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ERIN BURNETT OUTFRONT

U.S. Breaks Code In Al Qaeda Message; Interview with Rand Paul; FBI: More Victims For Alaska Serial Killer; Gun Sales Surge In Newtown After Shooting; Family Mourns Victim of Facebook Murder; Florida Sinkhole Almost 120 Feet Wide

Aired August 13, 2013 - 19:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


ERIN BURNETT, CNN ANCHOR: "OUTFRONT" next breaking news. We now know how U.S. intelligence officials discovered a possible al Qaeda attack on American embassies. They cracked their code. That news top of the hour.

Plus, Senator Rand Paul comes "OUTFRONT." We'll talk birthers, Sarah Palin, and a comment about tapping your phone that will probably surprise you.

And a serial killer goes on a cross-country murder spree. Tonight the chilling and terrifying video "OUTFRONT."

Let's go "OUTFRONT."

Good evening, everyone. I'm Erin Burnett. OUTFRONT tonight, we begin with the breaking news, CNN reports that U.S. intelligence officials intercepted communications that signaled an imminent terrorist attack on Americans. Those intercepts led to the unprecedented closing of 19 U.S. embassies and consulates around the world.

Barbara Starr broke the news and she's at the Pentagon tonight. Barbara, what more can you tell us?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, good evening, Erin. They are not only intercepts, but those intercepts by all accounts now contain code words that signaled an attack might be imminent, this according to a U.S. source who has an understanding and access to the latest intelligence about all of this. Code words that signaled an attack might be imminent, but they didn't have an exact time, date, place and they didn't know what U.S. installation might be hit.

So that is what led to the closing of some 22 embassies and consulates across the Middle East and North Africa until they could narrow it down to Yemen. Now we see that focus on Yemen. We've seen a number of drone strikes in recent days going after suspected al Qaeda terrorists, but it all began with these intercepted communications and, of course, there's the irony, it was intercept conducted by the National Security Agency, which is under so much criticism from so many quarters now -- Erin.

BURNETT: All right, Barbara Starr, thank you very much for that breaking news.

I want to bring in now Texas Senator Rand Paul. He has a new book called "Government Bullies, How Everyday Americans Are Being Harassed and Abused and Imprisoned By The Feds." Senator Rand Paul, thank you so much.

SENATOR RAND PAUL (R), KENTUCKY: Glad to be with you, Erin.

BURNETT: So you just heard Barbara Starr talking about, now reporting they clearly say there were intercepted communications that helped stop a possible plot on American interest and embassies. Does that make the NSA surveillance program worth it?

PAUL: Well, the thing is, I don't think there's been any evidence that anything intercepted from the program of spying or collecting American data has ever uniquely been used to stop any terrorism. You know, they had a discussion with Senator Leahy and the committee and they talked about 50 plots and then it got down to 15 and 4 then it was one.

BURNETT: How many had been explicitly stopped because of --

PAUL: I'm not against tapping phones of people you suspect to be terrorists. All I'm for is calling a judge first. I'm not for looking at all American's records, but if an American is involved call a judge. It's not that hard to get a warrant. We fought a revolution over separating the powers, not letting police get warrants. You have to call a judge.

BURNETT: And now one of the things the United States has done in response is close the embassies and there's been this unprecedented spate of drone attacks that happened in the last week, ten days. A lot of people have been killed and only a couple of terrorists. And you can read into that what you will what that might do to the United States. You've said before me you are against drone strikes unless there's an imminent threat against Americans so if we intercepted communications that there was a possible plot. Is that an imminent threat? Does it justify the drone attacks?

PAUL: You know, it's not really technology that I'm opposed to. For example, using drones in warfare against our enemies to save our soldiers, doing it to disrupt a plot, I think there are uses and I'm not opposed to using drones. I am opposed to and think that using large-scale drone use against non-combatants ultimately may not be good for the country because it ultimately may lead to more enmity that it cures.

BURNETT: Now, Sarah Palin was recently asked about something else, not about drones, about the feud, the feud. I'll just use that word for fun here.

PAUL: I am from Kentucky so we are used to feuding. We can hold a grudge for a long time, but I'm kind of wanting to get rid of the grudge now. I want to make up --

BURNETT: Make up with Chris Christie. PAUL: That's right. I've offered him a beer. We can have a beer summit. I know he's busy. I could even come to New Jersey for him and I might buy the beer and I'm notoriously very cheap. And I would offer to buy the beer.

BURNETT: Offer to buy the beer for Chris Christie. He might like that. He's got some vacation coming up. I want to play something that Sarah Palin said about this because this sort of puts you in an interesting spot. Here is Miss Palin.

(BEGIN VIDEO CLIP)

SARAH PALIN: I'm on Team Rand. Rand Paul understands, he gets the whole notion of don't tread on me, government. Whereas Chris Christie is for big government and, you know, trying to go along to get along in so many respects.

(END VIDEO CLIP)

PAUL: I love an endorsement by Sarah Palin. What's not to love?

BURNETT: All right, so you're happy. You're happy she's on Team Rand.

PAUL: Absolutely. Team Rand, you know, whatever that means can include a lot of people. What I've been telling people is that I want to grow the Republican Party and that means that some of the libertarian ideas of respecting people's privacy, respecting the fourth amendment, not spying on Americans, I think that appeals to a lot of young people and will bring new people into our party if we become the party of privacy. It's hurt the president significantly.

BURNETT: Right. You know, it's interesting when you say that, though, as a libertarian you've got a tough issue because one of the things that defines the Republican Party is social issues where the government intrudes or has decisions about what people do. That's exactly the kind of thing that a big-tent Republican Party might not be able to hold on to keep winning a national election, right?

I'm talking about let's just throw it out there about gay marriage, for example. What are you going to do for gay marriage? Because to win the general you might need to be for it, to win the primary, you may have to be against it.

PAUL: Do I have to do something?

BURNETT: At some point in the primary debate you're going to be forced to answer it, right?

PAUL: Part of the Republican Party being bigger is we agree to disagree. Maybe in Kentucky, we still believe in traditional marriage, part of our constitution. Maybe in New York they have a different point of view but maybe we agree to disagree as a union. Some of that sort of our ideas of federalism that different states can have different definitions on maybe some of the cultural things that affect our country that we don't always agree on is so that we agree to disagree and then maybe we can become a big party. I'm not one that sort of --

BURNETT: You might, look, President Paul, I'm not going to take a stand on there. I'll leave it to the states.

PAUL: That's where I am. I don't think there should be a connection of marriage to the federal government.

BURNETT: Now we're three years away from the presidential election, right? Obviously, I know you've talked about it. You are talking to your family and making your final decision. Senator Ted Cruz from Texas already made two trips to Iowa. You know this whole situation, right? He was born in Canada to a mother who was from Delaware so she was a natural born American and a father born in Cuba at the time. So, the law, we looked into it, says he should be eligible to run for president. Do you agree?

PAUL: You won't find me questioning his eligibility. I decided a long time ago I wouldn't be a birther. I'm not a birther for Democrats. I'm not a birther for Republicans. I'm staying out of that.

BURNETT: That's a smart move.

PAUL: I'm saying out of that one.

BURNETT: There's nothing good about being a birther. All right, Senator Paul, thank you so much. It's always good to see you and finally in person here on our set in New York.

PAUL: Glad to be here.

BURNETT: Still to come explosive new details about San Diego Mayor Bob Filner tonight, CNN has discovered that come of his activities may have been funded by taxpayers. That investigative report is next.

Plus a serial killer murders victims on a cross-country spree. We're going to show you his interrogation video.

The DOJ blocking a proposed merger between American and U.S. Airways so what does the deal specifically mean for the cost of your next flight?

And winners of the Powerball jackpot have finally come forward.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We're a happy bunch of group. We're very happy, happy, happy as some of my friends would say.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

BURNETT: Our third story, OUTFRONT, following the trail of a serial killer. The FBI releasing new information about 34-year-old Israel Keyes, you see him there. He confessed to as many as eight murders across the country last year. Investigators have added three more people now to Keyes' list of victims so the count is now as many as 11.

Keyes committed suicide in December while awaiting trial and without a suspect to question federal agents are left with more questions than answers, how many more people, where? Nick Paton Walsh is OUTFRONT.

(BEGIN VIDEOTAPE)

KEYES: The only person I ever shot was Bill Courier.

FELDIS: Everybody else was strangled?

KEYES: Yes. Yes.

NICK PATON WALSH, CNN INTERNATIONAL CORRESPONDENT (voice-over): The FBI may never know if Israel Keyes simply enjoyed the murder of strangers like Samantha Coney seen here in the Alaskan coffee shop she worked in moments before he led her away. But today they revealed he may have murdered as many as 11 people. Keyes strangled Coney here in his girlfriend's shed. He positioned her corpse to look alive and then sent a photo to her parents demanding a $30,000 ransom.

It was the last arrogant and careless act of a killer police described as usually meticulous in planning, it led to his arrest and an interrogation. The scale of his decade-long rampage began to emerge where he buried his guns and which lakes he hid victims.

KEYES: Those caches aren't related to any -- I mean, that -- that one in New York was the only one directly related to a murder as far as I know. The guns are -- some of the guns were stolen. They've never been to the bottom of it. People have gone out to the lake.

WALSH: He admitted to seven other murders including Bill and Lorraine Courier who he shot and strangled in Vermont in 2011. Once caught, the FBI said he wanted the death penalty fast and killed himself rather than wait in jail. But not before he gave the FBI tantalizing slim hints about another possible three murders even his suicide note raised hopes.

JEFF BELL, FBI: I was optimistic when we found the notes crumpled up in his hands underneath his body soaked in blood. I was hopeful that those notes were going to give us leads as to who the other victims were and where their bodies could be found. I also think that he purposely did that for us to find. However, it was just some ramblings, I would describe as mostly song lyrics from what we could gather, just gibberish.

WALSH: Mysteries and pain he enjoyed taking to his grave. For OUTFRONT, Nick Paton Walsh, New York.

(END VIDEOTAPE)

BURNETT: And now the fourth story, OUTFRONT, arming Newtown. Tonight, the governor of Connecticut, which is the state with the toughest gun laws in the country, is being honored for his efforts to pass even further gun control measures. But this honor ironically comes as gun sales in the town of Newtown have surged since the horrific elementary school shooting there. Poppy Harlow is OUTFRONT.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Hi. I'm Nancy.

UNIDENTIFIED MALE: Hi. Pleased to meet you.

POPPY HARLOW, CNN CORRESPONDENT (voice-over): She's a grandmother who is about to become a first-time gun owner.

UNIDENTIFIED FEMALE: This way is easier.

HARLOW: Nancy Elis says the new gun laws passed in Connecticut among the toughest in the country are a big reason why she's buying her first firearm.

NANCY ELIS, NEW GUN BUYER: Our rights are being slowly infringed upon and that this whole idea of controlling guns has not -- has come to my backdoor. In other words, there could be a time when I may never be able to get a firearm.

HARLOW: Elis lived in Newtown for 28 years. Her desire to own a gun is part of a spike in the state. Newtown vividly remembered for one of the worst gun massacres in U.S. history is on track this year to double the amount of pistol permits it issued last year.

DAVID ACKERT, FOUNDER, NEWTOWN ACTION ALLIANCES: I'm concerned that it can get out of hand. Nancy Lanza had quite an arsenal in her home. You only have two hands, how many guns can you fire at once?

HARLOW: Dave Ackert and Monte Frank are members of Newtown Action Alliance, pushing to curb gun violence.

MONTE FRANK, NEWTOWN ACTION ALLIANCE: There's a perception that the government's going to come and grab all their guns, or it's going to not allow them to purchase certain guns.

HARLOW: Newtown resident Ryan Delp owns multiple guns, but did not want to show them on camera out of respect for the Newtown victims.

You went out and you bought another gun after the shooting at Sandy Hook Elementary. Why?

RYAN DELP, NEWTOWN RESIDENT AND GUN OWNER: That was 100 percent driven by the legislation I anticipated would be passed. It's my responsibility to take care of and protect my family.

HARLOW: It's hard for Gil Russo (ph) to understand as he grieves the loss of his daughter Lauren killed at Sandy Hook.

GIL RUSSO, DAUGHTER KILLED AT SANDY HOOK: It hurts in a different way. I had my first dream with my daughter was in the dream just about a week ago. And I said Lauren is dead, how can she be there? She's dead.

HARLOW: What do you think when you see these numbers?

RUSSO: It's sad. It's really sad. There's no other words to say it. It makes me sad to think that people will -- they feel that they're protecting themselves, but they're just adding to the problem.

HARLOW: There was also a surge in gun sales in Colorado following the Aurora movie theater massacre. And after the 2011 mass shooting in Tucson, background checks for gun purchases in Arizona spiked. While Nancy Ellis grieves for the victims of the tragedy in her own backyard --

NANCY ELLIS: My heartbreaks for them. It truly does.

HARLOW: -- for her, this is about protecting her rights for her.

ELLIS: Did the guns cause the tragedy? No. It is the person behind the gun that caused the tragedy.

HARLOW: For OUTFRONT, Poppy Harlow, Newtown, Connecticut.

(END VIDEOTAPE)

BURNETT: All right, in Money and Power tonight, stop right there because a big airline merger was blocked today. This is important. The U.S. Justice Department and attorney generals from six states have filed a lawsuit challenging the proposed $11 billion combination of American Airlines and US Airways. They say that would lead to higher prices and worse service, which often happens in airline mergers. Morningstar analyst (INAUDIBLE) Lucas agrees, said the airfares actually would go up.

Both airlines, though, say they're going to fight the government's attempt to block the deal. They say it makes sense because after all, they say, look, this merger is going to create the world's largest airline that has all kinds of efficiencies.

But is that really why they want the deal to go through, or is it maybe a little bit because of this? If the deal closes - get ready for this, people -- it means a massive payout for the current CEO of American Airlines. His name is Tom Horton. He'll leave once the deal is done, getting a nearly $20 million severance package. $20 million. To leave. Wow.

Still to come, the mayor of San Diego under fire. Allegations of sexual harassment, but tonight an OUTFRONT investigation on whether he used taxpayer dollars to fund his liaisons. This is incredible reporting.

And the latest from the massive sinkhole that opened beneath that Florida resort. It's a lot bigger than we originally thought.

And a man almost drowns in outer space. His wife watches. We'll explain.

(COMMERCIAL BREAK)

BURNETT: Our fifth story OUTFRONT: a CNN investigation revealing damaging new details in the scandal about San Diego mayor Bob Filner. Filner, of course, is accused of sexual harassment by more than a dozen women. And now CNN has discovered that some of Filner's activities may have been funded by taxpayers.

Kyung Lah has this OUTFRONT investigation.

(BEGIN VIDEOTAPE)

KEVIN FAULKNER, SAN DIEGO CITY COUNCILMAN: Unfortunately we have a mayor who is out of touch with reality.

KYUNG LAH, CNN CORRESPONDENT: Out of touch in every way, says San Diego city councilman Kevin Faulkner, who's now demanding answers about this. CNN obtained Filner's city credit card statements from January to May, all paid by taxpayers.

What are these, do you think?

FAULKNER: I mean, when you see statements like this, it raises the question of is city business being done or not? You need to get to the bottom of this. He doesn't think that the rules apply to him.

LAH: Expenses investigators are very interested in: over five months, $511 spent at the Westgate Hotel, at least one charge was on a Sunday. The mayor's office is over here at the city administration building. The Westgate Hotel, right across the street just steps away. The regulars at the bar tell us that the mayor was often here, and usually with a different woman every time.

Why that matters? The U.T. San Diego reports the mayor's security detail told investigators Filner took women to the Westgate. Faulkner, a Republican and on the city's audit committee, is also looking into a junket Filner took to Paris that appears to have little to do with San Diego. Faulkner said it cost taxpayers $30,000. Filner has promised to pay it back, but so far, no proof of a refund. Other credit card charges that raised red flags to Faulkner, $3,000 to an online reputation management firm. And oddly, $128 for a juicer.

ANNOUNCER: You can turn ordinary food into superfood.

LAH: We tried again to talk to Filner's chief of staff, Lee Burdick.

LEE BURDICK, FILNER'S CHIEF OF STAFF: No comment, folks.

LAH: She still doesn't have anything to say to us, but she spoke at a luncheon meeting. When asked if the mayor can still lead --

BURDICK: I don't know if you know this, but the mayor has not resigned yet. And consequently, I have drawn the conclusion that, yes, he does believe that he has the way to achieve the objectives set out in his vision.

(END VIDEOTAPE)

BURNETT: Now, Kyung, just incredible when they talk about a different woman being with him every time he was at the Westgate. I know his administration says, back off, we can still run this city. It's the eighth biggest city in the country. It's a huge city. You've seen some really different reactions from the community, though, right?

LAH: Yes. Certainly we're hearing it, and we are seeing it. We actually saw visible display at a restaurant in downtown San Diego. Here it is, a restaurant, Hooters, known for, well, you know, the name says it all. Look at the sign that it posted on its front door, reading, "It is imperative people have standards. The mayor of San Diego will not be served in this establishment. We believe women should be treated with respect." Hooters Corporate did release a statement to CNN saying, quote, "We support our girls."

Now, a little context here. This was inspired by a conservative radio host here in San Diego encouraging businesses to print out the sign. Hooters taking up that call. Erin?

BURNETT: Thank you very much. I was rooting for them until they called them girls. Anyway, OK, thanks, Kyung.

And still to come a man allegedly murders his wife and then posts a photo of her body on Facebook. We're learning more about the victim tonight that we'll share with you.

Plus, the latest of the massive sinkhole that opened under the Florida resort. Officials are talking about the trend tonight.

And a group of public employees claim a huge Powerball prize. What Ocean's 16 plans to do with the money.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I'm just going to continue watching NASCAR racing on Sunday. Maybe I'll be at my log cabin on multiple acres of land.

(LAUGHTER)

(END VIDEO CLIP)

(COMMERCIAL BREAK)

BURNETT: Welcome back to the second half of OUTFRONT, where we begin with stories where we focus on reporting from the front lines.

I want to begin with two friends of the Boston Marathon bombing suspect Dzhokhar Tsarnaev. They pleaded not guilty to obstructing justice today. (INAUDIBLE) are accused of taking items from Tsarnaev's dorm room after the April 15th bombing. A lawyer for Kadyrbayev says his client had no intent to assist Tsarnaev, but legal analyst Paul Callan tell us this Kazakh nationals will not be viewed as local college kids who deserve a break. He says there's sufficient evidence to convict and their best strategy would be to negotiate a plea deal.

Well, 12-year-old boy in Florida has contracted a deadly brain- eating amoeba. Zachary Reyna's family tells CNN affiliate WBBH that he became ill after knee boarding with friends in a water-filled ditch. This is a second case of a brain-eating amoeba in less than a month. The amoeba is actually found naturally in freshwater lakes, rivers and hot springs usually in the south although the CDC tells us more cases are popping up as far north as Minnesota.

The amoeba enters through the body through the nose and then travels into your brain. While contracting it is rare, surviving it is even rarer. Here are the statistics. Of 128 cases over the past 50 years, only two have survived. The CDC recommends wearing nose clips when swimming in that still water.

Well, a huge move for Apple today and it all came from a tweet. Billionaire investor Carl Icahn tweeted, I'll quote him, "We currently have a large position in Apple. We believe the company to be extremely undervalued. Spoke to Tim Cook today, more to come."

Assuming loaded up and loaded up a little bit more after he did that, because, well, then the stock popped. Tim Cook is Apple's CEO and that tweet sent Apple shares up 5 percent. Pretty nice when you think about how much money Carl Icahn probably put into it. Anyway, it closed at a six-month high of $489 a share.

Top analyst Gene Munster of Piper Jaffray has one of Wall Street's higher priced targets of Apple. He thinks that stocks are going to go up another 34 percent to $655. Part of the reason why he thinks Apple is going to launch, get this, a watch.

Well, today's International Left-Handers Day. Now, this is a big day for people like me, southpaws as we're called. Apparently, 10 percent of the population is left-handed like me. Studies have found lefties tend to be better at multitasking. And have a distinct advantage at certain sports. I like to focus on the positive. We do also apparently die earlier.

Plus, for many years, left-handed people were considered evil, witches and warlocks and even today we are discriminated against. Did you know that left-handed products cost 65 percent more than their right-handed counterparts? I mean, are you kidding? Which is why I learned to do things like use scissors with my right hand because that inflation is just a total rip-off.

It has been 738 days since the U.S. lost its top credit rating. What are we doing to get it back?

Well, corporate America continues to have an enviable balance sheet. According to "Bloomberg", 72 percent of companies have reported better-than-expected profits this quarter.

And now, our sixth story OUTFRONT: the murder posted on Facebook. Today, the funeral was held in Florida for Jennifer Alfonso, whose gruesome death was posted on Facebook allegedly by her husband Derek Medina. Medina confessed to the killing on Facebook, posted the picture of his wife after he shot her, went, changed, saw his father and then decided to turn himself in.

Who was Jennifer Alfonso and how is he being remembered?

David Mattingly is OUTFRONT with her story and I do want to warn you because of the specific nature of this story, the picture that you will see is disturbing.

(BEGIN VIDEOTAPE)

DAVID MATTINGLY, CNN NATIONAL CORRESPONDENT (voice-over): Jennifer Alfonso's lifeless body photographed and posted within apparent confession by her husband turned thousands of Facebook users into unwitting witnesses to a murder. Days later, strangers and acquaintances alike returned to Facebook seeking comfort.

PARRY AFTAB, INTERNET SECURITY ATTORNEY: The same people who may have witnessed the murder or witnessed the confession of the murder are now also there to pull together and grieve for the victim.

MATTINGLY: Just as memorial services in Miami brought tears to grieving friends and family, those moved by her death from all over the world, used social media to express their sadness. From Paris, "My prayers for you angel." From Thailand, "Rest in peace, Jennifer Alfonso."

Friends post photographs of the young woman they remember, in happier times. "We'll always remember her smile," posts one friend. A former customer from when Alfonso waited tables writes, "She was a person that would light up a room."

KAREN NORTH, CENTER FOR THE DIGITAL FUTURE: This is absolutely Facebook at its worst and at its best. The idea that somebody could post a picture of a dead body, that's absolutely the worst. And then at its best, it allows people to share in the caring for her and for just the situation even of a stranger.

MATTINGLY: It also allows people to vent their feelings toward her alleged killer. Alfonso's husband Derek Medina turned himself in to police and is held without bond, facing first-degree murder charges. One person writes, "I hope he gets death row. Justice for Jennifer will come."

But most noticeable on the Facebook page "RIP Jennifer Alfonso" is a quote attributed to Alfonso's mother, thanking everyone, saying, "If you would have known her, you would have loved her even more."

(END VIDEOTAPE)

MATTINGLY: Alfonso died in such an extreme act of domestic violence. As you might guess, the number -- there are a number of people who are survivors of domestic violence responding to her Facebook page today. One woman expressing that she didn't believe this was real until she actually saw this memorial page and realized this was an actual murder, Erin.

BURNETT: It's unbelievable.

David Mattingly, thank you.

And now our seventh story OUTFRONT: sinkhole scare.

An Orlando resort on edge tonight. Experts saying that sinkhole that swallowed part of the property is now almost 120 feet wide. The earth under the resort first opened up Sunday night and, miraculously, none of the guests were injured, they were able to evacuate when they heard cracking noises. Some are crediting just one specific man with saving their lives.

Martin Savidge is OUTFRONT.

(BEGIN VIDEOTAPE)

MARTIN SAVIDGE, CNN CORRESPONDENT (voice-over): The first emergency call caught even the 911 operator off guard.

911 OPERATOR: Where is the patient located at?

CALLER: It's not a patient. We have a building that potentially collapsing.

SAVIDGE: It was almost unbelievable -- a sinkhole was swallowing an entire resort building even as guests struggled to get out.

It was a disaster at the busy Summer Bay Resort just miles from Disneyworld. But it didn't become a tragedy thanks in large part to this man, Richard Shanley. Just five minutes into his night shift, the security guard was flagged down by a guest who said there was a problem in building 104.

RICHARD SHANLEY, RESORT SECURITY OFFICER: They kept hearing noises, popping and cracking noises in the building, and then I heard glass shattering from the second and third floors.

SAVIDGE (on camera): So, as a security officer, you're thinking what?

SHANLEY: I thought it was a domestic disturbance, somebody had gotten mad at somebody and busted a window.

SAVIDGE (voice-over): Once inside, Shanley realized there was no fight, the building was sinking with everyone in it. He quickly spread the alarm.

SHANLEY: One lady had a child they didn't get out of the room. They actually had to bust the window to get them out because the door had twisted when the building started to cave in on itself. They busted a window and got everybody out and they ended up coming down the stairwells. SAVIDGE (on camera): These are people that are panicked.

SHANLEY: Yes, sir. They are on vacation. They didn't actually expect this at all. Neither did I.

SAVIDGE (voice-over): Everyone made it out, thanks to a man who without hesitation jumped aboard not a sinking ship but a sinking building.

SHANLEY: I just did my job. I thought about everybody else before I thought about myself.

(END VIDEOTAPE)

SAVIDGE: A private engineering firm that has been hired by this resort has given an initial report. It says that the sinkhole is stabilized. It's not growing. Also says that they don't believe there are any other sinkholes located on this property.

As a result, the resort says two buildings that were closed out of a precaution. They expect to have reoccupied come the end of the week. But the engineer pointed it out that there's no real way to know for sure there aren't any sinkholes unless you drill a hole about every 100 feet, something not really feasible when you've got 400 acres of land -- Erin.

BURNETT: That's what's just so amazing about this all to me, Martin, you got to drill every 100 feet to know there's a sinkhole when you think about the sinkholes opening up in so many places. I mean, that's incredible.

SAVIDGE: Yes.

BURNETT: All right. Thanks to Martin.

And a big day in New Jersey. A group of workers from Ocean County dubbed Ocean's 16, claimed their share of last week's $448 million Powerball jackpot. Nine women and seven men, they work in the counties vehicle maintenance department, opted for the lump sum. So, they got $86 million to split and what it comes to each after taxes is $3.8 million.

Now, a lot of times with these wins, the winners get so much money, they don't know what to do with it. The results aren't always great. So, it's really nice to see these 16 people knew exactly what they needed.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We lost our home in the storm. I was just renting. I didn't own it, but we lived there for five years, me and my daughter. So, now, I stay with my brother for a few months and got a little apartment above a storefront. So the first thing I'm going to do is buy me and my daughter a home.

UNIDENTIFIED MALE: I lost my mom to cancer and my dad's going through it right now. And that's what's the first place where I stopped was pop's house. Start crying in front of him and told him I loved him. And you got nothing to worry about now except getting better.

(END VIDEO CLIP)

BURNETT: Hmm. Has a happy ending for everyone, which brings us to tonight's number: $30,000, which is the amount of money the Acme Supermarket in the town of Little Leg Harbor, is going to get, including the millions that go to the Ocean 16, the store that sold the winning ticket also gets a bonus, which we thought was sort of a cherry on the top.

Still to come, if you don't speak English, should you be barred from serving on an American jury? A major verdict was just given. On this our panel weighs in.

And authorities say the resort built on top of a high-rise building is unsafe. Look at that. This is apparently a major resort. But apparently it can top over at any moment. A special resort next.

And a shout-out tonight: a close call with death. Italian astronaut Luca Parmitano was conducting a space walk last month when water started to seep into his helmet. It took him 20 minutes to get back into the International Space Station's air lock. Meanwhile, his wife was watching it all happen on the earth, at mission control in Houston.

The shout-out goes to the astronaut who managed to stay calm through the ordeal even while he was at risk for drowning in space.

(COMMERCIAL BREAK)

BURNETT: And we're back with tonight's "Outer Circle", where we reach out to our sources from around the world.

And tonight, we go to Beijing. Officials have ordered the removal of an illegal of a faux mountain retreat. OK? Now, you just heard me -- faux mountain retreat. But this mountain retreat is built on top of a residential high-rise. All this added weight from fake rocks, trees and bushes is raising concerns that the building is not structurally safe.

David McKenzie is covering the story. He's a brave man, he went into the building. I asked him who designed the retreat.

(BEGIN VIDEO CLIP)

DAVID MCKENZIE, CNN INTERNATIONAL CORRESPONDENT: This building is causing a firestorm on social media here in China. A Chinese traditional medicine professor has built an enormous structure on top of his apartment.

For years, residents have complained to building management and beyond and they got nowhere. They said that there are cracks forming in the building. The structure of rock and trees could be a serious hazard, they said. But so far, nothing has been done.

With so many building violations, how could someone get away with this?

Well, one answer might be that state media reckons he's an influential member of the communist party.

Reached out to a Beijing newspaper, the professor said he might bring it down and that he's, quote, "a low-key guy."

David McKenzie, CNN, Beijing.

(END VIDEO CLIP)

BURNETT: All right. So many questions are being raised about a person's right to serve on a jury.

So, let me explain -- in New Mexico, the Supreme Court has just issued an opinion that reminded the state's trial courts and lawyers that citizens who do not speak English have the right to serve on a jury. The issue is raised after a man convicted of murder appealed his conviction because a judge in the case had excused a potential juror who spoke Spanish.

This raises the question whether Americans not fluent in English should serve on juries and what it means to be American.

OUTFRONT tonight: Dean Obeidallah, Stephanie Miller and Michael Medved.

All right. I'm very excited about this entire conversation. So, let me start with you, Dean.

DEAN OBEIDALLAH, COMEDIAN: Yes.

BURNETT: What do you think?

OBEIDALLAH: I think a couple things. First of all, being on a jury is not a right. It's an obligation. In fact, it's a burden most people don't want to go, like going to the DMV or the dentist or listening to a Donald Trump speech. It's painful, you don't want to do that.

But the reality is, New Mexico, they were right. In their constitution, in that state, it says jurors have a right to be on the jury if they don't speak English. Federal law, though, across the nation, including California and New York, you have to be fluent in English. And, of course --

BURNETT: So, it's New Mexico that stands out. OK.

OBEIDALLAH: It's their state constitution. So, they are right on that. But the rest of the case is not right because it makes the justice system a futile exercise and that's what courts have said frankly. If someone doesn't speak English, they don't know what's going on. You have a translator and if they mistranslate, it's grounds for appeal. It can slow down the process. They don't hear something. You have to read back over and over. Practically, it's not a good thing.

You have to be a U.S. citizen to be on any jury across the nation. So, you're already here for at least five to seven years. Learning English is important not for juries but for living here.

BURNETT: For citizenship.

OBEIDALLAH: Yes.

BURNETT: And, Stephanie, let me ask you, because as Dean said, you have to be a citizen to serve on a jury and that, of course, is true in all states. But we looked in to what it means, so in New Mexico, you can be on a jury and not speak English.

But in general in this country, to become a U.S. citizen, you have to speak English. You got to take an English test unless you're over the age of 50 or 55 and has been in this country for 15 or 20 years. Those are the only exceptions to the rule.

So English is required basically to be a citizen for almost everyone. But, again, those exceptions.

Why should this be any different?

STEPHANIE MILLER, RADIO HOST: Well, listen, I agree with Dean about trying to get out of jury duty. If this will do it, I'll pretend I only speak Moldavian.

But it just seems to me as problematic as it is, Erin, if you are a United States citizen, you know, you have a right to serve on a jury and I get that it's not, you know, always ideal and you might have to get a translator. But I think the bottom line is if you are a United States citizen, you are allowed to serve on a jury. You know, that's America.

BURNETT: Michael, what do you think about this? You know, you're eligible for jury duty, by the way, unless there's a few reasons but one of them is you are unable to speak English and the court can't get a translator or interpreter, as Stephanie points out. So, the interpreter is key.

Is this enough? Or, again, should you have to speak English yourself and understand it yourself clearly?

MICHAEL MEDVED, RADIO HOST: Of course, you should have to speak English and I hate to agree with Dean, but I went to law school also once upon a time.

And, look, the constitution in New Mexico which is very odd, it was -- New Mexico became a state in 1911. And in the constitution, it says specifically that Spanish-speaking people will be included on voting rolls and they'll be included in juries.

BURNETT: Yes.

MEDVED: But for the rest of the country, first of all, they ought to change the New Mexico constitution. But secondly, the whole idea that people have a tough enough time following what's going on in court, you really do. Jury duty can be very complicated.

And to throw in the extra expense and hassle of having to go through a translator, what this really does is it disadvantages any particular court proceedings that are taking place in English only, and basically, it makes it very tough for lawyers who are not bilingual. I don't think we should moving in the direction of a bilingual society. It hasn't worked so well for Canada. It hasn't worked out so well for Belgium.

Let's try to keep English as the one unifying core that ties us together as Americans in our court system, as well.

OBEIDALLAH: I think we should use the breaking news banner, because me and Michael actually agreed on something here. Bring Wolf Blitzer here. This is shocking --

(CROSSTALK)

MILLER: What is wrong with you two?

OBEIDALLAH: I disagree with Michael on one fundamental thing. I would use taxpayer's dollars to teach people English who want to learn English. I don't think Michael would want to waste money to do that.

I don't want to exclude anyone from jury duty if they're U.S. citizen. Intellectually, though, as a practical matter, as someone that tried cases for years as a lawyer, it is very difficult to have someone sitting there translating through ear piece.

MEDVED: Of the course.

OBEIDALLAH: It could slow things down.

BURNETT: Of course.

OBEIDALLAH: It could be basis for --

BURNETT: Mistranslation.

OBEIDALLAH: Mistranslation. It's a problem.

BURNETT: Yes, Stephanie. Final word.

MILLER: Erin, no offense but they are both lawyers. They are both lawyers, and I think we have to take that into account.

OBERIDALLAH: What does that mean? You're a comedian.

MEDVED: And we don't speak Moldavian, Stephanie. MILLER: You deserve to serve, period.

(CROSSTALK)

BURNETT: Final word --

MEDVED: This, by the way, this, by the way, is u one of the reasons among many others I support the Senate bill, the immigration reform bill, and I'm a strong supporter of that bill. One of the things that it does is it tightens up the requirement to master English, not just before you become a citizen. But you have to be -- in the Senate bill -- fluent in English before you even get a green card. And that really is a tremendous thing because it encourages people to join the mainstream of our society, which is what we really do want.

BURNETT: All right. Thanks to all three.

Let us know what you think, whether you should have to speak English to be on a jury or whether that is discriminatory.

Well, every night, we take a look outside the day's top story. You know, we call this the OUTFRONT "Outtake."

Well, today, German chancellor Angela Merkel, was the substitute teacher at a school in east Berlin. You see her there? Who is that guy toking up behind her? It was her way of showing she's a regular person as she heads into next month's general election. See, she wrote her name on the board -- comes days after Norway's prime minister, his name is Jens Stoltenberg, apparently spent the day working as a cab driver driving around regular citizens and apparently, paid actors.

Anyway, these students are not new. But it seems that Merkel and Stoltenberg perhaps going about this the wrong way. If you want to win over voters, you need to do what American politicians do. Well, that does sound sort of arrogant. But anyway, we'll just keep going, go to our news segment here.

How to relate to voters number: one, dress like us. What better way to put a potential voter at ease than by looking at us, cowboy hat, cowboy boots or some crocks (ph). OK, that's the way to go. We won't know you're not one of us if you dress like that, especially if you put socks with the crocks (ph).

Number two, talk like us. If you want to get your message across, you got to make sure voters can understand you.

(BEGIN VIDEO CLIP)

MITT ROMNEY (R), FORMER PRESIDENTIAL CANDIDATE: The governor said I have to say it right -- good morning, y'all. Good to be here. I started this morning with biscuits and cheese grits, I'll tell you.

(END VIDEO CLIP) BURNETT: Which brings me to number three: eat like us. It's just important for voters to know what is going on in your mouth as what is coming out of it. So, go to our diners and restaurants, chow on gumbo, grits and grinders. That's how you relate to voters.

You really show us how highly you think of us. You think we dress horribly, eat horribly. I mean, yes.

Of course, there are some things to avoid. For example, never participate in sports or recreational activities, because no matter which sport you pick, you'll simply come off as an elitist who is pandering. I know this seems like a great way to target voters, but the truth is when it comes to sports, your aim will always stink.

I hope this helps all of our foreign leaders and any of the U.S. candidates getting ready for 2016.

Still to come, one of America's favorite summer treats slushies, like you've never had them before.

(COMMERCIAL BREAK)

BURNETT: And now a new twist on an old favorite: slushies.

(BEGIN VIDEOTAPE)

BURNETT (voice-over): Sometimes it takes a stuffy corporate job to make you appreciate being a kid again.

ALEX REIN, CO-FOUNDER, KELVIN NATURAL SLUSH: Zack and I met as first year associates at a law firm, where we would often work late at night and kick around business ideas trying to figure out ways to kind of escape the rat race.

BURNETT: Alex Rein and Zack Silverman, two young lawyers in a big Manhattan law firm found their high demand grown up jobs made them nostalgic.

ZACK SILVERMAN, CO-FOUNDER, KELVIN NATURAL SLUSH: We were talking we talked about the fact growing up drinking sorbets and slushies and we really like them. But you sort of turn a certain age and you realize that you sort of can't take those big, like, neon cups into an office and be taken seriously as an adult.

BURNETT: Or can you? Slushies for grown ups was just a joke until the recession hit. Alex laid off from the firm and Zack then quit his job a couple years later and, suddenly, Kelvin natural slush became a livelihood.

REIN: Now, we had this idea. We had a business plan that we had been kind of working on and figured why not give it a shot?

BURNETT: They started small with a 2000 Chevy workhorse food truck they bought used for $10,000. The start-up costs were low but Alex and Zack had their share of problems. REIN: Last summer, in the middle of the summer, our engine like blew out. All we make is slush. So if those aren't working we're out of business.

BURNETT: But the guys toughed it out and it paid off. Kelvin Natural Slush Machines are now in Madison Square Garden in New York City, and in 22 Whole Foods in eight states. And for those who really want to feel ground up, Kelvin is offering an alcoholic version of the slushy, which is perhaps no surprise where the company is seeing the biggest growth. They expect to be profitable next year. But Alex and Zack are quick to remember their humble start. It was one of those early days when they were working feverishly out of their food truck that they knew they were on to something.

SILVERMAN: We had a long like 100 people long for six hours and we served like so many and people were waiting like an hour and a half to get a slushy. I think then we're like, maybe we have a good idea.

BURNETT: And nostalgic grown ups all over the East Coast seem to agree.

(END VIDEOTAPE)

BURNETT: "A.C. 360" starts now.