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Feds Are Suing Lance Armstrong; Oscar Pistorius Gets Bail; Spending Cuts To Take Effect In One Week; Bugs, Sexing, Uncovered At FBI; Canadian Police Caught Punching Suspect; Rapper Caught in Las Vegas Shooting, Fiery Crash

Aired February 22, 2013 - 13:00   ET

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


SUZANNE MALVEAUX, CNN ANCHOR: With tears in his eyes, Oscar Pistorius gets the answer that he was hoping for. The magistrate says yes to bail. We're going to have a live report from South Africa straight ahead.

Plus employees behaving badly, very badly, bugging offices, sending naked photos to co-workers and sexing while using company phones. And get this, it all happened at the FBI.

Then whiteout. Record snow in parts of Kansas after a storm hits 20 states leaving people shoveling, flyers stranded.

This is CNN NEWSROOM, and I'm Suzanne Malveaux. Well, things just got a lot more complicated for Lance Armstrong. We're going to start this hour with new reports now that the Justice Department plans to sue Armstrong for using performance enhancing drugs. Ed Lavandera joining us. Tell us what the new turn of events means for him.

ED LAVANDERA, CNN CORRESPONDENT: Well, there is a lot of movement on this front. And, you know, if you'll remember about a year ago, the Justice Department decided not to sue Lance Armstrong. But now, there are multiple reports out there that says the Department of Justice is changing its mind on this and will reportedly join the whistleblower lawsuit that has been filed but is kept under seal right now that -- from former teammate Floyd Landis. And what all of this means for -- or could mean for Lance Armstrong is a big legal fight that could end up costing him 10s of millions of dollars.

The United States Postal service, during that run where Lance Armstrong won from 2001 to 2004, paid Lance Armstrong some -- and his cycling team some $30 million. This whistle blower lawsuit brought by Floyd Landis which almost -- very few people have been able to get in -- very -- much information on basically says that because Lance Armstrong and his teammates used performance enhancing drugs, that they essentially defrauded the government in this case.

So, there have been talks -- we got a statement from one of Lance Armstrong's attorneys saying that Lance and his representatives worked constructively, over these last few weeks, with federal lawyers to resolve the case fairly, but those talks failed because we disagree about whether the postal service was damaged. The postal service's own study show that the service benefited tremendously from its sponsorship, benefits totally more than $100 million. But, Suzanne, here, basically in the end, another big legal fight that Lance Armstrong faces that could cost him tens of millions of dollars.

MALVEAUX: Oh, it's a very big deal. Thank you, Ed.

World class Olympic athlete that we've been following, of course, charged with murder, no longer in jail. We're talking about the South African sprinter, Oscar Pistorius. The country's chief magistrate today granted him bail, more than a week after his girlfriend died, was killed from gunshot wounds inside his house.

Well, Pistorius is not just walking free and clear though. His bail is about $112,000 U.S. Also, he can't go back to his house, of course. It is a crime scene. He has to hand over his passport along with the -- his guns and he's not allowed to drink alcohol while out on bail. His next court appearance is now set for June 4th.

Before setting him free on bail, however, the South African magistrate ran down every minute detail of the case so far, including what happened the night of the shooting. It was Valentine's Day. Pistorius says he was convinced that an intruder was inside his house hiding in his bathroom and that's why he opened fire. Well, prosecutors, they're going to argue that he knew who was in the bathroom, and he killed his girlfriend intentionally.

Exactly one week from now, forced spending cuts will go into effect automatically if Congress and the president don't reach a deal on the deficit. So, how do you feel about it? Well, a Bloomberg poll now showing 54 percent of those want those cuts delayed, 40 percent say cut away.

Ali Velshi and Christine Romans have a look at other ways that the cuts could also hit you.

ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: Thanks, Suzanne. It's almost upon us. It's a stupid name for a stupid thing.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Oh, my gosh. You've been saying that for months now.

VELSHI: I know.

ROMANS: Really, we're calling it the sequester. It's a terrible word. It was never supposed to happen. The sequester is almost like the or else. Congress and the president were supposed to figure out how to cut the deficits or else they'd have a sequester, forced spending cuts.

VELSHI: All right. So, here we are, a month and a half past the original deadline and still no deal to avoid it. Now, you've heard the big numbers, --

ROMANS: Yes.

VELSHI: -- $1.2 trillion in cuts over 10 years, $85 billion this year, 13 percent cuts to defense, nine percent to everything else. Our colleagues here at "CNN MONEY" came up with some of the specifics of what this thing, these forced budget cuts, are going to feel like. ROMANS: And there are, quite frankly, dozens of ways you'd feel it, but look at education first. Maybe more than 14,000 teacher and staff members facing layoffs as school districts deal with those cuts. Also, think of this, 70,000 students would no longer have a spot in Head Start. Criminal justice, all FBI workers would be forced to take up to 14 unpaid days off. Border patrol, anything that has to do with law enforcement on the federal level --

VELSHI: Yes.

ROMANS: -- would face big cuts. And national parks.

VELSHI: Yes.

ROMANS: I mean, you might not think about that but, you know.

VELSHI: That's actually something that matters to a lot of people. You want to go for a springtime hike, you better call ahead to see if the sequester affects reduced hours and services at these parks. And last and most annoying, travel. Prepare for longer lines, longer wait time, slower security checks at airports.

ROMANS: Here's something you don't have to worry about, Medicare and Social Security largely untouched. Also, safety net programs like Medicaid and food stamps also exempt. Military personnel and veterans affairs. But, you know, everyone's going to feel it one way or another unless Congress gets its act together. We will not call it the sequester. The forced budget cuts are going to hit you.

VELSHI: All right, back to you, Suzanne.

MALVEAUX: All right, thanks, guys. Exactly a week from now, that is when those forced spending cuts are going to go into effect automatically, right, if Congress and the president don't actually reach a deal.

So, I want to talk a little bit about that with our Jim Acosta at the White House. And, Jim, do we know are there going to be any kind of talks between president, between members of Congress, in front of the cameras, behind the cameras, any movement all we expect?

JIM ACOSTA, CNN POLITICAL CORRESPONDENT: Well, Suzanne, we do know that the president had some conversations with Republican leaders on the Hill yesterday, but the White House is not providing any kind of insights into how those conversations went, whether or not there is some flexibility on the side of the White House or on the side of Congress, at this point. And so, really at this point, the public, the press, everybody sort of looking at this from a distance and wondering like everybody else. You know, what is going to happen one week from today?

But what we can tell you, Suzanne, is that the administration seems to be ratcheting up the pressure on Congress. You know, just about every day they're talking about the way that these automatic budget cuts will affect the folks who are watching this right now. You know, earlier this week, they were talking about cuts to the Head Start program, meat inspectors that might be furloughed so they won't be able to inspect the meat that goes to your supermarket.

And then, the Secretary of Transportation, Ray LaHood, a Republican in President Obama's Cabinet, he came to the podium at the White House briefing earlier today to warn of what will happen with the FAA. He says that there are going to be furloughs of FAA employees, that means air traffic controllers who won't be showing up for work on certain days of the week because of these budget cuts. And that's going to affect airports, because they say without all of the air traffic controllers that they would normally have manning those stations, that they're going to have to slow things down going into major airports like New York, Chicago, Los Angeles. And that, in the end, is going to result this delays.

Here is what the secretary had to say.

(BEGIN VIDEO CLIP)

RAY LAHOOD, TRANSPORTATION SECRETARY: Obviously, as always, safety is our top priority and we will never allow the amount of air travel we can handle safely to take off and land which means travelers should expect delays. Flights to major cities like New York, Chicago and San Francisco and others could experience delays of up to 90 minutes during peak hours because we have fewer controllers on staff. Delays in these major airports will ripple across the country.

(END VIDEO CLIP)

ACOSTA: Now, that is in addition to those TSA workers that the Department of Homeland Security was warning about last week, that those folks might be furloughed, as well, and that might also result in delays at the airport. And so, Suzanne, we are one week away from all of this taking place. And the administration at least day by day seems to be satisfied, at this point, taking the position that, hey, we can just go ahead and roll out how all of this is going to affect you and maybe not negotiate with Congress so much until we get a little bit closer -- Suzanne.

MALVEAUX: All right. Jim, thanks. We're going to be watching very closely.

ACOSTA: You bet.

MALVEAUX: Here is also what we have this hour. Putting a bug in your boss' office, sending naked pictures to a co-worker, marrying a drug dealer and lying about it. Could you actually work in a place like that? Well, according to internal reports, obtained exclusively by CNN, it all happened at the FBI. We're going to explain.

And then, of course, police caught on camera kicking and punching a suspected robber. The investigation into the forceful arrest of a 19 year old in Canada.

This is CNN NEWSROOM. It is happening next.

(COMMERCIAL BREAK) MALVEAUX: Major development in the Oscar Pistorius murder case. The Olympic track star no longer in jail. He was granted bail, left the court. We've got details on the conditions of his bail in a moment. But first, just a couple of minutes ago, I talked to a law professor in South Africa who is watching this case very closely. So, he cleared up a lot of things he says that are similar and very different than how we handle things here in the American justice system.

(BEGIN VIDEO CLIP)

LLEWELYN CURLEWIS, VICE PRESIDENT, LAW SOCIETY OF THE NORTHERN PROVINCES: You must remember that we don't have a jury system in South Africa, but we do, however, every now and then, you make use of officials. That's the first major difference between ourselves and the American system, obviously. And also take into account that in the South African law, we have the situation where there are competent verdicts in our criminal procedure both into the main charge, and this means that we will typically see that Oscar Pistorius will also face a charge of culpable homicide which more or less amounts to manslaughter in the American system.

(END VIDEO CLIP)

MALVEAUX: I want to go live to the courtroom in Pretoria. Robyn Curnow, she has been following this every step of the way. Robyn, wow, I mean, I don't think you've slept, what, in a week or so? You've been out there in front of the courthouse. You told us earlier that when the bail announcement was actually announced, people were shouting, yes, they were cheering for Pistorius. What has been the general reaction?

ROBYN CURNOW, CNN CORRESPONDENT: Well, in that courtroom, there was sort of a whoop of delight from people in the gallery behind him. What is key is that he barely registered it. I mean, you didn't really see any emotion coming from him, so that's one thing to mention. This is a man who, I think, who is really in some sort of shock. It's all sinking in. His family also huddled around sort of praying. There wasn't huge jubilation within that courtroom or very obvious sense of celebration. I think this family and Oscar Pistorius are very, very aware this is a tough life-changing few years ahead of him in terms of fighting this if they want to.

Outside the courtroom, speaking to people here, walking through passers as we're doing lives, you know, there is mixed reaction. I think Oscar Pistorius still holds a deep emotional attachment particularly with young South Africans who have really found him inspirational. I spoke to one of them. This is now what they think. This is what their opinion is of the way this has played out.

(BEGIN VIDEO CLIP)

OMPHILE MOGOTSI: It's amazing how my family members would feel completely different to how I am.

CURNOW: Why, do they think he should go to jail? MOGOTSI: Some of them. Some of them think he should rot in jail, and he's a danger to society. And, I mean, it's funny how yesterday we called him a hero, and the following day, people just say, now he should just be put to the sword.

(END VIDEO CLIP)

CURNOW: And you know there's one comment we haven't heard from Reeva Steenkamp's family have not yet made any acknowledgment of the dramas taking place in court or the bail agreement. So I don't know if they will comment at all.

Just remember, as he goes home, we're not sure where he's going to go. He can't go back to his home where the crime scene took place, but he will be within his family's homes, one of them. As he goes to sleep tonight, remember, Reeva Steenkamp's family still trying to digest, still grieving of course for that young woman who won't be coming back.

MALVEAUX: Absolutely. Thank you. Appreciate it.

Police in Canada caught on camera kicking and punching a suspected robber. The investigation is up next.

(COMMERCIAL BREAK)

MALVEAUX: In Canada police officers caught on tape punching and kicking a suspected robber as he lies face down on the ground. You see the videotape there. 19-year-old Alexi Von Mon Coeur (ph) tossing away a gun as police surround him. Police say he had broken into a business, they had to use force because they felt their lives were in danger.

Paula Newton, she's covering the story. Joining us from Ottawa. So, Paula, what does this videotape reveal, and how are the police responding?

PAULA NEWTON, INTERNATIONAL SECURITY CORRESPONDENT: Just take a look at that video. It was hard not respond once the lawyer added that had to evidence. What happened was, four police officers from that little town responded to a break-in at a drug store and this is the snippet that we see.

The lawyer for the suspect entered this into evidence today, it's why we have it in terms of a bail hearing. But on the police report, it says these police officers feared for their lives and yet the defense lawyer is saying look at this tape, look how many times they beat him in the head and they say in the genitals. But if you watch the video clearly, when you see that his gun is clearly to his left-hand side, the police see that and another officer actually pushes the gun away and then punches start flying. We're only seeing a short snippet of what happened that evening and it's certainly still being investigated right now.

MALVEAUX: Yeah, Paula, it's always kind of reminiscent of the LAPD beating of Rodney King. Do they suspect there's more to the story than this small clip?

NEWTON: They're not saying. AS is customary, obviously, the local police force is not investigating itself. I spoke with provincial police and they're investigating the incident that took place on February 2, took place in a drug store in Trois-Rivieres, Quebec. And that the surveillance video is part of the investigation, though they then told me they had no further comment at this time.

But just take a look at that video. It's cringe worthy and that's what the defense lawyer pointed out in court, saying this is some of the worst videotaped evidence I've ever seen of excessive force on a suspect. Now, that is his opinion. Police say they are still investigating and that could take weeks. But certainly the suspect saying, look, I did all I could to surrender. And when you look at that tape, from the small snippet that we see, it's pretty textbook. He's lying flat down, his face on the floor, hands behind his back, and he threw the gun before he did that.

MALVEAUX: Yeah, a lot of guys on him there. What's happening to those cops who are in that tape?

NEWTON: They've been suspended with pay pending the investigation. But as I say, what is key here is the fact that they're not investigating their own. The provincial police have come into investigate all of this. And you have to wonder exactly, this is a young man, 19 years old, you have to wonder what's going on with policing in that town. There has been a rash of these kinds of burglaries and certainly police trying to get one step ahead of it. At the same time, defense lawyers saying look at this tape. What are we seeing on this tape?

MALVEAUX: Paula, thank you. Really appreciate it. This is an amazing story, employees behaving really badly, sending naked photos to coworkers, sexting, all while using company phones. And it happened at the FBI.

(COMMERCIAL BREAK)

MALVEAUX: A rapper is among the dead from Thursday's Las Vegas strip shoot-out and the fiery crash you saw. The accident was so horrific that Vegas visitors, they saw this fireball from Caesar's palace. Rapper Kenneth Cherry Jr., he's known as Kenny Clutch, he was driving his Maserati when someone in a black Range Rover fired several shots at his car. So the Maserati blew through the intersection, hit a cab, which then caught fire, killing the 62-year-old driver and his passenger inside.

Miguel Marquez is joining us from Los Angeles.

Miguel, obviously a lot of people still trying to understand what happened there. Do we have anymore information about the investigation? And I understand that they have a memorial service already for the poor cab driver who was a part of al this.

MIGUEL MARQUEZ, CNN CORRESPONDENT: Yes, it is so hard to look at that video and think that the person that was inside that flaming cab, that 62-year-old driver of Michael Boldon, he was from Detroit. Cabbies in Las Vegas today held a little memorial for him. He had been in Las Vegas for about a year. On that particular day, it was his first call of the day that he was working on, taking someone to someplace, they both perished in that accident. Mr. Boldon's brother says this is a guy who always had smile on his face and would do anything for anyone.

(BEGIN VIDEO CLIP)

TEHRAN BOLDON, VICTIM'S BROTHER: My life mission would be to see them punished and brought to justice for the thing that they did. They don't know who they touched.

(END VIDEO CLIP)

MARQUEZ: So hard to watch. And then Kenneth Cherry or Kenny Clutch as the aspiring rap artist was known, he was a father of two kids. We know he was at the Aria hotel earlier in the evening at a club there. This all began in the valet section of the Aria hotel. This is a guy who is from Oakland. He had lived in Las Vegas for several years. And his father says that his family is just devastated.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: When I talk about my son, that was the sweetest young man I ever met. He had a little mean streak this him, but he was kiss, too. He was a smart, lovable person. And he cared about other people.

(END VIDEO CLIP)

MARQUEZ: Police in Las Vegas saying that they are still on the lookout for that black SUV, a black Range Rover. They extended it out to several stays, but it's a BOLO alert, a be on the lookout alert, which goes out nationwide. So really, they are looking everywhere for that, and they believe they will eventually get them. They say they have tons of surveillance material from the strip that night, Suzanne.

MALVEAUXl All right, Miguel, thank you. Appreciate it.

This is a bizarre story. Imagine this, putting a bug in your boss' office or sending neighbored pictures of a co-worker, marrying a drug dealer, lying about it. These are all crazy things. Could you can imagine working in a place like that? Well, according to some internal reports obtained by CNN, it happened at the FBI.

Drew Griffin with the special investigations unit.

(BEGIN VIDEOTAPE)

DREW GRIFFIN, CNN SPECIAL INVESTIGATIONS UNIT: The FBI's motto is "fidelity, bravery, integrity." Agents take down bank robbers. And the mob. The FBI's polished image kept in the spotlight by countless TV shows and movies.

But there's another side to the FBI contained in these confidential internal records obtained by CNN that show serious misconduct by employees and even supervisors. Assistant FBI director Candace Will oversees the agency's office of professional responsibility. She sends out the reports four times a year to all 36,000 employees.

CANDACE WILL, FBI ASSISTANT DIRECTOR: We do our very best. We don't obviously if you know anything about our quarterlies and they're not a public document, but we know that doesn't mean that CNN doesn't have a copy. There are no names, there are no locations, there are no job titles. We do our best to sanitize the quarterlies so that the employee's identity is protected while imparting as much knowledge as we can about what happened, so employees can learn something from it.

GRIFFIN: CNN obtained these summaries from the last year that include an employee who hid in a recording device in a supervisor's office and did an unauthorized search of that office. Another who was involved in a domestic dispute at a mistress' apartment in which the police were called. Another hid or destroyed electronic evidence, and one other employee repeatedly committed check fraud. And then there's the employee who married a drug user/dealer and lied about it. All of them were fired.

Knowing what this agency does, knowing what this agency is about, how can anybody be so stupid?

WILL: Well, you know, it's funny you say that because we look at our cases and we are struck sometimes, I've been doing this a really long time. I've been doing this nine years at the FBI. As long as I've been doing it, and there are days when I think I've seen it all, but I really haven't. I still get files and think, wow, I never would have thought of that.

GRIFFIN: But I've got to tell you, I don't think I would ever bug my boss's office, especially if my boss was an FBI agent.

WILL: Oh I know it's extraordinary. I agree.