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American Morning

Scott Peterson's Ex-Mistress Takes the Stand; Terror Worries in the South

Aired August 11, 2004 - 07:00   ET

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

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


BILL HEMMER, CNN ANCHOR: Good morning.
An apparent web of lies revealed to the world. Scott Peterson's ex-mistress takes the stand.

Terror worries in the South. Police want to know what a Pakistani man was doing videotaping skylines across the region.

And Tropical Storm Bonnie from space. With another storm looming in the distance, one state could be in for a double whammy, on this AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING, with Bill Hemmer and Soledad O'Brien.

Good morning, everyone. Wednesday here in New York City. Heidi Collins with me today again.

Good morning, how are you?

HEIDI COLLINS, CNN ANCHOR: Good.

HEMMER: Soledad's at home resting, and informs us yet again that she is still very bored, but she is waiting, and doing it patient patiently, too, so now.

COLLINS: Is she coloring now?

HEMMER: She might be. Maybe we'll punch in a call to Soledad a bit later this morning.

There is a big lead in the Scott Peterson case. The prosecution's star witness, Amber Frey, starting her testimony yesterday. The first day appeared to damaging to Peterson. There is more to come, possibly a lot more, too. We'll talk to her attorney, Gloria Allred, in a moment here.

COLLINS: Also this hour, a huge development in the Kobe Bryant case. Bryant's accuser filed a civil lawsuit against the NBA star. That may have implications for the upcoming criminal trial still ongoing. We will talk with Jeffrey Toobin about that.

HEMMER: The story that broke on our watch yesterday, the president's pick to take over the CIA is Florida congressman Porter Goss. Confirmation hearing may begin next week, and today we'll to a number of lawmakers, a couple senators, former heads of the CIA, also Chuck Hagel is our guest in a matter of moments here.

Jack is off, but Toure, and the Toure experience.

COLLINS: Oh, yes. Familiar face here, that's for sure.

All right, we want to get to the news, though, right away, Amber Frey resumes her testimony today. At Scott Peterson's double murder trial, the state's star witness took the stand and center stage yesterday. Peterson's former mistress telling the jury how their relationship unfolded.

We begin our coverage with CNN's Rusty Dornin.

(BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): She was nervous, but Amber Frey kept her composure in her first few hours on the stand. She describes her first date with Scott Peterson in detail. How they met at this bar in Fresno, and were intimate that night.

At times, the testimony scenes from a romance novel, as Frey painted Peterson as a man who was charming, who gave her champagne and talked of love and long term, but from the first meeting, Peterson lied to Frey about his life. He told her he wasn't married. He lied about where he lived, and where he's traveled. The defense has already admitted that Peterson was a lying and cheating husband, but says it was only four dates, not much of a relationship.

Peterson's sister, Susan Caudillo, says Amber's testimony is nothing but a sideshow.

SUSAN CAUDILLO, SCOTT PETERSON'S SISTER: I mean, we all know he an affair, that's not the issue here, you know. The issue is about Laci, and I don't think the two are connected whatsoever.

DORNIN: Frey says two weeks before Peterson's wife was reported missing, Peterson came to her house and cried, told her he had lost his wife. Five days later, they went to a Christmas party together, and Frey says Peterson told her he was going too Europe until the end of January. That statement, says one legal observer, is something powerful for prosecutors.

MICHAEL CARDOZA, LEGAL ANALYST: Certainly the district attorneys are going to use that to show that he planned this homicide. Why would he tell Amber he's not going to be around in January unless he was planning something?

DORNIN: Frey says she learned of Peterson's wife disappearance on December 29th from a friend. She called police that night. The next day they came to her house and began recording their phone conversations.

Rusty Dornin, CNN, Redwood City, California.

(END VIDEOTAPE)

COLLINS: Amber Frey's expected to be on the witness stand for at least a week.

Gloria Allred is Amber Frey's attorney. She's joining us this morning, from Redwood City, California, with the Redwood City, California, with the very latest on what happened yesterday and what's to come.

Gloria, thanks for being with us.

I want to begin with this...

GLORIA ALLRED, AMBER FREY'S ATTY.: Thank you.

COLLINS: I want to begin with this, Amber Frey says, as we heard yesterday, as we heard yesterday in some of those recorded conversations, that Scott Peterson called her while he says was in Paris for New Year's Eve, said he was with a friend there -- I believe the names were Francois and Pascal. That night, though, he went to a candlelight vigil for his missing wife, Laci. Obviously, this makes him appear to be, what we've heard before, the words of a cad, and someone who's not telling the truth.

But did Amber Frey actually say anything that would implicate him as a murderer?

ALLRED: Well, absolutely, her testimony was very strong evidence for the prosecution in support of their theory that she was a motive for murder. He, for example, said that he lost his wife. These would be the first holidays without her, and that's before Laci ever went missing. Now, was that just a coincidence, or was that premeditation for the murder of Laci?

Also, Amber asked him as he, you know, sobbing and stomach is churning and he's telling her about how painful it is that he lost his wife, she asked him, are you ready for a relationship with me? And he said, absolutely. He assured her they would have future together, and it was just -- as just was pointed out in your setup piece for this, absolutely he talked about not being able to see her until the end of January, but then, in addition, she testified that he said that then he would have more time for her. Now, was that because Laci would no longer be there?

And what kind of husband calls from the vigil that is being set up for his missing, pregnant wife, and is on the phone with his woman friend, Amber, and has this ebullient, man about town, bon vi vont (ph) conversation with her, lighthearted, on New Year's Eve, where he's saying to her, I miss you, and you hi, sweetheart. And I'm at the Eiffel Tower, and I'm in Paris. Now does that sound like a grieving husband who's missing his pregnant wife? I don't think so. And I think it was totally inappropriate, and I think the jury could find from that, that perhaps he wasn't a grieving husband at all.

COLLINS: Gloria, obviously, were you in the courtroom as her attorney, but how do you think Amber Frey did on the stand? Was she nervous?

ALLRED: She was a little bit nervous. That would be natural in such a high-pressure situation. She did very, very well. She was very specific, Heidi, in her recollection of events. She gave great detail. And, of course, she was so important, because she did agree to assist law enforcement by tape-recording those telephone calls with Scott Peterson after Laci disappeared. So some of that was played yesterday. We're going to hear probably hear more calls played today. So we will hear Scott Peterson's own voice on those recorded telephone calls, and we will hear what he has has to say about Amber, and the jury will be able to judge whether or not he was planning a future with Amber. And, if so, then I think they can find that he had a motive for murder.

COLLINS: Let me ask you quickly about something that one of our correspondents is actually reported Ted Rowlands out there covering this for us, that you may try to limit what the defense can ask about Amber Frey's sexual history. Is that, indeed, your plan?

ALLRED: Well, Heidi, I'm hopeful that the prosecution will seek to limit the questioning that the defense can do on cross-examination with Amber, if it would unduly interfere with her privacy rights, which are protected by the California constitution. I think what the defense should have to do is if they want to go into prior sexual history with other than the -- or subsequent sexual history, with other than the defendant, then they should go into chambers and make an offer of proof to the judge to show that what they want to inquire about is directly relevant to the defense. And if it's not directly relevant, then they should not be able to ask her questions that are oppressive, that would be meant solely to harass, that would unduly invade her privacy. They should be prohibited from that kind of questioning, because just because Scott Peterson is on trial for murder doesn't mean that she should have to sacrifice her privacy rights.

COLLINS: Gloria Allred, Amber Frey's attorney in the Scott Peterson case. Thanks so much for your time this morning, Gloria,

ALLRED: Thank you, Heidi.

HEMMER: About eight minutes past the hour now.

A Pakistani man is being held on federal immigration violations in Charlotte, North Carolina. He was arrested last month while videotaping skyscrapers in the southeast among a number of other things.

Homeland security correspondent Jeanne Meserve is on that story for us this morning.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN CORRESPONDENT (voice-over): Does this man have terrorist ties, or not? Right now, investigators simply do not know, but they are taking a very close look at Kamran Shaikh, also known as Kamran Akhtar.

The Pakistani was arrested in Charlotte, North Carolina on July 20. OFFICER ANTHONY MAGLIONE, CHARLOTTE-MECKLENBURG POLICE: Observed a gentleman taking videos of the skyline. Once I slowed down to take a closer look at him, he started acting a little irrational, turned away from me, tried to become evasive. I stopped my vehicle; he started to walk away.

MESERVE: Maglione says Shaikh made inconsistent statements about what he was doing.

According to an affidavit unsealed Tuesday, Shaikh was videotaping the headquarters of the Bank of America and Wachovia Bank in Charlotte. And he had other tapes featuring downtown Atlanta, Austin, Houston, Dallas, and New Orleans public transportation systems in some of those cities, and what appeared to be the Mansfield Dam in Austin.

The police chief in Dallas said the tape of his city appeared fairly innocuous.

CHIEF DAVID KUNKLE, DALLAS POLICE: It was really just scanning various buildings and facilities. And it didn't appear to be directed looking in any vulnerabilities of any particular buildings or access points.

MESERVE: Shaikh, who lives in Elmhurst, New York is being held on immigration charges while the investigation into whether he has terrorist connections continues.

(on camera): Law enforcement sources there is other sources say there is other information beyond the videotape which raises their suspicions, but Shaikh's name has not shown up in any searches of terrorism-related databases.

Jeanne Meserve, CNN, Washington.

(END VIDEOTAPE)

HEMMER: Now a follow up from the story from yesterday in Las Vegas. Police defending their decision not to alert the public after being warned about videotapes of casinos found in a Detroit terror cell. Now last night, FBI and Las Vegas police confirmed that they learned of two videotapes back in the fall of 2002, and they decided it was not necessary to alert the public. Both the feds and the Vegas police gave varying reasons why they did not issue a public warning. Federal prosecutors in Detroit alleges Vegas authorities did not warn the public because it might hurt tourism and make casinos liable in the event of an attack in that city.

(WEATHER REPORT)

HEMMER: Twelve minutes past the hour. Also at the CNN Center, Carol Costello with us again, looking at other news this morning.

Carol, good morning there.

CAROL COSTELLO, CNN ANCHOR: Good morning, Bill. Thank you. The U.S. military in Iraq is warning people to stay clear of pockets of heavy fighting in Najaf. Americans and Iraqi security forces have spent the last week exchanging fire with militiamen loyal to radical cleric Muqtada Al Sadr. The Iraqi health ministry says almost 60 people were killed overnight.

Defense Secretary Donald Rumsfeld is in Afghanistan this morning. He's in Kabul, to review preparations for the October presidential elections. He'll also will discuss new plans to combat the drug trade in Afghanistan. Secretary Rumsfeld and Afghan President Hamid Karzai are expected to make a joint statement at 8:30 a.m. Eastern. CNN will bring that to you live.

Congressman Porter Goss, asked to be the next CIA director, has stepped down as chairman of the House Intelligence Committee. The move came shortly after President Bush officially nominated Goss for the CIA post at the White House.

We'll have reaction to the nomination from Republican Senator Chuck Hagel of Nebraska. We'll have this in the next half hour.

Two separate groups are claiming responsibility for the explosive attacks in Turkey. At least two people were killed in Istanbul in a near- simultaneous blast of two city hotels. A previously unknown Kurdish grouped claimed to be behind the attacks. Earlier a group in Europe linked to Al Qaeda apparently posted its claim on an Islamic Web site.

A Russian cargo ship is on its way to the International Space Station. The Progress M-50 blasted off from the Baikonur Cosmodrome in Kazakhstan early this morning. Loaded with equipment and supplies, it's expected to arrive at the space station sometime on Saturday.

Back to you, Bill.

HEMMER: All right, Carol. Thanks for that.

In a moment here, stocks get a big boost from the fed. What did investors hear from Alan Greenspan. We'll get to that in a moment.

COLLINS: Also U.S. forces may be poised for a major offensive in Najaf. Matthew Chance is there with the Marines. He's got a live report coming up.

HEMMER: Also, Kobe Bryant's accuser now taking new action against the NBA star. What is that new action? How does that impact the current case? The latest on that in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: There's a new development in the Kobe Bryant sexual assault case: the accuser taking the NBA star to civil court.

Let's start our coverage now with Gary Tuchman on this story.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN CORRESPONDENT (voice-over): The woman who says Kobe Bryant raped her will be asking the federal court for some of his money. In a civil lawsuit filed at the federal courthouse in Denver, the woman referred to as Jane Doe asks for "damages in an amount which shall be shown to be reasonable and just by the evidence."

Last week, one of the woman's attorneys, John Clune, told CNN that she was thinking of not going forward with the criminal case because of mistakes that had been made by the court. This could be the first step toward that happening.

As of now, though, the criminal trial is still scheduled to begin on August 27, but the case has now entered the world of civil justice, in which the standard of proof is much lower. In the civil lawsuit, harsh allegations about the basketball star that have not been brought up publicly in the criminal case are now being alleged. "Defendant Bryant has a history of attempting to commit similar acts of violent sexual assault on females he has just met and has thereby established a pattern and practice of such unlawful acts." Normally, such an allegation would warrant a response from opposing attorneys, but because of the gag order, Bryant's lawyers have not spoken on the record to reporters since this case began.

Gary Tuchman, CNN, Atlanta.

(END VIDEOTAPE)

HEMMER: Gary, thanks for that.

More now on this new development. Our senior legal analyst Jeffrey Toobin here with us on AMERICAN MORNING.

Good morning to you.

JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: Good morning, sir.

HEMMER: You're read on this development is what?

TOOBIN: You know the criminal case has been hanging by a thread. The thread is now even more afraid as a result of this filing in this case.

HEMMER: What was the tipping point, if that's the case?

TOOBIN: Well, it just seems like this woman and her legal team are basically abandoning the civil justice system and moving into the civil justice system. You know, they -- she now becomes a much more problematic witness for the prosecution, if there is a criminal case, because the question of her motive now comes into play. Is she just in this for the money? That will be a very big issue if she, you know, ultimately testifies in a criminal case. By filing the civil suit, they opened that up.

HEMMER: If these cases continues apparently on the criminal side and the civil side, Kobe Bryant's defense team could here theoretically dive into a lot more areas into her, because the rules of evidence are looser on the civil side.

TOOBIN: That's right, there's no Rape Shield law. The rules of relevance are broader. Now, it's to her advantage, the rules are different in terms of burden or proof. She only has to prove her case to a preponderance of the evidence in a civil case, whereas the prosecutors would have to prove their case beyond a reasonable doubt. So that's a big advantage for her in a civil case. But the criminal case just looks like it is fading in importance to her. Whether it proceeds is very much an open question.

HEMMER: By a thread, I believe, is the word you use, the phrase you use, yes -- Heidi.

Thanks you, Jeff.

COLLINS: Veteran CBS newsman Mike Wallace was arrested outside a restaurant in New York City for disorderly conduct. A spokesman for the Taxi and Limousine Commission say Wallace lunged at a TLC inspector last night after an argument. Two TLC inspectors had noticed that Wallace's car was double parked. Someone else was driving it. Wallace, who is 86, was handcuffed and taken to a police station. He was issued a ticket and released.

Still to come this morning, the battle for Najaf. The U.S. warns civilians to flee, and militants vow to fight to the end. With forces massing, it could be the eve of a decisive battle. We'll have a report here on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Stocks get a big boost from the Federal Reserve, and Christine Romans is in for Andy Serwer. She's "Minding Your Business" this morning.

CHRISTINE ROMANS, CNN CORRESPONDENT: Good morning.

COLLINS: OK, so everybody listened to Alan Greenspan, of course.

ROMANS: They did. And finally a rally in the stock market. The Dow Jones industrial average up 130 points yesterday. We were telling you that the Fed was expected to raise interest rates by 25 basis points -- that's a quarter of a percentage point -- to 1.5 percent for the Fed funds target, this very short-term interest rate that the Fed sets, and indeed it did.

Also, the Fed said that, you know, it sees a pickup ahead in the economy, and Wall Street loved that. Wall Street liked the idea that the economy is strong enough for the Fed to be raising interest rate right now, and so stocks rallied. Pesky problem in the second quarter of the year, the summer and the early spring, about, oh, you know, a jobless recovery, and concerns about demand. Didn't look like the Fed is concerned about it. The Fed decided it was still okay to raise interest rates, and will probably keep raising interest rates later on this year as well.

So if you are a home buyer, getting out of credit card debt, keep in mind, stock market liked this, but higher interest rates are still coming. So you know, plan accordingly.

COLLINS: Plan according, that we will.

All right, Christine Romans, thanks so much for that.

HEMMER: Jack's on vacation. Before he left, he said, I demand one thing, only Andy or Toure work for me while I'm out.

TOURE, "ROLLING STONE" MAGAZINE: He's a good man.

HEMMER: Andy was here Monday, and Tuesday, Toure's here now with the Question of the Day.

TOURE: Excuse me while I stifle my yawn, but apparently the Olympics is starting on Friday. I wouldn't even know if they didn't tell me. Security is on everyone's mind as the Games get started in Greece. Yesterday, at least two people were killed after bombs went off in neighboring Turkey.

Our question of the day is, if money was not an object, would you go to Athens for the Olympics? The correct answer is, no. The Olympics have become completely meaningless. The globalization of American sports means you can see players from other countries all the time. Letting professionals into the Olympic Games has completed doused the myth of the amateur athlete, and splitting the games into summer and winter in separate years, has dampened the impact any Olympiad can have. The Olympics haven't meant a thing since 1984 in L.A. I wouldn't go if you paid me.

E-mail us now with your other answers at am@CNN.com.

HEMMER: Excuse me, while I completely disagree with your argument today.

(CROSSTALK)

TOURE: I mean, who cares, people?

COLLINS: I care.

TOURE: Come on!

HEMMER: A collection of humanity and cultures from all over the seven continents, happens every two years.

TOURE: Doing sports you've never heard of.

COLLINS: All right, we're going to find out what the people out there think, for sure, and we're going to have that coming up in a little bit.

Toure, thanks -- I think.

Still to come, it's your Wednesday edition of "90 Second Pop."

Supermodel Naomi Campbell is known for her quick temper, but the boiling beauty could be in serious hot water over accusations by a housekeeper.

Plus, Latoya Jackson makes one little change, and all of a sudden scores a hit. Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

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Aired August 11, 2004 - 07:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning.
An apparent web of lies revealed to the world. Scott Peterson's ex-mistress takes the stand.

Terror worries in the South. Police want to know what a Pakistani man was doing videotaping skylines across the region.

And Tropical Storm Bonnie from space. With another storm looming in the distance, one state could be in for a double whammy, on this AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING, with Bill Hemmer and Soledad O'Brien.

Good morning, everyone. Wednesday here in New York City. Heidi Collins with me today again.

Good morning, how are you?

HEIDI COLLINS, CNN ANCHOR: Good.

HEMMER: Soledad's at home resting, and informs us yet again that she is still very bored, but she is waiting, and doing it patient patiently, too, so now.

COLLINS: Is she coloring now?

HEMMER: She might be. Maybe we'll punch in a call to Soledad a bit later this morning.

There is a big lead in the Scott Peterson case. The prosecution's star witness, Amber Frey, starting her testimony yesterday. The first day appeared to damaging to Peterson. There is more to come, possibly a lot more, too. We'll talk to her attorney, Gloria Allred, in a moment here.

COLLINS: Also this hour, a huge development in the Kobe Bryant case. Bryant's accuser filed a civil lawsuit against the NBA star. That may have implications for the upcoming criminal trial still ongoing. We will talk with Jeffrey Toobin about that.

HEMMER: The story that broke on our watch yesterday, the president's pick to take over the CIA is Florida congressman Porter Goss. Confirmation hearing may begin next week, and today we'll to a number of lawmakers, a couple senators, former heads of the CIA, also Chuck Hagel is our guest in a matter of moments here.

Jack is off, but Toure, and the Toure experience.

COLLINS: Oh, yes. Familiar face here, that's for sure.

All right, we want to get to the news, though, right away, Amber Frey resumes her testimony today. At Scott Peterson's double murder trial, the state's star witness took the stand and center stage yesterday. Peterson's former mistress telling the jury how their relationship unfolded.

We begin our coverage with CNN's Rusty Dornin.

(BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): She was nervous, but Amber Frey kept her composure in her first few hours on the stand. She describes her first date with Scott Peterson in detail. How they met at this bar in Fresno, and were intimate that night.

At times, the testimony scenes from a romance novel, as Frey painted Peterson as a man who was charming, who gave her champagne and talked of love and long term, but from the first meeting, Peterson lied to Frey about his life. He told her he wasn't married. He lied about where he lived, and where he's traveled. The defense has already admitted that Peterson was a lying and cheating husband, but says it was only four dates, not much of a relationship.

Peterson's sister, Susan Caudillo, says Amber's testimony is nothing but a sideshow.

SUSAN CAUDILLO, SCOTT PETERSON'S SISTER: I mean, we all know he an affair, that's not the issue here, you know. The issue is about Laci, and I don't think the two are connected whatsoever.

DORNIN: Frey says two weeks before Peterson's wife was reported missing, Peterson came to her house and cried, told her he had lost his wife. Five days later, they went to a Christmas party together, and Frey says Peterson told her he was going too Europe until the end of January. That statement, says one legal observer, is something powerful for prosecutors.

MICHAEL CARDOZA, LEGAL ANALYST: Certainly the district attorneys are going to use that to show that he planned this homicide. Why would he tell Amber he's not going to be around in January unless he was planning something?

DORNIN: Frey says she learned of Peterson's wife disappearance on December 29th from a friend. She called police that night. The next day they came to her house and began recording their phone conversations.

Rusty Dornin, CNN, Redwood City, California.

(END VIDEOTAPE)

COLLINS: Amber Frey's expected to be on the witness stand for at least a week.

Gloria Allred is Amber Frey's attorney. She's joining us this morning, from Redwood City, California, with the Redwood City, California, with the very latest on what happened yesterday and what's to come.

Gloria, thanks for being with us.

I want to begin with this...

GLORIA ALLRED, AMBER FREY'S ATTY.: Thank you.

COLLINS: I want to begin with this, Amber Frey says, as we heard yesterday, as we heard yesterday in some of those recorded conversations, that Scott Peterson called her while he says was in Paris for New Year's Eve, said he was with a friend there -- I believe the names were Francois and Pascal. That night, though, he went to a candlelight vigil for his missing wife, Laci. Obviously, this makes him appear to be, what we've heard before, the words of a cad, and someone who's not telling the truth.

But did Amber Frey actually say anything that would implicate him as a murderer?

ALLRED: Well, absolutely, her testimony was very strong evidence for the prosecution in support of their theory that she was a motive for murder. He, for example, said that he lost his wife. These would be the first holidays without her, and that's before Laci ever went missing. Now, was that just a coincidence, or was that premeditation for the murder of Laci?

Also, Amber asked him as he, you know, sobbing and stomach is churning and he's telling her about how painful it is that he lost his wife, she asked him, are you ready for a relationship with me? And he said, absolutely. He assured her they would have future together, and it was just -- as just was pointed out in your setup piece for this, absolutely he talked about not being able to see her until the end of January, but then, in addition, she testified that he said that then he would have more time for her. Now, was that because Laci would no longer be there?

And what kind of husband calls from the vigil that is being set up for his missing, pregnant wife, and is on the phone with his woman friend, Amber, and has this ebullient, man about town, bon vi vont (ph) conversation with her, lighthearted, on New Year's Eve, where he's saying to her, I miss you, and you hi, sweetheart. And I'm at the Eiffel Tower, and I'm in Paris. Now does that sound like a grieving husband who's missing his pregnant wife? I don't think so. And I think it was totally inappropriate, and I think the jury could find from that, that perhaps he wasn't a grieving husband at all.

COLLINS: Gloria, obviously, were you in the courtroom as her attorney, but how do you think Amber Frey did on the stand? Was she nervous?

ALLRED: She was a little bit nervous. That would be natural in such a high-pressure situation. She did very, very well. She was very specific, Heidi, in her recollection of events. She gave great detail. And, of course, she was so important, because she did agree to assist law enforcement by tape-recording those telephone calls with Scott Peterson after Laci disappeared. So some of that was played yesterday. We're going to hear probably hear more calls played today. So we will hear Scott Peterson's own voice on those recorded telephone calls, and we will hear what he has has to say about Amber, and the jury will be able to judge whether or not he was planning a future with Amber. And, if so, then I think they can find that he had a motive for murder.

COLLINS: Let me ask you quickly about something that one of our correspondents is actually reported Ted Rowlands out there covering this for us, that you may try to limit what the defense can ask about Amber Frey's sexual history. Is that, indeed, your plan?

ALLRED: Well, Heidi, I'm hopeful that the prosecution will seek to limit the questioning that the defense can do on cross-examination with Amber, if it would unduly interfere with her privacy rights, which are protected by the California constitution. I think what the defense should have to do is if they want to go into prior sexual history with other than the -- or subsequent sexual history, with other than the defendant, then they should go into chambers and make an offer of proof to the judge to show that what they want to inquire about is directly relevant to the defense. And if it's not directly relevant, then they should not be able to ask her questions that are oppressive, that would be meant solely to harass, that would unduly invade her privacy. They should be prohibited from that kind of questioning, because just because Scott Peterson is on trial for murder doesn't mean that she should have to sacrifice her privacy rights.

COLLINS: Gloria Allred, Amber Frey's attorney in the Scott Peterson case. Thanks so much for your time this morning, Gloria,

ALLRED: Thank you, Heidi.

HEMMER: About eight minutes past the hour now.

A Pakistani man is being held on federal immigration violations in Charlotte, North Carolina. He was arrested last month while videotaping skyscrapers in the southeast among a number of other things.

Homeland security correspondent Jeanne Meserve is on that story for us this morning.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN CORRESPONDENT (voice-over): Does this man have terrorist ties, or not? Right now, investigators simply do not know, but they are taking a very close look at Kamran Shaikh, also known as Kamran Akhtar.

The Pakistani was arrested in Charlotte, North Carolina on July 20. OFFICER ANTHONY MAGLIONE, CHARLOTTE-MECKLENBURG POLICE: Observed a gentleman taking videos of the skyline. Once I slowed down to take a closer look at him, he started acting a little irrational, turned away from me, tried to become evasive. I stopped my vehicle; he started to walk away.

MESERVE: Maglione says Shaikh made inconsistent statements about what he was doing.

According to an affidavit unsealed Tuesday, Shaikh was videotaping the headquarters of the Bank of America and Wachovia Bank in Charlotte. And he had other tapes featuring downtown Atlanta, Austin, Houston, Dallas, and New Orleans public transportation systems in some of those cities, and what appeared to be the Mansfield Dam in Austin.

The police chief in Dallas said the tape of his city appeared fairly innocuous.

CHIEF DAVID KUNKLE, DALLAS POLICE: It was really just scanning various buildings and facilities. And it didn't appear to be directed looking in any vulnerabilities of any particular buildings or access points.

MESERVE: Shaikh, who lives in Elmhurst, New York is being held on immigration charges while the investigation into whether he has terrorist connections continues.

(on camera): Law enforcement sources there is other sources say there is other information beyond the videotape which raises their suspicions, but Shaikh's name has not shown up in any searches of terrorism-related databases.

Jeanne Meserve, CNN, Washington.

(END VIDEOTAPE)

HEMMER: Now a follow up from the story from yesterday in Las Vegas. Police defending their decision not to alert the public after being warned about videotapes of casinos found in a Detroit terror cell. Now last night, FBI and Las Vegas police confirmed that they learned of two videotapes back in the fall of 2002, and they decided it was not necessary to alert the public. Both the feds and the Vegas police gave varying reasons why they did not issue a public warning. Federal prosecutors in Detroit alleges Vegas authorities did not warn the public because it might hurt tourism and make casinos liable in the event of an attack in that city.

(WEATHER REPORT)

HEMMER: Twelve minutes past the hour. Also at the CNN Center, Carol Costello with us again, looking at other news this morning.

Carol, good morning there.

CAROL COSTELLO, CNN ANCHOR: Good morning, Bill. Thank you. The U.S. military in Iraq is warning people to stay clear of pockets of heavy fighting in Najaf. Americans and Iraqi security forces have spent the last week exchanging fire with militiamen loyal to radical cleric Muqtada Al Sadr. The Iraqi health ministry says almost 60 people were killed overnight.

Defense Secretary Donald Rumsfeld is in Afghanistan this morning. He's in Kabul, to review preparations for the October presidential elections. He'll also will discuss new plans to combat the drug trade in Afghanistan. Secretary Rumsfeld and Afghan President Hamid Karzai are expected to make a joint statement at 8:30 a.m. Eastern. CNN will bring that to you live.

Congressman Porter Goss, asked to be the next CIA director, has stepped down as chairman of the House Intelligence Committee. The move came shortly after President Bush officially nominated Goss for the CIA post at the White House.

We'll have reaction to the nomination from Republican Senator Chuck Hagel of Nebraska. We'll have this in the next half hour.

Two separate groups are claiming responsibility for the explosive attacks in Turkey. At least two people were killed in Istanbul in a near- simultaneous blast of two city hotels. A previously unknown Kurdish grouped claimed to be behind the attacks. Earlier a group in Europe linked to Al Qaeda apparently posted its claim on an Islamic Web site.

A Russian cargo ship is on its way to the International Space Station. The Progress M-50 blasted off from the Baikonur Cosmodrome in Kazakhstan early this morning. Loaded with equipment and supplies, it's expected to arrive at the space station sometime on Saturday.

Back to you, Bill.

HEMMER: All right, Carol. Thanks for that.

In a moment here, stocks get a big boost from the fed. What did investors hear from Alan Greenspan. We'll get to that in a moment.

COLLINS: Also U.S. forces may be poised for a major offensive in Najaf. Matthew Chance is there with the Marines. He's got a live report coming up.

HEMMER: Also, Kobe Bryant's accuser now taking new action against the NBA star. What is that new action? How does that impact the current case? The latest on that in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: There's a new development in the Kobe Bryant sexual assault case: the accuser taking the NBA star to civil court.

Let's start our coverage now with Gary Tuchman on this story.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN CORRESPONDENT (voice-over): The woman who says Kobe Bryant raped her will be asking the federal court for some of his money. In a civil lawsuit filed at the federal courthouse in Denver, the woman referred to as Jane Doe asks for "damages in an amount which shall be shown to be reasonable and just by the evidence."

Last week, one of the woman's attorneys, John Clune, told CNN that she was thinking of not going forward with the criminal case because of mistakes that had been made by the court. This could be the first step toward that happening.

As of now, though, the criminal trial is still scheduled to begin on August 27, but the case has now entered the world of civil justice, in which the standard of proof is much lower. In the civil lawsuit, harsh allegations about the basketball star that have not been brought up publicly in the criminal case are now being alleged. "Defendant Bryant has a history of attempting to commit similar acts of violent sexual assault on females he has just met and has thereby established a pattern and practice of such unlawful acts." Normally, such an allegation would warrant a response from opposing attorneys, but because of the gag order, Bryant's lawyers have not spoken on the record to reporters since this case began.

Gary Tuchman, CNN, Atlanta.

(END VIDEOTAPE)

HEMMER: Gary, thanks for that.

More now on this new development. Our senior legal analyst Jeffrey Toobin here with us on AMERICAN MORNING.

Good morning to you.

JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: Good morning, sir.

HEMMER: You're read on this development is what?

TOOBIN: You know the criminal case has been hanging by a thread. The thread is now even more afraid as a result of this filing in this case.

HEMMER: What was the tipping point, if that's the case?

TOOBIN: Well, it just seems like this woman and her legal team are basically abandoning the civil justice system and moving into the civil justice system. You know, they -- she now becomes a much more problematic witness for the prosecution, if there is a criminal case, because the question of her motive now comes into play. Is she just in this for the money? That will be a very big issue if she, you know, ultimately testifies in a criminal case. By filing the civil suit, they opened that up.

HEMMER: If these cases continues apparently on the criminal side and the civil side, Kobe Bryant's defense team could here theoretically dive into a lot more areas into her, because the rules of evidence are looser on the civil side.

TOOBIN: That's right, there's no Rape Shield law. The rules of relevance are broader. Now, it's to her advantage, the rules are different in terms of burden or proof. She only has to prove her case to a preponderance of the evidence in a civil case, whereas the prosecutors would have to prove their case beyond a reasonable doubt. So that's a big advantage for her in a civil case. But the criminal case just looks like it is fading in importance to her. Whether it proceeds is very much an open question.

HEMMER: By a thread, I believe, is the word you use, the phrase you use, yes -- Heidi.

Thanks you, Jeff.

COLLINS: Veteran CBS newsman Mike Wallace was arrested outside a restaurant in New York City for disorderly conduct. A spokesman for the Taxi and Limousine Commission say Wallace lunged at a TLC inspector last night after an argument. Two TLC inspectors had noticed that Wallace's car was double parked. Someone else was driving it. Wallace, who is 86, was handcuffed and taken to a police station. He was issued a ticket and released.

Still to come this morning, the battle for Najaf. The U.S. warns civilians to flee, and militants vow to fight to the end. With forces massing, it could be the eve of a decisive battle. We'll have a report here on AMERICAN MORNING.

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COLLINS: Stocks get a big boost from the Federal Reserve, and Christine Romans is in for Andy Serwer. She's "Minding Your Business" this morning.

CHRISTINE ROMANS, CNN CORRESPONDENT: Good morning.

COLLINS: OK, so everybody listened to Alan Greenspan, of course.

ROMANS: They did. And finally a rally in the stock market. The Dow Jones industrial average up 130 points yesterday. We were telling you that the Fed was expected to raise interest rates by 25 basis points -- that's a quarter of a percentage point -- to 1.5 percent for the Fed funds target, this very short-term interest rate that the Fed sets, and indeed it did.

Also, the Fed said that, you know, it sees a pickup ahead in the economy, and Wall Street loved that. Wall Street liked the idea that the economy is strong enough for the Fed to be raising interest rate right now, and so stocks rallied. Pesky problem in the second quarter of the year, the summer and the early spring, about, oh, you know, a jobless recovery, and concerns about demand. Didn't look like the Fed is concerned about it. The Fed decided it was still okay to raise interest rates, and will probably keep raising interest rates later on this year as well.

So if you are a home buyer, getting out of credit card debt, keep in mind, stock market liked this, but higher interest rates are still coming. So you know, plan accordingly.

COLLINS: Plan according, that we will.

All right, Christine Romans, thanks so much for that.

HEMMER: Jack's on vacation. Before he left, he said, I demand one thing, only Andy or Toure work for me while I'm out.

TOURE, "ROLLING STONE" MAGAZINE: He's a good man.

HEMMER: Andy was here Monday, and Tuesday, Toure's here now with the Question of the Day.

TOURE: Excuse me while I stifle my yawn, but apparently the Olympics is starting on Friday. I wouldn't even know if they didn't tell me. Security is on everyone's mind as the Games get started in Greece. Yesterday, at least two people were killed after bombs went off in neighboring Turkey.

Our question of the day is, if money was not an object, would you go to Athens for the Olympics? The correct answer is, no. The Olympics have become completely meaningless. The globalization of American sports means you can see players from other countries all the time. Letting professionals into the Olympic Games has completed doused the myth of the amateur athlete, and splitting the games into summer and winter in separate years, has dampened the impact any Olympiad can have. The Olympics haven't meant a thing since 1984 in L.A. I wouldn't go if you paid me.

E-mail us now with your other answers at am@CNN.com.

HEMMER: Excuse me, while I completely disagree with your argument today.

(CROSSTALK)

TOURE: I mean, who cares, people?

COLLINS: I care.

TOURE: Come on!

HEMMER: A collection of humanity and cultures from all over the seven continents, happens every two years.

TOURE: Doing sports you've never heard of.

COLLINS: All right, we're going to find out what the people out there think, for sure, and we're going to have that coming up in a little bit.

Toure, thanks -- I think.

Still to come, it's your Wednesday edition of "90 Second Pop."

Supermodel Naomi Campbell is known for her quick temper, but the boiling beauty could be in serious hot water over accusations by a housekeeper.

Plus, Latoya Jackson makes one little change, and all of a sudden scores a hit. Stay with us on AMERICAN MORNING.

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