Greasing the Wheels?; Missing Girl; Deadly Bat Attack
KYRA PHILLIPS, CNN ANCHOR: More alleged fraud in oil-for-food. As you know if you've been watching CNN, a Texas oil man and two of his front men stand accused of slipping illegal payoffs into their payments for prewar Iraqi crude. The feds say the money enriched Saddam Hussein at the expense of the people that the U.N. program was designed to sustain. We get the latest now from CNN senior U.N. correspondent Richard Roth -- Rich.</s>RICHARD ROTH, CNN SR. U.N. CORRESPONDENT: Kyra, David Chalmers is the name. He has been indicted. And the federal government says he, in effect, becomes the first American involved and indicted with oil-for-food corruption scandal. He's a Texas oil businessman. In about one hour, he's going to face his first appearance. The oil-for-food case turned into a cash cow for the Saddam Hussein regime. The Security Council, 10 years ago today exactly today, when they set up this programming, allowed Saddam to choose which vendors, which businesses he would be dealing with when they purchased oil and he received humanitarian goods for the citizens of his country living under existing Security Council sanctions. Now Chalmers has been charged with three felonies, including wire fraud, breaking the economic embargo with Iraq, and transactions of a financial nature with a stat sponsor of terrorism. It was all involving kickbacks and surcharges involving middlemen. And the government of Iraq is described by U.S. attorney David Kelley.</s>DAVID KELLEY, U.S. ATTORNEY: And what the defendants are alleged to have done to further this scheme is threefold. First, the defendants at Bayoil, led by David Chalmers and assisted by Irving Dionissiev paid inflated commissions to allocation holders, or oral industry brokers, knowing and intending that a portion of these commission payments were earmarked for the kickbacks to the Hussein regime.</s>ROTH: Now, the money was supposed to be -- most of it did go into an escrow account which was monitored by the U.N. But to get more money and to grease the wheels, as you've been saying, Kyra, money was paid through third parties, third companies. Saddam asked for more money. If you want to do business with the Iraqi government, he said, you're going to have to pay these commission commissions. And many people at the U.N. and the Security Council, they were aware of all of this. But the U.S. was very eager to keep the sanctions on Iraq. And, in fact, today, the secretary-general, Kofi Annan, somewhat publicly for the first time going after the U.S. and Britain, saying they turned a blind eye to other aspects of the program and corruption, smuggling, smuggling through Jordan and Turkey, because the said they with allies of the U.S.. And he also asked for more balanced media coverage to show how widespread this was and it just doesn't involve the U.N. Back to you, Kyra.</s>PHILLIPS: Richard, could this be a domino effect? Could we see more American businessmen or women caught up in the scheme?</s>ROTH: Oh, definitely. The shoes will keep dropping. One man already indicted. An Iraqi-American, Samir Vincent, has already cooperated. And it's believed that his cooperation resulted in some of the other indictment announcements today.</s>PHILLIPS: Richard Roth, we'll stay on the story. Thanks so much -- Miles.</s>MILES O'BRIEN, CNN ANCHOR: Well, $40 a pill, give or take, 290,000 pills. You do the math. It all adds up to a world of trouble, however, for two Air National Guard troops charged with smuggling ecstasy aboard their C-5 Galaxy cargo plane, largest cargo plane in the U.S. inventory. That was during an official flight from Germany. The drugs were found. The men arrested on Tuesday, after an otherwise routine mission to drop off training supplies in the former Soviet Republic of Georgia. The captain, by the name of Franklin, Franklin Rodriguez, and Master Sergeant John Fong, could face 40 years in prison if convicted.</s>PHILLIPS: In Ruskin, Florida, the search continues for missing teenager Sarah Michelle Lunde. She disappeared Sunday. And police are questioning sex offenders in that area. The latest now from our Susan Candiotti.</s>SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Among the 100 or so volunteers that are helping out this day, Mark Lunsford, whose daughter Jessica was killed allegedly by a sex offender who lived practically across the street from them. This happened about a month and a half ago, about 100 miles from here. Mark Lunsford saying he is here to lend support to Sarah Lunde's mother, who is desperately trying to find her daughter.</s>UNIDENTIFIED MALE: I spoke with Mr. Lunsford, as a matter of fact. And he said he came down here to help. He asked to be hooked up with a search team. We have done that. He also said that he would be here to speak with Kelly May, if she choose to do that. I have spoken with Kelly May, and she said that she is more than thrilled that Mr. Lunsford has come down to help.</s>CANDIOTTI: Police say one convicted sex offender of about 24 living here in the town of Ruskin, population about 8,000, has captured their attention. His name, David Onstott. He was arrested Tuesday night on unrelated charges and appeared in court this day for arraignment on a charge of failing to register at least once a year in Florida, as required by Florida law. Now, Sarah is only 13 years old. She is said to be very active in her church. She does come from a broken home. The church provided a home video of her, shot here washing a car last December. There's also a photograph of her taken on Saturday night. She was part of a church outing, and friends say she had a great time when she came home. Now, she has run away from home before. But authorities say she has always returned home. And friends say it is totally out of character for her to be away this long without phoning someone. Susan Candiotti, CNN, Ruskin, Florida.</s>PHILLIPS: And the Hillsborough Sheriff's Department is urging anyone with information to give them a call. The tip line is 813-247- 8200. That number again, 813-247-8200.</s>O'BRIEN: Other news "Across America" for you. Off the market. A Florida man has finally sold his clapboard home and 160 acres of land for $5 million. For years, Jesse Hardy rejected the state's repeated offers to buy his property. Says he wanted to hold on to a dying rural lifestyle. His land will be used for the multibillion-dollar Everglades restoration plan. There will be a lighter load for air travelers, quite literally. The TSA begins its ban on cigarette lighters. Starting today, lighters are banned everywhere on a plane. And passenger cannot check them into their bags, just like other dangerous items. And in Los Angeles, a freak freeway crash. Police say road debris smashed through the windshield of a minivan being killing two people. They're not sure if the object was intentionally thrown or if it hit the van by accident.</s>PHILLIPS: It's a case of teen angst turned deadly, according to some witnesses. A 13-year-old California boy is accused of beating his teammate to death with a baseball bat after a game. A candlelight vigil was held for the victim last night. Reporter Juan Fernandez with CNN affiliate KCAL has the story.</s>JUAN FERNANDEZ, REPORTER, KCAL (voice-over): A friend of 15- year-old Jeremy Rourke come together, trying to make sense of his untimely death.</s>UNIDENTIFIED MALE: I was in shock. I didn't -- I, like -- deep in my heart, I knew there was no saving that boy.</s>FERNANDEZ: Jeremy was pronounced dead at a nearby hospital. His good friend and teammate, just 13 years old, now charged with his murder.</s>UNIDENTIFIED FEMALE: All the kids are friends. We've all grown up together. All the kids have grown up together. The younger brother was best friends with this other child.</s>FERNANDEZ: Witness say that friendship became strained when Jeremy teased his 13-year-old friend about losing a baseball game.</s>UNIDENTIFIED MALE: Next thing you know, the boy pulled out a bat and he, like, kind of hit him once in the side and once up around the neck. And then he just hit him really with tremendous force to the head. And I just -- I saw his head just -- it sounded like a pumpkin getting hit with a bat.</s>FERNANDEZ: At Jeremy's school, where he was in the ninth grade, both students and teachers met with grief counselors.</s>UNIDENTIFIED MALE: I was just stunned. And I don't know why anyone would do that.</s>UNIDENTIFIED MALE: He was nice. I don't see him like attacking anybody or doing anything to get in like that kind of thing, you know. But, it's like, I don't see why somebody would do that.</s>FERNANDEZ: Rick Shade (ph) is a friend of Jeremy's family. Mother has a message.</s>UNIDENTIFIED MALE: She made the comment that, by no means was the kid a monster. Don't make him into -- that he was a very good kid. They were friends, believe it or not.</s>PHILLIPS: Thanks to our affiliate KCAL for that report. The 13- year-old is in custody for investigation of murder now, and prosecutor are expected to get the case. Straight ahead, he United States has a Department of Defense, but should it also have a department of peace? Straight ahead on LIVE FROM, Congressman Dennis Kucinich and best-selling author Marianne Williamson join us to talk about a bill proposing a secretary of peace. And can you get too much of a good thing? New medical research suggests that drinking too much water could actually be fatal. That's ahead.