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Terror Arrests; Jackson Clan; U.S., Iraqi Forces Search for Insurgents

Aired June 08, 2005 - 14:00   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.


KYRA PHILLIPS, CNN ANCHOR: Terror suspects nabbed. The FBI searches homes and makes an arrests in California. We're on the story.
Suspects in the disappearance of an American student in Aruba go to court. We've got the latest on the search for Natalee Holloway.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I know your mother's maiden name, I know your Social Security number. I know all of your bank account numbers. I possibly know your visa numbers or credit card numbers.

(END VIDEO CLIP)

PHILLIPS: So how does this man steal your secrets? He walks in the front door and just takes them.

From the CNN Center in Atlanta, I'm Kyra Phillips. This hour of CNN's LIVE FROM starts right now.

If anybody knows what became of an Alabama honor student in Aruba, where she is, how she is, how she got there, he or she still isn't saying. But two men believed to have something to do with Natalee Holloway's disappearance aren't going anywhere. It's now been nine-and-a-half days since Holloway's high school graduation trip ended in mystery. And despite two arrests, police can't say for sure foul play was involved.

In closed-door hearings, a judge today ruled Nick John and Abraham Jones can stay locked up a while longer without being formally charged, but one man's girlfriend says he couldn't possibly be guilty.

(BEGIN VIDEO CLIP)

CYNTHIA DE GRAF, JONES' GIRLFRIEND: We went to the soul beach festival together, me, Abraham, and my friend, Bernadine.

UNIDENTIFIED MALE: So you know he wasn't there.

DE GRAF: He was there. He was with me, he was with Bernadine.

We had picked up our daughter at my mom's, we went home. He was even sick. He got up in the morning and went to work. And they're going to put this on him? Come on.

(END VIDEO CLIP)

PHILLIPS: Well, officials haven't specified the potential charges, but Jones' attorney tells CNN they include kidnapping and murder. The search, meanwhile, for Natalee Holloway continues.

All eyes on Lodi, California. That is site of federal arrests that allegedly reveal a plot to kill Americans.

CNN's Chris Lawrence is on the "Security Watch."

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN CORRESPONDENT: Federal agents have arrested two U.S. citizens. They say Umer Hayat and his son, Hamid Hayat, lied to federal agents about involvement with terrorist activity. Federal agents have also raided several locations around the Lodi, California, area, including a mosque and two private homes.

Now, according to court documents, federal court documents showed that this investigation began more than a week ago when Hamid Hayat popped up on a no-fly list. He was eventually allowed to come into the United States, where FBI agents questioned him.

They say Hayat had first denied and then admitted that he attended an al Qaeda training camp in Pakistan, which he described as a place where people were trained on how to kill Americans, including receiving instructions on weapons and explosives, and sessions where photos of President Bush were pasted onto targets that trainees were then instructed to shoot at. Officials have accused Hamid of potentially targeting grocery stores and hospitals here in the United States.

Now, the other two men are imams, or spiritual leaders, of local mosques here in the area. Law enforcement sources tell CNN they were taken into custody on possible visa violations after meeting with the Hayats over the weekend. Now, when the family of one of the imams arrived back here in Lodi at the home where the imams live this morning, a friend said he just could just not see them being involved in any way with al Qaeda.

RAMZAN ALI, SUSPECT'S NEIGHBOR: We are very, very confident that they will be cleared, because we know Mr. (INAUDIBLE) for a few years, you know, like three or four years. And since he's been here, he's very involved with the community, not only Muslim community. He had a relationship (INAUDIBLE) Christians, Jews and all the neighbors. We had a very good relationship.

LAWRENCE: Now, law enforcement sources tell CNN that they are investigating others in this case and that there is the possibility of more arrests to come. They are investigating the possibility of a terrorist cell right here in northern California.

Chris Lawrence, CNN, Lodi, California.

(END VIDEOTAPE) PHILLIPS: Well, the Pentagon goes on full security alert today, but it's only a drill. Authorities will get a chance to test the response of emergency teams during Operation Gallant Fox III. The exercise is prompted in part by the anthrax scare at the Pentagon in March. At the time, security officials were concerned about the lack of coordination among the various military, federal, state and local teams.

CNN is committed to providing reliable coverage that affects your security. Stay tuned to CNN for the latest information day and night.

Other news "Across America" now.

In about three hours, the Senate is expected to hold its long- awaited vote on the nomination of California Judge Janice Rogers Brown. Democrats held up the president's nominee to the U.S. Circuit Court of Appeals in D.C. for two years. Critics argue Brown is too conservative and at times ignores the law in favor of her own political views.

Howard Dean says he has nothing to apologize for days after the Democratic Party chairman said that many Republicans don't make an honest living. Dean says this -- said this, rather, to a forum of journalists and minority leaders.

(BEGIN VIDEO CLIP)

HOWARD DEAN, CHAIRMAN, DNC: The Republicans are not very friendly to different kinds of people. They're a pretty monolithic party. They pretty much -- you know, they all behave the same and they all look the same, and they all -- you know, it's a pretty much white Christian party.

(END VIDEO CLIP)

PHILLIPS: Well, in his defense, Dean notes that he, too, is a white Christian, but says the GOP is too narrow in its scope.

Ah, it's just a gunshot wound. A shot to the leg wasn't enough to stop this pizza delivery man from making his delivers. Stefanelli was shot during a robbery attempt in Tampa, Florida, Saturday night. He talked to CNN's Soledad O'Brien about what happened.

(BEGIN VIDEO CLIP)

THOMAS STEFANELLI, PIZZA DELIVERY MAN: And that was what I told them when I got back to the shop. I said, "Two things. I want a raise and I want hazard pay," is what I told them when I got back.

SOLEDAD O'BRIEN, CNN ANCHOR: And he said?

STEFANELLI: He laughed about the raise and gave me $50 for hazard pay.

O'BRIEN: Wow. Was it worth it?

STEFANELLI: Eh, not really.

(END VIDEO CLIP)

PHILLIPS: Well, police say they have several suspects, but no arrests have been made.

The jury in the Michael Jackson case is back at work deliberating for a fourth day in the child molestation trial. As questions swirl over the pop star's fate, so do questions over the future of Jackson's children.

CNN's Rusty Dornin takes a look at the possibilities.

(BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): It's the big "what if?" If Michael Jackson gets convicted and goes to jail, what happens to his three children, Paris, Prince and Blanket? Will they be forced to leave Neverland? Child Protective Services will make that first call.

CRAIG SMITH, FMR. PROSECUTOR: They could take the children out of the home. The preference is to leave them with a family member, if possible. And I think there are several family members who would seem to be in the position to care for them, at least on a temporary basis, until it's finally decided by the juvenile court judge.

DORNIN: The identity of Blanket's mother, the youngest child Jackson dangled out of the window in Germany, has never been revealed. So far, she has not tried to assert any custody rights.

Debbie Rowe, the mother of Paris and Prince, has been battling for at least partial custody. Rowe recently regained her parental rights, rights she initially gave up after she split with Jackson. But a source close to the case says Rowe and Jackson want an arrangement for all three children that benefits everyone. Jackson's biographer says Rowe is not looking for full-time motherhood.

RANDI TARABORRELLI, JACKSON BIOGRAPHER: I don't think that Debbie Rowe has really expressed an interest in raising the children.

DORNIN: When it comes to the official line, a Jackson family attorney says the "what happens if" scenario is not in their vocabulary.

DEBORAH OPRI, JACKSON FAMILY ATTORNEY: I can assure you that no one is planning for the worst. Everyone's planning for the best.

DORNIN: Excerpts from a Daphne Barrack interview with Michael Jackson's father Joe in the "New York Daily News" quoted Jackson as saying, "It would be a pleasure to look after his grandchildren. Who else?" he said. "It's our job to do that. We don't mind."

That fits, says Jackson biographer.

TARABORRELLI: I believe the Jackson family would do everything in their power to keep Michael's kids. You know, they've got a big family, and it would be very easy to absorb Michael's three children into that family.

DORNIN (on camera): No matter who wants the kids, according to California law Child Protective Services will first do an investigation. If family members are found to be fit, and if there are no legal battles between Debbie Rowe and the Jackson's family, then a juvenile judge could decide to leave Prince, Paris and Blanket with Michael Jackson's family.

Rusty Dornin, CNN, Santa Maria, California.

PHILLIPS: Back overseas now, the sweep through Tal Afar continues. U.S. and Iraqi troops are searching for suspected insurgents in the northwestern Iraqi town. Our Jane Arraf is embedded with the American troops, joins us now with the latest. She's been bringing us a number of exclusive reports.

Jane, it looks like Iraqi informers are paying off.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Kyra, what we're seeing here is really very interesting and really key to getting this country back on its feet. Iraqis do seem increasingly to be providing information, particularly in the city where we went through the streets there, was a quick reaction force, responding to trouble and acting on tips from informers. And what we met were a series of Iraqis who said they were fed up, and not just fed up, distraught.

One woman told us she had five relatives who had been killed by the insurgents. Her husband was ready to point out where he believed they were.

Now, people are so desperately afraid. There are attacks here every day. In fact, the troop we were with, a roadside bomb hit one of their tanks. No one was injured, and that's the reason that they drive around in tanks and Bradleys in what is still quite a volatile city -- Kyra.

PHILLIPS: Now Jane, this reminds us a lot of Falluja and how the insurgents basically took that area over. But then Iraqis and U.S. troops came in and made quite an impact there. Do you see the same thing happening here, and do civilians say to you, we see a light at the end of the tunnel?

ARRAF: What they're seeing is more Iraqi army, which is a big part of this. The case for Falluja seems to get raised quite a bit here.

We were at a meeting where tribal leaders stood up and said, "Why can't we send in planes to bomb these people?" They really want a solution that's going to create the maximum effect. But what that would mean would be destroying parts of the city, as we saw happen in Falluja.

They're not doing that here. They're doing quite precise raids, precise strikes. Precise raids because they don't want to destroy the city. They've seen what happens when they do that.

It's a very slow process. It's a complicated process. But they're tackling it one insurgent and one house at a time -- Kyra.

PHILLIPS: And are the people living there, are they getting enough water and are they getting enough food?

ARRAF: It's very sad. Now, this has been a ghost town. When we've driven through these streets, parts of it have been entirely deserted.

The shops are shut. We've talked to Iraqis who have shops who haven't opened them for three months, they say.

There hasn't been any water for two weeks. The mothers are absolutely distraught. They can't bathe their children.

They try to get water from nearby wells and carry it back. There's no electricity in the daytime, and, Kyra, it is hot here. It was about 110 degrees here in the shade, and they have no electricity or fans or anything else. These people really are suffering -- Kyra.

PHILLIPS: Well, our Jane Arraf bringing us an exclusive look inside Tal Afar, Iraq, there. Great work, Jane. Thank you very much. We'll continue to check in with you.

Straight ahead, terror arrests in California. Some of many since September 11. But how many of these cases actually end up panning out? We're going to go in-depth straight ahead with our Kelli Arena.

And look at this item very closely. It's an old map that could bring a cool million at auction. We're going to show you why it's so special straight ahead.

(COMMERCIAL BREAK)

PHILLIPS: Well, the White House just came out with a revised economic forecast. Susan Lisovicz has the story now live from the New York Stock Exchange -- Susan.

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

PHILLIPS: "Now in the News," still in jail, a judge in Aruba rules there is enough evidence to continue holding two hotel security guards suspected in the disappearance of 18-year-old Natalee Holloway of Alabama. Nick John and Abraham Jones will be detained for another eight days.

A father and son, plus two Islamic leaders now terror suspects. The FBI arrested all four of them in Lodi, California, and agents are still searching their homes. They say the younger man attended an al Qaeda training camp. He and his father lied about it.

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 June 8, 2005 - 14:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Terror suspects nabbed. The FBI searches homes and makes an arrests in California. We're on the story.
Suspects in the disappearance of an American student in Aruba go to court. We've got the latest on the search for Natalee Holloway.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I know your mother's maiden name, I know your Social Security number. I know all of your bank account numbers. I possibly know your visa numbers or credit card numbers.

(END VIDEO CLIP)

PHILLIPS: So how does this man steal your secrets? He walks in the front door and just takes them.

From the CNN Center in Atlanta, I'm Kyra Phillips. This hour of CNN's LIVE FROM starts right now.

If anybody knows what became of an Alabama honor student in Aruba, where she is, how she is, how she got there, he or she still isn't saying. But two men believed to have something to do with Natalee Holloway's disappearance aren't going anywhere. It's now been nine-and-a-half days since Holloway's high school graduation trip ended in mystery. And despite two arrests, police can't say for sure foul play was involved.

In closed-door hearings, a judge today ruled Nick John and Abraham Jones can stay locked up a while longer without being formally charged, but one man's girlfriend says he couldn't possibly be guilty.

(BEGIN VIDEO CLIP)

CYNTHIA DE GRAF, JONES' GIRLFRIEND: We went to the soul beach festival together, me, Abraham, and my friend, Bernadine.

UNIDENTIFIED MALE: So you know he wasn't there.

DE GRAF: He was there. He was with me, he was with Bernadine.

We had picked up our daughter at my mom's, we went home. He was even sick. He got up in the morning and went to work. And they're going to put this on him? Come on.

(END VIDEO CLIP)

PHILLIPS: Well, officials haven't specified the potential charges, but Jones' attorney tells CNN they include kidnapping and murder. The search, meanwhile, for Natalee Holloway continues.

All eyes on Lodi, California. That is site of federal arrests that allegedly reveal a plot to kill Americans.

CNN's Chris Lawrence is on the "Security Watch."

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN CORRESPONDENT: Federal agents have arrested two U.S. citizens. They say Umer Hayat and his son, Hamid Hayat, lied to federal agents about involvement with terrorist activity. Federal agents have also raided several locations around the Lodi, California, area, including a mosque and two private homes.

Now, according to court documents, federal court documents showed that this investigation began more than a week ago when Hamid Hayat popped up on a no-fly list. He was eventually allowed to come into the United States, where FBI agents questioned him.

They say Hayat had first denied and then admitted that he attended an al Qaeda training camp in Pakistan, which he described as a place where people were trained on how to kill Americans, including receiving instructions on weapons and explosives, and sessions where photos of President Bush were pasted onto targets that trainees were then instructed to shoot at. Officials have accused Hamid of potentially targeting grocery stores and hospitals here in the United States.

Now, the other two men are imams, or spiritual leaders, of local mosques here in the area. Law enforcement sources tell CNN they were taken into custody on possible visa violations after meeting with the Hayats over the weekend. Now, when the family of one of the imams arrived back here in Lodi at the home where the imams live this morning, a friend said he just could just not see them being involved in any way with al Qaeda.

RAMZAN ALI, SUSPECT'S NEIGHBOR: We are very, very confident that they will be cleared, because we know Mr. (INAUDIBLE) for a few years, you know, like three or four years. And since he's been here, he's very involved with the community, not only Muslim community. He had a relationship (INAUDIBLE) Christians, Jews and all the neighbors. We had a very good relationship.

LAWRENCE: Now, law enforcement sources tell CNN that they are investigating others in this case and that there is the possibility of more arrests to come. They are investigating the possibility of a terrorist cell right here in northern California.

Chris Lawrence, CNN, Lodi, California.

(END VIDEOTAPE) PHILLIPS: Well, the Pentagon goes on full security alert today, but it's only a drill. Authorities will get a chance to test the response of emergency teams during Operation Gallant Fox III. The exercise is prompted in part by the anthrax scare at the Pentagon in March. At the time, security officials were concerned about the lack of coordination among the various military, federal, state and local teams.

CNN is committed to providing reliable coverage that affects your security. Stay tuned to CNN for the latest information day and night.

Other news "Across America" now.

In about three hours, the Senate is expected to hold its long- awaited vote on the nomination of California Judge Janice Rogers Brown. Democrats held up the president's nominee to the U.S. Circuit Court of Appeals in D.C. for two years. Critics argue Brown is too conservative and at times ignores the law in favor of her own political views.

Howard Dean says he has nothing to apologize for days after the Democratic Party chairman said that many Republicans don't make an honest living. Dean says this -- said this, rather, to a forum of journalists and minority leaders.

(BEGIN VIDEO CLIP)

HOWARD DEAN, CHAIRMAN, DNC: The Republicans are not very friendly to different kinds of people. They're a pretty monolithic party. They pretty much -- you know, they all behave the same and they all look the same, and they all -- you know, it's a pretty much white Christian party.

(END VIDEO CLIP)

PHILLIPS: Well, in his defense, Dean notes that he, too, is a white Christian, but says the GOP is too narrow in its scope.

Ah, it's just a gunshot wound. A shot to the leg wasn't enough to stop this pizza delivery man from making his delivers. Stefanelli was shot during a robbery attempt in Tampa, Florida, Saturday night. He talked to CNN's Soledad O'Brien about what happened.

(BEGIN VIDEO CLIP)

THOMAS STEFANELLI, PIZZA DELIVERY MAN: And that was what I told them when I got back to the shop. I said, "Two things. I want a raise and I want hazard pay," is what I told them when I got back.

SOLEDAD O'BRIEN, CNN ANCHOR: And he said?

STEFANELLI: He laughed about the raise and gave me $50 for hazard pay.

O'BRIEN: Wow. Was it worth it?

STEFANELLI: Eh, not really.

(END VIDEO CLIP)

PHILLIPS: Well, police say they have several suspects, but no arrests have been made.

The jury in the Michael Jackson case is back at work deliberating for a fourth day in the child molestation trial. As questions swirl over the pop star's fate, so do questions over the future of Jackson's children.

CNN's Rusty Dornin takes a look at the possibilities.

(BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): It's the big "what if?" If Michael Jackson gets convicted and goes to jail, what happens to his three children, Paris, Prince and Blanket? Will they be forced to leave Neverland? Child Protective Services will make that first call.

CRAIG SMITH, FMR. PROSECUTOR: They could take the children out of the home. The preference is to leave them with a family member, if possible. And I think there are several family members who would seem to be in the position to care for them, at least on a temporary basis, until it's finally decided by the juvenile court judge.

DORNIN: The identity of Blanket's mother, the youngest child Jackson dangled out of the window in Germany, has never been revealed. So far, she has not tried to assert any custody rights.

Debbie Rowe, the mother of Paris and Prince, has been battling for at least partial custody. Rowe recently regained her parental rights, rights she initially gave up after she split with Jackson. But a source close to the case says Rowe and Jackson want an arrangement for all three children that benefits everyone. Jackson's biographer says Rowe is not looking for full-time motherhood.

RANDI TARABORRELLI, JACKSON BIOGRAPHER: I don't think that Debbie Rowe has really expressed an interest in raising the children.

DORNIN: When it comes to the official line, a Jackson family attorney says the "what happens if" scenario is not in their vocabulary.

DEBORAH OPRI, JACKSON FAMILY ATTORNEY: I can assure you that no one is planning for the worst. Everyone's planning for the best.

DORNIN: Excerpts from a Daphne Barrack interview with Michael Jackson's father Joe in the "New York Daily News" quoted Jackson as saying, "It would be a pleasure to look after his grandchildren. Who else?" he said. "It's our job to do that. We don't mind."

That fits, says Jackson biographer.

TARABORRELLI: I believe the Jackson family would do everything in their power to keep Michael's kids. You know, they've got a big family, and it would be very easy to absorb Michael's three children into that family.

DORNIN (on camera): No matter who wants the kids, according to California law Child Protective Services will first do an investigation. If family members are found to be fit, and if there are no legal battles between Debbie Rowe and the Jackson's family, then a juvenile judge could decide to leave Prince, Paris and Blanket with Michael Jackson's family.

Rusty Dornin, CNN, Santa Maria, California.

PHILLIPS: Back overseas now, the sweep through Tal Afar continues. U.S. and Iraqi troops are searching for suspected insurgents in the northwestern Iraqi town. Our Jane Arraf is embedded with the American troops, joins us now with the latest. She's been bringing us a number of exclusive reports.

Jane, it looks like Iraqi informers are paying off.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Kyra, what we're seeing here is really very interesting and really key to getting this country back on its feet. Iraqis do seem increasingly to be providing information, particularly in the city where we went through the streets there, was a quick reaction force, responding to trouble and acting on tips from informers. And what we met were a series of Iraqis who said they were fed up, and not just fed up, distraught.

One woman told us she had five relatives who had been killed by the insurgents. Her husband was ready to point out where he believed they were.

Now, people are so desperately afraid. There are attacks here every day. In fact, the troop we were with, a roadside bomb hit one of their tanks. No one was injured, and that's the reason that they drive around in tanks and Bradleys in what is still quite a volatile city -- Kyra.

PHILLIPS: Now Jane, this reminds us a lot of Falluja and how the insurgents basically took that area over. But then Iraqis and U.S. troops came in and made quite an impact there. Do you see the same thing happening here, and do civilians say to you, we see a light at the end of the tunnel?

ARRAF: What they're seeing is more Iraqi army, which is a big part of this. The case for Falluja seems to get raised quite a bit here.

We were at a meeting where tribal leaders stood up and said, "Why can't we send in planes to bomb these people?" They really want a solution that's going to create the maximum effect. But what that would mean would be destroying parts of the city, as we saw happen in Falluja.

They're not doing that here. They're doing quite precise raids, precise strikes. Precise raids because they don't want to destroy the city. They've seen what happens when they do that.

It's a very slow process. It's a complicated process. But they're tackling it one insurgent and one house at a time -- Kyra.

PHILLIPS: And are the people living there, are they getting enough water and are they getting enough food?

ARRAF: It's very sad. Now, this has been a ghost town. When we've driven through these streets, parts of it have been entirely deserted.

The shops are shut. We've talked to Iraqis who have shops who haven't opened them for three months, they say.

There hasn't been any water for two weeks. The mothers are absolutely distraught. They can't bathe their children.

They try to get water from nearby wells and carry it back. There's no electricity in the daytime, and, Kyra, it is hot here. It was about 110 degrees here in the shade, and they have no electricity or fans or anything else. These people really are suffering -- Kyra.

PHILLIPS: Well, our Jane Arraf bringing us an exclusive look inside Tal Afar, Iraq, there. Great work, Jane. Thank you very much. We'll continue to check in with you.

Straight ahead, terror arrests in California. Some of many since September 11. But how many of these cases actually end up panning out? We're going to go in-depth straight ahead with our Kelli Arena.

And look at this item very closely. It's an old map that could bring a cool million at auction. We're going to show you why it's so special straight ahead.

(COMMERCIAL BREAK)

PHILLIPS: Well, the White House just came out with a revised economic forecast. Susan Lisovicz has the story now live from the New York Stock Exchange -- Susan.

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

PHILLIPS: "Now in the News," still in jail, a judge in Aruba rules there is enough evidence to continue holding two hotel security guards suspected in the disappearance of 18-year-old Natalee Holloway of Alabama. Nick John and Abraham Jones will be detained for another eight days.

A father and son, plus two Islamic leaders now terror suspects. The FBI arrested all four of them in Lodi, California, and agents are still searching their homes. They say the younger man attended an al Qaeda training camp. He and his father lied about it.

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