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Schools and Illegal Immigrants; New Audio Recording of Donald Sterling?

Aired May 08, 2014 - 15:00   ET

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

PAMELA BROWN, CNN ANCHOR: You're in the CNN NEWSROOM. I'm Pamela Brown, in today for Brooke Baldwin.

And we begin with what could possibly be the first words from L.A. Clippers owner Donald Sterling since he got banned from the NBA for life, an audio of a phone conversation leaked today from Radar Online.

In it, a male voice said to be Sterling speaks to an unknown male and adamantly denies he's a racist. He also says he cannot be forced to sell his team. Radar Online says its source provided an affidavit confirming the call was indeed made by Sterling.

Now, we should not CNN cannot independently confirm that it is Sterling in this audiotape you're about to listen to.

(BEGIN AUDIO CLIP)

UNIDENTIFIED MALE: You think I'm a racist? You think I have anything in the world but love for everybody? You don't think that. You know I'm not a racist.

UNIDENTIFIED MALE: I know I got -- what I mean when I heard...

UNIDENTIFIED MALE: I can't hear you.

UNIDENTIFIED MALE: What about when I hear that tape, though? That tape I heard?

UNIDENTIFIED MALE: I grew up in east L.A. East L.A., you die to get out of there. I got out of east L.A. I was the president of the high school there. I mean -- you see, and I'm a Jew and 50 percent of the people there were black and 40 percent were Hispanic.

You ever been to Boyle Heights?

UNIDENTIFIED MALE: Yes, I have been to Boyle Heights.

UNIDENTIFIED MALE: So, I mean, people must have a good feeling for me.

UNIDENTIFIED MALE: Did you talk to Griffin or anybody yet? Did you talk to anybody?

UNIDENTIFIED MALE: I didn't talk to anybody. I'm in my house in Beverly Hills. UNIDENTIFIED MALE: Yes.

UNIDENTIFIED MALE: I mean, how could you think I'm a racist, knowing me all these years? How can you be in this business and be a racist? Do you think I tell the coach to get white players or to get the best player he can get?

UNIDENTIFIED MALE: The best player he can get.

UNIDENTIFIED MALE: I mean, you -- I don't expect anything from anybody, but I do from you.

I mean...

(CROSSTALK)

UNIDENTIFIED MALE: It breaks my heart that Magic Johnson, you know, a guy -- a guy that I respect so much, wouldn't stand up and say, well, let's get the facts. Let's get him and talk to him.

Nobody tried, nobody. I'm here on Beverly Drive and Sunset across from the Beverly Hills Hotel, you know?

UNIDENTIFIED MALE: I think they're going to -- they're probably trying to force you to sell. That's the thing.

UNIDENTIFIED MALE: They don't -- you can't force someone to sell property in America. Well, I'm a lawyer. That's my opinion.

UNIDENTIFIED MALE: I think that -- well, no, I'm just saying I think they've got Sean Combs, Diddy, he's the one that's really seeking to buy, him and Oprah.

UNIDENTIFIED MALE: Who?

UNIDENTIFIED MALE: Diddy, Sean Combs and -- and Oprah are the ones trying.

(END AUDIO CLIP)

BROWN: A lot to discuss here.

Let's bring in sports agent Eugene Lee.

So, Eugene, if you take the audio at face value, it seems like he is genuinely perplexed that people think he's a racist. What was your initial reaction when you heard it?

EUGENE LEE, SPORTS AGENT: I thought the same. I thought that it didn't seemed canned, it didn't seemed staged. He seemed genuinely perplexed. And he couldn't figure out why people perceive him as a racist now, despite his deplorable comments. So, it was -- it seemed authentic, from my point of view.

BROWN: And what really jumped out to me was toward the end when he said you can't force people to sell property in America. Right here, we have the Article 13-B in the NBA constitution and it says here, it clearly states that an owner can be terminated if he fails or refuses to fulfill its contractual obligations to the association, it members, players, or any other third party in such a way as to affect the association or its members adversely.

So, was Sterling wrong when he can't be forced to sell his team?

LEE: Sterling is incorrect.

Now, governmentally, under the theory of eminent domain, the government can force the sale of private property for public use, if just compensation is paid. Now, that's from a government side. Sterling bought the team over 30 years ago, paid $12 million for the Clippers. He would likely reap a sale anywhere between $500 million to $600 million.

One can see that just compensation would be paid here. Now, the key point to remember is that NBA is a private organization. And under its bylaws, it does have the right to force the sale of a team to promote the good of the game, to promote the integrity of the game. So, I think that they are within their rights if they do force a sale.

BROWN: But Donald Sterling, if this indeed him in that audio, making it clear he's not going to go down without a fight.

If he were to file suit, and he is known to be litigious, what do you think his counterargument would be? Would it be his right to free speech?

LEE: Absolutely.

He would assert his First Amendment rights, the freedom of speech, stating that even if his views were verified to be true, he can hold those views under the U.S. Constitution. Now, the NBA will likely counter and state that due to his position of power as an NBA owner, serious damages, economic damages, have been incurred and likely will be incurred by Clippers employees, not necessarily the players, but the employees, the operations staff, the sales staff, due to his racist views, mostly in the form of questionable hiring practices and alleged discrimination.

BROWN: Eugene, let me ask just you this quickly, because I think a lot of people would say he's already been convicted in the court of public opinion. Are you surprised that he hasn't just come out to apologize, to explain why he said what he said?

LEE: It's a very ignorant view.

I was shocked to see and to hear his initial remarks. And I was shocked to hear these as well. So I don't know if he necessarily will come out and express his remorse. But I don't think the verdict will change in the court of public opinion, no matter what.

BROWN: All right. Eugene Lee, thank you. And coming up in the NEWSROOM, we are going to look into a comment by V. Stiviano, who initially recorded Donald Sterling. We're going to tell you what she said that could land her in some hot water with the IRS.

And now turning to a major fallout from a CNN investigation. The president has just voiced his -- quote -- "complete confidence" in Secretary of Veterans Affairs Eric Shinseki, despite the firestorm that he is facing right now.

Today, Shinseki's department offered an audit of every VA hospital in the country following a CNN investigation into the Phoenix VA.

A CNN investigation found that 40 veterans died allegedly waiting for care from that hospital. And some of them were on a secret waiting list,according to sources.

CNN's Drew Griffin broke the story of delayed care at the VA months ago and joins us now live from San Antonio.

So, Drew, this audit is a major move for the VA.

DREW GRIFFIN, CNN INVESTIGATIVE CORRESPONDENT: Well, it's a huge undertaking, a nationwide review of medical access at every VA clinic and hospital.

And that's going to include, according to the secretary, a face-to- face audit of the procedures leading to wait times, how wait times are calculated, and just how long these veterans are waiting across the country, all of this, Pamela, coming to a head because of the allegations stemming out of Phoenix.

They are still under investigation. But the allegations are that we have reported that there was a secret hidden list hiding the fact that veterans were waiting up to 21 months to see a doctor. As you said, 40 patients who had been waiting died during that time period.

They're trying to find out if their deaths were related to the waits. But today, at the House Veterans Affairs Committee, they had simply had enough with Shinseki. They want to know, one, all about this alleged secret list, and, two, whether or not that secret list, the evidence of it has been destroyed by the VA, and that's why the House Veterans Affairs Committee did what they did today, issuing a subpoena to get a Cabinet secretary to appear before them.

BROWN: And, Drew, Shinseki has given interviews to other news outlets. I know it's not for a lack of trying on your part. Can you explain this?

GRIFFIN: He's picking and choosing where he talks, who he speaks to.

He has apparently agreed to go to the Senate Veterans Affairs Committee next Thursday to testify in a hearing about care and timeliness of care at the VA. That is a Democratic, basically, run committee that is sympathetic and has -- who is Bernie Sanders, the independent, but he has said some very sympathetic things about Shinseki and the way he runs his business.

So, I think Shinseki is just picking and choosing whom he talks to. He will not talk to us. We have asked every day for the last several weeks. We have been asking for six months. And I can tell you, he didn't get asked any tough questions yesterday, that's for sure.

BROWN: Drew Griffin, thank you.

Up next, a child rejected by a preschool after being diagnosed with autism, the case sparking a lawsuit. But was this a case of discrimination?

Also, a strong message to public schools across the country when it comes to educating illegal immigrants.

And later this hour, two brothers about to star in their own show, but they were fired before the show ever aired, all because of their personal beliefs. Has political correctness gotten in the way of making a living?

We're talking about it later in the show.

(COMMERCIAL BREAK)

BROWN: With the CDC just reporting of one in 68 kids in the U.S. is on the autism spectrum, we may be hearing stories about this next one more often.

A New York City family is suing a preschool, accusing it of discriminating against their child without ever meeting him. The family says it did not know the 3-year-old boy had autism when they applied to the Washington Market preschool, which admitted the child.

The mother says that, when she disclosed the diagnosis, the private school rescinded his acceptance.

(BEGIN VIDEO CLIP)

JENNIFER SAMPLE, MOTHER: The point is, is that you can't discriminate like this and think you can get away with it.

UNIDENTIFIED FEMALE: You don't think they have the right to just say, no, you can't come?

SAMPLE: I think that do if they evaluate a child, and the child exhibits inappropriate behavior that would not provide a meaningful experience for that child or for the other children in the school.

This is the not case with our son.

GARY MAYERSON, ATTORNEY: They did not discriminate on the basis of some kind of legitimate reason, such as the child has aggressive behaviors.

They accepted him and rejected him sight unseen because of the autism label. (CROSSTALK)

BROWN: The school's board chair tells CNN that the allegations are -- quote -- "baseless" and the school is conducting a review of the incident.

An unmistakable message today from the Obama administration to public schools across the country. They have to let in any child who lives in the school district, even if that child is in the country illegally.

Justice reporter Evan Perez is here with a look at the very detailed new guidelines given to schools today telling them what they can and can't ask parents to prove.

So, Evan, is this a real problem, especially in the light of the fact that it's been more than 30 years since the Supreme Court ruled that states have to provide free public education for all children, whether they're U.S. citizens or not?

EVAN PEREZ, CNN JUSTICE CORRESPONDENT: Well, so it's surprising, but in this day and age, that this is still a problem, but officials say it really is.

In Alabama, the state passed a law to try to limit schools to legal residents. In Georgia and Florida, parents have run into I.D. requirements. The Education Department says they have investigated 17 cases where schools were asking parents for things that illegal immigrants often don't have, things like driver's licenses, Social Security cards or birth certificates. And that is all illegal, if it prevents kids from going to school, Pamela.

BROWN: So, what documentation can schools ask for and what can't they require from parents?

PEREZ: Well, schools are allowed to seek proof that students live in a school district.

They can ask for utility bills or apartment leases. But they can't ask for anything that would discourage undocumented immigrants from enrolling their kids. The bottom line is, if a parent can't provide any of that information, schools can't turn away the kids, Pamela.

BROWN: Evan Perez, thank you so much for that report. We appreciate it.

Coming up, new concerns about those 200-plus young girls kidnapped in Nigeria. U.S. officials believe they may have separated, making it tougher to find them, and critics claiming the State Department missed warning signs about the group that abducted them.

But, first, it has been two months now since Malaysia Airlines Flight 370 disappeared without a trace -- today, new demands from the families of passengers on board. Hear what they're asking the Malaysian government to do -- right after this break.

(COMMERCIAL BREAK)

BROWN: Malaysia Flight 370 families now say the search for the missing airliner may be way off base. Families are begging Malaysia's government to release a specific clue.

Here's part of the family's open letter. Let's take a look here. It says: "We implore the Malaysian government to share and release the raw Inmarsat satellite engine ping data. We feel that it is necessary that the data be subject to independent third-party review. It is our hope that with out-of-the-box thinking, the whole world can help to look for the plane."

Of course, the families have been asking for that for quite some time now. And officials from Malaysia, China and Australia are meeting this week to discuss the next search area. Malaysia Flight 370 disappeared tow months ago.

And our Will Ripley takes a look at the aviation mystery that has gripped the world.

(BEGIN VIDEOTAPE)

WILL RIPLEY, CNN CORRESPONDENT (voice-over): In Canberra, Australia, some of the best minds in the world are taking a had look at the facts of Malaysia Airlines Flight 370. They fall into three categories, the known, the assumed, and the yet-to-be-discovered.

Among the known, 41 minutes after midnight on March 8, the 777 takes off from Runway 32 Right, climbing to flight level 350, 35,000 feet. Less than one hour into the flight, the final words from the cockpit.

UNIDENTIFIED MALE: Good night, Malaysian 370.

RIPLEY: Also known, the plane's tracking devices are switched off, causing the plane to disappear from civilian radar.

Malaysian military radar continues tracking the flight. A senior Malaysian air force official says the plane went off course, but nothing was done, even though it appeared something was wrong.

RICHARD QUEST, CNN CORRESPONDENT: No planes were sent up on the night to investigate?

NAJIB RAZAK, MALAYSIAN PRIME MINISTER: No, simply because it was deemed not to be hostile.

RIPLEY: It turns more than four hours to activate search-and-rescue teams. If all this is known, one huge fact has to be assumed, the flight path calculated from satellite data and fuel estimates from the plane, that data used to determine the plane's most likely flight path thousands of miles off course, leading the Malaysian prime minister to make this stunning statement.

NAJIB: Flight MH370 ended in the Southern Indian Ocean.

RIPLEY (on camera): An international team in Kuala Lumpur here spent countless hours calculating what they assume is the final resting place of the plane. Now, having found nothing, they're doing it all over again in Canberra, reanalyzing all the data collected in the last two months, coming up with what essentially is their best educated guess.

(voice-over): The team will chart the course for a massive underwater search operation off the coast of Western Australia, 60,000 square kilometers, $60 million, up to 12 months, focusing on the area where searchers heard noises they assume are from the so-called black box.

ANGUS HOUSTON, CHIEF SEARCH COORDINATOR: This would be consistent with transmissions from both the flight data recorder and the cockpit voice recorder. This is the most promising lead. So far, it's probably the best information that we have had.

RIPLEY: And now the facts we simply don't know, the facts yet to be discovered. What caused the plane to go off course and who, if anyone, was at the controls during the flight's final hours?

Despite the work of 26 countries, so far, the search has found no trace of the plane or those 239 people.

HOUSTON: We will do everything to solve this mystery. We will not let people down.

RIPLEY: Finally back to the one fact that's known and undisputed, two months later, still no answer to the question, will they ever find the plane that carries so many secrets?

Will Ripley, CNN, Kuala Lumpur, Malaysia.

(END VIDEOTAPE)

BROWN: It must be so agonizing for their families. Will Ripley, thank you.

And still ahead right here in the CNN NEWSROOM: the U.S. military heading to Nigeria to aid in the search for 200-plus kidnapped young girls. This hour, there are new worries that may make finding them even tougher.

But, first, Donald Sterling may lose his basketball team, but the woman at the center of the controversy may have some legal problems of her own. V. Stiviano's own words may land her in trouble with the IRS. We will explain up next.

(COMMERCIAL BREAK)

BROWN: L.A. Clippers owner Donald Sterling allegedly says he is not giving up his team without a fight. But he's not the only one in this controversy facing problems.

The woman who initially reported him could have been problems as well, only with the IRS. And it stems from a comment she made during a recent interview.

Here's Rosa Flores.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Can we talk to you?

UNIDENTIFIED MALE: Can we talk to you?

ROSA FLORES, CNN CORRESPONDENT (voice-over): V. Stiviano, Donald Sterling's enigmatic gal pal, made headlines for being on the receiving end of Sterling's racist rant.

She told Barbara Walters it was just an innocent chat between friends.

V. STIVIANO, FRIEND OF DONALD UNIDENTIFIED MALE: I'm Mr. Sterling's right-hand arm, man. I'm Mr. Sterling's everything. I'm his confidant, his best friend, his silly rabbit.

FLORES: But while Stiviano may not have broken the law by taping her best friend, she may have run afoul of the IRS.

BARBARA WALTERS, ABC NEWS: Does he pay you?

STIVIANO: Yes.

WALTERS: He pays you as an employee?

STIVIANO: He does not -- he at first he started paying me as an employee and then he started paying me off the books.

FLORES: Off the books? How could the owner of the Clippers, a man worth $1.9 billion, pay someone off the books?

(on camera): Is this a red flag, possible red flag for the IRS?

UNIDENTIFIED MALE: The connotation is that this is income being paid to someone, and it's not being reported anywhere.

FLORES: There are allegations that Donald Sterling was even more generous with his silly rabbit. His wife, Shelly Sterling, sued Stiviano, claiming her husband transferred at least $1.8 million to Donald Sterling's everything.

UNIDENTIFIED MALE: If you have an employer-employee relationship and compensation is paid and not reported to the IRS, and, more importantly, if the payroll withholdings are not remitted to the IRS, it's a very serious situation.

FLORES: Sterling also alleges her husband gave Stiviano fancy cars, Ferrari, and two Bentleys.

UNIDENTIFIED MALE: An employer can pay an employee with property or cash or many types of remuneration, but they would still be subject to, you know, the income tax withholding rules and reporting on a W2 as compensation.

(END VIDEOTAPE)