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tv   WDBJ7 News  CBS  January 31, 2016 6:30pm-7:30pm EST

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as you said, a second virginia tech student, natalie keepers, has also been charged. police also said at a press conference today that the alleged killer, david eisenhauer, and lovell knew each other before her abduction. these new details are sending shockwaves through the blacksburg and virginia tech community. natalie keepers is a virginia tech student, from maryland. david eisenhauer, is also from maryland and also a virginia tech student. police charged keepers with getting rid of nicole lovell's body and helping eisenhauer after the fact. lt. mike albert, blacksburg police department "eisenhaur used this relationship to his advantage to abduct her and kill her." students here say a shock. rachel stottlemyer, "like you don't happening so close to home -- . " vt "you don't have to know them or anything like that just to feel for the family. your heart goes out to them. " keepers' arrest hits close to home for philip church. he lives in the lantern ridge area of blacksburg. the last place lovell was seen alive. philip church people's hearts you know
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blacksburg and especially here in lantern ridge." the investigation found its way here to a pond near the virginia-mayland college of veterenary medicine building on tech's campus. lt. mike albert, blacksburg police department " investigators continue to be very busy today with pursuing the approximately 300 leads generated over the past five days. " divers from the virginia state police search and recover team braved 39 degree water searching for evidence but wouldn't say what they were looking for. now, the search continues as the questions pile up. philip church "you know i think you just never get over something like this. " those divers i mentioned may be out again tomorrow to continue their search. keepers is in montgomery county jail without bond. eisenhauer is charged with first degree murder and abduction. if you have any information about eisenhaur, keepers or lovell, call police. christian heilman wdbj7.
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fifteen to twenty degrees above normal and we are still mild although the sun has set fifty nine degrees rain on gretna road opens also fifty nine degrees lynchburg and fifty seven and lewisburg fifty four degrees at about five to fifteen degrees warmer than where we are yesterday eleven degrees warmer roanoke and thirteen degrees warmer and lynchburg the comfortable conditions continue into the work week because nubia head of the week. temperatures tomorrow will stay in the low sixties and even famous frontal boundary is just beginning to develop investigating a deadly crash in pittsylvania county. it happened at 10-30 last night on route
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authorities say a car crossed the center line and ran off the left side of the road and overturned. the driver, cameron long died at the scene. he was wearing a seatbelt. officials say alcohol and speed were not a factor in the crash. police are still investigating. u-k based charity "ox-fam" says international donors failed to deliver the funds they promised to help with the ebola epidemic. that outbreak killed more than 11- thousand people, mostly in western africa. the group estimates nearly 2 billion dollars has not been delivered to the area. they say even the 4 billion that was delivered is hard to track because "scant information." communities around the world have been criticized for how the ebola crisis was handled. although the world health organization reported the outbreak was over earlier this month, at least one new case has been reported since. former salvadoran president francisco flores has died at the age of 56, according to government officials. flores served as
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his attorney says he was found unconscious at his home and taken to a san salvador hospital. at the time, flores was under house arrest battling corruption charges. in december a judge sent him to trial on a slue of charges including embezzlement and money laundering. flores had maintained his innocence. last year he admitted to receiving contributions from taiwan when he was a candidate and during his tenure said the money was used for social works. a day before the iowa caucus, bernie sanders' campaign has released its fundraising totals. his campaign says it raised more than $20-million dollars this month. earlier, campaign officials say it raised $33-million dollars over the last three months of 20-15. hillary clinton's campaign says it spent $37-million in the same time period. no word from clinton's campaign about its january fundraising. the democratic presidential candidates will make
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voters on wednesday. that's less than a week before votes are cast in that state's first-in-the- nation primary. cnn announced it will hold a prime-time town hall there wednesday night. hillary clinton, bernie sanders and martin o'malley will field questions from participants. the town hall happens just two days after the iowa caucuses. the latest polls show a tight race between clinton and sanders. as we just mentioned the iowa caucuses are just a day away, and presidential candidates are making a final push to get ahead. steve nannes reports. nat pop iowa offers only a small contingent of the delegates who will determine the presidential nominees, but a win would greatly increase momentum leading into the new hampshire primary. a recent poll by the des moines register and bloomberg shows the iowa choice for democratic nominee -- among likely caucusgoers--- is hillary clinton with 45 percent of the vote.. (hillary clinton / (d) presidential candidate) "we've run a terrific
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course it's close its competitive that's why i hope everyone who has decided to caucus for me will come out monday night." senator sanders not far behind with 42 percent of the vote. (sen. bernie sanders / (d) presidential candidate) "when we started this campaign here in iowa, we were 50 or 60 points behind secretary clinton. we have come a long, long wayso i think if the turnout is high, jake, i think we've got a real shot to win this." trump leading the polls as the iowa choice for republican nominee. surprisingly enough, he wasn't much of a target sunday. senators ted cruz and marco rubio were going after each other. (sen. ted cruz/ (r) presidential candidate) "when marco ran in florida he promised the men and women in florida he would lead the fight against amnesty. in texas i promised the men and women i would lead the fight against amnesty but when he and i went to washington he and i made very different decisions. a vote for marco is a vote for amnesty." the two clashed over immigration during thursday's debate.. and while speaking on the road with cnn's jake tapper, the argument still hasn't died down. (sen. marco rubio / (r) presidential candidate) "i've tried to fix a problem that's a very serious issue in
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and clearly we're not going to be able to do it comprehensively, and we're not going to be able to do it until we first enforce our immigration laws. but i don't support amnesty." i'm steve nannes reporting. deadlines to register to vote are quickly approaching ahead of primary races. virginia's deadline is february 8-th to vote on super tuesday which is march 1-st. eight states have deadlines this week for those who want to vote in presidential primaries. the u-s election assistance commission has links for each state's elections office and a link to register. a follow up tonight on a man who ran from state police during a traffic stop. andrew arnold turned himself in to police overnight. he crashed his car and ran from officers just after midnight saturday. arnold's charges include reckless driving and driving without a license. he also faces unrelated charges in west virginia. general motors wants to accelerate its plans to bring self-driving cars to the road. g-m is creating a team to focus on self-driving research starting on monday.
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already has advanced technology on the road, including the super cruise feature that lets you take your hands off the wheel. this new department will be led by one of g-m's presidents. it's goal will be to make g-m the leader in self-driving car technology. . you're watching your hometown news leader, wdbj7. coming up, how teams are preparing the 6-11 for a spring full of events. and, what you may not have known about the bus display at the virginia museum of transportation. and a college in one hometown hosts an event to raise cancer
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we'll take you there. i don't want to live with the uncertainties of hep c.orld seek treatment. i am reatoday there's harvoni.voary treatment for the most common typeonic hepatitis c.roven to cure up to 99% of patients had no prior treatment. one and only cure that's, once a day for 12 weeks.n patients...ed with just 8 weeks of harvoni.arvoni, there's no interferonere are no complex regimens. yctor if you have other liver or kidney problems,other medical conditions,out all the medicines including herbal supplements.odarone with harvoni may causes slowing of your heart rate.effects of harvoni may include tiredness,he and weakness. i am ready to put hep c behind me.eady to be cured.you ready?ur hep c specialistarvoni is right for you. spring, but first the team that takes care of her has some work to do! the 611 will leave the virginia museum of transportation soon. exactly when we don't yet know. but the vintage engine will go to a norfolk southern facility at shaffer's crossing to have the front truck wheels replaced. scott lindsay is the steam engine expert
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restoration last year. scott lindsay/steam engine expert: the wheels that are being replaced date back to norfolk and western operation in the '50s. so i believe they were dated 1957, so they ran the end of steam, and all of the ns steam program in the 80s and 90s, and got us through the 2015 season. so they've done their job, and it's time to make them an exhibit. after the wheels are replaced, the 611 will return to the north carolina transportation museum for the annual inspection required by the federal railroad administration. the queen of steam will get an extensive check-up including boiler tests, but lindsay says she'll be ready for the spring exurcions. tickets for the 2016 excursions go on sale in february. speaking of the virginia museum of transportation, it offers much more than just trains! there's cars, planes and even a special bus display. museum volunteer, harry messimer, drove for greyhound for 31 years, so he's the man to talk to about all things busses!
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of transportation: "almost everything in this room is my collection." messimer: "i had just got out of the korean war, during that time, and i came there in 1956 and these are my two buses." messimer: "like i say, almost everything in here is my collection. the toy buses, the pictures are individual pictures i put into collages. i have some of the old bus station postcards. they used to put them out in different cities. "i did a lot of the hauling of the protesters to washington, dc, during the 1960s. the freedom riders is what they were. and i'd have to stay with them and bring them back to here, and then another driver would take them back south, when they go. those were rough days for me. scary days, really, for the freedom riders and all. i never had any trouble with any of them. i treated them real nice, and talked
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say, stayed with them in washington, dc, three or four days at a time. "this is my favorite spot here, the better buses. there's the old silver-side bus, and the old double- decker bus, and the others that were made. these were my best ones. i got some of them at yard sales,and some of them we -- we had in chicago, and washington, dc, and new york city, they had the gift shop that sold toy buses. "i bought this school bus in salem, virginia. it was on eighth street, underneath a canopy. and it had been kind of beat up and banged up a little bit, but we got it fixed and we got it running. the most important thing about this bus is the seats inside of it." (nat: snap as chain cut away - "ah, yes.") messimer: "it's a 1934 dodge brothers school bus. as old as i am, i
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with seats like the inside of this bus. and i'm real proud of it now, because a lot of people love it, we get a lot of compliments on it. "this was my cap here, my driver's cap. i was a driver instructor at one time here, for the last seven years that i worked with greyhound. and i trained the first driver -- girl driver -- that drove in this area for greyhound at one time. 1976 and '77. "a lot of the drivers said, 'why don't you sell this stuff and get you some money?' i said: why do you think i saved it for? for myself and the public, to show the public someday. "oh, yeah. there will always be a bus." averett university's men's basketball game featured a special event to raise cancer awareness. it's all part of the 2- nd annual "caring for carrie" event to raise money for the v foundation for
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carrie hendrick, averett's current director of athletic training education. she's been battling ovarian cancer since 20-13. jamie valvano, daughter of late n-c state coach "jimmie v" was there to show support. she says all it takes is one person to make a difference. jamie valvano/breast cancer survivor: "my dad foundation when he was diagnosed with it was just one man find a cure for voice to share that with others and he started the v foundation." averett raised just over $800 at the annual event last year. community members and local college students at washington and lee are working together to fight childhood hunger. the 4-th annual souper bowl kicked off today. restaurants, caterers and bakeries served soup to students, kids, and adults for 10 to 15- dollars. the money raised goes to washington and lee's campus kitchen's backpack program. jenny davidson/ co-curricular service coordinator:"studen ts who are able to access the free and reduced school lunch program, but but over the weekends
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sort of food support and so the idea is that on friday we can send over a bag of non-perishable food items to help decrease the food needs over the weekend." the program has provided nearly 7- hundred bags of non-perishable food items to students at elementary schools in the rockbridge area. this year's goal was to raise 8-thousand- dollars to fund three months of the program. february begins warm and rainy in the first alert forecast. meteorologist lindsey anderson has more on the timing of tomorrow's showers. here is a look at the highs, lows and precipitation at the regional airports. we are back with the complete first alert forecast after this
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song: "that's life" song: "that's life song: "that's life song: "that's life that's lifet. you exercise. you still need helpring your blood sugar...s is jardiance.g with diet and exercise,nce works around the clocker blood sugar in adultsype 2 diabetes.orks by helping your bodyf some of the sugar it doesn't needh urination.p you lower blood sugar and a1c.gh it's not for weight lossg systolic blood pressure,nce could help with both.n cause serious side effects including dehydration. this may to feel dizzy,or lightheaded,k upon standing.side effects arel yeast infections,y tract infections,s in urination, ey problems,creased bad cholesterol.jardiance if you are on dialysise severe kidney problems.jardiance and call your doctor right awaysymptoms of an allergic reaction.ay include rash, swelling,iculty breathing or swallowing.ance with a sulfonylurea or insulinuse low blood sugar.ctor about all the medicines you takeave any medical conditions.k to your doctor,for details,jardiance.com. upthe sunshine and extremely warm temperatures helped to know the snow on the ground with your time lapse video and snellville ending the day with the last snow in that field will more cloud cover continues to move in this evening charlie moore observed high for today and roanoke we talked out sixty two reasons we rose to sixty eight in danville and fifty nine degrees in blacksburg a beautiful afternoon i hope you enjoyed it temperatures are still mild right now heading out for a late dinner fifty six degrees in roanoke you're deeply in56 in roanoke you're
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breeze and will continue to see a southerly wind influence or whether fort morrow that means another one days ahead. temperatures right now in the low 50s from blacksburg to galax were 49 in wytheville 52 with the fountain lake chaco danville still in the 60s at this hour 63 there over the next 12 hours temperatures slowly dropped we really don't get all that cold lower middle 40s expected overnight with work cloud cover dropping forty degrees and blacksburg forty four in martinsville three ninety covington and three eight in lexington obsolete on my starts were monday and i will help with the warm-up tomorrow afternoon clouds continue to filter rain this evening and night never next frontal system very complicated system going on out last to go through this frontal boundary tomorrow and in this storm system that impact in places like arizona and southern california will strengthen moved to the east impacting us in the middle of weeks let's hang out tomorrow's rain and motorcycle ride to his amount communities around eight a.m. and continues to move to the east haven't done so the line of showers falls apart so just if you think showers from time to time expected in the afternoon and early evening before clouds linger monday night into early tuesday and into the night and wednesday another frontal system comes for all have the time on that coming up in just a bit let's
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middle fifties for blacksburg afternoon in charlottesville. the 18th-ranked cavaliers host the
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more from the commonwealth clash coming-up
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loftus with your look at sports. we'll get things rolling tonight on the mats, and the commonwealth clash between virginia tech and the university of virginia. both teams ranked in the top 25-- the hokies sitting at number 10. the cavaliers 18th in the nation. starting at 133, uva's 6th-ranked george dicamillo gets the reversal to pick-up 2 points, he gets the 14-4 major decision over dennis gustafson and virginia goes-up 4 to 3, but there was still a lot of wrestling to be done. in 149, sal mastriani has tj miller in trouble and works his way to a pin. a big 6-point pick-up for the hokies, who lead it 13 to 4. onto the
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this one all wrapped-up for the hokies, but third- ranked and undefeated ty walz picks-up the 8-6 decision over patrick gillen just for good measure. virginia tech beats virginia 31 to 7, winning 8 of the 10 weight classes. virginia tech's women's basketball team on the road this afternoon, where they fall to 11th- ranked florida state 68 to 50. chanette hicks was all over the court for the hokies with a team- high 11 points, 6 assists and 5 steals. florida state's shakayla thomas led all scorers with 22 points. virginia tech's men's basketball team just tipped-off against pittsburgh at 6:30-- also on the road. we'll have highlights of that at 11. the men's final of the australian open early this morning, where novak djokovic makes quick work of andy murray, in a rematch of last year's final. djokovic wins the first set 6-1 in just 30 minutes, then takes the next two 7-5 and 7-6. the top-seeded
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won all 6 of his aussie open finals matches, and has won it 5 of the last 6 years. this victory marks his 11th grand slam title. and as for his series against murray, djokovic has won 11 of the last 12 matches against him. the super bowl is exactly a week away now, and as we countdown to the big game, we're getting some of our high school football stars in the area to help us in the effort. tonight it's salem junior fullback and linebacker, riley fox, as we are now just 7 days away from the superbowl. fox helped lead the spartans to an undefeated 15 and oh record, capped-off by a 3-point double- overtime win over lake taylore in the 4a state championship game. cbs has the big game this year, which means you can catch super bowl 50 right here on wdbj7 at 6:30 next sunday, as the
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broncos. janeiro today to participate in the annual pet parade in copacabana. there were super heroes, queens and princesses! the parade has been taking place next to copacabana beach for 14 years. today's parade is part of the city's annual carnival celebrations which officially begin friday. for the latest weather anytime, turn to our webpage at wdbj7.com and be sure to follow us on facebook and twitter for weather headlines and more
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thanks for watching your hometown captioning funded by cbs and ford. we go further, so you can. >> kroft: the man in the gray coat with the german accent is an undercover investigator posing as the representative of a fictitious african minister who wants to bring millions in questionable funds into the u.s. >> if it's not in his name... >> yes. >> then he needs what is known as a straw man. >> kroft: it's part of a hidden camera sting operation to see how willing american lawyers might be to offer advice. >> so we have to scrub it at the beginning, if we can, or scrub it at the intermediary location that i mentioned. >> there is a clear pitch consistently presented in every one of these tapes of what amounts to an incredible number of red flags that scream corruption.
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>> dirty money. >> alfonsi: petermann glacier in greenland is one of the largest glaciers in the arctic circle and one that's experienced dramatic melting. although it is a harsh and dangerous environment, it has drawn some of the world's leading climate scientists to study its it's sheath and look at its effects on the ocean. we watched as they attempted a first-ever look at what's happening 300 feet below the ice. >> i'm steve kroft. >> i'm lesley stahl. >> i'm bill whitaker. >> i'm sharyn alfonsi. >> i'm scott pelley.
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>> kroft: if you like crime dramas and movies with international intrigue, then you probably have a basic understanding of money laundering. it's how dictators, drug dealers, corrupt politicians, and other crooks avoid getting caught by transforming their ill-gotten gains into assets that appear to be legitimate. they do it by moving the dirty money through a maze of dummy corporations and offshore bank accounts that conceal their identity and the source of the funds. and most of it would never happen without the help-- witting or unwitting-- of lawyers, accountants and incorporators, the people who actually create these anonymous shell companies and help move the money. in fact, the u.s. has become one
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the world to do it. tonight, with the help of hidden camera footage, we're going to show you how easy it seems to have become to conceal questionable funds from law enforcement and the public. you need look no further for evidence than the changing skyline of new york city, where much of the priciest residential real estate is being snapped up not by individuals but by anonymous shell companies with secret owners. there's nothing illegal about it as long as the money's legitimate, but there's no way to tell if you don't know who the real buyers are. it is one of the reasons global witness, a london-based non- profit organization that exposes international corruption, came to new york city 19 months ago. it wanted to see how helpful u.s. lawyers would be in concealing questionable funds. this hidden camera footage was shot in law firms across manhattan without the lawyers' knowledge by the man in the gray
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>> lawrence gabe: so it's ralph? >> ralph kayser: ralph kayser. >> kroft: "ralph kayser" is not his real name. he's an investigator for global witness posing here as the representative of a government official from a poor west african country who wants to move millions of dollars in suspicious funds into the united states, and he needs the lawyers' help. >> ross: are you gonna tell me what country and what minister this is? >> kayser: i can't tell you. it's one of those mineral rich countries in west africa. there are not so many. >> kroft: attorney gerald ross and the other lawyers were told secrecy was essential, because the african minister had amassed his fortune collecting special payments from foreign companies that he'd helped obtain valuable mineral rights. >> kayser: so companies are eager to get hold of rare earth or other minerals. and so they pay some special money for it. i wouldn't name it bribe. i would say "facilitation money." >> kroft: kayser said it was all legal.
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and the other lawyers that the minister was shopping for a townhouse, a jet and a yacht, but his name must not be connected to the purchases. >> kayser: if his name now would appear in connection with buying some real estate here and other items, it would look, at least, very, very embarrassing. >> james silkenat: right. because his... presumably his salary in, wherever it is, would not cover the kinds of acquisitions we're talking about. >> kayser: oh, for sure. it's the salary of a teacher here. and so how can we make sure that he is being able to-to buy property here and to live a nice life, but his name being out? >> silkenat: right. any guesses as to how much money we're talking about for the brownstone and the other items? >> kayser: i mean, the brownstone, talk about $10 million. for second-hand gulfstream, i could imagine $10, $20 million.
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$300 million. >> kroft: the fictitious story of the african minister was cooked up in global witness' london office, based on an actual money laundering case. the investigator phoned 50 new york law firms with experience in private asset protection and managed to get face-to-face meetings with 16 different lawyers in 13 firms. >> kayser: i'm very frank. it's, i would say, "gray money." i think somebody told me you name it "black money." >> kroft: global witness says the pitch was intentionally designed to raise red flags and to give the lawyers good reason to suspect that the minister's millions came from official corruption, and they all did. >> kayser: it's only that the money is a bit, let's say... >> gabe: tainted. >> kayser: tainted, thank you very much. >> gabe: okay, that's a nice word. okay. >> kayser: or, you gave another expression? koplik: honest graft. kayser: honest graft! okay, fine. so i have to be frank. it's honest graft. how would you name it? >> ross: some people call it bribes. >> kayser: nah, i wouldn't name it bribe... >> ross: never.
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business deal. so, okay, bribe... is actually bribe. >> charmian gooch: you know, the story of the fictitious african minister would probably have raised eyebrows for the average person on the street. >> kroft: charmian gooch is the co-founder of global witness, a public advocacy group that exposes corruption in the developing world. previous undercover investigations exposed the global trade in african blood diamonds. this investigation, gooch says, exposes serious flaws in the u.s. legal system that have made it a hub for international money laundering. >> gooch: what the lawyers laid out for us in some detail was all the different possibilities and ways in which it could be done. >> kroft: what you're saying is if you want to get dirty money into the united states, it's not that hard to do. >> gooch: what i'm saying is there is an open door and it's pretty shocking and pretty concerning, because that money could be coming from anywhere. >> kroft: of the 16 lawyers that global witness recorded in these preliminary meetings, only attorney jeffrey herrmann flatly
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showed ralph kayser the door. >> herrmann: i have some real questions about that. >> kayser: yes? >> herrmann: under the foreign corrupt practices act. >> kayser: right. >> herrmann: and under the foreign corrupt practices act, bribing foreign officials is illegal. >> kayser: by americans. >> herrmann: by americans. >> kayser: but americans are not involved. so it's money from other nation- - nationals, not american entities, not american nationals... >> herrmann: it's not for me. >> kayser: pardon me? >> herrmann: it's not for me. >> kroft: aside from that one exception, 12 out of the 13 law firms, including 15 out of the 16 lawyers, not only heard ralph kayser out, they suggested ways that the suspicious funds could be moved into the u.s. without compromising the minister's identity. attorney james silkenat was selected by global witness because at the time, he was
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association. yet he and his colleague, hugh finnegan, provided what former prosecutors told us was a roadmap of how to conceal the source of the funds using layers of anonymous, interconnected shell companies in multiple jurisdictions. >> finnegan: presumably, we would set up a little bit of a again, protect privacy as much as anything else. >> kayser: yeah. >> silkenat: so company a is owned by company b, which is owned jointly by company c and d, and your party owns all of or the majority of the shares of c and d. >> kayser: so we, we create several companies? >> finnegan: yes. >> kayser: all in new york or different states? >> finnegan: well, like i said, at some point, probably pretty quickly, you'd go offshore. >> kroft: attorney john jankoff and his partner, lawrence gabe, recommended variations of the same strategy. >> jankoff: a lot of people in africa use the isle of man. some of them use liechtenstein... >> gabe: so he would just take
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in isle of man... >> jankoff: he can put it into a swiss bank account. the swiss will have it. and... and then... >> gabe: and then he comes to us. us and says, "i want to buy a townhouse." >> kroft: attorney marc koplik also suggested that the minister could move his money out of west africa to europe, where it could be "scrubbed" in an anonymous corporate entity that his firm would be happy to set up. >> koplik: the money as it sits now, is it in his name? >> kayser: it's in different names. >> koplik: okay. so it will come as those different names? >> kayser: including his name, yes? >> koplik: so we have to scrub it at the beginning, if we can, or scrub it at the intermediary location that i mentioned. >> kayser: so how to do this, intermediary? that means a bank in? >> koplik: we'll say luxembourg. >> kayser: luxembourg. >> koplik: we will set up an appropriate entity call it clientoverseas.com or whatever,
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into the united states. >> kroft: 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 lawyers are under no such legal obligation. >> gooch: banks in america are required to know their customer or required to be very cognizant of risk and to report on it if there... if there is an issue there around money laundering. and yet, absolutely bizarrely, american lawyers aren't. this is clearly an issue. and i think our investigation has shown the potential for what could happen because of that lack of regulation. >> kroft: global witness says that anomaly is just one of the flaws in the u.s. legal system that helps facilitate money laundering. >> and we're going to call it here, "anonymous, inc." >> kroft: another is the ease in which anonymous shell companies can be set up here to conceal ownership of money and assets. last year two million new corporations were set up in the
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offices, products or employees... just an address and perhaps a bank account. >> gooch: in many states across america, you need less identification to set up and open up an anonymous company than you do to get a library card. >> kroft: gooch says anonymous shell companies are like getaway cars for crooks, designed to put them as far way as possible from the scene of their crime. according to a world bank study, the u.s. was the favorite place for corrupt officials to set up anonymous shell companies. >> gooch: there was a very good academic study and america came up as the easiest place to set up an anonymous company, after kenya, out of 180 countries. >> kroft: after kenya? >> gooch: after kenya. >> kroft: so did that study have anything to do with your decision to go ahead and do these undercover investigations? >> gooch: it inspired us. i mean, we almost thought, "it can't be this bad, can it?" and, unfortunately, what we found is it is. >> kroft: all of the attorneys expressed some concerns, like this one from gerald ross. >> ross: i've got to be very careful myself.
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money. and that would cost me my license and-and i... just don't do that. >> kroft: but later, he suggested that the questionable money could be wired directly into his client escrow account, bypassing scrutiny from the banks. >> ross: when i get money from my other clients, it always comes here with some strange name on it. i don't even ask. >> kayser: and nobody ask? >> ross: it doesn't come from minister joe jones. it comes from the xyz account. >> kroft: john jankoff said they would need to get a legal opinion that the money was clean, then suggested that the minister use front men to open up overseas bank accounts. >> jankoff: if it's not in his name, then he needs what is known as a "straw man." practically speaking if the money leaves the country his name should not be attached to the wire. it should be other people's names. >> poncy: and we know this happens. we know this happens.
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occurs all over the world. but that does not mitigate the power of seeing it up close. >> kroft: we showed the tapes to chip poncy, a former top official at the treasury department whose job was to stop financial crime, terrorist financing and money laundering. he says there's nothing wrong with lawyers setting up anonymous shell companies to protect a client's privacy, but if it's done to conceal criminal activity, that's when it becomes a problem. >> poncy: there's a clear pitch consistently presented in every one of these tapes of what amounts to an incredible number of red flags that scream corruption. >> kroft: dirty money? >> poncy: dirty money. >> kroft: bad actors? >> poncy: bad actors. they don't want to be found and they have a need. they've got to move their money from a point where they've received corrupt proceeds in this case to a point where they can enjoy those proceeds. and to get 'em from... to get this money from point a to point b, they need help in laundering it, effectively. >> kroft: poncy says he was
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comfort with which attorneys seemed to be willing to turn a blind eye and discuss a matter that was likely to be illegal. >> poncy: what's essential to recognize is that this is after it's been revealed that the potential client is representing an african minister with hundreds of millions of dollars of funds received through, effectively, bribes. >> kroft: this is more than legal advice? >> poncy: this is legal advice on how to evade controls, or at a minimum, very clear global standards on financial transparency to allow our countries to go after proceeds of crime. >> kroft: attorney marc koplik told the global witness investigator that he preferred using money managers and investment firms to move funds. he thought it was less risky than using banks. >> koplik: and i would suggest three or four to you. some are bigger. some are smaller. the smaller ones are often more flexible and understanding and
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reputation. because they fly, to a greater extent, below the radar screen. >> kroft: sometimes the advice took the form of suggesting banks and countries that might be less vigilant about money laundering. >> silkenat: we would have to look into how far specific banks looked into, you know, the, you know, the know your customer laws and how far they would dig. >> finnegan: in many ways, you'd probably be better off with a smaller bank because... >> kayser: that would be a possibility. >> finnegan: because the bigger banks are much more serious about looking into that stuff. >> kayser: their reputation. >> finnegan: right. yes. >> silkenat: and there may be other banking systems that are less rigorous on this than the u.s. would be. >> kayser: what would it be? >> silkenat: the usual banking havens, i think, would be ones you would want to consider.
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of countries where the banking systems require less detail on ownership or source of funds. >> kroft: while james silkenat, the former president of the american bar association, and his partner, hugh finnegan, listened to the pitch and suggested ways in which they might be able to help, they were also the most suspicious of ralph kayser and his african minister, beginning just five minutes into the meeting. >> silkenat: we need to talk about the risks or just concerns about where he got the money and how to explain that. >> kayser: that's it. >> silkenat: there is... there are issues there. the transactions is which he would be involved here wouldn't be part of facilitating payments, but if that's really where the money came from and if there were, you know, "crimes"
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that starts to be an issue. >> kroft: they were also the most cautious about moving forward. towards the end of the meeting, hugh finnegan, who is off camera here, said the firm would feel obligated to report anything it believed to be illegal. >> finnegan: bearing in mind of what you said, no american law was violated, no local law was violated, but, you know, if we're aware that a crime is being committed, we have an obligation to report that. >> kroft: mr. silkenat says, "we need to talk about the risks or just concerns about where he got the money and how to explain that." >> poncy: that, that, and that's, that's a welcome... >> kroft: he's already been told how, where the money came from and how he got the money. >> poncy: correct. so it-it's a healthy recognition that there's an issue here. >> kroft: if you could ask him anything about this meeting, what would it be? >> poncy: what's going through your head? why are you continuing this conversation? why not just say no? is the business that important? >> kroft: neither silkenat nor finnegan would agree to an on- camera interview.
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saying they only discussed generic information that could be found on the internet and that their conduct was "entirely appropriate." "had the camera followed us after the meeting," they wrote, "it would have shown us agreeing that kayser was disreputable and that we would not deal with him again." none of the other lawyers agreed to give us an on camera interview either. when we come back, we'll take a look at the legal and ethical implications of what you've just seen. >> cbs money watch update brought to you by one of the world's leading pharmaceutical companies. >> glor: good evening. the united nations wants $860 million for iraq's humanitarian crisis. on tuesday b.p. is expected to announce a 70% drop in profits. and former drug company c.e.o. martin shkreli could face contempt charges if he's a no-show at thursday's congressional hearing on
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i'm jeff glor, cbs news. every day you read headlines about businesses being hacked and intellectual property being stolen. that is cyber-crime and it affects each and every one of us. microsoft created the digital crimes unit to fight cyber-crime. we use the microsoft cloud to visualize information so we can track down the criminals. when it comes to the cloud, trust and security are paramount. we're building what we learn back into the cloud
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james drove his rav4 hybrid into the frozen wilderness. the scent of his jerky attracted a hungry wolfpack behind him. to survive, he had to remain fearless. he would hunt with them. and expand their territory. he'd form a bond with a wolf named accalia... ...become den mother and nurse their young. james left in search of his next adventure. how far will you take the all-new rav4 hybrid?
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>> kroft: when a non-profit organization called global witness came to new york 19 months ago, it secretly recorded hidden camera interviews with 16 manhattan lawyers. its investigator was posing as the representative of an african official trying to move millions of dollars of suspicious funds. global witness, which specializes in exposing international corruption, wanted to see how much help the lawyers would provide in setting up anonymous shell companies and offshore bank accounts to move the suspicious funds into the u.s., and at the same time, protect the identity of the fictitious african official. >> silkenat: good to see you. >> kayser: good to see you.
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investigator, who called himself ralph kayser, told the lawyers that the minister had used his official position to collect tens of millions of dollars in special payments from foreign companies to help them obtain valuable mineral rights. he wanted to move the money to the united states to buy a house, a jet, and a yacht. >> kayser: so therefore, he wants to bring in the money into the u.s. so, starting with the brownstone and then, probably, buying a gulfstream jet... he wants to commission the building of a yacht, and buy, probably, more property. >> kroft: the story was intentionally devised to raise red flags and lead the lawyers to believe that the minister's money was dirty. during the meetings, only one of the 16 lawyers, jeffrey herrmann, told him no. >> herrmann: this ain't for me. my standards are higher. >> kroft: the rest expressed varying degrees of interest, with most of them offering advice on how it could be done. >> koplik: we do everything,
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so, there's no limitation. we don't say, "oh, we don't do windows, or we don't deal with the financial money managers," or whatever. no. we orchestrate and organize the entire thing. we're happy to take that responsibility. >> kroft: what's important to point out-- and it cannot be overstated-- is that none of the lawyers we've shown you broke any laws, in part because the african minister didn't really exist. there were no hundreds of millions of dollars, and global witness' charmian gooch said no money ever changed hands. so this is sort of a morality test? >> gooch: it wasn't. it was a... it was a test on the system. >> kroft: you know, people could make the argument, "look, all these guys did, really, was just listen to this person that came into their office. they didn't make a deal, they didn't sign up. they said, 'we need to do some more research.'" >> gooch: and you know what? they'd be absolutely right to say that, but they'd need to say something else, too, which is that those lawyers laid out, in often considerable detail, a
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bring money into america. >> kroft: none of the lawyers agreed to take on the african minister as a client, nor were they asked to. it was a preliminary meeting that ended with most of the attorneys expressing interest in continuing the dialogue, and some enthusiastic about landing the business. >> silkenat: i'm happy to chat whenever it's possible to move the ball forward on this. >> kayser: fantastic, great. >> silkenat: good. >> kayser: thank you so much. >> silkenat: thanks for coming in. >> kroft: marc koplik and albert grant foresaw no problem as long as the money was clean, and gave no indication that they planned to do any checking themselves. they went so far as to discuss legal fees. >> koplik: legal fees will be substantial, albert. correct me i'm wrong-- $50,000 to $100,000. >> kroft: koplik also suggested conducting a test in which a portion of the suspicious funds would be sent into the united states. >> koplik: a million dollars. >> kayser: a million dollars, so, as a test? >> albert grant: yeah. >> kayser: because i said, probably you would start with around, $50 million, probably, i could imagine? >> koplik: i would say a million dollars. >> kayser: a million dollars.
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wrong, it'll be painful, but it won't be life threatening. >> kayser: right. exactly. >> kroft: john jankoff and his partner, lawrence gabe, who is off camera here, also seemed willing to go forward. >> jankoff: we would orchestrate it. one legal fee to cover everything. >> kroft: however, gabe did express some concerns about the transactions. >> kayser: who can set up this structure? could you do it? >> jankoff: yeah, your brother- in-law does it all the time. >> gabe: well, okay. but i-i-i don't think he does it with money that may be questionable. and that we have to find out about. >> kroft: at the end of that meeting, they looked forward to the next conversation on the telephone, not on email. >> gabe: okay, give me a phone number where we can reach you? >> kayser: ah... >> gabe: i'm certainly not putting this in emails. >> kayser: sending an email with just an outline would be fine, as well, so it's... >> jankoff: i don't like emails. >> kayser: you don't like emails? >> gabe: that's how you catch people. >> kroft: the hidden camera tapes raise all sorts of ethical questions not just about the behavior of the lawyers, but about the methods used by global witness in making them.
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simon, a law professor at columbia university, who is one
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