Judge Dismisses Securities Fraud Charge in Martha Stewart Trial; Haiti in Crisis: Marines on Standby
ANDERSON COOPER, HOST (voice-over): Blockbuster from the bench: Martha's judge throws out the most serious allegation. Help for Haiti? Three ships, 2,200 Marines. Will the U.S. go in? Ten similar slayings. Is there a serial killer in the Southwest? Calling all NASCAR dads. The President wants you, and he's got the ads to prove it. And anchors away. Japan looks for a few good men: seamen.</s>ANNOUNCER: Live from the CNN Broadcast Center in New York, this is ANDERSON COOPER 360.</s>COOPER: And good evening. Thanks for joining us on 360. Three U.S. Navy ships with 2,200 Marines on alert at this hour for possibly deployment off the coast of Haiti, where the chaos is growing. Details and a live report from Port-au-Prince just ahead. But our top story tonight, a blockbuster in the Martha Stewart trial. The securities fraud charge, the most serious one against Stewart, dismissed. She no longer faces a penalty of 10 years in prison and a $1 million fine. She is not off the hook yet. More from CNN's Allan Chernoff.</s>ALLAN CHERNOFF, CNN FINANCIAL NEWS CORRESPONDENT: Martha Stewart, on her way to a celebratory lunch in Chinatown. Judge Miriam Cedarbaum had just tossed out the most serious charge against Stewart, ruling, "The evidence and inferences the government presents are simply too weak to support a finding beyond a reasonable doubt of criminal intent." (on camera): Mr. Morvillo, your reaction to the throwing out of the securities fraud charge?</s>ROBERT MORVILLO, STEWART'S ATTORNEY: We are pleased, and we think the judge has made the right decision. End of answer.</s>CHERNOFF (voice-over): Prosecutors had charged Stewart with trying to defraud investors in her company, Martha Stewart Living Omnimedia, by claiming she did nothing wrong in selling her ImClone stock. Stewart claimed she had an agreement with stockbroker Peter Bacanovic to sell ImClone if the price fell under $60 a share. That issue is still before the court. Prosecutors charge Stewart sold after getting a tip that ImClone chief Sam Waksal was trying to dump his stock.</s>CHERNOFF: That allegation underlies the four criminal charges still confronting Martha Stewart: obstruction of justice, conspiracy, and two counts of making false statements. Closing arguments are scheduled for Monday and Tuesday, after which the case goes to the jury -- Anderson.</s>COOPER: All right. Allan Chernoff, thanks very much. We'll have more on the Martha Stewart case coming up later on, on 360. We go now to Haiti, where the chaos is just getting worse. The capital, Port-au-Prince, may soon be overrun. The U.S. and its allies are still hoping for a breakthrough that could clear the way for a multinational force. American forces, as we told you, were on standby. Three Navy ships, 2,200 U.S. Marines could get orders to sit off Haiti's coast as a precautionary measure. Earlier today, President Bush talked about U.S. efforts.</s>GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We're interested in achieving a political settlement, and we're still working to that effect. We're also, at the same time, planning for a multinational force that would go in and make sure that if aid needed to be delivered, or there needed to be some stability, that it could go in, dependent upon a political settlement.</s>COOPER: President Bush talked about stability. The problem is, at this hour, there seems to be no stability in Haiti. Anarchy prevails. Right now in the capital city, there is chaos, looting, while President Jean-Bertrand Aristide is vowing to remain in power. With the latest on the crisis, here's CNN's Lucia Newman in Port- au-Prince. We first want to warn you, some of the video you might see is graphic.</s>LUCIA NEWMAN, CNN CORRESPONDENT (voice-over): Truckloads of armed thugs patrolling the streets, ransacking and shooting whom they please. People looting warehouses at the port. The police nowhere to be seen. The rebels fast approaches the capital. The brutality so many feared is here. Execution-style killings, like these two men found shot through the head with hands tied behind their backs. Another man castrated with a machete. A seasoned photographer familiar with Haiti calls it anarchy.</s>UNIDENTIFIED MALE: This is sort of a combination of political vendettas, as well as just very basic vandalism, looting, and people thieving and taking advantage of the lawlessness that exists here today.</s>NEWMAN: At the airport despair. This Canadian missionary unconsolable when told he can't leave Haiti. Virtually all international flights canceled because of the unrest, leaving hundreds, if not thousands, stranded.</s>UNIDENTIFIED MALE: It shouldn't be. Because, you know, this is the last place that should be shut down, if anything. Because this is the only way for anybody to be able to do anything, whether to escape...</s>NEWMAN: With Haiti in chaos, the U.S. Coast Guard repatriated 531 Haitian boat people picked up trying to get to Florida. With armed rebels now taking over more and more towns, insurgent leader De Phillipe (ph) says he plans to encircle the capital and choke off supplies, instead of attacking right away. Residents are scrambling to stock up on food and water from the few shops still open, anticipating the worst.</s>NEWMAN: The situation is spiraling out of control, Anderson. And with no one really here in control, it's the guys out on the streets with the guns who are calling the shots -- Anderson.</s>COOPER: All right. Lucia Newman, stay safe. Today, a disturbing report on priestly abuse of children was released to the public. It is a story CNN's Jason Carroll broke last week: 4,392 priests accused, and some of the details we learned today are simply shocking. Here again, CNN's Jason Carroll.</s>JASON CARROLL, CNN CORRESPONDENT (voice-over): While the numbers from the report are staggering, so too are the unsettling details emerging about the victims. Most were young boys; their average ages just 12 years old. Many were enticed with alcohol or drugs. The most common form of abuse, touching under a victim's clothes. But also included, oral sex, masturbation and penetration. Much of the abuse taking place in a parish or a cleric's home.</s>UNIDENTIFIED MALE: On behalf of the bishops and the entire Church in the United States, I restate and reaffirm or apologies to all of you who have been harmed by those among us.</s>CARROLL: The financial fallout, more than half-a-billion dollars in settlement fees and counseling. Another report explored the causes behind the abuse. Among the new findings, clergy didn't do enough to screen candidates for priesthood, nor was there enough preparation for a life of celibacy.</s>UNIDENTIFIED MALE: Many bishops, certainly not all, breached their responsibilities as pastors, breached their responsibilities as shepherds of the flock, and put their head in the sand.</s>CARROLL: Recommendations? Better screening and training in the seminary. More outreach to victims, many of whom are critical of the report's numbers, because they're based on information provided by the Church.</s>UNIDENTIFIED FEMALE: We just have to be skeptical. It would be naive to believe that this is complete and accurate.</s>CARROLL: What is painfully clear is that Church leaders did not do enough to protect children. What is unclear, though, is how those same Church leaders should be reprimanded for their actions -- Anderson.</s>COOPER: All right. Jason Carroll, thanks very much. On to the politics now and the big push this weekend ahead of the delegate extravaganza known as Super Tuesday. Today, John Edwards said he's making strides in Minnesota, Ohio, and Georgia, ahead of Tuesday's primaries. And John Kerry focused his energy on what he says are President Bush's foreign policy failures. Kelly Wallace has the story.</s>SEN. JOHN EDWARDS (D-NC), PRESIDENTIAL CANDIDATE: Thank you.</s>KELLY WALLACE, CNN NATIONAL CORRESPONDENT (voice-over): John Edwards arriving in St. Paul to some good news. Howard Dean's state organization recommending its Minnesota activists back him on Super Tuesday.</s>EDWARDS: Welcome and thank you to supporters of Governor Dean who are here today.</s>WALLACE: And to the political observers who believe his performance in Thursday night's debate did nothing to change the dynamics of the race, the senator from North Carolina says they are wrong.</s>EDWARDS: I think these debates every time we've had one has helped me and my campaign, because people see then that it's basically a two-person race and it's a clear choice.</s>WALLACE: Edwards is focusing on Minnesota, Ohio, Georgia, and New York, states all hard-hit by job losses. He says no matter what happens Tuesday, he expects to stay in the race, although he concedes eventually it comes down to simple math.</s>EDWARDS: Our goal is to continue to win delegates, and win delegates in substantial amounts.</s>WALLACE: John Kerry's aids, thrilled with his performance at the debate, continue their strategy of trying to make the Massachusetts senator look presidential. He delivered a foreign policy speech in Los Angeles.</s>SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I don't fault George Bush for doing too much in the war on terror. I believe he's done too little.</s>WALLACE: With Kerry continuing to say that he, as opposed to Edwards, has the national security experience to defeat the president in November.</s>KERRY: So I think there is a significant difference in my preparedness, my readiness to be president of the United States.</s>WALLACE (on camera): Both candidates are now looking ahead to Sunday morning's debate in New York City. Edwards' aides says his strategy won't change. So the question is, will his performance in this final debate before Super Tuesday help him pull off an upset? Kelly Wallace, CNN, St. Paul, Minnesota.</s>COOPER: We are following a number of developing stories right now "Cross Country." Let's take a quick look. In Washington: the speaker gives in. House Speaker Dennis Hastert has agreed to allow the president's 9/11 Commission an extra 60 days to fin the work. Hastert had been opposed to allowing the extra time. The nonpartisan group said they needed the time to finish their report. Grundy, Virginia: the guy says he's sorry, this man, Peter Atikizua (ph). He killed three people in 2002 in a shooting rampage at a law school here. Today, he pleaded guilty to the crimes and was sentenced to life in prison without parole. The plea deal means he will not have to face the death penalty. Atlanta, Georgia: Bobby Brown goes to jail. The 35-year-old R & B singer was sentenced to 60 days for violating his probation. He was arrested two months ago for allegedly striking his wife, singer Whitney Houston. Brown was on probation for an earlier drunk driving conviction. He does not look happy there. Denver, Colorado: threats land a California man in jail. Cedric Augustan (ph) is charged with 26 separate counts, making death threats against the prosecutor and the alleged victim in the Kobe Bryant sexual assault case. Augustan (ph) was arrested by police and federal agents on Thursday. That's the prosecutor there. In New York: no winner yet. The $10,000 reward offered by the Doonesbury comic strip has so far gone unclaimed. To win, you have to be able to prove that President Bush actually served in the Alabama National Guard during the early '70s. So far, hundreds have come forward. And no one's been able to prove anything. A Republican National Committee spokeswoman says the contest is a "silly stunt." And that's a quick look at stories in tonight's "UpLink" -- in "Cross Country." Truckstop murders coming up. Is a brutal serial killer at work in six states? Find out why police are on alert. Plus, nerve gas attacks on Tokyo's subway. Final justice for a doomsday cult leader. And, looking for a few good men. A military recruitment ad you just have to see to believe. You with will not believe it. It's all ahead. First, let's take a look "Inside the Box" at the top stories on tonight's network newscasts.