today, he teaches students. the school is standing by him. but the mayor wants him gone. i'm brooke baldwin. the news is now. investigation 17 floors up. an ad executive on a first date falls to her death. is al qaeda planning to attack this weekend? the u.s. not taking any chances. plus, in one state, the plug gets pulled on a special plan to arm teachers. but the fight, not over. and -- ♪ just a small town girl, living in a lonely world ♪ >> no stranger to drama. "glee" announces plans to deal with the death of one of its stars. all right. here we go on this friday. good to be with you. i'm brooke baldwin. to hear the government tell it, there is danger afoot overseas

right now, especially in parts of the arab world. today the state department is saying watch your back if you travel. let me show you just a live picture from cairo at this hour. this is the tip of the iceberg. when you think about really the chaos that is currently gripping the middle east, north africa, the government has said it will close certain embassies this coming sunday including the one in cairo based upon credible fears of potential unrest, potential attacks. but now they're doubling down. because today washington has issued this worldwide travel directive alerting us to potential terrorist attacks, especially in the middle east. let me quote here. it says, potential attacks could occur in or could emanate from the arabian peninsula. that one is worth noting. the directive says there was a heightened threat between now and the end of august. with possible targets including subway and rail systems as well as aviation and maritime

services. this is serious stuff. take a listen. >> leadership of the house has been briefed on the subject. my -- my staff was at that briefing, and they briefed me as to what the basis of it is. yes, we have been briefed. and now that it's in the public domain that the embassies will be closed and there's a travel alert for americans traveling abroad, there's some understanding of the seriousness of the threat. >> so stay with me as we piece this whole thing together. chris lawrence joins me now from the pentagon, capitol hill. chief congressional correspondent dana bash. paul crookshank, cnn terrorism analyst. dana, we heard leader pelosi talk about briefing house leaders. you talked to the intel chair, mike rogers. what does he know? what did he share with you? >> well, i should clarify that our producer, paul, caught him on his way out when all of congress was leaving. everything is gone now for five

weeks. let me actually just play that sound. we can talk about it on the other side. >> i mean, obviously there's got to be some controversy on the bill. we're going to -- we'll work through it. we've worked through other controversial issues on the oversight bill. we'll work through controversial issues on this. >> i see described in "new york times" about what you were looking at are accurate, the idea of maybe putting the data in the hands of the companies? >> we're looking at all of it. we're trying to make sure we have all of it. >> can you tell us more about the worldwide -- >> obviously it's serious enough that we're taking concrete steps to make sure that our personnel overseas are safe. >> broadly, how can congress leave when there's so much unfinished business. >> there's plenty of those of us who will do national security work that will continue to do that work over the month of august. >> is the travel warning tied to the embassy closings? >> he is obviously the republican chair of the house intelligence committee. brooke, just before coming on

with you, i just hung up the phone with a democratic source who was familiar with what is going on in the intelligence world who says this is very significant. that what they were told was that this potential threat could be very soon. no specific date. did not say what a source earlier today told me. which is that they'd known specifically that these embassies are the targets. they have other chatter that suggests it could be more broad than that. this is something that obviously is significant enough for not just the intelligence committees, which are generally briefed on issues like this, but the leadership as well. the vice president himself did that earlier this week. >> paul, when you read parts of these directives, you see arab yan peninsula. i think yemen, al qaeda in the arabian peninsula. >> there are some indications this could be a risk of an attack in yemen from the group over there, al qaeda in the arabian peninsula. this is a group that was driven out of the tribal areas of yemen last year.

they've since regrouped and they've been launching quite a lot of urban warfare type of attacks. this a group that in 2008 attacked the u.s. embassy in yemen. it didn't breach the perimeter but killed 16 yemenese. >> chris lawrence, when we hear about this, two directives given in two days, it certainly gets our attention. >> yeah. brooke, from what we're hearing, the more we're hearing from sources the more it's pointing to as paul mentioned, yemen. specifically officials are looking to a potential threat to the u.s. embassy in yemen between tomorrow and tuesday. u.s. intelligence officials have been picking up a growing threat from the al qaeda affiliate based in yemen over the past several weeks. it's really only in the last several days that they got additional intelligence. and after analyzing that, that's when they said there is a potential threat not only in yemen, but also potentially for

western targets in north africa, in the middle east. that is why you saw first the embassies close. then subsequently you saw the worldwide travel warning. >> paul, before last year's attack on benghazi, do you think the government would have gone to this length? or do you think these directives are in direct response to that and also the criticism that's ensued? >> brooke, clearly that plays into the calculations. there have also been other plots against u.s. embassies in the region. in may there was a plot broken up against the u.s. embassy in cairo. in november of last year there was a plot against the u.s. embassy in aman, jordan. it's not just benghazi. there has been a sort of increased threat against u.s. interests in the middle east. this is very much aman al zawahri's strategy. a lot of concern about that, brooke. >> finally, chris, if you're an american, listen, this is the end of summer. many americans are traveling overseas. i don't know how many americans are going to yemen, per se.

let's say you're headed to europe. what sort of warnings or precautions should people be taking? >> i think the worldwide caution is just to sort of keep your eyes open. eyes and ears open. be a little more alert than normal. there are going to be families taking their kids on vacation in europe. people traveling home to the middle east to see their families there. no one's saying cancel all your vacation plans. but i think in terms of the embassies, they did not want people lining up outside the embassies during these next several days when some of these threats may be at their highest. coming in to get visas and do paperwork and things like that. presenting a more obvious target, so to speak, for any potential attack. but in no way is this warning saying americans don't leave the country over the next month. it's telling them, please be alert. >> okay. chris lawrence, dana bash, paul

cruicktha crui cruickshank, thank you very much. cnn has uncovered information as to what has been happening in the wake of the cia terror attack. benghazi, libya. we know four people were killed including ambassador chris stevens. dozens of covert operatives were on the ground that night. and that the cia is going to great lengths to make sure they don't talk. cnn's drew griffin has been all over that. drew? incredible. >> it is incredible. >> the numbers. >> the numbers we're getting is interesting in terms of how many people were on the ground. but also just what lengths the cia appears to be going to make sure none of them leak any of the information. this has raised a lot of interest in congress today. take a look. >> reporter: cnn has learned the cia is involved in what one source calls an unprecedented attempt to keep the spy agency's benghazi secrets from ever leaking out. since january, some cia

operatives involved in the agency's missions in libya have been subjected to frequent, even monthly, polygraph examinations, according to a source with deep inside knowledge of the agency's working. the goal of the questioning, according to sources, is to find out if anyone is talking to the media or congress. it's being described as pure intimidation with the threat that any unauthorized cia employee who leaks information could face the end of his or her career. exclusive communications obtained by cnn, one insider writes, you don't jeopardyize yourself. youer jeopardier diz your family as well. another says you have no idea the amount of pressure being brought to bear on anyone with knowledge of this operation. >> agency employees typically are polygraphed every three to four years. never more than that. >> reporter: the rate of this kind of polygraphing is rare, according to former cia operatives, including robert

baer. now a national security analyst for cnn. >> if somebody is being polygraphed every month or every two months it's called an issue polygraph. that means the polygraph division suspects something. or they're looking for something. or they're on a fishing expedition. but it's absolutely not routine at all to be polygraphed monthly or bimonthly or whatever. >> reporter: in a statement from cia public affairs director dean boyd, the agency asserted it's being open with congress. the cia has worked closely with its oversight committees to provide them with an extraordinary amount of information related to the attack on u.s. facilities in benghazi, the statement reads. cia employees are always free to speak to congress if they want. and that the cia enabled all officers involved in benghazi the opportunity to meet with congress. we are not aware of any cia employee who has experienced retaliation, including any

nonroutine security procedures, or who has been prevented from sharing a concern with congress about the benghazi incident. among the many secrets still yet to be told about the benghazi mission is just how many americans were there. the night ambassador chris stevens and three others were killed. cnn has now learned that number was 35. with as many as seven wounded, some seriously. while it's still not known how many of them were cia, a source thames cnn 21 americans were working in the building known as the annex believed to be run by the agency. the lack of information and pressure to silence cia operatives is disturbing to congressman frank wolf whose district includes cia headquarters in langley, virginia. what do you think is going on here? is this an elaborate attempt to cover this whole thing up and push it under the rug? >> i think it is a form of a coverup. i think there is an attempt to

push it under the rug. i think the american people feel the same way. we should have the people who were on the scene come in, testify under oath, do it publicly and lay it out. there really isn't any national security issue involved with regard to that. >> the chair recognizes the gentleman from virginia. >> reporter: wolf has repeatedly gone to the house floor asking for a select house committee be set up. involving several intelligence committee investigators assigned to get to the bottom of the failures that took place in benghazi. more than 150 fellow republican congressman have signed his request and just this week, eight republicans, including senators and members of congress, sent a letter to the new head of the fbi, asking he brief congress within 30 days. >> drew, on that same vein, hearing from the congressman, talking about pushing it under the rug, talking about coverup,

we've heard that from republicans ever since the story broke. now with the cia, what is it republicans believe is being covered up? >> i'm going to preface this by saying they don't know. they don't know what it is. the speculation is this could all involve what they think is basically gun running. collecting surface to air missiles from our libyan rebel friends who no longer need them in libya. getting them through turkey and into the hands of syrian rebels who are fighting the regime in syria. now, there were only two state -- two u.s. agencies there. the state department was completely denies it. they say they were helping the libyan government collect damaged, you know, dangerous weapons and help the libyan government destroy them. they say they were not involved in any shipments. the cia on its missions absolutely will not comment. they never do. >> drew griffin, thank you very much. we'll see you next hour. coming up, if you have a tip for drew and the cnn investigations team, i want to pass this along to you. go to cnn.com/investigate. coming up next, just 24

hours after ariel castro apologized to his victims, we now know his next moves including what kind of life he will be leading for the rest of his life behind bars. plus, a ninth woman today coming forward, accusing the mayor of san diego of sexual harassment. and she says she has a connection to marilyn monroe. stay right here. let's play: [ all ] who's new in the fridge!

i help support bones... [ ding! ] ...the immune system... [ ding! ] ...heart health... [ ding! ] ...and muscles. [ ding! ] that can only be ensure complete! [ female announcer ] the four-in-one nutrition of ensure complete. a simple choice to help you eat right. [ major nutrition ] nutrition in charge. her long day of pick ups and drop offs begins with arthritis pain... and a choice. take up to 6 tylenol in a day or just 2 aleve for all day relief. all aboard. ♪ an impressive epa estimated 34 mpg highway... and during chevy's model year-end event you're getting a great deal on our remaining 2013 models, but they're going fast. what are you doing? moving in. before someone else does. ohhh...great. [ male announcer ] the chevy model year-end event. the 13s are going fast, time to get yours. right now, get this great lease on a 2013 chevy malibu ls for around $169 a month.

well, it just keeps getting worse for the mayor of san diego, mayor bob filner. because a ninth woman now has come forward accusing him of sexual harassment. her name is emily gilbert. she talked to our tv affiliate kswb. she said the 70-year-old democrat grabbed her inappropriately. gilbert, who works as a marilyn monroe lookalike was hired to sing at a fundraiser. this was back in december. filner, meanwhile, is rejecting the calls to resign. instead, we heard from him a week ago today. remember he said he's taking two weeks to undergo intensive

therapy. that process begins on monday. also today, we have some new te ta details an ariel castro's next move. the scope of his crime so horrendous, so extreme, holding those three young women captive for years as sex slaves inside his own home. raping them again and again using chains to control them. we watched this yesterday. this monster in court. he spoke out. he said he's not a monster. he said he's just sick and he is blaming his actions on his addiction to porn. well, now his words may have determined his future. martin savidge has been all over this one for us. martin, tell us where is he going next? >> reporter: yeah, brooke. authorities will not say when he's going to move because they consider that a security issue. we do know where he's headed. that's to the lorraine facility or institution, as it's called, correctional facility. the best way to describe that, about 30 miles to the west of this city, it's kind of the

welcome center for lack of a better word to the ohio penitentiary system. there he's going to undergo some evaluation. physical and mental. that kind of gets to the issue he was trying to bring up yesterday as per his attorneys, that he suffers this kind of sickness, this addiction. it's possible that evaluation could be made. after that then they're going to try to determine, all right. where does he get warehoused, as it were, for about 1,000 years? essentially they'll look at the various sites around the state of ohio. they also have ones that are specifically set up to handle violent sexual offenders. he may go there. his family is concerned he needs to stay out of the general population because he may be considered the kind of trophy kill to other potential inmates. they're very worried about his safety. that determination as to whether he'll be isolated or not has not been made. >> you're telling me you talked to family members. i remember you had the sit-down with his two brothers. they want nothing to do with

him. his family, they're still concerned about him? >> reporter: yeah. his mother, of course, is his mother. that bond is never broken. so there are family members that are concerned for his safety. not to talk about whether he deserves to be in prison. it's while he's there. the fear is that there could be other inmates. they look at the case of jeffrey dommer. they fear something like that with ariel castro because of his notoriety. >> let's talk about this house, so called house of horrors. we know part of this whole deal, it will be demolished. you're hearing they're going to be taking extra sort of precautions, extra care with the items inside. why is that? >> reporter: right. it's mainly because this community is so sensitive about in any way these women being victimized again. what they mean by that is that they are worried that somebody could, as the house is demolished, try to take, i don't know, part of the house or some of the contents that were in

that house and use it as a twisted souvenir. as they demolish that house, it's loaded into trucks. those trucks are going to be escorted to parts unknown. there that debris is going to be mixed with other general demolition debris and eventually sifted off and sent to some place to be disposed o f. they're going to work very hard to make sure it doesn't fall into improper hands. the whole thing will take about a day. they'll then bring in dirt, fill in the basement, grade the site, put down seed, add landscaping. eventually they say it will be up to the community and above all, the victims, to determine how that property will be used. maybe a playground. maybe a park. or something that the community can put to good use. >> start anew on seymour avenue. martin avenue savidge, thank yo much. the state of texas running out of the drugs used to administer lethal injections. what does that mean for those on death row and the alternatives being considered? that's next. beyond the engineering.

♪ come to the golden opportunity sales event to experience the precision handling of the lexus performance vehicles, including the gs and all-new is. ♪ this is the pursuit of perfection. yeah... try new alka seltzer fruit chews. they work fast on heartburn and taste awesome. these are good. told ya!

i'm feeling better already. [ male announcer ] new alka seltzer fruits chews. enjoy the relief! [ male announcer ] new alka seltzer fruits chews. it's sleep train's interest-free for 3 event! get 3 years interest-free financing on beautyrest black, stearns & foster, serta icomfort, even tempur-pedic. plus, get free delivery and sleep train's 100-day low price guarantee. you'll never find an interest rate lower than sleep train's interest-free for 3 event, on now! superior service, best selection, lowest price, guaranteed!

♪ sleep train ♪ your ticket to a better night's sleep ♪ if you take acetaminophen, heads up. a watchdog agency says the popular pain reliever, the

ingredient in tylenol, can cause a potentially fatal skin reaction in rare cases. the fda says more than 100 cases have been documented. this goes all the way back, actually, to 1969. including a dozen deaths. the reaction include flu-like symptoms, a rash, maybe some blistering on the skin. blindness and damage to internal organs. texas has two executions set for next month. but state officials say they're running out of the drug used in lethal injections. cnn crime and justice correspondent joe johns joins me now. joe, what drug is this? why the shortage? >> you know, let me just set it up for you a little bit. texas, far and away, executes more inmates than any other state, brooke. they've executed 11 people just this year. they do it by lethal injection. and the drug you asked, it's something called pintobarbytol. they have a month's supply of the drug left. enough for three or four more

injections, tops. they're not scheduled to execute anybody in august. they could run out in september or october. what's the problem? problem is the suppliers of lethal injection drugs get pressure from critics of the death penalty to stop making the drugs available. also european manufacturers of the drug have protested the use of their product in executions, brooke. >> so this if they're obviously running out of this, are there alternatives? what are they? >> reporter: yeah. you have to think outside the box on excuses here, i guess. georgia, arkansas, south dakota and tennessee have all tried to get around this in the first place by just keeping the names of the suppliers secret so they don't get boycotted or whatever. missouri has actually talked about switching drugs and going to propofol, which you'll remember is the drug believed to have killed michael jackson. but it's never been used in an execution before. the courts still have to approve use of the drug for that purpose. missouri, by the way, is even considering going back to the gas chamber as the main form of

execution in their state. they'd be the first state in the nation to go back that far. right now it's the default punishment inmates can choose if they don't want lethal injection, brooke. >> gas chamber. wow. joe johns, thank you very much. coming up, the hit tv show "glee." they have certainly taken on a lot of controversial, tough subjects in the past. but for the cast, this one could be the toughest of them all. back in two minutes. ♪

[ male announcer ] you wait all year for summer. ♪ this summer was definitely worth the wait. ♪ summer's best event from cadillac. let summer try and pass you by. lease this cadillac srx for around $369 per month or purchase for 0% apr for 60 months.

come in now for the best offers of the model year. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement plans, it could save you thousands in out-of-pocket costs. call now to request your free decision guide. i've been with my doctor for 12 years. now i know i'll be able to stick with him. you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and you never need a referral. see why millions of people have already enrolled in the only medicare supplement insurance plans endorsed by aarp. don't wait. call now.

here is the breaking news we are just now learning coming into us here at cnn. u.s. intelligence now has specific information pointing to a potential attack from al qaeda in yemen. barbara starr is working this one for us today from the pentagon. barbara, what more do you know?

>> well, brooke, as all of us at cnn have worked all day here to put the pieces together, what we are learning now is that yemen, a country, you know, in the middle east of great concern to the u.s. because of a very strong al qaeda element, now appears to be really in the cross-hairs of the intelligence community's concern. al qaeda in yemen has been growing in strength. they have been watching a threat there for some weeks we are told. we are also now told that in recent days, the threat began to come together in the eyes of u.s. intelligence. they began to see more specificity in terms of believing and assessing that al qaeda there might be in the final planning stages of an attack against u.s. or western interests. that along with approaching the end of the holy days of ramadan has led to this concern across the region, led to the u.s. shutting down embassies, let to

everybody being on watchful alert over the next several days. but it looks now like it is emanating, beginning in yemen with al qaeda there in that country. and the threat growing across the region, they believe, in terms of what they have to be on the look outfor. brooke? >> barbara starr, thank you very much. much more on this directive with regard to u.s. embassies at the top of the hour. barbara, thank you. a star doctor was trying to get pregnant. her husband allegedly tricked her into taking a concoction to help her conceive. dr. autumn died suddenly of cyanide poisoning back in april. klein's husband has pleaded not guilty in his wife's poisoning death. poppy harlow has been tracking this one. she also talked to the wife's friends, neighbors. poppy, what do you know?

>> reporter: hey there, brooke. this is a suspected murder mystery that has rocked pittsburgh involving two star doctors. a husband and a wife. and after a three-month investigation police allege the doctor murdered his wife, dr. autumn klein, a lethal dose of cyanide. he's sitting in the jail behind me facing criminal charges he denies. new details in the suspected murder mystery. for the first time we're hearing how the doctor allegedly prepared his wife creatine regimen. he prepared five crams of creatine in the morning to take in the morning or evening by mixing it into a sugary drink or putting it on her toast. >> she was so kind, compassionate. >> reporter: debbie remembers her 41-year-old doctor. the head of women's yurology at

university of pittsburgh medical center. but in their criminal complaint police say her husband, 64-year-old dr. robert ferante murdered her with a lethal dose of cyanide. the two had a 6-year-old daughter together. what did she say about her daughter. >> it was the love of her life. >> reporter: did she talk about her husband at all? >> not at all. not once. >> reporter: one of the theories the prosecution will work off of is that the cyanide was mixed with the creatine klein took. the levels of cyanide in klein's system were significant. enough to make her collapse in 30 seconds. and says when ferrante was questioned by police about his wife's death his demeanor was indifferent. >> he maintains his innocence in this thing. absolutely denies he had anything to do with her death. he is extremely concerned about his 6-year-old daughter. i'm sure the commonwealth will say it's a strong circumstantial case.

in my opinion it's not. >> reporter: why do you think it's not? >> i'm not getting into it. >> reporter: klein's parents were in court this week when ferrante pleaded not guilty to criminal homicide. >> they'd just been to vacation. they'd been for at least a week in puerto rico. >> blithe runsdorf lived across the street from the couple. now that you've seen the criminal complaint and allegations are you surprised? >> absolutely. i think stunned is too little a word for how we feel about this. a thing that i think bothers most of us is what's the motivation? >> reporter: a possible motive, police allege in the affidavit ferrante thought klein may be having an affair. >> i really believe she could have done so many greater things. that's what makes this all so awful. >> reporter: the big question is, what will ferrante's defense be? we asked his attorney. he said he's not going to fight this out in the media. we're going to have to wait for the trial to hear that. at the same time, the d.a.'s office here tells me that they have not yet decided whether or not they will seek the death

penalty in this case. brooke? >> poppy, thank you very much. coming up next, the hit tv show "glee" reveals how it will handle cory monteith's death. thing is, they're leaving something very important out. we'll discuss that coming up. plus, the next host of the oscars revealed. the show, surprise, surprise, may include a little dancing. [ female announcer ] aveeno® with soy helps reduce the look of brown spots in 4 weeks. for healthy radiant skin. aveeno®. naturally beautiful results.

"do i really need to add downy every time?" and i say, "yes. you really do." [ sniffs ] just toss downy unstopables in before the wash. then pour downy infusions right in here for scented softness that helps reduce pilling, fading, static, plus fresh scents that last up to 12 weeks. that's as long as bears hibernate. sure, you could go without it, but do you really want to be that person? downy unstopables and downy infusions in every wash. you'll be unstopable. but for all these symptoms, you also take kaopectate. new kaopectate caplets --

soothing relief for all those symptoms. kaopectate. one and done.

and the envelope, please. we now know the name of the superstar comedian who is hosting the next academy awards show. how awesome would it be if she, like, danced all the way up to her podium. ellen degeneres announced the big news on twitter. here's what she tweeted. i'd like to thank the academy, my wife portia. oh, dear. there goes the orchestra.

keep in mind this is certainly not ellen's first trip to the oscar rodeo, if you will. she hosted the academy awards once before back in 2007. let's get started. >> everyone, spread out and hide. spread out and hide. find a place to hide. go over there. >> a school shooting, bullying, teen pregnancy, homo swsexualit. it may be a comedy drama series but "glee" is not afraid of the heavy stuff. they will have to grapple its toughest subject so far, the death of one of its own. an episode is currently in the works written around cory monteith found in a toronto hotel room just last month dead from a fatal cocktail of heroin and alcohol. with me, stacy kaiser,

psychotherapist. let me begin here, krista, with you. we know that during this third episode fox is airing public service announcements about substance abuse. this is the storyline that has people talking and mourning. cory monteith's character will die not from drugs. we did a whole special here on cnn about sort of the uptick in heroin. especially in young people. why are they avoiding it? >> i'm not sure they entirely are. from what i understand from what ryan murphy has said, they're not exactly sure how he's going to die. they did say that it would probably not be from drugs. i know they're also going to be doing a psa talking about the face of addiction and what addiction looks like and how someone like cory who seems so clean cut and was always very

professional and the life of the party and incredibly popular did suffer from the demons of addiction. >> and with the demons of addiction and this loss for this show, stacy, i'm thinking, you're a psychotherapist. i remember when the story broke. you see these pictures of these little girls. you think about the "glee" audience. these preteens who were laying flowers at this hotel. at their age, do they understand what's happening? >> you know, i have teenage daughters myself who watch "glee." i can tell you that they were devastated. part of what i think is challenging is for these younger girls in particular, some of the biggest fans of the show, they think that cory is fin, his character. fin is all american good guy. the nicest person. he would never do drugs. he doesn't drink. so they wouldn't expect that he would be like this. so now they're really having to understand the crossover between the fantasy of television and the reality of the real kid that was truly struggling. >> krista, i also say, you know,

i salute "glee" and rye wran murphy for not shying away from tough topics. i remember that whole shooting episode. do you have any idea sort of how this decision was made among, of course, ryan murphy but the cast to write in this death? >> well, i think the thing you have to realize is the "glee" cast really is a family. these kids were all unknowns. they were catapulted into stardom. i think a lot of credit goes to ryan to being kind of the godfather, a father figure, to all these actors. i think he's taking his notes from how lea michele is. as we all know, they were also involved in a personal relationship. i think he's taking the temperature on how she's doing and how all the cast members are doing. >> i'm glad you brought that up. especially lea michele. she was dating cory. she's tweeted about cory since his death. she just recently tweeted this. first day of "glee" today and at my first wardrobe fitting for

rachel berry for season five. i've missed her so much. stacy, how in the world. not just lea but the rest of the cast. krista points out, this really is a family. how do they continue on with the show? >> yeah. i think it's really traumatic for all of them. part of what i think is difficult for the ones that were particularly close to him is they were trying to help him. it's got to be hard for them not to beat themselves up wondering what could i have done. that said, there oftentimes is some joy in doing things that you did with the person who you once lost. i always recommend to people if you loved doing something with someone, go do it even though they're gone. they are getting to do that every day. they're getting to sing and dance and act, which i think all of them love to do. so in some ways, they're still continuing to pay tribute to him even though he's gone. >> okay. thank you both very much, stacy kaiser, krista smith. i said toronto hotel room. he passed away in vancouver.

coming up, in one ste hool district had plans to arm some teachers. they trained them. they bought gun ps p now a state attorney general is pulling the plug. you'll not only hear why but you'll hear the suspect's response, next. "and one of the most efficient trucking networks," "with safe, experienced drivers." "we work directly with manufacturers," "eliminating costly markups," "and buy directly from local farmers in every region of the country." "when you see our low prices, remember the wheels turning behind the scenes, delivering for millions of americans, everyday. "dedication: that's the real walmart" these chevys are moving fast. i'll take that malibu. yeah excuse me, the equinox in atlantis blue is mine! i was here first, it's mine. i called about that one, it's mine. mine! mine. it's mine. it's mine. mine. mine. mine. mine. it's mine! no it's not, it's mine! better get going, it's chevy model year-end event. [ male announcer ] the chevy model year-end event.

the 13s are going fast, time to get yours. right now, get this great lease on a 2013 chevy cruse ls for around $149 a month. then you'll love lactose-free lactaid® it's 100% real milk that's easy to digest so you can fully enjoy the dairy you love. lactaid®. for 25 years, easy to digest. easy to love.

♪ [ female announcer ] when your swapportunity comes, take it. ♪ what? what? what? [ female announcer ] yoplait. it is so good. it has been nearly a month since that massacre at an elementary school in newtown, connecticut, took the lives of 26 people. 20 of them little children. as it always does, the national

conversation about what to do about gun violence has all but disappeared. but the tragedy is very much so still resonating, has an impact. in arkansas, for example, one school district's plan to allow teachers and staff to carry weapons to school to protect the kids was just rejected by the state's attorney general. david hopkins, he's the school superintendent at the school district. clarksville, arkansas. he joins me from little rock. also here with me today, tanya mill miller. she's a defense attorney. but will really be talking today as a former federal prosecutor. welcome to both of you. mr. hopkins, let me begin with you to set this whole thing up. i know you all were planning to go ahead with the plan. you've already trained the staff and teacher. how were you planning on arming them? >> right. what we were doing is we were trying to provide a local solution to this issue. our board, we sat down and we tried to devise this plan where we would go through the state, state police department. which they have a board that issues security guard

commissions to licensed security guards. and we put in the paperwork to be a licensed security handler, so to speak, for our guards inside our business, which is our school. and then we had those guards commissioned. we received all the proper paperwork. we had those guards commissioned through the commissioning board which is, again, a division of our state police. and we did all due diligence in trying to ensure that everything we put together met the muster of the law and that we were doing the right thing to try to protect our kids. >> just so i'm crystal clear, tanya you can help me on the legalese here. there is this sort of lit p known law in arkansas, right, when it comes to security in schools. sounds like this school district was trying to -- try to arm the teachers, ala security guards, to protect the kids and it didn't work. >> right. what they were trying to use was a statute in arkansas which basically regulates private security companies and private security officers. there is a board in arkansas that gives licenses and

commissions these organizations to carry guns and to provide security. this statute applies to private entities. the attorney general said school district, not a private entity. it's a public entity. so you can't use that statute for that purpose. >> mr. hopkins, i know you were going through with the training and everything. how did parents react to this? those parents who, i'm sure, were critical of this, what did you tell them? >> well, i mean, initially with the attorney general's opinion, it dropped almost like a bombshell. because we had -- we had talked to that agency that issued that license, and we were not the first school district to receive that. in fact, there was a number of school districts that already hold that license in the state. it's my understanding that this also putting in jeopardy the security programs in several state-funded hospitals also because of this. i know that the discrepancy here is about a private business. but i believe that the language, what they were trying to get across, is that we were not going to allow our guards to go guard the local mcdonald's.

we were setting our guards up privately. >> i understand. so far it is a no-go for this attorney general. we'll follow it through and see if there's any kind of a loophole or not. david hoff kipkins, tanya mille thank you. whitey bulger got rather colorful in telling the judge his decision. that is next. through allergi. try zyrtec® for powerful allergy relief. and zyrtec® is different than claritin® because it starts working faster on the first day you take it. zyrtec® love the air. [ beeping ] ♪ [ male announcer ] we don't just certify our pre-owned vehicles. we inspect, analyze and recondition each one, until it's nothing short of a genuine certified pre-owned... mercedes-benz for the next new owner. ♪ hurry in to your authorized mercedes-benz dealer for 1.99% financing during our certified pre-owned sales event

through september 3rd.

to boston we go. fireworks at the trial of reputed mob boss james whitey bulger. bulger angrily told the judge today he will not take the stand. then he told the judge this trial is a sham. he proceeded to explain why. the wife of a man bulger is accused of killing yelled at him, i'm quoting her, you're a coward, she yelled. bulger's lawyer said earlier today he is prepared to forfeit $822,000 of his assets to her family and another alleged victim's family. the families had won a judgment. this was back in 2009. but an apeoppeals court tossed out on technicality. bulger faces 19 counts of murder as part of racketeering conspiracy. closing arguments set for monday. in a couple of minutes this shocking story about this college professor. the chair of a psychology the president at illinois university has a very secret past.

when he was 15 years of age, he killed his family. he was released. changed his name. got a job without revealing a thing about this crime. and now some folks are calling on him to resign. university leaders, they have an entirely different take. we are talking live to the woman who uncovered this man's history. huh...anybody? julie! hey...guess what day it is?? ah come on, i know you can hear me. mike mike mike mike mike... what day is it mike? ha ha ha ha ha ha! leslie, guess what today is? it's hump day. whoot whoot! ronny, how happy are folks who save hundreds of dollars switching to geico? i'd say happier than a camel on wednesday. hump day!!! yay!! get happy. get geico. fifteen minutes could save you fifteen percent or more. to prove to you that aleve is the better choice for him, he's agreed to give it up. that's today? [ male announcer ] we'll be with him all day as he goes back to taking tylenol. i was okay, but after lunch my knee started to hurt again.

and now i've got to take more pills. ♪ yup. another pill stop. can i get my aleve back yet? ♪ for my pain, i want my aleve. ♪ [ male announcer ] look for the easy-open red arthritis cap. ♪ [announcer] there's no hiding the beneful baked delights.from new heartfuls are made with real bacon... ...and oven-baked to crisp perfection. new heartfuls from beneful baked delights. [ male announcer ] wouldn't it be great if all devices had backup power? the chevrolet volt does. it's ingeniously designed to seamlessly switch from electricity to gas

to extend your driving range. no wonder volt is america's best-selling plug-in. that's american ingenuity to find new roads. right now, get a 2013 chevrolet volt for around $269 per month. i'm bethand i'm michelle. and we own the paper cottage. it's a stationery and gifts store. anything we purchase for the paper cottage goes on our ink card. so you can manage your business expenses and access them online instantly with the game changing app from ink. we didn't get into business to spend time managing receipts, that's why we have ink. we like being in business because we like being creative, we like interacting with people. so you have time to focus on the things you love. ink from chase. so you can.

despite the slow economic recovery, gallup has found that only about a third of american adults prepare a household budget. some economic analysts say that could be making many of us less financially secure and in a way, less free. tom foreman has this week's "american journey." >> four slices. >> reporter: grabbing a pizza on the run is a treat ellen and joe wong enjoy. even with modest incomes, a house in brooklyn and two kids, it's also something they know they can afford. because they are among the relatively rare americans who have put together and follow a household budget. >> i think that i gain from budgeting a sense of security. a sense that i am able to control a little bit of the

uncontrollable future. >> we do try to re-evaluate the budget every now and then. every few months. to make sure we're hitting the targets. >> reporter: that seemingly simple trick can be devilishly hard. in part because economic advisers say so many people find the idea unpleasant. >> just listen to the word budget. it's not a very appealing word, is it? >> reporter: yet amanda steinberg who started dai dailyworth.com said a good budget does not have to account for every penny. people just need to make sure big important items such as household expenses, insurance and savings are covered. and once they are, the budgeter can confidently spent money on things that he or she simply wants. >> oftentimes that means we're going to create a life that turns into a hampster wheel. because it's so expensive and hard to maintain. so that if you create a budget you have some visibility into what your life should cost so you have the freedom to spend money and you're not staying up late at night wondering how you're going to pay the bills. >> reporter: gallup found

intriguing details. wealthier people and conservatives are slightly more likely to track spending and savings. those with lower incomes and liberals are slightly less likely. even those who do budget admit it is hard to start. >> thank daunting. >> reporter: but the reward is peace of mind. and guilt free pizza, too. and guilt free pizza, too. tom foreman, cnn. -- captions by vitac -- www.vitac.com top of the hour. i'm brooke baldwin. we begin, breaking news. brand-new information on world wild travel alerts issued today by the state department and specifically focused on the middle east. cnn has learned the u.s. now has information suggesting al qaeda in yemen is about to do something. i have chris lawrence standing by for us. also dana bash on capitol hill. where lawmakers, i know, have been briefed. and national security analyst peter bergen on the phone with us. chris, let me just start with you. we have three sources. i have the memo here from the good folks with us, cnn's

pentagon unit. also state department. they are saying that this terrorist group is in the final stages of preparation for some sort of operation. what more can you tell us about that? >> well, it's something that they have been keeping an eye on for the past several weeks, brooke, that this -- that there was a growing threat from the al qaeda affiliate based in yemen. al qaeda in the arabian peninsula. just in the last few days, they picked up new intelligence that suggested that a potential attack is in its final stages. that is what sort of spurred these recent moves by the obama administration not only to close the number of embassies that it did, but then today to also issue that worldwide travel alert. but basically the more and more we hear from sources, the more everything seems to point to yemen as the source of origin. >> and as this note says, things seem to have ramped up in the last couple of days with the approach of the end of ramadan. dana, to you on the hill.

i know members of congress, they are heading out of town for multiple weeks. they're being briefed. they are obviously taking this quite seriously. >> they are. since you and i spoke last hour, brooke, i've spoken to two additional sources. one from each party who have been briefed. both say they absolutely think the administration is doing the right thing. that this is an entirely appropriate response and reaction based on the threat that they know is out there. the one thing they say, though, is, you know, chris lawrence and our other colleagues, their sources are saying all signs are pointing to yemen. but they also say that they are seeing chatter that shows that this could be much more broad than that. not just in terms of the source of potential terrorists, but also the terror attack. so that is why the state department put this global travel warning out there. the other thing that may be kind of obvious, but i think it's worth underscoring, because one of the sources mentioned this to me, that is that whenever the united states does this kind of thing, puts out there that there

is a threat, they know that they're doing that at risk. they know they're not just putting people at risk, they're risking the sources and methods that gave them this information. they could send potential terrorists underground. the fact they're doing this in such an aggressive way really gives a sense of how significant they think this threat is. >> it's a great point to mention. peter bergen, terrorism analyst on the phone with me. again, just to remind our viewers, when we talk yemen, when we think al qaeda in the arabian peninsula we think of that thwarted cargo plane plot. the underwear bomber. the shoe bomber. hearing all this coming to light today, peter, what do you make of all of it? >> brooke, i think one thing that's important to note is the date that all these 21 embassies and consulates are being closed on sunday also happens to be the 27th day of ramadan, which is a very sacred day for most muslims. all muslims, indeed. it's also particularly auspicious day to die if you're an al qaeda militant.

we've seen in the past al qaeda in yemen planning an attack on a "u.s.s. sullivan," major american warship on the night of power back in 2000. in the year 2000 fell on january 3rd. we also when bin laden was thinking he was going to die at the battle at tora bora in 2001 he actually signed his will on the night of power. if you sort of buy into the al qaeda ideology it's a particularly auspicious day to do an attack. i don't think it's a coincidence that all these embassies and facilities are being closed on that day. i think another point here is i can't recall a time when you've had embassies and consulates closed in 18 countries. it's unprecedented. yes, there may be indications of al qaeda in yemen. as you indicated, there are also perhaps worries in other countries. don't forget in two of the countries where embassies and facilities are being closed,

we've had major prison breaks by members of al qaeda within the last several days. for instance, in iraq several hundred al qaeda militants were sprung from a jail outside baghdad. we've also seen a similar very large prison break in benghazi, libya, where 1,000 prisoners escaped on saturday. >> peter bergen, dana bash and chris lawrence. thank you all very much. coming up next, a professor hiding a dark secret from his school and his students. dr. james st. james is the chair of a psychology department as a private university. 46 years ago he killed his sisters and his parents. he was released. changed his name. was hired at this university without ever revealing his criminal past. now an investigative journalist put the pieces together and tracked him down. we'll talk to her live, next. 's four course seafood feast. choose your soup, salad, entree, plus dessert all just $14.99. come into red lobster, and sea food differently. right now, go to redlobster.com

for $10 off 2 select entrees. good monday through thursday. folks have suffered from frequent heartburn. but getting heartburn and then treating day after day is a thing of the past. block the acid with prilosec otc, and don't get heartburn in the first place. [ male announcer ] one pill each morning. 24 hours. zero heartburn.

saving time by booking an appointment online, even smarter. online scheduling. available now at meineke.com. let me take you back to 1967. a 15-year-old texas boy sniffed some glue, loaded a rifle, walked into his parents' living room, shot his father twice in the chest. walked to the next room. shot his sister in the face. then as she awoke to the gunshots that killed her family,

that 15-year-old put the final fatal bullet in his mother's head. james wolcott admitted he planned the killings the week before. he was found not guilty by reason of insanity. so he spent some time in a psychiatrist hospital. was then released. today that 15-year-old boy who killed his family is a professor at millikin university in decater, illinois. he is teaching, of all things, psychology. he has changed his name. but his true identity revealed after this two-year investigation by the georgetown advocate newspaper. joining me now, ann marie gardner, senior writer at the georgetown advocate in texas. ann marie, congratulations on the piece. it's incredible that you uncovered all that you did, right? >> thank you, brooke. >> let me just begin with here you are. you know about this man's past. you are sitting across the table from him and said, i know your other name. what did he say? >> he didn't say much. he didn't really want to talk about his past. a lot of his responses were that

he didn't -- he didn't want to think a ibout asked him about t change he said he just didn't want to deal with it. it was something he didn't want to think about. i can't presume what his reasons actually were. >> yeah. >> however, what he did say was that, you know, i just don't want to deal with that. i guess changing his name was a way of moving on. >> back to 1967. he confessed that night. you quote in your piece, this texas ranger asks him did you kill your parents, son. with only a brief hesitation and sigh replies, yes, sir. at the time, then he was 16, determined competent to stand trial. defense attorney takes him on. what did doctors say, though, about his mental state? >> the doctors at the time, they all evaluated him over a period of about two months. most of them agreed that he was suffering from paranoid schizophrenia. some of them actually indicated the glue sniffing could have triggered a delusional episode. james did mention in some of the court documents he was suffering from delusions of persecution. as the article mentions that he believed his family was out to

get him. he felt like it was a self-defense move. >> so as we mentioned, he -- ultimately this goes to trial. he goes to this hospital. deemed sane. connect the dots for me, ann marie. how does he go from being this mental patient and killing his family to being a pretty well respected psychology chair of a department? >> sure. when he was at rus k, rusk had a partnership program with steven f. austin university in texas. we presume he took some courses. he was releasted in 1974. in 1976 he received a bachelor's degree as james wolcott. we found he received a master's degree as james st. james in 1980 in psychology. that was also at a texas university. it was at that point that he -- when he decided to take on a doctor ral program. he went to the university of illinois at champaign. he told me that was one of the top half dozen colleges in the world for the kind of program that he wanted to be involved

with. so he continued his course work there. he did very well. he began student teaching at millikin in 1986. >> let me jump in. read millikin's statement. millikin university has only recently been made aware of dr. st. james' past. given the traumatic experiences of his childhood dr. st. james' efforts to rebuild his life and obtain a successful career have been remarkable. the university expects dr. st. james to teach at millikin in fall. in 30 seconds tell me what the mayor of the town is saying. >> the mayor of the town says for the good of the school and the town, especially, because it is a small town that seems to be focused on the school activities, the mayor asked him to resign just for the betterment of the town or just because he's an honorable man and he believes that's what he should do. >> ann marie gardner. georgetown advocate. thank you so much. what a story you have uncovered. coming up, a remarkable story of a surgeon living out

his father's dying wish. you really couldn't have come at a better time. these chevys are moving fast. i'll take that malibu. yeah excuse me, the equinox in atlantis blue is mine! i was here first, it's mine. i called about that one, it's mine. mine! mine. it's mine. it's mine. mine. mine. mine. mine. it's mine! no it's not, it's mine! better get going, it's chevy model year-end event. [ male announcer ] the chevy model year-end event. the 13s are going fast, time to get yours. right now, get this great lease on a 2013 chevy cruse ls for around $149 a month. that's a good thing, but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement plans, they help save you up to thousands in out-of-pocket costs. call today to request a free decision guide. with these types of plans, you'll be able to visit

any doctor or hospital that accepts medicare patients... plus, there are no networks, and you'll never need a referral to see a specialist. join the millions who have already enrolled in the only medicare supplement insurance plans endorsed by aarp... and provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. with all the good years ahead, look for the experience and commitment to go the distance with you. call now to request your free decision guide.

you have to hear this story.

a surgeon is living out his father's dying wish. he is devoting his time to providing medical care to his native country of cameroon. here's this week's cnn hero. >> for a country like mine, people like to drink, to dance, to enjoy their life. but with poverty, they cannot enjoy their life. to go to the village is a pleasure if i can help two or three people, that would be great. i saw my father ill for 23 years. before he passed away he asked me, do you see how people suffer to see a doctor? my name is george bwelle. i bring free surgery and health services to people. beating the drums to say thanks to come. they can live. 60 kilometers around and they

are coming on foot. we are starting by doing consultation. we will do the examines to see the possibilities for this mass. and in the afternoon we have a list of patients that we are going to operate. we need our generator because in the village there is no light. we start doing operations till sunday morning. we are doing our around 40 surgeal procedures for free. >> this will change my future. >> we leave our address to all the patients. that if there's any problem, they can come back to us. i help people and they are happy. i'm doing that to give them opportunity to restart. >> and you can learn more. go to cnnheroes.com to nominate someone you know who's making a difference and deserves to be recognized. ♪

(woman) this place has got really good chocolate shakes. (growls) (man) that's a good look for you. (woman) that was fun. (man) yeah. (man) let me help you out with the.. (woman)...oh no, i got it. (man) you sure? (woman) just pop the trunk. (man vo) i may not know where the road will lead, but... i'm sure my subaru will get me there. (announcer) love. it's what makes a subaru, a subaru. here we honor the proud accomplishments of our students and alums. people like, maria salazar, an executive director at american red cross. or garlin smith, video account director at yahoo. and for every garlin, thousands more are hired by hundreds of top companies. each expanding the influence of our proud university of phoenix network. that's right, university of phoenix.

enroll now. we've got a frame waiting for you.

up next, a cnn special report. it's a yearlong investigation that will quite frankly stun you. this is a look into fraud and abuse involving a rehab program. and cnn knocks down the doors. >> reporter: grew grdrew griffi cnn. like to ask you some questions about your business if i could. >> i really don't have time right now. >> reporter: you can explain how can a guy with a record like you be operating a drug rehab clinic? so then the little tiny chipmunks go all the way up... ♪ [ female announcer ] when your swapportunity comes,

take it. ♪ what? what? what? [ female announcer ] yoplait. it is so good. [ beeping ] ♪ [ male announcer ] we don't just certify our pre-owned vehicles. we inspect, analyze and recondition each one, until it's nothing short of a genuine certified pre-owned... mercedes-benz for the next new owner. ♪ hurry in to your authorized mercedes-benz dealer for 1.99% financing during our certified pre-owned sales event through september 3rd.

i'm brooke baldwin. for the next 30 minutes you will see a special cnn investigation into a state sponsored taxpayer funded rehab program in

california. it gives an eye opening look at fraud and abuse. the program looks like a noble cause on paper. it's a privately run rehab clinic. they get medicaid money for billing for each addict money who needs counsels. we have found a system riddled with fraud and poor oversight. from billing for phony patients to allowing convicted felons to rub rehab centers. because it's happening in california, folks, this is big money. state and federal taxpayers are on the hook for tens of millions of dollars each and every wreer. investigative correspondent drew griffin reports. >> reporter: mr. oluno, drew griffin with cnn. how are you? george oluno has run a taxpayer funded drug rehab business in southern california for the past six years. which is surprising.

because for the last 11 years he's been on a list of people banned from billing medicaid. convicted of student loan fraud. george oluno should never have been allowed to even open this clinic called g.b. medical. i'm asking you a few questions, sir, about the drug rehab business. i want to ask you about -- you seem to be at the center of fraud allegations here. >> no, no, no, no. >> reporter: have you been faking signatures on to sheets of paper and billing the state for the money? guess what else? oluno is facing felony criminal charges for ripping off the state. allegedly getting paid by taxpayers to rehab drug abusers who weren't even there. excuse me, sir. how can you bill the state for clients that don't exist? mr. oluno? mr. oluno? just one second, sir? we never saw oluno again.

oluno's drug rehab business here in southern california has been part of the largest medicaid program in the nation. paid for with federal and state dollars. a one-year investigation by cnn and the center for investigative reporting found the rehab portion of that program, called trug medical is rife with fraud. has operators who bill the government for made up clients. and often get away with it. joy jarfors saw plenty of fraud in the nine years she spent working as a supervisor over drug medical. >> i believe the word got out that there was easy money to be made in the outpatient drug free system. >> reporter: how bad is it? >> it's bad. it was real bad. i left state service about three years ago. and we would have one provider that would bill for over $1

million in one year that we believe was 100% questionable billing. >> reporter: and that one provider was no isolated instance. over and over we found examples of fraud. not hidden fraud. this was happening in plain sight. for example, george oluno. 19-year-old darshay miles was just 14 when she went to his rehab center. along with her mother and three sisters. it's against the law to pay drug rehab clients. but that apparently didn't stop oluno. miles said he paid her and other clients $5 each time they signed in for group counseling. all so he could then charge medical between $28 and $61 per signature. >> at first i didn't know it was illegal. i didn't know nothing about -- i thought it was just a thing. you supposed to get paid to go in there. until people was like, oh, george was like you got to -- don't speak out loud about the

money. >> reporter: what did she do with the $5 given to her by the drug rehab center? she bought drugs. >> we was going just to get the money to buy weed. my whole thing was like, y'all was paying us to get high. >> reporter: the day after our interview, the state charged iluno and three of his employees at g.b. medical with grand sheft in connection with more than 2,000 phony bills for rehab dating back to 2009. he's pled not guilty. records show your tax dollars still paid him. even after he was arrested and out on bail. iluno's attorney blamed the billing practices on counselors and employees who were not well supervised. the attorney says iluno was a certified counselor himself who was allowed to bill medicaid. despite that, the clinic voluntarily shut down july 1st. without explanation. cnn and the center for

investigative reporting reviewed thousands of records in california's drug medi-cal program. including program audits. we analyzed patient billings. even watched clinics under cover to see who was getting treatment and who wasn't. the result? we found that in the last two fiscal years, half of the nearly $186 million spent for drug medi-cal, about $94 million, went to clinics that have shown questionable billing practices or signs of fraud. case in point, the man with the cigar. a convicted felon named alexander ferdman. >> ferdman was the organizer. >> marble vogt was the lead investigator who investigated him for running a texas based krim syndicate that staged car crashes, ripping off big insurance companies. >> he lists his occupation as a -- >> driver of an ice cream truck.

>> reporter: ferdman pled guilty to organized crime and was sentenced to seven years in a texas prison. he served just one year. was let out early for good behavior. and ended up in california. even though felons are barred from running drug medi-cal centers, ferdman soon opened a rehappen clinic called able family support. taxpayer funded drug rehab has been easy money for alexander ferdman. despite his organized crime conviction in texas, his california drug medi-cal contract is now worth about $2 million a year. his salary? $180,000. even after a 2011 review by los angeles county found evidence of what it considers to be fraudulent practices at his business, ferdman was allowed to expand. drew griffin with cnn. how you doing? i'd like to ask you some questions about your business if i could. >> i really don't have time right now. >> reporter: you can explain how

can a guy with a record like you be operating a drug rehab clinic here in california? you've been convicted of a major insurance car crash scheme in texas? >> i was convicted, but it's not what it seems. that's first of all. second, whatever happened, i don't know, 15 years ago, what relevance does it have to today. >> reporter: does the county know about your criminal record? >> they probably do. i don't know. >> reporter: what happened in texas, ferdman told us, should stay in texas. >> because i was facing 99 years. i chose to, you know, pick a much smaller sentence. i could have a much worse. but there was no fraud and there was no record of it in any way. it's a very long story. >> reporter: how could you say that? that was a huge case in austin, texas. statewide, actually. >> yeah. that's what they tried to build it. but -- that's why they pursued

it. but it wasn't what it seems. and what they said it was. >> reporter: could you tell me real quickly how you left texas and decided to come here and fwet into this business? how easy or hard was that? >> i don't want to talk about it right now. >> reporter: with such apparent widespread fraud in the program, former supervisor joy jarfur says it's not just taxpayers who are being cheated. >> i'm not a -- you know, the employee anymore that has to look at this every day. but i'm a taxpayer that knows that this is going on. and it angers me. and there's story after story after story about medicaid dollars being cut from people who need the services. >> drew and his team found even more evidence of mismanagement and fraud. coming up next, how some clinics got clients in the door. you will be amazed. i'm gonna have to ask you to power down your little word game. i think your friends will understand. oh...no, it's actually my geico app...see? ...i just uh paid my bill.

did you really? from the plane? yeah, i can manage my policy, get roadside assistance, pretty much access geico 24/7. sounds a little too good to be true sir. i'll believe that when pigs fly. ok, did she seriously just say that? geico. just a click away with our free mobile app.

you just saw how the nation's largest medicaid program is riddled with fraud. now the state of california is cracking down because of an investigation by cnn and the center for investigative reporting. in part two we uncover how teens who live in group homes are used to milking the system. once again, here's our investigative correspondent, drew griffin. >> reporter: outside this drug rehab center in southern california, teenagers from a fwrup ho group home are dropped off. according to former employees of the pomona alcohol and drug

recovery center, many of the teens they saw come here over the years didn't have substance abuse problems at all. a one-year investigation by cnn and the center for investigative reporting found that drug medi-cal program in california which costs taxpayers more than half a billion dollars over the last six fiscal years is rife with fraud and plagued with weak government oversite. victoria byer says she was driven in a van every week with other teens while living in a group home to so cal health services in river swside, california. >> we used to do drug tests. we used to sit in these classes that would teach us not to do ecstasy or not to do this drug or whatever. >> reporter: but byeys, now 22 years old, thought it was strange because she didn't have a drug problem. >> i told them why should -- why should i be here? i have no drug issue. but i had to go because all the

other girls had to go. they couldn't leave me at the house by myself. >> reporter: we obtained these documents showing where she signed her name. that's a requirement allowing rehab centers to bill the state. and signatures meant money. the more signatures, the more the medi-cal system reimbursed the clinic. michael murgich remembers the trips to so cal health services as well. murgich now in college says he also was driven in a van each week with other teens from a different group home. you've never abused alcohol or prescription drugs or illicit drugs? >> not at all. >> reporter: all the time you spent there for three years, three years, was a waste of your time and a waste of taxpayers' money? >> yes. definitely. >> reporter: that doesn't surprise tamara sheerer. a former manager at so cal in pomona with the same operator. she estimated that 30% of the teens didn't have a drug or alcohol issue. so counselors just made them up.

>> it took an audit for me to know how deep it was. how deep of fraud was going on there. >> reporter: other whistle blowers came forward and claimed that so cal was committing drug medi-cal fraud by labeling teens with fake addictions. riverside county officials told us they didn't have an easy way to prove so cal was making up addictions. but the county pulled the clinic's funding anyway because so many of its clients were dropping out. that forced so cal to shut down. but the other clinic in los angeles county accused of similar practices remains open. just last year a county report on pomona alcohol and drug recovery center found significant and serious deficiencies in the program. the operator of both clinics is a man named tim ajindu who told the county his business is a pillar in our community.

the fraud allegations? they came from disgruntled, fired ex-employees. tim ajindu wouldn't tell us anything. mr. ajindu, drew griffin with cnn. >> who are you? >> i just told you. my name is drew griffin with cnn. wait a minute now. your former employees say you are billing for the county services you're not providing, sir. ajindu soon left without talking to us. mr. ajindu, if you have nothing to hide, why you taking off? we found case after case of rehab centers like pomona with a history of problems that still are allowed to keep billing the state. tamara askew is a former counselor at pride health services who told us she was told to bill for clients she didn't actually see. did you have a client list? >> i had a client list. when i first got there, they gave me about 20 folders. 20 folders of clients that they

had. >> reporter: did you ever account for the 20 cases that you had in your folders? >> nope. i never could. because -- >> reporter: you couldn't find them? >> some were in jail. one was dead. >> reporter: wait a minute. >> one was dead. >> reporter: still a client of this? >> still listed as a client. >> reporter: she says she confronted the operator of pride. >> reporter: i told godfrey, i said, look. i don't know how you want me to bill for clients i don't see or have. and he basically in a nutshell told me how you think these lights are going to get paid. >> reporter: she says he then fired her. would you describe what you've been through as anything more than just throwing away taxpayers' money? >> it is. yeah. it's throwing away taxpayers' money. >> reporter: that was in 2009. regulators have found severe deficiencies at pride health services from 2005 to 2011.

including evidence of ghost clients. two years ago, the county uncovered what appeared to be fraudulent documentation used for billing. a state auditor urged pride be shut down. not only did pride stay open, it got even more medi-cal money. more than $1 million in a year. in its most recent investigation brought on by yet another employee accusing pride of billing for ghost clients, county investigators found the allegations unsubstantiated. they couldn't prove it. but they did find the operation extremely troubling. t discovering missing paperwork, signed and dated medical waivers with no client information and missing treatment plans. despite that poor review, pride is staying open. if the county investigators couldn't find evidence of ghost patients, maybe they should do what we did. go there. on a wednesday.

when they are closed for treatment. but apparently still billing. we saw no one entering this center on wednesdays. so we went in ourselves. with hidden cameras. >> do you have rehab going on today? >> mondays, tuesdays, thursdays, fridays. >> mondays, tuesdays, thursdays and fridays. not wednesdays? >> there's no group on wednesdays. today is wednesday. there's no group today. >> no. >> reporter: even though it's closed for rehab, pride has been billing for clients on wednesdays. as these records show. including 60 on the day we went in with hidden cameras and found no clients there. we went looking for the director, seen in this police mug shot, for an unrelated arrest in 2003. hi, drew griffin with cnn. how you doing? >> how are you doing?

>> reporter: is godfrey in? >> just a second. >> reporter: okay. >> he's actually not here at the moment. >> pride counselor markita jones denied any wrong doing. >> reporter: we wanted to ask about an investigation we're doing about gohost patients, people signing names, faking signatures and billing the state and county for treatment that's not happening. do you know anything about that? >> no, i don't. because that's not going on at this -- at this office. >> reporter: godfrey has never asked you to sign a form that says all these patients came here and they didn't go here? >> no, sir, he did not. >> reporter: you do the counseling yourself? >> yes, i do. i actually see live clients. >> reporter: as we waited for godfrey to show up, employees inside called police. they told us the boss was coming. we've been camped out here waiting for them to show up. then abruptly shut down for the day. did he call back and say he's not coming? we never heard from anyone at

pride health services again. >> how about that? what's the state's reaction to all of this? wait until you see what happened when drew griffin tried to find out.

welcome back. we just showed you how taxpayers being ripped off by several rehab clinics. for weeks cnn's investigative

correspondent drew griffin tried to get answers from officials. but as you saw no one would talk on camera. instead they couldn't get away from the camera and from grdrew fast enough. they finally did sit down with us. now there's a major crackdown on fraud in the state. but watch what had to happen first. once again, drew griffin. >> reporter: george iluno shouldn't even be in california's drug rehab business. you seem to be at the center of fraud allegations. he's been banned from medicaid since 2002. it hasn't stopped him from billing the state of california. tim ajindu is accused of fraud at his drug rehab clinic. it hasn't stopped him from billing the state of california either. mr. ajindu. drew griffin from cnn. >> and who are you? >> reporter: i just told you my name is drew griffin with cnn. your former employees say you are billing for the county services you're not providing, sir. then there's this man.

alexander ferdman. convicted for running an organized crime ring in texas that ripped off insurance companies. it hasn't stopped him from coming to california, setting up a drug rehab clinic, and billing taxpayers. even though felons are barred from running drug medi-cal centers. mr. ferdman, how can a guy with a record like you be operating a drug rehab clinic here in kra rah? you've been convicted of a major insurance car crash scheme in texas. >> i was convicted. but it's not what it seems. >> reporter: in the last two fiscal years, taxpayers spent nearly $186 million. supposedly treating drug and alcohol abuse patients in california. our investigation, with the center for investigative reporting, found half of that money, or about $94 million, has gone to clinics that have shown questionable billing practices or signs of fraud. joy jarfurs, former drug

medi-cal supervisor, says she complained to the state for years about all the obvious fraud. we found one person did. people who said they didn't need this kind of treatment. clinics closed on a certain day. billing for that certain day. none of this surprises you. >> not at all. we found all of those things. >> cnn has been asking for an explanation for more than a month now from the state of california and more than a month we have gotten nowhere. >> our on camera interview was decli declined. >> can i ask you why? >> that wasn't my decision. >> reporter: will you make sure

to provide a response as to why this widespread fraud is allowed to continue? >> after weeks of calling the secretary of health and human services and getting no for an answer, we decided to ask for a response in person. >> reporter: secretary, drew griffin with cnn. we've been trying to reach you to talk about the widespread fraud. but we're told neither you or anyone with the state of california will talk to us about it. secretary, do you know alex ferdman a convicted felony who has run one of these clinics for years despite complaints registered with the department

with him? he's been billing. i'm wondering if there is anybody in the state of california concerned about fraud. >> the state of california takes fraud very seriously and there are many investigations that are underway. all allegations are given full and fair consideration. you have caught me running because i am late for a meeting. >> reporter: i wonder if you would just do one thing and ask toby douglas to sit down and talk to us. >> if you give us a little bit of time -- >> reporter: we've been giving you about a month. >> information has been provided. answers have been provided. we have a very -- >> reporter: i understand. >> we have a very extensive and fraud investigation department in medi-cal that's one of the

best in country. >> reporter: are you concerned that there is massive fraud because that's what we're finding out? can you have toby douglas sit down and talk to us about our specific questions? >> would you get security for me? >> our confrontational exchange may have been a major trigger for a major statewide crack down. 16 drug medi-cal centers are under investigation and temporarily suspended. just this week, california announced that figure has now jumped to 29 rehab centers. last week, california relented to cnn's interview requests. karen johnson tried to explain why it has taken so long. >> we are going to review all of

the drug medi-cal providers in the state of california. we are also going to require that they reenroll in our program so that they become recertified. >> based on that answer, i think it is fair to say the oversight in california has been seriously lacking. >> that's not a fair observation. there are other complaints. those complaints were investigated. that is going to be part of the ongoing active investigation. as i mentioned, we are looking at all of the cases and what is emerging is a much larger bigger picture that we need to address. >> reporter: a bigger picture of fraud? >> a bigger picture of problems.

>> reporter: only now two weeks before these two national news organizations are about to release a major study of what we found was extensive fraud is the state of california doing this extensive review. coincidence? >> it's not a fair charact characterization. >> there are bad people who want to scam this program. we are going to do everything possible to investigate and deploy the necessary resources to improve and enhance our enforcement effort. >> you feel the state of california has done enough. >> obviously what has happened, clearly there's more that needs to be done. >> here he is, drew griffin. we're going to debrief.

there is major action taking place in california government. our chat after the break. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. this ...is going to be big. it's time to build a better enterprise. together.

humans. we are beautifully imperfect creatures living in an imperfect world. that's why liberty mutual insurance has your back, offering exclusive products like optional better car replacement, where if your car is totaled, we give you the money to buy one a model year newer. call... and ask an insurance expert about all our benefits today,

like our 24/7 support and service, because at liberty mutual insurance, we believe our customers do their best out there in the world, so we do everything we can to be there for them when they need us. plus, you could save hundreds when you switch, up to $423. call... today. liberty mutual insurance -- responsibility. what's your policy? we just showed you the last half our the fraud into taxpayer refund programs in california. the state is now taking action. when you start walking toward people, they walk in the other direction. you have that effect on people. >> yeah, i know. personally too.

no, it was interesting. like we have always said, if there's nothing to hide, people stop and talk to you. >> what's happening in the state now? >> the state has finally acted. 46 of these companies have had their state funding cutoff until they can be fully reviewed. we do know they are going to require every one of these clinics are going to repaapply for the ability to bill because of this investigation. it should at least cover the felonies running programs. >> again, this was big money, california, tens of millions. >> and the take away here for the rest of us, federal taxpayers are send agoiing a lo

money to california. there's going to be state hearings on this et cetera. >> we will watch for the follow-up with you. that's it for me. to jake tapper, the lead. the u.s. government warning of an attack in the final stages of planning by al qaeda in the arab yan peninsula. if you're an american overseas, you could be a target. the world lead. 21 u.s. embassies closing this weekend. the state department issuing a world wide travel alert over an al qaeda linked terror threat. the national lead, they think george zimmerman got away with murdering their son. the parents of trayvon martin