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Anderson Cooper 360 Degrees

Close Friend Testifies in Martha Stewart Trial; College Football Scandal; Iran Denies Possessing Nuclear Centrifuges

Aired February 19, 2004 - 19:00   ET

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

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


(BEGIN VIDEOTAPE)
ANDERSON COOPER, HOST (voice-over): Covert nuclear technology and the Iranian military, what were they trying to hide?

The hell in Haiti gets hotter. Is the U.S. preparing to send in troops?

Proof and the pen. Why the government thinks two kinds of ink may prove its case against Martha Stewart.

Colorado's campus in chaos. The fallout from rape charges.

A woman murdered, buried in concrete. Who's the fake doctor on the lam?

And the remarkable rescue of a Baghdad boy shot in the head.

(END VIDEOTAPE)

ANNOUNCER: Live from the CNN Broadcast Center in New York, this is ANDERSON COOPER 360.

COOPER: And good evening. Welcome to 360.

New allegations of sexual assault involving University of Colorado football players. A sixth woman comes forward. Details ahead in a live report.

But first, our top story tonight. A dramatic day of testimony in the Martha Stewart trial. Stewart's close friend took the stand, and what she said may be very damaging to Stewart's defense.

CNN's Deborah Feyerick reports.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): A day or two after Martha Stewart sold her ImClone stock, she and her good friend, Marianna Pasternak, were standing on the terrace of their hotel suite in Mexico. Friends for 20 years, they began talking about what others were doing for the Christmas holiday.

Pasternak testified she asked about their friend Sam Waksal, CEO of ImClone. "I remember Martha saying that Sam was walking funny at a Christmas party. That he was selling or trying to sell his stock. That his daughter was trying to sell her stock, and Merrill Lynch didn't sell."

Asked by prosecutors what else Stewart said, Pasternak testified that "his stock was going down or went down, and I sold mine." In a later conversation, Pasternak recalled Stewart saying, "Isn't it nice to have brokers tell you these things?"

Stewart's lawyers said that conversation was out of context. The lawyer did not have time to cross-examination Pasternak before the day ended.

Earlier, an ink expert with the Secret Service testified about a worksheet showing Stewart's portfolio. "The notation about $60 next to ImClone," he said, "was the only marking written this a different ink." Prosecutors accuse broker Peter Bacanovic of adding the figure to back up his story that he and Stewart had agreed to sell the stock if it fell below $60. Defense attorneys did their own tests and found a dash next to another stock, Apple, was written in a different ink.

(END VIDEOTAPE)

FEYERICK: Bacanovic's lawyers say that's important, pointing out that in December of 2001, Bacanovic and Stewart had -- were planning on selling several stocks. Apple was one of them, ImClone was another -- Anderson.

COOPER: All right. It is all in the ink. All right. Deborah Feyerick, thanks very much.

More allegations of corporate wrongdoing. Prosecutors netting a big fish today. Former CEO Jeffrey Skilling of Enron arraigned on three dozen criminal charges that include securities fraud and insider trading. There he is.

Skilling pled not guilty. He's accused of leading a massive conspiracy to destroy the company, shook the faith of corporate America. His lawyer denies the allegations.

(BEGIN VIDEO CLIP)

DANIEL PETROCELLI, SKILLING'S ATTORNEY: Jeff Skilling has nothing to hide. He did not steal. He did not lie. He did not take anyone's money.

(END VIDEO CLIP)

COOPER: Well, another big story, the University of Colorado sex scandal. The football coach suspended after making disparaging remarks about a woman who says she was raped by a teammate. Now, late this afternoon, there were more allegations of sexual misconduct surfacing, bringing the total to six.

CNN's Josie Burke has details.

(BEGIN VIDEOTAPE)

JOSIE BURKE, CNN SPORTS CORRESPONDENT (voice-over): A day after the University of Colorado placed football coach Gary Barnett on paid administrative leave, another allegation surfaced involving sexual assault and a Colorado football player. The Boulder Police released a report detailing an active investigation into an incident that allegedly occurred in August 2002. In it, a Colorado student claimed she was assaulted by a football player, and may even have been drugged. Before the latest allegations surfaced on Thursday, a group of former Colorado players went out of their way to express support for Barnett.

CHARLES JOHNSON, FMR. CU QUARTERBACK: He's a guy of high integrity and a guy who I believe in, quite frankly. That's my own independent opinion of Coach Gary Barnett, a guy who has simply, I believe, done the right thing over the course of this time here.

SCOTT NEMETH, FMR. CU FULLBACK: He has faithfully directed the participants in this program to the highest level of integrity and moral discipline. Gary Barnett is an upright, honest, and moral man. And I stand by him as my coach, as my leader, and as my mentor.

BURKE: The players also expressed concern about the damage being done to the current University of Colorado team.

UNIDENTIFIED MALE: Anyone that's affiliated with CU football is being affected. We get bombarded every day with telephone calls. I just want to let -- just make sure that we understand that these kids are great kids, positive kids. They are not villains or rapists.

(END VIDEOTAPE)

BURKE: It is important to note that in none of these instances of alleged assault have any criminal charges been filed.

Also today, we gauged reaction from a very large and important part of this university community. I spoke to a professor who is the head of the Boulder faculty assembly, and she said at this point in time it is important for the faculty to wait, reserve judgment, until that investigative panel completes all of the work it has looking into the athletic department. She also said if there is a major concern for the faculty right now, it is that they get back to a point where academics is of primary importance here at the University of Colorado -- Anderson.

COOPER: All right. Josie Burke live in Boulder. Thanks, Josie.

One of the most startling aspects of sex crimes is how many actually go unreported. Here is a fast fact. According to victims' advocacy groups, in 2001, only 39 percent of rapes and sexual assaults were reported to law enforcement officials. Now, that's about one in every three, according to this group. The most common reasons given by victims for not reporting was the belief that it was a private matter or the fear of reprisal from the assailant.

We're going to have more on this story later on 360. An interview with the former captain of the Colorado University football team that Katie played on, and a former quarterback at CU. We head overseas now. Discovery and denial in Iran. Iranian officials are denying they have the sophisticated uranium centrifuge parts that U.N. nuclear inspectors say they have found. Iran insists its nuclear program is only for peaceful purposes. The White House is not so sure.

Let's get more details from national security correspondent David Ensor.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT (voice-over): Iran has been showing international inspectors its uranium enrichment facilities at (UNINTELLIGIBLE). But senior Bush officials say the uranium enrichment plans and machinery inspectors have now found elsewhere is of a far more sophisticated type than Iran has ever admitted to having.

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: These reports that we are seeing of Iran enriching uranium and possessing more advanced centrifuge designs raise serious concerns.

ENSOR: Officials say the P-2 type centrifuge plans and parts would give Iran a much greater capability to produce bomb-grade uranium.

UNIDENTIFIED MALE: So the P-2 is -- although more difficult to make, is a much more efficient machine, will last much longer and make more enriched uranium.

ENSOR: It was P-2 technology that was found recently in Libya, supplied, officials say, by the black market organization headed by Pakistani scientist A. Q. Khan. U.S. officials say they are not sure where the Iranian plans and parts came from. But the discovery is raising troubling questions.

UNIDENTIFIED MALE: Naturally, it is reasonable to ask if Iran seems to be concealing things why it's doing so. And that, of course, suggested it may have nuclear weapon intentions, which the United States government believes.

RICHARD BOUCHER, STATE DEPT. SPOKESMAN: We have said that we believe that Iran is continuing to hide information from the International Atomic Energy Agency.

ENSOR: IAEA officials declined all comment for this report. And in Tehran, the foreign ministry specifically denied it; a spokesman saying there are no P-2 centrifuges in Iran, neither at civilian or military installations.

(END VIDEOTAPE)

ENSOR: Officials say they expect these new revelations to be part of a report that will go to a board of the IAEA this weekend. Here at the State Department, officials suggest the U.S. may not ask the board to try to convince the U.N. Security Council to take up this matter and punish Iran since the feeling here is that the inspections, rather stringent ones, are going fairly well and should be continued -- Anderson.

COOPER: All right. We'll keep watching. David Ensor, thanks.

Several developments today to tell you about on Iraq. U.N. Secretary-General Kofi Annan is backing the U.S. position on elections, saying Iraq cannot be ready for elections before June 30, but he says power still must be handed over by that date.

Now, the statement came just hours after Paul Bremer, the top U.S. civilian administrator in Iraq, reiterated the possibility of changes and planning for an interim government. But he said the June 30 handover date will hold.

Bremer made some other news today. He said the seven people arrested in a raid that we told you about last night on 360, well, they are not al Qaeda members. Instead, Bremer says the men appear to be Iraqi extremists. Fifteen others were detained in the raid north of Baghdad.

In the Democratic race for the White House, John Kerry picks up two big endorsements today, while John Edwards calls for a debate before Super Tuesday.

On the campaign trail tonight, CNN's Kelly Wallace.

(BEGIN VIDEOTAPE)

KELLY WALLACE, CNN NATIONAL CORRESPONDENT (voice-over): Despite voting for trade deals that big labor believes eliminated millions of jobs in the United States, John Kerry wins the backing of the nation's largest labor organization and its 13 million members.

JOHN SWEENEY, AFL-CIO PRESIDENT: This is a man who will not sign his name to a single trade agreement that does not include worker protections and environmental protections.

WALLACE: That is the key message Kerry's aides want to get out, especially as the senator faces a new challenge from John Edwards, who is making Kerry's support of past trade deals a central part of his campaign.

SEN. JOHN EDWARDS (D-NC), PRESIDENTIAL CANIDIDATE: This is a moral issue and it's about what's right and wrong.

WALLACE: Kerry never mentioned his rival at this rally just down the street from the White House. Instead, acting like the front- runner, he tries to keep the focus on President Bush, ridiculing the administration for backing away from predicting it could create more than two million jobs this year.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: Well, ladies and gentlemen, it just doesn't take a lot of fuzzy math to count to zero.

WALLACE: It was a day of endorsements for Kerry, with long-time civil rights champion Georgia Congressman John Lewis announcing he's behind the Massachusetts senator. For Edwards, in New York and Georgia, it was a day to raise the stakes, challenging his opponent to a series of one-on-one debates.

EDWARDS: I'll go anywhere in America we need to go to debate these issues.

(END VIDEOTAPE)

WALLACE: And a Kerry advisor telling CNN that the senator would be happy to debate Edwards, but adding this, saying it is not up to the Kerry campaign to decide if the other candidates, Dennis Kucinich and Al Sharpton should be left out -- Anderson.

COOPER: All right. Kelly Wallace, thanks for that.

We are following a number of developing stories right now "Cross Country." Let's take a look.

Washington, D.C.: it is the economy. President Bush talks with economic leaders, telling them his tax cuts are working to improve the economy and should be made permanent. Two reports out today suggests the U.S. economy is slowly improving. A drop in new jobless claims and only a slight rise in the index of leading economic indicators.

Nationwide: going nowhere fast. A new study shows traffic bottlenecks have risen 40 percent in the past five years. The worst location, perhaps not a big surprise, Los Angeles, where the Ventura Freeway meets the 405. I've been there. It's not good.

Galveston, Texas: NASA target date changed. Sometime tonight NASA is expected to reveal it's pushing back the next space shuttle flight to next year. NASA officials have told Congress it is doubtful NASA could safely launch the shuttle in September, which is the current target date.

Hollywood, California: more "Passion." Due to high ticket demand, Mel Gibson's controversial movie "The Passion of the Christ" Is now expected to be shown in 2,800 movie theaters nationwide. That is up from 2000. To make that possible, the distributor of the film is making 4,000 copies of the film.

In Vaughan, Mississippi, a family is missing. The FBI has now joined the search for Michael and Rebecca Hargin (ph) and their 4- year-old son, all missing since Saturday. Investigators have found dry blood droplets, shell casings, and what appears to be bullet holes inside the home. Strange story.

That is a look at stories "Cross Country" for you tonight.

Americans again being urged to leave Haiti. And the Haitian president issues a chilling message to rebels. We're going to have a live update on the violence.

And an Ebola virus scare. An Army researcher in isolation. Find out what happened. Plus, a murder victim identified by her breast implants. That gruesome investigation just ahead.

And of course Martha Stewart. We're going to have another update with someone who was inside the courtroom today coming up later on.

First, let's take a look "Inside the Box" at the top stories on tonight's network newscasts.

(COMMERCIAL BREAK)

COOPER: Well, it is getting much worse in Haiti. The State Department urges Americans to leave the country now. And the Pentagon says it is going to send a small military team to the American Embassy in Port-au-Prince to determine the ambassador's safety. As the violence rages, Haiti's president issued a do-or-die ultimatum today.

CNN's Lucia Newman is in Port-au-Prince with the latest.

(BEGIN VIDEOTAPE)

LUCIA NEWMAN, CNN CORRESPONDENT (voice-over): Police stood at attention as President Jean-Bertrand Aristide paid homage to the 17 policemen killed in towns taken over my armed militants in northern Haiti. Ignoring any suggestion that he resign, Aristide called on Haiti's small and ill-trained police force to be brave.

"The terrorists are here," he said, "but not better armed than you. You have the constitution as your compass, and democratic values as your weapons."

In rebel-controlled (UNINTELLIGIBLE), the feared former police chief of Cap-Haitien, De Phillipe (ph), vowed to soon return to Haiti's second largest city to liberate it. In Cap-Haitien, police admit they're afraid, while armed supporters vowed to fight to the death. Calling the rebels "puny terrorists," Aristide accused them of using psychological warfare to spread fear, and he sent a message in English to the international community.

JEAN-BERTRAND ARISTIDE, PRESIDENT OF HAITI: Today, we ask to not pay attention to the lies, but to pay attention to the truth.

NEWMAN: But Aristide's political foes say he has no moral authority to talk about defending democracy. "Aristide promised us justice, transparency and participation," says Evan Paul (ph). "He gave us violence, corruption and lies."

And even his workers hurry to build stands for the upcoming carnival. The uncertainty over Haiti's future grows.

(END VIDEOTAPE)

NEWMAN: Clearly worried, the United States, Canada and France plan to send a delegation of emissaries here to Port-au-Prince on Saturday to try to pressure President Aristide into complying with an agreement he made with (UNINTELLIGIBLE) for a political settlement to this crisis, which includes naming a new prime minister. It is not clear though, Anderson, whether even if he does comply, whether the opposition will settle for anything less than his resignation.

COOPER: It's been a long day. Lucia Newman, thanks very much from Port-au-Prince.

A quick news note about upheaval in Haiti. It is all too familiar. A stunning statistic for you.

There have been 32 coup d'etats since Haiti's independence 200 years ago. Thirty-two. The last successful one in 1991, when the first democratically elected president, Jean-Bertrand Aristide, was toppled by military officers.

Aristide, of course, was brought back to power in 1994, thanks to a U.S.-led military operation. Two years later he transferred power peacefully. Aristide was reelected in 2000, but the international community contested the ballot.

(COMMERCIAL BREAK)

COOPER: Now the story of a young Iraqi boy with a bullet stuck in his head. Now, we told you about him on 360 a month ago. Our story moved many of our viewers, including members of the Greek government, who first saw the report on CNN. And because of the coverage, this story now has a happy ending.

Here is CNN's Brent Sadler.

(BEGIN VIDEOTAPE)

BRENT SADLER, CNN CORRESPONDENT (voice-over): A mercy flight home for a casualty of war. A small boy, 4-year-old Baqar Ali Hussein (ph), returns to Baghdad from Greece where surgeons removed a bullet from his head.

Now a happy boy on the mend with his mom and dad. "I'm lost for words," says his father Ali. "The bullet is gone and we're back home." Baqar Ali (ph) had lived with the bullet wedged in bone at the base of his skull for some seven months. He was hit by a stray round near his backyard when American troops responded to an attack.

Baqar Ali (ph) was condemned to a life of disability before the operation. He couldn't walk, talk, hear, or see properly. But Greek authorities took pity and stepped in, footing the medical bill.

UNIDENTIFIED MALE: I'm very happy to see that a small miracle has occurred. I couldn't believe that, well, you can remove a bullet and he can survive and look that much better.

SADLER: So much better that he answers our questions with hugs and kisses.

(on camera): Tell me about the airplane. What did you like?

(voice-over): Proud parents listen for his response. "It was an American plane," says Baqar Ali (ph) happily. But it was Greek doctors who came to his rescue.

UNIDENTIFIED MALE: I hope some other nations will help the Iraqi kids who suffer from similar cases or from some diseases.

SADLER: In the dusty street where he lives, it's time to celebrate. Baqar Ali (ph) is showered with sweets and wrapped in the arms of his loving grandparents in floods of tears.

Brent Sadler, CNN, Baghdad.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

COOPER (voice-over): Does the ink talk? The government uses a pen to prove its case against Martha Stewart.

And Colorado's campus in chaos. The fallout from rape charges.

360 continues.

(COMMERCIAL BREAK)

COOPER: In the next half hour on 360 the Colorado University sex scandal. More allegations and now some former players are speaking out live right here.

Also, the Martha Stewart trial. Surprising testimony from Stewart's close friend. That ahead in "Justice Served."

And A woman found murdered. Wait until you hear how investigators IDed her body.

First, our top stories in tonight's "Reset."

Port-Au-Prince, Haiti getting worse. The U.S. State Department tells American citizens, get out now to ensure your safety. At the same time, a small U.S. military team is on the way to assess the risk for workers and the ambassador at the embassy in Port-Au-Prince.

Washington. Kerry gets endorsement. The AFL-CIO, the nation's biggest labor group endorsed John Kerry in his bid for the presidency. The organization represents 13 million people in 64 separate unions.

Also in Washington. Critical scientists. More than 60 scientists, including 20 Nobel Laureats accused the Bush administration of, quote, "manipulating and censoring research at federal agencies for political purposes." The White House scientific adviser dismisses the 46-page report calling it, quote, "like a conspiracy theory."

Boulder, Colorado. Allegations of assault. Accusations of at least six cases of rape by Colorado University football players or recruits has led to a widening investigation. The head coach, Gary Barnett, was put on paid leave indefinitely after he called a female place kicker who accused a player of rape, quote, "awful player." That's a quick look at the "Reset."

Want to continue our discussion of the Colorado football scandal right now. You're going to recall that Katie Hnida said she was raped by a teammate and molested by players when she was on the team back in 1999. Joining us from Boulder, Ryan Yohanningsmeier, who was the football captain that year. Also from Boulder, Charles Johnson, he was a quarterback for the University of Colorado from 1987 to 1991.

Gentlemen, appreciate you joining me. Ryan, I want to start off with you and I want to start off by reading something from "Sports Illustrated" about what this young woman said happened to her, Katie Hnida. She says, and I quote, this is the writer, Rick Reilly, "sometimes when the entire team was huddled up, Hnida says, players stuck their hands on her crotch or groped her breast under her shoulder pads. She endured more abuse than one person should have to bear." Former teammate Justin (UNINTELLIGIBLE) says, the allegation goes on, she says at one point people were rubbing up against her with their private parts. Did you see anything like this happening to her?

RYAN JOHANNINGMEIER, 1999 CAPTAIN, CU FOOTBALL TEAM: No. This comes as a surprise to me. I didn't bear witness to anything like this.

COOPER: No groping?

YOHANNINGMEIER: No groping.

COOPER: No flashing?

YOHANNINGMEIER: This is a shock to me but I think these allegations are very serious, especially the allegations of rape that are stated later on in this article. This is a situation where these allegations without an individual named kind of fall on top of the whole university. I would personally like to see her go to the authorities with this because I would like to see this individual, if guilty, prosecuted because unless this falls on top of the whole athletic program, there's so many good people there.

COOPER: Well, Ryan, it sounds like it is not just an individual. The rape allegation is related to one individual. It sounds like -- if these are true, that there was a culture on this team at this time that encouraged this sort of thing. Tell me about the culture of the team. Was there verbal abuse? I read a story that someone threw a football at her head. You have people rubbing their genitals on this woman, allegedly.

YOHANNINGMEIER: Allegedly. Exactly. I personally did not see it, did not hear about it or hear any stories. I think that that's -- I don't know what to say about that. I didn't hear anything. Now as far as verbal abuse, I think we've all been called names on the field. If you watch NFL films, things get bleeped out constantly. However, in one instance, I think things go a little personal, one player in particular was to blame for this one, he was verbally reprimanded by Coach Barnett in front of the team and that player was made an example of. Again, Barnett reminded us that this young lady is here on the team to play. She's to be treated with respect... COOPER: OK, I want, want to bring in Charles here. I don't want to leave him out of this. Charles, I know you weren't on the team at the time this woman was on the team so I'm not going to ask you directly about her. You spoke publicly today about Coach Barnett. You said he was a person of high moral integrity. I want to ask you, there are a lot of rape allegations, up to six now or five now, relating to these recruitment parties that happened on campus and have been happening for quite some time, allegations that there were strippers at these parties, escorts, there's even one recruiting assistant who apparently had a cell phone given to him that was used to call an escort service. He says it wasn't in relation to these parties. Were these recruiting parties happening? Do you know about them? Did you go to them?

CHARLES JOHNSON, FMR. CU QUARTERBACK: Well, Anderson, I think it is important to sort of -- let's speak to the facts of this situation. I was a recruit as well as a recruiter once here at the University of Colorado. And even with respect to the allegations made now, nothing is claimed to have happened at a recruiting party. In fact, the 2001 allegation in which the D.A. investigated wasn't a recruiting party, it was a party that a young lady had off campus.

COOPER: Well, I'm not even talking about specifically about these allegations though. I'm talking about these recruitment parties. Were there hookers at these parties? Were there strippers?

JOHNSON: Well, again, you're talking about recruiting parties. I've never been to a recruiting party or a party specifically for recruits once I was on campus. I've never heard of any happening. Generally students, recruits go to parties that are happening on campus or off campus that not football players nor recruits are hosting.

COOPER: All right. We're going to have to leave it there. Charles Johnson, Ryan Yohanningmeier, we appreciate you joining us. This story is obviously not going away anytime soon. Thank you very much.

Tonight on "LARRY KING LIVE," Lary's guest is the suspended University of Colorado football coach, Gary Barnett. You will hear from him. What he says about all this.

Now to the same-sex marriage controversy. After allowing more than 2,700 gay and lesbian couples to marry over the weekend, the San Francisco city government now says it is filing suit against the state of California. The city is challenging the state's ban on same-sex marriages. David Mattingly has got more on the story.

DAVID MATTINGLY, CNN CORRESPONDENT: Anderson, the city attorney in San Francisco saying that he wants to file suit against the state of California to force a constitutional argument into the courts about the legalty of same-sex couples being allowed to marry in the state of California. They are aiming at the law that defines marriage as between one man and one woman. The state also wants to consolidate all the lawsuits that have been filed in this case so far into one big lawsuit, one case that everyone says will have a long life in the courts here.

(BEGIN VIDEO CLIP)

DENNIS HERRERA, SAN FRANCISCO CITY ATTORNEY: First, it violates the equal protection clause of the California constitution and, secondly, it violates the due process clause of the California constitution by not giving equal opportunity to eligible same-sex couples.

(END VIDEO CLIP)

MATTINGLY: Among the "I dos" and the long lins that we saw here again at City Hall, there was a brief protest. About ten young men singing religious songs attempted to block the doors of the office where marriage licenses were being issued as the county deputies escorted them away, all of the would be newlyweds in line applauded and sang the "Star Spangleed Banner." So emotions continuing to running high here at San Francisco City Hall as this issue goes back into court tomorrow -- Anderson.

COOPER: All right. David Mattingly, thanks for that. Apparently, what is good for San Francisco is also good for Chicago. Mayor Richard Daley of Chicago is quoted as saying he had, quote, "no problem if Cook County began issuing same-sex marriage licenses." Regarding gay marriages, he said and I quote, "they love each other just as much as anyone else."

President Bush on the other hand apparently will soon publicly endorse a constitutional amendment banning gay marriage. Bush's political director Karl Rove told a group of conservatives recently that the president will fight for the planned amendment.

In the race for the White House, both John Edwards and John Kerry would like to get Howard Dean's support. No surprise about that. Both have contacted the Vermont governor, which is typical in raw politics.

(BEGIN VIDEOTAPE)

COOPER (voice-over): It wasn't all that long ago that John Kerry and John Edwards were taking shots at then front-runner Howard Dean.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: When you were asked by the "Concord Monitor" about Osama bin Laden, you said we couldn't prejudge his guilt for September 11. What in the world were you thinking.

When I was fighting to ban assault weapons in 1992 and 1993 Howard Dean was appealing to the NRA for their endorsement and he got it.

SEN. JOHN EDWARDS (D-NC), PRESIDENTIAL CANDIDATE: Let me tell you the last thing we need in the south, is somebody like you coming down and telling us what we need to do. That's the last thing in the world we need in the south.

COOPER: That was then. This is now.

EDWARDS: I have a very good relationship with Governor Dean. I have enormous respect for him. I think he has been a real force and a positive force in this campaign.

KERRY: He has done an extraordinary job of invigorating a whole group of people who were divorced from the political process.

COOPER: My, oh, my. What a difference Dean's dropout makes. One-time competitors, newfound friends. That is raw politics.

(END VIDEOTAPE)

COOPER: All right. The Martha Stewart trial. A close friend takes the stand and the testimony -- a lot of people said it was damaging. We are going to have an inside report on that.

Plus, love and marriage on reality TV. We're not so sure about that. It is more like overkill. That's ahead coming up.

(COMMERCIAL BREAK)

COOPER: Dramatic testimony in the Martha Stewart trial. A close friend was on the stand and a lot to talk about ink. We're going to explain. Joining us, Court TV anchor, Lisa Bloom and Celebrity Justice correspondent Carolina Buia. Both were in the courtroom today. Thanks very much for you being with us.

Lisa, I want to start with you. You saw the testimony of Martha Stewart's closest friend of 20 years, Mariana Pasternak. What she said was pretty damaging.

LISA BLOOM, COURT TV: Absolutely, Anderson. Let's start out with how she looked. Just a gorgeous woman, drop beautiful, from her auburn bob to her perfectly tailored little suit.

COOPER: I don't even know what an auburn bob is, frankly. Go on. It doesn't matter.

BLOOM: You do know, what it is, Anderson.

COOPER: What did she say? Why was it so damaging?

BLOOM: More importantly, what she said was three days after the important date of December 27, the date in which Martha supposedly had the conversation with Faneuil about the stock, three days later Pasternak And Martha Stewart are in a beautiful hotel in Mexico. And they're talking and they asked about their friends over the holidays, what is everyone doing.

Pasternak asked about Martha Stewart, what about Sam Waksal? What's he been doing? And Martha Stewart says that he has dumped all of his stock in Imclone. The daughter has sold all of her stock. And she said, and I Martha Stewart tried to get rid of all of my stock.

And the clincher line, the real headline of the night is, Martha saying to her best friend, isn't it nice to have brokers who tell you those things. With that, the day ended. The jury goes home to think about that overnight.

COOPER: And so what a thing to think about.

CAROLINA BUIA, CELEBRITY JUSTICE CORRESPONDENT: And how ironic that the two people implicating Martha the most are her best friend and assistant, Annie Armstrong.

COOPER: There was a lot of testimony about ink as well. Why is this significant? I mean, this guy from the Secret Service testified. What does it all mean?

BLOOM: Because Martha Stewart and Peter Bacanovic claim that they had a preexisting agreement to sell Imclone at 60. So Peter Bacanovic has a work sheet with a number of stocks that Martha Stewart owned and was going to sell. And there's ink all over it. But next to Imclone it says at 60. And this man from the secret service said the ink was different. And in fact, he didn't know where this ink came from. He's got a catalog of over 8,000 different inks. And he has no idea where this mysterious ink came from.

COOPER: How did the jury, you think, respond to that?

BLOOM: The jury's is very attentive, they're watching very closely. They're certainly taking it all in. But I think, Anderson, at the end of the day, after all of this technical information about the ink, hearing the best friend come forward and testify against Martha Stewart, it was a dynamite end to the day.

COOPER: The prosecution is really almost about to rest their case. Probably tomorrow.

BLOOM: A couple more witnesses.

BUIA: Faneuil's friends.

COOPER: Do you think Martha Stewart will get on the stand in her own defense?

BLOOM: I think she has to get on the stand.

COOPER: Really? Why?

BLOOM: To see a human face -- well her best friend has basically corroborated the government's story that she lied. So, Martha needs to say either her words were misunderstood, or I don't know how she's going to get out of it -- or maybe change her story and offer everybody her famous plum pudding. Something needs to be done.

BUIA: I agree. I think she has to testify, Anderson. I think the prosecution has put forward a Prima Fasciae case. They've established all of the elements that they have to show. The defense needs something to counteract that.

And the jury is going be thinking, why didn't Martha Stewart look us in the eye and tell us that her best friend was wrong, that Douglas Faneuil was wrong, that her assist want was wrong. I think that she needs to do that.

COOPER: All right. Lisa Bloom, Carolina Buia, thanks very much. It was great.

Well, every Thursday, we look at a subject that has been all over the airwaves -- way too much all over. Tonight's overkill is marriage. Not the same-sex kind. The reality show kind.

(BEGIN VIDEOTAPE)

COOPER (voice-over): Turn on your TVs and it seems marriage is breaking out all over. The way it's being shown, marriage seems anything but sacred.

Take the littlest groom, please. On this tacky TV show, marriage is a prize. A little bachelor dates little women and some taller women in search of the perfect bride. How better to make the point that marriage is sacred than to put it to the height test.

On MTV, marriage is a career boost. Newlyweds Jessica Simpson and Nick Lachey have been such a hit for the network, MTV is now following the nuptials of Jane's Addiction member Dave Navarro and former Mrs. Dennis Rodman, Carmen Electra.

On "My Big Fat Obnoxious Fiance," marriage has turned into a threat. Each week, millions of viewers are tuning in to see a family torn apart by their daughter's fake marriage to a, well, a big fat obnoxious guy.

Family values? It seems we can't get enough.

UNIDENTIFIED MALE: I Trista, take you, Ryan...

COOPER: A lot of people worried marriage may be threatened. On reality TV, it is being overkilled right before our eyes.

(END VIDEOTAPE)

All right. Well, two brothers in New York are fighting a rare and puzzling disorder. It effects every organ in their bodies, yet they never complain. It's a remarkable story. Our medical correspondent, Dr. Sanjay Gupta at CNN center has the details. Good evening, Sanjay.

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: Good evening, Anderson. There are many mysteries in medicine, scientists always searching for the answers, sometimes searching very hard, such as the case with Wyatt and Daulton.

Wyatt and Daulton 2 little boys out of New York -- go ahead with Wyatt.

(BEGIN VIDEOTAPE) GUPTA (voice-over): ...his mother miscarried nine times. One of his brothers, 4-year-old Daulton, couldn't talk, was hooked to oxygen and fed through a tube. And worst of all, doctors couldn't pinpoint the problem.

VICKI EISENHARDT, MOTHER: He would gasp for breath, nasally sounding. He would stop breathing. I knew something wasn't right. I took him to the pediatrician about 18 times and just like an 8 week time.

GUPTA: Finally, when Vicki was 7 months pregnant with Wyatt, a test revealed a genetic abnormality that likely was the problem with the miss carriages and Daulton.

DR. LINDA BROADSKY, CHILDREN'S HOSPITAL OF BUFFALO: We found a chromosomal abnormality that clued us into we knew we were in for a roller coaster ride with this young man.

GUPTA: The culprit in the boys was an unbalanced chromosome. Two chromosomes had switched a microscopic piece of genetic material. It occurs in one of every 2,000 births. It is called a translocation. It made all the difference. Because the chromosome switches can vary, almost every child will have different symptoms. But not these two.

DR. FRANCIS COLLINS, NATIONAL HUMAN GENOME RESEARCH INSTITUTE: These two boys have exactly the same situation because they inherited this from their mother. But you could look the world over and not find another situation exactly like those two.

GUPTA: At 4 years old, Daulton has had 19 operations and 34 hospitalizations. Wyatt, in just 24 months of life has spent 100 days in. ICU and has been hospitalized 11 different times. There is no cure for these two boys. Yet scientists may learn lessons from them. Their parents already have.

EISENHARDT: They're amazing. All they've been through. They just look up at you and smile.

(END VIDEOTAPE)

GUPTA: And doctors say, Anderson, as well, it is hard to say how these boys will do or even how long they will live. But as you can see, they and the parents both have a strong will. Also, it is expensive to take care of these boys. They have an address, in case anybody watching wants to donate money. You can see the address there, The Eisenhardt Children's Fund. The address there, Anderson. Back to you.

COOPER: Amazing story. Dr. Sanjay Gupta, thanks.

Still to come this evening, a woman missing for almost a year is found dead. You won't believe how authorities identified her. We'll talk about that coming up.

Also tonight, "The Current" takes a look at what's going on on TV. Donald Trump's show is big and may just be getting bigger. We'll talk that coming up.

(COMMERCIAL BREAK)

COOPER: All right, it's Time to check on some pop news in tonight's "Current."

TV executives want to raise the stakes for "The Apprentice" by making losing even more painful and traumatic for the contestants. Not only will they be fired by Donald Trump, rumors are they will have to touch his hair.

Outkast may be hitting the big screen. The Grammy Award winning rap duo are reportedly working on a movie. The director says it will be a cross between "The Color Purple" and "Amelie." If so, we have a suggested title, "Career Suicide."

The final episode of "Sex in the City" is this Sunday. Fans, don't worry. Can you get your dose of sass and gossip, cosmopolitans on "Queer Eye For the Straight Guy."

And book makers are taking bets Academy Awards, odds that is "Mystic River" will win best picture 6 to 1. odd Naomi Watts will win best actress 20 to 1. And Colin Farrell will leave the show with a different woman than he arrived with, that my friends is guaranteed.

All right, lets turn now to a bizarre murder mystery. The remains of a 35-year-old bank analyst missing since May were found in New Jersey identified they police say through her breast implants.

We get more from CNN's Gary Tuchman.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN CORRESPONDENT (voice-over): The new owner of this house talking about a more bid discovery there.

UNIDENTIFIED MALE: It's shocking, very shocking.

TUCHMAN: A body was found in a suit there is case buried under concrete outside the home. Authorities say a fugitive wanted for posing as a doctor may have buried the woman in what was his old residence. Law enforcement say that man is Dean Faiello now believed to be on the lam in Costa Rica after allegedly flee following pleading guilty for practicing without a medical license. Thirty-five year old Maria Cruz had gone to him for a medical procedure.

ORLANDO CASTILLO, VICTIM'S COUSIN: She had some problem with her tongue. There is some allergic reaction.

TUCHMAN: that was April 2003. Maria who lived in Manhattan was never seen again. Now, based on identification that included her breast implants, authorities believe it was Maria who was buried in the concrete. Their theory, that she may have died after a botched medical procedure.

CASTILLO: We want justice. That's the only thing that we hope for.

TUCHMAN: Maria Cruz was a financial analyst for Barclay's Capital. Police said they did interview the phony doctor regarding the disappearance, but was not considered a suspect. But after the state attorney's general office investigated Faiello had concrete delivered to his old residence around the time of the disappearance, police got permission from the new owner to dig. Her family members are doing their best to cope.

JOSE HAVARRO, VICTIM'S UNCLE: I know I wanted closure, but this is not the closure I wanted.

TUCHMAN: Gary Tuchman, CNN.

(END VIDEOTAPE)

COOPER: Just ahead, unrest in Haiti. A little country with big problems. We'll take that to the "Nth Degree."

And tomorrow, "Sex and The City" from the male perspective. A star from the show joins us with his take on the finale.

(COMMERCIAL BREAK)

COOPER: Tonight taking Haiti to the "Nth Degree." In an age when the U.S. faces problems at home and abroad, it is easy to forget about the small ones. Haiti is a very small country, but its problems are getting bigger every day. Armed gangs have taken over whole cities. Legitimate opposition figures have gone into hiding, people are suffering. That, of course, is nothing new in Haiti. Unemployment, illiteracy, poverty are a way of life. Whether it is his own fault or not, President Aristide has done little to improve things. The country is a hub for drug traffickers shipping cocaine to America. A new tide of refugees in rickety rafts may soon wash up on our shores. It is easy to ignore the suffering in Haiti, easy to forget a neighbor's problems can quickly become our own.

I'm Anderson Cooper, thanks for watching. Coming up next "PAULA ZAHN NOW."

END

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Football Scandal; Iran Denies Possessing Nuclear Centrifuges>


Aired February 19, 2004 - 19:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)
ANDERSON COOPER, HOST (voice-over): Covert nuclear technology and the Iranian military, what were they trying to hide?

The hell in Haiti gets hotter. Is the U.S. preparing to send in troops?

Proof and the pen. Why the government thinks two kinds of ink may prove its case against Martha Stewart.

Colorado's campus in chaos. The fallout from rape charges.

A woman murdered, buried in concrete. Who's the fake doctor on the lam?

And the remarkable rescue of a Baghdad boy shot in the head.

(END VIDEOTAPE)

ANNOUNCER: Live from the CNN Broadcast Center in New York, this is ANDERSON COOPER 360.

COOPER: And good evening. Welcome to 360.

New allegations of sexual assault involving University of Colorado football players. A sixth woman comes forward. Details ahead in a live report.

But first, our top story tonight. A dramatic day of testimony in the Martha Stewart trial. Stewart's close friend took the stand, and what she said may be very damaging to Stewart's defense.

CNN's Deborah Feyerick reports.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): A day or two after Martha Stewart sold her ImClone stock, she and her good friend, Marianna Pasternak, were standing on the terrace of their hotel suite in Mexico. Friends for 20 years, they began talking about what others were doing for the Christmas holiday.

Pasternak testified she asked about their friend Sam Waksal, CEO of ImClone. "I remember Martha saying that Sam was walking funny at a Christmas party. That he was selling or trying to sell his stock. That his daughter was trying to sell her stock, and Merrill Lynch didn't sell."

Asked by prosecutors what else Stewart said, Pasternak testified that "his stock was going down or went down, and I sold mine." In a later conversation, Pasternak recalled Stewart saying, "Isn't it nice to have brokers tell you these things?"

Stewart's lawyers said that conversation was out of context. The lawyer did not have time to cross-examination Pasternak before the day ended.

Earlier, an ink expert with the Secret Service testified about a worksheet showing Stewart's portfolio. "The notation about $60 next to ImClone," he said, "was the only marking written this a different ink." Prosecutors accuse broker Peter Bacanovic of adding the figure to back up his story that he and Stewart had agreed to sell the stock if it fell below $60. Defense attorneys did their own tests and found a dash next to another stock, Apple, was written in a different ink.

(END VIDEOTAPE)

FEYERICK: Bacanovic's lawyers say that's important, pointing out that in December of 2001, Bacanovic and Stewart had -- were planning on selling several stocks. Apple was one of them, ImClone was another -- Anderson.

COOPER: All right. It is all in the ink. All right. Deborah Feyerick, thanks very much.

More allegations of corporate wrongdoing. Prosecutors netting a big fish today. Former CEO Jeffrey Skilling of Enron arraigned on three dozen criminal charges that include securities fraud and insider trading. There he is.

Skilling pled not guilty. He's accused of leading a massive conspiracy to destroy the company, shook the faith of corporate America. His lawyer denies the allegations.

(BEGIN VIDEO CLIP)

DANIEL PETROCELLI, SKILLING'S ATTORNEY: Jeff Skilling has nothing to hide. He did not steal. He did not lie. He did not take anyone's money.

(END VIDEO CLIP)

COOPER: Well, another big story, the University of Colorado sex scandal. The football coach suspended after making disparaging remarks about a woman who says she was raped by a teammate. Now, late this afternoon, there were more allegations of sexual misconduct surfacing, bringing the total to six.

CNN's Josie Burke has details.

(BEGIN VIDEOTAPE)

JOSIE BURKE, CNN SPORTS CORRESPONDENT (voice-over): A day after the University of Colorado placed football coach Gary Barnett on paid administrative leave, another allegation surfaced involving sexual assault and a Colorado football player. The Boulder Police released a report detailing an active investigation into an incident that allegedly occurred in August 2002. In it, a Colorado student claimed she was assaulted by a football player, and may even have been drugged. Before the latest allegations surfaced on Thursday, a group of former Colorado players went out of their way to express support for Barnett.

CHARLES JOHNSON, FMR. CU QUARTERBACK: He's a guy of high integrity and a guy who I believe in, quite frankly. That's my own independent opinion of Coach Gary Barnett, a guy who has simply, I believe, done the right thing over the course of this time here.

SCOTT NEMETH, FMR. CU FULLBACK: He has faithfully directed the participants in this program to the highest level of integrity and moral discipline. Gary Barnett is an upright, honest, and moral man. And I stand by him as my coach, as my leader, and as my mentor.

BURKE: The players also expressed concern about the damage being done to the current University of Colorado team.

UNIDENTIFIED MALE: Anyone that's affiliated with CU football is being affected. We get bombarded every day with telephone calls. I just want to let -- just make sure that we understand that these kids are great kids, positive kids. They are not villains or rapists.

(END VIDEOTAPE)

BURKE: It is important to note that in none of these instances of alleged assault have any criminal charges been filed.

Also today, we gauged reaction from a very large and important part of this university community. I spoke to a professor who is the head of the Boulder faculty assembly, and she said at this point in time it is important for the faculty to wait, reserve judgment, until that investigative panel completes all of the work it has looking into the athletic department. She also said if there is a major concern for the faculty right now, it is that they get back to a point where academics is of primary importance here at the University of Colorado -- Anderson.

COOPER: All right. Josie Burke live in Boulder. Thanks, Josie.

One of the most startling aspects of sex crimes is how many actually go unreported. Here is a fast fact. According to victims' advocacy groups, in 2001, only 39 percent of rapes and sexual assaults were reported to law enforcement officials. Now, that's about one in every three, according to this group. The most common reasons given by victims for not reporting was the belief that it was a private matter or the fear of reprisal from the assailant.

We're going to have more on this story later on 360. An interview with the former captain of the Colorado University football team that Katie played on, and a former quarterback at CU. We head overseas now. Discovery and denial in Iran. Iranian officials are denying they have the sophisticated uranium centrifuge parts that U.N. nuclear inspectors say they have found. Iran insists its nuclear program is only for peaceful purposes. The White House is not so sure.

Let's get more details from national security correspondent David Ensor.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT (voice-over): Iran has been showing international inspectors its uranium enrichment facilities at (UNINTELLIGIBLE). But senior Bush officials say the uranium enrichment plans and machinery inspectors have now found elsewhere is of a far more sophisticated type than Iran has ever admitted to having.

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: These reports that we are seeing of Iran enriching uranium and possessing more advanced centrifuge designs raise serious concerns.

ENSOR: Officials say the P-2 type centrifuge plans and parts would give Iran a much greater capability to produce bomb-grade uranium.

UNIDENTIFIED MALE: So the P-2 is -- although more difficult to make, is a much more efficient machine, will last much longer and make more enriched uranium.

ENSOR: It was P-2 technology that was found recently in Libya, supplied, officials say, by the black market organization headed by Pakistani scientist A. Q. Khan. U.S. officials say they are not sure where the Iranian plans and parts came from. But the discovery is raising troubling questions.

UNIDENTIFIED MALE: Naturally, it is reasonable to ask if Iran seems to be concealing things why it's doing so. And that, of course, suggested it may have nuclear weapon intentions, which the United States government believes.

RICHARD BOUCHER, STATE DEPT. SPOKESMAN: We have said that we believe that Iran is continuing to hide information from the International Atomic Energy Agency.

ENSOR: IAEA officials declined all comment for this report. And in Tehran, the foreign ministry specifically denied it; a spokesman saying there are no P-2 centrifuges in Iran, neither at civilian or military installations.

(END VIDEOTAPE)

ENSOR: Officials say they expect these new revelations to be part of a report that will go to a board of the IAEA this weekend. Here at the State Department, officials suggest the U.S. may not ask the board to try to convince the U.N. Security Council to take up this matter and punish Iran since the feeling here is that the inspections, rather stringent ones, are going fairly well and should be continued -- Anderson.

COOPER: All right. We'll keep watching. David Ensor, thanks.

Several developments today to tell you about on Iraq. U.N. Secretary-General Kofi Annan is backing the U.S. position on elections, saying Iraq cannot be ready for elections before June 30, but he says power still must be handed over by that date.

Now, the statement came just hours after Paul Bremer, the top U.S. civilian administrator in Iraq, reiterated the possibility of changes and planning for an interim government. But he said the June 30 handover date will hold.

Bremer made some other news today. He said the seven people arrested in a raid that we told you about last night on 360, well, they are not al Qaeda members. Instead, Bremer says the men appear to be Iraqi extremists. Fifteen others were detained in the raid north of Baghdad.

In the Democratic race for the White House, John Kerry picks up two big endorsements today, while John Edwards calls for a debate before Super Tuesday.

On the campaign trail tonight, CNN's Kelly Wallace.

(BEGIN VIDEOTAPE)

KELLY WALLACE, CNN NATIONAL CORRESPONDENT (voice-over): Despite voting for trade deals that big labor believes eliminated millions of jobs in the United States, John Kerry wins the backing of the nation's largest labor organization and its 13 million members.

JOHN SWEENEY, AFL-CIO PRESIDENT: This is a man who will not sign his name to a single trade agreement that does not include worker protections and environmental protections.

WALLACE: That is the key message Kerry's aides want to get out, especially as the senator faces a new challenge from John Edwards, who is making Kerry's support of past trade deals a central part of his campaign.

SEN. JOHN EDWARDS (D-NC), PRESIDENTIAL CANIDIDATE: This is a moral issue and it's about what's right and wrong.

WALLACE: Kerry never mentioned his rival at this rally just down the street from the White House. Instead, acting like the front- runner, he tries to keep the focus on President Bush, ridiculing the administration for backing away from predicting it could create more than two million jobs this year.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: Well, ladies and gentlemen, it just doesn't take a lot of fuzzy math to count to zero.

WALLACE: It was a day of endorsements for Kerry, with long-time civil rights champion Georgia Congressman John Lewis announcing he's behind the Massachusetts senator. For Edwards, in New York and Georgia, it was a day to raise the stakes, challenging his opponent to a series of one-on-one debates.

EDWARDS: I'll go anywhere in America we need to go to debate these issues.

(END VIDEOTAPE)

WALLACE: And a Kerry advisor telling CNN that the senator would be happy to debate Edwards, but adding this, saying it is not up to the Kerry campaign to decide if the other candidates, Dennis Kucinich and Al Sharpton should be left out -- Anderson.

COOPER: All right. Kelly Wallace, thanks for that.

We are following a number of developing stories right now "Cross Country." Let's take a look.

Washington, D.C.: it is the economy. President Bush talks with economic leaders, telling them his tax cuts are working to improve the economy and should be made permanent. Two reports out today suggests the U.S. economy is slowly improving. A drop in new jobless claims and only a slight rise in the index of leading economic indicators.

Nationwide: going nowhere fast. A new study shows traffic bottlenecks have risen 40 percent in the past five years. The worst location, perhaps not a big surprise, Los Angeles, where the Ventura Freeway meets the 405. I've been there. It's not good.

Galveston, Texas: NASA target date changed. Sometime tonight NASA is expected to reveal it's pushing back the next space shuttle flight to next year. NASA officials have told Congress it is doubtful NASA could safely launch the shuttle in September, which is the current target date.

Hollywood, California: more "Passion." Due to high ticket demand, Mel Gibson's controversial movie "The Passion of the Christ" Is now expected to be shown in 2,800 movie theaters nationwide. That is up from 2000. To make that possible, the distributor of the film is making 4,000 copies of the film.

In Vaughan, Mississippi, a family is missing. The FBI has now joined the search for Michael and Rebecca Hargin (ph) and their 4- year-old son, all missing since Saturday. Investigators have found dry blood droplets, shell casings, and what appears to be bullet holes inside the home. Strange story.

That is a look at stories "Cross Country" for you tonight.

Americans again being urged to leave Haiti. And the Haitian president issues a chilling message to rebels. We're going to have a live update on the violence.

And an Ebola virus scare. An Army researcher in isolation. Find out what happened. Plus, a murder victim identified by her breast implants. That gruesome investigation just ahead.

And of course Martha Stewart. We're going to have another update with someone who was inside the courtroom today coming up later on.

First, let's take a look "Inside the Box" at the top stories on tonight's network newscasts.

(COMMERCIAL BREAK)

COOPER: Well, it is getting much worse in Haiti. The State Department urges Americans to leave the country now. And the Pentagon says it is going to send a small military team to the American Embassy in Port-au-Prince to determine the ambassador's safety. As the violence rages, Haiti's president issued a do-or-die ultimatum today.

CNN's Lucia Newman is in Port-au-Prince with the latest.

(BEGIN VIDEOTAPE)

LUCIA NEWMAN, CNN CORRESPONDENT (voice-over): Police stood at attention as President Jean-Bertrand Aristide paid homage to the 17 policemen killed in towns taken over my armed militants in northern Haiti. Ignoring any suggestion that he resign, Aristide called on Haiti's small and ill-trained police force to be brave.

"The terrorists are here," he said, "but not better armed than you. You have the constitution as your compass, and democratic values as your weapons."

In rebel-controlled (UNINTELLIGIBLE), the feared former police chief of Cap-Haitien, De Phillipe (ph), vowed to soon return to Haiti's second largest city to liberate it. In Cap-Haitien, police admit they're afraid, while armed supporters vowed to fight to the death. Calling the rebels "puny terrorists," Aristide accused them of using psychological warfare to spread fear, and he sent a message in English to the international community.

JEAN-BERTRAND ARISTIDE, PRESIDENT OF HAITI: Today, we ask to not pay attention to the lies, but to pay attention to the truth.

NEWMAN: But Aristide's political foes say he has no moral authority to talk about defending democracy. "Aristide promised us justice, transparency and participation," says Evan Paul (ph). "He gave us violence, corruption and lies."

And even his workers hurry to build stands for the upcoming carnival. The uncertainty over Haiti's future grows.

(END VIDEOTAPE)

NEWMAN: Clearly worried, the United States, Canada and France plan to send a delegation of emissaries here to Port-au-Prince on Saturday to try to pressure President Aristide into complying with an agreement he made with (UNINTELLIGIBLE) for a political settlement to this crisis, which includes naming a new prime minister. It is not clear though, Anderson, whether even if he does comply, whether the opposition will settle for anything less than his resignation.

COOPER: It's been a long day. Lucia Newman, thanks very much from Port-au-Prince.

A quick news note about upheaval in Haiti. It is all too familiar. A stunning statistic for you.

There have been 32 coup d'etats since Haiti's independence 200 years ago. Thirty-two. The last successful one in 1991, when the first democratically elected president, Jean-Bertrand Aristide, was toppled by military officers.

Aristide, of course, was brought back to power in 1994, thanks to a U.S.-led military operation. Two years later he transferred power peacefully. Aristide was reelected in 2000, but the international community contested the ballot.

(COMMERCIAL BREAK)

COOPER: Now the story of a young Iraqi boy with a bullet stuck in his head. Now, we told you about him on 360 a month ago. Our story moved many of our viewers, including members of the Greek government, who first saw the report on CNN. And because of the coverage, this story now has a happy ending.

Here is CNN's Brent Sadler.

(BEGIN VIDEOTAPE)

BRENT SADLER, CNN CORRESPONDENT (voice-over): A mercy flight home for a casualty of war. A small boy, 4-year-old Baqar Ali Hussein (ph), returns to Baghdad from Greece where surgeons removed a bullet from his head.

Now a happy boy on the mend with his mom and dad. "I'm lost for words," says his father Ali. "The bullet is gone and we're back home." Baqar Ali (ph) had lived with the bullet wedged in bone at the base of his skull for some seven months. He was hit by a stray round near his backyard when American troops responded to an attack.

Baqar Ali (ph) was condemned to a life of disability before the operation. He couldn't walk, talk, hear, or see properly. But Greek authorities took pity and stepped in, footing the medical bill.

UNIDENTIFIED MALE: I'm very happy to see that a small miracle has occurred. I couldn't believe that, well, you can remove a bullet and he can survive and look that much better.

SADLER: So much better that he answers our questions with hugs and kisses.

(on camera): Tell me about the airplane. What did you like?

(voice-over): Proud parents listen for his response. "It was an American plane," says Baqar Ali (ph) happily. But it was Greek doctors who came to his rescue.

UNIDENTIFIED MALE: I hope some other nations will help the Iraqi kids who suffer from similar cases or from some diseases.

SADLER: In the dusty street where he lives, it's time to celebrate. Baqar Ali (ph) is showered with sweets and wrapped in the arms of his loving grandparents in floods of tears.

Brent Sadler, CNN, Baghdad.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

COOPER (voice-over): Does the ink talk? The government uses a pen to prove its case against Martha Stewart.

And Colorado's campus in chaos. The fallout from rape charges.

360 continues.

(COMMERCIAL BREAK)

COOPER: In the next half hour on 360 the Colorado University sex scandal. More allegations and now some former players are speaking out live right here.

Also, the Martha Stewart trial. Surprising testimony from Stewart's close friend. That ahead in "Justice Served."

And A woman found murdered. Wait until you hear how investigators IDed her body.

First, our top stories in tonight's "Reset."

Port-Au-Prince, Haiti getting worse. The U.S. State Department tells American citizens, get out now to ensure your safety. At the same time, a small U.S. military team is on the way to assess the risk for workers and the ambassador at the embassy in Port-Au-Prince.

Washington. Kerry gets endorsement. The AFL-CIO, the nation's biggest labor group endorsed John Kerry in his bid for the presidency. The organization represents 13 million people in 64 separate unions.

Also in Washington. Critical scientists. More than 60 scientists, including 20 Nobel Laureats accused the Bush administration of, quote, "manipulating and censoring research at federal agencies for political purposes." The White House scientific adviser dismisses the 46-page report calling it, quote, "like a conspiracy theory."

Boulder, Colorado. Allegations of assault. Accusations of at least six cases of rape by Colorado University football players or recruits has led to a widening investigation. The head coach, Gary Barnett, was put on paid leave indefinitely after he called a female place kicker who accused a player of rape, quote, "awful player." That's a quick look at the "Reset."

Want to continue our discussion of the Colorado football scandal right now. You're going to recall that Katie Hnida said she was raped by a teammate and molested by players when she was on the team back in 1999. Joining us from Boulder, Ryan Yohanningsmeier, who was the football captain that year. Also from Boulder, Charles Johnson, he was a quarterback for the University of Colorado from 1987 to 1991.

Gentlemen, appreciate you joining me. Ryan, I want to start off with you and I want to start off by reading something from "Sports Illustrated" about what this young woman said happened to her, Katie Hnida. She says, and I quote, this is the writer, Rick Reilly, "sometimes when the entire team was huddled up, Hnida says, players stuck their hands on her crotch or groped her breast under her shoulder pads. She endured more abuse than one person should have to bear." Former teammate Justin (UNINTELLIGIBLE) says, the allegation goes on, she says at one point people were rubbing up against her with their private parts. Did you see anything like this happening to her?

RYAN JOHANNINGMEIER, 1999 CAPTAIN, CU FOOTBALL TEAM: No. This comes as a surprise to me. I didn't bear witness to anything like this.

COOPER: No groping?

YOHANNINGMEIER: No groping.

COOPER: No flashing?

YOHANNINGMEIER: This is a shock to me but I think these allegations are very serious, especially the allegations of rape that are stated later on in this article. This is a situation where these allegations without an individual named kind of fall on top of the whole university. I would personally like to see her go to the authorities with this because I would like to see this individual, if guilty, prosecuted because unless this falls on top of the whole athletic program, there's so many good people there.

COOPER: Well, Ryan, it sounds like it is not just an individual. The rape allegation is related to one individual. It sounds like -- if these are true, that there was a culture on this team at this time that encouraged this sort of thing. Tell me about the culture of the team. Was there verbal abuse? I read a story that someone threw a football at her head. You have people rubbing their genitals on this woman, allegedly.

YOHANNINGMEIER: Allegedly. Exactly. I personally did not see it, did not hear about it or hear any stories. I think that that's -- I don't know what to say about that. I didn't hear anything. Now as far as verbal abuse, I think we've all been called names on the field. If you watch NFL films, things get bleeped out constantly. However, in one instance, I think things go a little personal, one player in particular was to blame for this one, he was verbally reprimanded by Coach Barnett in front of the team and that player was made an example of. Again, Barnett reminded us that this young lady is here on the team to play. She's to be treated with respect... COOPER: OK, I want, want to bring in Charles here. I don't want to leave him out of this. Charles, I know you weren't on the team at the time this woman was on the team so I'm not going to ask you directly about her. You spoke publicly today about Coach Barnett. You said he was a person of high moral integrity. I want to ask you, there are a lot of rape allegations, up to six now or five now, relating to these recruitment parties that happened on campus and have been happening for quite some time, allegations that there were strippers at these parties, escorts, there's even one recruiting assistant who apparently had a cell phone given to him that was used to call an escort service. He says it wasn't in relation to these parties. Were these recruiting parties happening? Do you know about them? Did you go to them?

CHARLES JOHNSON, FMR. CU QUARTERBACK: Well, Anderson, I think it is important to sort of -- let's speak to the facts of this situation. I was a recruit as well as a recruiter once here at the University of Colorado. And even with respect to the allegations made now, nothing is claimed to have happened at a recruiting party. In fact, the 2001 allegation in which the D.A. investigated wasn't a recruiting party, it was a party that a young lady had off campus.

COOPER: Well, I'm not even talking about specifically about these allegations though. I'm talking about these recruitment parties. Were there hookers at these parties? Were there strippers?

JOHNSON: Well, again, you're talking about recruiting parties. I've never been to a recruiting party or a party specifically for recruits once I was on campus. I've never heard of any happening. Generally students, recruits go to parties that are happening on campus or off campus that not football players nor recruits are hosting.

COOPER: All right. We're going to have to leave it there. Charles Johnson, Ryan Yohanningmeier, we appreciate you joining us. This story is obviously not going away anytime soon. Thank you very much.

Tonight on "LARRY KING LIVE," Lary's guest is the suspended University of Colorado football coach, Gary Barnett. You will hear from him. What he says about all this.

Now to the same-sex marriage controversy. After allowing more than 2,700 gay and lesbian couples to marry over the weekend, the San Francisco city government now says it is filing suit against the state of California. The city is challenging the state's ban on same-sex marriages. David Mattingly has got more on the story.

DAVID MATTINGLY, CNN CORRESPONDENT: Anderson, the city attorney in San Francisco saying that he wants to file suit against the state of California to force a constitutional argument into the courts about the legalty of same-sex couples being allowed to marry in the state of California. They are aiming at the law that defines marriage as between one man and one woman. The state also wants to consolidate all the lawsuits that have been filed in this case so far into one big lawsuit, one case that everyone says will have a long life in the courts here.

(BEGIN VIDEO CLIP)

DENNIS HERRERA, SAN FRANCISCO CITY ATTORNEY: First, it violates the equal protection clause of the California constitution and, secondly, it violates the due process clause of the California constitution by not giving equal opportunity to eligible same-sex couples.

(END VIDEO CLIP)

MATTINGLY: Among the "I dos" and the long lins that we saw here again at City Hall, there was a brief protest. About ten young men singing religious songs attempted to block the doors of the office where marriage licenses were being issued as the county deputies escorted them away, all of the would be newlyweds in line applauded and sang the "Star Spangleed Banner." So emotions continuing to running high here at San Francisco City Hall as this issue goes back into court tomorrow -- Anderson.

COOPER: All right. David Mattingly, thanks for that. Apparently, what is good for San Francisco is also good for Chicago. Mayor Richard Daley of Chicago is quoted as saying he had, quote, "no problem if Cook County began issuing same-sex marriage licenses." Regarding gay marriages, he said and I quote, "they love each other just as much as anyone else."

President Bush on the other hand apparently will soon publicly endorse a constitutional amendment banning gay marriage. Bush's political director Karl Rove told a group of conservatives recently that the president will fight for the planned amendment.

In the race for the White House, both John Edwards and John Kerry would like to get Howard Dean's support. No surprise about that. Both have contacted the Vermont governor, which is typical in raw politics.

(BEGIN VIDEOTAPE)

COOPER (voice-over): It wasn't all that long ago that John Kerry and John Edwards were taking shots at then front-runner Howard Dean.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: When you were asked by the "Concord Monitor" about Osama bin Laden, you said we couldn't prejudge his guilt for September 11. What in the world were you thinking.

When I was fighting to ban assault weapons in 1992 and 1993 Howard Dean was appealing to the NRA for their endorsement and he got it.

SEN. JOHN EDWARDS (D-NC), PRESIDENTIAL CANDIDATE: Let me tell you the last thing we need in the south, is somebody like you coming down and telling us what we need to do. That's the last thing in the world we need in the south.

COOPER: That was then. This is now.

EDWARDS: I have a very good relationship with Governor Dean. I have enormous respect for him. I think he has been a real force and a positive force in this campaign.

KERRY: He has done an extraordinary job of invigorating a whole group of people who were divorced from the political process.

COOPER: My, oh, my. What a difference Dean's dropout makes. One-time competitors, newfound friends. That is raw politics.

(END VIDEOTAPE)

COOPER: All right. The Martha Stewart trial. A close friend takes the stand and the testimony -- a lot of people said it was damaging. We are going to have an inside report on that.

Plus, love and marriage on reality TV. We're not so sure about that. It is more like overkill. That's ahead coming up.

(COMMERCIAL BREAK)

COOPER: Dramatic testimony in the Martha Stewart trial. A close friend was on the stand and a lot to talk about ink. We're going to explain. Joining us, Court TV anchor, Lisa Bloom and Celebrity Justice correspondent Carolina Buia. Both were in the courtroom today. Thanks very much for you being with us.

Lisa, I want to start with you. You saw the testimony of Martha Stewart's closest friend of 20 years, Mariana Pasternak. What she said was pretty damaging.

LISA BLOOM, COURT TV: Absolutely, Anderson. Let's start out with how she looked. Just a gorgeous woman, drop beautiful, from her auburn bob to her perfectly tailored little suit.

COOPER: I don't even know what an auburn bob is, frankly. Go on. It doesn't matter.

BLOOM: You do know, what it is, Anderson.

COOPER: What did she say? Why was it so damaging?

BLOOM: More importantly, what she said was three days after the important date of December 27, the date in which Martha supposedly had the conversation with Faneuil about the stock, three days later Pasternak And Martha Stewart are in a beautiful hotel in Mexico. And they're talking and they asked about their friends over the holidays, what is everyone doing.

Pasternak asked about Martha Stewart, what about Sam Waksal? What's he been doing? And Martha Stewart says that he has dumped all of his stock in Imclone. The daughter has sold all of her stock. And she said, and I Martha Stewart tried to get rid of all of my stock.

And the clincher line, the real headline of the night is, Martha saying to her best friend, isn't it nice to have brokers who tell you those things. With that, the day ended. The jury goes home to think about that overnight.

COOPER: And so what a thing to think about.

CAROLINA BUIA, CELEBRITY JUSTICE CORRESPONDENT: And how ironic that the two people implicating Martha the most are her best friend and assistant, Annie Armstrong.

COOPER: There was a lot of testimony about ink as well. Why is this significant? I mean, this guy from the Secret Service testified. What does it all mean?

BLOOM: Because Martha Stewart and Peter Bacanovic claim that they had a preexisting agreement to sell Imclone at 60. So Peter Bacanovic has a work sheet with a number of stocks that Martha Stewart owned and was going to sell. And there's ink all over it. But next to Imclone it says at 60. And this man from the secret service said the ink was different. And in fact, he didn't know where this ink came from. He's got a catalog of over 8,000 different inks. And he has no idea where this mysterious ink came from.

COOPER: How did the jury, you think, respond to that?

BLOOM: The jury's is very attentive, they're watching very closely. They're certainly taking it all in. But I think, Anderson, at the end of the day, after all of this technical information about the ink, hearing the best friend come forward and testify against Martha Stewart, it was a dynamite end to the day.

COOPER: The prosecution is really almost about to rest their case. Probably tomorrow.

BLOOM: A couple more witnesses.

BUIA: Faneuil's friends.

COOPER: Do you think Martha Stewart will get on the stand in her own defense?

BLOOM: I think she has to get on the stand.

COOPER: Really? Why?

BLOOM: To see a human face -- well her best friend has basically corroborated the government's story that she lied. So, Martha needs to say either her words were misunderstood, or I don't know how she's going to get out of it -- or maybe change her story and offer everybody her famous plum pudding. Something needs to be done.

BUIA: I agree. I think she has to testify, Anderson. I think the prosecution has put forward a Prima Fasciae case. They've established all of the elements that they have to show. The defense needs something to counteract that.

And the jury is going be thinking, why didn't Martha Stewart look us in the eye and tell us that her best friend was wrong, that Douglas Faneuil was wrong, that her assist want was wrong. I think that she needs to do that.

COOPER: All right. Lisa Bloom, Carolina Buia, thanks very much. It was great.

Well, every Thursday, we look at a subject that has been all over the airwaves -- way too much all over. Tonight's overkill is marriage. Not the same-sex kind. The reality show kind.

(BEGIN VIDEOTAPE)

COOPER (voice-over): Turn on your TVs and it seems marriage is breaking out all over. The way it's being shown, marriage seems anything but sacred.

Take the littlest groom, please. On this tacky TV show, marriage is a prize. A little bachelor dates little women and some taller women in search of the perfect bride. How better to make the point that marriage is sacred than to put it to the height test.

On MTV, marriage is a career boost. Newlyweds Jessica Simpson and Nick Lachey have been such a hit for the network, MTV is now following the nuptials of Jane's Addiction member Dave Navarro and former Mrs. Dennis Rodman, Carmen Electra.

On "My Big Fat Obnoxious Fiance," marriage has turned into a threat. Each week, millions of viewers are tuning in to see a family torn apart by their daughter's fake marriage to a, well, a big fat obnoxious guy.

Family values? It seems we can't get enough.

UNIDENTIFIED MALE: I Trista, take you, Ryan...

COOPER: A lot of people worried marriage may be threatened. On reality TV, it is being overkilled right before our eyes.

(END VIDEOTAPE)

All right. Well, two brothers in New York are fighting a rare and puzzling disorder. It effects every organ in their bodies, yet they never complain. It's a remarkable story. Our medical correspondent, Dr. Sanjay Gupta at CNN center has the details. Good evening, Sanjay.

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: Good evening, Anderson. There are many mysteries in medicine, scientists always searching for the answers, sometimes searching very hard, such as the case with Wyatt and Daulton.

Wyatt and Daulton 2 little boys out of New York -- go ahead with Wyatt.

(BEGIN VIDEOTAPE) GUPTA (voice-over): ...his mother miscarried nine times. One of his brothers, 4-year-old Daulton, couldn't talk, was hooked to oxygen and fed through a tube. And worst of all, doctors couldn't pinpoint the problem.

VICKI EISENHARDT, MOTHER: He would gasp for breath, nasally sounding. He would stop breathing. I knew something wasn't right. I took him to the pediatrician about 18 times and just like an 8 week time.

GUPTA: Finally, when Vicki was 7 months pregnant with Wyatt, a test revealed a genetic abnormality that likely was the problem with the miss carriages and Daulton.

DR. LINDA BROADSKY, CHILDREN'S HOSPITAL OF BUFFALO: We found a chromosomal abnormality that clued us into we knew we were in for a roller coaster ride with this young man.

GUPTA: The culprit in the boys was an unbalanced chromosome. Two chromosomes had switched a microscopic piece of genetic material. It occurs in one of every 2,000 births. It is called a translocation. It made all the difference. Because the chromosome switches can vary, almost every child will have different symptoms. But not these two.

DR. FRANCIS COLLINS, NATIONAL HUMAN GENOME RESEARCH INSTITUTE: These two boys have exactly the same situation because they inherited this from their mother. But you could look the world over and not find another situation exactly like those two.

GUPTA: At 4 years old, Daulton has had 19 operations and 34 hospitalizations. Wyatt, in just 24 months of life has spent 100 days in. ICU and has been hospitalized 11 different times. There is no cure for these two boys. Yet scientists may learn lessons from them. Their parents already have.

EISENHARDT: They're amazing. All they've been through. They just look up at you and smile.

(END VIDEOTAPE)

GUPTA: And doctors say, Anderson, as well, it is hard to say how these boys will do or even how long they will live. But as you can see, they and the parents both have a strong will. Also, it is expensive to take care of these boys. They have an address, in case anybody watching wants to donate money. You can see the address there, The Eisenhardt Children's Fund. The address there, Anderson. Back to you.

COOPER: Amazing story. Dr. Sanjay Gupta, thanks.

Still to come this evening, a woman missing for almost a year is found dead. You won't believe how authorities identified her. We'll talk about that coming up.

Also tonight, "The Current" takes a look at what's going on on TV. Donald Trump's show is big and may just be getting bigger. We'll talk that coming up.

(COMMERCIAL BREAK)

COOPER: All right, it's Time to check on some pop news in tonight's "Current."

TV executives want to raise the stakes for "The Apprentice" by making losing even more painful and traumatic for the contestants. Not only will they be fired by Donald Trump, rumors are they will have to touch his hair.

Outkast may be hitting the big screen. The Grammy Award winning rap duo are reportedly working on a movie. The director says it will be a cross between "The Color Purple" and "Amelie." If so, we have a suggested title, "Career Suicide."

The final episode of "Sex in the City" is this Sunday. Fans, don't worry. Can you get your dose of sass and gossip, cosmopolitans on "Queer Eye For the Straight Guy."

And book makers are taking bets Academy Awards, odds that is "Mystic River" will win best picture 6 to 1. odd Naomi Watts will win best actress 20 to 1. And Colin Farrell will leave the show with a different woman than he arrived with, that my friends is guaranteed.

All right, lets turn now to a bizarre murder mystery. The remains of a 35-year-old bank analyst missing since May were found in New Jersey identified they police say through her breast implants.

We get more from CNN's Gary Tuchman.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN CORRESPONDENT (voice-over): The new owner of this house talking about a more bid discovery there.

UNIDENTIFIED MALE: It's shocking, very shocking.

TUCHMAN: A body was found in a suit there is case buried under concrete outside the home. Authorities say a fugitive wanted for posing as a doctor may have buried the woman in what was his old residence. Law enforcement say that man is Dean Faiello now believed to be on the lam in Costa Rica after allegedly flee following pleading guilty for practicing without a medical license. Thirty-five year old Maria Cruz had gone to him for a medical procedure.

ORLANDO CASTILLO, VICTIM'S COUSIN: She had some problem with her tongue. There is some allergic reaction.

TUCHMAN: that was April 2003. Maria who lived in Manhattan was never seen again. Now, based on identification that included her breast implants, authorities believe it was Maria who was buried in the concrete. Their theory, that she may have died after a botched medical procedure.

CASTILLO: We want justice. That's the only thing that we hope for.

TUCHMAN: Maria Cruz was a financial analyst for Barclay's Capital. Police said they did interview the phony doctor regarding the disappearance, but was not considered a suspect. But after the state attorney's general office investigated Faiello had concrete delivered to his old residence around the time of the disappearance, police got permission from the new owner to dig. Her family members are doing their best to cope.

JOSE HAVARRO, VICTIM'S UNCLE: I know I wanted closure, but this is not the closure I wanted.

TUCHMAN: Gary Tuchman, CNN.

(END VIDEOTAPE)

COOPER: Just ahead, unrest in Haiti. A little country with big problems. We'll take that to the "Nth Degree."

And tomorrow, "Sex and The City" from the male perspective. A star from the show joins us with his take on the finale.

(COMMERCIAL BREAK)

COOPER: Tonight taking Haiti to the "Nth Degree." In an age when the U.S. faces problems at home and abroad, it is easy to forget about the small ones. Haiti is a very small country, but its problems are getting bigger every day. Armed gangs have taken over whole cities. Legitimate opposition figures have gone into hiding, people are suffering. That, of course, is nothing new in Haiti. Unemployment, illiteracy, poverty are a way of life. Whether it is his own fault or not, President Aristide has done little to improve things. The country is a hub for drug traffickers shipping cocaine to America. A new tide of refugees in rickety rafts may soon wash up on our shores. It is easy to ignore the suffering in Haiti, easy to forget a neighbor's problems can quickly become our own.

I'm Anderson Cooper, thanks for watching. Coming up next "PAULA ZAHN NOW."

END

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