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U.S. Govt. Suing Armstrong; Obama Warns of Harsh Spending Cuts; Paula Deen's Makeover; Higher Education For Low-Income Students

Aired February 22, 2013 - 14:00   ET

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


FREDRICKA WHITFIELD, CNN ANCHOR: Hello, everyone. I'm Fredricka Whitfield, in for Brooke Baldwin. The news starts right now.

Just in to CNN, the fallout from that explosive doping confession continues for disgraced cyclist Lance Armstrong. He now faces a powerful new adversary, the United States government. CNN has just learned the Department of Justice is suing Armstrong. Ed Lavandera is live now for us in Dallas.

So, Ed, bring us up to date on all this. All this relates back to when Lance was riding alongside Floyd Landis with the U.S. Postal Service team, and then he comes out with this confession, et cetera, and now this pursuit by the Justice Department.

ED LAVANDERA, CNN CORRESPONDENT: Well, several years ago that former teammate, Floyd Landis, in a whistleblower lawsuit filed against Lance Armstrong and his sports teams and various associates, that lawsuit was filed a couple of years ago. Now Lance Armstrong's lawyers tell us that they have been notified by the Department of Justice and told that the Justice Department is joining in on that lawsuit.

This is interesting because about a year ago the Justice Department failed or decided not to pursue any criminal charges against Lance Armstrong, had given that up before the U.S. Anti-Doping Agency put out its damning report, which then led to Lance Armstrong confessing in that televised interview back in January that, indeed, he had used performance enhancing drugs throughout his cycling career and winning those seven Tour de France titles. But now this is a move that could cost Lance Armstrong tens of millions of dollars.

What is interesting, though, is that Lance Armstrong's lawyers tell us that they had been speaking and negotiating with federal lawyers over the last few weeks. We got a statement from one of those lawyers that said, "Lance and his representatives worked constructively over these last weeks with federal lawyers to resolve this case fairly, but those talks failed because we disagree about whether the Postal Service was damaged. The Postal Service's own studies show that the service benefited tremendously from its sponsorship, benefits totaling more than $100 million."

And essentially, Fredricka, this whistleblower lawsuit claims that Armstrong defrauded the U.S. Postal Service and that is an agency that paid Armstrong and his teammates, and the cycling team, some $30 million to sponsor that team while -- between 2001 and 2004 when Lance Armstrong was winning those Tour de France titles.

Fredricka.

WHITFIELD: And so, Ed, I understand that the -- USADA, that U.S. Anti- Doping Agency actually encouraged, was lobbying the DOJ to actually do something, is that right?

LAVANDERA: There are reports that the head of that agency had been pressuring Eric Holder to join in on this lawsuit or trying to convince him to do so. Of course, the USADA is an agency that Lance Armstrong and the head of that agency have butted heads tremendously over the last few months. In fact, they had asked Lance Armstrong to come in and testify under oath to clean up the sport. But Lance Armstrong, after getting a couple of extensions and some -- passing some deadlines, Lance Armstrong decided that they weren't going to participate with the USADA. So just having heard about that several days ago, we're now getting this news from the Justice Department.

WHITFIELD: All right, Ed Lavandera, thanks so much for the update, from Dallas.

After days of uncertainty, "blade runner" Oscar Pistorius driven away there from a South Africa courthouse today. His family with him. The double amputee Olympian accused of murdering his girlfriend was granted freedom until his next court appearance on June 4th.

(BEGIN VIDEO CLIP)

DESMOND NAIR, CHIEF MAGISTRATE (voice-over): In this instance, the accused has reached out to try to meet the state case. Of course against the background of those improbabilities that I have seen and met (ph). That reaching out in the affidavit, in the way that he did, placing it before the court, together with the fact that none of the factors that need to be established have been established, I come to the conclusion that the accused has made a case to be released on bail.

(END VIDEO CLIP)

WHITFIELD: After hearing impassioned final arguments from the defense and the prosecution, the judge set his bail at a little more than $112,000 U.S. dollars. Under the conditions of this bail, Pistorius can't go to his home where the shooting occurred, he must report to police twice a week, he must steer clear of all witnesses in the case and hand over his firearms, as well as his passport, and he has also been told that he can't use drugs or drink alcohol.

I want to bring in Rodney Uphoff, director of the University of Missouri's South Africa Educational Program.

Rodney, good to see you.

RODNEY UPHOFF, UNIV. OF MISSOURI S. AFRICA EDUCATIONAL PROGRAM: Good afternoon.

WHITFIELD: So, does this seem like a fitting decision from the magistrate?

UPHOFF: I wasn't terribly surprised by the decision. After all, the key in setting bail in South Africa or in the United States is, is the defendant a flight risk? And I think, given the circumstances --

WHITFIELD: All right, Rodney, I'm sorry. Let me interrupt you for a moment. We'll get back to this discussion.

But as we know, the four spending cuts is a big issue here in the states that many have been concerned about. We just received this information and this video from the president of the United States and his comments on it. Let's listen.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: An adverse impact on families, on teachers, on parents who are reliant on Head Start programs, on our military readiness, on mental health services, on medical research. This is not a smart way for us to reduce the deficit.

I've also been very clear that there's an alternative, which is for us to take the kind of balanced approach that I presented where we have more strategic cuts upon programs we don't need and we close the tax loopholes that are taken advantage of only by the well connected and the well off.

By the way, that's what the majority of the American people prefer. So I will continue to have conversations with members of Congress, both while they're gone and when they get back next week. My hope is, is that we can see a different course taken by Congress. This should be a no-brainer.

And let me just point out that the overall (INAUDIBLE) of the economy will be to slow down the recovery. And not only may there end up being direct job loss, but because the economy is softer, it also means that we're not going to be driving down unemployment as quickly as we should.

So with respect to world leaders, I think that unlike issues like the debt ceiling, the sequester going into effect will not threaten, you know, the world financial system. It's not like the equivalent of the U.S. defaulting on its obligations. What it does mean, though, is that if the U.S. is growing slower, then other countries grow slower because we continue to be a central engine in world economic programs. So I don't think anybody would like to see this outcome. And particularly when we're poised to grow rapidly as housing comes back, we're starting to see real signs of the recovery taking root, it's the wrong prescription. But, ultimately, I don't need to persuade world leaders of that. They know that. I've got persuade members of Congress and that can be harder sometimes.

UNIDENTIFIED FEMALE: Even if you think a deal -- or even if you think averting the cuts is not inevitable, do you see any realistic sign to be able to reach a deal over the next week? OBAMA: Hope springs eternal. And I will just keep on making my case, not only to Congress but, more importantly, the American people. We take a smart approach to deficit reduction and do it in a way that doesn't endanger our economy and endanger jobs. I just realized, I didn't have --

(END VIDEO CLIP)

WHITFIELD: All right, President Barack Obama there imploring something needs to be done to avoid some of these spending cuts, trying to apply some pressure on The Hill as well.

Jim Acosta now with us from the White House.

So what kind of pressure can the president impose?

JIM ACOSTA, CNN CORRESPONDENT: Well, Fredricka, he's applying a lot of pressure right now. You saw those comments that he made just a few moments ago with the prime minister of Japan, Shinzo Abe. And he made some very interesting comments I think that we need to highlight, Fredricka.

One thing that he said there is that unlike the debt ceiling, that this fight over sequestration is not going to plunge the country and the world into some kind of financial crisis or cause global financial problems. That seems to be a message to Congress that, hey, you know, you could take just as long as you want with this.

Now, he did say that this is not a smart way to go about doing this. That real people will be hurt. But in terms of how he's putting the pressure on Congress, you know, keep in mind, he's only had one phone conversation or a few phone conversations that we know of with Republican leaders on Capitol Hill.

What he's been doing, Fredricka, is going over the heads of Congress. He was speaking in front of first responders, as you'll recall, earlier this week. He's going to be going down to a naval shipyard in the Tide (ph) Water (ph) area of Virginia on Tuesday to sell his message on these forced budget cuts then. And he had his Department of Transportation secretary, Ray LaHood, come out of the White House briefing earlier this afternoon, just around noontime, saying that if these forced automatic budget cuts go through, that there are going to be major delays at the airports because they aren't going to have enough air traffic controllers manning their stations.

And so what the White House is doing at this point, Fredricka, and they have learned, they believe, from past budget crises, is that it might be more effective to go over the heads of Congress, talk about all the way -- all of the ways that this will affect people, instead of those conversations over the phone, which, as the president knows, hasn't gone very far, at least in some of these past crises, Fredricka.

WHITFIELD: And they were talking about $1.2 billion in cuts that impact defense and other domestic spending issues and areas.

All right, thanks so much, Jim Acosta there from the White House.

ACOSTA: You bet. Sure.

WHITFIELD: And in a moment, when we come back, we're going to resume our conversation about Oscar Pistorius, "blade runner," and the bail imposed on him in Pretoria.

(COMMERCIAL BREAK)

WHITFIELD: All right, back now to the fate of Olympian Oscar Pistorius. After hearing impassioned final arguments from the defense and the prosecution, the judge today set his bail at a little more than $112,000 U.S. dollars. And just to revise -- or revisit this now, under the conditions of his bail, he can't go to his home where the shooting occurred, he must report to police twice a week, he must steer clear of all witnesses in the case and hand over his firearms and passport, and he has also been told that he cannot us drugs or even drink alcohol.

So let's bring back Rodney Uphoff, director of the University of Missouri South Africa Educational Program.

And earlier I asked you, you know, if you were surprised at this. I guess it's a fairly lenient bail that was imposed on Oscar Pistorius.

UPHOFF: Well, it may seem lenient, but I think the key was that the judge did not feel that Mr. Pistorius was likely to be a threat to flee, which is the most important consideration. He didn't see him as someone who was likely to intimidate or threaten witnesses or destroy evidence. And he gave a lengthy explanation of his activities that night, which the judge certainly found some significant issues with that statement and explained why he had some reservations or doubts about some of the statements made.

Nonetheless, he felt that it was unlikely, in his view, that Mr. Pistorius would simply try to take off rather than defend himself in court. So taking all those things into consideration, the judge decided to grant bail and give him the opportunity to stay out of prison, which is the situation in South Africa. You don't go to a county jail. You go to prison if you're not released on bail.

WHITFIELD: Yes. So in what way might this decision impact the upcoming trial, or even impact whether charges would change? Right now it's premeditated murder that he's facing, but might there be some wiggle room now that he has been allowed out, that it does seem a bit lenient, might there be some wiggle room that these charges might be changed?

UPHOFF: I don't think that the judge's decision with respect to bail will have any effect whatsoever on the charging decision by the prosecutors. I think that they are probably continuing to gather evidence, to review evidence, and they -- my best guess is that they will go ahead with the charge of premeditated murder. But if they decide to reduce the charge at all, which I think is highly unlikely, it will not be as a result of any of the comments the judge made. WHITFIELD: And if convicted, no life sentence in South Africa, but the magistrate would -- or the judge would make a decision about what kind of jail time, if any, he would be facing. What's at stake here? What are the options?

UPHOFF: Well, as you know, South Africa does not have the death penalty, but they do have what they call mandatory life sentence. And if he was convicted of premeditated murder, he would face a mandatory life sentence. But unlike in the United States, a mandatory life sentence in South Africa does allow for parole. So he would likely, this assumes he was convicted of premeditated murder, he'd likely spend a significant period of time, maybe as much as 25 years, in prison. If he's convicted of a lesser degree of murder, culpable homicide, then the judge is likely to impose a far less sentence.

WHITFIELD: OK. And, you know, even in the investigative phases, there have been some, I guess, real blunders. I mean the magistrate himself used the word blundering errors, the chief investigators, in addition to the fact that that person is facing some charges of his own. How might that impact the rest of this case or how it moves forward?

UPHOFF: Sure. Well, police bungling is not uncommon in South Aftrica. It's an under resourced police force that has had problems ranging all the way from claims of incompetence to police corruption.

Nonetheless, the question is, were there enough police officers at the scene? Did they gather the evidence appropriately? Were there significant mistakes made there? Did they get all the evidence? I'm not sure, at the end of the day, that the fact that this particular officer who was in the lead in the early part of the case, whether or not his bungling will ultimately compromise the prosecution's ability to go forward and prove their case.

WHITFIELD: Rodney Uphoff, thanks so much for your expertise. Appreciate it.

UPHOFF: Appreciate your time. Thank you.

WHITFIELD: Coming up next, we catch up with Paula Deen. The southern cooking queen opens up about her battle with diabetes and shows us how eating right doesn't mean cutting out taste.

(COMMERCIAL BREAK)

WHITFIELD: All right, southern cooking queen Paula Deen has shed about 40 pounds since revealing her diabetes diagnosis just over a year ago. She's working out regularly, touting healthier recipes as well. There you see her. Deen is a paid spokesman for diabetes drug maker Novo Nordisk. And they have teamed up for a new contest to help people share tips on managing diabetes. And Paula Deen joining us live now in Miami at The Food Network South Beach Wine and Food Festival or Food and Wine Festival.

Paula, good to see you. That's always a good time there.

PAULA DEEN, HOST, "PAULA'S HOME COOKING": It's great. It's great to hear you, Fredricka.

WHITFIELD: I know. Wish we could see each other.

DEEN: How are you, dear?

WHITFIELD: I wish I was in So B with you. I'm doing good.

DEEN: I wish you were.

WHITFIELD: Well, tell me how you are highlighting this healthier eating and still enjoying rich, you know, tasty food while you're there in South Beach?

DEEN: Well, Fredricka, I am finally learning the real meaning of moderation. You know, nobody wants to go through life feeling like they are living a second-class life. You know, we want to enjoy all the good things in life. So I found moderation is working well for me.

But, you know, there's a lot of things involved. You want to make sure that you visit your doctor regularly, discussion your position and where you need to be. And, of course, walk. I try to walk as much as I can. But moderation.

WHITFIELD: Like every day or just kind of fit it into your week?

DEEN: I kind of fit it into my week because my hours can be crazy.

WHITFIELD: I believe it.

DEEN: Today I started at 5:00 a.m. this morning, so --

WHITFIELD: Oh, my.

DEEN: You know, I probably won't get a walk in today.

WHITFIELD: Yes. Well, you know --

DEEN: But I will run -- I will run to my bed tonight.

WHITFIELD: OK, there you go. Every little bit counts.

So when you talk about moderation --

DEEN: Yes.

WHITFIELD: You know, you're talking about quantity sizes. You're not necessarily cutting out all the stuff that tastes so good that sometimes is, you know, like filled with a lot of butter or, you know, creams and all that good stuff.

DEEN: Right.

WHITFIELD: But just, you know, reducing the portions. Is that what you're talking about when you say moderation?

DEEN: Right. Exactly. And, you know, everybody has to choose what works best for them. Some people want to feel like they can eat a lot. So that's when you come in and you substitute with the low-fat mayonnaise, sour cream, that sort of thing.

WHITFIELD: Is the recommendation kind of like, you know, a portion would be like your fist size? Is that reasonable?

DEEN: You know, I'm kind of the person that, I want things to taste really, really good.

WHITFIELD: Yes.

DEEN: So I'm for using the real ingredients --

WHITFIELD: OK.

DEEN: And then just cutting back on my portion.

WHITFIELD: OK. Well --

DEEN: So, like I said, everybody has to decide what works best for them. You know, if you want a --

WHITFIELD: I think we have an example of one of your recipes on how you can still enjoy, you know, something that's rich in flavor and taste. We're talking about your gumbo recipe. Kind of gumbo light. And --

DEEN: The vegetable gumbo.

WHITFIELD: Yes. How did you come about this and what are kind of the key ingredients?

DEEN: It's just delicious. It's vegetables. There's no meat in it. And we use low sodium ingredients in it. And it is absolutely delicious. In fact, people can go to diabetes (INAUDIBLE), Fredricka, and they'll find recipes that we have really, really cut the fat and calories down in. And you don't feel deprived at all when you're eating these recipes. And have you heard about the contest that we've got going on right now?

WHITFIELD: Tell me all about it. And, by the way, that gumbo recipe, that gumbo light, is on our website at cnn.com/brooke. But tell me about the contest real quick before you go.

DEEN: Good. Good. You'll have to try that.

WHITFIELD: Yes.

DEEN: Well, from now until April the 14th, we're asking people to take a snapshot of themselves or send in a video and just talk to me about your story. And it can be someone that loves you very much. If they would --

WHITFIELD: Your food story. Your love of food kind of story?

DEEN: Well, yes, and battling with diabetes. And we're going to select six of those people along with a guest to come to Savannah and have lunch with me.

WHITFIELD: Oh, nice.

DEEN: And us just share stories and get to know each other.

WHITFIELD: I love it.

DEEN: So I really hope -- yes, I really hope that people out there that have fought the battle that I'm fighting will participate and maybe come to Savannah and let's have a little party.

WHITFIELD: Well, I think people are very much inspired by you and your journey and are probably very much inspired now to come to Savannah to visit with you.

DEEN: I hope.

WHITFIELD: Paula Deen, thanks so much for joining us from Miami today.

DEEN: Thank you, Fredricka. I leave leaving hope behind, I hope.

WHITFIELD: Fantastic. That's on the plate. Thanks so much.

All right, his vision was simple, provide every low-income high school student with access to higher education. So, Michael Carter launched Strive for College. A free program that pairs high school students with mentors to help them apply for and get into college. And he is this week's CNN Hero.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: The state took me and my siblings away from my mom when I was 14. Now we live with our grandparents. I don't want to be faced with the limits that my mom faced. And that's why I want to go to college.

My grandparents only went to grade school. There is nobody at home that could help me figure out how I could reach my dream.

MICHAEL CARTER: Applying to college can be very bewildering. There's over 400,000 low-income students every year who graduate qualified to go to a four-year college and they just don't go.

My name is Michael Carter, and I help qualified underserved students apply to, pay for, and stay in college.

UNIDENTIFIED FEMALE: Week two, finished our FSTA (ph).

CARTER: We bring the college student mentors to high schools to help students through the entire process.

How many more apps do you have to do?

UNIDENTIFIED FEMALE: Nine.

CARTER: Nine and you're done? UNIDENTIFIED FEMALE: I did them all.

CARTER: That's pretty good.

It's completely free. Students pick their mentor and they meet weekly until they're accepted into college.

UNIDENTIFIED FEMALE: I've never really thought of myself as the greatest student. Like college was not on my mind.

UNIDENTIFIED FEMALE: All the anatomy --

UNIDENTIFIED FEMALE: Now I'm a sophomore at (INAUDIBLE) State University. My full tuition is covered and I 'm mentoring a high school student. I am proof that Strive for College works.

CROWD: Strive, strive, strive, let's strive, everybody.

CARTER: Together, we are going to solve this problem.

(END VIDEOTAPE)

WHITFIELD: And you can nominate a hero there.

All right, so a woman found dead in a hotel water tank. Just ahead, a new video that the Los Angeles hotel does not want you to see as CNN's cameras go inside.

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