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Partisan Fireworks on Capitol Hill; Bombshell in Martha Stewart Case

Aired May 21, 2004 - 15:00   ET

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

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


DREW GRIFFIN, CNN ANCHOR: There is breaking news on the campaign front. A campaign strategy by John Kerry could make for a very strange Democratic Convention this summer, Kerry's campaign apparently considering delaying his nomination by the Democratic Party to get around federal campaign spending limits.
A campaign spokeswoman for Kerry says the strategy could help close the gap between Kerry, who's raised about $117 million, and President Bush, who has $206 million to play with. This is coming out of an AP story, but also confirmed by the Kerry camp. One spokesman says, "We are looking at this and many other options very seriously because we will not fight with one hand behind our back." That's breaking news from the Kerry campaign. We'll have much more later on.

MILES O'BRIEN, CNN ANCHOR: Checking the headlines at this hour, a bombshell in the Martha Stewart case. Federal prosecutors say a Secret Service ink expert who took the stand in her trial has been charged with two counts of perjury.

That expert testified that notations suggesting Stewart and her broker had a prearranged sale price was written with different ink could mean a new trial for Ms. Stewart.

Suspects questioned in the killing of an American, Nicholas Berg. A coalition military spokesman says two are in custody, two others questioned and released. A videotape of the killing posted on an Islamist Web site. The CIA says that wanted terrorist Abu Musab al- Zarqawi probably wielded the knife.

Talking to the American people about Iraq. The White House says President Bush will deliver a prime-time speech Monday night. Aides acknowledge support for the war has dropped, along with the president's approval rating. The prime-time address will be the first of several by Mr. Bush on the U.S. mission in Iraq.

Manning the picket lines, 100,000 workers at SBC Communications on a four-day strike protesting the latest contract offer from the local telephone company. At issue, health care, job security. SBC says it will drop its latest offer, start from scratch if the union doesn't accept the proposal by late Monday.

And now moving pictures from Abu Ghraib. Other adjectives come to mind as well from the first clip of grainy, jumpy video to be made public since the abuse scandal broke. Now, this clip and a few more photographs appeared today in the print and in the online editions of "The Washington Post." They're accompanied by sworn, highly detailed horror stories from alleged victims to U.S. investigators. Abu Ghraib is just a memory today for hundreds more former detainees.

CNN's Harris Whitbeck has that and the latest in the Nicholas Berg investigation from his post in Baghdad.

(BEGIN VIDEOTAPE)

HARRIS WHITBECK, CNN CORRESPONDENT: More prisoners were released from Abu Ghraib prison near Baghdad today. Four hundred and seventy- two prisoners were processed throughout the day. Many of them at one point had been deemed to be security threats, but were later slated for release. Throughout the day, hundreds of people gathered outside of Abu Ghraib prison for hours to see if their relatives would be among the released.

The detainee population at Abu Ghraib now stands at roughly 3,000. At some point, there were more than 6,000 prisoners inside of Abu Ghraib prison.

Meanwhile, the Iraqi Governing Council met in an emergency session to discuss the implications of yesterday's raid on the headquarters of council member Ahmed Chalabi. The raid was conducted yesterday by Iraqi national police who were supported by U.S. troops. An Iraqi judge said some of Chalabi's associates were targeted in that raid for their alleged involvement in government fraud, kidnapping, and other charges. Chalabi says the raid was ordered by the U.S. as retaliation for his showing too much independence from U.S. policy in Iraq.

Meanwhile, U.S. officials in Baghdad have said that four people have been detained for questioning in connection with the beheading of U.S. civilian Nicholas Berg. They said that two of those who had been detained have been released and that the two others could be released after further questioning.

Harris Whitbeck, CNN, Baghdad.

(END VIDEOTAPE)

GRIFFIN: Partisan fireworks erupting today on Capitol Hill. Top Pentagon generals appeared at another hearing to try to explain the Iraq situation.

We get that part of the story from Washington and CNN's Sean Callebs -- Sean.

SEAN CALLEBS, CNN CORRESPONDENT: Drew, exactly.

More top military brass on Capitol Hill today discussing more photos of abuse from Abu Ghraib and the handover of power to Iraqi leaders as well as the raid. Harris just talked about it, Ahmad Chalabi's home and offices in Iraq. Joint Chiefs Chairman General Richard Myers telling the House Armed Services Committee that no stone can be left unturned in the investigation, saying Iraqis need and deserve answers.

At times, the hearing broke down along party lines. Committee Chairman Duncan Hunter started the hearing by observing that the media is -- quoting here -- "absorbed" with the prison scandal and that he was intent on refocusing attention on the war itself. However, when discussion turned to the recent raid on Chalabi's home, Tennessee Democrat Jim Cooper asked why the U.S. supported and funded Chalabi's Iraqi National Congress for months and then he suddenly fell out of favor.

(BEGIN VIDEO CLIP)

REP. JIM COOPER (D), TENNESSEE: If this man was on the U.S. payroll until last week, what has changed in the last few days to make him the subject of a raid of this type?

GEN. RICHARD MYERS, JOINT CHIEFS CHAIRMAN: That, I can't tell you. What I can tell you is that the organization that he is associated with has provided intelligence to our intelligence unit there in Baghdad that has saved soldiers' lives.

(END VIDEO CLIP)

GRIFFIN: General Myers also said Iraq's interior minister ordered the raid on Chalabi's home and office, saying U.S. forces played no direct role. Congressman Cooper said that it appears Chalabi deliberately misled the administration on several issues and the U.S. government fell hook, line and sinker -- Drew.

GRIFFIN: Sean Callebs in Washington, thank you -- Miles.

O'BRIEN: Just when we all thought the writing was on the wall for Martha Stewart comes a stink over ink that could erase a felony conviction or two and spell brand new trials for Stewart and her erstwhile stockbroker.

CNN's Chris Huntington fills in the blanks for us from New York.

Chris, bombshell, isn't it?

CHRIS HUNTINGTON, CNN CORRESPONDENT: Miles, this is indeed a bombshell. And this is the kind of development that Robert Morvillo and Martha Stewart were hoping for. Morvillo is Martha Stewart's attorney.

The development today, the U.S. attorney's office here in New York, the very same prosecutors that charged Martha Stewart, have now charged the government's main ink expert, a gentleman named Larry Stewart, no relation to Martha Stewart. He runs the Secret Service lab, forensic laboratory. And he testified during the trial that he took part in detailed examination of Martha Stewart's broker's worksheet.

You may recall that there was a lot of Sturm und Drang over a notation, "At 60." Stewart, being charged with perjury, saying that he personally took part in detailed examinations of Peter Bacanovic's worksheet. Well, now the U.S. attorney says that's not the case, that Larry Stewart lied on the stand, that he also lied about knowledge of a book proposal that some other Secret Service agents were working on. So what does this all mean for Martha Stewart? Her sentencing is due to be on June 17. At that time, her attorneys have made it clear that they will appeal. And now they have an awful lot more ammunition in the form of this development. Of course, Larry Stewart, you know, is presumed innocent until proven guilty. So this charge in and of itself cannot unhinge Martha Stewart's convictions right now, but it certainly gives more traction for an appeal.

There's one very important point to point out, Miles. And that is that the one count that the jury ruled on acquittal happened to be the count against Peter Bacanovic for creating a false document, for altering his worksheet. In other words, the very count that is at question here, Larry Stewart's perjury, the jury actually could not reach an agreement on a guilty verdict -- Miles.

O'BRIEN: That's an interesting point. First of all, we have a statement that just came out from Robert Morvillo. You might have already seen this, Chris, but I just wanted to share this with you.

HUNTINGTON: No, I've been bugging him on the phone for the last half-an-hour.

O'BRIEN: All right, well, good. Then we'll do this together here.

He says: "There is now good reason to believe that both a government witness and a juror perjured themselves, which further undermines the integrity of the prosecution of Martha Stewart and Peter Bacanovic."

Let's remind our viewers about the juror situation.

HUNTINGTON: Yes.

O'BRIEN: That was very controversial during the trial.

HUNTINGTON: Well, a gentleman named Chappell Hartridge, who made a bunch of statements after the trial that has led Morvillo and others to raise the argument that he was prejudiced all along and sort of, if you will, on a crusade against Martha Stewart. So that had already been something that Morvillo was planning to raise as grounds for an appeal.

This certainly is a huge, huge boost to his efforts to grant an appeal, other have Judge Cedarbaum, Miriam Cedarbaum, grant the appeal. But, again, all of this has to take place after the formal sentencing. There's some speculation that the sentencing may be delayed. I've spoken to several attorneys who follow the case closely. Right now, the consensus seems to be that the schedule has to play itself out.

So we go to the sentencing on June 17 and then of course, we have to see just how far the U.S. attorney can get on this case against Larry Stewart, because, if he's found innocent, that makes all of this sort of moot. O'BRIEN: Very interesting series of things kind of all intertwined here. Just one thought here. Have they been specific at all as to the nature of the alleged perjury?

HUNTINGTON: Very specific.

In what's called a criminal complaint -- it's not an indictment, but it's essentially a charge coming from the U.S. attorney -- they allege that Larry Stewart made eight false statements over the course of two different days of testimony. But specifically the most serious charge is that he numerous times in testimony before the jury on the record in the court trial there said that he was integrally involved with the examination of Peter Bacanovic's worksheet, when, in fact, he apparently, according to the U.S. attorney now, was not.

Remember that this guy was a star witness for the U.S. attorney's office, so a big black eye, if you will, for the prosecutors here in Manhattan.

O'BRIEN: Very interesting. Chris Huntington watching it for us, as he has all along, thank you very much.

Medicine meant to protect U.S. troops may be making them sick instead. What CNN and the United Press International investigative reporters have found out about a drug called Lariam.

Later, using your brain, why men and women don't always see to eye on eye on gray matter.

(COMMERCIAL BREAK)

(WEATHER UPDATE)

GRIFFIN: U.S. forces in Iraq are facing very different threats than many of them expected. And the military may be slow to face another possible threat to the troops. It's one that begins and ends right here in the United States.

Our investigative unit has been working the story in collaboration with UPI investigative reporter Mark Benjamin.

Here's Jonathan Mann.

(BEGIN VIDEOTAPE)

JONATHAN MANN, CNN CORRESPONDENT (voice-over): Bill Manofsky and his wife, Tori, are looking for a new home.

TORI MANOFSKY, WIFE OF CMDR. BILL MANOFSKY: Appliances, the cabinetry.

MANN: They aren't moving because of a new job, but because Bill can't do his old one. Manofsky, a commander in the U.S. Naval Reserves, is relocating near San Diego for medical care.

CMDR. BILL MANOFSKY, U.S. NAVAL RESERVE: My ears ring. They're ringing now, mostly in my right ear.

MANN: Manofsky'S problems began when he was sent to Kuwait in the run-up to the war in Iraq. Like thousands of others, he was given a drug called Lariam to prevent malaria.

B. MANOFSKY: I lost it. I literally went nuts. I was talking to myself.

MANN: When he returned to the U.S., his wife encountered a very different man.

T. MANOFSKY: The panic attacks began so acute, we had to rush him to the emergency hospital five different times.

MANN: After civilian doctors determined his symptoms were related to his use of Lariam, Manofsky finally found a military doctor who also recognized the link.

DR. MICHAEL HOFFER, U.S. NAVY: It's usually more in this area here. And he's way down here.

MANN: Navy Dr. Michael Hoffer is treating him for a range of balance problems.

HOFFER: And because Mr. Manofsky reported the Lariam exposure and did not report any other toxic exposure, we, again, with all medical likelihood, related it to the Lariam.

MANN: Mark Benjamin, an investigative reporter for UPI, has pored through hundreds of pages of reports on Lariam and the people who have taken it.

MARK BENJAMIN, UPI: Soldiers in the field are handed Lariam routinely with no warning, no written warning, no verbal warning. And when they suffer the side effects, that's one of the reasons why they don't know.

MANN: The company that makes Lariam, Roche Pharmaceuticals, says it has been used safely by more than 20 million people. But Roche's literature warns users that in rare cases, Lariam can cause hallucinations, suicidal thoughts, depression, and paranoia.

Roche would not provide a spokesperson on camera, but replied to CNN's questions in an e-mail: "Roche has made Lariam medication guides available to the four pharmacy consultants for the services, who in turn sent the information to military pharmacies." Bill Manofsky says that information never made it to him.

(on camera): Researchers have been raising their concerns about Lariam for years in medical journals here in the United States and overseas. But it wasn't until this year that the assistant secretary of defense for health affairs finally ordered the Pentagon's own investigation.

WILLIAM WINKENWERDER, ASST. SECRETARY OF DEFENSE FOR HEALTH AFFAIRS: Any service member that is taking a medication ought to know why he or she is taking that medication. And they ought to have some sense of whether there are side effects or concerns with respect to taking that medication.

MANN (on camera): Were you warned about the side effects?

B. MANOFSKY: No I was not.

MANN (voice-over): Manofsky intends to sue Lariam's makers. Meanwhile, his 17-year military career has been cut short while he tries to recover.

Jonathan Mann, CNN, San Diego.

(END VIDEOTAPE)

GRIFFIN: To learn more about Lariam, be sure to watch the second half of Jonathan Mann's report. It airs tonight at 10:00 Eastern on "NEWSNIGHT WITH AARON BROWN."

(FINANCIAL UPDATE)

O'BRIEN: Mary, quick question for you. When you're lost in the car, do you stop and ask for directions?

MARY SNOW, CNN CORRESPONDENT: You know, I always do.

O'BRIEN: You do?

SNOW: Men I don't think really ask for directions all that much.

O'BRIEN: No, we don't. We don't.

SNOW: Am I right?

O'BRIEN: This proves the theory once again. I think 100 percent of the women would answer that way, in my scientific opinion.

Mary Snow, thank you very much. That's just a little hint of the difference between men and women. It turns out it is inside your brain. Holly Firfer will be along in just a few moments to explain areas of gray matters.

(COMMERCIAL BREAK)

GRIFFIN: We already know that men are from Mars, women from Venus thing. But what if it's because males and female brains are different? I didn't say larger or smaller, just different.

CNN medical correspondent Holly Firfer has the scientific proof.

(BEGIN VIDEOTAPE)

HOLLY FIRFER, CNN CORRESPONDENT (voice-over): For thousands of years, men and women have baffled each other by their differences, differences that are the result of the hard-wiring of our brains. DR. RUBEN GUR, UNIVERSITY OF PENNSYLVANIA: We are still the same animals. We haven't changed physically since we were roaming the savannas. We haven't really changed in our brain.

FIRFER: Dr. Ruben Gur has been studying the brain for more than 25 years. He says, while men's brains can be 10 to 15 percent larger in size, women have more fibers that connect the two sides of the brain together. That would mean:

GUR: There is more tissue available for transferring information between the two sides of the brain. That's why we think that women have better inter-hemispheric communication.

FIRFER: Anthropologist Helen Fisher has written many books on how men and women use these differences to survive.

HELEN FISHER, RUTGERS UNIVERSITY: I think that women's ability at communication evolved millions of years ago on the grasslands of Africa as women held that baby in front of their face, cajoling it, reprimanding it, educating it with words.

FIRFER: As caregivers, researchers say women's brains were also wired to give them stronger senses, to smell if food is bad, to taste if it may be poisonous, and to hear when their baby is crying.

What about men who refuse to ask for directions? Researchers say men have more white matter, which moves information more easily to the back of the brain, where the visual cortex lies, a sort of internal compass, if you will.

FISHER: For millions of years, they set out just about every morning to go out, to surround and track and follow and kill.

FIRFER: And if they didn't make it home, their family would starve. So why do we have these biological differences? Well, many say they allow us to work together to survive.

Holly Firfer, CNN, Atlanta.

(END VIDEOTAPE)

GRIFFIN: And you can watch more of the series "Unlocking the Secrets of the Brain" tonight at 7:00 Eastern on "ANDERSON COOPER 360."

O'BRIEN: That wraps us this Friday edition of LIVE FROM.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired May 21, 2004 - 15:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DREW GRIFFIN, CNN ANCHOR: There is breaking news on the campaign front. A campaign strategy by John Kerry could make for a very strange Democratic Convention this summer, Kerry's campaign apparently considering delaying his nomination by the Democratic Party to get around federal campaign spending limits.
A campaign spokeswoman for Kerry says the strategy could help close the gap between Kerry, who's raised about $117 million, and President Bush, who has $206 million to play with. This is coming out of an AP story, but also confirmed by the Kerry camp. One spokesman says, "We are looking at this and many other options very seriously because we will not fight with one hand behind our back." That's breaking news from the Kerry campaign. We'll have much more later on.

MILES O'BRIEN, CNN ANCHOR: Checking the headlines at this hour, a bombshell in the Martha Stewart case. Federal prosecutors say a Secret Service ink expert who took the stand in her trial has been charged with two counts of perjury.

That expert testified that notations suggesting Stewart and her broker had a prearranged sale price was written with different ink could mean a new trial for Ms. Stewart.

Suspects questioned in the killing of an American, Nicholas Berg. A coalition military spokesman says two are in custody, two others questioned and released. A videotape of the killing posted on an Islamist Web site. The CIA says that wanted terrorist Abu Musab al- Zarqawi probably wielded the knife.

Talking to the American people about Iraq. The White House says President Bush will deliver a prime-time speech Monday night. Aides acknowledge support for the war has dropped, along with the president's approval rating. The prime-time address will be the first of several by Mr. Bush on the U.S. mission in Iraq.

Manning the picket lines, 100,000 workers at SBC Communications on a four-day strike protesting the latest contract offer from the local telephone company. At issue, health care, job security. SBC says it will drop its latest offer, start from scratch if the union doesn't accept the proposal by late Monday.

And now moving pictures from Abu Ghraib. Other adjectives come to mind as well from the first clip of grainy, jumpy video to be made public since the abuse scandal broke. Now, this clip and a few more photographs appeared today in the print and in the online editions of "The Washington Post." They're accompanied by sworn, highly detailed horror stories from alleged victims to U.S. investigators. Abu Ghraib is just a memory today for hundreds more former detainees.

CNN's Harris Whitbeck has that and the latest in the Nicholas Berg investigation from his post in Baghdad.

(BEGIN VIDEOTAPE)

HARRIS WHITBECK, CNN CORRESPONDENT: More prisoners were released from Abu Ghraib prison near Baghdad today. Four hundred and seventy- two prisoners were processed throughout the day. Many of them at one point had been deemed to be security threats, but were later slated for release. Throughout the day, hundreds of people gathered outside of Abu Ghraib prison for hours to see if their relatives would be among the released.

The detainee population at Abu Ghraib now stands at roughly 3,000. At some point, there were more than 6,000 prisoners inside of Abu Ghraib prison.

Meanwhile, the Iraqi Governing Council met in an emergency session to discuss the implications of yesterday's raid on the headquarters of council member Ahmed Chalabi. The raid was conducted yesterday by Iraqi national police who were supported by U.S. troops. An Iraqi judge said some of Chalabi's associates were targeted in that raid for their alleged involvement in government fraud, kidnapping, and other charges. Chalabi says the raid was ordered by the U.S. as retaliation for his showing too much independence from U.S. policy in Iraq.

Meanwhile, U.S. officials in Baghdad have said that four people have been detained for questioning in connection with the beheading of U.S. civilian Nicholas Berg. They said that two of those who had been detained have been released and that the two others could be released after further questioning.

Harris Whitbeck, CNN, Baghdad.

(END VIDEOTAPE)

GRIFFIN: Partisan fireworks erupting today on Capitol Hill. Top Pentagon generals appeared at another hearing to try to explain the Iraq situation.

We get that part of the story from Washington and CNN's Sean Callebs -- Sean.

SEAN CALLEBS, CNN CORRESPONDENT: Drew, exactly.

More top military brass on Capitol Hill today discussing more photos of abuse from Abu Ghraib and the handover of power to Iraqi leaders as well as the raid. Harris just talked about it, Ahmad Chalabi's home and offices in Iraq. Joint Chiefs Chairman General Richard Myers telling the House Armed Services Committee that no stone can be left unturned in the investigation, saying Iraqis need and deserve answers.

At times, the hearing broke down along party lines. Committee Chairman Duncan Hunter started the hearing by observing that the media is -- quoting here -- "absorbed" with the prison scandal and that he was intent on refocusing attention on the war itself. However, when discussion turned to the recent raid on Chalabi's home, Tennessee Democrat Jim Cooper asked why the U.S. supported and funded Chalabi's Iraqi National Congress for months and then he suddenly fell out of favor.

(BEGIN VIDEO CLIP)

REP. JIM COOPER (D), TENNESSEE: If this man was on the U.S. payroll until last week, what has changed in the last few days to make him the subject of a raid of this type?

GEN. RICHARD MYERS, JOINT CHIEFS CHAIRMAN: That, I can't tell you. What I can tell you is that the organization that he is associated with has provided intelligence to our intelligence unit there in Baghdad that has saved soldiers' lives.

(END VIDEO CLIP)

GRIFFIN: General Myers also said Iraq's interior minister ordered the raid on Chalabi's home and office, saying U.S. forces played no direct role. Congressman Cooper said that it appears Chalabi deliberately misled the administration on several issues and the U.S. government fell hook, line and sinker -- Drew.

GRIFFIN: Sean Callebs in Washington, thank you -- Miles.

O'BRIEN: Just when we all thought the writing was on the wall for Martha Stewart comes a stink over ink that could erase a felony conviction or two and spell brand new trials for Stewart and her erstwhile stockbroker.

CNN's Chris Huntington fills in the blanks for us from New York.

Chris, bombshell, isn't it?

CHRIS HUNTINGTON, CNN CORRESPONDENT: Miles, this is indeed a bombshell. And this is the kind of development that Robert Morvillo and Martha Stewart were hoping for. Morvillo is Martha Stewart's attorney.

The development today, the U.S. attorney's office here in New York, the very same prosecutors that charged Martha Stewart, have now charged the government's main ink expert, a gentleman named Larry Stewart, no relation to Martha Stewart. He runs the Secret Service lab, forensic laboratory. And he testified during the trial that he took part in detailed examination of Martha Stewart's broker's worksheet.

You may recall that there was a lot of Sturm und Drang over a notation, "At 60." Stewart, being charged with perjury, saying that he personally took part in detailed examinations of Peter Bacanovic's worksheet. Well, now the U.S. attorney says that's not the case, that Larry Stewart lied on the stand, that he also lied about knowledge of a book proposal that some other Secret Service agents were working on. So what does this all mean for Martha Stewart? Her sentencing is due to be on June 17. At that time, her attorneys have made it clear that they will appeal. And now they have an awful lot more ammunition in the form of this development. Of course, Larry Stewart, you know, is presumed innocent until proven guilty. So this charge in and of itself cannot unhinge Martha Stewart's convictions right now, but it certainly gives more traction for an appeal.

There's one very important point to point out, Miles. And that is that the one count that the jury ruled on acquittal happened to be the count against Peter Bacanovic for creating a false document, for altering his worksheet. In other words, the very count that is at question here, Larry Stewart's perjury, the jury actually could not reach an agreement on a guilty verdict -- Miles.

O'BRIEN: That's an interesting point. First of all, we have a statement that just came out from Robert Morvillo. You might have already seen this, Chris, but I just wanted to share this with you.

HUNTINGTON: No, I've been bugging him on the phone for the last half-an-hour.

O'BRIEN: All right, well, good. Then we'll do this together here.

He says: "There is now good reason to believe that both a government witness and a juror perjured themselves, which further undermines the integrity of the prosecution of Martha Stewart and Peter Bacanovic."

Let's remind our viewers about the juror situation.

HUNTINGTON: Yes.

O'BRIEN: That was very controversial during the trial.

HUNTINGTON: Well, a gentleman named Chappell Hartridge, who made a bunch of statements after the trial that has led Morvillo and others to raise the argument that he was prejudiced all along and sort of, if you will, on a crusade against Martha Stewart. So that had already been something that Morvillo was planning to raise as grounds for an appeal.

This certainly is a huge, huge boost to his efforts to grant an appeal, other have Judge Cedarbaum, Miriam Cedarbaum, grant the appeal. But, again, all of this has to take place after the formal sentencing. There's some speculation that the sentencing may be delayed. I've spoken to several attorneys who follow the case closely. Right now, the consensus seems to be that the schedule has to play itself out.

So we go to the sentencing on June 17 and then of course, we have to see just how far the U.S. attorney can get on this case against Larry Stewart, because, if he's found innocent, that makes all of this sort of moot. O'BRIEN: Very interesting series of things kind of all intertwined here. Just one thought here. Have they been specific at all as to the nature of the alleged perjury?

HUNTINGTON: Very specific.

In what's called a criminal complaint -- it's not an indictment, but it's essentially a charge coming from the U.S. attorney -- they allege that Larry Stewart made eight false statements over the course of two different days of testimony. But specifically the most serious charge is that he numerous times in testimony before the jury on the record in the court trial there said that he was integrally involved with the examination of Peter Bacanovic's worksheet, when, in fact, he apparently, according to the U.S. attorney now, was not.

Remember that this guy was a star witness for the U.S. attorney's office, so a big black eye, if you will, for the prosecutors here in Manhattan.

O'BRIEN: Very interesting. Chris Huntington watching it for us, as he has all along, thank you very much.

Medicine meant to protect U.S. troops may be making them sick instead. What CNN and the United Press International investigative reporters have found out about a drug called Lariam.

Later, using your brain, why men and women don't always see to eye on eye on gray matter.

(COMMERCIAL BREAK)

(WEATHER UPDATE)

GRIFFIN: U.S. forces in Iraq are facing very different threats than many of them expected. And the military may be slow to face another possible threat to the troops. It's one that begins and ends right here in the United States.

Our investigative unit has been working the story in collaboration with UPI investigative reporter Mark Benjamin.

Here's Jonathan Mann.

(BEGIN VIDEOTAPE)

JONATHAN MANN, CNN CORRESPONDENT (voice-over): Bill Manofsky and his wife, Tori, are looking for a new home.

TORI MANOFSKY, WIFE OF CMDR. BILL MANOFSKY: Appliances, the cabinetry.

MANN: They aren't moving because of a new job, but because Bill can't do his old one. Manofsky, a commander in the U.S. Naval Reserves, is relocating near San Diego for medical care.

CMDR. BILL MANOFSKY, U.S. NAVAL RESERVE: My ears ring. They're ringing now, mostly in my right ear.

MANN: Manofsky'S problems began when he was sent to Kuwait in the run-up to the war in Iraq. Like thousands of others, he was given a drug called Lariam to prevent malaria.

B. MANOFSKY: I lost it. I literally went nuts. I was talking to myself.

MANN: When he returned to the U.S., his wife encountered a very different man.

T. MANOFSKY: The panic attacks began so acute, we had to rush him to the emergency hospital five different times.

MANN: After civilian doctors determined his symptoms were related to his use of Lariam, Manofsky finally found a military doctor who also recognized the link.

DR. MICHAEL HOFFER, U.S. NAVY: It's usually more in this area here. And he's way down here.

MANN: Navy Dr. Michael Hoffer is treating him for a range of balance problems.

HOFFER: And because Mr. Manofsky reported the Lariam exposure and did not report any other toxic exposure, we, again, with all medical likelihood, related it to the Lariam.

MANN: Mark Benjamin, an investigative reporter for UPI, has pored through hundreds of pages of reports on Lariam and the people who have taken it.

MARK BENJAMIN, UPI: Soldiers in the field are handed Lariam routinely with no warning, no written warning, no verbal warning. And when they suffer the side effects, that's one of the reasons why they don't know.

MANN: The company that makes Lariam, Roche Pharmaceuticals, says it has been used safely by more than 20 million people. But Roche's literature warns users that in rare cases, Lariam can cause hallucinations, suicidal thoughts, depression, and paranoia.

Roche would not provide a spokesperson on camera, but replied to CNN's questions in an e-mail: "Roche has made Lariam medication guides available to the four pharmacy consultants for the services, who in turn sent the information to military pharmacies." Bill Manofsky says that information never made it to him.

(on camera): Researchers have been raising their concerns about Lariam for years in medical journals here in the United States and overseas. But it wasn't until this year that the assistant secretary of defense for health affairs finally ordered the Pentagon's own investigation.

WILLIAM WINKENWERDER, ASST. SECRETARY OF DEFENSE FOR HEALTH AFFAIRS: Any service member that is taking a medication ought to know why he or she is taking that medication. And they ought to have some sense of whether there are side effects or concerns with respect to taking that medication.

MANN (on camera): Were you warned about the side effects?

B. MANOFSKY: No I was not.

MANN (voice-over): Manofsky intends to sue Lariam's makers. Meanwhile, his 17-year military career has been cut short while he tries to recover.

Jonathan Mann, CNN, San Diego.

(END VIDEOTAPE)

GRIFFIN: To learn more about Lariam, be sure to watch the second half of Jonathan Mann's report. It airs tonight at 10:00 Eastern on "NEWSNIGHT WITH AARON BROWN."

(FINANCIAL UPDATE)

O'BRIEN: Mary, quick question for you. When you're lost in the car, do you stop and ask for directions?

MARY SNOW, CNN CORRESPONDENT: You know, I always do.

O'BRIEN: You do?

SNOW: Men I don't think really ask for directions all that much.

O'BRIEN: No, we don't. We don't.

SNOW: Am I right?

O'BRIEN: This proves the theory once again. I think 100 percent of the women would answer that way, in my scientific opinion.

Mary Snow, thank you very much. That's just a little hint of the difference between men and women. It turns out it is inside your brain. Holly Firfer will be along in just a few moments to explain areas of gray matters.

(COMMERCIAL BREAK)

GRIFFIN: We already know that men are from Mars, women from Venus thing. But what if it's because males and female brains are different? I didn't say larger or smaller, just different.

CNN medical correspondent Holly Firfer has the scientific proof.

(BEGIN VIDEOTAPE)

HOLLY FIRFER, CNN CORRESPONDENT (voice-over): For thousands of years, men and women have baffled each other by their differences, differences that are the result of the hard-wiring of our brains. DR. RUBEN GUR, UNIVERSITY OF PENNSYLVANIA: We are still the same animals. We haven't changed physically since we were roaming the savannas. We haven't really changed in our brain.

FIRFER: Dr. Ruben Gur has been studying the brain for more than 25 years. He says, while men's brains can be 10 to 15 percent larger in size, women have more fibers that connect the two sides of the brain together. That would mean:

GUR: There is more tissue available for transferring information between the two sides of the brain. That's why we think that women have better inter-hemispheric communication.

FIRFER: Anthropologist Helen Fisher has written many books on how men and women use these differences to survive.

HELEN FISHER, RUTGERS UNIVERSITY: I think that women's ability at communication evolved millions of years ago on the grasslands of Africa as women held that baby in front of their face, cajoling it, reprimanding it, educating it with words.

FIRFER: As caregivers, researchers say women's brains were also wired to give them stronger senses, to smell if food is bad, to taste if it may be poisonous, and to hear when their baby is crying.

What about men who refuse to ask for directions? Researchers say men have more white matter, which moves information more easily to the back of the brain, where the visual cortex lies, a sort of internal compass, if you will.

FISHER: For millions of years, they set out just about every morning to go out, to surround and track and follow and kill.

FIRFER: And if they didn't make it home, their family would starve. So why do we have these biological differences? Well, many say they allow us to work together to survive.

Holly Firfer, CNN, Atlanta.

(END VIDEOTAPE)

GRIFFIN: And you can watch more of the series "Unlocking the Secrets of the Brain" tonight at 7:00 Eastern on "ANDERSON COOPER 360."

O'BRIEN: That wraps us this Friday edition of LIVE FROM.

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