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A-Rod's Suspension Reduced to 162 Games; West Virginia Tainted Tap Water Crisis; Neiman Marcus Reports Possible Cyber Hack; New Documents Released in Christie Scandal; Hunters Will Bid to Kill a Black Rhino; New Businesses Bank on Weed; Neiman Marcus Investigating Breach; Santana Jams with Homeless Ex-Bandmate; Which Movies Will Win Golden Globes
Aired January 11, 2014 - 13:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Hello, again, everyone. I'm Fredricka Whitfield. Here are the top stories we're following in the CNN NEWSROOM.
A big decision on the future of embattled Yankee star Alex Rodriguez. We'll tell you what his punishment will be for allegedly violating doping rules in the Major Leagues.
And hackers target one of the most exclusive department stores in the country. Neiman Marcus. What customers need to know about the security breach.
And the sacrificial black rhino. A group of wealthy hunters bid on the chance to hunt one of the endangered animals so thousands of others could be saved? The hotly debated conservation strategy this hour.
ANNOUNCER: This is CNN breaking news.
WHITFIELD: All right. We're on top of breaking news in Major League Baseball. An arbitration panel has reduced the suspension of New Yankees' Alex Rodriguez to 162 games from 211. The MLB had suspended the star player for violating the sport's doping rules.
Here's the statement from A-Rod's spokesman. Quote, "The number of games sadly comes as no surprise as the deck has been stacked against me. From day one, I have been clear that I did not use performance- enhancing substances as alleged in the notice of discipline or violate the basic agreement or the joint drug agreement in any matter and in order to prove it, I will take this fight to federal court. I will continue to work hard to get back on the field and help the Yankees achieve the ultimate goal of winning another championship."
That by from Alex Rodriguez by way of his agent.
So Major League Baseball is not happy with the decision, saying this, quote, "For more than five decades, the arbitration process under the agreement -- the basic agreement has been a fair and effective mechanism for resolving disputes and protecting player's rights. While we believe the original 211-game suspension was appropriate, we respect the decision rendered by the panel and will focus on our continuing effort on eliminating performance-enhancing substances from our game," end quote.
Jason Carroll is live for us right now in New York with more on this breaking story.
So Alex Rodriguez says he's not going down without a fight.
JASON CARROLL, CNN NATIONAL CORRESPONDENT: Right.
WHITFIELD: MLB says we respect the arbitration --arbiter's, you know, decision, so what next?
CARROLL: It seems like no one is entirely happy with this decision. Not MLB, not Rodriguez, but the focus at this point is on Rodriguez and he is going to take his fight to the federal level, hoping that a federal judge will throw it out, but you've listened to the legal experts on this. We've talked to the legal experts on this.
It is highly unlikely that a judge is going to do that, however, Rodriguez is going to take his fight to the federal -- to the federal court. He is going to ask for an injunction to allow him to keep playing baseball while he continues to fight.
I'm also told, Fredricka, that in terms of how this all went down, you know, what happens is Rodriguez's team was looking at a lot of different scenarios as all this was playing out, as the arbitrator was trying to make this decision. Fred Horowitz, that was the baseball's chief arbitrator overseeing this whole decision.
They were looking at a lot of different options and I'm told that at one point they decided if the 211-game suspension had been reduced to, say, 55 games, say, 65 games, without admitting any guilt, they would have taken their lumps and they would have moved on.
WHITFIELD: Right.
CARROLL: But -- but --
WHITFIELD: That would have been saying something very different, too.
CARROLL: Right, right. Exactly. But this 162-game suspension basically puts him out for a year. That is something that is not acceptable to the Rodriguez camp. They have consistently said all along that he did not take performance-enhancing drugs. He feels as though MLB used severe and, in his words, criminal tactics in terms of how they investigated him, in terms of how they went after him.
Obviously now, a lot of folks in baseball have been talking about this, waiting for this decision, Fredricka. And just a couple of days ago, I spoke to Frank Thomas, former first baseman for the Chicago White Sox. He was just inducted, as you know, into the Baseball Hall of Fame.
I was talking to him about the story. He said it was a sad day for Rodriguez and a sad day for baseball.
(BEGIN VIDEO CLIP) CARROLL: And you're one of those players, always has been known as being clean, played the game clean. What are some of your thoughts about everything that's going on with Alex Rodriguez?
FRANK THOMAS, ELECTED TO BASEBALL HALL OF FAME: Well, I think I've said over the years -- for many years, things spiraled out of control in the late '90s, in the 2000 era. It's sad because Alex was such a great talent. I can't speak for him what he's done, but on a day like today I want to keep it all positive. And I just hope, you know, baseball does what's right.
But as for him, personally I can't say anything because I basically competed against him in such a long time. I know the type of player he was.
(END VIDEO CLIP)
CARROLL: Once again, I think that his sentiments, a lot of people in the field of baseball feel the same way, so at this point, waiting to hear from the Yankees to weigh in. We've heard from MLB. We've heard from the Rodriguez camp. Waiting for the Yankees to weigh in to see what they're going to have to say about all this, but once again, a huge, huge disappointment for Alex Rodriguez and his team. He'll be out, if this is allowed to stand, for a year.
You know, he's 38 years old. The last time I spoke to Rodriguez, you know, he was very aware of his age and his physical condition. If this is allowed to stand, it's going to be very tough for this man, even given his physical condition, to be able to come back as a player and to continue to play.
WHITFIELD: Right, after a year off.
All right, Jason Carroll, thanks so much. Keep us posted when we do hear from the Yankees, perhaps we'll hear it by way of you. Thank you.
CARROLL: You bet.
WHITFIELD: All right, now to West Virginia, where 300,000 people don't have access to clean tap water. Two days after a chemical used to wash coal leaked into the water supply. More than 1,000 people have called a local poison control center complaining of possible symptoms from that leak. So those symptoms include nausea, vomiting, dizziness, headaches, rashes and sore throats.
It's unclear right now if exposure to the tainted water actually caused those symptoms that people are describing. Huge tractor trailers meanwhile loaded with bottled water have begun arriving for people who are unable to cook, bathe, drink that tap water.
Here's Alina Machado.
ALINA MACHADO, CNN CORRESPONDENT: Fredricka, this is a very difficult situation here. Just about the only thing people can use their running water for is to flush their toilets. Restaurants are closed, most businesses are also closed, and there's also uncertainty about how long this situation will linger.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Now it's utter chaos. Yes.
UNIDENTIFIED MALE: Yes. I see people just grabbing every ice bag they can.
UNIDENTIFIED MALE: Yes. Yes. Yes. It's about gone.
UNIDENTIFIED FEMALE: It's hard. I've got to use bottled water.
MACHADO (voice-over): There is growing outrage and concern in West Virginia where at least 300,000 people are without usable running water thanks to a chemical leak at Freedom Industries.
GARY SOUTHERN, PRESIDENT, FREEDOM INDUSTRIES: We are very, very sorry for the disruptions.
MACHADO: Gary Southern, the president of the chemical company, offered few details during his first press conference more than 24 hours after the leak was discovered.
UNIDENTIFIED FEMALE: So can you give us an exact timeline as to how this all happened?
MACHADO: Southern says his employees found the leak Thursday morning. The chemical is typically used to clean coal and can be harmful if ingested. State officials say they were alerted to the problem when residents of Kanawha County reported a foul smell similar to licorice in the air.
The leak was traced to one of Freedom Industries' 35,000 gallon storage tanks along the Elk River, about a mile from the water plant.
GOV. EARL RAY TOMBLIN, WEST VIRGINIA: We're doing water tests on an hourly basis and the chemical level is declining but we're just not sure exactly how long it's going to take until it's acceptable to lift the do not drink ban.
MACHADO: The warning has rattled those who live in the nine counties, where a state of emergency has been declared.
MAYOR DANNY JONES, CHARLESTON, WEST VIRGINIA: It's a disaster. And it's caused us -- it's caused us more problems than you can ever imagine. Not only can we not wash dishes, we can't wash our hands after we go to the bathroom. You can't wash your clothes and you can't drink the tap water, you can't cook with the tap water.
(END VIDEOTAPE)
MACHADO: FEMA has sent several truckloads of water to the area to help. And, by the way, the U.S. attorney has announced that they are investigating, and that even if this was a negligent act, there could still be a criminal violation -- Fredricka.
WHITFIELD: All right, Alina Machado, thanks so much in Charleston.
The federal government is also responding to this emergency on several fronts.
Erin McPike is covering that aspect of the story.
She's joining us now from Washington with more on that -- Erin.
ERIN MCPIKE, CNN CORRESPONDENT: Fred, because President Obama signed an emergency declaration over the last couple of days, he has since directed FEMA to deliver water into the area now.
Now FEMA expects that it will deliver at least a million liters of water and we're seeing that go in several ways. Bottles of water so people have water to drink, as well as just gallons of water so they have water to use.
Now the National Guard has also been activated in the state so that they can then deliver some of those water directly to the residents.
Now on a state level, the governor also is getting several agencies together so they can review whether disasters like the Derecho in 2012 as well as Superstorm Sandy, because they want to see the kind of responses they need to make and how they can get the community back up and running again.
Now on top of that, he's also bringing agencies together so that they can determine protocols for testing the water supply in the affected area to make sure that it's safe and usable again. Now no word on when that will be yet but they are getting together to start doing some of those tests -- Fred.
WHITFIELD: All right. Erin McPike, keep us posted. Thanks so much from Washington.
All right. Another major retailer may have fallen victim to data hacking. We'll look at the threat to now Nieman Marcus customers.
And up next, a hunters group in Texas is auctioning a permit to kill an endangered rhino. But they say it's all for a good cause. We'll explain.
(COMMERCIAL BREAK)
WHITFIELD: Upscale retailer Nieman Marcus may be the latest retailer to fall victim to cyber hacking. The company says it's investigating a possible security breach that may have compromised customers' credit card information.
Let's bring in Jennifer Mayerle.
So, Jennifer, when did this happen?
JENNIFER MAYERLE, CNN CORRESPONDENT: Well, Nieman Marcus found out about the security breach in mid December. The possible breach. But what's unclear is the timeframe of when that breach happened and that's what they're still investigating.
Now Nieman Marcus alerted police. They went and are now working with Secret Service and a forensic team. That forensic team determined on January 1st that a breach did, in fact, happen and that Nieman Marcus was the victim of a cyber security breach. And what that means is that customers could also be victims.
Credit card information may have been compromised and Nieman Marcus is saying they're not sure exactly how widespread this is yet, but they will contact customers who they believe their credit card information has already been used fraudulently. And they are address this issue.
They released a statement today saying in part, "We have begun to contain the intrusion and have taken significant steps to further enhance information security."
And of course, security breaches and credit card information being taken and stolen is something we've been hearing a lot about.
WHITFIELD: Right.
MAYERLE: This comes right on the heels of Target having their own security breach.
WHITFIELD: Yes. And Target, too, is now revealing a little bit more about what happened with that breach. Before it sounded huge, but now it's even bigger.
MAYERLE: It's more than double.
WHITFIELD: Yes.
MAYERLE: We're talking about 40 million before. Now we're up to 70 million people. That it's not only their credit card and debit card PIN information and expiration dates are taken, now we're talking about personal information as well. Names, addresses, phone numbers, e-mail addresses. All of that information has now also been compromised for those 70 million people with Target.
And, you know, it sounds pretty basic to take some precautions, but it's worth going over again because a situation like this, you want to make sure that you're protected. You're doing everything you can to make sure something happens, you're aware of it. So the first thing, check your bank statement, your credit card statement.
If anything seems out of the ordinary, contact your bank or your credit card company. If you get an e-mail from someone you don't know or a place that you don't recognize, the store or company, don't click on it. Try to see if it's legitimate first and otherwise you might want to just steer clear.
Beware of phishing scams. People who are asking for other personal information from you. And you also might want to contact a credit monitoring service. And after Target security breach, this is something they offered to customers free for a year, so they know they fell within that window, that November 27 to December 15th window, where they may have been --
WHITFIELD: Yes.
MAYERLE: Had their information compromised. They now still have time to go and sign up through Target.
WHITFIELD: And that works for credit card use, but not necessarily your debit card use.
MAYERLE: Right.
WHITFIELD: Boy, and in this day and age, it seems like people are pretty heavy handed with their debit card use.
MAYERLE: They are.
(CROSSTALK)
WHITFIELD: Frightening stuff.
MAYERLE: You want to start using credit cards.
WHITFIELD: Yes. That or cash.
MAYERLE: Right.
WHITFIELD: All right. Jennifer, thanks so much. Appreciate that.
Well, coming up in a few minutes, we're going to talk more about the situation to our money guest who says we actually may see a lot more of these kinds of issues with retailers in the near future. And we'll hear what he thinks of they -- perhaps these retailers have been doing wrong when it comes to security.
And pot, well, you know by now, it's legal in Colorado and business is booming there. New stores popping up all over that state.
Plus, New Jersey Governor Chris Christie used to be the federal prosecutor, now he may wind up being a defendant?
(COMMERCIAL BREAK)
WHITFIELD: The scandal involving Governor Chris Christie and his office is growing. New documents are now out that reveals some of his aides trying to stonewall the media about a hastily crafted plan to close lanes to the George Washington Bridge. Those closures in September wreaked havoc on the Jersey side of the nation's busiest bridge and a trail of internal e-mails shows that the closings were done to punish the mayor of Fort Lee for not backing Christie's re- election campaign.
Joe Johns is in Washington with more -- Joe.
JOE JOHNS, CNN CRIME AND JUSTICE CORRESPONDENT: Fred, the paper trail so fat shows at least one other member of Governor Christie's senior staff who's not been publicly identified was forwarded an e-mail detailing the extent of the problems on the George Washington Bridge, however, we don't know whether that staffer actually read the document and there's no indication she was involved in any political retribution.
There's also a document that says the mayor of Fort Lee, New Jersey, felt the lane closing on the bridge was done to make him look bad. Then after the traffic mess was cleared up, there was an active attempt to stonewall media questions about what happened.
(BEGIN VIDEOTAPE)
JOHNS (voice-over): The more than 2,000 pages of documents released by state lawmakers come as the committee continues to hone in on why traffic was snarled back in September. Chris Christie's former deputy chief of staff, who he fired Thursday, may be the next person subpoenaed to testify in the widening probe. Sources tell CNN, lawmakers want to question Bridget Kelly about her involvement in closing two lanes of traffic under the George Washington Bridge.
Kelly's e-mail, "Time for some traffic problems in Fort Lee," was made public this week.
DAVID WILDSTEIN, FORMER PORT AUTHORITY: On the advice of counsel I assert my right to remain silent.
JOHNS: On Thursday, David Wildstein, the port authority official that Kelly sent that e-mail, refused to answer state lawmakers' questions. He was held in contempt. The pair are accused of snarling traffic on the bridge as political retribution. Thursday, Christie said he was unaware of the plan that caused the traffic jam.
GOV. CHRIS CHRISTIE (R), NEW JERSEY: I had no knowledge or involvement in this issue, in its planning or its execution and I am stunned by the abject stupidity that was shown here regardless of what the facts ultimately uncover. This was handled in a callous and indifferent way.
(END VIDEOTAPE)
JOHNS: So just how bad was the mess on the bridge? 2800 vehicle hours were lost during the traffic test according to the report. The documents paint a fuller picture of the chaos and outrage that occurred in the days after the test. The Fort Lee police chief was quoted as saying it was a monumental failure.
There's no indication in the documents we've seen that Governor Christie played a role -- Fred.
WHITFIELD: All right. Thanks so much, Joe Johns in Washington.
So while Governor Christie's office is a subject of the state investigation, he's also now dealing with a federal criminal probe and facing civil lawsuits.
Tanya Miller is here with me now. You know how these investigations go, but based on what you've heard thus far, you hearing any evidence that really help substantiate a criminal probe?
TANYA MILLER, FORMER FEDERAL PROSECUTOR: Well, you know, not yet and it's important to realize, Fred, what the U.S. attorney has said he is doing. He has not launched a full blown criminal investigation yet. What he has launched or opened is a somewhat more limited investigation to see whether or not any federal crimes possibly occurred in this. So that's a little bit different.
There is still a question in the U.S. attorney's mind if a federal criminal statute has been implicated by anybody in this.
WHITFIELD: OK. Meantime, there has been at least one class action suit that has been filed in which at least one Fort Lee woman who took to the air waves yesterday, saying that she had a panic attack because of that traffic. Does more have to be established in order for a class action suit to be successful?
MILLER: Well, I definitely think that are -- there's a lot more that has to be established before a class action lawsuit is going to be successful.
Look, the facts are still developing in this case. Who knew what and when. Those are all going to be critically important to understanding and developing a civil suit. Because you still have to prove it by a preponderance of the evidence. Just because you say it in a complaint doesn't make it so and if this woman had a panic attack because she was in traffic, I mean, can you imagine if every time there's a traffic jam, someone has a panic attack and a lawsuit develops?
I just don't know that we know enough about the facts yet to say that's going to be successful.
WHITFIELD: And what about if others are able to substantiate that they lost, you know, many work hours, school hours, that it cost them significantly, financially or otherwise, by being caught up in these traffic snarls over a period of days?
MILLER: Again, you know, these are going to be very fact specific and each case is going to be to have evaluated. For example, if someone can show conclusively that they lost economically or that they were severely injured or injured in any way as a result directly of the intentional actions of these staffers on behalf of Christie, perhaps, but again, we're not there yet.
We don't know yet and the kind of intentional infliction of emotional distress that is usually sustained in a civil case is really when the conduct on the tort (INAUDIBLE) is extreme and outrageous. It's not just that you do something that causes someone some pain. You have to be acting in an extreme and outrageous fashion. And I don't know that we're going to see enough -- that we've seen enough yet to say that Christie staffers were acting that way.
WHITFIELD: And then back to the planning and the execution of this closure. As people continue to go through these documents, even if it doesn't necessarily have Chris Christie, the governor's e-mail, that there was this real collusion in planning of the event, will it be enough to try to substantiate for prosecutors or investigators to substantiate that the governor may have set the tone.
While he may not have been actively involved in the planning and execution, something preceded these staffers to feel like they could get away with it or that they should do it or that it would be in any way sanctioned by the governor?
MILLER: I don't know that his failure as a leader, his failure to really supervise and be in control of his staffers will be enough to give rise to some kind of crime or criminal charge against Governor Christie. Obviously it has political implications, obviously it has moral and ethical implications, but whether or not he can be charged criminally is a very, very was a specific and limited kind of inquiry.
I don't see enough evidence here yet, but that's what investigations are for and it's interesting because to get to the question of whether or not Governor Christie knew about it, authorized it or ordered it, you're going to have to get to those upper echelon people. We haven't interviewed them yet. Law enforcement officers have not brought them before the grand jury yet.
WHITFIELD: Is it --
MILLER: What are they going to say? We don't know.
WHITFIELD: Is it reasonable to be believe that immunity would be offered to any or all of the above --
MILLER: I think --
WHITFIELD: -- for the sake of getting as much information as possible?
MILLER: Absolutely. I think it's definitely a possibility and it is a tool in the belt of law enforcement that they will use if they -- if they need to.
WHITFIELD: Interesting. Tanya Miller, thanks so much. Appreciate it.
MILLER: Thanks, Fred.
WHITFIELD: All right, well, it sounds a little strange to say the very least. Hunting down an endangered species in order to save it. The debate that could have the black rhino in one hunter's crosshairs.
Plus, a jam session 40 years in the making. Carlos Santana reuniting with his homeless ex-bandmate.
(COMMERCIAL BREAK)
WHITFIELD: Tonight, a group of hunters will bid on a permit to kill one of the world's most endangered animals. The Dallas Safari Club says killing one black rhino will help save dozens of others. Their auction is drawing a lot of anger and also the attention of the FBI.
Our Ed Lavandera reports.
(BEGIN VIDEOTAPE)
ED LAVANDERA, CNN CORRESPONDENT (voice-over): Coming this close to a black rhinoceros is rare. There are only about 5,000 left in the world. In the country of Namibia in Southern Africa, there are only 1700 still alive. Thousands of miles away in this convention hall in Texas, the Dallas Safari Club says it has a way of helping save this ancient beast. The group will auction off a permit from the Namibian government to hunt and kill one black rhino.
The club's executive director Ben Carter says sacrificing one animal for the greater good is smart conservation.
BEN CARTER, DALLAS SAFARI CLUB: It's going to be able to raise more money than any other way you can do it to help provide for all the conservation needs that we need for the black rhino.
LAVANDERA: The auction has sparked death threats which the FBI is investigating along with a vicious debate over how to save this endangered species. Critics call the auction a sad joke.
(On camera): Marcia, tell us where you're joining us from?
MARCIA FARGNOLI, SAVE THE RHINO TRUST: I'm sitting in Swakopmund, Namibia, in Africa.
LAVANDERA (voice-over): Marcia Fargnoli is CEO of Save the Rhino Trust and works with the Namibian government to protect the rhinos.
(On camera): Do you agree with this tactic, the way they're doing it?
FARGNOLI: I personally don't agree. This is actually saying that one rhino is worth dead much more than it is alive.
LAVANDERA: The black rhino hunting permit will be auctioned off Saturday night. It's a closed event. You have to have a special ticket to get in. No cameras will be allowed inside. Organizers say it's to protect the identity of the bidders.
The Dallas Safari Club estimates the permit could sell for as much as $250,000, even up to $1 million.
(Voice-over): The Dallas Safari Club says all of the money will be donated to Namibia's conservation efforts to save the black rhino and that the government has picked a handful of rhinos that can be targeted by the hunter who wins the auction.
CARTER: They've already picked out two or three black rhino males that are old, non-breeding males. They're not contributing to the population anymore. In fact, black rhinos are very territorial and they're very aggressive. And they actually are detrimental to the population when they get old like that. They are like a cranky old man. LAVANDERA: But animal conservation groups say it would be better to keep the rhino alive and raise money through tourism, selling the opportunity to see these animals up close in the wild.
JEFFREY FLOCKEN, INTERNATIONAL FUND FOR ANIMAL WELFARE: I can't state how strong enough how perverse this is to say that killing these animals is the best thing for these animals. It is a critically endangered species.
LAVANDERA: The black rhino is in the crosshairs of controversy and both sides say they're doing what's best for this wild beast.
Ed Lavandera, CNN, Dallas.
(END VIDEOTAPE)
WHITFIELD: The West Virginia Poison Center has taken more than a thousand calls from residents complaining of possible symptoms related to contaminated drinking water. More than 300,000 people in nine counties have been told not to bathe, shower or drink their tap water after a chemical leak into the river. The federal government has sent 16 tractor trailers of bottled water to the region.
All right. The next round of the NFL playoffs kicking off in just a few hours from now. First up in the NFC Drew Brees and the New Orleans Saints taking on the Seattle Seahawks and in the AFC, it's the Indianapolis Colts versus Tom Brady and the Patriots in the night cap.
And on the heels of the legalization of marijuana in Colorado, there's been a major shift in attitude toward overall legalization of pot. A new CNN/ORC poll says for the first time ever a majority of Americans now support legalization. 55 percent say they think it should be made legal and only 44 percent are against it.
So how does support for legal marijuana stack up against other vices?
Well, marijuana is slowly closing in on tobacco's support level. The poll shows only 71 percent of Americans think tobacco should be legal.
With weed now legal in Colorado, some entrepreneurs are taking advantage of that.
Randi Kaye shows us how it's already becoming big business.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Which one was this?
UNIDENTIFIED FEMALE: This is the Hong Kong sour --
RANDI KAYE, CNN INVESTIGATIVE CORRESPONDENT (voice-over): At the Grove in Denver, it's hardly business as usual. This marijuana dispensary has gone from serving 25 to 50 customers a day, selling medical marijuana to about 400 people daily. Now that recreational pot is legal. ERIN PHILLIPS, CO-OWNER, STRAINWISE: We definitely did get in at the right time. We were able to get on the bandwagon with the recreational.
KAYE: Erin Phillips and her husband own the Grove, along with seven other dispensaries around the Denver area under their parent company Strainwise. Before this, they were in the real estate business. When they opened their doors on January 1st, the first day pot was legal here for those 21 and older, they were swamped by customers.
PHILLIPS: It was very, very busy. We had people lining up before the door is opened. Throughout the day we pretty much had about a three to three and a half hour wait. We had people coming in the door just stunned. They were all like kids in a candy store.
KAYE: Which is exactly why investment groups are sinking money into Colorado. Arc View Investments has dropped $3 million nationwide on cannabis companies. A million of that right here in Colorado.
Arc Views CEO believes cannabis is the next great American industry and is predicting 64 percent growth in the next year.
Erin's husband, Shawn Phillips, says dispensaries here sure can use investor money.
SHAWN PHILLIPS, CO-OWNER, STRAINWISE: Most of the retailers probably spent between $50,000 and $200,000 to get their shops up and going. A large grow could be anywhere from $400,000 to a couple of million depending on what they put in it.
E. PHILLIPS: Our bestseller is Jack Flash. It gives you all of the effects of an (INAUDIBLE) which kind of relaxes you, can put you to sleep. With also some of the effects of a Sativa, which will keep you awake.
KAYE (on camera): Can I take a smell of it?
E. PHILLIPS: Absolutely.
KAYE: Wow. It smells strong.
E. PHILLIPS: It's very strong.
KAYE (voice-over): They've sold about 20 pounds of marijuana every day. Colorado residents can buy up to an ounce, but the Grove more often sells an 8th of an ounce.
(On camera): So let me give you an idea of what an eighth of an ounce looks like. Here it is right here and here at the Grove, this will cost you 60 bucks plus tax so it comes out to about $73.
Now one of the reasons that they're setting their prices higher here is so that they don't run out of supply. But this is a learning process and the owners know they have to see how it goes, but they do expect prices to come down. S. PHILLIPS: You know, I think that this could be a very big year for us and the company as a whole. I can't give you specific numbers, but I think that we will do probably two or three times what we did last year based on the numbers we've seen so far this year.
KAYE: The National Cannabis Industry Association is projecting recreational marijuana sales will exceed $200 million in Colorado this year handing the state $67 million in tax revenue.
Randi Kaye, CNN, Denver.
(END VIDEOTAPE)
WHITFIELD: Another possible breach at a major retailer. In a minute, our money guest will tell us why he thinks this could be happening.
And making music again after 40 years. Incredible story behind the reunion of Carlos Santana and his ex-bandmate, who's been homeless.
(COMMERCIAL BREAK)
WHITFIELD: All right. Not so good news. There just might be another data breach with a major retailer. Neiman Marcus says it's investigating a cyber attack that may have compromised its customers' information. This follows a revelation from Target which says its recent data breach affects almost twice as many customers as originally thought. At first, Target talked about 40 million customers. Now upwards of 70 to 100 million customers compromised.
All right. Wes Moss is the chief investment strategist at Capital Investment Advisors and he's been watching this story as it pertains to Target, and now even Neiman Marcus. So Neiman Marcus hasn't had a whole lot to say at least publicly about how many customers was it, you know, the Neiman Marcus credit card or was it other credit card transactions. Why do you suppose it's taking so long? What's going on?
WES MOSS, CHIEF INVESTMENT STRATEGIST, CAPITAL INVESTMENT ADVISORS: Well, from what we have seen now with Target, this is a really big problem from any American big box retailer -- Target, Wal-Mart, Costco. And what they're trying to do is just get as much information as they can so they can do damage control. It's a very, very big deal for them.
WHITFIELD: This is a very big deal. Now what is going on with such giant retailers that would have this kind of security breach? I mean, we would think that they have the most sophisticated security in place. How is it hackers have managed to infiltrate?
MOSS: To the contrary. The -- what I -- what really --
WHITFIELD: Not sophisticated?
MOSS: Right. So what we have seen here in the U.S. is that big box companies and retailers are almost ensuring and will -- they look at the situation and they say, we know we're going to have some problems. We are going to ensure and pay for this fraud because it's cheaper than us upgrading our entire technology system.
WHITFIELD: Really?
MOSS: Right. There are -- there are advanced technologies with encrypted credit cards --
WHITFIELD: Right.
MOSS: -- that have a brand new encoded number every single time as opposed --
WHITFIELD: They aren't generally used in the U.S., but you may see them in other countries. We have seen it in Canada --
MOSS: Other countries. And we just haven't -- we haven't made the switch here. We still use the antiquated, magnetic strip. Same number every time.
WHITFIELD: So then what do we do if -- if we can't get a better understanding, consumers, as to how data breaches are taking place, what does this tell us about our shopping habits now? What do we need to do -- change to try to make sure that we don't become victimized next?
MOSS: Over the last couple of decades, I think American consumers have really gotten lulled to sleep with using a debit card. It just gotten easier.
WHITFIELD: So easy.
MOSS: Easier to shop. What we have to go back to is kind of the modern day version of balancing our checkbooks. So our grandparents, our parents had to literally write in a checkbook and figure out where money went. We've got to do the same thing in America and we have to start paying attention to our transaction statements every day.
WHITFIELD: So use our checks more. I mean, I still write checks. Maybe not when I'm, you know, in the line in a grocery store, but people laugh at me. They're like, you are still writing checks?
MOSS: You're still writing checks.
WHITFIELD: Just because, you know, for bookkeeping purposes. But really it means a lot of retailers are not going to have the patience with you writing a check. But maybe it means what? We have to use more cash or be a little bit more careful about what kinds of credit cards we use?
MOSS: I think that there are -- it comes down to Americans vigilance and understanding where money goes. I think that the average American can go a week or two weeks or a month without ever looking on their credit card statement, or on their debit card statements. So it comes back to really paying attention.
WHITFIELD: My goodness. OK. Meantime then, for your Target, for your Nieman Marcus, what are they doing right now to try to better -- secure customers who are still using -- you know, making transactions by way of credit cards and debit cards?
MOSS: It's a matter of time before they upgrade the technology and I think that you're going to see the public pressure to make them do this. What's interesting is the fact that they've already known that they can upgrade the technology, but it's going to cost them billions of dollars to do that. It's been cheaper to insure the losses from fraud that they know they're going to have.
WHITFIELD: Unbelievable.
MOSS: So it's really a matter -- what we're going to see is public pressure to increase security. But then new hackers will come in and figure out a way around the brand new security.
WHITFIELD: Oh, my goodness. Frightening stuff.
All right, Wes Moss, thanks so much. Good to see you.
MOSS: Fred, great to see you. Thank you.
WHITFIELD: OK.
All right, coming up, as Hollywood gears up for tomorrow's Golden Globes, we're asking is the show a good indicator of what happens at the Oscars?
But first, rock legend Carlos Santana spent decades looking for a lost bandmate, but a chance reunion has them making sweet music all over again.
(COMMERCIAL BREAK)
WHITFIELD: An unforgettable jam session four decades in the making. The legendary Carlos Santana is again making sweet sounds with a homeless ex-bandmate.
We first brought you the story of Marcus Malone back in December. Malone was discovered after a chance encounter with a San Francisco reporter and then days later, he was reunited with Santana.
When I spoke with Santana last month, he told me that he would play again with Malone. Well, now he's made good on that promise.
Stanley Roberts with CNN affiliate KRON has the story.
(BEGIN VIDEO CLIP)
STANLEY ROBERTS, KRON REPORTER: For the first time in decades, you're listening to Carlos Santana and Marcus Malone, jamming together at Carlos Santana's music studio in San Rafael. It was because of a one- in-a-million chance meeting of Marcus rummaging through piles of trash on 98th Avenue and Pearmin.
What's your name?
MARCUS MALONE, FORMER SANTANA BANDMATE: My name is Marcus. ROBERTS: Marcus.
MALONE: Marcus Malone.
ROBERTS: Marcus Malone.
MALONE: I used -- at one time, I was with the Santana band. The original Santa Blues Band.
ROBERTS: You were with the original Santana Blues Band.
MALONE: Yes.
ROBERTS: Now you're out here picking through all the trash --
MALONE: Now I'm homeless and on the streets because I got into some trouble.
ROBERTS: To meeting with Carlos Santana just a few days later at 98th at Meadows.
MALONE: Oh, man.
ROBERTS: Where Marcus was living in this camper and cutting neighbor's lawns to make money and now they are here in San Rafael.
Why do they call you "The Magnificent"?
MALONE: I think because it's a magnificent sound. They figure we're magnificent people.
CARLOS SANTANA, MUSICIAN: When we met Marcus, you know, he referred to himself as Marcus "The Magnificent" Malone, you know, and he backed it out by everywhere we played, you know, it was -- it was mesmerizing.
ROBERTS: This is the first time in four years that you guys have jammed together.
SANTANA: Yes. That's right.
ROBERTS: What does it feel like? Tell me.
MALONE: Feels like the same day we started jamming. The rhythm locked in, and was beautiful, although I'm a little rusty, but it was coming back quick.
(LAUGHTER)
ROBERTS: If that's rust, I want your rust.
What is this, man?
MALONE: Oh, man.
ROBERTS: You're looking at some never-before-seen photos of Carlos and Marcus from back in the day.
MALONE: I'm really grateful, man. You know that --
ROBERTS: But the real surprise --
SANTANA: This Congo is yours, man. You can take those with you, man.
MALONE: Is that right?
SANTANA: Yes. That's right.
MALONE: Gees. Now that's beautiful.
SANTANA: They're beautiful, man. And I'm very grateful -- glad to reconnect with you. It's good to see you.
And, Stanley, thank you for doing this.
When people saw Marcus and I reconnecting, all over in India, New Zealand, all over the world, people -- women and men were crying. You know, because --
(CROSSTALK)
MALONE: I cried myself.
(LAUGHTER)
SANTANA: Hopefully, later on, a couple of weeks from now we'll call Marcus and see if we can invite him to Las Vegas and record a couple of songs with us.
MALONE: Yes.
ROBERTS: And if you do go to Vegas, I'm coming, too.
I always say, you hear a lot of no's in your life, but you only need one yes. The one yes, reunited not just as musicians but friends.
In San Rafael, Stanley Roberts, KRON 4 News.
(END VIDEO CLIP)
WHITFIELD: In December it was really the Christmas miracle, and now happy new year. It really is the story of 2014 already. What a way to get it started.
All right. Lots of films are up for the top prizes at this Sunday's Golden Globe, but which one already got the nod for a Golden Tomato Award?
(COMMERCIAL BREAK)
WHITFIELD: Here's Christine Romans with a look at what's ahead on "YOUR MONEY."
CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Hi, Fredricka.
Coming up right now on a brand-new "YOUR MONEY" marijuana is legal in Colorado, but you can be fired for smoking it. Employers around the country are asking for everything from your Facebook password to your credit score. What are your rights? That's next -- Fredricka.
WHITFIELD: Thank you so much, Christine.
All right. Only one day until the Golden Globe Awards and best films of 2013 will be the spotlight for tomorrow night. And many people are also wondering will it be an Oscar preview?
Well, Grae Drake decided to grace us with her presence. It's been oh, too long, Grae. Senior editor of "Rotten Tomatoes" -- back at you. Joining us from Los Angeles.
All right. Good to see you. So we've got to go through this quickly. Don't we? Because there's so many categories.
All right. Best Picture in Drama category are "12 Years a Slave", "Captain Phillips", "Gravity", "Philomena" and "Rush." Your predictions?
GRAE DRAKE, SENIOR EDITOR, ROTTEN TOMATOES: This is the Wild West for Golden Globe year. If there's a year for hair-pulling or face- slapping, it's this year. So many good films but "Gravity" rises above the rest, you'll pardon the pun, and has a little bit of an edge when it comes to awards this year because it is the recipient of our "Rotten Tomatoes" Golden Tomato for the Best Reviewed Wide Release.
WHITFIELD: I like it. That's nice.
DRAKE: Meaning that our critics loved it.
WHITFIELD: Wow. I must say --
DRAKE: You know what?
WHITFIELD: Yes. Go ahead.
DRAKE: I carry this thing in my purse instead of mace. It is heavy.
(LAUGHTER)
WHITFIELD: I believe you. That's one big purse you've got.
All right. Let's talk about Best Picture in Comedy. This category just really confuses me. "American Hustle," A, didn't know it was a comedy, "Her", "Inside Llewyn Davis", "Nebraska" and "The Wolf of Wall Street." Again, didn't know that was comedy. But OK, explain this one for me and your favorite.
DRAKE: Well, my favorite is hands down "American Hustle" for the reasons that you're alluding to. These comedies in this category are very nuanced comedies. "American Hustle" is not just a straight comedy. It is also a heist movie and it's about love and plus lots of sequins and horrible combovers. So I say the Hollywood Foreign Press is going to love it.
WHITFIELD: So the hair stuff is what makes it comedic? Right?
(LAUGHTER)
DRAKE: A little bit.
WHITFIELD: OK. OK. So let's talk in general about, you know, these Golden Globes. People get very excited about them. The glitz, the glamour, the champagne flowing, the comedy, you know, of the host, et cetera. But really, does it become kind of a prelude, a real preview for the upcoming Oscars?
DRAKE: There certainly are indications based on who gets the prizes. However, the Hollywood Foreign Press is a much smaller body of voters, and they march to the beat of their own drum. They invite the celebrities to their event, get them drunk and let them do crazy stuff.
So we see a lot bolder choices coming from the Golden Globes and a lot more upsets. So it's really difficult for everyone in my industry to predict anything this year because all of my excellent reasoning could be quickly thrown out the door. This makes my job nearly irrelevant and I'm furious.
WHITFIELD: No. Well, you know, there have to be some surprises. We just can't know it all, you know.
DRAKE: That's right.
WHITFIELD: So, you know, as it pertains to, you know, some predictions trying to, you know, do some guesswork here. Best Actor, Best Actress, of the nominees, who do you like?
DRAKE: Yes. Well, I'll tell you who hands down is going to come home with an award tomorrow. And that's the Best Actress in a Drama category belonging to hook, line and sinker, the fabulous Cate Blanchett for "Blue Jasmine".
WHITFIELD: She is one of my favorites actresses. Period.
DRAKE: That's the only --
WHITFIELD: Hands down.
DRAKE: Good lord.
WHITFIELD: Everything she does.
DRAKE: If you saw that movie, you would know that -- and I'm not sure if you did catch it, but, I mean, her armpit stains alone deserved to give her an award.
WHITFIELD: What?
DRAKE: She let herself -- I'm telling you. She let herself. WHITFIELD: I haven't seen "Blue Jasmine" yet. OK. I'm going to go but yes, keep going.
DRAKE: You must. Because she let herself dive so deep into the recesses of madness for this role that -- you just are so concerned about her well-being. It's rare that you see a performance that pulls you in like that.
WHITFIELD: And then quickly, Best Actor?
DRAKE: Actor in a Drama could go anyway but I think the Hollywood Foreign Press is going to go for Robert Redford in "All is Lost," because a moment with Redford on that stage is going to be perfect, hands down.
WHITFIELD: That's true. That would be so nice. And what an incredible comeback, and to know that he's actually never been nominated for anything before, given his career. Come on. This has got to be his year. Robert Redford. Let's give it to him.
(LAUGHTER)
DRAKE: True.
WHITFIELD: Not just to give it to him, but because he's earned it. Right?
Grae Drake --
DRAKE: Why don't we give him one of these?
WHITFIELD: OK. I'm sure he would appreciate that. You know, I wouldn't mind being in the room when you personally present it to him. How about that? We'll make a date.
DRAKE: Me either.
WHITFIELD: OK. Great. Thanks so much. Good to see you. Appreciate it.
All right. That's going to do it for us for now in the NEWSROOM. I'll see you back here in about 30 minutes.
