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Ruling in Manning Case Expected; Real Drama for "Real Housewives" Star; Your Car could be Hacked; Interview with Michael Noer; A-Rod Lawyer: "We are Focused on an Appeal"

Aired July 30, 2013 - 09:30   ET

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


ALISON KOSIK, CNN BUSINESS CORRESPONDENT: That was the opening bell, looks like the Dow is up 19 points to start.

CAROL COSTELLO, CNN ANCHOR: Good start, thanks so much.

Other stories we're following this morning at 30 minutes past the hour, authorities are trying to figure out what caused fire and huge explosion at a propane gas refilling plant in central Florida. Eight workers had to be rushed to the hospital. When you see these images, seems pretty incredible those workers survived.

There may be a big break in the rash of vandalism incidents hitting D.C. monuments. A 58-year-old woman now charged with defacing the National Cathedral with splashes of green paint. She was carrying a can of paint when she was arrested. Splotches of paint have also been found at the Lincoln Memorial and on a statue at the Smithsonian Castle.

Is Private First Class Bradley Manning a whistle blower or traitor to his country? We should know in just about three and a half hours when a judge reveals the verdict in Manning's court-martial. Manning is accused of the largest leak of classified information in U.S. history, handing over 750,000 pages of classified documents and videos to Wikileaks, including this video, a U.S. helicopter gun ship attack in Iraq 2007.

Two Reuters photo journalists were killed in the attack. A U.S. investigation later determined the crew of the gunship believed they were firing on insurgents, mistaking the journalists' cameras for weapons. Now, Manning leak didn't cause this to happen, but it exposed it to the public. Attorney Alan Dershowitz is an adviser to the British legal team of Wikileaks founder Julian Assange. Wikileaks has never confirmed Manning was its source, but it's widely believed it was.

Good morning, Mr. Dershowitz, thank you for joining us.

ALAN DERSHOWITZ, HARVARD LAW SCHOOL: Good morning.

COSTELLO: Any predictions on what will happen in court later today?

DERSHOWITZ: It's impossible to predict because the statutory framework is so general and vague, what Manning is convicted of, "The New York Times" -- "New Yorker Magazine" could be convicted of. There are no standards. Most of the material that the private produced should never have been classified, for example, that helicopter film. The public should have a right to see that and judge for itself whether or not the United States made an honest mistake, which I believe it did, or whether there was something more nefarious at work.

So, this is all up to the judge. He has to make a decision as to what was inside of the private's head, whether or not he intended to help the enemy or whether he intend to help the United States and the public by being a whistle blower. I hope he makes a rational, calculated decision and doesn't just throw the book at him in order to discourage other people like Snowden, because the Snowden case hovers above this case.

COSTELLO: Well, Bradley Manning in court said he was just trying to create a public conversation about war and what he saw in those documents upset him. On the other hand, he dumped these -- these thousands and thousands of pages of documents willy nilly, not really knowing what exactly he was giving to Wikileaks.

DERSHOWITZ: Well, he knew he was giving them to a responsible person who was not going to publish material that was very harmful to the United States like the names of spies or safe houses. Wikileaks, in fact, then turned them over to "The New York Times" and to "The Guardian" and other publications and the end result was hard to find any real harm done to the United States.

Now, obviously, we have to draw lines and Manning has already pleaded guilty to some of the offenses, but he honestly believes he did not intend to hurt the United States or help the United States' enemies, and I think doubts have to be resolved in his favor. He is both a whistle blower and clearly has committed offenses under the United States code.

The problem is, our statutes are so vague. We over-classify so much and then we don't protect our real secrets. A man like Manning should never have been given access to our deepest darkest secrets that really need protection, and because we give people like him access to so much and because we over-classify so much, we actually invite this kind of disclosure.

We're going to see more and more of it unless we straighten out the law. Protect just a limited number of categories of things that really have to be protected, require a high level of intention, distinguish between those who take the material and those who publish it. These are all things we have to do and Private Manning, who's a young kid, naive, I think well-intentioned, should not bear the brunt of all of this and get the kind of life sentence that some are calling for.

COSTELLO: We'll see what the judge decides in about three hours. Alan Dershowitz, thanks for joining us this morning.

Just ahead in the NEWSROOM, a "Real Housewives" star and her husband in federal court right now. We'll break down the charges they are facing.

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COSTELLO: Well, let's talk reality TV, as in reality TV. "Real Housewives" stars in real trouble. Two of the Bravo's "The Real Housewives of New Jersey," Teresa and Joe Giudice showed up in court this morning where they will have to now answer to 39 counts of fraud charges against them. Entertainment correspondent Nischelle Turner live outside of the courthouse in Newark. So, tell us where the fraud charges stem from.

NISCHELLE TURNER, CNN ENTERTAINMENT CORRESPONDENT: Well, Carol, you know, definitely a media circus out here in front of federal court this morning. We're talking about bankruptcy fraud allegations, mail and wire fraud, bank and loan application fraud allegations, all of it laid out in this indictment here, all 39 of those counts. And yes, for these reality stars, things are getting pretty real.

(BEGIN VIDEOTAPE)

TURNER: It's a real-life legal saga for two stars of Bravo's "The Real Housewives of New Jersey," a reality series famous for bringing the drama.

A U.S. district court has indicted table-flipping housewife Teresa Giudice and her husband, Joe, on 39 counts of fraud and tax charges. The Giudices are accused of exaggerating their income while applying for loans before "Housewives" debuted in 2009, then hiding their fortunes in a bankruptcy filing after the first season aired.

The federal indictment alleges the Giudices lied to the bankruptcy court, to the IRS, and to a number of banks. The pair faces stiff penalties on the most serious charges, up to 30 years in prison and a million dollar fine if convicted.

Joe Giudice was also charged with failure to file tax returns between 2004 and 2008, a time where he earned nearly $1 million, adding to an already checkered legal past.

MAGGIE FURLONG, WEST COAST EDITOR, HUFFPOST TV: We've been hearing rumblings in the news for years now and it's all come to a head with the latest charges.

TURNER: Joe's lawyer did not immediately respond for request to comment. However, Teresa's attorney told CNN she will plead not guilty, releasing a statement saying she supports her husband and adding, quote, "I am committed to my family and intend to maintain our lives in the best way possible, which includes continuing my career. As a result, I am hopeful we will resolve this matter with the government as quickly as possible."

With "The Real Housewives of New Jersey" in its fifth season on Bravo, Teresa's future with the show is potentially in jeopardy.

FURLONG: You can't really shoot the level of glamour and weave pulling behind bars.

(END VIDEOTAPE) TURNER: Now we should say that we reached out to Bravo, which is the network that airs "The Real Housewives of New Jersey," they did not have a comment on this matter. Teresa and Joe Giudice will be in court at 10:00 this morning. Keep in mind, this is not an arraignment, it's an initial court appearance, so they don't have to enter a plea here. They very well may not today, but also keep in mind that Joe has another case pending here in New Jersey to where he has to answer to allegations that he fraudulently got a driver's license, basically posing as his brother to get a driver's license.

Back in April he turned down a plea, exactly, that he turned down a plea in that case that would have sent him to prison for four years, so that's still hanging over his head, as well.

COSTELLO: Very, very strange. All right, Nichelle, I know you have to pop into the courtroom to get ready to hear whatever happens today inside, so we'll let you go. Nischelle Turner, thanks so much.

Coming up on the NEWSROOM, forget computers, cell phones, and bank accounts, the cars we drive are vulnerable to hackers -- the steering, the odometer, the gas gauge, and that's not all. I'll explain next.

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COSTELLO: If your bank account or Facebook page weren't enough to worry about, it turns out your car can be hacked, too. According to a new report by "Forbes," it is possible for someone to actually take control of your car while you're driving it.

"Forbes" reporter Andy Greenburg put it to the test. He was in the driver's seat with two security experts in the back seat taking control of the car. Take a look.

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UNIDENTIFIED MALE: It's quite terrifying when you don't have brakes, right?

ANDY GREENBURG, "FORBES" REPORTER: My instinct is just to, like, jump out the window. It's really scary.

(END VIDEO CLIP)

COSTELLO: Ok, I wouldn't be laughing about that. Michael Noer is the executive editor of "Forbes." Good morning.

MICHAEL NOER, EXECUTIVE EDITOR, "FORBES": Good morning.

COSTELLO: So, can that happen remotely or do the hackers have to be in your back seat?

NOER: Well actually, probably can happen remotely. Those two guys actually were in the back seat. They hacked directly into the car, but there's been proven wireless vulnerabilities to cars, usually through something like the Onstar Systems or Bluetooth connection or even an audio file that can be put in the CD player can let hackers take control of your car remotely.

COSTELLO: Have you ever heard of this actually happening?

NOER: So far we don't know of any instances of this actually happening in the wilds, as they say in the security world. This is only something that has happened in the lab, but it's something to be very concerned about.

talked to one of the people in the field and they said the level of security in a car is sort of like what computers were like in the early '90s when they first got hooked up to the Internet.

COSTELLO: So -- so what are the car manufacturers saying about this? This is freaky.

NOER: Well we talked to Toyota and Ford. Neither actually really did much in the way of talking to us. Ford issued a statement saying they take this, quote, unquote, "very seriously" but didn't tell us exactly what they were doing. And Toyota pointed out that these guys had physical access to the car and that you know that they weren't worried about it for that reason, but for three years now there has been proof you can get into these cars wirelessly.

COSTELLO: Is there any way I can protect myself from something like this possibly happening.

NOER: Well not -- not at the moment. I mean and what's really scary is that it's getting -- it's going to get worse, because cars are becoming more and more computer like as we get closer to the idea of sort of a driverless car like the Google driverless car.

COSTELLO: Ok. That's scary, Michael, but thanks for bringing it to our attention. Michael Noer "Forbes" executive editor, thanks for being with us this morning.

NOER: Thank you.

COSTELLO: We're back in a minute.

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COSTELLO: Checking our "Top Stories" at 50 minutes past.

Two potential rivals for the Democratic presidential nomination are breaking bread this morning. Hillary Clinton is meeting with Joe Biden for breakfast at the Vice President's official residence -- that would be the Naval Observatory in Washington. This just one day after Mrs. Clinton met with President Obama at the White House for a private lunch.

Hawaii got quite the soaking from Flossie. The storm has been lashing the tropical paradise with gusty winds and heavy rains. 10,000 people have lost power, but Flossie thankfully is now weakening. It's now a tropical depression.

An influential government health panel wants heavy smokers screened. It's recommending people who have smoked at least a pack of cigarettes a day for 30 years getting annual CT scans to check for lung cancer. Experts say that could save 20,000 lives per year.

Take a look at these guys, they look pretty tiny here but don't be fooled. Zoo Atlanta officials say twin newborn giant panda cubs are gaining weight rapidly. One of the cubs has actually tripled his weight in two weeks to 361 grams. These brothers they were born on July 15th. They're the first giant panda twins born in the United States in 25 years.

All new with the next hour of NEWSROOM -- Diane Lane as Hillary Clinton? A blockbuster new miniseries in production, the former First Lady and her husband and an intern named Monica. Also --

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PEOPLE: People united --

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COSTELLO: Furious fast food workers walking off the jobs -- from coast-to-coast and towns across the country the minimum wage in the cross hairs. What it is and how it's not enough to survive on.

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COSTELLO: Major League Baseball could hand down a major suspension to Alex Rodriguez as early as today, but don't expect A-Rod to go down without a fight. Andy Scholes is here with the "Bleacher Report." Good morning.

ANDY SCHOLES, BLEACHER REPORT: Yes good morning Carol.

On a New York radio show, yesterday A-Rod's lawyer said not only do they plan on fighting any suspension or a lifetime ban, their goals for A-Rod is not to face any punishment at all. In the new twist in the A-Rod versus Major League Baseball battle is that Bud Selig is looking to suspend A-Rod for the use of performance-enhancing drugs and for violating the collective bargaining agreement. That's according to multiple reports.

A suspension for violating the CBA would allow Selig to suspend A-Rod immediately in what is known as the best interest of baseball privilege. A-Rod still owed a little less than $100 million for the next five years. And for every 50 games he's suspended the Yankees save a whopping $7.5 million.

Well the Milwaukee Brewers are hoping that the way to cure a fan's broken heart is through their stomach. The team will be giving away $10 vouchers in an effort to give back to the fans for the team's poor performance and Ryan Braun's suspension. The vouchers will be given away to any fan attending Brewers' home game in August and they can be used for food, drinks, merchandise and tickets.

A Red Sox nation has a legitimate gripe with the umpire after a big blown call on last night's eighth inning against the Rays. Check it out. Boston's Daniel Nava is going to be coming in from third on this play. He slides in, it looks he's saved but the umpire in terrible position. He calls him out. That run would have been the tying run for the Red Sox. Instead it's the final out. The Rays they go on to win the game and take the lead in the American League East.

Well, fresh off their Stanley Cup win, the Chicago Black Hawks are giving their fans a chance to own a piece of history. And that piece of history is ice or better yet melted ice. The Black Hawks are selling a limited number of souvenir packages that include actual melted ice from the United Center.

COSTELLO: Oh come on.

SCHOLES: You see that little vial Carol that's what it's going to comes in. Now the proceeds will go to local charities. Fans they can follow the team on Twitter for more information. And you know NBA teams when they won championships they've auctioned off pieces of the floor, Carol, that's a little easier to display than a vial of melted ice, which I guess is water, right?

COSTELLO: That's just a tremendous foresight, though, right? Somebody had to think of that.

SCHOLES: Not a bad idea I kind of like it.

COSTELLO: Thank you Andy.

SCHOLES: All right.

COSTELLO: The next hour of CNN NEWSROOM after a break.

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COSTELLO: Happening now in the NEWSROOM good news for home owners, home prices keep soaring, buy? Sell? What? We'll take a look.

One resident said it sounded like bombs going off. Several explosions rock a central Florida town as a propane plant goes up in flames.