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ISSUES WITH JANE VELEZ-MITCHELL

FBI Investigated Playboy Playmate for Alleged Plot to Kill Stepson; Does Father Doubt Wife`s Story about Night Daughter Vanished?

Aired October 7, 2009 - 19:00   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, a bombshell straight from the FBI flips the script in the Anna Nicole Smith drama, and this time, she`s the one being investigated for murder. Smith was interrogated by the FBI on suspicion of allegedly plotting to kill her stepson rival. That while the two were battling for her dead oil tycoon husband`s half-a- billion-dollar estate. Anna Nicole died two years ago and can`t defend herself, but was this kooky Playmate really capable of murder?

And massive developments in the Haleigh Cummings case-turned-divorce- saga. The little girl`s dad now says he was disturbed by his new wife and her ever-changing story about Haleigh`s disappearance. Ron still won`t admit that`s why he`s divorcing Misty, but what does this mean for the investigation?

Also, jealousy, envy, sex and blackmail. A source now tells "The New York Post" that David Letterman`s sex-laced extortion case was fueled by revenge. This unnamed source says the CBS News producer wanted to hurt Letterman because he was having sex with his live-in girlfriend.

Meanwhile, the mistress` grandma is talking, and you`re not going to believe what she`s saying.

Plus, heart-wrenching new details in the NYPD drunk driving case. We`re going to talk to the father of the woman who was mowed down by an NYPD officer while that cop was allegedly boozed up behind the wheel. Why did it take more than seven hours to give that officer a sobriety test? Is the NYPD trying to cover up a crime? We`re looking for answers on a father`s quest for justice.

ISSUES starts now.

(END VIDEOTAPE)

VELEZ-MITCHELL: Tonight, head-spinning new charges against the late Anna Nicole Smith. That`s right. Long before her tragic death, was the former "Playboy" Playmate plotting to murder for millions?

Top-secret FBI files just released allege Anna Nicole Smith was a suspect in a scandalous murder-for-hire scheme. The target? Her stepson and nemesis, E. Pierce Marshall. Shocking claims from Anna`s ex-boyfriend. He tells "Inside Edition" it`s true.

(BEGIN VIDEO CLIP)

MARK HATTEN, ANNA NICOLE SMITH`S EX-BOYFRIEND: She`d get jacked up on pain pills, and then this would come out. We`d be laying sleeping together and then she`d start saying, "Mark, you got to kill him. I`m Anna Nicole. I can`t -- you got to take care of this for me. I`ll do anything for you. We`ll be set."

(END VIDEO CLIP)

VELEZ-MITCHELL: I wonder if that guy`s got credibility problems. I seem to remember something about Hatten.

Anna Nicole was a 26-year-old stripper when she married ancient, and I mean ancient, oil tycoon J. Howard Marshall. That`s ancient. When he died, his son Pierce stood between Anna and a half a billion dollar fortune. The two viciously battled for those big bucks in court.

Anna Nicole vehemently defended her love for her 89-year-old hubby.

(BEGIN VIDEO CLIP)

ANNA NICOLE SMITH, MODEL: I want to tell my husband, J. Howard Marshall, that I love him very much and I wish he was here and I miss you.

(END VIDEO CLIP)

VELEZ-MITCHELL: Would Anna Nicole Smith be willing to kill for $500 million? That is the question tonight.

FBI documents reportedly show mysterious and bizarre items. What a shock. A revolver, a huge knife, and a black-and-orange Dr. Seuss Cat-in- the-Hat-style cap -- hmm -- were taken from the model`s home as part of the FBI investigation.

"The New York post" reports the U.S. attorney`s office says the case was finally dropped. There was insufficient evidence to prove Anna Nicole was behind a murder-for-hire plot to kill Pierce Marshall.

Both Anna Nicole and E. Pierce Marshall have since died, but the war for that half-a-billion-dollar fortune, it rages on. It could make this little child, Anna`s daughter, Dannilynn -- there she is on the cover of "Us" magazine -- a multimillionaire, half a billionaire one day.

Straight out to my fabulous expert panel: former FBI agent in charge, Don Clark; legal analyst for "The Insider" Darren Kavinoky; CNN legal analyst Lisa Bloom; and Paul Boyd, correspondent from "Inside Edition."

Paul, we have both covered so many crazy and disturbing Anna Nicole stories. Could this be the craziest of all?

PAUL BOYD, CORRESPONDENT, "INSIDE EDITION": It was a shocking revelation. I mean, who would have thought Anna Nicole Smith investigated by the FBI for allegedly plotting to murder somebody. It kind of came out of left field, but here we have the FBI documents, and it`s stunning.

VELEZ-MITCHELL: Yes. And you know, after Anna Nicole died from a drug overdose, there was that nasty custody battle that ensued, and it was all really about money at the end of the day.

The big mystery: who was the real dad of Anna Nicole`s brand-new baby, Dannilynn? Men came out of the woodwork claiming to be the father. You remember Anna`s longtime companion, Howard K. Stern. Who could forget him? Even Zsa Zsa Gabor`s kooky husband, Prince Von Anhalt. And we certainly could never forget him.

Well, we all know at the end of the day, this man you`re looking at right there, not Larry King but the other one, the one holding the baby, Larry Birkhead, turned out to be the real papa. OK. Let`s listen to him.

(BEGIN VIDEO CLIP)

LARRY BIRKHEAD, FATHER OF DANNILYNN: I hate to be the one that told you this, but I told you so.

There`s certain things that I can`t talk about, but this is one that I`m happy to talk about, and my baby`s going to be coming home pretty soon.

(END VIDEO CLIP)

VELEZ-MITCHELL: I love that guy. Handsome, and I think he is a good daddy.

Lisa, the battle over J. Howard Marshall`s fortune, $500 bill, has been a very complex saga that went all the way up to the Supreme Court. I`m almost afraid to ask, where does it stand now?

LISA BLOOM, CNN LEGAL ANALYST: Well, the battle still rages on, Jane. And that`s why this whole murder-for-hire plot really doesn`t make any sense to me. Because eliminating J. Howard Marshall Jr. from the picture does not end the court battle.

So I don`t think Anna Nicole was capable of murdering anyone. And by the way, he died of natural causes. He was not ultimately murdered.

If I may take a page from that Cat in the Hat piece of evidence, she would not, could not, with a knife. She would not, could not take his life. I just don`t believe it. I`m not buying this story.

VELEZ-MITCHELL: I love that.

DARREN KAVINOKY, CRIMINAL DEFENSE ATTORNEY: Lisa, you mean you don`t...

(CROSSTALK)

VELEZ-MITCHELL: Come on, let`s give Lisa a hand. That was very good.

BLOOM: Thank you.

KAVINOKY: You don`t think that, of all the things that Anna Nicole might be remembered for, that criminal mastermind is going to be one of them?

DON CLARK, FORMER FBI AGENT IN CHARGE: No. It`s definitely not going to be one of them. You know, I tell you what, I agree with Lisa, too. I just think that this is ridiculous.

And look at the person who`s bringing this about. Mark Hatten? I mean, come on, this guy was a prisoner. That`s what prisoners do. They try to figure out some way to get out. And they went to the FBI and used up a lot of time there.

VELEZ-MITCHELL: Yes. And you know.

KAVINOKY: I think -- I think Mark Hatten`s nickname was "Hollywood," which should be a tip-off. I just think we should all be on notice that any time you name or nickname somebody "Hollywood," that they`re destined for trouble. It usually doesn`t end well when somebody`s got that as their moniker.

VELEZ-MITCHELL: Well, they were not friends. Hatten and Anna Nicole were involved in a lot of conflict that went into the courtroom. So his motives are suspect.

Now, I have to say this, Paul Boyd. This was not some joke, however. We`re laughing about it because it`s so bizarre, but the FBI actually interviewed Smith in the year 2000 about this alleged scheme, and said she began crying.

And they went even further. They recorded telephone calls with Anna Nicole Smith, and they also spoke to Pierce Marshall, who said that she was rarely with his old father after they got married and routinely asked him for 50 to 60 grand two times a week. So you`ve got a motive there, and the motive is greed.

BOYD: The FBI took this very, very seriously. At least two special agents went to interview Anna Nicole. Who knows how many others were involved chasing down other leads?

At Anna Nicole`s house, they actually confiscated .350 magnum revolver, a 3-1/2-inch stainless steel knife, this crazy hat that you described in the open. I mean, the FBI were looking into this very seriously.

At the end of the day, though, it is important to know that, for all intents and purposes, Anna Nicole Smith was cleared of any allegations, any wrongdoing. And as your other guests are pointing out, Mark Hatten was in jail for making criminal threats against Anna Nicole...

VELEZ-MITCHELL: I covered that case. I covered that case.

BLOOM: Jane, let`s remember also the history that Anna Nicole was involved for three years with the old guy, J. Howard Marshall, and he begged her to marry him, week after week for three years.

VELEZ-MITCHELL: All right.

BLOOM: She wouldn`t do it until she had her own career, until she was a national Guess model.

VELEZ-MITCHELL: Well, I think you`re giving her the benefit of the doubt, Lisa. And I think that`s kind-hearted of you, but that brings us to tonight`s big issue. Greed, the deadly sin. Anna Nicole`s life was full of greed and over-consumption. She was constantly chasing her fairytale ending. Listen to this.

(BEGIN VIDEO CLIP)

SMITH: To have all this fame and fortune, it`s just -- it is a Cinderella story to me.

(END VIDEO CLIP)

VELEZ-MITCHELL: Well, guess what? We got to at least look at her. She`s always, boy, you know, she was a gorgeous woman. And yet she did everything in a super-sized fashion. She lived perhaps too large. Never had enough money, fame, drugs or alcohol.

So you know, was she trying to fill some kind of void? I certainly think so.

And let`s hear what our viewers have to say. Elizabeth, Texas, your question or thought, ma`am?

CALLER: Actually, I wouldn`t be surprised if she was involved in something like that. Drugs was the main line in her life, with money and power. And she had all of her little henchmen around her until the deck of cards started falling.

VELEZ-MITCHELL: I agree. And you know, Lisa, I do think when somebody is doing drugs, they`re capable of anything, even a crazy plot like this, even if -- even if it was something that sort of fell by the wayside.

BLOOM: You know, I just think this is terribly unfair. She`s innocent until proven guilty, and she was never even charged by the FBI. There never was a murder. And now she`s deceased and can`t defend herself. So I really think any kind of piling on, on this poor woman at this point, for something that never even happened, is awfully unfair to her.

VELEZ-MITCHELL: Well, you know, I think so, but...

KAVINOKY: The point you made, Jane, that I think is very, very well taken is that Anna Nicole led a life of -- that was big, and some would characterize it as being excess.

VELEZ-MITCHELL: Yes.

KAVINOKY: And what we see oftentimes is people who are trying to solve an inside problem with outside stuff.

VELEZ-MITCHELL: Right, and it came back to bite her.

Guys, got to leave it right there. We`re going to have more Anna Nicole drama right after the break. We`re also taking your calls. What do you think about this alleged plot: 1-877-JVM-SAYS. The FBI did investigate.

Coming up, is Ron Cummings divorcing the very last person who saw has daughter, Haleigh, alive because he does not believe her story?

But first, did Anna Nicole Smith seem like she was capable of murder? More mind-boggling developments right after the break.

(BEGIN VIDEO CLIP)

HOWARD K. STERN, ANNA NICOLE`S LAWYER: This footage is worth money.

SMITH: Why? What do you mean?

STERN: Is this a mushroom trip?

SMITH: Huh?

STERN: Exactly.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

ERIC BRUNSTAD, MARSHALL FAMILY ATTORNEY: J. Howard loved her, and he provided for her with that about $8 million that he gave her. But he was clear that that`s all he intended to give her, and so the Marshall family has been trying to honor J. Howard`s wishes.

(END VIDEO CLIP)

VELEZ-MITCHELL: That was the attorney for the family of the late billionaire, J. Howard Marshall. Anna Nicole waged a bitter battle against Marshall`s son, Pierce, who ultimately died. Seems like everybody involved in this is dead. But could she have been capable of plotting his murder?

Why is this coming out now, Don Clark? The FBI investigated Smith back in 2000-2001. Apparently, this is being released under the Freedom of Information Act. How does that work?

CLARK: Well, you know, the FBI has a certain time limit that it can keep documents on the shelf there before it`s authorized to give it out, but with the Freedom of Information Act, people put them in every day. And I would bet anything -- I haven`t seen the document -- a lot of the information there was redacted. But certainly it was enough there for them to make a story out of it and for us to be talking about it.

But I tell you another thing, too, Jane, is that if they spent the time that they did investigating this case, then I`m convinced that Anna Nicole had no plot to do anything to Pierce Marshall.

VELEZ-MITCHELL: All right.

KAVINOKY: Given that they found that knife and that gun...

VELEZ-MITCHELL: And not forget the Dr. Seuss hat.

KAVINOKY: Yes, I`m convinced that it`s Colonel Mustard with the lead pipe in the library.

CLARK: It wasn`t Anna.

VELEZ-MITCHELL: Yes, and...

BOYD: Anna Nicole Smith told investigators during that -- that interview that, "Why would I do this? He`s the trustee. If I killed him, the trust still exists, and I still would have a challenge to get at the money." So that`s a big hole in the whole plot, as well.

VELEZ-MITCHELL: OK. And by the way, she claims that her hubby promised her verbally that she would get the half a billion, and of course, the oil tycoon`s son said, "No, in the will she`s not mentioned." So that`s the basis of the conflict there.

Lisa, New York, your question or thought?

CALLER: Yes, I`m just calling to say that, you know, Anna Nicole Smith is dead and gone, and I don`t think she had a bad bone in her body. And just people need to let her rest in peace with her son. It`s bad enough her daughter`s without her. And I just feel like everybody should just leave her alone. I don`t think she would ever try to plot to kill anybody.

VELEZ-MITCHELL: Well, you know, you raise a good point, because obviously, there is still -- there`s legal action regarding her death. At one time it was thought that Anna Nicole`s own death might have been cold- blooded murder, an attempt to get access to her impending fortune. Her death has since been ruled an accidental overdose.

Now two of her doctors, and her lawyer and companion, Howard K. Stern, are facing charges that the drugs they helped get her, killed her. Howard K. Stern has pleaded not guilty. He testified it was grief that killed Anna Nicole Smith.

(BEGIN VIDEO CLIP)

STERN: From the day that Daniel died, Anna honestly was never the same. I mean, I would say that physically, she died last week, but in a lot of ways, emotionally, she died when Daniel died.

(END VIDEO CLIP)

VELEZ-MITCHELL: TMZ is reporting Howard K. Stern may soon face additional charges. That`s may. We don`t have any independent confirmation of that. He`s already facing four counts of obtaining fraudulent prescriptions, allegedly, and one count of allegedly prescribing, administering or dispensing controlled substances to an addict.

Darren Kavinoky, you are an interventionist. I think that the tragedy of Anna Nicole Smith, more than anything else, is the tragedy of drug addiction.

KAVINOKY: I agree with you wholeheartedly. And unfortunately, just like money can be an incentive for a lot of criminal acts, including murder, there were a lot of people in Anna Nicole`s life who profited by her remaining sick.

And let`s face it: one of the reasons that America tuned in week after week after week to "The Anna Nicole Show" was because she was a train wreck. Nobody was interested in seeing her turn around and get her life back on track.

VELEZ-MITCHELL: Right. She`s not entertaining that way.

KAVINOKY: Exactly.

VELEZ-MITCHELL: And Lisa Bloom...

BLOOM: Can I say something in Anna Nicole`s defense, though? Because she never got a dime from J. Howard Marshall`s estate. During the marriage, yes, he lavished her with gifts.

After he died, a lot of people don`t realize this, every dollar that she made, she earned. She earned it legitimately by modeling, by doing the reality show, by becoming a TrimSpa spokesperson. She was a single mother who supported her son, Daniel, and she was surrounded by sycophants, I agree...

VELEZ-MITCHELL: Let me just say this.

BLOOM: ... who didn`t help her with her drug addiction.

VELEZ-MITCHELL: I understand you`re defending her.

BLOOM: I think she deserves credit for what she did.

VELEZ-MITCHELL: All right. But I understand your defense of her. But when somebody has a severe drug addiction problem, what it does, it opens a Pandora`s box. And we`re capable of believing anything about them. Because once you see her in that clown face, slurring her words...

BLOOM: That was horrible. I agree.

VELEZ-MITCHELL: Yes. OK. Well, we agree on that. Thank you, fantastic panel. We`re going to have to leave it right there.

Coming up, head-spinning new details in the David Letterman extortion case.

And then, why does Ron Cummings want a divorce from his new wife, Misty? Is a lack of trust the issue? His child vanished on this woman`s watch.

In my new book, "iWant" I talk about how I fought an addiction to alcohol but finally got sober. Fourteen and a half years ago, I turned my life around. You know, I sat down recently with Dr. Phil to talk about my new book, "iWant." That interview airs tomorrow, Thursday, on his show. Here`s a peek at "Dr. Phil."

(BEGIN VIDEO CLIP)

DR. PHIL MCGRAW, TALK SHOW HOST: I think this is a real chronicle of courage and candor. I thought this took a lot of guts to write this honestly.

VELEZ-MITCHELL: Well, they say you`re only as sick as your secrets. And I decided it was time to get honest.

MCGRAW: Yes. And why? What was the thing that pushed you over the line?

VELEZ-MITCHELL: I wrote a book called "Secrets Can Be Murder," and I started to realize how fatal and how toxic secrets are. And then I started to look at myself, and I realized, I had a lot of secrets, and that maybe by telling my story, I might be of service to somebody out there grappling with the same problems.

I`m dealing with so many of the same issues that people across America are dealing with: alcoholism, consuming addiction, all of these different addictive behaviors that are really destroying our lives. And I just decided I`m going to tell my story, and maybe somebody out there can learn something so they don`t have to go through some of the hell I went through.

MCGRAW: This story is...

(END VIDEO CLIP)

VELEZ-MITCHELL: Now I want to hear your success story. What addiction have you overcome and how did you do it? Send your e-mail or iReport to me at CNN.com/Jane. If your story`s selected, you could win an autographed copy of my book, "iWant," and a trip to New York to visit me on the set of ISSUES. I want to hear your story of triumph. Tell me.

(COMMERCIAL BREAK)

VELEZ-MITCHELL: In tonight`s spotlight, are the walls closing in on Misty Croslin. The father of missing child Haleigh Cummings is divorcing Misty, the last person to see his little girl before she vanished. Is it because he is suspicious, as so many of us are, of her ever-changing stories? Ron addressed that very issue last night on "NANCY GRACE."

(BEGIN VIDEO CLIP)

NANCY GRACE, HLN ANCHOR: You told me that changes, even subtle, small changes in Misty Croslin`s story about the night Haleigh went missing bothered you. What changes...

RON CUMMINGS, FATHER OF HALEIGH: Yes, ma`am.

GRACE: ... if any, do you recall?

CUMMINGS: I can`t really recall the exact changes, and they`re real small. It`s not like she -- she pretty much tells me the same thing each time she -- I ask her about it.

(END VIDEO CLIP)

VELEZ-MITCHELL: I have so much compassion for that man, but why is Ron being so vague about whether or not he thinks Misty is lying? Is it because he kind of has to play along with her if he ever wants to get the truth about what happened to Haleigh that night?

Let me pose that question to my guests. We`re delighted to have Brandon Beardsley, Ron Cummings` attorney.

Brandon, thanks for joining us. Why is Ron, he appears to be dancing around the whole issue of whether or not he believes Misty`s story. Why?

BRANDON BEARDSLEY, RON CUMMINGS` ATTORNEY: You`ve got -- you`ve got to understand that they`re married, and he truly loves her. Now, is it a reason? He has never stated and has never came out of his mouth that he does not believe her, he does not trust her, and that the rumors or speculations that she`s not telling the truth or telling everything is a reason.

But you know, you`re an educated woman. There`s -- I`m an educated person. People that have common sense know, you know, or should know...

VELEZ-MITCHELL: Doesn`t add up.

BEARDSLEY: If it -- if it -- every time you turn on the TV, every time you hear something, the fingers are pointing at her. I mean, it has to, you know, weigh on him, but he`s absolutely never said that as a reason.

VELEZ-MITCHELL: It`s not just the fingers, it`s she failed some polygraph tests, a voice stress test. There`s inconsistencies in her story. Her brother went knocking on the door that night when she says she`s home. He says nobody was there.

Now, what I saw last night on "Nancy Grace" was really a -- I`d have to say, a heartbroken, almost tortured Ron Cummings. And I certainly do not blame him. He has endured eight long months of not knowing what happened to his very precious daughter. He says it`s the pressure of that case that caused his marriage to crumble. Listen.

(BEGIN VIDEO CLIP)

CUMMINGS: Miss Nancy, I`m not sure what`s going to happen in the long run. I can`t predict the future. But I -- I would sure hope that just -- with the family problems and everything else, it`s too much on the relationship.

(END VIDEO CLIP)

VELEZ-MITCHELL: What`s the best hope of finding out the truth about Haleigh? I mean, cops put the pressure on Misty`s brother, now the mom`s in jail on a check fraud allegation. Are they putting the squeeze on this family? Wouldn`t Misty be likely to confide in mom?

BEARDSLEY: I don`t know. I mean, you got to understand, this is a very strange family. You got to look at the sources that, you know, the statements the brother made, where it`s coming from.

That`s another big reason for his divorce. He`s married, but he doesn`t have a family on the other side. When two people get married, their families join. You know, there`s injunctions between Misty and some of her brothers. You have the mother making statements and threats about Ronald, and now she`s doing it about Misty.

I mean, it is just a completely dysfunctional situation that is merely adding on to the pressures that he deals with every day from losing his child, and it`s just something he`s not willing to deal with anymore.

VELEZ-MITCHELL: And -- and Brandon, we have to leave it right there. Thank you so much. Please come back soon. We hope you find little Haleigh.

Dave Letterman, the extortion plot thickens. You will not believe the shocking details.

(COMMERCIAL BREAK)

VELEZ-MITCHELL: Jealousy, envy and blackmail. A source now tells the "New York Post" that David Letterman`s sex-laced extortion case was fueled by revenge. Meanwhile, the mistress` grandma is talking and you`re not going to believe what she`s saying.

Plus, heart-wrenching new details in the NYPD drunk driving case: we`re going to talk to the father of the woman who was mowed down by an NYPD officer who was allegedly boozed up behind the wheel. Why did it take so long to test him?

Did a toxic cocktail of jealousy, anger and desperation fuel a twisted plot to blackmail David Letterman? "The New York Post" tonight quotes anonymous sources who claim they know why high-powered CBS producer Joe Halderman of "48 Hours" fame or infamy allegedly wanted David Letterman against the ropes.

According to "The New York Post" Halderman discovered that his live-in girlfriend, Stephanie Birkitt, was still having sex with her boss, David Letterman, during the time that she and Halderman were in a relationship. Prosecutors say Joe Halderman tried to squeeze $2 million from Letterman.

Tonight, sources say quote, "This wasn`t about money alone. This was revenge. It was all about making Letterman miserable," end quote. Perhaps, but Dave`s late show ratings have soared since the scandal broke, so tonight we ask the question, is Dave having the last laugh? His audience was certainly laughing last night.

(BEGIN VIDEO CLIP)

DAVID LETTERMAN, CBS HOST: And you know the tradition of the Broadway Theater is that if the leading characters can`t go on, they always have understudies so I was thinking we should get an understudy for me because there`s a wide variety of reasons I might not be able to continue. You just never know.

(END VIDEO CLIP)

VELEZ-MITCHELL: He certainly is a brilliant comic, you`ve got to hand him that.

As for Stephanie Birkitt, not a peep from her; we have reached out to her. We haven`t heard back. She has an open invitation to tell her side of the story right here on ISSUES.

Meantime, Stephanie`s grandmother did talk to "The New York Post." It appears grandmama no fan of Stephanie`s boyfriend, Joe Halderman and that it was quote, "stupid" for Stephanie to go out with him. She calls Joe a quote, "mistake." You think?

Grandma`s not the only woman speaking out. The National Organization for Women is lashing out at David Letterman`s habit of going to the office well to wet his whistle, saying it raises abuse of power issues that can create a hostile work environment.

We`ll talk about it. Tonight`s big issue: is sex at work ok and if so, when?

Straight out to my fantastic panel: Lisa Bloom, CNN legal analyst; Wendy Murphy, former prosecutor, author of "And Justice for Some" and professor at New England School of Law; Stacy Kaiser, psychotherapist; and the lone male on the panel, Carlos Diaz. I know you can handle us.

CARLOS DIAZ, EXTRA: I don`t like my odds here. I`m not going to make any comments about sex in the workplace, ok, because I`m going to get killed on that.

LISA BLOOM, CNN LEGAL ANALYST: Carlos, bring it.

VELEZ-MITCHELL: We`re not going to put you on the spot, per se. We`re going to put David Letterman on the spot tonight. What is the latest?

DIAZ: Thank you.

The latest is that you know, now you have another motive here, which could be revenge. We knew before that Joe Halderman had some financial difficulties, but now when you throw the revenge factor in there, it becomes more and more like a Hollywood script every day. A jilted lover who not only wanted money but wanted to see Dave burn. And Dave even said it when he made the admission last Thursday, he said that, you know, this person who wants to extort money from me said to me you know what, even if you give me the $2 million, I still might go with the screenplay, I still might go with the book. So obviously Dave felt threatened and that`s why he went to the police.

VELEZ-MITCHELL: Yes. These two from all reports really despised each other. David Letterman made his sex at the office disclosure on Thursday as we all know. Most of it was dead serious but not this sarcastic clip.

(BEGIN VIDEO CLIP)

LETTERMAN: What you don`t want is a guy saying I know you had sex with women so I would like $2 million or I`m going to make trouble for you.

(END VIDEO CLIP)

VELEZ-MITCHELL: Oh, boy. Clearly, no love lost between Letterman and his alleged blackmailer. Yesterday, "The Post" reported Halderman became furious when he found out in the diary of his live-in girlfriend, Stephanie Birkitt, that she was allegedly having sex with Letterman while living in Connecticut with Halderman.

And again, we need to get her side of the story. We`d love to hear it. We`ve been trying.

Today, sources describe the CBS producer as a jealous, jilted lover who quote, "wants to hurt Letterman as much as he can and wanted to hurt the girl, Stephanie, too."

Psychotherapist Stacy Kaiser, this is the oldest motive under the sun. They say hell hath no fury like a woman scorned. Guess what, hell hath no fury like a man scorned, either.

STACY KAISER, PSYCHOTHERAPIST: That`s absolutely right. You hear about crimes of passion all the time but I have to be honest with you. You rarely hear about things like this.

What I think is going on is it`s more than jealousy or envy. I actually think there`s a personality disorder here.

VELEZ-MITCHELL: On whose part?

KAISER: Maybe a few personality disorders here.

VELEZ-MITCHELL: All right. Yes. I think, you know, we were talking last night, why does David Letterman continuously go back to the well and go out with co-workers -- and he married one -- when he meets the most beautiful, accomplished, successful, famous and rich women in the entire world on the planet, they sit next to him on a couch on television. Why didn`t he ask those out?

And of course, we`re going to also talk about the big issue tonight that is it ok to have sex in the workplace. I`m not talking about actually doing the act on the job. I`m talking about...

KAISER: Good.

VELEZ-MITCHELL: ...is it ok to have a relationship with somebody at work.

The National Organization for Women has come out swinging in the wake of Letterman`s admission that he had affairs with subordinates. That`s the key word. But listen to what TV veteran Barbara Walters had to say on "The View."

(BEGIN VIDEO CLIP)

BARBARA WALTERS, ABC HOST, "THE VIEW": When you work on a show, especially in television, and you`re working late, these are the women you meet. There is no record at all with David Letterman of his having promoted someone or having told someone if you don`t do this, you`re not going to get the job. I mean, I worked on that show a lot and talked with the writers who are women.

(END VIDEO CLIP)

VELEZ-MITCHELL: Lisa Bloom, here`s the problem. Over at CBS where the late show airs, you have a situation where the big boss, Les Moonves, dated and then married a staffer, "Early Show" anchor Julie Chen.

So I know your mom, famed attorney Gloria Allred, is basically taking a shot at Letterman, too, we could say. In an open letter posted to RadarOnline, she says Dave engaged in sexual favoritism in the workplace.

Do you, Lisa, believe indeed there was a quid pro quo in the late show offices, "If you have sex with me, you are going to get better assignments, you`re going to be the one who does those cute little skits out there at the deli?"

BLOOM: First of all, full disclosure; I`m CBS "Early Show" legal analyst as well. But really, that doesn`t matter because we have been talking about it openly on "The Early Show" every day. There`s a big difference between Les Moonves and Julie Chen who are openly married and somebody like David Letterman who apparently for a long period of time had secret relationships with staffers.

I agree with the National Organization for Women. I think that creates a very negative environment for the women who are not selected to have sex with him, and for all of the men in the workplace who don`t have the opportunity for that kind of favoritism.

Do any of us want our daughters going into a workplace where the boss is consistently having sex with women at the bottom of the totem pole? Don`t we want them to be judged on the merits? That`s the problem Letterman created. I think N.O.W. is absolutely on the money in that letter.

VELEZ-MITCHELL: Wendy Murphy?

WENDY MURPHY, FORMER PROSECUTOR: You know, I have also written a column that`s going to be posted at the patriotledger.com where I take David on a little bit. I do see him as a victim and I think extortion is worse than whatever he`s done that I`ve heard thus far. We have to remember that.

But I do give him the top five things he should be saying on his show to stop joking and to take this seriously, because whether or not there`s a quid pro quo, if you create a hostile environment based on sex and/or gender, it interferes with the ability of women to have an equal employment opportunity. And that`s the whole point of civil rights and Title Nine and Title Seven laws that we have been fighting about for so long in this country.

I think he`s been wrong to do the behavior. But, but let me say this. The whole jealousy motive and the idea that we`re going to somehow turn this into a "this guy was jealous and that`s why he did this," let`s be clear. It was about money and the only reason it`s being described as an issue of jealousy or revenge is because when he puts up his insanity defense, it will stick a little better because there is no defense when it`s just greed. This guy was greedy.

VELEZ-MITCHELL: Carlos Diaz?

BLOOM: I don`t think jealousy helps him.

DIAZ: Yes, but I disagree with that though. Because what you`re saying is jealousy has to take effect here because he read the diary in December and he only came to Letterman after he got dumped by Birkitt a few months ago. That`s where the jealousy factor comes in.

VELEZ-MITCHELL: I think it`s what the shrinks called multi- determined. I don`t think you ever do anything for just one reason. Anything this big, it`s got to be a convergence of factors. And I think the fact that his ex-wife took the kids away, he was having money problems, the girlfriend leaves, he feels humiliated, and he hates David Letterman. And again, he hasn`t been convicted. He`s just been charged.

So I thank you, expert panel. We are going to stay on top of this story.

Coming up, an honor roll student killed by a violent pack of teens; what is being done to stop this insanity? We`ll talk about it.

Then a cop accused of boozing it up, getting behind the wheel and killing this innocent woman. Will justice be served? The victim`s family joins us to talk about their anger after the break.

I will be taking your calls on this controversy. Was there a cover- up? 1-877-JVM-SAYS; 1-877-586-7297.

(COMMERCIAL BREAK)

VELEZ-MITCHELL: The family of a woman killed by an alleged drunk driving cop shares their horrific story next, but first, "Top of the Block" tonight.

Uproar over a deadly Chicago teen beating and it`s no wonder. Look at this crazy, horrific video. Today, Attorney General Eric Holder and Chicago`s top politicians call for an end to this kind of murderous mayhem. They deem it a crisis of violence.

Finally, we are addressing teen violence as the national crisis it is but are we addressing the underlying causes? Our culture, movies, TV, video games, et cetera, et cetera, et cetera, teach kids that violence is a terrific way to deal with your problems.

How about teaching kids nonviolent conflict resolution? We need to teach them how to be peaceful. They don`t teach that at school. So along with more metal detectors in schools, we also need psychological detectors so these kids can become psychologically aware of why they`re so angry, why they`re acting out so aggressively.

Usually, it`s a problem back at home: alcoholism, drug addiction, physical abuse, emotional abuse. Do these kids have a safe place to spill their guts about their personal problems, to talk it out? No. Do you think they`re going to tell their teachers? Hell, no. How about group therapy in public schools? Sound crazy? Well, that`s crazy, that violence. We`ve got to try something different.

Tomorrow night on ISSUES, we`re going to have a special report on that horrific deadly beating. Is it so very crazy to teach our kids peace? That sounds crazy. Be sure to tune in and that`s tonight`s "Top of the Block."

Tonight: new outrage over an alleged police cover-up in a fatal DWI case. Joining me tonight: the grieving family of Vionique Valnord who was killed in a horrific crash involving an off-duty New York City cop.

Sources say Officer Andrew Kelly was totally wasted but managed to avoid a blood test for more than seven hours. By that time, his blood alcohol content, bunch of big fat zeros.

Officer Kelly pleaded not guilty to vehicular manslaughter and DWI and now a grand jury and internal affairs trying to figure out, was there a cover-up? I will ask the victim`s dad what he thinks about the hours and hours it took to test Officer Kelly.

And what about the officer`s flamboyant defense attorney; check out his off-the-wall behavior right here.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Can you tell us the status of the Andrew Kelly case?

ARTHUR AIDALA, ANDREW KELLY`S ATTORNEY: Ah, look what you`re doing. You`re doing.

UNIDENTIFIED FEMALE: I`m just asking.

AIDALA: At this point, for us, the case is brand new. We`re investigating everything. We are not surprised; we knew what the blood alcohol results were going to be, because we knew what he did that night or what he didn`t do that night.

(END VIDEO CLIP)

VELEZ-MITCHELL: That dance, beyond inappropriate.

I want to welcome back Don Clark. Also joining me, detective lieutenant Steve Rogers of the Nutley, New Jersey PD and my special guest, Reverend Varius Valnord, Vionique`s father and his attorney, Sanford Rubenstein.

I want to start with the attorney`s reaction to the clip you just saw, Kelly -- Officer Kelly`s attorney dancing around. What is your reaction and why do you think he was so gleeful?

SANFORD RUBENSTEIN, ATTORNEY FOR VALNORD FAMILY: Look, I think what`s really important here is not so much the reaction of an attorney, but the fact that at the scene of this horrible tragedy, the police officer, Kelly admitted to drinking six to eight beers to investigators.

His eyes were bloodshot. He was speaking with a slurred voice. He refused to take a breathalyzer test and he refused to let blood be taken from him until a court order had to be obtained.

Now, there are three police officers who have been disciplined for their action with regard to what happened here. One police officer was in the car who fled the scene; another police officer who has been suspended for giving Kelly two glasses -- two bottles of water and gum. What was his motive, right before the blood test? And a third officer was transferred to (INAUDIBLE) for at least an hour delay in transferring Kelly from the precinct house to the hospital for the blood test.

VELEZ-MITCHELL: I want to ask the victim`s dad, Reverend Varius Valnord, I know this has to be very difficult for you, sir.

REV. VARIUS VALNORD, VICTIM`S FATHER: Yes.

VELEZ-MITCHELL: The way that this man danced around, does it say to you that there is an attitude about your daughter`s death that is disrespectful?

VALNORD: I believe it`s really disrespectful because my daughter is dead. I`m the one who suffer. I don`t see if he`s dancing why he has to be dancing over the death of my daughter.

VELEZ-MITCHELL: I want to take a closer look at the hours following Valnord`s death. 12:41 a.m., officer Kelly refuses a breathalyzer at the scene. Five hours later, a warrant is issued for a blood test. Then 7:00 a.m., Kelly leaves the station and finally goes to the hospital, finally an hour later at 8:00, he has his blood drawn. Seven hours and 20 minutes.

What was going on all the time that Kelly was at the station, why the foot dragging? And of course, his blood alcohol came up 0.00 which is one of the reasons why this attorney`s dancing. It`s going to be hard to prove this case.

RUBENSTEIN: I`m not so sure that it`s going to be hard to prove this case, because the prosecutors have enough evidence based on the statements by Kelly of six to eight beers, based on investigators on the scene, to get a conviction in this case. We have confidence in the prosecutors.

VELEZ-MITCHELL: I don`t know about that, sir. The reason why I don`t know about that is whereas you`re alleging that there`s a possible cover-up at the scene, so if those officers, some of whom were allegedly engaged in some kind of cover-up, are the ones testifying, they`re the ones who could very likely say he didn`t have blood on his breath, he didn`t slur.

UNIDENTIFIED MALE: Jane --

RUBENSTEIN: With regard to the issue of cover-up, the fact of the matter is the internal affairs bureau of NYPD is investigating now and if there were criminal acts with regard to obstruction of justice, or tampering with evidence, they should be prosecuted as well.

DON CLARK, FORMER FBI SPECIAL AGENT IN CHARGE: But there`s more than that. Obstruction of justice is a minor thing, Jane, and I agree with you. I think it`s going to be problematic here because evidence has to show this officer had blood alcohol -- what his blood alcohol level was. And it`s not going to be able to do that, and it`s going to move on along and they`re going to try to show different types of things. That`s what the defense gets paid for.

And if they had just followed the rules, just done what they were supposed to do and treat this officer just like any other civilian would have been treated, then you wouldn`t be this.

VELEZ-MITCHELL: All right...

CLARK: New York City has a good police department. They could have done better.

VELEZ-MITCHELL: Ok, I love the cops. But this particular situation stinks. More on the alleged boozy cop who killed, in a moment.

But first...

(BEGIN VIDEO CLIP)

(MARCH FOR FARM ANIMALS)

(END VIDEO CLIP)

VELEZ-MITCHELL: That was me this past weekend, leading 700 marchers around Central Park in New York City`s March for the Farm Animals. A wonderful group called Farm Sanctuary. Those are my two rescue -- three rescue dogs right there.

Farm Sanctuary rescues animals from horrific factory farm conditions and lets them live the way nature intended. We raised tens of thousands of dollars for this fabulous cause for the cows, the pigs, the goats and the lambs. And we`re going to talk more about news in a moment.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

ROUDLIN ST. VIL, VICTIM`S BROTHER-IN-LAW: This family right here has just lost a diamond. I lost a friend.

(END VIDEO CLIP)

VELEZ-MITCHELL: That was a relative of Vionique Valnord. She was trying to hail a cab, taxi in Brooklyn, when an allegedly wasted cop plowed into her with his SUV. The impact so enormous she was launched into a traffic light.

Will this police officer be held accountable for his actions?

Phone lines lighting up. Ralph, West Virginia, your question or thought, sir?

RALPH, WEST VIRGINIA (via telephone): Yes. Jane, yes, this is Ralph from West Virginia. And well, back in 1988 my brother was killed by a cop and the cop was drunk. He came from his retirement party. And I don`t -- all he got was a slap on the wrist and I don`t appreciate, you know, cops getting away with that kind of stuff.

VELEZ-MITCHELL: All right, I saw Steve Rogers pointing at his ear. Can you hear us, Steve? Ok. All right, let`s go to Don Clark.

Look, I don`t want to beat up on the cops. I love police. I`ve worked with them for years doing investigative stories on crime. But this situation stinks, Don Clark. Seven hours and 20 minutes to do a test?

CLARK: Yes, this is inconceivable. And I too am very pro law enforcement, as you well know, Jane, but the bottom line is that this was wrong. It was just done wrong. It wasn`t supervised properly. And somebody allowed this officer to go through and do all of these things and now it is going to make it very difficult to prove whatever the prosecution was trying to prove initially about the death of this person.

VELEZ-MITCHELL: All right.

Steve Rogers, you`re a detective lieutenant with the Nutley, New Jersey Police Department. What is the other side to this story? Is there another side to this story?

STEVE ROGERS, DETECTIVE, NUTLEY, NEW JERSEY POLICE DEPARTMENT: There is no other side. You know, what Jane, you alluded to it before. People generally support their police departments and NYPD`s a great department.

But what these officers did is inexcusable.

CLARK: Right.

ROGERS: I mean, you give chewing gum and water to someone involved in a DWI case? And as Don said, I agree with Don Clark. Where are the supervisors? Where are the people to be held accountable?

Well, as I said before, I`ll say it again. That blue wall of silence went up and it`s going to come crumbling down on the heads of those officers who compromise their oath of office.

VELEZ-MITCHELL: And I`ve got to say, family attorney, last comment. What about the attorney for the cop, saying that his client is actually a hero because not only was he not drunk, he claims, but he brought your client`s daughter back to life. He`s the one who hit her.

SANFORD RUBENSTEIN, ATTORNEY FOR VICTIM`S FAMILY: Well, first of all, it`s an outrageous statement. Clearly, he`s not a hero. And in fact, he wasn`t giving the mouth to mouth. It was a relative at the wedding who was giving the mouth to mouth. He was trying to do something else.

But whatever he was trying to do, the fact of the matter is he had six to eight beers, he was driving when he shouldn`t have been and he killed an innocent victim.

ROGERS: And Jane, can I say one thing also?

VELEZ-MITCHELL: Go.

ROGERS: That lawyer`s clip that you showed in the beginning, that`s outrageous. And that does more damage, I believe, to the image of police officers than anything I`ve ever seen in the past few years. It`s outrageous.

VELEZ-MITCHELL: Well, it appears that he didn`t know he was on camera possibly.

ROGERS: But this is not a joke.

VELEZ-MITCHELL: And that reveals the real attitude possibly -- and I`d love to have him on the show. He can explain his side why he was dancing. Anytime he wants to come on. But to me it says, oh, that he thinks that the zero alcohol test results will work for his client.

And that`s why he`s saying his client wasn`t drunk. Even though others at the scene have said he was slurring and he had alcohol on his breath and his eyes were bloodshot.

ROGERS: Well, I hope...

VELEZ-MITCHELL: But the test is going to make it hard to prosecute this case.

CLARK: Well, it`s going to make it hard to prosecute, Jane, but I want to say one other thing, too. This was bad, bad, bad, but I will tell you that Commissioner Ray Kelly is a really top shelf person and I think he will try to make it right.

VELEZ-MITCHELL: Let`s hope so.

ROGERS: Right on.

VELEZ-MITCHELL: All right, thank you, fantastic panel for joining me tonight.

Remember, click on CNN.com, order my new book.

END

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