In December, "60 Minutes" founder Don Hewitt apologized on-air for a June 1, 1997, story based on a British documentary about smugglers who swallowed heroin in latex gloves to get past authorities. An investigative panel later determined that the documentary producers had faked locations and paid actors to portray drug couriers.

The Customs Service in Washington investigated and found the memo to be fake, and that no preferential treatment was offered, [Lesley] Stahl said. "60 Minutes" had already reported in February 1998 that the memo was declared bogus. But [Rudy] Camacho sued; the on-air apology was part of an "amicable settlement" between him and CBS News, a "60 Minutes" spokesman said.

"We have concluded that we were deceived, and ultimately so were you, our viewers," Stahl said. "Under the circumstances, we regret that any reference to that memo or to Mr. Camacho's connection with it was included in our original report and apologize for any harm to Mr. Camacho's professional reputation and any distress caused to him and his family."