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CNN Live Saturday

Bib Business Returning to New Orleans; Accused Duke Lacrosse Player Appears Before Court

Aired May 20, 2006 - 14:30   ET

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

KEILAR: Just about half past the hour now. Here is what is happening in the news.
In Eastern Kentucky, a mine explosion has killed five miners. Another miner was able to walk out. It happened in Harlan County and an investigation into the cause is now under way.

The outcome is crucial. Voters in New Orleans are deciding who should oversee the city's long recovery from Hurricane Katrina. The battle pits incumbent Ray Nagin against Lieutenant Governor Mitch Landrieu. The winner takes office on May 31st, one day before the start of a new hurricane season.

In Iraq, it's what the U.S. has been waiting for since the fall of Saddam Hussein. A unified government. Parliament today approved the cabinet of incoming Prime Minister Nuri al Maliki but the day was marred by a series of attacks that killed more than 30 people.

The death toll in America's other war continues to rise. A U.S. soldier in one of seven -- is one of seven troops killed in heavy fighting in Afghanistan. Four Afghan soldiers and two French troops also were killed in separate battles. Reports describe the fighting as the worst since the ouster of the Taliban five years ago.

(WEATHER REPORT)

KEILAR: We update the top stories here on CNN LIVE SATURDAY every 15 minutes. Your next update is at 2:45 eastern.

Incumbent Ray Nagin faces Lieutenant Governor Mitch Landrieu in a runoff. Some see the race as a referendum on Nagin's performance during and after Katrina. No matter who wins, they'll face one of the biggest repair jobs in history. Some say big business, not big government should fix New Orleans. Rick Sanchez filed this report for "THE SITUATION ROOM."

(BEGIN VIDEOTAPE)

RICK SANCHEZ, CNN CORRESPONDENT (voice-over): On board this bus, could be the people who will help save New Orleans. Back to this bus in a moment. But first, take a look at New Orleans now. Take a good look and ask yourself where your 87 billion tax dollars have gone. Congressional audits have found $900 million spent on mobile homes never used. $249 million spent on cruise ship cabins that cost more than $5,000 a month, $632 million spent on hotel rooms when less expensive apartments were available.

(on camera): Why did that happen?

MAYOR RAY NAGIN, NEW ORLEANS: I think it's just government. I mean, government is not the most efficient way of doing things.

SANCHEZ: So what is a more efficient way of doing things? The president and the governor and the mayor all are pushing a new idea, which is really an old idea, to let the nation's businesses fix the nation's problem.

(voice-over): Now, back to the bus. Who's on board? Executives, that's who, representing some of the most powerful companies in the world, Citigroup, Caterpillar, Marriott, Goldman Sachs, Shell Oil, Home Depot, Dow Chemical, Disney, Wal-Mart, 32 in all. Here on a trade mission. Trade missions are usually trips abroad to emerging markets looking for U.S. investments.

CARLOS GUTIERREZ, COMMERCE SECRETARY: This is the first time we have ever done a trade mission inside of the United States.

SANCHEZ: Commerce secretary Carlos Gutierrez heads the delegation that includes stops at the state capitol and a bus tour of New Orleans. He says it's up to big business, not big government.

GUTIERREZ: We don't have a command and control soviet-style centrally planned economy. We have an economy that works on the basis of entrepreneurship, investment, job creation, ideas, energy. That's what this is all about.

SANCHEZ: But here is what Gutierrez's idea and New Orleans are up against. Schools and hospitals shut down, levees still being repaired. Investors are hesitant to jump in. But the CEO of Shan Industries tells CNN she's ready.

SHERI ORLOWITZ, SHAN INDUSTRIES: It's perfect. It's absolutely perfect.

SANCHEZ: She'll propose a plant for The Gulf to produce $40 million worth of military shipping equipment annually. Home Depot announced it would invest $57 million.

UNIDENTIFIED MALE: That breaks out into new stores, re-opening of existing stores and philanthropic efforts.

SANCHEZ: These first commitments will open doors, say city officials, for smaller business owners who have been waiting for the right signal to get back into business themselves. Rick Sanchez, CNN, New Orleans.

(END VIDEOTAPE)

KEILAR: CNN covers the New Orleans vote all day today and we'll have results of the mayoral race tonight.

The rape case against three Duke University lacrosse players might not come to trial until next year. In the meantime a lot of information is being presented in the court of public opinion. Jason Carroll filed this for "PAULA ZAHN NOW."

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): Accused Duke lacrosse player Reade Seligmann arrived at Durham County courthouse for a pretrial hearing with his attorney at his side. A small group of protesters shouted at Seligmann as he walked by.

UNIDENTIFIED MALE: Justice will be done, rapist

CARROLL: Some of those same protesters found their way into the courtroom. Superior Court Judge Ronald Stevens had a stern warning.

UNIDENTIFIED MALE: If anybody thought this was going to be a public forum in which somebody could stand and speak, that is not going to be allowed. Anybody who decides to do that, will be held in contempt of this court and I will put you in jail.

CARROLL: Seligmann's attorney, Kirk Osborn, has already made it clear that he will attack the credibility of the young woman who alleges she was raped by Seligmann and two of his Duke teammates. Osborn pressed the prosecution to turn over the accuser's cell phone to find out which calls she made the night of the alleged attack.

KIRK OSBORN, DEFENSE ATTORNEY: It's important to get experts' access to that phone immediately and hopefully the phone has not been tampered with. If we don't get an expert to it, who knows what he's doing, the evidence in that phone can be lost.

CARROLL: Direct attorney Michael Nifong questioned why a defense expert needed access to the phone before his own expert could examine it.

UNIDENTIFIED MALE: I don't believe that it has. I would wonder what evidence he thinks that he's entitled to would be on that telephone.

CARROLL: Nifong did turn over a box filled with evidence and the defense attorneys promised to examine it closely.

JOE CHESHIRE, DEFENSE ATTORNEY: We have 1200 some odd pages and papers and two videotapes and a CD of pictures. I haven't looked at it.

CARROLL: Defense attorneys for the three accused lacrosse players are looking for what they say are more holes in the prosecution's case. The first round of DNA test results showed no match between the accuser and the players. Defense attorneys say a second round of DNA tests was inconclusive.

They also say their time line shows two accused players, Seligmann and Colin Finnerty, were elsewhere when the alleged crime took place. Though the district attorney has revealed very few details about his case, we expect the alleged victim's testimony and the results of a hospital rape examination will be key. The DA is expected to turn more evidence over to the defense in coming weeks.

(on camera): The defense also asked to have Reade Seligmann's bond reduced from $400,000 to $40,000. The judge said he would consider it at Seligmann's next court hearing, scheduled for just about one month from now. Jason Carroll, CNN, Durham, North Carolina.

(END VIDEOTAPE)

KEILAR: One of the three indicted lacrosse players has spoken publicly about the case, not always a good idea for a defendant. Let's see what the legal experts say about the case. Avery Friedman is a civil rights attorney and law professor and Richard Herman is a New York criminal defense attorney. Richard, you first. Good idea or bad idea for the third suspect to come out and speak publicly?

RICHARD HERMAN, CRIMINAL DEFENSE ATTORNEY: Bad idea for him to speak like that and bad idea for his lawyer to allow him to speak like that. This shows you the frustration these guys feel. Their pictures and faces are in the news every single day. They've been suspended from Duke University, even though you're innocent until proven guilty, it's a private institution. They've been suspended.

The whole lacrosse program is shut down. We don't see the accuser's face, we don't see her name, nothing. These boys are in a lot of trouble right now. They're under a tremendous amount of pressure. They're fighting for their lives and extremely frustrated. To answer it, bad move to speak out like that in the press.

KEILAR: Avery, I wonder what you think. I watched David Evans' speech in front of the microphone. He was impassioned, indignant about his innocence, very convincing. Good idea, bad idea?

AVERY FRIEDMAN, CIVIL RIGHTS ATTORNEY: Actually, generally it's a bad idea but I disagree. I think this was a great idea because part of what's going on here, Brianna, is the defense is dealing with the court of public opinion. And it's interesting, the judge in this case, Ron Stevens, has not put limitation on comment.

Now that he's made clear this case may not got to trial until next year, what's interesting is the defense team continues to be public about everything and sooner or later, we're going to be looking for a venue issue, and there may very well be motions coming from the defense and the prosecution because of the huge visibility about the case.

KEILAR: But couldn't this come back to kind of bite him, what he said in public?

FRIEDMAN: Well, anything he says can be used during cross- examination. But you know what? I actually agree with your observation. I thought that the statements were -- that David Evans made were so profoundly powerful and compelling, he really said nothing to incriminate himself. If anything, it was a very aggressive step in the defense. And frankly, I think it was a real smart thing to do.

KEILAR: So the defense here, they want the accuser's cell phone records. Why are they asking for that?

HERMAN: Well, they want those records because, look, they want to see all the calls she made that night and the day after. They'll want to get the names of people who she may have spoken to. It sets up their -- it bolsters and corroborates the timeline.

And basically, anything and everything this woman did leading up to and afterwards comes into play here in this trial. You know, this district attorney, he beckoned the call, he beckoned, he baited these people, the defendants to get up in the press -- 72 interviews before he did the indictment here while he was running for office. And all of a sudden, now his mouth is shut. This is an outrageous indictment at Duke. It's an outrageous prosecution at this point.

KEILAR: All right. Richard and Avery, I'm going to ask you to hang there with us for just a second. We have more "Legal Briefs" straight ahead.

A lot of people blaming these two men for the loss of their jobs or their life savings. The jury has started deliberating in the Enron case, and our experts -- we'll be right back in a moment with their predictions.

(COMMERCIAL BREAK)

KEILAR: Coming up on 45 minutes past the hour, here's what's happening now in the news.

Incumbent Ray Nagin is facing challenger Mitch Landrieu in today's New Orleans mayoral runoff. Katrina evacuees from as far away as Atlanta and Houston are being bussed in to cast ballots. If he's elected, Landrieu would be the first white New Orleans mayor since his father, Moon Landrieu, left office in 1978.

An explosion at a southeast Kentucky coal mine today has killed five workers. Another miner managed to escape. There's no word yet on the cause of the blast.

And an Israeli air strike in Gaza City today killed an Islamic jihad leader. Palestinian sources say three other people also died: a woman, her 4-year-old son, and the boy's grandmother.

Earlier in Gaza City, there was an explosion at Palestinian intelligence headquarters. The intelligence chief suffered serious injuries in the blast, which some say was an assassination attempt by a rival Palestinian faction.

In Southern California, reports of a foiled plan to attack a school. The "L.A. Times" says two teenagers are accused of stockpiling ammunition and bomb-making materials for a Columbine-style attack on their high school north of L.A., but they were arrested before they could carry out the alleged plot.

Five months after Iraqi elections, a cabinet is finally in place and it was sworn in today. But Iraqi politicians still haven't agreed on three important positions: defense minister, interior minister and national security minister.

We update those top stories every 15 minutes on CNN LIVE SATURDAY, and your next update is coming up at the top of the hour, 1:00 Eastern.

A lot of people lost their jobs or their savings when Enron went belly up, and they're among those waiting to see what the jury decides in the case against Enron's two top executives. Deliberations began Wednesday and jurors have the weekend off.

Let's bring our legal expert Avery Friedman back -- or, pardon me, Richard Herman. I think we lost Avery for just a second. But, Richard, what is the outlook right now?

HERMAN: Well, Brianna, you know, whenever a jury goes out, no one knows the answers. It's like reading tea leaves at this point. I mean, the prosecution put their case on. They could not corroborate, other than through the words of convicted felons, and that's how prosecutions are done in the country these days.

Convicted felons are propped up by the government to state an assertion. And they put two or three or four other convicted felons on to corroborate that.

KEILAR: But do you think ...

HERMAN: Juries aren't going for it, Brianna. They're not going for it, and these gentlemen have a real chance here of acquittal.

KEILAR: But do you think the longer this kind of goes on, do you think they have more luck? Do you think Jeffrey Skilling and Ken Lay -- they could come out of this unscathed?

HERMAN: Well, they're scathed because of the publicity and the ridicule that's been thrown against them, but the longer the jury takes in this case, in my opinion, the better for them. But, again, it's like reading tea leaves and I do think they have a fighting chance right now. I really do.

KEILAR: That's what we have you here to do, right? To read our tea leaves.

But moving on now, there's a second criminal investigation that was launched Thursday against Ken Lay. Can you tell us what this means?

HERMAN: That's basically a nonjury trial that's taking place right now. No jury, four counts of bank fraud. Apparently he obtained $75 million in credit for which he was not allowed to buy stock on margin with. Apparently stock was purchased under his name, through that $75 million on margin.

He says he never signed those loan documents. They were done by a stamp -- you know, like a rubber stamp of his signature. And the bottom line was, he's already repaid that $75 million, so it's really a victimless crime. There's no damages there and, you know, it's just -- it's kind of desperation by the government over there in Texas. That's what it looks like to me.

KEILAR: But a victimless crime. That doesn't necessarily mean that a crime wasn't committed, right?

HERMAN: You're right, and I could see that you've probably have a little law training there and you're absolutely correct on that.

KEILAR: All right, Richard Herman, thank you so much for joining us from New York. We look forward to talking to you next week.

HERMAN: Thank you, Brianna. Have a good weekend.

KEILAR: You too.

And next, find out how one girl is using her own experience with pain to reach out to others in need.

(COMMERCIAL BREAK)

KEILAR: Floodwaters rose and so did the neighborly spirit of New Englander. Reporter Phil Lipof of WHDH takes a look at their generosity during a crisis.

(BEGIN VIDEOTAPE)

PHIL LIPOF, WHDH REPORTER (voice-over): Ten-year-old McKenna Cronin certainly knows of value of a good teddy bear.

MCKENNA CRONIN, HELPING OTHER KIDS: I've had her ever since I was born, and she's my favorite of all.

LIPOF: Micha bear went with McKenna every time she had chemotherapy treatments to control a benign brain tumor. All of these other stuffed animals were given to her by friends, family and strangers when she was diagnosed. Now she wants to give that same gift to kids who lost their stuffed animals in the floods.

CRONIN: They can sleep with something, and hug it while they're sleeping.

UNIDENTIFIED FEMALE: It didn't surprise me. She always wants to take care of her people.

LIPOF: McKenna's mother suggested toys for tots, so that's where all of these guys are headed.

(on camera): And McKenna's not the only one trying to help out. When the owners of this motel on Route 110 across from the Merrimack heard that their neighbors had been flooded out by the river, they simply opened up their doors for free.

DENNIS HOULIHAN, NEIGHBOR: And when we when to pay, I couldn't believe it.

LIPOF (voice-over): Dennis Houlihan lives across the street from the motel, his house attacked by the mighty Merrimack. He and his wife stayed three nights. Other did, too. The owner won't take any of their money. So...

HOULIHAN: We're going to come up with something. I don't know what yet, but we will do something for them.

LIPOF: Neighbors helping neighbors, pretty basic concept, even a 10-year-old can understand.

CRONIN: I think that I'm doing something that everybody should really do.

LIPOF (on camera): Why?

CRONIN: Because it will be very helpful, and it will make the kids from the floods really happy.

(END VIDEOTAPE)

KEILAR: That was Phil Lipoff reporting from WHDH.

FEMA teams are getting a look at the damage across New England this weekend. Right now the floods are being blamed for at least one death.

(WEATHER REPORT)

KEILAR: Just ahead on "CNN PRESENTS: Chasing Angelina, Paparazzi and Celebrity Obsession." At 4:00 p.m. eastern, CNN's Dr. Sanjay Gupta explores his dreams. A check of the day's headlines is next and then "CNN PRESENTS."

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