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Coast Guard Rescues Crew After Boat Run Aground; White House Vetting GOP Governor for Supreme Court; Will Holding Out on SCOTUS Help or Hurt GOP?; Republicans Square Off in CNN Debate Tonight; Is A Psychic Behind the Biggest Con In History? Aired 7:30-8a ET

Aired February 25, 2016 - 07:30   ET

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

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[07:31:10] ALISYN CAMEROTA, CNN ANCHOR: All right, we want to update you on our breaking new this hour. You're looking at the beach. This is Rockaway Beach in New York -- in Queens -- and you can see that there is a fishing boat there. A 74-foot fishing boat named The Carolina Queen, that ran aground.

There were some reports that it had been taking on water. A distress call went out at 2:00 a.m. local time to the Coast Guard and this fishing boat had five to seven crew members on board that ended up having to be rescued by the Coast Guard. We've watched all of that unfold. This boat ran aground in shallow water there but you can see the waves all around it. They are very big today -- 10 to 12 feet.

Now, interestingly, the Coast Guard vessel that responded to the scene capsized, actually, in these rough waves in the water. So then, the Coast Guard crew members had to rescue themselves. They had to swim ashore, then they had to get a chopper to come back out and rescue the fishermen who were on board this 74-foot vessel.

Chris Cuomo, I know that you know these waters well. You fish off of Rockaway Beach. What do you see here?

CHRIS CUOMO, CNN ANCHOR: Yes, I know them very well and unfortunately this is a real risk there for these commercial fishermen. That's what you're looking at there. That's a working boat. Those two rods that are coming out the side of it -- those are stabilizing mechanisms that they use to keep that boat level in water.

Now this boat, in all likelihood, was not fishing here in the ocean waters off the south part of the island there. What happens at this time of year -- you have these nor'easters coming Alisyn, right? And we've had superstorm Sandy. That really changed the sand mix and the different water levels there, and then the nor'easters add to it.

So what you're seeing here is wave action that's coming over sandbars. And what the fishing boats like to do is to find the easiest route closest to shore to get into the inlet. You know, they're thinking about gas, they're thinking about rideability and safety. And what can easily happen, especially when you're running at night, is that you get the bar wrong. You get where you are wrong and the depth changes very quickly.

These boats are very heavy and they can sustain hull damage pretty easily even though they are made of metal, obviously. So, they start taking on water and then the tide is just going to pull you into shallow water. You think, well, look, what's that boat in -- four or five feet of water? It's the wave action, and that's where the second part of this story comes in.

The Coast Guard, as you pointed out very correctly this morning -- they respond so quickly to these situations, so they jump in the skiff -- a 25-foot boat -- and they come flying out, but those waves can get to be 8-10 feet coming over those sandbars. So that boat, loaded up with equipment and crew, couldn't handle it. Got tipped over. The Coast Guard guys had to swim in. They were able to do that. They're lucky that the ambient temperature there now has them over the 50's. It wasn't overnight.

But, you know, this could have turned very badly very quickly. The good news, as you reported earlier, is that there were no serious injuries. And thank God, right now the biggest concern for those commercial fishermen is their boat. Remember, this isn't about pleasure. This is their life -- that boat. This is how they make their living, so they want to get that boat salvaged before it takes on damage they can't repair.

CAMEROTA: Yes, we're happy to report that everybody was rescued. Everybody was rescued off of the boat and the Coast Guard, as well, so you're right. Luckily no injuries or any loss of life.

CUOMO: And as you pointed out, it shows how the Coast Guard really comes to the worst situations and they get there the fastest, and they save lives. So, we'll follow that throughout the morning.

And now, we're going to take turn to why I'm in Houston in the first place -- is that this is going to be the place where the Republicans really have their showdown before Super Tuesday. But, there are big issues that you're going to hear taken on tonight like the Supreme Court.

The latest twist in that is that we're hearing that the White House is vetting the Nevada governor. He's a Republican. His name is Brian Sandoval, and he's a former federal judge. He was considered a centrist, and when you look at his opinions he did seem to be middle- of-the-road in applying the constitution to current law in terms of his jurisprudential outlook, which is what everybody's studying politically right now, but he didn't take on a lot of the bigger issues.

So the question is, is this political strategy at play to break the congressional logjam? Let's get into it. We have CNN political commentator and host of "THE BEN FERGUSON SHOW", Ben Ferguson himself. And CNN political commentator and former South Carolina state rep Bakari Sellers.

So you got the case to hold a hearing and you got the case not to. Both sides firmly represented in politics, current and past. Bakari, you make the case of why what the Republicans are doing right now is wrong, in your opinion.

BAKARI SELLERS, CNN POLITICAL COMMENTATOR: Well, it's just pure obstructionism. I mean, that's what we're seeing right now. We hadn't had a delay such as this in the entire history of our country. Most justices are nominated and there's a vote on these justices within a 100 or so days. This is unheard of.

CUOMO: You're a lawyer. You know. You had Schumer saying it, then- Sen. Barack Obama going so far as delaying it. --

SELLERS: Well, saying delay, delay, delay.

CUOMO: Biden saying --

SELLERS: With all due respect, Joe Biden actually gave that speech from the floor and that's what my colleagues like to say. But, Joe Biden actually gave that speech from the floor in June of that year --

CUOMO: Right.

SELLERS: -- where you had very few months to left to go in session. And not only that, but we also clipped that speech because he goes on to say that he would support a consensus candidate, like Kennedy, who ended up being a justice.

BEN FERGUSON, CNN POLITICAL COMMENTATOR: That's your out, though. Your out is to say that you would support a consensus candidate so that you don't look like you're being a full-on obstructionist. It's the same reason why I think that the White House is floating this name. It's a brilliant move because they're hoping that someone will take the bait and say well, that's someone I could support.Well, then when they give the real nominee -- I don't think they have any intentions.

CUOMO: If it were Sandoval, though, do you think it looks bad to not even hold a hearing?

FERGUSON: I don't, because I think in an election year when you're coming out, you don't want to be a Republican senator, or a congressman, or someone like that supported putting Barack Obama's -- who has been very liberal on there. But, I'll get back to the game of this. I don't think it's ever going to be this guy. I really don't. I don't think it's going to be the governor at all.

I think they put a name out there that would put pressure, and maybe and they could get some Republicans to take that going, well, that's someone we would look at. And if you're a Republican right now in leadership, I'd send an e-mail out saying do not comment -- everyone.

CUOMO: Why not hold the hearing and then vote the person down?

SELLERS: That's my point. That's where you get to -- I mean, do your job. The president has every right to nominate the justice he deems fit.

FERGUSON: Absolutely, and the Senate has every right to say they're not going to do it right now.

SELLERS: There are some senators, like Rob Portman, who this would actually bode very well for, at least voting for. So, there are some swing state senators.

CUOMO: You don't want to get caught being too obstructionist.

FERGUSON: If I'm running for office it's going to be a very simple argument. I'm going to say I am fighting and vote for me to put the next person on the Supreme Court so the court does not go liberal, five to four. That is something that your supporters, if you're running as a Republican, are going to -- it's going to matter to them.

It also is an election year issue. If I know that my vote is not just for that senator but it's also for the next Supreme Court nominee and for the presidency, this is a campaign issue that your side is going to want. Look, Hillary Clinton and Bernie Sanders are going to use it to their advantage, as well. They're going to say these guys are horrible. They're never going to put anybody on the court. This has never been done before. It has been done before. People have paused quite a few times in history. If you'resaying no to something, you're saying no to it. Democrats are on the record as doing this. They did it to a lot of lower level judges that were looked at in 2006 when they got control of the House. That was a big issue then with a lot of appointees that Bush wanted.

CUOMO: When both sides do it --

FERGUSON: They do it.

CUOMO: But the question is, is this worse than what is --

SELLERS: And it is because --

FERGUSON: I don't think so in an election year when the Supreme Court is going to matter to the voters.

CUOMO: All right, so that's your case why it isn't. Why do you think it is?

SELLERS: I mean, it is because this president has had more of his judicial nominations blocked than any president in previous history. I mean, it's a part of a larger narrative. It's a part of Mitch McConnell coming out and saying that his goal was to make sure this president failed. I mean, this is --

FERGUSON: Policy is what you're talking about, though.

SELLERS: But still, I mean, it's pure unadulterated obstructionism. That is what we're seeing.

FERGUSON: Nancy Pelosi did it.

SELLERS: But to get to the point of Gov. Sandoval, this actually -- it cuts both ways because for Democrats this is probably one of the more uninspiring picks that the president could make. FERGUSON: He won't make it.

SELLERS: And that's -- I don't think he'll make it.

CUOMO: Vetting is not --

SELLERS: Vetting is so far away from --

FERGUSON: It's a political move that someone said let's throw a name out there that just maybe we can get some Republicans on the record as saying that would be acceptable, and then we give the name that we really want. Then we're going to make them look and they'll say, well hold on. Why was this OK a week ago and now it's not? I would literally -- if I was in the leadership -- send an e-mail out saying if you vote (ph) an elected official, do not comment on hypotheticals.

SELLERS: And that's a good strategy.

FERGUSON. If you put a name out there, then we'll comment. But until you give us the actual nominee -- when they're standing there at the White House and the president says this guy or this lady is my pick, that's when you respond to it. A hypothetical? I wouldn't waste a moment on it.

[07:40:32] SELLERS: I mean, I think that the president will get to the point -- and I'm very hopeful that he will nominate someone like Ketanji Brown Jackson, who is now on the federal district court in D.C., who was actually approved by the United States Senate not once, but twice.

She's a 45-year-old African-American woman who, by the way, is Paul Ryan's cousin. So, I mean, I think that we will get to the point and that will energize the base because this, for a long period of time in the Supreme Court, has been an issue that drives a Republican base. But now, I think this is an issue that can drive the turnout machine in the base for the Democratic Party.

FERGUSON: And the Republicans.

SELLERS: And I think Bernie Sanders and Hillary Clinton are looking forward to having this discussion.

CUOMO: Look, one of the reasons obstructionism continues in Washington is it works for both sides on some level --

SELLERS: Well, touche.

CUOMO: -- until it goes too far, and then it works against both, so we'll see what happens. But, Bakari, thank you very much. Ben, as always, good to have you here.

So, what's going to happen tonight? Who knows? But we do know this. It's going to matter. Marco Rubio, for instance -- he's looking to get on that debate stage and show himself at his best against the man that he has most to worry about, Donald Trump. Will he take him on head-to-head? What will that mean? Rubio's senior advisor joins us live next.

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SEN. MARCO RUBIO (R-FL), PRESIDENTIAL CANDIDATE: I think the biggest change in this campaign is going to be when the people not named Donald Trump -- the choices begin to narrow and we start to give the Republican voters a clearer choice of who they want to get behind.

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CAMEROTA: That was Sen. Marco Rubio making the case that a smaller Republican field will help his campaign. But is it too late to beat Donald Trump? Joining us now is senior advisor to Marco Rubio, Jason Rowe. Good morning, Jason.

JASON ROWE, SENIOR ADVISOR TO SEN. MARCO RUBIO: Good morning.

[07:46:28] CAMEROTA: Great to have you with us. How is Sen. Rubio preparing for tonight?

ROWE: Well, obviously, tonight is an important debate. We've got Super Tuesday just around the corner and so I think a lot of voters in those dozen or so states are going to be watching tonight to help inform their decision next Tuesday.

CAMEROTA: Obviously, I don't have to remind you of the somewhat awkward performance that Sen. Rubio turned in at one of the debates -- the one in New Hampshire. In case anyone missed it, here's a little clip.

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RUBIO: Let's dispel with this fiction that Barack Obama doesn't know what he's doing. He knows exactly what he's doing. He is trying to change this country. This notion that Barack Obama doesn't know what he's doing is just not true.

GOV. CHRIS CHRISTIE (R-NJ): There it is.

RUBIO: He knows exactly what he's doing.

CHRISTIE: There it is. The memorized 25-second speech.

RUBIO: No, that's the reason why this campaign --

CHRISTIE: There it is, everybody.

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CAMEROTA: So, Jason, was that a candidate who was overly prepped or not prepped enough, and how do you avoid that tonight?

ROWE: Well, you know -- listen, that was 90 seconds out of about 30 hours of debate that he didn't perform as well as he had previously. And I think he's demonstrated since then, and throughout this process, that he's probably the most articulate and inspiring political orator that we have in our party.

The reality is that we tried to enforce the message of the campaign, and clearly, Sen. Rubio has a very specific message about what his agenda is and what the problems are with this Obama administration. And I think that's what he was pointing out in that debate. I think Chris Christie was a little bit disingenuous in trying to exploit the situation for his benefit, and we see how well it worked for him because he was out the race within days.

CAMEROTA: So, I would imagine that when you're a candidate and you have to prep for a debate that you figure out your strategy, and you have to figure out who you're going to train your sites on. So, tonight, will Sen. Rubio be going after Ted Cruz or Donald Trump?

ROWE: Well, there's going to be five people on the stage, but there's really only three candidates that have any real viability moving forward. And amongst those I think we're starting to see that the race is really shaping up to be a two-person race. And so, sure, I think you're going to see drawing more contrast with what Marco Rubio's vision is for the country versus Donald Trump.

Where Donald Trump has been ideologically, even two years ago as compared to today. Where Marco Rubio, frankly, has been a very consistent conservative his entire career. He's got a 98 percent conservative voting record in the U.S. Senate. And so I think as it shapes up into the two-person race there's going to be a responsibility of both campaigns to draw contrast between their visions for the country.

CAMEROTA: So, you say it's a two-person race but something interesting is happening. In the Nevada entrance polls it shows that voters feel that Marco Rubio is the person who is most electable. Let me pull this up for because there are 51 percent of voters who say that he is the candidate who can win. That's over Trump's 33 percent, and over Ted Cruz's 11 percent. But, Jason, why then isn't that translating to an actual win in a state?

ROWE: Well, I think it's starting to translate. I think we've been trending up. Caucuses in Nevada -- this is only the third time that Nevada Republicans have done a caucus. Those are unique processes. They're much different than a primary. We're going to have a number of real primaries coming up on Tuesday.

I think Sen. Cruz has a lot at stake in his home state of Texas. If he can't win in Texas or win at all on Super Tuesday, I think it's going to become very difficult for him to maintain that there's a reason for him to stay in the race. But I do think that everyone recognizes that Marco is the best candidate in November. He's the best candidate to unify our party --to unify the conservativemovement. But probably, just as importantly, to reach out to non-traditional Republican voters and explain to them why the Republican Party provides the most opportunity for them in the future.

CAMEROTA: Mitt Romney, former presidential candidate, is calling upon the GOP candidates -- the current ones -- to release their back taxes. Let me play for you what Mitt Romney has said.

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MITT ROMNEY (R), FORMER PRESIDENTIAL CANDIDATE: Frankly, I'd like to see a number of things from the candidates, not just their positions on issues in some detail. And some candidates are more thorough in laying out what they're going to do than others. But I'd also like to see their back taxes. This will give a real sense whether these people are on the up and up and whether they've been telling us things about themselves that are true or not.

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CAMEROTA: Jason, when will Sen. Rubio release his back taxes?

ROWE: Well, you know, he did release them all when he ran for U.S. Senate in 2010, and I expect in the next week or so we're going to see the taxes from that point forward.

CAMEROTA: Donald Trump has just tweeted out a response to Mitt Romney's request. Here's what he says. "Mitt Romney, who was one of the dumbest and worst candidates in the history of Republican politics, is now pushing me on tax returns. Dope!"

[07:51:44] ROWE: Are you looking for a response?

CAMEROTA: I am.

ROWE: You know, I think this is kind of a pattern that anytime anyone says something that Donald Trump doesn't like, he tends to go after them. I think this maybe demonstrates something different than what our expectations are of how a president would behave, and I think that's something that voters have to take into consideration.

I know that folks on the Republican side and non-Republicans are very frustrated with Washington and they like Donald Trump -- somebody that's willing to break some china. But I also think we have to maintain a certain level of decorum. I mean, this is the leader of the free world. This is someone that we want our children to grow up to emulate. And I think that kind gratuitous attacks, which you see fairly frequently, doesn't really help the process.

CAMEROTA: Jason Rowe, we'll be looking forward to watching the debate tonight. Thanks so much.

ROWE: Thanks a lot.

CAMEROTA: Unraveling one of the biggest scams in history. A "CNNMONEY" investigation you need to hear about to protect you and your loved ones. That's next.

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{07:55:51] CAMEROTA: It's one of the biggest schemes in history with at least 1.4 million victims in the U.S. alone. That's more than 60 times as many as Bernie Madoff's Ponzi scheme. And the person behind this scheme? An elderly French psychic named Maria Duval. A "CNNMONEY" special investigation goes on the hunt for this mysterious clairvoyant.

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UNIDENTIFIED FEMALE: It's a question we've been asking for months.

UNIDENTIFIED FEMALE: Who was Maria Duval?

UNIDENTIFIED FEMALE: Maria Duval.

UNIDENTIFIED FEMALE: Who is Maria Duval?

UNIDENTIFIED FEMALE: What the name Mario Duval means to you?

UNIDENTIFIED FEMALE: To some, a gifted psychic. To others, the face of one of the biggest cons in history.

UNIDENTIFIED FEMALE: She is fake. She is a bottom-feeder.

UNIDENTIFIED MALE: She's very clever.

UNIDENTIFIED FEMALE: The worst criminal.

UNIDENTIFIED MALE: It's a world-renowned psychic.

UNIDENTIFIED FEMALE: (Foreign language spoken).

UNIDENTIFIED MALE: She's just like an actress in a theater, always saying I can predict the future.

UNIDENTIFIED FEMALE: She is a leech that will suck you dry of all of your money.

UNIDENTIFIED FEMALE: This was a woman who lived her life with a very high level of integrity.

UNIDENTIFIED FEMALE: She was certainly ripping people off.

UNIDENTIFIED MALE: She was breaking the law.

UNIDENTIFIED FEMALE: Shame on you, Maria Duval.

UNIDENTIFIED FEMALE: But our fascination didn't start there. It started with a pile of junk mail we received. It was all originally sent to two American women, one suffering from brain cancer, the other with dementia. In the pile, there was a letter from a psychic, Patrick Warren, from a company called Destiny Research Center.

UNIDENTIFIED FEMALE: We did a little digging.It turns out that self- proclaimed psychics frequently target the elderly and financially desperate all over the world, and the biggest name in this massive shadow industry, Maria Duval, although it's unclear if her name and likeness are being exploited by others.

UNIDENTIFIED FEMALE: (Foreign language spoken).

UNIDENTIFIED FEMALE: The scam seemed simple. Send in money and in return she'll use her psychic abilities improve your fortune.

UNIDENTIFIED FEMALE: The letters double-down on people who respond, asking for locks of hair and personal photos. In return, people receive things like crystals that supposedly contain cosmic energy.

UNIDENTIFIED FEMALE: Its reach is massive. In the U.S. and Canada alone, it allegedly raked in over $200 million from nearly 1.5 million people.

UNIDENTIFIED FEMALE: My father was responding to junk mail of hers, sending her money. It was close to $400, if not more.

UNIDENTIFIED FEMALE: My mother was 80-years-old and suffering with onset Alzheimer's. I came across checks that she was writing twice a week and twice day, and all of these checks added up to over $2,400 in the span of a year.

UNIDENTIFIED FEMALE: What was this like for you to see someone take advantage of your mom like this?

UNIDENTIFIED FEMALE: Oh, it was so painful.

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CAMEROTA: Joining us now from CNNMoney Investigations, Melanie Hicken and Blake Ellis. Great to have both you here with us. So, what have you learned in your investigation? Who is this shadowy figure, Maria Duval?

BLAKE ELLIS, SENIOR WRITER, CNNMONEY INVESTIGATIONS: So, that is the craziest part about this entire investigation is even though her name is on letters sent all over the world and she's claimed millions of victims, nobody really knows who this woman is. There's an elderly blonde woman out there that claims to be Maria Duval, but even investigators don't know if she's really behind the scheme or if she even exists. So that's what we've been focusing on trying to get to get to the bottom of. And we really want readers and viewers to follow along and help us solve the mystery.

CAMEROTA: Oh, my gosh. Now, why has this been able to go on so long without authorities cracking down on it?

MELANIE HICKEN, REPORTER, CNNMONEY INVESTIGATIONS: So that was one of the craziest things. This is, we were told, one of the longest- running mail frauds in history, and the big reason is the international scope of it. So it has moved from country to country, starting in Europe, but going -- there are letters in Japanese, there are letters in Russian, there's U.S., Canada, Germany -- all over the world.

ELLIS: And no one has been able to stop it. All of these different countries -- government agencies have tried to crack down on it, and they shut it down in one place and it just pops up in another.

HICKEN: And even in the U.S. they thought they had shut it down in 2007, but letters just kept going out. So there is currently a lawsuit going on by the Department of Justice to try to shut it down entirely. But even they say how do they know these letters just won't start going out from a different mailbox again?

CAMEROTA: Well, it can't be any match for you two and you're dogging the investigation. So, I mean, what are you both going to do? What's next in this? What's the next step?

ELLIS: So, whoever is behind this has done a really good job covering their tracks. So each week we're launching a new chapter where we dig into this web of shadowy characters -- white collar criminals.

HICKEN: Shell companies.

ELLIS: Shell companies -- trying to figure out who's actually behind this. And it's taken us all over the world and if you stay tuned there is an ending that kind of gets to the bottom of a lot of this that you definitely would not expect.

HICKEN: Even we were shocked, and so every Thursday you want to tune in.

CAMEROTA: You have hooked me. Melanie, Blake, thanks so much. Great stuff. Can't wait to see the ending. Thanks for being here. All right. For more on our investigation go to cnnmoney.com/mariaduval. They'll have a new chapter releasing online every Thursday.

We're following a lot of news this morning, including previewing tonight's critical GOP debate, so let's get right to it.

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UNIDENTIFIED MALE: It just demolished everything. A couple of houses that are gone. The church is gone.

UNIDENTIFIED MALE: It was scary. My truck went up in the air. I said, whoa, this is it.