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Day-Care Murderer Found Guilty but Mentally Ill

Aired March 15, 2012 - 19:00   ET


JANE VELEZ-MITCHELL, HOST: I`m Jane Velez Mitchell, coming to you live from New York City.

The Georgia daycare killer said Olivia Newton John and Barry White drove him to kill. Did the jury buy it? The verdict is in. Next.

Plus, are there more secrets to reveal in this case, and could the victim`s widow return to the spotlight?


VELEZ-MITCHELL (voice-over): Tonight, a killer cries in court, weeping as he begs for mercy, just minutes after a jury gives him the benefit of the doubt. They agreed he was mentally ill when he gunned down an innocent father outside his kid`s daycare. Is our criminal justice system crazy for not calling him just what he is, a cold-blooded killer? We`ll debate it tonight.

Then today, the soccer mom cops call the Manhattan Madam hauled back to court. The hot topic? Her $1 million bail. Is this woman being persecuted or just prosecuted? We`ve got the latest report and an exclusive interview with someone who worked with the so-called Manhattan Madam.



ANDREA SNEIDERMAN, WIDOW OF VICTIM: There was no affair. Who kills someone else`s husband?

UNIDENTIFIED MALE: In September of 2010 the defendant, Hemy Neuman, began planning this crime. He stalked the victim, and on November the 10th of 2010, he laid in wait in the bushes outside of the defendant`s house. When that attempt to take the victim`s life -- excuse me, the victim`s life, Mr. Rusty Sneiderman, did not pan out, he then went back and, as you stated, went to plan b. We ask you to show him the same mercy that he showed Rusty and punish him in the only appropriate manner.

UNIDENTIFIED FEMALE: I was always proud of him, not proud of what he did now. It was a big mistake, and -- and I beg of you, just to have mercy on him.

HEMY NEUMAN, CONVICTED MURDERER: He was a good man with so much ahead of him, and I`m so, so, so sorry for their loss.

UNIDENTIFIED MALE: His obituary is already written. It reads Hemy Neuman, convicted murderer. Period.


VELEZ-MITCHELL: Tonight, the secret`s out. Just convicted hours ago, day care killer Hemy Neuman will spend the rest of his life in prison for gunning down husband and father Rusty Sneiderman outside a Georgia preschool.

But the jurors go too soft on him. They found him guilty but -- guilty but mentally ill, leaving open the possibility that he could get out one day, until the judge had his say.

Why did jurors have that soft spot for this man who admitted he`d gunned down his romantic rival? The jury foreperson`s voice actually cracks as she reads the verdict. Listen.


UNIDENTIFIED FEMALE: Count one, we the jury find the defendant as to count one, guilty beyond a reasonable doubt but mentally ill.


VELEZ-MITCHELL: But mentally ill. Yes, Hemy Neuman was found guilty, but the jury actually bought what I humbly call the B.S. about him being called mentally ill when he shot Rusty Sneiderman.

The majority of experts testified Neuman was not mentally ill, had no history of it. I maintain he knew exactly what he was doing the day he murdered Rusty Sneiderman.

Both prosecutors and the defense agree he was having an affair with the dead man`s wife, Andrea, whom he supervised at G.E.

So today, in an astounding courtroom scene, after refusing to take the stand in his own defense, the just-convicted Neuman begs for mercy and has the nerve to call this killing a tragedy. Yes, and you`re the killer!


NEUMAN: I do not think that anyone feels anyone won here. Everybody lost. He was a good man with so much ahead of him and I`m so, so, so sorry for their loss.

This is a terrible tragedy, first of all, for Sophia in the end, the Sneidermans, his dad, his mom, brother. Andrea should not have had to bury him. They should not have had to undergo the pain, anguish, the sorrow, the loss. I am so, so, so sorry. I can`t say it enough. I can`t say it enough to all of you, the precious children, all five of them. To the Sneidermans, to the Greenbergs, to their parents, the family, friends, the community at large. I`m sorry from the deepest part of me, your honor.


VELEZ-MITCHELL: No, you can`t say it, because you`re the one who pulled the trigger. Three times. Bravo, what a performance.

Hemy Neuman is a methodical, cold-blooded killer who came up with a ridiculous story about an angel sounding like pop singer Olivia Newton John.




VELEZ-MITCHELL: And a devil sounding like legendary crooner Barry White.


BARRY WHITE, SINGER (singing): You`re the answer all my dreams.


VELEZ-MITCHELL: Telling him to kill Rusty Sneiderman. It`s a bad "Saturday Night Live" skit. Incredibly, the jury bought some of it. Thank God for the judge, the voice of reason, who didn`t buy it and sentenced Neuman to life in prison without parole.

Why did this jury decide Neuman was mentally ill? Call me: 1-877-JVM- SAYS, 1-877-586-7297.

Straight out to my guest with me here on set, investigative reporter Jon Lieberman. Jon, are you as shocked as I am that they decided this guy was mentally ill?

JON LIEBERMAN, INVESTIGATIVE REPORTER: The only crazy thing about Hemy Neuman is the fact that it took him nine months to come up with this crazy defense about demons and Barry White and everything like that.

When I heard this verdict I sent out a tweet. I said, "Are you kidding me?" Anybody who convict -- anybody who commits such a cold- blooded, calculated murder, obviously, they`re mentally ill. But in my mind, this was a way for the jury to punish him and say, "Yes, we do think you`re guilty" but weasel out of it a little bit by saying there`s so much going on in this case you must be mentally ill. We have this choice, so fine, we`re going to say you`re guilty but mentally ill and leave open that door, the door that as you pointed out, the judge closed by giving him life with no patrol. But he could have gotten life with the possibility of parole.

All this really means, though, in effect, is he`s going to get mental health counseling in prison where he`s going to be the rest of his life.

VELEZ-MITCHELL: Yes. But still, what gets me is that the jury seemed to buy the idea that this guy was cuckoo for cocoa puffs. Not insane to the point that he didn`t know right from wrong. But his ability. Mental illness is defined by your mental ability and mood are substantially impaired such that it affects your actions and judgment.

Well, guess what? Anybody who kills somebody, unless it`s self- defense or some other incredible extenuating circumstance is mentally ill by that definition. Nobody who is well-balanced is going to go and gun down somebody, because they`re allegedly having an affair with their wife and want them out of the way so they can have the wife to themselves. Nobody.

Nobody is saying who would do something like that. Every killer behind bars -- more than two million people are behind bars -- and a lot of them are killers. Everybody is mentally ill by that definition. Now, I want to go back to his cuckoo defense, which was that these voices of Olivia Newton John, the famous pop singer, and Barry White -- and you know, I grew up in the `70s. I listened to them. This guy is -- what is he, 48. So he -- that`s his era.

HHe comes up with these two singers. And I -- just blows my mind that somehow the jury bought this, because it was almost -- I think not even almost. It was comical, except that this is a tragedy and somebody died.

I`ve got to bring in Jay Thomas, Emmy Award winner and a radio host on Sirius XM. Jay, you study cultural trends. Is there something wrong with jurors in America today?

JAY THOMAS, RADIO HOST, SIRIUS XM: Well, I don`t know what`s worse, the 72 virgins or Barry White and Olivia Newton John waiting for me in the afterlife.

You know what was surreal? Why was the jury foreman crying? Why was the jury foreman -- why did she feel sorry for this guy? That`s what I didn`t quite understand. What made her -- what made that jury reach out to him with everything I`ve read and all the testimony I`ve heard. So I have no idea. They almost -- they treated it like it was "American Idol" rather than a murder trial, you know?

VELEZ-MITCHELL: Yes, I mean, I`ve got to say this, Jay. Hemy Neuman`s ex-wife said nonsense -- or soon to be ex-wife. I don`t know if the -- the divorce has been sealed yet. Nonsense, he`s not crazy. He has no history of mental illness. He has a very, very responsible job at G.E. He had a -- he was a graduate of college. He had, I think, a master`s degree. I mean, this guy is the definition of sanity. He is a killer, though.

And again, I want to go out to Holly Hughes, former prosecutor. I think there is some kind of societal bias, because he wears a sweater and he`s got gray hair and glasses, and he`s got a job, and he`s a middle class guy that somehow, he couldn`t have just been a nasty old killer. He had to be mentally ill.

HOLLY HUGHES, FORMER PROSECUTOR: Well, I think there is a couple of different things at play here, Jane. First of all, the jury didn`t let him off as easy as you might think, because they could have said not guilty by reason of insanity, but they wanted to say he definitely did it. He`s guilty.

Secondarily, even if the judge had given him life, that`s still 30 years before you`re eligible for parole in Georgia, and this man is 48. So he would have been almost 80.

So it`s not -- I know it sounds to you as a lay person like, "Oh, my gosh, they let him off." They didn`t let him off.


VELEZ-MITCHELL: I didn`t say they let him off. I said they showed poor judgment...

HUGHES: Right, but...

VELEZ-MITCHELL: ... in buying his nonsensical story of being mentally ill.

HUGHES: And here`s the thing, Jane.

VELEZ-MITCHELL: I have to remind you of the facts with all due respect, Holly. And I know you`re trying to just be balanced and present the other side. But this is a man who gunned down somebody in the chest three times in cold blood, who plotted it, who got a gun, who went to a shooting range, who practiced shooting, who rented a car, who wore a beard as a disguise.

HUGHES: Right.

VELEZ-MITCHELL: Stacy Kaiser, you`re a psychotherapist. Does somebody who is hearing voices behave in such a methodical fashion and then returns the rental car but fills it up with gas first and then tells the cops he had nothing to do with it and comes up with the story months later?

STACY KAISER, PSYCHOTHERAPIST: Absolutely not. People who have these kinds of extreme mental illnesses, they`re not so high functioning. This guy has managed to have a very responsible life, and people who have delusions don`t tend to do that.

VELEZ-MITCHELL: We`re taking your calls. Shirley, Utah we`re going to get to you right on the other side: 1-877-JVM-SAYS. And I just have to discuss this a little more. You know, because this is our justice system. It is not a game show.

Coming up, the alleged madam from Manhattan, hauled back into court and her very handsome husband. We`re going to show you him and find out what happened to her.

But first, more on the guilty but mentally ill verdict in the day-care murder trial.


NEUMAN: This -- this is a terrible tragedy, first of all, for Sophia, the Sneidermans, Rusty`s dad, his mom and brother. Andrea should not have had to bury him. They should not have had to undergo the pain, anguish, the sorrow, the loss. And as Mr. Sneiderman just stated, it goes on and it will go on forever.




UNIDENTIFIED MALE: How many times did you call Rusty?



SNEIDERMAN: Zero times.

UNIDENTIFIED MALE: Why didn`t you call Rusty?

SNEIDERMAN: Because they just told me something had happened to Rusty. What are the chances that he`d be answering his cell phone?

DOUGLAS PETERS, DEFENSE ATTORNEY: Hemy Neuman was as good a man as has ever walked on the face of the earth, until he met and became involved with Andrea Sneiderman. We are very hopeful that all the evidence regarding her responsibility for the death of Rusty Sneiderman will also be presented in court.


VELEZ-MITCHELL: That was the attorney for the convicted killer, and that attorney went on to say that Andrea Sneiderman, the woman you just heard from, the widow, should be charged in this case.

So tonight`s burning question of the night, could Andrea Sneiderman actually be charged with something? Could there be another trial? Out to criminal defense attorney Jayne Weintraub.

JAYNE WEINTRAUB, CRIMINAL DEFENSE ATTORNEY: Could the wife have been charged? Probably she could have been charged as a co-conspirator. The prosecutors even called her a co-conspirator, but they probably did that also just to let extra evidence in.

The bottom line, Jane, is I think that the jury looked at her as a culprit, as guilty as he was. Because they knew that he was under the influence of her. They said she was all but pulling the trigger herself, and that`s what`s so sad here. She walks out of court today free, with a $2 million life insurance policy, laughing all the way to the bank. That`s my take on it. She is mentally ill.

VELEZ-MITCHELL: Well, I know very quickly, Jon, you think she is going to be charged with something.

LIEBERMAN: She`s lawyered up. She has two lawyers. She could face everything from perjury for lying on the stand, all the way up to accessory still. And I know that investigators are looking at her. It`s not often that prosecutors and the defense agree on something like this.

VELEZ-MITCHELL: Let`s go out to the phone lines. Shirley, Utah, your question or thoughts, Shirley?

CALLER: My thought, Jane, but I want to let you know I think you`re absolutely wonderful.


CALLER: And I thank you for all the work you do as an advocate for our human race.

VELEZ-MITCHELL: Thank you. Thank you so much.

CALLER: My statement is the gall and defiance of the wife of the murdered husband and father speaks volumes. To watch her on that stand is disgusting, and I hope enough evidence is found to convict her. She is involved.

VELEZ-MITCHELL: Well, I think you reflect the opinion of a lot of people who believe -- one of the reasons why this "not guilty but mentally ill" verdict came down is that Andrea Sneiderman`s performance on the witness stand was so dramatic. I think it kind of played into the defense claim that she was the puppet master, manipulating Hemy Neuman into something very bad. Listen.


SNEIDERMAN: It was unfathomable and unbelievable that it could be him, someone that proposed to care about me, care about Rusty, care about my family, be a normal guy, be my boss. Then he murdered my husband.


VELEZ-MITCHELL: All right. She is emoting like crazy. Another one who should be on Broadway.

I want to go out to George Howell, CNN correspondent. I understand that she has lawyered up?

GEORGE HOWELL, CNN CORRESPONDENT: She has, hired new lawyers, along with the attorney she already has. So it`s interesting to see her really protecting herself in case prosecutors come after her.

But Jane, you mentioned this a few minutes ago. Both prosecutors and defense attorneys, they both allege that she was having an affair with Hemy Neuman. She`s the only one saying that she never had an affair, and again, right now taking steps to protect herself in case charges are forthcoming.

VELEZ-MITCHELL: Yes. And by the way, she is invited on our show any time and/or her attorneys, because we want to be fair here. Just because she acted a little -- she acted kind of crazy, during this trial, on the stand. That doesn`t mean that she`s anything more than a person with some questionable judgment about how to behave in court.

She claims she didn`t have an affair. The prosecution and the defense say yes, she was sleeping with the guy who killed her husband. More on the other side.


VELEZ-MITCHELL: More Hemy Neuman in a second. But first, here is your "Viral Video of the Day."






NEUMAN: I prepared this statement several weeks ago, to express my sense of loss for the -- for Rusty`s family. This is a terrible tragedy. It is also a tragedy for three other children, for Lee, Tom and Addie and countless family and friends who saw a person they loved and admired and respected, who saw him arrested in shame, charged and now convicted.


VELEZ-MITCHELL: The jury decided that guy, the defendant, was guilty but mentally ill of gunning down his rival. The prosecutor totally debunked the mentally ill theory in closing arguments. Listen to this quotable moment.


UNIDENTIFIED MALE: He`s insane. He sees angels; he sees demons. He`s crazy. "Something`s wrong with me. They`re telling me to kill people. I got five children. I tried to commit suicide seven times." If you cannot trust the ingredients on this insanity sandwich, then I`m going to ask you don`t eat it.


VELEZ-MITCHELL: Jay Thomas, my favorite phrase, insanity sandwich. I plan on using it often. You heard the now-convicted defendant speak. Did he sound insane to you?

THOMAS: No, you know, and I love the way -- I`d love to do this, that you believe that, if people look crazy, I like that. They ought to add that to the law. If you look nuts. The wife looks nuttier than the guy that she was having an affair with, and I like that. And so you know what? You look nuts so we should have charges against you. I mean it. I really like it.

This guy should have been put to death. He`s not crazy. I don`t know what that jury was thinking in Georgia. I`m from the south. I expected more violence from the jury. Instead, I don`t know who these people are in Georgia any more. They`re certainly not Newt Gingrich Georgians. I can tell you that right now.

VELEZ-MITCHELL: All right. We`re going to go to the phone lines. We`re going all the way up north, Toronto. Lisa, Toronto, your question or thought, Lisa?

CALLER: Hello there.


CALLER: Jane, just to let you know I`ve been watching you for eight or nine years. And I`m a definite fan of you and Nancy Grace.

VELEZ-MITCHELL: Thank you so much.

CALLER: And I`d like to thank you for everything you do for the crazy mess out there and helping out the unfortunate also.

VELEZ-MITCHELL: Well, I have compassion for people who are really insane, just not for people who are pretending to be mentally ill and who are actually cold-blooded killers, but your question or thought, ma`am?

CALLER: What I`d like to say is if he`s so mentally ill, how did he know, No. 1, to put his finger on the trigger? And No. 2, how did he know how to pull the trigger if he was mentally ill? That`s my question.

VELEZ-MITCHELL: This is a great question. Holly Hughes, former prosecutor, take it away.

HUGHES: Mentally ill doesn`t mean that you are a slobbering idiot savant. I mean, mentally ill means that you may not be able to either appreciate the difference between right and wrong or you may be driven by a compulsion that just says to you you must do this.

You know, these psychiatrists that testified on behalf of Hemy Neuman in this particular trial, they were the same psychiatrists the state tried to use. So there was actually a battle where -- you know, and they said, "Well, we`re sorry. We were hired by Mr. Neuman`s defense team first."

VELEZ-MITCHELL: Here`s the thing. Here is the problem I have with this.

HUGHES: Highly respected psychiatrists.

VELEZ-MITCHELL: There was an interview that was on camera of this defendant shortly after the crime. And he was the most rational sounding human being, denied having anything to do with this. We have to see: is this the end or will there be another chapter?

Manhattan Madam, next.


VELEZ-MITCHELL: Anna Gristina, operated a $2,000-a-romp call girl ring.

UNIDENTIFIED FEMALE: There`s a whole new level of attention.

VELEZ-MITCHELL: A second alleged madam has turned herself in to cops in Manhattan. Why is her bail set at $2 million?

UNIDENTIFIED MALE: She is upset. I mean she is in jail.

UNIDENTIFIED MALE: I believe this young lady is being railroaded by the system.

VELEZ-MITCHELL: A so-called soccer mom who cops say led a double life as a madam boasted of making millions. Who may be exposed through her little black book?

UNIDENTIFIED MALE: Very well-dressed gentlemen.

UNIDENTIFIED FEMALE: I don`t know. I guess sex sells.


VELEZ-MITCHELL: Tonight the alleged soccer mom madam has a brand new lawyer; unfortunately for her she has the same old digs -- solitary cell at Riker`s Island. As we speak, a request to reduce Anna Gristina`s $1 million bail denied. The judge says the alleged mommy madam, some call her the soccer mom, some say hockey mom but either way, this mom is locked up at Riker`s at least until her next hearing, April 26th. This brings me to my burning question of the night, why would a mother of four accused of a non-violent crime have a harsher bond than killers and pedophiles in some cases? Anna Gristina`s attorney is wondering the very same thing.


GARY GREENWALD, ATTORNEY FOR ALLEGED NY MADAM: You have a person facing maximum two and a third to seven. Government is asking for $1 million, $2 million bail that they don`t ask for murder cases or rape victims. And the likelihood is -- the probability is she is probably facing maybe six months plus five years probation on this charge, and they`re asking for this outrageous bail.


VELEZ-MITCHELL: Now that lawyer -- and he is a heavyweight lawyer in more ways than one -- hired just last night by Gristina`s husband, Kelvin Gore, you see him here, topless and you also see him outside court looking rather handsome and striking a pose.


UNIDENTIFIED FEMALE: What are you saying to the kids? Are they asking any questions?


VELEZ-MITCHELL: Who is going to play him in the made-for-TV movie, that is what I want to know? Gristina`s tall, dark, handsome hubby has not said hardly anything since the scandal broke other than "I didn`t know a thing". He insists as far as he knew, Anna was just his loving wife and mother raising their four kids in this modest house a couple of hours outside New York City.

Was he really in the dark about her alleged double life? Call me 1- 877-JVM SAYS, 1-877-586-7297.

Straight out to my very special guest, Jody "Babydol" Gibson, author of "Secrets of a Hollywood Madam"; and she is former madam. So former madam, why do you think they have Anna Gristina locked up in solitary on $1 million bail, $2 million bond? Is she being prosecuted or persecuted?

JODY "BABYDOL" GIBSON, AUTHOR, "SECRETS OF A HOLLYWOOD MADAM": Well, they need the girls` testimony to corroborate the evidence and having her incarcerated prevents her from impeding their case by from contacting the girls. So perhaps that is the theory.

VELEZ-MITCHELL: Let me bring in Jon Leiberman, investigative reporter, you`ve been snooping around and you say your sources are telling you what?

JON LEIBERMAN, INVESTIGATIVE REPORTER: Yes well, a couple of things, my sources are saying that Gristina may have not been the target of this investigation. Cops were hoping and investigators were hoping they could press her and get the high-profile names that they really wanted but when she resisted, that forced their hand to charge her with this one count.

And real quick on the bail, the purpose of the bail --

VELEZ-MITCHELL: Well, let me get to the bail in a second because you`re raising an important point about -- is this about something bigger? You`re saying she was not the target according to your sources. That is exactly what the private investigator who worked with Anna Gristina told us. He said hey, she is not a madam and that they`re after her to get at somebody else. She -- he claims, was trying to set up a legitimate online dating service.

Let`s listen to Vinnie Parco.


VINNIE PARCO, PRIVATE INVESTIGATOR: What I was trying to help her do is set up a security system for a Web site she was doing for a dating service.

VELEZ-MITCHELL: Well, ok. Prosecutors say that was her cover. Now you`re saying that that was legit?

PARCO: No, she was forming one, she had investors come in at these networking meetings -- these are legitimate business people.


VELEZ-MITCHELL: All right, now, Vinnie Parco, that private eye, says Anna Gristina was hoping to compete with; also known as

My special guest tonight: Alan "Action" Schneider, spokesman for Now, supposedly Anna Gristina, this alleged madam, was trying to set up a dating sight, according to her, to compete with your site.

Now, we want to play and show a couple of snippets from your site -- what it says on your Web site. These are quotes. "Feeling a little cash poor and lovelorn? We promise you the man and the bank account of your dreams. We match young attractive women who want to be taken care of and treated like a princess with busy successful men who want to pamper a special someone. Our two million members feel no shame in cutting to the chase, or the check."

Alan, what do you say when people look at that and go huh if you`re matching up rich guys with girls who want a check, that is just another word for prostitution.

ALAN "ACTION" SCHNEIDER, SPOKESPERSON, SUGARDADDYFORME.COM: At these events, what goes on it`s totally not prostitution, and the Web site is not promoting prostitution. In fact anything on the Web site, if you read it carefully, is that any kind of prostitution, any kind of unlawful habits of any of the members is strictly prohibited.

So to answer your question, what goes on is mutual enrichment, reciprocity. Women are entitled to be empowered and if a man wants to pamper them I think there is nothing wrong with that. And that`s what the Web site promotes.

VELEZ-MITCHELL: Well, let me say this, I have nothing against two adults doing whatever they want to do as long as they don`t hurt anyone else, as long as it doesn`t involve underage people, underage girls or underage boys. That is where I draw the line. I say lock them up, throw away the key.

I find it very strange that our law enforcement must have spent millions of dollars, who knows how much they spent investigating Anna Gristina for five years? And accumulating hundreds of hours of surveillance?

Do you, Alan "Action" Schneider, think that they are going after her for another reason?

SCHNEIDER: Well, I have been following the case in the papers, and I really think that number one, I think the bail is outrageous and not commensurate with what she is charged with.

Two, I really think that, you now, the way everything is going on with her, I think that they were actually looking for something else and she was involved with that investigation. Somehow, they got wind that maybe she could have been involved. But as we all know in a court of law you`re innocent until proven guilty, and I think based on what you just said, yes, I think they were looking for some other maybe perpetrator and they happened to come across her.

Because for a five-year investigation, to give this kind of evidence at this point, we haven`t seen much.


SCHNEIDER: She is accused of a crime -- she`s accused of a crime that basically no one has given a salient evidence to show that she has guilt here.

VELEZ-MITCHELL: All right. We have video of Anna Gristina and this private investigator we mentioned before, Vinnie Parco, one of the sugar daddy type parties. Here they are mingling among older, wealthy men and younger, sexy women who are just at a party. And we`re going to show you that in a second.

Now we`re going to give you in a second -- there they are, mingling. All right. There is the alleged madam; she`s at a party. Let`s give you a little flavor of one of these events. Listen to this.


UNIDENTIFIED FEMALE: I have been having second thoughts; you just come and you just meet people.

UNIDENTIFIED MALE: I`m just an old man looking for a friend.

UNIDENTIFIED FEMALE: As long both of the couple are both in agreement then everything is ok.


VELEZ-MITCHELL: Now, I have to say those look like people just having a good time and that is what she claims she was trying to do, set up a legitimate dating service.

I want to go ought to Jay Thomas you are based here in New York, you know the city well. You`re an Emmy Award winner and a Sirius XM Radio host. There is a feeling that this is not about Anna Gristina. This is not about her little operation; that there are powerful men in industry, in finance, that prosecutors are going after for some reason. She said they wanted dirt on ten men.

Could they be trying to gather dirt to use it as leverage in some kind of let`s say a Bernie Madoff type situation?

JAY THOMAS, SIRIUS XM RADIO HOST: Unless it`s income tax evasion or it was a heroin ring, it`s the most ridiculous front page story I`ve ever seen. And it`s consenting adults and by the way I would like to be called Jay "No Action" Thomas, just so my wife doesn`t think I`m doing anything.

Here is the other thing, I heard and I can`t say who I heard it from but right before I came on, I called an investigator I know in California. He thinks that the lawyer who, by the way, is putting up his home and has had a defining moment after meeting her, and he`s going to risk $2.5 million of his equity in his home. I heard from my source that yes, there are guys now that are paying huge money for her to be silenced in a good way.

And the first way is they are -- and this is all alleged -- they are putting money through her attorney to pay her bail, and to get her out. And so her black book is going to be a big deal, and somebody in that black book will be as famous as Mr. Spitzer and he may get his own TV show.

VELEZ-MITCHELL: Well, I think you`re right. Everybody is wondering why is this attorney, who by the way stepped down, that Peter Gleason, you just saw him --

THOMAS: Right, right.

VELEZ-MITCHELL: -- he stepped down and then the other heavyset attorney came in and took over. That is the old attorney. He`s the one who says, "Now, I`m free," because it`s no longer a conflict of interest. I can actually put up my fancy Tribeca condo worth $2.5 million because this guy is now the real attorney and so it`s no longer a conflict of interest. And people are wondering why this is guy so eager, the other one, to put up his own house to bail out a woman who is a Scottish national, who could possibly take off, according to some people. Is there something else behind it?

And so as you heard Jay Thomas saying, the wagging tongues are suggesting some important man is saying hey, let`s get this woman out before she cracks and spills the beans and lists me in her black book. And by the way, do they still have black books?

I want to ask Jody "Babydol" Gibson on the other if they have actual black books or is it all on the iPhone when we come right back.


GREENWALD: Next week we should get all of the tapes, which is what you people would love to see, the secret tapes, and the photographs. We`re serving a letter tomorrow on demand to get all that stuff.


VELEZ-MITCHELL: Ok. That`s Anna Gristina`s current lawyer, Gary Greenwald who is saying I want all the evidence. Prosecution says they have hundreds of hours of surveillance; we have video of people having sex. I want it all to analyze.

Now this guy was hired by this man, the husband of Anna Gristina, just last night in a switcheroo of attorneys. Gristina`s third and current husband, Kelvin Gore, has said he is heartbroken -- there he is, quite handsome, outside court. I mean again, the cast of characters is fascinating. He claims he`s clueless about his wife`s alleged Manhattan brothel.

I want to go to Kaylin Rocco, our producer, who was down there at court. You were watching this guy, what did you notice, Kaylin?

KAYLIN ROCCO, HLN PRODUCER: Well, when I walked into court today, the media was buzzing because Kelvin Gore was there. In the courtroom I sat right behind him and you know what I saw was a very concerned husband. When his wife walked in, he perked up, and there was a point where she was sitting down and she turns slightly and he shifted to get in her eye line and he gave her an encouraging wave. And she kind of smiled, but at the same time she shrugged her shoulders, a little -- to me -- a sense like she was feeling defeated.

Then after court he walked outside, the media thought that was going to talk to us, but he kind of just posed a little, said "no comment", turned around and walked back into court. But overall, what I saw was someone who wanted to show their wife that he was supporting her.

VELEZ-MITCHELL: All right, sounds good. We`re going to go to the phone lines now. John, New Jersey -- your question or thought, John?

JOHN, NEW JERSEY (via telephone): Yes. Hi, Jane. I love you, Nancy and your whole network.


JOHN: I agree with you. Escort services are legal. They`re in the phone book. Now what the girls do in the room, because we have them sign papers, I was involved in an escort service. I`m not into it no more. We have them sign papers, nothing illegal and I agree no children.

VELEZ-MITCHELL: Wait, wait, John, who signed papers?

JOHN: The girls that they wouldn`t do nothing illegal in the rooms.

VELEZ-MITCHELL: But if you work for an escort service and they are in the room with a guy, and they`re having sex with a guy, that called prosecution. That is illegal.

Caller: No, it`s a dating service, but escort services they`re in the phone books. You could find them in the phone books.

VELEZ-MITCHELL: All right. Well, hold on a second. let`s bring in the expert Jody "Babydol" Gibson, former Hollywood madam. You`re trying to -- want to get in.

GIBSON: Yes. You know, I wanted to remind you, Jane, Debra Jean Palfrey (ph), had -- the D.C. madam -- had all the girls sign model releases and she still got prosecute and convicted. So the disclaimers mean nothing to law enforcement.

VELEZ-MITCHELL: What do you make, Jody of this comment, Jay Thomas and Jon Leiberman both talking about the scuttlebutt here in Manhattan is that this is not about her; that they are after some very powerful guy and that one of the reasons why this lawyer who we`ll show, Peter Gleason is so intent on bailing her out and getting her into his Tribeca condo and even putting that condo up as collateral as if somebody very important wants her out so she can keep her lips zipped.

And again, I just want to say that Peter Gleason, we invite him on. This is the guy who resigned as the attorney and says you can come live with me. He`s invited on any time. We`ve called him and reached out to him several times to get his side.

But what do you make of that, Jody?

GIBSON: Of what? I`m sorry.

VELEZ-MITCHELL: What do you make of this idea that there is some powerful person who wants to get her out because they want her to keep her lips zipped? And that is why the prosecutors don`t want her out.



GIBSON: I don`t think that`s it.

VELEZ-MITCHELL: What is it then?

GIBSON: I don`t think that`s the reason. I think it`s because she will impede the investigation by contacting the girls and without the girls corroborating the case, they don`t have a strong case. They only have one girl and one count -- they have one girl and one count.

VELEZ-MITCHELL: Jon, wouldn`t the other woman who was just released on bail, wouldn`t she also have been able to spill the beans?

LEIBERMAN: Right. Exactly. But everybody is missing one thing. This investigation is nowhere near over. This is not the end of this investigation. This is just the middle.

VELEZ-MITCHELL: Everybody come back soon. Jody, thank you so much.


VELEZ-MITCHELL: "Desperate Housewives" in a moment, but first, I think we all deserve a little laugh break.





VELEZ-MITCHELL: A jury is deciding if a "Desperate Housewives" actress was fired out of revenge. Nicollette Sheridan who played "Edie" is suing for nearly $6 million.

UNIDENTIFIED FEMALE: It has had more twists and turns than an actual "Desperate Housewives" episode.

UNIDENTIFIED FEMALE: Hollywood has hardly ever seen anything like it.



VELEZ-MITCHELL: Tonight, a new plot twist from the "Desperate Housewives" trial. This time it`s happening right in the jury room. Breaking news, just minutes ago, the jurors told the judge, we can`t make a decision yet. The judge said go home, sleep on it, but is this a sign there could be a hung jury in this case?

The former sexpot of the hit show, Nicollette Sheridan, seen here in a clip from YouTube says she was wrongly fired after the show`s bigwig producer, Marc Cherry hit her and she complained to the bosses about it. She insists he killed her character off as revenge.

The charges against Cherry, you see him right there, dismissed but Nicollette still looking for a big payout from ABC for wrongful termination.

Straight out to Jim Moret, chief correspondent for "Inside Edition". Jim, you were in court, what the heck`s going on?

JIM MORET, CHIEF CORRESPONDENT, "INSIDE EDITION": You know what; Jane, we covered a lot of trials and you think you`ve seen it all until today. Nobody saw this coming. The jury`s only had this case for a day. And the foreperson sits down and tells the judge, "Your honor, we cannot reach a verdict." The judge says, "Is there anything that the court can do? Do you want more arguments? Do you want more instructions?" The jury foreperson says no. The judge then says, "Look, it`s late in the day. We want you to go home, sleep on it, chill. Don`t think about anything about this case. Come back tomorrow, and then let`s see if we can move forward." Remember there`s a lot on the line here. $5.7 million is being asked for by Nicollette Sheridan.

But more importantly, they`ve gone through the whole trial and the judge does not want a hung jury. Because if there is a hung jury, both sides have made it clear, we`re going through this whole thing again.

VELEZ-MITCHELL: This is certainly a season cliffhanger of sorts. Nicollette says her death on "Desperate Housewives" was a form of revenge. And I have to say scenes were -- her killing is over the top. Watch this from YouTube.



VELEZ-MITCHELL: And it goes on and on and on. They kill her so many times.

Troy Slaten, you were in the courtroom, you`re an attorney. If they do have to try this all over again, given that they dismissed the whole part about Marc Cherry hitting her and he was cleared, then she doesn`t even get to come in with that again, right?

TROY SLATEN, ATTORNEY: Absolutely not. That`s done, the judge has found that there`s -- that no reasonable juror could possibly find in her favor. So that is out. That`s gone. But what`s really interesting is that the judge took the rare step in doing what`s called an Allen (ph) charge, telling the jurors that you`re going to have to come back, even though the jury foreperson said, I don`t think this is going to work, I don`t think we`re going to come up with a decision. The judge said, no, you`re going to come back tomorrow; you`re going to try a little bit harder.

And it`s interesting that one of the jurors in the back row was nodding his head in agreement -- so basically disagreeing with the jury foreperson.

VELEZ-MITCHELL: Unbelievable.

And on the other side of the break, we`re going to talk about how Nicollette Sheridan reacted to this plot twist. I mean, some people say she`s never going to work in Hollywood again after all the things she said. She argues she really needs this money. Will she get it?

On the other side.


VELEZ-MITCHELL: The jury in the "Desperate Housewives" case implying they may be deadlocked. They`re coming back tomorrow. We shall see. Jim Moret, how did Nicollette Sheridan, the plaintiff, respond to that?

MORET: She said something along the lines of, "this is crazy" to her attorney. And her attorney agreed. He`s frustrated. Everybody`s frustrated.

Jane, there`s so much on the line here. It`s only been one day. We`ve covered enough trials to know that jurors should go 3, 4, 5 days before they come to this point where they say to the judge, "We can`t reach a verdict." It`s just natural. This is a lower standard than a criminal case; it`s just a preponderance of the evidence. You just need nine jurors. The judge I think did the right thing in saying, "Go home, sleep on it, and come back tomorrow."

VELEZ-MITCHELL: Ok. 10 seconds, Troy, do you think if there`s a new trial, that ABC will just say, let`s make a deal? I have five seconds, yes or no?

SLATEN: Probably not. I mean if they had --

VELEZ-MITCHELL: That`s the answer we have. Thank you both, gentlemen.

Nancy next.