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NANCY GRACE

Missing California Girl`s Body Found/More Casey Anthony Case Video Released

Aired April 7, 2009 - 20:00:00   ET

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


NANCY GRACE, HOST: Breaking news tonight in the desperate search for a 2-year-old Florida girl, Caylee. Six months of searching culminates when skeletal remains found in a heavily wooded area just 15 houses from the Anthony home confirmed to be Caylee, manner of death homicide. A utility meter reader stumbles on a tiny human skeleton, including a skull covered in light-colored hair, the killer duct taping and placing a heart-shaped sticker directly over the mouth, then triple bagging little Caylee like she`s trash.

Bombshell tonight. Secret police files from inside tot mom`s murder investigation. In the last hours, we review raw video, more raw video, including tot mom at the moment she`s arrested for the murder of Caylee. Tot mom cool, calm, collected, caught on camera double checking her hair, her clothing, her nails while cops aren`t watching. Does she think the cops really care about her hair and make-up?

At first, she tells them she wants to help, but of course, that never happens. Tot mom swears Caylee`s still alive. She says that over and over, that she, quote, "feels it." Hundreds of new documents released, videotape, audiotape, interviews, computer searches, private cell phone photos of tot mom and little Caylee. And from her own mouth tonight, we hear tot mom`s chilly scenario, a lie detailing to police how former lover Jesse Grund may have murdered little Caylee in the Anthony pool. But did tot mom unwittingly reveal the manner of death?

Also caught on videotape, tot mom`s brother, Lee, as tot mom`s former lover goes undercover with a wire, catching Lee Anthony talking about the smell in tot mom`s car, her history of lies, and pointing the finger at two ex-lovers. Brother Lee also describing grandmother Cindy and tot mom nearly come to blows when Caylee disappears.

And buried deep in stacks of police files, a secret voice-mail from brother Lee to police, leaking -- intentionally leaking -- info from a meeting with tot mom`s lawyer. Tonight, we have the voice-mail, and computer searches, "how to" recipes for chloroform, neck breaking, household weapons. All the while, tot mom more worried about leaks and hidden cameras than finding Caylee. And why, why have cops zeroed in on this photo of Caylee?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: (INAUDIBLE) of the national media, then you come up...

CASEY ANTHONY, CAYLEE`S MOTHER: You know, the Nancy Graces...

UNIDENTIFIED MALE: Do you have any interest in helping us?

CASEY ANTHONY: I`ve had interest in helping law enforcement from the beginning. Unfortunately, my hands were literally tied and I was put in a position where someone`s trying to trick a confession out of me...

UNIDENTIFIED MALE: Well, I don`t want...

CASEY ANTHONY: ... and that`s not going to happen.

(INAUDIBLE) question. Are there cameras in all of the rooms or just...

UNIDENTIFIED MALE: I have no freaking clue.

CASEY ANTHONY: I feel that I do have the right, with invoking my right to counsel, that I should be able to speak with my attorney before I provide any sort of answer.

UNIDENTIFIED MALE: We Mirandized her (INAUDIBLE) at 4:22. She invoked her exasperations (ph) are the same as ours. (INAUDIBLE) the opportunity to speak to law enforcement face to face. If you guys are interested in doing that, let`s get that done. Quit the finger pointing, OK?

CASEY ANTHONY: I as a mom, I know in my gut -- there`s a feeling as a parent that you know certain things about your child. You can feel that connection. And I still have that feeling, that presence. I know that she`s alive.

(END VIDEO CLIP)

GRACE: Good evening. I`m Nancy Grace. I want to thank you for being with us. Secret police files inside tot mom`s murder investigation. In the last hours, we review more raw video, including tot mom at the moment she`s arrested for the brutal murder of her 2-year-old little girl.

(BEGIN VIDEO CLIP)

CASEY ANTHONY: We thought that the cars that were following us from my attorney`s office were media because there was a media van that followed us, and another van that (INAUDIBLE) So we were thinking, Here we go. Happens every day.

UNIDENTIFIED MALE: I know. I know it does. I`d like to be able to stop that, to be honest with you.

CASEY ANTHONY: I would, too.

We have said...

UNIDENTIFIED MALE: ... a possibility today?

CASEY ANTHONY: ... from the very beginning if law enforcement would like to speak with myself, he would like to be present. I would like to have my attorney present.

(INAUDIBLE) announcing that, you know, there was going to be a grand jury. And obviously, my name was thrown out and they knew who the grand jury was for.

UNIDENTIFIED MALE: Who threw your name out?

CASEY ANTHONY: The media said that it was from an inside source.

I`ll take this as far as I need to, to prove my innocence, which I guess is my point in all of this.

UNIDENTIFIED MALE: When you say you`ll take it as far as you need to to prove your innocence, what do you mean?

CASEY ANTHONY: Serving the indictment today and the warrant for my arrest, everything else, I`m not running.

ANTHONY RUSCIANO, CASEY`S FORMER LOVER: We had sex.

UNIDENTIFIED MALE: You had sex. OK, where did you guys have sex?

RUSCIANO: My apartment.

UNIDENTIFIED MALE: Your apartment. OK. That would have been -- when would that have been?

RUSCIANO: During January.

CASEY ANTHONY: (INAUDIBLE) people are getting their information from the Nancy Graces or from "Globe" magazine or "People" or, you know, stuff like that. Are you kidding me?

(END VIDEO CLIP)

GRACE: We`ll take you straight to the latest on tot mom`s murder investigation.

But right now, breaking news, Tracy, California. The search for 8- year-old Sandra Cantu has come to an end. Tonight, the pastor at a local Baptist church being questioned.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: The bag was taken from the water and transported to the San Joaquin County morgue, where it was opened. Inside the bag, we located the body of Sandra Cantu. Sandra Cantu was positively identified at that point in time. Dr. Omolu (ph) of the coroner`s office will be conducting an autopsy to determine the cause of death. And our heartfelt sympathies go out to Sandra`s family, her friends, and her classmates.

From this point forward, investigators will be looking at all of the evidence that was collected and the evidence and information that we have collected prior -- in the prior days -- regarding this investigation. We will be determining the person or persons responsible for this reprehensible act, and we will bring them to justice.

UNIDENTIFIED MALE: This is an unimaginable loss for any parent. It`s a very difficult loss for our community.

UNIDENTIFIED FEMALE: Police are searching a church near the Tracy, California, mobile home park where Sandra Cantu went missing late last month. Investigators cordoned off the church property with crime scene tape. They aren`t saying what they`re looking for.

UNIDENTIFIED MALE: Police say her body was found wearing the very pink Hello Kitty T-shirt she was last seen in. Police have not identified a suspect.

(END VIDEO CLIP)

GRACE: In that last video, you see 8-year-old Sandra Cantu literally skipping with joy. According to police sources, in the next few hours, she was murdered.

Straight out to Sebastian Kunz with KNEW, joining us from Palo Alto, California. Sebastian, what happened?

SEBASTIAN KUNZ, KNEW RADIO: Nancy, it was a very emotional day yesterday. It was in the morning, I understand it, when these farm workers at a dairy farm sort of began to drain one of the nearby irrigation canals. And it was during that process -- it was for legitimate farming, you know, purposes. They needed to just drain this canal. And all of a sudden, a suitcase kind of floated to the surface, which is highly irregular in the extreme. And they called the police, and the police immediately cordoned off the area and began examining the evidence, taking photographs...

GRACE: Sebastian, what was the tip? What do we know led police to that canal?

KUNZ: We understand that it was the farm workers that called the police.

GRACE: I understand. And is it true, Sebastian Kunz -- Sebastian joining us from KNEW -- that the same workers had been working in the area and were there as recently as two weeks ago, and there was no suitcase there, so they became suspicious?

KUNZ: That`s a possibility. We also understand that this area has been combed by the authorities and during the two weekends that have gone by since the initial report of her being missing. And we know that both of those weekends were just huge, huge manhunts, with hundreds and hundreds of volunteers working on the case.

GRACE: So Sebastian, are you telling me that this canal had already been searched?

KUNZ: It`s not entirely clear. The area has been gone through by the police. Tony Sheneman, the Tracy police spokesperson, has said that, you know, the area has been looked over and there was nothing there at the time. That indicates...

GRACE: OK. Got it. Joining me right now, in addition to Sebastian Kunz with KNEW, and Blake Taylor from KMJ 580 Newsradio, with me is Sergeant Tony Sheneman, the PIO at Tracy Police Department. Sergeant, thank you for being with us.

SGT. TONY SHENEMAN, PIO, TRACY POLICE DEPARTMENT: Good evening.

GRACE: Sergeant, had the canal been searched prior to yesterday?

SHENEMAN: First of all, it`s a collection pond, approximately 150 yards by 50 yards, that`s used as a collection area for run-off from the dairy operation. It`s filled by biomass run-off from the cows and other animals that are there.

GRACE: Yes. Had it been searched prior to yesterday?

SHENEMAN: There were groups in the area that have looked throughout the land mass over there. No one was in the water, though.

GRACE: OK. With me, Sergeant Tony Sheneman from Tracy Police Department. I understand that the workers tipped you of regarding a suitcase. Sergeant, do we know cause of death yet?

SHENEMAN: We do not.

GRACE: Sergeant, I understand that as we go to air, a search warrant has been executed at Clover (ph) Road Baptist church. Why?

SHENEMAN: Probable cause was developed over the last two days that proved to a judge that there was reason for us to enter the church. The warrants are being sealed, and I can`t discuss them.

GRACE: Understood. To Blake Taylor, news director at KMJ 580 Newsradio. Blake Taylor, is it true the pastor of Clover Road Baptist church also lives in the same mobile home park as did Sandra Cantu and he has been questioned for several hours?

BLAKE TAYLOR, KMJ 580 NEWSRADIO: Yes, that`s correct. And the sergeant can follow up on that. They did, in fact, talk to this pastor. Lane Wallace (ph) is his name. He`s been in the community for several years. He is reportedly cooperating with the detectives in detail.

Now, in fact, Pastor Wallace and his wife were very outspoken to the media today. They came forward, offering their opinion on the situation, saying they`ve known Sandra and her siblings for years. They consider them like their own children. The pastor`s wife said Sandra and her granddaughters were, in fact, playmates -- her great-granddaughter.

GRACE: Right.

TAYLOR: Now, police are stressing that Pastor Wallace, even though he was questioned for well over three hours today, has not been arrested and he`s not considered a prime suspect here in Sandra`s murder.

GRACE: OK.

TAYLOR: They are, however, qualifying that statement by saying that nobody has been ruled out.

GRACE: To Sergeant Scott Haines with Santa Rosa County, Florida. Isn`t it entirely possible the suitcase can be traced back to the killer? That happened in the Melanie Maguire (ph) case, of course.

SGT. SCOTT HAINES, SHERIFF`S OFFICER, SANTA ROSA COUNTY, FLORIDA: Absolutely. First of all, they`re going to see if any family members recognized that suitcase or had seen it before. Possibly, there could be DNA presence on that, as well as latent fingerprints.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It`s been reported that we are arresting Pastor Wallace. That is not the case. He has been interviewed, as have hundreds of people. Everyone that we speak to could be considered a person of interest. We have no specific person that we are looking at at this time.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

GRACE: More raw video of tot mom the day she was arrested and indicted for the murder of her little girl. And tonight, Lee Anthony caught on tape. A former lover goes under wire and asks Lee Anthony revealing questions. Also, he leaves a voice-mail, a voice-mail regarding a secret meeting with tot mom`s lawyer. We have the voice-mail. Norm (ph), cue up the voice-mail.

To Mark Williams, reporter and anchor, standing by there at the jail in Florida. Mark, what`s the latest?

MARK WILLIAMS, REPORTER AND ANCHOR: Well, the latest is, of course, Nancy, we have tons of video and audio to go through, and a lot of us are just going through it right now. One of the things that we found out is Jesse Grund, one of Casey Anthony`s ex-boyfriends, speaking to Orange County SO investigators, said that Lee Anthony, Casey`s brother, said Cindy and Casey had a knock-down, drag-out fight on June 15th. That`s the day before little Caylee went missing. It got so violent that, one, Cindy grabbed Casey by the throat and started to choke her.

Also, Casey telling Jesse Grund -- Casey telling Jesse Grund that in September of 2005 -- this is shocking, Nancy -- that Lee tried to force himself onto her in an attempt to have sex with his very own sister. That`s why she didn`t want Lee around Caylee. So those are the big things that were revealed today, Nancy.

GRACE: We are taking your calls live. A physical confrontation alleged, a knock-down, drag-out between tot mom and her mother when little Caylee disappears. That should put to rest a lot of these conspiracy theories that grandmother Cindy was in on her disappearance.

Let`s unleash the lawyers, Mickey Sherman, Susan Moss, Alex Sanchez. Weigh in, Susan Moss.

SUSAN MOSS, FAMILY LAW ATTORNEY: On the day that she`s arrested and going to the pokey, she fixes her hair like it`s all a jokey. Come on! This is just outrageous! These videos show her complete lack of remorse, her complete lack of caring, the fact that her daughter is gone. She`s been missing for weeks, and all she can do is care about her personal appearance?

GRACE: Mickey Sherman?

MICKEY SHERMAN, DEFENSE ATTORNEY: She`s being interrogated by the police. Is anybody else bothered by the fact that she`s being interrogated, at least from the tapes that we saw -- which we have no business seeing, but they`re out there -- she asks that she has to have a lawyer, and they kind of ignore her. I mean, this case -- if she`s ever convicted, she`s -- there`s so many built-in appeals here, it`s amazing.

GRACE: Actually, what she says is, I would want a lawyer if. That`s what she says. I don`t know if an appeals court is going to construe that...

SHERMAN: But Nancy...

GRACE: ... as her saying, I`m not talking anymore until I have my lawyer.

SHERMAN: Nancy...

GRACE: And after that, Mickey Sherman, she goes on to initiate conversation.

SHERMAN: Yes, but you know the law, Nancy.

GRACE: Yes, I do.

SHERMAN: You`ve been a prosecutor. Once you even mention the word lawyer, everything`s supposed to stop. Why would they take the chance of jeopardizing this prosecution? I think the police have made a terrible mistake on that.

GRACE: Out to Alex Sanchez. Weigh in, Alex.

ALEX SANCHEZ, DEFENSE ATTORNEY: You know, look, you know, she`s not an experienced criminal, and she`s a nervous young person. You know, her behavior on any of those tapes, it really doesn`t surprise me because she`s anxious. She knows she`s in the eye of the media, and she`s possibly facing criminal charges, so she`s going to act a little peculiar. I don`t think there`s anything outrageous about her behavior at this point.

GRACE: Let`s take a listen to Lee Anthony`s voice-mail about his meeting with tot mom`s lawyer.

(BEGIN AUDIO CLIP)

LEE ANTHONY, CASEY`S BROTHER: Detective Melich, this is Lee Anthony. I wanted to leave you a voice-mail and give you a heads-up on my understanding of what`s going to go down today at the bond hearing. It`s about 10 after 1:00. I`m on my way there right now. My family is on their way there now.

I just sat in a meeting with Casey`s attorney. He was prepping my mother and father and myself on questions he was going to ask us because we were going to be called to testify. This is, like I said earlier today, all news to me. However, I do feel that it is necessary in order to find Caylee to do that. So I wanted to let you know that I am willing to take the stand and that is something that I`m going to do.

However, I also wanted to be very clear that I fully have the confidence in everything and the investigation that you guys have had, and I really do not see the line of questioning going towards my mother and father, or frankly, directed at me to contradict that. However, I do just want to make you aware that you are going to be getting some, you know, line of questioning from Mr. Baez, that -- you know, he`s basically going to be pushing as hard as he can for bond just because of our feelings that if we can talk to Casey that she would open up to us, and we all believe that.

However, he`s going to use that to say that`s why bond needs to happen, which I think my parents believe in. I don`t necessarily know if I believe in that 100 percent. And when I`m asked the questions, I`m going to answer in my own honest opinion. But I just wanted to give you a brief heads-up and let you know I tried my best when I spoke to my parents to make sure that we`re all working towards the same goal, which is finding Caylee, and that we need to be supportive of each other.

But I know it`s close timing. I just want to make you aware. And you may not get this until after work. Sorry for such a long-winded call, but I will see you there. Thank you so much for everything that you`ve done. Bye-bye.

(END AUDIO CLIP)

GRACE: Yes, "long-winded" was accurate. To Natisha Lance, our producer standing by at the jail. What`s he trying to tell cops?

NATISHA LANCE, NANCY GRACE PRODUCER: What he`s trying to tell them, Nancy, is that he met with Casey Anthony`s attorney, he received some coaching, as well as his father, George and Cindy Anthony, about this bond hearing that was coming up. And remember, this is the bond hearing where Yuri Melich said that the smell in the car smelled like human decomposition.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

RUSCIANO: We had sex.

UNIDENTIFIED MALE: You had sex. OK, where did you guys have sex?

RUSCIANO: My apartment.

UNIDENTIFIED MALE: Your apartment. OK. That would have been -- when would that have been?

RUSCIANO: During January.

UNIDENTIFIED MALE: During January?

RUSCIANO: Yes.

UNIDENTIFIED MALE: OK. Do you know where her daughter was at that time?

RUSCIANO: Absolutely not.

JESSE GRUND, CASEY`S FORMER LOVER: Lee, shortly after my second interview with Orange County, confided in me that the reason that he thought -- Cindy confided in him that the reason he thought she felt that Casey ran off was there was a big fight between the two of them, and the fight concerned Casey not being home a lot and not bringing Caylee by. It got into a very heated argument, which turned physical, and Cindy started choking Casey.

UNIDENTIFIED MALE: Was there anyone else in the house when this happened?

GRUND: He didn`t actually expand upon that. As far as I understood from what he told me, it was just Cindy and Casey.

(END VIDEO CLIP)

GRACE: Straight out to Nikki Pierce with WDBO radio. That`s where we hear about this physical confrontation alleged between tot mom and grandmother Cindy Anthony, correct?

NIKKI PIERCE, WDBO: That`s right. We hear that there was a knock- down, drag-out, an enormous argument about stealing money, about taking care of Caylee, June 15th, which is the day before investigators think that Caylee went missing. And we hear that Cindy later admitted that she got so heated during this argument that she grabbed Casey by her neck, choking her, after a fashion. And that may have been what touched off this whole scenario with Casey leaving the house.

GRACE: Straight out to the lines. Heather in Ohio. Hi, Heather.

UNIDENTIFIED FEMALE: Hi.

GRACE: What`s your question, dear?

UNIDENTIFIED FEMALE: Yes. Actually, I have two questions. When is her court day? And after she gets convicted, if she does, can people still send her money?

GRACE: Natisha Lance, what about it?

LANCE: People can still send money to Casey and they are still sending money from all over the country.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

JESSE GRUND, CASEY ANTHONY`S EX-FIANCE: In September of 2005, Casey told me that she didn`t feel comfortable with Lee being around Caylee. When I asked why, she said that recently -- she wouldn`t expand upon recently, I assume it was before Caylee was born -- Casey and Lee were at the house alone together and Casey -- and Lee attempted to have sex with her.

UNIDENTIFIED MALE: Did you get an indication of what attempted to have sex meant?

GRUND: It -- there was never any explanation. My impression was that somehow he was trying to pressure her into it somehow. That was my impression from what she was saying. I didn`t have anything else concrete on it and it was so vile and disgusting to me that I really didn`t want to get any further into it than what she was telling me.

(END VIDEO CLIP)

NANCY GRACE, HOST: Out to bounty hunter Leonard Padilla, he will be disposed in this case and he performed an exhaustive search for little Caylee. You know what, I wouldn`t believe what she just said about brother Lee forcing himself on her. I take that with a box of salt, Padilla.

LEONARD PADILLA, BOUNTY HUNTER, WILL BE DEPOSED IN TOT MOM CIVIL CASE: That`d be a, that`d be a smart thing to do, because I`m telling you, there is nothing that Casey says, whether it`s pro-anybody or anti-anybody, that you can actually believe.

GRACE: And here is Lee Anthony, her brother, supporting her throughout, sending her secret coded messages.

PADILLA: Right.

GRACE: . from the memorial for little Caylee. He`s sending her messages to the jail, and she is completely trashing her own brother this way, suggesting to -- you know what? That convinces me that nobody, nothing, nowhere, no how mean anything to her. Nothing means anything to her inside.

PADILLA: There is nothing sacred to her except herself. Not her child, not her dad, not her mother, not her brother, not her friends. The minute that she senses that they`re not going along with her program, she turns against them. And I saw that time and time and time again.

And the situation is that this has developed over years and years of preparation. It`s not something that she came up with over night. It`s something that`s developed over the years.

GRACE: And tonight after reviewing tons, reams of raw footage, we find out about a chilling scenario that tot mom comes up with. A scenario in which she says former lover Jesse Grund drowned -- may have drowned little Caylee in the Anthony family swimming pool. Take a listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Did Padilla tell you how you killed the baby? Did they say how they were putting that together?

GRUND: I think he did, but I don`t remember.

UNIDENTIFIED MALE: Try to remember for me, because that`s pretty crucial.

GRUND: I think he may have said that I drowned Caylee. I think that`s what they`re trying to say.

UNIDENTIFIED MALE: That you intentionally drowned Caylee.

GRUND: Yes.

UNIDENTIFIED MALE: Where was that supposed to have happened?

GRUND: I think in the pool in the backyard.

(END VIDEO CLIP)

GRACE: Unleash the lawyers. We are taking your calls live. Susan Moss, child advocate in New York. Mickey Sherman, criminal defense attorney and author of "How Can You Defend These People" and "It Runs in the Family," his new wife, Liz Will, author of "Face of Betrayal." Scary.

Also with me, Alex Sanchez, defense story in New York.

Alex, she`s pointing the finger at everybody else at trial. Every former lover has come under fire, including Jesse Grund. Hello? He passed a polygraph and she is suggesting he drowned the child in the Anthony family pool? Does she -- is she somehow unwittingly revealing the true cause of death?

ALEX SANCHEZ, DEFENSE ATTORNEY: I don`t know and I don`t think anybody will ever know. But I know one thing, Nancy, this is a young person who`s in a whole lot of trouble.

GRACE: That`s all you`ve got to say?

SANCHEZ: And when people.

GRACE: She`s in trouble! We know that.

SANCHEZ: And when people are under that degree of pressure, they start spewing a lot of things that don`t seem to make sense to the outside world. And I think that is the predicament that she finds herself in.

GRACE: Look.

SANCHEZ: . and she`s not really making much sense right now.

GRACE: This girl -- look at her. She`s adjusting her nails. What time is it? Why are they keeping me waiting? She fixes her hair, her nails, her slacks, her shirt. You know, does she think the cops care about her hair and makeup? I`m stunned.

SANCHEZ: I think there`s a lot of nervous energy there.

GRACE: Yes, OK.

SANCHEZ: That`s what`s going on there.

GRACE: To Dr. Leslie Austin, psychotherapist, joining us out of New York. Dr. Leslie, did she unwittingly reveal the manner of death?

DR. LESLIE AUSTIN, PSYCHOTHERAPIST: It`s hard to say, but what she is revealing is that she will say anything about anyone to cast the attention away from herself and she will manipulate any possibility.

GRACE: Well, hold on. Hold on, now. Let`s think this thing through. I agree with you, Leslie Austin.

AUSTIN: Yes.

GRACE: I do. But I want to look at the facts, OK? Let`s look at the facts, Sue Moss, Mickey Sherman, Alex Sanchez. We know that at one point Cindy Anthony was concerned that she saw the ladder down to that swimming pool when it shouldn`t have been.

We know that the cadaver dogs hit in the backyard. We know that her car had human decomposition in it. Now she comes up with a scenario that the child was drowned in that pool. Ding, ding. Is it ringing a bell to anybody? Sue?

SUSAN MOSS, FAMILY LAW ATTORNEY, CHILD ADVOCATE: What a coinky-dink. Absolutely. There is too much evidence that something happened around this house which ultimately led to this body being moved only yards and feet away. It seems that this might be the clue that can tell the police, you know, where more to look.

Maybe they`ve got to look at that pool again. Maybe they need to bring the cadaver dogs back because this might be the clue to the end.

GRACE: To Dr. Leslie Austin, again, psychotherapist joining us out of New York. Isn`t it true that when people have these elaborate lies, Dr. Leslie, that they weave in portions of the truth?

AUSTIN: Absolutely. Especially someone who appears to have sociopathic tendencies like she do. They take the tiny kernel of truth and twist it and distort it to try to get attention away from themselves and they serve only their own interests.

GRACE: Mickey Sherman, what about it? Look at the evidence. Look at the hard evidence, Mickey. We know that she was buried with things from the home, things from her room which suggest the killing happened in or around the home.

We know cadaver dogs hit in the backyard. We know that the grandparents were concerned that the pool was left in a manner that suggested someone had been in it. We know that there was disturbed dirt, earth in the backyard. We know the car was parked there at the house and had a human body in it.

Mickey, now she pops up with this theory the child drowned in the pool.

MICKEY SHERMAN, CRIMINAL DEFENSE ATTORNEY, AUTHOR OF "HOW CAN YOU DEFEND THOSE PEOPLE?": Well, did she come up with that theory? How do we know she came up with that theory? Everybody here is not exactly telling the truth. They`re passing out.

GRACE: Why do you say that? Why do you say everybody`s not telling the truth?

SHERMAN: Well, they`re passing out knives in this family to stab each other in the back. The call from the brother to suck up to the police, you know, the one that gives you a heads up.

GRACE: Why are you changing the topic? We`re not talking about Lee Anthony.

SHERMAN: Well, because.

GRACE: He`s not the one who said this.

SHERMAN: But it goes to the reliability of everybody`s story here.

GRACE: Oh, OK. You know what, that is BS. The fact that one person may be unreliable, to suggest that all the 100 plus state`s witnesses are unreliable, you know, you can flash me that $1 million grin all you want to.

SHERMAN: But -- well, first of all, we should know what these people say.

GRACE: That ain`t flying. That ain`t.

SHERMAN: We should know what these people say. This is a police investigation. Why do they share everything with the general public? How can they conduct themselves like that? It makes no sense.

GRACE: Because those are the rules in Florida. You know what, those are the rules. Play by the rules, Sherman.

To Dorothy in Virginia, hi, Dorothy.

DOROTHY, CALLER FROM VIRGINIA: Yes, ma`am. Nancy, we love your show. We watch it every night.

GRACE: Thank you, Dorothy, and thank you for calling in. What`s your question, dear?

DOROTHY: Yes, ma`am. I want to know why is Casey acting like she`s liberating over a murder case with the police officer.

GRACE: Why she`s what?

DOROTHY: Deliberating. She`s acting like she and the police officers are deliberating over a murder case.

GRACE: She does sound like she`s trying to piece things together in her discussions with police. What about it? You know that`s something I don`t understand, Leonard Padilla, her manner with the police.

PADILLA: Well, her manner with the police is the same manner that there was with Tracy and Rob and Toby and Miguel and anybody that was around her. She always has a situation where once she figures that she`s got the hook set, then she starts reeling it in.

If you don`t go for the hook being set, she gets upset and just, hey, get out of my life and I`ll talk to somebody else. And I think law enforcement, at the time, was playing her to see what kind of conversation they could get.

GRACE: Very quickly, to Dr. David Posey, medical examiner and forensic pathologist with Glenn Oaks Pathology Group in L.A. Dr. Posey, if the child were to drown in the family pool, what forensic tips would there be? What clue would we find?

DR. DAVID M. POSEY, MEDICAL EXAMINER, GLEN OAKS PATHOLOGY MEDICAL GROUP: I think it`s already been partially discussed, you`re going to have to go back to the pool. You know the body was so badly decomposed that we`ll never get anything from the autopsy itself.

But back at the pool, take the pool apart basically. You`ve got to go through the filters, you`ve got to bring your cadaver dog back. Just about anything and everything in that pool needs to be re-examined.

Yes, it`s, you know, months down the line, but believe it or not, trace evidence still can be there from luminol to the whole nine yards. I think that`s what they need to do at this point, if that`s a possibility.

And based on everything I`m hearing, I think that`s a real good possibility, that she`s trying to weed in a little bit of the truth with this big facade she`s put out there.

GRACE: Dr. David Posey joining us from L.A.

As we go to break, a very special happy birthday to Martha Heller. I met Miss Heller my first year of law school. Her son, Frank, my study partner for three years. At 70 plus, she heads to Harvard University. She`s about to graduate with a degree in journalism.

Happy birthday, beautiful Miss Heller.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

CASEY ANTHONY, MOTHER OF CAYLEE ANTHONY: I should have been the one to, I guess, come forward with it. But you know, we did open up that door to law enforcement before when Sgt. Allen was making a big deal of saying, well, we want to talk to her, when can we talk to her, and saying, well, the door`s open.

UNIDENTIFIED MALE: I don`t believe he ever told us the door`s open. I mean.

ANTHONY: Well, maybe not to you, directly, but I know to Sgt. Alan that was sitting there, even one of the times that he spoke with him. So I`ve heard the words come out of his mouth even myself directly to other people that maybe he didn`t either relay the message or put it a different way.

So I don`t know. I think the lack of communication has put people in opposite course when everybody has the same goals, is to find Caylee.

UNIDENTIFIED MALE: I will play within the rules of the law. If it`s a tool that`s available to me that I can use later to look back on and see if I missed something or could I have done something better, I`m going to take advantage of it.

ANTHONY: Yes, exactly.

UNIDENTIFIED MALE: I would assume that -- probably has one somewhere.

ANTHONY: Or something that records audio, so either way.

UNIDENTIFIED MALE: Yes.

(CROSSTALK)

(END VIDEO CLIP)

GRACE: You are seeing tot mom caught on video the day she is arrested for the murder of her 2-year-old little girl. Calm, cool, collected -- doesn`t begin to describe her. We are taking your calls live.

To Dottie in South Carolina, hi, Dottie.

DOTTIE, CALLER FROM SOUTH CAROLINA: Hi, Nancy. Love your show.

GRACE: Thank you and thank you for calling in. What`s your question, dear?

DOTTIE: Yes. Casey supposedly said that the father of Caylee signed away all his birthrights. Can they not find out from that paperwork who the father is?

GRACE: To Natisha Lance, our producer there at the jailhouse, you know, I have not heard that tidbit that the father signed away his rights. What do you know, quickly?

NATISHA LANCE, NANCY GRACE PRODUCER, ON LOCATION FROM TOT MOM JAIL: No, he didn`t sign away any rights, Nancy. His name was never on the birth certificate and the way Casey Anthony tells it is that he died in a car accident. Caylee never knew him.

GRACE: To Sergeant Scott Haines, joining us from Santa Rosa County, Florida. Sergeant, you have interviewed countless defendants. What do you make of her demeanor, being so calm? This is the day that the search for Caylee alive officially ends and she`s charged with murder.

Cops are telling her, your daughter is dead and this is your behavior. What does it say to you, Haines?

SGT. SCOTT HAINES, SHERIFF`S OFFICER, SANTA ROSA COUNTY, FL.: That is totally unlike anything that I have ever seen before. Usually when you tell somebody that their child has been found and that they`re dead, the reaction that you get is something that you will never forget.

It`s a horrible scene, it`s usually wailing, uncontrollably, and they usually have to be medicated and it`s just horrible to view and to see her that carefree about finding out that her daughter is no longer on this earth. It`s very disturbing.

GRACE: Out to the lines, Debi in Arkansas. Hi, Deb.

DEBI, CALLER FROM ARKANSAS: Hi, Nancy. I have a quick question for you.

GRACE: OK.

DEBI: I was wondering why Casey is afforded the luxury of having a jail cell by herself. Why has she not been put out into general population with other inmates?

GRACE: To Mark Williams, reporter and anchor, joining us at the jailhouse. What about it, Williams?

MARK WILLIAMS, NEWS DIRECTOR, WNDB NEWSTALK 1150: Well, I`ll tell you what, Nancy, I think she -- they just want to keep her segregated from everybody else right now. Nobody likes an alleged child killer and they don`t want to put her back in the general population. So they keep an eye on her.

The cell is 12 x 7. It`s open, they can see. So they just want to keep that eye on her, Nancy.

GRACE: Out to the lines, Barbara in California. Hi, Barb.

BARBARA, CALLER FROM CALIFORNIA: Hi, Nancy. How are you?

GRACE: I`m good, dear. What`s your question?

BARBARA: OK. I wanted to know something. I had thought a long time ago that that baby might have drowned in that pool by accident and then Casey went to all this elaborate ruse, because she`s scared to death of her mother.

Remember, the stairs were there and they shouldn`t have been and there was a little tiny bathing suit there.

GRACE: OK. Hold on.

BARBARA: And nobody talks about it anymore.

GRACE: Hold on, Barbara in California. Let`s go with your scenario just for a moment. How do you explain the computer searches by tot mom weeks before for chloroform, neck breaking, the fact that chloroform was found saturating her trunk.

How does that fit in with an accident?

BARBARA: Well, you know, nothing`s fitting in with anything right now.

GRACE: It`s fitting in with murder one.

BARBARA: She`s a nut case. Pardon?

GRACE: It`s fitting in with murder one. But let`s just talk about the accident theory. What about it, Nikki Pierce, WBDO? Apparently the state didn`t buy it.

NIKKI PIERCE, REPORTER, WDBO RADIO: Well, it was a very popular theory. But exactly as you said, Nancy, the fly in that ointment is the problem with the chloroform searches. The search for all of the household elements that could make chloroform, neck breaking, the missing children searches on the Web site and so on.

And the clincher is going to be the chloroform that`s found in the trunk. Really, this is going to rely on the forensic evidence. And as we`re seeing now, as it stands now, the forensic evidence just does not back up the theory about the pool.

GRACE: I`ve got in my hand those computer searches you`re referring to, Nikki. They go chloroform, misspelled, another chloroform, shovel, neck breaking, household weapons, how to make chloroform. "One Tree Hill" 100th episode. That deals with a scenario that touches on this case. You see over and over, tons of searches that relate back to an alleged murder.

Everybody, I want to switch gears very quickly. We are still taking your calls, but I want to introduce you to four friends of the show. Now they`re new to television. With me tonight, Casey Carter from Girl Scout troop 0077 and Maline Lapress (ph), same troop 0077. With them Barb Carter, mom, and Deb Lapress, mom.

Ladies, thank you for being with us. Could you tell us just how much Girl Scout casing have you guys sold? How many Girl Scout cookies?

UNIDENTIFIED FEMALE: 293 boxes.

GRACE: How long did it take you to do that, dear?

UNIDENTIFIED FEMALE: A couple of months.

GRACE: And Maline, what do you like the most about being a Girl Scout?

UNIDENTIFIED FEMALE: I like it because you get to do a lot of fun activities with your troop.

GRACE: Like?

UNIDENTIFIED FEMALE: Like raising money for our troops. We`re going to do lots of fun activities.

GRACE: Do you get to do things with your mom, Maline, relating to Girl Scouts? Does she help you?

UNIDENTIFIED FEMALE: Yes, she does.

GRACE: What about you, Casey?

UNIDENTIFIED FEMALE: Yes. My mom is my troop leader.

GRACE: Really? Now, let me ask you, what got you involved with the Girl Scouts?

UNIDENTIFIED FEMALE: I`m a lifelong Girl Scout. I came up through the ranks of Girl Scouts. It helped me in college. I went to the military. It helped me in the military. And I think it`s important for all girls to have.

GRACE: And what about you?

UNIDENTIFIED FEMALE: Well, I was a short lived Girl Scout myself but.

GRACE: Me, too. After I sawed my embroidery project to the front of my Girl Scouts dress, that kind of ended things.

UNIDENTIFIED FEMALE: Cooking was mine. But since Maline is (INAUDIBLE), I`ve been asked again.

GRACE: I am so impressed by all of your badges. And everybody, when we come back, I`m going to be presenting a check to these two young Girl Scouts and their mom for all the cookies they sold to our show.

(COMMERCIAL BREAK)

GRACE: Welcome back. With me here in the studio, two very special guests and their moms.

To you, Casey, what do the Girl Scouts do with all the money?

UNIDENTIFIED FEMALE: We go on trips to very fun stuff. One of the things we`re doing is going indoor skydiving.

GRACE: Oh my goodness. OK, I`ve never done that. Now when you sell the cookies, Maline, do you go door-to-door? Do you go to a shopping mall and put up a table? How do you sell these cookies?

UNIDENTIFIED FEMALE: Sometimes I go door-to-door. But as a troop, we do a booth sale.

GRACE: Oh, a booth sale. Where?

UNIDENTIFIED FEMALE: We can do it anywhere in New Hampshire.

GRACE: Now let me ask you, when you go door-to-door, your mommy goes with you, right?

UNIDENTIFIED FEMALE: Yes.

GRACE: Good girl. And these cookies behind you and others are going somewhere very special. Where are they going, Casey?

UNIDENTIFIED FEMALE: They`re going to a military in Iraq.

GRACE: I`m so proud of you, girls. What grade are you in, Maline?

UNIDENTIFIED FEMALE: Fourth.

GRACE: You, too?

UNIDENTIFIED FEMALE: Yes.

GRACE: And for you, here is a huge check from our show. Moms, help me out here. For a ton of cookies that we bought from the Girl Scouts.

And all of you, if you haven`t bought your cookies yet, here`s your chance. All right? These two salesgirls are going to grow up to be something wonderful. And I only hope my little Lucy is half as sweet as you.

Everyone, let`s stop and remember Army Sergeant Jose Regalado, 23, L.A., California. Killed in Iraq on a second tour. Remembered as a soldier`s soldier. Carried around a sonogram of his baby girl. Carried it as a good luck charm.

He loved Mexican folk dancing, chess, restoring cars, trucks, dreamed of restoring his wife`s dream car, a `67 red Mustang. Leaves behind parents, Jose and Raquel, four siblings, widow, Sherri, a baby girl, Hymay.

Jose Regalado, American hero.

Thanks to our guests but especially to you for being with us. I`ll see you tomorrow night, 8:00 sharp Eastern. And until then, good night friend.

END