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CNN Newsnight Aaron Brown

Olympics Begin Amid Tight Security; Bush Refuses Sharon Call to Cut Off Arafat

Aired February 08, 2002 - 22:00   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.
AARON BROWN, NEWSNIGHT ANCHOR: Good evening again. I'm Aaron Brown. It's Friday night, and we hear there is something else important going on tonight besides NEWSNIGHT, the opening ceremonies of the Olympics in Salt Lake City.

Yes, we know that is a really huge deal, so we want to thank all 32 of you for watching the program tonight. We're honored and appreciative, and to show our appreciation, we intend to name each and every one of you in the hour ahead.

First off, Maggie out there in Chicago, this paragraph is for you. Friday nights we usually try to give the program a different feel, and tonight is mystery night. It seems every story has some bit of mystery attached to it. There's even a mystery writer on the program, the best writer of cop books in the history of the world, at least I think he is, Ed McBain, and you'll see that even his name is a bit of a mystery.

And Christie, that's the Christie in California, not the one in New Mexico, we'll save for the end of the program the ultimate mystery tonight, who in that moment of high drama and fanfare after that long wait, will walk into the studio with an accordion? Phil and Havi Akers (ph), I think you and Carol are really going to enjoy this one.

So we get started in the usual way with the whip around the world and the reporters covering the stories of the day. First stop, Karachi, and the latest on the missing journalist, Daniel Pearl. Ben Wedeman has been working the story. Ben is with us again tonight, a headline please.

BEN WEDEMAN, CNN CORRESPONDENT: Yes, Aaron, it's been more than two weeks since the kidnapping of Wall Street Journal reporter Daniel Pearl. At this point, the police say they know everything there is to know about the kidnappers, except where they are -- Aaron.

BROWN: Ben, thank you, up to you shortly. We go next to Port Coquitlam, Canada, just outside Vancouver, British Columbia. This is a first for the whip. Tara Nelson is there covering a murder mystery times 50, a headline please.

TARA NELSON, GLOBAL TV CANADA: Aaron, we're in B.C.'s lower mainland where the search for clues into 50 missing women continues. Police converged on the pig farm behind me two days ago, and while they won't say exactly what they're looking for, the possibilities are rather macabre. Thirty officers are scouring this ramshackled property, and they could be on the verge of solving Vancouver's largest ever missing person's file.

BROWN: Tara, thank you, back with you also shortly. To Salt Lake City next, okay we admit, we've taken a look at the opening ceremonies a bit as well. Major Garrett is traveling with the President, who is in Salt Lake. Major, a headline please.

MAJOR GARRETT, CNN CORRESPONDENT: Good evening, Aaron. This is an Olympic first in Salt Lake, the first time the United States has hosted a Winter Olympiad while at war. The first time a U.S. President opens a Winter Olympics on U.S. soil, and of course, the first time black hawk helicopters and fighter jets will prowl the skies to protect skiers, bobsledders, and figure skaters -- Aaron.

BROWN: Major, thank you, and now to New York, not the usual place we find Mike Hanna, but he's here with the Israeli Prime Minister Sharon. Mike, a headline please.

MIKE HANNA, CNN CORRESPONDENT: Ariel Sharon meets President Bush for the fourth time in less than a year, no invitation yet for Yasser Arafat and none are likely in the foreseeable future, but President Bush denies Sharon's request to sever all ties with the Palestinian leader.

BROWN: Thank you, sir, back with all of you shortly. Mystery is the night as we said, Donna, and one of the mysteries is a stockbroker who has simply up and vanished. Actually, there's nothing simple about this. Millions of dollars have vanished along with him. It is the talk of Cleveland, Ohio, and we'll go there.

This is no mystery, but we think you'll like it anyway. We're going to talk about the Olympics and patriotism. Could there be too much of it at the games? Essayist Ann Taylor Fleming will join us. This will be an interesting one, and Jane in Overland Park, Kansas, I know you're thinking mystery night must include one of those dreaded mystery guests. Have no fear, sis, not tonight, all that to come, Stewart in Nashville.

We begin with Richard Reid and the evidence connecting him and his shoes with al Qaeda. Ever since his arrest, the so-called shoe bomber, authorities have been working on the assumption that Reid had some help. They look at the traveling he's done, the people he knew, the calls he made, the e-mails he sent, and yes the shoes he wore, and all of it appears to be paying off. Alex, in Los Angeles, this story is reported by CNN's Susan Candiotti.

(BEGIN VIDEOTAPE)

SUSAN CANDIOTTI, CNN CORRESPONDENT (voice over): CNN has learned investigators now have physical evidence they believe links accused shoe bomber Richard Reid to one of Osama bin Laden's European cells, and as that evidence emerges, we get a look at the shoes allegedly worn by Reid, shoes resembling hiking boots. This picture shows where explosives were molded inside the soles. UNIDENTIFIED MALE: I think a lot of work went into this on whoever's part is behind it.

CANDIOTTI: The new al Qaeda link involves phone cards. According to European law enforcement sources, Reid was arrested in Boston with a prepaid card like this, compatible only with public phones in Belgium. Phone records show that card was used to place a call to a cell phone, equipped with another Belgian prepaid phone card.

That cell phone card was found in the Brussels apartment of suspected al Qaeda terrorist Nizer Tribelsi (ph), implicated in a plot to blow up the U.S. Embassy in Paris. Investigators say the hone cards represent physical evidence of a link between accused shoe bomber Richard Reid and a European al Qaeda cell.

STEVE POMERANTZ, FORMER FBI COUNTERTERRORISM DIRECTOR: It's certainly going in that direction. This was an operation that was plotted and hatched in Europe.

CANDIOTTI: Reid was tackled aboard the Paris to Miami flight when he allegedly tried to light a safety fuse that ran through the top of the shoe. The bomb shoes contained a potent combination of PETN, TATP, bound together by detonation cord, filled with even more explosives.

A palm print and hair, other than Reid's, were found in the device, contradicting his claim he made the bomb himself. Before boarding the flight to Miami, Reid used the Internet at this hotel in Paris, to get final instructions, but from whom?

POMERANTZ: To roll up that network, to get beyond Reid in order, A) to bring the people to justice, and B) more significantly, to prevent them from carrying out additional attacks, is critically important.

CANDIOTTI (on camera): But at this point, even though they're convinced Richard Reid had accomplices, investigators have been unable to find them. Susan Candiotti, CNN, Washington.

(END VIDEOTAPE)

BROWN: A quick note out of Kandahar tonight, by way of our Pentagon Correspondent Jamie McIntyre, officials telling Jamie that the former Taliban Foreign Minster has turned himself in and is now in U.S. custody. What's more, officials say he apparently is among a number of high-ranking Taliban fugitives torn between giving up and fighting on.

They believe, or hope, his surrender will persuade others to turn themselves in.

On now to the missing reporter, Danny Pearl. Making this one so frustrating, Pakistani authorities think they know who kidnapped him, but knowing isn't always a comfort, especially when the prime suspect is committed, ruthless, dangerous, and on the loose. Once again, CNN's Ben Wedeman. (BEGIN VIDEOTAPE)

WEDEMAN (voice over): In this simple flat in a working class neighborhood of Karachi, Pakistani police discovered a key clue in unraveling the kidnapping of reporter Daniel Pearl.

Inside, they found a computer from which was sent the two e-mails with photographs of Pearl in captivity. The computer belonged to a man in his early 20s, known only as Fahd, who told police he was given the photos and text of the e-mails by one Sheikh Omar Said, a man sources describe as the mastermind behind Pearl's kidnapping.

Said, a British born militant was jailed by India in 1994, for involvement in the kidnapping of British and American tourists. He was released five years later as part of a deal to end the hijacking of an Indian Airlines flight, diverted to Kandahar, Afghanistan.

Intelligence sources have linked Said to Osama bin Laden's al Qaeda network, and say Said sent $100,000 to al Qaeda hijacker Mohammed Atta. Said also sent money to another of the September 11th hijackers, Marwin Ashehi (ph).

CNN has obtained copies of e-mails exchanged between Pearl and one, Chaundari Bashir Ahmed Shabir (ph), a pseudonym sources close to the investigation say, for Sheikh Omar Said.

The e-mail reveals how the kidnappers lured Pearl into a trap, with vague promises of an interview with a Muslim militant, linked to the so-called shoe bomber Richard Reid. A nationwide manhunt is underway for Said, and sources tell CNN Pakistani police have taken several of Said's relatives into custody, essentially as human bargaining chips.

Jameel Yusif runs an agency that helps Karachi police solve kidnapping cases. He met with Pearl just hours before he was kidnapped on January 23rd. He's confident (inaudible) release is near.

JAMEEL YUSIF: Once you get the prime suspect, then getting the kidnappee out is just no problem.

(END VIDEOTAPE)

WEDEMAN (on camera): Now the police are trying to temper down such optimism, saying they're satisfied with the progress made so far, but they won't be completely happy until Daniel Pearl is free again. Aaron.

BROWN: Ben, when have we last heard from the kidnappers?

WEDEMAN: The last e-mail message, which included a photograph of Mr. Pearl, was received on the 30th of January. That is, as far as Karachi goes, that's nine days ago, and that is a cause of concern for the authorities, for the Wall Street Journal, but they do believe that now that they've identified the kidnappers, they know who they are. They've taken into custody, as I mentioned before, family members. It's only a matter of time before they give him up, before they give Mr. Pearl up. On the other hand, we have to keep in mind that these are very ruthless people with a long history of merciless crimes, and so there is still some concern about the well being of Mr. Pearl. Aaron.

BROWN: Thank you, Ben. I expect there will be until he is safely home. We hope that happens. Thank you, Ben Wedeman, in Karachi tonight.

Look, we've been doing our best to make the Olympics seem like a Sunday beer league softball game, but not right now. It is the Olympics after all. They're here and it is different this time around, and it is opening night, and we're not embarrassed to cop to a few goose bumps over the whole thing. And it's not just because of the symbolism or the security, but also for the flat out wonder of it all.

The Olympics are a wonderful event and all that showed on the President's face tonight and in his eyes. So, Sally in Michigan, once again we head back to CNN's Major Garrett with the President in Salt Lake City. Major, good evening.

GARRETT: Good evening to you, Aaron. The President arrived here about mid day, had a lot of ceremonial events, and the one he enjoyed the most, you might not be surprised to know, was meeting all of the U.S. Olympic team.

He did so this afternoon, and he said to that Olympic team, look your country shed a lot of tears. It's ready to celebrate. It's ready to get to know you, to see your competition and to cheer for you for the next two weeks.

But the President said, the nation just doesn't need an elixir of your championship glory. It needs to be a part of something larger, something that's international, because this is, after all, a war against global terrorism that has an international coalition behind it.

The President also told the athletes, a lot of children in America are going to watch you. You're going to be responsible for setting a good example. He wished them well in all of those pursuits.

(BEGIN VIDEOTAPE)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: A lot of people are going to be watching you, particularly a lot of kids. You'll become heroes overnight. It's an awesome responsibility. I know you'll handle it with grace. I know you'll set the best example possible. And so, we're here to wish you all the best, to congratulate you. Let's roll. God bless.

(END VIDEOTAPE)

GARRETT: Let's roll, that's a powerful code for the President. He doesn't use it often, but he uses it to maximum effect, and he clearly used it, Aaron, for maximum effect with the athletes gathered around him.

As you said, security well it just goes without saying, it's incredibly tight here. Properly so, says the President and his Homeland Security Director.

But things are no so secure, Aaron, if there's not time for a little bit of frolicking, at least of the White House variety. Let me show you a little video that you don't see very often.

The White House Press Secretary Ari Fleischer, he's the one with the beret. Probably not a move he'll make again in the near future, exchanging snowballs with the media. There hasn't been enough snow to have a big raucous sort of snowball fight, but nevertheless a good time was had by all concerned, especially since Ari didn't get a single snowball on him.

I wasn't there. That's probably the reason. I aim pretty well. Anyway, some good fun here in Salt Lake. The President's very happy to be here and he knows the athletes are happy, and he expects in two weeks, America will be happy the Olympics were here, and probably the world will as well. Aaron.

BROWN: Major, thank you. Major Garrett in Salt Lake City, where there is some event going on we hear. Thank you. We have a lot more ahead tonight, including the story about a writer whose brought New York's 87th Street Precinct. It's really not New York. This is a little more complicated than that, but we'll explain it later on, Ed McBain's story.

And an investigation in Canada on the disappearance of as many as 50 women, that story when NEWSNIGHT continues.

(COMMERCIAL BREAK)

BROWN: We talked a lot about the disappearance of Danny Pearl and what those who love him are going through. Now take that pain and that emptiness and multiply it by 50, and you get a sense of what's being felt tonight in western Canada, where 50 women have disappeared over the last 20 years, and it's all coming back now because police may have discovered what might, might have happened to these women and where. So we go back to Port Coquitlam near Vancouver, British Columbia and Global TV's Tara Nelson. Tara, good evening.

NELSON: Good evening, Aaron. I can tell you that police have now fenced off most of the property behind me. It's a 10-acre parcel of land. For years it was used as a pig farm. It has most recently been used to run a topsoil business.

Police received a warrant to search the land a couple of days ago, as part of their investigation into 50 missing women. What these women have in common is that they were all originally from Vancouver's poorest neighborhood, the downtown eastside.

(BEGIN VIDEOTAPE)

ERNIE CREY: I only hope that the police do find something here. All my brothers and sisters are full of anxiety and dread.

NELSON: Ernie Crey was reluctant to come here, but he says he simply couldn't stay away. His sister Dawn disappeared two years ago. She is one of 50 women still unaccounted for from Vancouver's downtown eastside.

CREY: It's horrifying idea to contemplate any of the women being found in these circumstances, and I'm sure everyone would share that view. But all the families are hungry for some knowledge about what became of their particular family member.

NELSON: Crey claims police called him and said they had a suspect in mind. Officially, investigators won't confirm that, but a police source says members of the missing women's task force present at this pig farm for a firearms search Tuesday night, discovered the identification of at least two of the missing women.

Police are still picking through the perimeter of the property, bagging anything even potentially interesting. But the real focus is the 10 extensive acres inside.

SPCA handlers could be seen checking out a dilapidated barn, feeding one of the animals abandoned inside. And at the back of the property, the bulk of investigators scour a garage, above it all, the sound of pigs squealing inside a portable trailer.

SCOTT YOUNG, PORT COQUITLAM MAYOR: How could this ever have happened in Port Coquitlam? We're really a small town. I think the people generally feel safe here in our community.

NELSON: The Mayor of Port Coquitlam has made several trips out to the property, and he's not alone. There is a draw here, a morbid curiosity that people can not seem to resist.

But mostly, they want answers and closure. Members of a downtown eastside support group held a candlelight vigil here last night, and the message from advocates is clear.

ERIN GRAHAM, DOWNTOWN EASTSIDE WOMEN'S CENTER: One is too many, 50 is outrageous. We are tired of memorials.

(END VIDEOTAPE)

NELSON (on camera): Now, this property is owned by three siblings. It's believed two of the brothers live here. One of them has been charged with a couple of weapons offenses, and now neither of the brothers can be found, but police say they're not particularly concerned about that because neither of them are a suspect in this investigation.

What police are really interested in at this point is the property, and they say they will probably spend weeks, perhaps even months, picking over it with a fine-tooth comb. BROWN: Tara, when I lived in Seattle a decade ago, there was always talk that perhaps the Vancouver cases were connected to the Green River cases. Is there still talk up where you are tonight that that might be so?

NELSON: Well it was until a couple of days ago, because of course Gary Ridgeway has been charged in four of the Green River murders, and there are still a number of ones that he's being investigated for.

Now they're saying that they're not sure. The Vancouver police say that they have hundreds of potential suspects, and they are not naming anyone in particular in this case. But they are, for the first time, really I guess looking at whether this could be the case of a serial murder, because for years they did not acknowledge that even any of these missing women were connected.

It was really the families who went to Vancouver police and said, something is going on here, and they finally looked at it and said OK, we've got 50 missing women, all from the same neighborhood. It's time we really study this and try to determine where they are.

BROWN: Tara, thank you. Tara Nelson of Global TV joining us tonight. We appreciate your efforts. Thanks.

In other news tonight, the President, as you know, we told you is out west. Israel's Prime Minister is here in New York. Matt, we know from your e-mails you have really strong opinions on the Middle East, so this story's for you tonight.

Ariel Sharon arrived in the city, after visiting the White House yesterday. You might remember that Sharon declared Yasser Arafat irrelevant a while back.

The Prime Minister did not succeed in convincing President Bush of that. The United States not ready to cut off all ties with Arafat just yet. An important week for Sharon, a trip out of the country for our Jerusalem Bureau Chief, Mike Hanna, who's with us here in New York. It's nice to see you in person finally.

MIKE HANNA, CNN JERUSALEM BUREAU CHIEF: Nice to be here.

BROWN: What does the Prime Minister want out of this trip? I mean did he really expect the President to cut off ties to Arafat?

HANNA: No, he didn't.

BROWN: Yes.

HANNA: I think that they had prepared themselves for a refusal on that particular issue. But what also happened and what was also talked about was, in particular, Iran. Israel sees Iran as a major enemy. It's a potential ally for the U.S. if it does decide to strike at Iraq in its wider War on Terror, and that was a little subtext that was going on in terms of the talks between Bush and Sharon, and talks between Sharon and Cheney, which were extensive last night. BROWN: And, the Israelis want, in terms of Iran what are they asking of the United States? Are they asking for weapons or just some general awareness here?

HANNA: They're asking for a general awareness. They're also asking to be notified in terms of any activity that might be happening in that particular region, and they're also drawn to the United States, attention, the fact that while the U.S. may see Iran as a potential ally, Israel still sees it as a mortal enemy, and the U.S. has got to be well aware of that.

BROWN: I'm not sure after the President's State of the Union Speech if either the Iranians or the U.S. side thinks there's going to be a breakthrough there. And on the subject of breakthroughs, is there - if Arafat's out of the mix - we reported the other night that Sharon would really like the Americans to start talking to other Palestinian leaders. Are there, in fact, other Palestinian leaders with the clout, with clout, with the ability to do a deal?

HANNA: The answer is simple. No, there isn't. And, none of the present Palestinian leaders would support the dismissal of Arafat from the arena. They have made that quite clear, and that is not just speaking nice words about Arafat.

No Palestinian leader at present, apart from Arafat, would be able to maintain the unity of a totally desperate society, which is the Palestinian society. Many, many factions involved in it. Arafat's great success has been to bind these desperate factions together.

There's nobody who could do that, and in a way, Sharon's idea of declaring Arafat irrelevant, of attempting to push him out the way and talk to other Palestinian leaders, is a (inaudible). It's not actually possible in the foreseeable future.

BROWN: But how marginalized is he now? I mean there is a sense he has little control over the most radical elements in the territories and then there's the shipping the arms and all of that, so how much authority does he really have in 20 seconds or less?

HANNA: Well, very little. He does attempt to establish control in Palestinian area. He says he knew nothing about the smuggling of weapons. The U.S. certainly doesn't agree and Israel definitely doesn't agree.

He is marginalized. He's stuck to a little west bank city. He's unable to move from there. His international attempts, which he used to do in the past, have now been curtailed. So he is deeply marginalized by Sharon, but he remains an important political symbol, and he remains the only recognized and indeed elected Palestinian leader.

BROWN: Have a good stay in New York. It's nice to see you.

HANNA: Thank you very much, Aaron. BROWN: Mike Hanna out of our Jerusalem Bureau. Coming up next, the case of the missing broker and the missing millions. It's mystery night on NEWSNIGHT.

(COMMERCIAL BREAK)

LOU DOBBS, MONEYLINE ANCHOR: I'm Lou Dobbs, with this MONEYLINE update. Wall Street closed the week with a rally, stocks breaking a five-session losing streak, still sharply lower on the week however, the Dow gaining 118 points, the Nasdaq up 36 points.

The FBI (is) investigating the accounting practices of bankrupt telecom Global Crossing. Watch MONEYLINE, weeknights, 6:00 p.m. Eastern on CNN.

(COMMERCIAL BREAK)

BROWN: We're not sure if Paul in Shaker Heights, Ohio is watching tonight. He's kind of fickle that way. But if he is, he probably knows something about this story already. It's centered in nearby Cleveland.

A wealthy stockbroker in that city, a man about town, has disappeared and so have many millions of dollars, and there's a note, a really intriguing one as well. No, this is not an Ed McBain story, but it might be.

(BEGIN VIDEOTAPE)

BROWN (voice over): For nearly a month, the whereabouts of 44- year-old Frank Gruttadauria has remained a mystery. Among the many unanswered questions, one big one, why would a prominent stockbroker, the father of three, a man responsible for the assets of some of Cleveland's most powerful people simply up and vanish. The FBI, as you can imagine, is wondering the same thing.

MARK BULLOCK, SPECIAL AGENT IN CHARGE, FBI: What we want to determine is, is there a fraud? If so, how much money has been taken and from whom money has been taken, and what happened to that money?

BROWN: The last time anyone saw Gruttadauria was at his downtown Cleveland Leahman Brothers office on the morning of January 11th. Within days, letters began to surface, one to his live-in girlfriend, another to his mother, and to the FBI.

BULLOCK: What I decided to do was have agents go out to Leyman Brothers and see if we could verify that he was, in fact, employed there and that this wasn't a fake letter or some type of hoax.

BROWN: This was no hoax. News of Gruttadauria's disappearance, caused headlines to swirl in the area. And clients began to notice that much of the $300 million in their broker's possession apparently went along for the ride.

Among the FBI allegations, Gruttadauria had diverted monies from client brokerage accounts into other accounts that he operated. And then sent clients statements to post office boxes he rented. Altered statements often within inflated balances were then sent back to the clients. Law enforcement officials say Gruttadauria may have been pulling this ruse for more than 15 years.

UNIDENTIFIED MALE: The first thing I would ask him is where is he at? I think he indicated when he wrote the letter to his mother that he was feeling remorse. That he was wanted to turn himself in but didn't know how to do that.

BROWN: There is an arrest warrant out and a federal man hunt on for Gruttadauria. A man who once enjoyed the high life in Cleveland. Country club living, fancy cars. A man now on the run, though perhaps, not for long.

UNIDENTIFIED MALE: I think the description of an upper echelon lifestyle, he was part owner of a jet. He traveled the world. And I don't know if he's -- I doubt if he's able to do that at this point. I think he's in a much more low profile type of lifestyle now.

BROWN: A mystery. So Maryann in Westfield, Massachusetts I can hear you asking how big a story is this in Cleveland any way? And the answer, this big, "The Cleveland Plain Dealer" has assigned six reporters to cover it. One of them is Connie Schultz and she joins us tonight. Nice to see you.

CONNIE SCHULTZ, "CLEVELAND PLAIN DEALER":

BROWN: What do you know about the notes, the ones to the mom and the one to the girlfriend?

SCHULTZ: We actually have haven't distinguished between those two notes. We know that there may have been different versions of the same note. You are talking, I'm assuming, of the first note. The one we found out about after we first broke the story. John Kinigley (ph) our court reporter first broke the story. The next day we were able to obtain an excerpt of that letter in which he claimed to have done this for over 15 -- at least a 15-year period. Blamed Leahman brothers for not supervising him as well as they could, and indicated that he was leaving behind enough evidence to help authorities track down what happened to the accounts.

BROWN: This is really strange. The guy apparently cuts and runs with a ton of dough, blames someone else for it and then says here's how you can catch me.

SCHULTZ: Well, not here's how you can catch me. That's been one of the big questions right now is where is he. There's some speculation he may still be in the country. We don't know that yet. We are not sure anyone knows yet. But yes, he did take off. No question of that. And he took off with a lot of money it looks like.

BROWN: Do we know how much, at least have a decent guess at how much money he actually absconded with?

SCHULTZ: The number we are reporting at this point is around $300 million. And that seems to be pretty reliable at this point. We know that there are at least 25 clients who got burned. There may very well be more. He had around 300 clients.

BROWN: And they have any idea where this -- I mean this may sound silly. But you can't put that kind of money in your wallet. It has to be someplace. Is there any sense of where the money is?

SCHULTZ: Well, that's a good question. It's a question a lot of people have been asking. We know certain things at this point. We know that there were phantom accounts that he established. To give you an example, we know of a retired businessman who thought he had $6.2 million in three accounts. Turns out two of those three accounts never existed, and he has less than $100,000. The result being now that he's had to put his house on the market. He's to cancel his son's wedding.

All of his kids' trust funds are gone. He's had to request his money back, that had been deposited in a country club that he belongs to. He's wiped out. His wife and he right now are looking for an apartment to rent.

BROWN: And Leahman brothers is not on the hook for this money?

SCHULTZ: That's another good question. I'm sure the clients lawyers would say absolutely they are. One of the things that's hard to figure out right now is exactly how much money do they owe clients? There's an argument being made that we owe you what you gave us. Let's say someone invested $2 million, he thought he had $40 million. We are getting the impression right now that Leahman may be arguing, all right. Maybe we owe you the $2 million. But you never had the $40 million. That was a myth to begin with.

Well, you can imagine clients and their lawyers who are arguing, but wait a minute. For years we made other decisions, other investments based on this assumption we thought a legitimate assumption that we had this money.

BROWN: Fifteen seconds, is it the talk of the town in Cleveland these days?

SCHULTZ: It sure is. Everybody is talking about it.

BROWN: I bet it is. Nice job. Thanks for coming in. Connie Schultz. "Cleveland Plain Dealer," good newspaper in Cleveland, Ohio.

Coming up next, Ed McBain. We'll be right back.

BROWN: Well this story is dedicated to Aaron in suburban New York. Wait that's me. Well it should be me in fact, because the subject of this story has no bigger fan. As far as we know, Evan Hunter, also known as Ed McBain has written more books than anyone alive. He maybe the best writer of dialogue I have ever read, and there's no greater treat than walking into an airport bookstore and seeing a new 87th Precinct novel. The flight just zips on by.

(BEGIN VIDEOTAPE)

(voice-over): He looks like a retired college professor or perhaps even a painter, which is what he once wanted to be.

ED MCBAIN, AUTHOR: Well, thank you. That's so kind.

BROWN: But to millions of readers worldwide, he is simply this, an icon.

MCBAIN: Thank you for coming tonight. I appreciate it.

BROWN: His name is Evan Hunter, and to the world at large, he is not a familiar face. But what he's written is very, very well know.

He was in his late twenties when he wrote a novel about kids and teachers in New York City, "The Blackboard Jungle."

A few years later he wrote the screenplay for one of the flat out scariest movies of all time. Alfred Hitchcock's "The Birds."

BROWN: Do you know I'm still afraid of birds?

MCBAIN: Good. I mean, a lot of people are.

BROWN: But his most enduring and popular successes have come from a series of books he's written under a pseudonym, Evan Hunter is Ed McBain. The author of more than 50 novels of the 87th precinct.

MCBAIN: The Evan Hunter fans, the people who began reading. Began knowing me through the "Blackboard Jungle," and then the various other Evan Hunter novels I have written, do not know -- their surprised to learn that I am Ed McBain. And when they do learn, they say, oh I don't read mysteries.

BROWN: But millions do. His publisher estimates that Evan Hunter of Ed McBain has sold more than 100 million books around the world.

(on camera): Has anyone that you know of written more books in a series for a longer period of time than you?

MCBAIN: I don't think so. I think it's the longest running mystery series, certainly. I don't know if any other sorts of series characters that may be around.

BROWN (voice-over): Now time for a quick confession. I have been addicted to the 87th Precinct for years, and began reading his latest McBain novel "Money Money Money" after the attacks of September 11, a way to retreat a bit, to calm down. And in the middle of the book, there is a sharp left turn to a terrorist group called al Qaeda, and a single terrorist named Osama bin Laden.

MCBAIN: In fact, it was all spinning around terrorism, and I thought this can't really be happening.

BROWN: It was, of course. And in an eerie way, Evan Hunter, Ed McBain had dreamed it all up on a far smaller scale.

He began the novel as a story about counterfeiting. MCBAIN: And I thought, so here's counterfeit money linked to a terrorist state. So what would happen if this money somehow got involved in terrorism and in -- and what would happen if the CIA, which has been known to support terrorist states, was somehow involved in it as well? And then, I thought what would happen if all of this took place in the rag-tag end of the universe, in the 87th Precinct, where these cops stumble into this vast conspiracy.

BROWN: Here's an excerpt from the book, Evan Hunter reading it before an adoring audience at the New York Public Library. Detectives, including his main character Steve Carrella, has just discovered the body of a woman, eaten by a lion at the city zoo.

MCBAIN: Half of the zoo was in the 87th Precinct. The other half was in the 88th. By Carrella's rough estimate, four-fifth of the vic's body was in the 87, the remaining fifth, the vic's leg, was over there in the 88, where Fat Olly (ph), watching a young lion claw and gnaw at the leg was beginning to get hungry himself.

BROWN: Evan Hunter will be the first to admit that his novels, such as the one called "Ice," have almost never translated well to either movies or TV. This Japanese movie by the famed director Akira Kurosawa is based on an Ed McBain novel called "High and Low." It's the closest movie to his work, he says, but he's not giving up.

MCBAIN: I'd like to see it done well, for a change. Once, I'd like to see it done well.

BROWN: Evan Hunter, Ed McBain is 75 now, and he certainly could retire. After more than 90 works of fiction, he's one of the most prolific and successful writers ever. But he's already working on a new 87th Precinct novel, because he believes Americans need the diversion of a well-written book more than ever.

MCBAIN: The appeal of thrillers is that somebody does a bad thing -- murder, usually. And the cops come in. And they, the good guys come in. And by the end of the book, they set it all right again. And the reader can close the book and pull the covers up to his nose and go to sleep, secure in his own comfy little bed, which is not always the case in reality.

You know, so far it's not coming out all right, is it? We're trying to make it come out all right and we will eventually, but it's going to take a while.

(END VIDEOTAPE)

BROWN: Ed McBain. We wait for the next one.

Coming up on NEWSNIGHT, the Olympics patriotism, the events of September 11. Essayist Anne Taylor Fleming joins us when NEWSNIGHT continues from New York on a Friday.

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BROWN: Well, Cindi Sue, after a long day of teaching elementary school music, I think you're going to enjoy this conversation. There's always a tricky balance where the Olympic Games are concerned. They're not supposed to be nationalistic. They are supposed to simply celebrate sport. They never turn out that way. And given the mood of the country and the events of the last four months, these games, the ones you are not now watching, Jerry, are most certainly going to be a celebration of the United States and freedom as well as sport.

Question on the table, is there too much red, white and blue there? How much is too much? Some thoughts on patriotism tonight and September 11 and the games from one of our favorite guests on the program, Anne Taylor Fleming, who joins us from Los Angeles. It's always nice to see you. What's on your mind, Anne?

ANNE TAYLOR FLEMING, ESSAYIST, AUTHOR: Well, certainly the games, which I have to confess I snuck a little look at while even during your program -- but I turned back really quickly. You know, the whole idea of patriotism really infecting the games in a positive or negative way. I mean, we had enough trouble in Atlanta during a time of peace, sort of restraining ourselves. I mean, that was a really, I thought, sort of swaggery performance by the country. And you know, I just girded for it, and hope it doesn't happen.

We have already seen the flap with the tattered flag. The International Olympic Committee first said that the Americans couldn't have it be part of this opening ceremonies, and then in the wake of all of the e-mails and stuff that they got from people, they relented and indeed the tattered flag is now going to have a place.

You know, it's just a time to mute our swagger. I mean, it is the time to comport ourselves gracefully as a member of the world. And I'm just hoping, you know, maybe against hope, that we are respectful and that the jingoism is muted.

BROWN: As I remember Atlanta -- and your memory may be different -- that the swaggering -- and there was some -- was by a few athletes, not a lot of athletes, but a few athletes. But that the fans, people in the stands themselves were pretty good about all this.

FLEMING: Well, you know, I think the other thing, Aaron, that we have to be careful about is we are seeing media coverage of -- and, you know, the media coverage itself can be prejudicial, patriotically prejudicial. So you know, to castigate the athletes and/or the fans or whatever, it's hard if you are not on the ground there.

I do think that that's true, but the cameras pick up, you know, we're number one, we're number one. That kind of thing is just so unattractive, and especially now, you know, in light of what has gone on. I think it's ever more important that we are careful with that.

I mean, you look at the athletes that marched in from the countries that, you know, they have known genocides, they've known ethnic cleansings. They've been through famine. Yes, we have been through something awful, but they all have their tragedies and wounds. And it seems to me not the time to make a particular over-winning point of our own. And one of the things that bothers me is by saying that, you know, you always risk having your own patriotism impugned. And I think that's a very serious thing as well. That, you know, one can say, I love the Olympics. I love the country, but I would like to see the swagger muted at the Olympics.

BROWN: This is going to be -- I suspect, we'll see how it plays out -- a celebration of recovery, that something awful happened four months ago in the country, and that maybe what is going to happen in Salt Lake is a marker, that this is a moment where we have turned a corner. And that doesn't strike me as so terrible, all things considered.

FLEMING: If it turns with the tone that you have just used, absolutely. If it turns with a self-celebration that, as I say, has the swaggering to it, I don't think it will be healing in the sense that you are talking about.

If it's graceful, if it's careful -- and you know, one of the interesting things in those few seconds I turned over to that other station that has the Olympics, one of the interesting things is Bob Costas in particular I think has been sensitive or sensitized to this potential charge. because every time he's talked about it, he said, "we must temper our exuberance." I mean, I think that maybe the media is mindful of it. I just hope the whole country can be mindful of it, and that we set a tone that is not jingoistic, but is, you know, respectful.

BROWN: Very nice tonight. Anne, nice to see you. You can now go back and watch the rest of the opening ceremonies.

FLEMING: No, I'll watch the end of you first.

BROWN: Thank you. That's all I ask. Honestly, that's all I ever ask. Thank you very much. Anne Taylor Fleming in Los Angeles.

Up next, segment 7, and Olga, don't go away. You in particular don't want to miss this.

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BROWN: Finally tonight, something special for Olga. You're our e-mail poet, so this one seems perfect.

The strangest thing has been happening of late, as we looked through the e-mails. There have been compliments for the accordion guy, Barry Mitchell. Now, we have used Barry and his little parodies for 10 years on programs, and never in that time has anyone thought a compliment was in order. So this change of heart is a perfect mystery to us. Anyway, the accordion guy has Enron on his mind again. And as we always say, the opinions expressed by the accordion guy are not those of CNN, its staff, management or sponsors -- especially the sponsors.

BARRY MITCHELL (singing): Here's an accounting in the corner shredding documents that all pertain to Cayman Islands partnerships. And the boss says, button up your lips, while you rip the slips.

And there's the wife of a big former Enron CEO who is crying lots and lots of tears into her drinks. Says their money is gone and their life stinks, while she's wearing minks. That's what I thinks.

Kenny Lay's a racketeer with greedy eyes. Congress says it's time he testifies -- he cries, while meanwhile back somewhere in Texas there is a group of angry working folk. Who owned some stock, but now they are in a lousy mood. And for all their years of servitude, all they got was screwed.

While the executives were setting up this house of cards, they put their workers pension plans in jeopardy. And it's not as if they bounced a check -- they bounced the company. Larceny!

Kenny lay might take the Fifth, it's just a stall. Nothing else to take, he took it all. I'd say he's got some gall.

And there's a fellow in the White House who is Kenny's pal. And filled his campaign coffers with Enron largess. But since Kenny boy got in this mess, Ken's had no access. Ken? God bless.

Kenny Lay's up to his ears in corporate slime. What you want to bet he won't do time? Three cheers for white-collar crime. Kenny Lay.

BROWN: Oh, man, can he sing or what?

That's all for tonight, and for the week. Janet in Issaquah, we're delighted you were here in the whole program for Kathy in Idaho. We'll name the rest of you next week. Good night.

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