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The Situation Room

Unrest in Egypt; Washington Landmarks Vandalized; Fears for U.S. Captive in North Korea; North Koreans Living in the Past; Screening Could Save Smokers from Lung Cancer; 'Real Housewife' Indicted on Tax, Fraud Charges; Stolen Diamonds Worth $136 Million

Aired July 29, 2013 - 18:00   ET

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

WOLF BLITZER, CNN ANCHOR: They fear another deadly crackdown by security forces, one that we saw over the weekend and maybe even worse.

There is also real concern that opposition to the interim military- backed government could possibly escalate into real fighting, including a civil war.

Our senior international correspondent, Arwa Damon, is now in Cairo. She's joining us.

First of all, Arwa, what's the very latest? What's happening on the streets of Cairo and Alexandria?

ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT: Well, Wolf, we were down at the pro-Morsy camps earlier in the day, and demonstrators there most certainly are digging in, despite warnings by the military-backed interim government that they need to disperse from these various areas of the capital that they have taken over.

They are saying that the more blood that is shed, the more determined they become. They have erected even more barricades to try to give themselves they say enough time to clear out women and children from these areas should security forces decide to go in.

They are also undertaking some pretty significant medical preparations, beefing themselves up in that aspect as well, especially following the violence you mentioned that took place over the weekend, leaving dozens of people dead. What we're seeing right now is an incredibly complex situation that this nation is facing, to say the least.

You have these two camps, the pro-Morsy camp and the anti-Morsy camp, becoming increasingly polarized and hardened in their stance. We also have the emergence of a much smaller third party calling itself that as well, saying that they are neither with the military nor with the pro-Morsy camp, the Islamists.

And you also have this sense amongst some people as well, Wolf, that this revolution that began over two years ago has been hijacked twice in their perspective. They will say first by Morsy, by the Muslim Brotherhood, by the Islamists and now by the military. And a lot of people with also yet another opinion saying that they're finding it increasingly difficult to see how the country is going to emerge from this standoff that threatens to grow more bloody by the day -- Wolf.

BLITZER: Because I know top U.S. officials are deeply concerned, Arwa. Right now the military, which is opposed to Morsy, as you know, and put this interim government in place, they have the weapons, they have the arms, but there is deep concern if the Muslim Brotherhood and the pro-Morsy forces wind up getting weapons, this thing could explode into a real, real dangerous situation.

So here's the question. Is there any indication that the Muslim Brotherhood, and they're protesting on the streets right now, are about to get weapons, if you will, to fight the military?

DAMON: Well, Wolf, they continue to claim that they have no intention of arming themselves, that, by and large, they most certainly, they say, want to continue to demonstrate peacefully.

Of course, we're hearing from the interim government that they are getting fired on by pro-Morsy supporters. They are blaming them by and large for the escalation in violence, for the bloodshed, saying the vast majority of the time, if not in all cases, that they are the ones who do fire first. They are calling them terrorists as well. And that is also what we're hearing from those who are currently supporting the military and this government.

At this point in time, of course, the weapons are in the hands of the military, but they also are coming under incredibly harsh criticism by groups like Human Rights Watch, Amnesty International for this ongoing excessive use of force.

America's position, of course, very difficult to understand exactly what that is at this point in time when it comes to Egypt, its policy not entirely clear, and a lot of anger from both sides here about what America's position is perceived to be at this point in time, so very difficult to see again how Egypt is going to extract itself from this incredibly dangerous precipice.

BLITZER: Arwa Damon in Cairo for us, Arwa, be careful over there. We will check back with you tomorrow.

One of the big questions in Egypt right now, who's really in charge? Would it be the civilian government or would it be the military who put this government into power?

Egypt's interim prime minister spoke exclusively with CNN's Hala Gorani.

And Hala is joining us now.

Hala, what did he have to say?

HALA GORANI, CNN INTERNATIONAL CORRESPONDENT: Well, who's not in charge is certainly the Muslim Brotherhood president, Mohammed Morsy, who was deposed on July 3, as you know and our viewers know, Wolf.

I spoke to the interim prime minister, a civilian government with heavy military backing. I asked him essentially, look, who's calling the shots in this country now? Is it the military leadership that engineered this second phase of revolution, or a coup, depending on who you talk to, or is it you, the prime minister, the head of the civilian government in Egypt, and why should the population of Egypt or the world trust the military once again in this country?

And this is what he had to tell me, Wolf.

(BEGIN VIDEO CLIP)

GORANI: Are you, the government, in charge? Or is the military in charge right now? Who is really calling the shots in Egypt?

HAZEM EL-BEBLAWI, EGYPTIAN INTERIM PRIME MINISTER: As far as I am concerned, I feel very much in charge with my council of ministers. And I haven't seen any indication or any sign from anyone to tell me what to be done.

We discuss. We have a large discussion in the Cabinet, but only -- but also other political activists that we would like to hear. We put our ideas to the people to discuss. But the moment I feel that the civilian government is besieged, I will put my resignation.

(END VIDEO CLIP)

GORANI: There you have it in this exclusive interview, Wolf, Hazem el-Beblawi.

I also asked him some very important questions about the Muslim Brotherhood going forward. They are promising an all-inclusive political process, yet, at the same time, they are detaining the ex- President Mohammed Morsy. They are jailing scores of Muslim Brotherhood members. And so many people doubt that this all-inclusive transparent political process will go smoothly.

The other big question, Wolf, is will we see more violence? I asked him, will the government allow Islamist protests in the street of Cairo? He said, sure, as long as they do it according to the rule of law and ask for permission for a specific place and a specific time.

Well, we know that Muslim Brotherhood protesters are not likely to do that, and so the question is going to be how much more bloodshed on the streets of Cairo, Wolf.

BLITZER: It's a dangerous situation, as I said, pivotal moment in the history of Egypt right now. Hala Gorani, good work. Thank you.

Let's turn to a small glimmer of hope right now for the Middle East, and for a peace process that has fixated and frustrated American presidents for generations. Here in Washington tonight, within the next few hours, Israeli and Palestinian negotiators, they will come together, they will sit down for the first time in three years to begin the peace process.

President Obama is calling this new round of talks, in his words, a promising step forward, but everyone involved acknowledges there are still plenty of obstacles and many hard choices ahead. Here's our foreign affairs correspondent, Jill Dougherty. She's joining us now from the State Department.

Jill, I take that it's going to be the small dinner with the representatives from Israel, from Palestine, and the United States, beginning this process?

JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: Correct.

And Secretary Kerry will be there. We expect that his new envoy will be there, Martin Indyk, and, of course, representatives from both sides, face to face. So it's a risk, but it's also an opportunity for everyone.

(BEGIN VIDEOTAPE)

DOUGHERTY (voice-over): Three years since direct Middle East peace talks broke down yet again, Secretary of State John Kerry is hoping this time could be different.

JOHN KERRY, U.S. SECRETARY OF STATE: I think reasonable compromises has to be a keystone of all of this effort. I know the negotiations are going to be tough. But I also know that the consequences of not trying could be worse.

DOUGHERTY: Just hours before Israel's representative Tzipi Livni and Palestinian negotiator Saeb Erekat were scheduled to sit down for a working dinner at the State Department, Kerry introduced his new Mideast envoy, veteran diplomat Martin Indyk.

MARTIN INDYK, MIDDLE EAST ENVOY: It's been my conviction for 40 years that peace is possible.

DOUGHERTY: Forty years of violence and little progress in creating a Palestinian state, existing side by side with Israel is a sobering reality. The negotiators must solve five key issues in order to ensure a two-state, borders, security, refugees, the status of Jerusalem and Palestinian recognition of Israel as a Jewish state.

Both sides are pledging to stick with negotiations for at least nine months.

JEN PSAKI, STATE DEPARTMENT SPOKESWOMAN: If we're making progress and we're continuing to make progress, this is not a deadline, it's not a stop end. It's just an agreement to continue to work through that time period.

DOUGHERTY: Reaching agreement will be a 24/7 operation from here on out, says one Middle East expert. And the leaders of the political territories, Israel as well as President Barack Obama have to give it their all.

AARON DAVID MILLER, PUBLIC POLICY SCHOLAR, WOODROW WILSON INTERNATIONAL CENTER FOR SCHOLARS: Abbas has to own them. Netanyahu has to own them. And ultimately, ultimately, the president of the United States, who's probably going to have to close this deal in a high-profile, high-risk Camp David-like summit, is going to have to own it, too.

(END VIDEOTAPE)

DOUGHERTY: So, tonight, we have got this Iftar working dinner, and Tuesday, they will be having these face-to-face talks, and they're basically procedural talks that are going to lay the path for the substantive talks that will be taking place, we expect, and those will be in the Middle East -- Wolf.

BLITZER: We will watch it every step of the way. Let's hope they succeed. God knows they really need peace in that part of the world. And you have got to give the secretary of state a lot of credit for trying as much as he has over these past several months. Jill Dougherty, thanks very much.

This just in. The United States Senate has confirmed James Comey to be the next director of the FBI. He received obviously very strong bipartisan support. Look at this, the final vote, 93 in favor of confirmation to one, with two senators voting present. Senator Rand Paul, by the way, with the single no vote against James Comey. Just a little bit ago, Senator Paul announced why he wanted to filibuster, why he opposed Comey, saying the FBI has not necessarily answered all of his questions about the potential use of drones in the United States.

Paul says the bureau did inform him it doesn't necessarily need a warrant to deploy this technology and while he doesn't agree with that, he stopped blocking Comey's confirmation, even though he voted against it on the final roll call vote, overwhelming support, 93-1, two present, in favor of Comey.

Up next, a major crackdown on child prostitution. From racetracks to truck stops across the United States, the FBI says dozens of young people have been rescued.

And only days after a vandalism at the Lincoln Memorial here in Washington, two more Washington landmarks have been splattered with green paint. We are now learning of an arrest.

(COMMERCIAL BREAK)

BLITZER: First, it was the Lincoln Memorial. Now two more Washington landmarks have been vandalized in the very same way, splattered with green paint.

It was found on a statue near the Smithsonian Castle and then just a few hours ago inside a chapel at the National Cathedral here in Washington.

CNN's Erin McPike has been working the story for us.

Erin, I take it now we're getting word of an arrest.

ERIN MCPIKE, CNN CORRESPONDENT: There was one arrest today.

D.C. police tells CNN they arrested a female today at the National Cathedral where they found wet green paint splattered on an organ console in the Bethlehem Chapel. There was even more of that paint in the children's chapel. They charged the woman caught there with defacing property, but that's all police can tell us at this time because the investigation is still ongoing.

And it may be separate from two other sightings of green paint in just the past few days, because over the weekend, park police discovered more green paint doodled at the back of the statue in front of the Smithsonian Castle, and that's after discovering green paint thrown on the Lincoln Memorial early Friday morning.

Now, police have yet to determine if all of these incidents are connected, but the good news, Wolf, is that officials say that in all of these cases, the green paint can be cleaned up rather easily.

BLITZER: So, basically, we don't know if this is one individual doing this or copycats.

(CROSSTALK)

MCPIKE: Right. Exactly. It could absolutely be a copycat crime.

BLITZER: So, that's what's going on. All right, thanks very much. And keep us informed, Erin McPike working the story.

The FBI says more than 100 children have been rescued in its largest ever undercover crackdown on child prostitution. It uncovered one especially disturbing trend, pimps cashing in on increased demand surrounding major sporting events like the Super Bowl and the NCAA Final Four.

Our crime and justice correspondent, Joe Johns, is joining us now. He's got details.

What is the FBI saying about this sting, Joe?

JOE JOHNS, CNN CRIME AND JUSTICE CORRESPONDENT: Wolf, it was the FBI's largest operation to date in a decade of crackdowns on the use of children in the sex trade in some of America's largest cities. It's a human tragedy, and frankly a little shocking that so many examples of this were brought out into the public's view over a single summer weekend.

(BEGIN VIDEOTAPE)

JOHNS (voice-over): The FBI recorded and provided video of the operation to the public. The numbers for just 72 hours of work are staggering, investigations in 76 cities, 105 teenagers between the ages of 13 and 17 pulled out of the world of prostitution, 150 suspected pimps arrested.

RONALD HOSKO, ASSISTANT FBI DIRECTOR: This operation targeted venues where girls and adults are operated for commercial sex. That includes street tracks, truck stops, motels, casinos, Internet sites, social media platforms, and the like. JOHNS: More and more, authorities treat young prostitutes as victims, as opposed to perpetrators. The FBI provided this interview with a woman now 21 who described the hopelessness she felt in the sex trade.

UNIDENTIFIED FEMALE: You are at the bottom of the bottom. And you have nobody to go to, not even to go to for help, for a hug.

JOHNS: The breakdown of the targeted cities in Operation Cross Country tells a lot. San Francisco had some of the highest numbers, 12 juveniles taken off the streets and 17 alleged pimps arrested, in Detroit, 10 juveniles, 18 alleged pimps, Oklahoma City, three juveniles and 13 alleged pimps, arrests in Atlanta, Jackson, Mississippi, Reno, Nevada.

JOHN RYAN, NATIONAL CENTER OF MISSING AND EXPLOITED CHILDREN: It's consistent with what we receive on a monthly basis in terms of reports of potential child sex trafficking. It's across the country. It's in every community, every state. It's not unique to any one part of the country or region.

JOHNS: Authorities say it's not uncommon for suspects and victims to be identified around big athletic events such as the Super Bowl and the NCAA Final Four.

HOSKO: We see gathering of people with excess money and interested in the festivities and frolic that go around high-profile sporting events.

(END VIDEOTAPE)

JOHNS: Some teenagers who were rescued from this lifestyle return to it, which is the most troubling thing of all. If you see a kid out streetwalking, National Center for Missing and Exploited Children says you need to pick up the phone and get them some help -- Wolf.

BLITZER: Good advice. Joe, thanks very much.

Up next, remarkable comments by Pope Francis about gays. Is the Catholic Church changing its stance?

BLITZER: And look who popped into the White House today. We have details of a closely watched power lunch between Hillary Clinton and President Obama.

(COMMERCIAL BREAK)

BLITZER: Let's take a quick look at some of the other top stories in THE SITUATION ROOM developing right now.

Lots of people in Washington and beyond would have loved to have been a fly on the wall at this lunch. Hillary Clinton joined President Obama at the White House for about two hours earlier in the day. Officials there won't say what they talked about, but a deputy press secretary says it was largely friendship on the agenda. And now we're hearing the former secretary will have breakfast tomorrow with Vice President Joe Biden, a potential White House rival if she decides to run for the Democratic nomination and if he decides to run for the Democratic nomination.

Anthony Weiner's latest sexting scandal is taking a toll on his race for the New York City mayor. A new Quinnipiac University poll of likely Democratic primary voters shows 53 percent think he should drop out of the race. And if he stays in, the same poll shows Weiner now in fourth place. He was in first place before new revelations that he continued to send lewd messages after he resigned from Congress. Weiner's campaign manager resigned over the weekend.

Pope Francis stunned reporters on his flight home from Brazil with a remarkably candid question-and-answer session. When asked about gay priests, the pope said, and I am quoting him now, "If someone is gay and he searches for the lord and has good will, who am I to judge?"

Our Vatican analyst, John Allen, says the remark represents a significant shift in tone for the Catholic Church, though not necessarily a major shift in substance. We shall see.

Still ahead, questions about a high-level mission by former President Jimmy Carter. Is he now planning a trip to North Korea? We will have the latest.

We also have important news if you're a smoker. New research could save your life.

(COMMERCIAL BREAK)

BLITZER: Happening now: a new generation of threats in North Korea. We're inside the secretive country, watching Kim Jong-un and the source of his power.

Plus, the French resort of Cannes rocked bay new jewel heist. The stolen diamonds are worth more than we realized.

And "The Real Housewives of New Jersey," they are used to brawls, but now two stars of the show are in a legal fight against a 39-count criminal indictment.

I'm Wolf Blitzer. You're in THE SITUATION ROOM.

Relatives of an American held captive in North Korea are growing more concerned by the day about his condition. Kenneth Bae was arrested last November and sentenced to hard labor in may for crimes against the state. Now there's talk of a high-level mission to North Korea to try to secure his release, possibly, possibly by a former United States president.

Brian Todd is looking into the story for us.

Brian, what are you finding out?

BRIAN TODD, CNN CORRESPONDENT: The keyword possibly, Wolf. Jimmy Carter's aides say he has no immediate plans to go to North Korea, but that language could be a bit calculated right now. Mr. Carter has been known to appear in North Korea on his own missions with little notification. And the case of this American being held might just prompt him to make that trip.

(BEGIN VIDEOTAPE)

TODD (voice-over): He says he faces eight hours a day of farm labor. In a recent interview with a pro-North Korean group, Kenneth Bae, an American citizen being held in a North Korean labor camp, choked up when he talked about missing his father's 70th birthday.

KENNETH BAE, AMERICAN HELD IN NORTH KOREA (through translator): My hope still is that North Korea will forgive and the U.S. will try harder to get me out speedily. I'm asking for their help. I am an only son. My father, I really hope to go congratulate him on his birthday.

TODD: I spoke to Bae's sister, Terri Chung, who says she's received letters from him in recent days.

(on camera): What did he say in those letters about his condition and where he's being held?

TERRI CHUNG, BAE'S SISTER: He didn't say where he's being held, but his concern, and of course ours, as well, is that his health is deteriorating. He has some health problems, including diabetes, an enlarged heart.

TODD (voice-over): Kenneth Bae was sentenced recently to 15 years in that North Korean camp. North Korea's news agency said he'd been accused of hostile acts aimed at bringing down the regime. His sister says he was conducting tours, but she also spoke of another charge leveled against him: planning anti-North Korean religious activities.

CHUNG: He is a man of faith and a strong Christian. And I think his religious convictions might have gotten him in trouble.

TODD (on camera): Japanese and Korean news agencies are reporting that former president Jimmy Carter is at least considering going to North Korea, possibly to try to win Bae's release. The Carter Center tells us the former president has no immediate plans to go.

(voice-over): But Carter has shown an unpredictable streak regarding North Korea. In the mid-1990s, when tensions between Washington and Pyongyang were at their highest, Carter brokered a deal with the regime on his own to dial it back. But angered the Clinton administration for freelancing.

In 2010, Carter went to North Korea and helped to earn the freedom of another American, Aijalon Mahli Gomes.

I spoke to former CIA analyst Chris Johnson about that, about Bill Clinton's 2009 trip to secure the release of two journalists, and about what's in it for North Korea.

(on camera): What is their psychology in this? What do they get out of it?

CHRIS JOHNSON, FORMER CIA ANALYST: I think, once again, it's that desire, that craving for recognition from the U.S. You know, we've been through another one of these cycles now where there's really no dialogue going on between the two sides, and that's what frustrates and drives the North Koreans crazier than anything else.

(END VIDEOTAPE)

TODD: The State Department would not comment on the reports of Jimmy Carter possibly going to North Korea. The White House would say only that if he's going, it would be as a private citizen.

In the meantime, Kenneth Bae's sister says she contacts the State Department every week, imploring them to do what they can to win her brother's release -- Wolf.

BLITZER: I know you've spoken with a lot of -- spoken with a lot of analysts who followed North Korea very closely. How do they think the new leader, Kim Jung-un, the young leader of North Korea, would receive Jimmy Carter?

TODD: Well, he's the real wild card here, as always. Kim Jong-un never received a major American dignitary before, like his father and grandfather has.

Chris Johnson pointed out that he's been known to veer away from that playbook that's written by his father and grandfather in these situations. But Johnson also says that if someone of Jimmy Carter's stature does come to Pyongyang, it's likely that Kim Jong-un is going to play that propaganda card and use it to his advantage. And we'll see Jimmy Carter with full honors and use the whole thing to his advantage.

BLITZER: He did receive Dennis Rodman, Kim Jong-un, the NBA star, who later came back and appealed to his pal, Kim Jong-un, to release Kenneth Bae.

TODD: And you know, you get the sense that Kim Jong-un wants someone of a higher stature, and maybe they're playing for a higher card here.

BLITZER: His first choice, before Dennis Rodman -- I know this for a fact -- was Michael Jordan, but obviously, Michael Jordan declined that overture.

When I was there in December of 2010, it was a very tense moment, too, but you could see exactly that point the North Korean leadership. They want to have what they see as a normal relationship with the outside world. The outside world, though, the U.S. and the others, they want North Korea to step down on its nuclear weapons program. That's been the big sticking issue.

TODD: I'm going back and forth, and every analyst will tell you exactly what you just said: They crave that attention from the United States. Give us legitimacy in your eyes. But again, the Americans won't do it unless they really dial back the nuclear program. It's an ongoing back and forth.

BLITZER: We'll see if the former president, Jimmy Carter, goes and if he brings home Kenneth Bae. Thanks very much.

American captives, nuclear threats, taunting the United States. North Korea under Kim Jong-un has many similarities to the days when his father and grandfather ruled that country. In many ways, the nation is fixated on the past.

Our senior international correspondent, Ivan Watson, is inside North Korea and filed this report.

(BEGIN VIDEOTAPE)

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): North Korea is probably the only country in the world that organizers are dedicated to two flowers, red and purple blossoms called Kim Il- Sungia (ph) and Kim Jong-Ilia (ph), named after two former rulers of the country, North Korea's founder, Kim Il-sung, and his son, Kim Jong-Il.

UNIDENTIFIED FEMALE: It represents the greatness of our great leaders. And so when you look at this, it fills us with much yearning of our great leaders.

WATSON: From a very early age, North Koreans are taught quite literally to worship their leaders, bowing before the palace that is the final resting place of both father and son.

For visitors to this strictly disciplined militaristic society, it's good to be reminded that children still love the little things in life.

(on camera): Who has roller blades?

UNIDENTIFIED MALE: I do.

UNIDENTIFIED FEMALE: I do.

WATSON (voice-over): But ask a 12-year-old what's his favorite TV show, and he answers, "I like cartoons and documentary films about Kim Il-sung."

These days, there's a new ruler of North Korea, Kim Jong-un, a man in his 20s, who should represent a fresh new generation of North Koreans. But recent military parades celebrating the 60-year anniversary of the end of the Korean War look very similar to parades that were held in this same square 15 or 20 years ago.

As part of the celebration, Kim Jong-un inaugurated a brand-new museum.

(on camera): This gilded museum is the latest stop on our very guided tour of Pyongyang, and it's dedicated to the Korean War. Built by Kim Jong-un, the current leader of North Korea.

And we've heard about the colossal loss of life 60 years ago, but if you take a look in here at the end of the day, it still focuses very much on Kim Il-sung, the founder of the country, who bears a remarkable resemblance to his grandson, the current leader of the country.

(voice-over): Experts say the North Korean government is deliberately trying to link the grandson to the image of his grandfather in the eyes of the public.

Since the relative wealth of the 1960s and '70s when Kim Il-sung was leader, North Korea has gone through a deadly famine, and its economy is a tiny fraction of the size of South Korea's.

Though today some North Koreans may have cell phones, they still don't have access to e-mail, Internet, or even international calls.

During anniversary celebrations, a top official from China, North Korea's wartime ally, stood by Kim Jong-un's side. But in recent decades, China has taken a very different, prosperous path of development. While North Korea's leadership remains committed to communism and to a dynastic cult of personality. As it celebrates a 60-year-old war, North Korea still seems to be living in the past.

Ivan Watson, CNN, Pyongyang.

(END VIDEOTAPE)

BLITZER: And coming up here in THE SITUATION ROOM, we have details of new cancer research that could save thousands of lives every year.

Plus, a reality TV star indicted. Details of the charges against a "Real Housewife of New Jersey."

(COMMERCIAL BREAK)

BLITZER: Here is some information you need to know. Selective screening may -- may -- help reduce the death rate from the top cancer killer. That would be lung cancer. Our chief medical correspondent, Dr. Sanjay Gupta, has details of new research and the potential to save thousands of lives each year.

(BEGIN VIDEOTAPE)

DONNA CRAIG, LUNG CANCER SURVIVOR: Perfect. This is me every morning.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (voice-over): Swimming. It was something Donna Craig never thought she'd be able to do as a lung cancer survivor. She's still going strong at 81, spending lots of time with her children and her grandsons.

You see, Craig was a smoker for most of her adult life. Then an ad in the local newspaper caught her attention.

CRAIG: It said, "If you smoked a long time, we're looking for you." So I thought it wouldn't hurt. So I signed up and had the first scan negative.

GUPTA: She went back the next year.

CRAIG: Second scan, negative.

GUPTA: And a year later.

CRAIG: Third scan, large tumor. I still had no symptoms of any kind. If it hadn't been for that test, I wouldn't be here.

GUPTA: Craig was screened at MD Anderson Cancer Center for a national study...

DR. REGGIE MUNDEN, LUNG CANCER SPECIALIST: When the patient comes into the scanner here...

GUPTA: ... where she got a spiral CT scan, just like this one.

Knowing who to screen is vital. Because there's a high false positive rate, which can lead to invasive procedures, even surgery for patients who turn out not to have cancer.

Recent studies, including the one Donna participated in, show if you focus on current or former heavy smokers, the downside is smaller. More of the suspicious findings really are cancer.

(on camera): So just by figuring out who to screen, in this case heavy smokers, you can make a huge impact.

DR. RONALD DEPINHO, MD ANDERSON CANCER CENTER: Amongst the smokers, we can identify those that are knocking on cancer's door, enlist those into even more intensive screening -- which at this point is spiral CT, a CAT scan, X-ray of the test -- that identifies lesions that could be suspicious.

GUPTA (voice-over): While lung cancer is the biggest killer of men and women, as far as cancer goes...

MUNDEN: Typically do when you see this.

GUPTA: ... Dr. Reggie Munden says diagnosing early can change that.

MUNDEN: If you catch it late, the chances of surviving the disease are poor.

DEPINHO: So just by shifting the stage, you have an opportunity to impact on 175,000 deaths per year.

CRAIG: Hi, honey. I'm sorry I missed Paul's call.

GUPTA: Today, Craig is more than seven years cancer-free.

CRAIG: It feels wonderful. I feel very, very lucky and very grateful.

GUPTA: Dr. Sanjay Gupta, CNN, reporting.

(END VIDEOTAPE)

BLITZER: All right. So here's the bottom line. People 55 to 79 years old who smoke 30 packs a year or more and have smoked within the last 15 years should consider getting screened.

For all the latest in medical news, be sure and watch Sanjay Gupta, "SANJAY GUPTA, MD," every Saturday afternoon at 4:30 p.m. Eastern, Sunday morning, 7:30 a.m. Eastern, right here on CNN.

Still ahead, you're going to find out why Teresa and Joe, "The Real Housewives of New Jersey," they have been slapped with a federal criminal indictment.

And a driver gets a ticket for running a red light and sparks fly.

(BEGIN VIDEO CLIP)

JASON LAWTON, POLICE OFFICER: You think I'm being silly?

ROD MACIVER, ARTIST: I just think you're being ridiculous.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

BLITZER: Real-life trouble for one of "The Real Housewives of New Jersey." Teresa Giudice and her husband, Joe, now indicted on fraud and tax charges.

CNN's business correspondent, Zain Asher, has got the details for us.

Zain, what happened here?

ZAIN ASHER, CNN BUSINESS CORRESPONDENT: Hey, Wolf.

Well, first of all, this right here in my hand is the 33-page indictment against the celebrity couple. It is a pretty exhaustive list of charges: 39 counts in total, including -- get this -- a conspiracy to defraud lenders and illegally obtain mortgages.

So, for example, authorities say that in September 2001, Teresa applied for a mortgage loan that falsely stated that she worked as an executive assistant, when in actual fact, she was unemployed. She also allegedly submitted fake W-2 forms.

The couple is also accused of hiding their income and assets from the feds during a bankruptcy case, pretty much lying about how much money they were making on "The Real Housewives of New Jersey."

Now Joe Giudice, her husband, was also charged with failure to file tax returns for four years from 2004 to 2008, when he allegedly made just under $1 million.

Now, Teresa has issued a statement. She is standing by her man. She says -- I'm quoting here -- "I am committed to my family, and I intend to maintain our lives in the best way possible, which includes continuing my career. As a result, I am hopeful that we resolve this matter with the government as quickly as possible."

Now, we reached out to Bravo to find out if the couple would still be allowed on the show. Bravo actually is not commenting at this point.

I did also reach out to the couple's publicist, who says that Bravo hasn't yet given any indication that the couple would let go or be fired from the show.

But lastly, Wolf, just to get you a sense of how serious these charges are, loan application fraud carries a maximum penalty of 30 years in prison and a $1 million fine. Failure to file tax returns carries a maximum penalty of one year in prison for each count and a $100,000 fine.

Now, lastly, they do have an initial court appearance tomorrow at 10 p.m. Their lawyer says their arraignment will be some time over the next few weeks. The couple, I am told, plans to plead not guilty -- Wolf.

BLITZER: Zane Asher reporting for us. Thanks, Zain, very much. We'll see what Bravo decides to do.

Somewhere in the world right now, a jewel thief is hiding -- get this -- $136 million worth of diamonds. It turns out the stolen gems were worth more as twice as we were first told yesterday when the robbery happened in the French resort of Cannes. You may know the city for its film festival, but it also has a reputation as a jewel thief's paradise.

CNN's Erin McLaughlin is there.

(BEGIN VIDEOTAPE)

ERIN MCLAUGHLIN, CNN CORRESPONDENT: Wolf, police are scouring thousands of hours of surveillance video to try and figure out how a man who prosecutors say they believe was acting alone was able to walk into that hotel armed with a semiautomatic pistol and steal over $100 million worth of jewelry.

(voice-over): It's a story straight out of a Hitchcock film.

UNIDENTIFIED MALE: Filmed on the beautiful French Riviera.

MCLAUGHLIN: One man walks into a hotel in Cannes, France, and walks out with $136 million worth of diamond jewelry.

UNIDENTIFIED FEMALE: Diamonds. The only thing in the world you can't resist.

MCLAUGHLIN: The Carlton Hotel, the setting for the iconic movie "To Catch a Thief," was the sight of one of Europe's biggest jewelry heists Sunday morning.

UNIDENTIFIED FEMALE: It was a gun and nobody stopped him. Nobody -- I don't know -- there was nobody around, and they just gave him $40 million worth of jewelry. It's just incredible.

MCLAUGHLIN: Police say a robber whose face was covered by a hat and scarf threatened to shoot exhibitors and guests during the holdup. Cannes, home of the international film festival, is known for its glitz and glamour, but lately, it's become a magnet for jewelry theft.

In May, a $2.6 million necklace belonging to jeweler de Grisogono was taken from a hotel party. Later that same month, over $1 million worth of Chopard jewels were stolen from a safe in the Novotel Hotel.

This latest heist comes just two days after a member of the notorious Pink Panther jewel thief gang escaped from a Swiss prison. However, it is too soon to say if there is any link to this incident.

Authorities are looking through surveillance footage of the crime.

DONALD PALMIERI, SECURITY EXPERT: Diamonds are like cash. They're the most concentrated form of wealth on the face of the earth. So they can -- they can be very influential in acquiring weapons, in acquiring drugs, or anything else that we want to keep out of society.

MCLAUGHLIN (on camera): Thankfully, no one was hurt. Not a shot was fired. But plenty of questions remain as to how this could have happened. Why there wasn't more security. After all, this is looking like it could be one of the biggest gem thefts in European contemporary history -- Wolf.

(END VIDEOTAPE)

BLITZER: Erin McLaughlin reporting from Cannes in the south of France. Thanks very much. We'll stay on top of that story.

Up next, Jeanne Moos and the accused red-light runner who fought back.

(BEGIN VIDEO CLIP)

MACIVER: I want you to leave me alone, go do your job and find somebody that broke the law.

LAWTON: OK. I'll be right back.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

BLITZER: Now we have a new photo to show you of the first panda twins born in the United States in a quarter century. Take a look at this image from Zoo Atlanta's Facebook page. We're told that the 14-day- old panda twins -- yes, twins -- known as Cub A and Cub B -- have been growing quickly. Cub A, which used to be the smaller of the two, has had a huge growth spurt, and is now actually bigger than his brother.

Sweet vindication for one outraged driver, thanks to a police dash camera. Here's CNN's Jeanne Moos.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): It was a ticket for a red light that had a Vermont motorist seeing red.

LAWTON: You think I'm being silly? UNIDENTIFIED MALE: I think you're being ridiculous.

MOOS: Let's back up a minute. Shelburne Police Officer Jason Lawton was in his cruiser waiting for this light to change when he saw a pickup truck go through the intersection. The officer then followed the pickup for about two miles before pulling it over.

MACIVER: I went through a red light?

LAWTON: Yes.

MACIVER: I did not.

MOOS: Artist Rod MacIver was adamant that he didn't run any light, but he later apologized for his belligerence.

LAWTON: I'm telling you the reason why I stopped you...

MACIVER: Well, I think you're completely out to lunch. What are you doing, smoking pot or something?

LAWTON: Is this how it's going to go?

MACIVER: Yes, absolutely.

LAWTON: Really?

MACIVER: Yes, I want you to charge me for going through a red light.

LAWTON: Do you?

MACIVER: Yes. Miles ago. Miles ago.

MOOS: The officer did ticket him for running the light, and when MacIver filed a complaint, he said he got this e-mail from the officer's superior, Sergeant Allen Fortin: "I reviewed this tape. You were in violation and when you were stopped, you asked (screamed) at the officer, to issue you the ticket, so please feel free to contest the ticket."

MacIver did, but first he asked for the dash cam video.

(on camera): So how hard was it to get hold of that dash cam video? MacIver said it took weeks. He kept having to ask for it over and over, about five phone calls, a couple of e-mails. He had to pay a $45 fee.

(voice-over): When he finally got it, MacIver watched his pickup go through a yellow light before it turned red. A judge dismissed the ticket, but MacIver decided to sue in small claims court for $2,000, about what he estimated all the time he'd spent was worth, and to make a point.

MACIVER: I am driven by their lack of honesty.

MOOS: CNN tried to contact the attorney for the officers but got no response. The officers didn't show up for a court proceeding Friday, waiting in the nearby coffee shop.

The officer who wrote the ticket told the traffic judge that he thought he saw the truck run the light, but admitted the video showed he was wrong.

MACIVER: And he is going to learn a difficult lesson out of this.

MOOS: A lesson taught by a guy who got caught red-handed, not running a red light.

MACIVER: I want you to leave me alone, go and do your job and find somebody who broke the law.

MOOS: Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

BLITZER: MacIver, by the way, says it's the message, not the money, that matters and that he's willing to tell the judge he'd be happy with an award of $1.

Remember, you can always follow what's going on here in THE SITUATION ROOM on Twitter. You can tweet me @WolfBlitzer. You can tweet the show, @CNNSitRoom.

Tomorrow, a special guest, Senator Rand Paul, is coming under some serious criticism from some of his fellow Republicans. We have lots to discuss. Senator Rand Paul joins me tomorrow right here in THE SITUATION ROOM.

Until then, thanks very much for watching. I'm Wolf Blitzer in Washington. "ERIN BURNETT OUTFRONT" starts right now.