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Violence Surges in Iraq; American Diplomat Killed in Pakistan Car Bombing; Videotape Shows Officials Warned of Katrina Damage; Serial Killer Sentenced to Consecutive Life Sentences; Los Angeles Port Already Run by Foreign Owned Company

Aired March 02, 2006 - 13:00   ET

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

FREDRICKA WHITFIELD, HOST: Hello, I'm Fredricka Whitfield at the CNN world headquarters in Atlanta. LIVE FROM begins right now.
First, the breakdown of order in Iraq. Lawlessness surged today with bombings, shootings, and dozens of deaths. A top politician escaped assassination. U.S. troops fought insurgents. And among Iraq's leaders, bickering. With more from Baghdad, CNN's Aneesh Raman.

(BEGIN VIDEOTAPE)

ANEESH RAMAN, CNN CORRESPONDENT: A spate of attacks throughout Iraq has left over two dozen people dead in the capital, the southeastern part of Baghdad, a predominantly Shia area, a bomb exploding at a market there, killing at least four.

And just north of the capital, 10 Iraqi security forces were killed after their checkpoint came under attack.

All of this while leaders still say the only solution to bringing stability here is a political one. There is now a brewing political battle. A meeting that was set to be held within all leaders, Sunni, Shia, Kurdish and secular leaders, has been canceled by the behest of Iraq's prime minister, Ibrahim al-Jafari, who today came under fire from essentially the opposition, the Sunnis, the Kurds and the secular politicians, who want someone else as the country's prime minister.

Jafari just recently was nominated by the Shia alliance to retain his post.

What this means is that the time line for forming a permanent government now gets pushed back by months. Before last week's attack on the sacred Shia mosque, many observers thought by the end of March a unity government would form. It now seems it could take the better part of this year for a permanent government to form. And the notion that a unity government could be in the works is now explicitly on hold.

Aneesh Raman, CNN, Baghdad.

(END VIDEOTAPE)

WHITFIELD: The U.S. and India making history, so say President Bush and India's prime minister about a nuclear agreement signed today in New Delhi. The U.S. will provide India with nuclear power assistance. In turn, India will separate its civilian and military nuclear facilities. The military plants will not be subject to international inspection.

Critics argue the deal sets a dangerous precedent. Prior U.S. policy barred nuclear assistance to countries such as India that have refused to sign the Nuclear Nonproliferation Treaty. Mr. Bush insists the accord is necessary.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: An historic agreement today on nuclear power. It's not an easy job for the prime minister to achieve this agreement. I understand. It's not easy for the American president to achieve this agreement. But it's a necessary agreement. It's one that will help both our peoples.

(END VIDEO CLIP)

WHITFIELD: The agreement faces a tough battle for required congressional approval.

President Bush is vowing to go ahead with a visit to Pakistan despite a suicide car bomb attack today in the port city of Karachi. The blast happened outside the U.S. consulate. An American diplomat was among those killed. The prime suspect, al Qaeda.

CNN's Mike Chinoy is in the Pakistani capital of Islamabad with the very latest.

(BEGIN VIDEOTAPE)

MIKE CHINOY, CNN CORRESPONDENT (voice-over): It was 9:15 a.m. Thursday local time. A car carrying a U.S. diplomat was approaching the back entrance of the American consulate in Karachi, just behind the Marriott hotel. Pakistan's interior minister says that suddenly another car accelerated, crashed into the American's car, and blew up. The diplomat, his driver, the suicide bomber, and the Pakistani security guard were killed. Over 50 people were injured.

AFTAB AHMED KHAN SHERPAO, PAKISTAN INTERIOR MINISTER: The intensity was so high that I think this was one of the highest we've seen, intensity-wise. And because it's made a crater which is 12 feet by 8 feet, and it's 3 feet deep so and the vehicle which was hit, it has, you know, it flew into the air and was thrown to the other side of the wall.

CHINOY: The attack took place in one of the most heavily guarded areas of Karachi. There were more than 150 Pakistani security personnel deployed to protect the consulate, plus two armored vehicles. But it wasn't enough.

SHERPAO: Let me tell you that the security was very, very good. But when it comes to a suicide bomber, there's very little that the law enforcing agencies can do.

CHINOY: Suspicion has immediately fallen on al Qaeda and its local extremist allies.

It was not the first time there's been an attack like this in Karachi. In 2002 a car bomb outside the U.S. consulate killed 11 people. Another bomb at the Sheraton Hotel left eight dead.

And Karachi was the place where American journalist Daniel Pearl was kidnapped and murdered.

A teeming, lawless, violent city, Karachi has been an important base for al Qaeda and its allies ever since they were driven out of Afghanistan after September 11.

Several important al Qaeda figures have been arrested there, including Ramzi Binalshibh, a close associate of the 9/11 hijackers, who was detained after a gunfight with local police.

More recently, Afghanistan's government has claimed that al Qaeda and Taliban operatives have received training and support in Karachi for suicide bombings inside Afghanistan.

(on camera) Pakistani officials say the Karachi attack was clearly intended to embarrass the government of President Pervez Musharraf, a key U.S. ally in the war on terror. And to send a signal to President Bush, who's due here this weekend, and it's prompted an urgent last-minute review of security arrangements for the president's visit.

Mike Chinoy, CNN, Islamabad.

(END VIDEOTAPE)

WHITFIELD: The New Orleans French Quarter saw the high point of the week, but the Ninth Ward continues to experience the lowest of the lows. A grim search resumes there today as cadaver dog teams go house to crumbled house to find human remains. With an estimated 2,000 New Orleans residents still listed as missing, it's expected the teams will find more storm victims. These searches were suspended last December for lack of money.

Forewarned, but not forearmed. Newly released video from FEMA meetings before Hurricane Katrina hit the Gulf Coast contradicts comments made afterwards.

CNN's Tom Foreman has a closer look at the tape and the clear evidence that the people supposed to be in charge were not.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice-over): From roaring winds to failed levees to stranded survivors, the Bush administration was clearly warned about it all before the hurricane hit. That case has been building for months. And this latest version of events from the Associated Press is fanning the frustration by showing the president, once again, in the calm before the storm, saying "the situation is in hand." BUSH: I want to assure the folks at the state level that we are fully prepared to not only help you during the storm, but we will move in whatever resources and assets we have at our disposal after the storm to help you deal with the loss of property and we pray for no loss of life, of course.

FOREMAN: What's new in this report is a bit more information about exactly who knew what when. Not surprising to hear hurricane expert Max Mayfield tell the administration the levees very well could fail.

MAX MAYFIELD, HURRICANE EXPERT: I don't think anyone can tell you with any confidence right now whether the levees will be topped or not. But that's obviously a very, very grave concern.

FOREMAN: But then after the storm, the president said, "I don't think anyone anticipated the breach of the levees." A theme echoed by homeland security chief Michael Chertoff.

Indeed, Chertoff insisted time and again that much of what Katrina brought was a surprise, even though his own head of the Federal Emergency Management Agency, FEMA, quite specifically warned him about many coming problems.

MIKE BROWN, FORMER FEMA DIRECTOR: I also heard there's no mandatory evacuations, they're not taking patients out of hospitals. They're not taking prisoners out of prisons, and they're leaving hotels open in downtown New Orleans. So I'm very concerned about that.

FOREMAN (on camera): Still, most of this is stuff we've heard before. So why is it news now? Well, maybe because it's the six month anniversary of the storm and maybe because opponents of the administration are jumping all over it. And maybe because the White House is acting like it is news they don't want to hear.

Tom Foreman, CNN, Washington.

(END VIDEOTAPE)

WHITFIELD: Port security. While the debate wages over who should or shouldn't run U.S. ports, we ask does it really matter where the company is headquartered? We go to the port of Los Angeles, Long Beach, for answers. That's coming up.

ANNOUNCER: You're watching LIVE FROM on CNN, the most trusted name in news.

(COMMERCIAL BREAK)

WHITFIELD: It is life in prison for a monster, a man who played God. Those are words used to describe Charles Cullen today, the one- time nurse convicted of being New Jersey's most prolific serial killer. The loved ones of Cullen's victims had their first chance to address him today at his sentencing hearing in Somerville.

CNN's Adaora Udoji is outside the courtroom with more on what transpired -- Adaora.

ADAORA UDOJI, CNN CORRESPONDENT: Good afternoon, Fredricka.

It was actually a swift court session lasting just under four hours. But it was packed with incredible emotion, a lot of sadness, a lot of talk about how devastated the families were by the killings that Charles Cullen committed.

This is a former nurse who confessed to killing 22 of his patients by lethal injections. That's just here in New Jersey. There were another seven victims in Pennsylvania.

And for the first time, as you said, family members of those victims got the opportunity to confront him. And nearly two dozen family members did stand up, many just explaining how they have fared, how horribly they have fared, in the wake of finding out that Charles Cullen, as many of them said, was playing God, choosing to kill their loved ones.

We're talking about mothers and fathers and daughters and sons. You talked -- they talked about the rage, the anger, of what Charles Cullen had done -- has done, and not understanding why. Because up to this point, Charles Cullen has not really provided an explanation, at least not in the minds of many family members, who said they just need to understand why he thought that he was mercy -- doing mercy killings, when many of them said it was just a question of misery.

He sat there, Fredricka, for the most part, stone-faced, barely looked up, never looked those family members in the eye. And for many of those family members, that just incensed them. Here's what they said.

(BEGIN VIDEO CLIP)

DEBORAH YEDDER MEDINA, RELATIVE OF VICTIM: Why don't you look at me? Because you remember me as the person who penned you, who coined the phrase Satan's son, 1 1/2 years ago, when I ran into you at Belvedere Courthouse. You are not even to be referred to as Charles. You are Satan's son.

MELISSA HARGROVE, VICTIM'S DAUGHTER: I lost my father, Christopher Hargrove, August 11th of 2003. He was taken in the gravest, gravest way. He was murdered by Charles Cullen.

UNIDENTIFIED MALE: Take a moment and compose.

(END VIDEO CLIP)

UDOJI: As you can see, Fredricka, just a really tough difficult day.

Cullen, for the most part, did not say a word, barely a word, until he was directly addressed by the judge. And the judge had to say to him a couple of times, "Why are you not responding to me?" Let's listen to that.

(BEGIN VIDEO CLIP)

JUDGE DAVID PARKER, PRESIDING: Mr. Cullen, I asked you a question. Why is it that you have chosen not to address the court? Can you hear me, Mr. Cullen? Are you choosing not to answer me? Are you asking me to go forward, then, with sentencing?

(END VIDEO CLIP)

UDOJI: That was barely audible. And he was saying -- Cullen said to the judge, "Yes, sir." And that happened -- that interaction between the judge and Charles Cullen happened just moments before the judge sentenced him.

It was not a death sentence. It was a life imprisonment sentence. And that's because there was a pre-existing plea agreement between Charles Cullen and the district attorney's office two years ago. The district attorney's office agreed not to seek the death penalty in return for Charles Cullen helping them to identify his victims.

Now this was a man, Fredricka, who worked in hospitals for 16 years and came in contact with hundreds, thousands of patients. And so the prosecutor said they needed his help in identifying all of his victims. Again, that's 22 that he's confessed to, 22 murders he's confessed to here in New Jersey and another seven in Pennsylvania. And he will be sentenced on those seven murders in Pennsylvania next week, on March 10 -- Fredricka.

WHITFIELD: And Adaora, while he didn't say very much and you showed that in that tape, he is, however, asking permission of the court, isn't he, for a pass, if you will, in order to donate a kidney?

UDOJI: Exactly. And that's sort of the reaction many people have. Essentially, has asked the court for permission to have -- undergo surgery to have one of his kidneys removed so that he can give it to a relative of his ex-girlfriend, someone who's very ill.

He had requested to have this surgery before he was sentenced, before the families would get an opportunity to confront him, the family members of the victims. But the court said no. First, you must get sentence and you must listen to what the family's victims have to say, and then we will allow you to undergo this procedure.

So from what we understand at this point, that at some time soon he will undergo that procedure to donate one of his kidneys.

WHITFIELD: Interesting. All right, Adaora Udoji, thank you so much.

Well, in medical news today, Iraq may have its second human bird flu fatality. Further tests are under way on a woman who died in Nasiriyah. Initial tests indicate the H5N1 virus.

There are still no cases bird flu reported in the U.S., in poultry or in people. But experts want to be prepared in case of a global pandemic. Today, the Food and Drug Administration is out with a draft report that updates the approval process for flu vaccines. New rules allow emergency FDA approval if a new superstrain appears. They'd also permit vaccine makers to tweak existing formulas without obtaining new licenses. Follow-up studies would still be needed.

One other bird flu item: health officials in the Bahamas are now saying they don't think bird flu killed a number of flamingos and other migratory birds there this week.

Alexander Hamilton is putting on some rouge and coming to a wallet near you. We'll tell you why when LIVE FROM continues.

(COMMERCIAL BREAK)

WHITFIELD: You're looking at live pictures right now of Mobile Bay in Alabama at the port of Alabama. You're looking at the site of what turns out to be a crane collapse there. One person reportedly has died as a result of this crane collapse. We don't know any more about the circumstances as to what happened or why. When we get any more information, we'll be able to bring it to you, though.

Meantime, if Alexander Hamilton looks like he's blushing, it shouldn't be a surprise. He's the center of attention today as the Federal Reserve begins shipping out a new version of the $10 bill. Like the $20 and $50 before it, the 10 spot is redesigned to thwart counterfeiters. In a colorful departure from the green and black design it replaces, the new $10 also includes shades of orange, yellow -- and dare we say it -- blush red.

When it comes to cars and quality, all roads apparently lead to Japan. "Consumer Reports'" annual car issue is out. And for the first time in nine years, the top 10 picks are all Japanese car, five of them Hondas.

Honda's Civic, Accord, and Acura TL are among the best examines (ph), as are Nissan's Infiniti M35. Subaru's Forester is the best small SUV. Toyota's Highlander Hybrid is the top midsized SUV. And Honda's Ridgeline pickup truck and Odyssey minivan make the list. Toyota's Prius is the best green car, and Subaru's Impreza, well, it rounds out the top 10.

A small error has turned into a $7 billion problem for the U.S. government. Susan Lisovicz has details live from the New York Stock Exchange right now.

Susan, hello.

(STOCK REPORT)

(COMMERCIAL BREAK)

WHITFIELD: New information on the deal to put a Dubai-based firm in charge of terminals at six major U.S. seaports. CNN has learned a short time ago that a major Israel shipping company strongly endorses DP World and vouches for its security. No word yet on how that might sway decision makers in Washington.

It may surprise you, however, that much of U.S. port security is already in the hands of companies abroad.

CNN's Jeanne Meserve reports.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice-over): It is 7:00 p.m., and the second shift at the SSA terminal at the Port of Los Angeles-Long Beach is in full swing.

This port handles close to half the containers entering the U.S. If a terrorist strike closed it, there would be a chokehold on the U.S. economy.

(on camera): We're about 13 stories off the ground in a crane. In the next 24 hours, this crane and the others like it at this port will move about 13,000 containers on and off ships.

(voice-over): But most of the terminals here are leased to foreign companies from China, Taiwan, Korea, Israel, and elsewhere.

A former Coast Guard commander, Stephen Flynn, worries not about who runs the system, but the system itself.

STEPHEN FLYNN, FORMER U.S. COAST GUARD COMMANDER: The core problem is, we haven't set minimum standards, who has access to the terminal, for basic physical security in it, and we're not looking out into the supply chain enough, putting in place systems where we can validate, what comes in is legitimate and what is illegitimate.

MESERVE: SSA is an American firm. It used to lease this terminal outright, but now partners with a Swiss shipping company.

JOHN DIBERNARDO, VICE PRESIDENT, SSA TERMINALS: Virtually nothing has changed. We operated the same way before as we do today.

MESERVE: SSA still handles security at its terminal.

UNIDENTIFIED FEMALE: All right, Trevor (ph), you're good to go.

MESERVE: It hires the guards. It checks the workers, the drivers and trucks that come and go around the clock.

UNIDENTIFIED FEMALE: Yes. I got a shipment to transport here.

MESERVE: The U.S. Coast Guard has overall responsibility for port security. And it has approved SSA's security plan. But the system uses drivers licenses, not biometric I.D. cards, and even the security personnel are not tightly screened.

CAPTAIN PETER NEFFENGER, U.S. COAST GUARD: There are no specific background checks that are done on terminal personnel at this time.

MESERVE: For operational reasons, the Coast Guard briefs foreign firms on some aspects of port security. And that worries the man who, until recently, was chief of port police.

NOEL CUNNINGHAM, FORMER LOS ANGELES PORT POLICE CHIEF: Everything from -- from tactical plans to alert status, a review of existing security plans, you name it.

MESERVE: But the man in charge of port security insists that the most crucial information is closely held.

NEFFENGER: Any sensitive security matters, any -- any national intelligence, is -- is kept pretty close to the vest by those agencies responsible for -- for maintaining that. So, no, we don't share.

MESERVE: The federal Customs and Border Protection Agency screens some of the cargo that arrives here.

KEVIN WEEKS, LOS ANGELES DIRECTOR OF FIELD OPERATIONS, CUSTOMS AND BORDER PROTECTION AGENCY: All security protocols are not being changed, regardless of who is here operating as a lessee terminal operator.

MESERVE: But those searches are largely based on paperwork submitted by shipping firms.

FLYNN: We basically expect commercial companies to police themselves, so we hope for the best, which is a pretty crazy way to do business in our post-9/11 world.

MESERVE: The Coast Guard at L.A. Long Beach says, foreign companies are excellent security partners because it is in their economic interests to keep the cranes hauling freight 24 hours a day.

Jeanne Meserve, CNN, at the Port of Los Angeles-Long Beach.

(END VIDEOTAPE)

WHITFIELD: And speaking of ports, we want to take you to the Port of Alabama, where the problem there is a crane collapse at Mobile Bay.

On the phone with us is Brian Gilliland. He's the acting public information officer of the mobile fire and rescue operations there.

And, Mr. Gilliland, tell me about how you believe this crane collapse happened.

BRIAN GILLILAND, MOBILE FIRE & RESCUE: Yes, ma'am. It's not clarified at this time. But we believe the crane struck the ship, or perhaps the ship moved in either direction, that caused the crane to collapse on one of the major container piers here at the Port of Alabama on the Mobile River.

WHITFIELD: And this is while loading our unloading the dock?

GILLILAND: I'm not sure which operation they were carrying out. I know that there was -- that there was some type of an operation in moving the containers. I don't know whether it was loading onto this vessel or coming off of it.

WHITFIELD: And we have heard reportedly that one person was killed. Is that true? And if that is the case, can you explain who that person might be?

GILLILAND: We can verify there's one person that has been killed at this point. I cannot reveal anymore at this time because -- well, mostly because most of my information is not verified. We're also going through a systematic check the area, to see if there's anyone else that was involved. We've had an issue on the scene here of some hazardous materials, products that spilled on the site. So once we lock all of those things down and do a good search of rest of the area, we can verify that only one person has been involved.

I don't know where the person was working or what stage they were working on, in the crane, or around in the air, anything like that.

WHITFIELD: And so this hazmat situation, directly related to this crane collapse, or is that a separate incident, somewhere else in the port area?

GILLILAND: No, ma'am, it's on the site of the collapse.

WHITFIELD: And how about other container activity there, in terms of unloading and loading? How is it suspended operations there overall?

GILLILAND: To my knowledge, the rest of the Port of Alabama's still in service.

WHITFIELD: All right, Brian Gilliland, acting public information of Mobile Fire and Rescue there, talking about a situation of a crane collapse resulting in at least one death at this juncture there in Mobile Bay. Thanks so much.

GILLILAND: Thank you, ma'am.

WHITFIELD: Now, in other port news, about the port deal, it is still not a done deal. Great Britain says that it has a say into whether the merger even goes forward.

CNN's Paula Newton is in London with an explanation on that -- Paula.

PAULA NEWTON, CNN CORRESPONDENT: Well, what happened here, Fredricka, was I'm in front of the British high court. There was a ruling this afternoon. And in fact it did give its provisional approval for this takeover to go through.

Now the people that were bringing a case against P&O here in Britain to say that the takeover couldn't go through was a company in Miami called Eller and Company and two private shareholders. They really lost in their bid today. They have until 3:00, tomorrow, London time, to see if the court of appeal will hear their case. If it does not, for all intents and purposes, in Britain right now this means this deal can go through. The courts are done with it, and they can begin to file with the stock exchange and other jurisdictions, to say yes, we are -- we will be taken over by Dubai Ports World.

But the lawyers here were very keen to tell me, look, this has nothing to do with what's going on in the United States, in the sense that we -- this is going on separate and apart from the 45-day voluntary evaluation that we're going to undergo.

I think what it really says here, Fredricka, is that the law sometimes in the story is that P&O is a very large British company historically, and there really hasn't been the kind of uproar here in Britain there has been in the United States about a British company being taking over. And some of the security issues certainly do overlap, but there just has not been the same concern -- Fredricka.

WHITFIELD: All right, Paula Newton, thank you so much for that update.

And stay tuned to CNN day and night for the most reliable news about your security.

Well, it's a gambler's outrage. Huge winnings snatched away on a technicality.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You pay to play. Your machine was wrong. You screwed up. How about a malfunction when the player was supposed to win and it shows a loss?

(END VIDEO CLIP)

WHITFIELD: A slot machine malfunction? All straight ahead on LIVE FROM.

(COMMERCIAL BREAK)

WHITFIELD: Well, they're getting ready to roll out the red carpet in front of Hollywood's Kodak Theater for the 78th Academy Awards. Lots of big names, not so big movies. What are the expectations?

Our own leading lady, entertainment reporter Brooke Anderson joins us live from Los Angeles, where we know Jon Stewart is going to be the leading man on Sunday.

You spent a little time with him.

BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT: I did, Fredricka.

WHITFIELD: And yesterday, you talked about him not really having a whole lot of nerves. But what's he thinking?

ANDERSON: Fredricka, I did get a chance to speak with him, and I'll get to that in just a second. But first, I want to, before this crowd dissipates, I want to take a look around. This crowd of people down here at the red carpet, that's about 35, 40 of Hollywood's biggest publicists. I see George Clooney's publicist stand down there. A lot of our publicist friends. They are actually taking a tour right now with officials of the red carpet area of how they're going to bring their stars, their celebrities, through the entrance, down the red carpet, and get them all the way into the entrance of the Kodak Theater. This is a very serious business to those publicists.

Progress has been made through the morning with the setup here. Most of the red carpet is down. And also, a canopy is put up, just in case it rains.

But as you mentioned, I did get to speak with Jon Stewart in the middle of his busy schedule. And, you know, he told me that he hopes to make us laugh. He also said that the rules are he must do between five and seven "Brokeback Mountain" jokes.

But he also admitted this is a tough gig. And we talked about in the past, hosts haven't done so well. Many thought David Letterman bombed back in 1995. Chris Rock wasn't a huge hit last year. So I asked Jon if he is afraid to fail.

(BEGIN VIDEO CLIP)

ANDERSON: Are you afraid at all?

JON STEWART, OSCAR HOST: I am afraid of a lot of things. But, you know, I've been fired a lot. So it's not -- you know. You never want to do badly, but you also never want to paralyze yourself thinking about doing badly.

You just want to -- you know, the idea that you think like, geez, some people haven't done it. You know, show business, you don't get into it for the health plan. You get into it for the opportunities and the fun, to try different stuff.

(END VIDEO CLIP)

ANDERSON: And he does have some experience hosting award shows. Fredricka, he hosted the Grammys back in 2001 and 2002.

WHITFIELD: And, Brooke, you know, some artists lead in to this with an advantage. So are there any expectations of who is likely to walk away a winner?

ANDERSON: You know, a heavy favorite with the Oscars this year is Philip Seymour Hoffman. I want to talk a little about him. He really transformed himself to portray tormented author Truman Capote in "Capote." He's really the favorite to win, but he does have some stiff competition in Heath Ledger from "Brokeback Mountain." Ledger has gotten rave reviews for his performance really a tortured soul, a man split between his family and true love, a fellow gay cowboy.

Now, "Brokeback Mountain" is also considered a heavy favorite, has an excellent chance to win best picture, but has a formidable opponent in the movie "Crash," which has gained a lot of momentum recently in the award season.

But interestingly, controversy now surrounds "Crash." Two lawsuits have cropped up around this movie. The first, two producers have sued movie financier Bob Yari, saying he withheld millions of dollars in profits from this film. The second lawsuit, Bob Yari in turn has sued the Producers Guild of America and the Academy, involving the fact that he was denied producer credit on the film. So, but regardless, "Crash" is nominated for six Academy Awards.

It is the 78th annual Oscars, and it will happen on Sunday evening.

WHITFIELD: And Brooke, speaking of "Crash," there's a lot of crashing going on in the background there. I'm a little worried about their abilities to put that tent up. What is going on?

ANDERSON: I think I need a helmet out here this morning, Fredricka...

WHITFIELD: Yes, you should have a hard hat.

ANDERSON: But they're putting the canopy up, all the way down the carpet. And yes, at times, it doesn't seem like it is the safest place to be, but they assure me that all is well and we are all safe here and they are going to get it together by Sunday.

WHITFIELD: Okay, right now it...

ANDERSON: A lot of work to be done.

WHITFIELD: Right now, it sounds a little frightening. All right, you be careful out there and get a hard hat or something.

ANDERSON: I know.

WHITFIELD: All right, Brooke Anderson, thanks so much.

Well, these are not the words you want to hear after winning millions in a slot machine.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: OK, your machine malfunctioned, so we can't pay you.

(END VIDEO CLIP)

WHITFIELD: That is so wrong. Just an excuse to avoid forking over the cash, perhaps, or is that a real possibility? LIVE FROM investigates the gambler's outrage.

(COMMERCIAL BREAK)

WHITFIELD: Talk about outrage. Imagine being told you just won more than $11 million and hours later, offered $500 measly dollars instead. It really happened to a gambler out West, whose dreams a big payout turned to nightmares.

Byron Harris of our affiliate WFAA investigates.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Hey! See, I brought this man some luck.

BYRON HARRIS, WFAA REPORTER (voice-over): The goal of any gamble gambler, take money home. But take a close look at WinStar machines, like those at most other casinos, and you'll see a tiny warning label like this: "Malfunction voids all plays and pays."

(on camera): Now if you were in a regular casino and you won and somebody came by and said no, you didn't win, the machine malfunctioned, what would you think?

UNIDENTIFIED MALE: I'd be -- I'd be mad.

UNIDENTIFIED FEMALE: I think they should pay up.

HARRIS (voice-over): Meet Stanley Rosemond of Arlington. Last summer, he was playing a machine, something like this, at WinStar. The word "congratulations" rolled across the bottom. He was escorted to a cashier's booth, where the employees were excited.

STANLEY ROSEMOND, SLOT MACHINE PLAYER: The attendant inside shows me the numbers. Said, would you like to see what you've won?

HARRIS: A screen on a computer monitor read $11,289,874.74. But after waiting several hours, Rosemond and his wife were taken to a large empty room and seated before four casino officials.

ROSEMOND: And there's four of them and two of us, and they're on one side and we're on the other side. And you know, we don't -- we don't know what to expect.

HARRIS: The mood was no longer festive. Then, one man spoke.

ROSEMOND: He says, OK, your machine malfunctioned, so we can't pay you.

PROF. WILLIAM THOMPSON, GAMING BUSINESS EXPERT: It should work. And if it doesn't work, the casino should stand behind it, because they're taking people's money away.

HARRIS: William Thompson teaches public administration at the University of Nevada, Las Vegas. The gaming business is his field of expertise. He says slot machines can malfunction, but unless the player is cheating, casinos owe it to their customers to pay off.

THOMPSON: You pay the player off. Your machine was wrong. You screwed up. How about a malfunction when the players supposed to win and it shows a loss?

HARRIS: WinStar Casinos, owned by the Chickasaw Indian Tribe, declined to talk to News 8 on camera. In a written statement, WinStar told News 8, "Mr. Rosemond is claiming a win bigger than the machine could possibly pay based on the type of machine, the demonination and the wager." The tribe says the machine could only pay $5,000.

Stanley Rosemond says WinStar offered him a series of "take it or leave" it settlements, first $800 which he turned down, then $1,199, $1 less than the casino would have to report to the IRS. Accept it on the spot, he was told, or leave with nothing.

ROSEMOND: We didn't know what we could do.

HARRIS (on camera): The key piece of evidence Rosemond had of what happened to him at WinStar was this card, which every player gets that tracks the player's identity and winnings. But Rosemond's card was confiscated as soon as he was told he'd won the big money.

Did you ask for the card back?

ROSEMOND: I did, several times.

HARRIS: What was the answer?

ROSEMOND: The assistant general manager says this card belongs to the Chickasaw Nation.

THOMPSON: This is duress. Any signature in those situations is under duress, should have no legal standing.

HARRIS (voice-over): Tell that to Stanley Rosemond's lawyer.

KAY VANWEY, ROSEMOND'S ATTORNEY: It is the Chickasaw Nation that makes the laws. It is the Chickasaw Nation that interprets the laws. It is the Chickasaw Nation that enforces the laws.

HARRIS: Kay Vanwey found out the tribe would not allow her to take legal action in the case. She was hired after he returned from Oklahoma and she received a letter from the tribe's lawyers saying "all inquiries you make may be at your own personal peril and those people you hope to represent."

VANWEY: If the intent was to intimidate me, and to frighten, me I certainly took it that way.

HARRIS: WinStar is the largest of 11 Chickasaw casinos in Oklahoma, casinos which netted more than $91 million last year, according to tribal records. Complaints about payment at Oklahoma Indian casinos are not rare.

Oklahoma assistant attorney general Bill Leader says he gets "about a dozen complaints from gamblers at Oklahoma Indian casinos a year," but he has no jurisdiction in resolving them.

Back in Las Vegas, Bill Thompson minces no words about the lesson behind this.

THOMPSON: Should have a sign on the border of Texas and Oklahoma saying you are about to enter Oklahoma and gamble in a casino. Two things can happen, they're both bad. You can lose and you can win -- you ain't getting paid.

(END VIDEOTAPE)

WHITFIELD: Oh my goodness. Machine malfunction, haven't heard of that one before.

Well, it's been a tough battle, but Oklahoma firefighters have gained the upper hand. They say they've contained an 8,000 acre blaze that has destroyed as many as 40 homes in southern Oklahoma and forced hundreds of people to evacuate. They also have a suspected arsonist in custody.

The fires have been fueled by 25 mile an hour gusts, daytime temperatures in the 90s, and one of the worst droughts since 1917. For more on this situation in Oklahoma and everywhere else, let's check in with meteorologist Jacqui Jeras. Hello, Jacqui.

(WEATHER REPORT)

WHITFIELD: That's nice skiing conditions indeed. All right, thanks a lot, Jacqui.

Well, the news keeps coming. We'll keep bringing it to you. The second hour of LIVE FROM is straight ahead.

(COMMERCIAL BREAK)

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