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Federal Agents Search Home of Former CIA Official; Life After Work; Government Stockpiling Americans' Secrets?

Aired May 12, 2006 - 15:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: It's the top of the hour. We are talking about the CIA meets the FBI over Kyle "Dusty" Foggo, who resigned last week as the agency's number-three official.
Carol Lin monitoring the situation for us now in the newsroom -- Carol.

CAROL LIN, CNN CORRESPONDENT: Carol, this story broke just two hours ago.

If you have been watching LIVE FROM, you know that the FBI is armed with search warrants. Agents are searching Foggo's home and office today, but no word yet on what investigators are looking for or what, if anything, they found.

Now, Foggo was already being investigated for a possible shady contract negotiation. You're going to get more details as we do.

But, in the meantime, you're hearing a lot of names known in Washington, Foggo, Cunningham, Wilkes. But they're probably strangers to the rest of you in America. So, who are they? And why should you care what they are up to?

CNN's John Roberts is on the case.

(BEGIN VIDEOTAPE)

JOHN ROBERTS, CNN SENIOR NATIONAL CORRESPONDENT (voice-over): The first investigation was launched by the CIA's inspector general, looking into whether Dusty Foggo did anything wrong in awarding a contract to his longtime friend, defense contractor Brent Wilkes.

The deal, to provide water and other household items for CIA personnel in war zones like Iraq and Afghanistan, was worth some $2.4 million. Foggo and Wilkes were also poker buddies, attending games that Wilkes had set up in hospitality suites at the Watergate Hotel and Westin Grand in Washington.

Clark Kent Ervin was an inspector general for the Department of Homeland Security.

CLARK KENT ERVIN, CNN SECURITY ANALYST: Often, where there's smoke, there's fire. And, certainly, I think we have seen, over the course of the last few years, a lot of corruption in Washington, needless to say. And because we're talking about not just any departments, but intelligence communities, particularly important that we take this seriously and investigate it thoroughly.

ROBERTS: Through the CIA's spokeswoman, Foggo insists he did nothing wrong, that government contracts for which he was responsible were properly awarded and administered. Foggo added that, if he attended occasional card games with friends over the years, they were that and nothing more.

But Foggo's problems don't end there. The FBI is also interested in him, as it investigates outstanding issues in the Duke Cunningham bribery scandal. The feds want to know what Foggo's full relationship was with Wilkes, who is described as an unindicted co- conspirator in the case of the disgraced Congressman.

According to another suspect in the investigation, Mitchell Wade, who is operating with the FBI, Wilkes hired a car service to pick up prostitutes for Cunningham and drive them to the Watergate or Westin hospitality suites.

An attorney for Wilkes told "The Wall Street Journal" his client had nothing to do with prostitutes. Foggo says he never witnessed any prostitutes at the poker games he attended and that any suggestion to the contrary would be -- quote -- "false, outrageous and irresponsible."

The car service, Shirlington Limousine, which shows this Virginia townhouse as its address, also denies any involvement with prostitutes. That point is significant, because any wrongdoing could jeopardize a $21.2 million contract Shirlington holds with the Department of Homeland Security to provide employee shuttle buses and executive limousines. It got the contract, despite the fact its CEO, Chris Baker, has a criminal record.

Does that surprise the former inspector general of DHS?

ERVIN: It surprises me, in the sense that this kind of thing shouldn't happen in any department, especially not in the Department of Homeland Security. On the other hand, the record of that department is very lax when it comes to vetting backgrounds. So, in a way, I'm not surprised.

ROBERTS: But DHS officials insist, it's nothing out of the ordinary. They check the backgrounds of drivers, but not company officials. And they praised Shirlington for performing with -- quote -- "utmost professionalism."

(on camera): And this investigation may go beyond the FBI and CIA. There are allegations that other members of Congress attended poker games and used the hospitality suites and hookers. With antics a potent election-year issue, House Democrats are pushing their Republican colleagues to open up a wider probe into what they call the -- quote -- "unparalleled corruption" of Duke Cunningham.

John Roberts, CNN, Washington.

(END VIDEOTAPE) LIN: Kyra, we hope to take you live to the scene, but, just a few moments ago, these fresh pictures came into the CNN Center. These are ground shots of Kyle "Dusty" Foggo's house, where the search is going on there, a push-in. And I apologize for the raw video, but this is just coming in.

You see the investigators standing there in the driveway. That white truck we saw from the air earlier, and we saw agents carrying things inside that truck. And there was also a trash can nearby. So, that's the scene a short time ago at the Virginia house of Kyle "Dusty" Foggo. We're waiting for live pictures. And we are going to take you to the scene as soon as we get them.

PHILLIPS: All right, sounds good, Carol. Thanks so much.

Now a look at your secrets and your government. Reports of a government program to track Americans' phone call patterns are setting off alarm bells.

But CNN's Brian Todd reports, there are lots of ways for the feds to learn your business.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): Finding out who you call, when, and for how long, an ominous intelligence-gathering capability -- at the National Security Agency, experts say, that's just the beginning.

GEORGE BAURIES, FORMER FBI COUNTERTERRORISM OFFICIAL: So, they actually have the ability to collect massive amounts of data.

TODD: George Bauries is a former FBI counterterror official who also worked with the NSA in counterintelligence operations. Bauries says the NSA can also collect your credit card and ATM records, airline and other travel data, medical and educational records.

BAURIES: They don't disclose exactly where it's stored, how it's stored. It's just that all the data is stored and that anything that would be sent electronically -- that would include, you know, satellite communications, electronic transfers.

And any software you might use to protect your information is, Bauries says, meaningless.

BAURIES: Any locks on files, any method of encryption, any of the over-the-counter programs that are openly available to the general public, that would not have the ability to stop the NSA.

TODD: That's what Bauries says the agency can do. How often does it tap into that information? Contacted by CNN, an NSA spokesman wouldn't respond to that question or Bauries' claims, sticking to a statement reading, in part, "It would be irresponsible to comment on actual or alleged operational issues."

Both the NSA and George Bauries say the agency is extremely careful not to overstep the law, if it feels the need to go beyond external records and monitor the content of a transmission. But privacy advocates say this is just too close to George Orwell's "Big Brother is watching you" scenario.

NANCY LIBIN, STAFF COUNSEL, CENTER FOR DEMOCRACY AND TECHNOLOGY: And with all of that information, the government could, theoretically, create a large database and digital dossiers, if you will, about your personal interactions, your social networks, and really paint a very rich portrait of your personal life.

TODD (on camera): How effective is all this data gathering in the war on terror? That's debatable, too. One former intelligence official says this capability has hurt al Qaeda, but he also says the terrorist group has adapted, to stay one step ahead, like using disposable cell phones and relying much more on human contact.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: One person, one vote, it's not just a democratic principle. It saved the life of an admitted al Qaeda terrorist. "The Washington Post" says the deliberation phase of the Zacarias Moussaoui trial almost broke down after repeated votes of 11-1 on one of those counts. Moussaoui could have gotten the death penalty if any three counts were unanimous. In the end, he was sentenced to two consecutive life terms. No one in the jury pool knows who voted against execution. All the ballots were secret.

A piece of Washington state history is gone. This is -- or, rather, was -- the Mountaineers Club Lodge at Snoqualmie Pass in the Cascades. Firefighters arrived this morning to find it in flames. And, soon, it burned to the foundation. That lodge is a fixture for skiers and hikers on the Pacific Crest Trail. Nobody was inside. No one was hurt. And no one knows what started the fire.

Now, this is quite the manhunt, on the ground, from the air, SWAT teams, search dogs, and the FBI, all in east Tennessee on the trail, they hope, of a man they believe is a cop killer.

Jeff Lennox from our Knoxville affiliate WATE has the details.

(BEGIN VIDEOTAPE)

JEFF LENNOX, WATE REPORTER: We are here in east Tennessee, where a massive manhunt continues this afternoon.

Both local and state law enforcement departments across the state of Tennessee are trying to find murder suspect Leon Houston. Now, both Leon Houston and his brother Rocky Houston, we are told by authorities, both were involved in ambushing Roane County Sheriff's Deputy Bill Jones and his ride-along partner, Mike Brown. Both of those individuals died at the scene.

Now, soon after, the primary murder suspect in this case, Rocky Houston, checked in at a local hospital with an injury to his hip. We're told, later on in the day, local law enforcement officials took him into custody.

As for the second murder suspect, Leon Houston, he is still at large this afternoon -- law enforcement agencies searching for him both on the ground and in the air. They have also set up several checkpoints throughout the area, in hopes of tracking down this murder suspect.

If you have any information on his whereabouts, you're asked to call the Roane County Sheriff's Department -- their number, 865-376- 5581.

I'm Jeff Lennox, reporting for CNN in Kingston, Tennessee.

(END VIDEOTAPE)

PHILLIPS: Hopes for the future, amid a highly uncertain present. It's graduation day in Baghdad, all the pomp and circumstance straight ahead on LIVE FROM.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: This is Corporal Mario Delgado (ph), stationed in Al Asad, Iraq.

I want to wish my mom, Lydia (ph), in Tustin, California, a happy Mother's Day. I want to thank you for praying for us out here and keeping us on your mind.

UNIDENTIFIED MALE: This is Hospitalman Russell Stisenet (ph), Al Asad, Iraq.

I would like to wish my mom a happy Mother's Day in Union City, California. I love you and I miss you.

UNIDENTIFIED MALE: This is Nascova Biata (ph) from Al Asad, Iraq, wishing my mom, Maria Ayalla (ph) from Van Nuys, California, the happiest Mother's Day.

UNIDENTIFIED MALE: How you doing, mom? This is Corporal Parker (ph) out here in Doha, Qatar, giving a shout-out over there in Victorville, California. I want to say happy Mother's Day. I love you.

UNIDENTIFIED MALE: Juan Garcia (ph) coming from Al Asad, Iraq, sending a shout-out to my wifey in (INAUDIBLE) California.

Happy Mother's Day, baby. Talk to you later. I love you.

(END VIDEO CLIP)

PHILLIPS: Well, a hopeful scene in Baghdad today, a rite of passage for some young adults who hope to change the world.

CNN's Ryan Chilcote reports. (BEGIN VIDEOTAPE)

RYAN CHILCOTE, CNN CORRESPONDENT (voice-over): It's not all death and gloom in Iraq. Certainly not at this Baghdad university, where it's graduation day for budding young scientists and engineers. Though, thanks to the violence, barely a third of the original members the class of 2006 are around to party.

UNIDENTIFIED MALE: Hi, there.

CHILCOTE: Frolicking to Iraqi folk songs and dancing to Baghdad's beats, everyone, it seems, was either armed with a camera or posing for one.

What makes this graduation party different from most others is the choice of dress.

(on camera): Alongside all the traditional costumes that the party, there are a lot of costumes that talk about the very contemporary, real problems that Baghdad faces today.

(voice-over): A couple dozen students dressed up like emergency workers and the teams that dispose of Baghdad's bombs, comic relief to cope with the violence that this year alone took the lives of eight students from the engineering department.

Students were warned by faculty not to talk to us about the war or politics.

This graduation party means life doesn't have to stop, even with all the violence and suffering. Halid (ph), an engineering graduate, says, we have to move forward.

Away from the public displays of happiness, some express concern the student body itself might fall victim to the sectarian division growing outside the campus's walls.

Even inside the colleges, Jamil (ph), an engineering student says, there are some sectarian problems.

More problems lie ahead for these students. Unemployment in Iraq stands at 40 percent. And there are particularly few openings for newly minted chemists, biologists and physicists in a time of war.

Ryan Chilcote, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: Some of the men and women serving in Iraq have made the ultimate sacrifice. We now bring you some of their faces and stories.

Army Staff Sergeant Gregory A. Wagner was killed when a roadside bomb struck his Humvee near Baghdad. Wagner was a member of the South Dakota Army National Guard. He was 35 years old. Marine Corporal Cory Palmer was wounded in Iraq May 1, just nine days before his 22nd birthday. His parents went to San Antonio to await his arrival at a military hospital, but Palmer suffered complications and died on the way, May 5. His uncle says Palmer was on his second tour of duty in Iraq.

Army Corporal Robbie G. Light was expecting to come home this week. He had been granted a leave to be with his wife, Elizabeth, for the birth of their first child. But Light died in Iraq May 1, when his M-1 tank was hit by a roadside bomb.

These are just three of the 2,434 men and women who have lost their lives in the Iraq war.

(COMMERCIAL BREAK)

PHILLIPS: TV ads for erectile dysfunction, promos for R-rated movies on what they used to call the family hour. If pop culture is robbing kids of their innocence, is there anything parents can do about it? We're talking about it when LIVE FROM returns.

(COMMERCIAL BREAK)

PHILLIPS: Well, a traumatic attack provoking troubling questions early this week. We told you that story of a second-grader in Missouri who says she was sexually assaulted on the school playground by boys her own age. Twelve boys have been suspended. And authorities are still investigating. Meanwhile, superintendent Creg Williams poses a question we're all asking.

(BEGIN VIDEO CLIP)

CREG WILLIAMS, ST. LOUIS PUBLIC SCHOOLS SUPERINTENDENT: What transpires in our community that allows such a thing to be on the minds of young men who are 6 and 7 years old?

(END VIDEO CLIP)

PHILLIPS: Well, there are many possible factors, but some of the blame is aimed at TV, movies and other pipelines of pop culture.

We want to talk it over with child psychologist Dr. Sylvia Rimm and Gloria Tristani, a former member of the Federal Communications Commission.

Great to have both of you ladies.

Sylvia, I want to start with you.

The Kaiser Foundation did this study and came up with some numbers. Thirty-two percent of kids ages 2 to 7 have a television in their bedroom. This TV really does have a huge impact on our children.

SYLVIA RIMM, CHILD PSYCHOLOGIST: Yes, it does. And it doesn't belong in any child's bedroom, not even in a teenager's bedroom. Televisions and computers belong in family rooms.

PHILLIPS: So, Gloria, just knowing the facts, does the FCC ever come together and say, look, it's our responsibility to monitor television, monitor how old these kids are and what is on at certain times, and -- and try to prevent any type of bad influence?

GLORIA TRISTANI, FORMER FEDERAL COMMUNICATIONS COMMISSION MEMBER: What the FCC actually does, it responds to citizens and parents' complaints about what is on television.

The FCC is not in the business of saying what should be on television, but it has the responsibility to respond to citizens and parents' complaints of what parents may think is inappropriate for their children.

PHILLIPS: Gloria, what about networks and -- and programming and standards and practices within the entertainment industry? Are they told -- or are there any laws that say all of us, as television producers, have to sit down and decide, OK, if this show is going to be on at this time during the day, more than likely, kids will be watching. So, we got have to make sure we don't have a lot of sexual content, cuss words. I mean, does that have to happen?

TRISTANI: Well, there actually is a law on the books that says that, between the hours of 10:00 and -- 6:00 in the morning and 10:00 at night, you cannot broadcast indecent or profane material.

And the FCC is in charge of enforcing that. And parents can complain if they think this law has been violated.

PHILLIPS: Wow. Well, if you watch TV between 6:00 a.m. and 10:00 p.m., I mean, just look at promos for "Desperate Housewives," you know?

(LAUGHTER)

PHILLIPS: I mean, that -- that is just one example.

But you see these type of promos coming -- we are actually looking at one right now. It sounds like, already, they are breaking the law.

TRISTANI: Well, it's in citizens' hands to complain. Parents have that option.

And the FCC has actually levied numerous fines against a lot of these TV stations and also radio stations. But parents also have tools that they can use, and they should use, to try and help guide their children's watching of television.

PHILLIPS: All right. Let's talk about those tools in just a minute.

But, Sylvia, let me ask you, do you think, because of promos like this and the fact that we're seeing almost a little bit of everything throughout the day, that sexuality has been devalued in the minds of our children, and so, when you see what happened in St. Louis, it doesn't really surprise you that they are fondling a young girl on the playground?

RIMM: Well, it -- it still shocks us.

But what I found in my survey of over 5,000 middle school kids, grades three through eight, is, indeed, we have stolen middle childhood from these kids. They are adolescents far too early. And the kids told me that, basically, they have seen it all on TV. They have seen it all on the Internet. And they try out what they see.

PHILLIPS: You probably can't tell me a lot of what they have told you. My guess is, it's pretty strong. But can you give me an example of something that might have shocked you, an age of a child, and -- and -- and what they told you they remember seeing on television?

RIMM: Well, I -- I -- I can't tell you some of the things, but I would like to tell you about an Internet story.

An 8-year-old was doing a search on the word melons, you know, the fruit?

PHILLIPS: Sure.

RIMM: And the first thing that came up on the search was pictures of women's breasts.

And I tried it myself. And, yes, sure enough it was there. That happened in school. And, of course, the school wasn't able do anything about it. She went to the principal and reported it. But imagine how she felt. She was doing the research with a -- with a boy.

(LAUGHTER)

PHILLIPS: Wow.

RIMM: It was very embarrassing to her.

PHILLIPS: Oh, no doubt. I mean, gosh, what do you do as a teacher? That is embarrassing.

PHILLIPS: Well, Sylvia, whether it's the Internet or whether it's on television, I guess I'm still sort of listening to the fact that -- I'm just really surprised that there's actually a law in the books that says, within 6:00 a.m. and 10:00 p.m., you know, the networks are not supposed to have certain explicit types of programming or promos.

There's got to be something else besides just people writing in and writing letters and complaining. I mean, they really should be held accountable, if, indeed, we continue to find a correlation between the influence of what is on television and -- and how kids are behaving.

RIMM: Well, it's happening.

They are doing things like playing pony on the bus. I -- I think you have some idea what that is all about. But it's sexual interest very early. By third grade, 15 percent of the kids are worried about being popular with the opposite sex.

And, developmentally, that's totally inappropriate. There's still supposed to be little kids. I hear things from kids like, well, you're not going to graduate high school and be a virgin, are you? So, television and the Internet have had a dramatic impact.

Incidentally, music, too, has its say. Some of the -- the songs that we hear have -- well, an example in my book was a song by Eminem that had the F-word mentioned seven times and the B-words mentioned five times in one verse of the song. All that has to have impact on our children.

PHILLIPS: Yes, we're talking about all that pop culture.

Gloria, I have got to ask you the same question about television. There has got to be someone or -- or some agency that can hold these networks responsible, if, indeed, a law is in the books. I mean, you really think just complaining and writing letters can do something about this? Because, as the years roll on, we're seeing more and more of the sexual content at all hours of the day.

TRISTANI: Well, the FCC has to do its job in enforcing these laws and fining the companies. Parents have to do their part, in monitoring and, in -- in my view, limiting how many hours their children spend in front of the TV to begin with.

And, actually, the networks in the industry have to develop best practices and have to pay attention and not just pay lip service and say, oh, we're giving parents the tools. The networks also have to do their part in putting more appropriate programming on the hours that children, and especially young children, are likely to be watching.

PHILLIPS: But, Gloria, we know this comes down to money. I mean, these networks make a lot of money off these shows. So, they are going to push the limit.

TRISTANI: They will push the limit, but if parents and citizens complain, if the government takes actions -- you know, I also encourage parents, when they see something they don't like, don't just complain to the FCC.

Call your local station. Call the advertisers of the station. That will get their attention.

PHILLIPS: Gloria Tristani, Dr. Sylvia Rimm, I sure appreciate both of your time today.

RIMM: Thank you.

TRISTANI: Thank you.

RIMM: Thank you.

PHILLIPS: Well, this next item won't sit well with Republicans, for a lot of reasons. A new CNN poll conducted by Opinion Research Corporation asked Americans who they think is more honest and trustworthy, President Bush or former President Clinton. Forty-six percent said Clinton. Forty-one percent said Bush.

Wolf Blitzer will have more poll results next hour on "THE SITUATION ROOM."

Well, some people are ready to swap the car for the scooter, but not mom. Up next, Ali Velshi joins me to talk about the spike in gas prices, the boom in scooters, and why a mom still wants her SUV.

But, first, CNN's Jennifer Westhoven has our weekly series "Life After Work."

(BEGIN VIDEOTAPE)

JENNIFER WESTHOVEN, CNN CORRESPONDENT (voice-over): Jimmy and Judy Smith are out in the desert, searching for bones of prehistoric life, like saber-toothed cats and giant sloths.

JIMMY SMITH, PALEONTOLOGIST: And you really would have to go look at it to see if it's bone, but I think I know what it is.

WESTHOVEN: They left jobs as financial planners to hunt for fossils hidden in the hills of Southern California.

JIMMY SMITH: Look at this. I wonder what that is?

WESTHOVEN: Jim's curiosity about the Earth was sparked years ago, when he was an Air Force pilot.

JIMMY SMITH: I was always up looking down at the Earth and looking at strange kinds of formations and wondering what the heck was going on there.

JUDY SMITH, PALEONTOLOGIST: And over here are some more of the bones of -- mammoth bones.

We've educated ourselves in the field of paleontology to a working level.

Over here, we have a giant land tortoise.

WESTHOVEN: Now they drill and dust and teach California schoolchildren about the prehistoric camels, mammoths and birds that roamed the earth millions of years ago.

JIMMY SMITH: We have very few worries and very much excitement. And I couldn't imagine a better situation than to live, say, the last third of your life.

WESTHOVEN: Jennifer Westhoven, CNN.

(END VIDEOTAPE)

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