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The Lead with Jake Tapper

Shots Fired Between North And South Korea; Candidate Faces Sexual Harassment Claims;

Aired October 10, 2014 - 16:30   ET

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

JAKE TAPPER, CNN HOST: Welcome back to THE LEAD. In other world news, the Hermit Kingdom North Korea has supplied the world with some hilarity over the years. But it's downright frightening to think that right now a rogue nation that is holding American prisoners and has tested nuclear weapons might not have anyone calling the shots.

Kim Jong-Un was a no-show earlier this morning in a major holiday ceremony marking the creation of the country's ruling party, adding to the speculation that either his health or his grip on power is in severe decline.

Joining us now is Victor Cha, Korea chair with the Center for Strategic and International Studies, who handled North Korea when he was at the National Security Council. Thanks so much for joining us. So another major no-show, what do you think is going on?

VICTOR CHA, FORMER DIRECTOR FOR ASIAN AFFAIRS, NATIONAL SECURITY COUNCIL: Well, there's clearly something wrong, Jake, with him, whether it's physically or whether it's related to some sort of power issue inside of the country.

But for him to miss these three events in succession, especially when the western media has paid such attention to this -- the leadership there pay a lot of attention to what the western media says about North Korea.

So I really expected that if he was OK, he would have showed up at this October 10 meeting.

TAPPER: Do you have any information or even a best guess as to what you think might be going on?

CHA: Well, I think there's clearly something related to the health because state propaganda has said that he's not feeling well. But whether it's that in combination with some other issue, whether he's being confined for some reason, whether there's some sort of major disagreement between the party and the military.

We just don't know at this point. But with each day that he does not show up, I think the speculation is going to grow more and more that it's not simply related to a bad foot or a broken ankle.

TAPPER: And, of course, as bizarre as he and his government are, this is a very serious issue, possible power vacuum with a nuclear power, not to mention the way the people of North Korea are oppressed. And then there are relations with South Korea.

Shots were fired today over the maritime border between North and South Korea. Does this, do you think, have anything to do with this perceived instability?

CHA: Well, it very well could. Whenever you see sort of erratic jerking behavior from a country like North Korea, that's so opaque, it's not a good sign. Normally you'd like to see more consistent signals.

But the fact that you have this senior envoy that goes over there and then two separate occasion, which shots are fired doesn't leave one to feel very comfortable with the fact that it's business as usual inside of Pyongyang.

TAPPER: This of course is a country where the North Korean people are told over and over by state-run media that their dear leader is divine, is close to invincible. How long do you think the North Korean leadership can delay before acknowledging something is going on?

CHA: Well, I don't think they can delay much longer. Like I said, on the one hand, they do pay a great deal of attention to what's said on CNN and other western media about the leadership, the fact that there's so much speculation about whether something else is going on there puts pressure on them to come forward.

North Korean society is sealed off, but at the same time there's a lot more information that gets in there now. So these sorts of news reports if they start getting in there will raise questions inside of North Korea. So I think there's a lot more pressure now on them to explain what's going on.

And if they don't, the speculation will just increase. In North Korea, with the leadership, half the job is just showing up. You have to be present. You have to be doing these on-the-spot inspections and playing with children at amusement parks.

It's all part of the myth-making for the North Korean leadership. So for him not to be there really does sort of raise questions at the core about what's going on in terms of the leadership and its stability.

TAPPER: You never want to be asking questions like that when it comes to a nuclear power. Victor Cha, thank you so much. Really appreciate it.

CHA: My pleasure.

TAPPER: A programming note now, in the immortal words of Whitesnake, I don't know where I'm going, but I sure know where I've been. But do we really know where we've been? As you will learn next week for those of us at CNN, investigating our own ancestry has been an eye- opening experience.

ANNOUNCER: CNN, all next week, they traveled the world to chase the story but not just anyone's story, their own.

ANNOUNCER: The story of how they came to be.

ANTHONY BOURDAIN, CNN HOST, "PARTS UNKNOWN": I had a great, great, great, great grandfather come over to Paraguay around the 1850s.

WOLF BLITZER, CNN HOST, "THE SITUATION ROOM": My grandparents died here.

ANNOUNCER: The story of their ancestors.

CHRIS CUOMO, CNN ANCHOR, "NEW DAY": This is where my great grandmother was given up for adoption.

ANDERSON COOPER, CNN HOST, "AC360": My great grandfather's report card.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: These records go back 40 generations.

UNIDENTIFIED FEMALE: When we found out that there's people here related to us, that's when it felt real to me.

ANNOUNCER: Now they share those stories with you.

TAPPER: My colonial ancestors were on the wrong side.

MICHAELA PEREIRA, CNN ANCHOR, "NEW DAY": It was like coming home.

ANNOUNCER: Join the familiar faces of CNN as they trace their roots. All next week starting Sunday on CNN.

(END VIDEOTAPE)

TAPPER: He is a young rising star in the Republican Party who took a former opponent to task for sexually harassing women. But now he is facing sexual harassment allegations himself. Will this derail his campaign? That's coming up next.

(COMMERCIAL BREAK)

TAPPER: Welcome back to THE LEAD. Our Politics Lead now, it was already one of the most closely watched congressional races of the midterm elections involving a man considered a new hope for the Republican Party.

But now it's getting ugly with claims that the openly gay GOP candidate harassed a staffer. We want to warn you that this next story has graphic content and is likely not suitable for children.

CNN investigative reporter, Chris Frates, sat down exclusively with the accuser.

(BEGIN VIDEOTAPE)

CHRIS FRATES, CNN INVESTIGATIVE REPORTER (voice-over): Carl DeMaio is a rising Republican star, backed by heavyweight congressional leaders like Mitch McConnell and John Boehner, even endorsed by Michael Bloomberg. He's positioned as a GOP candidate for a new generation.

ANNOUNCER: Carl DeMaio, a new generation Republican --

FRATES: After losses in 2012, top Republicans concluded in a review they must recruit more minority candidates. It's a problem DeMaio helped solve. Just look at how a local newspaper describes him in its endorsement, "A gay man who will chip away at the party's image as intolerant and inflexible."

National media has repeatedly declared DeMaio a candidate to watch. DeMaio first came onto the national scene when he lost to Democrat Bob Filner in the race for San Diego mayor.

But Filner was forced to step down after 18 women claimed sexual harassment. DeMaio tried to make Filner's behavior a campaign issue.

CARL DEMAIO (R), CALIFORNIA CONGRESSIONAL CANDIDATE: Zero tolerance when it comes to the issue of sexual harassment.

FRATES: But now, DeMaio's being tested by allegations about his own sexual misbehavior and accusations of harassment. It's an issue that escalated this week when he was asked about it at a campaign news conference.

DEMAIO: Absolutely untrue.

FRATES: The allegations come from a former campaign staffer who sat down on camera with CNN. Todd says he joined DeMaio's campaign last year eager to work for a candidate who shared his values and who like himself is an openly gay Republican. But he says he was fired after complaining about DeMaio's aggressive sexual behavior.

TODD BOSNICH, FORMER CAMPAIGN STAFFER: He asked me to come over to his office which is in the back, and when I came over to his office, his door was open and he was masturbating.

FRATES (on camera): So what did you see when you walked in?

BOSNICH: I saw his hand -- his penis in his hand. He had a smile on his face and as soon as I came over, he was looking at me.

FRATES: So there was no mistaking what was happening?

BOSNICH: There was no mistaking whatsoever.

FRATES (voice-over): Bosnich, who became the campaign's policy director, says DeMaio would repeatedly find him alone and make inappropriate advances, massaging and kissing his neck and groping him. He says it started one evening after drinks with the staff at a local bar. Bosnich says DeMaio gave him a ride back to his car.

BOSNICH: We were making small talk on the way back. And when he pulled up to my car, he reached over into my lap and grabbed my crotch. And I flipped out and I pushed his hand away. FRATES (on camera): How did it make you feel?

BOSNICH: I just was shocked because I'd never had anyone do something like that to me especially in a position of authority and trust. And at the time, I just figured, maybe he was drunk and blew it off. But he progressively and progressively, inappropriate touching incidents continues from there.

FRATES (voice-over): It was several more months, according to Bosnich, before he mentioned the behavior to the campaign manager.

BOSNICH: The campaign manager who laughed it off, that's just the way Carl is, and that if I really felt that uncomfortable, I shouldn't have let him know that I'm a gay man.

FRATES (on camera): So he was essentially saying to you, it was your fault?

BOSNICH: Exactly. He was implying it's my fault, that it's incumbent on me to stop Carl DeMaio from these behaviors. I was really offended.

FRATES (voice-over): A few weeks after the alleged masturbation incident, Bosnich says he confronted DeMaio.

BOSNICH: I told him, you need to stop or draw out of the race, was basically my main point. Then it was the very next day, the campaign manager called me into his office and said that Carl lost his trust in me and that he had terminated me. He offered me a position in the county Republican Party and also told me to sign a nondisclosure agreement in exchange for $50,000.

FRATES (on camera): Was that hush money?

BOSNICH: You know, I'll let it speak for itself.

FRATES: How did you look at it?

BOSNICH: I took it as an attempt to bribe me to keep my silence.

FRATES (voice-over): Bosnich says he left the campaign without taking any money or signing any papers. He recorded an interview with a local conservative radio station outlining his allegations. That interview never aired.

But CNN obtained a copy of that recording. After hearing it, we took Bosnich's allegations directly to DeMaio, catching up with him after a campaign news conference.

(on camera): He says that you were inappropriate in the office, that you would touch him, kiss him, grab his butt --

DEMAIO: All I can say is the police department has --

FRATES: Let me finish the litany. He also says that you went out for drinks with the staff, you drove him home -- DEMAIO: All not true. None of it's true.

FRATES (voice-over): DeMaio denied Bosnich's claims saying that they are the cover story of a plagiarist and suspected criminal.

DEMAIO: This is an individual that was let go by our campaign manager for plagiarism, a well-documented plagiarism incident of taking a report from the "National Journal" and passing it off as his own work.

He was terminated. He admitted that he plagiarized. He apologized for plagiarizing. And when we told him he was no longer welcome in the staff and in the campaign office even as a volunteer, he left. Days later, he broke in.

FRATES: DeMaio claims the San Diego Police Department is investigating Bosnich for breaking into DeMaio's campaign headquarters, smashing computers and cutting phone lines just days before the primary.

DEMAIO: It's unfortunate. He's clearly troubled. He got caught for the damage that he did to the campaign and now he's manufacturing in essence a cover story to explain away his actions. It's unfortunate. It's untrue and my hope is that the police department will hold him accountable for his actions against our campaign.

FRATES (on camera): And you can provide us with the evidence --

DEMAIO: Absolutely, absolutely.

FRATES: That shows both the break-in --

DEMAIO: Absolutely, absolutely.

FRATES: And both the evidence that would refute his claims here that you were somehow inappropriate?

DEMAIO: Absolutely. Why don't you come back to the office, we'll walk you through every single e-mail, text message. I think you will be satisfied.

FRATES (voice-over): We went to DeMaio's campaign headquarters and were briefly shown some documents and other materials. They would us let us copy them or describe them to you. And they did not appear on their own appear to refute Bosnich's claims.

Police say they investigated the break-in and sent their findings to the district attorney for review, and Bosnich confirms he was interviewed by police.

(on camera): Four months after the campaign office break-in, police still haven't charged anyone with a crime. And they refuse to discuss the case on camera or name any potential suspects. Did you break into Carl DeMaio's office?

BOSNICH: No, I did not.

FRATES (voice-over): Bosnich also denies that he was the one who plagiarized from the "National Journal."

(on camera): After interviewing Bosnich on camera, CNN repeatedly tried to get detailed answers from the DeMaio campaign. First the campaign spokesman demanded to talk to my bosses and then had a top GOP consultant take over that call accusing CNN of going on a partisan witch hunt.

(voice-over): When we followed up with a detailed list of questions, including whether the campaign manager knew about Bosnich's complaints, the campaign then hired two high-powered Washington attorneys who asked for even more time and more information about what CNN had.

CNN followed up with a second detailed letter laying out the information they requested. The next day, CNN finally got a response from the lawyers, contact the campaign with your questions. Back to square one.

Their statement was almost exactly what they said when we first asked about it. This is not the first time DeMaio has been accused of sexually inappropriate behavior.

Last year, a fellow city councilman said he caught DeMaio masturbating in a city hall restroom, twice. It's a claim DeMaio denied even taking a polygraph test to support his denial.

DEMAIO: This lie crossed the line. It's so gross, it's so untrue. It's so humiliating that it demands a response.

FRATES: Now Todd Bosnich has taken an independent lie detector test to support his allegations.

BOSNICH: It corroborated my account of being sexually harassed by Carl DeMaio.

FRATES: Bosnich's attorney gave us a report of the polygraph results and the report says no deception indicated.

(END VIDEOTAPE)

FRATES: Jake, House Speaker John Boehner is holding a private fundraiser for DeMaio this week.

TAPPER: This is the same congressional seat that was held by Democrat Bob Filner who later was chased out of office because of sexual harassment?

FRATES: Adjacent but very close.

TAPPER: Chris Frates, thank you so much. Appreciate it.

Coming up, add this to the list of things you should not say to an audience full of women. What Microsoft CEO said that has him apologizing today, coming up next.

(COMMERCIAL BREAK) TAPPER: Welcome back to THE LEAD. I'm Jake Tapper now for our Money Lead. File this story under the "he was against it before he was for it" category.

Microsoft CEO, Satya Nadella, told a conference of women in technology that he thought female employees should not ask for raises, but trust in karma that they would be paid appropriately. Take a listen.

(BEGIN VIDEO CLIP)

SATYA NADELLA, CEO, MICROSOFT: It's not really about asking for the raise. But knowing and having faith that the system will actually give you the right raises as you go along. And that might be one of the additional superpowers that, quite frankly, women who don't ask for a raise have because that's good karma. It will come back.

(END VIDEO CLIP)

TAPPER: The fallout on Twitter was immediate. Some people called him insensitive. Others used more pointed adjectives. Nadella quickly tweeted an apology and e-mailed Microsoft employees to say, he was wrong and that he believes men and women should get equal pay for equal work and he added, if you think you deserve a raise, you should just ask.

On the "Price is Right," Johnny Olsen could send a crowd into a frenzy with just three words, "a new car" and apparently Elon Musk has the same power.

The founder of Tesla Motors is rolling out his latest electric car. The D, it has two engines. It can go from 0 to 60 in 2.3 seconds. And forget about hands-free cell phones. This one featured hands-free steering, known as autopilot. It can change lanes, keep up with all sorts of things.

Jake Tapper for THE LEAD. Thank you. Turning you over to Wolf Blitzer right now.