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CNN Saturday Morning News

Secret Service Scandal in Colombia; Syrian Violence; Newark Mayor Saves Neighbor From Burning Building; Tornado Threats Across U.S.; Vermont Governor And Bears In His Backyard; North Korea's Failed Missile Launch; U.S. Reaction To Korean Launch; Tornado Storm Chaser; Employers Asking Workers For Their Social Media Information; Trimming Your Tax Bill; George Zimmerman in Jail; Baby Veronica's Journey; Eco- Friendly Service Shop

Aired April 14, 2012 - 08:00   ET

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

RANDI KAYE, CNN ANCHOR: From CNN Center, this is CNN SATURDAY MORNING.

Allegations of a shocking scandal send U.S. Secret Service agents home from the president's trip to Colombia. We'll bring you the details.

Also, remember these images from Tuscaloosa last year? Meteorologists are bracing for another tornado outbreak as devastating as this one, likely just hours from now. We'll talk with a storm chaser on his way to tornado alley.

And North Korea's big launch turned into a big bust, but some say it was just a cover-up for a more sinister plan. We'll talk with Governor Bill Richardson live.

What's this guy doing? We'll tell you how a gator on the loose brought the PGA tour to a screeching halt.

It is Saturday, April 14th. Good morning, everyone. I'm Randi Kaye. We start with a massive black eye for the Secret Service. A dozen agents had to be pulled from their assignments in Colombia because of a prostitute. It happened before the president even stepped off the plane in Cartagena, Colombia. He is there for the summit of the Americas.

Here's what the Secret Service is telling CNN. Those personnel are being relieved of their assignments, returned to their place of duty and being replaced by other Secret Service personnel. The agency also says the president's security was never compromised.

Joining me now from Washington is journalist and author Ronald Kessler.

Ronald, you broke the story. How big of a deal do you think this is?

RONALD KESSLER, JOURNALIST AND BEST-SELLING AUTHOR: This is really the biggest scandal in the history of the Secret Service. The biggest breach was when the Salehis (ph) crashed the state dinner along with a third intruder and I broke that story, (INAUDIBLE) and it all amounts to a pattern of corner cutting, of covering up, of laxness by Secret Service management. And yet, Mark Sullivan, the Secret Service director, continues over all these fiascos. President Obama has said he has complete confidence in the Secret Service. You know, I understand he admires the agency protecting them and so he thinks that represents the Secret Service, but in my book "In the President's Secret Service" I go into all kinds of issues including letting people into events without (INAUDIBLE) screening --

KAYE: Let's talk more about this issue. The Secret Service has said, the agency has said that the president's safety was not compromised. But there was a risk here. I know you believe that. You believe that it could have certainly put the president at risk.

KESSLER: Sure. Of course, it's totally inappropriate for agents to be going to prostitutes in the first place.

KAYE: What was the risk?

KESSLER: The real risk is, you know, some of these agents were married. They could have been subjected to blackmail by these prostitutes. As a result, they could have let terrorists in to secure areas and that could have resulted in assassination.

As it is, it's a miracle that there hasn't been an assassination, according to agents that I've talked to, because of this corner cutting, letting people into events without magnetometer screening, not keeping up to date with the latest firearms, not requiring firearms tests or physical exams. Just as one example recently, an agent who was overweight, out of shape, could not even open the door of the president's limousine.

So what was the solution? The Secret Service instead of removing her and she was a supervisor, said, well, try to park the limousine in a better way so that she can open the door more easily. Another example, Mary Cheney who is under protection, Dick Cheney's daughter, insisted that her agents take her friends to restaurants. Well, of course, they're not taxi drivers. They're law enforcement officers. They refused as they should have but she complained and got her detail leader removed.

So management, you know, backed, instead of backing the guys doing the job, removed him. That sends a message, for example, to the agents who let -- or uniformed officers who let the Salehis into the White House dinner. Gee, if we enforce the rules, if we turn away people, we might be in trouble because our own management will not back us.

KAYE: Ronald Kessler, appreciate your time and your insight into the Secret Service on this. Thank you.

Our Dan Lothian is traveling with the president for the summit of the Americas and Dan joins us now from Cartagena, Colombia.

Dan, what is the Secret Service saying about this?

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Well, first of all, pointing out that they take all of these allegations seriously, confirming that, in fact, these Secret Service personnel were relieved of duty, not confirming specifically that number of a dozen Secret Service personnel, not confirming what the nature of their actions were, just saying that it was some kind of misconduct.

But, you know, I think what is interesting about something like this or perhaps even disturbing, is that when they have these kinds of summits, the White House very much comes here with a well scripted agenda. They want to focus on issues of trade, on the economy. This is a region that has been expanding quite significantly over the last decade.

And those are the kinds of things that they'd like to focus on. But I think what usually ends up making news is the unexpected. Remember back in 2009 the president's first summit of the Americas when he was handed that book by Chavez from Venezuela and that became a big story, it's always that unexpected. This of course being more serious than that, a black eye for the Secret Service and certainly something that is a huge distraction for the summit for the White House.

KAYE: What do you think when you talk about the idea, the notion that these 12 Secret Service members were sent home? They were replaced but we heard from Ronald Kessler who actually broke this story just a moment ago that it was actually -- it happened because one of the Secret Service members refused to pay a prostitute and then they called police and that led to this being exposed. What do you think is going on right now inside the administration? How will they deal with this?

LOTHIAN: Well, they do have a division, which is kind of an internal affairs division, which we are told is now investigating this. So, no doubt, there are a lot of interviews that will be taking place. Certainly, some of that must have taken place already on the ground here, so they could at least form some of the basic levels of information on this so they could send those agents or those personnel home. That investigation continues but as the Secret Service points out, they have brought in additional personnel and they believe that the president's security has not been compromised by this action.

KAYE: Dan Lothian, appreciate that, watching it all there in Colombia for us. Dan thank you.

Opposition activists say Syrian forces launched attacks on at least two sites today threatening an already shaking cease-fire. The opposition says forces shelled neighborhoods in the besieged city of Homs at dawn. Activists say troops opened fire on protesters in another city, wounding at least 20. The cease-fire aimed at ending the government crackdown on citizens began Thursday.

Firefighters in Newark, New Jersey got some help from an unlikely source. The city's mayor, Corey Booker. Booker saw smoke coming from his neighbor's home, then ran inside and pulled her to safety, but the mayor is dismissing all the talk that he is a hero saying he, quote, "did what most neighbors would do."

He suffered smoke inhalation and second-degree burns. His neighbor is in serious condition at the hospital.

Mitt Romney is going to be late with his taxes. The candidate and his wife, Ann, have filed a six-month extension past next Tuesday's deadline. The Romneys are not alone. The IRS says more than 10 million taxpayers filed for extensions.

If you live between Wichita Falls, Texas and Lincoln, Nebraska, be on the lookout for some severe storms. Forecasters say there will likely be a tornado outbreak later today, this evening, or overnight. The storm prediction center in Norman, Oklahoma put out an alert more than 24 hours in advance. That's only the second time ever that the center has done that. And meteorologist Alexandra Steele is watching it all waiting for those storms to happen.

(WEATHER REPORT)

KAYE: Vermont's governor says that he almost became dinner this morning. He is telling his story of being chased by four bears, not one, four bears in his back yard.

(COMMERCIAL BREAK)

KAYE: Time right now about 12 minutes past the hour and it is time to check out some of the stories making news around the nation. Vermont's governor sharing one frightening story about his close encounter with four bears.

(BEGIN VIDEO CLIP)

GOV. PETER SHUMLIN, VERMONT: I came close to being dinner and I got to tell you to be candid I sleep like many Vermont boys without too much clothing at night. I am not a big pajama person. The bottom line is the bears were dressed better than I and they could have done some real damage.

(END VIDEO CLIP)

KAYE: Governor Peter Shumlin says he was in bed the other night when he heard the bears in his back yard so he tried to chase them away. When he ran outside to grab his bird feeders, the bears actually charged him. And as you just heard, he managed to outrun them, incredible.

In California paramedics transported this man to the hospital with, you see it there, parts of a metal stake still in his back. Wow. That's hard to look at. Officials say Ben Smith impaled himself while picking avocados. Apparently, he had a fall. His grandmother says he is lucky. No vital organs were hit.

(BEGIN VIDEO CLIP)

ANNA LOU SMITH, VICTIM'S GRANDMOTHER: Amazing that it didn't hit any of the other organs. That's what the doctor said. It didn't hit anything vital just the one thing.

(END VIDEO CLIP)

KAYE: Yeah, just the one thing. That one thing was a small tear to his intestine. Smith's family said surgeons have removed the metal. He is expected to make a full recovery.

A Civil War veteran has finally been laid to rest near Portland, Oregon, 88 years after his death.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: For 88 years later to be able to do this for him is just really awesome.

(END VIDEO CLIP)

KAYE: Peter Knapp's cremated remains and those of his wife sat in storage container all those years until a relative researching her family tree found them. It's not clear why the remains were never interred.

Still to come this morning the rocket launch that wasn't. North Korea defies the world with a provocative test, but did it really just blow up in their face? We talk to Governor Bill Richardson live, coming up.

(COMMERCIAL BREAK)

KAYE: A spectacular failure, an epic embarrassment. That pretty much sums up global reaction to North Korea's botched rocket launch Friday morning, the one that hardly got off the ground. In fact the rocket broke into pieces after just 90 seconds in the air eventually ending up in the sea. In response, the United States has suspended food aid to that country, the White House calling the act a violation of international law. Joining me now an expert on this issue, former U.S. ambassador to the UN and former New Mexico Governor Bill Richardson. Governor, good morning to you.

BILL RICHARDSON, FORMER AMBASSADOR TO UN: Good morning. Nice to be with you.

KAYE: Thank you. Listen, aside from the fact that this was a total failure, did we actually learn anything from this?

RICHARDSON: Well, yeah. We learned several things. One that their intercontinental ballistic missile system still has some real technology gaps. So I don't see how they could eventually shoot something the distance of the United States. They're years away from that. Secondly, we did learn that in the past, they've had two unsuccessful launches they never admitted to. This time they did admit to it because I think there is more technology, more cell phones in North Korea. What we don't know is what are they going to do next? The danger is that they will pursue an underground nuclear test to atone for this failure, which is a blow to the new leader, Kim Jong Un.

KAYE: North Korea of course has said all along that this was just a satellite launch, a weather satellite, but it is still military technology. So do you think, as many have said, that this was a cover for something bigger, maybe even a future plan?

RICHARDSON: Yes, yes, I do think it was a test of ballistic missile technology. It was very clear in the United Nations Security Council that this was prohibited. The North Koreans, when they negotiated with us, with the United States in exchange for food aid, they would not pursue additional nuclear technology. This test clearly was a violation of that, although there is a dispute in the understanding. So, yeah.

I think mostly it was a strong, symbolic celebration of the new leader exceeding the power as the supreme leader of North Korea celebrating the hundred years of Kim Il-Song who was the founder of North Korea and also to demonstrate to the population of North Korea that they had a new leader, that he was powerful, prestigious. So this has obviously affected them.

I think where we go from here, we got to be very careful. We can't gloat about this. We can't provoke them. I think it's important that we keep our cool. The six-party countries try to negotiate, put pressure on North Korea, especially China that has leverage over them because they provide food and fuel to that country.

KAYE: The U.S. has certainly announced it is suspending the food aid, but really is that enough? Should there be more sanctions? What would you advise the president?

RICHARDSON: Well, I would pursue Security Council condemnation resolution. That should be coming very soon. I don't think you can pursue any additional sanctions. Maybe there are some potential sanctions that you can pursue that deal with them having access to sensitive military technology. But outside of that, they're sanctioned to death. I think what is important is keep the food aid in suspension. Don't cancel it. Let them make the next move. If it's a hostile move obviously, there's not much you can do for now. But I think history has shown that if you isolate them, if you just punish them, this gives them opportunities to react negatively, so I think we need to keep our cool. Kkey players are South Korea, Japan, Russia, but especially China that has leverage over North Korea.

KAYE: And given your experience --

RICHARDSON: I think the administration is acting --

KAYE: Given your experience, sorry to interrupt you there, how soon might you think that we'll see another test from them?

RICHARDSON: Well, I think the odds are pretty high that they will do something else like an underground nuclear test. I think internally they have to recover from this blow. That's what I think they will do. But they keep -- you can't predict what North Korea does. I've been dealing with them for years. You don't know what their next step is. The problem, though, is that they have at least six nuclear weapons. They've got ballistic missile technology, a million point two men in arms. We've got close to 30,000 troops in the DMZ between north and South Korea. We have an alliance with South Korea. So that whole area is a tinder box. So you have to watch it. You have to be careful. You can't provoke them, but you got to be tough with them.

KAYE: Governor, appreciate your insight, a pleasure to have you on the show this morning. Thank you.

RICHARDSON: Thank you.

KAYE: Tony Laurach is not like most people. When tornado sirens sound, most people run for cover right. Well Tony chases the storm. Tony shot this video yesterday of a tornado touching down in Shawnee, Oklahoma. Tony is on the road again today. He's in Kansas now heading to Nebraska with more severe storms expected there. I spoke to him just a short time ago.

(BEGIN VIDEO CLIP)

VOICE OF TONY LAURACH, STORM CHASER/METEOROLOGIST: We are in Shawnee, Kansas heading up to Nebraska today. Today looks very, very potent, very reminiscent of many of the outbreaks that we saw back in 2011.

KAYE: How many storms -- is this something that -- what are we expecting today in terms of the storms? Are you expecting to find what you might call a super outbreak?

LAURACH: Today has the potential to be a super outbreak with tornadoes possible from Nebraska all the way down into north Texas. Many of those tornadoes could potentially be very, very strong, impacting a lot of people from Lincoln, Nebraska down all the way down to Wichita Falls, Texas.

KAYE: What kind of gear do you take with you on a trip like this when you're going to take on a tornado?

LAURACH: We are equipped with satellites and mobile Internet for radar services. We also have a GPS. All of our camera equipment and of course a trusty vehicle to ensure that we're able to get in and out of there safely.

KAYE: I know when you spoke with one of our producers you said you have more food and mellow yellow than you can shake a stick at, so I guess you have pretty good supplies.

LAURACH: Yeah. I've been on the road for the last seven days and food and drink on the road is very handy to have in the back seat and we'll make sure I never run out of that.

KAYE: How do you know when it's too dangerous? Is there ever a time where you won't chase a storm?

LAURACH: My goal is to try to tell the story, not become the story. So I try to keep a safe distance in front of the storm so that I don't end up in any kind of trouble.

(END VIDEO CLIP)

KAYE: Pretty brave guy. We plan to have Tony back on the show tomorrow for CNN Sunday morning. He'll have the latest from the storm that he was chasing.

Do you know what your online reputation is? You might want to because your boss might want to know as well. We're doing some social media spring cleaning, next.

(COMMERCIAL BREAK) KAYE: If you're active on Facebook, Twitter, Linkedin, you're going to want to pay attention to this. Potential employers starting to notice your online reputation. Just this week Maryland lawmakers voted to ban employers from asking employees or job applicants for passwords and social media account information. Facebook said employers asking for that information undermines the (INAUDIBLE) of the user and the user's friends. This has a lot of people talking.

So let's talk about it with HLN digital lifestyle expert Mario Armstrong. He's joining us from Baltimore.

Good morning, Mario.

MARIO ARMSTRONG, CNN DIGITAL LIFESTYLE EXPERT: Hey, how are you?

I'm from a state where that actually took down the Maryland general assembly in Maryland was the one that started this whole conversation about whether or not an employer should be able to ask someone that's trying to look for a job for their pass word.

KAYE: Yes. It's a crazy thing and a crazy thought. Probably some employees are probably curious about it. So are there ways that they might be able to block their employers from seeing their Facebook page and if they do block an employer, does the employer know it?

ARMSTRONG: Well, you know, absolutely the employer will know it. They'll know it if they knew you already had a Facebook account of course. But the idea that an employer could be able to ask you and demand it in some cases, this is still going on. This is happening with athletic coaches at the University of North Carolina. This is happening with the Virginia state troopers. So many people are being demanded to ask for their user name and password for Facebook.

Facebook doesn't agree with this. But I think that Facebook should take an actual bigger step forward, a proactive step and say you know what, any business that is violating the privacy of an individual for applications or for college admissions should be -- have their page banned or temporarily shut down from Facebook. I think that could be an impressive step, but one that would send a clear message. People aren't really happy about this at all.

KAYE: So if we wanted to clean up our Facebook page for those of us who have a reason to before an employer checked it out, whatever you delete, is that permanently deleted?

ARMSTRONG: No.

KAYE: The Library of Congress has said that they're archiving everyone's tweets.

ARMSTRONG: That is a very good point. No, everything does not get automatically deleted. It's kind of like your trash can on your computer. Over time those files will delete, but not all gone right away. The best thing to do for spring cleanup, check your page, check your wall, and make sure that other people that are posting information on your site have to get approval from you first. You want to make sure no inappropriate content gets on there not only from you, but more importantly from maybe some of your friends and others that don't realize you're going through an interview process at that time.

KAYE: So if you're worried about your online reputation Mario, is there a way that we can determine what it is?

ARMSTRONG: Yes. There is a website called reputation.com. I think we actually even did this for you.

KAYE: Uh-oh.

ARMSTRONG: They have a free service and then they have some paid services, but this is a serious thing, folks. I want you to take this very serious. Your reputation is being determined by how you look online. You don't even get a chance to make a phone call, to sit in an interview. They're doing all of this to find out who you are, what you're about, what your associations are, what you do in your off time to get a better understanding and the best place to do that is the web. So if you want to find out when things are being mentioned about you online, use services like Gmail, Google alerts, as well as something like reputation.com.

KAYE: You found my reputation is pretty clean right?

ARMSTRONG: Yes. You are squeaky clean which is a little concerning.

KAYE: It's because I've deleted everything.

ARMSTRONG: You're a smart woman.

KAYE: All right. Mario, that's great advice. Thank you very much. Great to see you.

ARMSTRONG: Thanks, Randi.

KAYE: Have a great Saturday.

ARMSTRONG: Great to see you too.

KAYE: And you can join us every Saturday as our digital lifestyle expert Mario Armstrong gives us the scoop on the latest technology.

Want to know how to keep more of your money in your pocket and out of Uncle Sam's hands? We'll have some tax tips coming up.

(COMMERCIAL BREAK)

KAYE: 31 minutes past the hour. Welcome back, everyone. I'm Randi Kaye. Thanks for starting your day with us.

While some of you may be scrambling to make Tuesday's tax filing deadline, others are looking ahead already to next year and some changes to the tax code that could make that 2013 bill a little more expensive.

Athena Jones joins me now from Washington with the details on this. Good morning Athena. So what do we know about what tax rates will look like next year?

ATHENA JONES, CNN CORRESPONDENT: Good morning, Randi.

Well I want to start with one caveat you know. Congress could act to make further extensions to some of the tax cuts that are set to expire but as of right now, the tax bill will go up for almost everyone in 2013.

First you have the Bush tax cuts. We hear a lot about that. The highest rate for the highest income earners would go from 35 percent to 39.6 percent. But it's not just the rich who would be affected. Even the lowest income earners the ones in the 10 percent bracket would see the rate go up to 15 percent. So everyone would be affected there.

There is also the payroll tax cut that would be expiring at the end of this year. Everyone who has a job pays payroll taxes and so we've all enjoyed this two percent reduction in what we've had, what come out of our pay checks all of this year.

It may not sound like a lot of money but certainly the Obama administration thinks it's politically significant. Back in February, you'll remember they had all of these people writing in and tweeting about what that on average extra $40 a paycheck meant to them. So that's another way that we could see taxes rise.

KAYE: Yes.

JONES: You also have two other quick ones that will mainly affect people who make more money; people who have investments. The capital gains taxes are expected to go up in 2013 so they'd go up from zero to 10 percent and then the other one from 15 percent to 20 percent. That's a tax on things like investments like in stocks.

And then finally, you have new taxes associated with the health care law. This is of course assuming that the Supreme Court upholds the law, declares it constitutional. You'll have some new Medicare taxes coming online for people who make over $200,000. That's a 0.9 percent tax on earned income, an increase in the tax there and another 3.8 percent tax on investment income.

So those are a look at some of the many things that could be changing in 2013 to add to that tax bill -- Randi.

KAYE: Well we will have to wait just a little bit longer then and see what happens. Athena Jones, thank you very much.

JONES: Thanks.

KAYE: Coming up, George Zimmerman's arrest. The second-degree murder charge in an affidavit revealing more about the night Trayvon Martin was shot. So don't go anywhere. We're going to break down what's next in this controversial case.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Mr. Zimmerman --

GEORGE ZIMMERMAN, CHARGED WITH TRAYVON MARTIN'S MURDER: Yes, sir.

UNIDENTIFIED MALE: You're appearing here for your first appearances, or first appearance at this time for a charge of murder in the second degree and you are represented by Mr. O'Mara is that true?

ZIMMERMAN: Yes, sir.

(END VIDEO CLIP)

KAYE: George Zimmerman is spending his first weekend in a 67 square- foot cell charged with second-degree murder in the death of Trayvon Martin. His first court appearance Thursday was brief. There was no bond set. His arraignment was scheduled for May 29th.

CNN legal contributor Paul Callan joins me now from New York to talk about this week -- a very busy week, Paul.

Let's first look at the prosecution's version of what happened the night that Trayvon Martin was killed. In it, investigators bluntly state that Trayvon Martin quote, "was profiled by George Zimmerman".

How strong of a case do you think they have?

PAUL CALLAN, CNN LEGAL CONTRIBUTOR: Well, looking at the affidavit and this is called a Probable Cause Affidavit, when prosecutors decide to file charges under Florida law, they have to submit details of their proof to a judge and then he issues an arrest warrant.

So everyone was kind of waiting for this affidavit, this Probable Cause Affidavit to see what the details are. There were no details in the affidavit. They simply say he profiled but they don't say how.

Now, profiling generally means racially profiled. Of course, Zimmerman's defense attorneys will say he didn't racially profile. He simply mistakenly suspected that Trayvon Martin was a burglar or somebody trying to break in at the community.

So I don't know. I think you're going to see back and forth on that issue from the defense.

KAYE: How critical is it that that his lawyer, George Zimmerman's lawyer, get him out on bond and take him to the scene of the crime to see exactly what happened and walk him through it?

I think it's very important to get a client out on bond as soon as possible. And you know, Randi, I've heard a lot of back and forth on this with people analyzing the situation. Some saying you know maybe Zimmerman would be better off remaining in prison for his own safety because of the controversy relating to the case.

But the truth is he's being kept largely, probably in a solitary confinement kind of situation for his own safety. And from a mental standpoint it really wears you down, breaks your spirit. And when you appear in court, it affects your public presentation.

Also of course, the defense attorney does want to go back to the scene and walk him through exactly where he first saw Trayvon Martin what happened in the encounter. It's very, very important in preparation of the defense.

So I think you would see the defense attorney aggressively trying to get the bail set and set at an amount that would allow him to be released.

KAYE: All right. Paul Callan, thank you very much. And I want you to stick around --

(CROSSTALK)

CALLAN: It's nice being with you Randi. Yes.

KAYE: -- because I want you to stick around because I want your thoughts on this next story that we're going to share with our viewers.

Two parents may be losing their adopted child for good because of a 1978 federal law that many don't even know exists. We'll have more on that, next.

(COMMERCIAL BREAK)

KAYE: It has been called the case of Baby Veronica, a child taken from her two adoptive parents because of a 1978 federal law many have never even heard of. And the emotional custody fight is nowhere near over.

(BEGIN VIDEO CLIP)

MELANIE CAPOBIANCO, FIGHTING FOR CUSTODY OF VERONICA: Yes.

VERONICA: What?

KAYE (voice-over): Her first name is Veronica. Her last name is, well, complicated. At just two years old this little girl from Charleston, South Carolina is caught up in one of the strangest adoption cases we've ever heard. Her story begins in 2009 when Veronica's biological parents who weren't married put her up for adoption.

MELANIE CAPOBIANCO: You want to be an engineer when you grow up?

VERONICA: Yes.

KAYE: That is when Matt and Melanie Capobianco entered the picture. They tried to have their own children but in vitro fertilization failed them so an adoption attorney connected them with Veronica's biological mom who told them the father Dustin Brown a U.S. soldier from Oklahoma wanted to waive his parental rights.

Veronica was born in September in Oklahoma and from that moment the Capobianco's were a part of Veronica's life.

MELANIE CAPOBAINCO: We were at the birth, in the delivery room, Matt cut her umbilical cord. She's never not been with us. You want me to hold you?

KAYE: The Capobianco's were thrilled to have their new baby girl. They took her straight from the hospital to their house in Charleston and were in the process of finalizing the adoption. Four months after they brought Veronica home, Dustin Brown signed a waiver saying he would not contest the adoption.

But two weeks later, Brown decided he wanted his daughter back and filed for paternity and custody. Jessica Munday is a friend of the Capobianco's.

JESSICA MUNDAY, CAPOBIANCO FAMILY FRIEND: It wasn't until this child was four months old that he decides he wants to be a part of her life. With no regard to the birth mother, her decision, the pregnancy, the family that's taking care of his child. And to just come and say, I've changed my mind, that just doesn't work, it shouldn't work that way.

KAYE: South Carolina law says a father is stripped of his paternity rights if he hasn't provided pre-birth support or taken steps to be a father shortly after birth. But in this case, state law was trumped by a little known federal law from 1978 -- called the Indian Child Welfare Act.

You see, Brown is a member of the Cherokee Nation, which means Veronica is part Cherokee, too. So before the Capobiancos could finalize Veronica's adoption a family court judge ruled in favor of Veronica's biological father ordering the Capobiancos to hand her over.

(END VIDEO CLIP)

KAYE: The law is designed to protect Native American children and to keep them with family members. Congress took action after a 1976 study showed that about 30 percent of Native American children were being removed from their homes and about 90 percent of them were being placed with non-Indian families.

So did the Capobiancos hand baby Veronica over to her biological father? We'll tell you what happened right after this.

(COMMERCIAL BREAK)

KAYE: Now for part two at our look at an emotional custody battle. It is a battle over Baby Veronica. Adoptive parents are appealing a ruling that forced them to give their baby back to her biological father, and it is all because of a federal law called the Indian Child Welfare Act.

(BEGIN VIDEOTAPE) KAYE (voice-over): The attorney general for the Cherokee Nation told us the law is working.

(on camera): One of the original authors of the Indian Child Welfare Act said his intent with this law is not to take adoptive children away from loving homes. How would you like to respond to that?

TODD HEMBREE, ATTORNEY GENERAL, CHEROKEE NATION: It's not anyone's intent to ever rip a child away from a loving home, but we want to make sure those loving homes have an opportunity to be Indian homes first. And you look at the welfare of the child and if, you know, if at all possible we want that child to be raised in a traditional Indian family.

KAYE (voice-over): That logic is lost on Veronica's adoptive parents.

MELANIE CAPOBIANCO, ADOPTED BABY VERONICA: This law has been used unjustly to the detriment --

MATT CAPOBIANCO, ADOPTED BABY VERONICA: The Indian Child Welfare Act is just destroying families like ours.

KAYE: This past New Year's Eve after two years with the little girl they hoped to call their own, Matt and Melanie Capobianco handed Veronica over to her biological father.

UNIDENTIFIED FEMALE: Do you think this is in her best interests?

UNIDENTIFIED MALE: I think so.

KAYE: That night was the first time Veronica had met her biological father. Friends of the Capobiancos had hoped Veronica's dad would stay in South Carolina a few days and get to know his little girl. But instead, that night he drove her here to his house in Bartlesville, Oklahoma about 1,200 miles away from the only home she had ever known.

MATT CAPOBIANCO: I mean, she's a two-year-old girl that got shoved in a truck and driven to Oklahoma with strangers.

KAYE: We tried to ask Dustin Brown why he wanted his daughter back but he didn't answer the door. And now that the Capobiancos are appealing the ruling everyone involved is forbidden from discussing the case with the media.

Veronica's future now rests with the South Carolina Supreme Court, which is considering the Capobiancos' appeal. Until the court rules the Capobiancos will hang on to Veronica's last words, from their only phone call with her since she left.

MELANIE CAPOBIANCO: She said, "Hi, mommy. Hi daddy." She sounded really excited to hear us and she said, "I love you. I love you." Numerous times.

KAYE: One family in pieces, another trying to make itself whole.

(END VIDEOTAPE) KAYE: And in just three days the South Carolina Supreme Court will hear this case. CNN legal contributor Paul Callan joining me once again from New York; Paul thanks for sticking around. I did want to talk to you about this. Does the family have a case here given that this is a federal law?

PAUL CALLAN, CNN LEGAL CONTRIBUTOR: Well, federal law trumps state law in issues like this and I think, you know, a lot of people don't even realize this but generally with Indian law in the United States and Indian reservations, tribes are sovereign nations within the United States.

And, in fact, a lot of rights that are accorded to Indian nations are the equivalent of treaties with foreign nations. I mean people that live in places like New Mexico know about this. And, clearly, a treaty or a federal law pertaining to Indian rights will trump state law.

That doesn't mean, however, that the parents, that the biological father will win in this case. The South Carolina Supreme Court might find the Indian Welfare Act does not apply.

KAYE: So just briefly, what will actually take place at this hearing on the 17th? Will they hear both sides?

CALLAN: Well, yes. They will hear both sides and, you know, just as a back drop to this, every state in the United States struggles with this issue because on the one hand sometimes the birth mother wants to give up the child and you want good, adoptive parents to get into the picture quickly.

But on the other hand, a lot of times people change their minds about this and one month, two months later the birth mother or the birth father had second thoughts about it and they want the child back. So legislatures have been struggling. What's the appropriate time period before we finalize it? Should be a month, two months, six months? Because of course the baby is bonding with the new parents.

This is not an easy question even without the Indian reservation tribal law. And then you throw that into the picture. The reason that law was passed was because American Indian tribes were being destroyed by children being put in foster care, so, a lot of things that the court is going to try to balance here.

KAYE: So if the couple, the Capobiancos, don't get Baby Veronica back can they appeal again to a higher court?

CALLAN: Well, in theory, because this involves a federal law, yes, they would be able to petition the United States Supreme Court to look at the case. Now, the court would not have to accept it. It is voluntary on the part of the court to look at a case coming out of the state or not. But it's a federal question so, yes. They could take it to the U.S. Supreme Court. And you may very well see that happen here.

KAYE: Paul Callan, appreciate that. We'll continue to watch this case, of course, here on the show. Thank you very much.

CALLAN: Nice being with you, Randi.

KAYE: You as well.

CALLAN: Ok.

KAYE: A new way to care for your car while keeping an eye on the earth. Learn all about green maintenance coming next.

(COMMERCIAL BREAK)

KAYE: Changing your car's oil every 3,000 miles is something that you learn early but a new shop is working with new rules in hopes of paving a greener road to the future. Reynolds Wolf has more in this weekend's "Start Small Think Big".

(BEGIN VIDEOTAPE)

REYNOLDS WOLF, CNN CORRESPONDENT (voice-over): Having a car in service can be a lot like going to the dentist. That's why Ryan Ferrero is trying to give the industry a tune-up.

RYAN FERRERO, GREEN GARAGE SHOP OWNER: I realized there was an opportunity here where being that tree hugger and loving cars there was something. There was something there for me.

WOLF: So he started Green Garage, an eco friendly service shop. Ryan says the key to the shop's success is helping customers run greener, not just their cars.

(on camera): Can you explain to some of those people who don't know any better, why is this important especially when it comes to the car?

FERRERO: If we start with, hey, you can save one-fourth of your time and a seventh of your budget by changing the way you change your oil that opens the door to learning more sustainable practices.

WOLF: You know it's not just about business. A lot of this has to do with education. They offer classes to the public to give them an idea of how to better care for their cars.

FERRERO: Anybody that's been to a previous clinic?

WOLF (voice-over): Like this wine, women, and wrenches class which shows women how to work on their own cars.

(on camera): Where do you see this company five, ten, 15 years down the road?

FERRERO: I want to serve and sell 250 million cars but we will not grow at a rate that dilutes our ability to provide a really good, in fact great customer experience.

WOLF (voice-over): Reynolds Wolf, CNN.

(END VIDEOTAPE)

KAYE: So every weekend, you probably notice, we take time for a little R&R. Today Reynolds is off so I'm on my own.

(BEGIN VIDEO CLIP)

JON STEWART, COMEDIAN: Shut up. I'm going to miss R&R.

(END VIDEO CLIP)

KAYE: Don't ever miss R&R, John. I know you're upset about missing our appointment viewing but Reynolds is off fishing in Wyoming. Yes, there he is -- big fish. Who knows if he really caught that one? Who knows?

But, yes, even comedian Jon Stewart from "The Daily Show" loves R&R. So here is just one story to hold you over until next weekend when Reynolds is back.

Life on the golf tour. Take a look. One week they're trying to win a green jacket. The next week they're fending off a green gator.

PGA tour player Brian Gaye did not just qualify for Augusta this year but it is not for lack of a daring caddy. Kip Henley took life into his own hands, you see it there. He used that sand trap rake to drive the gator off the 15th hole in Hilton Head, South Carolina.

Talk about nerves. Brian of course had to play an already tough shot from just off the green with an angry gator watching his every move. He didn't do so well. No surprise -- bogeying the hole.

But, you know, can you blame him really? That's tough stuff.

Coming up at the top of the hour, Secret Service agents behaving badly -- a prostitute and black eye for the president's protective detail. We have much more on this straight ahead.

(COMMERCIAL BREAK)

KAYE: "YOUR BOTTOM LINE" is coming up in just 30 minutes. Christine Romans has a preview for us. Hi, Christine.

CHRISTINE ROMANS, CNN HOST, "YOUR BOTTOM LINE": Good morning, Randi. Have president Obama's policies hurt working women?

Is Ann Romney out of touch? The war for the women's vote is getting dirty.

And should the rich pay a higher tax rate than you? Guess what? Most already do. We'll arm you with the facts in the debate over what is fair and who is rich.

Plus, college grads come away with a degree and loads of debt. Is it worth it? It is if you make the right choices.

That's all coming up at 9:30 a.m. Eastern -- Randi.