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Two Winning Tickets Sold in Mega Millions Lottery; Consumer Group Reports on Biggest Congressional Pork Spenders; Pelosi and Durbin Meet with Bush
Aired March 07, 2007 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Hello, everyone. I'm Kyra Phillips at the CNN world headquarters in Atlanta.
A suspected kidnapper caught -- a 13-year-old boy managed to escape. Now the man accused of dragging him away from a school bus stop is in custody.
Millions of dollars apparently still unclaimed -- a record- breaking lottery prize raises a $370 million question: Who are the winners?
Pork projects -- did the government really need to spend $1 million for that telescope to find space aliens?
You're live in the CNN NEWSROOM.
Somewhere in Georgia or a neighboring state and New Jersey or a neighboring state, two people are walking around today with very big smiles, knowing they will soon have very big bank accounts. They are yet to come forward, but they're holding the winning tickets for the huge Mega Millions lottery jackpot.
One was sold in Dalton, Georgia, another in Woodbine, New Jersey.
Our Rusty Dornin and Allan Chernoff are in the lucky locations.
Allan, let's start with you in New Jersey.
ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Well, Kyra, we know this much. We know that there is a multimillionaire who did walk through the door into this liquor store and buy one of these tickets, the winning ticket, right over here.
Who that person is, well, I can tell you this much. The rumor mill is turning, and turning very rapidly, not only right here in the liquor store, but next door at a bar. People are really wondering, thinking, hmm, I think I know who it is.
And the speculation is that it's somebody who lives right nearby.
(BEGIN VIDEO CLIP)
CASSIE RED, BARTENDER: There's a lot of speculation going around, a lot of chitchat. This morning, they thought it was the janitor at one of the schools. They thought it was a crossing guard at one of the schools. And now we hear that it's a lady that works at the Woodbine Developmental Center. It's a state school.
(END VIDEO CLIP)
CHERNOFF: Well, there is somebody at that school who a supervisor confirms did call in, saying that she did win the big prize. We don't know yet if that actually is the case.
But the big prize here in New Jersey, $185 million, half of that Mega Millions jackpot. After taxes, it comes out to $5.3 million a year -- Kyra.
PHILLIPS: All right, we will keep checking in. Thanks so much.
Rusty Dornin, let's go to you now in Dalton, Georgia. Any word from there?
RUSTY DORNIN, CNN CORRESPONDENT: Well, Kyra, rumors are also rampant here. We have heard it's possibly a truck driver in the area. And then we heard perhaps it was a worker in one of the carpet mills.
We're going to show you, right across from the street from the Favorite Market 41, where the ticket was bought, is the Queen. That is one of the carpet mills that are popular in this area in Dalton, Georgia, which is well-known for making carpets across the United States.
But, of course, here, they're still waiting for the people to come forward -- a lot of customers coming in with tickets in hand just in case.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: We're having people coming in. You know, they want to know what's going on. And they -- of course, they're checking their pockets, seeing if it's them, and, you know, checking their ticket.
(END VIDEO CLIP)
DORNIN: Now, the workers are still happy here at the store, because they get a little share of the money. It's $25,000 to the store here.
And, apparently, half of that's going to be given to the manager and the other half will be split among the six employees here. So, people are still watching and waiting. They say they're going to throw a big party when they find out who wins. And, even if they don't find out, they're going to have a party for the store employees -- Kyra.
PHILLIPS: That's...
(LAUGHTER)
PHILLIPS: Well, either way, they both win. Thanks, Rusty. Even if you didn't win the jackpot, lots of smaller prizes are up for grabs. Here's the winning numbers once again: 16, 22, 29, 39, and 42. The Mega Ball is 20.
As of tomorrow, Lisa Nowak will no longer be astronaut. NASA says her lofty assignment is being terminated by mutual agreement with the Navy. Nowak remains on active duty as a naval officer, and still faces charges that she tried to kidnap a romantic rival last month in Florida. She pleaded not guilty.
The power of persuasion, police in Florida used it to get their man, kidnap suspect Vicente Ignacio Beltran-Moreno. He's been on the run for almost two weeks, before police traced him to his native Mexico and found a number where they could reach him. After a series of phone chats, they persuaded him to return to the U.S. He's now in custody in Texas.
(BEGIN VIDEO CLIP)
MAJOR CONNIE SHINGLEDECKER, MANATEE COUNTY, FLORIDA, SHERIFF'S OFFICE: We had already been hearing from friends of -- and other members, people that were coming forward with information, calling in tips, that Beltran-Moreno might be, in fact, willing to turn himself in.
So, at that time, we had a discussion about that very topic, about him, in fact, turning himself in. We coordinated that, every day, we would speak with him and how we would go about coordinating that he would turn himself in at a border, a port of entry, at some point.
(END VIDEO CLIP)
PHILLIPS: Well, 13-year-old Clay Moore was taken at gunpoint from his Central Florida school bus stop 12 days ago. He was taped to a tree. But, in a move that police describe as MacGyver-like, he managed to free himself with a safety pin.
His family says they want to put the whole thing behind them, and arrest -- and the arrest helps.
(BEGIN VIDEO CLIP)
STEVE KELLE, STEPFATHER OF CLAY MOORE: We're just overjoyed. And we're glad that we can get past this and kind of make this a closure to another chapter of Clay's life and our lives.
(END VIDEO CLIP)
PHILLIPS: Well, extradition proceedings are under way to get Beltran-Moreno back to Florida.
The jury is out. Alleged child killer John Couey and the rest of us wait. Deliberations started in Miami just before noon Eastern time, after four days of testimony, in which the defense called just one witness, a psychologist, who testified Couey is mentally ill. The Florida man is charged with kidnapping and abusing 9-year-old Jessica Lunsford, who lived next door, then burying her alive. If convicted, he faces the death penalty.
Like mold on a wall, the Walter Reed patient neglect debacle keeps growing and spreading. At today's round of hearings on Capitol Hill, Representative Bill Young said that he and his wife were visiting military hospitals even before the scandal broke.
Conditions were so bad, they decided to take matters into their own hands.
(BEGIN VIDEO CLIP)
REP. BILL YOUNG (R), FLORIDA: Some soldiers didn't have the appropriate clothing at the hospital, because their belongings were left behind on the battlefield.
So, we bought them clothes and sweat suits, so they would be comfortable in their beds. We found soldiers doing rehab in the bloody boots they wore when they were injured. So, we bought them proper shoes. We found kids in housing whose parents were feeding them crackers and peanut butter, because they had to save money, since the Army's per diem money had not arrived. So, we bought them food, provided money for the long-term needs.
You know, General Kiley, we did not go public with these concerns, because we did not want to undermine the confidence of the patients and their families and give the Army a black eye while fighting a war.
(END VIDEO CLIP)
PHILLIPS: Well, President Bush has named a blue-ribbon panel to investigate veterans health care now.
CNN's Kathleen Koch is at the White House with more.
KATHLEEN KOCH, CNN CORRESPONDENT: Well, Kyra, those conditions that Congressman Young described, as well as the dilapidated building where some outpatients stayed at Walter Reed, the bureaucracy they wrestled with on a daily basis, it has all generated outrage not only around the country, on Capitol Hill, but certainly here at the White House.
So, President Bush, this morning, sat down with the two co- chairmen of the blue-ribbon panel that he has named, this bipartisan commission, to see if the problem exists at other veterans and military hospitals around the country.
But former Senator Bob Dole and former Health and Human Services Secretary Donna Shalala said, while solving the problems, it's important to remember that care at most veterans hospitals, including Walter Reed, is first-rate.
(BEGIN VIDEO CLIP) BOB DOLE, FORMER PRESIDENTIAL CANDIDATE: I must say, I think, in most cases, the care they receive, the medical care, you know, they think is excellent.
It's what happens when they either finish their care or move off to some outpatient area where we have the problems. And it's not fair. It's not fair to the family, obviously not fair to the veteran. And our charge is to see if we can come up with some ideas that might correct that.
(END VIDEO CLIP)
KOCH: As President Bush was meeting with the two commission co- chairs, Army Surgeon General Kevin Kiley was on Capitol Hill, also promising change. He was speaking not only in the House testifying, but also on the Senate side.
He heard Congressman Young's complaints. And he also accepted responsibility for what he said was the outpatient care at Walter Reed not meeting its past legacy of excellence.
(BEGIN VIDEO CLIP)
LIEUTENANT GENERAL KEVIN C. KILEY, U.S. ARMY SURGEON GENERAL: Over the last three weeks, you have learned that we are not living up to that legacy. And, for that, I am personally and professionally sorry. And I apologize to the soldiers and their families, the Department of Defense, to the members of the Congress and the nation for this.
I am commander, and I share in these failures.
(END VIDEO CLIP)
KOCH: Kiley also told Congress members that -- congress men and women that today would be the last day that there would be a patient in -- an outpatient in Building 18. That's the building where those problems with mold, mice, roaches, things like that, really persisted, and that building, he says, will be renovated.
PHILLIPS: All right, Kathleen Koch.
And you know we will follow it and stay on top of it.
You also may remember Tammy Duckworth from a congressional race last fall in Illinois. She lost, but not by much. And now she's the Illinois director of veterans affairs. Well, she's also a former National Guard pilot who lost her legs in a helicopter crash in Iraq.
With the Walter Reed controversy in the headlines, she talked about the treatment she received on "A.C. 360."
(BEGIN VIDEO CLIP, "ANDERSON COOPER 360")
L. TAMMY DUCKWORTH, DIRECTOR, ILLINOIS DEPARTMENT OF VETERANS AFFAIRS: I was in a semi-coma state for about 10 days. My husband, over and over again, for 10 days kept saying to me -- as he sat next to my bed, he kept saying: You were injured. You are safe. You're at Walter Reed. You were injured. You're at Walter Reed. You are safe.
And, even though I was coming out of my -- I was semi-conscious, when I woke up, I knew that I was safe because I was at Walter Reed. And that is precious. That is precious for our troops who are in theater right now, to know that that level of care will be there for them if they are injured.
I was injured in the second year of the war, in 2004. So, that was fairly early on. And, even then, there were issues with the bureaucracy. There were issues. I had a cockroach in my hospital room. At the Malone House, where my mother was staying, as she was helping to take care of me, you know, I saw mice in their cafeteria. I didn't eat there.
We would have meetings there, and we would bring in our own food. But I wouldn't eat at that cafeteria. So, there were already issues as far back as 2004, 2005.
I feel that the conditions at Walter Reed are a reflection of the complete lack of planning for the war, and the lack of planning for this war lasting as long as it has. And, so, Walter Reed, while it is medically the premier institution in the country, if not the world -- and I received the absolute best care while I was there, medically -- there was a complete lack of planning at the -- in the administration for, how are we going to take care of this many wounded warriors for as long as we are going to? Because they never even planned on us being at war as long as we have.
And, simply, Walter Reed is completely overwhelmed. And they do not have the -- the support, the logistics needed to handle this many on outpatient basis. And the bureaucracy is just terrible. And no wounded soldier who is heavily medicated, who may have a brain injury, should have to negotiate a bureaucracy like that.
(END VIDEO CLIP)
PHILLIPS: Well, even though she says they were overwhelmed, Duckworth has high praise for the doctors and staff at Walter Reed.
If you would like to watch the hearing live today and commercial- free, just go to -- online to CNN Pipeline, where it's being streamed. That's at CNN.com.
There are more U.S. troops in Iraq, but that doesn't seem to be slowing down the insurgents. The Iraq security sweep, is it working? Our Wolf Blitzer talked to the U.S. military spokesman in Baghdad. We will talk to Wolf -- straight ahead from the NEWSROOM.
Is America losing its competitive edge in the global economy? Microsoft founder Bill Gates tells Congress we need to allow more skilled foreign workers into the U.S. And, of course, our Lou Dobbs has something to say about that. He joins us live just ahead. And the New York pork report -- pork report -- say that three times really fast. Find out who's accused of wasting your tax money in Congress. A consumer group squeals on the big spenders. And we will tell you who they are.
(COMMERCIAL BREAK)
PHILLIPS: It's quarter past the hour. Here are some of the stories that we're working on from the NEWSROOM.
A jury in Florida deliberates the fate of John Couey, accused of kidnapping, raping, then burying 9-year-old Jessica Lunsford alive. Couey could face death, if convicted.
Also from Florida, police arrest a man accused of kidnapping a 13-year-old boy and trying -- tying him to a tree almost two weeks ago. The boy escaped. The suspect fled to Mexico, but, through a series of phone chats, police persuaded him to cross the border and surrender.
Have you been to Dalton, Georgia, or Woodbine, New Jersey, lately? Well, that's where at least two lucky people bought winning tickets for the Mega Millions jackpot. They will divvy up $370 million.
Look what these people are walking away from. It's amazing that they're walking at all. The crash of the Indonesian jetliner killed at least 21 people. More than 115 escaped. The plane flew into Jakarta Airport from the Indonesia capital of Jakarta -- or the Yogyakarta Airport, rather. It's a flight the survivors will never forget.
Here's CNN's Dan Rivers.
(BEGIN VIDEOTAPE)
DAN RIVERS, CNN CORRESPONDENT (voice over): Within seconds of overshooting the runway, Garuda Airlines Flight 200 was an inferno. This remarkable video was taken by a news cameraman who was aboard moments after he had scrambled out. In spite of injuries, he manages to film the awful scenes behind him -- inside the burning fuselage, passengers who weren't so quick, many horribly burnt, stretchered away by rescuers, who fought the flames for two hours.
But, incredibly, many did make it out alive.
RUTH BAMGGADAN, CRASH SURVIVOR: Suddenly, we got like a bomb. And then we hit the ground. And, when it stopped, I already see fire outside of the plane. I sat on the right side of the plane, so it -- the fire was outside the window.
RIVERS: Among the 140 passengers and crew were nine Australians preparing for a visit by Foreign Minister Alexander Downer.
ALEXANDER DOWNER, AUSTRALIAN FOREIGN AFFAIRS MINISTER: We have no reason to believe this was as a -- this accident was as a result of sabotage or a terrorist attack or anything like that. It does look like just a straight accident, where the aircraft apparently ran off the end of the runway.
RIVERS: Hospitals in Yogyakarta were inundated with more than 90 injured passengers and crew, with distressed relatives desperately praying for good news.
(on camera): What caused this plane to catastrophically overshoot the runway and burst into flames is still not clear. It's possible it was simply coming in too fast along the runway, skidding off the end and smashing through this fence. It is also possible there was a problem with the landing gear.
Either way, the Indonesian president has now ordered an urgent investigation as to why this flight ended in such horrible tragedy.
(voice over): Dan Rivers, CNN, Yogyakarta, Indonesia.
(END VIDEOTAPE)
PHILLIPS: Is America losing its competitive edge in the global economy? Microsoft founder Bill Gates tells Congress we need to allow more skilled foreign workers into the U.S.
And, of course, our Lou Dobbs has something to say about that. He's just ahead in the NEWSROOM.
The new pork is report out. Find out who's accused of wasting your tax money in Congress. A consumer group squeals on the big spenders. We will tell you who they are in the NEWSROOM.
(COMMERCIAL BREAK)
PHILLIPS: The richest man in the world has a poor assessment of America's students and high-tech work force.
In a rare appearance today on Capitol Hill, Bill Gates told a Senate committee the U.S. isn't cutting it, and our problems start in the classroom.
(BEGIN VIDEO CLIP)
BILL GATES, FOUNDER, MICROSOFT: The problem starts in our schools, with a great failure taking place in our high schools.
Consider the following facts. The U.S. has one of the lowest high school graduation rates in the industrialized world. Three out of 10 ninth-graders do not graduate on time. Nearly half of all African-Americans and Hispanic ninth-graders do not graduate within four years.
Of those who do graduate, and continue on to college, nearly half have to take remedial courses on material they should have learned in high school.
Unless we transform the American high school, we will limit the economic opportunity for millions of Americans. As a nation, we should start with the goal of every child in the United States graduating from high school.
(END VIDEO CLIP)
PHILLIPS: And Gates didn't stop there. He also took issue with the number of visas granted to skilled workers overseas.
It's a topic near and dear to our own Lou Dobbs, who joins us now live from Washington.
OK, Lou, what did you think? Did he make any valid points?
LOU DOBBS, HOST, "LOU DOBBS TONIGHT": He certainly has a valid point about the number of our students graduating from high school. One of the great shames is that half of Hispanic students, half of black students in this country are dropping out of high school.
What is troubling, to me at least, is that Bill Gates, in his position as the world's wealthiest man, appears before Senator Kennedy's committee as the sole witness, and then spouts off nonsense about H-1B visas. And it is precisely that. And Bill Gates is smart enough to know better.
Let me give you just a few facts here. And we're going to be reporting on this extensively tonight at 6:00 p.m. on our broadcast.
Kyra, the Pratt School of Engineering just did a study. Eighty- eight percent of the companies filling open positions are doing so within four months. Eighty-eight percent of them are offering no bonus to secure those employees.
The United States is producing -- now, these are four-year schools in engineering, computer sciences, and I.T. -- 137,000 graduates a year. India is producing 112,000. Seven-and-a-half percent of the students earning B.S. degrees in this country are foreign nationals. It's interesting, though.
When we go to graduate levels, then just about 60 percent of everyone earning Ph.D.s in these -- in these disciplines are foreign nationals. But what really drives me crazy about what Gates had to say -- and he's right about investing in this country, but my question is, why in the world isn't Bill Gates and other business leaders in this country demanding we invest in our public education?
Instead, they have been counting their money and playing games with their philanthropy, in a lot of the cases. This case, the Department of Labor -- he started talking about H-1B visas, at Microsoft, those workers making $100,000 a year.
Well, according to the Department of Labor, at his Microsoft, only 10 percent of his H-1B visa workers earn that much. So, we're not entirely sure what the good Mr. Gates had meant to say, but we do know this, that, according to the department of labor, the median salary of H-1B visa workers in this country are making $50,000 a year. It's ridiculous. Now, Kyra -- I'm sorry, go ahead.
PHILLIPS: Let -- a couple of -- a couple points that you brought up. And let me ask you.
DOBBS: Yes.
PHILLIPS: Let -- let me come back with -- with the numbers here.
DOBBS: Sure.
PHILLIPS: Because I was reading that Senator Orrin Hatch, he actually came up with a few numbers, too. He said that the Chinese are educating 300,000 engineers a year.
DOBBS: That's right.
PHILLIPS: OK? And we educate 60,000 a year, half of whom -- and you were adding to this -- are foreigners. And then they go back to their countries.
So, my question is...
DOBBS: Mm-hmm.
PHILLIPS: ... how do you get our students excited about math and science? How do you get them excited wanting to -- to take on an engineering career and stay here?
DOBBS: Well, the first -- the first thing you do is, you tell a leader, a business leader, like Bill Gates shut up, and think about what you're saying. You're saying that you want more foreign nationals in this country working for half the salary that you're talking about, $50,000 a year, instead of encouraging young men and women in this country to go through high school and to go through college and get advanced degrees in mathematics and natural sciences.
I mean, that's atrocious, what he's doing. And he's not thinking about that impact. In point of fact, he's talking about investing in education, public education, higher education in this country.
Then, Mr. Gates, why don't you do this? Why don't you tell the Business Roundtable, the biggest corporate representative in Washington, the U.S. Chamber of Commerce, the biggest business lobby in this country to shut up about nonsense and start focusing on real issues, like really getting behind improving our public education, really doing something, instead of playing games with all of these issues and working for the short-term interests that are so important to you, ahead of the national interests?
PHILLIPS: Do you have any idea how many foreign workers he has working for Microsoft, and how many U.S. workers?
DOBBS: I don't. And we have asked.
PHILLIPS: I'm -- I'm curious about that. DOBBS: Yes. I -- so -- so are we. And we have got calls into Microsoft. Our reporters and field producers are working on that right now.
We're having a little trouble getting them to answer that question, for some mysterious reason.
But, you know, with Bill Gates and others, Kyra, calling...
PHILLIPS: It would be interesting to see who's designing his software, Lou.
DOBBS: I'm sorry?
PHILLIPS: It would be interesting to see who's designing his -- his -- his software...
DOBBS: Well...
PHILLIPS: ... if it's a U.S. engineering student or -- or if it's someone from India or China.
DOBBS: Well, the fact of the matter is, the truth is, it doesn't -- I don't think it matters a bit to Bill Gates. He sits there in front of that committee on education, and I don't think it matters one whit to him.
Now, but let's put one other thing in perspective, as these good leaders in technology are calling for more H-1B visas. Now, you ready? Because he's saying that we're just about to have all those H- 1B visas expire.
Guess where 70 percent of those visa applications, H-1B visa applications, originate? From which companies? Want to guess, Kyra?
PHILLIPS: I have a feeling.
DOBBS: Not from American companies.
(LAUGHTER)
PHILLIPS: Overseas.
DOBBS: But from -- not only overseas, but specifically Indian outsourcing companies, Wipro, Infosys.
You know, this is -- this is so frustrating and infuriating to hear Gates stand up and do that. This is a man who could be doing a lot of good, but the first thing he's got to learn to do is talk straight and get his facts straight, and be a lot more concerned about what is happening to our students from K through 12 and higher education.
And this nonsense has got to end.
PHILLIPS: Well... DOBBS: And the fact that the world's richest man can stand there as the sole witness on this committee on education before Senator Kennedy, who's got a terrific track record in education, trying to do the right thing -- this nonsense has got to stop.
And the American people have got to understand, this is a Kabuki dance that is devastating to the truth and to the long-term prospects for millions of young Americans. We have got to contend with the reality.
PHILLIPS: Well, growing up with two parents that are teachers...
DOBBS: Right.
PHILLIPS: ... and seeing the condition of some of these schools, it's pathetic, with all the money we have in this country.
DOBBS: It's a national disgrace.
PHILLIPS: You make...
(CROSSTALK)
DOBBS: And it goes -- you know, the idea that this society that we have created, with this wonderful partisan ideological schism, that people love to identify themselves as Republicans and Democrats, instead of insisting that their communities work, that their schools work, because public education is the great equalizer in this great egalitarian society.
And the elites in this country are trying their damndest to destroy our fundamental national values. Ahead of even family values and ahead of all sorts of other social values, the first value in this country, we're committed to equality, equality of opportunity, equality of rights, equality of education and economic opportunity.
KYRA PHILLIPS, CNN CORRESPONDENT: Lou Dobbs, I wish now you would just one of these days take a stand and show an opinion. I appreciate it.
DOBBS: You know what, it's the easiest thing in the world because you don't have to worry about being a Republican or a Democrat or left or the right. I'm just a plain old simple American.
PHILLIPS: Amen.
DOBBS: And you won't have any trouble getting a straightforward perspective from me.
PHILLIPS: It's always great to have you Lou. Thanks so much.
DOBBS: Good to be with you.
PHILLIPS: All right. Bill Gates this hour. But tonight at 6:00 Eastern, Lou tackles another controversial topic, underage drinking and substance abuse. That would be a tough one to take on with Lou. Both are on the rise in teenage girls across the U.S. Find out why on "Lou Dobbs Tonight."
After a rocky week, stocks are holding steady. Let's get the latest numbers from Susan Lisovicz. As always, she's back there at the New York Stock Exchange with all the details. Hey, Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Kyra, I'm going to give you some straight talk too.
PHILLIPS: You and Lou, nothing but straight talk.
LISOVICZ: It's been a rocky ride. And you know what, today's been pretty quiet comparatively speaking. The Dow at this point clinging to modest gains. We got a report that was mostly positive on the economy an hour ago. It's called the beige book released by the Federal Reserve. That was helping to reinforce the buying, but well, I don't know, I'm not sure how we're going to be at the closing bell. There is uncertainty about what we can expect going forward and we have the big jobs report on Friday. That could certainly be a catalyst one way or another. Checking the numbers, the Dow industrials are still up 15 points, 12,222. The Nasdaq is down about 25 percent. The S&P 500 is flat.
Moving away from the markets to the story of one of the most successful business entrepreneurs in American history. His name, Ernest Gallo. The founder of the winery that bears his name, he died yesterday at age 97. The Gallo winery is the world's second largest wine company by volume behind only Constellation Brands of New York. But the company had humble beginnings. In 1933, just after the repeal of prohibition, Ernest and his brother borrowed about $6,000, got a recipe from the Modesto, California, public library and rented a ramshackle warehouse. The entire family pitched in and they sold wine for just 50 cents a gallon, half the going rate. E & J Gallo winery was born. Kyra, I know firsthand that you are a wine connoisseur. Here's the question of the day.
PHILLIPS: Come on now, you and I both like our good wines, but I don't know if I can say I'm a connoisseur.
LISOVICZ: We appreciate the finer things in life. What's the name of Ernest's brother? His first initial is in the name of the winery J, Ernest and blank Gallo.
PHILLIPS: Wow. The only -- my director just said Julio.
LISOVICZ: Julio. And Ernest and Julio were very successful. "The New York Times" says Gallo produces 80 million cases of wine a year, everything from jug wines and boxed wines to more sophisticated stuff. Ernest Gallo was one of the country's wealthiest men because of it, making the Forbes list of the 400 richest American family worth an estimated $1.2 billion, family still at it. That's the latest from Wall Street. I'll be back in 30 minutes for the closing bell. You're watching CNN and now you're watching Kyra, back to you.
PHILLIPS: All right Susan, thanks so much. I'm getting word now, Speaker of the House Nancy Pelosi, she had met with the president today for some discussions. She's speaking to reporters. Let's listen in.
NANCY PELOSI (D) HOUSE SPEAKER: Immigration, trade, et cetera. We also talked about the commission that the president's putting together on -- and Mr. Durbin will speak to that, but the commission on Walter Reed. It was our hope that Senator Reid, Leader Reid and I left the president a letter asking that the commission represent the diversity of our men and women in uniform who are fighting in Iraq and Afghanistan or have recently fought there. Again, we talked about a number of subjects in a very positive way on how we can work together in the future. Mr. Durbin.
REP. DICK DURBIN (D) ILLINOIS: Thank you, Speaker Pelosi. Walter Reed was an issue that came up frequently as it should. The choice of Senator Dole and Secretary Shalala to lead this commission is a good choice. They are two people who have devoted their life to public service and have clear talents and skills. But we really need to expand the base of people on this commission to include those who have served in Iraq or Afghanistan, recent veterans and soldiers who have gone through this process and can bring firsthand experience so that we don't repeat the mistakes that have been made obviously in the last few months.
I also asked a question which I think is at the heart of this. It's a question about our situation in Iraq. How much longer this war will go on, how long will the surge be before we can make an evaluation because ultimately, there will have to be a decision made by this commission based on a projection of how many more injured soldiers we are going to be treating in the years to come. We're also going to face a supplemental bill soon, appropriation bill, money for our troops, money that's absolutely necessary, but I raise the question as to whether we should include money as well for military hospitals and Veterans Administration. I'd hate to ask this commission to make findings and then wait seven or eight months to respond until the next fiscal year.
So once having identified this problem, we need to move on it with the right people on a timely basis, put the resources in place immediately. It is just inexcusable these men and women have sacrificed so much for this country and now have to be subjected to flop house atmospheres near the Walter Reed hospital, fighting the bureaucracy when they're trying to overcome their own illnesses and turning to families that are praying for their safe return as their only advocates in the last moment. So this is an issue that came up several times during the course of our meeting today.
PHILLIPS: Since the Iraq study came out a few months ago, members of congress continue to meet with the president and have back and forth discussions on how to go forward in Iraq, whether it's the conditions for soldiers at the hospitals here at home or how they're handling funds and support for men and women who are in the armed forces overseas. We'll continue to follow these various meetings and bring you updates. We're continuing to listen to this as well. We'll take a quick break. More from the NEWSROOM straight ahead.
(COMMERCIAL BREAK) PHILLIPS: A suicide bomber, a big crowd and major casualties, a fact of life in Iraq these days and today is no different. Wolf Blitzer talked with the U.S. military spokesman in Baghdad. He joins me live to debrief. Hi, Wolf.
WOLF BLITZER, CNN CORRESPONDENT: Hi Kyra. Thanks very much. Major General William Caldwell, he spoke with us earlier and he described what is a very disturbing pattern right now of al Qaeda in Iraq or as he calls it AQI trying to foment more sectarian strife between Sunni and Shia. This is what happened earlier today he says in the Deallah (ph) province, 20 or 30 individuals were killed in the latest suicide bombing attack. Listen to how he explained the strategy of al Qaeda in Iraq.
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GEN. WILLIAM CALDWELL, US ARMY: Watching it closely both the suicide vests and the car bombs because it is the number one thing that the AQI can use that causes high profile sensational attacks that can inflict a massive amount of civilian casualties and they'll use those wherever they can in trying to start that whole retribution cycle again and start the cycle of violence.
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BLITZER: And that's precisely what U.S. military officials fear, that this cycle of violence, the sectarian violence, the fomenting of this kind of civil war, if you will, that could derail this entire U.S.-led security sweep that's going through Baghdad right now, also going through the al Anbar province. While he says things at this very, very early stage are moving in the right direction, there's deep fear that things could obviously go backward if this kind of -- these kinds of suicide attacks continue.
PHILLIPS: We look forward to talking to you at the end of hour and also the (INAUDIBLE) and Wolf, you're probably going to be talking about this. We're just getting word now that there is a verdict in the John Couey trial. This is John Couey right here. You may remember, he was arrested after killing Jessica Lunsford. You remember this case that we followed for months on end. She was found buried actually right there in the neighborhood with which she lived. He had apparently strangled her, buried her alive. He was living with a family member there in Florida. We are told now there is a verdict in this trial. Our Susan Candiotti is following it. We'll bring that to you as soon as it is read.
President Bush says that he's sad about Lewis Libby. And as you know, Vice President Cheney's former chief of staff was convicted yesterday of lying, perjury and obstruction of justice in the CIA leak case. Mr. Bush reacted in an interview today with our sister network CNN en Espanol.
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GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: This was a lengthy trial on a serious matter. And a jury of his peers convicted him and we've got to respect that conviction. Secondly, this is an ongoing legal matter. And there's more legal procedures to take place. And at this time, it's inappropriate for me or the administration to be, you know, issuing comments about the serious matter. On a personal note, I was sad. I was sad for a man who had worked in my administration and particularly sad for his family.
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PHILLIPS: The president also talked about the Walter Reed hospital scandal. He's appointing a commission now to investigate reports that wounded warriors from Iraq and Afghanistan are getting substandard care.
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BUSH: I say anything other than excellent care is unacceptable. And you know, I've been to Walter Reed a lot. There's some fantastic doctors and nurses and healers. And yet, we found that there were some substandard care in a part of that -- in part of that organization and we're going to correct it. And I put the commission together, a series of commissions to make sure that we fully understand the truth, fully elevate the problems so we can solve them.
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PHILLIPS: Those remarks came in an interview with Juan Carlos Lopez on CNN Espanol. Juan Carlos will be traveling with the president tomorrow when Mr. Bush sets out on a six-day long tour of Latin America.
Once again, want to remind you, there is a verdict in the John Couey trial. The man accused of murdering little Jessica Lunsford in Florida. We will take that live as soon as we hear the verdict. Also the new pork report is out. Find out who's accused of wasting your tax money in Congress. Consumer group squeals on the big spenders from the NEWSROOM.
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PHILLIPS: And this just in. We have heard that there is a verdict in the John Couey trial. The convicted child molester and alleged child killer sits right now in the Florida courtroom. You see him there with his head bowed. The other side Jessica Lunsford, the victim in all of this, her father standing up side by side. Remember the nine-year-old was murdered. The search for the victim took five times as long as this testimony. We're going to go live to Susan Candiotti now. She's following this. Susan, are you in the bureau or outside the courtroom?
SUSAN CANDIOTTI, CNN CORRESPONDENT: No, I'm in our office and I'm watching this live feed just as you are. You know, this trial was extremely short. It took longer to select the jury a couple of weeks than it did to actually hear trial testimony, trial testimony only having gone on for about four days. And here we are with a verdict after only about four hours or so. The jury only had one question and it really wasn't that. They each wanted individual copies of the jury instructions to consider once they started just before noontime today, clearly worked through lunch, presumably and here they are with a verdict.
Key testimony on this -- in this case, most of it coming from of course the prosecution. They presented all kinds of blood and DNA evidence that indicated that Jessica Lunsford was in the trailer where John Couey was living. Fingerprints were found on a pizza box that was discovered in the closet of that trailer. They also found blood and semen on a mattress they presented to the jury and there was testimony that that matched Jessica and John Couey. So very strong evidence on the part of the prosecution to sum that up, just to remind everyone what happened in this case back in February of 2005.
Nine-year-old Jessica Lunsford was reported missing. She disappeared in the middle of the night after her grandparents had put her to bed. Her father not home at the time, but in the morning, she was gone and she was missing for several weeks. And it was only after a man by the name of John Couey was picked up in Georgia and after interrogating him, he allegedly told police where Jessica Lunsford was and also gave them a confession, but the judge, before this trial started months before, threw out that confession. It was a very controversial move but one hailed by legal experts because in effect, Couey had been read his Miranda rights. He asked for an attorney and he wasn't given one. The questioning continued.
Therefore, the judge said the jury cannot hear those words. So now we are waiting to hear whether the prosecution's case was strong enough for this jury to convict or to acquit John Couey. Remember, a very, very gruesome crime. It is alleged that Couey took that little girl from her bedroom out of her bed, allowed her to take a stuffed toy dolphin with her, took her allegedly across the street to this trailer where he was living. This is a man who was a sex offender who was on parole but had violated it by not properly registering himself with the county.
In any case, he then allegedly raped her, dug a hole behind the trailer, buried her in the ground, stuffed her after having stuffed her inside a garbage bag, tied her wrists up with speaker wire allegedly, and then she was buried alive allegedly. There was evidence that her fingers were poking through the holes of that garbage bag and the medical examiner testified that this was done while she was still alive. So very powerful evidence in this case, Kyra. And it will be interesting to see how this panel of six men and six women decide, what they decide.
PHILLIPS: Susan, stay with me. We've got Jeffrey Toobin on the line, as well. And Jeffrey, you've been following this case and you look at all that physical evidence. It's overwhelming. Susan laid out -- I mean, there are a lot of the details. There is a lot of testing that has been done. I can't imagine that John Couey is going to get an easy break in any way here.
JEFFREY TOOBIN, CNN CORRESPONDENT: Kyra, we've all covered a lot of horrible crimes, but if this isn't the absolute worst one I've seen, it's certainly close. It is just such an unspeakable crime. The evidence is so overwhelming. You know, my credit to Susan for using the word allegedly over and over again, but boy, it doesn't seem very allegedly to me. This seems like about as open and shut case as you can get. And I don't think the jury's going to have any problem with it.
PHILLIPS: What does he face?
TOOBIN: Death, a death penalty case and you know...
PHILLIPS: Is there any way he can get out of that?
TOOBIN: You know, I mean, I think the only way to get out of it is if there are people who have a simply conscience-driven objection to the death penalty. This is a good test case for opposition to the death penalty. Because it is about -- he seems to me at least about as deserving of the death penalty. But there are lots of people who simply don't believe in the death penalty. Most countries in the world don't have it any more. But if you're going to have a death penalty, it's hard to think John Couey is not going to be eligible for the death penalty.
PHILLIPS: Susan, wasn't he a registered sex offender?
CANDIOTTI: Yes, indeed he was. In fact, back in 1991, he was convicted of fondling a five-year-old little girl. And there was another case where he had allegedly molested a 12-year-old girl, had broken into her bedroom, kissed her, escaped. He was not charged in that particular crime but was found guilty of a probation violation. And again, when he was picked up on this crime, he had violated his probation by not properly registering. He wasn't supposed to be living where he was living without notifying authorities. So he was out on that. He's actually charged with murder in the first degree, burglary of a dwelling, this trailer with battery, in this case on Jessica Lunsford, kidnapping, and sexual battery on a child under the age of 12. That murder in the first degree involving a minor makes him eligible, of course, for the death penalty. His -- Jessica Lunsford's mother and father were separated shortly after of she was born and he, Mark Lunsford, raised her. The father has become a proponent for trying to keep sex offenders behind bars, toughening laws on those who violate their probation and that's what he's been doing. You're looking at Jessica Lunsford's mother there on the left hand side of the screen and her grandfather standing next to her there to her right.
PHILLIPS: If you were to try to find something positive when all of this -- I think you bring up a good point, Susan, that Jessica's killing prompted Florida and a number of other states to pass new laws cracking down on sex offenders and improve the tracking of them.
CANDIOTTI: They do to a degree but of course, it always comes down to money to implement these improvements. And there are only so many law enforcers who can go out and try to track down these people. And they do do sweeps from time to time but clearly it is not done often enough because time and time again, these crimes do happen. So that's been a problem not only in the state of Florida but in other states and that is trying to get the funding to back up these words of politicians who say they want to change the laws and make them tougher and get things done.
PHILLIPS: Jeffrey, do you think it's made a difference with regard to new laws, at least trying to get them moving forward? I know there was also a new Justice Department database that was supposed to have been put together after all of this had happened. So when you look at former sex offenders like John Couey, someone who had already committed crimes against children and here he is on the streets. He's not registering and now look what happens. It results in the death of a beautiful nine-year-old girl. Do you think that this could push those laws forward, and what do we know about this Justice Department database, if it has been up and running yet?
TOOBIN: It already has had a significant impact in one direction that the law is moving is, once sex offenders, especially sex offenders who abuse children, complete their prison sentences, some states are moving towards what's called civil commitment where they are essentially still in custody after they've completed their criminal sentences. This is a hard legal issue because it essentially means that sex offenders can wind up with life in prison for crimes that they are not actually sentenced to life in prison for because of this civil commitment added to the end.
That does raise a difficult civil liberties question, but many people, especially people are moved as many are by the Jessica Lunsford case say you know what? Too bad. That is not a chance we're willing to take. Is having people who are sex offenders with children out on the street. It's a crime, notoriously high repeat offenders with recidivism rates that are very high. And we want to stop it however we can. Money is a big issue. It costs a lot of money to keep people in prison. It costs a lot of money to monitor them if they're out. But these cases are so horrific, that sometimes politicians put money behind their speeches.
PHILLIPS: Susan, we're looking obviously at the live picture of John Couey and also Jessica Lunsford's father. You mentioned that we saw a quick shot there of Jessica's mother. Do those two not talk at all? It looks like they're separated in the courtroom. He's really been the vocal one throughout all of this. What is the situation with the family right now?
CANDIOTTI: They've all been obviously deeply hurt by this. You know, there isn't much contact between the divorced parents, but obviously everyone came here for the trial. They're all on the same team obviously and would like the same kind of result. It's been very difficult on the father. He has been very comfortable in talking with the press about what he wants to have happen here. There's no doubt about that. He has oftentimes said that he hopes John Couey will rot in hell, regardless of whether he is convicted. In any case, you saw tears streaming down his face during the course of this trial. It's just been one of the most horrific crimes that anyone can remember.
PHILLIPS: Susan Candiotti there following as we wait for a verdict in the case of John Couey. You remember the horrible murder of nine-year-old Jessica Lunsford. It was a story that we had been covering for months. Now we're told just a couple minutes before the hour that we will have a verdict in this case and find out the fate of John Couey.
Jeffrey Toobin also on the phone with us, our legal analyst. I had heard the attorneys talking about his mental state and using the defense that look, he's mentally ill and we need to consider other options and try to I guess they were using it is a way to try to explain why he did what he did. At this point, do you think that anybody, anyone in that jury pool would feel any sympathy towards this man mentally ill or not? Jeffrey Toobin.
TOOBIN: You're talking to me? I thought you were talking to Susan. Sympathy I think is out of the question. I think in any case, you can be -- you can always raise an issue about the difficulty of imposing a death sentence. There are some people who simply -- who can be moved on the question of the death penalty because they feel like society can be protected if someone, even a murderer, is in prison. But in terms of conviction, in terms of guilt or innocence, I can't imagine anyone having even the slightest doubt about this case and no sympathy at all. The penalty phase may well be a different story. I think the odds overwhelmingly favor a death sentence, but certainly at this stage, which simply deals with the question of whether he did it or not, there won't be any sympathy and I doubt there will be any struggle on the part of the jury. They reached this verdict quickly.
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