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CNN Live Today

Nasty Weather All Over the West; Katrina Relief Scam?; Coming Up in 2006

Aired December 28, 2005 - 10:59   ET

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

DARYN KAGAN, CNN ANCHOR: A story just ahead for you, Afghan soldiers trying to do it on their own. Our Becky Diamond is just back from a patrol with them. She'll join us live.
Plus, "Da Vinci Code" the movie, will it be the big talker in 2006? We'll examine what's hot and what's not for the new year as the second hour of CNN LIVE TODAY begins right now.

And let's take a look at what's happening "Now in the News."

Well, it looks like there's nasty weather all over -- all over the West. They're looking at snow and they're looking at rain. A Pacific storm is expected to bring more torrential rain and gale-force winds to parts of the region today. Heavy snow is expected in the Cascades, the Sierra Nevada and the Bitterroots as well.

In Los Angeles, more than 2,000 guests at the Disneyland Grand Californian hotel had to flee their rooms after a Christmas tree caught fire. No serious injuries were reported. The fire broke out early this morning in the hotel's lobby. Firefighters were able to quickly put it out.

Some newly released documents may shed new light on the Supreme Court nominee Samuel Alito. The National Archives released about 300 additional documents related to Alito this morning. They relate to his time in the Justice Department. Confirmation hearings for Alito are scheduled to begin early next month.

In Houston, Texas, a reported plea agreement in the Enron trial. A person familiar with the case tells The Associated Press that Richard Causey is expected to plead guilty later today to one or more of the 34 criminal charges against him.

Causey is Enron's former chief accounting officer. The source says the deal could bolster the government's case against Enron founder Kenneth Lay and former CEO Jeffrey Skilling.

Days after a crippling transit strike ended in New York City, a tentative contract his heading to union members for final approval. The deal includes a pay hike of close to 11 percent over three years.

The strike came just before Christmas. It lasted three days, and it cost the city and New York businesses about a billion dollars.

Good morning. Welcome to CNN LIVE TODAY. Checking the time around the country, it's just after 8:00 a.m. for those of you waking up wet and soggy in San Francisco; just after 11:00 a.m. here in Atlanta, Georgia; just after 10:00 a.m. in Dallas, Texas.

From CNN Center in Atlanta, I'm Daryn Kagan.

And we're going to start this hour with a very odd mix. We have fire on the plains and floods in the West.

First, to Texas.

Drought and winds ripping as high as 40 miles an hour are teaming to fuel about 70 grass fires. Dozens of homes have burned, and at least one death is blamed on the fires.

Firefighters hope to put Black Hawk and Chinook helicopters in the air today to dump water. That will depend on the wind. Governor Rick Perry is calling out the Texas National Guard to help out.

And here's a look at a neighborhood in Mustang, Oklahoma. Grass fires are burning unchecked across 13 Oklahoma counties this morning. Firefighters say the most serious blazes are on the perimeter of Oklahoma City. Several homes have already burned.

And then in the West, another big Pacific storm is slamming northern California and the Northwest today. It's the latest in the line of storms that seem to be queuing up just like jets on the runway.

CNN's Rusty Dornin joins us now. She is in soggy San Francisco.

I believe that's the lovely Golden Gate Bridge over your shoulder, which looks good in no matter what kind of weather.

RUSTY DORNIN, CNN CORRESPONDENT: That's right. And you called it jets on the runway, but as you might remember, this time of year they also call it the "Pineapple Express," because they're coming from the tropics and they carry a lot of moisture. And they just come one after the other. So they've labeled them the "Pineapple Express."

Now, it's not raining now, but we keep getting these cells. Overall, it doesn't look that dramatic here. But the fact that we are so waterlogged and the soils are so saturated, there's a lot of flood watches in the area and flash flood warnings in the areas north of San Francisco. So we'll have to see how these cells and these storms move through here.

Also, they're pushing high waves. A few minutes ago, we just got nailed by a wave that came over the wall. That does concern people here, because there worried the tourists that walk along this road could be hit by what they call sneaker waves.

Now, up north, in the Pacific Northwest, in Washington, Snoqualmie Pass, they got a big dumping of snow which caused a lot of problems for truckers, for cars on the highways there. And of course in the Sierra Nevada, which already was getting snow last week from the storms then, they're expecting to get about two feet from this series of storms that keep coming ashore.

That's great for the New Year's holiday weekend. The problem's going to be when people are ready to come home. If it's snowing then it could cause complete gridlock if highways 50 and 80 get shut down.

Meantime, Daryn, as you know, these kinds of storms just cause a lot of local mudslides and local flooding. And just sort of continues s the holiday nightmare for people -- Daryn.

KAGAN: All right. Well, be careful out there and try to stay dry. That's the best I have to offer you today, Rusty. Thank you.

Let's get a look at the whole weather picture across the West and across the country. Jacqui Jeras is doing that for us this morning.

(WEATHER REPORT)

KAGAN: Frantic moments on board an Alaska Airlines jet after takeoff. Twenty minutes into a flight from Seattle to Burbank, California, oxygen masks dropped down on passengers as the Alaska Airlines flight crew tried to figure out what was going on.

According to the National Transportation Safety Board, a baggage handler bumped the plane with a cart while it was still parked at the gate. That created a crease in the jet's aluminum side, and that opened to a foot-long hole as the plane climbed to 26,000 feet. The plane did safely return to Seattle and nobody was hurt.

And now to Iraq, where violent clashes broke out today between prisoners and guards at a military base in northern Baghdad. Iraqi police say four guards and four prisoners are dead. The violence reportedly started during morning exercises when one of the prisoners grabbed a guard's weapon and started shooting.

The base houses suspects accused of major crimes, including terrorism. We have no reports of any prisoners escaping.

Early results from Iraq's national elections set off more demonstrations today. Sunni Arabs and secular Shiites dispute preliminary election results that favor the Shiite religious bloc.

Former prime minister Ayad Allawi is among those criticizing the election. In an exclusive interview with CNN, Allawi said that a nationwide revote would not be practical, but he says the election was tainted by fraud and intimidation.

(BEGIN VIDEO CLIP)

AYAD ALLAWI, FMR. IRAQI PRIME MINISTER: We tried to play by the rules ourselves. We (INAUDIBLE) anybody. We respect and still respect democracy, and we think that democracy at the end of the day will prevail here in Iraq.

Unfortunately, others used different tactics. And they used religious symbols, intimidations, assassinations, (INAUDIBLE).

(END VIDEO CLIP)

KAGAN: A U.N. elections official in Iraq today rejected calls for a revote. He says the elections there were credible and in accordance with international standards.

The New Orleans police chief today defended the officers involved in the fatal shooting of a man brandishing a knife. The department is investigating the shooting which has raised questions about the use of deadly force.

Superintendent Warren Riley says officers were trying to form a perimeter around 38-year-old Anthony Hayes. He says they tried to get Hayes to drop the knife but he lunged at them instead.

(BEGIN VIDEO CLIP)

SUPT. WARREN RILEY, NEW ORLEANS POLICE: It's hard to stand here and judge police officers when their life is on the line. I wasn't on that scene, but I know that many people have been killed with knives. This was not only a three-inch knife, it was a hunting knife.

Mr. Hayes is a very, very large man. So he had the ability to inflict great bodily harm.

(END VIDEO CLIP)

KAGAN: Superintendent Riley also disputes whether tasers might have prevented a shooting. He said only S.W.A.T. officers carry tasers because of concerns about fatalities and injuries involving those weapons.

The Red Cross says it's stepping up its fraud detection systems after an alleged scam involving money for Hurricane Katrina victims. Authorities say 49 people have been indicted so far. They say the scheme was launched from a Red Cross call center in California.

CNN's Kareen Wynter investigates for "PAULA ZAHN NOW."

(BEGIN VIDEOTAPE)

KAREEN WYNTER, CNN CORRESPONDENT (voice-over): Bakersfield, California, thousands of miles away from the area ravaged by Hurricane Katrina, and from a 1.5 million people the storm displaced. But it's here, federal authorities say, 22 people contracted to work at this National Red Cross call center filed false claims worth more than $300,000.

And they didn't act alone. Family members and friends were also allegedly involved in this elaborate scam.

JACKIE SMITH, FAMILY OF DEFENDANTS: I'm really surprised that people in this day and time would try to take -- take advantage of the system that's intended to help those in need.

WYNTER: Jackie Smith's brother-in-law was named in the indictment, along with 48 other people, accused of wire fraud.

SMITH: If any of these charges are true, they do need to be fully investigated.

WYNTER: This Bakersfield claims center processed calls from Katrina victims across the country, as many as 16,000 a day.

(on camera): Red Cross workers say, due to the volume of calls, people were asked to provide only their name, address and birth date.

(voice-over): Call center agents would then have to confirm and approve those details before issuing a claim number, so the displaced could receive payment at local Western Unions, $360 for individuals and more than $1,500 for families.

JOHN CONKLIN, ASSISTANT U.S. ATTORNEY GENERAL: Unfortunately, the -- the fraud schemes are ever present. And, in this case, while we hoped nobody would be willing to take advantage of this situation, people have.

WYNTER: Officials say the contract workers tapped into the system by creating fake accounts and cashing in big. The Red Cross grew suspicious after an audit and contacted the FBI. Special Agent Javier Colon said he was surprised by the number of confessions.

JAVIER COLON, FBI SPECIAL AGENT: In many cases, they have openly admitted that they have never been to the state of Louisiana and that they weren't entitled to the money.

WYNTER: This store manager says an employee at his Western Union branch also grew suspicious when the same person came in three times to collect money.

UNIDENTIFIED MALE: She's the one who find out. She had that kind of feeling that she was here a long time. And she contacted the -- the authority.

WYNTER: The American Red Cross released a statement, saying -- quote -- "It does not tolerate fraud. We view donors as investors. And it goes on -- quote -- "Instances of fraud represent a small percentage of the overall contributions that have been made to the American Red Cross."

COLON: Our investigation is going to be expanded to include other parts of California and out of state, and there's thousands of claims that have been made in other states.

WYNTER: The Red Cross says it's devising new systems so that such fraud will be easier to detect in the future.

Kareen Wynter, CNN, Bakersfield, California.

(END VIDEOTAPE)

KAGAN: Some items ahead that you will not want to miss right here on CNN LIVE TODAY. Cameras watching on every street corner, metal detectors at the mall. We'll take you to a country experienced in protecting against terrorists.

Avoid the -- oh, that is, like, so last year label. Get your new in 2006 information right here. That's coming up in about 10 minutes.

And while we're looking ahead, we'll show you what some airline designers are dreaming up for your future flights, maybe as soon as next year.

(COMMERCIAL BREAK)

KAGAN: All right. If you've stuffed yourself a little bit over the holidays and put on a few extra pounds, don't worry about it. You still will have room to fit into your car seat.

Automakers both at home and -- here and abroad are taking notice of how Americans are expanding their waistlines. "USA Today" reports that they're making wide car seats.

The paper says American automakers have been doing this for a while. And now foreign automakers are following suit.

For example, the 2006 Honda Civic has front seats that are three- quarters of an inch wider than this year's model. Some car companies are also making their vehicles a little bit wider.

There you go. All to accommodate those who have expanded a little bit.

Susan, are the markets expanding or are they shrinking?

SUSAN LISOVICZ, CNN FINANCIAL CORRESPONDENT: They're contracting, unfortunately, Daryn.

KAGAN: Yes.

(STOCK MARKET REPORT)

KAGAN: Well, Starbucks, which has permeated our culture, is percolating from coast to coast. We're going to look at the newest trend for the chain that caters to the caffeine junkies.

Plus, in just a few days, we will kiss 2005 good-bye. What will we be turning our attention to in 2006? "Newsweek" helps us crack the code coming up next.

(COMMERCIAL BREAK)

KAGAN: In just a few days you'll be able to say, "That is, like, so 2005" as we bid adieu to an unforgettable year and we check the radar for 2006. This week's "Newsweek" shows one of the biggies for next year, the movie version of the blockbuster book "The Da Vinci Code." Here's a peek.

(BEGIN VIDEO CLIP, "THE DA VINCI CODE")

UNIDENTIFIED MALE, "THE DA VINCI CODE": And then there's something here I can't understand.

UNIDENTIFIED MALE, "THE DA VINCI CODE": Witness the biggest cover-up in human history.

(END VIDEO CLIP)

KAGAN: Jonathan Darman is an editor at "Newsweek." He joins me from our New York bureau this morning to talk about what's next.

Jonathan, Happy New Year.

JONATHAN DARMAN, "NEWSWEEK": Hi, Daryn. How are you? Happy New Year.

KAGAN: I'm doing great.

Loved Dan Brown's "Da Vinci Code." I was one of the early people to discover this book. But I am wondering, how can this transfer to the screen? It has to be disappointing.

DARMAN: Well, you know, that's a good question. But the thing about "The Da Vinci Code" is it has such a huge built-in fan base, all those people like who love the book, a lot of people are probably going to line up to go watch it just to say, you know, it wasn't as good as the book, which I'm sure plenty of people will even if it's a great movie.

KAGAN: Just to pan it. Oh, the cynics out there.

In the world of politics, you say you can find if you're conservative, if you're a Democrat, all you have to do is go to Virginia and you'll find the up-and-comers.

DARMAN: Yes, go to the state of Virginia. The outgoing governor, Mark Warner, is a Democrat who is definitely making waves in the national Democratic Party as he tries to set out on a broader stage.

He's someone who's really been successful in Virginia, which has typically been a red state, sort of finding a middle ground. And even though he's a Democratic, he's enjoyed wide support with a lot of southern and rural voters. So the Democratic Party is definitely paying attention to him, seeing if they can get some of that magic on the national side.

And then the senator, the junior senator from Virginia, George Allen, also a former governor of Virginia, is a big player in the Republican Party. He's been incredibly successful raising money for Republican candidates around the country. And national Republican leaders think he's a bright star.

So you can see both of these men either at the top or bottom of presidential tickets in 2008. And they're certainly going to be take steps for that in the next year.

KAGAN: In the world of technology, there's an Internet site called myspace.com which kind of cracks me up, because if you have say, "What?" It shows how old you are, which made me old before I read about it.

DARMAN: Well, the thing about myspace, you know, I was surprised by this, Daryn. myspace actually gets more hits per day than either Google or AOL.

They have 43 million users. And what they've done is they've built this online community of people who want to sort of branch out, make friends, and also swap music and talk about music.

And now they're really branching out into multimedia. They're going to launch a myspace music label, and they're going to talk about funding independent films and really becoming sort of the MTV of the Internet.

KAGAN: Started by two guys who hadn't had that much incredible success before.

DARMAN: Yes, no, these are two guys, Chris DeWolfe and Tom Anderson, who had met at an online start-up, where they weren't too successful, and they got this idea to start this site. And it's really one of these -- we're going to be talking about these guys the way we talk about the Google guys now.

I mean, they're already rock stars out on the West Coast. In the next year or so, I think they're going to be the sort of, you know, Google guys or Bill Gates.

KAGAN: In the world of entertainment, you feature a young man named -- who uses the name Saigon. Here's a concept: a rapper who likes women, is against thugs, goes out against deadbeat dads, and tries to have a positive image.

DARMAN: Yes, and he's definitely speaking from experience. He actually was involved in some gang shootings as a teenager and ended up shooting -- spending, I'm sorry, six years in prison, I believe, for that crime.

But Saigon is an interesting guy. He's probably the best-known rapper out there right now who has yet to release a single on a major label.

He's gained a lot of notoriety for his appearances on the HBO show "Entourage." I'll admit, that's how I first heard about him. But there's tremendous buzz surrounding his first album. I think he's seen as being almost more talented in a lot of ways than some of the biggest stars out there like 50 Cent or Eminem.

KAGAN: And there's other people to talk about. There's a woman physicist out there, and also athletes that you talk about. And it's all in this week's "Newsweek."

Jonathan, Happy New Year to you. Hope it's an interesting one.

DARMAN: Thanks, Daryn. You, too.

KAGAN: Jonathan Darman from "Newsweek" magazine.

Well, before you book your next flight, you might want to check in with the airline to see what kind of seating accommodations they provide. 2006, in the next year, many airlines will go after your business by offering more comfort and more space. Now there is a concept. For some, it will be the same old bumpy ride.

CNN's Richard Quest shows us the dream and the reality of flying coach.

(BEGIN VIDEOTAPE)

RICHARD QUEST, CNN CORRESPONDENT (voice-over): Look long and hard. This could be the airline bed of the future. It's called the Odyssey and it's just a concept at the moment. But Dr. Phil Lewis, managing director of Contour, which makes premium seats, believes this is the future.

DR. PHIL LEWIS, CONTOUR: Flatter, wider, longer seats, I mean, the bottom line, that's really what is comes down to. It's about how much living space have I got -- living space is a combination of how much length, how much width and how much privacy have I got.

QUEST: An average airline looks to upgrade every five to 10 years, and it's little wonder. These are expensive investments. A typical seat has around 1,500 parts and cost on average $40,000. It's truly fascinating to see what goes under our backside.

I must admit, I am enjoying trying out all these new beds.

(on camera): This is the sort of business class seat most of us will be familiar with. The so-called lie flat angled seat. It's flat but not horizontal, and the debate, of course, continues of whether you can really get a good night's sleep, especially if you're 6'2".

(voice-over): Currently only three airlines have fully flat beds in business: South African, BA, Virgin and now Air New Zealand. So, who is doing what in 2006?

Air Canada is joining the fully flat bed club. United Airlines will roll out its new international premium product, as is British Airways. Emirates is upgrading both first and business.

Still, there are those that believe that when it comes to seats, there is little more room for maneuver.

LEWIS: The fundamentals are the fundamentals. You go back to a seat we produced for BOAC in 1948 called the Slumberette. It had the space, it had the bed. The only thing it didn't have was the complex electronics.

QUEST: In the end, it's all about the balance. Cost and comfort. And laying claim to a good piece of real estate on the plane. Now what a shame I didn't bring the PJs.

(on camera): I'm ready for a snooze.

(END VIDEOTAPE)

KAGAN: You sleep well, Richard.

Richard Quest looking at the latest in airline seating.

Thank you.

(NEWSBREAK)

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