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Cowboy Sues For Engagement Ring: Casey Anthony Sentenced; Ex- IMF Chief Won't Plead Guilty; Bear Kills Hiker at Yellowstone; Man Steals $200,000 Picasso; America's Future in the Next Frontier; Obama Seeks $3-$4 Trillion in Cuts; Casey Anthony Back to Prison; Labor Report Blows Past Expectations

Aired July 07, 2011 - 10:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: She was smiling when she came into the courtroom, but Casey Anthony's face got pretty grim, pretty quickly when she heard the judge's sentence.

(BEGIN VIDEO CLIP)

JUDGE BELVIN PERRY JR., CHIEF JUDGE, FLORIDA NINTH JUDICIAL CIRCUIT: I will sentence to you one year in Orange County Jail imposing a $1,000 fine on each count, all four counts, to run consecutive to each other giving you credit for the time that you have previously served. Mr. Baez, Mr. Mason --

(END VIDEO CLIP)

PHILLIPS: Judge Belvin Perry right there taking four charges of lying to police seriously. We have David Mattingly at the courthouse in Orlando, senior legal analyst Jeffrey Toobin in New York and on his way into the studio once again, criminal defense attorney and former prosecutor, Holly Hughes.

David, we'll start with you. It looks like end of July, possibly sometime in August. Casey Anthony will walk free.

DAVID MATTINGLY, CNN CORRESPONDENT: That's right. Casey Anthony is not free, not yet. The judge did throw the book at her, but because these are misdemeanor charges it wasn't a very big book.

She's getting the maximum four years in jail, a $4,000 fine, $1,000 for each of the counts. The judge is now waiting on a legal calculation of the time she has served so far and the credit she gets for good behavior to determine how much of that four years will be shaved off.

We're obviously not looking at years. We're not looking probably at months, but probably something less than that. Again, within the hour, we should know exactly how little Casey Anthony has left behind bars.

But when she gets out, we are also finding out today that the state will definitely pursue getting some sort of compensation from her for all the costs incurred by the county, by the investigation and by the prosecution of this case. And nobody knows right now what that bill is going to be. It has to be astronomical because of how long this has gone on, how many man hours have gone into this and how many resources were called into play, both by the investigators and by the prosecutors in putting this case on.

So, Casey Anthony's troubles by far not over, even when she does get out of jail, but the headline here, Casey Anthony will be free. We're just waiting for the next few minutes to find out when, Kyra.

PHILLIPS: Jeffrey Toobin, talk about a no nonsense judge. When the question of appeal came up, the first thing that came out of the judge's mouth is, would she be able to pay for that?

JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: Well, and also, why would she appeal? She won this trial. This is a woman who was looking at the death penalty a few days ago.

Today, we're talking about whether she'll serve another month or two. I mean, the difference is so vast, you can't even overstate it. So, you know, there really is nothing to appeal.

She is not a convicted felon in connection with this case. These are four misdemeanors. This is a win for her. She should take her marbles and go home.

She should go and live a life of obscurity. She should not break the law anymore. She should move out of Florida, but I can't imagine why she would want to appeal this case. She won this case.

PHILLIPS: Holly Hughes, you were watching her and turned to me and said, you know what, she's creepy. Why?

HOLLY HUGHES, CRIMINAL DEFENSE ATTORNEY: The first thing I noticed when she walked out of the door into the courtroom this morning is the difference in her appearance.

Now, we know that the prosecution had those pictures during trial showing her sort of as a sex kitten. She's dancing on a pole. She's grabbing another woman's body parts. She's out there in hot body contests.

Well, what they did as a defense team was kind of dumb that down. You know, no makeup, very severe, hair pulled back. You know, her prominent ears were visible and very plain, trying to distance her from that whole style.

When there's no jury in the room and it doesn't matter and nobody to play with, she walks out today with the hair completely loose, flowing and she's playing with it the whole time she's sitting there, the whole time.

Then when the judge says to her lawyers, I reserved ruling on your motion for mistrial. You know, Cheney Mason stands up, we withdraw that, she starts laughing. It just creeps me out because she is so smart and she knows exactly what she did. She's sitting there and this is just a big joke to her because we know she's a convicted liar. Her attorney told us in opening she's a liar and so now she's sitting there and she's feeling vindicated that all of these lies and all of this acting in front of the jury has paid off.

And it just gave me the shivers when I saw her laughing and having a good time. I mean, your baby's still dead. This isn't funny. There's nothing funny about this. It just took me aback.

The whole appearance, playing with the hair, the definitely -- we are now projecting a different image because it no longer matters. There's not 12 people in the box we have to fool anymore.

PHILLIPS: I have a feeling this won't be the last time we talk about Casey Anthony. Holly, thanks a lot. Jeff Toobin, appreciate it, guys. We'll be talking about it more.

Let's go to New York where the sexual assault case against Dominique Strauss-Khan appears to be crumbling. We're getting word that Strauss-Kahn's lawyer says he won't plead guilty to attempted rape or anything else.

And this comes on the heels of a meeting between his attorneys and prosecutors yesterday. CNN's Susan Candiotti has the latest. Susan, what do we know about this meeting?

SUSAN CANDIOTTI, CNN CORRESPONDENT: Well, not much because neither side is saying much other than to describe it as being constructive. Afterwards the D.A.'s office only put out a statement saying, we're still investigating.

So as far as we know, the next time DSK is scheduled to appear in court is at July 18th. Meantime, the maid's attorney wants a special prosecutor, but it's not going to happen.

The Manhattan district attorney who is leading the investigation and that is not going to change. In a four-page letter, the maid's attorney, who stands by her accusations that she was sexually assaulted by Dominique Strauss-Khan, excoriates the D.A.

Saying he hasn't been fair, impartial and charges him with leaking damaging and false information about his client to the media. Attorney Ken Thompson admits his client made mistakes, even lied, but wants the D.A. to prosecute Strauss-Khan.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: She wants to get on the stand at trial, despite everything that people have been saying about her. She wants to get on stand at the criminal trial and testify about what happened in that hotel room.

(END VIDEO CLIP)

PHILLIPS: The D.A.'s office issued a statement defending its investigation, adding, quote, "any suggestion that this office should be recused is wholly without merit."

Now, as we said yesterday, the D.A. and defense attorneys huddled over what may happen with the case. Many experts say it's falling apart thanks to serious credibility issues with the maid. She's admitted lying about her past.

DSK attorneys called the meeting, as we said, constructive and they're moving on. But there's also an issue over what the maid said in a recorded jailhouse phone call with a friend a day after the attack.

Her attorney says she's paraphrased as saying DSK has a lot of money and she knows what she's doing. But the lawyer challenges whether that call was correctly translated from her native language and he wants to take a listen to that audiotape.

Eventually, they'll get to take a look at it, but they don't know exactly when, Kyra.

PHILLIPS: All right, Susan Candiotti live out of New York. Susan, thanks.

Celebrities, murder and terror victims, many of their phones hacked. It just goes to show that some journalists will do anything to get the scoop on the story. We're talking about British writers with the "News of the World" newspaper who allegedly hacked into cell phone voice mails.

Now British lawmakers are debating what to do. "News of the World" is part of Rupert Murdoch's media empire, which includes the "Wall Street Journal," Fox News, and the "New York Post." He actually calls the allegations, quote, "deplorable and unacceptable." After Hugh Grant says he's the latest celebrity to be hacked by the tabloid.

(BEGIN VIDEO CLIP)

HUGH GRANT, ACTOR: It's one thing for there to be a very bad newspaper in the country, but when you start to realize it's not one, it's all our tabloids who have been shockingly out of control for a long time.

And when you realize how much collusion from the police and how much collusion from our lawmakers, from our government, who need these tabloids, especially the Murdoch press to get elected, you start to think, I'm not proud of my country anymore. This is not the democracy I thought I was proud of.

(END VIDEO CLIP)

PHILLIPS: Jon Mann, what does "News of the World" have to say?

JONATHAN MANN, CNN CORRESPONDENT: I'll let everyone in on a secret and I'll tell you reporter to reporter. British journalists do some of the finest reporting in the world and they do some of the foulest.

It's a fun place to read the newspaper every morning. Nothing fun about this, allegations as you say rape victims, murder victims, terror victims, the families of dead servicemen, all these people had their phone messages hacked by the "News of the World."

Well, the woman who was the editor of "The News of the World" that is now still even higher in the organization, Rebecca Brooks had this to say. She said that she is sickened that these events are alleged to have happened.

Let's make it clear. This isn't just an allegation. People have already gone to jail for these hackings. The question now is how many more happened to how many more innocent people? It's the scale of this, thousands of people shocking so many people so many people even in journalism.

Here's what some other newspapers had to say. The "International Herald Tribune," for example, said that outrage is a word badly weakened by overuse. This is unfortunate because it would be good to have now, at full strength, for the despicable thing British tabloid "News of the World" is accused of doing.

I mean, journalists are offended that they're dragged through the mud. We're a morally diverse group. People think we're out of control here. In Britain, they're really out of control. But as we heard from -- my God -- Hugh Grant just a moment ago, it's not just journalists.

"The Guardian" newspaper had something to say about this too. Their story was headlined, "A real phone-hacking inquiry must defeat ministers' tricks." And here's the illusion to a government inquiry that's ahead inevitably, but also the fact there may be political interference.

If an inquiry is properly conducted then at the very least it will drag out a lot of hidden truths, make a lot of otherwise unaccountable people accountable and give the news media, the police and the government a lot of things to think about.

So, this isn't just a few rogue reporters. This is basically the role particular slice of British press have in national affairs and the culture --

PHILLIPS: And now it's gone to parliament, debating what to do about this. It will be interesting to see if a new set of guidelines, ethics, I don't know, is implemented because it's reached a point pretty detrimental.

MANN: The parliament doesn't really know what to do because Murdoch is so powerful, but there's another angle to this, which is the prime minister, David Cameron, his own communications director used to be the editor of the "News of the World" at the time when this was going on.

He resigned earlier this year. Partly people think because of this scandal. He's friends with Rebecca Brooks who we just heard from. So there's a real political aspect to this press scandal. It is sleazy. It is growing. No one knows where it's going to go.

PHILLIPS: We'll following the interesting bedfellows, indeed. Jon Mann, thanks.

I want to take you back live to Orlando, Florida. A judge has sentenced Casey Anthony to four years in prison for lying to investigators, but she could go free as early as July, maybe August.

Our Martin Savidge is actually in the courtroom. Marty, give us your assessment. You were inside when we got the news. What's it like on the outside of the court right now as well since the sentencing has been heard?

OK, we lost our connection -- here we go. I think we got it fired up. Marty, we lost you there for a second. Go ahead, we got you back. Start from the beginning, please.

MARTIN SAVIDGE, CNN CORRESPONDENT: I was just saying that it appears that it went pretty much the way many people thought, but it looked like maybe Casey Anthony would be getting out today.

The only reason we say that is because she's changed her appearance slightly. You may remember that throughout all of the trial she had her hair very tightly done up in a ponytail or done up in a bun.

Today, she had a very long and hanging down around her shoulders. So, definitely she had a look of a woman that was much more at ease today inside of the courtroom than she was just a couple of days -

We've heard from Judge Perry, he is saying that it appears that he has to do some math rear regarding this sentence. It was four years, but then she has served three, and on top of that Florida has what they call gain time and then they have something called good behavior, which we're all familiar with.

So he has to figure out the math on this, but he was loosely doing it in his head and he said it looks like she's going to get out end of July, maybe early August. So she's not getting out today.

Not great at reading faces but it definitely looked like there was disappointment in her own face. It may have been disappointment in her defense team's face. But of course, it also gives them a lot of time because there's a lot she has to prepare for coming back into the real world, especially the world that Casey Anthony is likely to face.

We have a lot of demonstrators that have shown up today. They're given specific cares out here in front of the court, secured very high, helicopters hovering overhead and the officers that were also standing by. So clearly this was anticipated to be a very tense day, but she's not coming out today, according to court authorities. Kyra --

PHILLIPS: Martin Savidge live in Orlando. Marty, thanks.

Preparing for the last launch of the space shuttle "Atlantis." We're going to talk live with the former "Atlantis" commander, Captain Jeff Ashby. He's going to tell us what might be next on the horizon for America's space program.

(COMMERCIAL BREAK)

PHILLIPS: Checking stories cross country this morning, in San Diego, the U.S. military investigating a helicopter crash at Camp Pendleton. One Marine was killed, five others survived. It's not clear exactly what went wrong.

Officials at Yellowstone National Park say for the first time in 25 years, a grizzly bear mauled and killed a hiker. It's believed the man may have surprised the mother bear and her cubs.

Check out this surveillance video from San Francisco. See the guy carrying something under his left arm? Police think it's a Picasso worth $200,000. Cops think the brazen thief just walked right out of the gallery with it. Police have impounded a taxi that was used as a getaway vehicle.

It's the end of an era and a new beginning for NASA as we prepare for the final shuttle launch. President Obama, though, envisions going beyond the moon now, or the International Space Station. Take a listen.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: We've set a goal to lets ultimately get to Mars, a good pit stop is an asteroid. We haven't identified the actual asteroid yet, in case people are wondering.

But the point is, let's start stretching the boundaries so we're not doing the same thing over and over again. But, rather, let's start thinking about what's the next horizon, what's the next frontier out there.

(END VIDEO CLIP)

PHILLIPS: What is the next frontier? The president talked about Mars, so how will we get there? Let's talk about the future with someone who's been an integral part of the program's success, former NASA astronaut and retired U.S. Navy Captain Jeff Ashby joining me live out of Colorado Springs. Great to see you, Jeff.

JEFF ASHBY, U.S. NAVY (RETIRED): Great to see you, Kyra.

PHILLIPS: All right, let's have a reality check here. We could get really technical and say, OK, NASA has to develop a new heavy-lifter booster if we need to get beyond earth. What do you say? Is that possible looking to the next future? Is Mars a reality?

ASHBY: Well, Mars is a reality, but the first thing we have to do is figure out how to get safe and affordable transportation just off our planet into lower orbit. If we spend all of our funds transporting to lower orbit we have little remaining to go beyond there.

PHILLIPS: So, do -- what's the reality? What's the time frame? If we listen to the president and say, OK, this is what we really want to do, we want to go beyond doing what we've done for so many years, are we talking a year from now, two years from now, 10 years from now?

ASHBY: The hardware development for something like a heavy-lift booster, which we need, typically takes six, eight, even 10 years. The shuttle took ten years to first flight. But really, again, it will be paced by the amount of funds that we have, the speed of cash some call it.

And that will largely be determined by our ability to transition to commercial modes of space transportation to lower orbit, which will be much more affordable.

PHILLIPS: And that's where you're working now actually as we approach the final shuttle mission. I want to talk about commercial human space flight. You work for Blue Origin now. Tell me, when am I going to be able to go up in space? Am I going to be able to afford it?

ASHBY: Well, the short answers to those two questions are, it depends on how much CNN is paying you and the time frame will be as soon as it's safe.

I think Richard Branson summed it up very well when he was quoted as saying something like, my wife would never forgive me if I didn't bring the kids back.

As you may know, he is planning to fly his family on the first flight of his vehicle, first commercial flight, and I think there's no greater statement to the safety of a vehicle than to take it on yourself.

PHILLIPS: You know, I've got to ask you the personal questions now. You know, I've known your story -- I've known you for more than a decade and I love it when you tell folks.

I was a kid, a dishwasher, watching the coverage of the man on the moon and I said to myself, I'm going to be an astronaut. You did it. So, what are you reflecting upon as we approach the final mission, Jeff?

ASHBY: Yes, I was 15 years old when Neil Armstrong walked down that ladder. It set in course a series dreams and goals that led me through the life that I've passed.

But, you know, right now for me is another time of great inspiration. I am so looking forward to this transition from government-controlled space access to one that is controlled by the free market and that offers safer and more affordable means of transport with competition.

I think over time, as we get better and better at this, the costs will come down. And we'd like to see the costs come down to that of approximately of a luxury car. We think we can get it down that low with the safety that comes along with that.

PHILLIPS: We're looking at video of one of your missions. I think this is "Columbia." You talk about moving forward and talk about people like me and others that will be able to actually experience what you experienced. For our viewers who think about that, dream about that, explain to them what it feels like to go up in that shuttle. Explain how you've told me in the past, how it's a spiritual experience.

ASHBY: Well, a trip to space, seeing the earth from the perspective -- or vantage point of space is life-changing. It really changes the way you look at our planet, the way you think about our existence. And I would like for everyone to have the opportunity to go see that vision.

It is truly life-changing. The first steps commercially will be to fly people on these short suborbital flights which will give them a glimpse from that vantage point. Hopefully we'll get so good at transporting people to lower orbit that eventually the cost will come down for orbital flights and enable us, America, to stay as the leader for space exploration in the world.

PHILLIPS: Well, it's given you an absolutely incredible and unforgettable career. Captain Jeff Ashby, always great to talk to you. Thanks for your perspective. I hope we get to do it again.

ASHBY: Thanks, Kyra. Let me just say that my hats off to NASA for near completion of the shuttle program. They're a great team. I wish the entire team God speed on the final launch tomorrow of "Atlantis."

PHILLIPS: We're keeping our fingers crossed that weather is good. Jeff, thanks so much.

And, again, our coverage of the shuttle's final mission begins tomorrow morning, 10:00 Eastern right here on CNN.

And after the break, Will and Kate wrapping up their charming Canada tour. They're actually headed to Los Angeles, California, now. We're going to talk about it next.

(COMMERCIAL BREAK)

PHILLIPS: Kim Kardashian feels like an animal. The office retires one boss and gets another and "SHOWBIZ TONIGHT" host A.J. Hammer joins us to talk about both. A.J. --

A.J. HAMMER, HOST, "SHOWBIZ TONIGHT": Kyra, yes, Kim Kardashian, the latest star now to proclaim, you know what, not always easily living the glamorous life of a celebrity.

Kim K. is gracing the cover of the August issue of "Cosmopolitan" magazine. Here's what she tells Cosmo, "sometimes I feel like a zoo animal. I'll be at a restaurant and someone will put their phone in front of my face and take a picture without saying hi." Something tells me Kim is not going to be getting a whole lot of sympathy for her comment. Let us not forget, Kim rose to fame after a sex tape was leaked and since then reality TV cameras have been following her every move.

Thanks to all of that, Kim and her sisters made $65 million last year. So, Kyra, well, I'm sure nobody wants to have their meal interrupted. I'm hoping that Kim will somehow find peace with her extraordinarily privileged life as a zoo animal.

PHILLIPS: OK, I loved "Boston Legal" so there's a new reason here to check out the new head CEO in "The Office."

HAMMER: You and I have the same TV taste. "Boston Legal" was always one of my favorite shows and everybody has been wondering who's taking over the manager position that Steve Carell's character left vacant on "The Office" last season.

And while we've now learned of his replacement, I'm here to tell you what will only be temporary because Dunder Mithland's (ph) new manager will quickly become their new chief executive and I'm happy to tell you, NBC has announced that the great James Spader, who many people know from "Boston Legal" among other shows.

He will be joining the show "The Office" full time for the new season repricing his role as Robert California. But it turns out Spader's character on the career fast track. He's hired over the summer's "The Office" manager, but he quickly gets promoted to CEO of the company, taking over the role left behind by Kathy Bates.

That means the manager position is still vacant, but Kyra, James Spader, also one of my favorite actors. I think he is the absolute perfect choice to be joining us up with "The Office" full time.

PHILLIPS: Indeed, if we got William Shatner in there with them, would that be a hoot or what. Let those two guys go, ad lib their way through.

HAMMER: I would love to see that.

PHILLIPS: I'd love it. All right, if you want information, everything breaking in entertainment world, A.J. has it every night on "SHOWBIZ TONIGHT" at 11 p.m. on HLN.

Coming up, she walked into court escorted by an armed guard and expected to walk right out a free woman. Casey Anthony seemed a little surprised at her sentence. The latest from Orland next.

The sports doctor who treated Tiger Woods pleads guilty to smuggling unapproved drugs into the U.S. We'll tell you what the substances are.

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories now:

The president will meet with top Senate and House leaders for talks on the debt ceiling. "The Washington Post" reporting they'll put Medicare and Social Security changes on the table. That's a big about-face and it drives home the urgency of the debt situation. The government's got until August 2nd until it runs out of money to pay its bills.

An attorney for Dominique Strauss-Khan says the former IMF chief won't accept a plea bargain and won't plead guilty. Prosecutors and attorneys met yesterday to discuss the sexual assault case.

And the final space shuttle mission set for tomorrow. Weather permitting, Atlantis, along with four astronauts, will lift off to International Space Station for a 12-day mission. It caps NASA's 30- year-old shuttle program.

All right. More on that new proposal by President Obama would change the way we Americans live our lives. The president wants $3 trillion to $4 trillion cuts in the next decade and entitlements would be on the table.

CNN's Brianna Keilar at the White House where the president is hosting congressional leaders for debt ceiling talks.

So, Brianna, you just got new information, I understand.

BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT: Yes, that's right. What we've learned, Kyra, is that this proposal being discussed by President Obama and House Speaker John Boehner is so ambitious that some negotiations might actually have to stretch beyond that August 2nd deadline for raising the debt ceiling. The details -- I'll be honest with you -- some of them are very dense, but they matter. As you said, they will affect all Americans.

If you care about the cost of living increase for Social Security, if you care about your mortgage interest, deduction on your taxes -- these are things that could affect you. And so, it's important to listen up.

President Obama, we learned yesterday, was considering a much more ambitious plan, $3 trillion to $4 trillion in deficit savings. Such an ambitious plan it would require putting all entitlements, Social Security, Medicare, Medicaid on the table, and also tax reform in addition to spending cuts.

That is a whole lot to tackle. This is something House Speaker John Boehner was asked about, could this get done? Could tax reform get done by August 2nd? Here's what he said.

(BEGIN VIDEO CLIP)

REP. JOHN BOEHNER (R-OH), HOUSE SPEAKER: We believe that comprehensive tax reform on corporate side and personal side would make America more competitive, help create jobs in our country, and is something that is under discussion.

(END VIDEO CLIP)

KEILAR: Under discussion, but he wouldn't commit to it being -- to the possibility that it could be tackled by August 2nd. I've talked to a Republican source who said one of the things that President Obama and House Speaker Boehner have talked about is kind of taking entitlement reform -- this is a Republican source, mind you, saying this -- and dealing with that, Social Security, Medicare, Medicaid, but doing tax reform after this August 2nd deadline, looking at what Republicans would certainly like to see, reducing corporate and individual tax rates, and then simplifying the tax code. That's where some of those tax deductions come in.

It's a whole lot to tackle, Kyra. You can totally understand how it seems like maybe too much to do here in the next couple of weeks. And the source emphasizes this is just something being considered. It's not a deal.

And I have to tell you, Kyra, there is a lot of Democrats and Republicans who will have issues with this proposal.

PHILLIPS: No doubt. Brianna Keilar there at the White House -- Brianna, thanks.

Not guilty of murder but not free yet either. Casey Anthony is going to do at least a few more weeks in jail. As a matter of fact, in less than 10 minutes, we're going to find out exactly when she'll be released.

Judge Belvin Perry sentenced her to four consecutive one-year terms for lying to police. She does get credit for time served.

Meantime, the judge, the prosecution, and the defense are still hashing things out.

Our senior legal analyst Jeffrey Toobin joins us now from New York, and here in studio, once again, criminal defense attorney and former prosecutor Holly Hughes.

Jeffrey, what do you think, less than 10 minutes, what exactly are we going to know? The exact date, correct -- the exact date she walks free?

JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: Correct. The judge has to do some arithmetic basically because he sentenced her to four years in total. She has served just short of three years. So, in theory they would have another year to serve, but the way prison laws work, and this is true in Florida and every state, is you get credit for every day you served as long as you have behaved appropriately. So, in fact, she should get several months of credit that will reduce her sentence probably to no more than another month or two in prison.

So, in 10 minutes or so, we are expecting to hear precisely what her release date will be. And it sounds like -- based on what the judge said at sentencing at 9 a.m. -- that it will be some time probably in August that she'll get out.

PHILLIPS: All right. Sometime in August. So, Holly Hughes, then, pushing forward, OK, sometime in August, she walks free. What's next? I mean, there are still pending cases that involve her.

HOLLY HUGHES, FORMER PROSECUTOR: Right. And they're going to continue. This is not -- like we talked about earlier, there are different levels of freedom. She might be free from a jail cell. She is not free from the troubles she has created herself. This is her problem.

The IRS has put a $70,000 lien on her. So, the second she signs any kind of deal, those creditors are lining up to get theirs first.

We know that there are some talks right now -- you know, her lead defense attorney, Jose Baez, was on different talk shows, saying he's been approached by different media outlets that want to get to her, want to tell her story. So we know she's likely to sign some kind of a deal. But the IRS is in line.

We really heard fascinating new this is morning from the courtroom. Prosecutor Linda Drane Burdick said, look, we are filing a motion, we want to preserve this issue, the state wants to be paid back for the cause, because according to defense attorney Jose Baez, when he stood up in opening, he said Caylee Anthony drown in the pool June 16th, 2008. That means they falsely reported she was missing and all of the money and time and expense that could have been spent -- and think about this -- finding other missing children, children that are truly in jeopardy.

I think, you know, people are going back and forth. Oh, he had shouldn't be going after the money. This is sour grapes.

Why? Why would you reward a criminal for bad behavior? Don't give her this money. Go ahead, seek it back. She's going to have enough money when she starts inking deals, the state should be reimbursed.

There are thousands upon thousands of truly needy victims. There are children who could be found with those resources.

We also hear Tim Miller who heads up Texas EquuSearch, very famous, you know, corporation that goes around the country, went to Aruba when Natalee Holloway was missing, expend of their money and give their time to bring missing people home. He spent $112,000 to try to find little Caylee, all the while knowing she wasn't missing. They knew exactly where that baby was.

So, yes, she's free but not free, indeed.

PHILLIPS: All right. Any minute now, we should find out when she does walk free.

Jeff Toobin, Holly Hughes, stay with us. Thanks so much.

Three moms accused of ripping off their PTA in an alleged Ponzi scheme. We're going to tell you why police didn't have to look too far

(VIDEO CLIP PLAYS)

PHILLIPS: And just ahead, we talk live with the U2 concert-goer that earned 15 minutes of fame and then some.

(COMMERCIAL BREAK)

PHILLIPS: All right. Let's check stories across country.

Trouble on the tracks near Indianapolis this morning, that's where more than a dozen freight cars derailed last night. A bent rail on the trestle may have caused the pileup, likely to complicate rail travel between Chicago and New York.

And we're now hearing the audio from Southwest flight 812. Remember that plane had a hole blown open in the fuselage during a flight last April. Well, it's clear from the conversation between the cockpit and control tower that the pilot knew right away there was trouble.

(BEGIN AUDIO CLIP)

PILOT: We need the nearest airport.

CONTROLLER: Southwest 812, are you able to land at Blythe or would you want to go to Palm Springs?

PILOT: Let's make a turn and go -- how far is Yuma away from us right now?

CONTROLLER: Yuma is at your 3:00 position and 50 miles.

PILOT: We'll take Yuma.

(END AUDIO CLIP)

PHILLIPS: That's where the flight landed safely with everyone aboard OK.

And, lastly, three former members of the Los Angeles County parent teachers association have been arrested and accused of bilking the education group of millions of dollars in an alleged Ponzi scheme. Police didn't have to look far to slap the cuffs on the trio. Two of them were already jailed on felony theft charges.

All right. U2, a band known for electrifying performances and heartfelt humanitarian work around the world. But it was this moment in Nashville Saturday night that had us all thinking just how cool these guys really are.

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PHILLIPS: Well, that's Arizona's Adam Bevell on stage with Bono, one of 45,000 fans that packed Vanderbilt Stadium. But in the end, he had the best seat in the house. Heck, he was playing to the house.

So, how did he work that out?

Adam joins us live from Phoenix this morning.

OK. Adam, so, first question, do you have the sign with you?

ADAM BEVELL, U2 FAN: I do. I have it right in front of me, actually.

PHILLIPS: Let's see it.

BEVELL: My brother-in-law made the sign for me as we were standing there. We borrowed a piece of paper and a marker from some fans that were kind of down the way. And he was reluctant at first to make it for me, but I convinced him and it was always my dream to get on stage.

And, you know, he made this sign for me. I held it up throughout the concert. And at the very end, he finally called me up.

PHILLIPS: And just to give our viewers a little background, you lost your vision -- you started to lose your vision in your early teens, right? What happened and then how did you start playing the guitar and develop this love for U2?

BEVELL: Well, at age 14 I found out I had a rare eye condition called retinitis pigmentosa and doctors told me that I'd be blind by the time I got out of high school. Well, I didn't really -- you know, I kind of beat those odds a little bit. At 28, it got to the point where I had no usable vision anymore.

And, yes, so it kind went on from there.

PHILLIPS: So, you continued to play guitar, obviously. You've got some serious skill.

BEVELL: Right. Yes, well --

PHILLIPS: And Bono saw your sign and said, OK, let's bring him up stage. What did he say to you when you got up there?

BEVELL: Well, you know, at first he -- they finished their song, their last song, which is called "Moment of Surrender." They ended all concerts with that song. And I kind of started to drop my sign. And my -- and all of a sudden, I heard Bono's voice, "What do you want to play, man?" I thought, there's no way he's talking to me. No way.

My brother-in-law leaned to me, he's talking to you. And I yelled out, "All I Want is You." And the fans started yelling. He said, get this dude up here. Get him a guitar. Get him my guitar.

And I just thought -- and before I knew it I was on stage and being -- you know, for me the best part is when bono came over and grabbed my hand and said, come this way. And he kind of led me through the obstacles on the stage and just showed to me his kindness and his patience. And for me, that was the greatest thing, because it just showed what a great person he was. He is.

PHILLIPS: Indeed. And you picked that song, in particular, right, because you wanted to play it for your wife?

BEVELL: Yes, I did. It's our song. And I always thought, you know what, if I -- if I ever got on stage, I was going to play that song and dedicate it to my wife. And I could not believe that that happened. I mean, I've dreamt it a million times. And it was better than I ever would have imagined.

PHILLIPS: Well, it was pretty amazing, Adam. You've given The Edge a little competition. I know Bono was actually sending you the guitar. I know you've got your acoustic guitar.

If you don't mind, will you play us to break? BEVELL: Sure, absolutely.

PHILLIPS: Let's do it. Adam Bevell, next to go on tour with U2 and we'll be there.

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PHILLIPS: Canadian sports doctor has pleaded guilty to charges that he smuggled unapproved drugs into the U.S. for pro athletes. Part of his plea deal, Dr. Anthony Galea will talk with the FBI about who he treated and how.

Our senior medical correspondent Elizabeth Cohen here to talk about doctors he transported.

And we're talking about big-name athletes, too, right?

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Well, right. Exactly. During the proceeding, the judge forced the prosecutor to some of them, and Tiger Woods is one of the athletes treated by this doctor. As well as some NFL players, some other golf players.

But it was interesting, he didn't say that these athletes had gotten these treatments but just that they received treatments from this doctor.

PHILLIPS: From this doctor.

COHEN: Right.

PHILLIPS: All right. What do we know, first of all, about this human growth hormone?

COHEN: Right. Human growth hormone is a real FDA-approved drug. It's given to people for various things, but the people with medical conditions. It is not supposed to be given to athletes to help build their muscles. But, of course, it is illicitly used this way and sporting organizations like, you know, major sports -- professional -- I'm sorry, I'm not a sports reporter so I'm flailing a little bit here.

(LAUGHTER)

COHEN: But athletes are not supposed to be using it just to build muscle.

PHILLIPS: Right. There's guidelines. But there's another drug, too, that you were talking about.

COHEN: Yes. And this is a ban -- this is an interesting one. I had never heard of this. Actovegin --

(CROSSTALK)

PHILLIPS: We couldn't even find out how to pronounce it. COHEN: Right, exactly. And so, it is apparently a derivative of calf's blood. I mean, go figure. And, apparently, it helps your muscles get oxygen, which theoretically would help you build up muscle mass. Apparently, this guy was also giving people this.

PHILLIPS: So, could the players be charged as well?

COHEN: You know, it's interesting. The prosecutor told CNN that the -- that any athletes who have received these treatments, that they didn't do anything illegal as long as they didn't lie to law enforcement. So, that's what we were told.

PHILLIPS: OK. We're going to follow it. Thanks, Elizabeth.

COHEN: Thanks.

PHILLIPS: And some good news finally from the stock market this morning. We're going to take you live to Wall Street next.

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PHILLIPS: We're breathing a sigh of relief today, at least when it comes to the economy. Wall Street has a new report showing 157,000 jobs were added last month. That's more than double what was expected.

Alison Kosik at the New York Stock Exchange -- Alison.

ALISON KOSIK, CNN CORRESPONDENT: This is really encouraging, Kyra. And we're seeing an immediate reaction here on the Wall Street. Take a look -- the Dow up 86 points. The NASDAQ higher by 32.

And you know what? This ADP report is really important after that curveball we were thrown last month, where ADP said that only 36,000 private sector jobs were added, because look at this. We had seen gains of more than 200,000 for several months in a row earlier this year. So, it was disappointing to see that 36,000 last month.

So, yes, you're seeing a lot of relief. And especially this -- in June, it looks like small businesses were doing most of the hiring. You really want to see hiring there because small business accounts for about two-thirds of all the jobs in the economy -- Kyra.

PHILLIPS: And on that note, the most important job report is out tomorrow, so does good news today raise the bar for tomorrow?

KOSIK: It does. You know, traders are, definitely, seeming more optimistic here on Wall Street. Before today expectations were all over the map, anywhere from 80,000 jobs added to 120,000 jobs. And that shows just how uncertain everybody is about where the jobs market is.

But I tell you what? Today's positive report, it's calming some nerves, boosting expectations for tomorrow's official jobs report coming from the government -- Kyra.

PHILLIPS: And all economists who have been coming together saying, hey, it's a long road ahead for the labor market.

KOSIK: It is a long road. And you know what? Their long-term outlook, Kyra, is still weak.

You look at CNN Money survey of economists, they think the unemployment rate is going to drop to 8.7 percent by the end of the year. Oh, that sounds great. Well, not really because it's not really a big drop because right now we're at 9.1 percent.

What we need to see, Kyra, is that strong consistent job growth every single month to bring down the unemployment rate -- Kyra.

PHILLIPS: Alison Kosik live from New York Stock Exchange -- Alison, thanks.

When THE NEWSROOM continues, just as American troops are getting ready to leave Afghanistan, signs that al Qaeda is making a comeback. We'll talk to an Army patrol unit that's in hot pursuit of terrorists.

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PHILLIPS: Stories making news later today, in just a few minutes, President Obama meets with congressional leaders from both sides of the political aisle to discuss the debt ceiling.

At noon eastern, right here in Atlanta, the city school board meets to address the cheating scandal that's implicated more than 100 teachers and principals.

And at 1:30 Eastern in Orlando, a court hearing begins on the possible release of juror names in the Casey Anthony trial.

That does it for us. We'll be back here tomorrow morning bright and early, 9 a.m. Eastern.

For now, Suzanne Malveaux takes it from here.