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Another American Killed in Mexico; Unrest in Syria; Newt Gingrich Falling; Iran Threatens To Block Oil Trade; Some Immigrants Buy Green Cards with Investment Money; An 18-Year-Old Internet Host Dies; Federal Investigators May Prosecute BP Employees; GOP Candidates Claim Obama Administration Fears Their Candidacy

Aired December 29, 2011 - 15:00   ET

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

ISHA SESAY, CNN ANCHOR: Hello, everyone.

"Reporter Roulette" today.

Let's start with Alison Kosik at the New York Stock Exchange with jitters over gas prices.

Alison, the U.S. and Iran, of course, seem to be playing this game of chicken over the Strait of Hormuz, waiting to see who's going to blink first. And at issue are these economic sanctions that are being considered.

What is this uncertainty doing to Wall Street?

ALISON KOSIK, CNN CORRESPONDENT: Actually, not much of a reaction, not affecting stocks, Isha, not oil prices either.

In fact, oil traders not really taking this seriously for now. Oil prices ended slight higher, a little over $99 a barrel. But if you ask oil analyst Stephen Schork, he also -- he does not expect Iran to follow through on this threat to close the Strait of Hormuz, because Iran itself relies so heavily on oil revenue. In fact, Iran is the fourth biggest oil exporter in the world and it would be blocking its own exports, so something to think about -- Isha.

SESAY: Yes, certainly.

But some speculators really appear to be going all out trying to ratchet fear on this issue, saying in fact that gas prices could reach $5 a gallon by summer. What's your sense as to how disastrous that would be for the world's economy?

KOSIK: You know what? In the worst-case scenario, it doesn't seem so far out of reach there, that scenario.

That oil analyst that I spoke with, he says, if Iran does carry through with its threat, it could throw the global economy into a depression, because it would drive oil prices up to unpredictable levels.

He says that consumers just wouldn't be able to afford it. You would see it impact economic activity, because it would really hurt consumers who are already getting hurt in other ways, with housing prices and unemployment so high.

So, these higher gas prices would wind up taking money out of their pockets, money that would be spent on other things. It would also impact consumer confidence. And that's a big deal with any economic recovery. When you see that gas sign of that gas price, people get scared by paying an extra few dollars at the gas pump, even though, in reality, it's really not as big an impact as let's say getting a good mortgage rate or having a good job.

But, remember, this is the worst-case scenario. It's not likely to happen -- Isha.

SESAY: Alison Kosik joining us there from the New York Stock Exchange, thanks, Alison.

(WEATHER UPDATE)

SESAY: And now we turn our attention to an exclusive report from a reporter in a very dangerous place.

The city of Homs has been the center of the resistance in Syria. The government is tightening its choke hold on the people there, tanks firing at protesters, snipers randomly shooting civilians on the street. The country is being accused of hiding the real slaughter from peace monitors.

But one freelance journalist and filmmaker, who we're not going to name for his own security, put his life on the line and slipped into that city to get the real story.

And he's sharing what he found in a CNN exclusive.

(BEGIN VIDEOTAPE)

UNIDENTIFIED REPORTER: The snipers are on basically every main street. They have checkpoints on both sides. Snipers would shoot everybody who is basically crossing this street between 4:00 p.m. and 8:00 in the morning.

And this is an unofficial curfew. The activists told me I have to meet this woman. This is the mother of a victim who got shot when she was pregnant in the seventh month. It was during the morning when she wants to go out for shopping.

UNIDENTIFIED FEMALE (through translator): Her brother tried a half-hour to go over the walls and roofs to get to her, but he didn't manage to reach her. Finally, they managed to pull her away, but it took another half-an-hour to get her to my house.

UNIDENTIFIED REPORTER: When you arrive at a situation, you arrive at the scene where a half-hour ago somebody got shot, and 30 minutes later, people are crossing very normally this street, me crossing the street, I have been feeling, basically, literally I have been feeling that somebody is aiming. The sniper is aiming on me, and it is up to him if he going to pull the trigger or not. I came to this junction and realized that somebody wanted to cross the street with a huge bag of cigarettes. So I could hear the snipers shooting and he wasn't able to cross the street and the bag of cigarettes was in the middle of the street.

So, it was again one of the very impressive scenes where people have been very happily, almost like a sport challenge to get the cigarette bags out from the sniper range. And they have been happy when they could. And they started to throw it from one side to the other. They started to throw the bags because they were not able to cross. So everything they needed on the other side, they throw it over the streets.

The point of no return is already crossed. The people know there are no options. They started to uprise. On so many blocks, so many people got killed already, that when they stop to go out on the streets, the regime's going to come back and they're going to get killed anyway.

(END VIDEOTAPE)

SESAY: Incredible reporting there.

Well, $30 billion, that's how much Saudi Arabia is going to pay the U.S. for high-tech military fighter jets. President Obama says this is a good deal and it will save American jobs.

And there's no drive-through at U.S. immigration for green cards. It can take years to get one. But the Obama administration is pushing a provision already on the books that allows people overseas to buy one. So, just how much does it cost?

Trouble on the campaign trail for Newt Gingrich, but he's been there before -- ahead, why he says an elephant saved his campaign. That's ahead in our "Political Pop."

And wait until you see this. A guy got into his SUV and, yes, he slammed into his neighbor's car, not just one or two. He hit five. And that wasn't the only thing he tried to hit.

(COMMERCIAL BREAK)

SESAY: I'm Isha Sesay in for Brooke Baldwin.

If it's interesting and happening right now, you are about to see it "Rapid Fire." Let's go.

The United States is selling 84 new F-15 fighter jets to Saudi Arabia. The deal comes at a time of rising tensions with Iran. And the White House says it reinforces the U.S. commitment to strong Saudi defense. It also says the $30 billion deal will support over 50,000 American jobs.

A veteran Marine who avoided being wounded in Afghanistan and Iraq was shot three times during a robbery in South Florida. Lieutenant Colonel Karl Trenker managed to plug his own wounds with his own fingers to stem the blood flow until help arrived. The good news is he's doing OK now.

(BEGIN VIDEO CLIP)

LT. COL. KARL TRENKER, U.S. MARINE CORPS: I go to Iraq and Afghanistan multiple times, and I haven't been shot or blown up, and I'm here at home in Florida and here I am riding away in an ambulance with a bunch of gunshot wounds.

(END VIDEO CLIP)

SESAY: Well, Trenker is expected to make a full recovery.

Federal prosecutors are reportedly preparing what would be the first criminal charges against BP employees stemming from the Deepwater Horizon explosion in 2010. "The Wall Street Journal" says it got the information from -- quote -- "people familiar with the matter." According to "The Journal," government lawyers are focusing on whether BP engineers gave false statements to regulators about the risks associated with drilling.

So, here's a question. Why would anyone bring a gun to one of the most secure sites in New York City, the 9/11 Memorial? "The New York Post" reports a tourist from Tennessee thought it was OK. She even asked the cop if she could check her weapon as soon as she saw the no-gun sign.

Apparently, she didn't realize that a loaded pistol in her purse would be a problem. The woman posted bond after she was locked up on a weapons possession charge.

A crazy scene in Centennial, Colorado, to show you. This is no accident. It's some guy going on a rampage trying to find cars to run into. He totaled one car and hit five others and even tried to hit a few pedestrians. Fortunately, nobody was hurt. The suspect is in jail on a $50,000 bond.

Saturday night, millions of people will be in Times Square, New York City, for the big New Year's Eve celebration. The huge ball that drops at midnight has been secured into place with its more than 30,000 lights. Also, the city just dropped test confetti on Times Square this afternoon. They're testing the air to make sure it's safe when one ton, one ton is dropped on New Year's Eve.

And, remember, Anderson Cooper will be live from Times Square along with comedian Kathy Griffin and yours truly. We will all be there New Year's Eve starting at 11:00 p.m. Eastern. It's right here on CNN. You won't want to miss it.

On to serious stuff -- another American dead in Mexico. This time, a young man's body was found in the trunk of a car after the car was set on fire, this after three Americans were killed last week. Are Americans now being targeted?

Our senior Latin American affairs editor, Rafael Romo, is following that story. He joins us next.

(COMMERCIAL BREAK)

SESAY: Again, a horrible act of violence against an American traveling in Mexico. This time, a Chicago teenager visiting his grandmother on Mexico's west coast ends up in a car trunk, the car torched, the Chicago teen's body charred

Rafael Romo reports on this gruesome act of violence that has the teen's family and friends wanting answers.

(BEGIN VIDEOTAPE)

RAFAEL ROMO, CNN SENIOR LATIN AMERICAN AFFAIRS EDITOR (voice- over): Daniela Zendejas remembers her cousin Alexis Marron as a full- of-life 18-year-old with an easy smile.

DANIELA ZENDEJAS, VICTIM'S COUSIN: Always smiling, happy. He enjoyed life.

ROMO: Zendejas says the high school senior played football and was involved in gymnastics at their high school in suburban Chicago. They were often together. He took a holiday trip to the Mexican state of Michoacan, a vacation that would be his last. Zendejas was unable to join him.

ZENDEJAS: He wanted to go see my grandma and aunts and uncles over there. And we used to go all together, but this time he went alone.

ROMO: The body of Alexis Marron was found in the trunk of a car burned to its shell. The vehicle was found on a rural road in southern Mexico on Christmas Eve, also in the car, the badly charred remains of two other Mexican men, his friends.

Back in Rolling Meadows, Illinois, close friends of the victim can't understand why anyone would want to kill Marron in such a brutal way.

BRANDON LEO, FRIEND OF VICTIM: I want to people to know that he was a good kid. He was honest with everyone. He always had that smile. He was warmhearted. He was just a great kid. This shouldn't have happened.

ROMO: Both Brandon Leo and Kyle Gentile knew Marron well. They have set up a memorial page on Facebook and organizing a memorial at their high school.

KYLE GENTILE, FRIEND OF VICTIM: No one would ever deserve this. But the way that he went is just so horrible, that I couldn't even believe it. When someone told me that, I thought it was a joke.

(END VIDEOTAPE)

SESAY: Well, Rafael joins us now to talk more about this.

Rafael, yesterday, we were talking about three Americans killed. That was in Veracruz. We're talking about a different state now, but another American found dead. I'm going to ask you a question that some at home are considering. As you have looked into these cases, are Americans being targeted?

ROMO: There's no indication whatsoever that they were killed because they were Americans.

In the first case you're talking about, a mother and two daughters shot in the state of Veracruz, it was just a random robbery. They were travel in a bus, and these attackers just targeted that specific bus for no other reason than they were there.

In this second case, it doesn't appear to be a targeting of this particular young man. He was with two other friends who were Mexican nationals, so he was not individually solely targeted because he was American.

SESAY: What's the latest you're hearing about the investigation?

ROMO: I spoke with the Michoacan state attorney's office this morning, and they say they're conducting an investigation, but there are no suspects, no arrests yet. They continue the investigation, and they hope to come up with something very soon.

SESAY: Let me ask you this. And we have talked about this off camera, the rate of successful prosecution in Mexico of these kinds of cases. Do they have the means? Are they successful?

ROMO: Not terribly successful, no. Unfortunately, a prosecution that is completed from investigation, prosecution and conviction in Mexico, the rate is less than 10 percent.

SESAY: Less than 10 percent?

ROMO: So it is less than 10 percent. So it's not the greatest in the world.

Having said that, the amount of federal forces that have been deployed to these parts of Mexico -- I'm talking the state of Veracruz, the state of Michoacan, is considerable. And around the country, you find about 50,000 troops that are doing law enforcement activities, so the response is great.

Security has been increased in those two states, especially on highways where this has happened.

SESAY: And very quickly, what is the guidance from the U.S. to Americans traveling to Mexico?

ROMO: There was an emergency alert posted by a consulate, an American consulate in Mexico saying that nonessential travel to border states and these two states that we're talking about should be avoided as much as people can.

SESAY: Rafael Romo, appreciate it. Two days running, some really gruesome acts of violence there in Mexico, but we appreciate the analysis and your working these stories for us. Thank you. ROMO: Sure.

SESAY: To politics next.

You often hear it's a candidate's organization on the ground that's key in winning caucuses and primaries. And Ron Paul has a lot of boots on the ground in Iowa. But for his volunteers, it's not just knocking on doors and answering phones. There are rules. We will explain.

(COMMERCIAL BREAK)

SESAY: Hundreds of college students are hitting the pavement in Iowa. And according to "The New York Times," they're under strict orders to shave their beards and cover their tattoos. It's all part of their strategy to get Ron Paul nominated.

CNN's Candy Crowley joins me now live from Des Moines.

Candy, so let's get this straight, cover your tattoos, groom your facial hair, don't tweet or Facebook while you're in Iowa. What exactly is going on? What is the strategy here?

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: Well, fit in.

Look, these are people who have come in from out of state, young people. Let me give you one statistic that may clarify why this is necessary. In the last Republican caucus here four years ago, almost 75 percent of the folks who went to the caucuses, the Republican caucuses, were 45 years or older. OK?

You're talking about an older demographic that needs to be convinced to vote for one candidate or another. And then you have these very young folks who are out there supporting Ron Paul who are coming from out other state. What do they do? They knock on people's doors and say, hey, are you going to the caucuses? Would you consider voting for Ron Paul? Here's why I think you should.

So, what is that? You don't get a second chance to make a first impression. What they're doing is saying, if you come to Iowa, fit in here. You know, you can't have a threatening person or someone that is perceived as being threatening coming to your door, because you're not going to listen to them. They're not going to be prone to listen to what they have to say.

So this is about molding into the population here, particularly the population that's likely to go and vote on caucus night.

SESAY: And we have seen Ron Paul's numbers on the rise. Are young people his secret weapon?

CROWLEY: Sure.

Well, first of all, because there are -- he does poll very well demographically among young Republicans, but they have also got the energy to go from door to door. They are new to politics, so just the excitement level, the adrenaline level is higher.

Some of them don't have day jobs. They're college students and so they can work Monday through next Tuesday trying to get folks out to the polls. Yes, they are a not-so-secret weapon.

SESAY: Hearing you talk about young people descending on Iowa brings to mind -- and it's been pointed out -- the organization of candidate Obama four years ago, and how young people descended on Iowa again then.

What's your sense in terms of the operation and how -- the similarities and differences between the two?

CROWLEY: Well, it's a different group of college students. Clearly, these are not two candidates that necessarily believe the same things, but they are brought to the fold by an idealism in the Ron Paul campaign, as well as they did in Barack Obama -- Barack Obama's campaign.

And let me make one more analogy. And that is to Howard Dean, who was a huge favorite among young voters. He also carted busloads of people in to help him in the weeks coming -- leading up to the caucuses.

And part of the reason I think you're seeing Ron Paul saying, hey, fit in here, don't let who you are get in the way of what the message is, is that there was a lot of criticism about Howard Dean's imports into Iowa, that they didn't -- that Iowans sort of took offense at other people telling them what to think or how they went about it.

So that's why it's really important to corral this group, because they do tend to be idealistic and they do tend to be energetic, two things you really want in your campaign. So there are certainly similarities, as well as differences certainly in policy between the two.

SESAY: Yes, indeed, idealistic and energetic, but I guess it's also a case of managing that energy.

Candy Crowley joining us...

(LAUGHTER)

CROWLEY: Always.

SESAY: ... there, appreciate it. Thank you.

Let's take a closer look at the numbers from the latest CNN/"TIME"/ORC poll we were telling you about. Let's look at those numbers because just to bring the point home, Romney on top, as you see there, Paul close behind him. And Rick Santorum, really, that's been the big talking point, the fact that Rick Santorum has made his way into third place. He has surged into third.

And, Gingrich, well, his fortunes somewhat plummeting as he falls behind them. There had been all this talk about Romney, Paul and Gingrich in the upper echelon. And now he's been overtaken by Santorum, of course, Perry, Bachmann and Huntsman also there in that second tier.

Huntsman and Michele Bachmann on "THE SITUATION ROOM" in about 30 minutes. They will be speaking to Wolf. You will see that interview on CNN.

Well, as you saw, Mitt Romney is leading the field in Iowa's GOP race and he's feeling pretty good about it.

CNN's Peter Hamby joins me live from Des Moines.

So, what's he saying, peter?

PETER HAMBY, CNN POLITICAL PRODUCER: Yes, Mitt Romney has been barnstorming the state. This is a state that he did not really try to compete in for a long time. And his staff was very much under the radar, but he's drawing some big crowds around the state.

Mitt Romney really has a bounce in his step as he shakes hands around the state. And he was asked today, if you come in second here in Iowa, in the caucuses, is that a win? And Romney's simple answer was, "Uh, no."

So, basically, they're all in here in Iowa. Certainly, Democrats want to raise expectations for Romney, because anything less than a win for him would be damaging to his candidacy. But the Romney people are running television ads, they're going to be here on caucus night, which is something they did not do four years ago, when he lost here. So it's looking good for Romney as our poll showed today, Isha.

SESAY: It's looking good for Romney. Any foreseeable bumps in the road, though?

HAMBY: Bumps in the road for him. Again, if Ron Paul, as you were talking to Candy about, can win, that's fine for Romney. Paul has been expected to do very well here.

A bump in the road might be if Santorum can capitalize on this momentum. It might seem unlikely because he doesn't have the kind of money and institutional support that Mitt Romney does, but if social conservatives look at Rick Santorum's climb in the polls -- he's now at 16 percent -- that's up from single digits not too long ago -- and they say, hey, this is our guy, social conservatives here have been looking for someone to unite behind. They haven't been able to.

And never forget the power of narrative. The media is all this week going to focus on this new surge from Rick Santorum. So, some of these Bachmann supporters, perhaps supporters of Rick Perry might peel off and jump to Santorum. Gingrich has also collapsed. It's almost an open secret here among Iowa Republicans that they think he might even slip to fourth or even fifth place, which would be seriously damaging to his candidacy.

So, we will see if Santorum can really put together the organization and some TV ads this week, and also defend himself from pending attacks. His rivals are already criticizing him now that he's jumped up on the polls, Isha.

SESAY: Yes. I want to focus in on that, because Rick Perry is among them. He's not taking kindly to this rise in Santorum's numbers?

HAMBY: Not at all. Rick Perry is one of those candidates sort of vying for social conservatives and the base here in Iowa.

He was very quick to turn this around after yesterday's poll numbers showing Santorum surging.

Take a listen to this radio ad that they just popped today. It's running statewide. This is the Perry campaign taking a shot at Rick Santorum.

(BEGIN AUDIO CLIP, PERRY CAMPAIGN AD)

NARRATOR: Who personally demanded more than $1 billion of earmarks in his 16 years in Congress?

Jay from Ames.

UNIDENTIFIED MALE: Rick Santorum?

NARRATOR: Right. Santorum grabbed for a billion in earmarks, until voters kicked him out of office in a landslide.

(END VIDEO CLIP)

HAMBY: So sort of a game show themed radio ad that's running out here from the Perry campaign, basically trying to paint Santorum as a Washington insider. Essentially no one's laid a glove on Santorum the entire time he's been out here in Iowa for more than a year because he hasn't caught on. Now that he's bubbling up, his rivals are going to take some swipes at him. I bet we'll see attacks hit him in the mail. Maybe we'll some TV attacks, but it's already starting. And Rick Santorum has to fend off these attacks. Does he have the money and organization to do so? That remains an open question, Isha.

SESAY: Peter, thank you.

Did you know you can buy a green card? It's not cheap, but it is possible. For many, it takes months and even years to get one. How much will it cost you? Our Deb Feyerick will explain.

Maybe you've forgotten about that giant BP oil spill in the Gulf in 2010. Well, U.S. attorneys haven't. We'll tell about you the possibility of criminal charges being filed for the spill. Stay with us.

(COMMERCIAL BREAK)

SESAY: It's billed as a way to create American jobs, wealthy immigrants investing in the U.S. in exchange for a green card. CNN's Deborah Feyerick tells us it's perfectly legal. In fact the U.S. government encourages it.

(BEGIN VIDEO CLIP)

DEBORAH FEYERICK, CNN CORRESPONDENT: It's that time of year. Everyone at Jay Peak Resort in Vermont is gearing up for the ski season. But for co-owner Bill Stenger, the snow is not enough to make a business. He's hard at work, transforming the winter resort into a year round facility, building a golf course, a water park, and an indoor ice rink.

BILL STENGER, CO-OWNER, JAY PEAK RESORT: Without sustained year round operations, you can't survive. You must be a 12-month a year operation.

STENGER: You can see the snow guns over there from here.

FEYERICK: He need about $250 million to expand. The banks wanted 30 percent down. Money he did not have.

STENGER: If you don't have capital, you can't make things happen.

FEYERICK: Instead, using a federal program, Stenger got the money from rich immigrants willing to invest $500,000 each in exchange for a green card for them and their families.

STENGER: We have over 500 investors from 56 countries.

FEYERICK: Among them, Birindir Bhullar and his wife Grosny (ph).

(on camera) These are the permanent green cards now?

BIRINDIR BHULLAR, IMMIGRANT INVESTOR: These are the permanent green cards.

FEYERICK: Bular is an Indian engineer who often travels on business to the United States. He decided to switch countries and careers and became a mystic teaching enlightenment.

BHULLAR: I made up my mind, I come here. And the only option available at that time was the investor route.

FEYERICK: The 20-year-old program known as EB-5 has brought in about $2 billion in investments and has been promoted by the Obama administration as a way to create jobs, especially in rural areas with high unemployment. Critics like David North who supports strict limits on immigration says this amounts to selling green cards on the cheap.

DAVID NORTH, CENTER FOR IMMIGRATION STUDIES: If we are going to be selling visa's for money, I think we should be selling a lot and put the money in the treasury rather than scattering around for these developers who have figured out how to get money from the aliens.

FEYERICK: Tell that to Bill Stenger.

STENGER: A conference center, we have retail shops.

FEYERICK: Eager to show us around, and boasted the impact on the local economy.

STENGER: Hundreds and hundreds of new full time jobs being created as a result of these facilities.

FEYERICK: Locals also are happy for the foreign investment. Brad Quintin has been able to stay put and raise his family here.

BRAD QUINTIN, CONSTRUCTION WORKER: Before this started, I was traveling two, three, four hours to work to Connecticut and New Hampshire.

FEYERICK: And now year-round employee Alex Noftz says the pros outweigh the cons.

ALEX NOFTZ, JAY PEAK CONCIERGE: We're looking at a few thousand people coming in and creating a whole bunch of jobs for those of us that need them quite badly.

(END VIDEOTAPE)

SESAY: The rules are that investors must show they've created at least ten jobs and can only pull their money out after four years. But if a business falls they would lose their money. And getting a green card is no guarantee of getting citizenship. There are 10,000 of these special visas up for grabs every year, but far fewer applicants.

Was the BP oil spill a crime? A report out this afternoon says federal prosecutors are considering filing criminal charges over the spill. We're going to explain what those charges are and who's in jeopardy.

And who is President Obama most afraid of facing in the general election? You know he's not going to say, but wait until you hear how the Republican candidates are answering that question.

(COMMERCIAL BREAK)

SESAY: Remember when you got so mad seeing pictures like this? This was April, 2010. BP's broken oil rig was spewing masses of black smoke into the air. Remember watching the underwater cameras day after day? We all did, giving us that fish eye's view as more than 200 million gallons of oil gurgled into the Gulf.

Remember the wildlife? Saturated with oil? Remember 11 workers lost their lives. I'm reminding of you of all this because now according to the "Wall Street Journal" U.S. prosecutors are preparing the first potential criminal charges against BP. The "Journal" says the fed is focusing on whether BP engineers including a supervisor provided false information to regulators.

I want to bring in Lisa Bloom. She's an attorney in L.A. Lisa, great to have you with us. Give me your perspective on the severity of these charges.

LISA BLOOM, ATTORNEY, THE BLOOMFIRM.COM: This is a tantalizing insight into what may be going on. These are relatively minor charges just making false statements to federal regulators against apparently a small group of people, engineers and supervisors.

But what this says to me, Isha, is that there may be a broader investigation going on. As you said, 11 people lost their lives. This was the worst oil spill in U.S. history. The consequences were catastrophic, and I would seriously doubt there would be an investigation on charges just this small. This may be an attempt to put pressure on some of the smaller fish to get more important evidence against the bigger fish and go after the higher-ups for the devastating consequences of this spill.

SESAY: So talk to me about what would be happening right now with government prosecutors. What would they be considering in terms of not just this case, but possibly, and again these charges haven't been filed yet. This is what we're hearing from the "Wall Street Journal." What they're considering in terms of extending the net?

BLOOM: The way the prosecutors operate, and it's perfectly legal and normal, goes on every day, is to put pressure on the lower level people. For example, the prosecutors could be saying to them, we believe that you lied to us. We have evidence that you lied to us. Who are you protecting? We will give you immunity if you will testify against somebody who's more important and more significant in the investigation. If we can bring down people on the bigger charges, that's the way our system operates. So, as I say, I doubt this is the end of the story. My sense is this is just the beginning.

SESAY: Some people will be saying, OK, slap them with a fine, what is this really going to achieve in terms of regulating the industry and making sure this kind of thing doesn't happen again?

BLOOM: Regulating the industry is important. And we as Americans often say there's too much regulation. But a lot of the regulation is precisely this kind of thing, to protect the environment, to protect people's lives. So it's important that people within these enormous corporations tell the truth to regulators so that regulators can know what's going on and stop devastating consequences as happened with the BP oil spill.

So it is important that people tell the truth and they be prosecuted if they don't tell the truth. That alone is significant and it's a crime, and these people will be prosecuted if they lie. Lives could have been saved. This entire disaster could have been averted if there had been more regulation. A lot of people feel that way.

SESAY: You're an attorney, though. How easy, how difficult is it for the government in this case?

BLOOM: Well, these false statement cases are not difficult to win. After all, this is the kind of case that brought down Scooter Libby and even Martha Stewart years ago. All you have to prove is that a statement was made, and usually it's recorded, it's under oath or there's a written transcript, it's made in writing to begin with, so that's not difficult, and that the statement was knowingly made to be false. And you can do that by showing other statements that were made to the contrary, showing document that is were read. So it's not that difficult to prove compared to other crimes.

SESAY: BP, of course, not just potentially facing this from prosecutors, but also nose other cases being sued by local residents there in gulf coast?

BLOOM: Yes, there are many thousands of lawsuits that were filed against BP. Now, if those cases are successful and surely many of them will be, what they'll result in is the payment of money damages. Criminal charges are much more serious because people are looking at jail time if they violated the law, although on these false statement charges it's generally somewhere between probation and five years, minimal fines. If it's a first time offender we're probably talking about probations. These particular charges are not going to lead to any significant sentencing.

SESAY: All right, we'll continue to follow all of this. Lisa, great to speak to you today. Thanks for joining us from L.A.

BLOOM: Thank you.

SESAY: Next, the inspiring story of a young man who became a star in his hometown and right around the world. His life may have ended but he left his fans and family quite a gift.

And a former U.S. marine held in an Iranian prison. He told a judge he's a U.S. spy. His mother says that is not true. His story is next.

(COMMERCIAL BREAK)

SESAY: Part of the Internet universe is mourning the death of a Texas teen who shared his remarkable story with tens of thousands of viewers. Ben Breedlove of Austin died Christmas night, but he may have left the world a brighter place. Erin Cargile has the story from CNN affiliate KXAN.

(BEGIN VIDEOTAPE)

BEN BREEDLOVE: Thanks for watching Breedlove TV on casual Wednesday.

ERIN CARGILE, KXAN REPORTER: For the last two years, Ben Breedlove has built a following online.

BREEDLOVE: I thought it would be cool if I gave you creative ideas to ask someone --

CARGILE: Millions have viewed the West Point High School Senior's YouTube videos full of dating advice.

BREEDLOVE: Tonight we're going to be going over what age is the best age to start dating. Some gift ideas. It could be anything from a birthday, Christmas.

ALLY BREEDLOVE, BEN BREEDLOVE'S SISTER: Girls from France and Germany and Australia and Russia would message him and ask him for advice. Girls in town would treat him like a celebrity.

CARGILE: Ben also spoke candidly about the heart condition he was born with, hypertrophic cardiomyopathy.

SHAWN BREEDLOVE, BEN BREEDLOVE'S FATHER: The doctor said since he was young that he would not make it past his young teen years, and he beat that.

CARGILE: On Christmas Day at the age of 18 his time came.

ALLY BREEDLOVE: We woke up really early at 8:00, and opened presents and played a game of monopoly that Ben won. He -- when he laid down outside he was using his new video camera out there with Jake. And it was a really good Christmas. And we realized that Ben got the best Christmas gift out of all of us. He got the gift that everyone is going to get some day.

CARGILE: There was one gift from ben his family didn't find until the next day, a YouTube video Ben posted one week before he died. Without saying a word, he described to the world how he'd cheated death three times. At the age of four after a seizure, he saw a bright light above him. Ben also shared an interesting vision he had when paramedics were reviving him at school earlier this month while standing in a white room wearing a white suit with his favorite rapper. He was looking in a mirror, smiling, and was proud of his life, and he said he wished he never woke up. He ended with this.

(MUSIC)

DEANNE BREEDLOVE, BEN BREEDLOVE'S MOTHER: I just think Ben opened a door for a lot of people to think about something that maybe they've never thought about before, and that, to me, is a wonderful gift.

(END VIDEOTAPE)

SESAY: Well, Ben's parents will appear on CNN's "OUTFRONT" tonight. Our own Brooke Baldwin will speak with them about the final gift left for them and his friends around the world.

The mother of a former U.S. marine on trial in Iran says her son isn't a spy for the CIA and she and the rest of his family are worried about his well-being. Amir Hekmati's mother says anything he supposedly confessed to was coerced. Iran's semi-official Fars News Agency reports Hekmati told the judge he worked for the CIA and that he was to get paid for delivering information to Iran's intelligence ministry. Iranian authorities say Hekmati was trying to infiltrate its intelligence with the intent of accusing Iran of being involved in terrorist activities. The U.S. says the allegations are false.

It hasn't been an easy ride for any of the Republican candidates for president. Right now they're out fighting for every vote in next week's contest. Newt Gingrich may be down today, but we got a little insight as to why he says his candidacy has survived. Get this -- it's an elephant. We'll explain in our Political Pop. That's next.

(COMMERCIAL BREAK)

SESAY: Wolf Blitzer has a packed show with interviews with Jon Huntsman and Michele Bachmann. He joins us now for a preview of "THE SITUATION ROOM." Hi, there, Wolf.

WOLF BLITZER, CNN HOST, "THE SITUATION ROOM": Isha, thanks very much. Jon Huntsman, he's not even running in Iowa. He has only made one appearance there in all of these months, so forget about Iowa and Jon Huntsman. He's spending his time in New Hampshire. He's actually moving up in the polls. What does he have to do this New Hampshire in order to continue on to South Carolina, Florida, Nevada and the rest of these primaries?

Michele Bachmann, she's got her own problems in Iowa right now. Not doing that great. She had been doing fabulously well in August when she won the Iowa straw poll. Since then it's been all downhill for her. And she just lost one of her key supporters in Iowa over to Ron Paul.

All of these Republican candidates are having problems with Ron Paul. They're going after him on national security issues. But it's interesting. Even though they think he could be dangerous to the national security of the United States, some of them are still saying they would rather vote for him if he were to get the Republican nomination, than President Obama. Good stuff coming up right here in "THE SITUATION ROOM."

SESAY: Yes, a lot of really good stuff. I want to go back to Michele Bachmann and the fact she is really, she's come to a standstill in the polls. Why do you think that is, Wolf?

BLITZER: It's a good question because you would think in Iowa, she was born in Iowa. She represents a congressional district in neighboring Minnesota. She spent a lot of time there on all of the social issues, the religious issue, certainly on the economic issues, the conservative agenda, if you will. She's right there with a lot of these people in Iowa.

I just came back myself from a few days in Iowa and you would think she would be doing better, but for some reason she hasn't clicked on as some of these other candidates are now. Having said that, there are still five days to go. And one of the impressions I got from speaking with a lot of these likely Republican caucus goers is that even though they have preferences right now, they haven't completely made up their mind. They're willing to change in these final few days.

And even as they go into the caucuses and spend two, three hours listening to their friends, they might still be open to changes. So this is a hard one to predict. It's not like just going into a booth, pulling a lever and switching a button or anything like that. You've got to really make a commitment. And others will lobby you. And your friends will see who you're going to vote for. It's not a private, secret ballot by any means. It's a totally different kind of situation in Iowa and it's one that we'll be covering obviously non- stop between now and then.

SESAY: And we'll all be watching. Thank you, Wolf.

Newt Gingrich got through tough times thanks to a cartoon elephant. Yes, you heard right. Joe Johns joins me now from Iowa. Joe, try explaining that one.

JOE JOHNS, CNN SENIOR CORRESPONDENT: Isha, Well, the long and short of it is that Callista Gingrich, who happens to be the wife of Newt Gingrich, the presidential candidate, wrote a children's book. And this children's book has a character in it. It's called "Ellis is elephant." The elephant sort of travels through key moments in American history, pops up and sort of tells the story to children.

Well, during the darkest days of Newt Gingrich's campaign, which certainly wasn't too long ago when a lot of people had given him up for dead and thought the campaign was over, Gingrich has now told "The New York Times" magazine that this elephant actually gave him and his campaign a lot of hope during those dark days.

And so some of the publications have really picked up on that and talked a bit about Ellis the elephant and whether he's a stand-in for Newt Gingrich at least when Callista wrote the book, because, as you know, Newt Gingrich has in fact has placed himself in history by sort of comparing himself to some of the great figures in world history. And not much more to say about it than that, but it's a fascinating look at Newt Gingrich, Callista, and their book, "Sweet Land of Liberty."

SESAY: Let's talk about what some of the GOP candidates are saying about the president. Some saying that the president's actually scared about them. Who's doing the big talking?

JOHNS: Right. Fascinating today, Rick Santorum was just the very latest of the candidates to say that President Obama is actually scared of him and the possibility that he might become the Republican nominee. There have been some others who said that as well. We sort of put together a number of those little sound bites. Let's listen.

(BEGIN VIDEO CLIP)

RICK SANTORUM, (R) PRESIDENTIAL CANDIDATE: I think the Obama administration fears us the most and does their best to ignore us the best they can.

MITT ROMNEY, (R) PRESIDENTIAL CANDIDATE: They want to put it the primary to anybody but me.

MICHELE BACHMANN, (R) PRESIDENTIAL CANDIDATE: The president of the United States is threatened by my candidacy. He fears me.

(END VIDEO CLIP) JOHNS: So, obviously, we had to ask some of the Democrats in Washington, D.C. what they thought of that. We didn't get much response except for Brad Woodhouse over at the Democratic National Committee. Of course, he says the president isn't scared of any of them, but says the American people ought to be frightened of the prospect of going back to the same failed policies of the last administration. And we're back into politics. Isha, back to you.

SESAY: Joe Johns joining us from Iowa. Thank you, Joe.

That's it for today's edition of CNN Newsroom. Thanks for joining me. I am Isha Sesay. I'm going to hand it over to my colleague Wolf Blitzer for "THE SITUATION ROOM."