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Wildfire Burns 100,000 Plus Acres In Idaho; U.S. Companies Want To Keep Aid Flowing To Egypt; The End For San Diego Mayor?; Alex Rodriguez On The Offense; Kidnapper Leaves Money for Victim's Family; Ferrari Spyder Sets Auction Record; Google Street View Covers 3,000 Cities

Aired August 19, 2013 - 19:00   ET


ERIN BURNETT, CNN ANCHOR: "OUTFRONT" next, Idaho burning. A wildfire out of control, threatening to destroy thousands of homes. We're going to go to the scene for the latest tonight.

Plus, there's been a huge jump in wild animal attacks this summer. Why?

And a new and disturbing development tonight in the Hannah Anderson investigation. Her kidnapper left all of his money to one person. We have that for you.

Let's go "OUTFRONT."

And good evening, everyone. I'm Erin Burnett.

"OUTFRONT" tonight, a developing story. Idaho burning. A dangerous wildfire out of control and threatening to destroy thousands of homes including multimillion-dollar homes of celebrities like Arnold Schwarzenegger, Tom Hanks, and Richard Dreyfuss.

You can see these pictures when you often see fires, you know, you see a lot of smoke. Here you just see a lot of fire. It's the Beaver Creek fire, which is located just north of Haley, Idaho about six miles south of Ketchum. It's already burned more than 100,000 acres and just a few miles away from the resort town of Sun Valley.

Our Ted Rowlands is OUTFRONT in Haley tonight. Ted, when I look at those maps. It's right there think along the highway along side where you are. What are you seeing?

TED ROWLANDS, CNN CORRESPONDENT: Well, Erin, it has been growing so quickly and it is huge. You mentioned at 100,000 acres or 1,000 firefighters plus here, about 10 percent containment right now. We're expecting new numbers in the next few hours and the hope is that they had a good day today and have more containment. But there are 5,000 homes that are potentially in danger here. And you mentioned a lot of them are very high dollar homes. In fact private insurance companies -- or insurance companies have hired private firefighters to come in here and protect specific people's homes because they are so expensive.

BURNETT: I'm curious about that. How is that playing out with the firefighters and all the teams in place fighting this? Is this something that they welcome or does this cause a problem for them when they're fighting the fire and also a sense of unfairness?

ROWLANDS: Yes. You might think it's chaotic, but they say they work together quite well. According to the command center here, they do keep in contact with radios because they are running the show here and if there is trouble, they will order those people out. And they say most of these guys that work for the insurance companies are former firefighters and they're just doing this on the side or current firefighters. And they make it work. One person said we could use the help. No way we could protect 5,000 homes. So having them out here does help.

BURNETT: All right, and what about the containment because some of the numbers and when you see the map and you see how huge the fire is, when you're talking about sort of, you know, close to unprecedented scale, but also the containment numbers that we've seen so far have been incredibly small.

ROWLANDS: Yes. And they had a lot of trouble this weekend. It just basically exploded Friday and Saturday. Today was a good day because there was cloud cover, it was a little cooler. And we're less than 10 percent containment right now, but as I said, we're expecting fresh numbers in the next few hours. And the hope is that today was a good day for firefighters looking forward, they're expecting rain and they're hoping to really capitalize on that Tuesday and Wednesday.

BURNETT: All right, Ted Rowlands, thank you very much. An interesting phenomenon, Ted's reporting on there with that breaking news about how private insurance companies and wealthy people hiring their own firefighters. Something we've seen in a few fires now out west this summer.

Now our second story OUTFRONT, big American companies making big dollars off of American aid money to Egypt. As you know, nearly 1,000 people have died in the violent uprising in Egypt over the past week. And now more than half of Americans say the United States should protest by cutting off the $1.3 billion in military aid that America forks over to Egypt each and every single year.

But the Obama administration said today it hasn't made its final decision on aid and its review the situation is still, quote, "ongoing." One incredibly powerful group wants to keep the money flowing to Egypt. Everything is resting on that for them. Chris Lawrence has this OUTFRONT investigation.


CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT (voice-over): The Obama administration could say enough's enough, and cut aid to Egypt. But some American companies want to keep that money flowing because they are the ones cashing in.

JOEL JOHNSON, THE TEAL GROUP: You're buying U.S. equipment from U.S. contractors. LAWRENCE: The U.S. doesn't cut a check to Egypt. It deposits the aid in an account at the Federal Reserve Bank. That money pays American defense contractors to build the weapons and parts for Egypt. That includes $400 million to general dynamics for tank kits and $2.5 billion to Lockheed for F-16s. Big companies got these contracts in part by sending legions of lobbyists to Capitol Hill. They reminded lawmakers that if they can't build weapons for Egypt, all those small town suppliers from Lima, Ohio to Oxford, Michigan will get buried.

JOHNSON: Joe with company x has made this particular piece of a tank for 20 years and that's what he does. He's very good at it. But if I don't give them an order for six months, I'm not sure what's going to happen to old Joe and his workforce.

LAWRENCE: Former Congressman Jim Kolbe used to control the purse strings on Egypt. He heard that pitch year after year and it worked.

JIM KOLBE, FORMER CONGRESSMAN: The contractors have a vested interest in keeping the process going forward.

LAWRENCE: Kolbe says the U.S. has put itself in a bind, cutting the aid both get the government on a pain off the defense contracts it already signed.

KOLBE: It's going to end up costing the taxpayers a lot of money and getting nothing in return.


BURNETT: So Chris, that's pretty amazing. So the aid gets cut off. It's not that simple. Taxpayers lose money, but I mean, the numbers you have there were incredible. Lockheed Martin, $2.5 billion they have resting on aid continuing to Egypt. What do the companies say to the criticisms that, look, you don't care about U.S. policy or right or wrong, you care about dollars and cents?

LAWRENCE: Well, good question. We reached out to Boeing and Lockheed Martin and they basically said, look, we are honoring our contracts in good faith, which they are. These were agreements that the U.S. government signed to build these parts to send to Egypt. They also say they don't want to comment on what the U.S. government may or may not do.

But Erin, bottom line, look, even though only about half of this year's $1.2 billion has been already put into that Egypt account, withholding the other $600 million doesn't really save that money. And in fact it may end up costing some jobs.

BURNETT: All right, thank you very much, Chris Lawrence, a fascinating report, one that really worth thinking about.

Well, this is just into CNN, literally just this moment. We have new pictures of Prince George. Brand you new images of Will and Kate with their baby boy who is not quite a month old. These were just released by Kensington Palace and are the first official photos we have seen of the new prince. They were taken by Kate's father at the Middleton family home in Buckleberry Berkshire and in case you are wondering, that is the couple's cocker-spaniel, his name is Lupo apparently. This comes on the same day we're hearing Prince William's first interview since his son was born. He sat down with CNN's Max Foster, talked about fatherhood and being a new parent.


PRINCE WILLIAM: I think I was on such a high anyway, so was Katherine, about George that we were happy to show him off to anyone and proclaim that he's the best looking or the best everything.


BURNETT: When he talked about the moment everyone staring at them, something about that rang so genuine and nice. Don't miss the special "Prince William's Passion," it is in September, our Max Foster with the first interview with the prince.

Still to come, speaking of the royal family, shocking new claims about Princess Diana's death, we'll ask Diana's personal chef why some people say it was murder.

Plus the latest from the Bob Filner investigation, where is San Diego's mayor?

And then a huge jump in animal attacks this summer. Jeff Corwin is OUTFRONT to explain why.

And Carolyn Kennedy forced to disclose her financial information because she wants to be ambassador to Japan. We'll tell you how much the Kennedy heir is sitting on.


BURNETT: Our third story, OUTFRONT, a developing story tonight, a major closed door meeting happening right now in San Diego that could decide the fate of Mayor Filner. Now Filner, we've been talking a lot about him, but he actually has not been seen in public for more than three weeks. This has not stopped the allegations of sexual harassment from piling up and more and more women coming forward to speak out against the embattled mayor.

Our own Kyung Lah has been following this story from the beginning. As you know, she is OUTFRONT tonight, actually here in New York, which is really wonderful for us. But could this be the end of the mayor? Is this what is happening at this meeting or what?

KYUNG LAH, CNN CORRESPONDENT: Possibly. You talk to sources inside, they say maybe with a big capital M. Because mediation does take time, but this could be the very beginning of that so what are we talking about here? We know that this meeting is happening right now. This is a mediation. We know its members of the city council, city attorney as well as the mayor's office and, Erin, this is a major meeting. This is the first time everyone has been together in one room to talk about Filner.

BURNETT: And of course he has so far utterly resisted any calls for resignation. He would seem to have a serious problem. But he hasn't been seen in three weeks. How is he still the mayor?

LAH: Yes. You know, a lot of people are wondering that. How is it possible? Under San Diego City Charter, he is known as a strong mayor. It's very difficult to remove the mayor of San Diego. The city attorney in fact said it is easier to get rid of the president of the United States versus the mayor of San Diego. Because of the way the city charter is written.

And we should point out the mayor actually has some supporters. There are a few. We saw them come out in public today. Check this out. This is a rally in support of Mayor Filner. It was a very small rally, but still a rally in support of him and listen to what one of them said.


MAXINE SHERARD, SUPPORTER OF MAYOR BOB FILNER: I have not been the recipient of sloppy kisses and I have met Mr. Filner on many occasions. There are others who are, but I've never had that opportunity. But I do know that Bob is fussy, he's careful, but he's also fair.


LAH: I don't really know what to say to that, but that is someone who supports him. There are always two sides to the story and that's what we've consistently heard from Filner's side.

BURNETT: All right, well, thank you very much, Kyung Lah. Obviously sort of a countdown for what kind of a major decision will happen there. One the whole country is watching.

Now our fourth story OUTFRONT, animal attacks. They are on the rise. A 14-year-old boy is recovering after a shark attack in Hawaii just days after a German tourist lost an arm to a great white in Hawaii. It's the ninth shark attack in Hawaii this year.

And on dry land, seven people in five states have involved by bears in less than a week. So what's behind the rise in attacks? Jeff Corwin is a wildlife expert, author of the new Shark e-book and a host of Ocean Mysteries. He is OUTFRONT tonight.

You know, Jeff, we were looking at this and sometimes you see these things and it feels like things are on the rise, but they're not really on the rise. But at least according to the map and studies we've seen, these attacks are more of them this year.

JEFF CORWIN, WILDLIFE BIOLOGIST: We're seeing an interesting trend, but I think what we have to remember is that we're kind of looking at this the very small limited window. The truth is that attacks aren't that much higher and these are animals that frequent these waters specifically the sharks off Hawaii. And when human beings, which are the number one terrestrial predator are sharing habitat with the number one water predator, there is always an opportunity that something can go wrong.

BURNETT: So I guess, you're saying it's a chance. Last year, they were 11 in the whole year. This year 9 so far, but I guess it could be there is more proximity or something like that. What about, though, the survival? I mean, that is what sort of amazes people about both the sharks and bear attacks we've seen. Twelve-year-old girl in Michigan, as you know, Jeff, was attacked by a bear last week. She was on "Good Morning America." And she actually talked about how she made the decisions of what she did when the bear was attacking her. I want to play it for you.


ABBY WETHERELL, BEAR ATTACK SURVIVOR: All of a sudden the bear got me, put me down on the ground and started scraping me and clawing at me. So I was, like, petting it. I don't know where that came from. But I just thought maybe if I petted it, it would like me. Well, that did not work. So then it got me again. And then I heard that you should play dead. So that's what I did.


BURNETT: I mean, she was smart. I can't imagine thinking all that as that moment was happening. But what do you think about what she did, is that the right thing to do?

CORWIN: Well, it certainly worked. And I can't imagine that terrifying situation -- here you are minding your own business, going for a jog, playing about. And all of a sudden, you're confronted by one of the greatest land-going predators in our country.

And I think she did do the right thing. You know, what you don't want to do whenever you're being pursued by a predator whether in the land or the water is to try to run away because you just can't. So you want to carefully pull yourself back if possible. But if that predator is still pursuing you such as a bear, then you want to potentially go into play dead mode or perhaps if your life is on the line, you need to defend yourself -- and it seems like she did it all of these things.

You know, Erin, it's very important that we remember that human beings aren't the natural food source or prey for either sharks or bears. But unfortunately, as human beings invade wild habitat, opportunities for conflict like this tend to increase.

BURNETT: Yes. It's just amazing. And before you go, let me just ask you about sharks. People like me don't go in the water because every time I see a shadow from the sun underneath the water, I think it's a shark. Which is a silly thing. I mean, I know statistically of course the chances are incredibly miniscule that one would be attacked by a shark. But --

CORWIN: I don't know, Erin. Is it silly?

BURNETT: Maybe that's why -- see, you just underlined --

CORWIN: I'm going to tell you something that may keep you out of the water for a very long time. Remember, when you're in the water, whether you're along the coast of Maui in Hawaii or in a beach off -

BURNETT: The Jersey shore.

CORWIN: -- of New England or New York. Jersey shore. You're usually never more than 100 yards away from a shark. So, that's kind of startling and sobering.

But look at that. We are around these animals all the time, and rarely do they pursue us as something to eat. Most of the time when a human being is bitten by a shark, it's the result of mistaken identity. And a lot of times when a shark is biting, it's a test bite. That's kind of, you know, interesting to hear especially in light that if you're being bit by something 14 feet long, that test bite can be rather dangerous. But human beings aren't the normal source of food for either of these animals. But as we take up their habitat, conflict like this can increase.

BURNETT: I'm not going in the water. Thank you very much, Jeff!


CORWIN: You're very welcome.

BURNETT: All right. Our thanks to Jeff Corwin. And do I want to mention that that 12-year-old girl, Abby Wetherell, who had that incredibly -- so possessed of mind who was attacked by that bear in Michigan, did the right thing, will be on Piers Morgan tonight.

Money and Power tonight. The Kennedy fortune. According to public filings, Carolyn Kennedy could be worth nearly -- are you ready for this -- $300 million. She pulled in nearly $1 million from speaking engagements and book royalties alone. But that's obviously nothing compared to the rest of her money. The rest of it comes from dividends and interests from various financial holdings. A lot of it in real estate companies and investment firms.

Kennedy was required to disclose her assets as part of the nomination process because she was nominated by the president to be ambassador to Japan. In her disclosure letter, Kennedy said she would resign from a few nonprofits. We should note, of course, like many people who get some of these key ambassadorships, she is a major donor and friend of the president.

Coming up next, shocking new details about the man who held Hannah Anderson captive. We're going to tell you who he left all of his money to. That is new tonight.

Plus, Lindsay Lohan broke her silence about addiction. Did a rehab center exploit the situation for financial gain? We saw something in this that stunned us. We're going to put to you.

(COMMERCIAL BREAK) BURNETT: Our fifth story OUTFRONT: on the offense. Tonight the highest paid athlete in all of baseball, Alex Rodriguez, is claiming that the Yankees tried to sabotage him. Sabotage his career, a career that could be cut short because of accusations that performance enhancing drugs. Jason Carroll is OUTFRONT.


JASON CARROLL, CNN NATIONAL CORRESPONDENT: Call him the most controversial player in baseball today. Drawing admiration from loyal fans --

UNIDENTIFIED FEMALE: I think he should be left alone. I think he's a fantastic person.

CARROLL: -- hatred from others.

UNIDENTIFIED MALE: I think it's kind of a joke that he's been busted. The proof is there.

CARROLL: Yankees third baseman Alex Rodriguez is baseball's highest paid player. The Yankees agreeing in 2007 to a 10-year $275 million contract. Yet he's under investigation for using performance enhancing drugs, one which led to an unprecedented 211 game suspension now under appeal. A player seemingly at war on the field --

ALEX RODRIGUEZ, YANKEES PLAYER: Whether you like me or hate me, that's just what's (INAUDIBLE).

CARROLL: -- and off.

UNIDENTIFIED MALE; When you're in the big leagues like that, the proverbial big leagues, you may get hit by a fast ball every now and then .

CARROLL: But now come allegations more serious than being targeted by fastballs. Rodriguez's attorney, Joe Tacopina, says Major League Baseball and the Yankees have been trying to sabotage Rodriguez. Tacopina points to this MRI from October of last year, which he says shows a tear on Rodriguez's left hip. A copy of the written diagnosis also provided to CNN.

TACOPINA: Now, the amazing part of that is that was never shared with Alex Rodriguez at the time. He was sent off to play.

CARROLL (on camera): When you say it wasn't shared, what do you mean?

TACOPINA: He wasn't told about it.

CARROLL (voice-over): Given clearance to play by the Yankees when he was hurt, and Tacopina doesn't stop there. He also alleges Yankees' president, Randy Levine, made it clear to the doctor chosen by the Yankees he did not want Rodriguez back.

TACOPINA: What Randy Levine said to Dr. Kelly was that, "I would rather Alex never step on the field again." In so many words. "I would rather Alex never step on the field again."

CARROLL (on camera): When you say in so many words, do you know what words were used?

TACOPINA: Well, my understanding was there was a word not fit for TV that was used in that sentence as well.

CARROLL (voice-over): A spokeswoman for Dr. Brian Kelly could not confirm the conversation. MLB responded by saying, "Mr. Tacopina continues to avoid the only relevant question. Did Rodriguez use performance enhancing drugs? The rest of what he says is to distract people from the real issues."

CARROLL: As an attorney, you know it's a very simple statement: my client did not use performance-enhancing drugs.

TACOPINA: Because there is a confidentiality clause.

CARROLL (voice-over): There is a confidentiality agreement in place while Rodriguez appeals his 211-game suspension. MLB says it has evidence Rodriguez used performance enhancing drugs, allegedly provided by the former anti-aging clinic Biogenesis.

(on camera): What can you tell us about what relationship, if any, that Rodriguez had with Biogenesis?

TACOPINA: Oh, clearly - well again, there's certain things we can't get into and can get into. But clearly there was a relationship.

CARROLL: What kind of relationship?

TACOPINA: A consulting relationship.

CARROLL: For now, Tacopina says he's unable to go beyond what a consulting relationship exactly means.

For OUTFRONT, Jason Carroll, New York.


BURNETT: Still to come, new claims Princess Diana may have been murdered. Her personal chef is OUTFRONT to answer our questions.

Plus, the world's most famous nerd gets hacked. Why it could cost Mark Zuckerberg a lot more than his reputation.

And what does a $27 million car look like?


BURNETT: Welcome back to the second half of OUTFRONT.

We start with stories where we focus on reporting from the front lines and I want to begin with Mark Zuckerberg. The Facebook CEO's Facebook page was hacked. The hacker was from Palestine. And in the message, the hacker apologized for violating Zuckerberg's privacy but said he had no choice because he had attempted to notify Facebook of this hacking vulnerability and the company didn't respond.

Facebook actually has a program that lets hackers basically attempt to hack the site to find vulnerabilities. And then Facebook will pay you if you're successful. They do this to try to strengthen their site.

Anyway, Facebook says the hacker violated the company's terms of service because, you know, he hacked in to Mark Zuckerberg's Facebook page. Anyway, the hacker says to CNN that he didn't do it for the money.


KHALIL SHREATEH, SECURITY RESEARCHER: I asked them that this report as a white hat; I never asked them that I want $4,000 or $5,000. I didn't deal with them like that. OK, I found a vulnerability, this is your site, you have an exploited website. Deal with it, guys.


BURNETT: Facebook says they get hundreds of reports about bugs every day. Obviously they are far from immune to hacking.

An OUTFRONT update on Kaitlin Hunt, the Florida teenager charged with having sex with a 14-year-old girl. They are both teenagers, but obviously the 14-year old was technically underage at the time. The attorney's office says it has rescinded a potential plea deal that would have charged Hunt with a felony, but would have taken away jail time for her and not made her register as a sex offender.

Prosecutors say Hunt and the quote-unquote "child victim" sent thousands of text messages after Hunt was ordered not to have contact with her. The messages allegedly included photos that were sexually in nature. It also alleged Hunt secretly met with the victims. Of course by all account, Hunt and this other girl were in a consensual relationship.

Could the next iPhone be available in gold color? It could be. According to All Things D, the gold-colored iPhone will be quote- unquote "elegant," -- I don't know about that -- and will have a white face and a gold-toned back plate. This is just one of the many mockups of the potential gold iPhone that Apple fans have been creating.

Analysts we spoke to say Apple will announce a new iPhone next month and some are saying that the place this could be really popular is in developing markets.

It has been 744 days since the U.S. lost its top credit rating. So what are we doing to get it back? Well, it was another rough day for stocks. Dow and S&P with their first four-day-in-a-row loss of the year, Dow down 72, in danger of slipping below 15,000. But again, the emphasis should still be on the fact that the markets are 15 percent to 20 percent for the year.

Now our sixth story OUTFRONT. Just into CNN, a very strange new development in the Hannah Anderson kidnapping case, the case of horrors.

A member of Anderson's family was the beneficiary of her abductor's life insurance policy. So let me explain.

James Lee DiMaggio was a friend of the family, was a friend of Hannah's and of her parents, and then he was killed in a shoot-out with police.

He named Bernice Anderson, Hannah's grandmother, as the beneficiary of the policy that DiMaggio had, and of course DiMaggio is the man now who police say murdered Hannah's mother, murdered Hannah's brother, shot Hannah's dog, horrific, horrific things.

Let's bring in Dr. Jeff Gardere, a clinical psychologist.

All right, what do you make of this? So he then had a will and he left all the money to Hannah's grandmother.

DR. JEFF GARDERE, CLINICAL PSYCHOLOGIST: Well, it could be that of course he wanted to leave the money to Hannah. We know of his infatuation, obsession with her, knew it was socially inappropriate to do so. That's not a blood relative. He could have left the money to his own sister, but instead left it to the paternal grandmother.

And I think it tells me a little bit more about how obsessed this individual was with the family, how embedded he was with that particular family, how everything was about life with that family.

BURNETT: Well, it does, it certainly does seem to show some level of obsession, which of course we've seen before on the day of the abduction, that there were 13 back-and-forth calls or texts between DiMaggio and Hannah.

GARDERE: That's right.

BURNETT: This fits with that.

What does this mean, though, for Hannah?

GARDERE: I think this is something that -- we talked about the survivor guilt. How do you deal with that situation, knowing that that money may have been, according to a spokesperson, earmarked for Hannah herself. And it's 's blood money. So I think it makes Hannah, her grandmother, anyone in that family even much more enraged with this individual, that he would do these horrific things and --

BURNETT: It shows planning, too.

GARDERE: -- and it shows planning.

Did he go back as early as 2011 when we thinking this insurance policy came out?

Was this something that he had intended to do to try to Hannah in whatever way he could? Was it a reparation that he made in advance, knowing that there would be mayhem?

The more I think about this clinically, the more I'm convinced this was a suicide mission. He was going to spend whatever time he could with Hannah, but he knew --

BURNETT: Before he died.

GARDERE: -- but he knew he was going die and he knew what he did would end up in his death and maybe hers, too.

BURNETT: All right. Jeff Gardere, thank you very much.

Every development in that story is horrible.

Well, our seventh story OUTFRONT, murder, conspiracy or tragic accident? Nearly 16 years after Princess Diana was killed in a car crash in Paris, there are new claims that British special forces may have been involved in her death. According to "The Sunday People" newspaper in Britain, the allegations come from the former in-laws of a former special forces sniper.

Erin McLaughlin is outside Scotland Yard in London.

And Erin, what amazed me is you'd think the police would just go ahead and say we dismiss this out of hand, but they didn't.

How seriously are they investigating the claim?

ERIC MCLAUGHLIN, CNN CORRESPONDENT: This is the first information that Scotland Yard has assessed for its relevance and credibility since the conclusion of the inquest into Princess Diana's death in 2008. Now it's serious enough to assess. The moment not serious enough to reopen an investigation.

And they're saying this is not part of Operation Pageant, which was an exhaustive two-year investigation into conspiracy theories surrounding Princess Diana's death. That investigation concluded that she died as a result of the gross negligence of her driver as well as the surrounding paparazzi.

So how this reported seven-page handwritten letter by the ex-laws of a former British SAS sniper could possibly alter those conclusions, well, that remains to be seen, Erin.

BURNETT: All right. Thank you, Erin.

Now, conspiracies about Princess Diana's death have swirled since the moment she was killed. It's one of those moments that, if you were alive at that time, you remember where you were. I remember I was standing at my dresser for college pre-season field hockey camp when we got the news. But all these investigations have never proven anything. Always come out that it was an accident.

OUTFRONT tonight, Darren McGrady knew Princess Diana for 15 years as her former chef.

Thanks so much for taking the time, Darren. You were working for her when she passed away. It's been almost 16 years.

When you heard this news, this latest news and that Scotland Yard was investigating it and taking it seriously, what was your reaction?

DARREN MCGRADY, DIANA'S FORMER CHEF: Well, it was just 16 years ago this week that I was in the kitchen at Kensington Palace planning menus for Princess Diana, Prince William, Prince Harry's return to Kensington Palace. So for me, it came as a real shock, a real surprise, more so that the British police, Scotland Yard were actually talking about this because it gave it a sense of legitimacy.

BURNETT: And Princess Diana, you talked to her. You were someone that she came and spoke to. She was known to be worried about the royal family and her role in it, what they might be doing or saying..

And you talk about how she was paranoid, that someone might have been out to get her.

What were some of the things that led her to believe that?

MCGRADY: Well, during the last few months of her life, there were very few staff, Atkins in the palace (ph), just four of us there. So the princess would come into the kitchen quite a lot and I would actually -- we didn't have a chauffeur in those days. So I'd actually go and fill her car with gas.

And I remember one time she came in and said, "Darren, drive carefully; I want you to check the brakes because I think someone's tampering with my brakes."

And we always, the butler and I and the maid, we just thought, well, maybe she's being paranoid.

Other times she'd come in the kitchen and she'd have a new cell phone and she'd change these on a regular basis because she thought someone was tapping into her phone.

And she did actually say in the kitchen, Atkins in the palace (ph), do you get those clicks on the phone when you put the phone down or when you pick the phone up? And strangely I did.

BURNETT: And so what do you think when you see this? Are you someone who thinks it might not have been an accident or not?

MCGRADY: I always hoped it was an accident. And I still do hope that it was an accident. They're saying that the SAS are involved in this and experts are saying it can't be true, there is no evidence. But the SAS are trained not to leave evidence.

BURNETT: All right. Thank you very much, Darren. We appreciate it.

Let us know what you think about this latest development, a real shock. When comes to classic cars, we have a new champion. I was pretty excited to share this with you, because over the weekend apparently, a rare 1967 Ferrari -- I mean, it's just a car, people, but it's not just a car to some.

It sold for $27.5 million. That is the most ever paid for a road vehicle at an American auction. Experts say the car sold so well because it only had one previous owner and there is only 10 of them in existence and it's in great condition. I mean, those are all nice things.

But $27.5 million? Anyway, that brings me to tonight's number which is $240,000. That's actually, you know, about I guess somewhere around what it costs to buy some new Ferrari. I don't know. But it was the top bid for this according to a listing on eBay. This used to be a 1996 Ford Fiesta LX.

So the ad includes a number of shots of the car from different angles and a funny description, describing the vehicle as an unfinished restoration that need a few odds to bring it to mint show condition. And it appears the ad worked, because just before the ad went down this weekend, the top bid was almost a quarter million dollars. So new Ferrari, crushed Ford Fiesta.

Anyway, despite some of the reports we've read, we really can't believe that that was real. It really seems like a publicity stunt. But stranger things have happened, like dozens of bags of Doritos handed out by police as a munchies treat at Seattle's Hemp Fest this weekend showed up on eBay with starting bids of 50 bucks. People, it's a bag of Doritos. And lots of them are selling for more than that.

On some level, sadly there is always is a sucker somewhere. If you put something up for auction, it seems all too often someone somewhere will buy it.

Still to come, the Olympic Blade Runner that shot and killed his girlfriend indicted. We're going to tell you the latest on that trial.

Plus Lindsay Lohan talked about addiction with Oprah Winfrey last night. But a rehab center had a lot of ads in that. Did they use the interview for its own gain?

And corporations regularly taking photos of you and your home. So who is the biggest spy on Earth?



BURNETT: We're back with tonight's outer circle where we reach out to our sources around the world. Tonight we go South Africa where Olympic sprinter Oscar Pistorius was indicted today for the murder of his girlfriend, model Reeva Steenkamp. Pistorius, who of course is nicknamed the Blade Runner for his Olympic fame, has admitted to shooting Steenkamp on Valentine's Day, claiming he mistook her for an intruder. But a lot of the facts didn't seem to add up for a lot of people.

Robyn Curnow is OUTFRONT in South Africa.

And Robyn, what do we expect?

ROBYN CURNOW, CNN HOST: Erin, in court today, Oscar Pistorius cried and prayed and that was before he was formally indicted, charged by the state with premeditated murder. That's the strongest charge they can bring against him. It carries minimum sentence of 25 years.

So is this an indication that the state's case is water tight, that they're confident, or is it an indication that they perhaps are overreaching themselves?

What was also key about today's indictment -- perhaps strange, even striking -- was the number of witnesses the state intends to call. More than 100 names were on that charge sheet.

So what we can be sure of then is that this will be a very long trial, Erin.

BURNETT: Thanks to you, Robyn.

Tonight Lindsay Lohan's rehab facility is in the spotlight and we wanted to look at this because during the actress' interview with Oprah last night, Cliffside Malibu, where Lohan spent 90 days, wasn't only mentioned several times during the interview, commercials for the firm also aired many times during the broadcast.


UNIDENTIFIED MALE: Eighty-three percent of addicts who go through treatment relapse within a year. At Cliffside Malibu, our treatment program is so successful, we guarantee it.


BURNETT: Interesting they guarantee it because when we talked to them today, they said they don't make any promises of easy, instantaneous recovery or even promise they can make you sober.

But as obviously don't say the same thing.

Was Malibu taking advantage of Lohan by advertising during the special?

Or was it a brilliant marketing move?

OUTFRONT tonight, CNN contributor Reihan Salam, Radio Show's Stephanie Miller and Mediaite's Joe Concha.

OK. Great to have all of you with us. And we asked Owen (ph) about the spot. Their spokesperson said we review all advertisers' spots, this was approved for air. Now, look, I don't know, but I know on this show if we're covering a specific topic, we check our ad block. We pull it if we don't think it's appropriate. Should they have done that?

I don't know, but I know on this show if we're talking about a specific topic, we check our ad log. For example, an ad for Inspire Malibu was supposed to air before the segment. And guess what, it didn't, because we pulled it because we didn't think it was appropriate.

Should Owen have done it? Does it hurt their credibility?

JOE CONCHA, MEDIAITE: It absolutely hurts their credibility, Erin, but then again their ratings are so low, Oprah's network is so hard to find -- they're improving, but to find this network is to find Edward Snowden. It's impossible.

And Oprah by her own admission said that she nearly had a nervous breakdown because of the ratings struggle. So if a company is willing to advertise and that happens to coincide with the subject that is being interviewed, then Oprah is saying we're having enough trouble getting advertisers as it is, maybe it hurts our credibility, but for our bottom line, it's not a bad way to go.

BURNETT: Ryan, what do you think about that logic?

Credibility versus bottom line? Sometimes you pick the money.

REIHAN SALAM, CNN CORRESPONDENT: Oprah Winfrey's greatest asset is her credibility. So if the editorial integrity of the show is compromised in this way, it's going to cost her a hell of a lot more money than she's going to gain by having these ads on the show.

I think that's what she needs to think about. So Joe had mentioned that, yes, not very high ratings but the thing is they've had a resurgence and they've had the first profitable quarter they ever had. So what's making me nervous is are they getting antsy? Are they getting nervous? Are they going after easy money like this and --


SALAM: -- exactly -- and risking the brand? That's a big mistake.

BURNETT: That's an interesting point.

Stephanie, let me just play a little part of the interview because it wasn't just that Lindsey Lohan happened to have been at Cliffside Malibu and then they advertised; it actually was discussed rather glowingly during the interview.

Let me just play one please.


OPRAH WINFREY, ACTRESS: To be confined at a very beautiful place.

LINDSEY LOHAN, ACTRESS: No, yes, I was at Betty Ford for about a month and then moved over to Malibu.

Malibu, the nice thing was, is that we did go out and have hikes. So that's nice to kind of have -- you get to go off site so you're not just in the same one place because it could -- you know, it's very safe there.

WINFREY: And then May of this year, Betty Ford again and then you move yourself to Cliffside.


BURNETT: What do you think, Stephanie?

STEPHANIE MILLER, RADIO SHOW HOST: Well, I think the one thing we can all agree on is that Oprah needs is money, Erin.


MILLER: But secondly, I think it's a brilliant marketing move -- if rehab takes this time; if it doesn't, then it's like being Anthony Weiner's online etiquette course or Charlie Sheen's anger management clinic or Bob Filner's sexual harassment course. You know what I mean? It will not be a good advertisement if this does not end well.

BURNETT: (Inaudible).

CONCHA: It's a guarantee, though, right, Erin? So Lindsey Lohan has been in and out of rehab six times. But now, we just saw that advertisement. She's cured. This possibly can't happen again.

SALAM: I do want to say one thing. There's a huge number of Americans who are substance abusers, who are alcohol and drug dependent.

CONCHA: (Inaudible) million worldwide.

SALAM: It's staggering. The thing that really causes a knot in your stomach is the idea that there are a lot of desperate folks out there, including some of the folks who are big fans of Oprah, who have, you know, folks and their families; they may have a --


BURNETT: -- she's been in and out of rehab six times.

SALAM: Exactly.

BURNETT: -- like a lot of people.

SALAM: And so you're tugging at the heartstrings like this. You're tugging at the heartstrings like this; you're describing this beautiful place and I've got to say, it makes me very nervous about what Oprah is potentially doing to those folks that she intentionally loves and who certainly love her.

BURNETT: Stephanie, we reached out to Cliffside Malibu. They defended their decision. They said, before we can help people, we need to reach them. Cable TV is an excellent way to do that. That was part of their statement.

But you just heard the ad there, right, they said 83 percent of people relapse in other places but they guarantee it. What they told us is they don't even promise they can make you sober and they don't make any promises of an easy and instantaneous recovery. That doesn't match the ad.

MILLER: Right. But you can get some nice sea shells and that's the important thing.

You know, if you had played the ad before our segment, Erin, I would have thought you were trying to do an intervention on me. So I'm really glad that you didn't. But I think you're right. Substance abuse is a serious thing. And people -- Lindsey Lohan has become kind of a punchline, sadly. I just want to say I think she's very talented and I hope it does take this time.

BURNETT: Well, I think everyone does.

CONCHA: There's no saying that seventh time is a charm. And I'm not sure -- and I'm not a psychologist by any means. But just from a media perspective, I think she has an addiction to attention. In other words, sober Lindsey is boring Lindsey.

Boring Lindsey doesn't get any headlines and no headlines means no attention. So I'm not sure if there's a physical addiction here. I just wonder if she just loves being in the headlines so much and it's four days out of rehab, yet she's doing an interview. And Dr. Drew probably isn't recommending that to people. Hey, you're out of rehab, go on national TV. That won't cause any stress whatsoever or a reason to celebrate if it goes well.

BURNETT: Certainly of course Oprah would well know that that is far from knowing that someone is cured.

CONCHA: I have a feeling that this is going to end with a sentence that includes bartender, Long Island Iced Tea, double stat. Because that's been the pattern and for this place to say we guarantee it, as you said, boy, that's giving a lot of people false hope, Erin.

BURNETT: Thanks to all three. Let us know what you think about that and whether own should have run that ad or not. Well, as you know every night, we take a look outside the day's top stories for OUTFRONT outtake and tonight I'm very excited about this one, because it's the Google Street View.

This was launched back in 2007 and you can go online, use your computer, you can zoom up and down the street and violate people's privacy and see these around the world. They're panoramic views and they are shot with special Google cars with cameras. They drive around taking pictures. As the company has expanded to more rural areas, it has added bicycles and snowmobiles to its fleet of camera hungry vehicles.

It current has a presence in 50 countries. And more than that.

What if your city doesn't have any streets or even land? That's not a problem anymore. What am I talking about? I'm talking about Venice, Italy. It was just added to Street View., attaching 30-pound cameras to the backs of employees. So they move up and down the canals and record everything they see. The sight of people loaded with giant cameras has actually reportedly becoming something of an attraction. Tourist getting their picture taken with a guy taking pictures of them violating their privacy. Yes, a corporation sending its employees out to spy on us and we're embracing it. We're cool with it. Not all of us.

Thailand is P.O.ed. A local Thai paper reports that last week a local Google car drove through a village. The locals did not know what Google Street View was, surrounded the car, seized the driver and escorted him to the police station. And that's what we should do, too, people. There's currently a dispute over a dam in the village and the villagers thought the Google employee was a government spy.

Eventually he had to put his hand on the statue of the Buddha and swear he was not a spy. They believed him and they let him go. I would not have believed him, because as much as we complain about the NSA leaks, we are quite happy to allow agents of major corporations to know everything about us.

The NSA sadly has proven that there are many incidents in which they are incompetent; Google is not. Maybe it's time we re-evaluate where our outreach belongs.

Still to come, a water park without water. It sounds heavenly and we're going to tell you why.



BURNETT: Just in, the Obamas have a new dog. Meet Sunny, who, like Bo, is a Portuguese water dog. Last week there was outrage over Bo's expensive travel. Maybe Sunny is the president's way of brightening up his image. Bo cost 2,000 bucks. We'll see what Sunny's price was. But obviously they are buddies.

Well, temperatures in Sumancha City, Japan, hit 105 degrees last week, the highest ever recorded in Japan. A lot of Japanese, like Americans, sometimes like to go to the water park to beat the heat. Look at this. This is a picture we saw this weekend. This is a water park, people. These people are in pools but you cannot even see the water. People could be being trampled to death and you wouldn't even know.

It's a far cry from what was going on in Detroit this weekend, where the city's newest water park opened to great fanfare until a water pipe burst and there was no water. So the fire department had to be called in to cool off the crowd with hoses.

Now a lot of people criticize the Detroit park for the lack of water. But you know what, I think it's great. You probably know how we feel about water parks, particularly ones as crowded as the ones in Japan, all sorts of foul and fetid biological by-products, the kind that you will get sick if you are lucky.

So to the people of Detroit, don't feel bad if you're serious about turning your economy around, there are worst ideas than a waterless water park. If you do it, I'll be the first in line.

Thanks for watching. Anderson starts now.