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Toyota's Road to Recovery; President's Deficit Commission; What Killed King Tut?; Tax Audit Red Flags; Dow Rallies is Up for the Third Time

Aired February 17, 2010 - 09:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: Good morning you guys. Thanks so much. We've got a lot to tell you about so let's go ahead and get started.

A psychologist accused of having sex with his patient, then billing insurance for the therapy. Wait until you see the text messages.

Avoiding an audit: why the IRS is eyeing you, the taxpayer, more closely this year.

Secrets from the grave but we don't have to whisper. We've got King Tut's x-rays.

(BEGIN VIDEO CLIP)

STEVIE WONDER, MUSICIAN (singing): I am hoping you enjoy this keyboard that I'm giving you.

(END VIDEO CLIP)

PHILLIPS: Out of the rubble and into the heart of Stevie Wonder. A blind quake survivor strikes a chord with a music legend.

And we're watching your weather, your money and your car.

Kyung Lah in Tokyo with yet another possible recall from Toyota. Dan Lothian at the White House. The president live next hour talking stimulus one year in. And Rob Marciano with where the record snowfall is coming from this time.

Well, in the wake of a series of recalls, now there could be another. We're talking three Toyota models in less than two weeks. Today Toyota's president goes before a skeptical public once again. This time, they're looking at a possible power steering problem with its Corolla model.

President Akio Toyoda says that he will institute an across-the- board upgrade on safety and quality, but what he's not doing is flying to the U.S. to testify personally before Congress.

CNN's Kyung Lah joins us live from Tokyo with more from what the president is saying -- Kyung. KYUNG LAH, CNN CORRESPONDENT: Well, let's begin with the Corolla, Kyra, because there are a lot of people with this vehicle in their garage. What we're hearing from Toyota is that they have fewer than 100 complaints so they are not issuing a recall because they don't feel that the issue right now is really, really a safety issue.

What they say they have are some complaints about the power steering where it feels like you have some loss of control. But no recall on the Toyota Corolla as of yet.

Toyota, though, is instituting company-wide changes. One of the things that they're making effective from these models on out is that they're going to put in something called a brake override system. So for some reason if you need to kill the engine of your car, you hit the brake and the gas at the same time and your engine is dead.

Toyota is also going to be instituting more use of so-called black boxes aboard its vehicles, so if there's some sort of an accident, an engineer can come up, plug in to the black box and figure out exactly what led up to the crash.

Toyota's also going to be looking into its electronic throttle control, hiring a third party -- independent party -- to investigate it. They're going to eventually make that report available to the public.

And Toyota says it's also going to be listening to people more. If there are complaints, all those complaints about quality issues are going to go into an executive in the United States called a chief quality officer.

And, Kyra, they are hoping that if there are quality issues, this person will help make the response much more quick. Kyra?

PHILLIPS: Well, Kyung, it's interesting, President Toyoda is saying that he won't testify before Congress. Not a very good move.

LAH: Well, certainly the analysts are shaking their heads wondering what is he thinking? Because the sense is that this is a guy in charge of this company. This is the person who should appear before U.S. lawmakers, defend the company's reputation, and explain exactly what happened.

To have somebody else do this, many analysts say, simply continues Toyota's problems and those questions are going to continue to follow the president of this company. Kyra?

PHILLIPS: Kyung Lah, thanks so much. And we want to assure you that we will stay on top of this story for its duration. And you can also keep track of all the latest developments on Toyota's recall by way of your fingertips. Just log on and click on to CNN.com.

Spend and save. Today on the one-year anniversary of the federal stimulus being signed into law, we're getting word that cutting the burgeoning federal deficit is now front and center on President Obama's agenda. CNN's Dan Lothian live at the White House with more.

Now, Dan, the administration touting the benefits of the stimulus but there's plenty of critics that are still out there.

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: There really is. And you hear that especially from Republicans who feel that the stimulus was a waste of money that it did not deliver under those promised millions of jobs from this administrations -- this administration.

And there's been a lot of skepticism out there among Americans. In fact, a CNN Opinion Research Poll conducted last month showed that only 36 percent of Americans felt that money from these projects were useful and helping to boost the economy. But 63 percent felt that these projects were included for political reasons with no impact whatsoever on the economy.

So, clearly a disconnect here but the president -- what you will hear from him today when he goes out and makes an address on this issue. He'll talk about the benefits of the stimulus, how over the past year they believe that 1.5 to 2 million jobs have been saved or created.

And this administration keeps using this phrase time and time again that the economy was brought back from the brink of another Great Depression. And so they really believe that this money has been put to good use.

And in the second phase, if you will, you'll see an increase of money going towards some of the infrastructure projects, health care, technology, things like that where this administration believes additional jobs will be created -- Kyra.

PHILLIPS: And then tomorrow, part two, president going to release a plan for dealing with the federal deficit.

LOTHIAN: That's right. And that's this fiscal commission the president has talked about the difficulty of getting bipartisan support for anything looking forward in terms of bringing down the federal deficit.

And so this fiscal commission will be co-chaired by Allen Simpson, the former Republican senator, and Erskine Bowles, who was the chief of staff under Bill Clinton. They'll be sitting down, studying the problem over the next several months, and then coming back with some solutions some time after the 2010 midterm elections.

PHILLIPS: All right, Dan Lothian, from the White House, appreciate it, Dan.

There is no shortage of words when it comes to the federal stimulus. On this one-year anniversary of its signing, just look at who is talking it up today. From House speaker Nancy Pelosi to California's Governator Arnold Schwarzenegger, and there are at least six speeches slated today across the country promoting the American Recovery and Re-investment Act, not to mention the president himself who is set to speak next hour.

And we will take that live.

The anti-incumbency movement and President Obama. A new CNN Opinion Research Poll casts doubt on a possible second term for the president. A sampling of registered week -- registered voters, rather, last week shows that only 44 percent of the respondents feel that the president deserves a second term compared to 52 percent who say no. The poll has a sampling error, rather, of plus or minus 3 percent.

You should stay with us next hour for President Obama's remarks on this one-year anniversary of the American Recovery and Re- investment Act. The president set to speak just before 10:30 Eastern. We'll carry it live right here on CNN.

Little hope for survival. A hiker on Mount St. Helen's never made it out of the volcano's crater. He fell more than 1,500 feet while posing for a picture. A helicopter finally recovered his body.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: He wasn't wearing a helmet. That's a long ways to fall and that's a pretty nasty wall in there.

SCOTT SALKOVICS, BOHLIG'S CLIMBING PARTNER: He moved back and said get Rainier in the background. And right about then, pop, and he was grabbing for the edge or grabbing the air, I guess, at that point and disappeared.

(END VIDEO CLIP)

PHILLIPS: Fifty-two-year-old Joseph Bohlig was an experienced climber who had been up actually on that volcano about 60 times. They're going to do an autopsy to see if he died from that fall or the exposure. He also had taken his coat off for that picture.

Progressing with the plan in Afghanistan. U.S. Marines taking control of a Taliban stronghold but the fight is still far from over.

ROB MARCIANO, AMS METEOROLOGIST: I'm Rob Marciano in the CNN Severe Weather Center. Lake effect snow showers continue to roll. So does the cold air all the way down in the south. How long will it last? Weather is coming up next.

(COMMERCIAL BREAK)

PHILLIPS: The U.S. troops not letting their guard down. The offensive in southern Afghanistan has gone well so far. The Taliban on the run but the battle is far from over. So while dodging bullets and rocket propelled grenades, U.S. Marines are also focused on capturing the proverbial hearts and minds of Afghan civilians.

(BEGIN VIDEO CLIP)

BRIG. GEN. LARRY NICHOLSON, U.S. MARINES CORPS: We're moving in the right direction. I mean, like I say, there's a lot of heavy lifting to do and there is a lot of surprises ahead that we've not even anticipated, I'm sure.

So there's nobody dancing in the end zone right now, I can tell you that, but I like where we're at.

(END VIDEO CLIP)

PHILLIPS: All right, reaching the end zone. CNN Pentagon correspondent Barbara Starr, does that mean this could almost be over?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, you know, Kyra, I think you really hit the point right at the beginning because the real battle, of course, is for the hearts and minds of the people of Marjah for the people of Afghanistan.

As we've been talking about for the last several days, when you talk about a military campaign, the Marines can take territory very quickly. They're expert at that, maybe even some of the best troops in the world. So that really isn't the issue at hand here.

That's really just the beginning phase. And in that sense, yes, they're making a lot of progress. The Taliban aren't getting re- supplied by all accounts. They're running out of steam. But what is the long-term picture, as General Nicholson and the commanders know, that's the tougher question.

Cleaning it up for the long term, making the Afghan government move back in and take care of their own people. That's the real sign of victory. That's the way U.S. troops get to come home -- Kyra.

PHILLIPS: All right, Barbara Starr, we'll follow it obviously throughout the day. Appreciate it.

We've got more snow in the Great Lakes states. Also record cold in the southeast, Rob?

(WEATHER REPORT)

MARCIANO: So the cold air pattern continues, Kyra, as we head in to next week and really I think to the end of February. So February's going to wrap up to be a chilly one, at least for the eastern half of the country.

PHILLIPS: All right. Thanks, Rob.

MARCIANO: (INAUDIBLE)

PHILLIPS: A psychologist charging for sex. So how much does a zesty session cost? You'd be surprised.

(COMMERCIAL BREAK)

PHILLIPS: It's back to Juarez today for Mexican President Felipe Calderon as he battles his country's growingly violent drug cartels. It's blamed for much of the recent murder and mayhem in the border town. More than 4500 people have been killed in Juarez since January of 2008.

Michael Steele, chairman of the Republican National Committee, reportedly playing peacemaker with the tea party. Yesterday Steele met with leaders of the grassroots conservative movement for hours.

He pledged its members that Republicans will stay out of the local races. Some tea party members fear the GOP may try to swallow the movement for the political gain of Republican candidates.

And just in case you're wondering why you're seeing so many blackened foreheads today bearing the sign of the cross, it is, after all, Ash Wednesday which marks the start of the Christian season of lent and the 40 days of fasting and prayer that precede Easter.

Excuse me. So what killed King Tut? It's only taken 3,000 years to get an answer and we got it from the boy king himself. So was it murder? Maybe. Maybe not.

(COMMERCIAL BREAK)

PHILLIPS: Whispers from the grave. For the sarcophagus, I guess. We're talking about Egypt's most famous pharaoh, King Tut, the boy king. The mummy is now spilling his secrets to scientists. His own tell-all after only 3,000 years.

CNN chief medical correspondent Dr. Sanjay Gupta, So what did we learn about King Tut's health?

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: You know it's fascinating. You can actually learn quite a bit. And you know there's been speculation about how he died almost since he died 3,000 years ago, Kyra, as you know.

You know, more recently there was thoughts that maybe he'd been murdered because they found a hole in his skull. That was actually found to be part of the mummification process.

There's also thoughts that he had a lot of feminine genetic traits, but now they've been able to actually look at his DNA, found that -- you know, his DNA showed some things but not feminine traits. And they're also able to get some really, really high-quality CAT scans of the bones in his body.

It is remarkable, Kyra, to have this level of detail. It's the subject of a brand-new study in a medical journal. And let me tell you, first of all, with regard to his DNA, they found some interesting things. They found that his mother and his father were related. So he in fact has -- he has inbreeding and as a result has many genetic malformations.

They also found the DNA of the pathogen that causes malaria. Again, Kyra, we're talking about 3,000 years ago. He had malaria most likely and that malaria may have also been in his brain, cerebral malaria, which can be a huge problem.

They also found these CAT scans -- I mean they did these CAT scans of the bones in his feet. We'll just show you real quick here. Just -- Kyra, as you're looking at -- look at the quality of these images. They -- this thing is acting up on me. Sorry about that.

I don't know if you could see -- OK, so there you go. When you look at that, again, this is -- these are actual CAT scans. And what you're seeing there is some extra joints in here and some necrosis or sort of eroding of the bone. And you can you get an idea of how that looks up there as well.

That would have been very painful. That may have caused him to have difficulty walking. And it may have also been the reason that in so many images that you see of King Tut, the 19-year-old king, he was often sitting, Kyra.

But again, 3,000 years ago, look at that level of detail.

PHILLIPS: It's pretty wild. What's the value of doing a study like this? Obviously, there's sort of a morbid curiosity. People want to, you know, know these secrets from the grave. But there's value to this. Right?

GUPTA: There's certainly a "gee whiz" sort of nature to this. And there's been a huge fascination. I mean, he was preserved. King Tut was preserved so well that you can do studies like that on him. And there was some studies done on other mummies at that time as well.

One of the things that's fascinating, I mentioned the malaria, Kyra. You know for a long time the origins of malaria, exactly where it started, how it started, and how this particular pathogen has changed over time has been the subject of a lot of interest.

Now there's pretty convincing evidence that the -- that it existed up to 3,000 years ago, and having that bit of information, and maybe looking at other infectious diseases at that time, may give us some insight into how these pathogens behave over time.

We spent a lot of time talking about H1N1, the avian flu, things like that. What happens to those pathogens? How do they behave hundreds, even thousands of years from now?

That's really important information to have. And you know, things like that -- things like what happened here with King Tut can teach us that sort of information.

PHILLIPS: Well, it's pretty fascinating. Sanjay, thanks.

GUPTA: Thanks, Kyra.

PHILLIPS: Well, the clock is already ticking to tax day and Uncle Sam has his eye on you more now than ever. We're going to have some tips on how to avoid that dreadful tax audit.

(COMMERCIAL BREAK)

ANNOUNCER: Live in the CNN NEWSROOM, Kyra Phillips. PHILLIPS: That's right. Tax season's here. And you know filling out all those tax returns can be an absolute nightmare but getting audited -- well, that can be even worse. But there are some things that you can actually do to stay under Uncle Sam's radar.

Gerri Willis, help us out.

(LAUGHTER)

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, you know, you're more likely to get audited this year than in previous years.

Kyra, 1.4 million of us were audited last year. That's the most in a decade. And they're spending even more on revenuers this year. A 10 percent increase in the budget. So you're more likely to get audited.

The person most likely, though, to be in the IRS' crosshairs are the self-employed. So if you have like a second business or something you're operating and have two books, you better watch out. You need good record keeping. You need keep separate bank accounts.

You have to prove that this is more than just a hobby. If you have high expenses, there are big suspicions from the IRS this year so you want to watch that.

Let's talk a little bit about red flags here. Ways to avoid tax audits. Those folks with overseas bank accounts -- and there are tens of thousands of them. They are going to really be watched this year.

You have to report that you have overseas bank accounts if you have more than $10,000 in that account because they want you to pay taxes on interest income.

If you're selling stocks, you really have to know what the original purchase price of those stocks are. You can't make it up. You've really got to find out the real deal because they are paying attention to that as well.

And of course, as always, get receipts for large charitable donations. I know a lot of folks out there are going to be accounting for those donations for Haiti on this year's tax returns. So be sure that you can account for that.

And if you're giving something in kind like a car or something, be very careful about how you value that contribution.

Also higher earnings, as we said, means more scrutiny. They're really paying attention to folks in high income brackets. If you're taking lots of deductions for all kinds of fun things like travel and entertainment, you better be careful, you better watch out.

If you earn $200,000 or more, Kyra, you are 50 percent more likely to be audited. So the more you earn, the more the IRS really takes a close look at what you're filing. Kyra?

PHILLIPS: All right, keep our fingers crossed but we're listening to your tips. Thanks, Gerri.

Don't look now, but stocks are on a roll. The Dow actually posted its third triple-digit gain in five sessions yesterday.

Alison Kosik at the New York Stock Exchange with a look at what may move the market today.

What do you think, Alison?

ALISON KOSIK, CNN CORRESPONDENT: Well, good morning, Kyra. It looks like more earnings optimism is going to keep this momentum going. It looks like the market is shaking off concerns about debt problems in Europe and it's now refocusing on solid results from American companies.

The Dow has rallied more than 350 points since it closed below the 10,000 level last Monday. So it's come pretty far in a short time. And yesterday's 170-point jump was the biggest one-day gain in more than three months. Looks like we're going to keep it going today.

Results from Deere & Company, we got those. They soundly beat Wall Street estimates. The farm and construction equipment maker posted a profit of over $240 million despite what it called stubbornly weak economic conditions in the U.S. and Canada. Deere shares are expected to start in the green today.

Home construction bounced back in January after a battle with some bad weather in December. But the increase was slightly below analyst estimates. Building permits, those indicate future activity, they fell almost 5 percent. It's really another sign that the housing recovery is going to be a slow go.

Finally, Kyra, America's largest drugstore chain, Walgreens, we all know it, it's buying New York City's largest drugstore chain, Duane Reade. The deal is worth over $1 billion. Walgreens is going to keep the Duane Reade name on the chain's 253 locations in the New York metro area.

So you won't notice the change from the outside, I'm sure. From the inside you'll notice the stores are changing.

And Kyra, just to give you an idea of just how prevalent Duane Reade is New York City, there are 10 locations within a 10-minute walk from here at the New York Stock Exchange. You know, it's kind of like Starbucks on every corner.

Just had the opening bell. Checking on the numbers -- oh, they're up about six points for the Dow. We'll see if we can keep the momentum going today -- Kyra.

PHILLIPS: All right. Sounds good. Thanks, Alison.

KOSIK: Sure.

A year to the day after President Obama signed the massive stimulus bill into law, the administration is talking it up, but where's all that money actually gone? Josh Levs, can you actually breakdown every single cent for us?

JOSH LEVS, CNN CORRESPONDENT: I wish. That would actually make me really happy if we can get that specific. We're getting pretty close. We're getting there. Here's the basic idea. You know, we're taking a look back because it was signed into law one year ago today. Happy birthday, stimulus. We were trying to check back on what this administration said about it in general, and here is one thing that President Obama said at the time.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I hope this investment will ignite our imagination once more, spurring new discoveries and breakthroughs in science, in medicine, in energy to make our economy stronger and our nation more secure and our planet safer for our children.

(END VIDEO CLIP)

LEVS: Now, there's no doubt the stimulus money has gone to all sorts of different projects, but what so many people keep asking us is where is this money going, how much is it? Let's get straight to the numbers. A lot of people want to see this.

First of all, according to the Congressional Budget Office, the total cost of the stimulus over ten years, $862 billion, but what a lot of people may not realize is the majority of it actually does not go to funding projects out there. The majority of it is going to things like tax cuts, benefits like social security and food stamps. Here on your screen how much money has actually been spent from the total. A $119 billion have already gone to tax cuts, and $179 billion have already been paid out, and that includes - you can see down there, $31 billion on projects.

So, the things we talk about the most like road projects, and science projects, and these kinds of things, when we're looking at that, we're seeing $31 billion, Kyra, in total that's actually been spent on those kinds of projects, and that what we're breaking down for you here at the stimulus desk.

PHILLIPS: What about jobs?

LEVS: Jobs is the biggest thing a lot of people want to know about, right? What we hear from the administration a lot of the time is they say, they believe there are 2 million people working today who would not be working otherwise. I'm going to break this down for you really intensely over the next hour. I'm going to break it down in the 10:00 hour, but I'll tell you for now, there is no such thing as one very clear number of jobs because that depends how you define it, and that feeds all these different arguments out there, and that's why you got to be there with us when we really break this down for you coming up in the next hour -- Kyra.

PHILLIPS: All right. I bet the viewers have a lot to say about this as well.

LEVS: They have a lot to say about this. In fact, let's do a couple of things here. Let's show everyone how you can weigh in, because we gave you this address yesterday. We got my screen right there, CNN.com/josh also CNN.com/Kyra. Facebook and Twitter, joshlevsCNN. So many people weighing in with a lot of questions, a lot of you are saying, hey, the stimulus is not helping me. I want to give you a little sense (ph) to have coming up for you today, so I'm going to show you two things really quickly.

First of all, this is my team behind me. Over here, you're going to need to know this guy. He's Ben Tinker (ph) who's doing a lot of research for us, and the reason you need to know, he is not only doing research here, but he's also become a baker of sorts. Kyra, I want to show you a cake here. Come on over. We have Rob, the cameraman. This is our producer, Rachel. This right here is the stimulus birthday cake, Kyra. Check it out. He went to a bakery yesterday. He asked them to make a pie chart on a cake for the stimulus, and they had no clue what he was talking about.

He actually baked in his own place last night, and he is showing us -- this is the total stimulus, and this chunk right here is the amount that will ever go to projects, $275 billion in total going to projects from the stimulus. Thank you, Mr. Cake man! PHILLIPS: (INAUDIBLE) Ben. I love that. Yes.

LEVS: We are going to eat it this afternoon.

PHILLIPS: Sounds good. All right. Save me a piece.

LEVS: You got it.

PHILLIPS: The least expensive piece. Thank you.

LEVS: You're welcome.

PHILLIPS: All right. We're running a red light normally costs you big bucks, but not in San Francisco that's because the city forgot to dot the ice and cross the Ts.

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories. Blame a sticky accelerator pedal for this one but don't blame Toyota. Police say a Volvo being driven into a Georgia auto auction plowed into a crowd of people. More than a dozen of them were sent to the hospital. No word yet on whether charges will be filed.

If you ran a red light in San Francisco, you may be getting a refund. The city is spending more than $1 million to pay back drivers. The city never actually approved the use of those red light cameras until just last month, so the tickets don't count. Thousands of drivers are now eligible to get their $446 bucks back.

There is new information about the Alabama professor accused of killing three colleagues. Some missing documents tied to Amy Bishop's (ph) 1986 shooting death of her brother have been found, and those Braintree, Massachusetts police records support the findings that the shooting was an accident. Bishop remains jailed in Alabama on capital murder charges.

Teacher's told to do more work or lose their jobs. It is actually happening at Central Falls High School in Providence, Rhode Island. The superintendent wants to add 25 minutes to the school day, have teachers tutor kids after school, and meet them once a week for lunch.

(BEGIN VIDEO CLIP)

FRANCES GALLO, SCHOOL SUPERINTENDENT: Serious problem when you have the 48 percent graduation rate. We lose more children than we graduate. That's inappropriate, and it's happening for a long time over a long period of time.

(END VIDEO CLIP)

PHILLIPS: The teachers have said no to the plan and now they could get fired. The State's Education Commissioner could decide as early as Friday.

One man's rubble could help build another man's home. That's life in Haiti right now. Piles of broken concrete and twisted steel are potential gold mines. People are looking through debris for bricks, copper wiring, even bits of clothing, and if they're not using it, they can sell the stuff. Recycling companies are offering $1.50 a pound. That's decent wages in Haiti.

Get out of jail card for ten Americans held in Haiti? All the group could hear a judge's decision on bail today. Courthouse power outage had prevented prosecutors from printing out their recommendations. The group is accused of trying to kidnap 33 Haitian children. The Americans say they wanted to take the young quake survivors to a better life in the Dominican Republic.

Here's a story that really touched us and struck a chord with a music legend, too.

Last month, we told you about Romel Joseph, the blind violinist who was trapped for 18 hours in the rubble of his Haitian music school. Romel is now recovering in a Miami hospital and playing this keyboard given to him by none other than Stevie Wonder. Watch the whole story next hour and don't forget the Kleenex.

All right. Let's take a look at CNN.com and the news pulse part of that web page. This is how you get to it actually. Go on the front of the website. You see the news pulse peg up to the top left corner. What we like to do is monitor the stories that basically are being updated about 15 minutes. Stories that you're clicking on to, the most popular. We told you about this one, the number one story right now on CNN.com news pulse, tax audits, Uncle Sam wanting you. You can check in with our Gerri Willis. She actually tells you how to try and avoid an audit this year as the IRS is looking at more folks to audit. Now, here's a story that we didn't have in our newscast, but it is the second most popular right now. The fashion designer, Alexander McQueen; he hanged himself in his wardrobe and left a suicide note. That's according to a coroner that was interviewed. It is the second- most popular story right now on CNN.com.

We've also told you about the brand names of many items on store shelves being dumped. A lot of that to do with saving money, and of course, down here, the Israeli polygamist is charged. We told you about this story yesterday. Kevin Flower talking to us about 21 wives, more than 40 kids. You can actually watch the piece and the interview we did for you yesterday, still one of the most popular stories on CNN.com. Just go on to the news pulse every 15 minutes; they're updated.

Dirty text messages always the smoking gun in an affair. At this time, it's Florida psychologist caught red-handed, but he needs to worry about more than just his wife finding that.

(COMMERCIAL BREAK)

PHILLIPS: Charging health insurance for sex, 1,400 bucks, to be exact. That's pretty bad, but for one Florida psychologist, it is just the tip of the iceberg. We get more from Melanie Brooks an affiliate from WTSP in Tampa.

(BEGIN VIDEOTAPE)

MELANIE BROOKS, WTSP REPORTER (voice-over): The details of this case paint a salacious picture. Documents show that South Tampa psychologist Dr. Daniel Lerom was having sex with his patient or months in early 2009, and then build her Blue Cross/Blue Shield insurance for their sessions. Text messages between the doctor and patient outline a hot and heavy romance.

The 49-year-old psychologist told his patient, "my body felt great all over after last night. I wish you were here in the shower with me to warm me up. If I were there, I would rub you and kiss you all over." The doctor even referred to himself as her "red hot lover" or RHL for short. Documents also show the two had oral sex and intercourse in hotel rooms, his office, and the patient's home in Lakeland. She even gave him a key.

KEN CREAGER, CITIZENS COMMISSION FOR HUMAN RIGHTS: It's a felony, you know. It's against the Hippocratic oath. You just -- it's something you just don't do.

BROOKS: Ken Creager is a researcher for the Citizens Commission on Human Rights, a group that investigates psychiatric abuse. He wants to know why this case hasn't gone to police.

(on-camera): In this e-mail, the commission is asking the question directly to the Department of Health. Did they turn over the information to authorities about Dr. Lerom and the allegations he had that he was having sex with a patient, and the answer we found out is no. CREAGER: This is not OK to do. It's psychiatric rape. It's psychological rape. It's not OK. It's not - It is against the law. This guy could go to jail for this type of thing.

BROOKS (voice-over): Dr. Lerom is now being sued by his former lover whose identity has not been revealed. He had been counseling the woman for relationship problems, and after she broke off her engagement, records show she began having an affair with the Dr. Lerom, but when the doctor's wife found out, he broke it off. Shortly after, the woman was institutionalized, after her mental collapse.

(END VIDEOTAPE)

PHILLIPS: She was hospitalized for two days, and we should point out two other things. The woman was a former patient when they started having sex. That's still not allowed. Also, Dr. Lerom's license was suspended after an investigation by health officials, but no criminal charges have been filed.

Rob Marciano, how's that snow? And what are you looking at there? "CNN Newsroom"?

MARCIANO: I wasn't paying attention to what was up on the wall.

PHILLIPS: OK. Is there something you'd like to promote there? Yourself?

(CROSSTALK)

MARCIANO: This is the kind of respect that I receive from my colleagues here in the CNN Weather Center. Yes.

(LAUGHING)

PHILLIPS: How appropriate.

MARCIANO: Anyway, thank you.

PHILLIPS: If our viewers only knew.

MARCIANO: Yes, that's why he's working at international now.

(LAUGHING)

All right. Moving on, talking about the snow, it is not snowing where he lives. That's for sure.

PHILLIPS: Because he's in hell!

(LAUGHING)

MARCIANO: If you live in the south, you may be saying, hey, it's so cold there. It may be when that place freezes over, for sure. All right, we're looking at that snow showers across parts of the Great Lakes. By the way, speaking of freezing over, I don't think it's quite -- it's quite frozen over, but Lake Erie, the shallowest lake there, is definitely almost frozen over. And that's kind of decreasing some of the lake effect snow showers for sure. I don't know why this guy is not working too well.

Anyway let's go to this, this is the daytime forecast map for today. The guy that brought the snow across parts of the northeast yesterday continues to kind of bring in this very cold Canadian air. So we'll see some lake effect snow showers from time to time. You might see a few inches. Pittsburgh by the way is on track to maybe set a record for the all-time snowiest month with over 30 inches potentially as they go on through time.

All right, nice across the midsection of the country. We're going to start to see things -- speaking of warming -- we're going to start to see things warm up briefly across parts of the southeast I think as we get towards the weekend. But then, more storms will start to fire up past -- across the Pacific and get into the intermountain west.

All right, this is a shot of I think New Orleans. Yes, there you go sunshine, temperatures there getting into the lower 40s it would be a nice day to clean up; everyone getting back to work after their big holiday. WWL, our affiliate there in 40 days of repenting and fasting and praying for all those who partake. 36 right now in Vancouver; 52 expected to be the high temperature today; 53 degrees and sunny for Thursday and Friday.

So temperatures will be four, five degrees above average. But you know, Vancouver doesn't get all that cold. I'm still kind of shocked as to how they got the Olympics and especially with all the snow problems they're having. That's certainly a question to maybe be answered.

Currently 36 degrees, light winds in Vancouver. Cypress will see temperatures once again above freezing. I think big snowboarding competitions today. And in Whistler Mountain yesterday actually got some snow, Kyra and they had to shut down practice runs for the ladies and postpone one of the events for the men's alpine.

So from one warm place to one colder place we go, we'll end it that way.

PHILLIPS: All right, thanks, Rob.

MARCIANO: All right Kyra.

PHILLIPS: Well, honking and handcuffs, one woman taken away for a beep. She lost her appeal but now she has a new plan. If you can't beat them, join them.

And 85 years of the "New Yorker" magazine; the first issue published on this date in 1925. That's one a week for 85 years. More than 4,400 issues and you still can't really understand the cartoons.

And raise your glass it's the anniversary of legal drinking. On this date in 1933, Prohibition ended and we haven't looked back, just thrown them back ever since then. (BEGIN VIDEO CLIP)

(EXCERPT FROM THE BEATLES, "STRAWBERRY FIELDS")

(END VIDEO CLIP)

PHILLIPS: That's right, "Strawberry Fields Forever" the Beatles gave us a gift on this date in 1967. A double A side single with "Strawberry Fields" and "Penny Lane." But did the Beatles ever put out anything you could call a B side?

(COMMERCIAL BREAK)

PHILLIPS: Arrested for honking your horn. Oh, yes, and she was even taken away in handcuffs, just for a little beep beep.

(BEGIN VIDEO CLIP)

MARY WYMER, FINED $500 FOR HONK: They treat me like I killed somebody, honked my horn. It's ridiculous. The city of Sunset Hills condoned and decided not spend thousands of dollars to maliciously prosecute me.

(END VIDEO CLIP)

PHILLIPS: Mary Wymer was fined $500 for disturbing the peace but now she's getting even louder. You know what her revenge is? Running for mayor there in Sunset Hills, Missouri. Not sure if her platform includes all you can beep.

Sex, drugs and cigars. That's the platform for California's newest gubernatorial candidate. Prince Frederick Vonn Anhalt (ph) says he's ready to file papers to become an official candidate. Who the heck is this prince anyway? You may know him as Zsa Zsa Gabor's husband. Or the guy who claimed he was the father of Anna Nicole Smith's daughter. Oh, yes and his platform: he wants to legalize Cuban cigars, marijuana and prostitution.

So how much is that doggy in the window? It's a moot question in West Hollywood where the city council just banned the sale of cats and dogs in pet stores. They say it's a swipe at puppy mills and a way to promote getting animals from shelters.

Of course there are technically no pet stores in West Hollywood. In 2002 the city changed the word "pet" to "companion." there are also no stores that actually sell animals, but I guess it's the thought that counts.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: "Best in Show" at the 134th Westminster Kennel Club is going to be the Scottish Terrier -- Sadie the Scottie.

(END VIDEO CLIP)

PHILLIPS: And third time's a charm for Mercedes of Mary Scott but -- you go Sadie -- now the reigning best in show at the Westminster Dog Show. There she goes, strutting her stuff. It was Sadie's third time at Westminster. She beat out 172 other dogs for the big title.

It's a busy hour ahead in the CNN NEWSROOM on the one year anniversary of the stimulus being signed into law. We're going to begin with CNN's Dan Lothian at the White House -- Dan.

LOTHIAN: Well, Kyra, you know the president and others in the administration are touting the benefits of the stimulus bill and what it has done in creating millions of jobs, but some Republicans still aren't convinced. I'll have more on this story at the top of the hour.

LEVS: And while you hear both sides, we will be bringing you the facts. How many jobs has the stimulus really paid for? I'm Josh Levs. I've got that in the next hour.

MARCIANO: And I'm Rob Marciano in the CNN Severe Weather Center. The cold snap continues but January is going to turn out to be the warmest January globally on record. We'll talk about the local forecast at the top of the hour -- Kyra.

PHILLIPS: All right. Thanks, guys.

PHILLIPS: Also ahead, another possible Toyota recall. The president of the company weighs in again. Here's what he's doing and what he says he won't do. That's in our next hour.

(COMMERCIAL BREAK)

PHILLIPS: So how does this distant replay sound for next week's Winter Olympics? Albeit a devolved little ditty. Hit it, Scottie.

They are not men, they are Divo and nearly 30 years since their hit "Whip It" the pride of Akron, Ohio, will return to the world stage when this band performs Monday night at the Winter Olympics in Vancouver, British Columbia. Closet divo-tees, grab your energy domes and hold on.

Well, today we test the cheese theory. American skier Lindsey Vonn used a creamy European cheese to treat her injured shin. She hits the slopes later today in the women's downhill. CNN's Mark McKay has more on Vonn and her drive to not only succeed but dominate.

(BEGIN VIDEOTAPE)

MARK MCKAY, CNN CORRESPONDENT: To spend time with American skier Lindsey Vonn, you may sometimes need an interpreter.

But you will never need a baby-sitter. Vonn is America's great hope on the mountains at the Vancouver Olympics and she is embracing that role much tighter than the person who filled it at the Torino Games, Bode Miller, whose only success came in his words in partying at an Olympic level. Vonn knows the question before it is asked. LINDSEY VONN, ATHLETE: My answer is always the same. That's just not who I am. Not a party girl. I feel like I'm a totally different person than bode.

Reporter: Vonn loves ski racing so much that she learned German to better interact with her European fans. She eats and sleeps it, but unlike miller, she does not drink it.

VONN: I want to set a good example. You don't have to worry about me running off to the discos the night before my race. I'm definitely focused on the racing. That's what makes me who I am.

MCKAY: She does admit to one vice that kept her going when she first got up on skis in her native Minnesota.

VONN: When I was two and a half, I think my favorite thing was the hot chocolate and doughnuts. That was kind of like my treat. I always wanted the doughnut with the sprinkles on top.

MCKAY: The rewards have grown considerably since. The back-to- back overall world cup champion, Vonn has a chance to win all five events she's entered in, a possibility that had been considered for Miller as well, but he failed to bring home a single medal.

VONN: For me honestly I've never won an Olympic medal. Yes, is it possible to win five? Yes. Is it likely? Probably not.

MCKAY: Her confidence is tempered by her last Olympic experience where she was also shut out of the medals. After crashing in her second training run in Italy, she spent a night in the hospital before returning to compete, barely.

VONN: Maybe it wasn't the smartest idea. I definitely was in a lot of pain. That was a situation where that was what the Olympics was about for me was just trying and giving it your best. From that point on I never wanted to have an experience where I was at the finish and thought I could have done better, I could have done more. That's been kind of my motivation and my determination for the last four years.

MCKAY: That motivation has served her well as she now stands as the most decorated U.S. women's skier in history. Still, she knows that unless she adds some Olympic decorations to her wardrobe, history could be forgotten faster than a downhill run.

VONN: I don't think I've ever experienced anything like what I'm going to experience this year. I hope I'm ready for it and I hope I can stay calm and focused. I hope I can ski my best.

(END VIDEOTAPE)

CHETRY: Mark McKay joining us live from Vancouver. What a beautiful background, Mark.

MCKAY: Pretty nice, huh? Pretty good. This is why folks retire here in the Pacific Northwest, Kyra. Yes, let's talk about Vonn. She'll be going in the next 4 hours, the downhill.

It's been a very cold chilly overnight. That's great for the course of the downhill run. But can I live you with morning serenity here in Vancouver? This is what they call Chamber of Commerce weather, Kyra.

PHILLIPS: Just gorgeous. You know, maybe the perfect morning for a little top Finn cheese or Kovarik. I actually - Doug (INAUDIBLE), our writer, brought us in a little specialty sample of this. So we figured when her shins start hurting, maybe getting a headache, sore fingers from typing so much, we might spread the cheese.

MCKAY: I like that idea. This is a whole new breakfast treat, I think.

PHILLIPS: Well, you know, Lindsay said that it's helping her shin, right? I guess we'll find out today.

MCKAY: We're going to find out in the next few hours. Be back with you, Kyra.

PHILLIPS: All right, you let us know.