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CNN Live Today
Officials Fear al Qaeda Attack; Kidnapped Marine Safe in Lebanon; Enron Chairman Indicted for Fraud; Some Question Edwards' Lawyer Background
Aired July 08, 2004 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, ANCHOR: Defense officials are on Capitol Hill to brief Senators on a developing terror threat. CNN has learned that al Qaeda is in, quote, "Operational phase for an attack within the U.S."
The strike would be timed before the presidential elections. A live report from Capitol Hill coming up in just about a minute.
The former chairman and CEO of disgraced energy giant Enron is in custody this morning and on the docket. He has surrendered to FBI officials in Houston on criminal charges that the company cooked its books and hid billions of dollars in debt. Ken Lay is due in federal court in just over two hours from now.
In Iraq, at least four U.S. Soldiers are confirmed killed in a mortar strike on a National Guard post in Samara. An Iraqi National Guard member was already killed, and an American soldier is apparently missing.
The National Guard headquarters is used by soldiers from the 1st Infantry Division, and it collapsed after being struck. Twenty soldiers and three Iraqis were wounded.
Secretary of State Colin Powell speaks this hour on Capitol Hill. You see him there on the left part of your screen. He is due to address a half-day conference on African policy, which was commissioned by Congress. It focuses on the U.S.'s role to combat the devastating spread of AIDS on the continent and the need to develop its economy.
We're going to get started this morning with breaking news. CNN has learned of a new intelligence concern about a looming al Qaeda strike here in the U.S.
Homeland defense officials are preparing a news conference for the top of next hour. You will see that live right here on CNN. Meanwhile, CNN congressional correspondent Ed Henry is on Capitol Hill with more on this developing story -- Ed.
ED HENRY, CNN CORRESPONDENT: That's right, Daryn. All 100 Senators, just -- a meeting is breaking up. They went behind closed doors in the secure room of the Capitol at 9:00 a.m. Eastern Time to talk about these threats in general, especially in relation to the Democratic and Republican conventions coming up this summer.
There's been a flurry, a series of meetings this week in Washington related to the conventions.
Now, you're seeing -- this is the crypt of the Capitol. This is the elevator where Senators come out of the secure room in the Capitol.
I just spoke to one Senator who was in the room. And I said, "Look, we're hearing about this -- these general threats. But in theory, we've known for months that these conventions would be tempting targets for terrorists. Is it nothing more than that?"
And this one Senator told me, quote, "It's more than theory. Let's put it that way." The Senator went on to say that there were -- there was specific information passed on in the meeting.
The briefers were supposed to include CIA director George Tenet, also FBI director Mueller. And this Senator said that there was specific information passed on.
Obviously, this Senator and others I talked to would not get into any detail. So we're still trying to sort out what was passed on.
Now, also politically speaking, I can tell you that Democrats up here are privately starting to raise questions about these intelligence meetings. Why is this information coming out?
Now, they think -- Democrats, that is, think it has something to do with the timing of Senator John Edwards being rolled out this week as the V.P. nominee.
Obviously Republicans reject that. Republicans are saying that this information is just coming out now, because it's all coming together.
We've heard in recent days that the only reason why the Bush administration officials brought in senior congressional leaders and now all rank and file House members and senators in the last two days to discuss this is because members of Congress were just on a recess. And it's only convenient now that they're back in town to talk about this.
But Democrats now starting privately to raise political questions. Why are they doing that?
Well, these meetings started on Tuesday evening. There was a very hush-hush meeting. Congressional leaders were called Tuesday morning by the White House and said, "Come over to the White House Tuesday evening to the situation room."
Vice President Cheney was there. The FBI, the CIA was also represented. All the top Democratic and Republican congressional leaders went over there. They spoke, as I mentioned earlier, about the conventions.
Obviously, Daryn, these are the first national political conventions that will be held post-9/11. So they want to make sure that everyone has their guard up, in the words of Bill Frist, who was at that White House meeting.
He told me yesterday that this was just about getting everyone prepared. They don't want to scare anyone. But I can tell you that, based on what I just heard from this one senator, there is more than just theory now about the potential for terrorist attacks over the summer -- Daryn.
KAGAN: And those are some very serious allegations on the part of some Democrats, to say that the White House, or the Bush administration would put these ideas out there just as a matter of a political play.
Do you expect that those of us who are not behind those closed doors with the senators will get more information? Of course, we have the news conference coming up. But specific information about what this threat might be later today?
HENRY: Very difficult to get that specific information from people up here on Capitol Hill, especially on the record, because they're told at these briefings to keep it under wraps. Some of the information they receive is classified.
That's why that one Senator was just telling me, generally speaking, that it's more than just a theory. There's specific information there.
We will see what -- obviously what homeland security secretary Tom Ridge has to say later this morning. But as you know from experience, Daryn, at a lot of the briefings, we hear general information. But it's very hard to pinpoint specific information for intelligence reasons.
But also officials are walking a very fine line here about not scaring people, trying to reassure them. But also trying to get them timely information, to say, look there's information out there. You need to know about it.
And as you mentioned, the political charges that are going to start flying back here, back and forth, you're right. Those are heavy charges from Democrats. They don't have anything to back it up now; it's just suspicion.
But I can tell you that obviously that this is a presidential election year. You also have the House and Senate, a tight margin there. There are a lot of tough races. And you're going to see these charges flying back and forth, Daryn.
KAGAN: Ed Henry on Capitol Hill, we will cut you loose to go do some more reporting. And we'll bring you back later in the morning.
Let's bring in our Mike Brooks, who's been talking to his sources in the nation's capital. The same word of this potential terror threat? Is it spreading to other agencies around Washington?
MIKE BROOKS, CNN CORRESPONDENT: Talking to some of my federal law enforcement sources, they're telling me that they really haven't heard of any new intelligence.
What this intelligence is that the senator was speaking of that's specific, we don't know. We don't know what Tom Ridge is going to tell us later on at about the 11 a.m. hour either, Daryn.
But what we do know is they're not supposed to raise the threat level. So if there is specific information about al Qaeda going operational here in the United States, and they don't raise the threat level, then what kind of information, exactly, do they have?
But my sources tell me that all the time in the halls of the FBI headquarters and the halls of DOJ, they're always concerned about when they raise the threat level that the citizens in the country will get alert fatigue. That it's the old cry wolf syndrome, if you will. And they want to try to avoid that. But we are in a full disclosure mode. Whether this is just another vigilance alert or not, that remains to be seen.
KAGAN: And I think some people still confused by the whole alert level and what different colors mean. Currently -- I think we have a graphic to show this -- we are at yellow, which means elevated. We have seen it go up before.
BROOKS: We've seen it go up a number of times to high. And then usually it lasts a number of months and it goes back down again.
Now with the upcoming conventions in Boston and in New York, will it go to orange? Right now it doesn't look like they will.
But if they have specific information about operational phase, about a pending attack against the citizens of the United States, then they need to go to orange.
But there's a lot of things that go along with that, Daryn. In New York City and Washington, they've been more at a modified orange since 9/11, if you will, than any other city.
KAGAN: They've never really come down.
BROOKS: They've never really come down. But some of the other municipalities, it costs a lot of money over time. You know, just the manpower being out there. And also officers. If you work officers too long, you know, do they get tired? Does their -- Do they become complacent?
There's a lot of things to think about. And again, we have to worry about alert fatigue with the citizens here in the country.
KAGAN: Mike Brooks, we will hear more from you later in the morning.
And of course, we'll be listening very carefully to the news conference. CNN will have a live news conference -- this upcoming news conference, we'll live coverage with Homeland Security Secretary Tom Ridge. That is scheduled at the top of the hour: 11:00 Eastern, 8:00 Pacific. You're going to see it live right here on CNN. In Iraq today, another militant group is threatening to kill a civilian. The group released a videotape statement saying that it will kill the Filipino hostage unless its country's troops leave Iraq. Officials of the Philippines are working with Iraqi authorities, trying to gain the hostage's release. There are currently around 50 Filipino troops in Iraq. That is down from about the initial deployment of about 100.
A source close to the family of missing U.S. Marine Corporal Wassef Hassoun says that he is safe and with relatives in Lebanon. But his exact whereabouts are still unknown. And military investigators are looking at several theories.
Our Miguel Marquez is outside the Hassoun family, their home in West Jordan, Utah.
Good morning, Miguel.
MIGUEL MARQUEZ, CNN CORRESPONDENT: Good morning to you, Daryn.
The mystery seems to get a little bigger and also seems to be moving toward resolution all at the same time.
The source we talked about, close to the family, saying that he is this in Lebanon and is safe. The foreign ministry, the Lebanese foreign ministry, now confirming that as well, that Hassoun is in Lebanon with his family.
The other thing that that source is telling CNN is that Hassoun will make contact, or connect, as he put it, with the U.S. State Department in the -- in the hours ahead, presumably.
The other twist in this whole thing is that CNN has learned that the Naval Criminal Investigation Service has been investigating this case as a missing persons case since around July 19, when Hassoun went missing from his unit in Iraq.
A public information officer with the Marine Corps in D.C. said that the criminal investigation service gets involved when there is some question as to why the person disappeared, and they will consider everything, from being kidnapped by insurgents, to a possible hoax perpetrated by Corporal Hassoun.
Officially -- officially by the Pentagon right now, he is still listed as captured.
All of this, of course, can be resolved, or will be resolved once Hassoun is seen and heard from by U.S. officials. Pentagon officials tell CNN that if he is recovered safely, there are a couple of key questions, he is going to have some pretty good answers to. And those are essentially, the basic questions we all have: how did he escape his captors and how in the world did he get to Lebanon -- Daryn.
KAGAN: A lot of questions. It seems like more and more keep popping up. We'll be checking back with you, Miguel Marquez, in Utah. Thank you. Ten minutes past the hour. Let's move on to the Enron investigation. It has reached the top of its corporate ladder.
Former chairman and CEO Kenneth Lay appears in court two and a half hours from right now, as his indictment will be unsealed. Our Jen Rogers is covering the case, and she is in Houston this morning -- Jen.
JEN ROGERS, CNN CORRESPONDENT: That's right, Daryn.
And the indictment actually just getting unsealed a very short time ago. We've just been handed copies of it.
It is a superseding indictment, which means that the charges against Ken Lay have been added to charges that have already been filed by the government against two former Enron executives, Richard Causey and Jeffrey Skilling. Jeffrey Skilling, of course, the one- time CEO of Enron.
Now, this indictment is 65 pages long. It is an 11-count superseding indictment. Among the charges Ken Lay will be facing: conspiracy to commit wire and securities fraud, also bank fraud.
Now, Ken Lay got an early start to this Thursday morning in Houston, turning himself in to the FBI. We are told that he was photographed and fingerprinted there.
Then a short drive over to the federal courthouse in Houston. He entered through the back door in handcuffs. He said at that time to the media gathered that he would have something to say later today.
So far, what we have heard from Ken Lay came through a spokeswoman last night. And in that statement, Ken Lay said, "I have done nothing wrong. And the indictment is not justified."
Now, Michael Ramsey, Ken Lay's attorney, did come out and speak to reporters here, basically on the courthouse steps a short time ago, defending his client, saying that he is not guilty. And also saying that they will have a press conference later today in which Ken Lay himself will talk.
We're also expecting to hear from the Department of Justice later today as well -- Daryn.
KAGAN: The question for people watching this, why is this taking so long for the government to file these charges?
ROGERS: Well, this is a complicated case, many people say. And as you said, they have been working their way up the corporate ladder. This has been done, many lawyers say, in classic prosecutorial fashion, which means you start small; you start cutting deals; and then you work your way up the food chain. They have made their way here.
Now Ken Lay's lawyers say it has taken a long time because there isn't a very good case against him. So there are two sides to that question.
KAGAN: All right. Look forward to that indictment being unsealed to learn more about the charges against Ken Lay. Jen Rogers in Houston.
Ken Lay, by the way, was the grand architect, building Enron from a small pipeline company to a giant energy trader. The fall was pretty steep.
In 2000 Enron was one of the ten biggest companies in the U.S. Enron then filed for bankruptcy on December 2, 2001. It was one of the largest corporate bankruptcies in U.S. history. More than 5,000 workers lost their jobs and pensions, and investors lost billions of dollars.
One of those employees who lost her job and retirement benefits appeared on CNN's "PAULA ZAHN NOW" and reacted to her former boss's indictment.
(BEGIN VIDEO CLIP)
ALBANE PERRINE, FORMER ENRON EMPLOYEE: Those responsible are being held accountable. And, you know, in the end, I think the money lost is a loss I'd like to have some of it recuperated. But it's nice to know that he's -- he's being brought to justice.
(END VIDEO CLIP)
KAGAN: For the latest on the Ken Lay indictment and a list of former CEOs under fire, log onto CNN's Money.com for our special report. It's called "Scandal, Inc."
John Edwards' career as a lawyer, how does it play in the court of public opinion? We'll take a closer look just ahead.
And coming to America, a controversial play about life in prison at Guantanamo Bay. We'll tell you about the politics behind the premiere.
Later, going for an incredible record. Lance Armstrong pedals towards victory.
(COMMERCIAL BREAK)
KAGAN: Presidential candidate John Kerry says that his political pairing with fellow Senator John Edwards offers Democrats what he's calling a dream team.
That rosy assessment of the Democrats' presumed ticket is shared by the last party member to hold the Oval Office. That would be former President Bill Clinton.
(BEGIN VIDEO CLIP)
BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: Edwards ran second in the primary process to John Kerry. And he was energetic and articulate and popular, even with a lot of people who voted for Senator Kerry. People know he has great potential.
Secondly, he was on the intelligence committee. It's not like he has no experience at all.
Thirdly, he is running for vice president with more international experience than President Bush ran for president with just four years ago.
(END VIDEO CLIP)
KAGAN: Tune in tonight to hear more from former President Clinton and his interview with our Christiane Amanpour. You can see that on CNN's "NEWSNIGHT," 10:00 Eastern, 7:00 Pacific.
The profession that catapulted John Edwards to being a self-made millionaire could also shape his political fortunes.
Within hours of being named as Kerry's running mate, John Kerry's -- John Edwards' career as a personal injury lawyer came under attack in the court of public opinion, and political maneuvering.
Our congressional correspondent, Joe Johns, has a look at that.
(BEGIN VIDEOTAPE)
JOE JOHNS, CNN CORRESPONDENT (voice-over): Before he was a running mate, a senator or even a candidate, John Edwards was an enormously successful trial lawyer.
Michael Dayton spent years tracking his work.
MICHAEL DAYTON, EDITOR, "N.C. LAWYERS WEEKLY": In a typical year, he would have four or five verdicts or settlements over $1 million. In another year he might have eight.
JOHNS: The best-known Edwards case, little Valerie Lakey of Raleigh. Five years old at the time, she won $31 million for catastrophic intestinal injuries when she sat down on a swimming pool drain with a defective cover.
The Griffins of Charlotte got $23 million after their daughter Bailey was born with severe brain damage.
In the '90s, Edwards reported 42 verdicts and settlements, totaling $174.6 million for people claiming medical malpractice, personal injury, malfunctioning product.
The Edwards key...
(END VIDEOTAPE)
KAGAN: We're going to break into the story. We want to go to Capitol Hill now. Majority Leader Frist at the microphones after a briefing with security officials.
Let's listen in. SEN. BILL FRIST (R-TN), MAJORITY LEADER: The essence of the briefing is that during this period of elections, this campaign season, that there is increased risk of a terrorist attack in the United States of America with regard to homeland security.
The nature of that risk is a very nonspecific. But I felt that it was important, since there is general intelligence that there may be an attempt to disrupt elections, that our colleagues be notified, that what is now being discussed so that appropriate precautions can be taken.
The Department of Homeland Security has been very aggressive in terms of prevention and protection. The secretary will be making his statement later today. He's going to have a news conference later today. There's obviously no reason for panic or no reason for paralysis.
But the fact that general intelligence, that the country is at some increased risk between now and the time of the presidential elections, is important for people to be aware of that.
UNIDENTIFIED FEMALE: (UNINTELLIGIBLE)
FRIST: What?
UNIDENTIFIED FEMALE: Will the terror threat be raised?
FRIST: The -- I would doubt, though I don't know. We'll wait to see what the secretary says as to whether or not the official threat, color threat that the American public sees will be raised. There's certain criteria that are used.
What is clear is that law enforcement has generally been notified that there are enhanced activities on behalf of law enforcement around the country to engage in deterrence and prevention.
And again, this is -- this is not a major announcement. It's just the fact that the reality is of increased risk here in the homeland over the next several weeks and next several months.
I'll take one more question.
UNIDENTIFIED MALE: (UNINTELLIGIBLE)
FRIST: Yes. We had the opportunity to raise lots of questions and lots of answers. It's a classified briefing. But there will be hearings today in the United States Congress, looking at the incidents surrounding the governor of Kentucky's airplane entering airspace. And so most of the information will come out at that point. We did not talk about the details of that.
Thank you all very much.
KAGAN: That was Senate Majority Leader Bill Frist, commenting after he came from behind a closed-door classified briefing, giving us a little bit more information about what we might expect to hear at the top of the hour.
Defense -- Department of Homeland Security chief Tom Ridge will be holding a news conference, talking about what you heard Senator Frist mention as the increased risk of a terror attack in the months leading up to the elections in November.
But he says, Senator Frist, this is not a major announcement and there's no reason for panic.
Some Democrats on Capitol Hill accusing the Bush administration of using this information to try to deflect information away from the announcement yesterday that John Edwards will be John Kerry's running mate.
We will have much more on this. Once again, that news conference will be seen live here on CNN at the top of the hour with Tom Ridge.
Also I want to tell you about something later tonight here. John Kerry and his wife, Teresa Heinz Kerry, will take a break from campaigning to field your questions. They'll be joining our Larry King. That's tonight at 9:00 Eastern, 6:00 Pacific right here on CNN.
We have a lot more to cover, and we're back in a moment.
(COMMERCIAL BREAK)
(WEATHER REPORT)
(COMMERCIAL BREAK)
KAGAN: Now in the news, the nation's top intelligence and homeland defense officials are on Capitol Hill to brief senators on a developing terror threat. CNN has learned that al Qaeda is in, quote, "operational phase" for an attack within the U.S. The strike would be timed before the presidential elections.
Two hours from now, former Enron chairman Kenneth Lay is expected in a Houston courtroom to hear probable charges of fraud and making false public statement. The grand jury indictment was unsealed this morning.
Lay surrendered to authorities. In a statement, Lay said he has done nothing wrong.
Also this hour, the CIA hosts a farewell party to its outgoing chief, George Tenet. The embattled director announced his resignation last month amid reports accusing the agency of intelligence failures before and after the 9/11 attacks. Tenet officially leaves office on Sunday.
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Aired July 8, 2004 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, ANCHOR: Defense officials are on Capitol Hill to brief Senators on a developing terror threat. CNN has learned that al Qaeda is in, quote, "Operational phase for an attack within the U.S."
The strike would be timed before the presidential elections. A live report from Capitol Hill coming up in just about a minute.
The former chairman and CEO of disgraced energy giant Enron is in custody this morning and on the docket. He has surrendered to FBI officials in Houston on criminal charges that the company cooked its books and hid billions of dollars in debt. Ken Lay is due in federal court in just over two hours from now.
In Iraq, at least four U.S. Soldiers are confirmed killed in a mortar strike on a National Guard post in Samara. An Iraqi National Guard member was already killed, and an American soldier is apparently missing.
The National Guard headquarters is used by soldiers from the 1st Infantry Division, and it collapsed after being struck. Twenty soldiers and three Iraqis were wounded.
Secretary of State Colin Powell speaks this hour on Capitol Hill. You see him there on the left part of your screen. He is due to address a half-day conference on African policy, which was commissioned by Congress. It focuses on the U.S.'s role to combat the devastating spread of AIDS on the continent and the need to develop its economy.
We're going to get started this morning with breaking news. CNN has learned of a new intelligence concern about a looming al Qaeda strike here in the U.S.
Homeland defense officials are preparing a news conference for the top of next hour. You will see that live right here on CNN. Meanwhile, CNN congressional correspondent Ed Henry is on Capitol Hill with more on this developing story -- Ed.
ED HENRY, CNN CORRESPONDENT: That's right, Daryn. All 100 Senators, just -- a meeting is breaking up. They went behind closed doors in the secure room of the Capitol at 9:00 a.m. Eastern Time to talk about these threats in general, especially in relation to the Democratic and Republican conventions coming up this summer.
There's been a flurry, a series of meetings this week in Washington related to the conventions.
Now, you're seeing -- this is the crypt of the Capitol. This is the elevator where Senators come out of the secure room in the Capitol.
I just spoke to one Senator who was in the room. And I said, "Look, we're hearing about this -- these general threats. But in theory, we've known for months that these conventions would be tempting targets for terrorists. Is it nothing more than that?"
And this one Senator told me, quote, "It's more than theory. Let's put it that way." The Senator went on to say that there were -- there was specific information passed on in the meeting.
The briefers were supposed to include CIA director George Tenet, also FBI director Mueller. And this Senator said that there was specific information passed on.
Obviously, this Senator and others I talked to would not get into any detail. So we're still trying to sort out what was passed on.
Now, also politically speaking, I can tell you that Democrats up here are privately starting to raise questions about these intelligence meetings. Why is this information coming out?
Now, they think -- Democrats, that is, think it has something to do with the timing of Senator John Edwards being rolled out this week as the V.P. nominee.
Obviously Republicans reject that. Republicans are saying that this information is just coming out now, because it's all coming together.
We've heard in recent days that the only reason why the Bush administration officials brought in senior congressional leaders and now all rank and file House members and senators in the last two days to discuss this is because members of Congress were just on a recess. And it's only convenient now that they're back in town to talk about this.
But Democrats now starting privately to raise political questions. Why are they doing that?
Well, these meetings started on Tuesday evening. There was a very hush-hush meeting. Congressional leaders were called Tuesday morning by the White House and said, "Come over to the White House Tuesday evening to the situation room."
Vice President Cheney was there. The FBI, the CIA was also represented. All the top Democratic and Republican congressional leaders went over there. They spoke, as I mentioned earlier, about the conventions.
Obviously, Daryn, these are the first national political conventions that will be held post-9/11. So they want to make sure that everyone has their guard up, in the words of Bill Frist, who was at that White House meeting.
He told me yesterday that this was just about getting everyone prepared. They don't want to scare anyone. But I can tell you that, based on what I just heard from this one senator, there is more than just theory now about the potential for terrorist attacks over the summer -- Daryn.
KAGAN: And those are some very serious allegations on the part of some Democrats, to say that the White House, or the Bush administration would put these ideas out there just as a matter of a political play.
Do you expect that those of us who are not behind those closed doors with the senators will get more information? Of course, we have the news conference coming up. But specific information about what this threat might be later today?
HENRY: Very difficult to get that specific information from people up here on Capitol Hill, especially on the record, because they're told at these briefings to keep it under wraps. Some of the information they receive is classified.
That's why that one Senator was just telling me, generally speaking, that it's more than just a theory. There's specific information there.
We will see what -- obviously what homeland security secretary Tom Ridge has to say later this morning. But as you know from experience, Daryn, at a lot of the briefings, we hear general information. But it's very hard to pinpoint specific information for intelligence reasons.
But also officials are walking a very fine line here about not scaring people, trying to reassure them. But also trying to get them timely information, to say, look there's information out there. You need to know about it.
And as you mentioned, the political charges that are going to start flying back here, back and forth, you're right. Those are heavy charges from Democrats. They don't have anything to back it up now; it's just suspicion.
But I can tell you that obviously that this is a presidential election year. You also have the House and Senate, a tight margin there. There are a lot of tough races. And you're going to see these charges flying back and forth, Daryn.
KAGAN: Ed Henry on Capitol Hill, we will cut you loose to go do some more reporting. And we'll bring you back later in the morning.
Let's bring in our Mike Brooks, who's been talking to his sources in the nation's capital. The same word of this potential terror threat? Is it spreading to other agencies around Washington?
MIKE BROOKS, CNN CORRESPONDENT: Talking to some of my federal law enforcement sources, they're telling me that they really haven't heard of any new intelligence.
What this intelligence is that the senator was speaking of that's specific, we don't know. We don't know what Tom Ridge is going to tell us later on at about the 11 a.m. hour either, Daryn.
But what we do know is they're not supposed to raise the threat level. So if there is specific information about al Qaeda going operational here in the United States, and they don't raise the threat level, then what kind of information, exactly, do they have?
But my sources tell me that all the time in the halls of the FBI headquarters and the halls of DOJ, they're always concerned about when they raise the threat level that the citizens in the country will get alert fatigue. That it's the old cry wolf syndrome, if you will. And they want to try to avoid that. But we are in a full disclosure mode. Whether this is just another vigilance alert or not, that remains to be seen.
KAGAN: And I think some people still confused by the whole alert level and what different colors mean. Currently -- I think we have a graphic to show this -- we are at yellow, which means elevated. We have seen it go up before.
BROOKS: We've seen it go up a number of times to high. And then usually it lasts a number of months and it goes back down again.
Now with the upcoming conventions in Boston and in New York, will it go to orange? Right now it doesn't look like they will.
But if they have specific information about operational phase, about a pending attack against the citizens of the United States, then they need to go to orange.
But there's a lot of things that go along with that, Daryn. In New York City and Washington, they've been more at a modified orange since 9/11, if you will, than any other city.
KAGAN: They've never really come down.
BROOKS: They've never really come down. But some of the other municipalities, it costs a lot of money over time. You know, just the manpower being out there. And also officers. If you work officers too long, you know, do they get tired? Does their -- Do they become complacent?
There's a lot of things to think about. And again, we have to worry about alert fatigue with the citizens here in the country.
KAGAN: Mike Brooks, we will hear more from you later in the morning.
And of course, we'll be listening very carefully to the news conference. CNN will have a live news conference -- this upcoming news conference, we'll live coverage with Homeland Security Secretary Tom Ridge. That is scheduled at the top of the hour: 11:00 Eastern, 8:00 Pacific. You're going to see it live right here on CNN. In Iraq today, another militant group is threatening to kill a civilian. The group released a videotape statement saying that it will kill the Filipino hostage unless its country's troops leave Iraq. Officials of the Philippines are working with Iraqi authorities, trying to gain the hostage's release. There are currently around 50 Filipino troops in Iraq. That is down from about the initial deployment of about 100.
A source close to the family of missing U.S. Marine Corporal Wassef Hassoun says that he is safe and with relatives in Lebanon. But his exact whereabouts are still unknown. And military investigators are looking at several theories.
Our Miguel Marquez is outside the Hassoun family, their home in West Jordan, Utah.
Good morning, Miguel.
MIGUEL MARQUEZ, CNN CORRESPONDENT: Good morning to you, Daryn.
The mystery seems to get a little bigger and also seems to be moving toward resolution all at the same time.
The source we talked about, close to the family, saying that he is this in Lebanon and is safe. The foreign ministry, the Lebanese foreign ministry, now confirming that as well, that Hassoun is in Lebanon with his family.
The other thing that that source is telling CNN is that Hassoun will make contact, or connect, as he put it, with the U.S. State Department in the -- in the hours ahead, presumably.
The other twist in this whole thing is that CNN has learned that the Naval Criminal Investigation Service has been investigating this case as a missing persons case since around July 19, when Hassoun went missing from his unit in Iraq.
A public information officer with the Marine Corps in D.C. said that the criminal investigation service gets involved when there is some question as to why the person disappeared, and they will consider everything, from being kidnapped by insurgents, to a possible hoax perpetrated by Corporal Hassoun.
Officially -- officially by the Pentagon right now, he is still listed as captured.
All of this, of course, can be resolved, or will be resolved once Hassoun is seen and heard from by U.S. officials. Pentagon officials tell CNN that if he is recovered safely, there are a couple of key questions, he is going to have some pretty good answers to. And those are essentially, the basic questions we all have: how did he escape his captors and how in the world did he get to Lebanon -- Daryn.
KAGAN: A lot of questions. It seems like more and more keep popping up. We'll be checking back with you, Miguel Marquez, in Utah. Thank you. Ten minutes past the hour. Let's move on to the Enron investigation. It has reached the top of its corporate ladder.
Former chairman and CEO Kenneth Lay appears in court two and a half hours from right now, as his indictment will be unsealed. Our Jen Rogers is covering the case, and she is in Houston this morning -- Jen.
JEN ROGERS, CNN CORRESPONDENT: That's right, Daryn.
And the indictment actually just getting unsealed a very short time ago. We've just been handed copies of it.
It is a superseding indictment, which means that the charges against Ken Lay have been added to charges that have already been filed by the government against two former Enron executives, Richard Causey and Jeffrey Skilling. Jeffrey Skilling, of course, the one- time CEO of Enron.
Now, this indictment is 65 pages long. It is an 11-count superseding indictment. Among the charges Ken Lay will be facing: conspiracy to commit wire and securities fraud, also bank fraud.
Now, Ken Lay got an early start to this Thursday morning in Houston, turning himself in to the FBI. We are told that he was photographed and fingerprinted there.
Then a short drive over to the federal courthouse in Houston. He entered through the back door in handcuffs. He said at that time to the media gathered that he would have something to say later today.
So far, what we have heard from Ken Lay came through a spokeswoman last night. And in that statement, Ken Lay said, "I have done nothing wrong. And the indictment is not justified."
Now, Michael Ramsey, Ken Lay's attorney, did come out and speak to reporters here, basically on the courthouse steps a short time ago, defending his client, saying that he is not guilty. And also saying that they will have a press conference later today in which Ken Lay himself will talk.
We're also expecting to hear from the Department of Justice later today as well -- Daryn.
KAGAN: The question for people watching this, why is this taking so long for the government to file these charges?
ROGERS: Well, this is a complicated case, many people say. And as you said, they have been working their way up the corporate ladder. This has been done, many lawyers say, in classic prosecutorial fashion, which means you start small; you start cutting deals; and then you work your way up the food chain. They have made their way here.
Now Ken Lay's lawyers say it has taken a long time because there isn't a very good case against him. So there are two sides to that question.
KAGAN: All right. Look forward to that indictment being unsealed to learn more about the charges against Ken Lay. Jen Rogers in Houston.
Ken Lay, by the way, was the grand architect, building Enron from a small pipeline company to a giant energy trader. The fall was pretty steep.
In 2000 Enron was one of the ten biggest companies in the U.S. Enron then filed for bankruptcy on December 2, 2001. It was one of the largest corporate bankruptcies in U.S. history. More than 5,000 workers lost their jobs and pensions, and investors lost billions of dollars.
One of those employees who lost her job and retirement benefits appeared on CNN's "PAULA ZAHN NOW" and reacted to her former boss's indictment.
(BEGIN VIDEO CLIP)
ALBANE PERRINE, FORMER ENRON EMPLOYEE: Those responsible are being held accountable. And, you know, in the end, I think the money lost is a loss I'd like to have some of it recuperated. But it's nice to know that he's -- he's being brought to justice.
(END VIDEO CLIP)
KAGAN: For the latest on the Ken Lay indictment and a list of former CEOs under fire, log onto CNN's Money.com for our special report. It's called "Scandal, Inc."
John Edwards' career as a lawyer, how does it play in the court of public opinion? We'll take a closer look just ahead.
And coming to America, a controversial play about life in prison at Guantanamo Bay. We'll tell you about the politics behind the premiere.
Later, going for an incredible record. Lance Armstrong pedals towards victory.
(COMMERCIAL BREAK)
KAGAN: Presidential candidate John Kerry says that his political pairing with fellow Senator John Edwards offers Democrats what he's calling a dream team.
That rosy assessment of the Democrats' presumed ticket is shared by the last party member to hold the Oval Office. That would be former President Bill Clinton.
(BEGIN VIDEO CLIP)
BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: Edwards ran second in the primary process to John Kerry. And he was energetic and articulate and popular, even with a lot of people who voted for Senator Kerry. People know he has great potential.
Secondly, he was on the intelligence committee. It's not like he has no experience at all.
Thirdly, he is running for vice president with more international experience than President Bush ran for president with just four years ago.
(END VIDEO CLIP)
KAGAN: Tune in tonight to hear more from former President Clinton and his interview with our Christiane Amanpour. You can see that on CNN's "NEWSNIGHT," 10:00 Eastern, 7:00 Pacific.
The profession that catapulted John Edwards to being a self-made millionaire could also shape his political fortunes.
Within hours of being named as Kerry's running mate, John Kerry's -- John Edwards' career as a personal injury lawyer came under attack in the court of public opinion, and political maneuvering.
Our congressional correspondent, Joe Johns, has a look at that.
(BEGIN VIDEOTAPE)
JOE JOHNS, CNN CORRESPONDENT (voice-over): Before he was a running mate, a senator or even a candidate, John Edwards was an enormously successful trial lawyer.
Michael Dayton spent years tracking his work.
MICHAEL DAYTON, EDITOR, "N.C. LAWYERS WEEKLY": In a typical year, he would have four or five verdicts or settlements over $1 million. In another year he might have eight.
JOHNS: The best-known Edwards case, little Valerie Lakey of Raleigh. Five years old at the time, she won $31 million for catastrophic intestinal injuries when she sat down on a swimming pool drain with a defective cover.
The Griffins of Charlotte got $23 million after their daughter Bailey was born with severe brain damage.
In the '90s, Edwards reported 42 verdicts and settlements, totaling $174.6 million for people claiming medical malpractice, personal injury, malfunctioning product.
The Edwards key...
(END VIDEOTAPE)
KAGAN: We're going to break into the story. We want to go to Capitol Hill now. Majority Leader Frist at the microphones after a briefing with security officials.
Let's listen in. SEN. BILL FRIST (R-TN), MAJORITY LEADER: The essence of the briefing is that during this period of elections, this campaign season, that there is increased risk of a terrorist attack in the United States of America with regard to homeland security.
The nature of that risk is a very nonspecific. But I felt that it was important, since there is general intelligence that there may be an attempt to disrupt elections, that our colleagues be notified, that what is now being discussed so that appropriate precautions can be taken.
The Department of Homeland Security has been very aggressive in terms of prevention and protection. The secretary will be making his statement later today. He's going to have a news conference later today. There's obviously no reason for panic or no reason for paralysis.
But the fact that general intelligence, that the country is at some increased risk between now and the time of the presidential elections, is important for people to be aware of that.
UNIDENTIFIED FEMALE: (UNINTELLIGIBLE)
FRIST: What?
UNIDENTIFIED FEMALE: Will the terror threat be raised?
FRIST: The -- I would doubt, though I don't know. We'll wait to see what the secretary says as to whether or not the official threat, color threat that the American public sees will be raised. There's certain criteria that are used.
What is clear is that law enforcement has generally been notified that there are enhanced activities on behalf of law enforcement around the country to engage in deterrence and prevention.
And again, this is -- this is not a major announcement. It's just the fact that the reality is of increased risk here in the homeland over the next several weeks and next several months.
I'll take one more question.
UNIDENTIFIED MALE: (UNINTELLIGIBLE)
FRIST: Yes. We had the opportunity to raise lots of questions and lots of answers. It's a classified briefing. But there will be hearings today in the United States Congress, looking at the incidents surrounding the governor of Kentucky's airplane entering airspace. And so most of the information will come out at that point. We did not talk about the details of that.
Thank you all very much.
KAGAN: That was Senate Majority Leader Bill Frist, commenting after he came from behind a closed-door classified briefing, giving us a little bit more information about what we might expect to hear at the top of the hour.
Defense -- Department of Homeland Security chief Tom Ridge will be holding a news conference, talking about what you heard Senator Frist mention as the increased risk of a terror attack in the months leading up to the elections in November.
But he says, Senator Frist, this is not a major announcement and there's no reason for panic.
Some Democrats on Capitol Hill accusing the Bush administration of using this information to try to deflect information away from the announcement yesterday that John Edwards will be John Kerry's running mate.
We will have much more on this. Once again, that news conference will be seen live here on CNN at the top of the hour with Tom Ridge.
Also I want to tell you about something later tonight here. John Kerry and his wife, Teresa Heinz Kerry, will take a break from campaigning to field your questions. They'll be joining our Larry King. That's tonight at 9:00 Eastern, 6:00 Pacific right here on CNN.
We have a lot more to cover, and we're back in a moment.
(COMMERCIAL BREAK)
(WEATHER REPORT)
(COMMERCIAL BREAK)
KAGAN: Now in the news, the nation's top intelligence and homeland defense officials are on Capitol Hill to brief senators on a developing terror threat. CNN has learned that al Qaeda is in, quote, "operational phase" for an attack within the U.S. The strike would be timed before the presidential elections.
Two hours from now, former Enron chairman Kenneth Lay is expected in a Houston courtroom to hear probable charges of fraud and making false public statement. The grand jury indictment was unsealed this morning.
Lay surrendered to authorities. In a statement, Lay said he has done nothing wrong.
Also this hour, the CIA hosts a farewell party to its outgoing chief, George Tenet. The embattled director announced his resignation last month amid reports accusing the agency of intelligence failures before and after the 9/11 attacks. Tenet officially leaves office on Sunday.
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