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ISSUES WITH JANE VELEZ-MITCHELL

Bombshell Developments in Caylee Anthony Case

Aired January 6, 2009 - 19:00:00   ET

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


(BEGIN VIDEOTAPE)
JANE VELEZ-MITCHELL, HOST (voice-over): Tonight more bombshell developments in the Caylee Anthony saga. A TV psychic now says she sensed the child`s remains were in the very area where they were eventually found. The psychic says she has the videotape to prove she went to that very location with cadaver dogs months before the remains were discovered.

Also today, the judge lashes out at Casey`s defense team, saying Casey`s lawyers are taking the profession to a new low. We`ll have the latest.

Plus, we have an exclusive interview with the brother of missing 25- year-old beauty Laura Garza. It`s been one month since Laura was last seen with convicted sex offender Michael Mele in a New York nightclub. We`ll keep the search alive and can her brother what he thinks of Mele`s refusal to talk.

And lock him up now! Mega-billion scam artist Bernie Madoff allegedly tries to hide $1 million worth of gold and jewels by mailing them to family members. I`ll tell you why it`s time to yank this guy out of his multi- million dollar penthouse and throw him in the clinker.

ISSUES begins right now.

(END VIDEOTAPE)

VELEZ-MITCHELL: Tonight, breaking developments in the Caylee Anthony murder investigation. You just can`t make this stuff up. A judge, just hours ago, scolding one of Casey Anthony`s lawyers for taking the legal profession to a new low.

All this because of a civil suit filed by Zenaida Gonzalez. Zenaida says Casey ruined her life when she claimed a woman by the same name kidnapped her toddler.

Plus, shocking news that Casey might be allowed to witness the funeral of her little daughter, Caylee. The local Florida sheriff yet to announce whether she can watch a local TV broadcast.

And another bombshell revelation. A psychic claims she had a feeling about the very spot where Caylee`s body was found around the time meter reader Roy Kronk called investigators this past summer. Nancy Grace will have an exclusive interview with that psychic coming up later.

Meantime, Casey Anthony`s attorney wants information about that very crime scene. Jose Baez launches a tip line for anyone with evidence that might help clear his client.

So much to cover tonight, and I want to hear from you. Give me a holler: 1-877-JVM-SAYS. That`s 1-877-586-7297. So weigh in.

But first, let`s bring in our expert panel: Drew Findling, criminal defense attorney; Pam Bondi, Florida state prosecutor, who has special ties to a lawyer for Zenaida Gonzalez, and she`s going to tell us about that; Harry Lyles, crisis expert and psychologist; and Kathy Belich, a reporter from CNN affiliate WFTV, who has been covering this case from the very beginning.

Kathy, what is the very latest?

KATHY BELICH, WFTV REPORTER: Well, just a few hours ago, prosecutors filed a motion asking a judge to add restrictions to the release of x-ray photos and autopsy photos from the autopsy of Caylee Marie Anthony.

The prosecutors said there have been reports that other photos of the little girl have been sold for high sums of money. They don`t want the defense to copy the photos. They don`t want the defense to mail them or ship them or show them to anyone else outside of the defense team and its experts. There could be a hearing about this, but it hasn`t been scheduled just yet.

VELEZ-MITCHELL: Well, one of the other bombshells today, Pam Bondi, is that a psychic says that she went to the location where little Caylee`s remains were ultimately found. She said this happened this past summer, and she didn`t just go alone. She went with an entourage, because she has a show called "The Body Hunter."

And she got out of her car. She had two cadaver dogs. She says she felt sick to her stomach. There she is right there. And, in fact, Nancy Grace will have an exclusive interview with her coming up a little bit later on in her broadcast.

But what do you make of yet another person showing up at the scene before the remains were found? It`s -- it`s bizarre. I think it`s about half a dozen, and we`ll get to the details of just who did.

PAM BONDI, FLORIDA STATE PROSECUTOR: I did, Jane. This case keeps getting more bizarre, doesn`t it?

And you know what I like about this psychic is what she said, is she not only uses her psychic ability, but her investigative skills, as well, because she`s a detective. And she also uses cadaver dogs.

And there`s something great that would help the prosecution is she said when she went to that area she couldn`t get anywhere near it, because it was so flooded. It was, you know, under water.

And I`ve been back there, Jane, to that area, and I live in Florida. And I mean, when it floods like that, you can`t get anywhere near those wooded areas.

VELEZ-MITCHELL: Well, yes. I used to live in Florida myself, and I know about the humidity and when it rains it pours just like in California.

But Pam, it`s funny because I had sort of the opposite reaction. I thought wow, she`s there with her daughter and somebody else, a camera crew and a whole entourage and, yet, she did not find the body.

Couldn`t the defense take this and put each one of them on the stand and say, "Did you see anything?" "No." "Did you see anything?" "No."

And given all of the other people who have been there and didn`t find it prior to mid-December, couldn`t that add up to reasonable doubt?

BONDI: Well, that`s a great point if that`s what the defense is going to argue, but she also said she couldn`t get back there because of the great amount of water. And I think that`s going to be corroborated by the EquuSearch people as well at that time. And that`s why they couldn`t search that area until it drained out. And there are also water moccasins and snakes and all kinds of things back in that area.

VELEZ-MITCHELL: You know, Drew Findling, as a criminal defense attorney, you`ve covered a lot of these kinds of cases. What strikes me is that we have sort of this movie idea of what it is to look for a body, and in fact, it could be right in front of us. And we might not even see it if we weren`t -- if we weren`t attuned to that.

I mean, imagine the number of people who actually pointed out this particular spot. Roy Kronk, the meter reader, called 911 three times in August. And once the authorities went down there. And they made in their notes that they had already been there and that cadaver dogs had cleared the area.

Then there were two private investigators in mid-November who went down there, again, a month before the body was found. You hear about this psychic and her entourage, including two cadaver dogs. You had Tim Miller from EquuSearch who was at that very site, said he didn`t want to go in because there was too much water.

You had a friend of Casey`s who told cops, "You`ve got to search that area. That`s the very area we all hung out at when we were kids. This is where we spent all our time. This is where she would put a body."

How is it that, despite all of this, police didn`t drain that area and find that child?

DREW FINDLING, CRIMINAL DEFENSE ATTORNEY: Point well taken, and it`s a question, but it`s really a very strong point. And let me make it very, very simple. I mean, how much of the psychic really bring attention to this area.

Let`s -- let`s be honest with ourselves. If months ago Casey Anthony confessed and said, "This is where the body is located," is there any doubt, does anybody doubt, that that area would have been drained? Of course, it would have been drained.

So it is an extremely anemic position that, because of water moccasins and high water and danger, it was not drained. And I think the defense, with no other choice, is going to have to seize on that area.

VELEZ-MITCHELL: And you have to wonder, and I don`t whether she did, Terry Lyle, psychologist, call authorities. You know, we`re still learning more about what she did or did not do. Obviously, a woman with good intentions who actually has a show devoted to finding bodies and missing people.

But what is the protocol for psychics? Do they call authorities? What are they supposed to do with their gut feelings?

FINDLING: Well, I would think any professional acumen that you would call, you know, someone, the authorities, and at least tip them off. But obviously, if there wasn`t enough information that she felt deemed necessary, she didn`t do that.

So it leaves the evidence, as the attorney just stated, a little murky. That if she really felt that strongly about it, she should have followed up, in my opinion, to try to find out if that was really the case.

VELEZ-MITCHELL: Kathy Belich, I want to turn to the Zenaida Gonzalez issue. I mean, this is absolutely fascinating. There was a court confrontation today where the judge, apparently, scolded Jose Baez, the attorney for Casey Anthony. He had filed a motion, saying something kind of nasty about the attorney representing Zenaida Gonzalez. What went down there and why was he scolded?

BELICH: That`s right. It was a member of Jose Baez`s team who wrote the motion. A third member who was actually sitting in for him today, but point well taken. The judge basically told them that they made personal attacks in their motions to have Casey Anthony`s deposition put off until after the murder trial, and he said that it was bringing the profession to a low. He didn`t think it was appropriate. He told them he would ignore those comments, and he would follow the law.

He also chided the defense team for not asking for the correct kind of hearing to address this kind of issue and not giving him enough time, because the deposition is scheduled for Monday. So there were all kinds of things going on.

VELEZ-MITCHELL: Just in case anybody forgot. This Zenaida Gonzalez said Casey Anthony ruined her life. Casey Anthony has said a woman by that name was the nanny who was supposed to watch Caylee the day she disappeared. Ms. Gonzalez is the woman in the shadow of this next clip from August. She is suing. Listen to this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: What has your life been like?

ZENAIDA GONZALEZ, SUING CASEY ANTHONY: Horrible. Horrible. My name is -- because it`s not so much because they know my face. It`s because they know my name. Because they know my name, everywhere I go, they`re obviously insinuating that I did something wrong, because my name is so much in the news.

So I haven`t been able to get a job and I haven`t been able to do much of nothing, because everyone is just judging me by my name.

(END VIDEO CLIP)

VELEZ-MITCHELL: Pam Bondi, this woman says her life was ruined, and still a motion filed by Casey Anthony`s defense team says, quote, it was filed for the purpose of generating publicity for the plaintiff`s law firm, Morgan and Morgan. I mean, is that the pot calling the kettle black? Who ever heard of Jose Baez before this case?

BONDI: Thank you, Jane. And John Morgan is a close personal friend of mine. We have talked about this case for several months now, and he took this -- he took this case because he feels very passionately about what Zenaida Gonzalez has been through. He cares about her. He cares what`s happened to her.

And her life has been destroyed. She`s lost her job. She`s had to move. And this woman did not deserve this. This woman does not want publicity. She wants it to stop, and she wants her name cleared.

FINDLING: Jane -- Jane, I`ve got...

BONDI: And John is a very honorable lawyer.

FINDLING: All right. I`ve got to take up for the Baez law firm right now. What if everybody named Scott Peterson in California sued Scott Peterson? What if everybody in Atlanta named Wayne Williams 25, 30 years ago sued Wayne Williams? I mean, this is unheard of.

And when we look at this from a plaintiff`s standpoint, there`s no money at the end of this case. So if this case is not about publicity, if it`s not about bringing attention to these lawyers, then what`s it about?

VELEZ-MITCHELL: Drew, respectfully, I disagree with you.

BONDI: ... clearly her name.

FINDLING: She`s just another witness in a case. Does every alibi witness, does every peripheral witness in criminal cases have to, particularly big cases, get lawyers now? And do press conferences?

BONDI: She was fired. This is a mother...

FINDLING: That`s what she says, that she was fired.

VELEZ-MITCHELL: And not only that, she`s the one who went to the Sawgrass Apartments that day and was filling out a form and somehow -- we have no idea how this happened, since one of these crazy aspects of this case that really doesn`t make any sense. Casey Anthony came up with that name and said that she left the child at that apartment complex with a Zenaida Gonzalez.

FINDLING: And everybody that -- and everybody that gets in a fender bender has a sore neck and calls a lawyer in the back of the yellow pages. At some point I`m a lawyer, but this plaintiffs business gets ridiculous.

VELEZ-MITCHELL: Oh, no, I think this is very valid.

FINDLING: And now -- and now they`re going to try to -- they`re going to try to depose the criminally accused in a murder case and try to get in through the backdoor what the prosecution can`t even get through the front door? It`s ridiculous.

VELEZ-MITCHELL: All right. We`re going to discuss more of that in just a second and what the intricacies of that whole suit and how it relates to the criminal case. Stay right there.

Just a reminder: tune in to "NANCY GRACE" immediately following this program at 8 p.m. Eastern. She will have an exclusive interview with the psychic who claims she knew where Caylee`s remains were before Roy Kronk called, and she can prove it. Make sure you tune in.

And make sure you get on the phone to talk to our expert panel. We want to hear from you about this case: 1-877-JVM-SAYS. That`s 1-877-586- 7297. Tell me what you think of the shocking news.

Now, here`s Casey Anthony talking to her mom in jail in July.

(BEGIN VIDEO CLIP)

CASEY ANTHONY, ACCUSED OF MURDERING DAUGHTER: My only concern is that Caylee comes back to us, and she`s smiling and she`s happy and that she`s - - that she`s OK.

CINDY ANTHONY, CASEY ANTHONY`S MOTHER: OK. What do you want me to tell Caylee?

CASEY ANTHONY: That mommy loves her very much. And she`s the most important thing in this entire world to me. And to be brave.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

GEORGE ANTHONY, FATHER OF CASEY ANTHONY: What can I do?

CASEY ANTHONY: Just try to keep talking to the media, I guess. Keep things positive; keep it focused on Caylee. That needs to be the main focus.

GEORGE ANTHONY: Is there anything else that you want to say directly to me at all?

CASEY ANTHONY: Just that I wish that none of this would have ever happened. I really wish that none of this would have ever happened.

GEORGE ANTHONY: Well, we all feel that way.

(END VIDEO CLIP)

VELEZ-MITCHELL: That was Casey Anthony speaking to her parents from jail last July.

I want to hear what you think about the latest developments in the Caylee Anthony murder case. Give me a call, 1-877-JVM-SAYS. That`s 1-877- 586-7297.

Let`s go straight to the phone lines. Teresa in Arkansas, your question or comment, ma`am.

CALLER: Yes. Thank you so much for taking my question, Jane. We appreciate the coverage. With the evidence that`s coming out now, are they going to put the death penalty back on the table for this -- this woman?

VELEZ-MITCHELL: That`s a question for Pam Bondi.

BONDI: Jane, no. I don`t believe so at all. You only have 45 days from the date of arraignment to make a decision regarding death. They have made that decision. They have since received the autopsy results. And I don`t believe that at this time -- the 45 days is probably run by now, but also, I don`t believe that there is enough evidence to change their mind.

VELEZ-MITCHELL: Why not? I mean, why not, now that they found the body?

BONDI: Sure, because there`s not enough to show. You need cold, calculated, premeditated. And they may possibly have that by the Internet searches, but there wasn`t enough to show the cause of death.

And also, heinous, atrocious and cruel. Of course, to us all murders are heinous, atrocious and cruel, but it has to be, really, a heightened level of suffering and, based on the decomposition of the little girl`s body, unfortunately, I don`t think they`ll be given that additional aggravators.

You can`t try these on emotion. You can`t try these decisions based on emotions as prosecutors. You have to base them on the aggravating factors and the mitigating factors. That`s the law.

VELEZ-MITCHELL: So the computer searches on Casey Anthony`s computer for neck breaking, and chloroform, the chloroform found, the duct tape that, according to published reports, is over the mouth, that`s not heinous enough?

BONDI: No. That would go into cold, calculated and premeditated, that she had a heightened level of premeditation in planning the crime.

Heinous, atrocious and cruel would go to how the little girl suffered, and that`s one of the aggravators that they`re not going to be able to get out of this case, unfortunately, because Casey basically got lucky. And that area was flooded, and it took so long to find her precious little daughter`s body.

VELEZ-MITCHELL: Oh, gosh. It just brings home the point that we wish that they had drained that area and searched it.

Jeff from Kansas. Your question as well, sir?

Hey, Jeff, are you there? I think I hear him, but I`m not sure. All right. He`s obviously -- he stepped away from the phone for a second.

I want to get back from this whole Zenaida Gonzalez issue. Drew Findling, the whole point that she`s debating in court through her attorneys, she doesn`t want to give a deposition in the civil case filed by Zenaida Gonzalez, a defamation case against her, because she doesn`t want to have to reveal information in that deposition that could then be used against her in the criminal case.

Why doesn`t she just take the fifth and say, "I don`t remember"? In other words, I`ve seen video of depositions, where people have essentially avoided all answers.

LYLE: Well, because first of all, by -- by giving the fifth from the civil standpoint it`s equivalent to admitting. But second of all, she doesn`t want to be in the position of having to take the fifth. You can`t be called to the stand in your criminal case when the prosecution knows you`re going to take the fifth. If you choose not to make a statement and shield yourself by the fifth, that`s not admitted to the jury.

But remember that the Baez law firm is speaking and thinking about all of the potential jurors in the middle of Florida, in middle Florida. And for them all to see that she takes the fifth is going to be extremely exculpatory, and they do not want the public to hear about that. Because put (ph) forth in civil cases...

VELEZ-MITCHELL: Maybe that`s because her story makes absolutely no sense. She says she upon dropped this child off with Zenaida Gonzalez at the Sawgrass Apartments on June 9. But yet, there`s videotape of the child with the great-grandfather several days later. And they had to all switch their stories around after that video popped up.

FINDLING: As my teenagers would say, I feel you. OK? However, all right, this is the Constitution of the United States of America. And we do have the Fifth Amendment. And we don`t need it to be circumvented or, as I like to say, get through the backdoor what you can`t get through the front door by having this silly civil case that`s not...

VELEZ-MITCHELL: It`s not silly. Dr. Terry Lyle, psychologist, is it not debilitating to be accused of kidnapping a child, essentially. I mean, even though the grandparents are not saying, well, it`s not that Zenaida Gonzalez.

FINDLING: She has the name of the person. There`s plenty of people that have the same name.

VELEZ-MITCHELL: Let the psychologist weigh in on how it feels to be the person who everybody`s looking at and thinking maybe has she kidnapped someone.

LYLE: Yes, and I`ve listened to the story. There`s great arguments on both sides. But if you think about the individuals involved, Caylee especially, I mean, she can`t even speak for herself. And if you`re accused of something and it comes out later that you are proven innocent, you`re still guilty in a lot of the public`s mind. And that is where the shame, the guilt and the forfeiture of your life that you then knew is gone.

Can she make something of her life from there? Hopefully, but there are some really weird things that are associated to that. And she is suffering. I mean, they`re suffering with her and her family.

VELEZ-MITCHELL: Got it. Everybody, hang tight. I`m going to be taking more calls: 1-877-JVM-SAYS. That`s 1-877-586-7297 to talk to our expert panel about the Casey Anthony case and the case of her daughter, Caylee, sadly, deceased.

Now listen to Casey Anthony in jail talking about Zanny the nanny with her mom, back in July.

(BEGIN VIDEO CLIP)

CINDY ANTHONY: Did anybody ask you to describe her, and they did a composite drawing of her?

CASEY ANTHONY: Not once.

CINDY ANTHONY: Well, they told us that you couldn`t pull her out of a lineup.

CASEY ANTHONY: They`re full of (EXPLETIVE DELETED).

I had told them multiple times, "Find a sketch artist. Show me pictures. Show me something. I can point her out to you."

(END VIDEO CLIP)

(COMMERCIAL BREAK)

VELEZ-MITCHELL: We`re back discussing the latest twists and turns in the Caylee Anthony murder investigation. Phone lines lighting up.

Christine in Canada, your question or comment, ma`am.

CALLER: Yes, good evening. How do you explain the cell phone pings which located Casey for quite a long period of time around the wooded area near the airport and the actual area where Caylee was found, because I understand it`s quite a distance between the two places? So what was she doing around the airport at that time?

And I have a second question. How come cadaver dogs did not hit where Caylee was found, because a few months ago the dog experts on "NANCY GRACE" explained that dogs could detect a dead body in the water.

VELEZ-MITCHELL: Very good questions. You`re doing your homework up there in Canada. Kathy Belich, why don`t you take a crack at a couple of those?

BELICH: OK. I might have a couple of answers to both of them.

As far as what she was doing in the airport area, that`s still a mystery. Her cell-phone records show that she was in that area during the month that, you know, before we knew that Caylee had disappeared, and there was no obvious explanation for that. She had not been in that area before. So we don`t know the answer to that question.

As to why the cadaver dogs didn`t pick up, that area where Caylee`s remains were found, as I understand, was not the exact area where Casey used to hang out with her friends when she was younger. It was very close to it. I don`t know that the sheriff`s office took cadaver dogs in that same exact area.

And when EquuSearch went back to search, apparently, there was water in that area, but that wasn`t exactly where Casey used to hang out with her friends. It was down the road a bit.

VELEZ-MITCHELL: Yes, it`s amazing that the executive said when Roy Kronk called, "Oh, the cadaver dogs have searched that area and cleared it." That -- I think that`s going to probably help the defense.

Lisa in Texas, your thought or question.

CALLER: Hi. Yes, I`m wondering about the grandparents. Are they going to be investigating anything with them? I mean, if both their daughter and granddaughter lived there, how do you miss them for a whole month and not know what`s going on? Because the grandmother is very -- she acts very protective.

VELEZ-MITCHELL: Well, Pat Bondi, I mean, certainly the grandmother`s defense, she was trying to find out where her little granddaughter was. And her daughter, who I think we all agree is a pathological liar, gave her a bunch of really ridiculous excuses. And finally, she`d had enough. And that`s when she called 911.

But I hear -- there are reports that Cindy and George might be asking for immunity. What`s your thought on that?

BONDI: Well, I doubt they`re going to be given immunity. I think the prosecutors -- it`s a real tough situation, Jane, and we come in contact with cases like this all the time where you have to wait.

Do you want to go after the parents, if you think they were involved? Or do you want to go after the actual killer of the baby? Because right now, they need those parents as witnesses.

And I don`t think anyone thinks that the parents knew beforehand what Casey was going to do. They may have believed after the fact that, sure, something happened to Caylee. And that`s evident by Mrs. Anthony`s phone call to 911 initially.

And then the dynamic of the situation, where you have a mother protecting her daughter who also loves her granddaughter. So prosecutors are going to have to make the decision whether they want to use these two people as witnesses.

I think George Anthony is a very crucial witness in the case.

VELEZ-MITCHELL: Right. You`re saying they can`t afford to alienate them.

BONDI: Yes.

VELEZ-MITCHELL: Because they need them to really tell their story and we all have so much compassion for what they`ve been through. I mean, their lives have been so decimated.

Hold all those thoughts. We`re going to have more on the Caylee Anthony murder investigation in a bit.

Plus, an update on the shocking new details in the disappearance of 25-year-old Laura Garza. I will be talking live to her brother, next.

(COMMERCIAL BREAK)

VELEZ-MITCHELL: Tonight, stunning new developments in the tragic case of 16-year-old Jett Travolta. New reports say the boy had a pulse when rescuers reached him. Is there any way he could have been saved? We`ll have the latest.

And why isn`t a Ponzi scheme mastermind Bernie Madoff behind bars? I want to hear what you think of Madoff in the latest bombshell charge that he was trying to hide a million dollars worth of jewelry after his arrest by mailing expensive trinkets to family and friends.

I`ll be taking your calls on the case against $50 billion scam artist Bernie Madoff -- Madoff is what they call him actually like made off with money -- in just a bit. I think this slime bucket belongs in the clinker. Do you think the judge should lock him up? Call me, 1-877-JVM-SAYS; that`s 1-877-586-7297.

But first we`re continuing our discussion on the latest developments in the Caylee Anthony investigation. I am joined by my expert panel: Drew Findling, criminal defense attorney; Pam Bondi, Florida state prosecutor; Terry Lyles, crisis expert and psychologist; and Kathi Belich who has been covering this case for our affiliate WFTV from the very beginning.

I want to go out to Drew Findling and talk about this whole issue of whether Casey Anthony will be allowed to watch the funeral. They`ve already said she cannot leave jail to attend her daughter`s funeral. What do you think about that? And then what do you think about this debate about whether she could actually even watch it on television?

DREW FINDLING, CRIMINAL DEFENSE ATTORNEY: That`s really an administrative decision and that`s up to the prison system there or the jail system there.

VELEZ-MITCHELL: But do you think it`s right or wrong? Do you think that she -- should she be deprived of the right to even watch her?

FINDLING: I do not think so because right now no matter what anybody thinks and what anybody feels about what they`ve heard about the case, she is presumed innocent. So she sits in that jail, albeit arrested and charged; she is innocent right now and not proven guilty.

So therefore to some degree, with security taken into account, obviously through video, she should be allowed to be part of it.

VELEZ-MITCHELL: You know what I find fascinating, Dr. Terry Lyles, I was under the impression that she was watching everything; watching TV voraciously. But apparently, according to reports we`re getting, she is not. First of all, she`s only allowed out of her cell about an hour a day, she`s to shower, et cetera. But apparently she doesn`t have that much interest. How would you explain that psychologically? Is she just in denial and tuning out?

DR. TERRY LYLES, CRISIS EXPERT: She could be in denial. It may just be a way of numbing out that she just doesn`t want to hear it because a, it`s either too close to what really happened and she knows or b, she just can`t tolerate it.

And back to the earlier question about the whole process of watching that funeral. I mean, if she is innocent and they don`t allow her to watch the funeral of her own child, that`s atrocious, I think. Regardless of what happens, people need to get closure even; if it`s her and she is guilty there still needs to be a closure factor there along with her penalty and sentencing. That was still her daughter regardless of what took place.

VELEZ-MITCHELL: And Pam Bondi, couldn`t the defense use that? I could just see that in closing statements. Oh, this woman wasn`t even allowed to watch her daughter`s funeral as she sat behind bars.

PAM BONDI, FLORIDA STATE PROSECUTOR: I don`t think that would be relevant or admissible in a trial. I don`t disagree with what anyone said so far that even if she is guilty, if it`s the policy of the jail to let her watch television if she wants to then let her be allowed to watch her child`s funeral and then maybe she`ll actually show some remorse.

VELEZ-MITCHELL: Let me ask you Kathi Belich about these two private investigators because there`s still a lot up in the air with these two guys who went to the location where the body was ultimately found a month earlier and videotaped.

And there`s this huge controversy. They were supposed to hold a news conference, they didn`t. Are they at odds? Because Leonard Padilla, the bounty hunter, is claiming one of them told him that he was told let`s get down there because Caylee is deceased and the other one was saying no absolutely not. We were just there to cross off another area that a friend had pointed out.

KATHY BELICH, WFTV: That`s right. They are at odds as to their explanations as to why they were there. There is also a question of whether there is a second tape. So there are a lot of questions unanswered and I think investigators are planning to talk to them soon. Maybe they will get some answers. I don`t know how soon we`ll get some answers and get to the bottom of it.

VELEZ-MITCHELL: I mean, that is -- of all the strange developments, that has to be the strangest that there are these two private investigators and are they in the area? I imagine the cast of characters that has accumulated coming out of the woodwork vis-a-vis this case.

And that`s what happens with these big cases, Pam Bondi. You`ve covered so many of them. What happens with these gigantic cases and we`ve covered it with O.J. Simpson and the Michael Jackson case, and the Phil Specter case and all sorts of cases is that people start coming out of the woodwork and they get stranger and stranger as the case snowballs.

BONDI: Yes. Yes, they do. Jane, I think that`s one of the best reasons for finding the little girl`s body because I think if they hadn`t we were still going to have people coming out of the woodwork with Caylee sightings six months from now. But sure, that`s just part of a big case with all the publicity and whether this tip line the defense has set up is really going to give any incredible tips to help the defense. I doubt it, but yes, we`re going to be hearing I think even more bizarre stories as this case continues.

VELEZ-MITCHELL: I think you are a very good predictor.

I want to thank my incredible panel, Drew, Pam, Terry, Kathi, thank you so much. Come back real soon. We want your insights again.

Just a reminder, "Nancy Grace" is on immediately following this program at 8:00 p.m. Eastern. She will have an exclusive interview with the psychic who claims she knew where Caylee`s remains were and that was before they were found and she said she can prove it with videotape. You don`t want to miss that one.

Another horrifying story: the ongoing search for clues into the disappearance of beautiful Texas native Laura Garza after leaving a trendy Manhattan nightclub. Sadly, authorities now say, quote, "it`s still being classified as a missing persons case, but we will do our investigation and documentation as if it is a homicide," end quote.

Garza, an aspiring dancer was last seen one month ago in the company of Michael Mele, a convicted sex offender, who has a history -- it`s disturbing to say it, but these are the facts -- a history of masturbating on women in parking lots. He is being held on a probation violation. He is considered a person of interest in Garza`s disappearance while authorities frantically search for evidence to tie him to the case.

Mele remains completely silent. Police say after Garza`s disappearance, Mele`s SUV was cleaned, carpeting was missing from his apartment, reportedly big enough to wrap a body in. He also had bite and scratch marks indicating a possible struggle.

With me now is a very brave man, part of a very brave family, Laura Garza`s brother Nicholas Garza and Wilda Cardera (ph) founder of Emergency Rights which is a South Bronx victims` rights organization.

I want to start with you, Nicholas.

NICHOLAS GARZA, LAURA GARZA`S BROTHER: Yes, go ahead.

VELEZ-MITCHELL: Thank you for joining us.

GARZA: Thank you for inviting me.

VELEZ-MITCHELL: I know this has to be difficult and excruciating. I`m trying to feel your pain and obviously I can only vaguely understand what you and your family must be going through. Speaking on behalf of the show and everybody who works on it our hearts are with you.

You and your mom have come up from Texas searching for your sister. Tell us about your attempts to talk to the person of interest in this case, Michael Mele. What do you want to talk to him about, how have you tried to get to him, what`s his response? Tell us all about it.

GARZA: We`ve been talking -- we went to the Orange County jail to see if we can talk to him. He refused to talk to us. I don`t know why. If he`s not involved in anything, I mean, there is nothing why he won`t talk us to.

I mean, we just want to know that everybody knows where is Laura? He`s already in trouble. We just want to know where is Laura? Where is my sister? We are just wondering if -- at this moment it`s been one month ago, and just -- we just want to find her. I mean --

VELEZ-MITCHELL: Wilda Cardera, my understanding is that there is a videotape here that has been seen by the family of Laura Garza while she was still in the nightclub in lower Manhattan and that based on your visual observation of this video, you believe she was drugged. Tell us about that.

WILDA CARDERA, FOUNDER, EMERGENCY RIGHTS: We saw this video and it`s actually her dancing, having a good time just like every other young lady that was in here. And we normally saw when he gave her a drink and after a drink, after a while we saw that she started acting different. So we know he must have put some drugs in there. And from there she left with him and we saw when they actually left together.

And for him to deny that he`s not with her or he wasn`t with her and all of a sudden she disappeared now and he doesn`t want to talk. All of this is, like, okay. He doesn`t want to talk because he showed up with lawyers. His father is a cop. He`s a very smart man; he told his son to show up and turn himself in with lawyers that they don`t interrogate him. So by him doing that he doesn`t want to talk.

We`re reaching out to everyone and let everybody know that we want the parents, his mother and father to know that they know where their son is at, but we don`t know where Laura is at and her mother cannot sleep. Her mother and her brothers cannot sleep. And we want her to know as a mother she knows where her son is at, but this lady doesn`t know where her daughter is at.

We would like her to please help us by telling her son if he`s guilty and say let them know where their daughter is at, at least.

Laura was not the type of young lady -- as I`ve learned from her friends from work, her friends from Texas -- they all say Laura was not the drinking type of young lady. She was always a very honest, clean young lady and all she went out was one night just to have a good time. And it just ended up that she met the wrong guy and he put drugs in her drink.

VELEZ-MITCHELL: I understand that you have offered a $4,000 reward, Wilda, for information leading to Laura Garza. So if you can give us a very brief update on the search that`s going on now that Nicholas and the rest of the family -- I understand that they`re going broke staying here because they`re from Texas. They`re staying in New York which is an expensive place all in the attempts to find out what happened and locate their sister.

CARDERA: Yes. What`s going on is that the award now is $15,000.

VELEZ-MITCHELL: Wow! It`s gone up.

CARDERA: Yes. We had a jeweler from upstate New York who actually donated $10,000 and these are all commitments. And right now Nicholas is actually just found out a little while ago that he is losing his job for being in New York and not able to go back to Texas.

VELEZ-MITCHELL: Oh, what a tragedy. I hope that people watching maybe you`ll get a job. I can only pray. Thank you so much. We pray for Laura.

CARDERA: Thank you for having us on and we`re asking for everyone to please pray.

GARZA: Thank you very much.

VELEZ-MITCHELL: Yes. Absolutely. Let`s hope we find her.

(COMMERCIAL BREAK)

VELEZ-MITCHELL: Should Ponzi scheme mastermind Bernie Madoff be behind bars? I will take your calls on that in a bit, but first at the top of the block tonight.

New details emerge in the tragic death of John Travolta`s son, Jett. TMZ reporting 16-year-old Jett may have had a faint pulse when he was found unconscious in the bathroom on Friday. The mortuary director for the Travoltas also reported the cause of death listed as a seizure on the death certificate.

But official autopsy results have not been released. John Travolta and his wife Kelly Preston are expected to be questioned as part of the routine investigation into Jett`s death. Hoping to gain some closure, the Travoltas left the Bahamas last night with an urn of their son`s ashes. A truly heartbreaking story.

We move now from grief to rage. Ponzi scheme mastermind Bernie Madoff allegedly stole $50 billion from investors -- billion. But he`s still walking around his posh Manhattan apartment and living his lavish lifestyle. I say lock him up. I may get my wish.

Prosecutors want a judge to revoke Madoff`s bail and throw him in jail, claiming he secretly mailed more than a million bucks worth of jewelry and valuables to relatives and friends over the holidays. That, says the prosecutor, is a clear violation of his bail. Madoff`s defense lawyer claims the objects were simply heirlooms innocently sent to Madoff`s kids.

As of now the judge is thinking this one over weighing written arguments from both sides before making his decision which is expected this week. Hey, what`s to think about? Isn`t it obvious? This guy belongs in the clink.

I want to hear what you have to say about this. Call me 1-877-JVM- SAYS; 1-877-586-7297 to weigh.

Joining me now: Congressman Anthony Weiner of New York who has publicly called for Madoff`s bail to be revoked and Ali Velshi, CNN chief business correspondent and author of the fantastic new book "Gimme My Money Back," your guide to beating the financial crisis. Ali, I`ve got your book right here in my paws. I`ve been reading it and it is packed with fantastic information. I`m going home and read it every night. Good information that I needed to know.

Isn`t the Madoff Ponzi scandal one of the very reasons that people are terrified of the financial markets? He proved unfortunately, that seeing money on a statement doesn`t mean the money is really there.

ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: Yes, the night it happened -- and I was covering the story -- I was speaking to a number of people on Wall Street about it, trying to find out about Bernie Madoff and almost everybody to the end, some knew of him and some knew what he was up to, but all of them said this is the last thing that the market needed.

It had taken such a beating and people lost all this money and then to find out that there was fraud. This is what people don`t trust. They`re already freaked out and then to see what a guy like Bernie Madoff by his own admission did. He ruined people`s lives. That was sort of the last straw for a lot of people and they said we`re out of here. I`m not letting anybody else touch my money. It may not earn anything in my mattress, but I can see it and I know where it is.

VELEZ-MITCHELL: Congressman Weiner, you`ve been out in front on this issue. Where is the outrage and why is it that the courts have to ponder so much whether this guy should be out of jail or in jail? Isn`t it obvious? It`s obvious to you and me that he is a flight risk. I mean, that`s my personal opinion. That`s what prosecutors say that when he`s in jail he`s going to be more hard pressed to move around his money and there`s a million reasons why this guy should be behind bars.

REP. ANTHONY WEINER, (D) NEW YORK: Jane, you have it right. This is an outrage. This really is an outrageous situation. The question is should his bail be suspended. Why did he get it in the first place? This guy should go two places each and every day. One, he should be in a dark, dank cell with the worst of criminals and the only time he should leave is to show the prosecutors exactly where he hid whatever is left of his money so they can reconstruct this case and that`s it.

The idea that he`s sitting in a penthouse apartment on the east side of Manhattan and not only doing that, but also squirreling away money; if there was ever a circumstance of someone who might have a shoebox under his bed with $20 billion and have plans for a getaway in case he ever got caught, this is the guy.

He should never have been freed on bail while he`s waiting trial. He`s entitled to a fair trial. But while he`s awaiting that trial, he should be sitting without any opportunity for bail. And the prosecutors should have asked for that from the word go and this judge should not hesitate for a minute. Your same sense of outrage is what a lot of Americans are feeling now.

VELEZ-MITCHELL: It`s all over the streets. In fact, people are calling in.

Sheeba, Illinois, your thought or question on this.

SHEEBA, FROM ILLINOIS: Hi, Jane. This guy is a scumbag. I can see him taking from older people that had their pensions set up and then they thought, well, I`ll invest with him and I`ll have a little bit extra to spend when I get older.

I also wanted to tell you I saw your program on dogs. I have three shitzus that did not come from a puppy mill.

VELEZ-MITCHELL: Thank you. I`m glad to hear that you`re adopting dogs and not buying them.

Getting back to the money issue here, Ali; Here`s my thing and this is what I don`t understand. He allegedly stole $50 billion. That money`s got to be somewhere. He didn`t steal it to have it disappear into thin air. He stole it, presumably, allegedly, to keep for himself. He claims there`s only $300 million -- $200 million to $300 million left. Where did it go?

VELSHI: Well, we`re not sure if it`s $50 billion because this is his own accounting. Some of it was his own inflated accounting; it might be $30 billion. We`re trying to -- the investigators are trying to get their head around what is real and what was invented.

The other thing is he was taking in a lot of that money and theoretically showing it to other people as their returns over the course of the year, some people did redeem it. But it`s fascinating to me.

I mean, most people can`t count to $30 billion. How it got to $300 million? So I think the Congressman`s right, there`s got to be money somewhere. And maybe the hope is while he`s out of jail, he`s somehow going to lead someone to it.

But I have to tell you, to Sheeba`s point that`s the devastating part for me as a journalist. And when it was Enron, it was Worldcom. Somebody my age will recover it but when you take it from elderly people, it`s devastating.

VELEZ-MITCHELL: Congressman Weiner, the SEC let us down.

REP. WEINER: No doubt about it. This guy is a crook but he is a crook that left a trail of clues over the course of years that a lot of people not only found but reported to the SEC and they did nothing about it.

VELEZ-MITCHELL: All right, Congressman, we`ve got to leave it right there, thank you. Ali, stick around, I want to get your investment tips in just a second.

(COMMERCIAL BREAK)

VELEZ-MITCHELL: We`re talking, perhaps, the largest Ponzi scheme ever in the history of humankind. Congressman Weiner, do you think much more money than we`ve reportedly heard $200 to $300 million is out there and where could it be, offshore accounts?

WEINER: Well, that`s something that something that the prosecutors need to get. There`s only one reason Madoff should be out of jail at anytime and that would be to lead us on a trail. And even his lawyer`s saying he`s not sure he`s cooperating with this investigation; another reason that Madoff should be locked up.

We`ll hopefully unravel this but there are so many people, not only individuals but, charitable organizations that were taken by this guy. It`s truly outrageous and we should close the barn door by having better regulations but we should throw the book at this guy if he turns out to be guilty.

VELEZ-MITCHELL: Well, I say yank his bail. And hopefully you`ll come back sooner and we can discuss it when his bail is yanked. Thank you so much, Congressman, --

WEINER: Thank you.

VELEZ-MITCHELL: I`m glad to have you . I want to talk to Ali Velshi about this great book, "Gimme Me My Money Back;" so much information. Ali, we`re at such a crucial time. What is you`re advice I mean, given the tenuous times we`re in, in terms of investments, stocks, real estate, bonds, what have you.

VELSHI: All right here is the thing, the one thing that you want to do is protect yourself from something like fraud, for instance. If you`re afraid of something like that happening, diversify your investments. Make sure you don`t have more than five percent in anything, in any one investment. Use mutual funds. Use index funds.

The average person, Jane, you know about stock trading but the average person doesn`t really and shouldn`t necessarily be involved unless you have some particular connection to a company that would make you want to investment in it.

Now, diversification, most people think of it as something that protects you to having all of your eggs in one basket, so if the basket falls all your eggs don`t break. But actually there`s more to it than that it, if you diversify you actually do better than if you -- on a real basis, than if you just invested in one or two types of assets.

And fundamentally, most of the return that you earn in a portfolio is based on how you allocate the different assets, the different portion. It`s got a lot more do than what you buy and when you buy and when you sell it.

So the average person can read the book, do a little studying on their finances, set up a portfolio, go right to your computer, set up your 401(k), your IRA, check it three times a year, and that`s it.

It doesn`t take a lot, but it does take a little.

VELEZ-MITCHELL: We have about 20 second. Good time to buy stocks or not?

VELSHI: I think so and I think for most people their strategy has got to be about the long term. The market doesn`t care that you`re scared or that it`s down. I think you have to be diversified for the long term, and yes, I think people should take advantage of getting in and investing right now.

VELEZ-MITCHELL: Ali, thank you so much. And I hope that you come back soon, I love having you on.

VELSHI: I will always come back.

VELEZ-MITCHELL: I love having you on.

VELSHI: It`s my pleasure.

VELEZ-MITCHELL: The book is called "Give me my Money Back." I it`s a great book, I am reading it now. And make sure that you pick it up.

And I`m Jane Velez-Mitchell and you are watching "ISSUES" on HLN.

(COMMERCIAL BREAK)

VELEZ-MITCHELL: Will a judge rule that alleged Ponzi scheme scoundrel Bernie Madoff needs to wait for his trial behind bars rather from the comfort of his luxurious Manhattan Penthouse? Well, time will tell and I`ll bring you the very latest as it happens.

But right now it`s time to find out what Nancy Grace has for us tonight. Hi, Nancy.

NANCY GRACE, HN NANCY GRACE SHOW HOST: Jane, tonight another bombshell in the Caylee Anthony investigation; very disturbing, Jane. Are there plans to sell images of little Caylee`s remains? We also learned a renowned psychic ID`s the crime scene before police.

And a twist in a sudden and unexpected death of mega star John Travolta`s young son there in the Bahamas.

VELEZ-MITCHELL: Nancy, lots to talk about. Thank you so much, can`t wait to see it all. "Nancy Grace" starts right now.

END

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