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New Details in Ramsey Case; N.S.A. Wiretapping Ruled Unconstitutional, Administration Fights Back; Changes at the Academy Awards

Aired August 18, 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: Graphic gruesome details about the body of JonBenet Ramsey. A U.S. law enforcement source tells CNN that John Mark Karr knows things only the medical examiner, other investigators and JonBenet's killer could know. CNN's Susan Candiotti broke the story this afternoon, she joins me from Miami with more. What do we know Susan?
SUSAN CANDIOTTI, CNN CORRESPONDENT: Well until now we have heard that he knew about parts of the crime that had not been made public. Now according to a U.S. law enforcement official we are learning that he knew about graphic gruesome details about the physical condition of JonBenet Ramsey's body that had not been made public before. Information known only to the medical examiner and the investigators on this case that had been working it for at least a decade now. It is not clear how it is that Karr could have had access to this information that remains a mystery. But this is something authorities are clearly looking at. We don't know if it was the basis or a part of the basis for the arrest warrant that lead to his arrest in Thailand. Of course, this might be made public when Karr eventually makes it over here to the United States to make his first court appearance, we'll see whether that document becomes part of the court record. Kyra?

PHILLIPS: All right, Susan Candiotti, thanks.

Well a decade of dead-ends and a string of red herrings, investigators in Boulder, Colorado are surely used to frustration when it comes to the Ramsey case, but it can't be easy. CNN's Ed Lavandera has more on the latest twists.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN CORRESPONDENT: Investigators and prosecutors in the 10-year-old mysterious murder case of JonBenet Ramsey are trying to figure out how to separate truth from fiction, especially considering everything that the main suspect in this case now has said, John Karr. One of the people thrust into this investigation now has been a journalism professor at the University of Colorado who had been exchanging e-mails with Karr over the last two years. At some point those emails started to spook the journalism professor and he turned them over, we understand, to Boulder authorities.

Now the professor yesterday wouldn't reveal any of the details of those e-mails, but the "Rocky Mountain News" newspaper had obtained just a few of those and published excerpts from those e-mails. And one of them a very strange email where Karr writing to this professor asks him to come to this very spot, the home where JonBenet was killed, and on the ninth anniversary of her death asked him to read this poem. It read, "JonBenet, my love, my life. I love you and shall forever love you. I pray that you can hear my voice calling out to you from my darkness - this darkness that now separates us."

There were also some other e-mails. In fact in one of them he continues to write to the professor, "I will tell you that I can understand people like Michael Jackson and feel sympathy when he suffers as he has. He, himself he says is trapped in a world that he does not understand." So of course this thrown into the already confusing mix of information and details that we are trying to sift through that has come out in the last 24 hours after John Karr made those stunning statements in Thailand yesterday. And clearly one of the reasons why prosecutors in this case who have to try to weed out what is truth and what is not true in this case before they really come out and say that John Karr is the man they're looking for in the 10-year-old murder mystery of JonBenet Ramsey. Ed Lavandera, CNN, Boulder, Colorado.

(END OF VIDEOTAPE)

PHILLIPS: And we're going to have more from our Rusty Dornin with regard to the handwriting samples. We're getting new developments in about something that he has written in the past and comparing that to a ransom note in the Ramsey case. Rusty will be joining us in just a few minutes. Now, regardless of Karr's role in the Ramsey case, his emerging portrait is unnerving, even in Bangkok, Thailand, notorious for its child sex trade. Karr worked as teacher there in at least two elementary schools. CNN's Stan Grant has the latest.

STAN GRANT, CNN CORRESPONDENT: Yeah hi Kyra. We will get to his work in the schools in just a moment. But we heard Susan Candiotti there saying that here are so many questions to be answered by Karr when he makes it back to the United States. I could shed a little bit more light on when that could possibly happen now. Well Ann Hurst, the immigration and customs official visited him a little bit earlier this evening, we're showing you pictures now I think of Ann Hurst leaving the cell where Karr is being held and she was asked exactly where the situation is with returning him to the United States. She says that that process is still under way and she hopes that he'd be returned to the United States within the week or by the end of the week. So we should see some development there.

Now you're talking about Karr's record in schools here in Bangkok. I'm holding here an application for employment that Karr had written, that's a picture of Karr here on the corner. It's interesting you talk there about the handwriting and contrasting the handwriting styles with the ransom note in this case, this in fact is Karr's handwriting. Now in this he lists his qualifications, his experience and also referees. Now he applied for work at two different schools. One of the schools refused his application. The other put him on a two-week trial but he was not employed at the end of that, they found him to be a polite, clean cut character but they said that they were concerned about his attitude, his approach to discipline in the classroom, prone to outbursts and frightening the children and they did not proceed with his employment at the end of that. Kyra?

PHILLIPS: So Stan what kind of background checks do they do there in Thailand, did that ever happen when he applied for these teaching jobs?

GRANT: Very interesting, it's an interesting question you raise there because he'd been not just working in Thailand, but worked throughout the region in the past couple of years, traveling throughout here working as a teacher. And that issue about the background checks was raised today by the police general here in Thailand, questioning how people slip through the net, how someone like Karr who we know had a background involving child pornography in the states, how he had managed to slipped through to work in schools. He was wondering about -- the police general was wondering about the background checks and how thorough, in fact, they are. This of course is an ongoing problem here, Thailand known as a hot bed for sexual predators coming here and preying on children and perhaps working in the schools. Certainly in some cases working in the schools. Kyra?

PHILLIPS: Stan thanks. And Stan mentioned the handwriting there on that application. We're going to talk more about the handwriting with Rusty Dornin, she's actually been able to see some samples of John Mark Karr's writing, a connection possibly made as the investigation continues with that ransom note that was made during the Ramsey case. She's going to join us in just a little bit.

Meanwhile an immigration bust in Denver, a major break in a murder spree in Mexico. U.S. customs agents picked up Edgar Alvarez Cruz on Tuesday, hundreds of miles from where he is suspected of taking part in the rapes and murders of at least 10 young women in Flores, Mexico. Almost 400 women have turned up dead or have been reported missing there since the early 1990's. Human rights groups have long criticized Mexican authority's failure to catch the killers.

One of the biggest investigations in British history is getting bigger. Authorities say that every police department in the country is on the case of the alleged airline bombing plot. A prime concern, terror cells, potentially hidden in Britain's Muslim community. CNN's Dan Rivers met one Muslim cleric accused of preaching hate.

(BEGIN VIDEOTAPE)

DAN RIVERS, CNN CORRESPONDENT: What was your reaction, for example, on September 11th?

ABU ABDULLAH, FINSBURY PARK MOSQUE: Every sincere Muslim was pleased because America deserved a punch in the nose, you know, as many --

RIVERS: 3,000 people died that day.

ABDULLAH: 3,000 people was like a drop in the ocean compared to the millions of Muslims that have been killed. RIVERS: Abu Abdullah calls himself a cleric but his extremist views may be repugnant to the vast majority of Muslims, in fact, anyone who believes in God. One of the most outspoken Muslims in Britain, he's an associate of convicted terrorist, Abu Hamza, who's serving seven years in prison for inciting racial hatred and soliciting murder. And is wanted in the United States for trying to establish terror camps in Oregon. But Hamza's friend Abu Abdullah is still free, despite expressing views that come very close to inciting and glorifying terrorism. But he hasn't been charged with any crimes.

ABDULLAH: My honorable Sheikh Osama bin Laden and Sheikh Hayman Al Zawahiri, I love these people dearly for the sake of Allah. I couldn't express how much I love these people.

RIVERS: You love Osama bin Laden?

ABDULLAH: I love him more than myself.

RIVERS: Abdullah tries to use the Koran to justify terror.

ABDULLAH: The Muslims that obviously want to take up arms against the west, it's their Islamic right to do so. Islam is a peaceful religion but at the same time Islam is allowed to defend itself.

RIVERS: It's allowed to defend itself you'd say, is it allowed to attack the west?

ABDULLAH: Absolutely. If this person is killed by the west, then we have our rights to take it out on the west. Mainly the army, the British or the American army, government buildings, where they legislate from.

RIVERS: So is (INAUDIBLE) fair game?

ABDULLAH: Well absolutely of course its fair game for the Muslim.

RIVERS: So Tony Blair is a legitimate target, George Bush is a legitimate target?

ABDULLAH: Absolutely, absolutely, yes.

RIVERS: Do you think that America and Britain will be subjected to further attacks?

ABDULLAH: It should be.

RIVERS: A lot of people will be horrified by what you're saying, they think that you are bringing nothing but chaos and death and destruction and misery.

ABDULLAH: Well I'm not here to please the west or to please people's understandings. My people are being killed all over the world in many, many countries.

RIVERS: That doesn't justify killing other people.

ABDULLAH: It does justify it, of course it justifies it. When is it going to stop? You people need to know we're not going to take it any more. You want to know why Muslims in this country are understanding what they understand. They're sick of the west, they're sick of the (INAUDIBLE). I owe this country nothing.

RIVERS: And this from a man born and brought up in the United Kingdom who only converted to Islam later in life.

Do you think God really wants Muslims to go out and kill other people?

ABDULLAH: God doesn't instruct Muslims to go out and kill innocent people.

RIVERS: That's what you're advocating.

ABDULLAH: No, no, that's what you're saying. That's the terminology you're using and the words that you're actually using.

RIVERS: Well let's clarify this, what are you saying now?

ABDULLAH: We call it self-defense. The difference between me and you is faith. The difference between me and you is trying to enjoy the right and forbid the evil. The difference between me and you, I live for the sake of God and you live for the sake of the devil.

RIVERS: Dan Rivers, CNN, London.

(END OF VIDEOTAPE)

PHILLIPS: Well now more than ever you need to know your enemy. Join us Wednesday night August 23rd for a special "CNN PRESENTS, In the Footsteps of Bin Laden." It's a "CNN PRESENTS" special investigation, our team actually traveled to four continents and ten countries to investigate the life of Osama bin Laden and his power over allegiants and drones who do his deadly bidding. Next Wednesday night, August 23rd at 9:00 eastern only here on CNN.

Music, dancing, flags and pride filling the streets and towns of southern Lebanon surrounding the arrival of Lebanese soldiers, it's historic. There's been no regular army presence in that part of Lebanon in decades. That's Hezbollah country. U.N. peacekeepers will join them but when and how many and from where? Those details are still a little fuzzy. Several nations are stepping up, promising troops and military equipment. Among them, those with long histories of peacekeeping duty, Bangladesh, Malaysia and Indonesia. Nepal offers a mechanized battalion, Denmark will send two ships to the Lebanese coast. France says it will increase an observer force already in place.

Now most state fairs you're looking for the tilt-a-whirl, the funnel cake or the livestock shows right? Well, not the next president of the United States, but this isn't most state fairs. LIVE FROM goes to Iowa right after the break.

(COMMERCIAL BREAK)

PHILLIPS: Unconstitutional says a federal judge, indispensable says President Bush a day after the administration's warrantless eavesdropping was found to violate the first and fourth amendments. Mr. Bush claims the program is critical to the war on terror.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Those who herald this decision simply do not understand the nature of the world in which we live. This country of ours is at war. And we must give those who are -- whose responsibility it is to protect the United States, the tools necessary to protect this country in a time of war. The judge's decision was a -- I strongly disagree with that decision, strongly disagree. That's why I instructed the Justice Department to appeal immediately.

(END OF VIDEO CLIP)

PHILLIPS: Well, the program continues while that appeal is in progress. The very phrase says America, state fair, down-home, Main Street, stars and stripes, God and country. Where better for White House wanna-bes to rub elbows and down a few funnel cakes with real people and where better for our Bob Franken to spend a warm summer Friday. Hey, Bob.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: You forgot American Pie, Kyra. And I have to tell you, if they had it here, it would be deep fried. They have deep fried everything. This is the Iowa state fair otherwise known as the presidential candidate jobs fair. We have the latest in the parade of candidates is the senate majority leader, the republican Bill Frist. He was here just a few hours ago doing what every candidate does and that is to make sure that nobody gets any shots of him on camera eating anything.

(BEGIN VIDEOTAPE)

FRANKEN (voice-over): Did you know there are 20 different foods on a stick at the Iowa state fair.

UNIDENTIFIED FEMALE: Welcome to Iowa State fair.

UNIDENTIFIED MALE: Nice to see you. How are you?

FRANKEN: And about a dozen possible candidates for president.

BILL RICHARDSON: Nice to see you, Bill Richardson.

FRANKEN: Democratic New Mexico Governor Bill Richardson happened to be in the neighborhood yesterday, so was one of the republicans.

SAM BROWNBACK: Sam Brownback.

FRANKEN: So far this month, ten potential candidates have stopped by the state fair here, a year and a half before the all- important Iowa party caucuses. Joe Biden, Delaware democrat, was here Wednesday a day after republican John McCain. The visitors have included a roll call of presidential wanna-bes. Among them Pataki, Bayh, Gingrich, Bill Frist and John Kerry are coming. Meanwhile, those they'll need to impress are waiting to have their pet issues addressed.

UNIDENTIFIED FEMALE: Cutting taxes.

UNIDENTIFIED MALE: Yeah, cut taxes, stopping crime, family values.

UNIDENTIFIED FEMALE: I would like to see them address renewable energy and emphasize that it is not the price of energy but our dependence on foreign oil.

UNIDENTIFIED MALE: In my opinion for the next election, I really want to see that they are pro-military and to treat our military guys right, don't just leave them high and dry overseas.

FRANKEN: What's the core issues for you, what are you -- ?

UNIDENTIFIED FEMALE: Right now it's the war.

FRANKEN: Right now the candidates are here mainly to be seen.

DAVID RELAWSK, UNIVERSITY OF IOWA: Media comes to Iowa, the candidates come to Iowa, the media comes to Iowa. There's sort of a back and forth symbiotic relationship.

FRANKEN: But for normal people the political cattle show doesn't compare to the real thing, or the real bull or to the butter sculpture of a cow, or Waldo the huge hog. No lipstick on this pig.

(END OF VIDEOTAPE)

FRANKEN: And so you know Kyra, what the rule of thumb is for presidential candidates, as well as fair goers, and that is -- watch your step.

PHILLIPS: I'm sure you've been watching yours. No lipstick on the pigs, huh?

FRANKEN: No lipstick on that pig.

PHILLIPS: All right. Bob Franken we'll be following you that's for sure. Hope you get some time to enjoy yourself. Bob Franken thanks a lot. Well coming up the suspect in the JonBenet Ramsey case, a ransom note from the last decade. A yearbook from 20 years ago, does the handwriting match? And what message could be revealed. Our Rusty Dornin explains straight ahead.

(COMMERCIAL BREAK)

PHILLIPS: Well, as the season rolls around every year we talk a lot about those swag bags that celebrities walk around with. But now the IRS is taking an interest as well. Susan Lisovicz live from the New York Stock Exchange with that story. Susan, I mean those bags, we're talking sometimes $100,000, right, if not more?

SUSAN LISOVICZ, CNN CORRESPONDENT: I think you need a weight lifter. I don't think it began that way 70 years ago. Yeah and so the point is the IRS says it's income, it's not a gift. This is not the kind of stuff you get from your Aunt Millie. Hollywood celebrities who received gift bags this year can expect to get one final item and that is a tax form. The Academy of Motion Pictures Arts and Sciences will send 1099 tax forms to presenters and performers who received the swags this year. Those gift bags were worth about $100,000 each and included items like a four-night stay at a Honolulu hotel, and a vintage silk kimono and a Krupps espresso machine. The academy also paid a settlement to the IRS to cover taxes owed on the gift baskets given out in previous years and it says that when the next Oscar ceremony rolls around in March, celebrities will no longer receive the gift bags. Kyra?

PHILLIPS: Well, the Emmys, the Emmys are coming up, what do you think? Do away with those gift bags as well?

LISOVICZ: Well the Academy of Television Arts and Sciences says it's premature to consider doing away with the gift bags entirely but this year it's sending a letter to Emmy presenters, reminding them of their tax obligations. They'll only get a gift basket only if they send back a signed copy of the letter. This year's Emmy gift baskets estimated at about $30,000. It includes luggage, skin care products and a five-night vacation at a New Zealand country manor. But many celebrities may decide the swag is worth paying thousands of dollars in taxes. Experts say that fewer than 10 percent of the high-end items like cruises and trips are redeemed. Kyra?

PHILLIPS: All right. How are things looking on Wall Street?

LISOVICZ: They're looking pretty good and it's been a terrific week. I mean we're talking about modest gains. It's been fluctuating. Investors have digested a disappointing earnings report from Dell and a big drop in a key measure of consumer sentiment. Shares of Ford are falling nearly two percent after the company said it will cut its production in the fourth quarter. Ford will also shut 10 manufacturing plants for much of the rest of this year, as it tries to trim costs and deal with slumping sales of its pickup trucks and SUVs. Well right now the Dow industrials going five for five up 28 points or about a quarter of a percent, the NASDAQ is up four points, also about a quarter percent. That's the latest from Wall Street, I'll be back in about a half hour with a roundup of the trading day. Stay with us, LIVE FROM will be right back.

(BEGIN VIDEOTAPE)

ANDY SERWER, CNN CORRESPONDENT: In this well-known commercial the baker looks less than enthused to start his day. But for 50-year- old Dick Schindel, doughnuts are making retirement that much sweeter. The former teacher retired in 2004, thanks to his school pension and now runs Dick's Mini Donuts full time. Schindel sells them at fairs and markets around his hometown of Aurora, Illinois. He was drawn to the treats nearly 20 years ago at a Colorado festival.

DICK SCHINDEL, DICK'S MINI DONUTS: There was a long line of people at this food booth and so we got in the line and purchased these donuts. I never seen anything like this before.

SERWER: Eight years later he bought the equipment and started making doughnuts. He has no employees but hires former students to help work events. Schindel says he makes a modest profit but he does it more to keep active and meet people.

SCHINDEL: They really love the product and that's given me a lot of satisfaction. If I don't come to the Farmer's Market, I hear it from people, where were you, how dare you not be here.

SERWER: And as popular as the doughnuts are, some of the appeal is just watching the machine.

SCHINDEL: Normally I have a sign up that says "cheapest entertainment in town." And people will stand and watch it because it's fascinating.

SERWER: Andy Serwer, CNN, New York.

(END OF VIDEOTAPE)

(COMMERCIAL BREAK)

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