this is "world news." tonight, mortgage bosses. millionaire executives accused of fraud, sparking the housing meltdown, targeted in a huge federal lawsuit tonight. eye witness. for the first time, the key witness in the penn state sex abuse case tells what he saw and why he didn't go to police, raising the question, what would you have done? secret life. the multimillion dollar football star, the devout christian, the family man, accused today of a double life as a drug lord? million moms. all of you powering up the simple solutions that save lives. a mother, a baby, safe tonight because of something that costs less than a postage stamp.

and our hometown heroes. after the war in iraq ends after eight years. we track down private jessica lynch to tell you about something big in her life tonight and send a message to all who served. good evening. how often we have heard the question, will any financial titans ever have to answer for fueling the economic crisis that overwhelmed so many main street americans? 3.6 million american homes have fallen into foreclosure in the four years since that recession began. and tonight, five men, one woman, millionaire mortgage bosses from fannie mae and freddie mack. abc's cecilia vega tells us why they were named first and why it took so long. >> reporter: good evening, diane. this suit is being called the most significant action taken so

far against the executives at the center of this housing bust. for so many people, they are the symbol of everything that went wrong and for so many more, this is long overdue. no american escaped the pain of the financial collapse. and no american was ever held accountable until today. these six former executives at mortgage giants fannie mae and freddie mack were sued by the s.e.c., accused of misstatements and half truths, hiding just how many of those risky subprime mortgages they were holding. in some cases, by hundreds of billions of dollars. when the house of cards collapsed, the pain rippled throughout the economy. millions lost their homes, and taxpayers had to come up with $160 billion to bail out fannie and freddie. many families lost it all. >> i was collecting unemployment but unemployment just wasn't enough to continue making the payment. >> reporter: republican candidates this year pointed the finger straight at fannie and freddie >> they were the epicenter of

the mortgage financial meltdown. >> reporter: in just one year, daniel mudd earned nearly $11 million as ceo of fannie and richard syron more than $18 million as ceo of freddie. they put out statements today. the six could face millions in fines but they do not face jail time. only the justice department can bring criminal charges. >> what we're getting is some money sloshing around, but not that real sense of justice and certainly not the acknowledgement that we feel as a country, we deserve to receive, to hold individuals accountable for what they did. >> reporter: and fannie and freddie themselves are always off the hook. the s.e.c. agreed today it will not sue the mortgage giant. as for those criminal charges, the justice department says it is still investigating fannie m. diane? >> all right, abc's cecilia vega reporting in tonight. and now, we turn to that

bombshell testimony in the penn state sexual abuse case. for the first time, the star witness, the cornerstone of the prosecution, spoke out about what he says he actually saw in that locker room, and what he did next. here's abc's jim avila. >> reporter: he has fiery red hair and his story ignited a firestorm that brought down a college football icon, threatens the freedom of penn state's best known defensive coach and accuses two university officials of protecting the institution instead of children. penn state coach mike mcqueary on the stand today, sticking to the story that he told the university. "i saw jerry in the shower with a boy and it was extremely sexual in nature and over the lines and wrong." . mike mcqueary is the only adult witness to that alleged sexual assault in the penn state football team showers. at today's preliminary hearing for two university officials, mcqueary said he went to his mentor coach joe paterno about what he saw. "i told paterno i saw jerry with

a young boy in the showers, way over the lines, extremely sexual in nature and i thought i needed to tell him." his account backed by coach paterno's grand jury testimony. "it was of a sexual nature." and enough, say prosecutors, to prove the university officials, accused of perjury and not reporting the crime, lied when they sate was just horse play. >> now you have both paterno and mcqueary testifying that, we told them it was a sexual act going on at the university. >> reporter: the judge agreeing the case will go to trial, but one underlying question remains. why didn't mike mcqueary do more? he said he slammed shut his locker loudly, hoping to stop the attack, but did not confront sandusky, remove the child he saw assaulted or go to place. >> mcqueary should have done something. it's sickening that he didn't. >> reporter: in fact, defense attorneys will point out that even after seeing that terrible

attack, mcqueary continues to coach with sandusky for years, play golf tournaments with him for the second mile charity that sandusky ran and even shake sandusky's hand. so, there's a lot of questions still to be answered. >> a lot of people at home going to be asking that question of themselves. thank you so much, jim. and now we turn to politics, your voice, your vote. at last night's republican debate, one candidate, texas governor rick perry, came out swinging at congress, calling on them to take a big pay cut. but today, we learned something interesting about perry's paycheck. abc's jake tapper explains. >> reporter: governor rick perry is trying ining to blaze a pat making tough budget cuts. raising the age for recipients to receive medicare and social security. and taking on congressional pay. >> the idea that we have congress staying there as many days as they do and the salary they have, that's the reason i call for a part-time congress. cut their pay in half.

>> reporter: one problem? financial disclosure forms released today show that perry is hfdouble-dipping in texas. at the same time he's drawing a $150,000 salary as governor, he formally retired this year, to start collecting more than $90,000 a year in a state pensi pension, through the employee retirement system or ers. >> they said, you're eligible to access your retirement now, with your military time and your time in service and, you know, i think it would be rather foolish to not access what you've earned. >> reporter: it's a perfectly legal texas-sized loophole that's maybe tough to explain when you are running for president as a fiscal hawk, demanding sacrifice om the american people. >> that's been in place for decades. and i bought my military time. and then obviously the 25 years of public service time, so, as

you reach that age, you become eligible for it. >> reporter: this news is poorly timed for perry, who needs a credible showing in iowa to revive his sagging presidential campaign. >> let me tell you, i hope i am the tim tebow of the iowa caucuses. >> reporter: diane, the race is still rather fluid. there are just 18 days left to go until the iowa caucus, where some dreams will be fulfilled and others will be crushed like a midnight roach. diane? >> all right, jake, thanks to you. and we have been telling you what's become an long told story, the grid lock in washington, once again, stirring up fears of another government shutdown. well, today, once again, the stand off ended. the house passed a $1 trillion spending bill that will fund the government until september 2012. the senate votes tomorrow. but tucked away in that bill, the house passed today, is a small victory for something right in your home. those who like their lightbulbs, the old fashioned way.

call it the battle of the bulb. and abc's jon karl explains. >> reporter: it was supposed to be the biggest change to lig lightbulbs since edison. beginning next year, the federal government had planned to start banning cheap, energy guzzling lightbulbs, requiring we all buy bulbs that save energy. it was a bipartisan idea, but conservatives came to hate it. it wasn't just that the new bulbs are funny looking, dimmer and more expensivexpensive. the question -- who's the government to tell me what kind of bulb to buy? >> this is about our fundamental rights as citizens to not have the government tell us how we have to live our lives every day. >> reporter: so today, congress said lights out on thelightbulb revolution, passing a provision, stopping the government ban. senator tom coburn is trilled. he so hates the new lightbulbs, he's been hoarding the old ones. >> i have 200 stores at my

house. i do, because i can't see with the others. we've carried this so far, i mean, it's just crazy. >> reporter: no need to stock pile anymore. the old bulb lives to light another day. jonathan karl, abc news, washington. and today, the death of that drum major from florida a&m university who died last month was ruled a homicide. according to medical examiners, rabbit champion died from blunt force trauma sustained during a hazing incident. no charges have been timed at this time. and word today about the fukushima nuclear plant where the massive earthquake and tsunami triggered a meltdown now nine months ago. tonight, the japanese government says the plant has reached cold shutdown conditions, meaning the reactors are stable, no longer leaking substantial amounts of radiation. though, it is expected to take 30 years or more to completely shut down the plant.

no word on how soon some of the 100,000 people who were displaced from areas around fukushima can return home. and still ahead here on "world news," the stunning allegation. a star, who had it all, a perfect family, a $5 million contract, did he live a secret life as a drug lord, risking everything? and what does the first lady have in common with justin timberlake, mila kunis? what will the president think of what she did today? and remember private jessica lynch, captured in iraq long ago? tonight, as this war ends, an update, her brand new life. she's one of our "persons of the week." how can you get back pain relief that lasts up to 16 hours?

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nothing melts away the cold like a hot, delicious bowl of chicken noodle soup from campbell's. ♪ let it snow, let it snow forty years ago, he wasn't worried about retirement. he'd yet to hear of mutual funds, iras, or annuities. back then, he had something more important to do. he wasn't focused on his future but fortunately, somebody else was. at usaa we provide retirement solutions for our military, veterans and their families. from investments... to life insurance... to health care options. learn more with our free usaa retirement guide. call 877-242-usaa. and another star in a strange spotlight tonight. sam hurd of the chicago bears. friends call him god-fearing, a family man. so, is it possible he was leading a double life, which could send him to prison for 40 years? and why would someone earning

millions of dollars risk everything? abc's barbara pinto is in chicago. >> reporter: on the field, bears wide receiver sam hurd was known for his good hands. off the field, for his good character, a devout christian, married to his college sweetheart, raising a young daughter in this suburban home. >> everyone at the bears said "good guy, great guy, quoting the bible, great guy to be around." obviously, he was conning them if he was involved in this, and he led a double life. >> reporter: on wednesday, the 26-year-old was arrested at this steakhouse, a federal complaint alleges he was trying to broker a deal over dinner to buy and distribute 1,000 pounds of marijuana and up to 10 kilos of cocaine a week. hurd didn't realize he was dealing with undercover federal agents. >> it appears that he was a full-time drug dealer, if you believe what the government says in the complaint, and a part-time football player. >> reporter: most perplexing to fans is that hurd just signed a $5 million dollar deal with the bears. >> just having fun out there.

>> reporter: with a $1.3 million signing bonus. >> making this much money, why you need to sell drugs? >> reporter: but authorities allege his drug empire would have earned him far more, up to $700,000 a week. hurd's lawyer vowed to fight the charges and denied speculation that his client sold drugs to other players. >> he 100% denies that allegation. it is patently and totally false. >> reporter: tonight, the man who appeared to have it all has been cut from his team and could face 40 years in prison. barbara pinto, abc news, chicago. and still ahead, michelle obama. would you have the nerve to ask the first lady out on a date? and what would the president think about that? an rc robotic claw. my high school science teacher made me what i am today. our science teacher helped us build it. ♪ now i'm a geologist at chevron, and i get to help science teachers. it has four servo motors and a wireless microcontroller. over the last three years we've put nearly 100 million dollars

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child in another part of the globe. and tonight on "20/20," we're going to announce that you contributed $1.5 million. a million moms linking arms to tell some very frightened, very young girls in other parts of the globe they're not alone. tonight, you'll meet young girls around the world, married at the ages of 10, 11, hips too small, bolds not ready for pregnancy. but we'll tell you how little it takes to give them a chance. a little pill that costs less than a postage stamp can stop the number one cause of death for women giving birth, hemorrhage. and also tonight, we go with kristy turlington, yes, that christy turlington, to bangladesh. chef has a very personal story about childbirth. and tells us how it led her to take up this cause. and for all the fortunate women who know childbirth is a time of joy. abc news spans around the globe

to find the small things that can make all the difference, as a new american mom at a brooklyn hospital talks to a new mom in afghanistan, who wants to know if women in america are also afraid of dying when the baby is born. how old is your baby boy? >> two hours old. >> my goodness. >> reporter: two hours old? two moms, a world of possibilities. a global team, powered by you, to be the change, safe a life. >> thank you, thank you. yours, too. health and happiness for your baby. >> and join in our challenge, a million moms can do this. and we'll have more on a special edition of "20/20" "giving life: a risky proposition." that's later tonight, right here on abc. and michelle obama was dropping off holiday gifts for the toys for tots campaign, run by the marines, when she received something unexpected in return. lance corporal aaron leaks of maryland asked the first lady to be his date at the marine corps

ball. she told him she'd love to go, but has to speak with her husband first. we'll let you know what happens next. and when we return, remembering jessica lynch, captured and rescued in iraq eight years ago. tonight, her new life and the others who serve. our "persons of the week." sometimes life can be, well, a little uncomfortable, but when it's hard or hurts to go to the bathroom, there's dulcolax stool softener. dulcolax stool softener doesn't make you go... it just makes it easier to go. dulcolax stool softener. make yourself comfortable. with less chronic low back pain. imagine living your life with less chronic osteoarthritis pain. imagine you, with less pain. cymbalta can help. cymbalta is a non-narcotic treatment that's fda-approved to manage chronic musculoskeletal pain. one pill a day, every day, can help reduce this pain.

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and finally, our "persons of the week." as you know, the u.s. mission in iraq officially ended this week. 1.5 million americans served there in the eight years. and tonight, as we honor all of those men and women, we tracked down the woman we met as private jessica lynch, who was captured, rescued and whose story brought this war home. tonight, her life comes full circle. when the nation called, they answered. left families. missed milestones.

and one of them was a small young woman named jessica lynch. she was just 19, had joined the army to put away some money so she could study to become a teacher. but a wrong turn led her unit straight into an ambush. they tried to make a getaway, with bullets raining down on them. their vehicle crashed. all the other passengers were killed, including jessica's best friend. jessica lynch lay unconscious, her left leg shattered below the knee, her foot splintered, her shoulder broken, her spine fractured in two places. captured, held for nine days. and then, the drama of that rescue, recorded for the world to see. as she was carried out of a hospital on a stretcher to an awaiting helicopter. and this is when we began to hear of her heroics. one government source built her up as a kind of rambo, fighting to the death. >> hard as nails.

that's what they're saying about pie vat first class jessica lynch. >> reporter: but when i sat down with her, the young girl from west virginia, made it clear, there is also courage in telling the truth. did you fire your weapon back and did you kill any iraqis? no. no. my weapon did jam and i did not shoot not a -- not a round, nothing. >> reporter: well, you could have just let it go and said nothing. >> i could have, but i'm not about to take credit for someone or something that i didn't do. >> reporter: today, after 20 surgeries, countless hours of rehab, jessica lynch still walks with a noticeable limp. but she is realizing that dream, earning a degree in education. with those determined steps, tonight, she'll walk across the stage for her graduation. and there to cheer her on? her joy, her 5-year-old daughter dakota, named in honor of her fallen best friend, eight years

ago. dakota, the native american word for "friend," and her friend's middle name. when you wake up on this morning and you hear and you see the headlines that the war is ending, that this is it, what do you think? >> i'm thinking about the families and the soldiers, the military men and women that are going to be home for the holidays. >> reporter: so, tonight, with her, we honor those who fell, those who were wounded, those who showed determination, those who sacrificed and those who remind us, every day, what it is to serve your nation. you look at the faces of those com i coming home -- what do you most want to say to them? >> i'm so thankful for their service. and, like they say, shake their hands when you see a military person, i mean, they've been over there and fighting for our country, our freedom and we should just be very thankful and grateful to them. >> and they are our "persons of

the week." and we thank you for being with us this week. we're always there at abcnews.com. don't forget, the special edition of "20/20" later and david muir, whom you know well, will be right here this weekend. good night.

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