, seresto. and ford. we go further, so you can. >> it was a weapon? >> oh, of course it was a weapon. >> an energy weapon? >> absolutely. >> what sort of energy is this that we're talking about? >> i believe it's r.f., radio frequency energy, in the microwave range. >> mark lenzi is a state department security officer who worked in the u.s. consulate in guangzhou, china. >> there is no shadow of a doubt in my mind that this was a directed attack against my neighbor and i. >> his neighbor was catherine werner. >> it was intense pressure on both of my temples. and i remember looking around for where this sound was coming from, because it was painful. >> thank you. >> have a great tour. >> steve case is a billionaire with a bus, on a mission, to

steer venture capitalists and their money to areas they've typically overlooked. >> i started this company with only $500 in my pocket. >> places like this old church in memphis have become the stage for entrepreneurs to pitch their products... >> the winner of the pitch competition is soundways! ( cheers and applause ) >> ...hoping to get a share of case's $150 million fund. >> monaco is a myth. and we live on it. >> monaco is maseratis and martinis. mega-yachts and famous casinos. it may be tiny, but monaco has more multi-millionaires per square foot than any other country. >> this is actually an orange grove. >> its ruler, prince albert, grace kelly's son, has seen it all. >> i remember different-- parties and luncheons in the summer, where we'd have frank sinatra, kirk douglas. >> oh, really? >> gregory peck, yeah, come by. >> it's nice to imagine sinatra around here. ( laughs )

>> i'm steve kroft. >> i'm lesley stahl. >> i'm scott pelley. >> i'm anderson cooper. >> i'm sharyn alfonsi. >> i'm bill whitaker. those stories, tonight, on "60 minutes." >> cbs money watch sponsored by lincoln financial, helping you create a secure financial future. >> good evening. the fed is expected to leave interest rates unchanged when it meets this week. lyft hits the road tomorrowli fm investors for its i.p.o., and shake shack tests a four-day work week to improve employee -, cbs news. feel the clarity of non-drowsy claritin

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[outdoor♪ambiance] hi, mrs. gorman. hey, theo. police radio: i have the stolen vehicle in sight. [police siren] ♪ [police siren]

♪ [police siren] police radio: onstar, it's safe to slow it down. ♪ onstar advisor: mr. grantham, this is onstar. onstar advisor: the police have your vehicle. mr. grantham: thank you so much. >> pelley: in 2016 and '17, 25 americans, including c.i.a. agents, who worked in the u.s. embassy in cuba suffered serious brain injuries, causing impaired vision and memory loss, among other persistent symptoms. now, we've learned that at least

15 american officials in china suffered unexplained brain trauma soon after. the f.b.i. is now investigating whether these americans were attacked by a mysterious weapon that leaves no trace. over many months, we have been collecting evidence of what appears to be a hostile foreign government's plan to target americans serving abroad and their families. >> mark lenzi: for me, it was november of 2017, when i started to feel lightheaded a lot. i was getting more headaches. my wife was getting headaches, too. >> pelley: mark lenzi is a state department security nsin gou, cha.rked in the u.s. began fer afaringe strange sounds in their apartment. >> lenzi: picture holding a marble. then, picture if you had, like, a six-foot in diameter funnel, metal funnel. the sound that marble would make as it goes around, and it

progressively gets faster as it gets, goes down towards the hole at the end. it's a sound like i've never heard before. >> pelley: was this subtle? like, "did i hear that?" >> lenzi: no. it was-- it was actually somewhat loud. i heard it about three or four times, always in the same spot. always over my son's crib, and always right before we would go to bed. >> pelley: lenzi wears prescribed glasses because sensitivity to light is among his persistent symptoms. >> lenzi: the symptoms were progressively getting worse with me. my headaches were getting worse. the most concerning symptom for me was memory loss, especially short-term memory loss. >> pelley: mark lenzi believes he was targeted because of his work. he uses top secret equipment to analyze electronic threats to diplomatic missions. >> lenzi: there is no shadow of a doubt in my mind that this was a directed attack against myghbs catherine werner, who lived one floor up. she's a u.s. commerce department trade officer who promoted american business from the

guangzhou consulate. >> catherine werner: i woke up in the middle of the night, and i could feel this sound in my head. it was intense pressure on both of my temples. at the same time, i heard this low humming sound, and it was oscillating. and i remember looking around for where this sound was coming from, because it was painful. >> pelley: when did you first notice that you weren't feeling well? >> werner: october of 2017, i started to get hives all over my body. really bad hives. i woke up with headaches every day. i started to feel tired. keveed.plest things would just >> pelley: were these symptoms growing worse over time? >> werner: they were, yes. my symptoms would get so bad that i would throw up, or i would wake up with nose bleeds.

>> pelley: she says even her dogs were throwing up blood. werner assumed her illness was connected to china's toxic smog. she didn't know it at the time, but her symptoms were the same that american officials in havana had suffered since 2016. the u.s. embassy there is all but closed as a result. >> werner: we hadn't heard about what happened in cuba. i mean, there were headlines in the news about hearing loss, and attacks to our diplomats, but we didn't know the details. >> pelley: catherine werner became so ill, her mother traveled from the u.s. to live with her. >> werner: she spent almost three months with me. during that time, she also got very ill. and she and i shared the same symptoms. >> pelley: what sort of symptoms did your mother have? >> werner: headaches. and, ringing in our ears.

we also started to both have difficulty recalling words. >> pelley: after reporting her experiences, werner was medically evacuated to the u.s. for treatment. u.s. agencies are investigating, but mark lenzi has a theory. >> lenzi: this was a directed standoff attack against my apartment. >> pelley: it was a weapon? >> lenzi: oh, of course it was a weapon. >> pelley: an energy weapon? >> lenzi: absolutely. >> pelley: what sort of energy is this that we're talking about? >> lenzi: i believe it's r.f., radio frequency energy, in the microwave range. >> pelley: a clue that supports that theory was revealed by the this n.s.a. statement describes such a weapon as a "high-powered microwave system weapon that may have the ability to weaken, intimidate, or kill an enemy over time without leaving evidence." the statement goes on to say,

"this weapon is designed to bathe a target's living quarters in microwaves." the n.s.a. disclosed this in a worker's compensation case, filed by former n.s.a. employee mike beck. >> pelley: when you look back across your career, is there any incident that leads you to believe that it could be responsible for your parkinson's disease? >> mike beck: yes. >> pelley: in the 1990s, beck and an n.s.a. coworker were on assignment overseas. years later, he says, they developed parkinson's disease at the same time. >> beck: in 1996, a colleague of mine, chuck gubete, and i traveled to a hostile country and worked there for about a week. and-- i can't say where the hostile country-- the identity of it. >> pelley: because it's still classified? >> beck: yes. >> pelley: but it was not cuba or china. you believe that you and chuck

gubete were attacked with this microwave weapon? >> beck: yes. i had a pretty good working knowledge of the hostile country's intelligence services, what they do to people, what they have done, what their modus operandi is. >> pelley: mike beck says more intelligence has come in recently, which he shared in a classified briefing with congressional investigators. >> pelley: mike, you can't discuss any of these details because they're all classified. but, in your opinion, does the new information that you briefed the house and senate intelligence committee staff on in any way relate to what happened in cuba and china? >> beck: it's relevant to the cuba and china cases. >> pelley: no one has officially confirmed that what beck says happened to him is related to at least 40 americans injured in china and cuba. while beck suffers from parkinson's, the recent patients

are being treated for the same kind of symptoms that doctors would expect from a concussion. >> dr. teena shetty: so follow my fingers. >> pelley: dr. teena shetty is mark lenzi's neurologist. >> shetty: so mark initially came to me reporting symptoms of headache, memory loss, sleep difficulties, emotionality, and irritability. >> pelley: and what did you make of that in the early days? >> shetty: i was very surprised. he did not have any history of any trauma or blow to his head, but he reported a constellation of neurologic symptoms which are characteristic of mild traumatic brain injury, without any history of associated head trauma. >> lenzi: i still notice it, but that has improved. >> pelley: exactly how their brains were injured is the subject of a study at the university of pennsylvania center for brain injury and repair. >> shetty: still slightly wobbly. >> pelley: dr. shetty is not part of that study... >> shetty: and align your knees for me. >> pelley: ...but her patient, mark lenzi, is. >> shetty: the presumption is that something happened which

caused a functional brain injury of wide-spread brain networks, because he has symptoms to reflect a multitude of brain networks. >> pelley: what doctor shetty describes mirrors the findings published so far by the university of pennsylvania study. >> robyn garfield: they have said that our symptoms are exactly what they saw in cuba, and that we have the full suite of findings that they had there. >> pelley: robyn and britta garfield are among the 40 patients enrolled in the university of pennsylvania study. like catherine werner, robyn garfield is a trade officer with the commerce department. he was posted with his wife and two young children in shanghai. >> robyn garfield: i don't know when the sound started. i do know that it was for months on end. >> britta garfield: i was sitting next to robyn, and something, i felt like, hit me from the left side. and at first it felt like an electric shock, and then it

paralyzed me, so i was not able to move or speak. >> pelley: it hit you so hard you felt like you were in danger in the room? >> britta garfield: yes. >> pelley: they say the children suffered blurred vision and loss of balance. your daughter was literally falling down? >> robyn garfield: yes. she fell down multiple times that day. >> britta garfield: we went on a walk and she just fell on her face. it was very abnormal. she never does that. and then a second time, she completely lost her balance and just fell to the side. >> pelley: last spring, the secretary of state mike pompeo confirmed the case of catherine werner. u.penn found her brain injuries matched the cuba victims. >> mike pompeo: we had an incident in guangzhou that the medical indications are very similar and entirely consistent with the medical indications that have taken place to americans working in cuba.

department is raising doubt about the other 14 china cases. the state department's medical office sent mark lenzi this note, that says "we have reached the decision that your symptoms and findings do not correlate with the havana cohort." >> lenzi: they tried to deny it. they tried to cover it up. they tried to minimize it. >> pelley: why would the state department minimize this? >> lenzi: because it's china. because we have such a large trade relationship with them. you can push around cuba. their trade, you know, relations are minimal. with china, that's a different beast, right? >> pelley: state department doctors told robyn garfield his illness stems from a baseball injury 17 years ago-- which does not explain his wife and children. >> robyn garfield: it is a very complicated geopolitical relationship between the u.s. and china. so that to me feels like why this determination's being made. >> pelley: what does it mean for your benefits today that the state department is refusing to call this an attack? >> robyn garfield: it has

significant impact on our, our life, our finances. my career as well, likely. i have not been afforded time for my rehabilitation. being classified as "preexisting injury" means that i don't have access to paid leave. it also means that after one year, my medical bills will not be covered curre. >> pelley: the china patients have the attention of at least one member of the senate foreign relations committee. jeanne shaheen wrote secretary pompeo, "the group from china is increasingly feeling isolated and left behind by the state department." the state department declined an interview, but in a statement to "60 minutes," it said, "we will continue to provide our colleagues the care they need, regardless of their diagnosis or the location of their medical evacuation."

a state department official told us that the cuba patients are victims of an attack, but state hasn't made the same determination for the china patients. the department has asked the national academies of science to assist in the medical investigation. the f.b.i. is also investigating. intelligence sources told us that in addition to cuba and china, russia is a suspect. but if microwaves were used, the technology is not rare. it could be, more than one country is using it. u.s. intelligence is still debating what caused the injuries. you were in harm's way and you i 't i'm afid thaothers may be in harm's way and may not know it. i don't know what the future looks like for me, but i would do anything in my power to prevent this from happening to

somebody else serving their country. >> pelley: americans are not the only ones who have been attacked. according to the canadian government, 15 canadians were injured in cuba, including diplomats and their families. >> how do you report on the invisible? >> were there moments where you had doubts about what you were hearing? >> yeah, i mean, frankly... >> go to 60minutesovertime.com sponsored by pfizer. essential for pine trees, but maybe not for people with rheumatoid arthritis. because xez xr.re options. a once-daily pill for adults with moderate to severe ra for whom methotrexate did not work well enough. xeljanz xr can reduce pain, and further joint damage, even without methotrexate. xeljanz xr can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal infections and cancers,

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ready for a chance at 100% clear skin? ask your doctor about taltz. >> alfonsi: for years, pundits have declared the united states has split into "two americas"-- a nation divided by politics, geography and the economy. but one tech icon believes he can help even out the playing field. steve case, the man who co-founded america online, and injected the jingle "you've got mail!" into the american lexicon, is now trying to steer venture capitalists and their money to areas they've typically overlooked-- mostly, small towns and cities in the middle of the country. his vehicle to do that is a $150 million investment fund, and a 35-foot-long bright red bus.

we joined the billionaire on his bus for a recent road trip... >> all right, let's go! >> alfonsi: ...and soon found ourselves aiming for the edge of a wheat field in tennessee. steve case is here to meet a few entrepreneurs who say they've created a new technology that could revolutionize the way america farms. these robots are actually miniature tractors that are operated remotely. >> entrepreneur: what you're able to do is cut that travel time down to one-third, and maximize productive time in the field. >> alfonsi: the entrepreneurs are looking for a cash infusion from case to jumpstart their business. case is looking for the next big idea, and is knee deep in his quest. ca h hard has been the attention of..ca. right now, 75% of venture capital goes to three states: california, new york and massachusetts. most of the venture capital is on the coasts, not in the middle of the country. and we just have to change that.

>> alfonsi: tech behemoths like amazon and google have doubled down on big cities, but case believes the best opportunities are off the beaten path. and that's where the bus comes in. >> thank you. >> have a great tour. >> alfonsi: case and his team are scouring the middle of the country, looking for promising ideas overlooked by silicon valley. they've traveled to 38 cities and 26 states, thousands of miles, often spending 12 hours a day on the road. you're a successful guy. you've made a fortune. why in the world do you want to ride around on a bus in the middle of the country for 12 hours a day, day after day? >> case: because i believe in these entrepreneurs. i believe... >> alfonsi: but you could believe in them from washington, d.c., and send your people out. but you go there, and you get on the bus and you drive around. so why are you on the bus? >> case: i want to get everybody on the bus. there are entrepreneurs like me all over the country. most people are not paying attention to them. most people in their communities

don't believe in them. most people on the coasts don't think there's anything interesting, innovative, happening in the middle of the country. >> alfonsi: so convinced there is money to be made in the middle of america, case raised $150 million to create what he calls the "rise of the rest" fund. "the rest," referring to entrepreneurs in cities like indianapolis, detroit and birmingham-- areas usually overlooked by venture capitalists. >> case: if you care about this city, you have to invest in start-ups. >> alfonsi: today's stop: memphis. >> jessica buffington: i started this company with only $500 in my pocket. >> alfonsi: dozens of entrepreneurs have gathered in a dusty church to pitch case and his team their ideas. among the competitors, the inventor of a new headlight... >> marcus boykin: this technology converts a high beam into a low beam illumination. >> alfonsi: ...the maker of a bio-degradable medical device... >> kayla rodriguez: we are the first to encapsulate the

benefits of honey, create a solid product and deliver it as an implant to heal you internally. >> alfonsi: ...and a former musician who has come up with a better way for fellow musicians to get paid for their work. >> gebre waddell: we've built an imdb-style database for the music industry that helps give credit where credit is due. >> case: sweetbio? >> alfonsi: backstage, case and his team quickly vote. >> case: five, six, seven. >> alfonsi: minutes later... >> case: the winner of the pitch competition is soundways. ( cheers and applause ) come on up! >> alfonsi: the winner gets $100,000 to grow their business. pocket ce the city's struggling economy. ♪ ♪ the poverty rate in memphis is almost two times the national average, crime is rampant, and 30,000 people have left the city in the last decade. >> case: steve case. how you doing? >> alfonsi: memphis is a hard

sell to investors, and entrepreneurs have paid for it. >> case: i realized it because i, you know, spent a lot of time traveling around the country. there-- most people in this country wake up in the morning anxious, fearful about the future. >> alfonsi: fearful? >> case: they're fearful. >> alfonsi: why? >> case: because the things they see happening, mostly on the coasts, are hurting their family, hurting their community. they see that these silicon valley companies bragging about disruption, sometimes that's code words for job destruction in their backyard. and that troubles them. they're losing jobs, not gaining jobs. >> alfonsi: and do you feel that when you go there? do you feel that they think, "we've kind of been forgotten here?" >> case: of course. they have been forgotten. it's not about a feeling about being left behind. they have been left behind. we have to kind of level the playing field, so everybody, everywhere, really does feel like they have a shot at the american dream. right now, they don't. >> alfonsi: j.d. vance agrees. it's the reason he became case's partner in the rise of the rest fund.

vance wrote the "new york times" best-seller "hillbilly elegy." do you still consider yourself a hillbilly? >> j.d. vance: ( laughs ) i certainly do. i certainly do, and it's the thing i'm proudest of. >> alfonsi: a hillbilly in a blue blazer now? ( laughter ) >> vance: yeah, well, my wife dressed me, so you can talk to her about that. >> alfonsi: vance's book details his upbringing in appalachia, surrounded by heart-breaking poverty, drug addiction and instability. after a stint in the marines, then earning degrees from ohio state and yale law school, vance began a career as a high-tech investor in silicon valley. >> vance: i definitely get a little bit skeptical when somebody's developing a new app for parking, and they tell me they're changing the world. so, i do think sometimes, folks in san francisco can drink alito kool-aid. >> alfonsi: discouraged by so-called "transformational technologies" that weren't, two years ago, vance moved back to ohio to help run the rise of the rest fund. he says many of his silicon

valley friends had pre-conceived ideas about people from small towns. did you ever feel like you had to be defensive about where you were from? >> vance: oh, sure, sure. i felt like i definitely had to defend this part of the world, had to defend some of the people who lived here. >> alfonsi: defend them from what? >> vance: i think, defend them from the assumption that they're all stupid, and that they don't know what they really want in the world. i think there is this presumption that the only people who live here are the people who are forced to live here. they can't get out, or they're too dumb to know that they should leave. and that's just not true. i think people are here because they care about their communities and they want to build something special here, just as folks in san francisco want to build something special there. >> alfonsi: kentucky native jonathan webb wants to build we met him in pikeville, kentucky. once a thriving coal town in the heart of appalachia, it's been hemorrhaging jobs and residents. one in three people here make less than $12,000 a year, living below the poverty line.

webb thinks it's the perfect place to build high-tech greenhouses, and here's why. most u.s. produce comes from the west and mexico, traveling thousands of miles to get to our plates. webb says kentucky's central location means he can save on fuel costs, and get fresher products to stores faster. >> jonathan webb: we can get to 70% of the u.s. population in a one-day drive. >> alfonsi: rise of the rest has invested in webb's idea. >> webb: i want to be a high school student in eastern kentucky right now! >> alfonsi: now, he's trying to convince the local high school students here, there's a future in eastern kentucky. >> student one: there's not anything here right now. and i hope and pray for our community that something does come back here, but as of now, it's impossible for all of us to stay, even though 90% of us want to, and be able to live the kind of lives to where we could support ourselves and our family too. >> student two: my whole family's here, they've been here. but there's just-- there's nothing here. no job, nothing.

>> alfonsi: you worry about your parents? >> student two: yes. and, like, you worry how-- how are you going to make it? i mean, how-- i mean, how can they live paycheck to paycheck? and you want to help, but there's just no future for you. >> alfonsi: pikeville, like much of the region, has been gripped by the opioid epidemic. >> student two: our overdose rate is huge. so many people, that's what they die from around here. like, you-- i mean, that's what it-- that's what it is. >> alfonsi: jonathan webb has contracts with local rehab centers to hire recovering addicts. starting salaries will be $13 an hour, nearly double kentucky's minimum wage. >> webb: folks need opportunity. and if they don't have opportunity, we are going to continue in that cycle here. >> alfonsi: this walmart is the town's biggest employer, and the hills here are scarred with ads for personal injury attorneys. we counted 15 of them in town. and eastern kentucky has one of the highest rates in the country for people who've stopped looking for work. i'm going to play devil's advocate. >> vance: sure. >> alfonsi: people who say, "this is an area that's been

riddled with a drug problem. they don't really have the desire to work." what do you say to that? how do you answer that? >> vance: we shouldn't just accept that the story should be one of decline. and that's what i think-- you know, at its core, what rise of the rest is about is refusing to see the worst in any place. we want to see the best. i'm a venture capitalist, so i'm pretty comfortable with risk. if you look, even the best venture capitalists, a very large share of the companies that they invest in fail. and to me, what we ultimately want is to recognize that, just because a place is risky, doesn't mean it can't ultimately be productive. >> alfonsi: but it's not easy? >> vance: no, it's certainly not easy. and i don't think that five years from now, we're going to completely change the economy of appalachia, or any other part of the country. but i do think that what you're seeing is some real long-term momentum to bring more economic prosperity to broad parts of the country, not just a few cities on the coasts. >> alfonsi: in the past year, the rise of the rest fund has invested in over 100 companies in 63 cities. some of the biggest names in

business are investors. members of walmart's walton family, former facebook president sean parker, and google's eric schmidt. >> eric schmidt: give the one thing free away... >> alfonsi: not just offering cash, but advice to the entrepreneurs. they've had some success. watchmaker shinola, who they discovered on their first bus tour through detroit, now has more than 30 stores. in baltimore, a city that has long struggled with pockets of extreme poverty, they invested in catalyte, a company that developed an artificial intelligence test to identify people with aptitude for software development, no experience or education required. pass the test, and catalyte will train you. company president jacob hsu says about 90% of their trainees land six-figure jobs as software developers. >> jacob hsu: our people come from all walks of life. we have fast food workers, we have teachers, musicians, artists, truck drivers, security guards. we have people who come from all

over, right into these, into these positions. >> alfonsi: catalyte is rapidly expanding, and plans to open in 20 cities in the next two years. >> hsu: this isn't kindergarten engineering; this is the real deal. we're not doing it just for a charity, we're doing it because we found a better way. >> alfonsi: back in pikeville, j.d. vance and jonathan webb are hunting for a second greenhouse site on top of an abandoned mine. do you think you're going to make money? i mean, is this just something that feels good for the region, or-- or is this a good investment? >> vance: we're doing this certainly because it feels good, but we think it'll work, too. >> alfonsi: the stakes are high. not just for the entrepreneurs, but, steve case says, for the country. for the skeptics who say this is just a vanity project for steve case? >> case: they can say whatever they want. i think it's important. >> alfonsi: and why is it important? why does it matter? if it doesn't happen, then what? >> case: i think we're going to take what's already a pretty big divide in this country, and it's going to get a lot worse. >> alfonsi: to get the attention of those venture capitalists, you have to be successful. you have to make money.

so how much pressure is there to get this right? >> case: oh, we've got to get this right. >> you two get in the middle here! >> case: this, to me, really is about the future of america. ♪ a wealth of information. a wealth of perspective. ♪ a wealth of opportunities. that's the clarity you get from fidelity wealth management. straightforward advice, tailored recommendations, tax-efficient investing strategies, and a dedicated advisor to help you grow and protect your wealth. fidelity wealth management. at outback, your steak & lobster awish is our command.th. steak & lobster is back by popular demand, starting at only $15.99. hurry in to outback! steak & lobster is only here for a limited time.

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of monaco in the 1950s. today, it's home to more multi- millionaires per square foot than any other country. and while grace kelly's son prince albert has been trying to push his nation into the 21st century, it unapologetically remains a place where you can parade your jewels, park your money, and not pay any income tax. there are certainly prettier parts of europe, but it's monaco where the super-rich are clamoring to get in. for many, monaco is synonymous with the high life-- maseratis and martinis. mega-yachts and motorboats. >> steven saltzman: that's our fisher island. that would be where all the pet's steveneople rent. therngs, is to help wealthy foreigners move here. his father produced the early "james bond" films, and steven pitches the principality with the hyperbole of a hollywood producer. >> saltzman: monaco is utopia.

>> cooper: utopia? >> saltzman: it's a country with no sovereign debt, where 100 different nationalities live together, protected in peace by a planet-loving prince. >> cooper: is utopia this wealthy, though? >> saltzman: well, i'm talking about utopia because it's a perfect society. >> cooper: a perfect society? the first thing you really notice about monaco is how small it is-- less than a square mile, carved out of the coastline of france. a cramped alcove of aging apartments hugging a harbor barely big enough for the boats that dock here. there's certainly more yachts in utopia than i imagined there would be. >> saltzman: well, this is-- ( laughs ) yacht heaven. it's the mecca of the yacht. you know, they always say that there are two times in yachting that are fun: the day you buy it, and the day you sell it. ( laughs ) >> cooper: with enough money, you can buy just about anything in monaco. there are more luxury shops than supermarkets. >> what are you bidding, sir? >> cooper: fundraisers are the social events of the summer.

and whatever you have, you can flaunt it without fear. monaco isn't a police state, but there are cops everywhere. they're very polite, they salute when they see you, but make no mistake, they're watching everything. not just with cops on corners, but cameras, lots of them, clocking pedestrians, and each car that comes into the country. they see everything? >> saltzman: they see everything. and i'm happy about that because it-- i know that i live in safety. i'm secure. and that the government of this country takes that very seriously. at times, itlsch l a country club, as a country. membership will cost you. to become a resident, you have to prove you make a lot of money or have more than half a million dollars in the bank, and you have to promise to live here six months of the year. there's not much of a beach to speak of, and traffic can be a nightmare. so what's the appeal?

a big one is taxes. in monaco, you pay no income tax, and rarely pay capital gains or inheritance tax... that is, unless you're american. the i.r.s. taxes you no matter where you live. monaco may be known as a tax haven, but around here, that's kind of a touchy subject. >> saltzman: no one here is cheating on their taxes. we pay our sales tax. we pay our property tax. we pay our tax in-- on our employees. and we pay our tax on our corporate profits. they don't need more taxes. >> cooper: but part of the appeal has got to be, "wow, i can come here and i-- i don't have to pay income tax." >> saltzman: the fact that monaco doesn't need income tax may be part of the attraction. but it may be somebody who'd also like to have their boat, live in security, and-- and not worry about their daughter going down to the supermarket and getting knifed. ( bells ) >> cooper: it might sound like a dim view of the rest of the world, but serious crime is almost non-existent in monaco... ♪ ♪

...and that's part of the attraction for tourists as well. every day, they flood the principality, hoping to get a glimpse of how the 1% live. >> yann anthony noughes: monaco is a myth. and we live on it. >> cooper: people want to believe in the myth? they want to come and see it? >> noughes: that's what people expect. >> cooper: yann anthony noghes grew up with that myth. his family has been here for more than 200 years, which makes him something of a rarity. he's a citizen. >> noughes: it's good to be a citizen here. >> cooper: citizens are known as monegasques, and it's almost impossible for foreigners to become one, no matter how long they've been here. out of the 38,000 people in monaco, less than a quarter are citizens. most monegasques are not millionaires, and they couldn't afford to live in their own country without special privileges and a variety of subsidies. you see people driving around in lamborghinis and bentleys, and parking them out in the street. is there tension? >> noughes: no. no.

because foreigners are our wealth. >> cooper: the foreigners are a source of wealth for the citizens? >> noughes: yeah. >> cooper: there-- there's not huge industries here. there's not farming here. that's how the country makes money. >> noughes: exactly. >> it's lights out, and away we go. >> cooper: the country also makes money hosting prestigious international events. the biggest of all: the historic grand prix. it takes place each spring, and attracts tens of thousands of visitors and top formula one teams. some of the drivers don't have to commute very far. world champion lewis hamilton lives here, along with dozens of star athletes in a variety of top sports. for four days, 20 turbo-charged, multi-million-dollar machines hurtle through monaco's winding, narrow streets. there's nowhere in the principality you can escape th yann anthony noughes's grandfather founded the now-

legendary race 90 years ago. so, for a local, what is race weekend like? >> noughes: well, it's heaven, and hell. ( laughs ) >> cooper: heaven, because-- ? >> noughes: well, it's heaven for guys like me who love it. and i'm having a real good time. but it can be hell when you just live right in that building, and you don't have a pass to go watch the race. >> cooper: or you don't like hearing music from yachts. >> noughes: exactly. or loud people coming to party. >> cooper: there are a lot of loud people wandering around race weekend. by day, they dance and party by the racetrack. at night, the action moves to the yachts docked in the harbour, where the champagne flows, and you can dance... or do this... all night. it'sard to imagine what grace kelly would make of it. she was hollywood royalty in 1956, when she married prince rainier, whose family had ruled over the principality for 700 years. minds of mamericans, a fairy-tale was born.

>> yes, indeed, it certainly was a great day in the long history of the principality. >> cooper: hollywood stars came calling, and high rollers from america flocked to gambling's high temple-- the ornate casino in the tiny neighborhood of monte carlo, so often immortalized in the movies. >> the name's bond. james bond. >> prince albert: hello, hello, hello. >> cooper: that was the monaco that grace kelly's son, prince albert grew up in. >> prince albert: bonjour, cça a bien. >> cooper: the palace gardens were his playground. >> prince albert: i remember different parties and luncheons in the summer, where we'd have frank sinatra, kirk douglas. >> cooper: oh, really? >> prince albert: gregory peck, yeah, come by. >> cooper: it's nice to imagine sinatra around here. ( laughs ) the prince is famously shy, and surprisingly accessible. his title is a big one for such a small country. he's referred to as "his serene highness." you can really see everything from here. >> prince albert: yeah. >> cooper: he's no figurehead. he runs this place. he's prince, mayor, c.e.o. and,

in many ways, luxury landlord. take a look at his desk. there's not a problem-- from international diplomacy to traffic troubles downtown-- that he doesn't oversee. the buck starts and stops with him. most people we talked to have referred to you at one time or another as the boss. >> prince albert: my father was called the boss as well. i view it as an endearing term. >> cooper: bosses usually do. ( laughter ) >> prince albert: it's not an-- not an easy responsibility, no matter what the size of the country is. >> cooper: when prince albert ascended the throne 14 years ago, monaco had lost some of its luster. the casino's fortunes had faded, and the principality had earned a ouurni a blind eye to crooks and tax cheats. there was that famous quote, that "monaco is a sunny place for shady people." was that fair? >> prince albert: at a certain period in time, it was a pretty accurate description. but that was-- that was a long time ago. >> cooper: there were-- there were a lot of shady people here in the past?

>> prince albert: monaco is certainly not a place like that anymore. >> cooper: prince albert has publicly pushed to get the country in line with nearly all international banking regulations, and he's been dubbed "the green prince" for his focus on climate change and for mandating that all new construction needs to be environmentally sustainable. the problem is, there isn't much space left to build on. this $2 billion project is underway to add 15 acres for luxury apartments by expanding out into the sea. monaco remains the most expensive real estate in the world, and new developments like the odeon tower are in high demand. apartments are set aside here for the monegasques at a deep discount. it's perhaps the fanciest public housing in the world, though there is a separate entrance for the super-rich. so which entrance do we go into? >> pieter van netelwijck: that one. >> cooper: this is the main one? >> van netelwijck: yeah. after you. >> cooper: okay. pieter van naeltwijck is a real estate broker. >> van netelwijck: all of monaco at your feet. >> cooper: he's currently offering this five-story penthouse in the odeon. >> van netelwijck: i'll take you down to the master bedroom

floor. >> cooper: the price? $300 million. and this is onyx? >> van netelwijck: yeah, retro, onyx. very difficult to cut because it's curved. >> cooper: it's a 38,000 square- foot marble-clad mansion in the sky, with seven bedrooms, a movie theater, a gym, gold fixtures-- and what's an outdoor pool without a waterslide? >> van netelwijck: you have about four or five kitchens-- each floor. >> cooper: four or five kitchens? >> van netelwijck: well, i mean, you don't want to walk to another floor to get-- >> cooper: breakfast. that-- that would be-- >> van netelwijck: no, that would just-- why'd you do that? >> cooper: terribly inconvenient. >> van netelwijck: no. exactly. >> cooper: wow. >> van netelwijck: there you are. >> cooper: the view is spectacular. and the apartment? perfect. if money and taste are no object. you see it as somebody who has a >> van netelwieah. maybe the gentleman will change his wife, and the wife will not like the sea, and she says, "i want to live in a nice building." >> cooper: the gentleman will change his wife? ( laughs ) there's a lot of that that goes on. >> van netelwijck: i know.

>> cooper: monaco is certainly not for everyone-- but then again, that's the whole idea. >> flavio briatore: monaco is like a dream, you know? >> cooper: like a dream? >> briatore: like a dream. everything's perfect. >> cooper: flavio briatore is an italian businessman who moved here ten years ago. in monaco, albert's the prince, but flavio is king of the night. just don't ask him to pick you up in his new lamborghini before 11:00 p.m. >> briatore: we have people spend 300,000 euro in one night. >> cooper: 300,000 euros in your restaurant? >> briatore: yeah, yeah. i'll show you the video. >> cooper: on food and-- and-- >> briatore: party. >> cooper: --champagne, and-- >> briatore: champagne. ♪ ♪ >> cooper: briatore owns this nightclub, twiga, part of his global empire of clubs, clothing brands and restaurants, humbly called "billionaire li a place where the roaring '20s never seem to have ended, and the rich and those who want to be rich can meet and mingle... and maybe find companionship for the night.

is that what monaco is, a party? >> briatore: yeah. you have two face of monaco. you have the day, quiet; in the night, people go around. people go to the disco. people go to the restaurant. all the restaurant is working very late. >> cooper: the party goes on. >> briatore: the party goes on. ( laughs ) >> cooper: in this age of instability, uncertainty and inequality, it may seem strange this odd oasis of opulence still exists, but monaco wants you to forget about all that. have some champagne, enjoy the party. why worry? from here, the rest of the world is far, far away. >> welcome to cbs sports hq presented by progressive insurance. >> i'm greg gumbel in new york with the top seeds in this year's ncaa men's basketball tournament. duke is the overall number-one seed in the east. virginia is on top in the south.

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