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Representative King: Prosecute Journalists; NSA Director To Testify On Capitol Hill; NSA Leaker Remains In Hiding; Ron Paul: Snowden Faces U.S. Risk; NSA Leaker's Girlfriend In Spotlight; Sales Of Orwell's "1984" Surge; Wind, Heat Fuel Five Colorado Wildfires; New Jersey Bill: Cops Could Seize Driver's Phone; Walgreens Fined $80M In Drug Probe; Chrysler Faces June 18 Recall Deadline; Doctors Switching To Cash Only Model; Ariel Castro Pleads Not Guilty

Aired June 12, 2013 - 10:00   ET

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

ANDY SCHOLES, "BLEACHER REPORT": -- expected to compete with Ryan Mallett for the right to back up Tom Brady. After yesterday's practice, Tebow didn't take any questions, but he did talk about joining the Patriots.

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TIM TEBOW, PATRIOTS: I'm very thankful, it is such an honor to be a Patriot and play for Coach Belichec and for Coach McDaniells and I learn from Tom, be a part of this great franchise, part of a very successful franchise. I found that out firsthand, lost to him several times. So it will be a lot of fun. Looking forward to working hard every single day and getting a lot better, and learning under some great people. That's all I got. Thank you all so much and God bless.

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SCHOLES: And Carol, Tebow looked pretty good throwing the ball next to Tom Brady. It's still hard to know if that taichi he learned in the off season helped fix his throwing motion.

CAROL COSTELLO, CNN ANCHOR: Andy Scholes, thanks so much. The next hour of CNN NEWSROOM starts now.

Happening now in the NEWSROOM, a huge fire, mandatory evacuations ignored.

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UNIDENTIFIED MALE: I am not experienced with fires. I tell you what, I won't underestimate it again.

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COSTELLO: Colorado on fire as strong winds fuel the flames.

Also a pole dancing girlfriend blogs about her boyfriend, Edward Snowden, America's most wanted man, "My world had opened and closed all at once, leaving me lost at sea without a compass."

Plus, looters in Oklahoma, six now under arrest for stealing from tornado victims, police struggling to stop it.

And who? Puig, the best baseball player you never heard of.

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UNIDENTIFIED MALE: In the first three games in which he played, it has been truly remarkable to see such talent.

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COSTELLO: Puig merchandise flying off the shelves, not bad for a guy that played for the Dodgers for a week. You're live in the CNN NEWSROOM.

Good morning. I am Carol Costello. Thank you so much for being with me. Quote, "He is neither a defector nor a traitor," that's how one leading congressman describes Edward Snowden, the intelligence contractor who remains in hiding this morning. Snowden exposed the secret government program that monitors phone calls and online activity.

Republican lawmaker Peter King of New York says the reporters who publicized those leaks should also face charges.

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REPRESENTATIVE PETER KING (R), NEW YORK: If they willingly knew that this was classified information, I think action should be taken, especially on somebody of this magnitude. I know that the whole issue of leaks has been going on the last month, but I think something of this magnitude there's an obligation, moral and legal against a reporter disclosing something that would so severely compromise national security. As a practical matter, I guess there have been in the past several years a number of reporters who have been prosecuted under it so the answer is yes.

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COSTELLO: Joe Johns is our crime and justice correspondent. Joe, the NSA director is due to testify this afternoon in a Senate hearing. I guess we are likely to see similar passion from other lawmakers.

JOE JOHNS, CNN CRIME AND JUSTICE CORRESPONDENT: Potential for it, Carol. This is a spending hearing so there's likely going to be a lot of things to talk about. Safe to say that the leak controversy is likely to come up in some form, and there's growing unease about all of this on Capitol Hill.

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JOHNS (voice-over): Investigators are asking where in the world is the man at the center of the scandal, former intelligence contract worker, Edward Snowden. Members of Congress were told in a briefing at the capitol that the National Security Agency doesn't know, a real irony, says former Justice Department official, Andrew McBride. ANDREW MCBRIDE, FORMER JUSTICE DEPARTMENT OFFICIAL: On the one hand, the NSA is collecting all this information and we have no liberties and on the other hand they don't know where this guy is.

JOHNS: Chief of both the National Security Agency and U.S. Cyber Command Keith Alexander is heading to Capitol Hill and can expect a grilling this afternoon. At least one member says he was surprised by the scope of the surveillance program.

REPRESENTATIVE BRAD SHERMAN (D), CALIFORNIA: I did not know a billion records a day were coming under the control of the federal executive branch.

JOHNS: It's part of the growing outcry for the government to make more information available to the public about its secret phone and internet tracking programs, and it's not just politicians, internet giants, Google, Microsoft and Facebook are calling for greater transparency and permission to tell the public what they gave out. And lawsuits are threatening including the ACLU challenging the constitutionality of the phone program. Suspected leaker Edward Snowden says he wants that debate.

EDWARD SNOWDEN, NSA LEAKER: The public needs to decide whether these programs or policies are right or wrong and I'm willing to go on the record to defend the authenticity of them and say I didn't change these. I didn't modify the story. This is the truth. This is what's happening. You should decide whether we need to be doing this.

JOHNS: While a law enforcement official says there's no time frame for when charges will be filed, legal experts the most likely charge is unauthorized disclosure of classified information under the espionage act.

MCBRIDE: There's one felony here that pretty clearly applies and that's the disclosure felony, which has 10-year max. So you can stack those up all you want, but under the sentencing guidelines basically he's looking at 10 years.

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JOHNS: Now a lot of legal authorities say if and when charges against Snowden have been presented before a magistrate and it could have happened already in a sealed court document, the next step would be to cancel his U.S. passport. The question is how well prepared he is to be on the run, and what measures he took to elude law enforcement in advance of disclosing his identity -- Carol.

COSTELLO: All right, Joe Johns reporting live for us from Washington.

A former lawmaker, he is raising eyebrows with his comments about Edward Snowden, the NSA leaker. Former Congressman Ron Paul says he fears Snowden could be assassinated by his own government.

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FORMER REPRESENTATIVE RON PAUL (R), TEXAS: I am worried about somebody in our government might kill him with a cruise missile or drone missile. I mean, we live in a bad time where American citizens don't even have rights and that they can be killed.

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COSTELLO: She's probably one of the people closest to NSA leaker, Snowden, but whether she knew about his plans remains a mystery, I'm talking about Lindsey Mills. She is Snowden's long time girlfriend. Miguel Marquez traveled to Hawaii where the couple lived and where family and friends are trying to make sense of this story.

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MIGUEL MARQUEZ, CNN CORRESPONDENT (voice-over): The man at the center of the controversy left everything behind for his beliefs.

SNOWDEN: You have to make a determination about what it is that's important to you and if living unfreely, but comfortably is something you're willing to accept.

MARQUEZ: Snowden says he cut his ties cleanly with everyone he knew or was close to including his girlfriend, Lindsey Mills, who lived with him here in Hawaii. Mills' father says his daughter dated Snowden for some five years, but met him only a few times.

JONATHAN MILLS, LINDSEY MILLS' FATHER: He's always had strong convictions of right and wrong and it kind of makes sense but still shocking.

MARQUEZ: Snowden prepared for that shock telling "The Guardian" my primary fear is they will come after my family, my friends, my partner. Anyone I have a relationship with. Snowden told "The Guardian" law enforcement had already been in touch with Mills.

In her blog adventures of a world traveling pole dancing superhero just days ago June 10th, Mills wrote, "My world had opened and closed all at once, leaving me lost at sea without a compass." She and Snowden moved out of this rented home just outside of Honolulu on May 6th. He told "The Guardian" he left for Hong Kong May 20th telling Mills he'd be back in a few weeks but leaving the reason vague. What's curious she also packed everything up and left for the mainland.

(on camera): As the story unfolds and people in the neighborhood here are more cautious about going on camera. One thing several neighbors have told us that they found peculiar about this situation is that when they looked at this garage, they saw boxes all the way to the top of the windows here. The question is where have those boxes gone and the contents of the house?

(voice-over): Mills' father told CNN his daughter is now on the west coast visiting friends, just when she left Hawaii still a question. So is whether she had any clue about her boyfriend's plans. On her blog, she says Snowden's family was in town on May 17th just three days before he left his life behind. Her next post on June 3rd, she wrote, "The past few weeks have been a cluster jumble of fun, disaster and adventure." Six days later her boyfriend revealed he was the source of the leaked security documents triggering as many questions as answers.

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COSTELLO: Miguel Marquez joins me now from Honolulu. So your story raises so many questions. I know what her father said, but I mean, is he telling us the truth? Do we know?

MARQUEZ: We don't know. The last that the parents told CNN was she was on the west coast visiting friends. It is not clear where she is today. There is no real indication that she knew exactly what Mr. Snowden was up to, her boyfriend was up to. But the fact that she packed everything up, the fact she left for the mainland just as he was leaving for Hong Kong, he had told her previously he would be gone a few weeks on assignment, presumably would be coming back here, but she clearly moved out as well. Clearly the escape from here in Hawaii was smooth and seamless, and well thought out -- Carol.

COSTELLO: Yes, because no reporters located her so far, at least, as far as we know, right?

MARQUEZ: No one has located her, but look, she has a very good reason to keep a low profile at the moment, no matter where she is. I can tell you that we have tried to talk to several people who do know her and Mr. Snowden here in Hawaii, but even the neighbors now are getting a little nervous. This is a very big story. People are very quiet and personal here and they don't really want all of the attention on them. They realize the more they speak out, the more people may cast dispersions or negativity on them, and people just really don't want that now -- Carol.

COSTELLO: Miguel Marquez reporting live from Hawaii this morning.

We're not labeling the NSA "big brother," but many Americans are unusually interested in that label. Sales of the novel "1984" are soaring. You know "1984," a book featuring a futuristic totalitarian state. Here it is as seen as a film adaptation.

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UNIDENTIFIED MALE: Who are we?

UNIDENTIFIED MALE: There are criminals that maintain resistance.

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COSTELLO: That was the scariest movie I ever saw. I felt like jumping off a bridge after watching it frankly, but it depicts world monitors through TV screens. The book is now number three on Amazon movers and shakers list and it is now the 100th best-selling book, a jump from nearly 12 thousandth spot. Wow.

All right, strong winds and hot temperatures will not help firefighters at all today in Colorado. They're battling at least five wildfires. The biggest is south of Denver where 5,000 homes are under mandatory evacuation order, across the state, at least 12,000 acres and dozens of structures burned. Another fire is threatening the royal gorgeous suspension bridge. "The Denver Post" reporting that not far away, 800 inmates have been evacuated from a state prison. Dan Simon has more for you from Colorado.

DAN SIMON, CNN CORRESPONDENT: This is a very destructive fire that's already taken out or damaged dozens of homes and with record temperatures and strong winds, this fire apparently shows no signs of letting up.

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SIMON (voice-over): Raging wildfires across Colorado are forcing thousands to get out of harm's way.

UNIDENTIFIED MALE: Get out, go! Get in your cars!

SIMON: The Black Forest fire south of Denver multiplying in size in just hours and engulfing thousands of acres in its path. The thick, bellowing smoke visible for miles, massive flames consuming dozens of buildings in this heavily wooded area.

TERRY MAKETA, EL PASO COUNTY SHERIFF: We are still at zero containment. The fire is still pretty well scattered. It's not just one wall of fire.

SIMON: Firefighters say strong winds and record high temperatures are fueling the fast-moving fires.

MAKETA: With nightfall, cooler air, hopefully the winds have died down since earlier today.

SIMON: The Black Forest fires one of at least five fires ablaze across Colorado, some 150 firefighters and the National Guard aiding in the battle.

MAKETA: We have other firefighters around the state that also draining resources, but right now, I could not be more pleased with the support we've received.

SIMON: This area is no stranger to devastating fires. Last summer the Waldo Canyon fire killed two and destroyed 346 homes.

UNIDENTIFIED MALE: I'm not experienced with wildfires. I tell you what? I won't underestimate it again.

SIMON: And Colorado was not alone. In Northern California, a firefighter was killed while fighting a wildfire caused by lightning. Lightning also the cause of another growing wildfire near Kingston, New Mexico and early a devastating fire season not showing any signs of slowing down.

(END VIDEOTAPE) SIMON: This fire is not contained at all, zero percent. The big challenge today is getting enough resources in place to really make a difference with five fires raging throughout the state. They really need to get some more folks in here. Dan Simon, CNN, Colorado Springs, Colorado.

COSTELLO: Up next in the NEWSROOM, you can leave your insurance card in your wallet. More and more doctors are taking cash only. They say it is better for their practices, but is it better for you?

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COSTELLO: At 17 minutes past the hour, checking our top stories. A proposed law in New Jersey has privacy advocates outraged. A New Jersey lawmaker wants police officers to be able to search through a driver's cell phone after a car accident. Officers would then be able to see if the driver was talking or texting at the time of the incident. The ACLU says this kind of search requires a warrant.

Walgreen's will pay a record $80 million fine to settle claims that knowingly allowed painkillers like Oxycodone to hit the black market. The DEA said the company failed to report unusually large pill orders from Florida pharmacies and that it knew the drugs were not being used legitimately.

Chrysler has just six days now to formally respond to a recall request from the government. We're talking about Jeep Grand Cherokees and Liberty. That the National Highway Traffic Safety Administration says it carries a fire risk if it has a rear end crash. If Chrysler still says no to that recall. NHTSA will hold a public hearing.

More and more primary care doctors are cutting ties with insurance companies. They are switching to a cash only system. They say it benefits not only them but their patients, too, really, because it means a lot less hassle.

Alison Kosik is at the New York Stock Exchange. I am struggling to understand how this helps patients.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Yes. You know what's interesting, Carol. You look at this trend, there aren't a lot of doctors doing this right now, but those who do, they say you know what. It really works for them. Because by opting out of the insurance completely and taking cash or credit cards direct from patients instead, doctors say they can spend more time with each patient and give higher quality care.

All right, the way some offices are doing this is by these membership plans where a patient pays a flat monthly fee to have unlimited access to the doctors, and any service that can be provided in the office, and fees are different, depending on ages. One office in Kansas, they charge $10 a month for kids, 50 for adults and 100 for senior citizens.

For any procedures that need to be done outside the office, the doctor negotiates a deal with lab companies, with MRI providers and so on. This has been nicknamed concierge medicine -- Carol.

COSTELLO: OK, so what if you need a really, really expensive procedure like surgery?

KOSIK: Yes, and also, you know, having everybody afford this type of care, it is an obvious question and obvious concern. Critics say paying these monthly or a la carte fees is great for doctors or if you're wealthy, but what about middle and low income people. Can an older person without a lot of money really afford a $100 a month membership fee to a doctor? And what if they need an emergency operation or another expensive procedure?

Also one health policy expert says that by negotiating with just certain outside service providers it can wind up creating this kind of barrier for care. To give you an example, the relationship of primary care doctor creates with a specific allergist, it may not be the best one for you to go to with your particular problem. So obviously it is not an exact science, not every doctor is catching onto this, but it is becoming a bit of a trend -- Carol.

COSTELLO: Interesting. Alison Kosik reporting live from the New York Stock Exchange. Thank you.

Still ahead in the NEWSROOM, his head down, charges numbering in the hundreds. The Cleveland man accused of kidnapping three women and holding them hostage for years enters a plea.

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COSTELLO: An hour and a half ago in Cleveland, an arraignment for Ariel Castro, a man called a monster even by his own family. He entered plea to more than 300 charges, including kidnapping, rape, and aggravated murder. Castro is accused of holding three women against their will for about a decade.

Pamela Brown was in Cleveland in that courtroom for the proceedings and she joins us live now. Good morning, Pamela.

PAMELA BROWN, CNN CORRESPONDENT: Well, good morning to you, Carol. This is the second time Ariel Castro has appeared before a judge in person since he was arrested back in May. Today, he entered a plea. He entered a not guilty plea for the 329 charges he faces. It all happened in a flash.

Castro walked into the courtroom, wearing an orange jumpsuit, was shackled and handcuffed with his head down. During the entire minute long arraignment, he looked despondent, emotionless. He didn't look at his attorneys at all or even the judge. It was very similar to the way he looked during the first time he appeared in court several weeks ago.

After the arraignment, his attorney came out and spoke to media and actually admitted for the first time that some of the 329 charges Castro faces are indisputable. At one point, it seemed he was making a plea to the prosecutor to drop the aggravated murder charge he faces which would come with the death penalty. He hinted that whether or not there's a trial would hang on the fact of if that charge is dropped. Let's listen to what he had to say.

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CRAIG WEINTRAUB, CASTRO'S DEFENSE ATTORNEY: We are very sensitive to the emotional strain and impact that a trial would have on women, their families, and this community. Mr. Castro currently faces hundreds of years in prison with the current charges, and it is our hope that we can continue to work toward a resolution to avoid having an unnecessary trial about aggravated murder and the death penalty.

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BROWN: Important to note, his attorney said today they did look at evidence in this case for the first time. He said that so far negotiations the prosecutor's office haven't begun yet, but reiterated he hopes a resolution will be reached so that this doesn't go to trial and that the women don't have to testify. As he said there, he acknowledged today that it would be very traumatic for them to have to do that -- Carol.

COSTELLO: That is true, but the prosecutor seems very willing to go to trial. In fact, he made a controversial move to charge Ariel Castro with aggravated murder. In your mind as it stands now, is the prosecutor willing to talk about a plea agreement?

BROWN: This could all be strategy. I mean, you look at the astounding number of charges here, Carol, 329 charges including aggravated murder, which could bring the death penalty. Of course, the question is still out there, did the prosecutor bring such aggressive charges so a deal will be negotiated, so this won't have to go to trial. Talking to legal experts, it seems unlikely the prosecutor will be able to seek death penalty for that aggravated murder charge.

The burden is for the prosecutor to bring forth evidence that Michele Knight was pregnant in that time frame and that Ariel Castro caused termination of her pregnancy. Also when you look at legal precedent, there's only legal precedent for the killing of the mother and fetus. I think the Scott Peterson case, death penalty was sought for there, but no legal precedent for seeking death penalty for murder of a fetus. It seems like it would be very difficult for the prosecution to continue to pursue that.

COSTELLO: Pamela Brown reporting live for us from Cleveland, thank you.

Preying on victims of tragedy, looters are heading to Moore, Oklahoma and stealing whatever they can. We'll talk about that next in the NEWSROOM.

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