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PAULA ZAHN NOW

NSA Call Tracking Raises Controversy; Interview With Illinois Senator Richard Durbin; Priest Convicted of Murdering Nun; Online Puppies Safe to Buy?

Aired May 11, 2006 - 20:00   ET

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


PAULA ZAHN, CNN ANCHOR: Thank you all for joining us tonight.
Here is what is happening at this moment.

The Senate is finally rolling again on the issue of illegal immigration. Republican and Democratic leaders announced a breakthrough on two major sticking points, one giving illegal immigrants already here a path to citizenship.

Texas has just announced plans to build the nation's largest wind energy project. A Houston company says more than 500 winds turbines like these will be placed in the Gulf of Mexico. The five-year, $2 billion project will generate electricity for 120,000 homes.

And there's a glimmer of hope tonight for refugees in Darfur caught in a murderous civil war. There's word that a rebel leader has made a tentative peace overture to the Sudanese government. The U.N. is also moving to create a peacekeeping force for the area.

Now we move on to the "Security Watch." Do you want the federal government keeping a list of every phone call you make, in fact, every call everyone makes? What if it is in the name of protecting you from terrorists?

Well, today a front-page story in the "USA Today" revealed that, for the last four-and-a-half years, the National Security Agency has secretly been building a database of phone calls from tens, maybe even hundreds of millions of Americans, not recording the calls themselves, just making a list, kind of like your phone bill.

Well, the government is getting the information from just about every major phone company, except for one, the company Qwest.

So, is it a case of Big Brother or just a smart tactic in the hunt for terrorists? Either way, it is a bombshell story.

And here's national security correspondent David Ensor with more.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT (voice-over): The news hit Capitol Hill and the Bush administration like a ton of bricks. The timing could hardly be worse, given that the president's nominee for CIA director, General Michael Hayden, on the Hill seeking support, was director of the NSA when the program to collect phone call data on Americans reportedly started, after the 9/11 attacks.

GENERAL MICHAEL HAYDEN, CIA DIRECTOR NOMINEE: All I would want to say is that everything that NSA does is lawful and very carefully done.

ENSOR: That from the general, after the president had already been out doing damage control.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The privacy of ordinary Americans is fiercely protected in all our activities.

ENSOR: So, what is the point of collecting all the billions of telephone numbers we all call and putting them into the massive Cray computers out at the NSA headquarters? To look for patterns, experts say, that might catch a terrorist sleeper cell in this country.

RICHARD FALKENRATH, CNN SECURITY ANALYST: This data might help the government identify a -- a -- a communication link between a known or suspected al Qaeda operative abroad and one at home that had multiple cutouts within it, meaning there was not a direct connection between terrorist A and terrorist B, but they work through a series of intermediaries, C, D, E, and F.

ENSOR: So, if terrorist A in the Middle East calls Mr. C in California, who calls D in Iowa, who calls E in Illinois, who calls F in New York, and F calls terrorist B in Florida, that pattern might be traced through the thousands of other calls made by C, D, E, and F, leading to B. And, if another call chain also leads to B, then, whoever has that phone becomes a suspect.

The government can collect the numbers of C, D, E, and F without needing to know their names or what they say.

FALKENRATH: Big Brother is -- may be watching the calls that are being made from every telecommunications device in the country, but Big Brother is not listening to those calls, does not know what the content is.

ENSOR: The phone companies declined comment, but the idea Big Brother may have most Americans' complete phone calls records strikes some as outrageous.

JAMES BAMFORD, AUTHOR, "PRETEXT FOR WAR": That doesn't give you a -- a right to spy on everybody, just because you think you're going to prevent terrorism. There has got to be a real reason before you start spying on Americans. I mean, how many people are killed every day by people in stickups or people that rob 7/Elevens? Does that mean that we begin spying on everybody that goes into a 7/Eleven?

ENSOR (on camera): A knowledgeable former U.S. official says the program is legal, because there is no law against the government accepting information voluntarily provided.

While the companies may not turn over names and addresses, a long list of phone numbers only can, experts say, be legally given to the government. Of course, anyone with Internet access can then trace most telephone numbers to a person.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

ZAHN: And this story certainly blindsided members of Congress. There was instant outrage from Democrats and even some Republicans. And they want answers.

Here's congressional correspondent Andrea Koppel, part of the best political team on TV.

(BEGIN VIDEOTAPE)

ANDREA KOPPEL, CNN CONGRESSIONAL CORRESPONDENT (voice-over): Reaction from lawmakers was fast and furious.

SEN. PATRICK LEAHY (D), VERMONT: The press is doing our work for us. And we should be ashamed of it. Shame on us in being so far behind and being so willing to rubber-stamp anything this administration does.

SEN. JON KYL (R), ARIZONA: This is nuts. We are in a war. And we have got to collect intelligence on the enemy. And you can't tell the enemy in advance how you're going to do it.

KOPPEL: The chairman of the Senate Judiciary Committee called for a hearing and said he expected answers.

SEN. ARLEN SPECTER (R), PENNSYLVANIA: And we will be calling upon AT&T, Verizon and BellSouth, as well as others, to see some of the underlying facts, when we can't find out from the Department of Justice or other administration officials.

KOPPEL: The first casualty of the disclosure of the NSA telephone data bank could be the smooth nomination of the man who helped develop it, General Michael Hayden, President Bush's choice to head the CIA. Now even early supporters are expressing doubts.

SEN. DIANNE FEINSTEIN (D), CALIFORNIA: I happen to believe we're on our way to a major constitutional confrontation on Fourth Amendment guarantees of unreasonable search and seizure. And I think this is also going to present a growing impediment to the confirmation of General Hayden. And I think that is very regretted.

KOPPEL: As for General Hayden, after the White House canceled his morning appointments, suddenly, he and senior Republican Mitch McConnell appeared together, a brief photo-op to send the message Hayden has nothing to hide.

But Democrats charge, the Bush administration does, disputing Hayden's statement that Congress was briefed on all NSA programs.

REP. NANCY PELOSI (D-CA), MINORITY LEADER: The administration wants to have the upside of saying dozens of briefings were held, but they won't release the list as to who was briefed and when. (END VIDEOTAPE)

KOPPEL: Now, House Minority Leader also met with the House speaker, Dennis Hastert, to ask that he launch an intelligence review, the House Intelligence Committee, of this program.

Meanwhile, over in the Senate, the chairman of the Senate Intelligence Committee, Pat Roberts, released a statement late this afternoon, Paula, saying that he felt that members had been adequately briefed, and he felt that an oversight hearing wasn't necessary -- Paula.

ZAHN: Clearly a bunch of different points of view on this one, Andrea. Thanks so much. Appreciate the update.

And, just a bit earlier, I spoke with Senator Dick Durbin, a Democrat from Illinois, who happens to be a member of the Senate Judiciary Committee.

(BEGIN VIDEOTAPE)

ZAHN: Senator Durbin, always good to see you. Thanks so much for joining us.

SEN. RICHARD DURBIN (D), ILLINOIS: Thank you, Paula.

ZAHN: So, late last year, President Bush said that the monitoring would exist exclusively with international calls. Now we hear today that domestic calls are being tracked. Is there any justification for this in the overall war on terror?

DURBIN: Of course.

If we knew that there was a domestic telephone conversation involving a would-be terrorist, they should be tapped; they should be eavesdropped. And there's a way to do it. There's a court approval under the law. And I would want them to -- a president, any president, to go forward to keep America safe.

What we're worried about, though, is, this administration apparently believes that it can gather this information without court approval, without legal authorization. And that is why we need to do our job on Capitol Hill and ask some hard questions.

ZAHN: So, you think what the administration is doing is illegal, in spite of the fact that -- that the president has defended the surveillance program so far as being perfectly legal?

DURBIN: Two things going on here, warrantless wiretaps, where the president is not following the law and says he doesn't have to. I think that is clearly illegal.

Now we have this data mining, where the National Security Agency is gathering more intelligence data in one place than anyone in the history of the world and is gathering the telephone records to show calls that we have made, every American has made, in our nation. I don't know the legal authority for that second activity by the government.

ZAHN: What is it, Senator, you think Americans should be afraid of?

DURBIN: Well, it is not just a matter of being afraid. It's a matter of being sensitive to the fact that we have basic rights and freedoms, including our own right to privacy.

Did I, by deciding to pick a certain telephone company, say that they can surrender my privacy, my freedom, and my records, without even notifying me? By what authority did they do that? And, secondly, by what authority did the government request the information about innocent Americans who have never been suspected of doing anything wrong?

ZAHN: Beyond the obvious civil liberties issues here, how else might the government use this information?

DURBIN: You know, at this point, we don't know. It is an embarrassment to think that members of Congress didn't know, weren't brought into the loop, didn't have a basic understanding of what we are trying to achieve.

ZAHN: Senator Durbin, again, thanks for dropping by tonight. We appreciate it.

DURBIN: Thank you, Paula.

(END VIDEOTAPE)

ZAHN: And, right now, we're going to move on to our countdown of the top 10 stories on CNN.com, more than 19 million logging on today.

Coming in at number 10, just a few hours ago, the Senate passed a $70 billion tax cut package by a vote of 54-44. The House passed the same bill yesterday. It now goes on to the White House for President Bush's signature.

Number nine -- a new CNN poll done by Opinion Research shows that 52 percent of registered voters say they preferred a Democratic candidate for Congress this fall, while 38 percent say they preferred a Republican.

Numbers eight and seven straight ahead, along with a startling end to a long unsolved case of murder.

(BEGIN VIDEOTAPE)

ZAHN: "Outside the Law" -- judgment day. Twenty-six years after the mysterious murder of a nun, a stunning courtroom climax -- tonight, amazing details of the case that turned a priest into a brutal killer.

And the "Eye Opener" -- online puppies, they're cute, cuddly and celebrity-endorsed. But that online dog could break your heart and your budget -- all that and more when we come back. (COMMERCIAL BREAK)

ZAHN: Tonight, the chilling 1980 murder of a Catholic nun under mysterious circumstances in Toledo, Ohio, is no longer an unsolved case.

And now a wave of relief is finally sweeping through that city. But with that relief comes the stunning realization that the killer was a member of the clergy, living among them, while keeping his crime a secret for years.

Keith Oppenheim is covering the trial that finally brought justice to a tragedy. And he just filed this report for tonight's "Outside the Law."

(BEGIN VIDEOTAPE)

KEITH OPPENHEIM, CNN CORRESPONDENT (voice-over): With little fanfare, Judge Thomas Osowik read a form handed to him from the jury.

JUDGE THOMAS OSOWIK: "We the jury" -- Will the defendant rise? -- "find the defendant guilty of murder."

Moments later, Father Gerald Robinson, 68 years old, was in handcuffs, his relatives in tears, as he was taken out of court, sentenced to prison to 15 years to life.

DEAN MANDROS, LUCAS COUNTY ASSISTANT PROSECUTOR: It was a -- a rage killing.

OPPENHEIM: Prosecutors argued that, in 1980, Father Robinson, at the time a chaplain at Toledo's Mercy Hospital, had deep resentments against Sister Margaret Ann Pahl, a 71-year-old nun with a reputation for being strict about church rituals.

The prosecution said the priest was angry, tired of feeling dominated. So, he stabbed her 31 times with his dagger-shaped letter opener. Back then, Father Robinson was questioned, but never charged. The cold case was reopened in 2004, when investigators found a match between the letter opener and a bloodstain at the crime scene.

MANDROS: The emblem on that letter opener is clearly visible on the altar cloth. So, that had to be the murder weapon.

OPPENHEIM: For the prosecution, it was a circumstantial case that pointed the jury to the priest. Still, the state had no eyewitnesses and no DNA evidence that directly linked Father Robinson to the victim. Defense attorneys were clearly shocked by the verdict.

JOHN THEBES, DEFENSE ATTORNEY FOR GERALD ROBINSON: Today is difficult. But the jury has spoken.

OPPENHEIM: They also expressed concern for how Father Robinson will handle prison.

ALAN KONOP, DEFENSE ATTORNEY FOR GERALD ROBINSON: He will be in an environment that is a pretty rough environment. And it's -- it could be very, very difficult for him.

OPPENHEIM: A strange twist in this case, Father Robinson was the priest who presided over Sister Pahl funeral 26 years ago. Lee Pahl, the nun's nephew, was a pallbearer on that day and remembers a loud thunderstorm during the funeral.

LEE PAHL, NEPHEW OF SISTER MARGARET ANN PAHL: It just illuminated and shook and rumbled. And it was amazing. You know, and then you look back on that, it seems like there has to be some sort of a sign there.

OPPENHEIM (on camera): In a matter of days, Father Robinson will be transferred from a county jail to a state prison. His defense team has 30 days to file an appeal. And the priest's lawyers say they will.

Keith Oppenheim, CNN, Toledo.

(END VIDEOTAPE)

ZAHN: And we're going to change our focus.

Have you noticed that some of today's biggest stars seem to have really cute little dogs? Well, coming up, our eye-opening report on a company that sells puppies to the stars and a bunch of you out there. So, why are so many customers upset and even heartbroken?

And, then, a little bit later on, a startling look inside a religious community whose leader is on the FBI's most wanted list. Why are they literally expecting the end of the world?

Before that, number eight on our CNN.com countdown -- authorities in Laredo, Texas, today said 56 illegal immigrants were found Tuesday inside a refrigerated trailer, with no way to get out. They were locked in for about six hours. No one was injured.

Number seven -- an unbelievable sight caught on a tape. A Russian helicopter crashed into the sea. Amazingly, officials say, all 13 people on board were rescued. One, however, died on the way to the hospital. The accident happened as the chopper was practicing a rescue exercise off a Russian island -- numbers six and five straight ahead.

(COMMERCIAL BREAK)

ZAHN: Remember that song "How Much Is That Doggy in the Window"? Well, now that window happens to be on the Internet. And more and more people are buying dogs online. But there's a danger you might not be aware of.

Tonight, consumer correspondent Greg Hunter looks at a company that uses celebrity power to sell dogs all over the country.

It is tonight's "Eye Opener."

(BEGIN VIDEOTAPE) GREG HUNTER, CNN CONSUMER CORRESPONDENT (voice-over): What do the Osbournes, known for their hit MTV show, have in common with actress Jennifer Love Hewitt and singer Jon Secada? They all bought dogs from the same place, a company called the Wizard of Claws, also known as Celebrity Kennels.

It's run by this couple, Jim and Gilda Anderson. They offer what they describe as top-of-the-line teacup and toy-sized dogs on the Internet, and claim annual sales of up to $5 million. They also claim to be the nation's premier supplier of puppies to the stars. Look at all the celebrities featured on their Web site who bought their dogs.

(on camera): You would think, with a celebrity clientele like that, the dogs would come from a really posh, exotic location.

In actuality, they come from this store, located in a strip mall just outside of Fort Lauderdale, Florida. Now, don't get me wrong. The dogs they sell are really cute. But some have real problems.

JENNIFER PURA, DOG OWNER: Parasites, coccidia, giardia, vomiting, diarrhea.

HUNTER: Jennifer Pura of California wasn't prepared for the sick dog she got from the company, a shih tzu named Tucker. He cost $3,500, and an extra $5,000 in vet bills in just a year.

PURA: They overwhelmed us. We -- I mean, we -- we are still in debt from those bills.

HUNTER: To make up for some of the costs, the Wizard of Claws offered her this Yorkie, pictured on its Web site, free of charge. Pura trusted them, because, after all, they have an impressive celebrity clientele.

PURA: If it is OK for them, then it is certainly OK for me. It is not the case.

(LAUGHTER)

PURA: It's not the case at all.

HUNTER: The new dog, named Romeo, arrived at the airport extremely sick. Vet care immediately topped another $5,000, of which the company paid $1,200. Pura tried to nurse the puppy back to health.

PURA: And, you know, we really thought that there was a chance, just because we loved him enough and cared for him enough. And it -- and it wasn't enough. Nothing was enough. He was too sick.

HUNTER: Romeo died within a month.

DEBORAH HOWARD, COMPANION ANIMAL PROTECTION SOCIETY: When you go to a reputable breeder, you are not going to find dogs -- a lot of dogs that have kennel cough, that have giardia, coccidia. HUNTER: Deborah Howard heads the Companion Animal Protection Society. Her nonprofit group goes undercover to expose inhumane treatment at puppy mills, where dogs are bred in mass quantities.

HOWARD: We have seen dead frogs in water, dead rats.

HUNTER: She claims many dogs sold on the Internet come from places like this, where conditions are often unsanitary and crowded.

(on camera): How much oversight is there when you buy a puppy on the Internet?

HOWARD: There's very little oversight, because Internet breeders are not regulated, as it stands right now, by USDA or any kind of government agency.

HUNTER: At all?

HOWARD: At all.

HUNTER (voice-over): Yet, buying a dog on the Web is a growing trend.

The American Pet Products Manufacturers Association says 150,000 dogs are bought online annually. But, online, you have no idea who you're buying from.

Take, for example, the Wizard of Claws, which, remember, also goes by the name Celebrity Kennels. They're not a breeder, but they sell dogs online. CNN has learned Jim Anderson is a convicted drug felon. And, in 2003, his facility was slapped with six federal violations under the Animal Welfare Act, for things like providing poor vet care and selling animals too young.

Now the Florida attorney general has opened an investigation into the company. And several dissatisfied customers have filed lawsuits. And there's even this, a Web site called StopWizardofClaws.com.

Former Miss Florida Shannon Ford started the site after her pug, that was supposed to be a miniature, no more than eight pounds, grew to 25 pounds. She claims Jim Anderson not only sells sick and defective dogs, but has also lied about their origin, age, registration, and size. He's now suing her for $4.4 million to shut her site down.

HUNTER (on camera): Do you think Stop Wizard of Claws is a little, you know, rough on some guy trying to make a living?

SHANNON FORD, STOPWIZARDOFCLAWS.COM: If you saw the complaints that I have, I don't think you would think that.

HUNTER (voice-over): And what about some of those celebrity customers? Are they happy?

(on camera): You paid top price.

JON SECADA, SINGER: Yes.

HUNTER: Did you get a top dog?

J. SECADA: I don't think we did. I don't think we did.

MARI SECADA, WIFE OF JON SECADA: But we still love him.

J. SECADA: Absolutely. He's a great...

(LAUGHTER)

J. SECADA: He's -- you know, he's a great dog.

HUNTER: Singer Jon Secada and his wife, Mari, bought their first family dog, Sunshine, from Celebrity Kennels last August. He was supposed to be perfectly healthy, but, instead, had kennel cough for more than a month and a tooth problem that cost about $1,000 to fix.

M. SECADA: It was causing a lot of bruising at the bottom.

HUNTER (on camera): I can see that.

M. SECADA: Yes, bruising and bleeding.

HUNTER (voice-over): The Secadas say they were also told their dog came from a specialized breeder. But CNN has discovered, Celebrity Kennels actually bought their dog, Sunshine, from an online auction.

J. SECADA: And that's a problem. We don't know exactly where our dog came from.

HUNTER (on camera): Would you buy another dog there?

M. SECADA: Oh, definitely not.

J. SECADA: No, I don't think so.

HUNTER: No?

J. SECADA: Not -- not -- not this celebrity.

(LAUGHTER)

HUNTER (voice-over): As for the other stars, a spokesperson for Jennifer Love Hewitt told CNN her dog had several problems that needed vet care. However, the Osbournes told us the dogs they received were perfectly fine.

To see firsthand, we decided to order a dog from Celebrity Kennels. About three weeks later, he arrives by plane to Atlanta.

(on camera): We have our dog.

(voice-over): He appears friendly and alert.

(on camera): How you doing?

(voice-over): His shipment was delayed because the company told us they wanted our dog to get over kennel cough and an upper respiratory infection.

We go directly from the airport to a vet.

(on camera): Here's Champ.

UNIDENTIFIED FEMALE: Oh, oh, oh.

(LAUGHTER)

HUNTER: How you doing?

(voice-over): Dr. West Hamryka Sugar Hill Animal Hospital in Georgia agreed to check out Champ. The good news, our dog has no parasites, worms or other abnormalities.

But there is this. Our puppy still has a cough and has watery eyes, which the vet says are signs of sickness.

(on camera): In your estimation as a vet, could I have just taken this dog home and given it to my kid?

DR. WEST HAMRYKA, SUGAR HILL ANIMAL HOSPITAL: Not without -- not being perfectly healthy.

HUNTER (voice-over): We wanted to interview Jim Anderson about our dog and others.

(on camera): Hey, Jim, Greg Hunter, CNN.

JIM ANDERSON, WIZARD OF CLAWS: No comment.

HUNTER: What do you have to say to all your unsatisfied customers around the country?

(voice-over): He didn't talk on camera.

But, on the phone, he told us he doesn't sell sick dogs. He says shipping causes a lot of stress, and, out of the 9,000 sales in five years, he estimates only about 8 percent generated complaints. Among those who complains, Jennifer Pura. Her dog, Tucker, still has health problems.

PURA: I'm constantly worried that there's something wrong with him, which is not how it is supposed to be. It is supposed to be fun and it's supposed to lighten up your life. And it has made it -- it has made it sad and hard.

HUNTER: And, as for our dog, Champ, good news: He was adopted by a vet at Dr. Hamryka's clinic.

UNIDENTIFIED MALE: You are going to love him?

UNIDENTIFIED FEMALE: Of course.

(END VIDEOTAPE)

HUNTER: Today on "AMERICAN MORNING," I said Jim Anderson was a six-time convicted felon. In fact, he was convicted of six felony counts stemming from one arrest.

OK. So, how do avoid online dangers? Well, first, you buy from a breeder directly. This allows you to see the conditions your dog was bred in. Also, ask to see the dog's parents. Healthy parents usually mean a healthy puppy.

And, finally -- this is my favorite -- save a stray. Go to the Humane Society or an animal shelter. They're just as lovable, and they're a lot cheaper.

ZAHN: So, what are the odds, if you buy a puppy online, that you are going to get a sick one?

HUNTER: You know, Paula, I'm sure you can find plenty of people who will say, hey, I bought a dog online; my dog was perfectly fine.

Here's the point. And here's what experts say. The problem comes when you have a problem. If you have a defective dog or if you have big vet bills -- and some of the people spent $3,500 for their dog, and then some told me they had thousands of dollars in vet bills -- it is very hard to get your money back and get restitution.

And the reason why is because it's an expensive and it's downright impractical to try to go from one state, say California, and try to get money back from a breeder who is in say, Missouri. It is just really difficult and expensive.

ZAHN: All in the interest of full disclosure, my puppy Nigel came from a breeder and he was doing great until he started swallowing socks. I don't think the breeder had anything to do with that. All right, thanks so much, Greg. Interesting information for all of us to consider.

Still to come tonight, a religious leader that advocates polygamy is still on the run from the FBI. What are his followers doing and why are they expecting the end of the world? And what happened to a man who has been accused before Congress of stalking children online? Why is he still free tonight?

And how can you get some of the least expensive gas in the country? It is a secret location. Well, at least a secret until we share it with you about 10 minutes from now. Stay tuned. Can you imagine gas for less than $1 a gallon? You'll see.

We move on to No. 6 in our CNN.com countdown. We covered a little bit earlier on, a jury in Toledo, Ohio today, found a Catholic priest guilty of murdering a nun in his parish some 26 years ago. Gerald Robinson was sentenced to life in prison. No. 5, in Florida a 12 mile-stretch of Interstate 95 between Port Orange and Edgewater will remain closed for several days. The highway patrol closed it after trees weakened by brush fires began falling onto the roadway. No. 4 when we come back.

(COMMERCIAL BREAK)

ZAHN: Welcome back. Here's what is happening at this moment. A bold prediction tonight from Pennsylvania Congressman John Murtha. The Democrat and former Marine colonel says public opinion will force the president to withdraw troops next year from Iraq. Murtha, a Vietnam vet, has called for withdrawal of troops as soon as possible.

We knew he was resigning, but tonight Congressman Tom DeLay set the date. The former House majority leader says June 9th will be his final day on Capitol Hill. He faces money laundering charges back home in Texas.

A mission of mercy, an eight-year-old Afghan boy will be flown to Washington to repair a potentially fatal heart defect. He's been in the care of American doctors since his father brought him to a military hospital in Afghanistan last year.

Tonight, the manhunt continues for Warren Jeffs, the self-styled prophet and leader of as many as 10,000 polygamists in Colorado City, Arizona. He preaches that men should have many wives and dozens of children. And, he's on the FBI's top 10 fugitive list because authorities accuse him of arranging marriages between underaged girls and men.

But what you're about to see may be even more startling. Jeffs leads another community. This one in Texas, where the residents are being told to prepare for the end of the world. It is bringing back frightening memories in Texas. Rick Sanchez, takes us "Beyond the Headlines" tonight.

(BEGIN VIDEOTAPE)

RICK SANCHEZ, CNN CORRESPONDENT (voice-over): This is south central Texas, isolated, quiet, but there's a building boom of sorts here, around this temple erected by Warren Jeffs' polygamist followers. And look at this, a rare glimpse into this new world of Mormon fundamentalists, one of the only photos of women and children working the fields of this 1,700- acre compound under construction by Jeffs' chosen followers.

It's called YFZ, or Yearning For Zion, because this is where the man they call "The Prophet" has told them they need to be when the world as we know it comes to an end.

For other residents here, though, it sounds alarmingly like what happened in another Texas town.

(on camera): Are you worried that this could be the next Waco?

UNIDENTIFIED FEMALE: Yes.

UNIDENTIFIED FEMALE: Yes. SANCHEZ: Yes?

UNIDENTIFIED FEMALE: They have the manpower. They have the financial resources, and they're in an isolated area.

SANCHEZ: We're going to go ahead and try to drive into the compound, but it's surrounded by other ranches, so this is really the only road in. We're told that it is protected by guards and all- terrain vehicles, and some of the locals that we have talked to say they're armed.

(voice-over): Nobody really knows whether Warren Jeffs, who's now one of the FBI's top 10 fugitives, is in the compound.

Sheriff David Doran is one of just a handful of insiders who have ever been inside.

(on camera): How do you know Warren Jeffs isn't there right now?

DAVID DORAN, SCHLEICHER COUNTY, TEXAS, SHERIFF: I can't say. I mean, I don't know. I don't know if he is or not.

SANCHEZ: So, why not get a bunch of your guys in there and raid it right now and find out if he's there?

DORAN: Well, you know, one would speculate that's what needs to be done. There's all -- you know, critics would say, why aren't we doing that? We have to get good -- good, credible information that he's on the property. We have to have a sighting by law enforcement.

SANCHEZ: But they haven't. Nor have they received reports of any criminal activity, and although Jeffs is accused of sex with a minor and suspected of arranging marriages between young girls and older men in Utah, there's been no evidence of that here. It's a possibility, though, that repulses locals.

UNIDENTIFIED FEMALE: That's sick. They shouldn't be able to do that.

UNIDENTIFIED FEMALE: It's nasty. It's just wrong. It shouldn't be -- it shouldn't be like that.

SANCHEZ (on camera): We have essentially come as far as we can go, because there's a locked gate here that prevents us from going any further. But if you look all the way down the road, you see a massive stone temple jutting over the horizon. That seems to be in the middle of nowhere.

(voice-over): It now seems Jeffs' followers originally intended to conceal what they were doing, when they placed a 10-foot sign that read Whitetail Hunting Lodge.

Schoolteacher Ernesto Barrera was among the first to realize something was amiss.

ERNESTO BARRERA, SCHOOL TEACHER: I told my wife I noticed right away they misspelled whitetail.

SANCHEZ: Whitetail was misspelled?

BARRERA: Mmm-hmm.

SANCHEZ: They lied?

BARRERA: Oh, yes, they lied. They said that it's going to be a hunting resort.

SANCHEZ (voice-over): A work permit explains what the property really is, YFZ, a religious church organization. We called the number on the permit to ask for Ernest Jessup (ph)...

(on camera): Hi. Is this Mr. Jessup (ph)?

(voice-over): ... but were told we had the wrong number.

We also tried to talk to catch up with one of Jeffs' followers driving a truck loaded with film. But he spotted us, ran, and then drove away.

From the air, pilot J.D. Doyle (ph) showed us the massive temple, the three-story housing units where Jeffs' chosen followers now live, the water tower, the school and community center, the dairy and cheese factory, even a massive concrete mill.

UNIDENTIFIED MALE: Warren tells them that the end of the world is near, and it will be so many days after the last corner is -- is set on the temple. And then, after that, God is going to come, destroy the Earth. They're going to be the only people left, because they believe that they are the only true believers tribe of Israel left.

SANCHEZ: Surrounded by nothing but cactus and brush, followers are completely isolated. Locals say only men are allowed to leave the compound. They believe only those with at least three wives will reach heaven, and women will only reach heaven if they have their husband's blessing.

(on camera): What's going to happen if the feds come in here and try and arrest him?

UNIDENTIFIED MALE: Waco.

SANCHEZ: There will be another Waco?

UNIDENTIFIED MALE: Without a question.

SANCHEZ: Rick Sanchez, CNN, El Dorado, Texas

(END VIDEOTAPE)

ZAHN: And tonight on "ANDERSON COOPER 360," Rick Sanchez takes a closer look at life inside Jeffs' Texas compound at 10:00 p.m. Eastern. During his shocking testimony last month, a one-time star of Internet child pornography told Congress he had been sexually molested by a man he met online. Why hasn't that man been charged with any crime? We're going to take you behind the headlines in just a moment.

And a little bit later on, how does gas for $1.50 a gallon sound to you? OK, how about for less than $1 a gallon? We're going to show you where you can get it for those prices.

Before that, though, number four on our CNN.com countdown. Federal health experts meet in Atlanta to figure out what is causing a rare bacterial infection that's led to the deaths of at least five women who took RU-486, the abortion pill. Last year, the FDA put strong warnings about the risk of infections on RU-486 labels.

Number three, couple of minutes away.

(COMMERCIAL BREAK)

ZAHN: We've got some news for you tonight, in a story we've been following closely from here, about a teenage boy who went public with a chilling story of how he ended up being a child porn star on the Internet. This week, police tracked down a key figure in the case. So why hasn't he been arrested? Ed Lavandera has the story tonight.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN CORRESPONDENT (voice-over): At age 13, Justin Berry says he was seduced by the world of online pornography.

JUSTIN BERRY: I was the king of my universe. All I had to do in exchange was strip and masturbate while alone in my room.

LAVANDERA: Berry, now 19, first told federal investigators 10 months ago how men would pay him to pose for pictures, some he says also molested him.

He gave investigators a list of 1,500 names, and mentioned at least one person at a congressional hearing last month.

BERRY: One man, Ken Gourlay, approached me online. I was sexually molested by Ken for what proved to be first of many times by him.

LAVANDERA: The 28-year-old computer consultant was there too, under subpoena, but offered nothing to investigators.

KEN GOURLAY: I will decline to respond based on Fifth Amendment privilege.

LAVANDERA: He and his attorney refused to comment on the allegations. A picture of Gourlay and Berry together was posted on KenGourlay.com, a Web site that no longer exists. And in an online diary, someone identifying himself as Gourlay writes: "It would be a fantasy to make out with Justin Berry." And despite of months of working with federal investigators, and even after Berry's story appeared in the "New York Times," Berry felt enough wasn't being done, especially while Gourlay remained free. Berry says he's lost faith.

BERRY: I've never been asked by law enforcement about any of the 1,500 names I provided them. Some of those who molested me, like Mr. Gourlay, and who made all of this possible, are continuing to live their lives unaware or uncaring about any government inquiry.

LAVANDERA: So we turned to authorities in Michigan, Ken Gourlay's home state.

(on camera): This is where Ken Gourlay lives here in Detroit. Earlier this week, Michigan state authorities raided the home, but they didn't arrest Gourlay; they arrested his roommate.

(voice-over): Investigators say they found thousands of pornographic pictures on computers inside the home. But it was 24- year-old Edward Mulak (ph), who was arrested on charges of possessing child pornography. He's pleaded not guilty. Police would not say whether any of the pictures found contained images of Justin Berry.

Meanwhile, Gourlay calmly watched the raid go down.

Because so much time has passed since his name first surfaced, the Michigan attorney general believes Gourlay has been able to destroy some incriminating evidence against him. Mike Cox says his investigators are still building a case against Gourlay.

MIKE COX, MICHIGAN STATE ATTORNEY: Justice will be served here in Michigan. We don't drop the ball. We'll take care of things. Just people have to let the wheels of justice turn here. The right thing will happen.

LAVANDERA: In the meantime, Ken Gourlay sits behind the windows of his home, and Justin Berry can only sit and wait, hoping that one arrest will lead to another.

Ed Lavandera, CNN, Detroit.

(END VIDEOTAPE)

ZAHN: Still ahead, our daily look at gas prices, and a place where some people say they're paying less than $1 a gallon. That's ahead.

But first, tonight's business headlines. Another spike in the price of oil and gold gave stocks the biggest tumble in four months. The Dow lost more than 141 points; the Nasdaq was down 48. The S&P 500 lost nearly 17.

If the malls seem less crowded, it could be higher gas prices. Analysts say retail sales were weaker than expected in April, and that may signal a slowing of the economy.

And bankrupt auto parts maker Delphi is demanding that workers take a 40 percent pay cut, but today it unveiled a plan to pay thousands of white-collar managers $60 million in bonuses -- a move not likely to reduce the threat of a strike from the auto workers union.

On now to our last story. We found a gas station where the customers actually look forward to seeing the price. That's because they're paying less than $2 a gallon. How do they do it? And how do you get there from here? That's next. And then at the top of the hour, "LARRY KING LIVE" has Merv Griffin on, who will talk about his decades as a talk show giant.

But first, number three in our cnn.com countdown. Our top story tonight: The report that the National Security Agency has collected phone records on millions of Americans since the 9/11 attacks. President Bush defends the program, but this adds to the controversy over General Michael Hayden's nomination to be CIA chief. Hayden used to oversee the surveillance program.

Number two on our list is next.

(COMMERCIAL BREAK)

ZAHN: Here's our nightly look at gas prices across the country. We call it "Crude Awakenings." The states for today's highest prices are in red, the lowest prices in green and the average price for unleaded regular, $2.91, that's two cents higher than yesterday.

Now there is place where gas still costs what it did six months ago, and even a year ago, even four years ago. Yes, you heard it right. In some cases, people are actually paying less than a dollar a gallon. How is that possible? Well you just have to know where to shop.

(BEGIN VIDEOTAPE)

ZAHN (voice-over): With all those miles of highways and all of those millions of gas stations, you just knew this had to happen somewhere.

UNIDENTIFIED MALE: I bought it for 98 cents a gallon.

ZAHN: And this is that somewhere. St. Cloud, Minnesota is a short drive from Minneapolis and the first fuel bank makes the drive worth while.

UNIDENTIFIED MALE: I got it for $1.37, $1.18.

ZAHN: How are the customers doing this? They paid for their gas in bulk, as much or as little as they wanted, and they did months and even years ago to lock in cheaper prices.

UNIDENTIFIED MALE: $1,300, yes, I wrote out a check.

ZAHN: But now he's getting gas for $1.68 a gallon.

UNIDENTIFIED MALE: I said honey, I just know gas prices are going to go up.

UNIDENTIFIED MALE: Jason, I'd like to visit, but I've got to run in.

ZAHN: Jim Finus (ph) started the fuel bank in 1982 and says he's never taken a vacation.

UNIDENTIFIED MALE: Gas is up 375, heat's up 600.

ZAHN: Don't let the mom and pop atmosphere of his office fool you. Finus (ph) is hot wired into the oil market. His underground storage tanks are six to eight times larger than the tanks of a typical filling station. Finus (ph) says he's happy, healthy, debt- free and pays his taxes and his customers are making a killing.

UNIDENTIFIED MALE: I made $1.99, that's what I'm at.

ZAHN: The first fuel bank has 8,000 members right now and anyone's welcome. They have six locations in the St. Cloud area. Are you tempted to move to Minnesota yet? Here's a reminder of what you're missing. Not that, this.

UNIDENTIFIED MALE: I'm putting in 8.5 gallons, cost me $8.41.

(END VIDEOTAPE)

ZAHN: I want that. No matter what it costs to fill up, how would you like to drive off into the desert sun and do what you really like, instead of being stuck in a dead end job? Our next report may provide all the motivation you need. In tonight's "Life After Work," Jennifer Westhoven introduce us to a couple of financial planners turned fossil hunters.

(BEGIN VIDEOTAPE)

JENNIFER WESTHOVEN, CNN CORRESPONDENT (voice-over): Jimmy and Judy Smith are out in the desert searching for bones of prehistoric life like saber-toothed cats and giant sloths.

JIMMY SMITH, PALEONTOLOGIST: You really would have to go look at it to see if it's bone, but I think I know what it is.

WESTHOVEN: They left jobs as financial planners to hunt for fossils hidden in the hills of southern California.

JIMMY SMITH: Look at this. I wonder what that is.

WESTHOVEN: Jim's curiosity about the earth was sparked years ago when he was an Air Force pilot.

JIMMY SMITH: I was always up looking down at the earth and looking at strange kinds of formations and wondering what the heck was going on there.

JUDY SMITH, PALEONTOLOGIST: Over here are some more of the bones of mammoth bones. We've educated ourselves in the field of paleontology to a working level. Over here we have giant land tortoise. WESTHOVEN: Now they drill and dust and teach California school children about the prehistoric camels, mammoths and birds that roamed the earth millions of years ago.

JIMMY SMITH: We have very few worries and very much excitement. And I couldn't imagine a better situation than to live say the last third of your life.

WESTHOVEN: Jennifer Westhoven, CNN.

(END VIDEOTAPE)

ZAHN: Good for them. "LARRY KING LIVE" starts in just a few minutes. Tonight one talk show legend interviews another, Larry's guest Merv Griffin.

Right no onto No. 2 in our CNN.com countdown. The latest sign that Tom Cruise's popularity may being slipping. A new "USA Today"/Gallup poll shows 35 percent of you had a favorable opinion of him while 51 percent had an unfavorable opinion. Cruise's latest movie "Mission Impossible III" opened last weekend with lower than expected ticket sales, at least here in the states. He had pretty good sales overseas.

As for the No. 1 story, do you recognize this guy? Why are lots of people so upset about the latest twist in his career? Find out next.

(COMMERCIAL BREAK)

ZAHN: Top story on CNN.com. The stunner on "American Idol." Contestant Chris Daughtry who many expected to be the last singer standing, was booted off by voters. So we're now down to three hopefuls who remain. Their winner will be chosen later this month. That's it for all of us tonight. Tomorrow a controversial brand new T.V. channel that is just for babies. What would a six-month-old actually watch and why are some people so upset about this brand new channel? That's tomorrow night. Until then, have a great night. Thanks again for dropping by tonight. Good night.

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

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