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Police in Los Angeles Make Arrest in Grim Sleeper Case; Authorities Miss Opportunity to Rescue Kidnap Victim Jaycee Dugard; Louisiana Governor Signs Bill Allowing Guns in Churches; Minnesota Boy, Age 8, Gives Town Council Suggestions on Fighting Crime; Alleged Russian Spies Set to Plead Guilty; Norwegian Authorities Arrest Three al Qaeda Suspects; Search for Missing Philadelphia Tour Boat Passengers Now a Recover Mission; Northeast Heat Wave Claims Two Lives; Gay and Lesbian Military Warned Not to Take Don't Ask, Don't Tell Survey; Wall Street Rallies; Compassion Backfires in Terror Case; LeBron James to Announce His Decision

Aired July 08, 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: And we begin with -- actually, we want to talk about a lot of ground that we are covering this morning. Let's start with the -- let's go ahead and talk about the new developments now in the plot to bomb New York's transit system. Three people linked to al Qaeda now in custody.

Also, it has been L.A.'s nagging nightmare for 25 years. Who is the Grim Sleeper Killer? A little DNA might have delivered him at last.

And the Lockerbie Bomber was supposed to be dead months ago. Not only is he still alive. He might be with us another ten more years. How could compassion backfire like that?

We begin with breaking news. It had the intrigue like a 007 movie: mystery, a sultry female and a Russian connection. A spy ring case that is still moving fast. The ten alleged secret agents are in a New York federal courtroom today for arraignment. And we have learned that the ten spy suspects are in plea talks right now. They could also be deported as soon as tonight.

Susan Candiotti joining us live by phone with more. Susan?

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Kyra, this was certainly -- the case has moved around along so quickly since it first came on the radar, just within the last couple of weeks. Now we are learning that -- from a source with detailed knowledge of what's been going on, involved in the investigation, that not only are these plea talks underway in this spy case, as we have been reporting, but that things are moving so rapidly that pleas are expected today at the arraignment that's scheduled for this afternoon, and that the ten defendants could be deported from the United States as quickly as tonight.

You remember that the arraignment is scheduled for this afternoon. They were indicted in an unsealed indictment, that became available in public just yesterday -- that the defendants are charged with acting as unregistered foreign agents in the United States, as well as conspiracy to commit money laundering.

Now what would happen to the children involved in this case are unclear. As you know, some of the defendants are married couples that are from the Soviet Union originally. And some of them have children. And the question is would they stay behind? Would they leave immediately with their parents? All of this unclear right now. Kyra?

PHILLIPS: I have a feeling we are going to be learning a lot more, too, as the day continues and the story breaks even more. Susan Candiotti, thanks so much.

Another developing story that we are following for you, three terror arrests halfway around the world. But they are critical to investigators right now here in the U.S. and in London. CNN's Paula Newton joining us from that area with the latest. Paula?

PAULA NEWTON, CNN INTERNATIONAL CORRESPONDENT: Kyra, you know, we are starting to learn why that New York City bomb plot, the foiled attack on the New York City subway system that happened last year -- why they actually called that one of the most serious attempted attacks since 9/11. These three suspects, two arrested in Norway, one in Germany, are believed to be linked as well to that attack. Also linked is a gentleman who was arrested yesterday here in Britain, again, in connection with that attack.

A lot of this being motivated by an indictment that was unsealed yesterday in a U.S. court. Kyra, these arrests do come after more than a year of surveillance. Norwegian authorities saying they don't want to say any more about any details involved with the plot. Just to say that they had these people under surveillance for quite some time. Kyra?

PHILLIPS: What other tools did the authorities use to crack this alleged al Qaeda cell? Do we know?

NEWTON: Beyond the surveillance -- you know, we have been talking a lot about -- the New York City plot, two people have already pled guilty. In terms of extracting information from them, that was helpful.

But Kyra, what is going on in these investigations now is that they may take a cell phone, an e-mail account, and they literally tear it apart, word for word, number for number, and track that down. We believe that a lot of leads in this case originated from intelligence officials working all over the world, getting to these little phone numbers and e-mails, and then doing the hard work on the ground to keep these people under surveillance in order for them to obtain evidence.

Again, Norwegian authorities saying that they continued to have these people under surveillance. The only reason they have apprehended them right now is because they feared that they were a risk to flee.

Key here, they keep them under surveillance as long as possible, learning what they can about all of these threads that come together with this al Qaeda plot that authorities believe originated in Pakistan.

PHILLIPS: Paula Newton, we will follow the story with you. Thanks so much.

And the northeast is looking for some relief from the heat. AC and fans working overtime as people endure another day of triple digit temperatures. The pressure is on for utility companies to keep up with the increasing demand for power. CNN's Jason Carroll live in New York with more. Jason?

JASON CARROLL, CNN CORRESPONDENT: Hey, Kyra, good morning. You know, it is feeling a lot better here today. We feel actually a slight breeze. So better here in New York City. Even so, one heat related death reported in the state of Maryland. The governor there telling the people to take whatever steps necessary to try to stay cool.

Back here in New York, Kyra, we did spend time at Con-Edison's command center to see what steps they are taking to deal with the heat.

(BEGIN VIDEOTAPE)

CARROLL (voice-over): Day four of the northeast heat wave brought some lower temperatures, but not low enough in Boston.

UNIDENTIFIED MALE: One thing about guys -- people from Southie, we are not that bunch of wimps. We will take it.

CARROLL: Record highs in several eastern cities, including Philadelphia and Wilmington, Delaware, record sales of air conditioners in many New York City stores.

UNIDENTIFIED MALE: I mean, they have been going as fast as they are coming in.

CARROLL: The city's pools filling to capacity.

UNIDENTIFIED FEMALE: It is refreshing and cool. And it is keeping us from passing out in the sun.

CARROLL: Demand for power a concern in New York, where Con- Edison has been running its emergency response center since Tuesday.

UNIDENTIFIED MALE: The low is 12,500 Megawatts.

CARROLL: Inside their war room, various departments work together to prevent blackouts.

(on camera): As you take a look around the room, you can see that the center is broken up into different sections. You've got logistics back here. You've got customer service right here next to me. Back over there, you've got gas and steam. We are told that the center will stay open until the temperatures are back to normal.

JOHN MKSAD, SENIOR VP, CON-EDISON: All the analysis is happening right over here.

CARROLL: John MkSad oversees the entire operation.

MKSAD: I look at this for us as round two. I think that this might be the last round of this fight.

CARROLL: You are using all of these fight references.

MKSAD: It is a fight.

CARROLL: So are you on defense at this point? Are you on offense? Where are you?

MKSAD: That's a really good question. I think that right now we are on offense.

CARROLL (voice-over): Some 5,700 customers are without power in New York City. The majority of the system is holding, thanks in part to the city's large office buildings and businesses heeding calls to help by reducing energy consumption. Yet, the center's numbers show demand is still high.

MKSAD: It's 12,491 Megawatts of demand.

CARROLL: Translate that. What is that?

MKSAD: That's 12,500 million Watts. So one Megawatt is enough to light a thousand homes.

CARROLL: Does that make you nervous?

MKSAD: It does make me nervous. Yes.

CARROLL: The operation here will run 24 hours a day until temperatures and demand begin to drop.

(END VIDEOTAPE)

CARROLL: You know, Kyra, it was interesting to see how things run behind the scenes. I think probably a lot of lessons were learned from that massive 2006 blackout that hit the city. The workers that you saw there will actually be working 12-hour shifts until further notice. Kyra?

PHILLIPS: All right, Jason. Thanks so much. Also, Rob Marciano working the heat, shall we say, for us. The temps, I mean, looks like a little bit better than yesterday.

ROB MARCIANO, CNN METEOROLOGIST: I think it is going to be a few degrees better, yes. That's the good news. But still starting things off in the upper 70s and lower 80s across parts of the northeast, 85 already in D.C. So we are probably not going to see the records that we saw yesterday. But we are also not going to see this cool front, which will really drop things by about 15, 20 degrees. That's going to be heading way too slow, won't get there until the weekends.

So we're not looking for a dramatic cool down. Maybe five to ten degrees cooler today, as opposed to yesterday.

Speaking of yesterday, 104, that was a record high in Richmond, 104 in Danville. Philadelphia, 103, 101 was yesterday in Baltimore. Similar numbers in the New York City area. So certainly gives you an idea of just how hot it has been.

A little bit cooler today. There are a couple of showers that are trying to squeeze out of these clouds across the northeast, but having very little success doing that. And there are more substantial rain showers developing across parts of Texas.

This is where tropical depression number two. It is heading towards Brownsville. It is likely not going to strengthen into a tropical storm. But, nonetheless, tropical storm warnings are posted for the extreme southern Texas coastline. Heavy rain is going to be the main threat with this. And that is going to produce even more flooding. We're fresh on the heels of Hurricane Alex, which brought the Rio Grande, Kyra, to record stage as far as flooding goes. And we have more rain coming up for them today.

Kyra, back over to you.

PHILLIPS: Thanks so much, Rob.

It's day 80 of the Gulf oil disaster. Here's the latest: BP says it is pushing to stop the gushing oil sooner than later. Managing director Bob Dudley says it could possibly be stopped by July 27th. However, he counters that statement saying that's in a perfect world with no interruptions.

In New Orleans, a federal appeals court taking up deepwater drilling. At issue, reinstating a six-month ban on drilling as the Obama administration wants, or block the ban as offshore companies will argue.

Those choppy seas that held up cleanup operations may finally be calm today. That could allow skimmers back in the Gulf to collect oil.

Some businesses along the Gulf coast desperately trying to stay afloat despite the oil disaster. Take the Ship-n-Shore Store in Dauphin Island, Alabama, for example. It has been around since the 1950s and it is a mainstay in that community. It survived storm after storm. But since the oil disaster, business is now down 50 percent. Still, the widow of the store's owner is determined to keep that business open.

(BEGIN VIDEO CLIP)

BOBBIE BUERGER, SHIP-N-SHORE: He passed away and I have been trying to keep it going for him. He had it for a long time. I've been with for about 30 years. So I'm trying to keep it going.

(END VIDEO CLIP)

PHILLIPS: And we are told that Ship-n-Shore may have to file a claim with BP in the months to come.

Still working breaking news surrounding that spy ring case. Ten alleged secret agents in a New York federal courtroom for arraignment. We have learned that they are in plea talks now. That could mean that they could be deported as soon as tonight.

Also developing, DNA might have finally unmasked the Grim Sleeper Killer a quarter century after the first crime.

(COMMERCIAL BREAK)

PHILLIPS: News across America right now. It could be a huge break in a nightmare that nagged Los Angeles for 25 years. An arrest in the so-called Grim Sleeper Case. That nightmare might finally be put to rest thanks to DNA testing. CNN's Randi Kaye has more on the arrest and the victims who are closer to justice.

(BEGIN VIDEOTAPE)

RANDI KAYE, CNN CORRESPONDENT (voice-over): He preyed at night, trolling the streets of South Central L.A. for victims and there were many. It is believed Deborah Jackson was the first to die. The 29- year-old cocktail waitress left a friend's home on August 10, 1985. Her body was found days later. Jackson was shot to death.

Over the next two decades, he would take many more lives. All but one were black women, some working as prostitutes. Most were shot to death.

DET. DENNIS KILCOYNE, LOS ANGELES POLICE: He would spot them and does spot them, victimize them, and then just discards their bodies in alleys like they are trash. He is a monster.

KAYE: A monster that detective Dennis Kilcoyne pursued for years. And he and his team believed it would only be a matter of time.

KILCOYNE: We've got this beautiful DNA profile, all these dashes and dots and this and that, but there's no name or address or face to go with it.

KAYE: Now they say they do. Lonnie David Franklin, Jr. The 57- year-old was arrested Wednesday in front of his home in South LA.

KEVIN MCCLURE, CAPTAIN, LOS ANGELES POLICE: We made an arrest here in the 1700 block of 81st Street of the suspect that has been known to many as "the Grim Sleeper."

KAYE: He's suspected of killing at least 11 women. But for now, police will only charge him with 10 murders. He doesn't have a lawyer and there has been no plea. Police say he is the killer they call "the Grim Sleeper." A name coined because of the long gaps between killings.

News of the arrest reached the family of Alicia Alexander, who on September 11, 1988, asked her father if he need anything from the store. She was found murdered days later. PORTER ALEXANDER, FATHER OF VICTIM: My body, it was such a good relief that I found that I have.

KAYE: Nineteen years after Alicia was taken, Franklin allegedly claimed his last victim. Janecia Peters was discovered on January 1, 2007. Shot in the back and dumped in a garbage bag.

A quarter after century of killing is over. And now, police say that they can finally put a name to the Grim Sleeper. Randi Kaye, CNN, New Orleans.

(END VIDEOTAPE)

PHILLIPS: A missed opportunity to rescue Jaycee Lee Dugard now coming to light. The Sacramento Bee reports on a letter leased yesterday by the state attorney general's office. It says that agents did not act after observing and speaking to Dugard and one of her daughters.

At the time the agents were checking in on the paroled rapist Philip Garrido. Besides not asking about Garrido's relationship to Dugard, the agents failed to locate the backyard shed where Dugard and her daughters were kept.

Phillip Garrido is accused of abducting Dugard in 1991. She was 11 years old. He is also accused fathering Dugard's two daughters. And just last week, California lawmakers approved a $20 million settlement award just for Jaycee.

Packing heat in a place of worship. Louisiana governor Bobby Jindal signs into law a bill allowing guns in churches. New Orleans Times-Picayune gives us the details.

People who have past training and background checks can bring concealed weapons to houses of worship as part of a security force. The pastor must announce in church or through a newsletter that there will be armed people on church grounds. The bill sponsor says churches in high crime areas need extra protection from the bad guys.

An 8-year-old Minnesota boy who doesn't need a gun. He's got advice that's taking a stand against criminals. Logan Fisher says his life was changed when bad guys broke into his home and stole his stuff. This young crime fighter turned a negative into a positive. He went before the town council with ideas on fighting crime, including having a SWAT truck drive around town to scare off those so- called bad guys.

We're still working breaking news surrounding that spy ring case. Ten alleged secret agents in a New York federal courtroom for arraignment. We've learned that they are in plea talks right now and that they could be deported as soon as tonight.

(COMMERCIAL BREAK)

PHILLIPS: Let's check the top stories, beginning with breaking news. This is the source. Ten suspected Russian spies in the US could plead guilty today. The ten could be deported as soon as tonight. This development comes amid reports of a possible trade of the accused Russian spies for spies convicted in Russia.

Norwegian authorities have announced the arrest of three people with alleged ties to al Qaeda. They're suspected of planning attacks in New York and the UK. Two were arrested in Oslo, one in Germany.

The search for two missing tour boat passengers in Philadelphia now a recovery mission. The tour boat sank after being hit by a barge yesterday. All other passengers and crew made it to safety.

The northeast heat wave will hold on through this afternoon. Two deaths have been blamed on the oppressive heat. There have been scattered power outages in some states.

An assignment for the troops. Complete an online survey about repealing the don't ask, don't tell policy. This just in. Some troops are being told, don't take that survey.

(COMMERCIAL BREAK)

PHILLIPS: New developments this morning. Some 400,000 troops are being asked to take an online survey about repealing the military's don't ask, don't tell policy. The questionnaire focuses on the impact of the ban, and there are some pretty specific and intimate questions.

But now a legal group representing gay and lesbian troops is telling them to not take the survey. For more on that, let's get live to Barbara Starr at the Pentagon. Barbara?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Kyra, fast moving developments this morning. As you just reported, the service members' Legal Defense Network, which is the major group over the years that has represented gay and lesbian service members in the military in their legal cases when the Pentagon tries to boot them out of military service.

They have just issued a statement saying, don't take this survey. And that what they say, SLDN says, quote, "At this time, SLDN cannot recommend that lesbian, gay or bisexual service members participate in any survey being administered by the Department of Defense."

The reason, they say, is this survey cannot promise confidentiality and privacy to gay or lesbian service members, that they still could face prosecution if they are inadvertently outed by taking this survey.

The survey is all about how the service members feel that -- how they would react if there is repeal of the don't ask, don't tell policy and law. How should it be implemented across the military branches across the service. So there's about 100 questions, some very personal, about how would you feel if gays and lesbians could openly serve in the military, especially in a war zone.

Here's some questions they asked about all of that. For example, "Tell us about the impact on unit morale or readiness if the commander of your unit was openly gay or lesbian. In a war zone. If you have to share a room, bathroom, or open base showers," which is what happens in a war zone, of course, "how would you react if there were openly gay or lesbian members of your unit? Would you just carry on with your military life as usual? Would you have some problem with it? What would you do about all of it?" And, basically, "Would repeal of don't ask, don't tell have such an impact on military service that you might no longer be willing to serve?"

What they want to do is get this across the board view of how people feel about it so they know what they are dealing with and if and when the law is repealed. But this morning, those who represent gay and lesbian service members say that they are very skeptical. Kyra?

PHILLIPS: Barbara Starr, live from the Pentagon. Barbara, thanks.

Wall Street yanked from the slumping soars. A look at what they are buying today.

(COMMERCIAL BREAK)

PHILLIPS: For a day at least, Wall Street was pretty much popping. The stock market actually staged its biggest rally since May. Christine Romans is going to tell us, hopefully, what we can expect today. What do you think, Christine? Are you checking the numbers right there? I saw you use your computer.

CHRISTINE ROMANS, CNN CORRESPONDENT: Yes, I am, actually. And the futures have turned around a little bit. Because the gloom parted just briefly yesterday, and you had a big rally in the Dow. And after two months of some really painful losses, you had some optimism yesterday, that maybe we got too gloomy about the economy. So you had a good rally yesterday.

I like to look at the S&P 500, as you know, Kyra, because that's what's most likely to be in your 401(k). This is the S&P 500 so far for this year. Yesterday it was up 3 percent. That's a good move for one day. Since the April peak, though, it's down 13 percent. And year to date, it's down 6 percent. So for the year, you're probably negative on your stock investments.

So, a pause in that gloom yesterday. Futures, Kyra, are pointing to maybe a little bit of a bounce this morning. And I'll tell you why. We just got a jobless claims number that showed 454,000 people filed for jobless claims in one week. That's a lot of folks. But, it's not as many as they had feared. So that's why futures you got futures a little higher, Kyra.

PHILLIPS: This jump yesterday, how does that roll into long-term effect?

ROMANS: Yes. That's the big question. You know, we're still arguing about whether this is just a slow recovery in the economy or the recovery is so slow that the economy is actually going to start to shrink again, and that's a big debate that's happening. It probably -- that debate doesn't matter to you and me sitting at home trying to figure out, you know, how our job and our house and our own retirement is going to -- is going to recover. But at least in the very near term, you're finding that there's some stability of the stock market yesterday, maybe today.

We have a lot of ground to cover still, you know. We have a lot of economic data to look through to figure out if things really are getting better and how much better they're getting or if it's going to be a disappointing recovery, Kyra.

PHILLIPS: All right. We will cover all that ground with you. We're here to give you the air time. Christine Romans, thanks.

ROMANS: Great.

PHILLIPS: Even if your tax bill to Uncle Sam hasn't gone up, chances are pretty good that your state is taking a bigger chunk out of your wallet. Patricia Wu joining us from New York. So, Patricia, state budgets are stretched extremely thin, we know that. We've been talking about that for a while now. That means higher taxes for a lot of us.

PATRICIA WU, CNN CORRESPONDENT: Unfortunately, yes, Kyra. 36 of 50 states raised taxes or fees in the last two years for a combined total of $25 billion. That's according to the National Association of State Budget officers. More than $3 billion in new state taxes are estimated for next year. So, who is feeling the most pain? "U.S. News & World Report" looked at tax increases since 2009. Plus proposed hikes for next year and then divided it by each state's population to get a per person calculation. So, here's the breakdown. New Yorkers are taking the biggest hit, paying $419 more per person.

California comes in next at $312 more per person. Delaware, Connecticut, and Wisconsin round out the top five. But taxes are not rising everywhere. They're actually falling in a few states. For example, in North Dakota, people are paying $301 less. So, not all of us feeling that pain equally -- Kyra.

PHILLIPS: But is this per person calculation really fair because as we talked about -- not everyone pays the same taxes.

WU: That's true. Some groups are getting hit harder than others. For example, several states have raised cigarette taxes, so only smokers are feeling that one. And many new taxes target high income earners. Oregon and Hawaii have the highest rate there, 11 percent on income above $250 thousand and $200,000 respectively. California and Rhode Island have the next highest rates.

But the big earners in Rhode Island will soon be getting a break. In January, the top rate will drop to just below 6 percent, the hope that it will attract more businesses and create more jobs, which really illustrates the catch-22 that the states are facing. They have to raise taxes to fill those budget holes. If you raise them too much, and you risk having people and jobs move out of the state -- Kyra.

PHILLIPS: Thanks.

A terminal cancer patient beats the dire diagnosis and could live many more years. When would that ever be bad news when the patient is responsible for the deaths of 270 people. We're talking about a case of compassion that backfired and asking why a terrorist who was supposed to be dead months ago is still alive.

(COMMERCIAL BREAK)

PHILLIPS: It's hard, all the intrigue. Well, it had rather all the intrigue like a 007 movie mystery, a sultry female and a Russian connection. A spy ring case that's still moving pretty fast. The ten alleged secret agents are in a New York federal courtroom today for arraignment. And we've learned that the ten spy suspects are in plea talks right now, and they could be deported as soon as tonight. A lawyer is telling us that the case could be resolved soon, and right now, it looks like the defendants will plead guilty and will be sentenced to time served but that's not written in stone yet.

There's already been a talk of a spy swap, exchanging the suspects here for those convicted of spying on Russia for the U.S., and of course, one suspect definitely stands out. We're talking about Anna Chapman. She could be the most overexposed alleged spy ever. Racy pictures of her and racy details about her sex life are now out there for anyone to see and read. Chapman's not talking about the spy case, but she got plenty to say, though her lawyer, anyway, is saying that and talking about all of the steamy stuff. Here's CNN's Brian Todd.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): The attorney for accused Russian spy, Anna Chapman, tells CNN she is aware that racy photos of her have been published by the British tabloid "News of the World." That paper says it got the pictures from her former husband, Alex Chapman, who, according to the tabloid, also dished about what he claimed was her adventurous sex life. We reached Anna Chapman's lawyer, Robert Baum by phone in New York.

What is her reaction to that?

VOICE OF ROBERT BAUM, ANNA CHAPMAN'S ATTORNEY: I discussed it with Miss Chapman. She was 21 years old when she got married to Alex Chapman. He asked her to pose for some photos. She believed the photos were to be used for private purposes. She is shocked that he has kept the photos for four years after their divorce. And she is disappointed in his betrayal.

TODD: Contacted by CNN, the publicist for Chapman's ex-husband said he couldn't do an interview with us citing his need for rest. Alex Chapman had spoken with British newspapers including "The Daily Telegraph." The publicist, Max Clifford, did talk to us. Clifford said, he didn't know if Alex Chapman gave the photos to "News of the World" or not. Clifford relayed what Alex Chapman had told the papers about the demise of his four-year marriage to the accused spy.

MAX CLIFFORD, ALEX CHAPMAN'S PUBLICIST: As the time went by, as the years went by, she came increasingly distant. And she seemed to be increasingly enthusiastic to go to these parties, launches, gatherings, where the rich and famous were which is something never appealed to him.

TODD: Anna Chapman's attorney didn't comment on that, but he denies other claims by her ex-husband, including one that her father worked for the old Soviet spy service, the KGB.

BAUM: Her father does not work for the KGB. He's an embassy official who has worked in the past in Zimbabwe and Kenya, not exactly locations for KGB officials to be sent.

TODD: When we asked Robert Baum if she denies the spying charges against her, he said, so far, nothing's been disclosed to them about the government's evidence. So, they're not making any comments about the charges.

TODD (on-camera): Baum says Anna Chapman is having a difficult time, emotionally, right now. He says she's being held in solitary confinement, in her cell about 23 hours a day, let out only one hour a day for exercise. He says she is allowed no visitors aside from him, no phone calls, no access to TV or any other media.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: Another top stories beginning with the developing story that we're following for you right now. Norwegian authorities have announced the arrest of three people with alleged ties to al Qaeda. They're suspected of planning attacks in New York and the UK. Two were arrested in Oslo, one in Germany.

The northeast heat wave will hold on through this afternoon. Two deaths have been blamed on the heat. There've also been scattered power outages in some states.

It was a what-the-rant yesterday. We talked about Lindsay Lohan, her jail sentence, and how a lot of us basically have no sympathy for her weepy mascara running self. Apparently, Jay Leno was wondering what the heck is wrong with her, too. He zeroed in on her unbelievable four-letterman cure.

(BEGIN VIDEO CLIP)

JAY LENO, HOST: How stupid was this? Yesterday, while in court, Lindsay Lohan had the obscenity "F.U." written on the nail of her middle finger. How come is this girl? It's your middle finger. It's already an obscenity, OK? Isn't that redundant? Is that to remind you? Did you not know? Oh, I'm not -- this is true. Here's the real story. Take a look. Here it is.

UNIDENTIFIED FEMALE: I completed my stay, and I will continue to be drug-free. I don't do drugs. And then the urine sample came out positive for cocaine.

LENO: Now, look -- this is real. Go on her hand. We had to blot it out. But that -- no, no, no. Watch what the judge had on her hand. Look, you're going down. (EXPLETIVE WORD). Look at that. Yes. That is a tough judge.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

PHILLIPS: Political ticker. Arizona not alone in its quest to stop illegal immigration. Lawmakers in Oklahoma, South Carolina, and Utah are considering similar laws. And those measures reportedly could pass as early as next year. Meanwhile, a federal judge could begin hearing arguments next week in the Obama administration's battle to block the Arizona law. The justice department filed suit against the state, Tuesday.

The gloves are off in Arizona's Republican Senate race. The latest shot campaign ad from the wife of tea party candidate, J.D. Hayworth. She says Senator John McCain, quote, "should be ashamed."

(BEGIN VIDEO CLIP)

MARY HAYWORTH, WIFE OF J.D. HAYWORTH: Tired of John McCain's negative ads? So am I. I'm Mary Hayworth. And John McCain is hiding his record behind false attacks on my husband. John McCain has sold out the people of Arizona on immigration, bailouts, and tax increases. Now, John McCain has embraced character assassination to keep his job. John McCain should be ashamed. J.D.'s not perfect, but he is a principled conservative.

J.D. HAYWORTH, (R) ARIZONA: I'm J.D. Hayworth, and I approve this message.

(END VIDEO CLIP)

PHILLIPS: McCain aired earlier an ad blasting Hayworth as lobbyists and pork barrel spender. The Arizona Senate primary is set for August 24th.

In California, the race for governor reportedly in a virtual dead heat. A new KTVU Field Poll shows that Democrat Jerry Brown with 44 percent to 43 percent lead over Republican Meg Whitman. That poll surveyed 1,500 voters by telephone June 22nd through July 5th. Thirteen percent of those questions said that they were undecided. Brown is a former governor of California. Whitman is the ex-head of eBay.

And rest easy, America. Alvin Greene action figures are going to save us all. Have you seen what South Carolina's Democratic candidate for the Senate is saying about how to get the economy going? Now remember, Alvin Greene is the guy who skunked his opponent in the primary even though he didn't campaign at all. This is what he told a reporter for the guardian in the UK, quote, "another thing we can do for jobs is make toys of me, especially for the holidays. Little dolls, me, like maybe little action dolls, me, and then army uniform, air force uniform, and me in my suit."

"They can make toys of me and my vehicle, especially for the holidays and Christmas for the kids. That's something that would create jobs. So you see, I think out of the box like that. It's not something a typical person would bring up. That's something that could happen that makes sense. It's not a joke" unquote.

The king has been courted by some deep-pocketed NBA suitors. And tonight, LeBron James reveals which one of them gets his superstar services. Talking about milking (ph) it. He's doing an hour-long special. We'll go beyond the height.

And how did the world function before July 8, 1969? Forty-one years ago today, the U.S. issued a patent for twister. The game's so cool that it deserved a patent. Getting all sent out of shape was never so much fun.

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PHILLIPS: A man with terminal prostate cancer. Three months to live, makes some kind of miraculous recovery. It turns out he could live ten years or longer. Now, for 99.9 percent of the world, that would be great, inspiring news.

How sickening and cruel that we're talking about the Lockerbie bomber. Abdel Baset al Megrahi, the guy convicted in the Pan Am flight 103 bombing over Lockerbie, Scotland, was sent home nearly a year ago. Doctors had given him three months to live so Scottish officials sent him back home to Libya. The Justice Secretary explained that decision last year.

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KENNY MACASKILL, SCOTTISH JUSTICE SECRETARY: He is a dying man. We can show compassion to the victims Americans or Scottish. That does not mean that we should lure ourselves, debase ourselves, or abandon our values. He was justly convicted. But we are letting some message to be sent home to die.

(END VIDEO CLIP)

PHILLIPS: Well, it turns out they sent al Megrahi home to live. The man who cheated 270 people out of their lives is now cheating his own death and justice. It makes that hero's welcome that he got in Libya are the more infuriating. Megrahi's release was hugely controversial, condemned in the U.S. and the UK. Remember that 189 of the victims were Americans?

The four senators from New York and New Jersey now urging the British government to investigate the release. An editorial in the Globe Mail says that if there were any doubt that the decision was a grave injustice, then al Megrahi's new lease on life settles it.

How does something like this even happen and how could doctors who diagnosed Megrahi have gotten it so wrong? We're talking about that with Dr. Omer Kucuk, he's a prostate cancer expert with Emory University's Winship Cancer Institute right here in Atlanta.

So what do you think, doctor? Was this a misdiagnosis or is there always a chance that a miracle like this can happen for a patient?

DR. OMER KUCUK, WINSHIP CANCER INSTITUTE, EMORY UNIVERSITY: Probably it's not a misdiagnosis. Prostate cancer is known perhaps a prolonged course. Many patients live many years with prostate cancer.

What determines how long a patient is going to live is the patient's age, stage of disease, what kind of treatments he received and other co-morbidities and performance status. Co-morbidities meaning patient may have other illnesses which may also affect survival.

So it is important to put all of that information together when someone gets a prognosis or how long a patient may live after a diagnosis is made.

PHILLIPS: So, how unusual is something like this? I mean, how often have you seen something like this happen? And have you had to tell a patient, you know what, it doesn't look like you have much longer, but miraculously, somehow they defy the odds?

KUCUK: It doesn't happen very often, but there are patients who are not expected to live very long sometimes respond to therapy very well. They may receive radiation or hormone therapy or chemotherapy and may have a very good response to treatment, so they may live much longer than expected.

PHILLIPS: You know, within the doctor world and I'm sure you've talked about this, too, about the power of mind over body. And I know you don't want to editorialize on this story but you tend to wonder how can this guy even live with himself after he did what he did.

What could be going on in his mind? Is it possible that he's lying in that that hospital bed saying, I don't want to die, I don't want to die, I don't want to die, and it's having an impact on how long he lives?

KUCUK: Well, mental attitude and psychology, of course, is very important, one of the very important factors on longevity, patients who have a positive attitude and they want to live and they do everything possible to live and to beat the disease. They are more likely to have a better outcome than patients who give up, who stop helping themselves or who stop other people from helping them.

So, I think, psychology and attitude may have a major impact on how long can a person lives.

PHILLIPS: Final question. Allegedly he was going to die and he was going to die soon. Now doctors are saying he could live ten years or more. How do you even determine something like that?

KUCUK: In order to determine how long a person can live, as I said, you need information regarding the stage of the disease. The more advanced the stage of the disease, the less likelihood of living a long time. For example, patients with prostate cancer who have bone metastasis who have already failed hormone therapy and chemotherapy they typically don't live that long.

But patients who are newly diagnosed with prostate cancer, even if they have advanced disease, sometimes can live years with appropriate treatment. So a treatment is also a very important factor. If a patient receives appropriate treatment, they can live a long time with prostate cancer.

PHILLIPS: Well, as you can imagine, a lot of critics out there are saying, ok, what did doctors really know or not know, and seeing the fact that he is surviving now and could live longer have people questioning the diagnosis.

Well, it's interesting perspective. Dr. Kucuk, thank you so much.

KUCUK: Thank you.

PHILLIPS: All right, well, you go ahead and weigh in now. Tell me if you think that killers should ever be released on compassionate grounds. That compassion sure backfired this time. Go ahead and light up that blog at CNN.com/Kyra.

The Black Panthers they helped define the Civil Rights era with calls for armed self defense and iconic chants for black power. But now original members say the Black Panther name has been hijacked by a very controversial new movement. We're talking to Bobby Seal, founding chairman of the 1960s movement.

Coming up at the bottom of the hour.

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PHILLIPS: There is king-sized anticipation for tonight's announcement by LeBron James. James will finally reveal which team he will sign to play with next season, the Cleveland Cavaliers, there are several other teams that are offering pretty sweet deals.

CNN's Roland Martin is joining us to talk about, wait a minute, the Houston Rockets? What?

ROLAND MARTIN, CNN CONTRIBUTOR: I got to represent my NBA team.

PHILLIPS: Did you like the Carly Simon there. That was for you because I know how much you love Carly Simon.

MARTIN: Yes, right. She's really blowing up my iPod.

PHILLIPS: Ok. We are not going to focus on Carly Simon or the Houston Rockets. Thank you very much. We have to talk about LeBron James.

So here's what I don't understand, ok. Two-time MVP and he's never led the Cavaliers to a championship. Why all the hype? Is this overkill and now we're hearing about those hour- special on ESPN?

MARTIN: Keep in mind, Michael Jordan did not win a championship in his first several seasons with the Chicago Bulls. And so this -- I mean LeBron James is a stud. He's the guy everybody wants to have on his team.

When you say, who are the top two players in the NBA, it always comes down to Kobe Bryant, LeBron James. And so everybody wants him. So, even I --

PHILLIPS: I think he's been -- you're breaking up, Roland. Did we lose him? See, he should have worn a different jersey and cap. I think that's what the problem is.

All right. We're going to hopefully try to get back to Roland and talk a little bit more about LeBron James. We will talk about it this hour and of course next hour, too.