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Hole in a Plane; Stopping the Bombers; Hurricane Katrina Scam

Aired December 28, 2005 - 13:59   ET

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

CAROL LIN, CNN ANCHOR: Welcome back to the second hour of LIVE FROM.
We are going to begin with severe weather warnings in the Southeast. Chad Myers in the CNN weather center -- Chad.

(WEATHER REPORT)

LIN: Well, speaking of traveling, of all things you think can go wrong on a flight, a hole in the plane probably would be last on your list. But that's exactly what forced an Alaska Airlines jet to make an emergency landing this week. A passenger with a cell phone camera captured these pictures coming up, what it was like after Flight 536 lost cabin pressure.

Gary Horcher from affiliate KIRO is in Seattle with this report.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: A lot of panic. I mean, there's just fear in everybody's eyes because we didn't know what was going on.

GARY HORCHER, REPORTER, KIRO (voice over): Passenger Jeremy Hermans (ph), who's also a pilot, snaps these cell phone pictures showing oxygen masks dropping just 20 minutes into Flight 536.

UNIDENTIFIED MALE: A loud bang, and then a rapid decompression. It was extremely loud.

HORCHER: One passenger even grabs the safety card in front of him as flight attendants quickly take control.

UNIDENTIFIED MALE: They were walking up and down, trying to help people put the masks on babies and elderly people who had twisted them.

HORCHER: On Monday, this Seattle to Burbank flight took off about 3:54, and 20 minutes into the flight the plane loses pressure and oxygen masks were deployed. The pilot started a rapid decent back to the airport, and at 4:53 the pilot landed the plane safely.

Once on the ground, investigators found a foot by six-inch hole open on the right side of the plane between the front and rear cargo hole. Now, police have turned the investigation into a possible case of hit and run after a baggage handler with the Menzies (ph) Corporation admits he ran a baggage loader right into the plane, making a crease, but he didn't tell anyone before the plane took off. (END VIDEOTAPE)

HORCHER: And back here live in Seattle, at Sea-Tac airport, we have just learned that that Menzies (ph) baggage handler has been temporarily suspended during the investigation, and the Port of Seattle Police are actually investigating what he did as a possible charge of hit and run -- Carol.

LIN: Hit and run? Seriously, that's a possible charge in this case? Wow.

HORCHER: Well, actually, we found out Alaska Airlines actually called the Port of Seattle Police right after this happened and -- just to check it out. Is this a hit and run offense the same as if I ran my bumper into your car in the parking lot and just kept on going? As a practical matter, what they have to find out is, if a plane, if a jet plane in one of those big, high baggage loaders qualify as motor vehicles. And if so, that baggage handler could actually face charges.

LIN: Gary, these people were in this type of descent for almost a half-hour. I don't know if you got a chance to talk to any of these the passengers, but I'm wondering, what were they thinking and saying during all that time?

HORCHER: We didn't get a chance actually to talk to the passengers, Carol, because they were put on another flight right away, and that flight took them all the way to Burbank. We did hear -- we did a number of phone interviews with a passenger on board. He is actually a pilot.

He says that what he felt and what he heard with that little explosion and the rapid depressurization, he said he thought something catastrophic was about to happen. And so he put on his oxygen mask, and he actually started snapping those pictures to document it, hoping that he would survive that incident.

LIN: Yes. And boy, Gary, what a miracle that everybody is alive and safe. And, you know, the last thing I'd want to do is get on another plane, wouldn't you?

HORCHER: Well, the last thing I'd want to do is be on a plane with another panicked passenger. But apparently, everybody pretty much kept their calm on board. And the airline did exactly what it was supposed to do. And thank god they touched down safely here at Sea-Tac.

LIN: You bet. Gary Horcher, thank you very much, with our affiliate KIRO.

Well, it seems the general public and many members of Congress weren't the only ones caught unaware by that super-secret eavesdropping program aimed at catching terrorists. Defense attorneys for a number of alleged or convicted plotters say they knew nothing of it either. And now they want to know more. "The New York Times" reports legal challenges are in the works in several high-profile cases on the grounds that the government may have relied on undisclosed, potentially illegal wiretaps. Now, it's no longer much of a secret that President Bush authorized the National Security Agency to monitor phone calls or e-mails between the U.S. and some other countries without seeking warrants from the secret court set up just for that purpose.

By the way of justification, officials point to Iyman Faris, the Ohio trucker who pleaded guilty in 2003 to plotting to blow up the Brooklyn Bridge. But "The Times" says Faris' lawyers are among those planning new challenges, perhaps including a civil suit against Mr. Bush.

And Jose Padilla, the U.S. citizen dubbed an enemy combatant by the government and held without charges there for three and a half years, is appealing to the Supreme Court and citing the NSA program as part of an allegedly unconstitutional abuse of power.

Now, earlier today, CNN's Daryn Kagan asked a lawyer in Chicago how a judge might handle a defense request for classified prosecution evidence.

(BEGIN VIDEO CLIP)

STEVEN GREENBERG, DEFENSE ATTORNEY: What I believe is going to happen, given what's already been leaked, is that the judges in the cases are going to say to the government, show me the information. I will look at it in what's called an in-camera inspection, which means the judge goes in his chambers all by himself, looks at the materials and decides whether or not they should be turned over and whether or not, in fact, national security applies and they shouldn't be turned over.

And the judge can evaluate on his own the legality of it. And we have to have faith that the judges are going to do the right things under the circumstances.

(END VIDEO CLIP)

LIN: Now, over Christmas weekend, it came out that in order to know which phone calls and e-mails to pay attention to, the NSA plugged into some of the primary arteries or switches of the U.S. telecommunication system. The operative phrase is "data mining." And while refusing to confirm or deny that it's going on, the White House insists only evildoers need fear government eavesdroppers.

Says White House spokesman Trent Duffy, "This is a limited program. This is not about monitoring phone calls designed to arrange Little League practice or what to bring to a potluck dinner. These are designed to monitor calls from very bad people to very bad people who have a history of blowing up commuter trains, weddings and churches."

Simply put. All right. In Israel, the fight against terrorism is a national affair. Everyone from school children to the military plays a role. In a report you'll only see on CNN, our justice correspondent, Kelli Arena, traveled to Jerusalem for a look at some of the intense security measures utilized to prevent suicide bombings. It is a report you first saw on "THE SITUATION ROOM."

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): This mall in Jerusalem may look like many in the United States, but just try getting inside.

GIDEON AVRAMI, JERUSALEM MALL SECURITY DIRECTOR: The major check is done here. And in the case something goes wrong, it will be out of the mall and not inside.

ARENA: The security is intense. Gideon Avrami, who is in charge of keeping shoppers safe, says there are armed guards patrolling the perimeter.

AVRAMI: One of the guards puts a binocular, watches the mountains around, the buildings around, mostly to be seen.

ARENA: Cars coming into the parking lot are searched, and shoppers go through metal detectors. It's all aimed at stopping suicide bombers.

Gil Kerlikowske, Seattle's police chief and a group of U.S. law enforcement officials that he traveled to Israel with got an up-close look at the security measures. Here, the private sector works hand in hand with Israeli police, a relationship Kerlikowske says should be emulated with businesses in his area.

CHIEF GIL KERLIKOWSKE, SEATTLE POLICE: I think I need to do a much better job of embracing them and going out to them, not waiting for them to knock on my door.

ARENA: Every attempt by a suicide bomber to get inside a mall in Israel has failed, although some have blown themselves up outside. Heavy security is just part of the offensive. Intelligence gathering is equally important.

AVRAMI: Once there is a knowledge or intelligence about a suicide bombing, it goes from the Israeli security services immediately to the police. From the police, it goes immediately to the private sector. When I say immediately, I'm saying minutes.

ARENA: The need to share intelligence was emphasized by Yoram Hessel, who met with the group for a closed session. He's formerly with Israel's intelligence service, the Mossad.

YORAM HESSEL, FORMER ISRAELI INTELLIGENCE OFFICER: Good, reliable, timely intelligence can multiply your resources. ARENA: Hessel says Israel has spent a lot of time developing informants, but also relies heavily on technology. Cameras are part of that anti-terror arsenal, like these in Jerusalem's old city.

(on camera): Right now, I'm on camera. There are more than 300 law enforcement cameras surveilling Jerusalem's Old City, home to holy sites for Christians, Muslims and Jews. Israeli police are worried that religious extremists could ignite a potentially explosive situation here.

(voice-over): The public also plays a vital role. Israeli officials say they get hundreds of terror-related tips a week.

KERLIKOWSKE: It isn't just the security force that is being held responsible and accountable for security.

ARENA: The fight against terrorism encompasses nearly every facet of Israeli life, something experts here do not believe the U.S. is ready for.

Kelli Arena, CNN, Jerusalem.

(END VIDEOTAPE)

LIN: Stay tuned to CNN day and night for the most reliable news about your security.

All right. Allegations of fraud at a hurricane relief center where people hired to help evacuees are accused of helping themselves instead. That story ahead on LIVE FROM.

(COMMERCIAL BREAK)

LIN: The Red Cross is vowing to change the way it makes grants to individuals in the wake of a huge Hurricane Katrina scam. Twenty- two former Red Cross workers are among the dozens of people accused of trying to cash in on the misfortune of others.

CNN's Kareen Wynter investigated for "PAULA ZAHN NOW."

(BEGIN VIDEOTAPE)

KAREEN WYNTER, CNN CORRESPONDENT (voice-over): Bakersfield, California, thousands of miles away from the area ravaged by Hurricane Katrina, and from a 1.5 million people the storm displaced. But it's here, federal authorities say, 22 people contracted to work at this National Red Cross call center filed false claims worth more than $300,000.

And they didn't act alone. Family members and friends were also allegedly involved in this elaborate scam.

JACKIE SMITH, FAMILY OF DEFENDANTS: I'm really surprised that people in this day and time would try to take -- take advantage of the system that's intended to help those in need.

WYNTER: Jackie Smith's brother-in-law was named in the indictment, along with 48 other people, accused of wire fraud.

SMITH: If any of these charges are true, they do need to be fully investigated.

WYNTER: This Bakersfield claims center processed calls from Katrina victims across the country, as many as 16,000 a day.

(on camera): Red Cross workers say, due to the volume of calls, people were asked to provide only their name, address and birth date.

(voice-over): Call center agents would then have to confirm and approve those details before issuing a claim number, so the displaced could receive payment at local Western Unions, $360 for individuals and more than $1,500 for families.

JOHN CONKLIN, ASSISTANT U.S. ATTORNEY GENERAL: Unfortunately, the -- the fraud schemes are ever present. And, in this case, while we hoped nobody would be willing to take advantage of this situation, people have.

WYNTER: Officials say the contract workers tapped into the system by creating fake accounts and cashing in big. The Red Cross grew suspicious after an audit and contacted the FBI. Special Agent Javier Colon said he was surprised by the number of confessions.

JAVIER COLON, FBI SPECIAL AGENT: In many cases, they have openly admitted that they have never been to the state of Louisiana and that they weren't entitled to the money.

WYNTER: This store manager says an employee at his Western Union branch also grew suspicious when the same person came in three times to collect money.

UNIDENTIFIED MALE: She's the one who find out. She had that kind of feeling that she was here a long time. And she contacted the -- the authority.

WYNTER: The American Red Cross released a statement, saying -- quote -- "It does not tolerate fraud. We view donors as investors. And it goes on -- quote -- "Instances of fraud represent a small percentage of the overall contributions that have been made to the American Red Cross."

COLON: Our investigation is going to be expanded to include other parts of California and out of state, and there's thousands of claims that have been made in other states.

WYNTER: The Red Cross says it's devising new systems so that such fraud will be easier to detect in the future.

Kareen Wynter, CNN, Bakersfield, California.

(END VIDEOTAPE)

LIN: It was a terrorist attack that shocked Russia and the world: more than a thousand people held hostage at a school at Beslan last year. Hundreds killed, many of them children. How could it have happened? Well, a new report casts a critical eye on the police.

CNN's Ryan Chilcote has that story.

(BEGIN VIDEOTAPE)

RYAN CHILCOTE, CNN CORRESPONDENT (voice over): For the more than 1,100 Russian students, parents and teachers packed inside the school, the end of Beslan's hostage crisis was every bit as terrifying as the beginning. The hail of gun and tank fire that erupted between Russian forces and Islamic militants, 331 hostages died. More than half of them children.

Why did it end so tragically? And should Russian forces share in the blame?

After 15 long months, the head of the Russian parliament's inquiry tried to give some answers, chiding the government for botching parts of its response, saving its sharpest criticism for local authorities that he said had been warned of possible attacks on the first day of school but didn't react appropriately.

"Police acted with negligence, carelessness," he declared. "Conditions of a real terrorist threat."

The extent of Beslan's losses is almost impossible to comprehend. Psychologists believe most of the small town's residents suffer form post-traumatic distress. Some others have even turned to a mystic who promises to resurrect their children.

The victims' relatives have also formed a powerful political group called the Mothers of Beslan. But so far, only one accused culprit has appeared in the courtroom, a man police identify as the sole-surviving hostage-taker.

Every Tuesday and Thursday the Mothers of Beslan attend his trial, using the opportunity to vent their anger against him and the government officials who appear in the court. The mothers have criticized the Kremlin for failing to investigate higher-level officials for negligence and for failing to bring the attack's mastermind, Shamil Basayav (ph), to justice.

And they have already criticized the parliament's preliminary findings, saying it failed to name the individuals responsible from the government side. They wait for the commission's final report due some time this spring.

(END VIDEOTAPE)

CHILCOTE: In the meantime, relatives of the victims of Beslan say they will seek out every opportunity they get whenever and wherever to confront Russian officials and to try to get some answers as to exactly what took place during that hostage crisis. Sometimes their efforts can look a little desperate.

Just yesterday, for example, the Mothers of Beslan actually took control of the courtroom in which that one hostage-taker is being tried, saying they will not allow the trial to continue until several government officials who have been called as witnesses actually appear because they have their own questions they want to put to them -- Carol.

LIN: Ryan, is there any chance of any kind of financial compensation for these families?

CHILCOTE: The families did receive some amount of financial compensation from the Russian government. They also got a certain amount of financial assistance from the international community back in September 2004 when this hostage crisis really played out.

Since then, obviously, the assistance has subsided, but, you know, for the families, obviously, it's not really about assistance. Just keep in mind that a total of 331 people were killed in that hostage crisis.

LIN: Right. And I'm not even suggesting...

CHILCOTE: The vast majority of them, quite frankly, children.

LIN: Yes. I'm not even suggesting that money...

CHILCOTE: Yes, the vast majority children. And they...

LIN: I just wanted to find out if the government at least admit some responsibility and give something, if anything, to these families.

Ryan, thank you.

CHILCOTE: That's the thing.

LIN: Go ahead.

CHILCOTE: And that's the very thing. What the families would like to see, really, is for the government to step up and claim some kind of responsibility for what took place there.

They basically -- they obviously blame the hostage-takers, the Islamic militants who seized the school. They blame Russia's most wanted man, Shamil Basayav (ph), who said he masterminded the attack. But they also blame Russian government, the Russian government for what they consider to be a negligent response to the attack.

And they would like to see the Russian government own up to what they believe was that negligent response, and they would like to see some kind of admission of guilt and perhaps an apology. A lot of people that have been watching this very carefully since then think that that is unlikely -- Carol.

LIN: Ryan Chilcote. Thank you very much, live from Moscow.

Well, Hawkeye, Radar and the rest of the 4077 were immortalized on television. Real MASH units, though, are nearing the end of the road. Up next, Dr. Sanjay Gupta visits the last one operating. More LIVE FROM in just a moment.

(COMMERCIAL BREAK)

LIN: A guilty plea is expected today from the former chief accounting officer of Enron. And CNN has learned that Richard Causey will plead guilty to a security charge fraud. Now, as part of a deal, Causey reportedly will get a lighter prison sentence if he cooperates in the case against Enron founder Ken Lay and former CEO Jeffrey Skilling. Both are scheduled for trial next month.

So it seems as though every week we're reporting on another instance of lost or stolen personal data. Susan Lisovicz is live from the New York Stock Exchange to tell us which company is facing this problem this time.

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

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