tv CBS Overnight News CBS February 2, 2016 3:42am-4:30am EST
mineral rights. so companies are eager to get ahold of minerals. >> yes. >> so they pay some special money for it. kaiser said it was all legal. he told attorney james silkenaught that the minister was shopping for a townhouse, a jet and a yacht. but his name must not be connected to the purchases. >> if his name now would appear in connection with buying some items, it would look at least very, very embarrassing. >> right. presumably his salary and, wherever it is, would not cover the kind of acquisitions? >> sure, the salary of a teacher here.
being able to buy property here? and to live a nice life but his name being out? >> right. any guesses as to how much money we are talking about, for the brownstone and other items? >> for the brownstone, $10 million. for second hand gulf stream, $10 million, $20 million. a yacht would be at least $2 million, $3 million. >> reporter: the fictitious story of the minister was cooked up in global witness's london office based on a money laundering case. the investigator phoned 50 law firms with experience in private asset protection and got face to face meetings with 16 lawyers in 13 firms. >> i would say, gray money. i think somebody, blank money. >> reporter: global witness says the pitch was designed to to raise red flags and to give the lawyers good reason to suspect
came from official corruption. and they all did. >> i told you the money is a bit tainted. >> tainted. >> pretty much. >> okay. >> you gave another expression. so i have to be frank. how would you name it? >> some people call it bribes. >> no, not bribes. business deals. okay, bribe. bribe. >> the story, the african minister would have raised eyebrows for the average person on the street. >> co-founder of global witness, public advocacy group that exposes. corruption in the developing world. previous undercover investigations, exposed the african blood diamond. this investigation, she says, exposes flaws in the u.s. legal system that made it a hub for international money laundering. >> what the lawyers laid out for
different possibilities and ways in which it could be done. >> reporter: if you want to get dirty money into the united states it is not that hard to do. >> i am saying there is an open door. and pretty shocking and pretty concerning. because, that money could be coming from anywhere. >> reporter: of the 16 lawyers that global witness recorded in the preliminary meetings, only attorney, jeffrey herman flatly declined to participate and showed ralph kaiser the door. >> i have some real questions about that -- under the foreign corrupt practices. >> right. >> under the foreign corrupt practices act, bribing foreign officials is illegal. >> by americans. >> by americans. >> but americans are not involved? so it is money from others, not
>> it's not -- >> aside from one exception. 12 of 13 law firms, including 15 of 16 lawyers, not only heard kaiser out, they suggested ways that the suspicious fund could be moved into the u.s. without compromising the minister's identity. attorney james silkenaught was select by global witness. at the time he was president of american bar association. he and his colleague, provided what prosecutors said was a road map using layers of interconnected shell companies in multiple jurisdictions. >> presumably, set up a little bit of series of owners to tripe to have protect, privacy as much as anything else. >> yeah. >> company a owned by b, c, d. and your party owns -- all of the majority of the shares of cc and d.
in new york? >> at some point. probably pretty quickly you go offshore. >> reporter: attorney john jankoff and partner, recommended variations of the same strategy. >> lot of people in africa use the isle of mann, some use liechtenstein, and just take his millions of dollars put it into a swiss bank account. swiss will have it. and then -- he comes to us. then he comes to us. >> the attorney also suggested the minister could move his money out of west africa to europe where it could be scrubbed in anonymous corporate entity that his firm would be happy to set up. >> the money as it sits now, in his name? >> it is different names. >> okay. so it will come as -- different names. >> including his name.
beginning or intermediary location. >> how you do this? that means the bank in liechtenstein, luxembourg? >> we'll set up an appropriate entity. called it clientoverseas.com. whatever. that will send money into the united states. >> reporter: if that was a banker talking instead of a lawyer. he could be in serious trouble. that's because under u.s. law, bankers are required to report suspicious financial activity to the authorities. lawyers are under no such legal obligation. banks in america are required to be cognizant of risk and report on it if there is an
yet, absolutely bizarrely american lawyers aren't. this is clearly an issue. i think our investigation has shown the potential for what could happen. because of that lack of >> reporter: global witness says that anomaly is one of the flaws in the u.s. legal system that laundering. >> another is the ease with which anonymous shell companies can be set up here to conceal ownership of money and assets. last year, 2 million new corporations were set up in the united states, many with no offices, products, or employees. just an address, and perhaps a bank account. >> the in many states across america you need less identification to open an anonymous company than a library guard. >> anonymous shell come pans are get away cars for crooks. designed to put them as far away as possible from the scene of their crime. according to a world bank study, the u.s. was the favorite place to set up anonymous shell companies. >> there was a good academic
place to set up after kenya. >> did the study have anything to do with your decision to do these undercover investigations? >> it inspired us. we thought it can't be this bad, can it? what we found was it is. >> we'll have part two of steve croft's story, tomorrow. or you can see the full report cbsnews.com. the overnight news will be right back. music introducing new k-y touch gel cr me. for massage and intimacy. every touch, gently intensified. a little touch is all it takes. k-y touch.
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the world health organization declared international emergency over the zika virus. the virus carried by mosquitoes and running rampant through latin america and the caribbean. most people may not notice they have zika. for pregnant women it can cause miscarriage or birth defects. >> coordinated response is needed to minimize the threat in affected countries and reduce the risk of further international spread. >> dr. jon lapook has more from ground zero in the zika fight. >> brazil hardest hit by the zika virus. it may have arrived in 2014 in the u.s. soccer tournament since then exploded infecting 1.5 million people here in brazil alone. the fear is it could spread to another 4 million people across the america's in the next 12 months.
scene. health officials spraying insecticide in the hopes of killing this. the mosquito responsible for the zika virus sweeping through latin america and the caribbean. the virus suspected of causing increase in microcephaly. children born with unusually small heads often with brain damage. more than 4,100 suspected cases of microcephaly have been reported so far in in brazil. pregnant women fear other side effects from the virus. >> the public doesn't know everything about the disease. we don't know, exactly the consequence of it only microcephaly. >> reporter: tourism will likely suffer despite officials downplaying risks to visitors. rio's carnival begins, february 5th. health workers here took to the streets armed with instruments and information. and brazil set to host the
nothing really you can do. if you are planning taking a trip to niagara falls. you better go soon. new york state is making plans to dewater the falls on the u.s. side. state says -- two historic bridges are in desperate need of repair the to get that done they have to reroute the river at least for a time. vinita nair has more from the falls. >> reporter: you see and hear the roaring falls, hard to imagine engineers could divert this much water. this is only 15% of the water. the canadian side has 85% of it. the plan could affect that side as well. it is a view that will take your breath away. more than 750,000 gallons of water gush over the edge every second. but for the millions of tourist
each year they could soon be in for a big surprise. >> what makes us nervous when the featured attraction american falls has to be turned off. even for a short period of time. >> reporter: yes, turned off. the new york state park's department wants to divert the river to the canadian side to replace two bridges closed to the public since 2004. rotted and rusted from century next to the falls. >> either we replace them or they crumble into the river. if they crumble we will have an environmental mess to clean up. >> reporter: daming the river would make american side nonexistent while the horse shoes falls in canada would become more intense. dewatering could lead to more visitors seeking once in a lifetime opportunity. >> potential is huge for us to build a successful strategic, directed marketing campaign around the activity. >> reporter: this isn't the first time the iconic falls have stopped flowing. in 1969, u.s. army corps of engineers diverted water, to study effects of erosion. ultimately the temporary dam was removed with millions of coins people tossed in. and being in upstate new york they can freeze during the
winter or aper to. in 2014 and 2015 during the polar vortex, ice formations grew out of the falls. underneath the water kept rushing. for locals seeing the icon waterless is a step in the right direction. >> this is such a beautiful area, one of the wonders of the world. finally they're putting money become into this place. >> reporter: if the project is a prove it will still take several years for the work to begin.
this is the cbs overnight news. freshman senator ted cruz of texas has done it. he won last night's republican caucuses in iowa. democrats hillary clinton and bernie sanders split the vote. cruz beat donald trump who finishes second after skipping the last gop debate. a surprisingly strong showing by florida senator marco rubio gives him third place. and a claim to the title establishment alternative. mike huckabee who won iowa eight years ago is dropping out. >> tonight is a victory for millions of americans who have
years of washington deals run amok. tonight is a victory for every american who has watched in dismay as career politicians in washington in both parties refuse to listen and too often fail to keep their commitments to the people. tonight is a victory for every american who understands that after we survive eight long years of the obama presidency, that no one personality can right the wrongs done by washington. to the revolutionary understanding that all men and all women are created equal. that our rights do not come from the democratic party or the republican party or even from
our rights come from our creator. and the federal government's role, the federal government's responsibility is to defend those fundamental rights, to defend us. and while americans will continue to suffer, under a president who has set an agenda that is causing millions to hurt across this country, i want to remind you of the promise of scripture. weeping may endure for a night, but joy cometh in the morning. >> and we finished second, i want to till you something. i'm just honored. really honored. i want to congratulate ted. i want to congratulate all of the incredible candidates including mike huckabee who has
congratulations to everybody. [ applause ] congratulations. we have had every indication, we are going now on, we have a poll we are at 2 points a 8 points ahead. new hampshire. we love new hampshire. we love south carolina. and, we're leaving tonight and tomorrow afternoon we'll be in new hampshire. that will be something special. a great week. up here next week. i think we are going to be proclaiming victory, i hope. i will say this -- i don't know who is going to win between bernie and hillary, i don't know what is going to happen with hillary has got other problems maybe bigger than the problems she has in terms of nominations. but we have had so many different indications and polls that we beat her and we beat her easily. we will go on to get the republican nomination and we will go on to easily beat
the hell they throw up there. iowa, we love you. we thank you. you're special. we will be back many, many times. in fact, i think i might come here and buy a farm. i love it. okay. thank you. thank you, everybody. thank you. >> for months they told us we had no chance. for months they told us because we offered too much optimism in the time of anger we had no chance. for months they told us because we don't have the right endorsements or the right political connections we had no chance. they told me that that we have no chance because my hair wasn't gray enough and my boots were too high. they told me i need to wait my turn. that i needed to wait in line. >> it is your turn! [ applause ] but tonight -- tonight, here in
state sent a very clear message. after seven years of barack obama, we are not waiting any longer to take our country back. [ cheers and applause ] when i am the nominee, we are going to unify this party, and we are going to unify the conservative movement. >> now to the democrats where the race is too close to call. hillary clinton who once had a commanding lead is essentially tied with bernie sanders. martin o'malley is dropping out. and i am excited about really getting into the debate with senator sanders about the best way forward to fight for us and america. i know that we may have differences of opinion about how
but i believe we have a very clear idea that the democratic party and this campaign stands for what is best in america. and we have to be united. [ cheers and applause ] when it is all said and done. we have to be united against a republican vision and candidates who would drive us apart and divide us. that is not who we are, my friends. i followed their campaign very closely. i understand what they're appealing to. and i intend to stand against it. i will not -- i will not let their divisiveness, their efforts to rip away the progress that we have made, be successful. because we can't afford that. so as i stand here tonight,
thank you, iowa. >> iowa, thank you! [ cheers and applause ] nine months ago, we came to this beautiful state. we had no political organization. we had no money. we had no name recognition. and we were taking on the most powerful political organization in the united states of america. [ cheers and applause ] tonight while the results are still not known, it looks like
we are thrilled to welcome back to the evening news a man who has covered every presidential election since 1968, our very own bob schieffer. bob, how does this one look to you? >> thank you, scott. i have to say, primary campaigns are like weddings. they bring out the best and worst in families. if this campaign were a wedding we would be halfway through the weird uncles long unfunny and embarrassing rehearsal dinner toast. the difference here is all of the participants in this campaign appear to be stone cold sober. and that may be the scariest part of all. people are madder than ever. the partisan divide is wider than ever.
reflecting the changes in our culture brought on by social media. nasty, illogical, ill tempered strong on attitude light on issues. too many times people have arrived at this wedding wit not just opinions, but their own set of facts. the campaign narrative has gone from in in a ane, to profane, more like a blog. you are a jerk, you are a bigger jerk. inspirational, not just yet. church. iowa tonight, as the candidates begin their long walk down the aisle of the caucuses and primaries, we'll finally start voters. scott, that's a good thing. >> you will be with us on the long walk to election day. bob, thank you. snow on the way tonight in caucuses. california got hammered by
and san diego an 8-foot-wide oak fell on a car and killed a woman. wind gusts reported as high as 115 miles an hour. to the nor, i-80. shut after a pileup of 29 vehicles. this system could dump a foot of snow on denver. in another major story tonight, the world health organization took the rare step today of declaring zika virus and its suspected link to severe birth defects an international public health emergency. the outbreak started in brazil and our dr. jon lapook is there tonight. jon. >> reporter: scott, i spent the day at the hospital in recite which has seen the most number of cases of microcephaly in brazil. the couple i spk to was anguished as they try to figure out what the condition means for their baby.
healthy baby, but her second child was born with microcephaly, a birth defect linked to the zika outbreak. babies with microcephaly had a delays. we never expected to have an infant like this, she said. but we will care for him the same way. to date parents came to the hospital in recite where doctors have seen 300 infants with microcephaly since september. before that this region only saw an average of nine cases a year. dr. angela rocha heads up the effort to understand and manage the crisis. in her four decades as a infectious disease expert she has never seen anything like it. this is different she said. it is a generation of babies with disability. which is a huge social, economic and public health problem. tell me what it is like to have
tell her that her baby has microcephaly? >> a situation with stress, panic, worry and insecurity she told me. that's because these parents and even health experts here are trying to figure out what services these infants will need. today the president of brazil gave public health officials the right to enter any home or business to eradicate mosquito breeding ground. scott, we'll be reporting. >> jon lapook in brazil. amtrak is trying to find out what hit a high speed acela train last night in philadelphia. whatever it was it gashed a window. the train was taken out of service. nobody was hurt. this is eerily similar though to last may when a commuter train was hit by something just before an amtrak regional train crashed in philadelphia. that crash killed eight and injured nearly 200. today federal investigators gave
here is kris van cleave. pictures from train 188 dash camera show the moment the speeding train left the tracks. engineer brandon bostian told investigators a minute before the accident he realized he was going ten miles too slow and began accelerating. next memory was feeling as the i was going too fast around a curve. the train's event recorder found that he applied full throttle a mile and a half from the curve. the train reached 106 mild an hour before bostian hit the brakes. he said i remember holding on to the controls tightly and feeling like, okay, well this is it. i'm going over. toxicology reports found no evidence of drugs or alcohol in bostian's blood and not using his cell phone at the time of the crash. lawyer tom kline represents several of hundreds injured. >> the train was being operated at 106 miles an hour. and there was a system that could have been in place and in fact was on place going the other way on the tracks. which could have prevented it.
active along amtrak's heavily used northeast corridor linking boston to washington, d.c. >> i will fry to put full power on the train. >> amtrak's chris jagodzinki showed us how pdc prevents a train from going too fast. what happened here. brakes. taking away all the power on the locomotive. now applying the brakes. >> regardless of what you do? >> i can't do anything. the computer has taken over. >> reporter: investigators foubd no issues with the train, tracks or sig nalds. scott, we still don't know definitively if and when an object may have struck the windshield and if that could have contributed to the crash. a lawyer for bostian decloond to comment. >> 106 miles an hour was double the speed limit on the curve. chris, thank you very much. one of the super bowl quarterbacks, address is a report that he used a banned substance. danger on the high seas. th living well your immune system works hard to keep you on top of your game. you can support it
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last month that linked him to human growth hormone, performance enhancing drug banned by the nfl. manning spoke with cbs analyst, bill cowher of "the nfl today." >> you vehemently denied allegations of hgh. i know the nfl is doing an ongoing investigation. have you talked to them. do you plan on fully cooperating with them? >> absolutely. as far as i know that is going to start after the season as far as my role. i welcome that investigation. i understand when an allegation is made that the nfl has no choice to investigate it. i get that. but i can tell you what they're going to find. a big fat, nothing. it's been completely fabricated suggested i did. junk. i've welcome that investigation. i welcome that investigation. i think that will start after the season. >> the quarterback on the other side, sunday, cam newton. describe his style?
oy he is fun to watch. >> last week his longest run was 14 yards. yours was 12. >> the difference it took him, you know, 1.2 second to make 14 yards. it took me 10 second to get 12. longer. 12? only got 12? >> you can see the interviews with peyton manning and panthers' cam newton this sunday on cbs during coverage of super bowl 50. the pregame begins at 2:00 eastern. there is an update on the e.coli outbreak traced to chipotle restaurants.
if you google most valuable scum companies, google's parent at the top of the list. after trading to day, alphabet was worth $571 billion. $33 billion more than apple. >> today chipotle restaurants got the all clear from the cdc. over the last few weeks, 60 people in 14 states got sick from e.coli bacteria linked to chipotle. the government says there hasn't been a new case in two months. this cargo ship loaded with wood, construction equipment and fuel started listing off france. rescuers couldn't reach it for five days because of the weather. today they towed her to safety. in a moment, the opening shots in the battle for the
the modern iowa caucuses date back to 1972. when democrat ed muskey of maine finished second to uncommitted. dean reynolds found a place where the start of the presidential race always ends in a go tow photo winners. photographs, chronicling iowa's caucuses from jimmy carter to ted cruz. there is john kerry on the floor. and the bench.
john mccain, back and front. two marco rubios, two joe bidens. 20 years apart. bushs, father, son, and son. the clintons then and now. >> the thing about iowa it can really make a candidate. it can bring somebody like jimmy carter to national prominence. or even obama when he was here. and with dean it worked the opposite. it sort of doomed his campaign. >> right. >> this is your picture? >> this is my picture. >> former des moines register photographer captured howard dean hitting the highest note at his lowest point. >> then we are going to washington, d.c. to take back the white house. yeah! today wells is the curator for the exhibit. >> we just started shooting. we knew this was different. something was happening. >> he didn't ask for a copy of the picture, did he? >> not that i know of. >> reporter: mike huckabee, visits the barber shop.
michele bachmann behold a sight of beef. >> what we were all wondering why she decided to visit the meat locker. there are protests. and arrests. and the flag is here in abundance. mitt romney the candidate always seemed freshly pressed. on caucus night four years ago so was the flag at his premature victory rally. christopher gannon spotted it. >> this gentleman came out. and, plugged in an iron. i'm think to myself what is going on here. a question you can ask about a lot of the amazing photos. one of the great thing as but the caucus is there will be many more to come. dean reynolds, cbs news, des moines. that's the overnight news for this tuesday. for some of you the news continues. for others, check back with us a little bit later for the morning news and "cbs this morning." from the broadcast center in new