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Senate Report Accuses Top Russian Politicians of Making Their Own Illicit Deals with Iraq; Damage Control

Aired May 16, 2005 - 13:31   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.


KYRA PHILLIPS, CNN ANCHOR: Live pictures right now. Hearings just getting under way on Capitol Hill about the recommendations on military base closures across the country. Defense Secretary Donald Rumsfeld and Joint Chiefs Chairman General Richard Myers are there to answer questions about how the Pentagon went about making its choices. We'll dip in live as soon as they take to the microphone.
Now it's already scandal ridden. But today, there are new troubles for the U.N. Oil-for-Food program. A Senate report accused top Russian politicians of making their own illicit deals with Iraq, including advisers to Russian President Vladimir Putin.

CNN's Richard Roth has the latest now on the allegations and just how far up they can go in the chain of command.

(BEGIN VIDEOTAPE)

RICHARD ROTH, CNN CORRESPONDENT (voice-over): Vladimir Zhirinovsky may be best known for his ultra nationalist views, his bawdy behavior during three failed runs for president of Russia or his antics inside the Russian parliament. But according to U.S. congressional investigators, Russia's deputy parliament speaker was also a recipient of lucrative vouchers from Saddam Hussein's regime to buy Iraqi oil under the U.N.'s Oil For Food Program.

A report released today alleges that Zhirinovsky and his political party were allocated 76 million barrels of Iraqi crude between 1997 and 2002. The oil was allegedly a reward for supporting Saddam's regime and calling for an end to economic sanctions against it, according to former top Iraqi officials interviewed by Senate investigators.

Iraqi oil ministry records cited in the report allege Zhirinovsky even hired an American company, Houston-based Bay Oil, as a middle-man to take possession of some of his oil and sell it on the open market. Bay Oil and its CEO are under federal indictment for paying Saddam illegally surcharges to get Iraqi oil. The alleged profits for Zhirinovsky on his deals? About $9 million.

But according to the Senate report, Zhirinovsky was not the only Russian pension rewarded by Iraq. The report says President Vladimir Putin's United Russia Party got oil allocations, as did top Putin adviser, Alexander Voloshin (ph), and the Russian foreign ministry. In all, some 90 million barrels to top Russian officials, and $3 billion profit, according to the Senate report. Former Iraqi officials told investigators they were buying influence and providing compensation for support, especially at the U.N. Security Council.

(END VIDEOTAPE)

ROTH: Reaction today, denials all around, from the Russian foreign ministry, and mission to the U.N. here, and from Vladimir Zhirinovsky. In a radio interview, he denied accepting any oil or signing any contracts -- Kyra.

PHILLIPS: Richard Roth, live from the U.N., thank you.

And in a Moscow courtroom, indications that the former head of UCOS (ph) Oil will be found guilty of at least four out of seven charges stemming against him, including tax evasion. Mikhail Kortovkovsky (ph), who's been jailed since October of 2003, will learn the court's verdicts tomorrow. UCOS official claims the motivation to charge their founder is politically motivated. Kortovkovsky has openly criticized President Putin, funded opposition charges and expressed desires to run for office someday. Putin says the case is part of a crackdown on corruption and denies any political motivation.

Now questions on what to do about Iran and nukes, and a warning from U.N. Secretary-General Kofi Annan to the Bush administration: Don't go there. According to a report in the "USA Today," Annan is advising against bringing Iran before the Security Council if it resumes making nuclear fuel. Both the U.S. and Britain pushed for the U.N. to respond in that case, and it reportedly fears the Security Council would deadlock if it's called upon to punish Tehran, which he says might embolden North Korea in its nuclear ambitions.

Well, Mexico's President Vicente fox is still feeling repercussions from remarks that he made Friday. Fox was addressing a group of Texas businessmen in Spanish. While criticizing Bush administration immigration policies, he remarked that Mexicans are willing to do jobs that, quote, "not even blacks want to do in the U.S." Immediate outrage and immediate an outcry from, among others, the Reverend Jesse Jackson.

President Fox's office responded with this statement, "President Vincente Fox expresses his enormous respect for minorities, whatever their racial, ethnic and religious origin. Their purpose was none other than to make clear the important that Mexican workers have in the development and progress of U.S. society."

So was it a lapse in language, or a lapse in judgment? While President Fox can't take his words back, what can or should he do next?

Jose Carreno is the Washington-based correspondent for the Mexico City daily, "El Universal." He joins us to talk about damage control.

Good to see you, Jose.

JOSE CARRENO, "EL UNIVERSAL: Good afternoon. PHILLIPS: Well, first of all, what's your first reaction to the remarks?

CARRENO: Silly is the only way I can put it. It's silly. I do believe that Mr. Fox is a racist. I do not believe that he was bad intentioned, but it's nonetheless silly.

PHILLIPS: So does he need to apologize? Is it necessary? Considering you may think this is silly, and this was lost in translation, but considering how sensitive of an issue this is, should he come out and publicly say, look, you didn't understand I said, this is what I meant, I'm sorry if I offended anybody?

CARRENO: I do agree with you, he needs to apologize. I mean, if you step on somebody's toes, to let me use that example, you ask for a -- you make an apology and say, hey, I'm not doing this anymore. I will not be destructive. In terms of this is much deeper, much harsher, much stronger, if want to put that way, and, yes, he needs to apologize publicly and say, hey, you know what, this is not what I want; this is not what I am. Mexico is not a racist country, and if you look at the Mexican press today, since yesterday, better said, there have been a lot of criticisms of President Fox.

PHILLIPS: How have all the Hispanic journalists been covering this story? I mean, can you make a comparison? Can you look at Spanish-speaking news organizations, newspapers, broadcasts and look at, say, CNN and other networks? Do you see difference?

CARRENO: There are small differences making allowances for difference of culture and difference of things, but I can quote my newspaper, the newspaper I work for. It was a front-page story in Sunday, yesterday. Another newspaper was a bit bolder, and they openly spoke of racism in terms of in front page. So in Mexico is and has been for the last two days a big story. Here, has been -- excuse me, here -- it appears to have been a bit more subdued in terms of print media.

PHILLIPS: Interesting. So the fact that he said blacks. He didn't say any other ethnicity. He didn't even just say Americans. Does that show that he does have some type of stereotype about African-Americans working in the U.S.? And -- or what do you think that does say about how he views blacks in America?

CARRENO: Look, there are several types in Mexico, Latin America I would say, the stereotype this case in Mexico. We do not have a real conscience of the problems of the black people, except by reference. Our images are mostly coming from the United States, from programs in the United States, from the U.S. history, although we have a very, very tiny minority of black people.

Now, having said that, in Mexico there is a stereotype about the African-Americans, and Africans in general, as a matter of fact. For us, they are mostly sport figures or artistic figures, meaning musician, et cetera, and people that has the harshest of the jobs, of labor. So there is a stereotype, yes. Is there deliberate problem, a deliberate expression of racism? I would argue with that. PHILLIPS: Sure.

I want to ask you, too, just real quickly, Jose, my final question, Jesse Jackson came out talking about Fox's comment as a stereotype, and he said, quote, it's a stereotype, and he says that most poor Americans not even black; they're white. Of course, this led us to the U.S. Census Bureau, and these are some numbers that we found. Raw numbers, yes. Jesse Jackson was definitely right, but when you talk about percentages of each ethnic group, it's interesting to see the number. Hispanic, 8 percent, with regard to the poverty rate. Black, 24 percent. Hispanic, 21 percent.

So do you think Fox is trying to say that, look, there is an issue, no matter what ethnicity. They're all hard workers, and if you look at all of these numbers, that needs to be recognized even more so that there is a gap, and we need to focus on how hard all of these individuals work.

CARRENO: Look, I believe and I think you have said it perfectly well, there is a gap in the U.S. society, there is a huge gap in the Mexican society in terms of this division of income between the -- let's say the most favored people and the less favored people.

But I do believe, though, that one of the problems that both Hispanics and African-Americans share is that, to a degree, there is trend to the disintegration of their families. And so they're suffering the most in this moment.

PHILLIPS: Jose Carreno is a Washington-based correspondent for "El Universal." We sure appreciate your time today. Thank you so much.

CARRENO: My pleasure.

PHILLIPS: Straight ahead, out of sight, but not out of mind. Funny man Dave Chappelle finally talking about his big disappearing act. We're going to dispel the rumors and find out why he really took off. That's next.

Plus, you think you're a big "Star Wars" fan. Well, bet you got nothing on this British buff.

(COMMERCIAL BREAK)

PHILLIPS: Well, it's been the biggest TV mystery since who killed J.R.? What the heck happened to comedy kingpin Dave Chappelle. Well, when he didn't show up to begin taping the third season of his wildly popular "Chappelle Show," rumors of the Chappelle no-show ran amuck.

Well, Dave has now surfaced, at least in print, to dispel some of the wilder speculation. Reporter Chris Farley talked to him for "Time" magazine.

(BEGIN VIDEO CLIP) CHRIS FARLEY "TIME" MAGAZINE: I don't think he had an emotional breakdown. I don't think he had a mental breakdown. I think he just wanted to take a break. You know, it was funny I was talking to him this whole time when all of these stories were running, saying he's partying to hard, that maybe he's in a mental institution, and here he was on the phone talking to me, saying, you know, none of this stuff was true.

Also we also had a reporter in South Africa go and talk to him, in person, face-to-face. Simon Robinson is a reporter there, our bureau chief in Johannesburg, just to verify more of this stuff, to see how the guy was doing. And he did not find a guy who was a mental case; he found a guy who was very sharp, still very funny, and now raring to get back into the game when he comes back to the States.

(END VIDEO CLIP)

PHILLIPS: Chappell is quoted as saying, he was so stressed out that he decided to, quote, "take a minute and pull a Flintstone," stop a speeding car by using my bare feet as brakes."

Well, the wait if finally over for Star Wars fans lucky enough to be at the Cannes Film Festival. Although the final installment of the George Lucas' space epic is not part of the competition, the stars were definitely aligned -- aligned up to get into the gala premiere anyway, unmasked celebs like Samuel L. Jackson and Natalie Portman spotted on the red carpet. Darth Vader also made the scene in full Death Star drag. Meanwhile, Wookies, Tuscan Raiders and just plain folks are risking deep-vein thrombosis in London as they plop themselves down to see all six star wars flicks in one sitting. Those tickets at $450 per seat sold out within minutes of going on sale.

When Jim Knight wants to use the force, he doesn't have to go far, thanks to a massive collection that he started when he was just a tender tot.

CNN's Amira Dorzen (ph) with a portrait of a mania and also a cautionary tale for parents. Be careful what you toss out of that toy box!

(BEGIN VIDEOTAPE)

AMIRA DORZEN (ph), CNN CORRESPONDENT (voice-over): At first glance, this looks like an average guy at work. Take a closer look, though, and you'll notice something odd. Princess Leia? Darth Vader? R2-D2? Not your average guy at all. He's Jim Knight, or Jim "Jedi" Knight to his friends. And never mind his office. Jim's home really gives the game away. It's like a museum, packed to the brim with "Star Wars" memorabilia. Age, 30, he's been collecting since he was 4.

JIM KNIGHT: This particular figure, my original figure from when I was a child. Boba Fett's quite a strange character in the Star Wars universe, because he was only briefly in "Empire Strikes Back." As a child, it would have roughly cost $2. Now you're looking probably about $400 or $500. DORZEN: "Star Wars" merchandising sales have generated around $9 billion with many individuals items costing thousands. The At-At is Jim's most expensive item. It set him back around $2000.

KNIGHT: It's hard to explain what the fascination with it is, really. All the collectibles, I mean, everything they're releasing now, with the replicas, are absolutely amazing, and they just keep you entwined in the users.

UNIDENTIFIED MALE: Your journey to the dark side.

DORZEN: Modern technology means toys can do far more than they could even a decade ago. Some items are almost as good as the real thing. High-tech toys, plus a flow of new movies over the years, has helped keep the "Star Wars" brand fresh. Experts say it explains why the merchandise continues to sell.

ANDY MILLIGAN, INTERBRAND: The main characters have become iconic, like Darth Vader, C-3P0, R2-D2. Though those characters have survived throughout, they've always introduced crowed new characters that kind of fit within that fantastical world, and, therefore, give a new generation of fans something of their own to grab hold of.

(BEGIN VIDEO CLIP)

UNIDENTIFIED ACTOR: Asteroids do not concern me, admiral. I want that ship!

(END VIDEO CLIP)

DORZEN: Serious collectors want to collect everything. Jim spent around $20,000. And even then, it's hard to know when to stop.

Amira Dorzen, CNN, London.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

PHILLIPS: We're just getting word here at CNN that jurors have reached a verdict in the murder trial of Alejandro Avila's murder trial. They have told the court that Avila should be executed for killing 5-year-old Samantha Runnion. You'll remember back in April that a jury convicted the factory worker of kidnapping and murdering 5-year-old Samantha Runnion. She's that Orange County girl whose 2002 death prompted outrage, heartbreak and stronger efforts to rescue abducted children.

She was Found here on the side of a roadway in Stanton, California, just outside of her home rather in Stanton, California, in this mountainous area, some 50 miles away. And you'll also remember that Avila had been acquitted of molesting two girls in 2001 in neighboring Riverside County. Today he is found guilty of murder and is scheduled to die for that crime.

(STOCK MARKET REPORT) PHILLIPS: Coming up in the second hour of live from, we're also going to talk about brothers in battle. Two American sailors serving in Iraq become good friends. Guess what? They discover they have a lot in common. Little did they know just how much.

LIVE FROM's hour of power begins right after this.

(COMMERCIAL BREAK)

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 16, 2005 - 13:31   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Live pictures right now. Hearings just getting under way on Capitol Hill about the recommendations on military base closures across the country. Defense Secretary Donald Rumsfeld and Joint Chiefs Chairman General Richard Myers are there to answer questions about how the Pentagon went about making its choices. We'll dip in live as soon as they take to the microphone.
Now it's already scandal ridden. But today, there are new troubles for the U.N. Oil-for-Food program. A Senate report accused top Russian politicians of making their own illicit deals with Iraq, including advisers to Russian President Vladimir Putin.

CNN's Richard Roth has the latest now on the allegations and just how far up they can go in the chain of command.

(BEGIN VIDEOTAPE)

RICHARD ROTH, CNN CORRESPONDENT (voice-over): Vladimir Zhirinovsky may be best known for his ultra nationalist views, his bawdy behavior during three failed runs for president of Russia or his antics inside the Russian parliament. But according to U.S. congressional investigators, Russia's deputy parliament speaker was also a recipient of lucrative vouchers from Saddam Hussein's regime to buy Iraqi oil under the U.N.'s Oil For Food Program.

A report released today alleges that Zhirinovsky and his political party were allocated 76 million barrels of Iraqi crude between 1997 and 2002. The oil was allegedly a reward for supporting Saddam's regime and calling for an end to economic sanctions against it, according to former top Iraqi officials interviewed by Senate investigators.

Iraqi oil ministry records cited in the report allege Zhirinovsky even hired an American company, Houston-based Bay Oil, as a middle-man to take possession of some of his oil and sell it on the open market. Bay Oil and its CEO are under federal indictment for paying Saddam illegally surcharges to get Iraqi oil. The alleged profits for Zhirinovsky on his deals? About $9 million.

But according to the Senate report, Zhirinovsky was not the only Russian pension rewarded by Iraq. The report says President Vladimir Putin's United Russia Party got oil allocations, as did top Putin adviser, Alexander Voloshin (ph), and the Russian foreign ministry. In all, some 90 million barrels to top Russian officials, and $3 billion profit, according to the Senate report. Former Iraqi officials told investigators they were buying influence and providing compensation for support, especially at the U.N. Security Council.

(END VIDEOTAPE)

ROTH: Reaction today, denials all around, from the Russian foreign ministry, and mission to the U.N. here, and from Vladimir Zhirinovsky. In a radio interview, he denied accepting any oil or signing any contracts -- Kyra.

PHILLIPS: Richard Roth, live from the U.N., thank you.

And in a Moscow courtroom, indications that the former head of UCOS (ph) Oil will be found guilty of at least four out of seven charges stemming against him, including tax evasion. Mikhail Kortovkovsky (ph), who's been jailed since October of 2003, will learn the court's verdicts tomorrow. UCOS official claims the motivation to charge their founder is politically motivated. Kortovkovsky has openly criticized President Putin, funded opposition charges and expressed desires to run for office someday. Putin says the case is part of a crackdown on corruption and denies any political motivation.

Now questions on what to do about Iran and nukes, and a warning from U.N. Secretary-General Kofi Annan to the Bush administration: Don't go there. According to a report in the "USA Today," Annan is advising against bringing Iran before the Security Council if it resumes making nuclear fuel. Both the U.S. and Britain pushed for the U.N. to respond in that case, and it reportedly fears the Security Council would deadlock if it's called upon to punish Tehran, which he says might embolden North Korea in its nuclear ambitions.

Well, Mexico's President Vicente fox is still feeling repercussions from remarks that he made Friday. Fox was addressing a group of Texas businessmen in Spanish. While criticizing Bush administration immigration policies, he remarked that Mexicans are willing to do jobs that, quote, "not even blacks want to do in the U.S." Immediate outrage and immediate an outcry from, among others, the Reverend Jesse Jackson.

President Fox's office responded with this statement, "President Vincente Fox expresses his enormous respect for minorities, whatever their racial, ethnic and religious origin. Their purpose was none other than to make clear the important that Mexican workers have in the development and progress of U.S. society."

So was it a lapse in language, or a lapse in judgment? While President Fox can't take his words back, what can or should he do next?

Jose Carreno is the Washington-based correspondent for the Mexico City daily, "El Universal." He joins us to talk about damage control.

Good to see you, Jose.

JOSE CARRENO, "EL UNIVERSAL: Good afternoon. PHILLIPS: Well, first of all, what's your first reaction to the remarks?

CARRENO: Silly is the only way I can put it. It's silly. I do believe that Mr. Fox is a racist. I do not believe that he was bad intentioned, but it's nonetheless silly.

PHILLIPS: So does he need to apologize? Is it necessary? Considering you may think this is silly, and this was lost in translation, but considering how sensitive of an issue this is, should he come out and publicly say, look, you didn't understand I said, this is what I meant, I'm sorry if I offended anybody?

CARRENO: I do agree with you, he needs to apologize. I mean, if you step on somebody's toes, to let me use that example, you ask for a -- you make an apology and say, hey, I'm not doing this anymore. I will not be destructive. In terms of this is much deeper, much harsher, much stronger, if want to put that way, and, yes, he needs to apologize publicly and say, hey, you know what, this is not what I want; this is not what I am. Mexico is not a racist country, and if you look at the Mexican press today, since yesterday, better said, there have been a lot of criticisms of President Fox.

PHILLIPS: How have all the Hispanic journalists been covering this story? I mean, can you make a comparison? Can you look at Spanish-speaking news organizations, newspapers, broadcasts and look at, say, CNN and other networks? Do you see difference?

CARRENO: There are small differences making allowances for difference of culture and difference of things, but I can quote my newspaper, the newspaper I work for. It was a front-page story in Sunday, yesterday. Another newspaper was a bit bolder, and they openly spoke of racism in terms of in front page. So in Mexico is and has been for the last two days a big story. Here, has been -- excuse me, here -- it appears to have been a bit more subdued in terms of print media.

PHILLIPS: Interesting. So the fact that he said blacks. He didn't say any other ethnicity. He didn't even just say Americans. Does that show that he does have some type of stereotype about African-Americans working in the U.S.? And -- or what do you think that does say about how he views blacks in America?

CARRENO: Look, there are several types in Mexico, Latin America I would say, the stereotype this case in Mexico. We do not have a real conscience of the problems of the black people, except by reference. Our images are mostly coming from the United States, from programs in the United States, from the U.S. history, although we have a very, very tiny minority of black people.

Now, having said that, in Mexico there is a stereotype about the African-Americans, and Africans in general, as a matter of fact. For us, they are mostly sport figures or artistic figures, meaning musician, et cetera, and people that has the harshest of the jobs, of labor. So there is a stereotype, yes. Is there deliberate problem, a deliberate expression of racism? I would argue with that. PHILLIPS: Sure.

I want to ask you, too, just real quickly, Jose, my final question, Jesse Jackson came out talking about Fox's comment as a stereotype, and he said, quote, it's a stereotype, and he says that most poor Americans not even black; they're white. Of course, this led us to the U.S. Census Bureau, and these are some numbers that we found. Raw numbers, yes. Jesse Jackson was definitely right, but when you talk about percentages of each ethnic group, it's interesting to see the number. Hispanic, 8 percent, with regard to the poverty rate. Black, 24 percent. Hispanic, 21 percent.

So do you think Fox is trying to say that, look, there is an issue, no matter what ethnicity. They're all hard workers, and if you look at all of these numbers, that needs to be recognized even more so that there is a gap, and we need to focus on how hard all of these individuals work.

CARRENO: Look, I believe and I think you have said it perfectly well, there is a gap in the U.S. society, there is a huge gap in the Mexican society in terms of this division of income between the -- let's say the most favored people and the less favored people.

But I do believe, though, that one of the problems that both Hispanics and African-Americans share is that, to a degree, there is trend to the disintegration of their families. And so they're suffering the most in this moment.

PHILLIPS: Jose Carreno is a Washington-based correspondent for "El Universal." We sure appreciate your time today. Thank you so much.

CARRENO: My pleasure.

PHILLIPS: Straight ahead, out of sight, but not out of mind. Funny man Dave Chappelle finally talking about his big disappearing act. We're going to dispel the rumors and find out why he really took off. That's next.

Plus, you think you're a big "Star Wars" fan. Well, bet you got nothing on this British buff.

(COMMERCIAL BREAK)

PHILLIPS: Well, it's been the biggest TV mystery since who killed J.R.? What the heck happened to comedy kingpin Dave Chappelle. Well, when he didn't show up to begin taping the third season of his wildly popular "Chappelle Show," rumors of the Chappelle no-show ran amuck.

Well, Dave has now surfaced, at least in print, to dispel some of the wilder speculation. Reporter Chris Farley talked to him for "Time" magazine.

(BEGIN VIDEO CLIP) CHRIS FARLEY "TIME" MAGAZINE: I don't think he had an emotional breakdown. I don't think he had a mental breakdown. I think he just wanted to take a break. You know, it was funny I was talking to him this whole time when all of these stories were running, saying he's partying to hard, that maybe he's in a mental institution, and here he was on the phone talking to me, saying, you know, none of this stuff was true.

Also we also had a reporter in South Africa go and talk to him, in person, face-to-face. Simon Robinson is a reporter there, our bureau chief in Johannesburg, just to verify more of this stuff, to see how the guy was doing. And he did not find a guy who was a mental case; he found a guy who was very sharp, still very funny, and now raring to get back into the game when he comes back to the States.

(END VIDEO CLIP)

PHILLIPS: Chappell is quoted as saying, he was so stressed out that he decided to, quote, "take a minute and pull a Flintstone," stop a speeding car by using my bare feet as brakes."

Well, the wait if finally over for Star Wars fans lucky enough to be at the Cannes Film Festival. Although the final installment of the George Lucas' space epic is not part of the competition, the stars were definitely aligned -- aligned up to get into the gala premiere anyway, unmasked celebs like Samuel L. Jackson and Natalie Portman spotted on the red carpet. Darth Vader also made the scene in full Death Star drag. Meanwhile, Wookies, Tuscan Raiders and just plain folks are risking deep-vein thrombosis in London as they plop themselves down to see all six star wars flicks in one sitting. Those tickets at $450 per seat sold out within minutes of going on sale.

When Jim Knight wants to use the force, he doesn't have to go far, thanks to a massive collection that he started when he was just a tender tot.

CNN's Amira Dorzen (ph) with a portrait of a mania and also a cautionary tale for parents. Be careful what you toss out of that toy box!

(BEGIN VIDEOTAPE)

AMIRA DORZEN (ph), CNN CORRESPONDENT (voice-over): At first glance, this looks like an average guy at work. Take a closer look, though, and you'll notice something odd. Princess Leia? Darth Vader? R2-D2? Not your average guy at all. He's Jim Knight, or Jim "Jedi" Knight to his friends. And never mind his office. Jim's home really gives the game away. It's like a museum, packed to the brim with "Star Wars" memorabilia. Age, 30, he's been collecting since he was 4.

JIM KNIGHT: This particular figure, my original figure from when I was a child. Boba Fett's quite a strange character in the Star Wars universe, because he was only briefly in "Empire Strikes Back." As a child, it would have roughly cost $2. Now you're looking probably about $400 or $500. DORZEN: "Star Wars" merchandising sales have generated around $9 billion with many individuals items costing thousands. The At-At is Jim's most expensive item. It set him back around $2000.

KNIGHT: It's hard to explain what the fascination with it is, really. All the collectibles, I mean, everything they're releasing now, with the replicas, are absolutely amazing, and they just keep you entwined in the users.

UNIDENTIFIED MALE: Your journey to the dark side.

DORZEN: Modern technology means toys can do far more than they could even a decade ago. Some items are almost as good as the real thing. High-tech toys, plus a flow of new movies over the years, has helped keep the "Star Wars" brand fresh. Experts say it explains why the merchandise continues to sell.

ANDY MILLIGAN, INTERBRAND: The main characters have become iconic, like Darth Vader, C-3P0, R2-D2. Though those characters have survived throughout, they've always introduced crowed new characters that kind of fit within that fantastical world, and, therefore, give a new generation of fans something of their own to grab hold of.

(BEGIN VIDEO CLIP)

UNIDENTIFIED ACTOR: Asteroids do not concern me, admiral. I want that ship!

(END VIDEO CLIP)

DORZEN: Serious collectors want to collect everything. Jim spent around $20,000. And even then, it's hard to know when to stop.

Amira Dorzen, CNN, London.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

PHILLIPS: We're just getting word here at CNN that jurors have reached a verdict in the murder trial of Alejandro Avila's murder trial. They have told the court that Avila should be executed for killing 5-year-old Samantha Runnion. You'll remember back in April that a jury convicted the factory worker of kidnapping and murdering 5-year-old Samantha Runnion. She's that Orange County girl whose 2002 death prompted outrage, heartbreak and stronger efforts to rescue abducted children.

She was Found here on the side of a roadway in Stanton, California, just outside of her home rather in Stanton, California, in this mountainous area, some 50 miles away. And you'll also remember that Avila had been acquitted of molesting two girls in 2001 in neighboring Riverside County. Today he is found guilty of murder and is scheduled to die for that crime.

(STOCK MARKET REPORT) PHILLIPS: Coming up in the second hour of live from, we're also going to talk about brothers in battle. Two American sailors serving in Iraq become good friends. Guess what? They discover they have a lot in common. Little did they know just how much.

LIVE FROM's hour of power begins right after this.

(COMMERCIAL BREAK)

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