Friday, February 20, 2004

Judge in Stewart case says securities fraud case is problematic; Prosecution rests in Martha Stewart case; Same-sex couples flocking to San Francisco for marriage licenses; Supreme Court to hear Padilla case; Jane Roe fights against Roe v. Wade in Fifth Circuit;

Judge in Stewart case says securities fraud case is problematic; Prosecution rests in Martha Stewart case; Same-sex couples flocking to San Francisco for marriage licenses; Supreme Court to hear Padilla case; Jane Roe fights against Roe v. Wade in Fifth Circuit;

Aired February 20, 2004 - 22:00 ET

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

AARON BROWN, CNN ANCHOR: Good evening again everyone. I've never said that before.It is a rare TV series that has an ending at all. Mostly they just get cancelled. It is even more rare to really care about how a TV series ends. "Mary Tyler Moore" had an ending. I don't remember anyone debating beforehand what the ending should be. "M*A*S*H" ended and people talked about it but after, not before. "Sex in the City" is different. People are invested in the ending. It matters to people even, of course, as it doesn't matter at all. It's a TV show but all around the country this week people talked about Big and the Russian and Carrie and the rest as if they were real people with real lives. We did it here, Molly saying this, Kate saying that, the men chiming in as well, though I'm not sure we really felt our opinions mattered very much. It's Friday and "Sex and the City" is a perfect Friday story. It's the dessert tonight. We serve the entree first and the entree was well prepared as it turns out by Martha Stewart stuck in a drama of her own, Allan Chernoff covering, Allan a headline from you tonight.

ALLAN CHERNOFF, CNN CORRESPONDENT: One of Martha Stewart's best friends raises reasonable doubt about her damaging testimony, the kind of doubt that can build confidence for Martha Stewart now that the government has rested its case -- Aaron.BROWN: Allan, thank you. We'll get to you at the top tonight.Now, San Francisco, gay marriage in the courts, again CNN's David Mattingly is covering, David a headline today.

DAVID MATTINGLY, CNN CORRESPONDENT: Aaron, gay marriage opponents failed for a second time to stop same-sex couples from getting marriage licenses in San Francisco, which is now no longer the only place where gay couples are getting married in this country -- Aaron.

BROWN: David, thank you.Dallas next, abortion and the legal challenge to Roe v. Wade being fought by Jane Roe herself, Ed Lavandera worked the story for us, Ed a headline.

ED LAVANDERA, CNN DALLAS BUREAU CHIEF: Aaron, nine years ago the woman known as Jane Roe changed her mind. She was once a staunch supporter of abortion rights but now she's vowing to return to the Supreme Court to end legalized abortion. We'll explain what she's doing -- Aaron.

BROWN: Ed, thank you.And now the search for Osama bin Laden and how it might be different this time, our National Security Correspondent David Ensor on that so, David, a headline.

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT: Aaron, a large number of military and intelligence assets are being assembled on both sides of the Afghan-Pakistani border. What's different this time is that a lot of those assets are Pakistani and there may be incentive for the president of Pakistan to really try to help to find Osama bin Laden.

BROWN: David, thank you. We'll get back to you and the rest shortly.Also coming up on this Friday edition of NEWSNIGHT, as we said, we're going to talk about sex, well "Sex in the City" that is and for those of you who are saying what is "Sex and the City" and why are they making such a fuss about it we've taken care of that as well. Nissen condenses five years into five minutes.The rooster, who loves "Sex in the City," will stop by for your morning papers for Saturday.And a very special bonus segment tonight, the man who turned humiliation into stardom. It is Friday, all that and more in the hour ahead.We begin with the Martha Stewart trial, the prosecution resting today, fair to say though it might have been better had the prosecution rested yesterday before the defense could take a shot at one of their star witnesses and possibly inject some reasonable doubt into what yesterday sounded like very damning testimony.Here again, CNN's Allan Chernoff.

(BEGIN VIDEOTAPE)

CHERNOFF (voice-over): After hearing potentially devastating testimony from one of her closest friends, Martha Stewart got a slight reprieve. Mariana Pasternak under cross-examination questioned her memory of Martha Stewart bragging about her broker. "I do not know if that was a statement made by Martha or if it was a thought in my mind" Pasternak conceded. On Thursday, Pasternak recalled Stewart telling her, "Isn't it nice to have brokers who tell you those things," referring to broker Peter Bacanovic tipping her that ImClone chief Sam Waksal was trying to dump his stock. Prosecutors have argued that tip led Stewart to sell her ImClone shares.Prosecutor Michael Schachter tried to regain ground by asking for Pasternak's best recollection to which she responded "I believe Martha said it." Shortly thereafter, prosecutors rested their case.As defense attorneys made motions to throw out charges, Judge Miriam Cederbaum said the securities fraud count against Ms. Stewart is problematic. She assigned homework for the weekend, written arguments on why the charges should or should not be tossed.

ROBERT MORVILLO, DEFENSE ATTORNEY: We're going to do some research and writing.

CHERNOFF: And you go and ask to throw out all of the counts?

MORVILLO: All of the counts.

CHERNOFF: What do you think the odds of success are?

MORVILLO: Oh, I don't evaluate the odds of success. That's what the judge gets paid for.

CHERNOFF: But on the securities fraud in particular?

MORVILLO: That's what the judge gets paid for. She'll read what we write and then she'll make a decision as to what she wants to do.

(END VIDEOTAPE)

CHERNOFF: Peter Bacanovic's legal team now takes center stage. They'll spend next week presenting their case and then Martha Stewart's lawyers get their chance -- Aaron.BROWN: Let's just explain as briefly and as simply as we can what the securities fraud charge is because it is a pretty novel charge in this case.

CHERNOFF: In fact, that's exactly the word that the judge herself has used to describe this. Normally, securities fraud deals with insider trading but Martha Stewart is not charged with criminal insider trading. Rather, the securities fraud charge here addresses Martha Stewart allegedly trying to defraud investors in her own company by saying she did nothing wrong in selling her ImClone stock.

BROWN: So, by proclaiming her innocence she was defrauding the stockholders, the government alleges, of her own company. Allan, thank you. You'll be back in court next week. Jeffrey Toobin is here. Well, well, well, well, well Mr. smart lawyer

.JEFFREY TOOBIN, CNN LEGAL ANALYST: It was a great moment in court. When that -- when she said in court, well maybe it was Martha talking and maybe it was in my own head, you could sort of hear this ripple go through, what did she just say? And, no, she really -- it was an embarrassment for the prosecution but... 

BROWN: How did this happen?

TOOBIN: Well, I mean obviously -- and they went through some of her prior statements. She had waffled on this in the past. She was much more definitive in her direct testimony than she had ever been before but it is worth pointing out though this part of the statement kind of went south on the prosecution, the main thing she said about Martha Stewart that Martha Stewart knew that the Waksals were dumping their stock, which is the most incriminating thing she said, that was not challenged on cross-examination. So, that still stands well for the prosecution.

BROWN: OK, let me just be slightly argumentative, just a citizen here.

TOOBIN: By all mean.

BROWN: If I think, if I as a juror think a witness is flaky, I question everything that witness has said.

TOOBIN: Absolutely. It's like what Barry Scheck said in the O.J. Simpson case when he said, you know, when you find a bug in your spaghetti you don't just remove the bug from the spaghetti. You throw out the whole bowl and there is that possibility that they will do that with this testimony.

BROWN: How novel is the -- well, I want to go back to this one more second. They interview this woman, the prosecution does, and do they have to turn over the notes?

TOOBIN: Yes.

BROWN: So, the defense knows that she's been a little flaky.

TOOBIN: Right.

BROWN: Not a legal term here and I'm not trying to disparage her but that's how it sounds. They know that.

TOOBIN: Yes. They do know that.

BROWN: So they know to go after her.

TOOBIN: They know to go -- I mean Robert Morvillo in his cross- examination he went right to that. And, if I could just digress for one minute, my favorite moment in her testimony, she said well -- the lawyer said, you know, you were sitting on a chair. She said no, it wasn't a chair it was a chaise. 

BROWN: That is going to warm you to the hearts of the jury right there.

TOOBIN: That's a great sort of Martha touch there.

BROWN: That's perfect. The securities fraud charge, I said novel. It sounds almost unfair to say if you declare your innocence that you are committing a crime.

TOOBIN: It is unfair and, as Allan said and as the judge said, it is an unusual way of charging it. But, I mean in fairness to the prosecution they put on securities analysts who said, look, the Martha Stewart company came to us and said don't worry about the company because Martha is innocent. She didn't do anything wrong. Don't worry about our company. So, they made a direct tie between the proclamation of innocence and an impact on the Martha Stewart stock price. That doesn't get rid of the fundamental unfairness that seems to bother you but it's not a made up idea that her declaration of innocence had potential impact on the stock price here.

BROWN: But what the judge did not allow is any investor to come in and say he or she relied on that statement before buying or selling Martha Stewart Living.

TOOBIN: That's right. That was one area that she precluded and you could see that every time the securities fraud charge came up in court the judge was uncomfortable with it. I mean, you know, part of this case is very straightforward, false statements, obstruction of justice. The securities fraud has always troubled the judge and sometimes these judges they sort of hope the jury acquits on that count so they don't have to worry about it.

BROWN: All right, 30 seconds, not asking you to predict an outcome here, just tell me how the prosecution did overall.

TOOBIN: Better than I expected. I thought this was a weak case and I thought Faneuil did much better on the witness stand that many of us expected and Annie Armstrong, Martha Stewart's secretary, talking about Martha altering that message on the computer, then saying restore it. It was all a lot stronger than I expected.

BROWN: And the defense team is formidable.TOOBIN: It is but don't count on a long defense case. I wouldn't be surprised if this case goes to the jury by the end of next week.

BROWN: Really because the stockbroker side of this has been endless.

TOOBIN: It's been somewhat endless but, you know, I don't think there are going to be a lot of witnesses. There's maybe going to be a -- there was one witness today, a fairly minor witness. But, you know, defense cases they always talk bit. We're going to have a lot of witnesses. I don't think there are going to be a lot of defense witnesses. You could see summation by the end of the week.

BROWN: Control room is going to kill me, yes or no Martha testifying?

TOOBIN: No. 

BROWN: Thank you. Have a good weekend.

TOOBIN: See you.

BROWN: Thank you.On to San Francisco where the rush on gay weddings continues and where a court battle is looming, three lawsuits have now been filed since the city began performing marriages eight days ago. Today the judge combined the cases into one but he also denied again a request to stop the weddings; reporting from San Francisco CNN's David Mattingly.

(BEGIN VIDEOTAPE)

MATTINGLY (voice-over): For the second time, opponents of same- sex marriage in San Francisco left a California courtroom unable to stop the city's gay marriage spree.

MATHEW STAVER, LIBERTY COUNSEL ATTORNEY: How can the mayor enforce laws on the citizens of San Francisco when the mayor and his staff are potentially breaking ten civil laws, the criminal code, and two constitutional provisions?MATTINGLY: A judge refused to issue a restraining order saying the nearly 3,200 marriage licenses issued to same-sex couples so far created no irreparable harm.

THERESE STEWART, CHIEF ASSISTANT CITY ATTORNEY: We're glad the court is going to hear the merits of those issues and that the court did not in the meanwhile stop the city from allowing gay marriages to happen and we're proud of the city for taking that stance. But, by the way, this isn't just about San Francisco. This is about the whole country.

MATTINGLY: Gay marriage opponents expressed a sense of urgency asking the judge to hurry the case along. Each married couple now conceivably can challenge local governments, employers, and insurance companies to provide benefits equal to heterosexual couples.Already, hundreds married in San Francisco have returned to homes in other states. Meanwhile, same-sex couples lined up for marriage certificates Friday in the small town of Benalillo, New Mexico. Similar lines can be expected just two and a half months from now in the state of Massachusetts.

(END VIDEOTAPE)

MATTINGLY: All this while the really tough questions still have not been addressed in San Francisco in court. Is the city breaking the state law that defines marriage between one man and one woman or are same-sex marriages truly protected under the state constitution -- Aaron?

BROWN: This whole issue it seems like in just the last three months has moved at the most rapid speed. Are they still, are couple still flocking to San Francisco to get a marriage license?

MATTINGLY: We saw lines outside City Hall today just as we've seen for days now but you will not see those lines come Monday morning when the city opens for business. People will have to get an appointment so all the marriage licenses will be handled by appointment, which is a sign that the city is trying to get back to business as usual.

BROWN: David, thank you for your work this week, David Mattingly in San Francisco.Ahead on the program tonight, tracking Osama bin Laden, CNN's David Ensor on U.S. plans for a renewed offensive to catch the leader of al Qaeda.And later, a new twist in the Roe v. Wade story as the woman at the heart of that case goes back to court on the other side.From New York this is NEWSNIGHT.

(COMMERCIAL BREAK)

BROWN: In the new normal dirty bombs and enemy combatants are phrases that have come to seem familiar, which is scary in itself. The two phrases have collided in the person of Jose Padilla, a suspected terrorist who has been held in a military brig for almost two years without being charged with anything and without access to anyone, including a lawyer.Mr. Padilla is a U.S. citizen born in Brooklyn. He wasn't captured on a battlefield but arrested in Chicago. No matter how it turns out it is an extraordinary case, which the U.S. Supreme Court has decided to hear, reporting for us, CNN's Kelli Arena.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): Despite being a U.S. citizen, Jose Padilla has been held indefinitely in a naval brig in South Carolina. He's never been charged and hasn't seen a lawyer.Now the Supreme Court will decide whether the president can take away such constitutional rights during wartime, calling into question the key powers the Bush administration says it needs to fight terrorism.

DONNA NEWMAN, PADILLA'S ATTORNEY: I am confident that they will likewise find, as the Second Circuit found, that the president does not have the authority he now claims, this unbridled authority he now claims he has.

ARENA: Padilla designated an enemy combatant, was initially picked up at Chicago's O'Hare Airport. He is accused of plotting to set off a radioactive dirty bomb inside the United States. The government says he "represents a grave danger to the national security." 

ALICE FISHER, FORMER JUSTICE DEPARTMENT OFFICIAL: Military detention is to deprive the enemy of combatants that will go back and fight against our soldiers and fight with the enemy and whether they are here or whether they are abroad the war powers and international law command that those individuals who are intent on attacking us can be detained.

ARENA: Just last month, as it became clear the Supreme Court would get involved, the Pentagon said it would allow Padilla to see his lawyers. His lawyers say they expect that within two weeks but the government will monitor the meeting and certain topics are off limits.(on camera): How and why certain individuals are designated enemy combatants has never been fully explained by the Bush administration but CNN has learned the White House counsel is expected to shed some light on the process in a speech next week.Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

BROWN: On now to the search for Osama bin Laden. For more than two years now American forces have been stymied by the support he enjoys along the border of Afghanistan and Pakistan where it's believed he's hiding that and Pakistan's reluctance to fully help, along with the diversion of manpower to Iraq has hampered the search. But things may, may finally be changing. That's the promise at least, the hope.Here's CNN's David Ensor.

(BEGIN VIDEOTAPE)

ENSOR (voice-over): Along Pakistan's border with Afghanistan an all-out effort is underway to hunt down Osama bin Laden, believed to be hiding out in the remote tribal region.On a secret mission last week, U.S. intelligence chief George Tenet spent a day in Islamabad meeting with Pakistan's military and intelligence leaders. General David Barno, the top U.S. soldier in Afghanistan did the same last week, a full court press on Pakistan, which is making some headway. More Pakistani forces are moving into the border region and they are warning tribal elders there to stop sheltering al Qaeda or else.

LT. GEN. DAVID BARNO, COMMANDING GENERAL, COMBINED FORCES COMMAND, AFGHANISTAN: They're obviously adding that enforcement mechanism for those that do not comply that include I think destruction of homes.ENSOR: Pakistani troops are getting U.S. intelligence and logistics help discretely provided, says a respected Pakistani observer, by U.S. military and intelligence personnel on the ground.

AHMED RASHID, AUTHOR, JOURNALIST: Local tribal leaders have seen them. I think they were there in very small numbers, maybe a dozen or two dozen. I think there will probably be an increase in that.

UNIDENTIFIED MALE: Are there any U.S. troops operating in those areas with the Pakistani military?

BRIG. GEN. DAVID RODRIGUEZ, DIR. OF OPERATIONS, JOINT CHIEFS: No, they're not.UNIDENTIFIED MALE: Never have been?

RODRIGUEZ: No. No.

ENSOR: The denials provide some political cover for Pakistan's General Musharraf in a nation where may sympathize with al Qaeda. CIA spokesman also decline all comment but knowledgeable sources say a few military personnel on assignment to other U.S. agencies, like the CIA and FBI, are on the ground in Pakistan.

RASHID: They're helping with communications, with logistics, with satellite information all that kind of thing.

ENSOR: On the Afghan side of the border, U.S. forces are beefing up their numbers and making plans for a spring offensive against al Qaeda and the Taliban.

BARNO: We're moving in the direction of cooperative operations on both sides of the border, a hammer and anvil approach if you will.

ENSOR: Barno has said he hopes to find bin Laden this year. Bush administration officials deny it but some see politics behind the push.

PAT LANG, FORMER CIA OFFICIAL: There's just a greater kind of almost desperation on the part of the United States government to lay their hands on Osama bin Laden before -- in the light of our electoral cycle.

(END VIDEOTAPE)

ENSOR: Bin Laden's evaded capture before. U.S. officials are making no predictions but under a thick cloak of secrecy a major effort is now being ramped up -- Aaron.

BROWN: David, thank you, David Ensor in Washington tonight.A few more quick items before we head to break starting with parliamentary elections in Iran. Hardliners expected to win a majority of the seats, reformers have been knocked off the ballot, opposition papers shut down, voters intimidated. No word yet on turnout or actual results but no one is expecting any miracles of democracy.Americans and other foreigners spent the day packing up and leaving Haiti with rebels promising more attacks over the weekend. An international delegation today circulated a proposal for ending the bloodshed but neither the government nor the rebels were buying. In the meantime, the U.S. government has begun putting air marshals on all flights in and out of Haiti to prevent hijackings.Japan is tightening security at airports, nuclear plants and government facilities. No official explanation why but officials say the country now is at the highest terror alert level since American forces invaded Iraq.Coming up on NEWSNIGHT later we will check morning papers. This being Friday we'll throw in a tabloid or two.Up next an interesting twist in the Roe v. Wade story but will it mean anything to a woman's right to choose, a break first.This is NEWSNIGHT.

(COMMERCIAL BREAK)

BROWN: Miranda, Sullivan, Brown, it's a measure of landmark legal rulings, cases whose reach is so broad that a single name becomes a reference point, like Roe, Jane Roe, the woman who challenged a Texas law and transformed the legal and cultural landscape.It wasn't until after the U.S. Supreme Court issued its ruling legalizing abortion that we learned her real name, Norma McCorvey, but today a Federal Appeals Court agreed to hear from her again three decades later. She's trying to overturn the ruling she fought so hard to win.Here's CNN's Ed Lavandera.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: I want to thank all the wonderful women who are standing here.

LAVANDERA (voice-over): For nearly a decade, Norma McCorvey has been working to undo her role as Jane Roe in the case that legalized abortion. This case to you it wasn't settled 30 years ago?

NORMA MCCORVEY, "JANE ROE": No, it wasn't, not at all.

LAVANDERA: McCorvey and a team of lawyers will argue before the Fifth Circuit Court of Appeals that Roe v. Wade should be overturned. Her argument is based on what she calls 31 years of watching women suffer from the harmful effects of abortion.

MCCORVEY: We filed over 5,000 pieces of testimonies and documentations from women throughout the country who have gone through legalized abortion. A lot of their lives have been just absolutely miserable since then.

LAVANDERA: McCorvey's opponents say they're shocked the Fifth Circuit Court even agreed to hear this request. They say time and the lack of new evidence should keep this case closed.

DAVID SCHNECK, ATTORNEY: Cases eventually are over at some point and whether the parties like the result initially or decide they don't like it later they don't get to go back and start over and decide that they want a different result.

LAVANDERA: If the courts do decide to reopen the Roe v. Wade case, many legal experts say it could open a Pandora's Box perhaps reopening the door to countless other cases.S

CHNECK: The question was not about Ms. Roe or Ms. McCorvey in 1973. The question was about what the Constitution said, so there's really been no change in facts that would be relevant to reopening the case.

LAVANDERA: McCorvey doesn't worry about that.

MCCORVEY: We didn't come in to sit down at the table. We come in to kick the table over and say no. We do not want this. We do not want to see children die or women suffer from the psychological and emotional abuse that is brought on by a termination of pregnancy.

(END VIDEOTAPE)

LAVANDERA: McCorvey and her attorneys will make their case to the Fifth Circuit Court in New Orleans on March 2. If that doesn't work out, McCorvey says she will continue and try to get this case back before the Supreme Court.Now abortion rights activists are paying close attention to this but everyone we spoke with today says that they don't really see that this has much of a chance of succeeding -- Aaron.

BROWN: Did anybody you talk to today remember a similar situation like this where the court overturned a decision it had already made based on the plaintiff's change of mind?

LAVANDERA: No one that we spoke with today. In fact, they say that's why they're so convinced that this is going to have such a hard time. It would have to take an extraordinary amount of perhaps new evidence but they say that the fact that 30 years have gone by is really going to be the strongest part of their case come March 2.

BROWN: Ed, thank you very much, Ed Lavandera in Texas tonight.Before we go to break a few other stories that made news today around the country, President Bush made another recess appointment to the federal bench today, another controversy naming Alabama Attorney General William Pryor, an outspoken abortion opponents to the U.S. Appeals Court for the Eleventh Circuit. Democrats had blocked the nomination with a filibuster ten months ago. It is the second time this year the president has bypassed Congress to appoint a judge.Democrats, including the chairman of the Democratic National Committee today urged Ralph Nader not to seek a third party candidacy in the upcoming presidential election. Mr. Nader is expected to announce this weekend whether he will run as an Independent. Many Democrats believe Mr. Nader cost them the White House in the year 2000 when he ran on the Green Party ticket. A flight from New York to Morocco was diverted to Maine today after a passenger phoned his wife and told her he was being abducted, a story he repeated to the FBI and shouldn't have. It was a hoax. The man's wife in Chicago had reported him missing on Valentine's Day. He apparently made up the kidnapping story to explain why he was boarding a plane to Morocco. He's been charged with making false statements to the FBI. We suspect he has some explaining to do at home as well. University of Colorado has named longtime assistant football coach Brian Cabral to be the interim head coach while Gary Barnett is on paid leave. Coach Barnett suspended after making disparaging remarks about a female football player who has accused a former teammate of sexual assault. Six women in all have made allegations involving the University of Colorado football program. No charges have yet been filed. Up next on NEWSNIGHT, "Sex and the City." And for those who need a catchup on what this is all about, a handy-dandy review of it all.Around the world, this is NEWSNIGHT. 

(COMMERCIAL BREAK) 

BROWN: A small confession: I have never seen an episode of "Friends." I have never seen "ER." I have never saw "Law & Order." "Cheers" was background noise. The first episode of "Seinfeld" I ever saw was the last. I've seen a few since. I hear the series did pretty well.Two years ago, I found myself at a fancy luncheon event. I was seated next to this stunning woman. We had a lovely chat. She was smart and funny. She said she was an actress. Her name was Kristin Davis. I actually asked her if she had been able to find any steady work. The table went silent. So it was an odd and embarrassing way that I came to know "Sex and the City." But like many of you, I missed a lot. And like many of you, I, too, got sucked into the last season. For those of you who like me aren't exactly sure what all of this fuss is about, we offer the entire series really fast, reported by Beth Nissen. 

(BEGIN VIDEOTAPE) 

BETH NISSEN, CNN CORRESPONDENT (voice-over): First, the cast of characters, they are Carrie, who writes a newspaper column about sex and relationships, Samantha, who is in public relations when she's not in bed, Miranda, a sardonic attorney, and Charlotte, more traditional and prim, although she still -- let's just say she dates a lot. Here's a season-by-season breakdown of what happens to these four brunch-sharing, cosmo-sipping, lover-seeking gals. Try to keep up. Carrie meets Mr. Big, played by the guy from "Law & Order." Big is not his real name. Carrie just calls him that because he's a big shot with a big bucks and a big limo, also a big little black book of other women. That breaks Carrie's heart. Carrie and Big break up. Meanwhile, Samantha dates a 20-something, a married man, and Charlotte's doorman, among others. Miranda goes through a dating dry spell. And Charlotte obsesses about getting married. OK, that's season one. Season two, Carrie realizes she's not over Big and they get back together, but then:

(BEGIN VIDEO CLIP, "SEX AND THE CITY") 

CHRIS NOTH, ACTOR: I may have to move to Paris. 

(END VIDEO CLIP) 

NISSEN: They break up again. Meanwhile, Samantha dates a 70-year-old, her neighbors, and Charlotte's brother, among others. Charlotte doesn't find a husband, but she does find some nice shoes. Miranda starts seeing Steve, but she's a lawyer and he's a bartender. And it doesn't work, so they break up, but then they get back together. Carrie starts to date Seth, who is Bon Jovi. But then she runs into Big, who is back from Paris with his beautiful young fiance. OK, season three. Carrie, trying to forget Big, starts dating Aidan, a furniture designer who is that guy from "Northern Exposure," although he hasn't yet hit it big in "My Big Fat Greek Wedding." Meanwhile, Samantha dates a firefighter, a short man and her office assistant, among others. Charlotte meets a rich doctor, Trey, who is the guy from "Twin Peaks." They get engaged and then get married. Miranda and Steve move in together, but Steve wants to have a baby and Miranda doesn't, so they break up again. 

(BEGIN VIDEO CLIP, "SEX AND THE CITY") 

CYNTHIA NIXON, ACTRESS: This isn't going to work, Steve. 

(END VIDEO CLIP) 

NISSEN: Carrie cheats on Aidan with a now married Big, then confesses to Aidan, which breaks his heart. They break up. On to seasons four and five. Carrie and Aidan get back together, move in together and get engaged. But then Carrie gets cold feet and they break up for good. She sees Big once more, but then he moves to California. Meanwhile, Samantha briefly tries a relationship with someone who has XX chromosomes, but she soon goes back to XY. Newlyweds Charlotte and Trey have bedroom problems. Trey moves out. Charlotte starts to date her divorce attorney. Miranda and Steve see each other again for one night, and Miranda gets pregnant. She has a baby boy and becomes a single working mother. Carrie writes a best-selling book. She starts to date a fellow author, Jack, who is the guy from "Office Space," a cult film prized by cubical workers everywhere, which brings us to the current season. Jack breaks up with Carrie by post-it note. Meanwhile, Samantha develops a real relationship with a waiter/actor Smith, who lovingly stands by Samantha while she goes through chemo for breast cancer and looses her hair. Charlotte converts to Judaism, marries her divorce attorney. They try to have a baby, but can't. Charlotte gets a cavalier King Charles spaniel instead. Miranda takes up a handsome doctor who is the guy from "L.A. Law," but then gets back together with Steve. She and Steve get married and move to Brooklyn with their son.Seemingly over Big at last, Carrie gets serious about a Russian artist, Alexander Petrovsky. He is Mikhail Baryshnikov. Petrovsky tells her he's moving to Paris -- what's with all of the men in Carrie's life moving to Paris? -- and asks her to move with him. 

(BEGIN VIDEO CLIP, "SEX AND THE CITY") 

MIKHAIL BARYSHNIKOV, ACTOR: I'm hoping you will come and be with me. 

(END VIDEO CLIP) 

NISSEN: She does, despite her friends' misgivings and a last- minute, last-ditch visit from Big. Big then meets with Carrie's friends, asks what he should do.

 (BEGIN VIDEO CLIP, "SEX AND THE CITY") 

NIXON: Go get our girl. 

(END VIDEO CLIP) 

NISSEN: And that's where things stand at the end of episode 93, with only one more episode to go. Me, personally, I'm guessing it will be a "Big" finish. Beth Nissen, CNN, from "Sex and the City" city. 

(END VIDEOTAPE) 

BROWN: We are nothing if not efficient around here. OK, now that you're caught up on it all, when we come back, the real question: How should it end? This is NEWSNIGHT. 

(COMMERCIAL BREAK) 

BROWN: The other night -- I don't know why I'm being so confessional today -- but some friends and I were talking. The conversation essentially boiled down to these two questions: Where do we fit in the universe and what are marshmallows made of? It didn't quite get to where Carrie should end up and with whom Carrie should end up, so we'll deal with that tonight. Joining us, the head of the original programming for the Trio Network, Andrew Cohen, who's been with us before. Filmmaker Liz Garbus is here, Tia Williams, beauty editor of "Teen People" and the author of "Accidental Diva," and in Washington, Ali Wentworth, the co- host of "Living It Up With Ali and Jack." It's good to have all of you here to see you all.Take 15 seconds, no more each, Ali, starting with you. How should it end? And then we'll deal with the whys. 

ALI WENTWORTH, CO-HOST, "LIVING IT UP! WITH ALI AND JACK": I think that Carrie should be walking in Charles de Gaulle Airport by herself, get on a plane back to New York, a single woman, having not made two bad mistakes. 

BROWN: All right. We'll come back to that. Tia, how should it end? 

TIA WILLIAMS, BEAUTY EDITOR, "TEEN PEOPLE": I think that Big should fly to Paris and rescue her. 

BROWN: You want Big? 

WILLIAMS: I want Big. I want Big. (LAUGHTER) BROWN: All right. I'm intrigued by that. Yes, Liz, how should it end? 

LIZ GARBUS, FILMMAKER: She's got to come home and marry New York and marry singledom. She's got to get rid of Big. She's got to get rid of Alexander Petrovsky and be married to New York and a single lifestyle. 

ANDREW COHEN, HEAD OF ORIGINAL PROGRAMMING, TRIO NETWORK: Back in New York, city she loves, making Big work like hell for her for her love and repent. And, by the way, I want to find out Big's real name. 

BROWN: Do we not -- has he never had a name? 

(CROSSTALK) 

COHEN: We don't know. But I think what's going to happen is, it's going to end with her saying something crazy like Orville or something, and then Liz and millions of other women are going to name their child Orville, you know. It's going -- the world is going to 

(CROSSTALK) 

BROWN: All right, Ali, let's go back to you. 

WENTWORTH: OK. 

BROWN: It's important, in quotes, we'll use the word important, to you that she end up with neither of them because? 

WENTWORTH: Because it's not -- it wouldn't be an authentic ending to what the show has been over the years, which is a single gal having sex in the city.

BROWN: Yes. 

WENTWORTH: And I think what she's left with are two men that, if she ends up with Big, it sort of sets back her -- her sort of feminist, you know, politically incorrect person that she is. And if she ends up with Mikhail Baryshnikov, then I feel for her. She's going to be scrubbing dishes in Paris while he's...

COHEN: Forget it.(CROSSTALK) 

BROWN: No one likes him. 

(CROSSTALK) 

GARBUS: They have zero chemistry.This is a woman who gave up her job. She's giving up her friends for him. There's never even been so much of a discussion. He's betraying her inner soul. And the truth is, I think "Sex and the City" is really a show about the family and about alternative families. And he didn't embrace her family, because her family are her four friends. And Big got it right when he said, a guy can only hope to play fourth to you guys. That's why Big has a shot. 

(CROSSTALK) 

WENTWORTH: She also has nothing in common with Petrovsky, nothing in common. 

(CROSSTALK) 

COHEN: Well, the great thing that they did -- and we've analyzed this like crazy at Trio, because we're obsessed with pop culture. And what we decided is that, a couple weeks ago, they gave everyone a great excuse to hate Petrovsky, because Miranda started to hate Petrovsky.

BROWN: Right. 

COHEN: And they saw, she's making the bad move. And you understood why she was making a bad decision. But the audience was let in, on, OK, it's cool to hate this guy. 

BROWN: I need to deal with the Big question for a second. Tell me -- here's what I know about Big, Tia, is that there is this scene the other day where she says to him, every time I'm happy, you come back and mess it up. This is like every -- honestly -- bad guy that every good girl has ever fallen for.

GARBUS: Right, so why do you want him? 

WILLIAMS: She's never been happy. She's never been happy with the other guys that she's dated. 

BROWN: So she's only happy with this bad boy? 

WILLIAMS: She has always been in love with him. He's the love of her life. They will never be finished. And I feel like every guy she's dated has been a direct reaction to something about Big. 

GARBUS: Well, she only wants him because he's unavailable. I think that's really the enticing thing. 

(CROSSTALK) 

BROWN: Excuse me, but that's also true in this case of him, it seems to me. He only wants her because she's flown off to Paris with Petrovsky. 

(CROSSTALK) 

COHEN: But, by the way, this is one of the reasons this show is so great, and this is one of the reasons we're talking about this right now, because you make mistakes. And, in relationships, they're not always great. And that's why -- and this is a perfect example. They're not always on the same wavelength. They're going to keep coming back to each other. And they're going to hopefully find peace and contentment with each other. 

BROWN: Hang on. Ali? 

WENTWORTH: The relationship with Big is a neurotic relationship. I can only speak from my personal experience, but I've heard that relationship.

BROWN: That's my favorite part. 

(LAUGHTER) 

WENTWORTH: I've had that relationship in my past and it was completely dysfunctional. And then I had Petrovsky in the form of a French director with the smoking-cigarette, model-looking daughter, the whole thing.

(LAUGHTER) 

WENTWORTH: And, ultimately, the relationship with Mr. Big is not going to get better. It's going to be fraught with insecurities and dishonesty.And Petrovsky needs to go find himself a 14-year-old. And then, ultimately, when you get these two men out of your life, you meet the one. For me, it was my husband. 

BROWN: Yes, it was. 

COHEN: I hope so. 

(LAUGHTER) 

BROWN: Liz, both you and Ali, it seems to me -- well, three of you -- are -- you've created a scenario where she -- you will not let her be happy in love. 

GARBUS: No, I think that, in fact, she is really 

(CROSSTALK) 

BROWN: I wrote this down. "She should marry her singledom."

GARBUS: OK.First of all, the show is about being single, and it has been. And all three other women are paired off right now. BROWN: Right. 

GARBUS: So, in order for the show to be true to its ideals, she has to end up single and happy. And the truth is, these three other women, that is her family. and HBO shows, "The Sopranos," "Six Feet Under," they are about families adapting to the modern world. Here's another family. And that's where the family is going to be restored, but it's going to be this family of girlfriends. 

(CROSSTALK) 

BROWN: Tia. Tia.

WILLIAMS: I don't know how realistic that is, though. It's very much a theory, though, isn't it, that a 38-year-old woman can walk off into the sunset happy to be single and not be in love? I mean, I don't know -- I don't know a woman who would make that choice, honestly. 

WENTWORTH: Aaron, can I say one thing? 

BROWN: Of course. 

WENTWORTH: Can I just say one thing?If I wrote this last episode, I would have her blow off Big, say goodbye to Petrovsky. She's in the plane. She lands in Kennedy Airport and she bumps into something -- somebody that we would think, wow, he looks pretty good and you leave it at that. You leave us with, wow, will she end up with this guy or will she, again, marry singledom and have a series of relationships of different lengths? 

BROWN: So there should be a question mark at the end that will allow us to fill it in however we choose to? 

WENTWORTH: Yes. 

COHEN: But I think the one question mark that should not be there -- and I think that this is what the show is about -- to me is about these four women who are in search of contentment, in whatever shape contentment finds itself. And so I think that Carrie will be content. And I'm hoping that her contentment is, you know, being back and making him work for it. But I think it will be a question mark. 

(CROSSTALK) 

COHEN: Big. 

(CROSSTALK) 

BROWN: Kind of quickly here, does it need to end? If it didn't end, would it be unsatisfying?

(CROSSTALK) 

WILLIAMS: ... a lot more episodes. BROWN: Is that unique series where it has to end? Tia? 

WILLIAMS: If it didn't end, would it? 

BROWN: Yes. I don't mean if they kept producing them. I mean if there wasn't a clear ending to it.

WILLIAMS: I think that it would be very disappointing if there wasn't a clear ending. 

GARBUS: I would be very, very happy if she was single, but there were some prospects out there, that she was happy with her computer and her friends and her writing and her career, but maybe there was somebody in her future. 

(CROSSTALK) 

COHEN: I think it will end with some kind of a question mark leaving the door open. 

(CROSSTALK) 

GARBUS: Yes, maybe Big, probably not, I'm hoping, but maybe some other(

CROSSTALK) 

WENTWORTH: Hey, guys.

(CROSSTALK) 

WENTWORTH: They've got a movie in the works. So, you know, if they end with a question mark, they'll resolve it in a feature-length film that will come out next summer. BROWN: Works for me. You guys work for me, too. Come back any time. Thank you very much. We'll check morning papers after the break. 

(COMMERCIAL BREAK)

 (ROOSTER CROWING) 

BROWN: OK. 

UNIDENTIFIED MALE: Okeydokey.

UNIDENTIFIED MALE: Okeydokey.

BROWN: Time to check morning papers from around the country and around the world. Everybody calm down now. Some of these I haven't seen before. Here we go. 

"The Philadelphia Inquirer" begins thusly. "High Court to Hear Dirty Bomb Case." We told you about this earlier. I can't think of an issue in my lifetime quite like this, so I'm glad the court's going to settle it. Down in the corner, "New Jersey Suspends Execution." See, I don't believe they have had any. "At issue, whether the effects of a lethal injection can be reversed. The ruling is considered a landmark." I think the whole point of a lethal injection is that it can't be reversed. Call me crazy. "The Times," British newspaper. "The Most Controversial Story Ever Told." This is the Mel Gibson movie. This is going to be huge. It opens next week, I guess. And it's been the most interesting campaign for a movie I've ever seen. And it's pretty interesting stuff. This thing's going to be huge. "Fire and Fury." 

"The Times Herald-Record" in Upstate New York. Haiti is the lead. I just think they like the picture. That's my guess. And they call and tell me I'm crazy. They wouldn't be the first people to do that. "San Francisco Chronicle." "Gay Weddings Clear Second Hurdle. Same-sex Marriages in New Mexico as Well. Both Sides Return to Court March 29." For now, that goes on. And let's do a couple of the tabloids, because it's Friday and because we like to and because, why not? 

"The National Enquirer" leads thusly. I never know with "The Enquirer" if these things are right or not, OK? "Siegfried Walks Out On Roy." I hope that's not right. We've been talking about relationships here. OK, "The Weekly World News," I have a better idea whether these are accurate or not. Their lead today -- or this week. I think it's a weekly, "Princess Diana is Alive," for all of you who have wondered. "She's recovering in a French convent from the deadly crash that killed her lover." Inside, a story that you will not find anywhere else. "Nutty Kim Jong Il Announces" -- that's the word Aaron -- "Announces North Korean Mission to the Sun." But this is what I loved about it -- quoting the Korean leader, the North Korean leader -- "We'll go at night when it's not so hot.

"The weather in Chicago tomorrow according, to "The Chicago Sun- Times," is "retrogressing." Beats me. I guess it's going to get colder. We've got one bonus story tonight. We'll get to that after the break. 

(COMMERCIAL BREAK) 

BROWN: Finally from us for the week, a cultural story again. Want to know how important TV is in our day and age? This is how important. Not only can it make or break you. It can make and break you at the same time. Meet the man to whom it has happened. 

(BEGIN VIDEOTAPE) 

BROWN (voice-over): What to call University of California engineering student William Hung? The most successful failure there ever was, perhaps? 

(BEGIN VIDEO CLIP, "AMERICAN IDOL") 

WILLIAM HUNG, CONTESTANT (singing): She bangs, she bangs. 

(END VIDEO CLIP) 

BROWN: He did fail, spectacularly, on TV's "American Idol."

(BEGIN VIDEO CLIP, "AMERICAN IDOL") 

SIMON COWELL, JUDGE: You can't sing. You can't dance. So what do you want me to say?

(END VIDEO CLIP) 

BROWN: But there was something to winning about the way he lost. 

(BEGIN VIDEO CLIP, "AMERICAN IDOL") 

HUNG: I already gave my best and I have no regrets at all. 

(END VIDEO CLIP) 

BROWN: But he's been a star ever since. 

HUNG (singing): Shake your bon-bon. Shake your bon-bon. Shake your bon-bon.

BROWN: There are Web sites devoted to him. Fan clubs talk about projects of various sorts. He was invited to sing at the U.S. Berkeley volleyball game, in which he was presented with a $25,000 check as part of an album and video deal. William just smiled. What is that old crack about the guy who can't win for losing? It certainly doesn't apply to William Hung, whose career took off like a rocket, after he bombed big-time. Maybe this isn't so hard to understand. The more real people there are on TV, airbrushed and photo-shopped, made over, cut, pasted and polished, the less real they seem. Could it be that we were on the verge of forgetting what real really is? Until William Hung came along to remind us. 

(BEGIN VIDEO CLIP, "AMERICAN IDOL") 

HUNG: I have no professional training of singing. 

COWELL: No.(END VIDEO CLIP) BROWN: This is real. 

(END VIDEOTAPE) 

BROWN: Good to have you with us tonight and for the week. Hope you have a wonderful weekend. We'll see you again next week."LOU DOBBS TONIGHT" is next for most of you.Good night for all of us at NEWSNIGHT. 

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.comproblematic; Prosecution rests in Martha Stewart case; Same-sex couples flocking to San Francisco for marriage licenses; Supreme Court to hear Padilla case; Jane Roe fights against Roe v. Wade in Fifth Circuit;>

Thursday, February 19, 2004

Haiti: Rebels Call For New Elections; University of Colorado scandal; Former Enron CEO Jeffrey Skilling indicted

Haiti: Rebels Call For New Elections; University of Colorado scandal; Former Enron CEO Jeffrey Skilling indicted

Aired February 19, 2004 - 22:00 ET

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

AARON BROWN, CNN ANCHOR: Good evening again everyone.American courtrooms have a way of looking alike. The defendants are usually male, usually young. They have often spent most of their lives in the grittier parts of town. They often come from broken homes. Rarely do they have money.That's the usual scene, which makes the scenes in a couple of courtrooms today most unusual. In one a very rich Martha Stewart listening to one of her good friends testify against her. And, in another courtroom, a very wealthy Jeffrey Skilling listened to charges that he was at the center of the Enron fraud.In both cases, should the charges against them prove true, being really wealthy wasn't enough. They had to have more. The cases are more complicated than that. They always are. But at their core, they are about greed and so it is greed that tops the program and begins the whip.And the whip starts in Houston and the Enron story. CNN's Ed Lavandera is there for us, Ed a headline from you tonight.

ED LAVANDERA, CNN DALLAS BUREAU CHIEF: Hi, Aaron.Well, Jeff Skilling used to be the number two man at Enron but tonight he's free on $5 million bond and facing almost three dozen criminal charges. We’ll get to the heart of those charges in just a little bit -- Aaron.

BROWN: Ed, thank you. We'll get to you at the top.Martha Stewart and her testimony that sent CNN's Jeffrey Toobin into the office this evening shouting, you must run this, give us the headline.

JEFFREY TOOBIN, CNN LEGAL ANALYST: Aaron, it was best friend Mariana Pasternak testifying against Martha Stewart and it was really, really ugly for Martha in court today.BROWN: Jeffrey, thank you.Boulder, Colorado, next and a widening and troubling sex scandal at the University of Colorado, CNN's Josie Burke with the duty again, Josie, the headline.

JOSIE BURKE, CNN CORRESPONDENT: Aaron, for the third consecutive day, allegations surfaced regarding a University of Colorado football player and sexual assault -- Aaron.BROWN: Josie, thank you.And finally, the White House and the president's effort again at selling the economy and more, CNN's Dana Bash with us tonight, Dana a headline.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Well, Aaron, an effort by the president to talk about the economy on his terms as the White House has very much been on the defensive on jobs and other issues. Bush campaign aides concede it’s because Democrats have been dominating the storyline -- Aaron.

BROWN: Dana, thank you. We'll get back to you and the rest shortly.Also coming up on the program tonight, Segment 7 we'll go on the rise with a young woman who is making silk purses out of just about everything except perhaps a sow's ear, which will make the rooster happy since he's an old friend of a sow. He'll stop by with a check of morning papers for Friday, all that and more in the hour ahead.We begin with Jeffrey Skilling who not long ago was the brilliant CEO of a red hot company that virtually defined the new economy. Sure, nobody really knew precisely what Enron did or how it made money but it didn't seem to matter then. Investors bought the story and the stock and it turns out a house of cards as well.When it fell, a lot of people got hurt and ever since federal prosecutors have been busy flipping executives and getting indictments. They've worked their way up the corporate ladder, 29 people so far. Today, the CEO turned himself in.Here again, CNN's Ed Lavandera.

(BEGIN VIDEOTAPE)

LAVANDERA (voice-over): Prosecutors say Jeffrey Skilling orchestrated the gimmicks and financial maneuvers that kept Enron alive. That description is part of a 35-count criminal indictment against Enron’s former chief executive

.JAMES COMEY, DEPUTY ATTORNEY GENERAL: In short, the indictment alleges that this was the guy at Enron.

LAVANDERA: Skilling is accused of fraud, conspiracy and insider trading. If convicted he may have to spend the rest of his life in prison and fork over $80 million in fines. Skilling pleaded not guilty. His attorneys say he's a scapegoat.

DANIEL PETROCELLI, SKILLING’S ATTORNEY: Jeff Skilling has nothing to hide. He did not steal. He did not lie. He did not take anyone’s money.

LAVANDERA: Skilling left Enron six months before it collapsed for what he called personal reasons. He says he wasn’t aware of the shady accounting practices but prosecutors aren’t buying that argument.

STEVE CUTLER, SEC DIRECTOR OF ENFORCEMENT: We are by now all too familiar with the phenomenon of executives who put themselves at the center of what would appear to be great corporate achievements but who then loudly proclaim their ignorance when the appearance of success gives way to the reality of corruption.

LAVANDERA: Skilling lives in this Houston neighborhood in a $4 million mansion, which "Houston Chronicle" lifestyle columnist Shelby Hodge describes as a Mediterranean ego palace. She says Skilling has kept a low profile since Enron's collapse.

SHELBY HODGE, "HOUSTON CHRONICLE": People resent the fact that he's living in a big brand new multimillion dollar house and was the head of a company that fell to pieces and cost a lot of people their life savings.

(END VIDEOTAPE)

LAVANDERA: Jeff Skilling is the highest ranking Enron executive who has been charged in this debacle so far, so far because now the attention moves up one step higher on that corporate ladder that you mentioned, Aaron, to Ken Lay but officials here acknowledge that the case against him will be much tougher to make -- Aaron.

BROWN: Well, two questions then. When I heard the deputy attorney general say about Mr. Skilling he was the guy at Enron that made me wonder if they'll ever go after Ken Lay.

LAVANDERA: I think we’ve heard, I heard comments today kind of suggesting it both ways. They say he was the guy, the mastermind, and that's why some officials say it will be harder to make the case because some believe that Ken Lay will have an easier time to explain that, hey, all of this was going on below me. I didn't know that it was happening. But there were also other comments made today that suggested that this wasn’t over just yet.

BROWN: And, again, Mr. Lay, people get confused a bit. When we talk about Mr. Skilling as the CEO, the head guy at Enron, he reported to Ken Lay. What was Ken Lay's title, he was the chairman of the board?

LAVANDERA: The chairman, you're correct, correct.

BROWN: OK. One more fish, if in fact that fish is to be fried. Thank you, Ed, Ed Lavandera in Houston.

LAVANDERA: You got it.

BROWN: More now on the federal effort against white collar crime. To begin with this is not precisely a glamour job but it is a growing one in both manpower and money. What it isn’t according to the critics is enough, not tough enough they say and not nearly focused enough on the right targets.Here's CNN's Kelli Arena. 

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): Even the 35-count indictment against former Enron Chief Executive Jeffrey Skilling wasn’t enough to quiet some government critics.COMEY: I heard someone the other night on TV say, well gees, it’s only taken them two years.ARENA: Each time the government brings another high profile case, charges of grandstanding resurface. There’s the Martha Stewart case making headlines daily and the Tyco case brought by state prosecutors where the alleged excesses of corporate fraud were caught on videotape.

JOAN CLAYBROOK, "PUBLIC CITIZEN": These were major cases there was huge amounts of publicity about and so they couldn’t have avoided going after these big cases but what I’m saying is that the Justice Department has not made a true priority out of corporate crime.

ARENA: Claybrook argues that less high profile crimes, such as environmental violations or hazardous working conditions are not being pursued aggressively enough.(on camera): But Justice officials dispute that and say the government's commitment to keeping businesses honest was clear in the establishment of the corporate fraud task force.

COMEY: Believe it or not, we as investigators don't start from the presumption that somebody is guilty. We start by looking for the facts and that can be frustrating to people from the outside.

ARENA (voice-over): In the last year and a half, Justice officials say that charges have been brought in more than 290 corporate fraud cases and 642 defendants have been charged. What's more, defense attorneys say that it's become more difficult to strike a deal with government lawyers.

DARRYL RAINES, CRIMINAL DEFENSE ATTORNEY: Our impression has been that the people we're dealing with are unwilling to go back and propose a settlement or a compromise to their superiors, especially in Washington.

ARENA: Still, it's hard for some to accept the fact that top executives like Kenneth Lay of Enron or Bernie Ebbers of WorldCom are walking around free while employees and stockholders got hammered.Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

BROWN: On now to another executive accused of behaving badly today, a tough day in court for Martha Stewart. She actually had some good days but today wasn’t one of them. CNN's Jeffrey Toobin was there and he's with us tonight. OK. We’ll deal with some of the back stuff in a minute. Let's set the stage today a, I don’t know, best friend or good friend?

TOOBIN: Sounds like a best friend. They talk every day. They see each other once a week, Mariana Pasternak. Just to set the scene as to why her testimony was important, December 27, 2001 she, Mariana Pasternak, and another friend are flying from Connecticut to vacation in Cabo San Lucas in Mexico.They stop for refueling in San Antonio. That's where Martha Stewart has her conversation with Doug Faneuil and sells her ImClone stock. They travel on to Mexico. While in Mexico they have a conversation and on their veranda overlooking the ocean, according to Mariana Pasternak, and she says, Mariana, she says Martha Stewart says, you know, Sam, Sam was trying to sell or selling all his stock. His daughter was trying to sell or selling all her stock and I got out of my ImClone stock too.

BROWN: Sam being?

TOOBIN: Sam being Sam Waksal the CEO of ImClone. Why is it significant? It's significant because Martha Stewart said no, the reason she sold her stock, she told investigators was because she had an agreement to sell at $60. She didn't know any non-public information like Sam was selling, so it’s a direct contradiction from her best friend.

BROWN: So, now comes this friend who says something entirely different. You're the defense lawyer. How do you attack this? This is not someone with something to gain.

TOOBIN: Right. And she said something else even worse. She said in another conversation when they were in Mexico, she said isn’t it great to have brokers who tell you things like this, which really, I mean that was news to everyone in the courtroom and there was almost a gasp when she said that.The way you take that statement on, I think, when cross- examination starts tomorrow is you say, well you don't know specifically what she was referring to, tell you things like what? Martha Stewart didn’t specify.As to the other comment, boy that's pretty tough. I think what you have to say is well maybe she knew something about Waksal's sales but she really sold because she had this agreement to sell at $60 and the other stuff was just kind of background noise.

BROWN: But she has, this is a question, she has denied knowing anything of the Waksal sale, has she not?

TOOBIN: Well, that's why it's a problem.

BROWN: Yes, OK.

TOOBIN: I think...

BROWN: I guess that's (unintelligible). 

TOOBIN: Exactly. But I think what you can do is say, look, it was a brief conversation with this kid Faneuil she didn’t know exactly what he was saying. There was a lot of noise out there on the jet way. She heard sell. Her stockbroker Peter Bacanovic had been urging her to sell anyway, so she said the heck with it, I'll sell the stock and didn’t focus on why. I think that's the best the defense can do with this information.

BROWN: OK, now take a moment and kind of tell us where we are in this what has gone well for the government and what has gone badly for the government.

TOOBIN: Well, I think what has gone well for the government, certainly today went well, her secretary's testimony, Annie Armstrong, who testified that Martha Stewart sat down at her computer when the investigation began and changed, literally changed, took the cursor and changed a phone message then thought better of it and said change it back but real good evidence of consciousness of guilty. That I think was the government’s best proof until today.Where it's gone well for Martha Stewart I think is in telling the jury, look, you know, she's not accused of insider trading so why should she lie about this? Couldn't this just be much ado about nothing?Also, all of Martha Stewart's statements to investigators were not tape recorded, no court reporter, so there’s some ambiguity about what she said. That went well for her too.

BROWN: Just quickly is she -- in the courtroom do you think she is a sympathetic character to the jury?

TOOBIN: You know I don’t particularly. There has been so much negative personal information about her, so many times of people yelling at her.

BROWN: Yes.

TOOBIN: People...

BROWN: No, she yelling at them.

TOOBIN: Yes, no, quite the opposite, her yelling at other people.

BROWN: Yes.

TOOBIN: I mean she certainly has wonderful courtroom decorum. She doesn't grimace. She doesn't roll her eyes. But she is not I think a sympathetic figure.

BROWN: I think that would be my problem is I'd be rolling my eyes.

TOOBIN: It's tough for defendant not to react.

BROWN: Smirking.

TOOBIN: They do that.

BROWN: Yes, I do. I've been told that.

TOOBIN: No, no you don't do that but you would perhaps.

BROWN: I'm afraid I might. Thank you.

TOOBIN: OK.

BROWN: Thank you for selling the story today. On to the University of Colorado and a scandal engulfing the football program there, a sixth rape allegation surfaced today against a U.C. player, the third to emerge this week alone. The coach who was in charge of the team when all these alleged incidents took place is in hot water tonight suspended with pay after making disparaging remarks about one of the accusers, a female place kicker he once coached.Reporting the story CNN's Josie Burke.

(BEGIN VIDEOTAPE)

BURKE (voice-over): A day after the University of Colorado placed Gary Barnett on paid administrative leave, the embattled football coach defended his reputation on CNN "LARRY KING LIVE."GARY BARNETT: I just know the way it's coming across nationally I just don’t think that's who I am.

BURKE: Barnett's comments came just hours after another allegation surfaced involving sexual assault and a Colorado football player. It's the sixth incident to have allegedly occurred since Barnett took over the Colorado program in 1999.According to a Boulder Police report, a student claims she was sodomized by a football player and may have been drugged in August of 2002. Before the latest allegation was made public, a group of former Colorado football players went out of their way to express support for Barnett.

CHARLES JOHNSON, FORMER UNIV. OF COLORADO QUARTERBACK: He's a guy of high moral integrity and a guy who I believe in quite frankly and that's my own independent opinion of Coach Gary Barnett, a guy who has simply I believe done the right thing over the course of his time here.

SCOTT NEMETH, FORMER UNIV. OF COLORADO FULLBACK: He has faithfully directed the participants in this program to the highest level of integrity and moral discipline. Gary Barnett is an upright, honest and moral man and I stand by him as my coach, as my leader and as my mentor. 

BURKE: But another segment of the Colorado community was eager for more change. A women's group on campus says it’s not convinced the university is serious about getting to the bottom of the allegations.

CANDICE LOPEZ: With new allegations coming forward every day we obviously think that this is a problem and that something needs to change with the climate and the atmosphere that is in the athletic department.

(END VIDEOTAPE)

BURKE: As far as a permanent change when it comes to the head coaching position, Barnett told Larry King he wants to come back and he fully expects to be reinstated -- Aaron.

BROWN: A couple quick things. The coach, in fact, does have a reputation of being a disciplinarian, a tough guy with his players, fair?

BURKE: Fair to say. In fact if you -- I talked to the president of the university on Monday and she pointed out they brought Gary Barnett in because they wanted to change the culture of the football program here.

BROWN: And that was question number two. Whatever it is that has taken place recently at the university there is a history that goes back at least I can think of two football coaches over the past I guess ten years or so, maybe a little more, where there have been a lot of shenanigans there.

BURKE: There have been. You got back to 1997, a lot of people point to an allegation made by a high school student alleging an assault at the hands of a recruit. You go back even further to the years of Bill McCartney as head coach here, not always held in the highest regard or it seemed when it comes to his football program. So, this is certainly nothing new here and, as you pointed out before, Barnett originally brought in because they thought he’d be the one to really clean things up and change things.

BROWN: Josie, thank you very much, Josie Burke tonight.Later on the program tonight we'll talk with the president of the NCAA about all this, Dr. Miles Brand will join us. That's coming up a little bit later.Also coming up, President Bush on the defensive, what he plans to do to get back on the attack going into the fall election.And later tonight, we'll go "On the Rise" with Jessica Alpert Goldman (ph) who is making bags her bag. That's an expression we haven't used in a while.This is NEWSNIGHT from New York.

(COMMERCIAL BREAK)

BROWN: The Labor Department said today the number of people filing for unemployment went down last week but rose over the last four weeks. Couple that with good growth numbers but bad housing starts, falling consumer confidence and you get the idea, this is a good news, bad news period for the economy, an economy that seems to clearly be improving in fits and starts but yet to pay off where it matters most with jobs, a campaign issue for the Democrats and no way to play offense for the White House.In some respects that is predictable. For weeks the Democratic race has dominated the news and the attacks on the president have dominated that campaign. But many Republicans worry there is more at play here that the president for now at least has lost his two best weapons, a clear voice and credibility.From the White House tonight, CNN's Dana Bash.

(BEGIN VIDEOTAPE)

BASH (voice-over): Standing in front of invited guests he said benefited from his tax cuts, the president tried to play offense on his economic policies.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: When you hear we’re going to repeal the Bush tax cuts that means tax increases.BASH: But recently, team Bush playing defense is what's making headlines.

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: I've been asked and I’ve answered.

UNIDENTIFIED MALE: No, you have not answered.BASH: Backing away from a rosy 2.6 million new jobs forecast just nine days after publishing it calling it old data, playing clean- up after a top economic adviser suggested jobs going abroad may not be so bad, releasing documents last week trying to defend the president’s military record.BUSH: Saddam Hussein chose defiance.BASH: And having to defend the war in Iraq after no WMD was found. Some political veterans are scratching their heads.

DAVID GERGEN, FORMER WHITE HOUSE ADVISER: The Democrats are rising. The president himself is suffering a drop and he’s off balance. I don’t think he’s as formidable as he usually is on the stump.

BASH: While some Bush advisers concede it’s been a rocky time they say they’re looking at this, the calendar. Better to take some hits on sticky issues now eight months before an election, a political eternity. Bush aides also say the focus on Democrats battling for the nomination has determined the story line and that puts the White House automatically in damage control mode.The political director for the first President Bush calls this time the three year itch but...

RON KAUFMAN, FORMER ADVISER TO PRESIDENT GEORGE BUSH: We're about to pivot, about to go from just talking about Democrats to the president being on the offensive.

BASH: In fact, Bush campaign advisers are just beginning to hit back in television appearances and they’re getting more aggressive in reacting to happenings on the Democratic trail with e-mails like this one sent to reporters Thursday just minutes after Senator John Kerry picked up and endorsement from big labor.

(END VIDEOTAPE)

BASH: But some worried Republicans privately say it's time for the president himself to start hitting back against his opponents much more aggressively and start spending the $100 million plus he has in the bank. Campaign aides for President Bush say that’s all going to happen very, very soon -- Aaron.

BROWN: Actually two things there. The ads, we'll talk about them in a second. The president himself has been, you can call it a campaign or not, the White House is loathe to but the president has been out there two, three, four days a week for a while now.

BASH: He's been out there. He's been talking in the past couple of weeks primarily about the economy having these Oprah style chats with invited guests talking about that issue.But the bottom line is that all of the focus, the media focus, has been for the most part on the big race among Democrats and, by extension, Bush campaign aides understand that that means we’re listening to a lot of their attacks against the president and that has been a big problem for Mr. Bush.One of the campaign aides I talked to today said that this is sort of political no man’s land because we’re just coming to the end of the Democratic primary but we’re not yet at the point where we actually have an opponent for the president so that's been the problem right now as they start to really gear up.

BROWN: Has anybody within the campaign talked about the new requirement that the candidate himself, in this case the president, be a part of any ads saying I approved this ad and whether they think that will be difficult for a president who -- any president would like to stay about the fray a bit?

BASH: That’s an interesting question. I actually was talking to somebody on the campaign about that the other day and the ads that they are poised to run have essentially been shot, probably been cut already. They’re going to be running quite soon and, you’re right, the president does have to do that. He has to say it on camera, you know, but the bottom line is they understand that, the American understand that yes he is president. He wants to sort of maintain the power and image of the incumbency but the American people understand he is a candidate. But it will be interesting to see how that plays. It’s certainly going to be a new time.

BROWN: Yes, it is, Dana thank you, Dana Bash at the White House tonight.On the Democratic side of the campaign trail, Super Tuesday less than two weeks away, John Kerry got another good get as we say in our business today. He got the endorsement from the AFL-CIO. In theory, that means the support of 13 million union members, in theory, in spite of Mr. Kerry’s past support for free trade agreements, which many union leaders blame for the loss of U.S. jobs.Despite all the fuss over Tuesday’s Wisconsin primary, Senator Kerry remains the clear favorite to win the nomination. He sat down with Judy Woodruff today.

(BEGIN VIDEOTAPE)

JUDY WOODRUFF, CNN ANCHOR (voice-over): All of a sudden a two man race with John Kerry facing not a collection of rivals but one, John Edwards.Is he getting under your skin?

SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: Not in the least. I don't know who reported that but that's not, that's just not correct. I like John Edwards. He's done a terrific job.

WOODRUFF (on camera): Is this a bit of an irritant though to have to be still running against him at this point? I mean a lot of people thought this was going to be (unintelligible).

KERRY: No. Look, I'm not running (unintelligible). You know there are others in the race. Obviously, he’s one of the leading contenders. I take that seriously. I take nothing for granted.

WOODRUFF (voice-over): But Kerry disputes Edwards’ claim that his humble roots make him a better advocate for the working man.

KERRY: People are given different hands in life. I respect John Edwards and I respect his family's history and everything about him but if the qualification is sort of where you’re born or whether you can feel things we’d have never had a great president in Franklin Roosevelt. We’d have never had a great president in John Kennedy. I think the test is what do you fight for? What are your values? I mean I thought that...

WOODRUFF (on camera): But John Edwards keeps bringing this up, Senator.

KERRY: Well, that’s fine.

WOODRUFF: I mean you've given that answer before and he keeps coming back and saying...

KERRY: That's OK. I think Americans are looking for leadership. I think Americans are looking for somebody who has a proven record of fighting for working people.

WOODRUFF (voice-over): Edwards is also pressing for a series of debates. Kerry is not ready to commit.

KERRY: I have no clue, Judy, where the schedule is. I really don't. I just, you know, you're looking at somebody who has got to figure out where I’m going to be on the weekend, so (unintelligible).

WOODRUFF: Are you up for doing as many...

KERRY: I've always been somebody who is willing to but let's see where the schedule takes us and I've got to do what I need to do to run my own campaign.

WOODRUFF (voice-over): Which leaves more than a little wiggle room.Judy Woodruff, CNN, Washington.

(END VIDEOTAPE)

BROWN: Politics tonight.Coming up on the program at the very end we'll check morning papers.Before that much to do, up next will Iraq be ready for elections this summer? The United Nations thinks not, that story and more as NEWSNIGHT continues from New York.

(COMMERCIAL BREAK)

BROWN: The man once marginalized in the lead up to the war in Iraq today delivered his verdict on what should happen there next, politically speaking at least, and fair to say a lot of people were listening. U.N. Secretary-General Kofi Annan delivered a two-part message, which left in its wake a very large question mark.Here’s CNN's Richard Roth.

(BEGIN VIDEOTAPE)RICHARD 

ROTH, CNN UNITED NATIONS CORRESPONDENT (voice-over): U.N. Secretary-General Kofi Annan revealed his highly anticipated decision on elections in Iraq.

KOFI ANNAN, U.N. SECRETARY-GENERAL: Elections cannot be held before the end of June that the June 30th date for handover of sovereignty must be respected. ROTH: Minutes before Annan announced his decision, in Baghdad U.S. coalition authorities who asked for the U.N.’s advice made it clear no matter what the U.N. said about elections for a new government, the June 30th time table was not to be changed.

PAUL BREMER, U.S. CIVIL ADMINISTRATOR IN IRAQ: Changes in the mechanism for forming an interim government are possible but the date holds. And hold, it should. 

ROTH: So the big question is how then to replace a U.S. Plan which called for local caucuses in 18 regions of Iraq to choose eventual new leaders following the hand over of authority. The U.N. doesn't want to impose more recommendations right now in the search for a new plan for Iraq. 

ANNAN: We have absolutely no prepared options. We need to have the -- Iraq to discuss it. They must take ownership. 

ROTH: Immediate elections were demanded by the majority Shiite population led by reclusive spiritual leader, Grand Ayatollah al- Sistani. But a special U.N. envoy who met with him said the ayatollah would accept the U.N. decision, even if that meant delaying the elections. 

BREMER: There are, as I have pointed out before, a number of ways in which a transitional government could be selected if it was not possible to hold elections. ROTH: But many in the international set at the U.N. believe any elections adjustment should prompt a clear break with the Iraqi Governing Council, selected by the U.S., in order to show a more homegrown chosen leadership is on the way. (on camera): U.N. diplomats say they expect Secretary-General Annan to say, in his next report, that, once an agreement is reached, it might take up to eight to 10 months to conduct a national election in Iraq. Richard Roth, CNN, United Nations. 

(END VIDEOTAPE) 

BROWN: A few more quick items from around the world, starting with the prison at Guantanamo Bay. Five British inmates there are being sent home. They'll be sent back to Britain sometime in the next few weeks where, according to authorities, some or all might be rearrested on domestic charges. Iran next. U.N. nuclear inspectors today came across parts to machinery used for turning raw uranium into reactor fuel or A-bombs. It's much more advanced than anything Tehran had admitted so far to having and is similar to equipment Libya is believed to have received from Pakistan. Iranians go to the polls tomorrow to vote in parliamentary elections, elections that most observers and a lot of Iranians say are rigged. Hundreds of moderate candidates have been barred from running and, today, the court shut down the country's two main reformist newspapers, paving the way for the headliners to win big come tomorrow. On to Haiti, where rebels have declared independence and are calling for new elections. Today, Haiti's president, Jean-Bertrand Aristide, vowed to give his own life before giving in. At least 50 people have died in the fighting. U.S. officials are urging American citizens to leave the country and have sent a small military team to assess security at the U.S. Embassy there. Here's CNN's Lucia Newman.

 (BEGIN VIDEOTAPE)

LUCIA NEWMAN, CNN CORRESPONDENT (voice-over): Police stood at attention as President Jean-Bertrand Aristide paid homage to the 17 policemen killed in towns taken over by armed militants in northern Haiti. Ignoring any suggestion that he resign, Aristide called on Haiti's small and ill-trained police force to be brave. "The terrorists are here," he said, "but not better armed than you. You have the constitution as your compass and democratic values as your weapons."(on camera): The president's message evidently aims to boost police morale all over the country, as reports come in that many are deserting their posts in towns and key cities in the north of the country. (voice-over): In rebel-controlled Gonaives, the feared former police chief of Cap-Haitien, Guy Philippe, vowed to soon return to Haiti's second largest city to liberate it. In Cap-Haitien, police admit they're afraid, while armed Aristide supporters vow to fight to the death. Calling the rebels puny terrorists, Aristide accused them of using psychological warfare to spread fear. And he sent a message in English to the international community.

 JEAN-BERTRAND ARISTIDE, HAITIAN PRESIDENT: Today, we ask you to not pay attention to the lies, but to pay attention to the truth. NEWMAN: But Aristide's political foes say he has no moral authority to talk about defending democracy. "Aristide promised us justice, transparency and participation," says Evans Paul. "He gave us violence, corruption and lies."And even as workers hurry to build stands for the upcoming carnival, the uncertainty over Haiti's future grows. Lucia Newman, CNN, Port-au-Prince, Haiti. 

(END VIDEOTAPE) 

BROWN: It is a sad place. Still to come on NEWSNIGHT, we'll go back to the problems at the University of Colorado and talk with the head of the NCAA about that and, more broadly, about the problems in college sport. We take a break first. Around the world, this is NEWSNIGHT. 

(COMMERCIAL BREAK)

BROWN: Back to the University of Colorado football program. Before the rape allegations surfaced, the team's recruiting practices, including parties heavy on sex and alcohol, had set off a storm. There were other problems at the school as well and other schools also causing the National Collegiate Athletic Association, the NCAA, to launch a review of its own rules. New rules could come as soon as late April. Dr. Myles Brand is the president now of the NCAA, formerly the president at Indiana University, so he knows a thing or two about college sports in the big time. We're pleased that he could join us tonight. Presumably, the rules that exist now don't allow for plying 17- year-olds with liquor and treating them to a night with strippers. So what is it that needs to be tightened up here, if anything?

MYLES BRAND, PRESIDENT, NCAA: Well, rules address issues such as how much can be spent, how much time can be spend on campus, what kind of money is involved. But, frankly, our current rules do not really speak to behavior or, if they do so, they do so in an imprecise way. We've relied in the past on common sense and common decency. And when that doesn't work, we really do have to put in stronger behavioral rules. 

BROWN: An athletic director at a fairly prominent university that has a terrific basketball program once said to me, the problem with the NCAA is not that it doesn't have -- or with college sport -- is, it's not that there aren't rules. It's that some people within the athletic departments just choose to break them. 

BRAND: That may be true. The first line of defense is always the campus. The coaches, the athletic director, and most especially the president are in charge of overseeing the rules and whether they're respected on a campus. The NCAA, when it finds out there are violations, can take steps. And let me assure you that, under my watch, the NCAA is going to be tough as nails on major infractions. 

BROWN: There seems, Dr. Brand, always to be some schools who are always in the headlines for the wrong reasons and other schools that graduate their kids on time, have good programs, that are successful, make money, do all the things right. What separates the good ones from the bad ones? 

BRAND: I think we might describe it as institutional control, whether the coaches, the athletic director, the entire administration and the student athletes themselves understand what's expected of them, are proud of the way they behave and the way represent their schools. When they lose that pride in representing their schools and are only committed to winning at any cost, we create problems. 

BROWN: You had some real-life experience with the pressures on a university president in all of this, where sport is concerned in your years at Indiana. Is it possible to describe the kinds of external pressures that a person who is the chancellor of the university or the head of the university feels to maintain a good program, an athletic program? 

BRAND: Oh, there are enormous pressures from external constituencies, as well as internal constituencies, to win, to win at any cost. But the university president, as well as the athletic director, and, as I said, the coaches, must rise above those pressures. They must take into account what counts as a good, clean program. They must look at the integrity of the game, the integrity of the institution and always put that first. 

BROWN: I wonder -- I don't think you're going to agree with me, but I think it's worth at least talking about -- if college sport has gotten so big, that there so is much money in it, there's so much television -- television money involved in it, that we've reached a kind of tipping point where it's impossible to get it under control. 

BRAND: I don't believe that. There is money involved, but the vast, vast majority of schools and colleges lose money, because, after all, basketball and football do produce revenues, but all the other sports have to be supported by those revenues as well. So it is not big business. It's not the tail wagging the dog.At a large institution like Indiana University, like Colorado, the athletic budget is 3 percent or less of the total budget. So it really isn't out of control. It gets a lot of the visibility, gets a lot of press, attracts a lot of attention, but it's not out of control. The goal, of course, is to make sure that the integrity of the game is protected and the student athletes get an education, that they're there first and foremost for an education, of course to participate in athletics, but to get an education. 

BROWN: Just finally, this here is my idea. And it's not, I don't even think, an original idea. But one thing I think schools ought to do is put student athletes back into the student community more than they are now, no separate dorms, no separate eating facilities. Make them students again. 

BRAND: We do not have and stopped over a decade ago separate dorms for athletes. But I do agree with your thought. We have to fully integrate intercollegiate athletes into the academic mission of the institution. To the extent that we treat it as a separate entity, apart from the rest of the university, it's just calling out for trouble. The best solution -- and here, we are on the same page -- is to make sure that student athletes are integrated into the university community and the athletic program is part and parcel of the academic mission of the institution. 

BROWN: Those of us who love college sports wish you nothing but well. Hope you can fix it all. Thank you, sir, very much. 

BRAND: My pleasure. 

BROWN: Dr. Myles Brand, the former head of the university of Indiana and now the head of the NCAA. Before we go to break, a few others stories that made news today around the country. California first, where the question of gay marriage is heading to yet another courtroom. A San Francisco city attorney says he plans to sue the state, challenging the constitutionality of the state's ban on gay marriage. Two judges are already considering challenges from conservative groups seeking an end to the wedding bells; 3,000 or more couples have already been married. NASA today said it's pushing the space shuttle's next flight back into next year, next March, if all goes well. And from then on, the missions will be limited to servicing the International Space Station. As an additional safety measure, a second shuttle will be kept in preparation to fly in case a rescue mission is needed. Still ahead tonight, morning papers coming up. Up next, "On the Rise," the world according to Jess. And you'll like her story. We'll take a break first. This is NEWSNIGHT. 

(COMMERCIAL BREAK) 

BROWN: With all the CEOs in trouble, we thought you might need a little bit of good medicine for now, a real company making real profits and a boss who isn't on trial. She's "On the Rise." 

(BEGIN VIDEOTAPE)

 JESSICA ALPERT-GOLDMAN, WORLD ACCORDING TO JESS: Hi, welcome to World According to Jess, located here in Bergen County, New Jersey. My name is Jessica Alpert-Goldman. I'm the owner/handbag guru of World According to Jess. My company was started two years ago. And I named it for many reasons. When I was little, people used to say to me all the time, you know, the world isn't according to you, Jessica. You can't wear polka dots and plaid. And you can't wear nine barrettes in your hair to school pictures.My theory was, you know, the world is according to me. And I don't want to live it any other way, except through the way that I want to live it. Why I decided to start handbags was, handbags are easy. They don't have to fit your thigh. They don't have to be the perfect size. They're instant-purchase. Many of my ideas are just childhood memories, the silly things that I went through as a child, Mad Libs, connect the dots. I love gamy, silly things. I love things that people are unexpected. What is this doing on a bag? Just very fun, unique ideas. The first bag that I made is called "Sassy Traveler." And I designed it mainly for myself, because I was traveling all the time. And I would literally sell it in the airport. People would be basically attacking me at the airport, like, where did you get this bag? And that's how I started to begin promoting. I really think that meeting the customers is basically the heartbeat of my company. That was one of my best sellers. It was the Oscar gift bag. 

UNIDENTIFIED FEMALE: I love it. 

ALPERT-GOLDMAN: If you have a lot of dog lovers, it does well. My customers would say to me, I love the line. Where's the diaper bag? This is my "Hey, Baby" diaper bag, named after Gwen Stefani. We also have a "Peek Into the Diaper" bag. So every trunk show I did, I got to meet my customer, got to hear my customer's voice and would meet their demand. My company is solely ran by myself and helped with my husband. My handbags are made overseas. I do the design, the samples, the accounts receivable, the invoicing, down to the publicity of the whole entire line. And then I leave little creative time, where I start coming up with some concepts for the next line. I'm presently, I think, at 45 designs. And when I was selling 10 boutiques and jumping up for joy for that, I'm probably now in 400 boutiques nationwide and in 24 Nordstrom's, along with Japan and Canada and Puerto Rico. The range of the bags are usually from $70 to $300 is the most expensive we have on the line right now. World According to Jess, thankfully, is profitable. I think, this year, we probably hit a $500,000 to $700,000 mark. When I started this company, I decided, you know what? It's just going to be however I want it to be. And if America accepts it and they love the designs, then I've got a business. And if they don't, then, you know what? I tried and I realized that I wasn't meant to do this. And, thankfully, the world has embraced the World According to Jess. 

(END VIDEOTAPE) 

BROWN: Isn't she an engaging character? My goodness. We'll check morning papers, which is always engaging, of a different sort, after the break. 

(COMMERCIAL BREAK) 

(ROOSTER CROWING) 

BROWN: Okeydokey, time to check morning papers from around the country and around the world today, as it turns out, beginning with "The Washington Times." "The Washington Times" of the two papers in Washington, D.C., "The Post" and "The Times," clearly the more conservative of the two, OK? I find this a very political front page today. Here's the lead: "More Aliens Try to Enter for Amnesty. Bush Plan Spurs Jump in Illegal Immigration." That's the lead. In the center of the front page, "Evangelical Frustrated by Bush Threaten to Stay Home for the Election." That surprises me, OK? And then this story, also, I think a pretty political headline. "Vets Refuse to Forgive Kerry for Anti- War Acts. He Gave Aid and Comfort for the Enemy." I think, in fact, there's a fair split. I don't know whether it's 50/50 or what it is, but there does seem to be a fair split among vets on how they feel about Senator Kerry. But anyway, that's the headline in "The Washington Times." I like the paper, because it's clear where it stands and so you know what you're reading. 

"The Guardian," a British paper which leans a little bit left. "Guantanamo Britons Emerge From Their Legal Purgatory. Five Likely to Walk Free, But Others Face Trial." They have only four pictures, but there are five people. It's always uncomfortable if you're in the newspaper business. 

"San Francisco Chronicle" leads with the competition. "Denver Tycoon Buys '

The Examiner.'" That would be "The San Francisco Examiner." And "San Francisco Files Suit Over Legality of Weddings." I can't think of a story that we've run in two years that has gotten more negative mail. No one is happy with the way we're doing this story. The people who support gay marriage aren't. The people who oppose it aren't. It's been a terrible week in Detroit because of the murder of two police officers. And that again leads 

"The Detroit Free Press." "Grieving Cops Honor Pair By Aiding Families. One Officer Friend to Give Eulogy Today." And the paper has editorialized -- actually, one of these days, we're going to do the editorials from the papers. "Don't Use This to Lift Death Penalty Ban." Michigan is a state that does not sanction the death penalty. How we doing on time? OK, we can do that. "Mobster's Son Tied to Hired Truck Program." This is an ongoing scandal in Chicago. 

The paper is "The Chicago Sun-Times." And the weather tomorrow sounds terrific, "like April." 

(BELL RINGING) 

BROWN: We could probably ring that bell twice for that, 47 degrees in the Windy City. 

(BELL RINGING) 

BROWN: They're so literal back there. We'll wrap up the day in a moment. 

(COMMERCIAL BREAK) 

BROWN: Recapping our top story, former Enron CEO Jeffrey Skilling indicted today on 35 counts of insider trading, fraud and conspiracy. His plea was not guilty. And he handed over a cashiers check for $5 million bail and went home.Tomorrow on this program, the end of "Sex" as we know it. "Sex and the City"'s final episode airs over the weekend. And in case you missed a few, as a public service, Nissen condenses five seasons in less than five minutes for you. We'll also talk about how it should all end, an issue that has torn the staff apart, but I'm right. We'll see you tomorrow for that."LOU DOBBS TONIGHT" is next for most of you.Good night for all of us. 

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.comColorado scandal; Former Enron CEO Jeffrey Skilling indicted>