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CNN Wolf Blitzer Reports

Fallout From Sex Abuse Controversy; Can Bush Be Safe in Peru?; Who Will Win at the Academy Awards?

Aired March 22, 2002 - 17:00   ET

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

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, CNN ANCHOR: Now on WOLF BLITZER REPORTS: Can the Catholic Church be treated like the mob? Today, fallout from the sex abuse controversy.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: They treat this as some kind of sin, when it's a felony.

(END VIDEO CLIP)

BLITZER: Meet the lawyer who's launching a legal assault, putting America's bishops on notice.

Peru sees an ominous link between a deadly car bombing and this weekend's visit by President Bush. Can 7,000 security personnel keep him safe?

As another suicide bomber strikes on the West Bank, the Bush administration has an answer for Yasser Arafat.

And who will win the Oscars? We'll keep a scorecard and get predictions from Hollywood insiders.

Hello, I'm Wolf Blitzer in Washington. More sexual abuse allegations against the Catholic Church are surfacing on a nearly daily basis. In a moment, we'll tell you about a new legal strategy some victims are taking. But first, this hour's news alert.

The State Department is ordering all nonessential personnel and family members of U.S. diplomats to leave Pakistan. In the latest violence, five people, including two Americans, were killed in a grenade attack at a church last Sunday. A State Department spokesman says the move is being taken because of threats against American interests. The American embassy and consulates in Pakistan are closed until Monday.

Also in Pakistan, the prime suspect in the kidnapping and murder of American journalist, Daniel Pearl, was formally charged today. Ahmed Omar Saeed Sheikh and 10 others were charged with kidnapping, murder and terrorism. If convicted, Saeed could be sentenced to death. The trial is set to begin March 29 in Karachi. Another suicide bombing fails to derail the latest round of Israeli-Palestinian truce talks. The meeting ended without agreement. Shortly after the talks began, a Palestinian suicide bomber blew himself up at a roadblock near the West Bank town of Jenin. An Israeli soldier was wounded. The Al Aqsa Martyrs Brigades, a militia linked to Yasser Arafat, is claiming responsibility.

Here in the United States, a man went on a shooting rampage at a South Bend, Indiana, manufacturing plant, killing four coworkers. He then led police on a high-speed chase that ended when he shot himself to death near an elementary school in Niles, Michigan. At least two people were wounded.

Now to the latest and most dramatic challenge yet to the Catholic Church, embroiled in a sex abuse scandal. A man who says he was molested at a seminary is taking all of the nation's bishops to court, accusing them of a cover-up. CNN's David Mattingly with more now on the lawsuit.

(BEGIN VIDEOTAPE)

PATRICK NOAKER, PLAINTIFF'S ATTORNEY: This morning we filed, in the Marion County Circuit Court, a lawsuit alleging -- and we believe that it stands for the problem that we're here today, regarding secrets, obstruction of justice and concealment of child sexual abuse.

DAVID MATTINGLY, CNN CORRESPONDENT: The Racketeer Influenced and Corrupt Organizations Act, the RICO act, it's called, originally created to fight organized crime. Now to be used in a new sweeping sexual abuse lawsuit against bishops and diocese of the Catholic Church.

JEFF ANDERSON, PLAINTIFF'S ATTORNEY: It is used to expose a conspiracy at the highest level of the Catholic Church of America. And that is the level of the bishops. Also, not named as defendants but as coconspirators, are every single bishop who presides every single diocese in the U.S. of A. And they are unnamed conspirators in these conspiracy of silence, this conspiracy of secrecy, this conspiracy to obstruct justice and to conceal their own wrong-doing.

MATTINGLY: The three diocese named in the suit tell CNN they haven't seen the suit and cannot comment on its merits. The suit stems from charges of sexual abuse against former Bishop Anthony O'Connell, the highest ranking church official to resign in the church sex abuse scandal, that began in Boston.

This suit, by an unidentified 47-year-old Minnesota man, who claims he was sexually abused by O'Connell at the age of 15 while attending seminary in Missouri. At news conferences in Missouri and Minnesota, people claiming to be victims of sexual abuse by other priests lend their support to the RICO suit, calling for an end to church secrecy.

UNIDENTIFIED MALE: You don't know the pain it puts on you, until you have it happen to you or someone you love. If a neighbor molests your child, they go to jail. Why it is different here? Why are they above the law? We have to obey the law. When are they going to obey the law?

MATTINGLY: But RICO cases filed in similar suits in the past have been unsuccessful. In 1995 a RICO charge was dismissed from a suit against the Camden diocese in New Jersey. And in 1998, a RICO charge was dropped, in a suit against the Dallas Diocese in Texas, that eventually led to a $30 million settlement.

(END VIDEOTAPE)

And where this new lawsuit leads is still anyone's guess. The filing still so new that the three dioceses named haven't been able to see the paperwork and formulate a response. So, Wolf, we contacted all three of them this afternoon, and they're asking us for information in this very new development. Back to you.

BLITZER: Thank you very much, David Mattingly, joining us from Atlanta.

And from our story to a studio in Minneapolis, Minnesota. We're joined there by Jeff Anderson. He's the lead attorney in this case. Mr. Anderson, thanks for joining us. So what makes you think this legal strategy, using the RICO statute in a federal lawsuit, will work this time? It didn't work the other time, apparently, when it's been invoked.

JEFF ANDERSON, PLAINTIFF'S ATTORNEY: Well, listen, this time, I'm telling you, that the Catholic bishops in America are acting like racketeers. I can prove it. And they're obstructing justice. They have been doing it for a long time. And that's why in this case, RICO is appropriate.

BLITZER: You know, RICO has been used largely over the years to go against mobsters. How do you feel about making these kinds of allegations against clergy, Catholic priests and bishops?

ANDERSON: Well, how I feel isn't important. But what is important is they're acting like mobsters. Mobsters are criminals who infiltrate legitimate businesses and engage in a pattern of racketeering and obstruction of justice, bribery and aiding and abetting of crimes. That's what the Catholic bishops are doing in America. If they're acting like mobsters, they have to be held to account like mobsters. And that's why RICO applies here.

BLITZER: And you're saying all the bishops in the United States are part of this alleged conspiracy? Almost all of those bishops are men of the highest dignity and kindness.

ANDERSON: Well, we're saying, in this lawsuit, that three diocese and each of the bishops of those three diocese are named conspirators in this case.

BLITZER: What evidence, Mr. Anderson, do you have that those bishops that you've named in this lawsuit, those specific bishops in those three diocese, played any role in any conspiracy or cover-up?

ANDERSON: All three of those bishops received notice of O'Connell's (UNINTELLIGIBLE) behavior as early as 1967. And all three of those bishops, in concert, engaged in secret settlements of claims such as this in 1995. All three of those bishops, as well as the other bishops, have maintained secret files of child molestation for years. All three of those bishops have sided. All three of those diocese have been conspiring to keep this a secret, in concealing child sexual abuse for years. And in this case -- in fact, Bishop O'Connell in this case, had been conspiring to keep this kid quiet up until three days ago. Three days ago.

BLITZER: All right. Mr. Anderson, stand by. I want to bring in Catherine Crier. She's a host from "Court TV," a former judge. Catherine, how much legal basis does this lawsuit apparently have?

CATHERINE CRIER, "COURT TV": I think Jeff has probably got a good case here. We've had two dismissals, but that happened with the tobacco industry, the HMOs. And attorneys are keeping this action going toward these sorts of enterprises. And it's becoming successful.

I think it was the mid-'90s when the Supreme Court ruled that, in the abortion clinic cases, the pro-life movement that was crowding the doors and keeping patients away, was violating the RICO statute. So you're beginning to see this kind of expansion. And sooner or later, as with the tobacco litigation, this sort of action may well be accepted in such cases.

BLITZER: A lot of our viewers, Catherine, are probably asking why are these private lawsuits being filed? Why aren't government attorneys, general, or district attorneys, why aren't they getting involved in these kinds of allegations?

CRIER: Well, that's a good question. I think that it probably is the kind of case that you ought to bring in the authorities. I was back in Dallas in the '80s, with a multimillion dollar resolution. We just showed the case of Father Geoghan on "Court TV." And Bishop Law wrote the letter to Father Geoghan, basically saying, "I know how tough this is for you," despite that Bishop Law knew what this man had been doing since the late '70s, and had moved him from parish to parish.

So you've got a long history with the church. And it's not an indictment of everyone in the church. But you certainly have a presumption of knowledge among the elites, given the amazing array of cases that have come out across the country in the last 20 years.

BLITZER: All right, Catherine, stand by. I want to go back to Mr. Anderson for just a moment. Mr. Anderson, a lot of the viewers out there are probably also saying people will come forward, make allegations now against the Catholic Church, simply in the hope of collecting a lot of money. How do you prevent that from happening, and how do people know that your clients aren't simply doing that?

ANDERSON: Well, we've got corroborated evidence that my clients are not doing that. And those that are willing to come forward and break the secret, when they do, really it's an act of courage. And I don't have people coming forward just to get money. It's very painful to come forward with this secret. And when they do, it's an act of courage.

It's not an act of mercenary motive. It's simply an act of truth speaking. They have been keeping these secrets and living in silence for a long time. So the burden still falls on the victim and the plaintiff to prove these cases that abuse occurred, and in this case, O'Connell did it. And we'll do just that, and we have in every case.

BLITZER: All right. Jeff Anderson, the lawyer leading these lawsuits, Catherine Crier, from "Court TV," thanks again to you as well. Appreciate it very much.

Let's move now to the Middle East. Another suicide bombing, a deadly shooting and another round of U.S.-sponsored talks aimed at ending 18 months of fighting between the Israelis and the Palestinians. The Israeli military says soldiers shot and killed an armed Palestinian as he was crawling among bushes form Gaza toward the Israeli border. Our Jerusalem bureau chief, Mike Hanna, joins us now live with details.

MIKE HANNA, JERUSALEM BUREAU CHIEF: Well, Wolf, a third round of talks was held today between Palestinian and Israeli security chiefs, attempting to get agreement on how to implement a cease-fire on the ground. The talks were mediated by U.S. envoy Anthony Zinni. There is a blueprint on the table. That's the Tenet Plan, drawn up by the director of the CIA nearly a year ago. Both sides have agreed to it in principle, but they cannot agree on how to implement it.

Earlier in the day, Zinni met with Palestinian leader Yasser Arafat. Harsh words were reportedly exchanged at that meeting, with Zinni making clear his belief that Arafat is not doing enough to stop attacks by Palestinian militants and to prevent the activities and planning of such attacks by these Palestinian militants.

Another act of violence too in the course of the day, a Palestinian suicide bomber killed himself in an attack on an army checkpoint in the West Bank. Two Israeli soldiers were slightly injured. All of this, the day after a massive suicide bomb attack in Jerusalem, in which three Israelis were killed, dozens were injured.

This attack, says Israel, is evidence that Yasser Arafat was not doing enough to meet his pledges, in terms of a proposed cease-fire. But Israeli agreed to further cease-fire talks, in the hope that Zinni could get the sides to reach agreement.

Well, no agreement as yet. However, the security chiefs will meet again early next week, possibly on Sunday, in yet another attempt to get a truce in place. Back to you, Wolf.

BLITZER: Mike Hanna in Jerusalem. Thank you very much.

And have you ever thought what it must be like living in Israel, faced with the daily threat of being killed by a suicide bomber? "The New York Times" correspondent, Serge Schmemann, came very close to being a victim in yesterday's deadly attack in Jerusalem. Here's an excerpt from his front-page account in today's "New York Times." "Between 1995 and 1998, when I worked here last, there were nine suicide bombings. Now they are constant, and the bravado of those earlier years is gone. Parents try to keep children out of popular cafes or malls. People get off buses if a suspicious man gets on. When a siren is heard, people wait to see if others follow. More than one means they've struck again."

Serge Schmemann joins us now live from our Jerusalem bureau. Serge, thanks so much for joining us. And tell our viewers where you were, precisely what you saw, at the time of that bombing on King George Street in Jerusalem yesterday.

SERGE SCHMEMANN, "NEW YORK TIMES": Yes, hello, Wolf. I was very near where it happened. I had gone into a bakery and found that I had no money in my wallet, so I crossed King George Street, walked down to a corner, and had just rounded a corner in search of an ATM, when the explosion came.

And, as I've really covered a lot of these, I've interviewed a lot of victims. But when you're there, it's completely different, because the explosion is just deafening. And the panic that sets in, and the fear all around you. The people rushing, the emergency people who come rushing in.

So I glanced back and realized that the bomber had set himself off literally two doors down from the bakery where I had been less than a minute earlier. So it was indeed a close call, and it puts all of these bombings in quite a different perspective for me.

BLITZER: Well, share with us, Serge, your perspective. What's different in your life now, having come so close to death?

SCHMEMANN: I don't know what's going to be different in my life, but I'll certainly appreciate far better what an effective weapon this really is. Because it happens in places where everybody has walked so often. King George Street is a thoroughfare that everybody uses.

So when you go back out there, when you're back out in the streets, when you're back out in all of these familiar places, you're really looking at people who walk past you much more carefully. You become much more wary of the spots that might be a target. You start thinking, is this a place where I should go? Is this a place where I should go? It certainly makes you just far more suspicious of those around you.

And for many Israelis, this has become very much a way of life. You know, when they walk to the malls, when they go to the movies, when they argue with their children about whether they should go to a cafe with friends. This becomes a constant part of your life. And I think that's what makes this weapon both so terrible and so terribly effective.

BLITZER: And so, this is another time you've been to Israel. You spent, what, three years as the bureau chief earlier. Now you're back to cover this story. I take it life in Israel today is totally different, not only in Jerusalem, but throughout the country, than it was when you were there last on assignment?

SCHMEMANN: It's totally different. The mood is totally different. The attitudes are different. Those a great sense of despair among Israelis. I think many Israelis feel that everything has been tried and it continues and it and it continues. The public opinion polls are very curious. They show Israelis agreeing to virtually every measure, as if to say yes, try this, yes, try this, yes, try anything.

There is just a great amount of tension in daily life. People are afraid of the streets. They cancel school trips. There are many roads that are considered unsafe, that people will not travel. People are nervous when their kids go off somewhere.

I was with a woman near the airport, and her daughter was on a plane and she just kept urging the plane to go, go, go -- you know, clear. And then she felt better, because she knew her daughter was on her way to a safe place. Obviously, people go on with their normal lives. But the mood is certainly very much different than when I was here before.

BLITZER: Serge Schmemann, a great reporter. When I woke up this morning and read your front page account in "The New York Times," I was moved. Good luck to you. Be careful over there. Be careful to all of our friends and colleagues over there, as well. Thank you very much for joining us from Jerusalem.

For more insight on the situation in the Middle East, I'll be speaking live with the vice president, Dick Cheney. That will this Sunday on "LATE EDITION." Our program begins at 12:00 Noon Eastern, 9:00 a.m. Pacific.

And how easy should it be for others to gain your medical records? Ahead, how a new proposal could result in your privacy being violated. Why has the international terror hunt hit a small southern town?

And who will take home an Oscar? We'll go live to the red carpet and get the latest buzz from a Hollywood insider.

But first, today's news quiz. Which awards ceremony has the most members who vote? Is it the Academy Awards, the Emmys, the Grammys, or the Tonys? The answer, coming up.

(COMMERCIAL BREAK)

BLITZER: Welcome back. Bush administration officials see it as the way to improve access to medical care. Opponents say it benefits major health corporations, at the expense of patients. At issue: a proposal to relax the rules protecting the privacy of your medical records. CNN's Elaine Quijano has a closer look.

(BEGIN VIDEOTAPE)

ELAINE QUIJANO, CNN CORRESPONDENT (voice-over): Right now if you get a prescription filled, the pharmacist doesn't need your written permission to give you that medicine. But under federal regulations set to take effect next year, anyone besides your personal physician, including other doctors, hospitals, pharmacies and insurance companies, will not have access to your records unless you give written consent.

Now the Bush administration wants to eliminate that requirement, to prevent what officials believe will be a bureaucratic mess.

CLAUDE ALLEN, HHS DEPUTY SECRETARY: We err on the side of the patients' protection, as opposed to the government requiring additional papers and signatures on forms.

QUIJANO: Allen says the rules requiring written consent will bog down patient care. He offers a different proposal.

ALLEN: We're requiring, under federal law, that when you sit down with a physician, that physician has to notify you of your rights: your right to what the information is, how they plan to use your health information.

QUIJANO: But some say written consent is the best way to protect a patient's right to privacy.

JOY PRITTS, HEALTH PRIVACY PROJECT: People should at least be able to sign a piece of paper saying, "yes, I know you're going to use my information in this way, and I agree that you're going to use it."

QUIJANO (on camera): Administration officials say there is now a 30-day public comment period. The new regulations take effect for most people in April of next year. Elaine Quijano, CNN, Washington.

(END VIDEOTAPE)

BLITZER: Joining us now from Atlanta is CNN medical correspondent, Dr. Sanjay Gupta. Sanjay, who is mostly going to be affected by this? A lot of speculation, minors might pay the biggest price?

SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: That's right, Wolf. That's one of the things that has certainly come to light, is that parents right now, as far as access to their children's medical records, don't have much access without consent from those children, even if you're under the age of 18. Under the new proposed provision, minors' medical records, including access to such things as abortion, drug treatment and other sensitive areas, might all be sort of open to the parents.

BLITZER: So if a teenager is trying to hide an abortion or some sort of drug treatment, he or she may not succeed after these go into effect. Is that what you're saying?

GUPTA: That's basically it. And that's something that some of the privacy advocates have certainly tried to bring to light, and the question, how smart that would be overall.

BLITZER: Some other people are concerned about how this will affect the workplace, especially employers' opportunities to gain access to private medical records.

GUPTA: And that has been a concern all along, Wolf. Even under the Clinton plan that was proposed a few years ago now. It's very interesting, if you look at some of the statistics, up to 25 people actually have access to your medical records after you get into a hospital or check into the doctor's office. So, quite a few people already. And that's been something that's been of concern.

But certainly, what Tommy Thompson and the Bush administration has said, is that, only for health care related purposes will medical information be released. And they've tried to be very diligent about that. Certainly there is the potential for abuse, as there was the potential for abuse under the old plan.

BLITZER: Sanjay, you're a doctor. Is this going to change the way doctors deal with patients?

GUPTA: I really don't think so. One of the things that sort of strikes me is, when patients come into the hospital, right now, even, oftentimes as part of their litany of pre-admission paperwork they sign a consent form that allows hospitals to go ahead and submit their medical records for treatment purposes, or reimbursement purposes.

A lot of times, quite frankly, Wolf, patients aren't even sure what they're signing. But that consent paperwork is often part of that. I really don't think that this is going to change how physicians practice medicine, or how patients get their care.

BLITZER: Dr. Sanjay Gupta, thanks, as usual, for joining us.

GUPTA: Thank you, Wolf.

BLITZER: Appreciate it very much.

And the terror investigation reaches an unlikely destination. Why federal officials went to Georgia.

And President Bush, headed for Peru. He says terrorists will not derail his travel plans. Will the security measures in place be enough to keep him safe?

(COMMERCIAL BREAK)

BLITZER: Let's check the latest headlines in our news alert. The Delta Airlines terminal at New York's La Guardia airport was evacuated for more than an hour this morning after a security breach. Officials say medical personnel transporting a patient weren't screened. Hundreds of passengers had to go though security again.

In Florida, police say they found about 22 pounds of cocaine worth $4 million hidden inside an airplane food cart. They were tipped off after the catering company that processes the carts noticed it weighed more than it should have. The cart came off an American Airlines flight at Miami International Airport.

And you can soon say goodbye to the 34-cent stamp. That's right. The price of mailing a first-class letter is going up again. The postal rate commission has authorized the rate to increase to 37 cents as early as this summer.

President Bush is urging world leaders attending the U.N. Development Summit in Mexico to demand political reform from poor countries in exchange for increased aid. He also warned poverty can help breed terror, and proposed a 50 percent increase in core development assistance to needy countries over the next three years.

From Mexico, President Bush travels to Peru for talks tomorrow in the capital, Lima, site of a deadly car bombing late Wednesday night. The blast, near the U.S. embassy, killed nine people and injured many more. The Peruvian interior minister says the bombing is linked to Mr. Bush's visit and the September terror attacks. CNN's Gary Tuchman is in Lima with more.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN CORRESPONDENT: Behind me, the U.S. embassy here in Lima. Right now the flag is at half-staff. You can see it's a heavily fortified building behind a high concrete wall. Absolutely no damage to this embassy from the car bomb, which was about 100 meters, or 330 feet, away.

But this is the street where the bomb went off, Santiago Umedo (ph). And there was a lot of damage here. You can see everywhere, security forces stand. And they're no just here for the president's visit. There's always a lot of security in Lima because of the terrorist problems they've' had over the years. But it's especially acute right now.

And right over here is where the bomb went off, where the flowers now sit. You can tell they have already paved the parking spot where the car was with new bricks. But the car that was actually sitting here was a taxi cab. What a local newspaper is reporting is the taxicab driver was car jacked. He was incapacitated by a man who put an injection into his neck. The taxi drive was later found, he's OK right now, but his taxi was brought here. A 110-pound bomb was placed under the taxicab.

It exploded, and you can see what happened to this hotel here. There are about 55 windows in the side of the building; they're all blown out except for a couple. Several of the guests inside this hotel were seriously wounded. Here, at the Banco de Credito, this bank is now open for business, despite the fact that they have no windows or doors. They have reopened after the Wednesday night's explosion.

But it was here when the bomb went off where a policeman who was guarding the U.S. embassy, a policeman with the city of Lima, was killed. What happened, there were two explosions. When the first one happened, the car caught fire. The policeman and the security guard ran over to put out the fire, then there was another explosion. They were both killed. An additional seven people were killed too.

Across the street, you can see more stores. Up there, the Rafael (ph) salon. They are trying to get it ready. Everything is boarded up, but it's surprising, the number of businesses that are open here right now.

Who has claimed responsibility for this? Nobody at this point. A lot of suspicion among Peruvian officials and U.S. officials is the Shining Path. The Shining Path guerrillas have devastated this country since the 1970s. But their leader was captured and jailed in 1992. Their activity had diminished, but over the last year or so they have been regrouping, and many people suspect this was the work of the Shining Path.

George W. Bush arrives here on Saturday. He'll be here for less than 24 hours. He becomes the first sitting U.S. president to visit the nation of Peru, and that's there's a lot of security for it.

This is Gary Tuchman, CNN, Lima, Peru.

(END VIDEOTAPE)

BLITZER: The curtain closes for one era of Britain's Iron Lady. Why Margaret Thatcher is ending her schedule of speeches and public appearances. And from virtual tours to actual security. We'll show you how one company is using new technology to enhance homeland defense.

(COMMERCIAL BREAK)

BLITZER: Former Prime Minister Margaret Thatcher is making some big changes in her life because of health problems. CNN's Robin Oakley has the latest now on the Iron Lady.

ROBIN OAKLEY, CNN CORRESPONDENT: Yes, Wolf. The news that the 75-year-old former primer minister was to quit the political scene and never speak in public again on the advice of her doctors following a series of small strokes was greeted with regret both by her political allies and her political opponents.

Her allies perhaps greeting it with some relief because she's overshadowed the three men who have led the Conservative Party after she did so.

It's not really perhaps the time to write her political obituary but I think it's a time when people are recalling some of her achievements -- winning three elections in a row, rescuing the Conservative Party from oblivion, winning back the Falklands after the Argentine invasion, winning back what she used to call "our money" -- British money from Europe and reforming Britain's trades unions.

She has, of course, been a big figure on the international scene as well. Very few Prime Ministers have an "ism" -- a philosophy named after them. But Thatcherism has been something that she's continued to export all around the world after ceasing to be Britain's Prime Minister.

And I think she will be remembered, of course, now that she's not going to speak in public again for some of those favorite sayings of hers when she said, for example, "You turn if you want to. The lady's not for turning."

And she greeted the news that she was in a minority of one in the British Commonwealth at one stage by saying that, "If it was 48 against one then I'm just sorry for the 48."

I think above all people will perhaps remember that favorite phrase of hers on her own economic policy, "There is no alternative."

Back to you, Wolf.

BLITZER: Robin Oakley in London. Thank you very much.

And from the Web to the workplace and even to the cockpit of a plane, we'll examine some new technology that's changing security and surveillance.

And the most popular name in the news -- Oscar. We're live from the red carpet with a look at security preparations and an inside scoop on who may take home the prized statuette.

(COMMERCIAL BREAK)

BLITZER: In the effort to leave no stone uncovered in the War on Terror, federal agents conducted a raid in north Georgia this week. The target? A chicken processing plant.

CNN's Brian Cabell explains.

(BEGIN VIDEO TAPE)

BRIAN CABELL, CNN CORRESPONDENT (voice-over): Mar-Jac Poultry in northern Georgia -- hardly seems like a business that might be into terrorism.

But earlier this week, U.S. customs agents seized financial records here.

DOUG CARNES, MAR-JAC POULTRY: Well I was surprised, to say the least. We were surprised but they -- the agents were fully cooperative. They were very professional and we were cooperative. And they got the documents they needed and they left.

CABELL: Officials here say agents specifically sought records of the company's corporate contributions.

JOHN VARDEMAN, MAR-JAC SPOKESMAN: All of Mar-Jac's corporate contributions have been made according to IRS-approved guidelines to IRS-approved non-profit organizations.

CABELL: Mar-Jac was just one of several properties raided by federal agents properties being investigated for possible links to Islamic terrorist groups.

The raid was part of Operation Green Quest, which the U.S. government says is designed to cut off funds to terrorist organizations. DON AMOS, HERNDON POLICE: A number of federal agencies served search warrants throughout northern Virginia and one in Georgia.

CABELL: All of the businesses, foundations and homes raided on Wednesday seemed to have financial connections to this man, Yaqub Mirza.

Mirza, a wealthy investor, was an officer with the now defunct SAAR Foundation, which raised money for various charitable projects in Muslim countries around the world.

The U.S. Customs Service says the raids were conducted without incident but some Muslim groups charged the raids were blatant harassment.

AYSHA NUDRAT UNUS, HOME SEARCHED: They broke the door and rushed into the house, told my daughter to drop the phone. And at that point they were -- the gun was pointing towards her.

They asked her to raise her hand and handcuffed her and then asked me to raise my hand and handcuffed me.

CABELL: Muslims who witnessed the raids said agents confiscated computers, passports, credit cards and bank information. No one was arrested.

Mirza has not yet responded publicly to the raids and did not return phone calls from CNN.

The U.S. government would not comment on whether Mirza (ph) is the focus of an investigation.

As for Mar-Jac Poultry, which is locally operated but not locally owned -- officials here say they just process chickens. They don't deal with politics and certainly not with terrorism.

Brian Cabell, CNN, Gainesville, Georgia.

(END VIDEO TAPE)

BLITZER: If you're planning on visiting any of the monuments on the Mall in Washington, DC, be sure to smile. The Park Service plans to install video cameras soon, which will be monitored around the clock. Officials say it's a necessary security measure.

But those cameras are not the only security devices in the works. Our Jeanne Meserve examines some new technology, which could have implications beyond mere security.

(BEGIN VIDEO TAPE)

JEANNE MESERVE, CNN CORRESPONDENT (voice-over): You might have used the technology on the Web to tour a tempting piece of real estate.

UNIDENTIFIED MALE: You can look at this picture and either love this house or eliminate it

MESERVE: Or maybe you browse through Elvis' Graceland or took a virtual vacation to Paris.

But now the IPIX technology that takes images from fish-eye lenses, de-warps them and weaves them together to give a 360-degree panorama is being used for security.

At the Salt Lake City Olympics more than 3,000 images were embedded in the computer programs used by emergency personnel and law enforcement, giving them, in essence, photographic maps they could use to size up a situation and strategize.

MAJOR STU SMITH, UTAH OLYMPIC PUBLIC SAFETY COMMAND: For instance, maybe you wanted to go in and tap into a fire panel or check where a cut off switch was. And that allowed you to actually go down the hall, go to that room, open the door, look around that room where the panel was without ever leaving your desk.

MESERVE: IPIX is also being used for surveillance. On the left, an image from a conventional fixed camera -- on the right an IPIX image that allows you to see an entire room simply by moving a mouse.

DAVE SOUTHARD, SENIOR VICE PRESIDENT, IPIX: The advantage here is in having a camera that doesn't pan, doesn't till, doesn't zoom mechanically. You have no maintenance issues, you have no breakdown and you're recording all of this data so you can look in any direction either live or after the fact.

MESERVE: Possible uses -- think about the crash of Egypt Air Flight 990. Did the co-pilot take the aircraft down intentionally? Archived images from an IPIX camera in the cockpit could solve mysteries like that by recording everyone's actions. It might even tip investigators off to mechanical problems.

SOUTHARD: You could get an image here that would allow you to zoom in and actually read every one of the controls.

MESERVE: IPIX can provide information along with an image like latitude, longitude, elevation and angles. It's being marketed to the Department of Defense to assist remote controlled vehicles and do battlefield surveillance.

The technology may be new but some of its applications are raising old questions -- should Americans be watched surreptitiously? Should the images be saved? Does privacy trump security or is it the other way around?

Jeanne Meserve, CNN, Washington.

(END VIDEO TAPE)

BLITZER: And who will be your choice for Best Picture? Could it be "Lord of the Rings"? It's just one of the movies that will be featured on Oscar night. We'll get some predictions coming up.

And protecting the stars and the ceremonies. We're live in Hollywood for a look at how security will be different this year.

(COMMERCIAL BREAK)

BLITZER: Earlier we asked, "Which awards ceremony has the most members who vote?" Is it the Academy Awards, the Emmys, the Grammys, or the Tonys?

Thirteen thousand members vote for Grammy winners. The Oscars come in third with just more than 5,600 voting members.

And all of Hollywood is in the Oscar countdown mode. The 74th Annual Academy Awards show takes place Sunday night in its new home, the Kodak Theater.

That's where we find CNN's Daryn Kagan. She joins us now live from the red carpet with a little bit of a preview.

Daryn, it's going to be different this year -- tell us why.

DARYN KAGAN, CNN CORRESPONDENT: It's going to be different in a lot of ways. First of all, Wolf, greetings from Hollywood -- right from Hollywood Boulevard, in fact.

The red carpet, for the first time, is going right down the middle of Hollywood Boulevard. And I'm right in front of the new Kodak Theater, the brand new venue, where the Oscars will be seen for the first time.

This is supposed to be a more intimate-feeling theater that brings the Oscars back to Hollywood.

One problem with intimacy in Hollywood -- that means fewer seats, that means a ticket crunch -- as many as 275 member of the Academy don't have tickets to go on Sunday.

I'll tell you who will be there here though -- plenty of security. It is incredibly tight. For instance, behind me you can see the bleachers. This is where the fans will sit. In the past I'm sure you remember seeing the fans camping out on the sidewalk just for the chance to be sitting in those bleachers and cheering on their favorite fans.

This year you had to fill out an application and agree to a background check. Four thousand fans asked for that privilege. Only 400 were granted it.

Also, I'll show you -- look here, Wolf -- one event, four credentials. That's just what it takes to do my job on Sunday. Back to you.

BLITZER: Daryn Kagan in Hollywood. A lovely place to be right now. Thanks for joining us. Let's get a little bit more on this story and who will take home the coveted world famous golden statuettes this year.

Oscar predictions are part of the fun as the Academy Awards approach. Joining us now from Los Angeles with some insight into what might called -- into who might be called to the podium is Chris Gardner of "The Hollywood Reporter."

Chris, thanks for joining us. Let's talk, first of all, about Best Picture. I want to go through the candidates. We'll put it up on the screen.

Best Picture -- "A Beautiful Mind," "Gosford Park," "In the Bedroom," "Lord of the Rings -- the Fellowship of the Rings," "Moulin Rouge." Who do you predict and why? Which picture will win?

CHRIS GARDNER, THE HOLLYWOOD REPORTER: Well, I wish I knew that. I think I'd be probably the most popular person in Hollywood this weekend. But if had to say it I would maybe predict -- "A Beautiful Mind" has a lot of momentum heading in. But I think even though the show is only two days away it's still too late to count out "Gosford Park", it's still too late to count out "Moulin Rouge" and also "Lord of the Rings." They've all won key awards heading in and so it's anybody's guess.

BLITZER: So you're basically -- if we had to press you, you'd put "A Beautiful Mind" right now?

GARDNER: Probably -- yeah.

BLITZER: All right. Let's move on and talk about Best Actor. The scorecard -- let's put it up on the screen. Russell Crowe for "The Beautiful Mind," Sean Penn -- "I am Sam"," Will Smith from "Ali," Denzel Washington -- "Training Day," Tom Wilkinson -- "In the Bedroom." Who looks like the front runner in your mind?

GARDNER: Well, this race in particular has come down to a two- man show between either Russell Crowe for "A Beautiful Mind" or Denzel Washington for "Training Day." Russell has won a lot of the key awards heading in as well but Denzel has always been a favorite of the Academy and from the public in general.

So I think that it's either between those two actors.

BLITZER: So can we squeeze you to make one prediction?

GARDNER: If you had to twist my arm -- probably Russell Crowe.

BLITZER: All right. We'll put a check up there for Russell Crowe. We're squeezing you I know.

Let's talk about Best Actress right now. The nominees are -- I always wanted to say that -- Haley Berry from "Monster's Ball," Judi Dench from "Iris," Nicole Kidman for "Moulin Rouge", Sissy Spacek for "In the Bedroom" and Renee Zellweger from "Bridget Jones' Diary." What do you think?

GARDNER: I think any time an actress like Sissy Spacek and delivers a performance like she did in "In The Bedroom," she's definitely a favorite. If I had to pick I would pick her but I think Nicole and Haley are both sentimental favorites as well. So this could be an upset for either one of those two actresses but right now I'd probably have to go with Sissy.

BLITZER: All right. While we're talking about best picture, I know you think "A Beautiful Mind" -- I squeezed you to make that prediction. But if "The Lord of the Rings -- The Fellowship of the Rings" were to win, would that be unusual given that this is a fantasy motion picture?

GARDNER: Yeah -- it would be -- it would be unusual a little bit because the Academy is a little bit more traditional. The voters are a little bit older and they usual go with movies like "A Beautiful Mind."

But "Lord of the Rings" was a great film and can compete so I wouldn't count it out, but it would be a little bit out of the ordinary.

BLITZER: Chris Gardner of "The Hollywood Reporter" -- we pressed you for some predictions. Thanks again for joining us.

GARDNER: Thank you.

BLITZER: We appreciate it very much. We'll see if you're right on Monday.

GARDNER: I hope so.

BLITZER: Actually, we'll find out Sunday night. And this important programming note -- Sunday night 7:00 p.m. Eastern -- CNN's coverage of the Academy Awards ceremony will begin. Daryn Kagan and Leon Harris -- they'll be your hosts. Please join us then.

And our Web question of the day -- which film will win the Oscar for the Best Motion Picture of the day? Will it be "A Beautiful Mind," "Gosford Park," "In the Bedroom," "The Lord of the Rings" or "Moulin Rouge"?

You can vote -- go there -- cnn.com/wolf. That's my Web page. While you're there let me know what you're thinking. There's a click here -- icon right on the left hand side of the page. Send me your comments. I'll read some of them on the air each day at the end of the program. That's also, of course, where you can read my daily online column -- cnn.com/wolf.

Let's get a preview of Lou Dobbs' MONEYLINE. Jan Hopkins is filling in tonight for Lou. Jan, tell us what's going on.

JAN HOPKINS, GUEST HOST, "MONEYLINE": Coming up, Wolf -- Paul Volcker, the man charged with changing Andersen, makes new recommendations to save the firm. We'll have the story.

And we'll talk to several Andersen employees about the future of the company. The United States orders all non-essential personnel out of Pakistan less than two weeks after two Americans were killed in a church attack. We'll have a live report.

And we'll take a special look at Hollywood -- the return of the glitz and the hype surrounding the Academy Awards. Variety Editor Peter Bart is our guest -- Wolf.

BLITZER: Thank you very much, Jan, we'll be watching. And in just a moment -- who will win the Oscar for best picture? Your picks coming up and learn why some of you are handing out accolades to the jurors in the dog mauling trial. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Our Web question of the day asked which film will win the Oscar for Best Motion Picture of the Year? "Lord of the Rings" came in first place with 44 percent of the vote, while "A Beautiful Mind" finished a close second -- 40 percent.

Not a very scientific poll but still interesting.

Yesterday we had some technical troubles bringing you the results of our Web question of the day. It asked, "Do you agree with the verdict in the California dog maul trial?"

As promised, we have the results of the vote -- 88 percent of you agreed with the verdict while only 12 percent disagreed.

A reminder -- once again, these polls are not scientific.

Time now to hear from you. Many of our viewers had comments on the verdict in that dog mauling trial. Peter writes this, "This is a clear political victory for people like myself who are responsible owners of protection and fighting breed dogs. For years we have been arguing that owners are responsible for their animals and that breed bans and other such measures are misguided. I hope this verdict puts the fear of God into irresponsible owners and breeders of these wonderful dogs."

Caroline agrees , "After living beside the owners of two Rottweilers and a Chow who refused to repair their fence and who didn't think their animals were a threat, I have only one thing to say to the jury -- thank you."

And from Alison, "It is this kind of irresponsible pet owner that makes it difficult for those of us who have well behaved dogs to rent apartments and to take our animals to public places."

And I'll be back in one hour with more coverage from here in the CNN War Room. My guest, the best selling author of "Taliban" and the just released "Jihad" -- Ahmed Rashid.

And don't forget Sunday on LATE EDITION -- Vice President Dick Cheney will join me. That's Sunday -- noon Eastern. Until then, thanks very much for watching. I'm Wolf Blitzer in Washington. "LOU DOBBS MONEYLINE" begins right now.

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