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Alaska Senator Indicted for False Statements; Fire Close in on Yosemite; Documentary Looks at Car Bombs; Former Ref Sentenced to Jail for Gambling
Aired July 29, 2008 - 13:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DON LEMON, CNN ANCHOR: Hot and windy weather, steep and rugged mountains. Conditions couldn't be better for the wildfire burning in all directions near Yosemite National Park, but thousands of firefighters aren't giving up.
BETTY NGUYEN, CNN ANCHOR: And if you feel like giving up on the plans you had to get ahead, even to get rich, don't. We'll help you find the opportunities hidden deep inside the problems plaguing the economy.
Hello, everybody. I'm Betty Nguyen, in today for Kyra Phillips at CNN world headquarters in Atlanta.
LEMON: And I'm Don Lemon. You are in the CNN NEWSROOM.
As we follow that breaking news coming out of Washington, we are also keeping our eyes on the skies in California. It is raining white hot ash. That's what one park ranger is seeing as wildfire comes right to Yosemite's doorstep.
It's already burned an area the size of San Francisco. Several thousand firefighters are pouring everything they have on it. The high temperatures and rough terrain aren't helping.
Reporter Craig Debro of CNN affiliate KTVU is on the front lines.
(BEGIN VIDEOTAPE)
CRAIG DEBRO, KTVU REPORTER: Here at the incident command center in Mariposa County at the Mariposa County fairgrounds, some of the trucks behind me are waiting to get in the command center. Some of these guys have been on the line for 24 hours, just finishing their shifts.
Now the Telegraph Fire is on the move today: 29,000 acres have now burned, and that's an area about the size of the city of San Francisco.
The fire's just 10 percent contained. Overnight, it burned another 3,000 acres. Cal Fire says it's having trouble connecting its bulldozer lines along the perimeter. The problem is changing landscape. Flat in some sections, steep in others.
Fire's destroyed 25 homes and 27 out buildings. Highway 140 is closed to Yosemite, and now the fire is threatening the park. This morning Cal Fire commanders stressed the need to keep the fire off that highway and away from Yosemite, which is still open to the public.
There are now 3,000 firefighters working the Telegraph Fire. Nine injuries have been reported, some of those from heat exhaustion, and that's a danger crews again face today. Temperatures are once again expected to reach the 90s, and with 4,000 homes still threatened, they're going to be little rest for the firefighters on the line today.
Craig Debro in Mariposa County, for CNN.
(END VIDEOTAPE)
LEMON: Craig, thank you very much.
And of course, we are following breaking news here in the CNN NEWSROOM on Senator Ted Stevens. As soon as we get more information on that, we're going to go right to our justice correspondent, Kelli Arena.
Meantime, we're going to continue to talk about these fires out in California. Our Chad Myers joins us now. Fire fighting efforts really in full force now, Chad.
CHAD MYERS, CNN METEOROLOGIST: Yes, and you know, people have been to Yosemite, and I have, as well. And this is a map of California. And I'm going to have to explain it to you, because there are no lines.
This is a NASA satellite photo image of what this area looks like. This is all marine layer. Here's Bay Area. Now we're talking about the fire and the smoke. What you know of Yosemite and what Ansel Adams all took pictures of, that's out here. This is what you're talking about. This is Mono Lake, Lee Vining, right back there.
So this is not in the forest, itself. Not in the high mountain areas that we know of as Yosemite. But as you lead up into Mariposa, that's where these fires are, and smoke is drifting now into -- into Yosemite.
And the winds just stay only about 15 miles per hour. That's some good news. We never really got any big gusts. But this terrain there is so rugged, the fire chief saying that this is literally straight up and down. There's very, difficult fighting these fires when the terrain looks like this. We'll keep watching it for you. No chance of any rain on the horizon there.
Watch out for some flooding in New Mexico. We have some pictures from iReporters, as well, and rain in Florida today -- Don.
LEMON: All right. It's going to be a busy weather day. Chad Myers, we appreciate it. Thank you very much -- Betty.
MYERS: You're welcome. NGUYEN: Well, Don, there is some heart break for homeowners after floods in the desert. I want you to take a look at what floodwaters did to one house in Southern New Mexico. Look at that. Swept right away. About 500 more are swamped after the storm that was Hurricane Dolly dumped nine inches of rain on Ruidoso. Damage estimates are running in the millions. Wow, just check that house out. Unbelievable.
Governor Bill Richardson has declared that county a disaster area.
And after getting the same designation from President Bush, folks in Dolly-drenched southern Texas are waiting for help to rebuild. The Federal Emergency Management Agency hasn't decided whether damage is bad enough to warrant government aid.
Listen to this story. A New Hampshire woman held onto her grandson while a tornado destroyed the log home around her, and it took her life, but the baby survived.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Banged his head up a little bit. He's got a couple good wounds there, and his knuckles -- his knuckles got a little bit, too.
(END VIDEO CLIP)
NGUYEN: Now, a little bit later this hour, the child's grateful dad shares more of his son's rescue from the rubble. What a story.
LEMON: What a story.
And we're following breaking news coming out of Washington, D.C. It involves Senator Ted Stevens. Our Kelli Arena, our justice correspondent, she is following all the details on this.
And Kelli, I understand you're just getting word about some of the charges. What's in the indictment -- Kelli?
OK, apparently Kelli, we're having -- we're going to get to Kelli in a little bit. We're having a little bit of difficulty here.
Kelli, I don't know if you can hear me. If you can, just yell at me. But I'll tell you what CNN knows. Now he's expected to be indicted today after a federal grand jury came up with those indictments. And we can see now our Kelli Arena joins us now from Washington.
I know that you're pouring over the documents here and I understand when I heard you a couple of minutes ago, you said seven charges?
ARENA: That's right, seven counts of making false statements to federal investigators. He was indicted today by a federal grand jury here in Washington, D.C. You know, back in July, Don, the FBI and the IRS raided Senator Stevens' home in Alaska. They were looking closely at his ties to an Alaskan energy services company named VECO. Their chief executive pleaded guilty to a bribery scheme involving state lawmakers.
And back in 2000, companies -- this company's executives oversaw a pretty elaborate remodeling of the senator's home, and apparently, it was questions about that remodeling that investigators had asked that Stevens did not supply accurate information about.
You know, this is a very big deal, Don, as you know. One of the most powerful men here in Washington. He's been a member of the Senate since the late '60s, 1968. He was chairman of the Senate Appropriations Committee for six years. Very much in control of federal spending. He was being -- he was looked at as part of a larger look at overall corruption, political corruption in the state of Alaska.
But, Don, I'll tell you, you know, this indictment coming here in D.C., there's still an open question as to whether or not he will ever face any charges in his home state of Alaska.
The investigation, of course, does continue, and there really is no underlying charge here just yet. I mean, it's basically the false statements charge, but there's no charge of misappropriating funds or accepting bribes or anything like that. So obviously, this is something that -- that remains open.
LEMON: Yes, and Kelli, this is just coming down. And I can see you're getting new information now. And as you read over that, as you said he is the longest serving Republican in the U.S. Senate.
ARENA: That's right.
LEMON: And one of the chamber's most powerful members, of course.
ARENA: Absolutely. And he hasn't been in hiding, either.
LEMON: Right.
ARENA: He just voted yesterday on the floor. I mean, he's been very much out in the open and public. When he was asked about this, when his home was raided, he said, you know, that he continued to believe that the investigation, you know, should proceed without any appearance that he attempted to influence its outcome. And he has not commented at all on this, Don.
LEMON: OK.
ARENA: He had a policy of not commenting. We'll see if he has something to say today, though.
LEMON: Our justice correspondent, Kelli Arena, on top of our breaking news today. And you've got lots of documents to look over. Take a look at those and she'll join us later in the NEWSROOM. Thank you very much for that, Kelli -- Betty.
NGUYEN: We are waiting this hour for John McCain to start a town-hall meeting in Sparks, Nevada. You're looking at a live picture right now where his wife Cindy there is speaking. We'll wait for the presidential candidate to speak shortly.
The Republican candidate for president has been talking about economic issues all week long. We'll have live coverage when today's event gets underway.
In the meantime, though, McCain's Democratic rival, Barack Obama, wants to pull almost all U.S. troops out of Iraq within 16 months. Now, McCain says he could go along with that if conditions fall into place. Here's what he told CNN's Larry King.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: I said it has to be based on conditions on the ground. Senator Obama said it's a hard and firm date. That's why the chairman of the joint chiefs of staff said that it has to be condition-based and said that his approach would be very, dangerous.
The way the question was asked, why not 16 months? The fact is, it has to be condition-based, and we are withdrawing. The last brigade from the surge is coming home this month or early next month, and we will be having further withdrawals based on conditions.
Now whether that fits into 16 months or not, or one month or whatever, the point is, it's got to be condition-based. And that's the point General Petraeus is trying to get over as we go into this political season.
(END VIDEO CLIP)
NGUYEN: McCain also says he thinks the U.S. did the right thing by invading Iraq, but the wrong strategy at first doomed the mission to failure. McCain credits the so-called troop surge with turning the situation around.
Obama is still in Washington, where today he met with women leaders and the visiting prime minister of Pakistan. A bit later, the Democratic candidate meets with Fed chairman Ben Bernanke and the House Democratic Caucus.
Obama's also looking at the road ahead, saying this about his campaign at a fundraiser last night in Virginia.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: We are now in a position where the odds of us winning are very good, but it is still going to be difficult.
(END VIDEO CLIP)
NGUYEN: After his two-day visit to Washington, Obama heads to Missouri.
LEMON: Of course, the economy, it is issue No. 1. And we're keeping a close watch on Wall Street after yesterday's big tumble. Why don't we go ahead and take a look at the big board now?
The Dow, I think it's up, like, 166 points. There we go. There's the big board, right in the middle of your screen. Dow up 166 points right now. And we know that yesterday the Dow lost almost 240 points.
We're also eying the pump for you. Gas prices have fallen for 12 straight days now. AAA says the average price for regular is $3.94 a gallon. Oil prices are also falling after an earlier rise. The reasons for all of that, a stronger U.S. dollar and expectations of weaker demand.
Weak. Well, it still describes a housing market, too. Home prices in May fell almost 16 percent from a year ago. That is a record, according to the S&P Case-Shiller Index, which measures home prices in 20 cities. It's also the 22nd straight monthly drop.
Let's talk now about investors. Investors are keeping a close eye on Merrill Lynch as the world's biggest brokerage tries to clean up its bottom line. Merrill is writing off the value of $5.7 billion in assets, mostly tied to problem mortgages. It also plans to issue new stocks in a bid to raise more than $8 billion -- Betty.
NGUYEN: Well, these numbers, are they getting you down? I know that it is a lot of people. We are going to tell you how to make your numbers go up. So get smart, get rich. That's our theme today on CNN. Now, it's not going to happen right away, but if you get moving, you can get ahead.
First, though, we have to tell you what's getting you behind. Here they are, the top ten money drains, compiled by Bizrate.com.
No. 10, unused gym memberships. Do you have them? You probably want to get rid of them. Average monthly gym fees are $40. The annual cost of an unused gym membership, $480. So if you don't use it, get rid of it.
No. 9, credit cards. Americans' median credit card debt -- get this -- $6,600, and fixed interest rates on a standard car, average more than 13 percent. So, if you pay the monthly minimum, it could take 250 months, almost 21 years, to pay off the debt, and cost more than $4,800 in interest. Not good.
OK. What else is draining your dollars? Well, we're going to tell you, straight ahead, right here in the NEWSROOM -- Don.
LEMON: All good information.
NGUYEN: Yes.
LEMON: Also, pay attention to this, Betty, and viewers. This is unbelievable. The numbers are staggering. Half the people in America living with HIV or AIDS are African-American. And we'll tell you what a new report says about this health crisis.
NGUYEN: And a former American spy knows the power of car bombs firsthand. Now he is cataloging the carnage.
LEMON: And so when kangaroos attack. A pouched menace takes on zoo keepers in Atlanta. We'll show you who won this face-off.
(COMMERCIAL BREAK)
LEMON: Well, we're following developing news out of Washington today here in the CNN NEWSROOM, specifically out of the Justice Department. Ted Stevens, the longest serving Republican senator, is being indicted today. That's according to a CNN producer in Washington. Being indicted on a corruption probe.
The Justice Department is holding a press conference 1:20 Eastern. CNN will bring that to you live right here in the CNN NEWSROOM.
NGUYEN: And in the meantime, we do have a new warning to Iran. Israeli Defense Minister Ehud Barak says all options, including a military strike, are on the table. Speaking to reporters in Washington today Barak said, quote, "Iran is a major threat to the stability of the whole world."
His tough words followed a meeting with Secretary of State Condoleezza Rice. The U.S. and its allies believe Iran is enriching uranium for nuclear weapons. Iran, though, denies it but refuses to stop enrichment.
LEMON: A major military operation is underway in Iraq's Diyala province. U.S. and Iraqi forces are targeting al Qaeda in Iraq insurgents and Shiite militias in what's considered their last major safe haven near Baghdad. The troops are hoping to build on their recent gains against Sunni insurgents in the north and Shiite militias in Baghdad and points south.
NGUYEN: In Serbia, busloads of right-wing extremists are pouring into Belgrade to protest the extradition of a man they call a hero, former Bosnian Serb leader Radovan Karadzic. Thousands of riot police are on hand to meet them.
Now, Karadzic was arrested last week on charges of genocide stemming from the civil war in the early '90s. And it's still unclear whether he is formally appealing extradition to the U.N. war crimes tribunal in the Netherlands. The last time ultranationalists demonstrated in Belgrade in February, they went on a looting spree and burned part of the U.S. embassy.
LEMON: A U.S. soldier on military Death Row is a big step closer to execution. President Bush has approved the Army's request to execute Private Ronald Gray, who was convicted of a rape and murder spree in the mid-1980s around Fort Bragg, North Carolina. His would be -- his would be the first military execution since 1961.
Gray was tried in both military and civilian courts and has been on Death Row since 1988. He still has appeals left in the civilian system.
NGUYEN: Well, nuclear bombs, poison gas, biological agents, they are called weapons of mass destruction for a reason. But for sheer destructive capability, none can match the relatively simple easily- assembled car bomb. So says a former CIA expert who wants the world to wake up to the danger.
We get the details now from CNN international security correspondent Paula Newton.
(BEGIN VIDEOTAPE)
PAULA NEWTON, CNN CORRESPONDENT (voice-over): "Car Bomb" is the candid testimonial of former American spy Bob Baer, a man who admits the CIA taught him to construct car bombs so he'd know firsthand of their power.
UNIDENTIFIED MALE: This is the film of how the century of the car turned into the century of the car bomb.
NEWTON: In his documentary, Baer says we've been told weapons of mass destruction would shape this century.
UNIDENTIFIED MALE: But that's a lie. The real terrorist threat has always been the car bomb.
NEWTON: With Lebanon as its centerpiece, Baer, a CIA veteran of the civil war there, catalogs the carnage of such a powerful and callous weapon, including the 1983 truck bombing of the U.S. embassy in Beirut that killed 63 people, including six of Baer's CIA colleagues.
ROBERT BAER, FORMER CIA AGENT: It works, the car bomb. And it's easy to make. And it's unstoppable. You and I can go out and by tomorrow morning, we have a very nice car bomb that could close London or Manhattan.
NEWTON: A point so vividly made in Britain last year when a vehicle laden with explosives slammed into Glasgow Airport last summer, just hours after two car bombs failed to detonate in the heart of London.
(on camera) As authorities towed the car bomb away, many here in London didn't need reminding what a powerful weapon of terror a car bomb can be.
(voice-over) 1992, the IRA bombing of the Baltic Exchange Building in London's financial district killed three and caused colossal damage, executed by a white truck packed with more than 1,000 pounds of explosives.
JEFFREY BLUM, IRA BOMBING SURVIVOR: It exploded behind me, and I was thrown in the air for I don't know how long or how high, but long enough and high enough for the seven-story building next door to collapse. And I came down on its rubble. So the first thing to hit the ground was my head, and my skull was cracked open. NEWTON: Blum's survival was unlikely. He lost most of his blood. There were several surgeries. And after months of recovery, he was back here and still is, reflecting. His opinion: car bombs are not an equal threat to weapons of mass destruction.
BLUM: But, yes, the nature of the word "terrorism" means that you are striking terror, as in fear, into an awful lot of people.
NEWTON: "Car Bomb," the documentary, argues the weapon's influence can go much further than that. We could be one car bomb away from changing the direction of war, politics, from changing history.
Paula Newton, CNN, London.
(END VIDEOTAPE)
LEMON: After gambling on a guilty plea, an NBA ref learns how long he'll be benched. Make that jailed.
NGUYEN: And check out this little guy. He's got a couple of scratches on his head, but otherwise he is OK, which is truly amazing when you consider that he lived through a tornado that did that.
(COMMERCIAL BREAK)
LEMON: All right. Live pictures now. Well, we have live pictures, but it's an empty room of the Justice Department. But you're looking at -- there it is right there. The picture you were looking at earlier was Senator Ted Stevens. Ted Stevens now expected to be indicted by a federal grand jury. The Justice Department will hold a press conference very shortly, about 1:20, 1:30, we're told, Eastern. It's been pushed back just a little bit.
But just to give you a little bit of background, quickly here, our Kelli Arena, our justice correspondent, is working on this. But he has been charged with making false statements to investigators after a wide-ranging probe into ties between an energy company and lawmakers in his home state of Alaska. And that is according to a federal indictment.
As soon as we get that Justice Department -- that press conference, as soon as it gets underway, we'll bring it to you live right here in the CNN NEWSROOM -- Betty.
NGUYEN: From the hard court to hard time. Former NBA ref Tim Donaghy has just been sentenced to 15 months in federal prison. He pleaded guilty last summer in a gambling scandal that rocked the league.
CNN's Richard Roth joins us live from New York with much more on this.
OK, 15 months. Did they expect it to be a little bit longer than that, Richard? RICHARD ROTH, CNN CORRESPONDENT: Well, under the federal sentencing guidelines, some defendants like this could be sentenced to 27 to 33 months.
It was a packed courthouse here at Brooklyn federal court, a packed courtroom, Judge Carol Amon presiding. Donaghy, Tim Donaghy, the disgraced NBA referee, 13 years in the league, who pled guilty to giving out gambling information to some professional gamblers, who alleged that they were with organized crime.
Donaghy hunched over as he awaited verdict sentencing. His attorney pleading for leniency, citing Donaghy's compulsive gambling addiction and saying that he's on the road to recovery, and that should be taken into consideration, especially his cooperation with federal authorities, who continue to investigate Donaghy's claims that there were other referees, other problems in the system and how these referees were judging games and whether there was gambling.
However, in court, the prosecution said there was no prosecutorial crimes that could be prosecuted based on Donaghy's evidence. And as you look at Donaghy leaving court, where he didn't say anything, the federal government asked for 27 to 33 months.
The judge gave him a sentence of 15 months in jail with a -- several years of supervised release. So less than the guidelines. For some, many people say he got off lightly, considering his crimes. For others, they note his extensive cooperation.
His lawyer outside was very pleased with the sentence.
(BEGIN VIDEO CLIP)
JOHN LAURO, DONAGHY'S ATTORNEY: We're thrilled with the outcome today in court. We felt that the judge rendered a sentence that was fair and reasonable and, in our view, was a victory for the truth. The judge recognized Mr. Donaghy's extensive cooperation and the fact that at all times he was truthful and honest.
(END VIDEO CLIP)
ROTH: The attorney also went on to say that the NBA has not treated his client fairly, that they have ostracized him and demonized him, despite his cooperation and trying to point out what's wrong.
In a statement from the National Basketball Association, from Commissioner David Stern after the sentence, this sentence enables the league to continue its improvements and policies regarding gambling and, in effect, making sure that every game is a true contest not affected by some of these referees -- Betty.
NGUYEN: All right. CNN's Richard Roth joining us live.
Thank you, Richard -- Don.
(BUSINESS REPORT)
(COMMERCIAL BREAK)
LEMON: All right. Live pictures now of our developing news here in the CNN NEWSROOM.
That is the Justice Department and those folks are waiting for a press conference to hear exactly what is going on with Senator Ted Stevens. Ted Stevens indicted. He has been charged with making false statements to investigators after a wide-ranging probe into ties between a energy company and lawmakers in his home state of Alaska.
That press conference expected to get underway very soon. We also have pictures now of -- that's Senator Ted Stephens there. We have pictures now from the House floor, as well, where we are expecting from his house, I should say. And we're expecting folks from the Senate to come out and talk about this in our 2:00 p.m. hour of the CNN NEWSROOM. That's after the press conference.
These are pictures of his house there in Alaska. But as soon as we get more information on that, the press conference gets underway, we'll bring it to you live right here in the CNN NEWSROOM -- Betty.
NGUYEN: In the meantime, let's talk money now, OK? Get smart, get rich. You can get on that path. Even in a struggling economy and CNN is going to show you how. Sure, there are problems. We all know that. But that also means there are opportunities, especially for investors.
So, where are the best places to put your money right now? "Time" magazine financial writer Barbara Kiviat has some answers for us.
All right, Barbara, no time to waste. Top three places to put our money right now, in a down market?
BARBARA KIVIAT, FINANCIAL WRITER, "TIME" MAGAZINE: Right. First thing I'd say is when stocks go down, that can often be opportunity.
Back in June, hedge fund manager, Eddie Lambert started buying up beaten down home builders, Katy Home, retailers like Home Depot. Just because things are bad, doesn't mean it's bad for you. You can pick up some things that are good long-term investments on the cheap.
NGUYEN: So, you're talking premium stocks. Stocks that you've known, have really good record...
KIVIAT: Exactly.
NGUYEN: You've always wanted them, but they've been too high in the past.
KIVIAT: And this is a good entry point, as they say.
NGUYEN: Yes. OK. Well, let's talk about that for just a second. Because a lot of people did that way back when, ever heard of worldcom? That didn't do so great.
So, how do you know that what you're buying is really going to stick around?
KIVIAT: You know, timing is everything. And unfortunately individual investors often time the market very poorly, which is why in general, buying a mutual fund is not a bad way to invest as an individual investor. Doing fundamental research, you know, getting the 10-K. If you're a retiree, lots of people get into it. But your core holding probably should be in something safer, possibly in the hands of a professional money manager, like a mutual funds manager.
NGUYEN: OK. You also recommend, among those top three, investing in green companies. A lot of people...
KIVIAT: Yes.
NGUYEN: ... aren't really schooled in that just yet. It's kind of new to a lot of folks.
So, where do you go when you try to green invest?
KIVIAT: It's very new.
The big professional investors John Doerr, out in Silicon Valley, really only within the last few years have gotten into this phase. Although he's now plowing about 1/3 of his company's portfolio into this, Boone Pickens, down in Texas, is plowing into wind farms.
As an individual, you again, might want to look for an alternative energy mutual fund or ETF. Firsthand funds, started one back in October, that manager Kevin Landis (ph), has been through a couple of tech cycles out in Silicon Valley. So, that's what you're looking for. Someone who you can trust to really do all of that fundamental research that as an individual you might not be able to.
NGUYEN: All right. Number three on that list.
It's a really good time right now to take advantage per se, of this mortgage meltdown and invest in real estate.
So, how do you know which is a good place to buy? Because if you're trying to buy a foreclosed home and everything on the block is foreclosed, you might have to wait a while before you get some money for that investment.
KIVIAT: That's very true.
Foreclosed properties are a very hot investment right now. But, that does not necessarily mean you should jump in. There are a lot of folks out there who do this professionally, long before the current downturn.
But if you're an individual and you want to get into this and a lot of people are finding themselves in that boat. The best advice I would give would be to partner with someone who's done it before. I was recently talking to a pediatrician in New Jersey, who had partnered with a lawyer and a real estate investor. She was really doing the leg work, they were splitting the profit. But the idea was, these were people she'd known for a long time, they were trustworthy. And she was basically getting a free education out of how to do. But it's true. Very true.
NGUYEN: Do your research. Absolutely. Do that research. But, there is money to be made out there. You can take advantage of this market. Buying stocks that you love. Those stocks that are really well known and they've done well in the past, have good portfolios. Green investing and real estate.
All right. Barbara, we thank you.
KIVIAT: Well, thanks so much for having me on.
LEMON: Maybe that's how you become a millionaire.
NGUYEN: Yes. Maybe we should try it, you think?
LEMON: You know, we should try that green investing.
OK. So are you a millionaire in the making? That's a question we're asking today, in the CNN NEWSROOM.
And we ask that of our iReporters. They're telling us how they boost their bottom lines. And Veronica de la Cruz is with us now.
And apparently Veronica, what I'm hearing from producers is that they have smart ways of increasing your bottom line and possibly become a millionaire.
VERONICA DE LA CRUZ, CNN CORRESPONDENT: Very smart. A lot of our iReporters very smart, Don, when it comes to saving cash. Also really disciplined.
Let's go ahead and start with Miguel Diaz. This is what he has to say. He says, "If you know how I save, Don, you'd know I don't own one credit card, drive slowly on the road, only buy things I absolutely need and contribute to my company-matched 401(k). I drive a 1994 Honda Civic for fuel efficiency to places like work and home and use my bicycle for other places in town and use my bicycle for other places in town. I rent movies, CDs and books from the local library and turn them in on time to avoid late charges. Most importantly, I try to keep track of where my money goes to identify any unwelcome spending.
So again there. They're smart, but they're really also really disciplined, Don.
LEMON: OK. So those are good ideas. But, there's got to be more. Is that it?
DE LA CRUZ: No, no! Of course that's not it.
LEMON: OK, well. What are the iReporters saying? Come on!
De LA CRUZ: OK. Well, Mark Wolfe, from Virginia, he's a single 40-year-old male. And this is what he has to say. He says he's living on a salary that is way less than $100,000 a year. And his goal is to retire by the age of 50 and move to an island. And so far, Don, he says that he is on track.
His secret, check this out, he recycles most everything. He carries only five bills a month. His cell phone, water, electricity, internet, and his credit card, which he always pays off in full. And he says that he shops for his clothes at a thrift store. He doesn't buy any electronic items unless they have an interest-free payback plan. And his advice to all of you out there: "Live inside your means and take advantage of all the free things life has to offer. Pick a few mutual funds and stash away everything you don't immediately need. Find a way to make extra money to pay for the small things, even if it is recycling aluminum cans. Don't be too frugal to health and people in your lives. But good food, embrace your friends and family and value your time and money.
So, there you go. There's another good one. And if you think that you've got good secrets to getting rich, send us an iReport by logging on to iReport.com. I don't know, Don, it just like -- it seems way too hard.
LEMON: Do you remember you put -- give the bottles back and you get like the 5 or 10 cents.
DE LA CRUZ: Are you a recycler for some change? Hey, you can still do that with cans.
NGUYEN: I could never do that. I could never do that.
LEMON: If it works. Did you hear the iReporters?
NGUYEN: That's right.
LEMON: If it works, do it.
Good advice. Veronica de la Cruz, thank you very much.
And you know what? We are showing you how to make money today. Thanks again, Veronica.
We're showing you how to make money today. But also showing you how you're losing it. We continue with bizrate.com's Top Ten Money Drains. Number eight: That bag of chips, that can of soda. The average cost of vending machine snacks is $1, but those bucks add up. The annual cost of one snack every afternoon at work -- $260.
NGUYEN: Yikes.
LEMON: Number seven: The average cost of eating lunch out -- $9. The annual cost of five of those lunches a week, more than $2,300. Wow.
NGUYEN: That's why I brought a sandwich, today. You noticed, right?
LEMON: You pack your lunch often. But you know what? Anyway, Betty does that because she said you make good choices when you do that.
NGUYEN: Right. I eat a lot healthier that way. That's for sure. And cheaper.
LEMON: You don't eat too much.
All right. So anyway, those are some good tips for you. And we're going to share more with you coming up just a little bit later on here in the CNN NEWSROOM.
NGUYEN: And speaking of sharing, listen to this. A new report out today says the government is neglecting the AIDS crisis in the black community. Sending vital funding overseas instead.
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LEMON: The Justice Department press conference going on now regarding Senator Ted Stevens. Let's listen in.
(JOINED IN PROGRESS)
MATTHEW FRIEDRICH, ACTING ASST. ATTORNEY GENERAL: ... who is the deputy chief of the Criminal Investigations Division of the Internal Revenue Service.
Earlier today, a federal grand jury here in the District of Columbia, returned an indictment charging United States Senator Ted Stevens, of Alaska, with seven felony counts of making false statements. The charges relate to false statements that Senator Stevens is alleged to have made on his mandatory financial disclosure forms, filed for calendar years 1999 through 2006.
According to the indictment, as a member of the United States Senate, Senator Stevens was required to file financial disclosure forms with the secretary of the Senate. A primary purpose of such forms is to disclose, monitor and deter conflicts of interest and maintain public confidence in the United States Senate and its membership. These forms, which are publicly available, require the person filing them to disclose among other things whether or not the filer had received any gifts, or had any liabilities or debts.
As to gifts, the filer was required to disclose gifts from any single source over a particular threshold amount that varied year by year. For example, between 2003 and 2006, that threshold amount was $305, such that anything over that amount was required to be disclosed. As to liabilities, the filer was to disclose -- was required to disclose any liability or debt owed by the filer or his spouse or dependent children in an amount greater than $10,000. As well as the identity of the individual or entity to whom each debt was owed.
The indictment charges that while he was sitting as a United States senator between 1999 and 2006, Senator Stevens accepted gifts from a company known as VECO, it's chief executive officer and others. VECO is an oil field services company and operated on an international basis. VECO was one of the largest private employers in the state of Alaska.
The gifts Senator Stevens is alleged to have received include substantial amounts of material and labor used in the renovation of a private residence, Which Senator Stevens and his wife own, located in the town of Girdwood, Alaska. These renovations are alleged to have included the addition of a new first floor with multiple bedrooms and a bathroom, as well as a finished full basement.
VECO contractors and employees performed a significant portion of these renovations. For example, VECO and its employees and contractors are alleged to have provided architectural designs for the renovation, assisted in lifting up the residence and installing a new first floor. Installed electrical, plumbing, framing, heating and flooring materials. Installed a first floor wrap around deck. installed a plastic roof between the first and second floor decks. Installed a heat tape system on the roof and performed gutter repair and electrical work.
The indictment also alleges that Senator Stevens received other gifts from VECO and its CEO, including household goods, furniture, a new Viking gas range, a tool storage cabinet and an automobile exchange in which Senator Stevens received a new vehicle worth far more than what he provided in exchange.
According to the indictment, the total amount of gifts that Senator Stevens is alleged to have received over the duration of the offense is greater than $250,000. Also according to the indictment, these items were not disclosed on Senator Stevens' financial disclosure forms which he filed under penalties of perjury. Either as gifts or as liabilities. And further, that Senator Stevens did not reimburse or repay VECO or its chief executive officer for these items.
I would ask you to keep in mind a few final points before I close. First, let me remind you again that what I have described today are allegations which have been made in an indictment returned by a federal grand jury. In terms of where we are now procedurally in this case, we are at the very beginning of the criminal process because an indictment has just been returned. Like any other criminal defendant, Senator Stevens is presumed innocent unless and until he is proven guilty in a court of law.
Second, in terms of answering any questions that you may have about the indictment, I'm going to need to stick to the four corners of the indictment and will not be able to go beyond what the indictment alleges in answering questions that you may have about the specifics of the charges announced today. As you may know, in about 2004, federal law enforcement agencies began an investigation into public corruption in the state of Alaska.
The fact of this investigation became publicly known with the execution of search warrants at VECO and other locations in Alaska in August of 2006. To date, that investigation has resulted in seven convictions. Among those who have been convicted are Pete Kott, the former speaker of the Alaska House of Representatives; Bill Allen, the former CEO of VECO; and Richard Smith, a former vice president at VECO; William Bobrick, a former lobbyist in Anchorage; and Thomas Anderson, a former Alaska State Representative. That investigation is continuing.
Finally I would like to thank the team assigned to this investigation, which includes prosecutors from the public integrity section of the criminal division, as well as AUSAs, Assistant United States Attorneys from the Alaska U.S. Attorney's office. It also includes from the FBI, agents from the Anchorage field office and from IRS CID agents from their Seattle field office. With that, I am happy to take some questions -- yes.
QUESTION: Matt, if Senator Stevens is convicted, what's the maximum penalty that he would face?
FRIEDRICH: You know, I know a lot of times when the department issues releases, they will issue a statutory maximum, which is taken by the statutory max per count and multiplying it by the number of counts. That is usually something grossly in excess of whatever -- any sentence that ultimately comes down. So, I don't -- you look that up. I don't want to start trumpeting what the statutory max would be -- Laura.
QUESTION: Why did the Justice Department go after disclosures as opposed to other statutes, the tax statute or gift ban statutes? Why did you all go after disclosures?
FRIEDRICH: Right. You know, in terms of -- I guess the best way to answer, in terms of woulda, shoulda, coulda, on other charges. Again, as I eluded to, I really need to stick to what's charged in here in terms of the indictment. The indictment is pretty detailed. I think if you take a look at it, it lays out clearly what our basis is for what we brought.
QUESTION: To follow on that, is there any kind of statute of limitations issue that dealt with what statutes you all went after in charging?
FRIEDRICH: We always need to pay attention to statute of limitations. Beyond that I'm not going to comment -- yes.
QUESTION: To put it another way, you have charged false statements but in your press release you allege that he used his position on behalf of VECO, suggesting a quid pro quo. Can you help us square that?
FRIEDRICH: Let me refer you to paragraph 17 of the indictment. Which alleges that at the same time that Senator Stevens was receiving these things of value, over that same time period, he was also being solicited by VECO to do certain things which he or his staff on occasion did. The indictment does not allege a quid pro quo.
QUESTION: Why?
FRIEDRICH: In the back. I'm sorry, in the red.
QUESTION: This is a sitting senator and obviously it's unprecedented to have a raid on his home. How far up the chain did you have to go to (INAUDIBLE) indicting someone of this stature?
FRIEDRICH: Yes. I guess I would say is that we followed the course that we follow internally in terms of getting indictments approved. Beyond that, I'm not going to comment -- in the back. Yes, sir.
QUESTION: I can ask a question? I had a follow-up on one of the (INAUDIBLE). I know you have an IRS guy here. Why (INAUDIBLE) Stevens report these gifts as income? Since you knew he wasn't disclosing them on his financial disclosure form, why wouldn't be a tax violation if he didn't do that?
FRIEDRICH: Let me answer that question this way. Without reference to this case, my understanding as a general matter, gifts are not reportable -- are not required to be reported as income on tax forms. Income and other things are, but not gifts.
QUESTION: He wasn't disclosing these so why would --
FRIEDRICH: On his ethics, on his ethics -- according to the indictment, on ethics forms, yes.
QUESTION: So, what -- did he report these on his tax returns? Like improvements to a house would be income, wouldn't it?
FRIEDRICH: I'm not going to comment on the senator's tax returns -- yes.
QUESTION: Can you explain the difference between a quid pro quo and what's alleged in the indictment.
FRIEDRICH: This indictment charges violations of the false statement statute. Which is 18 USC 10001. The Bribery Statute is found at 18 USC 201. And without -- you know, again, bribery is not charged in this case, as I mentioned earlier. Bribery requires proof of a specific agreement of a quid pro quo, of a this for that. This indictment does not allege such an agreement.
QUESTION: Were there any other discussions with Stevens or his lawyers about a possible plea deal?
FRIEDRICH: I'm not going to discuss as a matter of policy, we wouldn't discuss any such potential discussions. I wouldn't read into that whether they have occurred or not. I simply can't comment on that.
QUESTION: Has he made arrangements to turn himself in, what's next?
FRIEDRICH: My understand something he will be allowed to turn himself in. He will not be arrested.
QUESTION: Have arrangements been made for a court appearance at this point, do you know?
FRIEDRICH: That will be coming shortly. QUESTION: Is he turning himself in, in D.C. or Alaska?
FRIEDRICH: I'll defer to the bureau on that.
UNIDENTIFIED MALE: A summons will be issued and it worked out. What is most convenient for everyone regarding that and regarding the initial court appearance.
QUESTION: Do you know?
UNIDENTIFIED MALE: I do not know if he is in D.C., no.
QUESTION: Do you know when and how he was informed by the government of the grand jury indictment?
FRIEDRICH: Yes. His attorney received a call earlier today. And I'll leave it at that. Any other questions? Yes.
QUESTION: With the guidelines and sentencing structure with someone of the senator's age, if you could talk about how that works. If there -- someone becomes too old, to have to serve that kind of time? If he's looking at five years under false statements?
FRIEDRICH: Ultimately, we are -- again, we are at the very beginning phase of the process. To talk about sentencing isn't something I'm comfortable with. I will say, generically, you know, ultimately that's something that would be up to the sentencing court -- yes, sir.
QUESTION: Is there anything about whether the senator cooperated at all with this investigation?
FRIEDRICH: Again, I have no comment on that one way or another. I would urge you not to read anything into that one way or another. I simply can't confirm or deny that either way -- yes.
QUESTION: Can you elaborate on what sort of cooperation Bill Allen provided?
FRIEDRICH: Bill Allen entered into a plea agreement. That plea agreement is publicly available to you, it's a public record in Alaska. You can go and look at it and see for yourself what the terms of the plea agreement are. He is cooperating with the United States.
QUESTION: (OFF-MIKE)
FRIEDRICH: As I (INAUDIBLE) of the global investigation the federal agencies have been conducting in Alaska since about 2004, roughly.
QUESTION: May I ask just one thing? In an election year, I wonder if you might address just generally whether or not the department takes special care or follows other particular procedures in order to influence the outcome of the election. You know, given a public (INAUDIBLE), and the president election year, speaking generally. FRIEDRICH: Let me say two things in response to that.
One, when we bring cases as prosecutors, we bring cases based upon our evaluation of the facts and the law. And we bring cases when they are ready to be charged and that's what has happened here.
I would refer you as a general matter, if you recall, Judge McCasey issued guidance to federal prosecutors earlier this year in the form of a memo dealing with election year sensitivities. And while I am paraphrasing what the memo says, the gist of it is that politics should play no part -- partisan politics should play no part, either in what charges we bring or in things like you know, the timing of indictment or that type of thing. That policy has been followed to the letter in this case.
UNIDENTIFIED FEMALE: Thank you very much, everyone, for coming.
LEMON: All right. It is the top of the hour. You're in the CNN NEWSROOM with Don Lemon and Betty Nguyen. And you have just been listening to a press conference in the Justice Department about Republican Senator Ted Stevens, the longest serving Republican in the Senate.
He is being charged with making false statements to investigators after a wide ranging probe into ties between an energy company and lawmakers in his home state. They're talking about one specific company that did services, provided services at his home. Up to $250,000. One of those items and services, at least costing that.
