American Morning
Official: Drug lords using 'gift cards' to smuggle money
[cnn-photo-caption image=http://i2.cdn.turner.com/cnn/2009/images/06/10/goddard.arizona.art.jpg caption="Arizona Attorney General Terry Goddard says Mexican drug cartels use gift card technology to smuggle money across the U.S. border."]
The state of Arizona is finding itself on the front line of the war against Mexican drug cartels. Their attorney general will meet this week with leaders of other southwestern states to try to stop the flow of drugs across the border with Mexico. To do that, they say they will have to stop the flow of cash as well, including a new way smugglers are trying to get past the cash-sniffing dogs.
Lawmakers say gift card technology is now making it easier for drug lords to move cash across the border undetected. These 'stored value instruments' are often issued by offshore banks and allow large sums of money to be moved throughout the world. Arizona Attorney General Terry Goddard spoke to Kiran Chetry on CNN’s “American Morning” Wednesday.
Kiran Chetry: Walk us through these gift cards. How have they become so useful to the drug cartels?
Terry Goddard: This isn't your Starbucks or Best Buy gift cards. What we're talking about here are stored value instruments, which have chips in them…that basically can store fairly large amounts of cash. The total amount is undetermined; it depends on who the depositing bank or financial institution is. As a result, since they're not considered monetary instruments, they can be taken across the border and you don't break any laws. It is a huge loophole in our financial crimes observations.
Chetry: So you're talking about gift cards, these blank cards that can be preloaded with large amounts of cash. How do they cash it in once they get across the border?
Goddard: These basically are your passport for cash. They are your way of getting into a financial institution. If you're buying coffee with them, obviously your return is not that big. But if you've got a participating financial institution, say in the Cayman Islands or in Central America, then all you have to do is go to a group that corresponds with that financial institution, present your card and take out your cash. So there's nothing at the border that you have to display. Under U.S. law, these cards, however much they may be worth are not considered financial instruments. Therefore, the border patrol, customs agents when they see them there is no violation because they're not part of the money that you're required to declare. And they can't read them, which is a big problem. Basically we need to have transparency so that if a law enforcement agency looks at one of these cards, he or she knows how much it is worth.
Finding college cash in tough times
By Ben Kaplan – Founder of CityofCollegeDreams.org
Not too many years ago, I was caught in the classic middle-income financial-aid crunch. The obvious options: take on piles of debt or settle for a much cheaper school.
Fortunately, I stumbled upon a third way: Over the course of my senior year in high school, I applied for three dozen scholarship awards. With a healthy dose of determination, some dogged detective work, and more than a little elbow grease, my efforts paid off. When the dust settled, I had accumulated more than two dozen scholarships worth $90,000-enough for me to attend Harvard University virtually for free.
These days, I answer thousands of questions on the topic at my CityofCollegeDreams Web site and at my national "Paying-for-College Pajamas Workshops." Here are answers to four of the most frequently asked questions.
Q: Are scholarships only for exceptional students?
Many students mistakenly assume that they must have sky-high GPAs or amazing SAT scores to win merit scholarships. Although some scholarships use grades and test scores to evaluate merit, others use criteria such as extracurricular activity participation, leadership ability, community service involvement, obstacles overcome, family affiliations and much more. Contrary to popular belief, "merit" is not another word for "academics."
Q: When should I begin looking for scholarships?
For many students, the process begins during the junior and senior years of high school. The earlier you can start, the better. Some students may want to start searching as early as seventh or eighth grade because of the many learning contests for younger kids that include scholarship awards (usually as a cash prize or U.S. savings bond).
But it's never too late. Once students select their academic majors and potential career paths in college, a wide range of corporations, foundations, professional associations likely offer scholarships in those fields. There are a lot of scholarships for adult returning students, too.
Q: How can I find scholarships on the Internet?
A nice way to get your feet wet is with free Internet scholarship search databases. You fill out questionnaires and these databases match you up with scholarships that fit your personal characteristics.
Just one big piece of advice-none of these databases are comprehensive, so search as many as you can. To start, go to www.CityofCollegeDreams.org and use my free "Scholarship Surfer" tool to connect with and optimize these helpful resources.
Q: Is it really worth all of the work?
For every dollar of scholarship money you receive, you can potentially save more than two dollars in student loan principal and compounded interest. Better yet, by avoiding substantial student debt, you will open up a wide range of exciting opportunities and possibilities when you graduate. In the final tally, it's a simple equation: More scholarships = less debt = greater freedom. That's powerful motivation, to say the least.
Ben Kaplan is the creator of the new DVD, "Finding College Cash in Tough Times." He is hosting a free scholarship workshop on June 18 at 9:00 p.m. EDT that you can watch online or listen to on the telephone. Visit http://www.CityofCollegeDreams.org/workshop for more information.
What's on Tap – Wednesday June 10, 2009
Hey everyone, here's today's top stories we'll be covering on the show:
- There is breaking news this morning of engine trouble forcing an Airbus to make an emergency landing. Spain's airport authority tells CNN the jet experienced engine trouble shortly after taking off from the Canary Islands and was forced to turn around. The flight was heading for Oslo, Norway and was in the air for a total of ten minutes. A spokesperson says there were no injuries on board and denied reports that the engine caught fire.
- An FAA whistleblower – saying he was ignored – when he warned the agency about safety problems in a plane that fell from the sky a few months ago outside Buffalo. It's an interview you won't see anywhere else this morning.
- If you buy it, you have to pay for it. That's the spending plan the president is pushing Congress to pass. It's called PAYGO – pay as you go – but Jim Acosta tells us the simple concept is already getting complicated.
- And a CNN exclusive: Scott Roeder – the man charged with murdering a Kansas abortion provider – talking with our Ted Rowlands. The jail cell interview you won't see anywhere else.
We Listen!
Tuesday’s American Morning audience scolded Republicans for their constant “railing against the president and the Democrats,” suggesting that more would be achieved if the parties worked together. Others found Governor Palin and former Speaker of the House Newt Gingrich poor representatives of the GOP.
- Jonathan: If the Republicans spent as much time trying to fix this country and actually come up with solutions as they do railing against the president and the Democrats, then there would be a lot achieved in America. Republicans care for the big corporations and the greedy, not the hurting and the needy.
- Al: If Palin is all that the republicans have to put out there, then the party is in real trouble. It's a shame that our leaders have been reduced to polished, staggering idiots. She will end up finding her groove with the media, and we will not really know the real doofus inside. I'm sure she is a nice person (skeptical about this), but wouldn't Colin Powell be a seasoned individual with morals we can depend on in making decisions that lead our country? A real shame.
- Jeff: Hey guys I heard your political commentators say Palin needs to get her problems back home fixed. She has been cleared of all charges brought to court. Maybe you guys aren't the most news in the morning!
What do you think about how the Republicans are or are not working with the Democrats? What would you like to see the Republicans do differently or the same?
Heath care minefield
One person who knows the health care minefield well is Mike Lux. He was a special advisor to the president during the Clinton administration and worked inside the “Health Care War Room.” As Lux told me, “He has the scars to prove it.” Lux, who also served on the Obama transition team, says the current White House has learned from the “mistakes” of what was once called “Hillary Care,” the former first lady’s ill-fated fight for national health care reform.
He says the Clinton administration made the mistake of crafting a complicated plan behind closed doors before dictating the policy to Congress. This time around, Lux says the Obama White House deserves credit for allowing members of Congress to work out the details. But he cautions the president may need to use some “muscle” in the end. He’s doubtful Republicans will come on board to support a plan that offers the option of a government-run health care plan. At the end of the interview Lux told me, if Republicans don’t come on board the Obama administration may have to “roll these guys.”
Gulfstream International denies allegations of safety violations
[cnn-photo-caption image=http://i2.cdn.turner.com/cnn/2009/images/06/09/chernoff.hacket.art.jpg caption="David Hackett, President and CEO of Gulfstream International, denies allegations against the company."]
By Allan Chernoff – CNN Sr. Correspondent
– Regional airline challenging FAA proposed fines
– FAA to monitor training programs
Gulfstream International Airlines' chief executive is denying allegations from current and former employees that the regional carrier has repeatedly violated safety rules in an effort to save money.
"Safety is our top priority," said David Hackett, President and Chief Executive Officer of Fort Lauderdale-based Gulfstream, which operates Continental Connection flights in Florida and the Bahamas.
Former and current Gulfstream employees have alleged to CNN that the airline has allowed maintenance issues to fester rather than properly repairing aircraft, and that pilots have been pressured to fly beyond Federal Aviation Administration limits designed to prevent pilot fatigue.
"There's nothing that would be acceptable about pressuring a pilot to fly an airplane he felt unsafe about," Hackett told CNN.
The FAA has proposed a $1.3 million fine against Gulfstream for alleged maintenance and scheduling violations, a move that Gulfstream is challenging. The FAA cited Gulfstream for repeatedly scheduling pilots and flight dispatchers to work past mandated limits. Gulfstream concedes there were discrepancies between pilot logbooks and the company's computer system that tracks hours, but only one actual duty time violation of a pilot accidentally being scheduled to work eight days in a row.
Former Gulfstream schedulers and pilots, however claimed to CNN, that dispatchers were pressured to 'shave pilot hours' from prior flights so pilot flight schedules would not exceed FAA limits, such as 8-hours within a 24-hour period.
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