flying a combined 57 million miles. mr. rothstein and mr. vroom i salute you tonight. i raise my tray table in your honor. that's all for us tonight. ac 360 starts now. we begin with breaking news. u.s. officials say they have foiled a terrorist plot to blow up an airliner. they have not say where or when it happened. here is what we do know. according to the fbi, an improvised explosive device was seized. officials say the device was meant for use by a suicide bomber. they say it's a nonmetallic explosive similar to the one the underwear bomber used in his failed attempt to blow up a destroyed bound airliner in 2009. similar but not the same. officials also say the blot has the looks of al qaeda in the arabian peninsula.

congressman peter king in new york is chairman of the homeland security committee. he's been briefed on the plot and joins us on the phone. what are the latest you can tell us? >> i got briefed by secretary napolitano and john brennan. basically it's a nonmetallic deaf vits, intended to be put on an american-bound airline. it never made to it the airline. it's right now as you said being tested and analyzed by the fbi. obviously a concern would be that being unmetallic as to whether or not this could evade security in our airport. that's a real concern. also, this is an ongoing operation. this particular part of it occurred sometime last month, sometimes in april. but it's not over as far as the operation itself which is why you're seeing very few details being given out. >> obviously and the questions,

use your judgment as to what you can say or whether say, is it known who made this bomb? bomb makers tend to have a certain signature. there are certain bomb makers particularly in yemen who are well known. is it known who made this? >> there's two things i can say. one is that the person who had the bomb, the exact language i was told, that we no longer has to be concerned about him, number one. number two, you saw there was an attack on an aqa leader in yemen over the weekend. that is related to this whole operation. but other than that i can't go. there's a type of explosive device, petn which was used in the attempted underwear bombing of that plane in detroit. is it similar to petn? >> all i can say is it's nonmetallic and the fbi bomb experts are analyzing it right now.

again, this was something very much cause for concern. it's probably one of the most tightly-held operations i've seen. i can tell you myself and no other member of congress know anything about this, including me, until this afternoon. that's unusual. it almost appears as if somehow this was leaked because, i don't know what your sources are telling you. if you go around this afternoon, very few people know anything about it even those in prominent positions, people in the intelligence community. it seems as if the administration was playing catchup this afternoon as far as getting everything out. i can tell you i've spoken to other congressional leaders and people in positions who almost always are briefed. they knew nothing ability it until this afternoon either. it's something with the timing here raising questions. >> what do you mean? what questions? >> as to why it came out this afternoon. such a tightly held operation, if it was leaked, how was it leaked and why was it leaked i've been involved in a number

of these, i've seen and observed ooh number of these tightly held operations. i haven't seen one so closely held and seem to come out all at once and the administration this afternoon and top people in the various intelligence agencies were not in any kind of position to talk about it. they seem taken somewhat by surprise and also from talking to other key democrats and republicans in congress, they felt they were caught totally off guard today. and that's unusual. even with the bin laden killing, there were members of congress briefed before it happened. >> do you think there's some political reason if it was leaked out, if it was leaked by the administration, there's some political reason for that? >> anderson, i don't want to get into who did it or whatever. it could be somebody who had knowledge of what could happen. i'm not trying to bring politics into this at all. i'm saying whether it's something in the intelligence community or whatever. it's important, if it was a leak, we find out who did it.

there's such sensitive information here and such sensitive sources to get it from, it's risky if something like that is leaked out in an unplanned way. that seems to be what happened here. it could be wrong. from key people i've spoken to this afternoon, they seem to have that impression, too. >> are you pleased with the intelligence so far in terms of how this person, how this device was apparently apprehended? does it tell you that things are -- there's a good safety net out there. >> there's two things. one thing is out stand work. our intelligence agencies and the layers of defense we set up after 9/11, from what i've seen, this operated at 1,000%. it also reminds us, though, that this war is not going to end in afghanistan. al qaeda are constantly trying to find new ways to get at it

and they have very skilled scientists and other people with advanced degrees who are working on a regular basis to try to get ahead of us. every time we think we have them, they come up with something new and they don't stop. if this had been the success -- i tell you this. i was talking to someone today very much involved in it saying if this had happened prior to 9/11, there's no doubt at all this would have been a success, we would have gotten hundreds of americans killed. >> i don't want to say anything appropriate. if this is -- this is noon metallic device, as you've said, metal detectors at airports, from my understanding, cannot detect this? >> i don't want to get into that other than to say tsa would be putting in various components to try to stop it. that's what the bomb experts are looking at right now. >> congressman peter king, thank you for joining us. joining us is cnn nic robertson and fran townsend, tom if wen

tess joins us as well and bomb bear from time.com and former cia officer. fran, what is the latest you're hearing from your sources? >> you were asking about the bomb maker. what was said to me by someone with first-hand only in, this had marked similarities to the underwear bomb, the cart raj bomb. these bomb makers have a signatu signature. it shows their ability to adapt. >> they're a learning entity? >> that's right. even though they haven't successfully pulled one off, they're clearly determined and clearly adaptive. >> when you hear congressman king say he was told that the person who was going to deliver this device is no longer a threat. to me that says they're either dead or captured. >> correct. the same thing was said to me.

there's only two possibilities. >> you say this is about as high tech as would-be terrorists get. does their sophistication on this worry you? >> a lot. what they're using normally is chemical initiators, you take a syringe and injected one chemical into another and it builds. what you're doing is by passing any sort of metal. it can be done in a plastic container or glass container and it will go to a high explosive which can cut a hole in the skin of an airplane. anderson, as you said, sometimes it's petn. there are other explosives. when there is no metal in it, it makes it very difficult for tsa to catch one of these things because they have to run them through a chemical analysis like a neutron detector. this is why threes been such a tight hold. people don't want to talk about the technology and the fact that they're improving their technology. i think these guys are very, very good.

i've seen these airplane bombs back in the '80s. they bypassed airport security then. if they continue to adapt, we should consider this a very real threat to our aviation. >> nic robertson looked into petn, the name being used in this, even though it may be different, it is nonmetallic. petn was the explosive used by the so-called underwear bomber. i want to show you what nic discovered about what it's capable of. take a look at this clip. >> reporter: explosive expert sydney olford showed me the power of a tiny amount of petn. >> this really is a messy powder. >> reporter: then he agreed to replicate a series of printer bombs revealing how they evaded detection. >> that's petn. if it went off now i would be instantly killed. bits of me would go around the room.

>> reporter: out in a field, olford places the bomb on an aluminum sheet simulating the skin of an aircraft. >> three, two, one. that is where the table was standing and you can see the blast effect. if that had been part of an airplane's fuselage, heaven help the airplane. it would have been a terminal event, i'm afraid. >> nic, how does somebody -- i mean -- i don't want to say anything appropriate, but is it easy for people to get petn or make petn? >> one of the things al qaeda in yemen has been boasting about in the "inspire" mag scenes, the how to do you magazines, how to make your bomb magazines, if you will. they printed a couple of those inspire magazines last week.

they were boasting there about the fact they've taken control of territory inside yemen and taking control of laboratories there they've upgraded which has given them access to the chemicals and the space. because they've taken territory there. so they have the laboratories and the space and the technical know-how to do it. they have everything they need to build these devices. the problem is getting these devices out of yemen because a counterterrorism effort is focusing on containing them in yemen. then, porting them to a position where they can go on board aircraft flying the the unit states. so they have a lot of the necessary components and know how at their disposal where they in a relatively relaxed environment they can work on these devices. >> tommy, what are the questions u.s. intelligence wants to try to understand now about this device, about the people behind it? >> i think the main thing is who made it.

is it an assiri-made device? how is it going to be detonated if you're using plastic syringes. it's probably not going to be detected before you get on the aircraft. is this similar to the plot using 80 grams of petn in the printer being shipped to chicago that was discovered in london? and in that case, that particular printer had gone through all types of screening, machines, and other devices. the saudi arabian intelligence service provided particular information to look at that particular package. the british authorities used dogs and the dogs sniffed that package and couldn't detect 80 grams of petn a mere inches from their noses. materials like that are very hard to detect. and depending how they're packaged and carried poses the terrific threat to everybody.

>> it's scary listening to you. i don't like to -- there's not much that makes me scared. i don't like to promote things that make other people scared. but the idea that those bombs in the printers went through so many multiple screenings and -- i mean, dogs and devices -- and yet were still able to get through, is there technology in the pipeline that can detect this stuff? >> well, i'm not sure about the technology. many people make so many claims. you talk to the company owners of companies using these dogs and they brag about the high percentage that they can detect. then the reality is they miss it. that particular package in london that was going to be shipped to a jewish center in chicago, illinois, would have made it if it wasn't for the specific information. it had gone through two or three airport screenings to get to london. it was one airplane away to being shipped to the united states and successfully arriving. other than the intelligence that interrupted that plot, the technology did not intercede to make us safer in that case.

and we don't know what was -- all the details about this device to know if it's better. >> bob, is this is matter of time before something like this gets through? >> i'm afraid so. this could all die down of its own accord. but with the technology, asiri and there's a couple palestinians in yemen helping them improve it, i think the risk goes up. i think one day it will get through. >> fran, do you agree with him? >> i do. the one thing we should say to give some people some sense of comfort. your hands get swabbed. that's meant to detect explosive traces. and it's the sort of thing that you hope would pick up if someone had been handling this sort of device. remember, this was not meant to be a body cavity device. this is an external device. you hope things like that.

you don't have those around the world. >> those are very random. >> that's exactly right. and what you've got to hope is a proliferation of those. >> troubling developments today. good it was caught. fran, i appreciate it. bob baer, nic robertson, tom fuentes. thank you. coming up, the white house today is insisting vice president joe biden's comments about same-sex marriage are not a departure from what president obama has said in the past. but what the president said in the past sounds different than what biden is saying now. we're keeping them honest next. at aviva, we do things differently. we're bringing humanity back to life insurance. that's why only aviva rewards you with savings for getting a check-up. it's our wellness for life program, with online access to mayo clinic. see the difference at avivausa.com.

keeping them honest tonight. the en sis tense from the white house that vice president joe biden's comments about gay marriage aren't that different than the stance of president obama. he said more and more americans understand gay marriage comes down to this. who do you love and will you be loyal to the person you love. sounds like the strongest endorsement for gay marriage yet so far. when asked flat out if that means he's now comfortable with same-sex marriage, here's how biden answered. >> i am vice president of the united states of america. the president sets the policy.

i am comfortable with the fact that men marrying men, women marrying women, and heterosexual men and women marrying are all entitled to the same rights and all the civil rights and civil liberties. quite frankly, i don't see much of a distinction beyond that. >> the white house insists what he said was not a departure from president obama's position. they say he didn't say anything the president hasn't said before. senior obama campaign adviser david axelrod tweeted this. quote, what vp said that all married couples should have exactly the same legal rights as the president of the united states. mr. biden said he's comfortable with the fact same-sex couples are entitled to the same exact rights, same exact civil liberties. but that's not the case. even in states where same-sex marriage is allowed. they have no federal rights. if one member of a same-sex couple is from a foreign

country, the federal immigration service doesn't allow that person to get a green card if they marry. a heterosexual couple doesn't have that right. biden did not say the federal government should recognize same-sex marriage. he may not be informed on the issue. mr. obama talked about work to be done about his position, quote, evolving over the past few years. >> whether gays and lesbians should be able to get married, i've spoken about this recently as i've said. my feelings about this are constantly evolving. i struggle with this. >> you said your position is evolving. you said you're struggling with it. what more do you need to know? >> well, you know, i probably won't make news right now, george. but i think that there's no doubt that as i see friends, families, children of gay couples who are thriving, that has an impact on how i think about these issues. >> again, what i know is what his position was during the

campaign and what it is now. you know, he's been very clear about it. he was very clear in the campaign. he's very clear about the fact that his position, that it's evolving. the president said he was evolving. >> did vice president biden's view just evolve farther and faster than the president's? biden was asked if he would short same-sex marriage in a second term he didn't know the answer to that question. recent polling shows about half american support legalizing same-sex marriage. and there's a push from some like nancy pelosi to make a platform for it. white house press secretary jay carney says he doesn't have any update on the president's personal views on same-sex marriage. pressed carney on why the president won't be more direct. >> the president was asked this and his personal views on this were evolving. >> everybody deserves to live and love the way they see fit.

i don't have to tell people in this room we have a ways to go in this struggle. what is he referring to if not gay marriage? >> well, i think you have heard him say and those in the administration like myself who speak for him that he opposes efforts to restrict rights, to repeal rights for same-sex couples. >> so can you explain then clearly what -- how vice president biden who said there is a consensus building toward gay marriage in this nation then came out yesterday saying he is absolutely comfortable with men marrying men and women marrying women is not an endorsement of gay marriage? >> i think the vice president expressed his personal views. he also said he was evolving on the issue. i think the -- >> when? >> he did not say that, jay. >> he did. >> the spokesperson said it afterwards. >> let me be clear. the vice president -- what he said about the protection of rights of citizens is completely consistent with the president's position on this issue.

>> is that really the case? joining me jessica yellin and former clinton white house senior adviser on same-sex civil rights issues. jessica, was this joe biden just kind of speaking out of term as joe biden sometimes does? or do you think this is some part of a calculated effort to on the part of the administration to have it both ways? >> no, this was not a calculated rollout by the white house. there's no way they wanted this today. the campaign was intending to have today focused on their new ad campaign framing the election. this was a mess of the white house's own making. the bottom line is the president has this convoluted opinion on gay marriage. he has in a sense taken a position where he says to gay families when he's talking at fund raisers, he'll say things that will indicate to them that he seems to be for possibly gay

marriage in a second term. he'll say things like there's much more work to be done when it comes to loving couples have having more rights. when i talk to gay donors, many of whom give to the campaign, they say he will be for gay marriage in a second term but he will not say that publicly. so they are inevitably going to get caught up in this craziness at the white house when they're being so vague. in a sense they are trying to have it both ways. this was a mess for the white house. >> richard, the president seems to believe this is a states issue. vice president biden is on the same page with the president. but vice president biden is saying gay couples should have the same rights as heterosexual couples in marriage. but if it's a states right issue, the federal government doesn't recognize those marriages and other federal issues, they don't have the same rights. >> yeah. i don't think that's currently

the president's position. although as jessica said, it's very hard to discern where the president is. he's got a neither yes nor neither no position. i think what he -- awhile back when he talked about the rights of states to decide for themselves, i think he was speaking about the new york situation last summer and others. this is an issue we're having a national discussion on. and the president needs to articulate a leadership position. this issue's not going to go away. especially now after vice president biden's very candid and, quite frankly, welcome remarks. >> do you think he's trying to have it both ways? he's after the election going to speak out in support of same-sex marriage? >> i think he's gotten some bad political advice quite frankly. i think some of his political advisors have somehow determined between now and the election if

he can be neutral on this, it might be advantageous to him. i think not only are they wrong in terms of the electoral map, but they're wrong because people want their president to lead on issues like equality. >> jessica, doesn't this sort of for the president play into the criticism he got after talking to the former russian president where he talked about, he said he'd have more flexibility after the election? >> well, arguably yes, you could think he doesn't speak his mind fully. but the truth is when you look at the polling data, anderson, there is a cold, hard, political reality, which is there are certain key groups that don't support gay marriage. while the majority of americans do, by small majorities, african-americans, voters over 50, and non-college voters do not support gay marriage. and in a razor-thin election, those are groups that the

campaign might be loathed to alienate. and this is a decision they've made that they don't want to take a risk in coming out on this issue now. and if he's re-elected he could come out on it afterwards and they might have decided no harm done in making that choice. >> richard? >> i think jessica's exactly right. she summed it up very well. but the point is, you know, a majority of americans now support this and nobody who supports -- who doesn't support the president is going to vote against him because of his stands on gay rights. this president has been a terrific president on gay rights. this one issue is not going to change anybody's vote. and we already know what the president stands for. >> richard, it could -- you know, for those who are opposed to same-sex marriage, it could mobilize them and make them more motivated to vote against the president. >> you know, i think that if you make electoral and campaign

decisions based upon who's going to be mobilized on the other side, i just think this whole political calculation is way too cute. this is an issue that we're having a national debate on. the president can't say i haven't made up my mind. what is he going to say? i haven't made up my mind. he's shown such great leadership on so many other issues including other gay rights issues. i think he's going to have to say something about this. >> appreciate you being on. on the even of north carolina primaries, a neurosurgeon running for congress isn't backing down from his birther comments. he believes president obama's birth certificate is a forgery. my interview with him next. @@ greetings from the windy city of chicago.

people here sure are friendly but some have had a hard time understanding my accent. so to make sure people get every word of the geico savings message i've been practicing how to talk like a true chicagoan. switching to geico could save you hundreds of dollars on car insurance... da bears. haha... you people sure do talk funny. geico®. fifteen minutes could save you fifteen percent or more on car insurance.

♪ i can do anything ♪ i can do anything today ♪ i can go anywhere ♪ i can go anywhere today ♪ la la la la la la la [ male announcer ] dow solutions help millions of people by helping to make gluten free bread that doesn't taste gluten free. together, the elements of science and the human element can solve anything. solutionism. the new optimism. charity has some explaining to do.

what happened to the more than 50 million it collec

most of the country including top republicans thought the birther issue was dead. but in north carolina, on the eve of its primaries the issue is once again alive. long after the matter was put to rest by facts, several republican congressional candidates are still questioning president obama's birthplace. in north carolina's ninth district race, jim pendergraph said he has reason to be suspicious about whether president obama was born in united states. he also said quote, generally where there's smoke there's got to be fire somewhere. in the state's eighth district, richard hudson who is a leading

candidate told a tea party group quote, there's no question president obama's hiding something on his citizenship. he's been backing off that comment in recent days. but one of his opponents, dr. john whitley, a neurosurgeon, isn't backing down at all. he's called the birth certificate quote, a poorly reproduced forgery. how does he know this? he compared it to the hawaiian birth certificate of one of his staffers. he said there's a tremendous amount of smoke here. in fact, it's called a spoke screen. i could go through all the evidence on his birth certificate point by point, but this has been done so many times before. nevertheless, i wanted to talk to dr. whitley to see how he could continue to make disproving claims about president obama's presidentship. i spoke to him earlier. >> dr. whitley, you say you and your people confirmed president obama's birth certificate was forged. you say you've confirmed this on your own. are you a trained expert in historical legal documents on

hawaii? >> no, i'm not. no. what we did was we took a bona fide original birth certificate from hawaii and we subjected it to the same scrutiny that the document experts hired by sheriff arpaio did. and we came up essentially with the same results that they did. we were just reproducing what his experts came up with with their evaluation. >> you say he hired -- first of all you say sheriff arpaio hired experts. he hired nobody. he had volunteers who were former investigators, a volunteer posse allegedly working on this. do you know by name his document experts? >> no, i do not. >> so you don't know he had document experts. >> i would say sheriff arpaio who is a great american as far as i'm concerned, he would not

ask someone to review a document that he did not feel they were expert and qualified to render opinion whether they charged for it. in fact, the fact that they did not charge for it from what you're saying i believe gives more credence to their results. >> what experts examined the employee who worked for you who you believe is a bona fide birth certificate? >> the individual who has the birth certificate is a medical expert in terms of the type of specialty that he's in which is nuclear medicine. he's not a document expert -- >> you're saying somebody who works with you who you -- who has a bona fide hawaiian birth certificate, how do you know it's a bona fide hawaiian birth certificate? >> i have seen it. i have it. i have ran my fingers across the seal. i have looked at it. >> you're sighing seals can't be forged?

you're an expert in documents. you don't believe president obama's certificates but because you've run your fingers on a raised seal on a document, you believe it's real? >> i believe that the birth certificate of the individual who works for me is an accurate, original birth certificate. >> but you've had no experts examine it but you've taken this on faith because you've run your fingers along the raised seal. >> i've held it in my hand. i'm taking it on faith -- >> you know nonpartisan organizations have looked at the certificate of president obama, they ran their fingers on this raised seal as well and declared that a legitimate document. you also know that there were -- that the former health director in the state of hawaii has testified and given an affidavit that she examined president obama's birth certificate and it's legitimate and the republican governor of hawaii has verified that as well. >> well, i think there's a lot

of subjectivity to that. i'm not exactly convinced that is the case. if the -- >> so it's part of some conspiracy from the governor of hawaii, the health director of hawaii, factcheck.org, nonpartisan organizations that have examined that as well as the state registrar who has confirmed the 2011 document released is the actual birth certificate? they're all in a grand conspiracy? >> i'm not sure that we have -- i'm just saying that i don't think the document that the white house released has the long form as his birth certificate is an actual legitimate copy of the original birth certificate. >> but, sir, you know it was verified by the state registrar of hawaii. so you're saying they're in on this? >> i'm saying there's a lot of questions that still lend itself do this birth certificate which is taking us away really from the important issues that we need to be discussing. >> sir, you're the one who brought these issues up. you have a few thousand dollars in your bank account.

isn't this just a desperate attempt to appeal to folks who may come out and vote tomorrow? you're a doctor. you're a smart guy. there's no evidence this is a fake document. why should anyone believe that the document that some person you know who says they're from hawaii, why should anybody believe that's real? >> well, this document is here and available for anyone who would like to come and personally look at it, touch it, feel it, feel the seal on the document. they can do that. we cannot do that with the current document out there about president obama. >> have you run your fingers along president bush's seal on his birth certificate? have you raised objections? have you looked at his birth certificate? >> no, i have not. >> no. i have not. >> it's only this president who you believe you need to examine personally his birth certificate. have you flown to -- have you made any effort to contact the white house and ask for it? >> no, i have not. >> dr. john whitley who's running tomorrow in the election

and wants to be a congressman from the eighth congressional district in north carolina. the primary, as i said, is tomorrow. coming up, big question about big money raised for disabled veterans. keeping them honest. we're going to look at what one charity did with nearly $50 million and why the donations never made it to those who need it. a healthy way with listerine® whitening plus restoring rinse. it's the only rinse that makes your teeth two shades whiter and two times stronger. ♪ listerine® whitening... power to your mouth.

it. coming up will a school bake sale be a thing of the past? the ridiculist coming up on "360."

another keeping them honest report. when you open your heart and a wallet to help a charity, how do you know your money will be put to good use? there are new questions tonight about millions of dollars donated in hopes of helping disabled veterans. the chairly that collected all that cash is under scrutiny because there's no sign of the money helping the men and women who have sacrificed so much to keep us safe. here's drew griffin of cnn's investigations unit. >> reporter: mary ellis is pretty charitable especially to groups supporting disabled veterans. it didn't surprise her when she opened her mailbox one day to find this. >> with your husband's name on them? >> uh-huh. >> reporter: in the industry they're called guilt packages. when this arrived, a calendar

book, she felt the guilty tug to make that donation. >> see. it started with disabled american veterans. how many people are going to look at it and think that they are the same organization? >> and they're not? >> no. >> reporter: in fact, the gifts were not from the well known and respected disabled american veterans but a newer smaller charity. the disabled americans veterans foundation. something didn't smell right so this retired teacher did some research and learned that the dvnf gets an f from a charity watch dog group. according to its tax filings, raising nearly $56 million in donations for veterans in the past three years, but according to the records cnn found, none of that $56 million has gone to direct services for veterans. >> making lots of money off of it. when you're talking about millions of dollars that people are doing by grabbing money from people who don't have it.

>> who believe out of the goodness of their own heart that they were giving money to the troops. >> reporter: the purpose is to to try to explain to me why these numbers don't add up. cnn has been trying to reach the disabled veterans national foundation off and on for nearly two years. a public relations man did return our phone call outside the group's washington, d.c. headquarters in 2010. but the manager refused to talk. and despite e-mails and more phone calls, our repeated requests for interviews were all denied. >> up to $2 billion is raised in the name of veterans in this country, and it's so sad that a great deal of us waste hundreds of millions of dollars of our charitable dollars intended to help vet vance is being squandered and wasted by tunists

and individuals and companies that see it as a profit-making opportunity. >> reporter: daniel boricof runs a charity group out of chicago. he grades charities at how much good and bad they do with your donations. veterans and military charities are some of the worst, he says. and that includes the disables veterans national foundation which he gives an f. hardly any of the donations make it to the people the group is fund-raising for. now back to the $56 million they have raised. if it hasn't gone to direct veterans, where exactly did it go? >> as far as we can tell up to the tenth floor of this manhattan office building to a company called quadrega arts. a company that specializes in fund-raising. as far as we can tell, they know a lot about fund raising for itself. quadriga is a private company that raises money for more than

500 charities and nonprofits worldwide. in an e-mail to cnn, a company spokesman said quote, it does not discuss specific client relationships. but that spokesman did say quadriga at times chooses to invest money in partnerships with non-profit organizations. to date they told cnn it's actually lost $7 million investing in veteran non-profit organizations. that may be true, but in the case of the disabled veterans national foundation, according to tax documents, not only did all the nearly $56 million in cash donations go to fund-raising costs, but the dvnf still owes its foundation another $5 million. they reported on tax returns it's costing more than a dollar

to raise a dollar, despite the fact that the fund-raiser says it wins its fair share of business because it's a low-cost provider in the non-profit marketplace. >> they print these solicitations and send them out to millions of people. they don't care about the percentage return. all they care about is how much money they get from it. >> drew, this is unbelievable. how does this charity get away with this? how can they take in all this money and not give it to any of the people they say they're collecting it for? >> that's the answer we've been searching for. according to the irs, this is a registered charitable foundation. it does get a lot of warnings, f grades from the organizations that monitor these charities, but there doesn't seem to be anything in place that says you can't do this. and there may be a little loophole. the dvnf does actually give away some stuff, anderson.

it's just stuff like coconut m&ms. >> we have some of these here. why on earth did this charity send candy? >> we found out it's one of these tricks of the trades. the disabled veterans national foundation does give away stuff. donated stuff. junk maybe. leftover stuff that the actual veterans assistance groups are telling us they don't need. want an example? one group got chefs coats, mens football pants and thousands and thousands of those bags of coconut m&ms. >> it's incredible. drew griffin, thank you. we're going to continue to look into this tomorrow night. it raises so many questions and people need to know about this organization. see part two of his interview tomorrow night. coming up, we have the latest on the murder at churchill downs. kentucky police are keeping quiet about the details. ferentl.

we're bringing humanity back to life insurance. that's why only aviva rewards you with savings for getting a check-up. it's our wellness for life program, with online access to mayo clinic. see the difference at avivausa.com. like in a special ops mission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering, web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account.

i'm susan hendricks with a "360" news and business bulletin. authorities are keeping the death of don fabian perez under wraps. he is the horse groomer found dead on the grounds of churchill downs the day after the kentucky derby. police will only release the cause of death when the killer is arrested. jurors in the john edwards trial heard about staying away from rielle hunter before the two began their affair. john edwards is accused of using campaign cash to cover up the

affair. election resulteds in france and greece had an impact on markets in the u.s. fear about the at the future of austerity plans caused stocks to slide this morning. prince harry is in washington, d.c. all decked out for an effort honoring his humanitarian efforts. hee is a captain and piloted in britain's army air corps. anderson, back to you. ♪ you are my sunshine, my only sunshine ♪ ♪ you make me happy [ female announcer ] choose the same brand your mom trusted for you.

children's tylenol, the #1 brand of pain and fever relief recommended by pediatricians and used by moms decade after decade.

time now for the ridiculist. we're adding the bake sale ban in massachusetts. that's right. put away the coffee cake. don't think about the boston cream pie. bake sales are soon to be a thing of the past. according to the boston herald, part of a new effort to curb obesity, officials are cracking down on the types of foods sold in public schools. before you tweet me or write me a letter, i want to go on record to say i am anti-obesity. i get it. it is a major problem. i think school lunches should be healthy and i totally support getting junk food out of vending machines, just as long as they're not the cnn vending machines. i have credibility on this issue. it's not like the table outside my office was filled with cupcakes today. okay. the table outside my office was

full of cup takes today. but seriously, i love healthy food. >> spinach? all right. >> wow. >> now, clearly i enjoyed the first time i had spinach. and i always eat my vegetables in front of a studio audience. according to the "herald," some parents are concerned healthy bake sales won't raise trips. brownies taste amazing, and spinach tastes like wolf blitzer's beard dipped in a salad. young people need to get healthy and layoff the junk food. in my old school this is what they do. >> i love these fries. >> if you love them, why don't you marry them. can i have some? >> go ahead. >> god, these are good. >> cindy, can you leave some for us? >> i thought you were trying to lose weight.