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Emergency Crews Rescuing People; PSU Board Meets After Scathing Report; JP Morgan Bad Trade Loss; Shooting People For Fun; Syria Moving Chemical Weapons; Massacre In Syria; Flooding Kills 19 In Japan; Police Hunt YouTube Motorcycle Rider; Dangers Of Running Red Lights; "Forbes" Young And Wealthy In Hollywood; Lenny Kravitz, Rocker And Designer; Military Dog Charity A Scam; A Hidden Passage
Aired July 13, 2012 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDERICKA WHITFIELD, CNN ANCHOR: Thanks so much.
Hello, everyone. I'm Fredericka Whitfield, in for Brooke Baldwin.
Happening right now, major flooding in a major city -- Houston, Texas -- deluged by with three inches of rain in three hours. A flash flood warning is in effect right now. Reporter Tim Wetzel with affiliate KHOU is in that standing water.
TIM WETZEL, KHOU REPORTER: Hey, guys.
The rain is starting to fall here in northwest Harris County. And this is something people do not want to see. You can see all the floodwaters just swallowing up this neighborhood I'm in here. Look at the water coming out of this nearby creek, just flowing over this sidewalk. And this very same body of water, this very same swollen creek, nearly took a man's life earlier today.
WETZEL (voice-over): But the water's rising and there's nowhere to go. Nearby, tow truck driver Archie Rains (ph).
ARCHIE RAINS, TOW TRUCK DRIVER: He can't swim. We called fire and rescue. They were taking too long. He was getting scared. So --
WETZEL: He's used to saving cars, but today he saved a life.
RAINS: Yes, the car was floating into the bayou. And waiting for the fire and rescue to show up or get the car.
WETZEL: Rains got into his tow truck and made it to Diaz (ph). He (ph) jumped into the water and helped the man to safety.
RAINS: Basically when he got down to the hood, I helped him down off the car, held his hand and hold his arms, carried him back towards my truck. We got him up onto my truck and he got in the backdoor of my truck and I drove him over here.
Diaz, shaken and soaking wet, tells us in Spanish he didn't see the high water sign or hear the people warning him to stop. RAINS: We all honked the horns at him. We all yelled at him. He had his window down. He just looked at us and smiled and just kept going.
WETZEL: After pulling some 50 cars out of the water today alone, Rains is hoping not to pull out any more people.
RAINS: Hopefully no one else goes in and does this.
WETZEL: And back here, where I'm standing, you can see sheriff's deputies have blocked off the road. They're trying to prevent people from going, at least in this neighborhood, down this street because it's just too dangerous. And now with this rain falling again, this is something people in this area do not want to see. In northwest Harris County, Tim Wetzel. Now back to you guys.
WHITFIELD: All right, thanks so much. Tim Wetzel with affiliate KHOU. We'll check in with meteorologist Chad Myers in just a bit as well.
All right, their school disgraced, their leadership questioned. The Penn State board of trustees is meeting right now, one day after hearing the results of a scathing independent report on the Jerry Sandusky scandal. Investigators lead by former FBI Director Louis Freeh took the board to task reporting this, quote, "the board also failed in its duties to oversee the president and senior university officials in 1998 and 2001 by not inquiring about important university matters and by not creating an environment where senior university officials felt comfortable," end quote, "and accountable." The trustees say they take full responsibility for those failings, but none of them actually plan to resign. Our Susan Candiotti is outside that meeting in Scranton, Pennsylvania.
So, Susan, there are critics who don't think some of the board members should actually stay. What is being discussed right now in that board room?
SUSAN CANDIOTTI, CNN CORRESPONDENT: Well, remember, this is not being held, this meeting, in State College. This is, as you indicated, at a satellite campus in Scranton. And right out of the gate, the chairman of the board of trustees here immediately addressed the Freeh report.
And Karen Peetz said that she acknowledged that Freeh report said that the people that were in very high positions here at Penn State University failed to confront a child sexual predator. And then without mentioning the names of those high officials named in the report, namely Former President Graham Spanier, Vice President Schultz, the athletic director, Tim Curley, and Coach Joe Paterno, she went on to say that there was a collapse in leadership, in her words, of a magnitude that should never be seen again.
And then the president of Penn State University, Rodney Erickson, said that he was horrified by the report and said that already the board is starting to implement some of the recommendations made by former FBI Director Louie Freeh. But they have a long road ahead of them and a lot of fallout from this scandal. Fred.
WHITFIELD: And, Susan, you also spoke with one of the trustees on the way into the meeting. What was said?
CANDIOTTI: Well this is Anthony Lubrano. Anthony Lubrano is a brand new member of the board of trustees. And he ran on a campaign by saying that Penn State University should apologize to Joe Paterno's family for firing him. And not only that, he said that the board should name is football stadium after Joe Paterno. So naturally we wanted to ask him what he thinks now after getting a chance to look at the Freeh report and hear about it. I also asked him a question about what people are saying about what should be done now. Here's part of what he said.
(BEGIN VIDEO CLIP)
CANDIOTTI: You know, there are calls today from Bobby Bowden himself, for example, to pull down the statue of Joe Paterno.
ANTHONY LUBRANO, PENN STATE TRUSTEE: Yes.
CANDIOTTI: What do you think of that?
LUBRANO: Well, as I think Karen Peetz said last night, or yesterday afternoon during the press conference, that's a Penn State community matter and the Penn State community will, you know, address it in due time. But you all know my feelings for Coach Paterno and as far as I'm concerned it's something that should stay.
CANDIOTTI: There are many calls to suspend the football program immediately.
LUBRANO: I have no comment on that.
(END VIDEO CLIP)
CANDIOTTI: Now, I also asked him about some of the critical findings in the Freeh report. According to Louie Freeh, that Joe Paterno knew there were problems with Jerry Sandusky, who, as you know, was convicted of being a child sexual predator. Problems with him going back to 1998. Hard evidence presented by this report. Anthony Lubrano said he has not had a chance to digest the report, but whatever it says, he said, I will say this, it won't affect, in his opinion, the legacy of Joe Paterno, but he said he might have more to say about that after he thoroughly digests this report.
WHITFIELD: Susan Candiotti, thanks so much, in Scranton, Pennsylvania.
All right, more news happening right now. "Rapid Fire." Let's go.
President Barack Obama's campaigning today in one of the southern states that he won back in 2008. Here's the president in Virginia Beach, Virginia. And here he is just a short time ago with a jab at his 2012 challenger Mitt Romney.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: When somebody said, let's let Detroit go bankrupt, we said, we're going to bet on American workers and American industry. And now GM is back on top and Ford and Chrysler are selling cars because we believed in that American promise.
(END VIDEO CLIP)
WHITFIELD: The president has a full afternoon in Virginia. He'll be campaigning later in Hampton and then this evening in Roanoke.
Condoleezza Rice for vice president. The Drudge report says Mitt Romney has narrowed his candidates and Rice is near the top of the list. She also led the list of candidates favored by Republicans in an April poll, but Rice recently told CBS it's not going to happen.
(BEGIN VIDEO CLIP)
CONDOLEEZZA RICE, FORMER SECRETARY OF STATE: I'm saying there is no way that I will do this because it's really not me. I know my strengths and Governor Romney needs to find someone who wants to run with him. There are many people who will do it very, very well and I'll support the ticket.
(END VIDEO CLIP)
WHITFIELD: All right, and a warning now, the video that you're about to see is disturbing. Police in Connecticut say they have arrested this group home worker seen here kicking a developmentally disabled adult in the stomach. Police say Anjelica Rivera (ph) turned herself in and admitted that she was the one in the video sent anonymously to authorities and the media. A state official told CNN the victim in the video is all right.
(BEGIN VIDEO CLIP)
TERRENCE MACY (ph) (voice-over): This is part of a larger set of circumstances that happened some many months ago, where there were several staff that were terminated.
(END VIDEO CLIP)
WHITFIELD: Rivera faces felony charges of unlawful restraint, cruelty and bias intimidation.
All right, we've got a lot more to cover in the next two hours. Watch.
Predawn crowds tired of the violence and tired of the deceit by the Syrian government. This one day after another massacre reportedly kills more than 220 people.
A charity for reuniting military service animals with soldiers raising millions of dollars. Our Drew Griffin is keeping them honest. Where did the money go?
(BEGIN VIDEO CLIP)
DREW GRIFFIN, CNN CORRESPONDENT: Can you tell us why you came on CNN and basically lied to our viewers about Ivey (ph) and Nugget (ph)?
(END VIDEO CLIP)
WHITFIELD: He's a singer, an actor, and now Lenny Kravitz the interior designer.
(BEGIN VIDEO CLIP)
LENNY KRAVITZ, MUSICIAN/DESIGNER: I think it just goes hand in hand with everything that I do creatively.
(END VIDEO CLIP)
WHITFIELD: Losses from botched trading at JP Morgan Chase are almost triple what we were first told. It is approaching $6 billion and JP Morgan chief Jamie Dimon says that's probably not the last of it. But the bad trades haven't stopped the bank from turning a hefty profit. Alison Kosik is at the New York Stock Exchange.
So, Alison, what's the reaction on Wall Street?
ALISON KOSIK, CNN CORRESPONDENT: The reaction is positive all around, Fredricka. You know, even with that $5.8 billion trading loss, that could still go even higher, Wall Street is pretty darn happy right about now. JP Morgan shares are up more than 5 percent. Because the way Wall Street sees it is, the worst is behind JP Morgan. That they knew these big losses were coming and now they sort of have at least a figure, even though they know it's going to go -- it's going to go probably bigger than this.
And even with this controversy, Fredricka, JP Morgan has still made $9.9 billion just so far this year. Plus, Jamie Dimon, the CEO of JP Morgan, said they may actually make more money on the trades that they're currently unwinding.
And one more thing. Business is pretty good at JP Morgan. It said it made double the number of small business loans in the second quarter. So the slowing economy isn't necessarily impacting demand for business loans.
WHITFIELD: And then what happened to the traders involved in all this?
KOSIK: Well, CEO Jamie Dimon is saying that the traders who were involved in this loss, they don't work at the bank anymore. They're not getting severance. Also, they could lose as much as two years of their income because they're going to be involved in what's called clawback, meaning they're going to have to fork over their pay, their bonuses, to try to pay for the losses that they were responsible for, I'm talk about in those trades. So that includes that so called "London whale." He was the first trader to gain attention with these risky bets. And this includes Ina Drew, who actually left the CIO office. She retired a couple of months after the bad trades came to light.
WHITFIELD: And so is JP Morgan, you know, still involved in the derivative trades that led to the losses?
KOSIK: And when, yes, when you talk about those derivatives trades, those are those big complex, risky trades. And, no, they are not doing those anymore. What it is doing instead is unwinding the original trades. And you have to remember, just because these trades were discovered, they can't just suddenly be shut off. This takes time to get out of those positions. And Jamie Dimon gave one example, saying that the bank has reduced, by 70 percent, its position in one of the obscure indexes. And what remains of it, he says, isn't that big of a deal. So right now they have about 30 percent exposure and Jamie Dimon doesn't seem to concerned about it at this point.
WHITFIELD: All right, JP Morgan stock is held by mutual funds. Many of us have in our retirement plans.
WHITFIELD: So how much impact has this had on 401(k)s, IRAs?
KOSIK: You know what, it's kind of hard to measure. But if you've got JP Morgan in your portfolio, that stock really hasn't taken a huge hit like you'd expect with such -- with such news like this. And JP Morgan certainly is held in a lot of our everyday investments.
If you look at the total value of JP Morgan shares that are in mutual funds, it's more than $50 million. In fact, the largest amounts are in three Vanguard funds. But you know, even with the 16 percent slide the stock has made since this loss came to light, shares of JP Morgan Chase, Fredricka, are still up about 4.5 percent for the year. So while you may not be where you were with JP Morgan before all this news came out, you're still making some money on this stock.
WHITFIELD: All right, Alison Kosik. All right, thanks so much, as always. Appreciate that.
WHITFIELD: Snipers in South Carolina. A couple of alleged gunmen are captured after police say they wanted to kill someone to see how it feels. The Spartanburg sheriff joins me next to tell us how it all played out.
(COMMERCIAL BREAK) WHITFIELD: All right, trying to kill people for kicks. That's what investigators in South Carolina say these two young men did. They are charged with three counts of attempted murder. And it's a blessing they apparently had bad aim. A teenage girl was hit. It could have been worse. Twenty-year-old Bryan Holder, that you would see on the left when there was a two-shot there, right there, and then 17-year- old Mattison Schomer allegedly fired shots in two separate incidents early this month. The girl, who was 19, is going to recover.
Investigators say the suspects laid in a field off an Ashville highway in Spartanburg County using a high powered rifle with a scope. Let's get the full story now from Spartanburg County Sheriff Chuck Wright, who is on the phone with us now.
So you say this case reminds you a lot about that sniper case that many people remember in the Washington, D.C., area, 2002, two shooters killing 10 people. What were some of the similarities here?
SHERIFF CHUCK WRIGHT, SPARTANBURG COUNTY, SOUTH CAROLINA (via telephone): Well, we had two individuals that thought it would be fun, so to speak, in their words, not mine, to lay in a field and experience killing someone. And if it hadn't been for some very good investigative work, and some -- an officer, one of our investigators paying attention to detail, he wasn't even working on that case and he solved this case for us. So this could have been potentially (INAUDIBLE) and there's no telling how many deaths could have occurred (INAUDIBLE). You know it's chilling, though, that some people want to do that. You know, you hear people talking about it sometimes. You know, kids will say things. But for somebody to actually go obtain a 30.06 rifle, which is a very, very powerful hunting rifle, and lay in a field and wait for their opportunity and then actually squeeze the trigger, that's pretty scary.
WHITFIELD: Yes. So, sheriff, now did these shooters, or at least one of them, actually confess to investigators that they were doing this out of sheer pleasure? That they just wanted to know what it felt like to shoot someone?
WRIGHT: One of the gentlemen is cooperating with us. The Schomer guy. He is actually cooperating with us. The other guy wants a lawyer. So we're going to have to, obviously, follow what the rules say about his rights. But, you know, one gentlemen says I'm sorry and the other one says, you know, you have no evidence. But we do and (INAUDIBLE) it is just baffling. When they told me about it -- when they told me about it, I was absolutely -- I was shocked. I mean I -- you hear of people getting angry, you hear of people doing things during a fight, or, you know, you catch your spouse running around on you, you beat somebody up, you do something that you didn't really mean to cause a death, but these young men didn't do it that way.
WHITFIELD: And so, sheriff, what did these suspects say, or at least maybe the one that's cooperating, you know, Mattison Schomer, the one with the goatee on the right there, what did he or they reveal about how they would pick their alleged victims?
WRIGHT: I don't really want to get into that because of the fact that we still got a little bit of work to do on this. I don't want to talk too much specifically about the case. But that was the message that we got, that this was just random. They didn't know any of these people.
WHITFIELD: Can you reveal what broke the case? What lead you to these suspects?
WRIGHT: Yes, I can. One of our investigators was working a property crime case and -- on a burglary over off the east side of town and he was paying attention to small details pretty much and one of the guys when he interviewed, he said, well, I'm going to help myself, I know something you probably need to know. So he starts talking and it went from there. It was pretty much by accident we broke the case, but it was good investigative work for him to pay attention to the things that had been going on around us in the county and just kind of keeping up with that kind of stuff. And he ran with it from there. It was very fortunate that we had an officer that was listening.
WHITFIELD: Spartanburg County Sheriff Chuck Wright, thanks so much. Incredible details on that story. I know there is much relief on the highways, or at least in that area, where the shootings were occurring. Thanks so much.
WRIGHT: Thanks. Thank you.
WHITFIELD: All right now this. It is being called the bloodiest day in Syria since protests began 16 months ago. Plus, Syrian's chemical weapons on the move. And who's controlling the stockpile?
And just a quick note for those of you heading out the door. You can continue watching CNN from your mobile phone. Or if you're heading to work, you can, of course, watch us from your desktop. Just go to cnn.com/tv.
WHITFIELD: All right, we're standing by for a live report on yet another massacre allegedly carried out by government forces in Syria. Please stay with us for that.
First, we've got another alarming story. This one concerning Syria's chemical weapons. The Assad regime has apparently started to move some of those weapons out of storage. Barbara Starr is at the Pentagon.
Barbara, what more do you know on this?
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Fredricka, let me tell you first, the Pentagon is not commenting on any of this at all. But we've spoken to a U.S. official who says, yes, we, the United States, he says, do believe that Syria has moved some of its chemical weapons in recent days. They still believe the chemical weapons are under the control of the regime forces, so that suggests it was a planned decision by the Syrians. And you see the sites there. Well disbursed across the country to move some of them.
This is, nonetheless, causing a lot of concern because nobody knows exactly why the Syrians did it. You know, did they do it just to consolidate the facilities in the face of all the fighting and the unrest? Are they doing it to taunt Washington? Are they, God forbid, doing it to prepare for some kind of attack? That's what's beginning to worry a lot of members in Congress.
I want to tell you that the chairman of the House Intelligence Committee, Congressman Mike Rogers, issued a statement saying, in part, quote, "loose chemical weapons in Syria are exactly the type of opportunity al Qaeda has been looking for. We cannot discount that the Assad regime could make a decision to use these weapons in an act of desperation and we must act accordingly."
So a lot of concern growing about what exactly Assad in Syria is up to with all of this.
WHITFIELD: So then potentially, Barbara, would the Department of Defense actually be considering how or whether to somehow swoop into that country to secure those weapons, should the regime crumble?
STARR: Right. What if the regime crumbs? What if you start to see through your satellites or other means those weapons really on the move about to be used against the Syrian people? What on earth do you do?
Well, right now at least, for now, the U.S. continues to rule out the use of force. But as we have reported before, the U.S. military, right now, is working very closely with the military in next door Jordan, right to the south of Syria, working with Jordanian special forces, getting them ready if they had to go in to be the first troops in to secure those facilities if it came to that, Fred.
WHITFIELD: All right, thanks so much, Barbara Starr, appreciate that, from the Pentagon.
Right now this horrible story that we alluded to a moment ago. Opposition groups are accusing the Syrian government of carrying out another massacre. This one occurred yesterday in a town of some 10,000 people in the province called Hama. Mohammed Jamjoom has this story for us from Abu Dhabi.
Mohammed, give us more on this.
MOHAMMED JAMJOOM, CNN CORRESPONDENT: Fredricka, we've really started to get very horrific details today from activists in Syria. They say that yesterday that Syrian tanks and security forces surrounded the town of Tremseh for several hours, that shelling ensued, that the shelling was relentless. That after the shelling of the town stopped, that the tanks, security forces, as well as pro-regime militias entered the town and they started slaughtering families there that were trying to flee the violence.
Now, we've seen some very disturbing videos begin to emerge today. Amateur videos. We must warn our viewers, it's very graphic and very disturbing what you see. One video shows people huddled around bodies inside, weeping, very distraught because of the people, they say, were killed due to this massacre. There's another video that shows body bags, that shows mass graves outside as people -- dozens of people -- are being buried, also, activists tell us, because they were killed during this massacre.
Now the Syrian government, for their part, continue to blame the violence in Syria on armed terrorists. They say that terrorists were in that town yesterday. The security forces went in to try to arrest those terrorists and that clashes there led to the death of about 50 people.
WHITFIELD: And so in the wake of this massacre, certain opposition figures are actually calling for the replacement of U.N. Envoy Kofi Annan. What are the circumstances there?
JAMJOOM: Today in Syria, Fredricka, you had lots of rallies that were reported across the country. Demonstrations in which the people that were demonstrating were calling for the removal of Kofi Annan as the envoy to Syria. Why? Because they are angry. They are angry at the U.N. They are angry at Kofi Annan. They say that ever since he's been involved in the Syrian process, that not only has the violence not decreased at all, but in fact it's actually gone up. It's escalated. There's been more killings the last several months. So they're very upset and they think that the U.N. and that Kofi Annan bears some responsibility in not protecting the Syrian people. Now we heard a short while ago from the Syrian national council chairman, that's the main opposition group for Syria. Here's more of what he had to say on this point.
(BEGIN VIDEO CLIP)
ABDULBASET SEIDA, CHAIRMAN, SYRIAN NATIONAL COUNCIL (through translator): This massacre falls under action planned by the regime to break the will of the Syrian people and to force them to accept the reality as it is.
These massacres target the country to force into a horrendous sectarian war. As for the Annan's plan, it proves day by day is failure. Truly, it is a thing of the past.
(END VIDEO CLIP)
JAMJOOM: Fredricka, we heard from Kofi Annan earlier, he said he was hoping that the U.N. observer mission that's there even though that mission has been suspended. That it would like to get to the site to try to investigate what happened, but they can't to do so until the violence ceases -- Fredricka.
FREDRICKA WHITFIELD, CNN ANCHOR: All right, Mohammed Jamjoom, thank you so much.
Heavy rain bringing terrifying bloods in Japan, the death toll and the damage straight ahead.
And back here in the U.S., cameras capturing a nasty accident right there. The weather was not a factor. We'll tell you what a driver did wrong.
WHITFIELD: In post apartheid South Africa, this week's "CNN Hero" has been living in a historic slum all of his life without realizing his dreams, but he's doing all he can to empower the next generation.
THULANI MADONDO, COMMUNITY CRUSADER: Since the apartheid, Kliptown has not changed. There is no electricity. People are living in shacks. Growing up in Kliptown makes you feel that you have no control over your life.
Many children drop out of school because they don't have the school uniforms and textbooks. I realize that the only way that Kliptown could change was through education.
I'm Thulani Madondo. I'm helping educate the children so that we can change the town together. We help the children by paying for their school books, school uniforms.
Our main focus is a program that would run four days a week. As young people who were born and raised here, we know the challenges of this community.
We're also doing a number of activities. We've got to come together for fun while we also come together for academics.
UNIDENTIFIED MALE: This program gave me a chance to go to school, they pay for my fees. A little can go a long way. One thing I like math and science and English.
MADONDO: I did not go to university, but I feel excited to help them.
UNIDENTIFIED CHILD: I am going to be an accountant.
UNIDENTIFIED CHILD: I am going to be a lawyer.
UNIDENTIFIED CHILD: I am going to be a nurse.
MADONDO: The work that you do in here is bringing change.
WHITFIELD: And remember CNN heroes are all chosen from people you tell us about. To nominate someone you know who is making a difference, go to cnnheroes.com.
Now as floodwaters rush though a city on Japan's third largest island, a month's worth of rain poured down in just eight hours in some places.
At least 19 people were killed, eight others are still missing. More than 500 homes were damaged and tens of thousands of people had to evacuate the area.
All right, catch him if you can. This guy was going over 180 miles an hour, weaving through traffic, all while filming himself. Now police in British Columbia are trying to track him down and they think they know who this guy is.
The 25-year-old randy George Stodd of Victoria, this video has gone viral with a million hits on YouTube. Stodd is facing charges that could see him locked up for five years.
All right, it's called a red light for a reason. Look at this car, yes, that one speeding through a red light in Rossell Park, New Jersey.
Slamming into another car, then going airborne, spinning around and then taking down a light pole. Thankfully, the driver actually made it out OK. Police released this video as a way to remind to drivers that stopping at a red light is a matter of life and death.
You heard a pleas to reunite military service dogs with the soldiers you left them behind in the battlefield, right? You donated millions so where did that money go? Our Drew Griffin is keeping them honest.
And singer, actor and now designer, Lenny Kravitz. Our Alina Cho gets exclusive access inside his Paris mansion next.
And they are rich, they're famous and some not even old enough to rent a car. "Forbes" just came out with the top paid entertainers under 30.
Number five, 27-year-old Katie Perry who made $45 million in the past year. Number four, Lady Gaga who's 26 and took in $52 million last year. Rihanna's in the third spot taking in $53 million and it's her first appearance, by the way, on the list.
So who leads it? That's straight ahead. And no, it's not Justin Bieber who leads it.
WHITFIELD: We're back with the top two highest paid entertainers under 30, and they all just happen to be the youngest. There he is, 18-year-old Justin Bieber is number two, bringing in $55 million in the past five years.
That's just two million less than the leader, that's 22-year-old Taylor Swift. Congrats to all of them.
All right, here's another name you know, Lenny Kravitz, famous for rock 'n roll, but interior design? In a CNN Special Fashion Backstage Pass, Alina Cho sits down with the legendary musician at his home in Paris to talk about his love for art that extends beyond music.
ALINA CHO, CNN CORRESPONDENT (voice-over): Lenny Kravitz, rock star, actor, interior designer? Why not?
LENNY KRAVITZ, SINGER/DESIGNER: I was always into my environment. You know, when I was a little kid.
CHO: I sat down with Kravitz at his palatial Paris home, a place he's called home for seven years. The four-story mansion is filled with all of his favorite things, art by Warhol, his four Grammys, photos of his late mother, actress Roxy Roper and the couch and chandelier he designed.
KRAVITZ: It always made me feel good. It made the music sound better, you know. The lighting was right. Everything was good. I think it just goes hanged in hand with everything I do creatively.
CHO: In 2003, he founded Kravitz Design. A residential, commercial and product design company with a real office in New York, with real workers and real projects.
KRAVITZ: It's the same way I make my music. It's the same philosophy. I'm very detail oriented. If you put me in a room that's perfect, except for one flaw, my eye goes right to the flaw. It's kind of a sickness, you know, my attention to detail. But that's the way I am.
CHO: He's designed condos and hotel suites in Miami, wall tiles, wallpaper and these chairs for cartel.
(on camera): Does one help the other?
KRAVITZ: Yes, because when I'm doing music. I need a break from music. It doesn't mean I want to stop being creative.
CHO: How do you keep it all straight, you're talking about tile designs and --
KRAVITZ: Absolutely, you have to.
CHO (voice-over): And this is just the beginning.
KRAVITZ: The plan is to make it a lifestyle brand, that's been, you know, my dream for this company, the same way you see Ralph Lauren. When people say that they enjoy something or something gives them pleasure, the music, a couch, whatever it may be. It's just a great gift to be able share something with other people.
CHO: Alina Cho, CNN, Paris.
WHITFIELD: All right, very cool stuff. You can watch Alina's special tomorrow afternoon, 2:30 Eastern Time.
And another quick programming note, coming up at 4:00 Eastern in "THE SITUATION ROOM," our Jim Acosta sits down with Republican presidential candidate Mitt Romney talking about his vice presidential selection, Bain Capital and when he'll release his tax records. Watch "THE SITUATION ROOM" later on today.
All right, a charity that played on human sympathy, reuniting military dogs with soldiers and then raising millions of dollars in the process.
Well, it turns out to be a sham. Drew Griffin is keeping them honest in an exclusive CNN investigation next.
WHITFIELD: The next time a charity asks you for money to help rescue an animal. Do your research. There's a woman who claims her charity helps reunite military dogs with the troops they served with overseas.
And she has raised millions of dollars doing it. Sound patriotic? Noble? Our own Drew Griffin found out otherwise and now, after tracking her down, he confronts her.
DREW GRIFFIN, CNN INVESIGATIVE CORRESPONDENT (voice-over): It is the televised appeal on CNN's HLN.
UNIDENTIFIED FEMALE: Our satellite to the troops today is actually live in the studio.
GRIFFIN: That so many of you found outrageous.
UNIDENTIFIED FEMALE: Sitting right beside Nugget is Terry with the SPCA and Ivy's down at my feet.
GRIFFIN: March of 2011, Terri Crisp with SPCA International was telling our viewers Ivy and Nugget were two bomb sniffing dogs who had worked for a U.S. contractor in Iraq and had been essentially abandoned by the company.
She rescued them and was trying to find them homes, along for the visit was an unwitting retired military dog handler. HLN anchor, Robin Meade understandably couldn't believe the story.
UNIDENTIFIED FEMALE: So how is it that they fall through the cracks and get stranded there? That's unthinkable to me.
UNIDENTIFIED FEMALE: It is unthinkable and that's why SPCA International is making sure that these dogs don't get forgotten. And that they get brought home.
GRIFFIN: It turns out Ivey and Nugget were not abandoned. They were donated taken from their adoptive homes in Iraq. A military contractor tells CNN after Terri Crisp asks for them.
The military contractor, Reed Security, told CNN they had no idea Crisp would use Ivey and Nugget as fundraising tools in the United States.
For weeks, CNN has been trying to track Crisp. First, we were told by her spokesperson she was unavailable. This week, we drove to Terri Crisp's rural home, down this dirt road in the foothills of California's Sierra Nevada and found Crisp driving straight toward us.
(on camera): Ms. Crisp, it's Drew Griffin with CNN. We'd sure like to talk to you.
(voice-over): Terri Crisp, dog in hand, got out of her car and walked right up to our camera and acted like she was about to answer our questions.
UNIDENTIFIED FEMALE: This is not the place to do an interview.
GRIFFIN (on camera): Well, what is the place to do an interview? Because we have been trying to get an interview with you for a long, long time specifically asking about "Operation Baghdad Pups."
TERRI CRISP, SPCA INTERNATIONAL: Stephanie Scott, our director of communications has communicated with you directly.
GRIFFIN: Yes, I understand that, but can you tell us why you came on CNN and basically lied to our viewers about Ivey and Nugget.
CRISP: You need to talk to Stephanie.
GRIFFIN: I think you need to talk to our viewers and explain to us what "Operation Baghdad Pups" is all about because it appears to be just a fundraising effort for your lifestyle and Quadriga Art quite frankly.
CRISP: Well, like I said again, you just need to contact Stephanie. All of our interviews are coordinated through her. We have offered to do them with you.
GRIFFIN: You've been on our air, Ma'am. You've told our viewers that Ivey and Nugget were abandoned military contract dogs, which we have confirmed they were not.
Basically lying to our viewers and I know you've gotten an outpouring of support and most likely money after that appearance. I mean, our viewers feel like they -- and so do we, CNN feels like we were lied to. Do you have any explanation for how that happened?
CRISP: Like I said, this is not the time and place. We're happy to talk to you. Everything has to be coordinated through our director of communications.
GRIFFIN (voice-over): Crisp is part of SPCA International, a group raising millions of dollars with its sympathetic fundraising campaign called "Baghdad Pups."
According to these IRS tax filings, SPCA International has taken in $26 million in donations over the past three years. The $23 million of that money has gone right into the coffers of the direct mail company Quardriga Art not towards rescuing military dogs.
What has it done with the rest of the remaining $3 million, SPCA International says it rescued about 447 soldiers pets from Iraq and Afghanistan. But Bob Ottenhoff, the president of the charity watch dog group, "Guide Star" says the numbers don't seem to add up.
BOB OTTENHOFF, PRESIDENT, GUIDESTAR: I can't understand how to connect the dots between how much money is spent on fundraising to how much money was spent on programming and what the sources of those revenues are. And I also can't really measure the impact of those organizations. What difference are they really making?
WHITFIELD: And our Drew Griffin tries one more time to get answers from Terri Crisp. He'll be joining us live to explain more on that, Drew.
WHITFIELD: Just moments ago, you saw our Drew Griffin confronting the manager of "Baghdad Pups." It's a charity that claims to reunite military dogs with the troops they served with overseas.
It's raked in millions of dollars in fundraising and now we're finding out it could be a scam. So how does the manager explain it? Drew Griffin gives her one more chance.
GRIFFIN: I'll give you one more opportunity to explain why you came on CNN and basically lied about those two, quote/unquote, "military contract dogs."
CRISP: Well, like I said, we would be happy to do an interview, but we have procedures in place and everything has to go through Stephanie. We have been in communication with you. We provided you with lots of information and you have taken a lot of that information and not reported it correctly.
GRIFFIN: Now is your chance, Ma'am.
CRISP: I would love to, but I said, you know, I'm an employee of SPCA International.
GRIFFIN: How much do you make?
CRISP: I can't answer any of your questions right now. Believe me I would love to.
WHITFIELD: Drew Griffin joining me right now. So Drew, why didn't she take the opportunity to just go ahead and explain? She kept talking about the communications manager, but then she kept talking to you as well saying the same thing over and over again.
GRIFFIN: She says she is an employee of SPCA International. We have been dealing with this communications director, manager, whoever she is trying to set up an interview with Terri Crisp for weeks.
Getting nowhere, which is why we finally came to her, but she says she can't do it without the communications manager to give her the OK. It's just a lot of -- WHITFIELD: So you have tried the communications manager time and time again, and even after that confrontation with Terri Crisp? And the communications manager says --
GRIFFIN: Call back and said, no way now most likely because we were so rude. Because we did this that it's unlikely Terri Crisp will ever respond to our questions and to our viewers about why she, again, came on our air and talk to us about these dogs.
And a lot of our viewers did respond and that's kind of who were asking for, Fred, the people who have given money to this group.
WHITFIELD: So they're standing strong, the organization, saying that this is a legitimate business. We are indeed -- or are they at least saying that or reiterating we are indeed reuniting puppies with troops?
GRIFFIN: They are saying that they are taking troops pets, certainly not military dogs, but pets and bringing them home to reunite them with the troops.
But they also admit to us that this fundraising drive that they're under where so much of the money is going through a private company isn't quite where they would like it to be.
But they tell us in the long run this fundraising drive will eventually give them the money to do the job.
WHITFIELD: Is there a fraud investigation under way?
GRIFFIN: There is not as far as we can tell an investigation of SPCA International going underway. The state of California is reviewing, actively reviewing a settlement agreement that Terri Crisp agreed to with another animal charity.
That she started back in -- it's called "Noah's Wish." She was involved with that saving Hurricane Katrina pets. The state of California found that everything was not perhaps up to snuff.
Signed a settlement agreement that charity had to give back $4 million and Terri Crisp had to agree not to be a director or a board member of a charity for five years.
We've been told the AG's office out there is actively reviewing whether or not she stock up with that agreement.
WHITFIELD: Interesting. All right, Drew Griffin, thanks so much. A fascinating story and a fascinating confrontation. Appreciate that.
All right, stopping the drug war is hard, thanks in part to the hundreds of small tunnels that are hand dug under the U.S.-Mexican border.
Now our cameras take you inside the passageway that's being called the most sophisticated. CNN's Casey Wian is there.
CASEY WIAN, CNN CORRESPONDENT: This is the way agents first discovered this tunnel a few days ago, under this giant container of water.
Over here, you can still see 55 gallon drums that contain the dirt that was dug out of this tunnel, stretching 240 yards across the U.S.- Mexico border.
UNIDENTIFIED MALE: This is the most sophisticated one I have seen in Arizona.
WIAN: And what makes it that.
UNIDENTIFIED MALE: Because of the way that it's designed. It's not -- most of the tunnels we have in Arizona, those are just digging through dirt to get into the sewer system, using the sewer system and then punching out again.
This one, I mean, when you look down that hole, you're going to see it is completely four by six all the way, plywood all the way around it, rebar in there, re-enforced.
WIAN (voice-over): The tunnel is so narrow and so deep. CNN photojournalist John Toroguey and his camera needed to dissent separately. Each with the help of a harness.
(on camera): It gets even smaller?
UNIDENTIFIED MALE: Well, actually, to crawl through, it goes a whole lot further.
WIAN: There's actually no dirt in here, it's very clean, there's light, there's electricity, and there's a fan even.
(voice-over): U.S. authorities have found 156 cross border tunnels since the early 1990s. Lately, they have become more sophisticated as drug detection technology above ground improves.
(on camera): Agents had this area under surveillance since January when the tunnel was actually discovered. Arizona Public Safety officers pulled over a pickup truck on the highway north of here discovered 39 million pounds of methamphetamine. After interviewing the occupants of the truck, they linked it to this facility and they now have three suspects in custody.
Casey Wian, CNN, San Luis, Arizona.