with a heavy debt load and those who expected their incomes would rise significantly were the most likely to fall victim to fraud. And part of the problem, Carol, only 8 percent of people who had been scammed reported their problems to authorities. Obviously, that limits the information and so perhaps in an indirect way contributing to the problem. So if you are a victim of scam, always a good idea to try to contact authorities and straighten things out.

LIN: Hey, Carrie, a tough day on Wall Street yesterday.

What are the futures looking like for today?

LEE: It certainly was a tough day yesterday. This morning, Carol, things looking pretty flat right now for the open. Of course, it's all going to depend on the big July jobs report we get at 8:30 Eastern. So an hour before the markets open. The unemployment rate expected to hold steady at 5.6 percent; 243,000 jobs expected to be added to U.S. payrolls. One stock to watch, Pixar Animation Studios. The company did very well in the recent quarter on international DVD sales of "Finding Nemo," handily beating the Wall Street profit estimate. The stock was gaining ground late last night.

LIN: Oh, I love that movie.

LEE: There's a look at the fish. It keeps plugging away. It keeps making money for this company. It's going to be a tough one to beat, the next movie that comes out of this company. LIN: Yes.

Well, we've got to remember, the fish with one fin, you know?

LEE: That's right.

LIN: And who's the hero?

LEE: That's right.

LIN: So, you never know.

LEE: Yes, now hitting the international scene.

LIN: Thanks, Carrie.

LEE: OK.

LIN: Your news, money, weather and sports.

It's now 14 past the hour and here's what's new this morning.

The Bush administration says North Korea is carrying out supposedly banned weapons tests inside Iran. An administration official says the development of ballistic missile technology in Iran is actually being done for North Korea.

And searches are under way in the Northeast U.S. as part of the investigation into the deadly anthrax attacks in 2001. The FBI and postal inspectors are in western New York and Ocean County, New Jersey. Five people died after being exposed to the poison.

In money, Saturn is recalling almost all of its SUVs due to failures in roll-over tests. More than 245,000 Saturn SUVs are involved. Suspension problems caused the vehicles to fail roll-over tests.

And in culture, Olympic sports on your cell phone? European broadcasters are offering live coverage of the Summer Games on the Internet. But here in the U.S., coverage will only be available on a tape delay basis.

And in sports, is Michael Vick hurt again? The Atlanta Falcons' quarterback suffered an apparent hamstring injury during practice. But Vic says it won't keep him off the field. He's already missed 11 games last season after breaking a bone in the same leg.

Chad Myers.

MYERS: He'll work through that.

LIN: You'd be running on a broken leg, wouldn't you? You'd be coming in...

MYERS: No.

LIN: No? OK.

MYERS: No.

LIN: Smart man.

MYERS: No. I'd stay home with a broken leg.

Good morning, Carol.

(WEATHER REPORT)

LIN: Is the Scott Peterson trial over? Prosecutors have new evidence that could change the case dramatically and even bring the trial to an early end.

CNN's Ted Rowlands has more on the bombshell from Redwood City, California.

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08050003.v98

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LIN: They're fast, they're hip, they're extreme. Pushing sports to an outrageous level -- our sports guru, Chris Cotter, is right here next to talk about the X Games, so stay right there.

(COMMERCIAL BREAK)

LIN: All right, you know, it's quite possible you've never heard of the X Games. But it's 10 years old and it's an extreme sport championship and it's brought along superstars like Tony Hawke and Dave Mirra.

Still no clue? Surly our audience has to be hipper than that.

CNN's sports contributor Chris Cotter here to talk about that.

Chad's back up on the set.

MYERS: I'm back up.

CHRIS COTTER, CNN SPORTS CONTRIBUTOR: Hey, thanks.

It's good to be back.

Yes, the X Games, 10 years now and who would have thunk it?

MYERS: And how many broken bones?

COTTER: Lots. And lots, you know, lots of trips to the emergency room for parents all around the country.

MYERS: Oh, man. Oh, sure. COTTER: Because that's one of the big things about it is the fact that you've got, you know, it's so popular because all the kids can do it. You know, it's BMX, it's skateboarding, it's inline skating. And all the kids see this on TV and they say hey, I want to go out there and ride my bike or I want to get a skateboard. And so that's one thing that's helped it grow is that you can actually do all the things that you see the professionals doing on the screen.

MYERS: And get hurt at it.

COTTER: And definitely get hurt at it, which is...

MYERS: Yes.

COTTER: But, you know, look, we have so far to grow on it.

MYERS: Look at this. Is this the one? This is the one -- off, flipped over...

LIN: Crazy!

MYERS: ... grabbed the bike and was back on it again.

COTTER: Amazing, last night.

LIN: How do you practice something like that? Like where do you go to...

MYERS: I'm not sure you practice that.

COTTER: Well, that's one of the things that these competitors say. It's, hey, every year the envelope is being pushed even further. We've got to try new tricks just to get the crowd going and to be able to get the high scores to win. So it gets riskier and riskier every year.

But look at the crowds, too. They're at the Staples Center in Los Angeles.

LIN: What's the prize for something like that?

COTTER: I have no idea how much they make, but I know they make a lot more than they did 10 years ago.

MYERS: Oh, sure.

COTTER: You know, it's the guys like Tony Hawke. He's a multi- million dollar, you know, businessman right now. He's a father, a family man, you know, and this is -- he's not just one of the punks you see riding his skateboard down at the mall on weekends.

MYERS: Yes, in a drained out pool.

COTTER: Yes, this guy is a real professional.

MYERS: Yes. COTTER: And that's another one of the things about the X Games that makes it so interesting 10 years later is that you've had guys like that legitimize the sport. And Dave Mirra, you mentioned before, and Travis Pastrana and some of these other names that are, you know, they're not just kids now. They are adults. They are professionals and they treat it like a profession and they're businessmen, too.

MYERS: Now, is this something that parents should be watching with their kids, to make sure that the kids don't try some of these things at home?

COTTER: Well, I think they need to be conscious of it, certainly, you know, when the kid's out there building a ramp. If he spends a year and a half out in the garage and you don't know what he's doing, that's certainly something to keep an eye on. But, you know, the helmets, that's one thing that we certainly see the professionals wearing. And that's the biggest thing, wear the protective gear, the helmets and the pads and that kind of stuff. And the pros do a really good job of promoting that by wearing it themselves.

LIN: How do these guys start?

COTTER: They start as kids. I mean they start as kids riding skateboards, riding weight boards or surf boards. Surfing is now a part of the X Games, you know, and that's how they get it going.

LIN: I mean that's not just skateboarding. That's like, that's taking flight.

COTTER: And there -- well, there are parks around the country...

LIN: Look at that. He's riding the rim.

MYERS: Yes.

COTTER: You know, there are parks around the country that have ramps like this that you can go and practice.

MYERS: I was just in Killington, Vermont, and, you know, and it's the -- you know, it's got the big pipe, the tube for all the winter activities.

COTTER: Yes.

MYERS: Now they have built a summer park, too, so the kids can get out there on their skateboards and keep going.

COTTER: Like I said, you start in the mall on the weekends and then when you start the, you know, your skills they come through...

LIN: Wow!

MYERS: Wow! That's just...

LIN: It's amazing, because he's not even... (COMMERCIAL BREAK)

LIN: Look at that! How did he do that? How can he flip -- he's not even strapped to the board and he can get back on it.

COTTER: You're asking the wrong guy. I would be face planted for sure if I tried to do that.

LIN: That's amazing.

MYERS: It's good stuff.

COTTER: It is unbelievable.

LIN: Yes.

All right, Chris, thanks so much.

COTTER: You're very welcome.

LIN: Cool stuff.

All right, so what happened to John Kerry when he was in Vietnam? Well, one group actually has an ad and is claiming he lied about a particular incident. Well, did it actually happen? What the Kerry camp and the Bush camp have to say about that. We're going to talk about that.

And California courts are preparing for potential terrorist attacks. So amid all the recent terror reports, how ready are we now if the real thing were actually to occur? I'm going to talk with our security analyst next.

(COMMERCIAL BREAK)

LIN: Good morning.

From the CNN Global Headquarters in Atlanta I'm Carol Lin.

Now in the news, one of a dozen terror suspects arrested this week in Britain may have scouted financial institutions in the U.S. for possible attacks. A law enforcement source says in 2001 al Qaeda leader Eisa al-Hindi was in three of the buildings named in this week's terror alert for financial institutions.

And the government may wrap up its case today in the hearing against Private Lynndie England. An intelligence analyst testified that military intelligence agents took part in the abuse of prisoners at Abu Ghraib Prison.

And hearings continue later today for terror suspects at the U.S. prison camp at Guantanamo Bay, Cuba. On Thursday, U.S. officials, for the first time, let reporters sit in as prisoners challenged their detentions at a military tribunal.

And get ready for more pain at the pump. Oil prices shot to new highs again today this morning on world markets. U.S. light crude in New York at $44.73 a barrel.

Good morning again -- Chad.

MYERS: Good morning, Carol.

I think the date on the bottom of our screen is wrong.

LIN: Yes?

MYERS: It should say October 1.

LIN: Why?

MYERS: Because this cold front coming down here, this shouldn't happen until October.

(WEATHER REPORT)

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