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Legal View with Ashleigh Banfield

Feds Investigate Program For Disabled Workers For Corruption; Obama Administration Defends Iran Nuclear Deal; John Kerry Testifies Before House Committee; Woman Kills Possible Serial Killer In Self- Defense; Outside Attorney Reviewing Sandra Bland Case; What It Takes To Buy A Firearm; Boy Scouts End Ban On Gay Leaders. Aired 12:30-1p ET

Aired July 28, 2015 - 12:30   ET

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

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[12:30:00] DREW GRIFFIN, CNN SENIOR INVESTIGATIVE CORRESPONDENT: Worse case of financial fraud they've ever seen in a federal program. Our sources say as many as half of the federal contracts under this disability program, may be operating in violation of the law.

UNIDENTIFIED MALE: The majority of the individuals that were being hired were not severely disabled.

GRIFFIN: Even though you're suppose to have 75 percent or more of your work staff being disabled, severely disabled.

UNIDENTIFIED MALE: In my experience, you know, the only one contracts that I worked on may be 10 to 20 percent, were truly severely disabled, they true did not have the ability to find the inform employment elsewhere, everybody else, they're capable of finding employment elsewhere.

GRIFFIN: This manager who wants to remain anonymous to protect current employment, says instead of hiring severely disabled the federal contractor making tens of millions dollars, would hire just about anyone who walked through the door and no one bothered to check.

So you could say a 100 percent of my employees are severely disabled.

UNIDENTIFIED MALE: Correct.

GRIFFIN: And none of them are.

UNIDENTIFIED MALE: Right.

GRIFFIN: And you'd still have this contract?

UNIDENTIFIED MALE: Right because there's nobody checking.

GRIFFIN: CNN heard the same allegations from numerous sources all across the country, SourceAmerica says, they conduct on site visits, but according to their statement "SourceAmerica staff does not determine compliance, only the U.S. AbilityOne commission is authorized to do so." How does it happened? AbilityOne's commission is made up of presidential employees, but it out sources the management of the program to the nonprofit agency SourceAmerica.

SourceAmerica recommends and according to our sources virtually decides who gets the contracts, worth $2.3 billion every year.

Former Congressional Investigator Rich Beutel, says it's a recipe for corruption.

RICHARD BEUTEL, FORMER CONGRESSIONAL INVESTIGATOR: The contracts are now being funneled to a very small group of 10 large companies that are getting way more than there fair share.

GRIFFIN: Beutel and numerous other sources are telling CNN the staffers who are essentially handing out federal contracts at SourceAmerica are heavily influenced by top officials at the very same agency.

And those officials are often connected to the business that gets the contracts.

BEUTEL: You have actual advisors and board members in these private organizations, who are themselves business owners and so they can award themselves potentially, contracts worth hundreds of million of dollars, a perfect set-up for waste interviews.

GRIFFIN: No one from SourceAmerica would go on camera but in a statement the group flatly denies the allegations, "No one involved in making award recommendations the statement reads is employed by an organizations seeking those contracts."

And SourceAmerican denies board members are even involved in the evaluation of contract bids.

That's all left up to the AbilityOne presidential commission, who's executive director also declined an on camera interview with CNN, and even refuse to respond to any specific questions siding pending lawsuits.

CNN has learned those lawsuits maybe just the beginning at least four separate inspectors general offices now have active investigations into the dealings of AbilityOne and SourceAmerica and the Department of Justice has opened it's own investigation.

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RANDI KAYE, CNN ANCHOR: And Drew Griffin joins me now from Atlanta.

Drew that is a fascinating report, I mean it's seems though like this would be easy to check, I mean people are either disabled or not.

GRIFFIN: Yeah, that's if they actually check which were hearing is very, very rare, these two groups AbilityOne and SourceAmerica can't seem to get their act together, they're unseamed to be a lot of on site inspections going on. But even when they're inspections Randi, letters go out and they're just not even responded too, because these companies were told no, that nothing is going to happen to them. And this is happening year after year after year.

KAYE: So you're saying inspections really aren't taking place then.

GRIFFIN: That's right, that's right, the inspection involves the company, self reporting on itself, giving a piece of paper to somebody in Washington as long as everything is signed and looks OK, they take it at their word that they are hiring these people, which everybody were talking to so they are just simply not.

KAYE: Such an important investigation Drew, thanks so much.

Earlier today there was a rally on Capitol Hill marking the 25th anniversary of the Americans with Disabilities Act. And I should point out that some carried signs about the juries investigation.

Up next, President Obama's top aids in hot sit under fire today on Capitol Hill answering tough questions about the Iran nuclear deal from Republicans and Democrats.

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[12:38:03] KAYE: Some of the Obama administrations heavy haters are back on Capitol Hill right now defending the Iran nuclear deal, this time before the house Foreign Affairs Committee. Secretary of State John Kerry, Secretary of the Treasury, Jacob Lew and Secretary of Energy, Ernest Moniz are all testifying.

Now, moments ago Kerry told the committee if congress rejects the deal it could do lasting damage to Americas foreign policy.

And, joining me now from Washington is CNN's Global Affairs Correspondent, Elise Labott who is following this hearing very closely.

We didn't have that sound by the list but tell me what part of the deal are the questions really focusing on?

ELISE LABOTT, CNN GLOBAL AFFAIRS CORRESPONDENT: Couple of things Randi well they're basically focused on the inspection regime. You know, there's been a lot of questions about that whether the Iranians would have 24 days to accept or reject inspections what -- the way Secretary Kerry is answering it. Is that even if there were 2,400 days the Iranians would not really be able to hide the fact that they were working on a nuclear weapon and that something that the Energy of Secretary next to him, Ernest Moniz was willing to back up.

There is also questions about Iran's Ballistic Missile Program.

We know that an eight years that Diane that you want Diana on Ballistic Missile will be lifted a lot of questions on how that would have impact Israel. The way Secretary Kerry set that scene is listen if this deal doesn't go ahead with the 15 to 20 year restrictions on Iran's program, that 20 year period ends right now that Iran would feel that it would be entitled to restarts its nuclear program, the sanctions would be lifted but this time the United States would be a no position to work with its allies to stop. And then the U.S. would really lose credibility.

He said not only with the Ayatollah Iran's Supreme Leader not to come back to the table with the U.S. he said but what other world leader would negotiate with the U.S. if it's willing to renege on agreement. He said, no country wants to know that there are 435 secretaries of state referring to members in a house chamber.

[12:40:09] KAYE: Absolutely. All right, Elise Labott for us. Elise, thanks for the update.

A West Virginia woman is lucky to be alive after a possible serial killer attacked her. The woman who police are only identifying is "Heather", speaking out about how she was force to shoot and kill, this man Neal Falls.

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HEATHER, KILLED NEAL FALLS: When she strangled me, he just won't let me get any air and when he laid the gun down to get the rake out of my hands, I shot him.

I know he was there to kill me. I could tell that he had already done something because he said that. He was -- and going to prison for a long time.

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KAYE: Investigator say, they have ruled out a connection between Falls and unsolved cases in Ohio where six women have gone missing or turned up dead and a little more than a year.

However police in Nevada and Illinois say they are investigating links that he could have to murder in their state.

Weeks into the sentence of phase of his trial James Holmes sister, Chris Holmes is the first of the family to testify in court.

Their parents are expected to testify later today. Chris gets emotional while answering questions. She says despite her brother is killing rampage in Aurora Colorado Movie Theater, she still loves him.

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CHRIS HOLMES, JAMES HOLMES SISTER: There were times, depending on what we're trying about, yes.

UNIDENTIFIED FEMALE: In the future if there's things that you can do to help him, are you -- do you wanted to be able to do that?

HOLMES: Yes, I think it'll be up to me and my parents past away. So I do want to do that.

UNIDENTIFED FEMALE: After it all, is he still your brother?

HOLMES: Yes.

UNIDENTIFED FEMALE: And do you still love him?

HOLMES: I still love him.

(END VIDEO CLIP)

KAYE: All right, Texas district attorney has named a committee of outside attorneys to review the Sandra Bland case.

Bland was found dead. You may recall in her jail cell days after a controversial traffic stop by state trouper. The committee has until August to make the case to a grand jury for possible criminal charges.

Up next, he was ordered to get a mental evaluation by a judge. And had a violent past but somehow the Louisiana movie theater gunman legally bought the pistol that he used to shoot 11 people.

So just how easy is it to get your hands on a firearm?

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[12:46:01] KAYE: We are learning more details now about the man who was shot at the Louisiana movie theater in Lafayette Louisiana Thursday, killing two people.

According to court documents, in 2008 John Russell Houser's family took out a restraining order against him after he had made threats. And a judge ordered a mental evaluation. But he was never in voluntarily committed for treatment which would have been necessary to ban from buying a gun.

President Obama has been speaking about his frustration over the lack of tougher gun laws. And after the theater shooting, Louisiana's governor said the law should also be tougher. But in many states it's actually easier to get a gun than a driver's license or even voter registration cards.

CNN Nick Valencia shows us what it takes to buy a gun in the state of Georgia.

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NICK VALENCIA, CNN CORRESPONDENT: We're here at Stoddard Range and Gun store and were about to buy our first gun.

KEN BAYE, OWNER. STODDARD'S RANGE AND GUNS: Many people who walk in here for the first time want to try some guns, that we have a number of rented guns at the range.

We'll ask you what you want to use the gun for and then based on that will show you some different choices. Can you give us a couple of pistols and may be a revolver.

VALENCIA: Are we going to be able to try some of these after?

BAYE: Absolutely.

VALENCIA: All right let's do that.

BAYE: Were going to start with the revolver.

VALENCIA: OK.

BAYE: Right, I'm going to show you how to load it. I'm going to show you how to grip it. And then I want you to practice shooting it, the most important thing to remember is that the gun should always be pointed down range.

There you go look at that now you're going to load the magazine on the gun the same way you did on the glock.

VALENCIA: OK. And...

BAYE: Exactly, and you're going to rack the slide again, there you go the gun is now hot.

VALENCIA: This is how we started at. This is how we finish, we just came from inside the gun range, I found the gun that was most comfortable for me, now what's next?

BAYE: Well, next we're going to the process of your actually purchasing the gun. Were going to proceed to the process of your filling out the 4473 form which...

VALENCIA: What's that?

BAYE: That's the federal form that the ATF requires to be filled out for a gun purchase.

VALENCIA: So right now they just asking me for basic information, place of birth, height, weight, birth date it's a pretty basic step. Now it's asking me for my social security number, put all these information in here.

PATRICK FAGAN, GENERAL MANAGER STODDARD'S RANGE AND GUNS: All right Mr. Valencia, first things first we're going to have you sign and date number 16 you've signed, number 17 dating verifying that all this information that you have entered down in the sheet is correct.

BAYE: Yes, sir.

There are many people who mistakenly believe that there's a registration system, there is no registration system certainly not nationally, not federally and there isn't in Georgia

VALENCIA: So that process, a little process from the start of our application to this point here took probably about 20, 30 minutes. So I passed the background check, I've been cleared by the ATF the FBI and Stoddard's and the only thing left to do before I officially become a gun owner is to complete the purchase, there you go.

And while we didn't go trough with actually purchasing a gun that day, what we went through shows the simple process to buy one in Georgia.

Nick Valencia, CNN, Atlanta.

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KAYE: Simple is an understatement there.

All right coming up next a big change for 100-year-old American organization boy scouts and their ban on gay leaders but not everyone is still happy about it.

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[12:53:08] KAYE: The Boy Scouts are officially ending their ban on openly gay leaders. And that is Mormon officials threatening to pull church affiliation with the organization. Under the new policy, church sponsored Boy Scout units can still choose leaders who share their beliefs, even if that means excluding gays.

Despite that compromise, the Church of Latter-day Saints says it is deeply troubled by the new policy and it's considering actually separating from the scouts.

Joining me now from Louisville, Kentucky, Greg Burke, who was forced to step down as a scout leader because of his sexual orientation.

Greg, nice to talk to you about this.

First of all, you say that you want to apply to be a scout leader again. I think a lot of people would wonder why would you want to be a part of an organization that once rejected you?

GREG BOURKE, FORMER GAY SCOUT LEADER: Well, I didn't want -- I never wanted to leave the boy scouts organization in the first place. I was a devoted scouter for eight years, and a registered leader for six of those years.

I believe in the scouting program. And I want to continue to be involved in it because it's a ministry for me. It's very important to me at my church, to be involved in various ministries. And scouting is one of those that I choose to participate in.

So, I really believe in the scouting program, that's why I wanted to get back involved.

KAYE: So how will you go about approaching other Boy Scout groups that say no to gay scout leaders?

BOURKE: Well hopefully, I can be an example for them because I wasn't openly gay scout leader for many years before I was ousted. We never had any issues whatsoever. I had an impeccable record as a leader. I expect to carry that forward in the future, as I get involve with my son's troupe.

So, I think by setting an example, I can, along with other people who are openly gay and start bringing past scout leaders. We'll be able to set examples and kind of ease some people's fears about what it means to be an openly gay scout leader.

One of the things about scouting is that there are protections in place called duty, leadership and no one-on-one contact that protect you from any kind of inappropriate action by scout leaders. And then also protects leaders, like me, because if you always have two adults present, then you don't have to worry about any false climbs has being made.

[12:55:17] So the scouting program has already thought about these things they have safeguards in place.

KAYE: And the Mormons as we we're saying they already saying that they may leave over it. I guess the question is, you know, why not go all in because right now the church is still able to decide.

BOURKE: Right, that, you know, in Jesus (ph) me just a little bit. But the same about the Mormons because, you know, two years ago the Boy Scouts of America voted to allow gay youth. And I would've thought if they are going to make a move and leave the scouting program they would have done it two years ago. But they stuck with it.

Scouting has continued to flourish in the LDS units. So it does surprise me a little bit that they would make a statement like that. I really think that it's something that they're just struggling with a little bit right now. But given a little bit of time they'll make the right decision and they will welcome gay leaders as well.

KAYE: Let me get you're reactions to one of the statements because the church of Jesus Christ of Latter Day Saints says that it's deeply troubled by the vote. Also adding when the leadership of the church resumes its regular schedule of meetings coming up in August the century-long association with scouting will need to be examined.

What would you like to say to them in terms of making a decision about this?

BOURKE: Well I would encourage them to please stay in the scouting program to not abandon the scouting organization. It's been around for a 105 years. It's a great program for youth. Scouting is a place for all people. To all people, all scouts are equal. And if they left it would be a great lost for the scouting program.

So I will just appeal to them to please stick with the program.

KAYE: Greg Bourke, nice to have you on. Thank you.

BOURKE: Thank you very much.

KAYE: In West Virginia a woman fights off the man attacking her grabbing his gun and then shooting him to death. But the story does not end there.

CNN's Boris Sanchez has more now.

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HEATHER: I know he was there to kill me. I could tell that he had already done something because he said that he was in -- and going to prison for a long time.

BORIS SANCHEZ, CNN CORRESPONDENT: After opening her door there was a stranger who answered her escort at on backpage.com. A West Virginia woman the police only call "Heather" says the man became aggressive wrapping his hands around her throat.

HEATHER: He was saying, "You're going to be quite, I'm going to say call to orders."

SANCHEZ: Moments later she runs from her Charleston home pleading for help and chasing down a neighbor and calls 911.

UNIDENTIFIED FEMALE: There's a lady in the alley here and she's saying that some guy tried to rape her and she had to defend herself, she's got cut and stuff all over her."

HEATHER: When he strangled me he just won't let me get an air and when he laid the gun down to get the rake out of my hands I shoot him.

SANCHEZ: The attacker Neal Falls a 45-year-old man police believe could be a serial killer. A kill kit inside his Subaru has led investigators to a string of murders.

Items inside including a machete, axes, knives, a shovel, a large container of bleach and trash bags.

LT.STEVE COOPER, CHARLESTON WEST VIRGINIA POLICE: We also found, four sets of handcuffs in Mr. Falls pockets. And the brutality of the attacked that took placed in the house where the victim was able to defend herself and survived.

All those things together lead us to believe that Mr. Falls has been involved in similar crimes, he's 45-years-old is unlikely to do in his first violent crime.

SANCHEZ: The case is now extending far beyond West Virginia. Investigators in Nevada, Oregon and Illinois are looking at potential clues that may reveal insights into his past.

Authorities tells CNN in item found in Falls car is believed to be link to evidence discovered on several dismembered bodies in Las Vegas back in 2005 where Falls live at that time. Their remains found in trash bags all of the victims escorts, one of the case is Lindsay Marie Harris who's dismembered legs where recovered in Illinois three weeks after she disappeared.

Investigators also looking at any potential cases in Eugene Oregon where Falls lived in 2010. PAULINE, NEAL FALLS FORMER LANDLORD: A little creepy, very kind of tight lift and, you know, not a chummy guy definitely not chummy guy, somebody who doesn't want to be exposed.

SANCHEZ: His former landlord describes his behavior as odd. She had him evicted a year after he moved in.

A source has tell CNN that no evidence has yet pointed to a direct link.

Heather believed she stop Falls from hurting others.

UNIDENTIFIED FEMALE: You do feel like you possibly saved other women's life?

HEATHER: I know I did.

SANCHEZ: Boris Sanchez, CNN, New York.

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KAYE: And our thanks to Boris Sanchez for that report.

And many thanks to you for watching today. I'm Randi Kaye. Have a great afternoon.

[12:59:58] WOLF starts right now.