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John Edwards Plans 'Vigorous Defense'; Economic Recovery in Jeopardy; Casey Anthony Murder Trial; Hiring Slows, Unemployment Up; Actor James Arness Dies; Mladic Defiant at War Crimes Tribunal; Practice of Buying Border Drugs; Day Nine of Casey Anthony Trial

Aired June 03, 2011 - 14:00   ET

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

RANDI KAYE, CNN ANCHOR: Hello, everyone.

We're about 30 minutes away from a moment John Edwards must have prayed would never come. The former North Carolina Senator, former presidential running mate, former presidential candidate will appear in federal court to answer charges he violated campaign finance laws with money he obtained from a couple of rich friends and then spent on his mistress.

Edwards was indicted this morning on a half-dozen counts that could easily send him to prison if he is convicted. His lawyers says he'll mount a vigorous defense, but before he speaks to the magistrate, he's planning to speak to reporters. That should happen just about 15 minutes from now, and of course we will bring that to you live.

Edwards' lawyer spoke briefly last hour, and here's what he said.

(BEGIN VIDEO CLIP)

GREG CRAIG, JOHN EDWARDS' ATTORNEY: Speaking of the Federal Election Campaign law, no one has ever been charged either civilly or criminally with the claims that have been brought against Senator Edwards today. This is an unprecedented prosecution, much less an unprecedented civil case.

No one would have known or should have known or could have been expected to know that these payments would be treated or should be considered as campaign contributions. And there is no way that Senator Edwards knew that fact either.

(END VIDEO CLIP)

KAYE: So, while we watch and wait for Edwards, let's do this -- I want to bring in my colleague Joe Johns, who has covered the case for a long time. He is outside the courthouse in Winston-Salem and joins us by telephone. And from Washington, we're joined by CNN senior political analyst Gloria Borger.

Joe, I am going to start with you, Joe.

What do we expect, do you think, at the hearing with Edwards there in the courtroom? JOE JOHNS, CNN CORRESPONDENT: Well, the defense team is expecting that he'll enter a plea, and he's expected to enter a plea of not guilty to each and every one of these counts. He will be there with his lawyer -- you just played the sound bite -- Greg Craig, and I think you got the sound bite right there, the notion that this is unprecedented prosecution, and that he wouldn't have been and couldn't have been expected to know that this money that was contributed to him from a couple different sources would be treated as campaign contributions.

So, clearly, we're going to hear from the lawyer. I don't know the extent to which we might or not might hear from John Edwards, himself. You know, but that's about the size of it here.

We believe that this could be a very vigorously-fought case. Edwards is fighting for his life, basically, to keep his law license now, and he is very good at doing that, so we'll see.

And the rest of it, you know the background. John Edwards' problem was his girlfriend who he had a child by while he was married to Elizabeth Edwards, who later died of cancer. And the question is whether this money was contributed to cover up the fact that he had an affair from his wife, who was sick with cancer, or whether it was donated to cover up the affair so that he would remain a viable presidential candidate in the eyes of the public. And that is a pretty darn good debate.

KAYE: Certainly is.

Gloria, let me bring you in. You look at this case, I mean, once John Edwards had his eyes on the White House. Now, really, he may have his eyes on a jail cell, depending on how this goes.

Did you ever imagine that he would be in this position?

GLORIA BORGER, CNN CHIEF POLITICAL ANALYST: No. You know, I covered both of his campaigns for the presidency in one way or another, and I remember when John Edwards firsts came on the political scene.

He and his wife Elizabeth were considered sort of the real deal, a great couple. He was sort of going to be the next Bill Clinton, if you will, a Democrat from the South who had a great deal of appeal, was a populist, was well spoken, could really capture an audience.

Then he landed in the vice president slot with John Kerry, had a very compelling family story to tell. Lost his son Wade when his son was 16 in a terrible car accident, and on and on.

And so this is kind of -- you know, I think that John Kerry, himself, who was at the top of the ticket, had called this a tragedy and was disappointed in Edwards. And I think that when you really look at the indictment, the thing that kind of strikes me is that while this is a case really about campaign finance, and was this money -- should it have been campaign finance money, and was it there for limited, and so was there a conspiracy to cover it up -- KAYE: Right.

BORGER: -- when you look at the indictment, it's all about John Edwards and his personal life, and whether he was covering this up because if this had all been revealed, it would have destroyed his presidential candidacy. I mean, it's almost like something out of the movies, isn't it?

KAYE: Yes. I do want to ask you quickly, as I am looking at the indictment right here, all 19 pages of it -- but I want to ask you quickly, how do you think this will sit with the Democratic Party? I mean, their national convention is in North Carolina, where this trial very well could be taking place next year.

BORGER: Yes. Right. That's really not a happy coincidence. I'm sure it doesn't sit well.

And, of course, nobody likes to have this kind of a sideshow with any member of their political party, so it's not something they welcome, obviously. But you know what? He has been discredited as a politician for so long at this point, that I think they -- you know, he's sort of been out of that picture.

I mean, back in 2008, Hillary Clinton and Barack Obama were vying for his endorsement. Remember that? But no longer. So I think they can kind of shove it to one side and say, he's been out of the political scene for long enough.

KAYE: Yes. All right.

Our thanks to Gloria Borger and Joe Johns.

And we should also just mention that John Edwards, once again, is expected to speak in about 10 minutes or so with his lawyer outside that courthouse, and we will bring that to you as soon as it happens.

We also have our eyes on the stock market and the latest unemployment numbers. The disappointing news is affecting the markets and only increasing fears that the economic recovery is in jeopardy.

The U.S. economy added just 54,000 new jobs in May. It's a far cry from the 232,000 jobs added in April. Analysts say the cutback in hiring is widespread. In the meantime, you can see the unemployment rate worsens slightly to 9.1 percent.

Stocks, well, they are down again today. Take a look there. You can see that the Dow is down about 66 points or so. Investors are skittish after a series of disappointing reports this week.

So let's bring in CNN Money's Poppy Harlow. She's joining us from New York.

Hi there, Poppy.

We have been seeing the signs for the past few months that the economy recovery is stalling. What would you say this all means for people looking for jobs right now?

POPPY HARLOW, CNNMONEY.COM: It's a much worse than expected jobs report. And I think when you look below the numbers, it gets even worse.

What the Labor Department told us this morning is not only did our economy only add 54,000 jobs last month, they revised lower two of the previous months' readings. So those were worse than we had thought they were as well.

And when you dig into the numbers, what you see is not a good sign at all -- 6.2 million Americans, Randi, are among the long-termed unemployed. That means for six months or more, they haven't been able to find a job.

And here's the catch-22. The longer you are unemployed, it's proven the harder it is for you to find a job. Employers don't want to take you on, they think you've lost the skills. So that's a very sour story for more than six million Americans -- 2.2 million Americans have dropped out of the workforce, meaning they've looked for work for so long, they don't think there's anything out there, they're not looking anymore. And those two million Americans aren't even counted in the unemployment rate.

And also, when you look through ages, teens, 24 percent unemployment among teens; and African-Americans, 16 percent unemployment. So it's a horrible story, and it doesn't bode well for this talk of an economic recovery at all -- Randi.

KAYE: And we have also been hearing quite a bit about a double- dip recession lately. That could be a big hit for not just the unemployed, but also the underemployed, right?

HARLOW: Right. I'm so glad you brought that up, because underemployed people don't really get a lot of attention when we talk about the jobs report, but I want to show you these numbers, because this is the harsh reality in this country for a lot of Americans -- 8.3 million Americans underemployed right now.

That means that they aren't working as much as they want to provide for themselves, for their family. If you add that to the unemployed Americans, it's 22.2 million, so about 14.5 percent of the workforce.

And we had a chance here to talk to some people that are underemployed in New York, and they are not who you would expect. These are folks, Randi, with college degrees, years and years in the workforce. One woman we talked to was actually the president of a company, and she doesn't have enough work.

So take a listen to what they told us about their situation.

(BEGIN VIDEO CLIP)

DEBORAH DEFUSCO WIDGER, RETAIL GAL CONSULTING: I just always try to find other work even if it's work that's not at the rate that I would normally work at.

HENRY B. LEE, HENRY LEE PICTURES: One thing that comforts me when I am worried or upset about where my next meal is coming, there's a lot of us in the same boat. A lot of us.

(END VIDEO CLIP)

HARLOW: You're right. Those are two people out of more than eight million Americans in that situation.

Economists say if we are seeing, Randi, the slowdown that we are feeling right now, it's going to be much, much harder for those underemployed people to get the work they want. Companies are cutting costs, they're hiring temp workers. They're just not hiring full time like they used to.

But we have got full coverage of it. You can find it right here on CNN Money -- Randi.

KAYE: All right. Thank you, Poppy. Appreciate it. Have a great weekend.

HARLOW: You too.

KAYE: Our "Sound Effect" could be a fatal blow to the Casey Anthony defense. Today, jurors in Florida heard the woman accused of killing her 2-year-old daughter appear to scoff at the very scenario her defense is now based on. Over defense objections, of course, prosecutors are playing video clips of conversations between Anthony and her parents in the Orange County jail in 2008. Caylee disappeared in June of that year, you may recall, and then her mother, Casey, was arrested in mid-July.

Now, at one point, Casey's mother talks about the strains of the family and speculation in the media.

(BEGIN VIDEO CLIP)

CINDY ANTHONY, CASEY ANTHONY'S MOTHER: We're not doing well, Casey. None of us. Lee has been sick, dad's blown up at the media.

CASEY ANTHONY, DEFENDANT: Yes, I heard.

CINDY ANTHONY: Well, someone just said that Caylee was dead this morning and that she drowned in the pool. That is the newest story out there.

CASEY ANTHONY: Surprise, surprise.

(END VIDEO CLIP)

KAYE: Now, at the time, Casey claimed Caylee had been kidnapped by a nanny who turned out not even to exist. Now her lawyer says Caylee drowned in grandparents' pool , and her grandfather, Casey's dad, George, helped cover it up. George Anthony says he had nothing to do with that. I want to get more insight now from Sunny Hostin. She's a legal analyst and contributor to "In Session" on our sister network, truTV.

Sunny, nice to see you.

I want to ask you right off here, what do you make of that "Surprise, surprise"? The idea that Caylee drowned is the defense's whole case. I mean, the jury had to have picked up on that.

SUNNY HOSTIN, CNN LEGAL ANALYST: Exactly. Exactly.

And I will tell you there are sort of two schools of thought on this, Randi. Some people are saying, wow, that must be when she came up with the lie that her daughter actually died by drowning. Some others are saying, well, the "Surprise, surprise" is some sort of secret message between Casey Anthony and her father, George, because the defense theory here is that while little Caylee drowned in a swimming pool, George Anthony is the one that found her, the very George Anthony that Casey is accusing of sexually abusing her.

So some folks, Randi, are thinking that this is a positive thing for the defense, some folks are thinking that certainly, this is very good evidence for the prosecution.

KAYE: And what about these tapes? I mean, they are riveting to watch. So what do you think about the tapes and the others played yesterday of these police interrogations? Are they as damaging as they seem?

HOSTIN: They seem to be very damaging to me, Randi. And "riveting" I think is the right term.

We have been watching them for about two days. We are in day nine of this trial. And it's been reported that the jurors are really riveted watching it.

I think that what is very helpful to the prosecution, Randi, is it is showing her to be quite a liar, a pathological liar. Nothing she is saying is true.

If you believe the defense theory, she is saying she doesn't know where Caylee is, she is saying she wants to help find her daughter. The sole focus should be on finding her daughter, when the defense theory is that, in actuality, she knew her daughter was dead all along because she was a victim of drowning.

So, very, very good information I think for the prosecution. The trouble for the defense, Randi, is that they are going to have to put Casey Anthony on the witness stand to really shore up their defense, to testify about this alleged sexual abuse, to testify about the alleged drowning of Caylee Anthony. With the jury hearing her lie over and over and over again, how are they going to find Casey Anthony credible on the witness stand?

KAYE: Well, we have, what, several more weeks to find out, don't we? So we will see how that goes. HOSTIN: That's right.

KAYE: Sunny Hostin, thank you. Appreciate your expertise there.

And you can watch special coverage of the Casey Anthony trial all day long on our sister network. That is HLN. But stay with CNN for now, because Nancy Grace joins me live from the courthouse at 2:45 Eastern, just about 30 minutes from now, for the very latest from there.

And you will want to keep it here for this next story. High school graduation, a time to celebrate, a time to party. But is it a time to pray?

A judge in Texas, says no way, banning prayer at a high school's graduation ceremony this weekend. What do you think about that -- fair or not? We'll have much more on this in two minutes.

(COMMERCIAL BREAK)

KAYE: Welcome back.

It is graduation time for our nation's high school students, a time to thank teachers, parents. And for many students, it's also a time to thank God.

But students at one Texas high school won't be able to do that publicly because prayer has been banned at their school. The ban comes after a federal judge ruled in favor of Christa and Danny Schultz, an agnostic couple whose son is a senior at Medina Valley High School in Castroville.

The family said their son would suffer "irreparable harm" if anyone prayed at the graduation ceremony. The ruling also bans speakers from calling on audience members to bow their heads, join in pray, or say "Amen." It also removes the terms "invocation" and "benediction" from the graduation program.

The school's valedictorian is joining the Texas state attorney general in trying to reverse the ruling, vowing she will defy it tomorrow if not.

(BEGIN VIDEO CLIP)

ANGELA HILDENBRAND, VALEDICTORIAN: I do intend to pray in my speech on Saturday, and I feel that the court's ruling does infringe upon my rights to freely express my religious views.

(END VIDEO CLIP)

KAYE: And joining me now to discuss this is Ayesha Khan. She's the attorney for the agnostic family who filed this suit.

Aysha, why was this such an important issue for your client? When you talk about irreparable harm, what specifically would that be? AYESHA, KHAN, ATTORNEY: It's an important issue, because the Supreme Court held over 20 years ago that government can't present prayers at graduation. It's important to recognize that these are not student-initiated prayers.

These are prayers put on a formal program of ceremonies by the government which then turns around and invites students to deliver the prayers, and pre-reviews and approves their remarks. So, this is about government prayer, not about student prayer. And the government shouldn't be co-opted as a mouthpiece for religious prayer at public events that are attended by kids who are entitled to be there on a very important occasion and not to be confronted with the government taking a position on personal religious matters.

KAYE: So when the couple that you're representing says that their son will suffer irreparable harm, in what way?

KHAN: He will suffer irreparable harm because his constitutional rights get violated. "Irreparable harm" is a legal term. It does not mean you suffer physical harm, it means that your constitutional rights are violated.

KAYE: So what do you say to those like this valedictorian who we just heard from a moment ago? She wants to pray, or she wants to thank God. So do others at their graduation.

What do you say to them?

KHAN: Sure. I support her interest in praying. She can pray with other students. She can attend a baccalaureate service at a church before the graduation ceremony.

She's just not allowed to co-opt a government podium as a mouthpiece for a religious presentation in which others are invited to join and then pressured to feel like they have to join, and they should stand, or they receive disapproving stares, disapproving comments. One woman even moved away from sitting next to my clients when they went to their older son's graduation when they declined to stand.

We have evidence in the record that lots of students feel forced to stand. Band members are required to attend and required to stand. They don't have an opportunity not to participate, and those that do not participate get disapproved by the community.

KAYE: All right. Ayesha Khan, we appreciate your coming on and sharing your side of this.

Now I want to turn to Kelly Schackelford. He's an attorney for the valedictorian that I showed you earlier, Angela Hildenbrand, who wants this ruling badly overturned.

Mr. Schackelford, where do things stand right now with that?

KELLY SCHACKELFORD, ATTORNEY FOR VALEDICTORIAN: We have filed an emergency appeal to the Federal Court of Appeals because we think this is clearly unconstitutional.

What Ms. Khan just said, for instance, is not true. This isn't government prayer. It's the very opposite of that.

This valedictorian was never told by anybody what to say. She won the right to give her personal address, which is what a valedictorian address means, by getting the best grades. And the idea that one citizen can come in, file a lawsuit to censor or gag or discriminate in this case against another student is something I think completely out of line under any precedent anywhere.

You can't have a citizen come in and say, I'm scared that so and so is going to express a belief I disagree with, so, please, government, enjoin and gag them from saying that. That is not the law. The First Amendment works the exact opposite way.

KAYE: What is it that the valedictorian would like to say, that she is hoping to say?

SCHACKELFORD: Well, the very things that the judge has banned, that she can't, for instance, have a prayer, she can't mention things about her faith in a prayerful way that the judge would not allow. And so, essentially -- again, Ms. Khan is talking about suing the government and what the government can do. Certainly, the government's job is to be neutral.

The government shouldn't push prayer, and the government should not ban prayer. The job of the government is really to be neutral in that matter. And what they are trying to do here is to make the government hostile, to kind of make schools places of religious censorship where religious kids get discriminated against.

KAYE: Let me jump in here, because we have 10 seconds, so just a very quick answer.

The judge has said though that if anybody violates this, they could face jail time. So this valedictorian that you represent, if she goes ahead and does this, and this isn't overturned, and she mentions prayer and all the things she shouldn't be mentioning, according to the judge, is she willing to face jail time?

SCHACKELFORD: Well, we're going to have to wait and see what the Court of Appeals say, but you're right. I mean, literally --

UNIDENTIFIED FEMALE: No, you're wrong.

SCHACKELFORD: -- you could have somebody going to jail for praying, if that were happen, if contempt were to be pushed. And she has even received threats, and the police are having to protect her because she wants to pray at her graduation as part of her valedictorian address.

KAYE: All right. We will leave it there, Kelly.

And, Ayesha, I appreciate your time. And we want to know what you think. Should high school students be allowed to pray at their graduation? You heard the debate right there, a powerful issue.

Join the conversation, would you, on our blog? CNN.com/Ali. You can also post on Ali's or my Facebook and Twitter pages. I know this has a lot of folks pretty heated, so let us know what you think.

Many babies who were born with HIV are now old enough to have their own children. But the question is, is it safe? Dr. Sanjay Gupta has one mom's story right after the break, so don't go anywhere.

(COMMERCIAL BREAK)

KAYE: Many babies who were born with HIV are now old enough to have their own children. How safe is this given that HIV-infected women have a 25 percent chance of passing the virus to their child?

Dr. Sanjay Gupta has one mother's story.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (voice-over): Lolisa Gibson didn't always want to be a mother.

LOLISA GIBSON, CONTRACTED HIV FROM HER MOTHER: I wasn't ready for a baby. I was too busy focusing on my career and focusing on changing the world.

GUPTA: Changing the world by teaching people about HIV. You see, at age 17, Lolisa learned that she had AIDS. She was watching television when her doctor broke the news to her by phone.

GIBSON: The TV went black, everything else went black, like nothing else mattered. Now it was like, wow, I'm going the die.

GUPTA: Lolisa hadn't done drugs. She had had sex, but used a condom.

What she didn't know was that her mother was HIV-positive and had passed the virus on to her at birth or through her breast milk. She and her mother are now both on medication and in good health.

When Lolisa met Daryl Hunt, she told him she had HIV and she insisted on safe sex.

DARYL HUNT, LOLISA'S FIANCE: I just felt like I loved her and that we had a very good connection, and that -- well, it was just worth it.

GUPTA: But one night the condoms failed, and to her surprise, Lolisa got pregnant. But unlike her mother, she knew she could protect her unborn child.

DR. ANDREW WIZNIA, DIRECTOR, PED. HIV SERVICES, NORTH BRONX HEALTHCARE: I think that the vast majority of infections from mother to child are preventable. There's no reason that an HIV-infected woman who, even though they have had the virus since birth, that they cannot have a child. Given the current therapies we have, we believe that the transmission rate can be less than one percent even in that population.

GUPTA: Lolisa stuck with her antiretroviral medication. She was tested regularly. And after little Daryl was born, he took antiretroviral medicine as well.

It worked. He's HIV-free, as healthy as any little boy you might find.

Lolisa wants to be a role model.

GIBSON: We try to get involved in as many things as we can together just to show people -- because, again, like, there wasn't anyone like that that I could see when I first found out. So just to show people that you can still find love or find happiness or have a good family. You can do whatever you want with HIV.

GUPTA: Dr. Sanjay Gupta, CNN, reporting.

(END VIDEOTAPE)

KAYE: And you can catch a special edition of "SANJAY GUPTA MD," "AIDS Turns 30," this Saturday at 7:30 a.m. Eastern Time.

Assisted suicide advocate Dr. Jack Kevorkian died today in Michigan. He had been hospitalized for pneumonia and a kidney-related ailment. Kevorkian helped more than 100 terminally ill people end their lives during the 1990s, earning him the nickname "Dr. Death."

Dr. Sanjay Gupta sat down with Kevorkian at their alma mater, the University of Michigan in June last year. In fact, was the doctor's last interview.

(BEGIN VIDEO CLIP)

GUPTA: For many people life is a gift.

DR. JACK KEVORKIAN, ASSISTED SUICIDE ADVOCATE: It's a gift? Who gave it to you?

GUPTA: Is life a gift?

KEVORKIAN: Who gives it to you? Who gives you life? Your parents, right.

You weren't asked to be -- you know, Schopenhauer said it nicely. What crime has this child committed that it should be born?

GUPTA: It's a profound -- that's a deeply pessimistic thing to hear.

KEVORKIAN: But it's very sensible.

GUPTA: Is there some virtue in simply being alive?

KEVORKIAN: No. I always all my life, if I wasn't born and you gave me that question, I would say, I don't want to be born.

(END VIDEO CLIP)

KAYE: This weekend marks the 30th anniversary of the first reported case of AIDS. Next, we will meet a CNN Hero trying to change attitudes about the disease one person at a time.

(COMMERCIAL BREAK)

KAYE: This weekend will mark the 30th anniversary of the first reported case of aids. Public attitudes toward the disease have come a long way, but it has not been easy. Patricia Sawo is an HIV positive woman in Kenya whose story highlights how things have changed and how much remains to be done. She is this week's CNN HERO.

(BEGIN VIDEO CLIP)

PATRICIA SAWO, HIV POSITIVE AND COMMUNITY CRUSADER, KENYA: Back in 1990s, I believed that aids was actually a punishment from God. When I personally realized I was HIV positive, I was like oh, my God, how can this happen to me? I fasted and prayed for years hoping that I would be healed. When I went public, I lost my job. My husband lost his job. The landlord wanted us out of his house. The stigma was terrible. I realized that I had been wronged. My mission is to change people's attitudes about HIV.

All you need is accurate correct information.

We need to share information with the people that HIV is not a moral issue. It is a virus. I do a lot of counseling and when I'm helping somebody else who is HIV positive, I want them to know that you can rise above this. The 48 children at the Center, most of them saw their parents dying of Aids. My HIV status has brought some kind of bond. I provide that motherly love and all of the basic needs. HIV, it's making me a better person. We want to be there for people. If we have it, we share it out. It is what I want to do, because it is what I am meant to do. God has his own ways of healing. And so, for me, I'm healed.

(END VIDEO CLIP)

KAYE: Sawo currently cares for nearly 100 children through her Center and educated hundreds of people in her community. Remember, every CNN HERO is chosen from people that you tell us about. So to nominate someone who is making a difference in your community go to CNNHeroes.com.

(COMMERCIAL BREAK)

KAYE: A lot happening right now. Let's catch up on the stories that you may have missed. Once the golden boy of politics, John Edwards is now a criminal suspect indicted today on charges that he illegally used more than $1 million in campaign donations to pay his mistress Rielle Hunter. He will speak to reporters shortly in Winston- Salem, North Carolina, where he is expected to make his first court appearance any minute now. This is what his attorney said a few moments ago.

(BEGIN VIDEO CLIP)

GREG CRAIG, ATTORNEY FOR JOHN EDWARDS: No one should have known or would have known or would have been expected to know that these payments should have been treated as campaign contributions, and there is no way that Senator Edwards knew that fact either. He will enter a plea of not guilty. He has broken no law. And we will defend this case vigorously.

(END VIDEO CLIP)

KAYE: The former Presidential candidate is charged with six counts, including conspiracy and issuing false statements and violating campaign contribution laws. These charges come after a two- year Federal investigation.

Another alarming sign of a weakening economy the U.S. economy added 54,000 new jobs in May, and a far cry from the 232,000 jobs added in April and a major disappointment to economists. Analysts say that the cutback in hiring is widespread. In the meantime, you can see the unemployment rate worsen slightly to nine point one percent. These are the latest sign that the economic recovery is in jeopardy.

"Gunsmoke" actor James Arness died today of natural causes at the age of 88. Over his 20 years on "Gunsmoke," 1955 to 1975 he worked with actors such as Harrison Ford, Burt Reynolds and Betty Davis. He also served the country in World War II and earned a purple heart with a wounded right leg.

Yemen's President under fire and wounded. A key U.S. ally edging ever closer to all-out civil war. The latest right after this.

(COMMERCIAL BREAK)

KAYE: Defiance and tough words at the U.N. War Crimes Tribunal today. Former Bosnian Serve Military Commander Ratko Mladic faced the tribunal in the Netherlands for the first time still his capture last week. He is accused of ordering the worst massacre since World War II. Fionnuala Sweeney is here with us for much more on this very high- profile case. What do you think of his behavior in court?

FIONNUALA SWEENEY, CNN INTERNATIONAL CORRESPONDENT: Well, there is a lot of anticipation about this court appearance and whether he would actually say anything. The judge advised him he had the right to remain silent as all of the charges of genocide were read against him. But he did not keep silent and he described these charges as obnoxious, and the charges relate to the war, the Muslim-Croat war in which 200,000 people died between 1992 and 1995, and the alleged involved in the massacre at Srebrenica where nearly 8,000 Muslim men and boys were slaughtered.

There was some concern whether he would be able to appear at all, because the lawyer said that he was too ill, but the physicians at the Hague said he was fine, and the question is really whether he does understand the indictments against him. But they said that he needs to read them and he needs three months to read the charges against him.

KAYE: And he said there were very large words, or something of that sort.

SWEENEY: Well, he was given a shortened version verbally, so we have to see what tactics he will try to employ.

KAYE: All right, moving on to Yemen and the President there wounded today along with the Prime Minister and several others. What happened there?

SWEENEY: Well, we have been talking about this for a few weeks that Yemen is at a tipping point where it is not a full-on civil war, because the fighting is between the elite in the Capital Sana and also the tribes outside but what took place is the Friday prayers and the President and his entourage went to the Mosque to pray, and two projectiles were slamming into the Mosque, and as a result the President was initially reported to have died according to media reports, but they say that he is injured and he will appear on Yemeni television later, and they said he will appear, but at a later stage. But nonetheless, we are waiting to see, because a number of people were killed there, and seven in all we are told, but we are waiting to see if he appears, what kind of state he is in, and what he is going to say.

KAYE: And I understand that some of the bodyguards were killed.

SWEENEY: Yes, several people, it said.

KAYE: And the Prime Minister was injured.

SWEENEY: And yes, several members of his entourage as they were with him at the Friday prayers. So there is a serious situation developing in Yemen, because of the importance of the United States because of the presence of Al Qaeda, and also important for the region and the other revolutions taking place, and it is extremely violent as of late, and the question is whether or not this gives space for Al Qaeda to gain momentum in Yemen and beyond. And really to, see whether President Saleh will agree to the Gulf Corporation deal, that was done a few weeks ago and he has said he will step down, but in the last minute, he doesn't.

KAYE: All right. Fionnuala Sweeney, thank you.

SWEENEY: Thank you.

KAYE: A number of Americans are shopping for their prescription drugs across the border, and they are putting themselves at danger as you might imagine, and we will show you why, right after the break.

(COMMERCIAL BREAK)

KAYE: Governor Rick Scott signed a new law today aimed at controlling Florida's so-called pill mills. The law penalizes doctors who overprescribe painkillers.

Florida is considered the epicenter of prescription drug abuse. The federal government says that 85 percent of the powerful painkiller Oxycodone is sold in Florida, much of it to people from out of state.

The law also tightens rules for pharmacies and authorizes a prescription drug monitoring database.

A growing number of Americans are shopping for their prescription drugs across the border, either by crossing it themselves or ordering over the Internet. Authorities say they are in danger of and enriching organized crime.

Casey Wian reports.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): Everyday, Americans flock across the border to Tijuana, Mexico to buy deeply discounted prescription drugs.

UNIDENTIFIED MALE: I have an uncle that wanted me to come over here get the medicine for him and bring it back, because it is a lot cheaper.

UNIDENTIFIED FEMALE: Sometimes half, sometimes it's less.

WIAN: Even though it is legal, the State Department warns U.S. citizens should not fill their prescriptions in Mexico.

UNIDENTIFIED MALE: I do get them over here because it's less expensive and works for me.

WIAN: It says criminals impersonating Mexican law enforcement have arrested Americans with legitimate prescriptions, demanding large bribes. U.S. Authorities estimate 25 percent of the prescription drugs available in Mexico are counterfeit or substandard.

That's actually a lower percentage than many discount online pharmacies that claim to offer medicine from Canada or other countries.

UNIDENTIFIED MALE: We would say 100 percent is counterfeit.

People believe they can get it cheaper by buying it through alternate supply chains.

WIAN: Immigration and customs enforcement recently seized these counterfeit pharmaceuticals, the largest bust of its kind in Southern California. Fake Viagra, Ciallis, Ambien, Xanax, Oxycotin, steroids and diet drugs. Three-quarters of a million pills with a street value exceeding $7 million.

KEVIN KOZAK, IMMIGRATION AND CUSTOMS ENFORCEMENT: To the naked eye, even to the trained agents, those that are experts in the field, the products in many cases are virtually indistinguishable. The consumer cannot tell the legitimate product and the counterfeit product.

WIAN: Many have not enough or too much of a medicine's active ingredient. They are manufactured in places like China, Pakistan and India and in unsanitary basements, cement mixers, , even outdoors, and they contain ingredients unsafe for human consumption, such as floor wax, dry wall and paint.

Not only are consumers risking their health, their also enriching international organized crime groups.

KOZAK: So, those that are responsible for manufacturing these counterfeit drugs are also trafficking young women into prostitution, dealing in arms, dealing in narcotics trafficking and other crimes of violence. It is a very dark industry.

WIAN: In some Los Angeles county communities, people prefer to buy medicine from unauthorized storefront pharmacies, street vendors, even unlicensed doctors carrying medical bags like this one.

DANIEL HANCZ, L.A. COUNTY DEPARTMENT OF PUBLIC HEALTH: We do have programs available for poor patients where at they can get care at low-cost or no-cost. It might not be as convenient, but they can get proper medical care.

WIAN (on camera): So there's no real reason for anyone, even if they're a low-income immigrant, to go see someone who is carrying a bag like this on the street?

HANCZ: No reason, and it can be very dangerous.

WIAN (voice-over): Authorities say the safest to obtain prescriptions is through large chain pharmacies who have direct relationships with drug manufacturers or through Internet sites with this seal, meaning they're accredited by the National Association of Boards of Pharmacy.

Casey Wian, CNN, Los Angeles.

(END VIDEOTAPE)

KAYE: Jurors in the Casey Anthony trial hear from her directly from stunning jailhouse recordings as she talks to her parents. We talk to Nancy Grace about what the conversations reveal. Keep it here.

(COMMERCIAL BREAK)

KAYE: Well, the drama just keeps building in the Casey Anthony murder trial. The defense fought to keep it from them, but jurors heard more conversations Anthony had with her parents from inside of the jail. The 25-year-old is charged with murdering her 2-year-old daughter, Caylee, and what she says in the recordings is telling and even refutes the core of her defense.

(BEGIN VIDEO CLIP)

CINDY ANTHONY, CASEY ANTHONY'S MOTHER: We're not doing well -- none of us. Lee has been sick. Dad has blown up at the media.

CASEY ANTHONY, ACCUSED OF MURDER: Yes, I heard.

CINDY ANTHONY: Well, someone just said that Caylee was dead this morning, that she drowned in the pool. That is the newest story out there.

CASEY ANTHONY: Surprise, surprise.

(END VIDEO CLIP)

KAYE: HLN's Nancy Grace is following this case closely, she joins me now from Orlando.

Nancy, what do you think about that? "Surprise, surprise" two key words. How will the jurors see this?

NANCY GRACE, HOST, HLN'S "NANCY GRACE": Well, Randi, it was a very emotional day in the courtroom. Father George and mother Cindy Anthony were sitting there as this was played, and they heard not only this jailhouse video, but others similar to it where Tot Mom goes viral and starts yelling at them and shrieking at them that she is the victim. She is the victim.

And of course, then, you hear this remark that you accurately pointed out that flies in the face of the defense that Caylee drowned by accident in the Anthony's swimming pool in the backyard, and that George Anthony, a former cop, Randi, decides not to call 911, but to go bury his beloved granddaughter's body -- not bury it, throw it in a makeshift pet cemetery and densely wooded area near their home.

It's just beyond belief, and these jailhouse videos completely torpedo the defense argument.

KAYE: And you mentioned the father, George Anthony, the defense has claimed that he sexually abused her, and that is the argument for why Casey is so good at telling lies. Yet, let's listen to what she tells him from jail, and I what is your response after this.

(BEGIN VIDEO CLIP)

CASEY ANTHONY: I can't say this enough to you, you have done everything that you possibly can, and you are the best father and by far the best grandfather that I have ever met. I'm going to say that and I mean that with all my heart.

(END VIDEO CLIP)

KAYE: Nancy, you're watching this much more closely than I am, but doesn't this punch another hole through the defense's argument?

GRACE: It really does. Now, the defense may argue in closing arguments that she was conditioned to act like she loved her father, a lot of molestation victims never tell anyone they've been molested.

But here's the kicker, would you leave your 2-year-old little girl alone with a man that molested you? That forced you to have oral sex and then packed you off in the school bus to go to school? No, absolutely not.

And there's so much more, Randi. For instance, her parents are just literally leaning on each other in one of these jailhouse visits, Cindy can hardly hold her head up. She says, hey, did you hear that the reward to find Caylee has gone up to $250,000, and Tot Mom goes, that is my bail. It could go toward my bail. It's the reward money to find Caylee.

KAYE: How is the defense going to refute this? I mean, this was a pretty big day for the prosecution?

GRACE: Well, and there is more of it to come. I think that the only way the defense can refute it, they've made a motion to bring in a grief counseling expert who has not treated Tot Mom, I might add. So they may have an evidentiary problem. You know, you just can't bring in doctors and counselors that have never treated the defendant or anyone related to the case.

They are also trying to bring in medical records of father George Anthony's, somehow trying to pin this on him. I think they will battle it in those ways and they will also, most likely, claim that as a molestation victim, she covered her whole life and is covering up until the moment she takes the stand.

KAYE: All right. Nancy Grace, always great to have you on. Thank you for making the time. I know you are watching the busy trial, so we much appreciate it.

GRACE: Thank you for inviting me, Randi.

KAYE: Thank you. Have a nice weekend.

And you can watch the special coverage of the Casey Anthony trial all day long on our sister network, HLN.

We will be right back.

(COMMERCIAL BREAK)

KAYE: Time now for my "XYZ."

Here is a question for you: How far would you go to get an iPad? Well, chances are I hope not as far as one teenager did in China. According to "The Shanghai Daily," a 17-year-old student sold his kidney to buy an iPad 2. Sure you have two kidneys, but who sells one for the latest, greatest tablet?

Apparently the boy couldn't' afford the iPad, so when someone contacted him online offering to help him sell his kidney for about $3,000, the boy agreed to the deal. He traveled to the Hunan Province and had his right kidney removed.

Now I have reported on organ brokers in China before, but never have I seen this done for an iPad. As you can imagine, his mother was a bit curious when he pulled out his brand new tablet, and that's when he confessed he went under the knife to buy it. Now mom contacted police, but they never could find the organ broker who helped him sell his kidney, which is illegal by the way.

The boy, who has had serious health complications, sadly, as a result of this surgery, and now he reportedly regrets selling his kidney for a shiny new iPad 2.

That's going to do it for me, but CNN NEWSROOM continues now with Brooke Baldwin.