Return to Transcripts main page
Live From...
Tom Ridge Warns of Terror Attacks; NYPD Commissioner Holds Press Conference
Aired July 08, 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.
MILES O'BRIEN, CNN ANCHOR: In the news now, will New York City ramp up security in the wake of today's Homeland Security briefing? We could find out shortly. New York Police Commissioner Ray Kelly has a news conference within the hour.
Earlier today, Tom Ridge renewed his warning that al Qaeda plans a large-scale attack to disrupt the democratic process. New York, of course, hosting the Republican convention in August.
The cuffs went on, but the gloves came off. Former Enron chief Kenneth Lay pleaded not guilty and vowed to fight today's federal indictment, 11 counts of which. Adding to the drama, the Securities and Exchange Commission filed its own civil charges against Lay today.
In another high-profile case, a judge has denied Martha Stewart's motion for a new trial. Her attorneys claimed a government witness lied on the stand during Stewart's conspiracy and obstruction trial, but the judge ruled the alleged perjury had no bearing on her conviction. Stewart is scheduled to be sentenced next week.
The State Department says Marine Corporal Wassef Hassoun back in U.S. hands at the American Embassy in Beirut, Lebanon, Hassoun reported missing in Iraq last month, and was later shown on a video with apparent kidnappers. Hassoun will be sent to a U.S. medical facility in Germany.
KYRA PHILLIPS, CNN ANCHOR: Already under the constant shadow of a terrorist threat, a nation is reminded that the threat may be real.
(BEGIN VIDEO CLIP)
TOM RIDGE, HOMELAND SECURITY SECRETARY: We are basically laying out before the general public the kind of information that we've received. And it's not us. These are not conjectures or mythical statements we're making. These are pieces of information that we can trace comfortably to sources that we deem to be credible.
(END VIDEO CLIP)
PHILLIPS: Credible perhaps, but we didn't really hear anything new today. Is repeating the message worthwhile or could Americans develop a sort of danger callous?
Joining me now to consider the question, CNN's Mike Brooks.
I guess you call it alert fatigue. MIKE BROOKS, CNN LAW ENFORCEMENT ANALYST: Alert fatigue.
There's always that concern. And the FBI is concerned about that. But I think sometimes Americans need kind of a prod. Six months to a year down the road, nothing happens, people get lulled back into a false sense of security. Oh, nothing is going to happen here in my neighborhood.
But, again, this was more of a vigilance alert. And I called it a public service announcement by the Department of Homeland Security, tell them what they are going to be doing for the people around the conventions in Boston and in New York.
PHILLIPS: Well, when it gets down to it, though, what can people around the conventions, or anyplace else, for that matter, any type of big event, really do by being aware?
BROOKS: Well, it's big events and also mid-America. We look at Oklahoma City. People have to be aware of their surroundings, whether they're at work, at school, at the beach, at the mall.
I can guarantee you, Kyra, the numbers for calls for suspicious packages probably went up, and will go up for about a week or so. And you'll hear this from people from different bomb squads across the country in major cities. But then it will start to slope off again if nothing does happen.
But, again, I think we have a security mind-set post-9/11 here in the United States that we didn't have before. And I think that's good. People should be cognizant and aware of what's going on around them.
PHILLIPS: But it's not until the actual threat level do more law enforcement agencies and fire departments and all these different organizations really put out more patrols and start spending more money and beef up security, right?
BROOKS: Well, New York and Washington have been on an orange or a modified orange level, if you will, since 9/11. There are other smaller jurisdictions that it costs them a lot of money.
And they sit back and they go to their state emergency management, they go, hey, where's the money for us? And then the state goes to the federal and says, hey, we need more money for overtime and for manpower for our people to protect certain infrastructures within their certain towns. It's very, very costly. And we have to worry about, is this too much?
But, also, we do not see the level being raised this time. It's been raised five times since they started the color coding. But the men and women on the street, the cops who are out there on the front lines, they could care less if there was a color system. They could care if the color code is pink. They want to know what information is out there available to them to make the right decisions and to raise the color code. But, you know, that's why they have joint terrorism task forces. And right now at FBI headquarters, there is an '04 threat task force. They're dealing specifically with the information, with intelligence on what's going on surrounding the, you know, the conventions. So they are out there. They're the ones who are sending leads to the officers and the detectives and the agents on these joint terrorism task forces. They go out and follow up on information that they're getting at FBI headquarters.
PHILLIPS: Sure, even airborne security, the Air Force is already talking about what they'll be doing over the conventions.
BROOKS: Absolutely, Air Force, and we talk about protecting the rivers around New York City and also Boston Harbor. There's a lot of critical infrastructure sites along, around those different cities. They'll be out there in full force.
PHILLIPS: All right, Mike Brooks, thanks.
BROOKS: Good to be with you.
PHILLIPS: Miles.
O'BRIEN: "The New Republic" magazine sticking by a report that the Bush administration is pressing for the capture of Osama bin Laden before the election. The publication quotes unnamed Pakistani officials. They say Bush emissaries are pressuring Pakistan to deliver bin Laden or other high-value targets before Americans go to the polls in November.
Now, Carol Lin spoke with "The New Republic"'s editor earlier today.
(BEGIN VIDEO CLIP)
PETER BEINART, EDITOR, "THE NEW REPUBLIC": but we do have four different sources talking about -- about -- four different Pakistani government sources talking about pressure from the Bush administration, specifically to deliver a high-value al Qaeda target before the election. And -- and that does correspond with what we've seen in the past few months, which is significantly increased incursions under American pressure by the Pakistani government into the tribal areas where Osama bin Laden and his key deputies are supposedly residing.
(END VIDEO CLIP)
O'BRIEN: The Bush administration offers this denial. And we quote it now: "Our attitudes and actions have been the same since September 11 in terms of getting high-value targets off the street. And that doesn't change because of an election."
George Tenet's seven-year ride at the CIA is coming to an end. A special farewell ceremony was held at the headquarters in Langley, Virginia, today. Tenet's former deputy, John McLaughlin, is set to take over as acting CIA chief. That becomes effective July 11. And, as Tenet said goodbye, the Senate Intelligence Committee is set to release a damaging report on the spy chief and his agency. The committee report is to detail Iraq's prewar intelligence. Sources tell CNN the report criticizes Tenet for relying too much on a CIA weapons expert and not revealing all evidence from Iraqi scientists.
PHILLIPS: The fall from grace of the Enron executives continues.
Former Enron CEO Kenneth Lay pleaded not guilty to charges in federal court. Lay, who surrendered to the FBI this morning, was indicted today on 11 charges in the 2001 bankruptcy of the energy powerhouse. Lay spoke after his arraignment and proclaimed his innocence.
(BEGIN VIDEO CLIP)
KENNETH LAY, FORMER ENRON CEO: It has been a tragic day for me and my family. We've also know that an indictment came down that should not have occurred. As CEO of the company, I accept responsibility for Enron's collapse, as I've said before. However, that does not mean I knew everything that happened at Enron. And I firmly reject any notion that I engaged in any wrongful or criminal activity.
(END VIDEO CLIP)
PHILLIPS: One of those employees who lost her job in retirement benefits appeared on CNN's "PAULA ZAHN NOW" and reacted to her former boss's indictment.
(BEGIN VIDEO CLIP, "PAULA ZAHN NOW")
ALBANE PERRINE, FORMER ENRON EMPLOYEE: Those responsible are being held accountable. And, you know, in the end, I think the money lost is a loss. I'd like to have some of it recuperated, but it's nice to know that he's being brought to justice.
(END VIDEO CLIP)
PHILLIPS: For the latest now on the Ken Lay indictment and a list of former CEOs under fire, log onto CNNMoney.com for our special report, "Scandal, Inc."
O'BRIEN: The newly minted Democratic ticket hit the road again today at a Fort Lauderdale rally. John Kerry and John Edwards vowed to uphold the values of family and opportunity. Kerry also criticized President Bush for his handling of the deficit, projected to hit a record $477 billion by the end of the year.
John Kerry and his wife, Teresa Heinz Kerry, will take a break tonight from campaigning to field your questions. They will join Larry King at 9:00 Eastern, 6:00 Pacific, right here on CNN.
President Bush is also taking a break from the campaign trail. The president has no campaign events for today, but will make several stops in Pennsylvania tomorrow. Following LIVE FROM, more ticket talk and Judy Woodruff sizes up the presidential candidates and their stance on the war on terror. That's on "INSIDE POLITICS, 3:30 p.m. Eastern, 12:30 Pacific.
Other news across America now, in Utah, the public comment from the family of U.S. Corporal Wassef Hassoun on reports that the missing Marine is at the U.S. Embassy in Beirut, Lebanon. Pentagon sources have told CNN that investigators were looking at all possible theories in his disappearance, including the possibility that it was a hoax.
And a New Mexico teen is under arrest, charged with murdering his father, stepmother and stepsister. Those killings happened at the ranch of ABC News man Sam Donaldson. Donaldson discovered the crime when he returned from the July Fourth holidays.
(BEGIN VIDEO CLIP)
SAM DONALDSON, ABC NEWS: We admired the family, all of them, particularly admired Paul, who was doing an excellent job as a ranch manager, cared about it, wanted to make it successful. With no rain in the last three years, I cannot say that we've been financially successful.
But what rancher in this country can? If anyone could have done it, Paul could have done it. But like others, we've had to sell off most of our herds, because you can't feed your way out of a drought. But Paul cut expenses where he could. He just was a perfect guy.
(END VIDEO CLIP)
PHILLIPS: And wildfires are still raging in Arizona. In addition to two communities of summer homes, the fires also threaten the $200 million Mount Graham International Observatory, home of some of the world's most powerful telescopes.
We're going to take a quick break. More LIVE FROM right after this.
(COMMERCIAL BREAK)
(WEATHER UPDATE)
PHILLIPS: Speaking at Police Plaza in New York, New York Police Commissioner Ray Kelly at the podium.
Let's listen in.
(JOINED IN PROGRESS)
RAYMOND KELLY, NYPD COMMISSIONER: And we've been working closely together in planning for the convention.
Secretary Ridge's announcement today generated a lot of inquiries about security, particularly regarding the upcoming RNC. So we decided to have this availability to let you know about the precautions we've taken in New York and to answer any questions that you might have.
First, New York City remains at the second highest alert level, level orange. As you know, we've been at that level since September 11, 2001. There are no plans to change that. Second, to reiterate what Secretary Ridge said, there is no specific information of a pending terrorist attack against the RNC or New York City.
Nonetheless, the New York City Police Department has been taking additional precautions for the last four months. That's because of the collective assessment by the intelligence community that al Qaeda was emboldened by the Madrid bombings and may well try to target the convention.
These addition precautions are reflected in three fundamental ways, first, additional protection to our transit system, second, increased and highly visible coverage of sensitive locations throughout the city, and third, a post-Madrid review of our security planning for the convention. Again, this was done hand in hand with the Secret Service.
On March 11, when the Madrid commuter trains were attacked, the New York City Police Department immediately sent a team of detectives from our intelligence division and our transit bureau to Spain to learn as much about the bombings as possible. As a result, we reconfigured security in the transit system overnight. Our team also initiated a flow of intelligence back to New York that was useful in guiding our thinking about convention security.
The notion that terrorists may attack during the convention has been part of our planning from the very beginning. It is reflected in the large commitment of resources, including up to 10,000 police officers. Beyond that, it is useful to remember that the police department significantly stepped up security in the city at the onset of the Iraq war in March of last year.
We stepped up -- we stepped it up with Operation Atlas and never entirely stepped down. The media called it orange-plus at the time. And we have had some version of that in place ever since. This includes increased attention to landmarks, bridges and tunnels, and daily assessments from all intelligence sources, including NYPD detectives permanently assigned overseas.
In recent weeks, our critical response teams have brought as many as 100 police vehicles to the same location as part of citywide drills. Nothing in today's announcement from Homeland Security causes us to change our posture. Those adjustments were already in place.
Still, we in New York are ever mindful of the fact that the city has been attacked twice by the same terrorists and that we have been the target of other unsuccessful plots. We do not think another attack is inevitable. But we do think that they will try. Our job is to stop them.
And now A.T. and I are here to answer any questions you might have. QUESTION: Commission Kelly, can you tell us, what's new today as opposed to yesterday security-wise to cause Secretary Ridge to make this (OFF-MIKE)
KELLY: There is no new information. Secretary Ridge, I believe, said that. But, again, I think, in his role as secretary of homeland security, he wants to make certain that there's sufficient consciousness abroad in the country about the possibility of an attack.
Again, after the Madrid bombing, there was this kind of collective determination on the part of the intelligence community that, as I said in my prepared remarks, that the terrorists were emboldened and that there was some information that they may try to impact on the conventions, the electoral process in this country.
So I think the secretary was just carrying out his role in making certain that the public is -- continues to be focused on the issue.
QUESTION: Commissioner (OFF-MIKE) the RNC (OFF-MIKE) a national event, is that going to bring any more money to the NYPD for security? And have you been able to collect the money that you've apparently been chasing for so long from the federal government?
KELLY: Well, the national special security event designation doesn't in and of itself bring additional money. What it does do is give the role of coordinator of federal resources and assets to the Secret Service, which they're doing and doing very well.
But we have received money from Congress, now up to $50 million, as the mayor has stated. You know, we hope to get more resources, no question about it. But we're going to do everything that has to be done to protect the city and protect the convention during that time.
PHILLIPS: New York Police Commissioner Ray Kelly responding to reporters after Secretary Tom Ridge came out today talking about homeland security and possible threats toward the conventions coming up, the commissioner saying that they've been planning for the convention for a number of months and the upcoming RNC and that they are not concerned about any threat, any specific threat, against the RNC.
They're not going to change the alert level there in New York. It will stay at orange, as it has been since 9/11, no specific information into any type of attack, also additional protection to the transit, transportation there in New York City. That was put into place after the Madrid bombings. That's not going to change.
They did talk about, though, upgrading security for the convention, up to 10,000 police officers, once again, the commissioner saying they're not changing their posture since this announcement came out today. And they don't think that another attack is inevitable, but they're not concerned right now about the RNC.
We're going to take a quick break. We'll be right back.
(COMMERCIAL BREAK)
PHILLIPS: As you know, we've been reporting the story all day. And that's the fate of Marine Corporal Wassef Ali Hassoun. We told you he made it to Beirut, Lebanon. We told you that he had made contact with his family and he's now in the hands of the Americans.
Just not long ago, Brigadier General David Rodriguez, also deputy director -- well, he was deputy director for public affairs, also Lawrence Di Rita, also making comments, taking questions from reporters.
Let's listen in.
(BEGIN VIDEOTAPE)
QUESTION: On Corporal Hassoun, is there any indication, any indication that he might have tried to desert the military? And by whom and when and how was he picked up? And are you all bringing him back to this country in a hurry? Is the military bringing him back?
BRIG. GEN. DAVID RODRIGUEZ, JOINT CHIEFS DEPUTY DIRECTOR FOR OPERATIONS: Like I said, the investigation is ongoing. And we don't know how he got there or what went on between the time that he was reported missing from his unit until he got into Lebanon. And he came to the embassy compound under our control and of his own accord.
QUESTION: He came to the embassy compound and he was picked up by the military? Or what? How?
RODRIGUEZ: He came to link up with the U.S. Embassy personnel, and he's at the embassy compound.
QUESTION: So he wasn't picked up by the military?
RODRIGUEZ: No, he was not.
QUESTION: And you are moving to quickly bring him back to the United States?
LAWRENCE DI RITA, PRINCIPAL DEPUTY ASSISTANT SECRETARY OF DEFENSE FOR PUBLIC AFFAIRS: Look, Charlie, there's a lot of interest in this. There's no question about it. Almost nothing that's been reported about Corporal Hassoun has been accurate when it was first believed.
So we're just going to stick to what we've told you, which is, he is now in U.S. control at the embassy compound in Lebanon. That's all we're able to confirm. And beyond that, time will tell. We'll let it sort itself out.
QUESTION: Well, when you say almost nothing that has been reported that's been reported was accurate, what you're saying is, you have confirmed that he was not deserting or you just don't know?
(CROSSTALK) DI RITA: I'm saying we don't know. And there's no sense speculating, because most of the speculation to this point has been confused. And so we're just not going to contribute to that.
QUESTION: (OFF-MIKE) condition?
DI RITA: We'll have more to say when we have more to say.
QUESTION: So is there -- can you say whether there's any indication that the capture, the videotapes showing him on tape, is there any indication that that isn't what it seemed to be, that it's
(CROSSTALK)
DI RITA: I have nothing for you. There's just -- we have nothing for you on it. We'll just let this situation unfold. And when we've got something to say, we'll say it.
QUESTION: Is that under investigation, whether or not the capture was real?
DI RITA: When we have something to announce, we will announce it.
QUESTION: Can you at least say if it's the Joint Repatriation Agency that's taking the lead in terms of talking with the corporal?
DI RITA: No, we cannot say that.
(END VIDEOTAPE)
PHILLIPS: Well, straight from Larry Di Rita, we got nothing for you. That's the public affairs deputy assistant secretary of defense. No confirmation whether Wassef Ali Hassoun went AWOL or not, the U.S. Marine that went missing.
We can tell you he is in Lebanon at the embassy compound. We'll continue to follow the story and try and get you more information, if we can get it, out of the Pentagon there.
(FINANCIAL UPDATE)
O'BRIEN: Wow, we had a great monkey story for you.
(LAUGHTER)
O'BRIEN: But we have been monkeying around with news today. No, seriously, we've had a lot of serious things happen today. And that story about monkeys being able to think what they do or do what they think, it's gone. It's gone. But it will be back tomorrow, among other things. And the other one that we need to mention is Matt Damon.
PHILLIPS: Yes, we can't forget that. We're not monkeying around about that.
(CROSSTALK)
O'BRIEN: We're not monkeying around about that. That also...
PHILLIPS: Every intern has showed up. Have you noticed that?
(CROSSTALK)
O'BRIEN: ... tomorrow. So, in any case, those two important items will be later.
(CROSSTALK)
O'BRIEN: I'm Miles O'Brien. Thanks for being with us through this wild afternoon.
PHILLIPS: And I'm Kyra Phillips.
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 July 8, 2004 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: In the news now, will New York City ramp up security in the wake of today's Homeland Security briefing? We could find out shortly. New York Police Commissioner Ray Kelly has a news conference within the hour.
Earlier today, Tom Ridge renewed his warning that al Qaeda plans a large-scale attack to disrupt the democratic process. New York, of course, hosting the Republican convention in August.
The cuffs went on, but the gloves came off. Former Enron chief Kenneth Lay pleaded not guilty and vowed to fight today's federal indictment, 11 counts of which. Adding to the drama, the Securities and Exchange Commission filed its own civil charges against Lay today.
In another high-profile case, a judge has denied Martha Stewart's motion for a new trial. Her attorneys claimed a government witness lied on the stand during Stewart's conspiracy and obstruction trial, but the judge ruled the alleged perjury had no bearing on her conviction. Stewart is scheduled to be sentenced next week.
The State Department says Marine Corporal Wassef Hassoun back in U.S. hands at the American Embassy in Beirut, Lebanon, Hassoun reported missing in Iraq last month, and was later shown on a video with apparent kidnappers. Hassoun will be sent to a U.S. medical facility in Germany.
KYRA PHILLIPS, CNN ANCHOR: Already under the constant shadow of a terrorist threat, a nation is reminded that the threat may be real.
(BEGIN VIDEO CLIP)
TOM RIDGE, HOMELAND SECURITY SECRETARY: We are basically laying out before the general public the kind of information that we've received. And it's not us. These are not conjectures or mythical statements we're making. These are pieces of information that we can trace comfortably to sources that we deem to be credible.
(END VIDEO CLIP)
PHILLIPS: Credible perhaps, but we didn't really hear anything new today. Is repeating the message worthwhile or could Americans develop a sort of danger callous?
Joining me now to consider the question, CNN's Mike Brooks.
I guess you call it alert fatigue. MIKE BROOKS, CNN LAW ENFORCEMENT ANALYST: Alert fatigue.
There's always that concern. And the FBI is concerned about that. But I think sometimes Americans need kind of a prod. Six months to a year down the road, nothing happens, people get lulled back into a false sense of security. Oh, nothing is going to happen here in my neighborhood.
But, again, this was more of a vigilance alert. And I called it a public service announcement by the Department of Homeland Security, tell them what they are going to be doing for the people around the conventions in Boston and in New York.
PHILLIPS: Well, when it gets down to it, though, what can people around the conventions, or anyplace else, for that matter, any type of big event, really do by being aware?
BROOKS: Well, it's big events and also mid-America. We look at Oklahoma City. People have to be aware of their surroundings, whether they're at work, at school, at the beach, at the mall.
I can guarantee you, Kyra, the numbers for calls for suspicious packages probably went up, and will go up for about a week or so. And you'll hear this from people from different bomb squads across the country in major cities. But then it will start to slope off again if nothing does happen.
But, again, I think we have a security mind-set post-9/11 here in the United States that we didn't have before. And I think that's good. People should be cognizant and aware of what's going on around them.
PHILLIPS: But it's not until the actual threat level do more law enforcement agencies and fire departments and all these different organizations really put out more patrols and start spending more money and beef up security, right?
BROOKS: Well, New York and Washington have been on an orange or a modified orange level, if you will, since 9/11. There are other smaller jurisdictions that it costs them a lot of money.
And they sit back and they go to their state emergency management, they go, hey, where's the money for us? And then the state goes to the federal and says, hey, we need more money for overtime and for manpower for our people to protect certain infrastructures within their certain towns. It's very, very costly. And we have to worry about, is this too much?
But, also, we do not see the level being raised this time. It's been raised five times since they started the color coding. But the men and women on the street, the cops who are out there on the front lines, they could care less if there was a color system. They could care if the color code is pink. They want to know what information is out there available to them to make the right decisions and to raise the color code. But, you know, that's why they have joint terrorism task forces. And right now at FBI headquarters, there is an '04 threat task force. They're dealing specifically with the information, with intelligence on what's going on surrounding the, you know, the conventions. So they are out there. They're the ones who are sending leads to the officers and the detectives and the agents on these joint terrorism task forces. They go out and follow up on information that they're getting at FBI headquarters.
PHILLIPS: Sure, even airborne security, the Air Force is already talking about what they'll be doing over the conventions.
BROOKS: Absolutely, Air Force, and we talk about protecting the rivers around New York City and also Boston Harbor. There's a lot of critical infrastructure sites along, around those different cities. They'll be out there in full force.
PHILLIPS: All right, Mike Brooks, thanks.
BROOKS: Good to be with you.
PHILLIPS: Miles.
O'BRIEN: "The New Republic" magazine sticking by a report that the Bush administration is pressing for the capture of Osama bin Laden before the election. The publication quotes unnamed Pakistani officials. They say Bush emissaries are pressuring Pakistan to deliver bin Laden or other high-value targets before Americans go to the polls in November.
Now, Carol Lin spoke with "The New Republic"'s editor earlier today.
(BEGIN VIDEO CLIP)
PETER BEINART, EDITOR, "THE NEW REPUBLIC": but we do have four different sources talking about -- about -- four different Pakistani government sources talking about pressure from the Bush administration, specifically to deliver a high-value al Qaeda target before the election. And -- and that does correspond with what we've seen in the past few months, which is significantly increased incursions under American pressure by the Pakistani government into the tribal areas where Osama bin Laden and his key deputies are supposedly residing.
(END VIDEO CLIP)
O'BRIEN: The Bush administration offers this denial. And we quote it now: "Our attitudes and actions have been the same since September 11 in terms of getting high-value targets off the street. And that doesn't change because of an election."
George Tenet's seven-year ride at the CIA is coming to an end. A special farewell ceremony was held at the headquarters in Langley, Virginia, today. Tenet's former deputy, John McLaughlin, is set to take over as acting CIA chief. That becomes effective July 11. And, as Tenet said goodbye, the Senate Intelligence Committee is set to release a damaging report on the spy chief and his agency. The committee report is to detail Iraq's prewar intelligence. Sources tell CNN the report criticizes Tenet for relying too much on a CIA weapons expert and not revealing all evidence from Iraqi scientists.
PHILLIPS: The fall from grace of the Enron executives continues.
Former Enron CEO Kenneth Lay pleaded not guilty to charges in federal court. Lay, who surrendered to the FBI this morning, was indicted today on 11 charges in the 2001 bankruptcy of the energy powerhouse. Lay spoke after his arraignment and proclaimed his innocence.
(BEGIN VIDEO CLIP)
KENNETH LAY, FORMER ENRON CEO: It has been a tragic day for me and my family. We've also know that an indictment came down that should not have occurred. As CEO of the company, I accept responsibility for Enron's collapse, as I've said before. However, that does not mean I knew everything that happened at Enron. And I firmly reject any notion that I engaged in any wrongful or criminal activity.
(END VIDEO CLIP)
PHILLIPS: One of those employees who lost her job in retirement benefits appeared on CNN's "PAULA ZAHN NOW" and reacted to her former boss's indictment.
(BEGIN VIDEO CLIP, "PAULA ZAHN NOW")
ALBANE PERRINE, FORMER ENRON EMPLOYEE: Those responsible are being held accountable. And, you know, in the end, I think the money lost is a loss. I'd like to have some of it recuperated, but it's nice to know that he's being brought to justice.
(END VIDEO CLIP)
PHILLIPS: For the latest now on the Ken Lay indictment and a list of former CEOs under fire, log onto CNNMoney.com for our special report, "Scandal, Inc."
O'BRIEN: The newly minted Democratic ticket hit the road again today at a Fort Lauderdale rally. John Kerry and John Edwards vowed to uphold the values of family and opportunity. Kerry also criticized President Bush for his handling of the deficit, projected to hit a record $477 billion by the end of the year.
John Kerry and his wife, Teresa Heinz Kerry, will take a break tonight from campaigning to field your questions. They will join Larry King at 9:00 Eastern, 6:00 Pacific, right here on CNN.
President Bush is also taking a break from the campaign trail. The president has no campaign events for today, but will make several stops in Pennsylvania tomorrow. Following LIVE FROM, more ticket talk and Judy Woodruff sizes up the presidential candidates and their stance on the war on terror. That's on "INSIDE POLITICS, 3:30 p.m. Eastern, 12:30 Pacific.
Other news across America now, in Utah, the public comment from the family of U.S. Corporal Wassef Hassoun on reports that the missing Marine is at the U.S. Embassy in Beirut, Lebanon. Pentagon sources have told CNN that investigators were looking at all possible theories in his disappearance, including the possibility that it was a hoax.
And a New Mexico teen is under arrest, charged with murdering his father, stepmother and stepsister. Those killings happened at the ranch of ABC News man Sam Donaldson. Donaldson discovered the crime when he returned from the July Fourth holidays.
(BEGIN VIDEO CLIP)
SAM DONALDSON, ABC NEWS: We admired the family, all of them, particularly admired Paul, who was doing an excellent job as a ranch manager, cared about it, wanted to make it successful. With no rain in the last three years, I cannot say that we've been financially successful.
But what rancher in this country can? If anyone could have done it, Paul could have done it. But like others, we've had to sell off most of our herds, because you can't feed your way out of a drought. But Paul cut expenses where he could. He just was a perfect guy.
(END VIDEO CLIP)
PHILLIPS: And wildfires are still raging in Arizona. In addition to two communities of summer homes, the fires also threaten the $200 million Mount Graham International Observatory, home of some of the world's most powerful telescopes.
We're going to take a quick break. More LIVE FROM right after this.
(COMMERCIAL BREAK)
(WEATHER UPDATE)
PHILLIPS: Speaking at Police Plaza in New York, New York Police Commissioner Ray Kelly at the podium.
Let's listen in.
(JOINED IN PROGRESS)
RAYMOND KELLY, NYPD COMMISSIONER: And we've been working closely together in planning for the convention.
Secretary Ridge's announcement today generated a lot of inquiries about security, particularly regarding the upcoming RNC. So we decided to have this availability to let you know about the precautions we've taken in New York and to answer any questions that you might have.
First, New York City remains at the second highest alert level, level orange. As you know, we've been at that level since September 11, 2001. There are no plans to change that. Second, to reiterate what Secretary Ridge said, there is no specific information of a pending terrorist attack against the RNC or New York City.
Nonetheless, the New York City Police Department has been taking additional precautions for the last four months. That's because of the collective assessment by the intelligence community that al Qaeda was emboldened by the Madrid bombings and may well try to target the convention.
These addition precautions are reflected in three fundamental ways, first, additional protection to our transit system, second, increased and highly visible coverage of sensitive locations throughout the city, and third, a post-Madrid review of our security planning for the convention. Again, this was done hand in hand with the Secret Service.
On March 11, when the Madrid commuter trains were attacked, the New York City Police Department immediately sent a team of detectives from our intelligence division and our transit bureau to Spain to learn as much about the bombings as possible. As a result, we reconfigured security in the transit system overnight. Our team also initiated a flow of intelligence back to New York that was useful in guiding our thinking about convention security.
The notion that terrorists may attack during the convention has been part of our planning from the very beginning. It is reflected in the large commitment of resources, including up to 10,000 police officers. Beyond that, it is useful to remember that the police department significantly stepped up security in the city at the onset of the Iraq war in March of last year.
We stepped up -- we stepped it up with Operation Atlas and never entirely stepped down. The media called it orange-plus at the time. And we have had some version of that in place ever since. This includes increased attention to landmarks, bridges and tunnels, and daily assessments from all intelligence sources, including NYPD detectives permanently assigned overseas.
In recent weeks, our critical response teams have brought as many as 100 police vehicles to the same location as part of citywide drills. Nothing in today's announcement from Homeland Security causes us to change our posture. Those adjustments were already in place.
Still, we in New York are ever mindful of the fact that the city has been attacked twice by the same terrorists and that we have been the target of other unsuccessful plots. We do not think another attack is inevitable. But we do think that they will try. Our job is to stop them.
And now A.T. and I are here to answer any questions you might have. QUESTION: Commission Kelly, can you tell us, what's new today as opposed to yesterday security-wise to cause Secretary Ridge to make this (OFF-MIKE)
KELLY: There is no new information. Secretary Ridge, I believe, said that. But, again, I think, in his role as secretary of homeland security, he wants to make certain that there's sufficient consciousness abroad in the country about the possibility of an attack.
Again, after the Madrid bombing, there was this kind of collective determination on the part of the intelligence community that, as I said in my prepared remarks, that the terrorists were emboldened and that there was some information that they may try to impact on the conventions, the electoral process in this country.
So I think the secretary was just carrying out his role in making certain that the public is -- continues to be focused on the issue.
QUESTION: Commissioner (OFF-MIKE) the RNC (OFF-MIKE) a national event, is that going to bring any more money to the NYPD for security? And have you been able to collect the money that you've apparently been chasing for so long from the federal government?
KELLY: Well, the national special security event designation doesn't in and of itself bring additional money. What it does do is give the role of coordinator of federal resources and assets to the Secret Service, which they're doing and doing very well.
But we have received money from Congress, now up to $50 million, as the mayor has stated. You know, we hope to get more resources, no question about it. But we're going to do everything that has to be done to protect the city and protect the convention during that time.
PHILLIPS: New York Police Commissioner Ray Kelly responding to reporters after Secretary Tom Ridge came out today talking about homeland security and possible threats toward the conventions coming up, the commissioner saying that they've been planning for the convention for a number of months and the upcoming RNC and that they are not concerned about any threat, any specific threat, against the RNC.
They're not going to change the alert level there in New York. It will stay at orange, as it has been since 9/11, no specific information into any type of attack, also additional protection to the transit, transportation there in New York City. That was put into place after the Madrid bombings. That's not going to change.
They did talk about, though, upgrading security for the convention, up to 10,000 police officers, once again, the commissioner saying they're not changing their posture since this announcement came out today. And they don't think that another attack is inevitable, but they're not concerned right now about the RNC.
We're going to take a quick break. We'll be right back.
(COMMERCIAL BREAK)
PHILLIPS: As you know, we've been reporting the story all day. And that's the fate of Marine Corporal Wassef Ali Hassoun. We told you he made it to Beirut, Lebanon. We told you that he had made contact with his family and he's now in the hands of the Americans.
Just not long ago, Brigadier General David Rodriguez, also deputy director -- well, he was deputy director for public affairs, also Lawrence Di Rita, also making comments, taking questions from reporters.
Let's listen in.
(BEGIN VIDEOTAPE)
QUESTION: On Corporal Hassoun, is there any indication, any indication that he might have tried to desert the military? And by whom and when and how was he picked up? And are you all bringing him back to this country in a hurry? Is the military bringing him back?
BRIG. GEN. DAVID RODRIGUEZ, JOINT CHIEFS DEPUTY DIRECTOR FOR OPERATIONS: Like I said, the investigation is ongoing. And we don't know how he got there or what went on between the time that he was reported missing from his unit until he got into Lebanon. And he came to the embassy compound under our control and of his own accord.
QUESTION: He came to the embassy compound and he was picked up by the military? Or what? How?
RODRIGUEZ: He came to link up with the U.S. Embassy personnel, and he's at the embassy compound.
QUESTION: So he wasn't picked up by the military?
RODRIGUEZ: No, he was not.
QUESTION: And you are moving to quickly bring him back to the United States?
LAWRENCE DI RITA, PRINCIPAL DEPUTY ASSISTANT SECRETARY OF DEFENSE FOR PUBLIC AFFAIRS: Look, Charlie, there's a lot of interest in this. There's no question about it. Almost nothing that's been reported about Corporal Hassoun has been accurate when it was first believed.
So we're just going to stick to what we've told you, which is, he is now in U.S. control at the embassy compound in Lebanon. That's all we're able to confirm. And beyond that, time will tell. We'll let it sort itself out.
QUESTION: Well, when you say almost nothing that has been reported that's been reported was accurate, what you're saying is, you have confirmed that he was not deserting or you just don't know?
(CROSSTALK) DI RITA: I'm saying we don't know. And there's no sense speculating, because most of the speculation to this point has been confused. And so we're just not going to contribute to that.
QUESTION: (OFF-MIKE) condition?
DI RITA: We'll have more to say when we have more to say.
QUESTION: So is there -- can you say whether there's any indication that the capture, the videotapes showing him on tape, is there any indication that that isn't what it seemed to be, that it's
(CROSSTALK)
DI RITA: I have nothing for you. There's just -- we have nothing for you on it. We'll just let this situation unfold. And when we've got something to say, we'll say it.
QUESTION: Is that under investigation, whether or not the capture was real?
DI RITA: When we have something to announce, we will announce it.
QUESTION: Can you at least say if it's the Joint Repatriation Agency that's taking the lead in terms of talking with the corporal?
DI RITA: No, we cannot say that.
(END VIDEOTAPE)
PHILLIPS: Well, straight from Larry Di Rita, we got nothing for you. That's the public affairs deputy assistant secretary of defense. No confirmation whether Wassef Ali Hassoun went AWOL or not, the U.S. Marine that went missing.
We can tell you he is in Lebanon at the embassy compound. We'll continue to follow the story and try and get you more information, if we can get it, out of the Pentagon there.
(FINANCIAL UPDATE)
O'BRIEN: Wow, we had a great monkey story for you.
(LAUGHTER)
O'BRIEN: But we have been monkeying around with news today. No, seriously, we've had a lot of serious things happen today. And that story about monkeys being able to think what they do or do what they think, it's gone. It's gone. But it will be back tomorrow, among other things. And the other one that we need to mention is Matt Damon.
PHILLIPS: Yes, we can't forget that. We're not monkeying around about that.
(CROSSTALK)
O'BRIEN: We're not monkeying around about that. That also...
PHILLIPS: Every intern has showed up. Have you noticed that?
(CROSSTALK)
O'BRIEN: ... tomorrow. So, in any case, those two important items will be later.
(CROSSTALK)
O'BRIEN: I'm Miles O'Brien. Thanks for being with us through this wild afternoon.
PHILLIPS: And I'm Kyra Phillips.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
