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CNN Live Today

President Bush Hopes New Identity Theft Law Will Make It Tougher on Potential Terrorists; 'Vocation Vacations'

Aired July 15, 2004 - 08:32   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, CNN ANCHOR: Now in the news, President Bush is signing a bill this hour that would toughen the punishment for identity theft. A live picture from the White House there. The new law will set a five-year prison sentence for people convicted of using or providing fake I.D.s to help terrorists. We have a live White House report just two minutes away.
President Bush skipped the NAACP convention, but John Kerry is taking the group up on their invitation. Kerry plans to tell them the convention that, if elected, he'll talk with those who agree and disagree with him. We'll check back on the Kerry speech just a little bit later.

A fire knocked out power to parts of central Madrid a couple hours ago. Spanish officials say the fire at the power substation is under control, but not yet out, and some service is being restored. Among the places losing power was parliament, where a commission investigating the Madrid train bombings was holding hearings.

Nelson Mandela is speaking to the International AIDS Conference in Thailand next hour. We hope to bring you some of his remarks live from Bangkok. The former South African president is expected to call for nations to set up a global fund with billions of dollars to fight the disease.

Our next story is a little bit odd, even for politics, where perception can become reality. It revolves around Vice President Dick Cheney. Despite Cheney's repeated assertions that he will remain on the GOP presidential ticket, rumors swirl that he will be replaced. The latest report is a conspiracy theory that Cheney dismissed his doctor, who is embroiled in a drug scandal, so that a new doctor can deem him medically unfit and allow him a graceful exit from the campaign. That rumor is advanced privately by leading Democrats, key word there, Democrats, dismissed publicly by Republicans. It's being played prominently on today's front page of "The New York Times."

And as we just told you, President Bush hopes that a new identity theft law will make it tougher on potential terrorists.

Our Kathleen Koch is at the White House.

Kathleen, good morning.

KATHLEEN KOCH, CNN CORRESPONDENT: Good morning, Daryn.

Well, President Bush is busy getting right back down to business after his two-day campaign swing through the upper Midwest. First, of course, on the president's schedule, as you mentioned, is signing into law this bill cracking down on the pervasive problem of identity threat (sic). The bill creates a new category of crime that's called aggravated identity theft, which is the use of stolen identities to commit certain crimes. And this bill would set a mandatory penalty of two years in prison for violators. If that identity is stolen, though, with the intent of committing a terrorist act, then that mandatory penalty goes up to five years.

The measure also directs the U.S. Sentencing Commission to come up with tougher punishments for those who abuse positions of trust in order to commit insider identity theft. Experts say that a very large percentage of identity thefts are committed by insiders, often at health care or financial institutions.

The Federal Trade Commission reports that identity theft complaints are up 25 percent last year alone over the previous year. And that some 27 million Americans over the last five years have fallen victims to identity theft.

Now also on the president's schedule today, wrapping up his agenda is a meeting with the president of Mongolia, making a visit here later this afternoon to the White House. That fledgling democracy, just 12 years old, is facing somewhat of a crisis over contested election results that have so far prevented its parliament from going to session -- Daryn.

KAGAN: All right, Kathleen, what about this whole conspiracy theory about Dick Cheney firing his doctor so he can get a new doctor so he can get out and they can name someone else to be on the ticket? What are they saying about that on the White House?

KOCH: Here at the White House and at the Bush-Cheney campaign, they're really speaking with one voice on this, and the quote of the day is, "Yes, he will be on the ticket." That is he being Dick Cheney. Spokesman Scott McClellan said this is campaign season, rumors like this are to be expected. From Scott Stenzel, a spokesman for the campaign, the quotes are "finest vice president this nation has ever had," "brings a great deal of integrity and depth to the ticket," "no one better to articulate the Bush-Cheney record." So they're saying no plans to change vice president pre-election.

KAGAN: All right, Kathleen, thanks for clearing that up from the White House. Appreciate that.

KAGAN: One more political story here for you. Former NFL player and coach Mike Ditka is fading back to pass on a bid for a U.S. Senate seat. The man who led Da Bears to victory in the 1985 Super Bowl says he will not enter the race.

(BEGIN VIDEO CLIP)

MIKE DITKA, FMR. NFL COACH: The main thing for me is my life is such that I don't know if I could uproot it, and it change it and make that drastically a change in my life. And if I thought I could affect government or change in people's opinion, then I probably would have done it, but I don't think I can. I'm just going to be one more voice in the wilderness. People are going to say, oh, that's a good point, but it's not good enough, and they'll turn me off, and I don't like that.

(END VIDEO CLIP)

KAGAN: Illinois Republicans thought that Dick has name recognition, and firebrand appeal could win votes in an uphill race against the Democratic frontrunner.

Coming up on CNN's LIVE TODAY: President bush signing a new bill that is supposed to fight terrorists stealing identities. We'll have more on that and what the penalties will be, straight ahead.

(COMMERCIAL BREAK)

(STOCK MARKET UPDATE)

KAGAN: Looking perhaps for a break from the boardroom? Want to go from the corporate fast lane to the serenity of, let's say, a horse ranch? Well, before you abandon your current career for that dream job, you might want to test reality with a so-called "vocation vacation"

Our financial news correspondent J.J. Ramberg has that story.

(BEGIN VIDEOTAPE)

J.J. RAMBERG, CNN CORRESPONDENT (voice-over): From the view of the corporate cubicle, running a winery, announcing sports games and making fine cheeses are all fodder for day dreams. That is until you actually get up close.

ALLISON LAXIN, SPROUT GREEK FARM: You climb in and scrub the pasteurizer. Churning the cheese. That's the cheesemaker workout section of the day. When you churn about a thousand wheels of cheese, ranging from two to 12 pounds, it adds up.

RAMBERG: Hoping to give people the opportunity to give their career fantasy a test drive before telling their current boss goodbye, Brian Kurth starting Vocation Vacations, offered disgruntled corporate refugees, as he calls them, two-day stints in their dream jobs.

BRIAN KURTH, VOCATION VACATIONS": We have a horse trainer, a raceway manager and film events producer, as well as L.A. celebrity wedding coordinator.

RAMBERG (on camera): Far from sitting on the beach for a couple of days, these trips are often a lot of hard work. And one of the first things many vacationers find out is that their dream job is not quite so glamorous.

(voice-over): Bill Wilkinson and Michael O'Brien quickly learned that making cheese is not as fun as eating cheese.

MICHAEL O'BRIEN, VOCATION VACATIONER: What you do is hot, and it's very timed, it's very regimented, and as far as the cleanliness, it's not forgiving.

RAMBERG: But at a time when job satisfaction is especially low, even some unexpected hard work may seem like a better path to a paycheck than the jobs many people have right now.

J.J. Ramberg, CNN Financial News, New York.

(END VIDEOTAPE)

KAGAN: Two families dealing with a devastating mixup after their sons were victims of a car accident, and the discovery of the mixup came in preparation for the funeral of one of the boys. That complete story is just ahead.

(COMMERCIAL BREAK)

KAGAN: Both presidential candidates plan to make public statements in the next couple of minutes. We expect President Bush at the White House to sign a bill that fights terrorists trying to use stolen identities to commit crimes. We'll see that live when that begins, and then Senator Kerry is in Philadelphia today. He has accepted the invitation to address the NAACP convention, an invitation that President Bush declined. So we're working on bringing both events to you live.

Meanwhile, let's get in a little bit little more news. Authorities in Bellaire, Michigan now admit a terrible mistake in identifying two teens involved in a fatal car crash. The truth has shattered the world of both the parents that were grieving their sons' death, and the others who were at the bedside of the bandaged teen that they thought was their son.

More now from reporter Dee Morrison of our affiliate of WOOD in Grand Rapids.

(BEGIN VIDEOTAPE)

DEE MORRISON, CNN AFFILIATE WOOD REPORTER (voice over): Sobbing friends arrived for a funeral, not knowing how to comfort, except to hug. A terrible tragedy now compounded by a horrible mistake.

SARAH OLSEN, FRIEND: Of hearing this morning, the mix-up, it was a shock.

MORRISON: Saturday, three friends from Forest Hills heading back from a trip up north were hit by another vehicle in Antrim County. One boy died, one was badly hurt. Deputies notified the families of Patrick Bement and Nate Smith.

The paper carried 17-year-old Pat Bement's obituary. But the moment his family saw the body in the casket they knew there had been an awful mistake. They talked with Nate's family, keeping vigil in a hospital room in Traverse City. And after hours of comparison, demanded police double-check. Fingerprints proved deputies mixed up the two teenagers.

The funeral service was canceled; a prayer service held instead, allowing mourners to offer words of comfort to all families involved.

STEVE HARVEY, TEACHER: On the one hand, you're somewhat relieved for Patrick's family that he still has hope, and then that also means that another student has passed away. And so, there is tremendous sadness on that part.

MORRISON: Friends seesawed between joy for Patrick and grief for Nate, made worse by the misidentification.

COREY TURCO, FRIEND: Yes, because, like, I wasn't used to it, but, like, I was handling it. And then it just got swapped.

MORRISON: Many comforted Blake Flikkema. Driving the car that night, the only one wearing a seat belt, he has minor injuries. But he's devastated by what happened to his friends. No one knows quite how to deal with the shock.

TOM VANGERWOUDE, PRINCIPAL: There is no recipe for it. We're just here to help. We're here to help.

(END VIDEOTAPE)

KAGAN: That story from Dee Morrison of our affiliate WOOD.

Once again, we're standing by. President Bush and Senator Kerry both planning to make public statements within the next hour. You will see them live right here on CNN.

Right now, a quick break.

(COMMERCIAL BREAK)

KAGAN: We go live to the White House now, President Bush signing a measure tackling fake I.D.s and terrorists.

(INSERT T57 BUSH COMMENTS)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Thanks for coming. Welcome to the White House. Thanks for coming.

(LAUGHTER)

Welcome to the White House.

(LAUGHTER)

We're taking an important step today to combat the problem of identity theft, one of the fastest growing financial crimes in our nation. Last year alone, nearly 10 million Americans had their identities stolen by criminals who rob them and the nation's businesses of nearly $50 billion through fraudulent transactions. The bill I'm about to sign sends a clear message that a person who violates another's financial privacy will be punished.

The Identity Theft Penalty Enhancement Act also prescribes prison sentences for those who use identity theft to commit other crimes, including terrorism. It reflects our government's resolve to answer serious offenses with serious penalties.

I appreciate the members of my administration who worked on this important piece of legislation, particularly Cabinet members John Snow and John Ashcroft. I appreciate the members of the Congress who worked hard on this legislation: Senator Orrin Hatch and Senator Jon Kyl, Senator Dianne Feinstein, and members of the House, Chairman, Senator Jim Sensenbrenner, and John Carter from the great state of Texas. I want to thank the other members of Congress who are here, members of both political parties. Thank you for coming. I thank those who are on their staffs who have worked hard.

The crime of identity theft undermines the basic trust on which our economy depends. When a person takes out an insurance policy, or makes an online purchase, or opens a savings account, he or she must have confidence that personal financial information will be protected and treated with care. Identity theft harms not only its direct victims, but also many businesses and customers whose confidence is shaken. Like other forms of stealing, identity theft leaves the victim poor and feeling terribly violated.

But the losses are not measured only in dollars. An identity theft -- thief can steal the victim's financial reputation. Running up bills on credit card accounts that the victim never knew existed, the criminal can quickly damage a person's lifelong efforts to build and maintain a good credit rating. Repairing the damage can take months or years.

Government has a responsibility to protect citizens from these crimes and the grief and hassle they cause. It's a solemn responsibility of our government. I want to thank the members of Congress for recognizing that responsibility.

This good law is part of a broader effort we've waged in recent years. The U.S. Postal Inspection Service, the FBI, and Secret Service are working with local and state officials to crack down on the criminal networks that are responsible for much of the identity theft that occurs in this nation. The Federal Trade Commission is training local law enforcement in the detection of identity theft. The Commission has set up the ID Theft Data Clearinghouse, which keeps track of complaints across the country, and provides those records to prosecutors seeking to take down organized rings.

Last December, I signed the Fair and Accurate Credit Transactions Act, which established a national system of fraud detection so that identity thieves can be stopped before they run up tens of thousands of dollars in illegal purchases. Thanks to this law, victims can make one phone call to alert all three major credit rating agencies to report the crime and to protect their credit ratings. The law I sign today will dramatically strengthen the fight against identity theft and fraud. Prosecutors across the country report that sentences for these crimes do not reflect the damage done to the victim. Too often, those convicted have been sentenced to little or no time in prison. This changes today. This new law establishes in the federal criminal court the offense of aggravated identity theft. And someone convicted of that crime can expect to go to jail for stealing a person's good name. These punishments will come on top of any punishment for crimes that proceed from identity theft. For example, when someone is convicted of mail fraud in a case involving stolen personal information, judges will now impose two sentences, one for mail fraud, and one for aggravated identity theft. Those convicted of aggravated identity theft must serve an additional mandatory two-year prison term. Someone convicted of aggravated identity theft, such as using a false passport in connection with a terrorism case, would receive an additional prison sentence of five years. In addition, judges will not be allowed to let those convicted of aggravated identity theft serve their sentence on probation.

This law also raises the standard of conduct for people who have access to personal records through their work at banks, government agencies, insurance companies, and other storehouses of financial data. The law directs the United States Sentencing Commission to make sure those convicted of abusing and stealing from their customers serve a sentence equal to their crimes.

What I'm telling you is this is a good law. And I appreciate you working hard to see to it that it made it to my desk. Because of this act of Congress I sign today, the guilty will be certain to be punished. That's good for our consumers, it's good for our economy, and it's good for the cause of justice.

Welcome to the White House.

(APPLAUSE)

KAGAN: And we're watching as President Bush, with bipartisan support behind him, sign as new bill. It is a measure that is meant to tackle fake I.D.s and terrorists. It's meant to make it harder for terrorists to use fake I.D.s. It would mandate a five-year prison sentence if someone is convicted under the law.

And as you can see, by looking at the faces behind President Bush, as I said, bipartisan support for this new law. We're also expecting to hear this morning from Senator John Kerry. He is to make an appearance in Philadelphia before the NAACP convention. That is an invitation President Bush had extended to him as well. President Bush turning down that.

So there is a live picture from Philadelphia. When Senator Kerry speaks we will, in the interest of fairness, hear what he has to say.

Right now, let's go ahead and take a look at what is happening now in the news.

A new federal antiterrorism law has just taken effect. You saw right there, President Bush signing the bill on identity fraud in the White House ceremony. The new law mandates a five-year sentence to anyone who provides fake I.D.s to a terrorist.

In Philadelphia, Democratic presidential candidate John Kerry, sounds familiar -- we just talked about this. He is talking to the NAACP. President will not be speaking to that group, but President Bush has accepted an invitation to speak to the Urban League, and that's set to take place next week in Detroit. Other political news, Mike Ditka says thanks, but no thanks. After a period of intense speculation, the former Chicago Bears coach has declined to run for the U.S. Senate. He says he doesn't think he could stand the scrutiny.

And high overhead, scientists now have a new eye on the Earth's atmosphere. After several delays, the Aura satellite was finally launched this morning from Vandenberg Air Force Base on the central California coast. From its perch 400 miles above, Aura will monitor the atmospheric pollution, the ozone layer and climate patterns.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired July 15, 2004 - 08:32   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Now in the news, President Bush is signing a bill this hour that would toughen the punishment for identity theft. A live picture from the White House there. The new law will set a five-year prison sentence for people convicted of using or providing fake I.D.s to help terrorists. We have a live White House report just two minutes away.
President Bush skipped the NAACP convention, but John Kerry is taking the group up on their invitation. Kerry plans to tell them the convention that, if elected, he'll talk with those who agree and disagree with him. We'll check back on the Kerry speech just a little bit later.

A fire knocked out power to parts of central Madrid a couple hours ago. Spanish officials say the fire at the power substation is under control, but not yet out, and some service is being restored. Among the places losing power was parliament, where a commission investigating the Madrid train bombings was holding hearings.

Nelson Mandela is speaking to the International AIDS Conference in Thailand next hour. We hope to bring you some of his remarks live from Bangkok. The former South African president is expected to call for nations to set up a global fund with billions of dollars to fight the disease.

Our next story is a little bit odd, even for politics, where perception can become reality. It revolves around Vice President Dick Cheney. Despite Cheney's repeated assertions that he will remain on the GOP presidential ticket, rumors swirl that he will be replaced. The latest report is a conspiracy theory that Cheney dismissed his doctor, who is embroiled in a drug scandal, so that a new doctor can deem him medically unfit and allow him a graceful exit from the campaign. That rumor is advanced privately by leading Democrats, key word there, Democrats, dismissed publicly by Republicans. It's being played prominently on today's front page of "The New York Times."

And as we just told you, President Bush hopes that a new identity theft law will make it tougher on potential terrorists.

Our Kathleen Koch is at the White House.

Kathleen, good morning.

KATHLEEN KOCH, CNN CORRESPONDENT: Good morning, Daryn.

Well, President Bush is busy getting right back down to business after his two-day campaign swing through the upper Midwest. First, of course, on the president's schedule, as you mentioned, is signing into law this bill cracking down on the pervasive problem of identity threat (sic). The bill creates a new category of crime that's called aggravated identity theft, which is the use of stolen identities to commit certain crimes. And this bill would set a mandatory penalty of two years in prison for violators. If that identity is stolen, though, with the intent of committing a terrorist act, then that mandatory penalty goes up to five years.

The measure also directs the U.S. Sentencing Commission to come up with tougher punishments for those who abuse positions of trust in order to commit insider identity theft. Experts say that a very large percentage of identity thefts are committed by insiders, often at health care or financial institutions.

The Federal Trade Commission reports that identity theft complaints are up 25 percent last year alone over the previous year. And that some 27 million Americans over the last five years have fallen victims to identity theft.

Now also on the president's schedule today, wrapping up his agenda is a meeting with the president of Mongolia, making a visit here later this afternoon to the White House. That fledgling democracy, just 12 years old, is facing somewhat of a crisis over contested election results that have so far prevented its parliament from going to session -- Daryn.

KAGAN: All right, Kathleen, what about this whole conspiracy theory about Dick Cheney firing his doctor so he can get a new doctor so he can get out and they can name someone else to be on the ticket? What are they saying about that on the White House?

KOCH: Here at the White House and at the Bush-Cheney campaign, they're really speaking with one voice on this, and the quote of the day is, "Yes, he will be on the ticket." That is he being Dick Cheney. Spokesman Scott McClellan said this is campaign season, rumors like this are to be expected. From Scott Stenzel, a spokesman for the campaign, the quotes are "finest vice president this nation has ever had," "brings a great deal of integrity and depth to the ticket," "no one better to articulate the Bush-Cheney record." So they're saying no plans to change vice president pre-election.

KAGAN: All right, Kathleen, thanks for clearing that up from the White House. Appreciate that.

KAGAN: One more political story here for you. Former NFL player and coach Mike Ditka is fading back to pass on a bid for a U.S. Senate seat. The man who led Da Bears to victory in the 1985 Super Bowl says he will not enter the race.

(BEGIN VIDEO CLIP)

MIKE DITKA, FMR. NFL COACH: The main thing for me is my life is such that I don't know if I could uproot it, and it change it and make that drastically a change in my life. And if I thought I could affect government or change in people's opinion, then I probably would have done it, but I don't think I can. I'm just going to be one more voice in the wilderness. People are going to say, oh, that's a good point, but it's not good enough, and they'll turn me off, and I don't like that.

(END VIDEO CLIP)

KAGAN: Illinois Republicans thought that Dick has name recognition, and firebrand appeal could win votes in an uphill race against the Democratic frontrunner.

Coming up on CNN's LIVE TODAY: President bush signing a new bill that is supposed to fight terrorists stealing identities. We'll have more on that and what the penalties will be, straight ahead.

(COMMERCIAL BREAK)

(STOCK MARKET UPDATE)

KAGAN: Looking perhaps for a break from the boardroom? Want to go from the corporate fast lane to the serenity of, let's say, a horse ranch? Well, before you abandon your current career for that dream job, you might want to test reality with a so-called "vocation vacation"

Our financial news correspondent J.J. Ramberg has that story.

(BEGIN VIDEOTAPE)

J.J. RAMBERG, CNN CORRESPONDENT (voice-over): From the view of the corporate cubicle, running a winery, announcing sports games and making fine cheeses are all fodder for day dreams. That is until you actually get up close.

ALLISON LAXIN, SPROUT GREEK FARM: You climb in and scrub the pasteurizer. Churning the cheese. That's the cheesemaker workout section of the day. When you churn about a thousand wheels of cheese, ranging from two to 12 pounds, it adds up.

RAMBERG: Hoping to give people the opportunity to give their career fantasy a test drive before telling their current boss goodbye, Brian Kurth starting Vocation Vacations, offered disgruntled corporate refugees, as he calls them, two-day stints in their dream jobs.

BRIAN KURTH, VOCATION VACATIONS": We have a horse trainer, a raceway manager and film events producer, as well as L.A. celebrity wedding coordinator.

RAMBERG (on camera): Far from sitting on the beach for a couple of days, these trips are often a lot of hard work. And one of the first things many vacationers find out is that their dream job is not quite so glamorous.

(voice-over): Bill Wilkinson and Michael O'Brien quickly learned that making cheese is not as fun as eating cheese.

MICHAEL O'BRIEN, VOCATION VACATIONER: What you do is hot, and it's very timed, it's very regimented, and as far as the cleanliness, it's not forgiving.

RAMBERG: But at a time when job satisfaction is especially low, even some unexpected hard work may seem like a better path to a paycheck than the jobs many people have right now.

J.J. Ramberg, CNN Financial News, New York.

(END VIDEOTAPE)

KAGAN: Two families dealing with a devastating mixup after their sons were victims of a car accident, and the discovery of the mixup came in preparation for the funeral of one of the boys. That complete story is just ahead.

(COMMERCIAL BREAK)

KAGAN: Both presidential candidates plan to make public statements in the next couple of minutes. We expect President Bush at the White House to sign a bill that fights terrorists trying to use stolen identities to commit crimes. We'll see that live when that begins, and then Senator Kerry is in Philadelphia today. He has accepted the invitation to address the NAACP convention, an invitation that President Bush declined. So we're working on bringing both events to you live.

Meanwhile, let's get in a little bit little more news. Authorities in Bellaire, Michigan now admit a terrible mistake in identifying two teens involved in a fatal car crash. The truth has shattered the world of both the parents that were grieving their sons' death, and the others who were at the bedside of the bandaged teen that they thought was their son.

More now from reporter Dee Morrison of our affiliate of WOOD in Grand Rapids.

(BEGIN VIDEOTAPE)

DEE MORRISON, CNN AFFILIATE WOOD REPORTER (voice over): Sobbing friends arrived for a funeral, not knowing how to comfort, except to hug. A terrible tragedy now compounded by a horrible mistake.

SARAH OLSEN, FRIEND: Of hearing this morning, the mix-up, it was a shock.

MORRISON: Saturday, three friends from Forest Hills heading back from a trip up north were hit by another vehicle in Antrim County. One boy died, one was badly hurt. Deputies notified the families of Patrick Bement and Nate Smith.

The paper carried 17-year-old Pat Bement's obituary. But the moment his family saw the body in the casket they knew there had been an awful mistake. They talked with Nate's family, keeping vigil in a hospital room in Traverse City. And after hours of comparison, demanded police double-check. Fingerprints proved deputies mixed up the two teenagers.

The funeral service was canceled; a prayer service held instead, allowing mourners to offer words of comfort to all families involved.

STEVE HARVEY, TEACHER: On the one hand, you're somewhat relieved for Patrick's family that he still has hope, and then that also means that another student has passed away. And so, there is tremendous sadness on that part.

MORRISON: Friends seesawed between joy for Patrick and grief for Nate, made worse by the misidentification.

COREY TURCO, FRIEND: Yes, because, like, I wasn't used to it, but, like, I was handling it. And then it just got swapped.

MORRISON: Many comforted Blake Flikkema. Driving the car that night, the only one wearing a seat belt, he has minor injuries. But he's devastated by what happened to his friends. No one knows quite how to deal with the shock.

TOM VANGERWOUDE, PRINCIPAL: There is no recipe for it. We're just here to help. We're here to help.

(END VIDEOTAPE)

KAGAN: That story from Dee Morrison of our affiliate WOOD.

Once again, we're standing by. President Bush and Senator Kerry both planning to make public statements within the next hour. You will see them live right here on CNN.

Right now, a quick break.

(COMMERCIAL BREAK)

KAGAN: We go live to the White House now, President Bush signing a measure tackling fake I.D.s and terrorists.

(INSERT T57 BUSH COMMENTS)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Thanks for coming. Welcome to the White House. Thanks for coming.

(LAUGHTER)

Welcome to the White House.

(LAUGHTER)

We're taking an important step today to combat the problem of identity theft, one of the fastest growing financial crimes in our nation. Last year alone, nearly 10 million Americans had their identities stolen by criminals who rob them and the nation's businesses of nearly $50 billion through fraudulent transactions. The bill I'm about to sign sends a clear message that a person who violates another's financial privacy will be punished.

The Identity Theft Penalty Enhancement Act also prescribes prison sentences for those who use identity theft to commit other crimes, including terrorism. It reflects our government's resolve to answer serious offenses with serious penalties.

I appreciate the members of my administration who worked on this important piece of legislation, particularly Cabinet members John Snow and John Ashcroft. I appreciate the members of the Congress who worked hard on this legislation: Senator Orrin Hatch and Senator Jon Kyl, Senator Dianne Feinstein, and members of the House, Chairman, Senator Jim Sensenbrenner, and John Carter from the great state of Texas. I want to thank the other members of Congress who are here, members of both political parties. Thank you for coming. I thank those who are on their staffs who have worked hard.

The crime of identity theft undermines the basic trust on which our economy depends. When a person takes out an insurance policy, or makes an online purchase, or opens a savings account, he or she must have confidence that personal financial information will be protected and treated with care. Identity theft harms not only its direct victims, but also many businesses and customers whose confidence is shaken. Like other forms of stealing, identity theft leaves the victim poor and feeling terribly violated.

But the losses are not measured only in dollars. An identity theft -- thief can steal the victim's financial reputation. Running up bills on credit card accounts that the victim never knew existed, the criminal can quickly damage a person's lifelong efforts to build and maintain a good credit rating. Repairing the damage can take months or years.

Government has a responsibility to protect citizens from these crimes and the grief and hassle they cause. It's a solemn responsibility of our government. I want to thank the members of Congress for recognizing that responsibility.

This good law is part of a broader effort we've waged in recent years. The U.S. Postal Inspection Service, the FBI, and Secret Service are working with local and state officials to crack down on the criminal networks that are responsible for much of the identity theft that occurs in this nation. The Federal Trade Commission is training local law enforcement in the detection of identity theft. The Commission has set up the ID Theft Data Clearinghouse, which keeps track of complaints across the country, and provides those records to prosecutors seeking to take down organized rings.

Last December, I signed the Fair and Accurate Credit Transactions Act, which established a national system of fraud detection so that identity thieves can be stopped before they run up tens of thousands of dollars in illegal purchases. Thanks to this law, victims can make one phone call to alert all three major credit rating agencies to report the crime and to protect their credit ratings. The law I sign today will dramatically strengthen the fight against identity theft and fraud. Prosecutors across the country report that sentences for these crimes do not reflect the damage done to the victim. Too often, those convicted have been sentenced to little or no time in prison. This changes today. This new law establishes in the federal criminal court the offense of aggravated identity theft. And someone convicted of that crime can expect to go to jail for stealing a person's good name. These punishments will come on top of any punishment for crimes that proceed from identity theft. For example, when someone is convicted of mail fraud in a case involving stolen personal information, judges will now impose two sentences, one for mail fraud, and one for aggravated identity theft. Those convicted of aggravated identity theft must serve an additional mandatory two-year prison term. Someone convicted of aggravated identity theft, such as using a false passport in connection with a terrorism case, would receive an additional prison sentence of five years. In addition, judges will not be allowed to let those convicted of aggravated identity theft serve their sentence on probation.

This law also raises the standard of conduct for people who have access to personal records through their work at banks, government agencies, insurance companies, and other storehouses of financial data. The law directs the United States Sentencing Commission to make sure those convicted of abusing and stealing from their customers serve a sentence equal to their crimes.

What I'm telling you is this is a good law. And I appreciate you working hard to see to it that it made it to my desk. Because of this act of Congress I sign today, the guilty will be certain to be punished. That's good for our consumers, it's good for our economy, and it's good for the cause of justice.

Welcome to the White House.

(APPLAUSE)

KAGAN: And we're watching as President Bush, with bipartisan support behind him, sign as new bill. It is a measure that is meant to tackle fake I.D.s and terrorists. It's meant to make it harder for terrorists to use fake I.D.s. It would mandate a five-year prison sentence if someone is convicted under the law.

And as you can see, by looking at the faces behind President Bush, as I said, bipartisan support for this new law. We're also expecting to hear this morning from Senator John Kerry. He is to make an appearance in Philadelphia before the NAACP convention. That is an invitation President Bush had extended to him as well. President Bush turning down that.

So there is a live picture from Philadelphia. When Senator Kerry speaks we will, in the interest of fairness, hear what he has to say.

Right now, let's go ahead and take a look at what is happening now in the news.

A new federal antiterrorism law has just taken effect. You saw right there, President Bush signing the bill on identity fraud in the White House ceremony. The new law mandates a five-year sentence to anyone who provides fake I.D.s to a terrorist.

In Philadelphia, Democratic presidential candidate John Kerry, sounds familiar -- we just talked about this. He is talking to the NAACP. President will not be speaking to that group, but President Bush has accepted an invitation to speak to the Urban League, and that's set to take place next week in Detroit. Other political news, Mike Ditka says thanks, but no thanks. After a period of intense speculation, the former Chicago Bears coach has declined to run for the U.S. Senate. He says he doesn't think he could stand the scrutiny.

And high overhead, scientists now have a new eye on the Earth's atmosphere. After several delays, the Aura satellite was finally launched this morning from Vandenberg Air Force Base on the central California coast. From its perch 400 miles above, Aura will monitor the atmospheric pollution, the ozone layer and climate patterns.

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