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American Morning

Port Security Showdown; Arrested for Arson

Aired March 09, 2006 - 07:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning, everybody. I'm Soledad O'Brien.
MILES O'BRIEN, CNN ANCHOR: And I'm Miles O'Brien.

A port security showdown: Republicans defy the president and want to find out how the White House will react.

S. O'BRIEN: Arrested for arson. Now we're learning more about those three college students who have been charged in the Alabama church fires.

M. O'BRIEN: The defense gets aggressive in the Enron trial as the prosecution's star witness gets grilled for being greedy.

S. O'BRIEN: Testing troubles for some high school seniors. Their score on that all-important SAT might be totally wrong.

M. O'BRIEN: And quick thinking kept this from becoming a deadly crash. An amazing story of survival from a World War II veteran ahead on AMERICAN MORNING.

S. O'BRIEN: Security Watch now. That port management fight is getting even more interesting this morning. Republicans in Congress are just saying no to allowing the government of the United Arab Emirates to control key U.S. ports. A key committee in the House is trying to scuttle the deal by attaching it to a bill that would pay for the bills in Iraq, even Katrina. AMERICAN MORNING's Bob Franken is following this story from Washington. Kathleen Koch outside the White House. Let's begin with Bob. This is dramatic event, and after five-and-a-half years to see Congress and the White House split like this.

BOB FRANKEN, CNN NATL. CORRESPONDENT: Well, you remember that veto threat that the president made if this is exactly what happened. What happened by the way is the House Appropriations Committee, predominantly Republican, voted 62-2 to attach that legislation with that amendment that you described, Miles.

Now, that veto threat, if that were to be the kind of ratio you would have in the full House and Senate, would mean nothing. It would be passed over the president's objections, and this of course could have huge implications, first of all internationally obviously. Secondly in terms of the port operation. And thirdly, in terms of the president's prestige. But that seems to be holding for nothing now. There is such an opposition to all of this, that the only hope for the president now is to try and work out some deal with the Senate -- Miles.

M. O'BRIEN: Let's talk about the Senate. What's going on to go on there? What's happening on the other side of the Capitol?

FRANKEN: Well, there are two things going on. One, Senator John Warner, a highly regarded chairman of the Senate Armed Services, is trying to work a deal where there would be an enhanced U.S. government oversight of the operations of these ports, over the operation of the ports by Dubai Ports World.

However, there is a lot of thinking that it's too little, too late. As a matter of fact, the Democrats never trying to oversee or not see a political opportunity have come up with their own legislation. They've attached an amendment to some legislation that would say that, quote, "Any company wholly owned or controlled by any foreign government that recognizes the Taliban" -- what country could that be? -- "would not be allowed to operate a port in the United States."

Thus far, the Senate Majority Leader Bill Frist is trying to ignore that, but it looks like it's no going to be something that is going to even be ignored.

M. O'BRIEN: All right, Bob Franken, thank you very much. Let's take our camera down Pennsylvania Avenue, or up, depending on which way you look at it, Kathleen Koch outside the White House now.

Kathleen, what are they saying at the White House this morning?

KATHLEEN KOCH, CNN CORRESPONDENT: Well, Miles, this is certainly a sign that the White House, the administration miscalculated both public reaction and reaction on Capitol Hill to this one. The administration had initially believed that by agreeing to this 45-day review period of the controversial deal with Dubai Ports World that would quell the criticism. Well, certainly it has not.

And now, as Bob Franken laid out, obviously the president is in a very difficult position, because he did throw down the gauntlet. He did say, "I will veto any congressional attempt to block this ports deal."

And as CNN spoke with White House spokesman Dana Perrihna (ph) last night, and she said, obviously, this amendment could slow down progress on both funding that is critical to soldiers fighting on the ground in Iraq and funding critical to helping hundreds of thousands of families rebuild their lives on the Gulf Coast. She said, though, that the White House is still committed to what they're calling, quote, "open, genuine and sincere communications with the Hill."

But, Miles, obviously the administration appears to have lost this battle in the House. The hope is that cooler heads will prevail in the Senate.

Kathleen Koch in the White House, thank you.

Be sure to stay tuned to CNN day and night for the most reliable news about your security -- Soledad.

S. O'BRIEN: Well, supposedly it started as a prank, but setting nine church fires in Alabama no laughing matter now. Three college students are facing federal charges in connection with those fires.

CNN's Fredricka Whitfield joins us live from Birmingham, Alabama.

Fred, good morning.

What can you tell us about these three guys?

FREDRICKA WHITFIELD, CNN ANCHOR: Good morning, Soledad.

Gregarious, popular and none had criminal records. Their families are not commenting. But the college campus where two of the students attended is committing to help rebuild those burned churches.

(BEGIN VIDEOTAPE)

WHITFIELD (voice-over): One month after the first of nine Alabama churches were intentionally set, a stunning break that seemed to unsettle even seasoned arson investigators.

JAMES CAVANAGH, ATF: I certainly still feel hurt for all the churches, and they lost their historic buildings, and I think I'm a little bit sad for the families of these three young people we've arrested.

WHTIFIELD: The suspects, three college students. On the campus of Birmingham Southern College were two of the suspects attended, disappointment and dismay.

UNIDENTIFIED MALE: Absolutely shocking.

MARK DEMPSEY, BIRMINGHAM SOUTHERN STUDENT: It's kind of appalling, but you know, I guess you're innocent until proven guilty.

WHITFIELD: BSC sophomores Ben Moseley and Russell Debusk have been suspended and are banned from campus. Both are described as outgoing and talented.

UNIDENTIFIED MALE: They're good in the theater department. They were both theater majors.

MOLLY BYNUM, BIRMINGHAM SOUTHERN STUDENT: Ben is a really great guy. He's a really interesting guy. He sometimes sits on the step playing the guitar. He has a lot of friends.

WHITFIELD: Investigators say Moseley and Debusk, along with 20- year-old Matthew Lee Cloyd, who attended the University of Alabama Birmingham, allegedly set the fires as a joke, but things got out of hand.

UNIDENTIFIED MALE: In the complaint, you'll see that they said that, after they lit the first two fires in Bibb County, that it became too spontaneous. WHITFIELD: So to throw investigators off track, officials say the arsonists set fires in the Birmingham area, and then moved west, but authorities say they left a trail, literally sets of unique tracks made by special-order tires, traced all the way to Cloyd's vehicle.

TROY KING, ALABAMA ATTY. GEN.: I stand before you today very, very proud of the work that law enforcement across this state has done. What they've done is just good, old-fashioned police work.

(END VIDEOTAPE)

WHITFIELD: And the students will be back in court on Friday, pending the charges. If there are convictions, each of the students could face minimum mandatory five years in prison per church -- Soledad.

S. O'BRIEN: Wow, they're looking at a lot of time, especially considering they believe this to be, as we're told now, a prank.

Fredricka Whitfield for us this morning. Fred, thanks for the update.

In just a few minutes, we're going to talk with a friend of some of the suspected arsonists -- Miles.

M. O'BRIEN: The chef, if you will, who cooked the books at Enron facing the attorney for one of his form e bosses, heated exchanges, agonizing admissions of guilt, and of course it wouldn't be the Enron trial if there wasn't a little finger pointing.

CNN's Chris Huntington live outside the courthouse where the trial continues.

Good morning, Chris. It was an awfully fiery day yesterday, wasn't it?

CHRIS HUNTINGTON, CNN CORRESPONDENT: Miles, everyone following the Enron saga has waited four-and-a-half years to hear Andrew Fastow called to task. So I've got say, people in the courtroom were stunned yesterday at the way he was attacked by Jeff Skilling's lawyer.

(BEGIN VIDEOTAPE)

HUNTINGTON (voice-over): Ken Lay and Jeff Skilling may be the defendants, but yesterday it seemed Andrew Fastow was on trial, as Skilling's lawyer unleashed a blistering cross-examination. Dan Petrocelli aggressively ripped into Fastow, cornering him into admitting he'd lied to his bosses, prosecutors and to his wife about the tens of millions of dollars he'd siphoned from deals he'd set up in theory to help Enron.

When Petrocelli demanded, were you consumed with insatiable greed? Fastow replied, "I was extremely greedy. I lost my moral compass and I did many things I regret."

Legal observers seem to agree that Petrocelli's strategy was ultimately effective.

JACOB ZAMANSKY, SECURITIES LAWYER: The first time I've seen Petrocelli score some real points was this afternoon when he showed that Andy Fastow was pocketing money under the table, and admitting that he's lying to Enron and Skilling, that he's really a thief from Enron, and that's where they're going to keep hitting, that Andy Fastow is looking out for himself and nobody else.

HUNTINGTON: But Fastow held his ground in the face of often personal attacks. When pressed why he had not confessed his crimes to spare his wife from pleading guilty to tax fraud and spending a year in prison, Fastow repeatedly said, they did what was best for their family. "Your answers sound rehearsed," Petrocelli snapped. Without missing a beat, Fastow shot back, "With all due respect, your questions sound rehearsed." "You think this is funny," Petrocelli barked? "No, sir," said Fastow, "It's dead serious."

MIKE RAMSEY, KEN LAY'S ATTY.: He did not come across as a person who had an axe to grind or who had an agenda. He was prepared for this cross-examination.

HUNTINGTON: Earlier, under the prosecution's direct examination, Fastow testified that Ken Lay told investors and employees that Enron was, quote, "stronger than ever," even when he knew the company was in a death spiral.

Later under, Petrocelli cross-examination, Fastow seemed reluctant to directly accuse Jeff Skilling of deliberately misleading investors, conceding only that we've committed crimes together.

(END VIDEOTAPE)

HUNTINGTON: And of course that's what Dan Petrocelli wants to achieve, is to portray his client, Jeff Skilling, as sympathetic to the jury, and he's seemed to have made some traction with Fastow in that regard. Petrocelli continues his cross-examination this morning. This afternoon, Miles, we should hear from Ken Lay's attorney, Mike Ramsey. He has a very different style. He is a local Texas lawyer. It could get a little bit more folksy. Should be very interesting.

M. O'BRIEN: Chris, there was an interesting visitor in the courtroom yesterday, Richard Scrushy, another CEO who had a lot of trouble, was able to get out of trouble, and he was there to offer some support to Ken Lay? Tell us about that.

HUNTINGTON: Miles, there's enough of a circus atmosphere here, and then to have Richard Scrushy, who was -- is probably the highest profile white collar accusee who has been quitted. The former CEO of HealthSouth was accused of massive accounting fraud, acquitted a few months ago, came by here. He said he was in town for business, and was brought by, wanted to see some of the trial, wanted to hear some of Fastow's testimony.

The parallels to this case are that Scrushy was accused by former chief financial officers at his company, and he was outspoken here in front of the courthouse, saying these snitches, these white-collar snitches, this is all bad, and he went on for quite awhile. Interesting, but sort of bizarre at the same time -- Miles.

M. O'BRIEN: Yes, I think circus is the term that does apply at this point. We're in a full defcon-five circus there in Houston. Thank you, Chris Huntington. Back with you a little later -- Soledad.

S. O'BRIEN: "Interesting, but sort of bizarre," kind wraps up the whole thing, doesn't it, as Chris says.

(WEATHER REPORT)

M. O'BRIEN: In Alabama, a 91-year-old man walked away from a plane crash. Herb Sloane was the passenger in this plane on Tuesday night. His friend, 66-year-old Lloyd Probst was at the controls. About four miles from the airport, the engine quit, and that was that for the engine. The very experienced pilots, though, both of them were pilots, kept their cool, headed for a muddy field. The thing about muddy fields the plane tends to flip over when it lands.

(BEGIN VIDEO CLIP)

HERBERT SLOANE, PLANE CRASH SURVIVOR: We crash landed, yes, in the sense of, unfortunately, you know, it's pitch black. I yelled several times, get me out of here! And the next thing I realized, somebody was pulling me out of the plane. My instinctive fear was, of course, gasoline.

(END VIDEO CLIP)

M. O'BRIEN: Yes, as it would be. That looks like a Swift. That's a great airplane. Both men did get away with just cuts and scratches.

We should tell you this, Sloane, by the way, has been flying since World War II. In fact, he has another crash on his resume. That one in a B-17 bomber, and that would be a World War II-vintage Flying Fortress, and he says it's important for him to get back in the air, back in the saddle. He plans to be flying on his 100th birthday.

S. O'BRIEN: He looks pretty darned good for 91.

M. O'BRIEN: He looks better than me, really, on most mornings. So yes, congratulations to them, having survived and live to tell the tale, as they say. You know what they say, any landing you can walk away from is a good one.

S. O'BRIEN: That's true, I agree fully.

M. O'BRIEN: All right, a serious turn here: Police investigate a teenaged girl's mysterious disappearance, but is it a hoax? There's some strange text messages with this story. We'll let you be the judge.

S. O'BRIEN: Also Kelly Wallace talks to a teenager who says his college dreams are dashed, all because of a mistake by the folks who administer the SAT. M. O'BRIEN: And Attorney General Alberto Gonzalez will join us live. We'll ask him about that Patriot Act which is going to be signed back into renewal status today, and why he thinks it will keep America safer.

Stay with us.

(COMMERCIAL BREAK)

(MARKET REPORT)

S. O'BRIEN: Ahead this morning, much more on those college students arrested in the Alabama church fires. Just about everybody's been describing them as a bunch of normal kids. This morning, we talked to a couple of their friends, get their reaction.

And then later this morning, Attorney General Alberto Gonzalez will join us live. We're going to ask him about the soon-to-be- renewed Patriot Act, see what he thinks about some of the safeguards placed on law enforcement. Those stories ahead on AMERICAN MORNING.

We're back in a moment.

(COMMERCIAL BREAK)

S. O'BRIEN: Three college students are facing arson and conspiracy charges this morning in a series of Alabama church fires that were set last month. The suspects, Ben Moseley, Russell Debusk and Matt Cloyd arrested on Wednesday. Mark Doll and Jordan Alvis are friends of two of the suspects. They join us from Birmingham, Alabama this morning.

Hey, guys, thanks for talking with us. Certainly appreciate it.

Give me a sense, Mark and Jordan, how well you knew these three?

JORDAN ALVIS, FRIEND OF SUSPECTS: Well, we played in a band with Ben, and we hung out on the weekends, and I mean, we talked to them fairly a lot. I mean, He was seen around campus a lot. He was a theater major.

S. O'BRIEN: So when you heard this news, Mark, about these arrests, and these church burnings have been very big news, of course, not just where you are, but nationally as well, when you heard the news that guys you knew were under arrest for these crimes, what was your reaction?

ALVIS: I think it was just shock. No one, I think expected it from any of these guys, and it was just overwhelming and it was just...

MARK DOLL, FRIEND OF TWO SUSPECTS: I think everyone's still a little shocked about it, too. I know I am.

S. O'BRIEN: In any of your discussions -- as you said, you played in a band with Ben Moseley, did ever talk, I don't know, issues with religion or any sort of, you know, did he have discussions about any kind of hate crime? Was he that kind of a person? What kind of guy is he?

DOLL: No, Ben never talked about his affiliation with any church that he might have gone to. He never talked to us about being hateful towards anybody, any group of people. You know, I guess they were all Baptist churches, but nothing towards any Baptist church or anything like that. He was a nice guy.

ALVIS: Yes, he was just an average guy, you know, I mean, no different than anyone else, it seemed like, just normal, down to earth. And it was just...

S. O'BRIEN: Some of the descriptions we're getting has been that they've described it as a prank. You know, are any of these three guys like that? Are they pranksters? Would they find -- you're talking about 10 churches under investigation, nine it looks like they might be linked to. When you hear a prank pulled off potentially by these three guys, what do you think of that?

DOLL: I don't think, personally, I don't think it was a prank. I don't know -- maybe one was. I'm not really sure. I just know whatever it was, they made a mistake, so...

S. O'BRIEN: What's the mood been on campus? Obviously the university is in a community, and as any university, often there are sort of tensions between the community and the people in the university. Are you seeing that more now? What's going on on your campus?

DOLL I think everything on campus seems to be going normal, like it always has. There doesn't seem to be any changes in terms -- I know everyone's still upset. I think some people are more on a personal basis, if they knew Ben or Russ personally. But for the most part, I'd say everything is fine, and maybe a little bit stronger. You know, the school obviously wants to help these churches as well.

S. O'BRIEN: Yes, well, that is really good news to hear from you guys. Mark Doll and Jordan Alvis, thank you for talking to us. Appreciate it. Appreciate your time this morning.

DOLL: You're welcome.

ALVIS: Yes, ma'am.

S. O'BRIEN: Now get to class.

ALVIS: We will. Thank you.

S. O'BRIEN: Later this hour, we're going to talk to a forensic psychologist about this case. It's utterly baffling, asking as you heard from the friends. Was it a prank? Was it something more than that? We'll find out more from a forensic psychologist ahead.

Also this morning, Defense Secretary Donald Rumsfeld got a new enemy, might be actually more of an old enemy for him. We're going to tell you why he is going after the media.

Then later this morning, teenagers are blaming an SAT snafu for dashing their college dreams. We'll take a look at exactly what happened, ahead on AMERICAN MORNING.

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