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The Situation Room

New Documents Reveal White House Mistakes With Katrina; Convicted 9/11 Terrorist Plans to Plead Insanity to Skirt Death Penalty; Saddam Trial Stalls Again; Daycare Shooting in Maryland

Aired January 24, 2006 - 19:00   ET

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

WOLF BLITZER, CNN ANCHOR: Standing by, CNN reporters across the United States, and around the world, to bring you the day's top stories.
Happening now, it's 6 p.m. in New Orleans. They couldn't have saved the city, but could federal authorities have saved lives by stepping in before Hurricane Katrina struck. There are new documents that show the government knew a disaster was looming.

It's 7 p.m. in Tampa, he spent more than half his life in jail for robbery and rape, now he's a free man and an innocent man. How many others are innocent and still in jail?

And it's 4 p.m. in Los Angeles, not too long ago Kobe Bryant faced serious sexual assault charges. Now, he's rebounding on the court, but is he making a comeback with his fans and sponsors.

I'm Wolf Blitzer, you're in THE SITUATION ROOM.

(THEME MUSIC)

BLITZER: After Hurricane Katrina hit the Gulf Coast, Bush administration officials said no one could have predicted the disaster on such a vast scale. But now, documents show the administration knew much more than it was letting on.

In New Orleans, some are saying the government let them down. CNN's Susan Roesgen is standing by in New Orleans, but let's go to the White House, first. Our correspondent, Suzanne Malveaux is there with the latest.

Suzanne?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, we are learning more information about what the White House knew in the hours before Katrina hit, including an urgent report from the Department of Homeland Security, essentially forecasting the worst- case scenario.

(BEGIN VIDEOTAPE)

MALVEAUX (voice-over): The Department of Homeland Security says it warned the White House of the dangers of Katrina just hours before it made landfall. In an August 29 e-mail sent to the White House situation room at 1:47 a.m., it warned any storm rated Category 4 or greater would lead to severe flooding and/or levee breaching.

But three days after Katrina hit, President Bush said.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I don't think anybody anticipated the breach of the levees. They did anticipate a serious storm.

MALVEAUX: That comment unleashed a firestorm of criticism. How could that be true in light of FEMA's simulations of various doomsday scenarios, warnings from the National Hurricane Center, and now this newly revealed Homeland security memo.

During one of the visits to the devastated region, Mr. Bush tried to clarify.

BUSH: When that storm came by, a lot of people said we dodged a bullet. When that storm came through at first, people said, whew, there was a sense of relaxation. And that is what I was referring to.

MALVEAUX: The White House now says the president was well aware of Katrina's potential.

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: We knew it was a very dangerous storm.

MALVEAUX: And officials defend the administration's actions leading up to it.

MCCLELLAN: The president issued emergency disaster declarations ahead of the storm hitting. The president went public, and said listen to the warnings from state and local officials. This is a dangerous storm.

CROWD CHANTING: We want help!

MALVEAUX: It was the follow up, aides concede, that presented the biggest problems.

MCCLELLAN: All levels of government dropped the ball to an extent, the federal, state and local. The president accepts responsibility for the federal response efforts.

(END VIDEOTAPE)

MALVEAUX: So what happened to that Homeland Security memo that was sent in the hours before Katrina hit? Well, the administration refuses to say. What they do say, however, Wolf, is that they will bring forth their own analysis of Katrina and how the government handled it when the Homeland Security Adviser Fran Townsend wraps up her review -- Wolf.

BLITZER: Suzanne Malveaux at the White House. Suzanne, thank you very much.

The president is getting heat today from members of both parties for failing to act on that early warn of how much damage a storm like Katrina could do. At the latest Senate hearing on the Katrina response, Senator Joe Lieberman took the criticism a step further. He's a frequent Democratic ally of the president, but now he's accusing the White House of blocking the Senate's investigation into what went wrong.

(BEGIN VIDEO CLIP)

SEN. JOE LIEBERMAN, (D) CONNECTICUT: Problems begin at the White House where there has been a near total lack of cooperation that made it impossible, in my opinion, for us to do the thorough investigation we have the responsibility to do.

(END VIDEO CLIP)

BLITZER: The White House insists it's working closely with Congress to investigate what went wrong in government's response to Hurricane Katrina. Our Gulf Coast Correspondent Susan Roesgen is at the home of one man who says he should have been warned more seriously.

Susan, what's the latest?

SUSAN ROESGEN, CNN GULF COAST CORRESPONDENT: Wolf, that is exactly what he says. I'm in a home in eastern New Orleans that got socked by the hurricane.

When the hurricane came, a wall of water was in here all the way up to the ceiling. For the guy who lived here, the only escape was up these attic stairs, but if he says if he had been warned about the danger, he would never have stayed.

(BEGIN VIDEOTAPE)

ROESGEN: When Leroy Thomas III aimed his video camera out his front window on August 29, there was a lot of wind, but not that much water. But the water kept rising. Although Thomas had heard a warning from the mayor and from the National Weather Service, he says that wasn't enough to persuade him that the threat was real.

LEROY THOMAS, III, KATRINA VICTIM: I've heard that before. I guess I was looking for that one sign that let me really know this was going to be bad, that I didn't get.

MALVEAUX: If the president or someone in Washington had come on television and said, This is it, New Orleans, get out.

THOMAS: I would have left. I would have left. Somebody that high saying get out, somebody from the federal government saying get out. I would have gone.

The water was to my knee, but when the water stopped, the water was here.

ROESGEN: After the hurricane Thomas survived two days on his own without food, water or power. And eventually wound up herded along with thousands of other evacuees to a shelter, exactly the kind of dire scenario the Homeland Security report had predicted. He says he should have been warned.

THOMAS: You knew this information, you knew this was going to happen. You're telling me, I'm a citizen of this country, you don't care about my welfare. I'm expendable.

(END VIDEOTAPE)

ROESGEN: Leroy Thomas says, Wolf, the next time a hurricane comes, he's going to be long gone, warning from the Homeland Security Department or no warning.

He is, as you can see here, gutting this home. He intends to come back and live here, even though he knows there's no guarantee the city will actually rebuild this area. He says about 75 percent of the people on this street also want to come back, but there is no power here. We've supplied our own power for the lights that you see.

This guy, Leroy Thomas, says he loves his home, he loves this area, he's going to rebuild -- although in the new blueprint for the city of New Orleans this are may be turned into one big park.

BLITZER: Was he shooting that dramatic video you just showed us just now?

ROESGEN: He sure did. He took some video and initially to get a list of things he had in his house for insurance purposes, then he stuck that camera out the window until he said the wind was so strong, it felt like rocks hitting his arms. And then he came in and water pushed him along in there and that's when he knew he needed to get up into the attic.

BLITZER: Good for him, I'm glad he survived. Susan, thank you very much. Susan Roesgen reporting for us from New Orleans.

The only person convicted in connection with the 9/11 attacks now has a new strategy to try to avoid the death penalty. His lawyers are hoping to prove that Zacarias Moussaoui is mentally ill. Let's get some specific details. Our Justice Correspondent Kelli Arena has been going over some newly released court documents.

What are you picking up, Kelli?

KELLI ARENA, CNN JUSTICE DEPT. CORRESPONDENT: Well, Wolf, convicted terrorists Zacarias Moussaoui is obviously again in the news.

As you know, Moussaoui pled guilty last April to being a part of a conspiracy to attack the United States, but not part of the September 11th plot. His sentencing trail is expected to begin in less than two weeks with jury selection.

Today we got a good idea how his lawyers will try to get a jury to spare him to get the death sentence. Now in filings unsealed today, his attorneys reveal they plan to call four expert witnesses to testify about Moussaoui's mental health and upbringing. One of those experts will testify Moussaoui suffers from a major thought disorder, she says, most likely schizophrenia. Now Moussaoui mental health, Wolf, has come up before in the and the court has previously ruled that he was competent.

The defense will present witnesses to describe Moussaoui's traumatic family history, how he suffered from racism, and the fact he was a small part of the conspiracy to attack the United States.

Now, the government of course, will obviously contend that because Moussaoui didn't tell authorities what he knew, the September 11 attacks were indeed successful. They'll argue for that, he should be put to death, Wolf.

BLITZER: Kelli Arena, reporting. Kelli, thank you very much -- for sharing that story. Zain Verjee is standing at the CNN Center in Atlanta with a closer look at some other stories making news.

Hi, Zain.

ZAIN VERJEE, CNN ANCHOR: Hi, Wolf.

Two animation giants have drawn up a deal estimated at over $7 billion. Today Disney announced it's buying Pixar, the animated studio lead by the head of Apple Computer, Steve Jobs. Under the deal Jobs will become a Disney board member and Disney will issue just over two shares for each Pixar share.

Disney had previously released all of Pixar's films but their distribution deal set to expire this summer.

Judge Samuel Alito is now one step away from being Justice Alito. Today the Senate Judiciary Committee approved his nomination on a straight party-line vote; The committee's 10 Republicans all voted yes, while all eight Democrats voted no. The full Senate is expected to confirm Alito later this week.

Primatene Mist has long been used asthma suffers, but it could soon be banned from store shelves. Today and FDA advisory panel recommended a ban on Primatene Mist and other non-prescription inhalers, according to the spokesman for Primatene's manufacturer. The asthma inhalers use an aerosol propellant that shoots medicine into the lungs and those aerosol propellants can harm the Earth's protective ozone layer.

He's gone from a disco era icon to a featured fugitive on "America's Most Wanted". Victor Willis is the original policeman from the group the Village People and that group, Wolf, known for hits like "YMCA" and "Macho Man". He was supposed to turn himself in to a authorities in California today, but didn't show up. There's a $200,000 warrant for his arrest. Police say they found cocaine and a gun in his car, and that happened during a traffic stop.

These bus passengers were hoping for a quiet ride. But a violent accident disrupted their calm. Take a look at this. Officials in Miami are investigating what caused a dump truck to just plow into this bus early on Monday, essentially shattering the windshield and shaking up the passengers; 22 people were hurt, some had bruises and broken bones.

Back you to, Wolf, in THE SITUATION ROOM and to the ever witty and charming Jack Cafferty.

BLITZER: Let's go right to Jack Cafferty. And see how witty and charming he can be tonight.

JACK CAFFERTY, CNN ANCHOR: Ah, the witty and charming Jack Cafferty is off and I'm sitting in his place.

As Washington is fumbles around trying to look like it's getting tough on lobbyists in light of Jack Abramoff scandal. Here's something to think about, "The New York Times" reports today many states outpaced Washington when it comes to lobbying reform. According to the Center for Public Integrity, rules for federal lobbyists are weaker than in almost every state.

For example, 37 states require detailed information on lobbyist's expenses. Federal government doesn't require any. How about this? Twenty-four states have independent ethics commissions to investigation lobbying rules and their enforcement. Congress writes and enforces its own code of conduct. Well, they write one, anyway. I don't know how much enforcing they do.

That could be a big part of what the problem is in the nation's capital. The question is, Why can't Washington keep up with the states when it comes to ethics reform? E-mail us your thoughts on that weighty issue, at Caffertyfile@CNN.com. Or you can go to CNN.com/caffertyfile.

The witty and humorous Jack Cafferty hopes to be back tomorrow -- Wolf.

BLITZER: You'll be back later this hour, too, Jack. Thank you very much

CAFFERTY: I will.

BLITZER: Coming up, you're in THE SITUATION ROOM. Police charge a father after his 8-year-old shoots a classmate in a daycare center. We have the story.

Plus, DNA justice, an innocent man spends more than two decades in prison for a crime he didn't do. Find out how the system got it so wrong and how the truth finally set him free. We'll speak with him live.

Also, the remaking of Kobe Bryant. Not that long ago, he was facing rape charges and losing endorsements. Oh, how times have changed. Find out how he's managed to make a major comeback. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK) BLITZER: The trial of Saddam Hussein is back on hold until Sunday, at the earliest. And even when it does resume, some say the entire proceeding is dysfunctional and should be abandoned. CNN's Aneesh Raman is joining us live from Baghdad -- Aneesh.

ANEESH RAMAN, CNN INT'L. CORRESPONDENT: Wolf, good evening.

Another day of legal chaos in the trial of Saddam Hussein; another reminder this is going to be an incredibly long process.

(BEGIN VIDEOTAPE)

RAMAN (voice-over): If you thought the Saddam Hussein trial has been moving slowly with all his lengthy rants, Tuesday set a new standard. There was no Saddam, no rants, there was nothing. Those of us set to watch Tuesday's session sat for four hours outside of the courtroom, when finally this man, the tribunal spokesman, gave a statement off camera saying this session of Saddam's trial was cancelled, that the court would meet again only on Sunday, because witnesses could not appear.

Some he said were out of the country, returning from a Muslim pilgrimage that ended almost two weeks ago. Saddam's defense team says it's all a lie.

RAMSEY CLARK, HUSSEIN ATTORNEY: It's because of the new judges. I mean you've got three of the original five judges are no longer there. The judges they brought in couldn't agree, they couldn't agree on what to do. They apparently spent the morning arguing with each other.

RAMAN: New judges following Monday's announcement of a shakeup at the top of the court. The former chief judge last week resigned citing mounting pressure from the Iraqi government to speed up the trial. His replacement is yet to take over. And when he does, presumably on Sunday, with increased frictions on all sides, it maybe be with none of Saddam's defense attorneys present.

NAJEEB AL-NUAIMI, SADDAM DEFENSE TEAM: I think we'll walk out if they don't hear us. Because we can't continue just like this.

RAMAN: Since the trial of Saddam Hussein began late last year, two defense lawyers have been killed. Three of the five presiding judges have been replaced and there have been four breaks in the proceedings, two lasting over a month.

(END VIDEOTAPE)

RAMAN: So when will this first trial of Saddam Hussein end? Well, it began back in October, Wolf, but officials say we're still at phase one of a 10 phase trial -- Wolf.

BLITZER: Aneesh Raman in Baghdad. Thank you very much.

He could have faced more serious charges and life behind bars for the death of a captured Iraqi general, but the U.S. military justice system spared an army interrogator from prison time.

Let's bring in CNN's Brian Todd. He's got the story -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, as word of this verdict reaches the Middle East, we're still left with some daunting questions. Was this soldier a bad apple like those accused at Abu Ghraib, or was he doing someone else's bidding?

(BEGIN VIDEOTAPE)

TODD (voice-over): Army Chief Warrant Officer Lewis Welshofer walks out of court in Ft. Carson, Colorado and thanks the military jury that has just convicted him.

C.W.O. LEWIS WELSHOFER. U.S. ARMY: I just want to say I have the utmost respect for the decision that the panel members came to tonight. I'm sure it was difficult on them.

TODD: Welshofer gets a reprimand, 60 days restriction to barracks, loses $6,000 in salary, gets no jail time, after his conviction for negligent homicide and negligent dereliction of duty. He originally faced a murder charge possibly life in prison for the 2003 death of Iraqi General Abed Hamed Abush (ph), a man Welshofer been questioning for days.

DAVID DANZIG, HUMAN RIGHTS FIRST: There is not question that this won't play well to Iraq. This is an insult, not just to the general and to his family but to Iraqi detainees who have been mistreated.

TODD: Prosecutors say Welshofer stuffed the general head first into a sleeping back, tied him up with an electrical cord and sat on his chest resulting in a what the death certificate said was asphyxia due to smothering and chest compression.

The defense claimed Welshofer never sat on the general's chest and that he didn't suffocate.

FRANK SPINNER, WELSHOFER'S ATTORNEY: I really believe that the general died from heart failure.

TODD: Welshofer testified the Iraqi general had been beaten days earlier by other American and interrogators. And said he himself had slapped General Abush (ph) in the presence of other Iraqi detainees. Welshofer's commanding officer testified that she authorized the use of the sleeping bag, but Welshofer's attorney said other than that he was given unclear guidance on interrogation tactics.

EUGENE FIDELL, NATIONAL INST. OF MILITARY JUSTICE: The jury may have felt that it was unfair to really hammer this warrant officer for things for which other people should bear responsibility.

(END VIDEOTAPE)

TODD: Neither the prosecutor nor other officials at Ft. Carson would comment when we asked if anyone who supervised Chief Warrant Officer Welshofer would be charged. They also would not say if Welshofer would return to his position as an interrogator. For now, he faces no reduction in rank -- Wolf.

BLITZER: All right, Brian, thank you. Brian Todd reporting.

Still to come in THE SITUATION ROOM, an innocent man in prison for more than 24 years, 24 years. Finally free tonight after a legal odyssey. He'll join us live in here in THE SITUATION ROOM to tell us his incredible story.

And his recent remarks raised eyebrows and excited entrepreneurs. We'll show you who is cashing in on those controversial comments by New Orleans Mayor Ray Nagin.

(COMMERCIAL BREAK)

BLITZER: Millions of children often play with toy guns, but a story out of Maryland, suggest children might not know the difference between pretend violence and real bloodshed.

Today, an 8-year-old boy playing with a gun, apparently accidentally shot a 7-year-old girl at their daycare center. Let's get details. CNN's Gary Nurenberg is standing by in Germantown, Maryland, that's not far from the nation's capitol -- Gary.

GARY NURENBERG, CNN CORRESPONDENT: Wolf, obviously the question that neighbors have been asking all day long is how does an 8-year-old have access to a loaded weapon and take it to daycare center? Tonight police said that 8-year-old got the gun out of a closet in his own home, in the same apartment complex that houses the day care center. Police say the gun belonged to his father, whom the described as a felon. And tonight that father was arrested again and faces multiple charges.

(BEGIN VIDEOTAPE)

NURENBERG (voice over): Police say the little boy had a handgun in his backpack at the For Kids We Care Daycare Center in this Germantown, Maryland apartment complex.

UNIDENTIFIED MALE: That's just shocking. It's just unbelievable. Absolutely. It's just insane.

NURENBERG: It went off shortly before 7:00 this morning, striking a 7-year-old girl in the arm. She was carried on a stretcher to a waiting an ambulance and then transferred to a helicopter for a flight to Children's Hospital in nearby Washington, D.C. Her injuries are described as serious, but not life threatening.

Police attempted to shield from helicopter cameras, a young boy they were seen putting into a squad car after the shooting.

KARON WILLIAMS, AREA RESIDENT: I don't see how the parents didn't notice the kid taking the weapon out. Where were the teachers when all this happened?

NURENBERG: There were six children here when the police took place and they were remarkably calm.

CMDR. EVIE CAHALEN, MONTGOMERY CO. POLICE: They were calm when I went in. They were watching a television program. The day care provider there did an excellent job of keeping the children safe and secure and calm.

NURENBERG: It's a misdemeanor, under Maryland law, to store or leave a loaded handgun where kids can get to it. No prison time, but a $1,000 fine.

(END VIDEOTAPE)

NURENBERG: And tonight the father has been charged with violation of that misdemeanor statue.

In addition he faces charges of contributing to thing delinquency of a minor and possession of a firearm by a prohibited person, felon.

That may not be the end of the charges, Wolf, tonight, police tell CNN producer Paul Corsin (ph), they have recommended charges against the 7-year-old, but no final decisions have been made.

BLITZER: What a story. Thanks very much Gary Nurenberg reporting for us.

Coming up, DNA justice. An innocent man sent to prison for 24 years for a crime he did not commit. He's just left prison and now he's going to be going to joining us live here in THE SITUATION ROOM. Try to find out how the system got it so wrong for so long.

Plus, Kobe Bryant's comeback. He fought off rape charges and booing fans and now he's working his way back into the hearts of sponsors. Take a look how he managed to turn it all around. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: United States Supreme Court has issued a last minute stay blocking the execution of a Florida death row inmate scheduled for execution tonight. Clarence Hill was sentenced to die for killing a police officer, but Hill says he's mentally retarded and should not be executed.

Once again, the United States Supreme Court only moments ago blocking the execution of a Florida man who says he's mentally retarded. Justice Anthony Kennedy issued the stay. No explanation was given. We're working to get you more details on this developing story.

He spent almost a quarter of a century in prison for a crime he did not commit. And tonight, he's finally free. Alan Crotzer will join us in THE SITUATION ROOM in just a few minutes to talk about his 24 year ordeal. First though, let's go to New York. CNN's Mary Snow has got the background to this really amazing story -- Mary. MARY SNOW, CNN CORRESPONDENT: And, Wolf, it's an extraordinary story. It's one of injustice, persistence and a bit of luck in securing key pieces of evidence more than 20 years old.

(BEGIN VIDEOTAPE)

SNOW (voice-over): Handcuffed and shackled, 45-year-old Alan Crotzer walked in a Tampa courtroom Monday to applause and news he'd waited for for more than half his life.

UNIDENTIFIED MALE: Mr. Crotzer, are you ready for what you've been waiting so long to hear?

ALAN CROTZER, EXONERATED BY DNA: Yes, sir.

UNIDENTIFIED MALE: Motion's granted, you're a free man.

CROTZER: Right.

SNOW: And with that, Crotzer left jail, where he'd spent more than 24 years. He had been convicted of a 1981 armed robbery and the rapes of a Tampa woman and her daughter. But recent DNA tests convinced the court he was not guilty.

CROTZER: I'm very happy.

UNIDENTIFIED MALE: Feels pretty good?

CROTZER: Yes, it does.

SNOW: Crotzer's attorney, David Menschel.

DAVID MENSCHEL, CROTZER'S ATTORNEY: It took a jury -- an all white jury -- less than an hour to convict Alan Crotzer, and it took Alan 25 years to undo that jury verdict.

SNOW: To undo that verdict, Crotzer turned to the Innocence Project, a legal clinic that uses DNA testing to exonerate inmates believed to be wrongfully convicted.

Lawyers say it's not only difficult finding DNA evidence in old cases, but attorneys in Florida also point to legal hurdles. They say there should be no limits on proving innocence, and they are fighting to erase a statute of limitations on post-conviction DNA testing.

JENNIFER GREENBERG, FLORIDA INNOCENCE INITIATIVE: Without legislative action, we know that the Alan Crotzers still in prison will remain in prison. They will die in prison. Some of them will be executed.

SNOW: Advocates say it's impossible to put a number on how many cases of wrongful convictions may exist, but the Hillsborough County prosecutor says Alan Crotzer is one case that proves the justice system is not perfect.

(END VIDEOTAPE) SNOW: And the prosecutor in the county where Crotzer was exonerated says he's grateful for the outcome, and that correcting an injustice is just as important as convicting someone who is guilty -- Wolf.

BLITZER: All right, Mary, thank you very much. Mary snow reporting.

Alan Crotzer and his attorney David Menschel are joining us now live from Tampa, Florida. Thanks, gentlemen, very much. And, Alan, congratulations to you. We're very, very happy that this injustice has been remedied. Most people would be so angry, but apparently, at least we're hearing you're not. Are you angry?

CROTZER: If you're thinking I'm bitter, no, I'm not bitter. I'm just a little disappointed in the system for allowing me to spend that much time in prison for something I didn't do.

BLITZER: You missed out on so much of your life. How could you not be bitter? How could you not be so -- everybody, you know, would be going crazy right now given what you've gone through.

CROTZER: I don't know. I guess that God just was with me. I always had hope, basically, every day I thought about it, and I prayed about it and I tried to do what I could to get out of prison. So I guess God just kept putting the right people in my life and, you know, kept me with hope and I made it.

BLITZER: Do you think about what you've missed out on these past 24 years while were you in prison for a crime that you did not commit?

CROTZER: Yes, I think about it. I think about if every day.

BLITZER: What do you think about the most? I know you think about your mother.

CROTZER: Yes. That's the big factor, because after 20 years of, you know, praying for me, and hoping that I get out one day, she died, and she didn't see this day that I saw.

BLITZER: Is that what you miss the most, your mom?

CROTZER: Yes, sir.

BLITZER: David, what took the system so long? How could the system have gotten this so wrong, 24, 25 years ago?

MENSCHEL: Well, Wolf, the -- it shouldn't be that much of a surprise that the legal system makes mistakes. The legal system is just a bunch of people. It's made up of human beings and human beings are fallible.

In this case in particular, you know, there were some eyewitness IDs -- in fact, five eyewitness IDs -- which turned out to be incorrect and, you know, that's not at all uncommon. You know, so I hope Americans, you know, realize, just how -- you know, and approach these cases with a bit of humility.

BLITZER: David, how did you get involved in this case? Because clearly, you and your team turned Alan's life around.

MENSCHEL: Well, I first got involved in this case when I was working as a staff attorney in at the Innocence Project in New York. And I've since left the Innocence Project and brought Alan's case with me. And I have a team of lawyers.

There's actually been a small army of people who have worked on this case: volunteers down in Florida; new witnesses who have turned up; a law student, Sam Roberts, who has been working on this case with me for three-and-a-half years; investigator Jeff Walsh. It's taken an army.

BLITZER: What was it in this case that convinced you that this was an innocent man? Because, as you know, you speak to prisoners -- and I've spoken to prisoners over the years -- almost all of them insist they're innocent. What convinced you that Alan Crotzer was serving time for a crime he did not commit?

MENSCHEL: Well, at first, to be honest, I wasn't convinced. We, you know -- we looked for some DNA and we tried to test it. And at first that DNA testing produced no results. And so we started digging.

We started digging deeper and deeper into the case, and we went to the St. Petersburg community. And as it turned out, you know, you start talking to people, and everybody knew -- this was an open secret in St. Petersburg for 24 years -- that Alan Crotzer was innocent. Person after person after person told us that.

BLITZER: If you said everyone knew, the prosecution prosecuted him, the detectives tried to convict him, the system worked against him. He was in jail all those years.

Alan, let me bring you into this conversation. What do you hope to achieve now? Are you seeking -- what are you seeking? Compensation? Do you want misconduct charges against the detectives, against the prosecuting team? What are you looking for?

CROTZER: Right now, I want the system to understand, the people that run the system to know that -- it's not -- you know, don't be too big-headed. Your system doesn't work, it fails people.

And if failed me greatly, and I spent a quarter of a century of my life in prison for that. And it's not a perfect system. Had they did a little bit more work at the time they arrested me, they would have realized that I was innocent.

And as far as compensation is concerned, you know, how can you compensate a man after 25 years in prison for something he didn't do? You know, can you bring his mother back? Can you undo all the pain he done suffer? Can it be done?

BLITZER: What can be done, if anything, David? MENSCHEL: Well, right now, in Florida, if you're wrongfully convicted, you cannot sue the state and win money. You know, if you slip and fall on the sidewalk, you can sue the state and, you know, have a good chance of winning some money, but if you're wrongfully convicted that's not an option.

So we're hoping that the Florida Legislature -- and this is a call to the Florida Legislature -- please, pass a statute so that people like Alan Crotzer can be compensated for the way that the state of Florida failed him.

BLITZER: It certainly did fail him, but we're happy that there's at least the happy ending for you, and we hope you have many, many, wonderful years, Alan, out of prison.

CROTZER: Yes, sir.

BLITZER: Go ahead and enjoy your life as best you can. Congratulations to you.

CROTZER: Thank you, sir.

BLITZER: Thank you very much for joining us. And David Menschel, thanks very much for the work you did in this case.

MENSCHEL: Thank you, Wolf.

BLITZER: According to the Innocent Project, by the way, DNA evidence has been used to clear more than 170 people in 31 states since 1989. They're doing very important work.

Up next, Kobe Bryant's rebound. It wasn't long ago he was facing rape charges and losing sponsors. We'll find out how he is making a comeback on and off the court.

Plus, Mayor Ray Nagin and what was called "Chocolate City." People are making a profit off his slip of the tongue. Was it a slip of the tongue? We have the story.

(COMMERCIAL BREAK)

BLITZER: Welcome back. After being dogged for more than a year by rape allegations that were never proven, basketball star Kobe Bryant is making a comeback both on and off the court.

CNN's Chris Lawrence is joining us now live from Los Angeles with "The Bottom Line." What's the latest, Chris?

CHRIS LAWRENCE, CNN CORRESPONDENT: Well, Wolf, just a couple nights after scoring 81 points in a game, Kobe Bryant is on the brink of a major advertising campaign, which is remarkable when you consider the time line.

A couple years ago, Bryant was accused of raping a young woman in a Colorado hotel. He said the sex was consensual, but still, he admitted to cheating on his wife. Prosecutors had to drop the case when the woman decided not to proceed to trial, and it's only been ten months since she and Bryant settled a civil lawsuit.

(BEGIN VIDEOTAPE)

LAWRENCE (voice-over): On the hardwood, Kobe Bryant is hotter than ever. And game by game, his image is rebounding in the court of public opinion.

DAVID CARTER, USC SPORTS BUSINESS INSTITUTE: The passage of time is a big part of his recovery. I think the fact that corporations realize that he can sell to a global audience really helps revive his image.

LAWRENCE: David Carter man directs the Sports Business Institute at USC. He says Bryant was a top-shelf endorser who lost millions when companies like McDonald's and Nutella didn't renew his contracts.

CARTER: I don't think he can ever reach those heights again.

LAWRENCE: Bryant was accused of raping a woman in Colorado nearly three years ago, but those charges were dropped and by one estimate, sales of Kobe Bryant merchandise have recently increased 25 percent. In fact, just last month, only four NBA players sold more jerseys than Bryant's number 8.

CARTER: If it's that hardcore basketball fan, I think they've always focused on Kobe the athlete and have thought of, unfortunately, a lot of his other issues as a nuisance. Whereas it's just the reverse with soccer moms and others. They will still focus on what happened a couple years back and be very slow to want to buy any products that he decides to pitch.

LAWRENCE: Casual fans and families may be out of reach, but Bryant seems to be well on his way to becoming a top athletic endorser again.

(END VIDEOTAPE)

LAWRENCE: Yes, he's already had a two-page ad here in "Sports Illustrated," and next month, Nike will introduce his new signature basketball shoe with a full-blown marketing campaign, including TV commercials -- Wolf.

BLITZER: All right, Chris, thanks very much. Chris Lawrence in L.A. for us.

And this footnote. According to the Associated Press, Kobe Bryant's accuser married after she settled the case. She has since given birth to a baby boy. Her whereabouts now are unknown. The case prompted several threats against her. You probably remember that. Three men convicted in separate cases were sentenced anywhere from four months to three years in prison.

Remember New Orleans Mayor Ray Nagin's comment on the chocolatization of his city? Take a listen.

(BEGIN VIDEO CLIP) MAYOR RAY NAGIN, NEW ORLEANS: It's time for us to come together. It's time for us to rebuild a New Orleans, the one that should be a chocolate New Orleans. And I don't care what people are saying uptown or wherever they are, this city will be chocolate at the end of the day.

(END VIDEO CLIP)

BLITZER: So after those comments, it was bound to happen. A cottage industry dedicated to capitalize on the mayor's chocolate metaphor. Our Internet reporter Abbi Tatton has the situation online -- Abbi.

ABBI TATTON, CNN INTERNET REPORTER: Wolf, Mayor Nagin apologized for those comments the following day, but sites like this one were already up, running and cashing in.

This is imnotchocolate.com, from a local businessman in New Orleans named Dolf Federico (ph). He's been selling hats and t-shirts as well. He's done almost 4,000 orders already. Half of them from the New Orleans area, but some of them as far away as coming in from Malaysia.

Other sites here, cafepress.com, this is an online retailer where individuals sell their own designs. Search on "chocolate city," and you get 26 choices of designs there.

Another site from Rocky Russo (ph), another New Orleans native. His site is mayorwonka.com. Lots of traffic to that, over $17,000 in revenue already. He acknowledges to us that this is a racially charged issue, his site, he says, is lighthearted. And it's the humorous t-shirts that are selling the best -- Wolf.

BLITZER: All right, Abbi, thank you very much.

Up next, Cuba's Fidel Castro, ticked off by a ticker. Signs of the times, as tension flaring once again between Washington and Havana. We'll show you what's it all about. You're in THE SITUATION ROOM.

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BLITZER: Long simmering tension between the United States and Cuba heated up today with a massive march in a rally in Havana. Zain Verjee is joining us from the CNN Center. She's got the story -- Zain.

VERJEE: Wolf, Fidel Castro called the march to protest what he says are anti-Cuban actions by Washington, including a new tactic that Mr. Castro apparently finds especially irritating.

(BEGIN VIDEOTAPE)

VERJEE (voice-over): Hundreds of thousands of Cubans answered Fidel Castro's call, turning out for a march that started outside the U.S. mission in Havana. That building now features a five foot high ticker that displays international news, as well as quotes from human rights from figures including Gandhi, Martin Luther King, Jr. and Abraham Lincoln. The sticker came on as Castro was kicking off the march.

PRES. FIDEL CASTRO, CUBA (through translator): They have turned on that little sign. Cockroaches are so valiant. It seems that little Bush gave the order.

VERJEE: Not to be outdone when it comes to signage, the marches carried a variety of posters denouncing President Bush, some calling him a killer, others comparing him to Hitler.

Castro also lashed out at Mr. Bush and the United States, calling decades of sanctions against Cuba a failure.

CASTRO: The current government of the United States has totally failed in its plans to economically isolate and choke off Cuba. And it does not give up, despite its failure. It is in a dangerous state of despair.

VERJEE: Among those on hand for the protest, former Nicaraguan President Daniel Ortega and Elian Gonzales, the subject of an international custody battle six years ago.

Castro, who turns 80 in August, only took part in the very end of the march. There's been much speculation about his health in recent years, including a CIA report last year saying he may be suffering from Parkinson's Disease.

Castro dismissed the speculation shortly afterwards in a five hour speech saying he never felt better.

(END VIDEOTAPE)

VERJEE: Another sore spot that Mr. Castro brought up today was the case of Luis Posada Carellas, he's an anti-Castro militant and former CIA operative accused of bombing a Cuban airliner back in 1976.

Posada Carellas is currently in U.S. custody on immigration charges. Mr. Castro wants him extradicted. Castro accuses the United States of harboring a terrorist.

BLITZER: Thank you very much, Zain.

We want to update you now on a story we've been following closely in THE SITUATION ROOM. Our CNN investigation revealed how easy it is to go on line, purchase a list of all your cell phone calls. Lawmakers and cell phone providers are trying to tighten up the noose a little bit on those companies that profit from your privacy.

Our Internet reporter Jacki Schechner has the latest. Jacki?

JACKI SCHECHNER, CNN INTERNET REPORTER: Wolf, here's what we did. We put the cell phone number of one of our producers into this Web site, and we gave them $110. And within eight hours we had the last 100 telephone calls made from our producer's cell phone . The cell phone companies are now fighting back. Verizon, T- Mobile, Cingular all have lawsuits now filed against the company that runs locate cell.com and other Web sites like it. Sprint says is still investigates. What's interesting what's coming out of these lawsuits.

What's interesting is what's coming out of these lawsuits, Wolf. It's how people are claiming to be you or talking to these companies on behalf -- I'm sorry, on behalf of customers who can't speak for themselves, customers who have a throat injury. We'll keep on top of this and the legislation that will comes out.

BLITZER: Thanks, Jacki.

Let's find out what's coming up in a few minutes, right at the top of the hour. Paula Zahn standing by -- Paula.

PAULA ZAHN, CNN ANCHOR: Hi, Wolf.

Well, coming up in just about seven minutes from now, we have the latest on that school shooting, this one at a daycare center involving an 8-year-old with a gun. How the heck did an 8-year-old child get his hands on a .38 caliber weapon? We're going to have the details for you in a couple minutes.

Also, one of those survival stories you just have to see to believe. A man who actually stayed afloat and alive for more than five hours in the very cold Pacific Ocean with no lifejacket, no way to call to help. He says he owes his life to a helium balloon and a piece of driftwood.

We'll see you in a couple minutes, Wolf.

BLITZER: All right, just think about this, Paula. Metal detectors, at high schools, some places junior highs. Do you need a metal detector now at a daycare center? I mean, it's a shocking story.

ZAHN: You know, when you look at the statistics -- and you're going to see it in our show tonight -- you have over 20 percent of a span of these crimes over 5 years committed in elementary school. So a lot of parents are going to wonder if they need to demand that.

BLITZER: Paula, we'll be watching. PAULA ZAHN NOW coming up in a few minutes. And we'll see you in a few minutes, as well.

Why can't Washington -- here's the question we're asking -- why can't Washington team up with the states when it comes to ethics reform? Jack Cafferty standing by with your e-mail. Stay with us.

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BLITZER: Let's check in with Jack in New York -- Jack.

CAFFERTY: Thanks, Wolf. "The New York Times" reports today that many of the states have outpaced Washington when it comes to ethics reform, lobbying reform. Why do you suppose that is?

Bob in Louisville, New York: "Ethical conduct is not nuclear physics. Anyone of average I.Q. can analyze a given course of conduct and determine whether it's ethical. The unethical conduct of our elected officials is not the result of a lack of a written code of ethics. It's the result of a lack of ethical people in powerful positions."

William in Kent, Ohio: "Honestly, Jack, the corruption inherent in any given country's political system always concentrates in the capital of the country in question. That's why the states are ahead of D.C. on ethic reform."

Larry in Richmond, Virginia: "Jack, I have to defend Congress on this. As a Department of Defense employee, it was against the law for me to receive a gift valued at over $20, and I wouldn't even consider letting a vendor pick up the tab for lunch, a trip, even coffee and donuts. They're real good, the Congress, at passing restrictive lobbying laws as long as they don't have to abide by them."

Vick in Orange Park, Florida: "A lot of states have term limits that help control some of the local problems. But our Congress is the best that money can buy and since we can't see them, they think that they can do whatever they please."

Murray in Baton Rouge, Louisiana: "Such questions. It's apparent to me you're trying to take all the fun out of being a Congressman. Take it easy, Jack. You want to play golf? How about a vacation?"

BLITZER: Murray -- oh, he said -- how about a nice vacation, he said? To be precise, he said how about a nice vacation.

CAFFERTY: You reading over my shoulder, Wolf?

BLITZER: I'm reading your e-mail. All right, Jack, thanks very much.

(NEWSBREAK)

BLITZER: We'll be back tomorrow, 4:00 to 6:00 p.m. Eastern and 7:00 p.m. Eastern. Paula Zahn getting ready to pick up our coverage -- Paula.

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