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Two Officer Deaths in Tikrit Investigated; New Justice Department Report Criticizes FBI's Pre-9/11 Counter-Terrorism Efforts; Tropical Storm Arlene Heads for Coast; More Details Revealed of Suspects in Aruba Disappearance; Jurors Deliberate Tyco Trial
Aired June 10, 2005 - 13:00 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.
TONY HARRIS, HOST: Live pictures from the Florida coast, where the surf churns and Tropical Storm Arlene threatens. We're tracking it for you.
A criminal investigation into the deaths of two American soldiers in Tikrit, Iraq. We're live from the Pentagon with this developing story.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: All the way.
(END VIDEO CLIP)
HARRIS: Wow, tornadoes caught on tape, some amazing video from storm chasers. You'll see more of it this hour.
And do-it-yourself teeth whitening. Could efforts to brighten your smile actually end up ruining it?
From the CNN Center in Atlanta, I'm Tony Harris. Kyra Phillips and Miles O'Brien are off. CNN's LIVE FROM starts right now.
Hostile fire, apparently enemy fire, maybe not. U.S. forces in Iraq have launched a criminal investigation into what had seemed to be an insurgent mortar attack that killed two officers near Tikrit.
CNN's Barbara Starr has the latest -- Barbara.
BARBARA STARR, CNN CORRESPONDENT: Tony, this word just really developing at the Pentagon within the last couple of hours.
It was Tuesday night when there was said to be an indirect fire attack against the military base in Tikrit. Two U.S. Army officers killed inside a building where they were. Now, an indirect fire attack means insurgent mortar or rockets.
But today, the U.S. military said, no, it has now opened a criminal investigation into the matter. Investigators looking at the aftermath of that attack said the blast pattern and other evidence they collected at the scene no longer indicates it was an enemy mortar attack.
They are not saying exactly what they think it is, but they did open a criminal investigation, and certainly, sources say, one possibility on the table is that it was indeed a deliberate act, possibly by other U.S. military personnel or people on the base at the time.
Of course, they will look at all the potential options, including the possibility of an accident, but it should be emphasized they have now opened a criminal investigation into this matter. The families of the two officers involved have been notified of this. One of the officers was a company commander. The other one was the company operations officer -- Tony.
HARRIS: OK, Barbara. And I know you'll be following this closely for us and will get back to us with the latest developments. We appreciate it. Barbara Starr at the Pentagon.
STARR: Thanks.
HARRIS: Thank you.
Engagement, estrangement, incentives, preventives, all tools of the diplomatic trade, all on the table as President Bush hosts the president of South Korea for a visit dealing mostly with North Korea. Roh Moo-Hyun comes at a delicate point in the nuclear face off with Pyongyang. We'll get a live report from the White House later this hour.
Earlier today, Mr. Bush paid a call on the brand new National Counter-Terrorism Center. He used the occasion to remind Congress he really wants expiring provisions of the Patriot Act to be made permanent.
Counter-terror efforts pre-9/11 have been the targets of studies, scorn, even ridicule, and now the FBI is taking flack for not stopping two of the 9/11 hijackers, despite having numerous opportunities, in a newly published report from the Justice Department's own inspector general.
And we get the details from CNN's national security correspondent, David Ensor.
(BEGIN VIDEOTAPE)
DAVID ENSOR, CNN CORRESPONDENT: The report details at least five opportunities missed by the FBI in the months before 9/11 to find two of the hijackers, Nawaf Alhazmi and Khalid Almihdhar, who lived for a time in San Diego, California.
It says the FBI counter-terrorism efforts prior to the attacks suffered from bureaucratic obstacles, communications breakdowns and that the FBI had no sense of the urgency of the matter.
The report is massive; it's nearly 400 pages. And that's after 150 pages or so were removed, redacted on orders from the judge in the case of Zacarias Moussaoui, who's been accused of al Qaeda membership and suspected of involvement in the plot. It says at least one FBI agent did know that Alhazmi and Almihdhar had visas to enter the United States but that his supervisor at the CIA's counter-terrorism center told him not to distribute that information generally in the FBI.
The report's description of a series of bungled opportunities could raise questions among policymakers in Washington about the wisdom of leaving the FBI with the job of counterterrorism intelligence gathering in the United States as well as law enforcement. Some argue the United States needs a separate domestic intelligence agency, though there are serious civil liberties concerns about such a move.
The report also notes that some FBI agents who knew that a number of Middle Eastern men were taking flight training were concerned that the issue of racial profiling by law enforcement had become so hot that they could not safely pursue their suspicions about those would- be pilots.
David Ensor, CNN, Washington.
(END VIDEOTAPE)
HARRIS: And this just in to CNN, confirmation of a roadside bomb attack yesterday in Iraq. Now, the roadside bomb killed five Marines in the Iraqi town of Haqlaniyah. This was yesterday, and the Marines were assigned to the Regimental Combat Team 2, 2nd Marine Division, the 2nd Marine Expeditionary Force. They were killed when their vehicle struck an explosive device while conducting combat operations.
This just in to CNN. To repeat once again, confirmation that the roadside bomb attack in H Haqlaniyah yesterday killed five Marines. Those Marines were killed when their vehicle was struck by a roadside device.
How mean is Arlene? That's what the Keys want to know and the Gulf Coast wants to know and the Mississippi Valley wants to know as the first tropical storm of the season churns past the western tip of Cuba. Arlene has strengthened in the past few hours, and forecasters say it may become a hurricane before it comes ashore sometime tomorrow.
CNN's John Zarrella is watching the storm from a blustery, windy Miami -- John.
JOHN ZARRELLA, CNN CORRESPONDENT: Yes, fortunate in one regard. We're on the east coast. The storm is out in the Gulf on the west coast.
I'm standing up here on the lifeguard stand at Haulover Beach, Florida, which is the northern end of Miami-Dade County. You can see the -- the American flag there, blowing stiffly in the breeze.
It -- the wind has been steadily picking up here the last couple of hours. We had a squall line move through, feeder bands, a little bit of heavy rain. It's been like this all morning and now into the afternoon here. And it has already become a very treacherous and deadly storm, Arlene.
Earlier this morning, down on South Beach, about 10, 15 miles south of here, there were several people in that water out there. And a couple of them, one woman was caught out there in the undertow, and another woman went in to try and rescue her, and both of them got stuck. By the time fire rescue and the lifeguards were able to get through to the two of them, the first woman that went in the water, her lungs were filled with water, and she was later pronounced dead. So one victim already from Tropical Storm Arlene, at least indirectly responsible for that death.
In fact, the fire rescue team that went in the water to try and get those two ladies out had themselves to be rescued by a Coast Guard boat because of the terrible, terrible rip currents out here.
Now there are several surfers that are actually out here and more of them arriving every few minutes here. This is, you know, as the surfers say, great weather for them. It's being discouraged by the lifeguards here, but there's really not much they can do, Tony, to keep the folks out of the water, that is at least the surfers.
HARRIS: Yes.
ZARRELLA: They're keeping swimmers away from the beach as best they can. Again, they're warning everyone, stay out of the water. It's not the place to be today -- Tony.
HARRIS: Please, heed the warnings. OK, John, we appreciate it. John Zarrella, reporting from Miami in the middle of Tropical Storm Arlene. Thank you, John.
CNN meteorologist Jill Brown is looking at the big picture from our weather center -- Jill.
JILL BROWN, CNN METEOROLOGIST: Tony, as kids we loved that rough water when tropical systems were coming. So I understand the appeal, but it is dangerous.
This is a look at Florida and how much rain we've had. Now it wasn't raining where we saw John Zarrella. You can see over here where the yellow and orange is, we have already had over three inches of rain. And we've got a long way to go on this one.
It's moving to the north about 13 miles per hour, which is a pretty decent speed. That's good news. As long as it keeps moving, not one spot is going to get stuck with rain for several days. That's where you could really see some problems.
So you notice that it's increased in strength, up to 60 mile per hour winds now. Our next update comes in about an hour. Will we see any strengthening? It's possible. As it gets out into the Gulf of Mexico, it is expected to get into a favorable area for development. So we should see this one gaining some gradual strength through the next about 24 hours before it gets a chance to make landfall, at which point, obviously, it will diminish. So it could get up to 70 mile-an-hour winds. That's the forecast. That keeps it just below hurricane strength, although that could change in the next 24 hours. If it does gain enough strength and become a hurricane, we think it would only be a minimal hurricane before coming in over land and then diminishing.
This is the forecast for Sunday morning, so by that time it should be down to 35 mile-per-hour winds, dissipating but still a rain event for another 24 hours thereafter.
So there are hurricane watches in effect, meaning folks need to prepare for the possibility of a landfalling hurricane, from Panama City to the Pearl River inlet. And we also, of course, have the tropical storm warnings that are in effect. We'll most likely see tropical storm force winds but perhaps not hurricane force winds.
Storm surge not a big deal. Strong winds with some damage, but the big threat with this, Tony, is going to be the rain. And we could see some spots get as much as seven inches of rain. And we've had a lot of rain the last couple of weeks. So that's going to be the big issue.
Back to you.
HARRIS: That means all kinds of flooding problems.
OK, Jill. We appreciate it. Thank you.
Well, this isn't just the beginning of hurricane season. In the heartland, this is the heart of tornado season.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I'm on the ground at the same time.
UNIDENTIFIED MALE: We're in Trego County, June 9, 2005.
(END VIDEO CLIP)
HARRIS: Boy, look at this. These Kansas twisters caused a little damage and turned a few heads, but we have no reports, thankfully, of anyone being hurt.
What happened to Natalee Holloway after 2 a.m. May 30 is still an absolute mystery. But now we know a little bit more of what happened on May 29.
Authorities in Aruba say the vacationing Alabama honor student met the teen you see behind me right here, Joran Van Der Sloot, in a casino, hours before she left a night spot with him and two other teens who happen to be brothers. These pictures are from Van Der Sloot's own web site. The teens and two older men are being held today while investigators sort through, and we quote, "all options and all scenarios."
CNN's Karl Penhaul has our report. (BEGIN VIDEOTAPE)
KARL PENHAUL, CNN CORRESPONDENT (voice-over): In handcuffs, a towel draped over his head, this is one of three new suspects police arrested in the hunt for Natalee Holloway. In total, five men are now in custody, but there's no sign of the missing teenager, no clue whether she's alive or dead.
KARIN JANSSEN, CHIEF PROSECUTOR: At this stage we can't say what we are presuming at this moment. We have too little details to say. All options are open.
PENHAUL: Natalee drove away from Carlos 'n Charlie's bar in the wee hours of May 30 with the three teenagers now held in police cells, according to their own statements. Police said she'd met 17-year-old Joran Van Der Sloot, the son of an island justice official, at the Holiday Inn where Natalee was staying, a day before she disappeared.
JAN VAN DER STRATEN, POLICE COMMISSIONER: They meet each other in the casino.
UNIDENTIFIED FEMALE: That day?
VAN DER STRATEN: The day before.
PENHAUL: The two other men detained Thursday are brothers, Satish and Deepak Kalpoe. There's been no statement yet on their behalf.
The other suspects, detained at the weekend, are security guards. Their defense attorneys insist they had nothing to do with Natalee's disappearance.
Police previously interviewed the teenagers but waited until Thursday, 11 days after Natalee's disappearance, to arrest them. They confiscated property, including a car and a computer.
JANSSEN: It is because of tactical -- tactical reasons we didn't do that at another moment.
PENHAUL: Relatives of the first two suspects fear wealth and race issues may cloud the investigation.
ALVIN CORNET, SUSPECT'S COUSIN: And it's something money-wise, who's rich and who's poor.
PENHAUL: That's Nicky John, one of the first two suspects detained, from a black immigrant family from the poorer east end of Aruba. That's Van Der Sloot, from an influential family from the richer west end. Prosecutors say evidence, not prejudice will be the key.
JANSSEN: Suspicion of a suspect has nothing to do with the color of his skin. It has to do with the results of the investigation, if there are grounds for suspicion.
PENHAUL: Karl Penhaul, CNN, Palm Beach, Aruba.
(END VIDEOTAPE)
HARRIS: The mighty Mississippi, hundreds of miles of wide open river and an unguarded target for terror. A "CNN Security Watch" ahead on LIVE FROM.
And just ahead, awaiting a verdict on the Tyco scandal. We'll talk corporate corruption with the Dolans, unscripted.
ANNOUNCER: You're watching LIVE FROM on CNN, the most trusted name in news.
(COMMERCIAL BREAK)
HARRIS: Well, you know the companies, WorldCom, Tyco, Enron. Some have gone belly up; others are reorganizing in the wake of corporate corruption. It's led to lawsuits and trials, one of which could see a verdict today. Ready to speak about all of it, the Dolans, Ken and Daria, as always, unscripted.
Good to see you both, as always. There you are.
KEN DOLAN, CO-HOST, "DOLANS UNSCRIPTED": Hello, Tony.
DARIA DOLAN, CO-HOST, "DOLANS UNSCRIPTED": You, too, Tony.
K. DOLAN: How are you?
HARRIS: I am -- I am fabulous. And you know, I guess I want to start with Dennis Kozlowski. And if you would...
K. DOLAN: Who's he? I never heard of him.
HARRIS: Exactly, the CEO of Tyco. OK, you with me? You with me, Ken?
K. DOLAN: OK. Thank you, Tony.
HARRIS: Remind us all of who he is and the troubles he found himself and his company in.
K. DOLAN: You know what I'll do, Tony? If you don't mind, first I'm going to quote from Mark Twain, because it leads me right to it.
HARRIS: Please.
DOLAN: Mark Twain said, "We have the greatest criminal jury system in America, but its efficiency is marred only by the difficulty of finding 12 men who know nothing and can't read." And that relates directly to the complexity of the Tyco situation.
D. DOLAN: Which is why the average American only knows Dennis Kozlowski, Tony, for $6,000 shower curtains.
HARRIS: Right. D. DOLAN: And a party in Sardinia that cost a couple of million dollars.
K. DOLAN: There were some cute guys there, though.
D. DOLAN: Because -- no, but here's the problem. Because of the complexity of all of these financial cases...
HARRIS: Yes.
D. DOLAN: ... and the lack of ability to put financial people on the juries, for whatever reason, mostly because they have important jobs and can't take as much time.
K. DOLAN: You're talking a year. You're talking months away from your job.
D. DOLAN: They are forced to become, on the prosecution side, a have versus have-not type of prosecution...
HARRIS: I see.
D. DOLAN: ... pointing out this rather than the complexities of what was involved and how shareholders and employees took losses.
HARRIS: Daria, but we're talking about -- yes, we're not talking about a smoking gun here that everyone can easily and readily understand. We're not talking about DNA. We're not talking about...
K. DOLAN: Wait, Tony.
HARRIS: Yes.
K. DOLAN: Tony Harris, wait a minute. Tony.
HARRIS: Yes.
K. DOLAN: If it takes the government, and I'm not being disrespectful.
HARRIS: No, no, no. I know.
K. DOLAN: But if it -- well, I might be slightly. If it takes the government two years to mount, with the best -- with the best CPAs, the best lawyers, to mount -- two years to get it all together, between a $12 million cost, 480 witnesses in the Tyco case, 700 exhibits, 12,000 pages of testimony and 32 different charges to sift through, it's like (makes noise). I'm a juror, I'm glazed over.
D. DOLAN: You know, and in the case of Tyco, the first time around it ended in a mistrial, because people just couldn't understand it, which cost taxpayers $12 million. And now we have word from the jury yesterday, "Do we have to reach a unanimous decision on all the charges?" Duh.
HARRIS: Right, right. K. DOLAN: There's only one solution to this complexity.
HARRIS: Well, what is it? Please, help me.
K. DOLAN: Well, now that you've asked I'm going to tell you. And here it is, Tony, and that is I think, like as in some countries, not many, the jury should be allowed during the course of the trial -- now I'll admit, it will extend the time these things take -- but the jurors should be able to ask questions as it goes.
I cannot remember on January 2, Tony, a complex detail in April -- on April 12.
HARRIS: I see. Yes.
K. DOLAN: I can't do it. It's too much. And so what happens is a mistrial, which is what the defense goes for, at least, if not a not guilty, a mistrial is effectively a success, because it's very hard to mount a trial.
HARRIS: But wait a minute. You know, prosecutors have a responsibility here to try a clean, precise case that is easily...
K. DOLAN: Yes.
HARRIS: Their job is to tell a compelling story. And maybe if these juries are being hung the way they are, maybe they're taking the time that they're taking to come back with any kind of a verdict at all, maybe that says something about the work that prosecutors are doing on these cases and the merits of the cases themselves.
D. DOLAN: But -- yes, but in fairness to the prosecutors, if you are trying to explain complex accounting procedures to people who have never taken accounting, it's going to be a virtually impossible job, Tony.
HARRIS: How are you going to get a jury of peers?
D. DOLAN: Which is why the -- my solution to this whole situation, in these complex financial cases is -- because look at Enron. The chances of a jury getting that are going to be absolutely slim to none no matter how long it takes to set it up...
K. DOLAN: With all the publicity.
D. DOLAN: ... because Wall Street didn't understand Enron's business.
HARRIS: Right.
D. DOLAN: They need to have it heard by judges or solely by people from the industry.
K. DOLAN: Who understand it.
D. DOLAN: If we can't trust the people in the industry to come up with a fair verdict, then maybe we don't need the industry at all.
HARRIS: Well, Ken, you're not going to get a jury of peers here.
K. DOLAN: No. No, no.
HARRIS: But if the case is detailed simply enough, I mean, we got a conviction with Bernie Ebbers.
K. DOLAN: Yes, but Tony -- Tony, it's hard to do that. Tony, you're right. You're saying the prosecution has -- has an obligation to present it as simply as it can. But Tony, when you're talking 12,000 pages of testimony, 700 exhibits -- I'm back to my old pitch here -- 48 witnesses, it is just simply hard to do. These are complex issues.
As I said before, Tony, if it takes my gang two years to figure out if there's even a case against somebody...
HARRIS: Right.
K. DOLAN: ... do you think a prosecution is going to explain it to people who don't know one end of a ledger -- a debit from a credit? It's not going to happen. And it is skewed on to the defense. Period.
HARRIS: Wow.
K. DOLAN: Eyes glaze over. It's over.
HARRIS: All right. We're going to leave it there. Daria, do you want a last word very quickly?
D. DOLAN: No, because I was going to start on the Scrushy trial, which is another...
HARRIS: That's a whole...
D. DOLAN: He'll get off. You mark my words. And it's a brilliant defense that's been launched.
HARRIS: OK. Let's leave it there.
K. DOLAN: We love you, Tony.
HARRIS: Love you, too. Ken and Daria, "DOLANS UNSCRIPTED." The show is on Saturday, Saturday morning, 10 a.m. Eastern, right here on CNN. We'll be right back.
D. DOLAN: Thanks.
(BEGIN VIDEO CLIP)
HARRIS (voice-over): Next on LIVE FROM...
UNIDENTIFIED FEMALE: Whiter teeth after just three days.
HARRIS: The trays, the gels, the strips. Will efforts to whiten your teeth actually harm them?
And...
UNIDENTIFIED FEMALE: We just can't go through this again.
HARRIS: Anxious residents and churning surf. We're tracking Tropical Storm Arlene.
Also ahead...
UNIDENTIFIED MALE: We believe that as Africans we've got much to celebrate.
HARRIS: Africa comes to America, or at least to your television. The LIVE FROM interview.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
BROWN: I'm Jill Brown in the CNN Weather Center.
We have a tornado warning in effect now in the Florida Keys. This is a tornado actually reported on the ground in Matacomby (ph) Key, at mile marker 76, moving toward Plantation Key and Winley (ph) Key. And that is actually a tornado on the ground.
I want to show you where that it. You can see this band here coming up through the Keys. So with this cell coming through right here.
And then over Florida Bay, another cell that's coming up here to rural Monroe County now. There's another warning. This is a Doppler indicated tornado warning for -- moving towards southern mainland, Monroe County, southeastern, southern and central in rural areas there.
But in the Keys now, a tornado reported on the ground. This is not unusual with a tropical system to have tornadoes spawn. So we're most likely going to see more of this as the afternoon wears on, Tony. More severe weather possible.
HARRIS: Appreciate it. All right. Appreciate it. Thank you.
Enron's investors lost billions when the energy trader collapsed. But now they could get some money back. Kathleen Hays has the story live from the New York Stock Exchange.
Hi, Kathleen.
(STOCK REPORT)
(COMMERCIAL BREAK)
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Aired June 10, 2005 - 13:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, HOST: Live pictures from the Florida coast, where the surf churns and Tropical Storm Arlene threatens. We're tracking it for you.
A criminal investigation into the deaths of two American soldiers in Tikrit, Iraq. We're live from the Pentagon with this developing story.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: All the way.
(END VIDEO CLIP)
HARRIS: Wow, tornadoes caught on tape, some amazing video from storm chasers. You'll see more of it this hour.
And do-it-yourself teeth whitening. Could efforts to brighten your smile actually end up ruining it?
From the CNN Center in Atlanta, I'm Tony Harris. Kyra Phillips and Miles O'Brien are off. CNN's LIVE FROM starts right now.
Hostile fire, apparently enemy fire, maybe not. U.S. forces in Iraq have launched a criminal investigation into what had seemed to be an insurgent mortar attack that killed two officers near Tikrit.
CNN's Barbara Starr has the latest -- Barbara.
BARBARA STARR, CNN CORRESPONDENT: Tony, this word just really developing at the Pentagon within the last couple of hours.
It was Tuesday night when there was said to be an indirect fire attack against the military base in Tikrit. Two U.S. Army officers killed inside a building where they were. Now, an indirect fire attack means insurgent mortar or rockets.
But today, the U.S. military said, no, it has now opened a criminal investigation into the matter. Investigators looking at the aftermath of that attack said the blast pattern and other evidence they collected at the scene no longer indicates it was an enemy mortar attack.
They are not saying exactly what they think it is, but they did open a criminal investigation, and certainly, sources say, one possibility on the table is that it was indeed a deliberate act, possibly by other U.S. military personnel or people on the base at the time.
Of course, they will look at all the potential options, including the possibility of an accident, but it should be emphasized they have now opened a criminal investigation into this matter. The families of the two officers involved have been notified of this. One of the officers was a company commander. The other one was the company operations officer -- Tony.
HARRIS: OK, Barbara. And I know you'll be following this closely for us and will get back to us with the latest developments. We appreciate it. Barbara Starr at the Pentagon.
STARR: Thanks.
HARRIS: Thank you.
Engagement, estrangement, incentives, preventives, all tools of the diplomatic trade, all on the table as President Bush hosts the president of South Korea for a visit dealing mostly with North Korea. Roh Moo-Hyun comes at a delicate point in the nuclear face off with Pyongyang. We'll get a live report from the White House later this hour.
Earlier today, Mr. Bush paid a call on the brand new National Counter-Terrorism Center. He used the occasion to remind Congress he really wants expiring provisions of the Patriot Act to be made permanent.
Counter-terror efforts pre-9/11 have been the targets of studies, scorn, even ridicule, and now the FBI is taking flack for not stopping two of the 9/11 hijackers, despite having numerous opportunities, in a newly published report from the Justice Department's own inspector general.
And we get the details from CNN's national security correspondent, David Ensor.
(BEGIN VIDEOTAPE)
DAVID ENSOR, CNN CORRESPONDENT: The report details at least five opportunities missed by the FBI in the months before 9/11 to find two of the hijackers, Nawaf Alhazmi and Khalid Almihdhar, who lived for a time in San Diego, California.
It says the FBI counter-terrorism efforts prior to the attacks suffered from bureaucratic obstacles, communications breakdowns and that the FBI had no sense of the urgency of the matter.
The report is massive; it's nearly 400 pages. And that's after 150 pages or so were removed, redacted on orders from the judge in the case of Zacarias Moussaoui, who's been accused of al Qaeda membership and suspected of involvement in the plot. It says at least one FBI agent did know that Alhazmi and Almihdhar had visas to enter the United States but that his supervisor at the CIA's counter-terrorism center told him not to distribute that information generally in the FBI.
The report's description of a series of bungled opportunities could raise questions among policymakers in Washington about the wisdom of leaving the FBI with the job of counterterrorism intelligence gathering in the United States as well as law enforcement. Some argue the United States needs a separate domestic intelligence agency, though there are serious civil liberties concerns about such a move.
The report also notes that some FBI agents who knew that a number of Middle Eastern men were taking flight training were concerned that the issue of racial profiling by law enforcement had become so hot that they could not safely pursue their suspicions about those would- be pilots.
David Ensor, CNN, Washington.
(END VIDEOTAPE)
HARRIS: And this just in to CNN, confirmation of a roadside bomb attack yesterday in Iraq. Now, the roadside bomb killed five Marines in the Iraqi town of Haqlaniyah. This was yesterday, and the Marines were assigned to the Regimental Combat Team 2, 2nd Marine Division, the 2nd Marine Expeditionary Force. They were killed when their vehicle struck an explosive device while conducting combat operations.
This just in to CNN. To repeat once again, confirmation that the roadside bomb attack in H Haqlaniyah yesterday killed five Marines. Those Marines were killed when their vehicle was struck by a roadside device.
How mean is Arlene? That's what the Keys want to know and the Gulf Coast wants to know and the Mississippi Valley wants to know as the first tropical storm of the season churns past the western tip of Cuba. Arlene has strengthened in the past few hours, and forecasters say it may become a hurricane before it comes ashore sometime tomorrow.
CNN's John Zarrella is watching the storm from a blustery, windy Miami -- John.
JOHN ZARRELLA, CNN CORRESPONDENT: Yes, fortunate in one regard. We're on the east coast. The storm is out in the Gulf on the west coast.
I'm standing up here on the lifeguard stand at Haulover Beach, Florida, which is the northern end of Miami-Dade County. You can see the -- the American flag there, blowing stiffly in the breeze.
It -- the wind has been steadily picking up here the last couple of hours. We had a squall line move through, feeder bands, a little bit of heavy rain. It's been like this all morning and now into the afternoon here. And it has already become a very treacherous and deadly storm, Arlene.
Earlier this morning, down on South Beach, about 10, 15 miles south of here, there were several people in that water out there. And a couple of them, one woman was caught out there in the undertow, and another woman went in to try and rescue her, and both of them got stuck. By the time fire rescue and the lifeguards were able to get through to the two of them, the first woman that went in the water, her lungs were filled with water, and she was later pronounced dead. So one victim already from Tropical Storm Arlene, at least indirectly responsible for that death.
In fact, the fire rescue team that went in the water to try and get those two ladies out had themselves to be rescued by a Coast Guard boat because of the terrible, terrible rip currents out here.
Now there are several surfers that are actually out here and more of them arriving every few minutes here. This is, you know, as the surfers say, great weather for them. It's being discouraged by the lifeguards here, but there's really not much they can do, Tony, to keep the folks out of the water, that is at least the surfers.
HARRIS: Yes.
ZARRELLA: They're keeping swimmers away from the beach as best they can. Again, they're warning everyone, stay out of the water. It's not the place to be today -- Tony.
HARRIS: Please, heed the warnings. OK, John, we appreciate it. John Zarrella, reporting from Miami in the middle of Tropical Storm Arlene. Thank you, John.
CNN meteorologist Jill Brown is looking at the big picture from our weather center -- Jill.
JILL BROWN, CNN METEOROLOGIST: Tony, as kids we loved that rough water when tropical systems were coming. So I understand the appeal, but it is dangerous.
This is a look at Florida and how much rain we've had. Now it wasn't raining where we saw John Zarrella. You can see over here where the yellow and orange is, we have already had over three inches of rain. And we've got a long way to go on this one.
It's moving to the north about 13 miles per hour, which is a pretty decent speed. That's good news. As long as it keeps moving, not one spot is going to get stuck with rain for several days. That's where you could really see some problems.
So you notice that it's increased in strength, up to 60 mile per hour winds now. Our next update comes in about an hour. Will we see any strengthening? It's possible. As it gets out into the Gulf of Mexico, it is expected to get into a favorable area for development. So we should see this one gaining some gradual strength through the next about 24 hours before it gets a chance to make landfall, at which point, obviously, it will diminish. So it could get up to 70 mile-an-hour winds. That's the forecast. That keeps it just below hurricane strength, although that could change in the next 24 hours. If it does gain enough strength and become a hurricane, we think it would only be a minimal hurricane before coming in over land and then diminishing.
This is the forecast for Sunday morning, so by that time it should be down to 35 mile-per-hour winds, dissipating but still a rain event for another 24 hours thereafter.
So there are hurricane watches in effect, meaning folks need to prepare for the possibility of a landfalling hurricane, from Panama City to the Pearl River inlet. And we also, of course, have the tropical storm warnings that are in effect. We'll most likely see tropical storm force winds but perhaps not hurricane force winds.
Storm surge not a big deal. Strong winds with some damage, but the big threat with this, Tony, is going to be the rain. And we could see some spots get as much as seven inches of rain. And we've had a lot of rain the last couple of weeks. So that's going to be the big issue.
Back to you.
HARRIS: That means all kinds of flooding problems.
OK, Jill. We appreciate it. Thank you.
Well, this isn't just the beginning of hurricane season. In the heartland, this is the heart of tornado season.
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UNIDENTIFIED MALE: I'm on the ground at the same time.
UNIDENTIFIED MALE: We're in Trego County, June 9, 2005.
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HARRIS: Boy, look at this. These Kansas twisters caused a little damage and turned a few heads, but we have no reports, thankfully, of anyone being hurt.
What happened to Natalee Holloway after 2 a.m. May 30 is still an absolute mystery. But now we know a little bit more of what happened on May 29.
Authorities in Aruba say the vacationing Alabama honor student met the teen you see behind me right here, Joran Van Der Sloot, in a casino, hours before she left a night spot with him and two other teens who happen to be brothers. These pictures are from Van Der Sloot's own web site. The teens and two older men are being held today while investigators sort through, and we quote, "all options and all scenarios."
CNN's Karl Penhaul has our report. (BEGIN VIDEOTAPE)
KARL PENHAUL, CNN CORRESPONDENT (voice-over): In handcuffs, a towel draped over his head, this is one of three new suspects police arrested in the hunt for Natalee Holloway. In total, five men are now in custody, but there's no sign of the missing teenager, no clue whether she's alive or dead.
KARIN JANSSEN, CHIEF PROSECUTOR: At this stage we can't say what we are presuming at this moment. We have too little details to say. All options are open.
PENHAUL: Natalee drove away from Carlos 'n Charlie's bar in the wee hours of May 30 with the three teenagers now held in police cells, according to their own statements. Police said she'd met 17-year-old Joran Van Der Sloot, the son of an island justice official, at the Holiday Inn where Natalee was staying, a day before she disappeared.
JAN VAN DER STRATEN, POLICE COMMISSIONER: They meet each other in the casino.
UNIDENTIFIED FEMALE: That day?
VAN DER STRATEN: The day before.
PENHAUL: The two other men detained Thursday are brothers, Satish and Deepak Kalpoe. There's been no statement yet on their behalf.
The other suspects, detained at the weekend, are security guards. Their defense attorneys insist they had nothing to do with Natalee's disappearance.
Police previously interviewed the teenagers but waited until Thursday, 11 days after Natalee's disappearance, to arrest them. They confiscated property, including a car and a computer.
JANSSEN: It is because of tactical -- tactical reasons we didn't do that at another moment.
PENHAUL: Relatives of the first two suspects fear wealth and race issues may cloud the investigation.
ALVIN CORNET, SUSPECT'S COUSIN: And it's something money-wise, who's rich and who's poor.
PENHAUL: That's Nicky John, one of the first two suspects detained, from a black immigrant family from the poorer east end of Aruba. That's Van Der Sloot, from an influential family from the richer west end. Prosecutors say evidence, not prejudice will be the key.
JANSSEN: Suspicion of a suspect has nothing to do with the color of his skin. It has to do with the results of the investigation, if there are grounds for suspicion.
PENHAUL: Karl Penhaul, CNN, Palm Beach, Aruba.
(END VIDEOTAPE)
HARRIS: The mighty Mississippi, hundreds of miles of wide open river and an unguarded target for terror. A "CNN Security Watch" ahead on LIVE FROM.
And just ahead, awaiting a verdict on the Tyco scandal. We'll talk corporate corruption with the Dolans, unscripted.
ANNOUNCER: You're watching LIVE FROM on CNN, the most trusted name in news.
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HARRIS: Well, you know the companies, WorldCom, Tyco, Enron. Some have gone belly up; others are reorganizing in the wake of corporate corruption. It's led to lawsuits and trials, one of which could see a verdict today. Ready to speak about all of it, the Dolans, Ken and Daria, as always, unscripted.
Good to see you both, as always. There you are.
KEN DOLAN, CO-HOST, "DOLANS UNSCRIPTED": Hello, Tony.
DARIA DOLAN, CO-HOST, "DOLANS UNSCRIPTED": You, too, Tony.
K. DOLAN: How are you?
HARRIS: I am -- I am fabulous. And you know, I guess I want to start with Dennis Kozlowski. And if you would...
K. DOLAN: Who's he? I never heard of him.
HARRIS: Exactly, the CEO of Tyco. OK, you with me? You with me, Ken?
K. DOLAN: OK. Thank you, Tony.
HARRIS: Remind us all of who he is and the troubles he found himself and his company in.
K. DOLAN: You know what I'll do, Tony? If you don't mind, first I'm going to quote from Mark Twain, because it leads me right to it.
HARRIS: Please.
DOLAN: Mark Twain said, "We have the greatest criminal jury system in America, but its efficiency is marred only by the difficulty of finding 12 men who know nothing and can't read." And that relates directly to the complexity of the Tyco situation.
D. DOLAN: Which is why the average American only knows Dennis Kozlowski, Tony, for $6,000 shower curtains.
HARRIS: Right. D. DOLAN: And a party in Sardinia that cost a couple of million dollars.
K. DOLAN: There were some cute guys there, though.
D. DOLAN: Because -- no, but here's the problem. Because of the complexity of all of these financial cases...
HARRIS: Yes.
D. DOLAN: ... and the lack of ability to put financial people on the juries, for whatever reason, mostly because they have important jobs and can't take as much time.
K. DOLAN: You're talking a year. You're talking months away from your job.
D. DOLAN: They are forced to become, on the prosecution side, a have versus have-not type of prosecution...
HARRIS: I see.
D. DOLAN: ... pointing out this rather than the complexities of what was involved and how shareholders and employees took losses.
HARRIS: Daria, but we're talking about -- yes, we're not talking about a smoking gun here that everyone can easily and readily understand. We're not talking about DNA. We're not talking about...
K. DOLAN: Wait, Tony.
HARRIS: Yes.
K. DOLAN: Tony Harris, wait a minute. Tony.
HARRIS: Yes.
K. DOLAN: If it takes the government, and I'm not being disrespectful.
HARRIS: No, no, no. I know.
K. DOLAN: But if it -- well, I might be slightly. If it takes the government two years to mount, with the best -- with the best CPAs, the best lawyers, to mount -- two years to get it all together, between a $12 million cost, 480 witnesses in the Tyco case, 700 exhibits, 12,000 pages of testimony and 32 different charges to sift through, it's like (makes noise). I'm a juror, I'm glazed over.
D. DOLAN: You know, and in the case of Tyco, the first time around it ended in a mistrial, because people just couldn't understand it, which cost taxpayers $12 million. And now we have word from the jury yesterday, "Do we have to reach a unanimous decision on all the charges?" Duh.
HARRIS: Right, right. K. DOLAN: There's only one solution to this complexity.
HARRIS: Well, what is it? Please, help me.
K. DOLAN: Well, now that you've asked I'm going to tell you. And here it is, Tony, and that is I think, like as in some countries, not many, the jury should be allowed during the course of the trial -- now I'll admit, it will extend the time these things take -- but the jurors should be able to ask questions as it goes.
I cannot remember on January 2, Tony, a complex detail in April -- on April 12.
HARRIS: I see. Yes.
K. DOLAN: I can't do it. It's too much. And so what happens is a mistrial, which is what the defense goes for, at least, if not a not guilty, a mistrial is effectively a success, because it's very hard to mount a trial.
HARRIS: But wait a minute. You know, prosecutors have a responsibility here to try a clean, precise case that is easily...
K. DOLAN: Yes.
HARRIS: Their job is to tell a compelling story. And maybe if these juries are being hung the way they are, maybe they're taking the time that they're taking to come back with any kind of a verdict at all, maybe that says something about the work that prosecutors are doing on these cases and the merits of the cases themselves.
D. DOLAN: But -- yes, but in fairness to the prosecutors, if you are trying to explain complex accounting procedures to people who have never taken accounting, it's going to be a virtually impossible job, Tony.
HARRIS: How are you going to get a jury of peers?
D. DOLAN: Which is why the -- my solution to this whole situation, in these complex financial cases is -- because look at Enron. The chances of a jury getting that are going to be absolutely slim to none no matter how long it takes to set it up...
K. DOLAN: With all the publicity.
D. DOLAN: ... because Wall Street didn't understand Enron's business.
HARRIS: Right.
D. DOLAN: They need to have it heard by judges or solely by people from the industry.
K. DOLAN: Who understand it.
D. DOLAN: If we can't trust the people in the industry to come up with a fair verdict, then maybe we don't need the industry at all.
HARRIS: Well, Ken, you're not going to get a jury of peers here.
K. DOLAN: No. No, no.
HARRIS: But if the case is detailed simply enough, I mean, we got a conviction with Bernie Ebbers.
K. DOLAN: Yes, but Tony -- Tony, it's hard to do that. Tony, you're right. You're saying the prosecution has -- has an obligation to present it as simply as it can. But Tony, when you're talking 12,000 pages of testimony, 700 exhibits -- I'm back to my old pitch here -- 48 witnesses, it is just simply hard to do. These are complex issues.
As I said before, Tony, if it takes my gang two years to figure out if there's even a case against somebody...
HARRIS: Right.
K. DOLAN: ... do you think a prosecution is going to explain it to people who don't know one end of a ledger -- a debit from a credit? It's not going to happen. And it is skewed on to the defense. Period.
HARRIS: Wow.
K. DOLAN: Eyes glaze over. It's over.
HARRIS: All right. We're going to leave it there. Daria, do you want a last word very quickly?
D. DOLAN: No, because I was going to start on the Scrushy trial, which is another...
HARRIS: That's a whole...
D. DOLAN: He'll get off. You mark my words. And it's a brilliant defense that's been launched.
HARRIS: OK. Let's leave it there.
K. DOLAN: We love you, Tony.
HARRIS: Love you, too. Ken and Daria, "DOLANS UNSCRIPTED." The show is on Saturday, Saturday morning, 10 a.m. Eastern, right here on CNN. We'll be right back.
D. DOLAN: Thanks.
(BEGIN VIDEO CLIP)
HARRIS (voice-over): Next on LIVE FROM...
UNIDENTIFIED FEMALE: Whiter teeth after just three days.
HARRIS: The trays, the gels, the strips. Will efforts to whiten your teeth actually harm them?
And...
UNIDENTIFIED FEMALE: We just can't go through this again.
HARRIS: Anxious residents and churning surf. We're tracking Tropical Storm Arlene.
Also ahead...
UNIDENTIFIED MALE: We believe that as Africans we've got much to celebrate.
HARRIS: Africa comes to America, or at least to your television. The LIVE FROM interview.
(END VIDEO CLIP)
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BROWN: I'm Jill Brown in the CNN Weather Center.
We have a tornado warning in effect now in the Florida Keys. This is a tornado actually reported on the ground in Matacomby (ph) Key, at mile marker 76, moving toward Plantation Key and Winley (ph) Key. And that is actually a tornado on the ground.
I want to show you where that it. You can see this band here coming up through the Keys. So with this cell coming through right here.
And then over Florida Bay, another cell that's coming up here to rural Monroe County now. There's another warning. This is a Doppler indicated tornado warning for -- moving towards southern mainland, Monroe County, southeastern, southern and central in rural areas there.
But in the Keys now, a tornado reported on the ground. This is not unusual with a tropical system to have tornadoes spawn. So we're most likely going to see more of this as the afternoon wears on, Tony. More severe weather possible.
HARRIS: Appreciate it. All right. Appreciate it. Thank you.
Enron's investors lost billions when the energy trader collapsed. But now they could get some money back. Kathleen Hays has the story live from the New York Stock Exchange.
Hi, Kathleen.
(STOCK REPORT)
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