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American Morning
Martha Stewart's Trial Moving into Final Days; More Charges Expected Today in Disappearance of Mississippi Family
Aired March 01, 2004 - 09:30 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.
BILL HEMMER, CNN ANCHOR: Stocks open for business. Opening bell a few short seconds away there. 10,583 is where we start for the Dow 30, up three points Friday. Whole new month today, the 1st of March. NASDAQ market site, 2029 is where we start, down about three points on Friday. Open for business, whole new week and a whole new month starts today.
SOLEDAD O'BRIEN, CNN ANCHOR: A whole new week and a whole new month. Yes, how about that. I do like that.
Just about half past the hour, a whole new half hour for you. Martha Stewart trial about to get started. Jeff Toobin standing by at the courthouse for us this morning. We're going to talk with him about the last chance for attorneys to convince the jury, really, as they start their closing arguments.
HEMMER: Also, look back at last night, 90 second pop. One more look at the Academy Awards. Everybody's is pretty fired up this morning. Boy, they had a lot to say, too. We'll get to that also in a few moments here, so stay tuned.
O'BRIEN: Fashion? Who won?
HEMMER: Yes.
O'BRIEN: Not many upsets yesterday, was there?
HEMMER: No, I though actually, overall, it was a pretty boring show, too, not a whole lot of surprises.
O'BRIEN: Did it go extra long?
HEMMER: No, I think it was under four hours, just by a tick.
O'BRIEN: Silver lining, right, because sometimes it goes on and on and one.
HEMMER: Yes, that's so true.
O'BRIEN: Let's get right to our top stories this morning. A rebel convoy entering the outskirt's of Haiti's capital. Reports say it is being greeted by a jubilant crowd. Meanwhile, U.S. Marines have been arriving in Port-au-Prince starting just hours after the resignation and exile of Jean Bertrand Aristide. The first contingent of French troops also started pulling in. They are part of a U.N. multinational force that's just been sent in to restore order in that country.
The Department of Homeland Security planning to place U.S. inspectors at international airports. "The Wall Street Journal" cites a U.S. Customs chief who says that the plan is aimed at identifying and catching possible terrorists before they board U.S.-bound flights. U.S. Customs is considering seven cities, but has not yet sought support from host countries.
If you think you've been paying a little bit more at the pump lately well, you're right. According to the Rumberg (ph) survey, gas prices have jumped nearly 7 cents in the past two weeks. The average price of a gallon of self-serve regular is $1.72. A rise in crude oil prices, also higher refinery costs are being blamed for that increase.
And in New York, dozens of people took part this weekend in the seventh annual U.S. memory -- USA Memory Championships rather. Those who have a hard time finding their keys, obviously, don't need to take part. Oops, guess I'm out this year. Those mental athletes had to remember 100 random words, 99 names and faces, and also the order of a shuffled deck of cards. The defending champion, a guy name Scott Hagwood, well, he won again. He cemented his victory by twice memorizing a shuffled deck of cards in under four minutes.
HEMMER: Wow.
Those with ADHD need not apply. I'm out.
(WEATHER UPDATE)
HEMMER: Martha Stewart's trial moving into its final days. Closing arguments start today and the case could be in the jury's hands by Wednesday.
Senior legal analyst Jeffrey Toobin outside the courthouse, down there in lower Manhattan.
Jeff, nice to see you. Good morning again. We talked earlier this morning.
JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: Spring-like day out here.
HEMMER: That it is. Yes, about 52.
Yes, listen. take a look at this picture on the front page of "The New York Times" on Saturday morning. Martha Stewart walking through Chinatown right after the decision was announced by the judge to drop the most serious charge. Have you seen this woman in public this gleeful with that sun coming on her face after that decision came down?
TOOBIN: Well, it's funny that you mentioned it. My colleagues out here were saying she just walked in looking similarly jubilant today, looking in a very good mood. She's been pretty grim faced in the courtroom. So apparently, she thinks that her side is on a roll. Without a doubt, the dismissal of the securities fraud was a good thing for her side. I don't think we should overstate how much trouble she's still -- understate how much trouble she's still in. She still faces four very serious felony charges. The evidence against those on those four counts is clearly stronger than the securities fraud evidence was. So, yes, this is good news for Martha Stewart, but she shouldn't start celebrating yet.
HEMMER: I want to talk about defense strategy in a second here. What is the prosecution now. Does it realign it's case in any way at this point?
TOOBIN: I think it's really just a question of streamlining it, because the securities fraud count, which said that Martha Stewart lied in order to prop up the stock in her own company, that's -- that was always kind of a side issue. That was never really the heart of the case. The heart of the case is, did Martha Stewart lie to investigators and conspire to do so? That's the heart of the case. The prosecutors can spend all their time talking about that. That, I think, is what they'll think about and talk about, and it really makes their jobs somewhat easier, not harder.
HEMMER: Back to the end of your first answer. How serious are the remaining charges now, Jeff?
TOOBIN: Really very serious. These are five-year maximum felony counts. Under the federal sentencing guidelines, Martha Stewart is looking at a year or two in prison if convicted on basically any of these four charges. So, yes, she'd be looking maybe at two or three years if she was securities fraud was still in the case. But her person of her stature for anybody looking at that kind of prospect, not to mention the disgrace of a felony conviction, is still a very big deal.
HEMMER: For the jurists who get this case, and when the story first broke, we said this repeatedly, about how complicated it can be to explain these charges to jurors. I don't know if it's less complicated now or not. But I know you made the comment Friday that it's a less cluttered case. I don't know if you can react to that from a juror's standpoint.
TOOBIN: I think it's both less cluttered and less complicated, though there's a lot of complicated evidence about what actually happened with this sale of ImClone stock, the issue is very simple. Did Martha Stewart lie to investigators about what happened? It really isn't all that complicated in terms of what she's charged with. The evidence is complicated, and the prosecution has to deal with the fact that at least against Stewart, not her co-defendant, this is really circumstantial case. There is no witness who got on the witness stand who says Martha Stewart told me she lied. I told Martha Stewart to lie. We agreed that she lied. There is no witness like that. It's a circumstantial case. That's why summation by Michael Shackner (ph), the more junior prosecutor, will be very important this morning.
HEMMER: Thank you, Jeff. Jeff Toobin, heading inside that courtroom now. We'll talk to you tomorrow. Here's Soledad.
TOOBIN: See you later, Bill.
O'BRIEN: More charges are expected today in the disappearance of a Mississippi family. Two weeks ago, blood and bullet shell casings were found at a Yazoo County Home, but no sign of the family who lived there, Michael and Rebecca Hargon and their 4-year-old son. Drug and firearm charges have already been filed against Earnest Lee Hargon, a cousin. Authorities are now working on a theory that there may have been a dispute over an inheritance.
Warren Strain of The Mississippi Department of Public Safety joins us this morning.
Good morning. Nice to see you. Thanks for being with us.
WARREN STRAIN, MISSISSIPPI, DEPT. OF PUBLIC SAFETY: You're welcome, Soledad. Good morning.
O'BRIEN: Thank you very much. You have announced that you expected to file more charges against Earnest Lee Hargon. Can you elaborate on that for us, please?
STRAIN: At this point, no, Soledad, we're still, actually even to this moment, working on the case against Earnest Lee Hargon. There will be multiple felony counts that will be filed here in Yazoo City and Yazoo County court this morning.
O'BRIEN: So multiple felony counts. And you had said previously that the charges continue to mount. OK, you can't be more specific, but can you give me a sense if those felony charges are going to be directly related to this missing family?
STRAIN: Absolutely.
O'BRIEN: What do you think happened to the Hargon family? The 4-year-old son and parents as well went missing on Valentine's Day. We were not able to find any indication that there was a break-in, nor were you able to find any bodies at this point. Bring us up to the latest on the investigation.
STRAIN: The latest in the investigation this morning, Soledad, is the federal and state task force set up here at the courthouse behind me has been operating for over a week now. During the course of that I've developed 400 leads in the case. We're moving forward with those leads.
Over the past weekend, spent the better part of the weekend there's been an extensive search in Smith County, about 75 miles as the crow flies to the south of here. We spent the entire weekend out there searching, based upon information we had developed. That was fruitless. So, therefore, we've come back here. We're developing leads, and we'll move forward at this point and look as we search for the Hargon family.
O'BRIEN: Do you think this family is alive or dead?
STRAIN: That would be absolute speculation at this point. We remain hopeful that the Hargon family will be found safe and sound.
O'BRIEN: There are reports that you found an assault rifle in the home of Earnest Lee Hargon. Are you able at this time to have any evidence that links the shell casings from that rifle, or really the rifle itself to the shell casings that were found in the family's home?
STRAIN: Well, the shell casings I can say do not match the rifle that was found in Earnest Lee Hargon's possession when he was taken into custody last Friday. The casings do not match the weapon that was found on him at the time.
O'BRIEN: Well, you have talked about when we started this interview by talking a little bit about this battle over an inheritance. Can you elaborate on that for me?
STRAIN: Well, that's a possible motive, obviously, that could potentially go to motive. But there are several different components and other things that are being looked at, too, as well, Soledad.
O'BRIEN: So the uncle leaving the property to one of the Hargons, but not the other, may only be a part of your investigation at this point?
STRAIN: That is very accurate.
O'BRIEN: Warren Strain with the Mississippi Department of Public Safety, joining us this morning. Thanks for your time, sir, and good luck in your investigation as that proceeds, and as you mentioned, of course, we hope that family will be found alive and well also.
HEMMER: In a moment here, hobbits the toast of Hollywood, an Oscar sweep last night. Highlights from the show in a moment.
O'BRIEN: Plus a deposed Wall Street boss says he's not going to give back the millions in pay, but he may not get the last word on the issue. We'll explain as AMERICAN MORNING continues.
(COMMERCIAL BREAK)
(BEGIN VIDEOTAPE)
HEMMER: We've got our own group of outcasts. This morning's "90-Second Pop" penal is all about Oscar. You liked that, didn't you?
TOURE, CONTRIBUTING EDITOR, "ROLLING STONE" MAGAZINE: I liked that.
HEMMER: How did our experts do with their predictions? Do we call you guys experts?
SARAH BERNARD, CONTRIBUTING EDITOR, "NEW YORK" MAGAZINE: Sure.
HEMMER: Say hello to humorist Andy Borowitz, back with us. Drew (ph), good morning.
ANDY BOROWITZ, HUMORIST: Andre 2004.
HEMMER: 2004.
BOROWITZ: Thank you.
HEMMER: "New York" magazine contributing editor Sarah Bernard.
Good morning, Sarah.
BERNARD: Good morning.
HEMMER: And Toure, the legendary contributing editor for "Rolling Stone."
BERNARD: (UNINTELLIGIBLE) legendary.
HEMMER: Sarah, you called it.
BERNARD: I did. I did so well.
HEMMER: Best picture, congratulations.
BERNARD: Thank you.
HEMMER: You really went out on a limb.
(CROSSTALK)
BERNARD: I know.
BOROWITZ: What a coup.
BERNARD: I don't know where I saw it coming from. But, you know, I'm going to gloat. As I predicted, it was the year of "The Return of the King," but really it was, again, the academy recognizing all three movies, which is why they got 11.
HEMMER: Sarah, you know, you could have thrown a dart and picked this one.
(CROSSTALK)
BERNARD: Hey! Hey, where's the love?
TOURE: I went out on a limb and picked Sean Penn. Hello!
HEMMER: Actually, we're not on Sean Penn yet.
BERNARD: You have to wait.
HEMMER: Toure said Friday "Mystic River" is going to steal the night.
(CROSSTALK) HEMMER: You said it with conviction.
TOURE: Well, I always say everything with conviction. Like, what do you want from me?
BERNARD: It stole five minutes.
BOROWITZ: You know, Peter Jackson, you know, he won all of these awards. Please, now go to Supercuts. You can do it. You can do it. I think so.
BERNARD: But I've got to say one thing about "Lord of the Rings." This is the first time in Oscar history that the best picture didn't have any nominees in best actor, best actress or supporting roles at all. So, that was kind of an odd thing.
HEMMER: Interesting Oscar history.
TOURE: So, does that say that it's harder to direct, like, people than it is to direct machines? I don't know. What does that mean?
BERNARD: Well, it was such an ensemble. It's really everyone has smaller parts.
BOROWITZ: It's also the first time a fantasy picture.
BERNARD: That's true.
BOROWITZ: I mean, except for some of those Oliver Stone ones. But, I mean, yes, first time.
HEMMER: Hey, listen, best actress, Charlize Theron -- Theron now, not Theron, by the way.
BERNARD: Right, Theron.
TOURE: Right.
HEMMER: Correction made last night. Andy called it. Sarah called it. Not much of a limb here, I don't think.
BERNARD: Hey, I'm getting no credit!
TOURE: Not much of a limb at all.
HEMMER: Yes.
BERNARD: No, she -- I mean, I think everyone pretty much knew she was going to win. There was a chance for Diane Keaton, but...
HEMMER: Except for Toure, who said you'll win the Oscar pool if you go for the upset, Diane Keaton.
TOURE: Oh, here you go, in my face. I'm going to get you back, Billy. HEMMER: Yes? Well, I think she deserved it actually. If you saw that film and the way she performed...
BOROWITZ: Yes.
HEMMER: ... I mean, she had Aileen Wuornos down to a "T."
TOURE: I can't believe this!
BOROWITZ: Yes, I thought she was -- I thought she was fabulous. And it was very sweet. I mean, she was obviously -- I think that was a genuine emotional speech.
HEMMER: Best actor, Sean Penn?
(CROSSTALK)
TOURE: Can we talk about Sean Penn?
HEMMER: Yes, he won. Andy...
(CROSSTALK)
TOURE: And how some people on the panel said that he was un- liked, and he got a standing ovation. His entire career was recognized in one moment. Love to see that.
HEMMER: Well...
BERNARD: And he...
HEMMER: Go ahead.
BERNARD: He gave a pretty classy speech, I have to admit. I was kind of bracing for him to say something more alarming.
BOROWITZ: And that little WMD line.
BERNARD: He slipped into a WMD joke.
TOURE: Loved that.
BOROWITZ: Yes.
(CROSSTALK)
BERNARD: That was pretty minor compared to what I was waiting for.
HEMMER: You know, before we came on the air, you were making the point that Mel Gibson was invited and chose not to come.
TOURE: Yes.
HEMMER: Why do you say that's so significant? TOURE: Well, clearly, he's afraid of being booed. You know, like, he can put out this film, but he doesn't want to stand out in public and take people's...
HEMMER: You think that's it?
TOURE: Yes, absolutely. He doesn't want to have people in his face saying, no, we don't like what you've done.
HEMMER: In a lot of ways, just the fact that he made the movie, some people would say, he's inviting that (UNINTELLIGIBLE).
TOURE: Well, of course, but he doesn't have to stand up in public and take it to his face.
HEMMER: I'll talk to you afterwards. I'm kidding.
Fashion, Sarah, who looked good last night?
BERNARD: Nicole Kidman. She has really become one of the fashion icons on the red carpet. I have to say this Chanel outfit was so much better than her Tom Ford (ph) slip-up, I would say, at the Golden Globes. She really looked classy. And not only that, Charlize. We've got to hand it to her. She's got the sort of old school glamour.
TOURE: Soledad!
O'BRIEN: No, Charlize looked fantastic. Nicole Kidman, how did she get into that dress?
BERNARD: I don't know.
O'BRIEN: I mean, she was like squeezed...
BERNARD: There is some secret jumper somewhere.
O'BRIEN: Too tight. Too tight.
HEMMER: Who did not look good?
BOROWITZ: I've got to say, Diane Keaton, she has now officially crossed over from the Annie Hall like to Hassidic rabbi. I mean, please...
TOURE: I don't know. I don't know...
BOROWITZ: Side curls are next.
BERNARD: I know.
BOROWITZ: And look at that. Look at that.
(CROSSTALK)
BERNARD: A Charlie Chaplin hat, too. BOROWITZ: I felt like I should have been in Schule (ph).
HEMMER: Side curls?
BOROWITZ: Unbelievable.
TOURE: I don't know. As a man, I take a lot of influence from Diane Keaton and the suits that she wears.
HEMMER: Yes.
TOURE: Like, we can, you know, wear those same sorts of things.
BERNARD: Yes.
BOROWITZ: You know, here is a polarizing fashion choice, Toure and I loved Angelina Jolie last night. A lot of the women didn't. I don't get that.
BERNARD: Yes, I wonder why.
(CROSSTALK)
HEMMER: Overall...
BERNARD: And wait. Uma Thurman. Uma Thurman.
HEMMER: Uma Thurman, you liked her, no?
BERNARD: No, terrible.
HEMMER: You didn't like Uma?
BERNARD: It was very peasant-samurai.
BOROWITZ: What about Oprah? Uma, Oprah?
BERNARD: Oh, no!
BOROWITZ: I'm sorry. It's such a great joke, I had to do it.
HEMMER: We're out of time. I'm sorry.
BERNARD: Oh!
HEMMER: We can continue this discussion later.
TOURE: And we will.
HEMMER: Here's Soledad.
(END VIDEOTAPE)
O'BRIEN: Well, still to come this morning, the tug of war over millions paid to a form Wall Street big wig. That's ahead as AMERICAN MORNING continues. (COMMERCIAL BREAK)
O'BRIEN: Welcome back everybody. We've got some news just in to CNN. We are getting word from Haiti this morning that the rebels have arrived in Port-au-Prince, in Haiti. Of course, we are trying to figure out the situation there at this time and see what the rebels plan to do now that they've gotten into Port-au-Prince. As you well know, President Jean Bertrand-Aristide is now in exile, arriving early in the morning as he left Haiti much to the cheers of the rebels who have been looking for his ouster for the last four weeks or so. We're going to continue to update you on this story as we continue to follow it this morning.
Let's first though turn to business news. The $120 million battle over a deposed Wall Streeter's pay. Plus, a look at the market's open this morning. Andy Serwer "Minding Your Business."
Good morning.
ANDY SERWER, "FORTUNE" MAGAZINE: Good morning to you.
O'BRIEN: Start with the market first, why not?
SERWER: Let's do that. Yes, because we're starting the month off right. Stock market's up this morning, 48 points, 49 and it's going.
Right, exactly, but it's a good trend, Soledad. NASDAQ up as well. What's moving? Coke's moving a little bit to the south side. That's because the government is investigating accounting irregularities perhaps in Japan. That's "The Wall Street Journal" reporting. I want to talk about Martha Stewart's stock. That stock was up sharply on Friday with the news that courts threw out the most serious charge against Martha Stewart. The stock's up about 11 percent on huge volume. That stock is trading up this morning as well.
Meanwhile, let's talk about the 120, $140 million man, that's Dick Grasso, the former head of the New York Stock Exchange. "Wall Street Journal" also reporting this morning that Eliot Spitzer, the New York State attorney general, is paving the way to perhaps suing Mr. Grasso to recover some of that famous 140 million bucks. Perhaps looking to recover $120 million. 120 minus -- $140 million, minus 120. That would leave him about $20 million.
O'BRIEN: Don't spend any of your money yet. Not too bad. What do legal experts say? Does Eliot Spitzer have a legal leg to stand on in this thing?
SERWER: He does have a leg to stand on. It's a difficult case, because the board said, here's your money, take it. He didn't do anything wrong. People are suggesting he was overpaid. There is a precedent here. Adelphia University president was sued by Dennis Vako (ph), Elliot Spitzer's predecessor, and they recovered some money there. Again, people said he was overpaid. But still, it's going to be a tough road, I think. O'BRIEN: But he has said, he is not going to pay.
SERWER: He is not going to pay.
HEMMER: But he had a contract.
SERWER: That's right. So it's hard to say how come he's supposed to give the money back.
HEMMER: All right, Andy. Thank you. Question of the day. Here's Jack, back with that.
JACK CAFFERTY, CNN ANCHOR: We got to call the lawyer again. This is about the fifth time today.
Today, a closed-door hearing in Eagle, Colorado, into the sexual history of the woman accusing Kobe Bryant of rape. Is it relevant? Should it be allowed into trial or not? Pardon me. Donna from Bruce Crossing, Michigan, "Of course. When hiring employees the person's past history is certainly relevant. If you're going to hire a babysitter for your kids, wouldn't you want to know if their record indicated they were a molester, abuser, et cetera?"
Edward in Ontario, "Her sexual history is exactly that, it's history. It doesn't apply in this incident."
Cindy in Victoria, British Columbia: "Yes, I think Kobe Bryant's accuser's sexual history is relevant. She may have been very sexually active and went straight from Kobe Bryant's room to another man, and then thought she could accuse Bryant of assault for the money."
David in Dallas, "Of course her history is relevant. I also think more should be made of the fact that there has not been a flood of victims coming forward regarding a pattern of sexual assault in Kobe's past, whereas the victim appears to have a history of sexual promiscuity and psychotic behavior.
And another viewer wrote that in this morning's program, I managed to offend the French and the Arabs, and he wanted to apply for a job sorting out my hate mail. The reference I made to the Guantanamo. He talked about they put wet towels on their heads to stop -- so they wouldn't have to listen to the Bruce Springsteen music. It was not a disparaging remark about Arabs. The thing I said about the French goes though.
SERWER: OK, as long as we've set the record straight.
CAFFERTY: I copped to one.
O'BRIEN: I understood that. People misunderstood that.
CAFFERTY: Soledad is on my side.
O'BRIEN: I am? Oh my God, what am I saying?
Let's turn to Aaron Brown now with a preview of what's coming up tonight on "NEWSNIGHT."
AARON BROWN, "NEWSNIGHT" ANCHOR: Thank you.
Thank you. And coming up tonight on "NEWSNIGHT," we'll take you to a small town in Wisconsin, and the story of a local hero, honor student, star athlete, Eagle scout, but is he a murderer also? The mystery in Wyawega (ph), Wisconsin. That story, plus all the day's news, morning papers, of course, all the rest. That's "NEWSNIGHT," CNN tonight, 10:00 p.m. Eastern.
O'BRIEN: All right, Aaron, we'll be watching.
BROWN: Coming up on CNN, we're going to go back out to Los Angeles for the full Oscar wrap up. That's on CNN LIVE TODAY with Daryn Kagan. AMERICAN MORNING is back in just a moment.
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Charges Expected Today in Disappearance of Mississippi Family>
Aired March 1, 2004 - 09:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Stocks open for business. Opening bell a few short seconds away there. 10,583 is where we start for the Dow 30, up three points Friday. Whole new month today, the 1st of March. NASDAQ market site, 2029 is where we start, down about three points on Friday. Open for business, whole new week and a whole new month starts today.
SOLEDAD O'BRIEN, CNN ANCHOR: A whole new week and a whole new month. Yes, how about that. I do like that.
Just about half past the hour, a whole new half hour for you. Martha Stewart trial about to get started. Jeff Toobin standing by at the courthouse for us this morning. We're going to talk with him about the last chance for attorneys to convince the jury, really, as they start their closing arguments.
HEMMER: Also, look back at last night, 90 second pop. One more look at the Academy Awards. Everybody's is pretty fired up this morning. Boy, they had a lot to say, too. We'll get to that also in a few moments here, so stay tuned.
O'BRIEN: Fashion? Who won?
HEMMER: Yes.
O'BRIEN: Not many upsets yesterday, was there?
HEMMER: No, I though actually, overall, it was a pretty boring show, too, not a whole lot of surprises.
O'BRIEN: Did it go extra long?
HEMMER: No, I think it was under four hours, just by a tick.
O'BRIEN: Silver lining, right, because sometimes it goes on and on and one.
HEMMER: Yes, that's so true.
O'BRIEN: Let's get right to our top stories this morning. A rebel convoy entering the outskirt's of Haiti's capital. Reports say it is being greeted by a jubilant crowd. Meanwhile, U.S. Marines have been arriving in Port-au-Prince starting just hours after the resignation and exile of Jean Bertrand Aristide. The first contingent of French troops also started pulling in. They are part of a U.N. multinational force that's just been sent in to restore order in that country.
The Department of Homeland Security planning to place U.S. inspectors at international airports. "The Wall Street Journal" cites a U.S. Customs chief who says that the plan is aimed at identifying and catching possible terrorists before they board U.S.-bound flights. U.S. Customs is considering seven cities, but has not yet sought support from host countries.
If you think you've been paying a little bit more at the pump lately well, you're right. According to the Rumberg (ph) survey, gas prices have jumped nearly 7 cents in the past two weeks. The average price of a gallon of self-serve regular is $1.72. A rise in crude oil prices, also higher refinery costs are being blamed for that increase.
And in New York, dozens of people took part this weekend in the seventh annual U.S. memory -- USA Memory Championships rather. Those who have a hard time finding their keys, obviously, don't need to take part. Oops, guess I'm out this year. Those mental athletes had to remember 100 random words, 99 names and faces, and also the order of a shuffled deck of cards. The defending champion, a guy name Scott Hagwood, well, he won again. He cemented his victory by twice memorizing a shuffled deck of cards in under four minutes.
HEMMER: Wow.
Those with ADHD need not apply. I'm out.
(WEATHER UPDATE)
HEMMER: Martha Stewart's trial moving into its final days. Closing arguments start today and the case could be in the jury's hands by Wednesday.
Senior legal analyst Jeffrey Toobin outside the courthouse, down there in lower Manhattan.
Jeff, nice to see you. Good morning again. We talked earlier this morning.
JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: Spring-like day out here.
HEMMER: That it is. Yes, about 52.
Yes, listen. take a look at this picture on the front page of "The New York Times" on Saturday morning. Martha Stewart walking through Chinatown right after the decision was announced by the judge to drop the most serious charge. Have you seen this woman in public this gleeful with that sun coming on her face after that decision came down?
TOOBIN: Well, it's funny that you mentioned it. My colleagues out here were saying she just walked in looking similarly jubilant today, looking in a very good mood. She's been pretty grim faced in the courtroom. So apparently, she thinks that her side is on a roll. Without a doubt, the dismissal of the securities fraud was a good thing for her side. I don't think we should overstate how much trouble she's still -- understate how much trouble she's still in. She still faces four very serious felony charges. The evidence against those on those four counts is clearly stronger than the securities fraud evidence was. So, yes, this is good news for Martha Stewart, but she shouldn't start celebrating yet.
HEMMER: I want to talk about defense strategy in a second here. What is the prosecution now. Does it realign it's case in any way at this point?
TOOBIN: I think it's really just a question of streamlining it, because the securities fraud count, which said that Martha Stewart lied in order to prop up the stock in her own company, that's -- that was always kind of a side issue. That was never really the heart of the case. The heart of the case is, did Martha Stewart lie to investigators and conspire to do so? That's the heart of the case. The prosecutors can spend all their time talking about that. That, I think, is what they'll think about and talk about, and it really makes their jobs somewhat easier, not harder.
HEMMER: Back to the end of your first answer. How serious are the remaining charges now, Jeff?
TOOBIN: Really very serious. These are five-year maximum felony counts. Under the federal sentencing guidelines, Martha Stewart is looking at a year or two in prison if convicted on basically any of these four charges. So, yes, she'd be looking maybe at two or three years if she was securities fraud was still in the case. But her person of her stature for anybody looking at that kind of prospect, not to mention the disgrace of a felony conviction, is still a very big deal.
HEMMER: For the jurists who get this case, and when the story first broke, we said this repeatedly, about how complicated it can be to explain these charges to jurors. I don't know if it's less complicated now or not. But I know you made the comment Friday that it's a less cluttered case. I don't know if you can react to that from a juror's standpoint.
TOOBIN: I think it's both less cluttered and less complicated, though there's a lot of complicated evidence about what actually happened with this sale of ImClone stock, the issue is very simple. Did Martha Stewart lie to investigators about what happened? It really isn't all that complicated in terms of what she's charged with. The evidence is complicated, and the prosecution has to deal with the fact that at least against Stewart, not her co-defendant, this is really circumstantial case. There is no witness who got on the witness stand who says Martha Stewart told me she lied. I told Martha Stewart to lie. We agreed that she lied. There is no witness like that. It's a circumstantial case. That's why summation by Michael Shackner (ph), the more junior prosecutor, will be very important this morning.
HEMMER: Thank you, Jeff. Jeff Toobin, heading inside that courtroom now. We'll talk to you tomorrow. Here's Soledad.
TOOBIN: See you later, Bill.
O'BRIEN: More charges are expected today in the disappearance of a Mississippi family. Two weeks ago, blood and bullet shell casings were found at a Yazoo County Home, but no sign of the family who lived there, Michael and Rebecca Hargon and their 4-year-old son. Drug and firearm charges have already been filed against Earnest Lee Hargon, a cousin. Authorities are now working on a theory that there may have been a dispute over an inheritance.
Warren Strain of The Mississippi Department of Public Safety joins us this morning.
Good morning. Nice to see you. Thanks for being with us.
WARREN STRAIN, MISSISSIPPI, DEPT. OF PUBLIC SAFETY: You're welcome, Soledad. Good morning.
O'BRIEN: Thank you very much. You have announced that you expected to file more charges against Earnest Lee Hargon. Can you elaborate on that for us, please?
STRAIN: At this point, no, Soledad, we're still, actually even to this moment, working on the case against Earnest Lee Hargon. There will be multiple felony counts that will be filed here in Yazoo City and Yazoo County court this morning.
O'BRIEN: So multiple felony counts. And you had said previously that the charges continue to mount. OK, you can't be more specific, but can you give me a sense if those felony charges are going to be directly related to this missing family?
STRAIN: Absolutely.
O'BRIEN: What do you think happened to the Hargon family? The 4-year-old son and parents as well went missing on Valentine's Day. We were not able to find any indication that there was a break-in, nor were you able to find any bodies at this point. Bring us up to the latest on the investigation.
STRAIN: The latest in the investigation this morning, Soledad, is the federal and state task force set up here at the courthouse behind me has been operating for over a week now. During the course of that I've developed 400 leads in the case. We're moving forward with those leads.
Over the past weekend, spent the better part of the weekend there's been an extensive search in Smith County, about 75 miles as the crow flies to the south of here. We spent the entire weekend out there searching, based upon information we had developed. That was fruitless. So, therefore, we've come back here. We're developing leads, and we'll move forward at this point and look as we search for the Hargon family.
O'BRIEN: Do you think this family is alive or dead?
STRAIN: That would be absolute speculation at this point. We remain hopeful that the Hargon family will be found safe and sound.
O'BRIEN: There are reports that you found an assault rifle in the home of Earnest Lee Hargon. Are you able at this time to have any evidence that links the shell casings from that rifle, or really the rifle itself to the shell casings that were found in the family's home?
STRAIN: Well, the shell casings I can say do not match the rifle that was found in Earnest Lee Hargon's possession when he was taken into custody last Friday. The casings do not match the weapon that was found on him at the time.
O'BRIEN: Well, you have talked about when we started this interview by talking a little bit about this battle over an inheritance. Can you elaborate on that for me?
STRAIN: Well, that's a possible motive, obviously, that could potentially go to motive. But there are several different components and other things that are being looked at, too, as well, Soledad.
O'BRIEN: So the uncle leaving the property to one of the Hargons, but not the other, may only be a part of your investigation at this point?
STRAIN: That is very accurate.
O'BRIEN: Warren Strain with the Mississippi Department of Public Safety, joining us this morning. Thanks for your time, sir, and good luck in your investigation as that proceeds, and as you mentioned, of course, we hope that family will be found alive and well also.
HEMMER: In a moment here, hobbits the toast of Hollywood, an Oscar sweep last night. Highlights from the show in a moment.
O'BRIEN: Plus a deposed Wall Street boss says he's not going to give back the millions in pay, but he may not get the last word on the issue. We'll explain as AMERICAN MORNING continues.
(COMMERCIAL BREAK)
(BEGIN VIDEOTAPE)
HEMMER: We've got our own group of outcasts. This morning's "90-Second Pop" penal is all about Oscar. You liked that, didn't you?
TOURE, CONTRIBUTING EDITOR, "ROLLING STONE" MAGAZINE: I liked that.
HEMMER: How did our experts do with their predictions? Do we call you guys experts?
SARAH BERNARD, CONTRIBUTING EDITOR, "NEW YORK" MAGAZINE: Sure.
HEMMER: Say hello to humorist Andy Borowitz, back with us. Drew (ph), good morning.
ANDY BOROWITZ, HUMORIST: Andre 2004.
HEMMER: 2004.
BOROWITZ: Thank you.
HEMMER: "New York" magazine contributing editor Sarah Bernard.
Good morning, Sarah.
BERNARD: Good morning.
HEMMER: And Toure, the legendary contributing editor for "Rolling Stone."
BERNARD: (UNINTELLIGIBLE) legendary.
HEMMER: Sarah, you called it.
BERNARD: I did. I did so well.
HEMMER: Best picture, congratulations.
BERNARD: Thank you.
HEMMER: You really went out on a limb.
(CROSSTALK)
BERNARD: I know.
BOROWITZ: What a coup.
BERNARD: I don't know where I saw it coming from. But, you know, I'm going to gloat. As I predicted, it was the year of "The Return of the King," but really it was, again, the academy recognizing all three movies, which is why they got 11.
HEMMER: Sarah, you know, you could have thrown a dart and picked this one.
(CROSSTALK)
BERNARD: Hey! Hey, where's the love?
TOURE: I went out on a limb and picked Sean Penn. Hello!
HEMMER: Actually, we're not on Sean Penn yet.
BERNARD: You have to wait.
HEMMER: Toure said Friday "Mystic River" is going to steal the night.
(CROSSTALK) HEMMER: You said it with conviction.
TOURE: Well, I always say everything with conviction. Like, what do you want from me?
BERNARD: It stole five minutes.
BOROWITZ: You know, Peter Jackson, you know, he won all of these awards. Please, now go to Supercuts. You can do it. You can do it. I think so.
BERNARD: But I've got to say one thing about "Lord of the Rings." This is the first time in Oscar history that the best picture didn't have any nominees in best actor, best actress or supporting roles at all. So, that was kind of an odd thing.
HEMMER: Interesting Oscar history.
TOURE: So, does that say that it's harder to direct, like, people than it is to direct machines? I don't know. What does that mean?
BERNARD: Well, it was such an ensemble. It's really everyone has smaller parts.
BOROWITZ: It's also the first time a fantasy picture.
BERNARD: That's true.
BOROWITZ: I mean, except for some of those Oliver Stone ones. But, I mean, yes, first time.
HEMMER: Hey, listen, best actress, Charlize Theron -- Theron now, not Theron, by the way.
BERNARD: Right, Theron.
TOURE: Right.
HEMMER: Correction made last night. Andy called it. Sarah called it. Not much of a limb here, I don't think.
BERNARD: Hey, I'm getting no credit!
TOURE: Not much of a limb at all.
HEMMER: Yes.
BERNARD: No, she -- I mean, I think everyone pretty much knew she was going to win. There was a chance for Diane Keaton, but...
HEMMER: Except for Toure, who said you'll win the Oscar pool if you go for the upset, Diane Keaton.
TOURE: Oh, here you go, in my face. I'm going to get you back, Billy. HEMMER: Yes? Well, I think she deserved it actually. If you saw that film and the way she performed...
BOROWITZ: Yes.
HEMMER: ... I mean, she had Aileen Wuornos down to a "T."
TOURE: I can't believe this!
BOROWITZ: Yes, I thought she was -- I thought she was fabulous. And it was very sweet. I mean, she was obviously -- I think that was a genuine emotional speech.
HEMMER: Best actor, Sean Penn?
(CROSSTALK)
TOURE: Can we talk about Sean Penn?
HEMMER: Yes, he won. Andy...
(CROSSTALK)
TOURE: And how some people on the panel said that he was un- liked, and he got a standing ovation. His entire career was recognized in one moment. Love to see that.
HEMMER: Well...
BERNARD: And he...
HEMMER: Go ahead.
BERNARD: He gave a pretty classy speech, I have to admit. I was kind of bracing for him to say something more alarming.
BOROWITZ: And that little WMD line.
BERNARD: He slipped into a WMD joke.
TOURE: Loved that.
BOROWITZ: Yes.
(CROSSTALK)
BERNARD: That was pretty minor compared to what I was waiting for.
HEMMER: You know, before we came on the air, you were making the point that Mel Gibson was invited and chose not to come.
TOURE: Yes.
HEMMER: Why do you say that's so significant? TOURE: Well, clearly, he's afraid of being booed. You know, like, he can put out this film, but he doesn't want to stand out in public and take people's...
HEMMER: You think that's it?
TOURE: Yes, absolutely. He doesn't want to have people in his face saying, no, we don't like what you've done.
HEMMER: In a lot of ways, just the fact that he made the movie, some people would say, he's inviting that (UNINTELLIGIBLE).
TOURE: Well, of course, but he doesn't have to stand up in public and take it to his face.
HEMMER: I'll talk to you afterwards. I'm kidding.
Fashion, Sarah, who looked good last night?
BERNARD: Nicole Kidman. She has really become one of the fashion icons on the red carpet. I have to say this Chanel outfit was so much better than her Tom Ford (ph) slip-up, I would say, at the Golden Globes. She really looked classy. And not only that, Charlize. We've got to hand it to her. She's got the sort of old school glamour.
TOURE: Soledad!
O'BRIEN: No, Charlize looked fantastic. Nicole Kidman, how did she get into that dress?
BERNARD: I don't know.
O'BRIEN: I mean, she was like squeezed...
BERNARD: There is some secret jumper somewhere.
O'BRIEN: Too tight. Too tight.
HEMMER: Who did not look good?
BOROWITZ: I've got to say, Diane Keaton, she has now officially crossed over from the Annie Hall like to Hassidic rabbi. I mean, please...
TOURE: I don't know. I don't know...
BOROWITZ: Side curls are next.
BERNARD: I know.
BOROWITZ: And look at that. Look at that.
(CROSSTALK)
BERNARD: A Charlie Chaplin hat, too. BOROWITZ: I felt like I should have been in Schule (ph).
HEMMER: Side curls?
BOROWITZ: Unbelievable.
TOURE: I don't know. As a man, I take a lot of influence from Diane Keaton and the suits that she wears.
HEMMER: Yes.
TOURE: Like, we can, you know, wear those same sorts of things.
BERNARD: Yes.
BOROWITZ: You know, here is a polarizing fashion choice, Toure and I loved Angelina Jolie last night. A lot of the women didn't. I don't get that.
BERNARD: Yes, I wonder why.
(CROSSTALK)
HEMMER: Overall...
BERNARD: And wait. Uma Thurman. Uma Thurman.
HEMMER: Uma Thurman, you liked her, no?
BERNARD: No, terrible.
HEMMER: You didn't like Uma?
BERNARD: It was very peasant-samurai.
BOROWITZ: What about Oprah? Uma, Oprah?
BERNARD: Oh, no!
BOROWITZ: I'm sorry. It's such a great joke, I had to do it.
HEMMER: We're out of time. I'm sorry.
BERNARD: Oh!
HEMMER: We can continue this discussion later.
TOURE: And we will.
HEMMER: Here's Soledad.
(END VIDEOTAPE)
O'BRIEN: Well, still to come this morning, the tug of war over millions paid to a form Wall Street big wig. That's ahead as AMERICAN MORNING continues. (COMMERCIAL BREAK)
O'BRIEN: Welcome back everybody. We've got some news just in to CNN. We are getting word from Haiti this morning that the rebels have arrived in Port-au-Prince, in Haiti. Of course, we are trying to figure out the situation there at this time and see what the rebels plan to do now that they've gotten into Port-au-Prince. As you well know, President Jean Bertrand-Aristide is now in exile, arriving early in the morning as he left Haiti much to the cheers of the rebels who have been looking for his ouster for the last four weeks or so. We're going to continue to update you on this story as we continue to follow it this morning.
Let's first though turn to business news. The $120 million battle over a deposed Wall Streeter's pay. Plus, a look at the market's open this morning. Andy Serwer "Minding Your Business."
Good morning.
ANDY SERWER, "FORTUNE" MAGAZINE: Good morning to you.
O'BRIEN: Start with the market first, why not?
SERWER: Let's do that. Yes, because we're starting the month off right. Stock market's up this morning, 48 points, 49 and it's going.
Right, exactly, but it's a good trend, Soledad. NASDAQ up as well. What's moving? Coke's moving a little bit to the south side. That's because the government is investigating accounting irregularities perhaps in Japan. That's "The Wall Street Journal" reporting. I want to talk about Martha Stewart's stock. That stock was up sharply on Friday with the news that courts threw out the most serious charge against Martha Stewart. The stock's up about 11 percent on huge volume. That stock is trading up this morning as well.
Meanwhile, let's talk about the 120, $140 million man, that's Dick Grasso, the former head of the New York Stock Exchange. "Wall Street Journal" also reporting this morning that Eliot Spitzer, the New York State attorney general, is paving the way to perhaps suing Mr. Grasso to recover some of that famous 140 million bucks. Perhaps looking to recover $120 million. 120 minus -- $140 million, minus 120. That would leave him about $20 million.
O'BRIEN: Don't spend any of your money yet. Not too bad. What do legal experts say? Does Eliot Spitzer have a legal leg to stand on in this thing?
SERWER: He does have a leg to stand on. It's a difficult case, because the board said, here's your money, take it. He didn't do anything wrong. People are suggesting he was overpaid. There is a precedent here. Adelphia University president was sued by Dennis Vako (ph), Elliot Spitzer's predecessor, and they recovered some money there. Again, people said he was overpaid. But still, it's going to be a tough road, I think. O'BRIEN: But he has said, he is not going to pay.
SERWER: He is not going to pay.
HEMMER: But he had a contract.
SERWER: That's right. So it's hard to say how come he's supposed to give the money back.
HEMMER: All right, Andy. Thank you. Question of the day. Here's Jack, back with that.
JACK CAFFERTY, CNN ANCHOR: We got to call the lawyer again. This is about the fifth time today.
Today, a closed-door hearing in Eagle, Colorado, into the sexual history of the woman accusing Kobe Bryant of rape. Is it relevant? Should it be allowed into trial or not? Pardon me. Donna from Bruce Crossing, Michigan, "Of course. When hiring employees the person's past history is certainly relevant. If you're going to hire a babysitter for your kids, wouldn't you want to know if their record indicated they were a molester, abuser, et cetera?"
Edward in Ontario, "Her sexual history is exactly that, it's history. It doesn't apply in this incident."
Cindy in Victoria, British Columbia: "Yes, I think Kobe Bryant's accuser's sexual history is relevant. She may have been very sexually active and went straight from Kobe Bryant's room to another man, and then thought she could accuse Bryant of assault for the money."
David in Dallas, "Of course her history is relevant. I also think more should be made of the fact that there has not been a flood of victims coming forward regarding a pattern of sexual assault in Kobe's past, whereas the victim appears to have a history of sexual promiscuity and psychotic behavior.
And another viewer wrote that in this morning's program, I managed to offend the French and the Arabs, and he wanted to apply for a job sorting out my hate mail. The reference I made to the Guantanamo. He talked about they put wet towels on their heads to stop -- so they wouldn't have to listen to the Bruce Springsteen music. It was not a disparaging remark about Arabs. The thing I said about the French goes though.
SERWER: OK, as long as we've set the record straight.
CAFFERTY: I copped to one.
O'BRIEN: I understood that. People misunderstood that.
CAFFERTY: Soledad is on my side.
O'BRIEN: I am? Oh my God, what am I saying?
Let's turn to Aaron Brown now with a preview of what's coming up tonight on "NEWSNIGHT."
AARON BROWN, "NEWSNIGHT" ANCHOR: Thank you.
Thank you. And coming up tonight on "NEWSNIGHT," we'll take you to a small town in Wisconsin, and the story of a local hero, honor student, star athlete, Eagle scout, but is he a murderer also? The mystery in Wyawega (ph), Wisconsin. That story, plus all the day's news, morning papers, of course, all the rest. That's "NEWSNIGHT," CNN tonight, 10:00 p.m. Eastern.
O'BRIEN: All right, Aaron, we'll be watching.
BROWN: Coming up on CNN, we're going to go back out to Los Angeles for the full Oscar wrap up. That's on CNN LIVE TODAY with Daryn Kagan. AMERICAN MORNING is back in just a moment.
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Charges Expected Today in Disappearance of Mississippi Family>
