emergency exits were blocked, the fire alarms switched off. and staff nowhere to be seen. 64 people were killed. most of the victims were children. 200 animals at a petting zoo were killed. there is no word on cause tonight. in sacramento, a grandmother choked back tears and asked why the police didn't use a taser instead of shooting her unarmed grandson to death eight nights ago. 22-year-old stephon clark, accuse of breaking windows, officer fired 20 rounds later saying they thought he had a gun. >> show me your hands. gun, gun, gun. >> i want justice for stephon clark. please, give us justice. >> we must say loud and clear

that what happened to stephon clark was plain wrong. it's wrong. because a 22-year-old man should not die in that way. the shooting sparked protests, clark's funeral its thursday. as many americans struggle to pay rising health insurance premiums, a cbs news investigation has uncovered a scheme that could make those premiums go even higher. it raises costs for insurers who could then pass the cost and increase along to you. here is jim axelrod tonight. >> what we are frying to accomplish, bring big city health care to little town usa. >> reporter: george perez ceo of empower group, miami based health care company that claims to specialize in saving rural hospitals. >> we have gone to the towns and basically some of them we bought out of bankruptcy or they were just days before closing. but one of the hospitals, perez promised to save in the florida

panhandle its now shut down and boarded up. >> the hospital was in significant financial trouble. in april 2015. >> feels like the shining in here. >> attorney michelle jordan represents the hospital which was days away from closing when perez and his partners swooped in. >> were you thinking to your stefl what self what is it in for them? >> yes. >> perez and associates agreed to pay off the hospital debt and manage for a fee of $30,000 a month. jordan begged the board not to sign. >> but the board was desperate. >> they wanted their hospital open. >> these records were how the hospital submit for billing. >> the hospital stayed open, thanks in part to deals perez made with drug testing laboratories all over the country. >> what was attractive about this 25 bed facility in rural florida? >> the reimbursement rates. >> to keep rural homes in business, insurance companies

reimburse them for tests at much hyperrates. a lab in dallas might get $200 for a urine screen. the same test, billed through rural hospital, more than $1,000. which explains why george perez struck deals with dozens of labs around the country to pass their testing through graceville and their billing along with it. >> i can tell you what was funneled through the facility. and that was, over $120 million in about 14 months. >> what you are describing, sound fraudulent? >> it sound too good to be true. >> the board finally came to the same conclusion and stopped the lab program. but that created new problems. on one side, dozens of labs claim the hospital owed them millions. on the other, the insurance companies said they had been overbilled by millions. squeezed in the middle, the hospital closed its doors after more than half a century. >> i could have saved it if i

would have been left. i wasn't, that wasn't my, my hospital it wasn't my contract. i didn't own it. i just went in there to do the billing and to provide technology. >> perez minimized the role and we showed him lab contracts he signed. >> i want to show you the documents that i have. >> right. >> the labs. >> no, this is all forged? >> that says, george perez owner. >> that's not even my signature. >> who forged this? >> i would love to get a copy of all this. i have no idea. i was never the owner. you can check in the state records. this is all federal. >> you never made any kind of arrangement with labs? >> no. >> according to bankruptcy filings, the hospital is trying to recover $3 million it claims perez was wired fraudulently. and graceville florida is now a community with no emergency

health care. >> if somebody needed some attention, where would they have to go? >> they're going to have to drive, 20, 30 miles. >> 20, 30 miles. >> what if you are having a heart attack. >> better start praying. >> remarkable to hear about. george perez owns a dozen hospitals. anier use there? >> we do know, blue cross blue shield in oklahoma will no longer reimburse at four hospitals he co-owns due to questionable billing practices with the lab program. in missouri a hospital he owns was audited. turns up $92 million generated by a lab program there, in the last six months, an increase of more than 2300% in our interview perez said he had

federal judge refused to declare a mistrial in the case of the widow of the pulse nightclub shooter following a revelation in court about the shooter's father. here is david >> if i will let you know. >> after the pulse massacre, an outspoken figure condemning his son's actions not shying from the spotlight. his name is in the headlines again because of the trial of his daughter-in-law accused of knowing what her husband was

plotting. a mass shooting at the pulse nightclub. omar matine killed 49 people. it was revealed he has been an fbi informant between january 2005 and june 2016. the month the shooting happened. this disclosure raises these questions -- what was he doing for the fbi? and did he know anything about what his son had planned? we talked to him in his home, shortly after the nightclub shooting. >> what he did was, it was act of terrorism. >> you believe your son was a terrorist? >> no. what he did was. >> he pledged allegiance to isis. was your son a follower of isis? >> i wasn't aware of what he did. i wish i said that he was alive. i would ask him why did he do that? >> this afternoon in orlando, a judge denied the motion for a mistrial. over the revelation that her father-in-law was an fbi informant. but, the questions remain. certainly the fbi is going to have to answer questions about

their source handling in this case. and whether the father might have known or should have known. and so, the days ahead should be interesting ones. >> today we reached out to the fbi to find out more about the informant relationship they had with him. but they never responded. jeff. >> david begnaud. thank you. still ahead here tonight. possible answer in the miss tear yes dea -- mysterious deaths of an iowa family vacationing in

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a gas like in a water heater suspected of killing a vacationing family from iowa. kevin and amy sharp and two kids were found dead in their rented condo last week in the riviera maya region. as a child in topeka, kansas, linda brown at center of a landmark supreme court case. brown v board of education. the court ruled in 1954, separate schools for blacks and whites inherently unequal. linda brown died yesterday. she was 76 years old. up next here tonight. she is praying for victory. so far her prayers have been answered.

march madness, down to the final four.

villanova/kansas. loyola of sthchicago/michigan. >> one time-out. they've don't take it. >> at 98 sister jean's faith is undiminished in loyola basketball. >> i knew it was going in. >> you knew it was going in. >> i knew it was going in. >> the run to the final four almost as improbable as the the star turn of the team's passion that chaplain. >> you are a huge celebrity? >> well that's what everybody tells me. >> you are in the bobblehead hall of fame. 5,000 sister jean bobble heads sold in 48 hours. hall of fame record with all of the t-shirts and socks now bearing her likeness. >> i should tell them to send me a pair. >> here comes player of the year. rises. and he got it! >> whoo! >> do you think god is on

loyola's side? >> right, now, yes. >> tough for michigan if god is on the side. a >> 100-year-old want to be the nun is done. >> it has been a good ride. but it's over saturday. go blue! >> the funny thing is even sister jean didn't pick the ramblers to get this far. >> i thought sweet 16 wrud be fine. for the first time on the dance floor, that would be remarkable. >> we'll just keep going. >> she will be with her team for the final four this weekend. she has plenty of faith in the outcome. >> dean reynolds, cbs news, chicago. that is the cbs "overnight news" for this tuesday. for some of you the news continues. for others check back later for the morning news and cbs this morning. from the broadcast center in new york city, i'm jeff glor.

hi, welcome to the joifr. i'm demarco more gachblt the plot thickens in the case of the president and the porn star. one day after stormy daniels detailed her alleged relationship. a white house spokesperson insisted it never happened. ms. daniels told her story on 60 minutes which true 22 million viewers. paula reid has a response. >> the president clearly, strongly denied. >> the white house pushed back on adult film star, stormy daniels claim on 60 min shuts had an affair with the president. this morning the president tweet aid general reference to fact news. but did not mention daniels by name. >> he is like, wow, you, you are

special. you remind me of my daughter. >> daniels was introduced to mr. trump at a celebrity golf tournament in lake tahoe in 2006, she says mr. trump invited her to dinner in los angeles. she claims they had sex though she wasn't attracted to him. >> dpid you want to have sex with him? >> no. but i didn't say no. i am not a victim. i'm not. i was in a parking lot. going to a fitness class with my infant daughter. a guy walked up on me. said to me leave trump alone. forget the story. then he leaned around looked at my daughter and said, a beautiful little girl, a shame if something happened to her mom. theen was gone. >> you take it as the a direct threat. >> absolutely. >> dan yemz says her fear convince herd to accept a $130,000 payout for silence from

president trump's attorney michael cohen, 11 days before the 2016 presidential election. last night a lawyer for cohen sent daniels a cease and deep cyst order denying his client sent a thug to threaten daniels. cohen also claims daniel faces millions in damages for breaching their nondisclosure agreement. but daniels' lawyer, says, the agreement isn't valid in part because the it was never signed by mr. trump. today he filed new court papers accusing cohen of defaming daniels. >> this is a man who has a history of thuggish behavior. using intimidation tactics. and trying to step on little people. >> the timing of daniel's hush payment could expose cohen and the trump campaign to possible legal jeopardy. cbs news legal analyst -- ricki kleeman. >> why would they do this agreement at that time? the obvious answer its to affect >> that could trigger a civil or criminal prosecution by the federal election commission. but cohen's lawyer, david

schwartz says his client did nothing wrong. >> mr. cohen paid the $130,000. but the reason is to protect business, protect reputation, and to protect family. and you cannot speculate that it was to elect some body president of the united states. the u.s. joined a dozen european nations expelling russian diplomats the week of the poisoning of a former kremlin spy. the russian consulate in seattle was ordered closed. chip reid reports. >> reporter: 48 intelligence officers based at the russian embassy in washington have been ordered by the trump administration to leave the u.s. within one week. the trump administration to leave the u.s. within one week. along with another 12 russians based at the united nations in new york. it is part of a coordinated action with more than 20 u.s. al lies to send more than 130 russians home. the purpose is to punish russia for its alleged use of a chemical agent, in a a near fatal attack on ex-russian spy and his daughter, in the united kingdom. white house deputy press

secretary raj shaw. >> the poisoning in the uk that has led to today's announcement, was a very brazen action. this is not the type of conduct that the united states or al lies can, can accept. off awe the administration also said the russian consulate in seattle will be closed within a week. due to its proximity to one of our submarine bases and boeing. the nation's second largest defense contractor. both sites are believed to be prime potential targets for russian spies. a senior white house official said the move will help curtail russia's increasingly aggressive intelligence activities. they hide behind the veneer of diplomatic immunity while actively engaging in intelligence operations. russia says u.s. spies do exactly the same thing in their country. the president's move follows a controversial phone call last

week in which he congratulated russian president putin for his re-election victory. rejecting advice from his advisers not to offer congratulations. > the russian embassy asked users of twitter to help them decide how to retaliate against the united states, in a tweet, the embassy asked, what u.s. consulate general would you close in russia if it was up to you to decide. they gave three choices. and so far, the u.s. consulate in st. petersburg is in the lead. jeff. >> the owner of a medical testing company has explaining to do. a cbs news investigation found it was using rural hospitals as fronts for sending millions of dollars worth of bogus bills to insurance companies. jim axelrod has the story. >> what we are frying to accomplish, bring big city health care to little town usa. >> reporter: george perez ceo of empower group, miami based health care company that claims to specialize in saving rural hospitals. >> we have gone to the towns and basically some of them we bought out of bankruptcy or they were just days before closing.

but one of the hospitals, perez promised to save in the florida panhandle its now shut down and boarded up. >> the hospital was in significant financial trouble. in april 2015. >> feels like the shining in here. >> attorney michelle jordan represents the hospital which was days away from closing when perez and his partners swooped in. >> were you thinking to your self what is it in for them? >> yes. >> perez and associates agreed to pay off the hospital debt and manage for a fee of $30,000 a month. jordan begged the board not to sign. >> but the board was desperate. >> they wanted their hospital open. >> these records were how the hospital submit for billing. >> the hospital stayed open, thanks in part to deals perez made with drug testing laboratories all over the country.

>> what was attractive about this 25 bed facility in rural florida? >> the reimbursement rates. >> to keep rural homes in business, insurance companies reimburse them for tests at much hyperrates. a lab in dallas might get $200 for a urine screen. the same test, billed through rural hospital, more than $1,000. which explains why george perez struck deals with dozens of labs around the country to pass their testing through graceville and their billing along with it. >> i can tell you what was funneled through the facility. and that was, over $120 million in about 14 months. >> what you are describing, sound fraudulent? >> it sound too good to be true. >> the board finally came to the same conclusion and stopped the lab program. but that created new problems. on one side, dozens of labs claim the hospital owed them

millions. on the other, the insurance companies said they had been overbilled by millions. squeezed in the middle, the hospital closed its doors after more than half a century. ♪when you've got...♪

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president trump's personal lawyer, michael cohen insists he had nothing to do with an alleged threat against the porn star, stormy daniels. daniels who claims she had a one-night stand with mr. trump before he became president. told her story on 60 minutes. if you missed it, here is anderson cooper all. for sitting here talking to me you could be fined $1 million. aren't you taking a big risk? >> i am. >> i guess i am not sure on why you are doing this? >> because it was very important to me to be able to defend myself. >> its part of talking wanting to set the record straight. >> 100%. >> why does the record need to be set straight?

>> because people are saying whatever they wanted to stay about me. i was perfectly fine saying nothing at all. but, i'm not okay with being made out to be a liar or people thinking that i did this for money. people are like you are an opportunist, taking advantage of this. yes, i am getting more job offers now. tell me one person who would turn down a job offer more than they been making doing the same thing. >> lot of people you are using you for agendas. >> trying to. like, stormy daniels comes out, me too. this is not a me too. i was not a victim. i have never said i was a victim. i think trying to use me to, to further some one else's agenda does horrible damage to people who are true victims. >> stormy daniels real name its stephanie clifford. 39 years old from baton rouge, louisiana, has been acting in and directing and writing adult films nearly 20 years. she was one of the most popular actresses in the adult industry when she was introduced to mr.

trump at celebrity golf tournament in lake tahoe, july 2006. he says she invite herd to dinner she met him at his hotel suite. >> how was the conversation? >> it started off all about him. talking about himself. he is like, have you seen my new magazine? >> showing you his own picture on the cover of a magazine. off awe right. right. i was like does this normally work for you? he looked taken aback. didn't understand what i was saying. just talking about yourself normally work. some one should take that magazine and spank you with it. and i will never forget the look on his face. he was like. just, i don't think any one has spoke tine him, especially a young woman who looked like me. and i said, do give me that. and i remember him going, you wouldn't? i said, hand it over. and -- and so he did. i was like, turn around, drop them. >> you told donald trump to turn

around and take off his pants. >> yes. >> did he. >> yes. he turned around. pulled his pants down a little. he had underwear on. i gave him a couple swats. >> this was done in a joking manner? >> yes. >> from that moment on he was a completely different person? >> how so. he quit talking about himself. he asked me thing. i asked him things. it became like, a more appropriate. >> became more comfortable. >> he is like, wow, you, you are special. you remind me of my daughter. you know, he is like you are smart, beautiful, a woman to be reckoned with. i've like you. i like you. >> at this point. was he doing the apprentice. >> yes. he goes, i got an idea, honey bunch. would you ever consider going on, and being a contestant. i laughed. said, nbc is never going to let, an adult film star be on. it's, he goes, no, no, that's why i want you. you are going to shock a lot of people. you are smart.

they won't know what to expect. >> think he was serious or dangling athat to get you to want to be involved with him? >> both. >> melania had given birth to a son a few months before. did he mention his wife or child at all in this? >> i asked. he brushed it aside. said, yeah, yeah. don't worry about that. we have separate rooms and stuff. >> did you two go out for dinner that night? >> no. >> dinner in the room? >> yes. >> what happened next? >> i asked him if i could use his restroom. he said through the bedroom. you'll see it. so i, excused my self. went to the restroom. you know, i was in there for a little bit. came out. he was sitting on edge of the bed when i walked out. perched. >> when you saw that, what went through your mind. i realized exactly what i had gotten myself into. and i was like, oh. here we go. and i just felt like maybe, maybe, it was sort of -- i had

it coming for making a bad decision for going to someone's room alone. i just heard the voice mine head. well you put yourself in a bad situation, bad things happen. so you deserve this. >> you had sex with him. >> yes. >> you were 27. he was 60. were you physically attracted to him? >> no. >> not at all. >> no. >> did you want to have sex with him? >> no. but i didn't, i didn't say no. i am not a victim. i've am not. >> entirely consensual. >> oh, yes, yes. >> you work in an industry where condom use is an issue. did he use a condom? >> no. >> did you ask him to? >> no. >> i honestly didn't say anything. >> after you had sex. what happened. >> he said it was great. had a great evening. nothing like he expected. he surprised him. a lot of people must underestimate me. that he hoped that, that i would be willing to see him again. and that we would discuss the things we talked about earlier in the evening. >> being on at pren tis? >> right. >> daniels says she and mr.

trump stayed in touch. he invite herd to a trump vodka launch party in california as well as to his office in trump tower in new york. p>> he definitely wanted to see you. >> for sure, yes. >> this was not a secret. he never asked me not to tell anyone. he called several times when i was in, front of many people. and i would be like, oh, my god, he is calling. people are like shut up, the donald. and i put him on speaker phone. wanted to know what i was up to. when can we got together again. give you a quick update. we had a meeting. it went great. going to be spectacular. they're into the idea. >> uh-huh. that part i never believed. >> did you get the sense he was dangling it in front of you. >> for sure, yeah. >> to keep you interested and coming back. >> of course, of course. i'm not blind. but at the same time, maybe it would work out. you know? >> did you view it as, this is potential opportunity. going to see where it goes? >> i thought of it as the a business deal. >> in july, 2007, a year after they met.

daniels says mr. trump asked to meet with her privately at his bungalow at the beverly hills hotel in los angeles to discuss a development regarding her possible appearance on celebrity apprentice. >> i remember arriving. he was watching shark peek. he made me watch an entire documentary about shark attacks. >> wasn't at that pin the a business meeting just watching shark week. >> yeah. >> did you have sex again? >> no. >> did he want you? >> yes. >> how do you know? >> he cape, sat next to me. touched my hair. put his hand on my leg. referenced back to how great it was the last time. >> how did you get out of it? >> well i had been there four hours. so i then was like, before, you know, can we talk about what is the development? and he was like i am almost there. i will have an answer next week. i was like, cool. call me next week. took my purse and left. >> according to daniels. mr. trump called to say he had not been able to get her a spot

on celebrity apprentice. she says they never met again. only had sex in the first meeting in 2006. in may, 2011, daniels agreed to tell her story to a sister publication, of in touch magazine, for $15 t two former employees of the magazine told us the story never ran because after the magazine called mr. from seeking comment his attorney michael cohen threatened to sue. daniels says she was never paid. and sayslater she was threatened. >> i was in a parking lot going to a fitness class with my infant daughter. taking the seats facing whack wards in the back seat. diaper bag. getting all the stuff out. a guy wauktd lked up on me. said leave trump alone. forget the story. then he leaned around looked at my daughter. and said, a beautiful little girl, a shame if something happened to her mom. then heap was gone. >> you take it as the a direct

threat. >> absolutely. i was rattled. i remember going into the workout class. my hand were shaking so much. i was afraid to was going to drop her. >> did you ever see the person again? >> no. but i, if i did. i would know it right away. >> you would recognize that person? >> 100%. even now. all these years later. if he walked in this door right now, i would instantly know. >> did you go to the police? >> no. >> why? >> because i was scared. >> the when a gossip website reported a few months late sheer had an affair with mr. trump. stormy daniels publicly denied it. five years later, donald trump won the republican nomination for president. suddenly people are reaching out offering me money. large amounts of money. was i tempted, yes. i struggled with it. then i get the call. i think i have the best deal for you. >> from your lawyer. >> the deal was an offer not to tell her story. it came from mr. trump's toern, michael cohen. in return for signing this

nondisclosure agreement. cohen would papt her $130,000 through a delaware based limited liability corporation he established in mid october, called essential consult anlts. daniel says the agreement was appealing because the it meant she would receive some money, but also, not have to worry about the effect the revelation of the affair would have on her child. who was now old enough to watch the news. she signed the agreement 11 days beef before the election. >> hush money to stay ♪ tired of wrestling with seemingly impossible cleaning tasks? wipes in the kitchen can be ineffective. try mr. clean magic eraser with durafoam. simply add water, to remove burnt on food. try mr. clean magic eraser with durafoam.

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>> a limo driver who goes by the name mad mike wants to prove the earth its flat. so he built himself a rocket. and lifted off into the skies above the mow havey desert. as you might expect he came done to earth with a thud. here is mireya villarreal. >> reporter: a daredevil rocket maker, who calls himself mad mike hughes soared into the sky saturday. in a steam powered rocket he built in his garage. after reaching an estimated speed of 350 miles an hour, hughs pulled his parachute. he then deployed a second chute just before hitting the ground. he only hurt his back after admitting the mission could have been deadly. hughes spoke to noise tv before the launch.

>> i think a good platform to raise awareness and money to get me to space. >> hughes former stunt limo driver says he received all most $8,000 in funding from research flat earth, little known group believes the earth is shaped lake a frisbee with the sun and moon rotating around the outer edge. >> do i believe the earth is shaped lake a frisbee or flat, i believe it is. because i cannot disprove it. >> while thousand of years of science and exploration yet to convince mad mike the earth is round. he isn't alone. a number of celebrities including basketball stars, shaquille o'neal and kyree irving have drawn attention for supporting the theory. they both since said they were joking. but for hughes, this is no laughing matter. >> this is why i want to go into space. 52 miles up. to set this thing for people to know. mireya villarreal, los angeles. for his next trick, mad mike

wants build a rocket carried into the atmosph

we know most people go to the barber for haircut. shave, light conversation. dr. jon lapook. found a place where ten minutes in the chair can possibly save your life. >> i came unone day, at 6:00, they were here already. >> mark simms was in for his weekly morning cut, when barber eric mohammad and medical team ambushed him with a blood pressure cuff. >> set him up.

>> set me up. >> simms was startled by the reading. >> it was sky high. 175 over 125. which is stroke bound. >> simms was part of a study that turned barber shops into de facto clinics and barbers into health advocates. win if we can save one life. >> clients diagnosed with hypertension were prescribed medication and follow-up with pharmacists. me h listed as a study co-author. after six months men saw their blood pressure drop nearly 30 points. >> always good. >> 3,000 miles away, dr. joseph ravanaugh, runs a new york barber shop. chess set. cushy chairs, friend leap faces. less intimidating that a doctor's office. this is definitely, higher than we would look to see. >> 65-year-old, john days a regular customer. >> look forward to seeing you in the office. >> got it. >> while the doc was in.

owner polo green sat him down for a shave and haircut. >> black men in particular are underrepresented in primary hept care settings for reasons, including access, including medical mistrust. >> they may not necessarily trust the system. but they trust polo. >> i have a -- a head doctor degree in hair. >> i see. >> head doctor here. >> i examine the head while they're getting the haircut. we generally start a good conversation about health. when they come here, i give them that push. give thet encouragement. okay to go see the doctor to make sure you are healthy. >> next move for the doctor and his team is true spread the word on screening for colon cancer. dr. jon lapook, cbs news, new york. just a good way to get men to go to the hospital and get checked out. that's the cbs "overnight news" for this tuesday. for some of you the news continues. and for others, you can all ways check back with us later for the morning news and of course, cbs

this morning. from the broadcast center in new york city. i'm demarco morgan. captioning funded by cbs it's tuesday, march 27th, 2018. this is "cbs morning news." breaking overnight, a former michigan state university dean is arrested. he was the boss of larry nassar, the ex-sports doctor spending time in prison for molesting his patients. a strong denial from the white house after stormy daniels' "60 minutes" interview in which she says she was threatened to keep quiet over her alleged tryst with donald trump. more on the fallout. and the u.s. is joining other nations in what is said to be the largest expulsion of russian diplomats in history.