he's immediately banned from competing in triathlons which he's taken up since retiring from bicycle. he said i have been notified usada intends to dredge up discredited allegations dating back more than 16 years to prevent me from competing as a triathlete and try to strip me of the seven tour de france victories i earned. these are the same charges and same witnesses the justice department chose not to pursue after a two-year investigation. these charges are baseless, motivated by spite and advanced through testimony bought for and paid for by promises of anonymity. lance armstrong has never tested positive for performance-enhancing drugs before, but the doping agency said they collected blood samples in 2009 and 2010 that were, quote, fully consistent with blood manipulation, including epo or blood transfusions. what do you make of that? >> first of all, i don't think saying you've never tested positive as an athlete really means anything. we've heard that with marianne jones. the five-time gold medallist or however many mgold medals she won. she never tested positive and as it turned out, she was part of a systematic doping scheme. so that being said, i think the united states anti-doping agency is bringing charges that include more than just these weird blood levels that came up in 1999 or was it 2010 or something? it has more to do with doping conspiracy on the past teams that he used to ride for. and i guess multiple witnesses on each team, including multiple riders that said armstrong not only doped but encouraged doping and administered doping the times. so it's more than that he didn't test positive, which he didn't. it was more of an analytical way of saying he cheated. >> and this is a conspiracy that went on from 1996 through his entire career of some 14 or so years. talk a little bit about the u.s. andy doping agency, and its powers. what it can and cannot do. because it's different -- before it was the department of justice, which was bringing charges. they dropped all those charges and they're not pursuing it. but the bar is low fer this doping agency. >> exactly. it's much lower. the u.s. anti-doping agency gets money from the government, but has its own rules and could really bring charge against anyone it wants or sanction anyone it wants. the bar is much lower. as we know, the two-year long investigation of armstrong didn't go anywhere. but all that information and all those people that stepped forward during this investigation i guess went right to usada's door and they have all this information that they're using against armstrong. >> armstrong recently said that basically he wouldn't fight the allegations. he said i'm done. you can interpret that however you want. i'm finished, i'm done fighting. i moved on. do you think he's going to fight this? >> well, yeah, i read that, too, in men's journal and i thought, i'm not sure that's going to happen. we've seen lance armstrong deal with these doping allegations for more than a decade now and each time he's fought them to the end. each time they've gone away and he's won. there's no way freason for him back down now. his lawyer said they're going to look at the evidence that usada has against him and determine whether it's going to be a fair fight and i guess that might be a way of saying they might go forward with it or they might not. but my guess is that it will go forward and he'll fight it to the end. but, you know, it could be a new lance armstrong. >> and if they find him guilty on this, this is not legal charges but they could strip him of those tour de france titles and even the investigation prevents him of competing in triathlons, which we're seeing him compete in right now. >> yeah, if the charges are upheld, heel lose his seven tour titles and whatever titles he gained during that time. it also -- the usada case doesn't ban him from triathlons. it's triathlons own rules that any athlete under a doping investigation cannot compete. so that's not usada's fault. that's triathlon's fault that he won't be able to compete in france later this month and also in the ironman world championship in october. >> what do you think the ramifications of this are for his cancer charity. he's so well respected in that realm. if he is found guilty of this, what happens? >> personally, i don't think anything will happen. if he survives an investigation and that he was sort of a reng leader of the doping on some of his teams, i guess his cancer foundation survived through that people looked through inspiration. le will be an inspiration oompb r even if usada finds him guilty of doping. >> how long will this take? >> official it it will be 10 days before armstrong's lawyers respond to usada the best case scenario, and some of the cases with floyd landis or tyler hamilton, two of armstrong's former psych llg teammates, i think it lasted almost two years. so i don't think this is going to end anytime soon. >> yeah. appreciate you calling in with this. thank you very much, julia. day three in the jerry sandusky trial. again, incredibly disturbing allegations being levelled in court today. three more alleged victims took the stand. there's a disturbing portrait emerging in their story of an alleged sexual predator who had the perfect setup to groom vulnerable young boys for abuse. over and over, the same key details stand out. underprivileged boys in sandusky's second mile camps says they were given tickets to football games. each alleged unwant ed advances came with a touch of the leg in car rides. today, one witness accused sandusky of threatening his family if he ever spoke out. sandusky said he's innocent of the charges. i want to go to jason carroll at the courthouse with more. today we're hearing new information that sandusky may have actually threatened one of the victims. >> and that's what we're hearing, anderson, from the young man identified as victim number 10. he said in 1998, jerry sandusky assaulted him in the sandusky home saying he forced him to perform oral sex on him. he said, quote, he told me if i told on him he would never see my family again. he apologized for saying that. he said that he didn't mean it and that he loved me. another reason why this young man is interesting, the defense is saying a lot of these young men are trying to come forward and cash in in some way hiring attorneys to pursue some sort of a civil case. this is one young man who has not hired a private attorney. he said he is coming forward because he said, quote, it was at right thing to do. >> perhaps the most emotional testimony came sfr victim number five who said san dusty assaulted him in the shower. >> he said this happened when he was 12 or 13 years old. it was one of the most emotional moments of the day without a question. he described it this way. once he was in the shower, he actually tried to move away from jerry sandusky but could not get away telling the court, i crept forward a little more as he did. i felt his body on my back. i kept lurching forward but i dependent b have anywhere to go and i felt his arm move forward and he touched my genitalia. i was sitting there in the court, right to my left, just a few feet away, this young man, his mother and father were sitting next to me. as he tried on the witness stand, they began crying as well. it was an incredibly emotional moment, imfactful moment on the courtroom as well. >> thomas, your client gave emotional testimonies. we're hear that he's getting miked up on camera. as jason said, this was some of the most emotional testimony coming today from alleged victim number five. are you there? >> yes, i am. >> how is he holding up after testifying? >> he was leaved and is looking forward to kissing his girlfriend brittany when he gets home. my client is a remarkable young man and i saw in him the face of a victim of sexual abuse and what it does and how it impacts on a young man even as he's an adult. >> i'm trying to imagine what it's like testifying in front of the person you're accusing. did you watch sandusky today? how did your client deal with being face to face with sandusky? it was a remarkable exchange. i talked to my client. he told me how sandusky stared at him. when they were having an early discussion about the fact that my client comes from a polish family and sandusky spoke polish and the polish wasn't very good that sandusky spoke how sandusky was looking at him as though, almost in an adoring and to my eyes in an odd fashion. my client told me that he actually stared at him, sandusky stared at him during the entire testimony, almost as though my client felt that he wanted to make him uncomfortable. >> a number of the accusers have had some pretty tough cross-examination by the defense. that didn't happen from your client. why do you think? >> i believe that my client's testimony was bullet proof. there was nothing to cross-examination him on. the usual routine of mr. sandusky's defense council, which includes drugs and crime and the like, there's nothing here. i represent a young man who is a productive, solid citizen with a wonderful, loving family. his father and mother were in the second row center. he glazed at his mother and father. his family, two brothers flew all the way in from california. he is a wonderful girlfriend. and there wasn't anything to pick at. the only issue that was raised was in the investigation the investigators somehow got the date wrong and he was asked a question or two about it. but it was very clear that he was at second mile at a certain period of time and he saw mr. sandusky in 2001. i thought anderson, one of the most interesting thing that came out of the back to back testimony here that we've seen is that mike mcqueary testified that in february of 2001 he saw this incident and looked into the face of jerry sandusky. and here we have a similar incident in the shower some few months later from february to august. and i would say that conduct is down right brazen. >> do you think -- the dpvs has raised this idea that jerry sandusky has some sort of disorder, hysterical disorder. do you buy that? do you think this has any bearing on that? >> i believe that the conduct is classic predatory conduct. as i've said in many interviews today, i've never seen a man who liked to shower with so many young boys. the fact of the matter is the pattern here is classic predatory. he groomed the young men. he bought them gift, he took them to games. he got them tickets. he took them away. he got them in his car. and then what he did was he put his hand on each one's knee basically and found an opportunity wherever it texiste, whether it be in the shower or the basement of his own home while his wife was present. i don't believe that they will sell to this jury that he hasn't progressed beyond his teenage years and it's some kind of disorder. i don't see it happening. >> a histrionic disorder, not hysteria. >> yeah, i've heard -- sure, my pleasure, anderson. >> go ahead. you were saying you've heard? >> no, i'm sorry. i've heard various incapacity defenses that have been vetted, both publicly and otherwise, and they include that he hasn't gone beyond his teenage years, that he has this impulsive disorder. the fact of the matter is you have a man that was running the defense for one of the most successful football teams in the country for decades. and he was a man who had premeditated plotted conduct. not some kind of impulsive or hysterical disorder. that's my view of it. >> the other thing i don't get is the defense has sort of alleged that this was part of a team culture and this is how sandusky grew up, the generation he's from. i was on a team. i've never heard of any coach showering with a player, let alone with a child. but again, it's up to the jury. thomas klein, appreciate you being with us. thank you. follow us on facebook, on twitter right now. tweet us about this. what do you think? do you think there's any chance that jerry sandusky is not going to be convicted of these charges. let us nose what you think. if you look at the animals being so well taken care of the montreal spca, you think it's a great charity. well, it says it's in debt to a company in the u.s. this is really a story about charities and where does the money go? ] your favorite foods fighting you? fight back fast with tums. calcium rich tums goes to work in seconds. nothing works faster. ♪ tum tum tum tum tums ♪ [ acou[ barks ]ar: slow ] ♪ [ upbeat ] [ barks ] beneful playful life is made with energy-packed wholesome grains... and real beef and egg. to help you put more play in your day. there are a lot of warning lights and sounds vying for your attention. so we invented a warning.. you can feel. introducing the all new cadillac xts, available with the patented safety alert seat. when there is danger you might not see, you're warned by a pulse in the seat. it's technology you won't find in a mercedes e-class. the all new cadillac xts has arrived. and it's bringing the future forward. wanted to provide better employee benefits while balancing the company's bottom line, their very first word was... 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[ yawning sound ] over the past couple of weeks, we've been taking a hard look at some veteran charities. chairities for disabled veterans in particular that have taken in ten of millions of dollars in donations but used almost none of it to directly help those veterans. ynn's drew griffin has been looking at one of those charities for years now. they've raised nearly $56 million in the past three years. $56 million. and not one time that we've found has actually gone directly to help disabled veterans. now, you may remember drew's attempts to talk to the president of that group. it's been met with resistance to say the least. we're going to be joined with the latest on the investigation. the million dollar question is if the dnf -- >> as far as we can tell, the 10th floor of this manhattan hospital building to a company that specializes in fundraising. and as far as we can tell, they know a lot about fundraising for itself. >> so quadriga art is this company that basically gets paid to build mailing lists for groups like the dvnf. following it tra was one thing. actually getting answers at the end of it, that was another thing entirely. >> it's drew griffin. >> she is not here. >> i'm trying to reach mr. schulov. oh, he's not in? >> drew covered yet another veteran's charity called the national veterans foundation that takes donations but uses only a very small percentage to actually help veterans. the connection you ask? well, both veteran s charities use that same fundraising company, quadriga art. and now he's uncovered another charity. a group that's supposed to help animals that has another money connection to that same fundraising organization, quadriga art. here's drew. >> reporter: the needs of the local spca was great. money to help these animals was running out. so in 2005, what seemed looic a great opportunity came knocking. a private fundraising company proposed a major expansion. montreal's spca would become the canadian spca and quadriga art would send fundraising mailers across all of canada. the deal was done and the money started rolling in. but there was a big problem. practically every dollar that came in according to montreal's spca's new executive director was going into the coffers of qudriga art. so much that despite receiving $13 million in donations was in the hole more than $4.5 million. how do you get in debt to a fundraiser? >> by incurring expenses and not having a plan for getting out of it. it was not a smart decision on the spca's part. and we let quadriga create strategy for us. >> the strategy was simple. quadriga art would send out pleas for money on behalf of this shelter, include tote bags made by a chinese factory. but the cost far exceeded the donations and the spca was locked into this contract for seven years. the fundraising operation was so upside down for the montreal spca that they actually still owe quadriga art nearly $2 million. and quadriga has even taken out a lean on this animal shelter. that's a lot of money. >> but it's a lot less than the $4 million we owed them seven years ago. >> reporter: quadriga art has refused interviews to explain its unique process for raising money. they developed donor list, creating databases that would eventually pay off. a spokesman told us, quote, this has been a proven model for 50 years, despite being criticized by some charity watch groups. but for the montreal spca, the results have been a disaster. will you sign with them again? >> probably not. >> reporter: that is hardly the end of this story. my name is drew griffin. i'm with cnn. meet pierre barnadi, emerges as the founder of a new u.s.-based charity. spca international. from his home in montreal in a rarely staffed office in new york, barnadi and quadriga art have designed a new charity, to tug on the heart strings with its signature program called baghdad pups. the stated goal -- reuniting vets and their war pets. but you're going to be stunned to find out just how this operation works. >> this is so -- and once we start scratching the surface of this thing, drew, it just gets deeper and deeper and more shocking. so many of these charities where hardly any of the money goes to charity. all seem to have this one private fundraiser taking in all the money and that's quadriga art right here in new york. i had never heard about them. >> me knighter. but they are huge. a private company that simply will not speak to us. won't even return phone calls except to a public relations firm. but it is this firm that's doing all the collecting and as far as we can tell, collecting millions and millions of dollars in donated money that the actual donors intend to be going in this case to animals. in so many other cases, veterans and disabled veterans. >> if i ran a charity and somebody was doing a report that raised questions about where the money was going and everything was on the up and up, i would open the books and do interviews. the fact that nobody would caulk talk to you about this stuff is amazing. one of the charities is this national veterans foundation, dvf. they raised $56 million in three years of disabled vets. not a dime has actually gone to pay vets. has it gotten any better? >> no. according to the just filed 2011 documents, dvnn took in $29 million. that's how much americans sent to this group. as far as we can tell, most of the money went to quadriga art and its affiliates. the charity is telling us, they're in debt now to quadriga, $15.5 million. so things seem to be getting worse, not better. >> and this is the group that the senate finance committee has opened an investigation into? >> yes. the senate finance committee says the staffers are now going through the very documents that we have, also documents that are sent in by the dvnf, they're going to try to determine exactly what's going on here. they're just starting to look at this with we don't have anything to report other than they're beginning their investigation. >> i appreciate your reporting. >> this other charity that's allegedly helping animals, pets and veterans, but it doesn't seem to be. i don't understand how people sleep at night who are raising money allegedly for veterans or homeless animals and the money is not going to where they're raising money. i do not get that. we're going to continue on this, drew. great reporting, thank you. coming up, is president obama making a mistake by talking about the economy improving? james carville is worried the president's message can be backfiring with voters. 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