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Congress Investigates Skyrocketing Oil Prices; California Officials Search For 11 Hikers; First-Hand Account From Survivor of Child Prostitution

Aired June 25, 2008 - 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: Cheaper gas in 30 days? Nobody is promising anything, but many in Congress are speculating as they contemplate a crackdown on speculation.
DON LEMON, CNN ANCHOR: Outward bound, but where? A two-week adventure in the California mountains takes a scary trip for teenage hikers and their chaperones. Now the search is on.

(BEGIN AUDIO CLIP)

OPERATOR: Nine-one-one. What is your emergency?

MADELYN: My momma fell down.

OPERATOR: OK. Your momma fell down?

MADELYN: Yes.

OPERATOR: OK. Where are you at?

MADELYN: My house.

(END AUDIO CLIP)

PHILLIPS: And that's the house where a very lucky mom is very glad that she taught her 3-year-old the numbers 911.

Hello, everyone. I'm Kyra Phillips live in New York.

LEMON: And I'm Don Lemon in Atlanta. You're live in the CNN NEWSROOM.

We have some breaking news, Kyra. We want to get right now to...

PHILLIPS: We will take you straight to Woburn, Mass.

LEMON: Yes.

PHILLIPS: And, apparently, there's a verdict in the case Neil Entwistle, accused of double murder. Let's listen in.

(JOINED IN PROGRESS)

UNIDENTIFIED MALE: ... charging the defendant with murder in the first degree. What say you, foreperson? Is the defendant guilty or not guilty?

UNIDENTIFIED MALE: Guilty of murder in the first degree of Lillian Entwistle.

UNIDENTIFIED MALE: By indictment number 2006-387003 charging the defendant with possession of a firearm, what say you, foreperson? Is the defendant guilty or not guilty?

UNIDENTIFIED MALE: Guilty of the offense as charged.

UNIDENTIFIED MALE: By indictment number 2006-387004, charging the defendant with possession of ammunition, what say you, foreperson? Is defendant guilty or not guilty?

UNIDENTIFIED MALE: Guilty of the offense as charged.

UNIDENTIFIED MALE: Members of the jury (INAUDIBLE) the verdict is recorded by the court. The jurors on the roll present that in the case of the Commonwealth vs. Neil Entwistle Indictment 2006-387001, you find the defendant guilty of murder in the first degree. To indictment 002, you find the defendant guilty of murder in the first degree -- 003, possession of a firearm, you find the defendant guilty. And then 004, possession of ammunition, you find the defendant guilty.

So, say you, foreperson?

UNIDENTIFIED MALE: Yes.

UNIDENTIFIED MALE: So say you all, members of the jury?

JURY: Yes.

UNIDENTIFIED MALE: Please be seated.

UNIDENTIFIED FEMALE: Ladies and gentlemen, I'm going to come in and speak with you personally in the jury room in just a few moments.

But, before doing so, I want to thank you here in open court for your service in this case. You have been here for close to four weeks, and I know that your presence here has required sacrifices on your part and has imposed burdens on your family members, co-workers, and employers.

But, as you know, our system of justice depends upon the willingness of people like yourselves to make the sacrifices necessary to serve as jurors when you're called to do so. I want to especially thank the alternates for their service in this case. I know it must be frustrating to sit and listen to the evidence and then not be permitted...

PHILLIPS: Well, the story went global, and now the verdicts have gone global. We're just finding out 29-year-old Neil Entwistle found guilty on all counts. A jury had been deliberating his fate.

Now the double murderer in a second day of deliberations is found guilty on all counts, Neil Entwistle accused of killing his wife, Rachel, and daughter Lillian in Hopkinton in 2006. You remember prosecutors said that Entwistle was despondent over his debt, that he had gambling problems, and he was unsatisfied with his sex life.

The defense came back and said Rachel Entwistle, his wife, was depressed and killed herself and her daughter.

This started in 2006. Now in 2006, you can see his face, 29- year-old Neil Entwistle, not much of an expression there as he is found guilty on all counts.

We will continue to follow the outcome and see if indeed he steps up, if he has anything to say, if his lawyers talk. Just watching his emotions there, it looks like he's building up a little bit of emotion.

Guilty on all counts, Neil Entwistle. We will follow it throughout the afternoon -- Don.

LEMON: And, if anything happens, Kyra, yes, absolutely, we will get back to that. We wanted to bring that to you right off the top of the newscast. The only thing, the emotion, Kyra said, not much. He closed his eyes as they were reading that verdict once for a very long period of time.

But, again, if he steps up, as happens, or sometimes family members on the other side will step up to talk and say what they have to say to him.

So, we will move on now and talk about skyrocketing gas prices. They're affecting everybody in this country. Congress is again looking for answers, holding a hearing on Capitol Hill today. Lawmakers are examining global energy issues and ways to end or limit excessive speculation, believed to be partly fueling the price spike. If they do act, well, we could see cheaper gas in a month.

(BEGIN VIDEO CLIP)

FADEL GHEIT, OPPENHEIMER & COMPANY: Within 30 to 60 days, I think we could see much lower gas prices. I think, if the government tightens regulation -- I'm not saying that we do not need speculation. We need speculation that is sufficient to keep the liquidity in the market. But when speculation overtakes that physical market, then the government has to do something.

(END VIDEO CLIP)

LEMON: But an energy analyst says finding a fix may not be so simple.

(BEGIN VIDEO CLIP)

DR. DANIEL YERGIN, CHAIRMAN, CAMBRIDGE ENERGY RESEARCH ASSOCIATION: We really are in an oil shock, and you have all addressed how painful it is for consumers and businesses. The specter of stagflation is once again in front of us, low growth, high inflation. We have discussed how oil prices have gone up. In such circumstances, this tendency is to try and find a single explanation. For something this big, there is not a single explanation.

(END VIDEO CLIP)

PHILLIPS: Important news now for your pocketbook. Last hour, the Fed decided to hold a key interest rate steady at 2 percent. The federal fund rate is a benchmark influencing borrowing costs and it affects all kinds of loans, from home equity lines to financing for large corporations.

And the decision today marks the first time in 10 months that the Fed has not dropped interest rates at one of its regular meetings.

Now, find out if today's decision had any effect on the stock market in just a few minutes when we check in with our Susan Lisovicz. She is live at the New York Stock Exchange.

And a lot more on the Fed's decision later next hour of course in "THE SITUATION ROOM."

LEMON: Well, dozens of volunteer mountaineers are helping in the search for 11 hikers. Nine of them are teenagers who set off on an outward bound adventure in the Central Sierra Nevada 11 days ago. They're due back on Friday. But searchers set out after the group failed to meet up with a guide.

(BEGIN VIDEO CLIP)

DEPUTY CHRIS CURTICE, FRESNO COUNTY SHERIFF'S DEPARTMENT: The area that we're searching is an approximate 20 to 25 square miles. It's an area that we have searched before on other searches. So, the SAR team is well aware of it and familiar with the area.

(END VIDEO CLIP)

LEMON: Searchers say the group should have enough supplies to last through the week.

PHILLIPS: And a whole community is in shock. Folks in Henderson, Kentucky, woke up to learn fellow townspeople were killed overnight while at work.

More now from Fredricka Whitfield in the newsroom -- Fred.

FREDRICKA WHITFIELD, CNN CORRESPONDENT: Well, that gunman committed suicide, but not after taking the lives of others. Police are trying to sort out exactly what happened at the Atlantis Plastics plant just after midnight.

(BEGIN VIDEO CLIP)

SGT. JOHN NEVILLES, HENDERSON POLICE: He had words with a supervisor, according to a witness. A short time later, he left on his regular break, was gone approximately 30 minutes. He came back. Witnesses saw the supervisor and the shooter walk outside together. They heard a gunshot. And then the shooter come back inside the plant and shot numerous people.

(END VIDEO CLIP)

WHITFIELD: Police say at least one shooting victim did survive and is in the hospital. Meantime, the identity of the shooter has yet to be revealed -- Kyra and Don.

PHILLIPS: All right, Fred, thanks.

Well, North Carolina investors call the death of a pregnant U.S. soldier suspicious. Megan Lynn Touma was a dental specialist with the Army's 19th Replacement Company. She was 23. Well, her body was found over the weekend at a motel in Fayetteville just days after she arrived at Fort Bragg from Germany. Investigators say they don't know how or exactly when she died. She was seven months pregnant, by the way.

And how much punishment is too much? In two long-awaited decisions, the highest court in the land ruled the death penalty unconstitutional for the crime of child rape. And it slashed the punitive damage award facing Exxon for the Valdez oil spill of 1989. In that case, a jury awarded more than 30,000 Alaskan plaintiffs $5 billion. An appeals court cut that in half, and, today, the Supreme Court cut it further to $500 million. That's about $15,000 for every person who sued all those years ago.

The child rape case from Louisiana led justices to hold that murder is the only violent offense deserving of capital punishment.

LEMON: An agonizing wait in Winfield, Missouri, where the Mississippi River is still rising, putting pressure on the only remaining earthen levee in that county.

It's already so waterlogged, only National Guard soldiers and firefighters wearing life vests are being allowed anywhere near it to stack those sandbags. Emergency workers say as little as a two-inch wake from a passing boat could break the levee. And if it gives way before the river crests today, about 100 homes and businesses, a city park, and a lot of farmland will be under water.

Karen Maginnis joins us now in the CNN Severe Weather Center to talk about that.

And we certainly hope it doesn't break. But, boy, they're certainly teetering on the edge there.

KAREN MAGINNIS, CNN METEOROLOGIST: They really are.

This is the last earthen levee across the Mississippi that has yet to fail, but the odds are stacked against the Pin Oak levee there, because we have seen rain upstream. It's a fragile levee. There has already been some damage from what they think was a muskrat that dug a hole through the levee.

And we think, in the next several days, we're looking at another thunderstorm complex to move across the region. All right, want to show you an area right around Saint Louis. This is the region that we're watching, because that water's got to flow downstream somehow. However, upstream, this is where we have seen significant rainfall over the last 24 hours, in some cases, seven inches of rain in just four hours, as unbelievable as that is.

There you can see most of that complex has been a little bit further towards the north, but, nonetheless, we still have seen some precipitation right around Winfield. Now, you may remember, in the Old Monroe area, that is along the Cuivre River, and they are saying that they could see some major flooding as we go in there towards the weekend as well, maybe Friday.

Now, look at these rainfall totals, Linneus, Missouri, just about 8.5 inches of rainfall. You go all the way down towards Trenton, Missouri, and there's 3.5 inches of rainfall there. It's got to go somewhere.

All right, this is what we're expecting. That water is going to be flowing downstream towards the Pin Oak levee, in the vicinity of Winfield and old Monroe. The Mississippi will crest at Grafton on Saturday, at Alton along the Mississippi on Saturday, and moderate flooding for Saint Louis at 38.7 feet, cresting on Sunday afternoon.

LEMON: All right, Karen, thank you very much.

And, Karen, you just mentioned this. In Winfield, Missouri, the Pin Oak levee is holding, but just barely. But there are some residents who are not worried one bit, because they build their own levees.

CNN's Gary Tuchman has more.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN CORRESPONDENT (voice-over): As the water rises in Winfield, Missouri, and more neighborhoods turn into Mississippi River tributaries, I walk down a submerged street where homeowners are taking matters into their own hands.

(on camera): How are you doing? How come you're still at the house? There's water all over the place.

GRANT KEAY, WINFIELD, MISSOURI, RESIDENT: No water in here.

TUCHMAN: No water in there?

(voice-over): Some people are surrounding their homes with their own personal levee systems.

(on camera): Looks like you're in a houseboat.

KEAY: Kind of feels like it.

TUCHMAN: Feels like it?

(voice-over): Grant Kay's house looks like a cork in a bathtub. It's surrounded by water. But he has 110 tons of sand around his home.

(on camera): Your levee system has protected your house?

KEAY: Absolutely. We've got plenty of sandbags, five pumps, two generators. Flood lights.

TUCHMAN: You're staying for good, no matter what?

KEAY: Sure, I'm not leaving.

TUCHMAN (voice-over): Down the street, I have to climb a ladder over the levee that Charlie Carson has built to his house. He has spent more than $2,500 to try to keep the water out.

CHARLIE CARSON, WINFIELD, MISSOURI, RESIDENT: In '93, we had ten inches of water in here. I'm not going to let it get wet again.

TUCHMAN: Most of the people in this neighborhood have evacuated, as the water has quickly risen. But...

CARSON: I'm here to stay.

TUCHMAN (on camera): But you may send your family out if it gets too...

CARSON: If it gets to the point where they don't need to be here, yes, I will.

TUCHMAN (voice-over): Same sentiments as Grant Keay, who nonchalantly casts a fishing line off his porch after we say goodbye.

(END VIDEOTAPE)

LEMON: That was CNN's Gary Tuchman. And the true test, say the Winfield people, will be if their makeshift levees can withstand the river's crest today -- Kyra.

PHILLIPS: Straight ahead: a real pressure-cooker in Zimbabwe. Ahead of Friday's disputed presidential elections, hundreds of frightened people have gathered at South African Embassy. We will go to our Zimbabwe desk for the very latest.

(COMMERCIAL BREAK)

LEMON: Well, the fear is very real in Zimbabwe two days before a presidential election there that is being announced around the world as a sham.

And we have to tell you that hundreds of opposition party members showed up at the South African Embassy today seeking refuge just as Tsvangirai did when he went to the Dutch Embassy to seek refuge. We have new developments coming in by the minute.

And our Isha Sesay is following them for us.

ISHA SESAY, CNN INTERNATIONAL CORRESPONDENT: Certainly. We want to wrap up what's been happening today, starting from the beginning of the morning, Tuesday, when Morgan Tsvangirai briefly left the Dutch Embassy. He left to go to his home to hold a press conference. We want to play you a little bit of what he had to say.

(BEGIN VIDEO CLIP)

MORGAN TSVANGIRAI, ZIMBABWE OPPOSITION LEADER: We have officially pulled out of what would otherwise have been a sham election. Our decision to pull out of the election has been supported within the region, in the continent, and the world over.

We appreciate this support. We remain convinced, as is the rest of the world, that our decision to pull out of this sham election was in the best interests of the people of Zimbabwe.

(END VIDEO CLIP)

SESAY: Well, Tsvangirai entered the Dutch Embassy on Sunday, citing fear for his own safety, and also withdrawing from the election, which is scheduled for Friday.

Now, the violence and intimidation that has overshadowed this runoff vote has basically put us in a situation where widespread condemnation is pouring in from around the world. On Tuesday, the British prime minister, Gordon Brown, spoke out. Here's what he had to say.

(BEGIN VIDEO CLIP)

GORDON BROWN, BRITISH PRIME MINISTER: I believe that the whole world has woken up to the evils that have been going on in Zimbabwe. I believe that the whole international community with a few exceptions is now united in calling for action.

But what we want to see is an end to the violence and a peaceful transition in Zimbabwe. And that's why the efforts of the African Union and the United Nations are so important. And we will support them in their efforts and offer the Zimbabwean people help with reconstruction once democracy is restored.

(END VIDEO CLIP)

SESAY: Well, Gordon Brown also added that he no longer will view the government of Robert Mugabe as a legitimate government of Zimbabwe.

Also, to tell you a little bit more about that story that Kyra mentioned before they went to break, 300 people have surrounded the South African Embassy. They're in the compound there seeking refuge. As we understand it from someone we spoke to a little bit earlier on, these are people who are fearing for their life. They fear violence because they're members of the opposition party. And, essentially, they're there on the ground. The South African Embassy is negotiating with these people, but, for now, they continue to be there. There are no provisions that have been made. At least the last time we spoke to someone, that was the case, no blankets, no sleeping arrangements, no food arrangements. But they continue to be there, because, Don, I think it highlights just how afraid some people are in Zimbabwe right now.

LEMON: All right, well put. Thank you very much, Isha Sesay, over at our international desk.

Meantime, strong criticism of Zimbabwe's president from one of Africa's most respected voices. Anglican Archbishop Desmond Tutu is denouncing Robert Mugabe in no uncertain terms. He says that after leading Zimbabwe to independence from Britain in 1980, Mugabe -- quote -- "has turned into a kind of Frankenstein." Tutu called for more international pressure against Mugabe's regime, starting with a firm response to tomorrow's election.

(BEGIN VIDEO CLIP)

ARCHBISHOP DESMOND TUTU, NOBEL LAUREATE: We can, first of all, let Mr. Mugabe knows that, if as it seems is going to happen, he claims victory on Friday, that that victory is going to be declared null and void. He's going to be declared an illegal. His is going to be declared an illegal administration, and people must take it from there.

(END VIDEO CLIP)

LEMON: And raising the possibility of international intervention, Tutu called on Mugabe to resign while he still has a chance.

PHILLIPS: Well, 911 green, a little girl remembers those four words and helps summon an ambulance for her unconscious mom -- the 411 next.

(COMMERCIAL BREAK)

PHILLIPS: Well, little kids are like sponges. They soak up everything that they hear. And sometimes that can be pretty dangerous, but in this case, it might have saved two lives. A 3-year- old Oklahoma girl remembered how to call for help when her pregnant mom fainted. And a week earlier, her mother had made up a little song about 911 green, green as in send on her cell phone. Well, police just released this tape. Take a listen.

(BEGIN AUDIO CLIP)

OPERATOR: Nine-one-one. What is your emergency?

MADELYN: My momma fell down.

OPERATOR: OK. Your momma fell down?

MADELYN: Yes.

OPERATOR: OK. Where are you at?

MADELYN: My house.

(END AUDIO CLIP)

PHILLIPS: Well, little Madelyn didn't even know her address, but was able to help EMTs find the house. Her mom has a medical condition that actually causes fainting.

(BUSINESS REPORT)

LEMON: Inside the horror -- new video from a Mexico club as a police raid sparks a deadly stampeded -- the scene and the history straight ahead.

(COMMERCIAL BREAK)

PHILLIPS: Hello, everyone. I'm Kyra Phillips live in New York.

LEMON: And I'm Don Lemon live at the CNN world headquarters in Atlanta. You are in the CNN NEWSROOM.

PHILLIPS: It's about 3:30 Eastern time. Here are some of the stories we're working on right now in the CNN NEWSROOM.

A Massachusetts jury has convicted a British man of murdering his American wife and infant daughter. Neil Entwistle claimed his wife killed the girl and then committed suicide, but the jury didn't believe him. And he was found guilty on all counts.

Two major rulings today from the U.S. Supreme Court -- in a 5-4 decision, the court ruled that those who rape children cannot be executed.

In another case, the court reduced the damage award for the 1989 Exxon Valdez oil spill in Alaska.

And new flood worries in Missouri. Standing water just feet from the St. Louis Arch. And 45 miles northwest of St. Louis, they're trying to save a levee has protecting Winfield, Missouri.

LEMON: Well, the rape of a child is a horrible crime, but perpetrators can't -- cannot be put to death. The Supreme Court has spoken in a 5-4 decision that rules capital punishment cruel and unusual and, thus, unconstitutional for violent crimes other than murder.

Now, the case came from Louisiana, where Patrick Kennedy was sentenced to death in 2003 for the rape of his 8-year-old stepdaughter. It was a brutal crime and prosecutors say the young victim suffered internal injuries. Kennedy denies he did it. Five states in all allow death for child rapists, but only Louisiana has actively pursued execution. Well, the high court barred the death penalty for adult rape in 1977. Louisiana made an exception for child rape in 1995. The worst oil spill in U.S. history won't cost Exxon nearly as much as it feared. In another end of term decision, the Supreme Court cut the punitive damage award for the Exxon Valdez disaster from $2.5 billion to $500 million. Now, you may remember 11 million gallons of crude oil flowed into Prince William Sound in the pristine Alaskan wilderness in March of 1989. The Valdez supertanker hit an offshore reef, soaking 1,200 miles of coastline. Thirty-three thousand Alaskans will divvy up the award -- about $15,000 per person.

PHILLIPS: Well, I talked about these decisions earlier in the NEWSROOM with CNN senior legal analyst Jeffrey Toobin and here's what he had to say.

(BEGIN VIDEOTAPE)

PHILLIPS: But not since 1964 has anyone on death row been executed for anything other than a murder.

So why did Louisiana try to change that?

JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST, "NEW YORKER" MAGAZINE COLUMNIST: Well, as you pointed out and as we all know, this is an appalling, horrible crime. And politicians who are, of course, in charge of which crimes are covered by the death penalty, it's an easy call for many of them to say, look, we think this crime is so horrible that we are going to add it to the list of crimes for which you can be executed. Louisiana did it. A couple other states did it. But as of today, they can't do it anymore.

The only open question left is can you execute someone for treason, for espionage, because it seems like the court is narrowing down what you can execute someone for perhaps just to homicide.

PHILLIPS: All right. Now let's move into Exxon Valdez. This, also, a decision that was made here -- and accidental oil spills.

What happened?

TOOBIN: Well, you know, this is an example of the legal system moving at a glacial pace. The Exxon Valdez spill took place in 1989. Here, 19 years later, the legal issues are not settled. The specific issue here is was $2.5 billion in punitive damages excessive. The Supreme Court said yes. Exxon wanted all those punitive damages thrown out. So this was a very good day if you're an Exxon shareholder, but not as good as they, perhaps, wanted altogether. But it certainly is a win for Exxon.

(END VIDEOTAPE)

PHILLIPS: Now the high court is not done yet. Before it breaks for the summer, it still has to rule on the handgun ban in the District of Columbia. At issue there is no less than the Second Amendment's right to bear arms.

And people who are there called it a death trap -- a packed Mexico City nightclub swarmed by cops on a raid becomes the scene of a deadly stampede. As protesters take their fury out on police, prosecutors are lashing out, as well.

CNN's Harris Whitbeck reports.

(BEGIN VIDEOTAPE)

HARRIS WHITBECK, CNN CORRESPONDENT (voice-over): This video released by Mexico City officials Tuesday shows police blocking the only exit of the News Divine Disco. Twelve people suffocated or were crushed during the police raid there Friday, including three police officers.

Some 500 teenagers were packed into the club in a working class district of Mexico City celebrating the end of the school year. Police arrived to look into underage drinking at the club. Prosecutors charged they botched the operation, blocking the exit and causing a panic inside the club that prompted the young patrons to stampede.

RODOLFO FELIX CARDENAS, MEXICO CITY PROSECUTOR (through translator): The witness called attention to the attitude of the police who were trying to push the youths back into the club while the youths were trying to get out. Those police not only tried to keep the youth from getting out, but it is clear they were pushing the kids back inside.

WHITBECK: Seventeen police commanders and other top officers have already been asked to resign from their posts. Mexico City Mayor Marcelo Ebrard promised a full investigation and ordered the release of the video taken by police at the scene to prove the officers involved would not be protected.

But that wasn't enough for survivors of the stampede. Many of them gathered outside the now closed nightclub to stage a protest against the police. One man splashed red liquid on a police officer. Others chanted "Murderers! Murderers!" One protest sign read, "Wanted, the chief of the child killing gang known as the police."

Harris Whitbeck, CNN, Mexico City.

(END VIDEOTAPE)

LEMON: Weapons money and hundreds of terror suspects the fruits of a six month sweep by Saudi authorities. They revealed details of a crackdown today. A total of 701 people were arrested. Five hundred and twenty are still in custody, the rest released due to lack of evidence. According to the Saudi Interior Ministry, several al-Qaeda linked cells were plotting attacks on oil installations in government buildings. Some of the suspects are accused of recruiting fighters from Iraq, Afghanistan and North Africa.

Missing in the mountains since Saturday, 11 hikers, most of them teenagers. The search is on in the Sierra Nevadas.

(COMMERCIAL BREAK)

LEMON: Cracking down on the child sex trade -- today the FBI announced a nationwide round-up of suspected customers and purveyors of child prostitution. The FBI says 345 people have been picked up in the dragnet and 21 children were taken to safety. The arrests went down coast to coast in cities including Washington, D.C. , Los Angeles, even Toledo, Ohio. Now the announcement comes on the fifth anniversary of the Innocence Lost Initiative, which is credited with rescuing hundreds of children from the clutches of sexual predators.

(BEGIN VIDEO CLIP)

ROBERT MUELLER, FBI DIRECTOR: Our efforts have led to the recovery of 433 child victims. Just this past week, the FBI joined our law enforcement partners in a five day national enforcement action. This operation, known as Operation Cross Country, included takedown operations in 16 cities across the country and led to the removal of 21 children from the cycle of victimization.

(END VIDEO CLIP)

LEMON: Well, authorities say the children most vulnerable to sexual predators are runaways.

PHILLIPS: Well, Carissa Phelps knows firsthand what it's like to be sexually exploited. Years ago, when Carissa Phelps was just 12 years old, her mother dropped her off at juvenile hall. She ended up on the streets of Fresno, California. Well, a pimp found her and her life as a child prostitute began.

She tells her disturbing story in the documentary, "Carissa."

(BEGIN VIDEO CLIP)

CARISSA PHELPS, SURVIVOR OF CHILD PROSTITUTION: There's a trucker that drove me behind that motel in an empty lot. There's (INAUDIBLE) in crack cocaine and forcing me to smoke it in Palm Court Motel. I really didn't want to smoke. I really didn't want to smoke it. And he forced me to smoke it. And he said I would like it. And I -- I started faking a seizure. I didn't know what else to do.

(END VIDEO CLIP)

PHILLIPS: Well, since then, she's gotten off the streets and earned an MBA and a law degree from UCLA.

Carissa Phelps joins me now live from Fresno.

You are one amazing woman, Carissa. I'm just going to start right out with that.

PHELPS: Thank you, Kyra.

PHILLIPS: Tell me...

PHELPS: Thank you, Kyra.

PHILLIPS: We set up what had happened.

But how did you get out? PHELPS: It was luck, pure luck, I think. At the time, children like me, runaways, were just seen as a nuisance -- a public nuisance and shifted around from group homes in and out of juvenile hall and were never really asked the right questions about what was going on with them on the streets. And kids -- kids that have been molested, kids that have been raped, even adults, don't talk about these abuses readily.

So people were just shifting me in and out of juvenile hall, in and out of group homes. And I was continuing to be exploited on the streets every time I went out and thinking that that was the life that I was destined for maybe forever, until -- until some really great luck.

PHILLIPS: Well, what's the memory that haunts you the most?

And when did that luck change?

PHELPS: It's being held by a pimp and told that I was nothing, being degraded and forced, like I said in the video, at 12 years old, to smoke crack. I was terrified. And I think I thought my life was over at that time. I didn't think anybody was looking for me and I didn't think that anybody cared, until I met Ron Jenkins, actually.

He was a counselor in juvenile hall who had his own rough childhood and decided to work with kids. And he still works with kids today. And he was amazing. He just reached out to me and he asked me for the first time in two years what had happened to me on the streets. And once that information was out, then I was able to get the counseling that I needed -- the counseling that I needed, the support network that I needed. And Ron was a central figure in all of that.

PHILLIPS: It always takes a mentor or a role model.

Well, the FBI announced this arrest of 300 plus people, Carissa, that were involved in this child prostitution ring.

Is that moving in the right direction, is that enough?

Or do you look at that and think that's not even the beginning?

PHELPS: I think we're moving in the right direction. I'm really going to be interested to see how these cases play out when they're prosecuted, because we have the Traffic Victim Protection Act that will protect U.S. citizen victims -- child victims of sex trafficking. And we'll see if this gets enforced, if the U.S. attorney does the job that it should do, we will see what happens.

And I think that what comes out of those cases will need to be publicized so that people understand that they will be held accountable if they engage in sexual activities with minors. These aren't -- just because they're runaway kids, just because nobody is looking out for them or has taught them maybe right from wrong, they are not going to be ignored by our communities and our society anymore.

PHILLIPS: Well, I know that you meet with a lot of these kids.

And when you look them in the eye, especially the 12-year-olds, you probably see yourself.

What do you say to them?

PHELPS: I just let them know life is going to be OK. It's going to be great. And that they're going to be able to get through it. They need to ask for the help that they need and deserve and really get involved in therapy, get the help that they need and find a safe place to be. A lot of us, when I was on the streets, we didn't want to be at home. And we didn't know how to ask the right people how to place us in group homes or foster care. And I think that's another big, big fault with the system is that kids aren't given a voice. And they really need to be able to ask for what they need.

PHILLIPS: Well, you're a courageous woman, Carissa Phelps.

I encourage everyone to see your documentary, Carissa.

And thanks for sharing your time with us today.

PHELPS: Thank you so much.

PHILLIPS: Don.

LEMON: Eleven hikers missing in the Sierra Nevada for days, many of them children. Their family members have not heard from them, but maybe.

We're going to check in with a family spokesperson and a relative when the CNN NEWSROOM continues.

(COMMERCIAL BREAK)

LEMON: We have a follow-up for a CNN Special Investigations Unit. You'll recall we told you about $85 million wroth of new merchandise meant for Katrina victims that sat unused for the past two years and then was given all away.

CNN Special Investigations Unit correspondent Abbie Boudreau is with us here to update us -- Abbie.

ABBIE BOUDREAU, CNN INVESTIGATIVE CORRESPONDENT: Well, we were there last week when three trucks rolled in and delivered all those household items. Today, three more truckloads arrived. Thousands of supplies will now make it into the hands of Katrina victims who are still in need. Volunteers unloaded trucks full of brand new merchandise -- pots and pans, cleaning supplies, air mattresses and coffee makers. All of these items were supposed to go to Katrina victims in the first place, but they never did.

Still, FEMA refuses to answer how this could have happened. Now these supplies will go to Unity of Greater New Orleans, a nonprofit group that re-houses Katrina victims. Unity has already started distributing the items to its clients, hoping to help thousands of Katrina victims rebuild their lives two-and-a-half years after the storm.

LEMON: All right.

Any chance more supplies will be delivered?

BOUDREAU: Well, they're never going to get all $85 million worth of these supplies. But there is a chance even more items will be rolling in. We've uncovered that a large portion of new items went to federal prisons. They received pillowcases, cleaning supplies and other basic essentials. U.S. Senator Mary Landrieu's office is trying to get some of those unused items to where they should have gone in the first place, which is to people who are suffering from Hurricane Katrina.

LEMON: Let's hope there's some success with that.

All right, Abbie, thank you very much for that investigation.

BOUDREAU: Thank you.

PHILLIPS: Dozens of volunteer mountaineers are helping in the search for 11 hikers. Nine of them are teenagers, who set off on an Outward Bound adventure in the Central Sierra Nevadas 11 days ago. They're due back on Friday. But the searchers set out after the group failed to meet up with a guide.

(BEGIN VIDEO CLIP)

DEPUTY CHRIS CURTICE, FRESNO COUNTY SHERIFF'S DEPARTMENT: The area that we're searching is approximate 20 to 25 square miles. It's an area that we've searched before on other searches. So the -- so our team is well aware of it and they're familiar with the area.

(END VIDEO CLIP)

PHILLIPS: Searchers say that the group should have enough supplies to last throughout the week.

LEMON: Well, you know, Allison Trent is a spokesman for one of those families. And she joins us now from San Diego with the very latest.

And as I understand, as well, you are a cousin to one of the people missing there.

ALLISON TRENT, SPOKESWOMAN FOR ROGERS FAMILY: Correct.

LEMON: Tell us what you've heard so far.

TRENT: So far, the sheriff's department is out there looking with -- they have horses out there. They have helicopters flying around. They have their four wheel drives. They have people on foot search. The mom of Thomas Rogers and my dad uncle are out there searching, as well. So they're doing everything in their power to locate this group. LEMON: Well, I spoke with one of the fathers of 14-year-old girl missing a little bit earlier here today on CNN. And he said when he dropped his daughter off almost two weeks ago, that was the last time that he had heard from her and didn't find out until, I think, a day or so ago about the possible -- about them, you know, being missing. And he's wondering what the gap was.

Is that what your experience is?

TRENT: Well, they've been missing since Saturday is what I've heard. And the parents were only contacted last night at 5:00 p.m. So -- and the sheriff's department was contacted at that time, as well.

So I believe the parents are a little bit upset about that. They wish they would have been contacted a little earlier. So that -- the bounty group who's heading this group is out there looking for two days and then they finally contacted the sheriff and the parents as of now. So it's all in the sheriff's hands. There's nothing that anyone, you know, that we can really do except for hope for the best and pray.

LEMON: So the sheriff is keeping you informed, as well as other family members?

TRENT: I'm sorry?

LEMON: The sheriff is keeping you informed as well as other family members?

TRENT: Well, I had my aunt, the mom of Tommy, call me and let me know what was going on. And there is a hotline number that you can call to just kind of check up and see what the status is. But as of now, they have not been found. And they do -- I did hear that they do have enough supplies to last until Friday.

LEMON: Yes. So that's encouraging.

What are you and your family dealing with?

How are you keeping strong in all of this?

TRENT: Well, last night was a little rough when we found out. You know, they were driving up there to search late last night. But this morning it seems a little more hopeful. So just last night was a little rocky. But right now we're doing OK. We're just kind of hoping and praying for the best.

LEMON: And, Allison, a final question.

What do you want people to know around the country -- family members, friends, people who are concerned about your loved ones, your relatives -- what do you want them to know?

TRENT: Just to know that, you know, we are searching and, you know, the word is out. And so, you know, everyone just keep us in your prayers and just hope for the best. I think they'll be OK. I mean Tommy -- and I'm sure the other kids, as well, are very strong and they're going to find their way back through this.

LEMON: All right.

Well, Allison Trent, we wish you the very best.

Thank you for joining us today in the CNN NEWSROOM, OK?

TRENT: Thank you.

LEMON: And we want to thank our affiliate KGTV in San Diego for helping us out with this interview.

It's time now to check in with CNN's Wolf Blitzer.

WOLF BLITZER, CNN ANCHOR: Hi, guys. Thanks very much.

We're standing by right now for a live news conference with Senator Barack Obama. We're expecting new questions about his vice presidential search, how his list is shaping up and a lot more. Stay with us for that.

Also, we'll get reaction to that Obama news conference from a top McCain supporter, Senator Lindsey Graham. He's standing by to hear what Obama has to say.

Also, the leader of the country blamed for the PanAm Flight 103 bombing has some advice for -- get this -- Barack Obama.

We're going to tell you what he's saying right now.

All that and a lot more coming up right here in "THE SITUATION ROOM" -- back to you guys.

LEMON: All right. Thank you, Wolf.

PHILLIPS: Well, you're never too old to be young and we've got the Cubs fan to prove it. Oh, Nelly.

(COMMERCIAL BREAK)

PHILLIPS: Let's see, was that a fast ball, a curve ball, a slider?

Whatever it was, it was a lifetime thrill for a lifelong fan. Ninety-three-year-old Chicago cubs fan Loretta Dolan threw the opening pitch at Wrigley Field last night. Just a little low, but in some of the team's leaner years, that pitch might have qualified her for a spot in the Cubs rotation.

Dolan is about the same age as Wrigley Field, believe it or not. But she's never seen the Cubs win a World Series. And that hasn't happened since 1908, seven years before Dolan was born. And, by the way, she has got about 100 scorecards. I wonder how far they go back. That's what I want to know.

LEMON: I called her. She said it was a spitball, right? (LAUGHTER)

PHILLIPS: That was a heck of a spitball there, granny.

LEMON: That was a heck of a spitball, I know. Too bad she hasn't seen a championship, though. Wow! Well, hopefully in our lifetime.

And you know that hurts, Susan Lisovicz, especially for me, right?

PHILLIPS: Susan's a big baseball fan.

SUSAN LISOVICZ, CNN CORRESPONDENT: I know. I'm a huge fan. And, you know, we're spoiled in New York. The Yankees have won the World Series 26 times I believe. The Mets have won twice. But hey, that's a fan. I mean you know...

PHILLIPS: That's dedication right there.

LISOVICZ: That's dedication. And I hope I can -- I hope I can pick up a ball at that age.

(LAUGHTER)

LEMON: I'm sure you'll be fine, Susan Lisovicz.

But kudos to her, right?

That's nice work.

LISOVICZ: Absolutely. Those are the kind of fans you want to have. They're not fair weather fans.

(STOCK MARKET REPORT)

LEMON: All right, Susan. Thank you. Always good to see you -- Kyra.

PHILLIPS: All right. Let's take it to Wolf Blitzer now in "THE SITUATION ROOM" -- Wolf?