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ISSUES WITH JANE VELEZ-MITCHELL

Victim of Addiction; Charlie Sheen Sues for $100 M; Van Der Sloot Laptop Secrets?; Lindsay Dodges Jail Again; Prosecutors Try for Reinstatement of Howard K. Stern Guilty Verdict

Aired March 10, 2011 - 19:00:00   ET

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


(BEGIN VIDEOTAPE)

JANE VELEZ-MITCHELL, HOST (voice-over): Tonight, are cops on the brink of solving the mysterious disappearance of Natalee Holloway? The FBI heads to Peru, where Joran Van Der Sloot sits behind bars, charged with murdering another woman, Stephany Flores. He`s looking to make a deal. They`re looking for answers. So will Joran finally reveal what happened to Natalee?

Plus Lindsay Lohan disses the judge, sauntering down the courthouse red carpet almost ten minutes late to face justice. So did judgment day finally arrive, or did LiLo get yet another get-out-of-jail-free card? You will not believe the latest twists and turns.

Then an ISSUES exclusive in the Anna Nicole Smith case. I`ll talk one-on-one to the attorney for Howard K. Stern, the troubled starlet`s ex- boyfriend. Are prosecutors really going to make another try at throwing Howard in prison for her drug use?

And life with Charlie Sheen. I`ll talk to his ex in a primetime live exclusive. The troubled actor has just sued the TV suits at his former hit show "Two and a Half Men" for $100 million bucks. Meantime, Charlie wants an intern. You will not believe how many people have applied, even as Charlie admits his life is falling apart.

ISSUES starts now.

(END VIDEOTAPE)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: FBI agents are headed to Lima, Peru. They will be there Monday, this next Monday at 2:30 in the afternoon.

(END VIDEO CLIP)

VELEZ-MITCHELL: Breaking news tonight. FBI agents headed to Peru as we speak. There, they will finally, finally, finally get a look at the laptop computer belonging to accused killer Joran Van Der Sloot. Could Joran`s laptop hold the secret of what happened to Natalee Holloway? Will we finally learn the truth we`ve been waiting for, for so long?

Van Der Sloot, the last person seen with Natalee Holloway, of course, when she vanished back in Aruba back in 2005. He was arrested two times. OK? For Holloway`s disappearance. He was never charged. But right now he is sitting in prison in Lima, Peru.

Joran is charged with the murder of another young woman, 21-year-old Stephany Flores, who was found dead in his Lima hotel room. Security cameras captured Van Der Sloot with Flores in a casino and also captured them entering his hotel room before Flores was found dead. There they are right now, going into that hotel room. She later turns up dead in that room.

A source told CNN Van Der Sloot allegedly killed Flores because she discovered information on his laptop linking him to the disappearance of Natalee Holloway. Is the truth somewhere in Joran`s hard drive?

Straight out to "In Session" correspondent Jean Casarez. You have been inside this prison. Could Joran`s laptop finally blow this case wide open?

JEAN CASAREZ, CORRESPONDENT, TRUTV`S "IN SESSION": I think you never know, Jane, because he had it in custody when he was arrested in Chile. Peruvian police took it. They`ve had it since that time.

And I can confirm with you that that computer has been looked at by Peruvian authorities, but now we are able to confirm that, in a show of international cooperation, the FBI will be meeting with Peruvian police Monday afternoon at 2:30 so they can have access to the contents of the hard drive of that computer.

VELEZ-MITCHELL: This guy has lied so many times, told so many different stories about what happened that night he left Carlos and Charlie`s with Natalee Holloway and the Kalpoe brothers. Many different stories. So, A, how do we know that what is in the hard drive is the truth? And B, I wouldn`t put it past him to put another lie into that hard drive that would have a tendency to show him in a favorable light.

CASAREZ: Sure. No. 1, there`s an extortion case in the United States filed in Birmingham, Alabama, federal court. There were e-mail exchanges. So that, I am told, is one of the primary things that is the focus of getting the information off the hard drive. So those e-mails will be in the hands of the FBI.

But secondly, what if someone else, Jane, e-mailed him from Aruba saying, "Hey, man, there`s a lot of police in this area. Remember, that`s where you put Natalee Holloway`s body"? So maybe information from someone else could then be gotten by law enforcement here.

VELEZ-MITCHELL: I hope they get him. I`m praying, praying for Beth Holloway that we finally learn the truth.

As always, thank you, Jean Casarez, for staying on top of this story.

CASAREZ: You`re welcome.

VELEZ-MITCHELL: Up next, LiLo. You`ll like this.

(BEGIN VIDEO CLIP)

JUDGE KEITH SCHWARTZ, LOS ANGELES COUNTY SUPERIOR COURT: The only reason, Miss Lohan, you will appear in front of me again, you will ever see me again, is on that date. And the only reason you will be here is to plead guilty or "no contest" to the charge and accept the parameters of the court`s offer.

(END VIDEO CLIP)

VELEZ-MITCHELL: Whatever. She`s heard it all before. Lindsay Lohan, yes, she gets yet another chance. How is that possible?

This today was supposed to be the day LiLo had to accept or reject a plea deal on that stolen necklace charge. However, the judge gives her two more weeks to decide. Why? Why is justice always just around the corner for this woman? This is what makes our criminal justice system so morally bankrupt.

OK. That`s why I have a gavel, even though I`m not a judge. We`ve got to take back the justice stem from this complacency.

The worst part about this, I don`t think Lindsay cares. She knows she`s got the system by the you know what. She sauntered into court today almost ten minutes late, wearing a leather dress, no less. No sense of urgency here. She`s late as you`re looking at that video. OK. No, this is LiLo time, people. The rules do not apply, apparently, to this young woman.

And I had such high hopes. The last time Lindsay was in court the judge did read her the riot act. Let`s go back and listen to that.

(BEGIN VIDEO CLIP)

SCHWARTZ: I don`t care that you`re Lindsay Lohan versus John Doe, Jane Doe. That doesn`t affect me.

(END VIDEO CLIP)

VELEZ-MITCHELL: Well, maybe the cheekbone makeup did, because today the judge caved, big time. He gave her two more weeks from today to accept or reject the plea deal. She could have decided today. OK.

Even if she rejects this plea deal for good, she won`t go to jail, at least not right away. She`ll have yet another hearing in April, which, of course, we`re going to cover.

When the hell is it going to end? Are you as outraged as I am? Call me: 1-877-JVM-SAYS.

Straight out to Kareen Wynter, who has been at the courthouse all day long.

Thank you for hanging in there, Kareen.

You think a poor person, for example, represented by a public defender, charged with stealing a $2,500 necklace would have been given the extra 13 days to decide whether to plead? Heck no. OK. You were there on the courthouse red carpet. What did you see go down today, briefly?

KAREEN WYNTER, CNN CORRESPONDENT: Well, Jane, I have to agree with everything you said. There`s no doubt that she definitely dodged another bullet again today, not only arriving late. We were all on pins and needles.

And the big question this morning that was buzzing, would she accept this plea deal? Would she turn it down? And you see what happened at the end of the day: the judge giving her more time to decide.

Does she take this seriously? We really don`t know what`s going on in her mind. Right? Like the fact that she showed up late, she was smiling in court. It really is an indication that she is somewhat playing the system here.

But, you know what? Regardless of whether or not she dodged a bullet today, whether or not this is seen as unfair, the clock is definitely ticking.

VELEZ-MITCHELL: You see her face there?

WYNTER: Things are definitely going to happen. What was that, Jane?

VELEZ-MITCHELL: No, I`m saying, you see her face there in court? Here`s the balloon over her head: "Ba, ba, ba, ba, ba, whatever, whatever, whatever. Doesn`t matter. I do it my way. I never get any consequences, really."

WYNTER: Yes.

VELEZ-MITCHELL: "Go ahead. Proceed."

WYNTER: And I don`t know if you noticed this. I know that the reporters who were inside the courthouse definitely noticed this. They said her attorney, Shawn Holley, a different demeanor today. She seemed very annoyed with Lohan. Lohan was asking her questions periodically, and she just had this look on her face. And first of all, you have the nerve to show up late.

VELEZ-MITCHELL: Yes.

WYNTER: And second of all, I can`t believe I`m still dealing with this case. So we don`t know what`s going on behind closed doors, but, you know, that expression really says it all.

VELEZ-MITCHELL: Great work out there. My big issue tonight. They`ve all bleeped (ph). Judgment day postponed again and Lindsay didn`t seem the least bit bothered. Check it out.

(BEGIN VIDEO CLIP)

SCHWARTZ: Ms. Lohan, do you waive and give up your rights under what`s called the 60-day rule and agree to continue this from an actual preliminary hearing until the date of 4-22-2011 Department "E" as in Edward on the 8th floor at 9 a.m.? Is that acceptable to you, please?

LINDSAY LOHAN, ON TRIAL FOR THEFT: Yes, your honor.

(END VIDEO CLIP)

VELEZ-MITCHELL: Whatever. Now she rejects the plea deal the next hearing on March 25, then she`s going to have -- she`s going to go to trial. There would be a preliminary hearing on April 22 in front of another judge, and the stolen necklace case and Lindsay`s probation violation will be dealt with simultaneously.

Now, the next judge who could hear Lindsay`s case is Judge Stephanie Saunter -- Sautner. She is no pushover. She`s a former sex crimes detective in New York City. Lindsay could be in for a rude shock, because the judge, I believe, could rule she violated her probation on her 2007 DUI. And Debra Opri, couldn`t she throw Lindsay in the slammer for a probation violation, even as she awaits trial on the necklace theft case?

DEBRA OPRI, ATTORNEY: She could take her into custody immediately on the probation violation, but I need to set the record straight, Jane. First of all, Holley came into court and reminded the judge that he had set 9 a.m. for the hearing, so technically, she argued that Lindsay was not late.

VELEZ-MITCHELL: No, she was late. Excuse me. She was -- yes.

OPRI: No. That`s not what I`m hearing.

VELEZ-MITCHELL: Yes, she was still late. She got there after 9 a.m., seven minutes late. Seven mites late.

OPRI: The hearing -- the hearing was at 9. It wasn`t at 8:30.

VELEZ-MITCHELL: She got -- she arrived late, after 9 a.m.

OPRI: OK, Jane. I`m not going to argue. I`m just giving you my -- my viewpoint. The other argument is, if she were to take her into custody, and pending trial, I think that would be extreme in this instance.

Do I think Lindsay is going to cop a plea? I think if we`re all looking at that video, which was sold to the media for 40,000, I believe.

VELEZ-MITCHELL: Oh, yes.

OPRI: And now the jewelry store is trying to auction the necklace. If you look at that video it`s my understanding that the owner of that store was with her for a duration while she wore the necklace, and he escorted her to the door and said, "Bye-bye."

VELEZ-MITCHELL: Oh, my. You are a defense attorney all right.

OPRI: There is enough reasonable doubt here.

VELEZ-MITCHELL: I`ll tell you something. The next case (ph), you defend her.

All right. Up next we`re going to talk to somebody who was in the elevator with Shawn Chapman Holley after the hearing. You won`t believe the insights.

And if you thought Anna Nicole Smith was over, you might want to think again. I`m going to talk to the attorney for Howard K. Stern and his ex about the prosecutor`s push for a retrial of Howard. You don`t want to miss this.

And again, a lot more on Lindsay Lohan`s day in court. We`ve got callers lining up. We`re going to take them: 1-877-JVM-SAYS.

(BEGIN VIDEO CLIP)

SCHWARTZ: The defense attorney, Ms. Holley, has requested additional time to prepare in this matter. That was partially denied by the court.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

SCHWARTZ: If your attorney asked the court if you were to plead open to me what the sentence the court would give, I indicated to your attorney confidentially and the D.A. confidentially what that would be and the attorneys asked for one further date in this court, so there`s going to be an interim date set.

(END VIDEO CLIP)

VELEZ-MITCHELL: Even though Lindsay Lohan shows up late for court today the judge still gives her about two more weeks to decide if she wants to take the secret plea deal that`s on the table that TMZ says is about three months and other reports say is about six months in jail, which you know that always ends up being two weeks in jail.

I want to go to Melissa Lee, pop culture and crime commentator and my good buddy.

Melissa, you managed to get in the elevator with Shawn Chapman Holley leaving court. What did you observe?

MELISSA LEE, POP CULTURE AND CRIME COMMENTATOR: The very first thing she wanted to know was she asked about the dress. She said, "I didn`t see the dress. I didn`t really pay attention to the dress. How was the dress?"

And we were like, my immediate response was, "Too short."

And the woman standing next to me said it was latex and so she said, "Oh, OK." So anybody who ever wondered if she had any input into Lindsay` wardrobe choices before court, the answer to that would be no.

VELEZ-MITCHELL: And I want to jump in one thing. It was made of leather. OK? Not latex.

LEE: We could not really tell.

VELEZ-MITCHELL: Right, right. Right. But continue on.

LEE: It was very short.

VELEZ-MITCHELL: Continue on about the whole strategy that you detected.

LEE: Well, we were in there, and someone asked her about, you know, what do you think about the selling of the tapes? And as you know, Shawn was a part of the O.J. defense with Johnnie Cochran, and I spoke up and said, you know, "I think that it`s probably going to have some effect if the woman who supposedly saw O.J. driving, sold your story to "The Enquirer." They didn`t use it, probably didn`t.

Shawn appeared to agree with that, and she said I would think that it -- I would -- her comment was something to the effect that it speaks poorly of them. And it was very clear that she meant the store, not the prosecutor, if they did, indeed, sell the tape. So...

VELEZ-MITCHELL: Let me stop you for a second. This is the strategy. OK? So we think Lindsay is going to reject the plea deal that could have involve three to six months behind bars in a county jail, which of course, means a couple of hours by the time they cite overcrowding, and she`s going to go to trial, and she`s going to use the strategy that O.J. Simpson and Johnnie Cochran successfully used in attacking those who sold their story.

The store in question reportedly sold the tape, the surveillance tape of Lindsay putting on the necklace and allegedly walking out with it, and it ended up on various TV shows, and so what you`re saying, Melissa Lee, is that they are going to attack the store for selling the tape and saying they basically arranged all this, and implying they arranged all this to get this publicity or to make the sale, which of course, we have no proof of. This store says it`s just the victim of a theft.

I want to go out to Preston in New York. Your question or thought, sir? Preston.

CALLER: Yes.

VELEZ-MITCHELL: Yes. Your question or thought, Preston?

CALLER: OK. I love Lindsay, and I think no deal. I think everyone is so hard on her. Like, six months, three months. That`s ludicrous.

I work in the industry. These people, all they want is press, money, and that`s what they`re getting right now. Leave Lindsay alone. Like I think she should take a bargain. I think she`s going to get away. And I loved the dress she had on today.

VELEZ-MITCHELL: Well, I didn`t like the dress, and I hope you don`t end up on YouTube doing one of these "leave Lindsay alone" videos.

Debra Opri, we see a strategy emerging.

OPRI: Yes.

VELEZ-MITCHELL: Shawn Chapman Holley and using her mentor`s play card is going to attack the store for selling the video, the surveillance video.

OPRI: That`s a minor issue. The big issue is, and I`ve told you this from day one, it`s what do you see on the video? If that owner was with her, the primary point of time she was in there and when she left, and that owner let her walk out of there with the necklace on her neck, the reasonable doubt is "wasn`t there some understanding that you had loaned her the necklace?"

VELEZ-MITCHELL: Are you kidding me?

OPRI: No. I`m not kidding you.

VELEZ-MITCHELL: If I go into Neiman Marcus or any store, and I put something on my neck and walk out I have an assumption?

OPRI: Jane -- Jane...

VELEZ-MITCHELL: Remember Winona Ryder? Remember Winona Ryder?

OPRI: Come on, Jane. A picture is worth a thousand words.

VELEZ-MITCHELL: No.

OPRI: A picture is worth a thousand words.

VELEZ-MITCHELL: She`s a celebrity. Of course they`re not going to want to be rude.

OPRI: You want her to take the plea. I want her to fight. I really do.

VELEZ-MITCHELL: Let me tell you something.

OPRI: I want her to fight.

VELEZ-MITCHELL: If she goes to trial let me tell you what could happen. The tough judge would say, "You violated probation. You`re going to go in the clink pending trial."

OPRI: Correct. That`s correct.

VELEZ-MITCHELL: Then she goes to trial, and she`s convicted and she goes to state prison for up to three years.

OPRI: That`s correct. That`s correct.

VELEZ-MITCHELL: You`re saying she should take that gamble?

OPRI: You know what I would suggest if she is adamant that she doesn`t want to take the plea? I would tell her hire a jury consultant and panel 13 jurors and find out what they think of that videotape.

VELEZ-MITCHELL: Find 13 jurors who love her. I know. We`ve seen it all before.

OPRI: Oh, come on...

(CROSSTALK)

VELEZ-MITCHELL: Thank you, fantastic panel.

Charlie Sheen declares war. We`ll have his craziness, next.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: That looks blue.

ANNA NICOLE SMITH, MODEL/ACTRESS: It is blue.

UNIDENTIFIED MALE: No. (EXPLETIVE DELETED)

(END VIDEO CLIP)

VELEZ-MITCHELL: Tonight a stunning development. And I mean stunning in the Anna Nicole Smith saga.

Even four years after her death, is Anna Nicole boyfriend/attorney Howard K. Stern back in legal hot water? I`m not talking about tub water. It sure looks that way.

Prosecutors in L.A. appealing the judge`s jaw-dropping ruling in the conspiracy case against Stern last fall. Stern was convicted on two counts of conspiracy to provide prescription drugs to Anna Nicole.

The coroner found a slew of prescription drugs in her system. He ruled that she died of an accidental overdose of sedatives. And this past January, the judge threw out the two convictions against Howard. He said prosecutors didn`t prove that Howard K. Stern intended to break the law when he used fake names to score the meds and said the evidence was, quote, "lacking and insufficient."

Joining me now in an ISSUES primetime exclusive, Howard K. Stern`s attorney, Steve Sadow.

Thank you for joining us, sir.

STEVE SADOW, HOWARD K. STERN`S ATTORNEY: Good evening.

VELEZ-MITCHELL: What`s your reaction to the prosecutors trying to get this conviction of your client, Howard K. Stern, back?

SADOW: Well, it`s not unexpected. It`s not surprising. It`s a waste of time, resources, and energy. Jury cutting loose on 9 of 11 and the judge cutting loose on the other two, found insufficient evidence. We thought the case should be over with, but the state of California has decided to waste more money and consider this an ongoing matter instead of letting it die.

VELEZ-MITCHELL: Well, at the time of Anna`s death, she did have a cocktail of nine prescription drugs in her system. Let`s check this out very briefly.

(BEGIN VIDEO CLIP)

HOWARD K. STERN, SMITH`S FORMER BOYFRIEND: Anna, Anna, Anna. Anna, look at me. Riley thinks you`ve absolutely lost your mind.

SMITH: H?

STERN: Riley thinks you`ve lost your mind.

SMITH: I didn`t lose my mind.

RILEY: She thinks you have.

(END VIDEO CLIP)

VELEZ-MITCHELL: Well, you can hear Howard`s voice on that disturbing video, where Anna appears to mistake a doll for her unborn baby. It was played at the preliminary hearing in Howard`s case.

Now, he said she was just acting for the camera. Look, at the end of the day, doesn`t all of this boil down, Steve, to the fact that Anna Nicole Smith was an adult, and nobody forced drugs down her throat?

SADOW: It does. It definitely does. We were in the courtroom for three month with 12 citizens out of California who made a decision that Howard was not involved in getting prescription medication to Anna outside the bounds of the law. That`s what we went to trial for. The jury found that. They were convicting on two, having to do with Howard`s use of the name, and the judge decided there wasn`t enough evidence.

I mean, this matter has been tried in court. It should be dead now. The state of California has got to have better things to do than continue to go after Howard. They know the only reason they`re appealing this is to try to take his law license.

A co-defendant was sentenced to summary probation. One hundred dollar fine. That was it. On a misdemeanor. So the worst that could ever happen to Howard is that kind of sentence, but the state of California is going to spend another two, three, $400,000 to pursue this. Why, I have no idea.

VELEZ-MITCHELL: I agree with you. There`s murderers and rapists out there. They should catch them first. And being a recovering addict myself, it`s really up to the addict to say no to drugs.

Thank you for joining me, Steve.

SADOW: Thanks for having me.

VELEZ-MITCHELL: Keep us posted.

Startling new developments in the heartbreaking Hollywood death of Mike Starr, a voice mail we`re going to play for you, next.

(COMMERCIAL BREAK)

JANE VELEZ-MITCHELL, HLN HOST: Life with Charlie Sheen. I`ll talk to his ex in a primetime live exclusive. The troubled actor has just sued the TV suits at his former hit show ""Two and a Half Men"" for $100 million bucks. Meantime, Charlie wants an intern. You will not believe how many people have applied even as Charlie admits his life is falling apart.

(BEGIN VIDEO CLIP)

JENNIFER GIMENEZ, "SOBER HOUSE": Get out.

MIKE STARR, MEMBER, ALICE IN CHAINS: You`re kicking me out.

GIMENEZ: I`m (EXPLETIVE DELETED), get out. I`m kicking you out. Go.

STARR: You`re kicking me out.

GIMENEZ: Get out. Get out Mike.

STARR: You have somebody kick me out.

GIMENEZ: No, I`m the someone that`s kicking you out. The (EXPLETIVE DELETED) out. It`s over. Yes, it is.

STARR: Sure it is.

GIMENEZ: Yes. It is.

(END VIDEO CLIP)

VELEZ-MITCHELL: But first, another horrifying chapter in the tragic death of Alice in Chains rocker Mike Starr. Starr was found dead in his Salt Lake City home on Tuesday; just 44 years old. Mike`s roommate told TMZ that Mike who battled addiction publicly on VH-1`s "Celebrity Rehab" and "Sober House" was, quote, "mixing methadone and anti-anxiety meds before he died".

Now more evidence surfaced that Starr was desperate for drugs shortly before his death. TMZ reporting Mike left a chilling voice mail message looking to score drugs the very night before he died.

Listen to this.

(BEGIN AUDIO CLIP)

STARR: Hey, what`s up? It`s Mike Starr. Alice in Chains. Hey, give me a call right away. I got something really important to tell you. You`re gone make some good money on this. And also I want to see if you can score me an eighth, quarter ounce of bud or whatever. You know, a killer price.

I need it so bad.

All right. Call me. Later.

(END VIDEO CLIP)

VELEZ-MITCHELL: Wow. That is sad. There is still no official cause of death but that tape obviously shows that he was deep in his addiction. I`m joined now Jennifer Gimenez, former house manager on VH-1`s "Sober House", former cocaine user.

You interacted extensively with Mike on the show. Jennifer, that desperate voice mail -- wow, talking about buds -- how powerful a demonstration is this that addiction will do you in?

GIMENEZ: This is extremely powerful. You know, hearing this tape right now and knowing the Mike Starr that was sober and also the Mike Starr that was loaded that was definitely Mike Starr the addict suffering deeply and wanting, going to any lengths for more drugs.

You know, it`s just -- it`s so tragic to see how much pain one who is suffering in their addiction goes to any lengths for it. They will do anything. I know firsthand. You know?

And it`s terrifying to hear his voice so haunted and so sick.

VELEZ-MITCHELL: Yes.

It scares all of us who are in recovery because, there but for the grace of God, all we get is a daily reprieve. Mike Starr who appeared on Dr. Drew`s "Celebrity Rehab" in 2009 was arrested last month in Utah for allegedly having Xanax and pain meds on him.

Dr. Drew`s reaction tonight, quote, "Mike Starr`s addiction is so profound that I have always -- I have to be prepared to expect anything," end quote. I want to emphasize this. Nobody else is responsible for anyone`s recovery. You can try to help someone, you can do an intervention, you can help them in rehab, but ultimately it`s the individual, themselves, who is responsible. The only person on earth who can decide whether or not to stay sober is that person, themselves. You can`t do it for them.

And I know that Dr. Drew tried. I know you tried. And it`s a tragic ending.

Rob Shuter, Popeater`s Naughty but Nice columnist, how is the Hollywood world, the show business world, the rock world reacting to this death and this new audio recording?

ROB SHUTER, COLUMNIST, POPEATER`S NAUGHTY BUT NICE: They knew for a long time that Mike was in trouble. There`s no doubt about this. Anybody that is aware of what`s going on in Hollywood knew how desperate his situation was.

He tried to get help. He didn`t succeed. This is a guy, too, that has not only been struggling with drugs. He`s also been struggling with the fact that he is no longer a fame or center of attention type person.

Even on that voice message he leaves the name of the band that he used to be in. He sort of peaked way too early in life and never, ever got over that.

VELEZ-MITCHELL: All right. Well our hearts go out to his family and our condolences to them. It is a lesson for us all.

All right.

(BEGIN VIDEO CLIP)

CHARLIE SHEEN, ACTOR: I don`t want to be the side show but I`m going to keep shaking the trees until I get the answers that I need, absolutely. I`m not going to stop until I think what needs to be delivered is delivered which is taking care of the crew for all eight, my cast, and myself.

(END VIDEO CLIP)

VELEZ-MITCHELL: Oh, he`s shaking those trees all right; Charlie Sheen going after his former bosses who fired him. This time he is aiming right for their bank accounts.

Sheen -- I`ve got the lawsuit right here in my hands, boy, it`s a thick one -- is demanding $100 million bucks for himself and his other unemployed colleagues from "Two and a Half Men". He is suing the show`s creator Chuck Lorre and Warner Brothers who he calls corporate trolls.

Now, full disclosure here, Warner Brothers and HLN are both owned by Time Warner.

Let me tell you this is not your average lawsuit. It completely vilifies Sheen`s ex-employers for pulling the plug on that show. The suit opens with some rather colorful passages.

"Chuck Lorre believes himself so wealthy and powerful that he could unilaterally decide to take money from the cast and crew in order to serve his own ego and self-interest." Ouch.

The lawsuit states Sheen is suing on behalf of the entire cast and crew. I wonder if all those folks know that he`s doing it on their behalf and I wonder if they`ve signed on. Ok?

For weeks Charlie has been all over TV and the web insisting that he`s busy, busy, busy. A busy bee winning and that we`re all just jealous of him. But now he is finally getting candid about his very scary state of mind. In fact, he told "Life and Style" magazine quote, "I am really starting to lose my mind."

You think, Charlie?

He also said, quote, "My lawyer wants to come over to my house and take the bullets out of my gun." Wow. That is scary. That is probably the scariest thing that I`ve read about this whole story since it started because we know that addiction is an absolutely crippling thing.

If I were his lawyer I would take those bullets out and let`s hope he doesn`t have a gun.

Listen to this.

(BEGIN VIDEO CLIP)

SHEEN: Now that I have your lazy (EXPLETIVE DELETED) attention, world, sit back and rejoice. For the Malibu messiah, the Condor of calabasas (ph), the (EXPLETIVE DELETED) warlock of your jealous face sits before you, undigested hummus trading real estate for this fire dance.

(END VIDEO CLIP)

VELEZ-MITCHELL: He does have way with words. Dare I ask, what is Sheen`s next move? Will the $100 million lawsuit go anywhere? And is Sheen managing to stay clean? I have my doubts personally.

Straight out to Rob Shuter, Popeater`s Naughty but Nice columnist; Rob, you have got some new information about Sheen`s money problems. Tell us.

SHUTER: Yes. It`s fascinating. Friends are telling me, friends of Charlie are telling me that he is cash strapped. He is cash poor in fact. He has several homes that he owns that are worth many millions of dollars but when it comes to hard, cold cash in the bank, he doesn`t have any, which is shocking for a man that earned $2 million an episode.

VELEZ-MITCHELL: Yes. And I have to tell you, we just got this response in from the attorney for Chuck Lorre responding to Charlie`s lawsuit. Quote, "The allegations in the complaint against Mr. Lorre are as recklessly false and unwarranted as Mr. Sheen`s rantings in the media. These accusations are simply imaginary. This lawsuit is about a fantasy lottery heyday for Charlie Sheen. Chuck Lorre`s concern has been and continues to be about Mr. Sheen`s health."

Is it a fantasy lottery payday do you think, Rob?

SHUTER: Definitely. Charlie is looking for money. He`s looking for cash. In fact, Charlie told a reporter friend of mine just two days ago that he was going to stop talking because now he wants to be paid for interviews. And the price he is looking at? A million dollars for his next big sit down interview which is way too late because he`s already done them all for free. So, he really --

(CROSSTALK)

VELEZ-MITCHELL: Listen, he could get money. There are places out there that are willing to pay. I mean, the fact is, it`s kind of scary, but he got 70,000 people signing up to try to be his intern when he announced that he wanted interns. I think he got one million and then somebody told me two million Twitter followers.

SHUTER: Yes. Over that.

VELEZ-MITCHELL: Yes. Over 2 million twitter followers.

Jennifer Gimenez, this is what`s really scary about this. I see Charlie Sheen as educational, to show people what the addict mind is really like, because most addicts can`t afford to let it all hang out. They`ve got to hide it or they`ll lose the job that they need to pay their mortgage.

Sheen apparently is living in a bubble where he just doesn`t really care about the fall out in the traditional sense. But some people are actually just using this for entertainment. In other words, they`re not really laughing with Charlie. They`re laughing at Charlie.

GIMENEZ: Yes. They are. You know, that`s just extremely sad because we`re watching this guy who is extremely sick. Regardless if he`s on drugs right now or not, he was on drugs. And a lot of people who take -- get off of drugs and don`t get any medical help, there is obviously some mental disorder going on, you know. He`s also suffering from a mental issue and a mental illness.

VELEZ-MITCHELL: Very quickly, Rob Shuter, ten seconds, I do think he has a point in the sense that Chuck Lorre stuck with him during -- this goes back to the `90s. He first went into rehab in the `90s. He was accused of assaulting or attacking his wife two Christmases ago right when he was re-signing and he did re-sign so why suddenly all the uproar now?

SHUTER: Well, I think it`s several things. I think he really over- stepped the mark. He made the network so frightened that something terrible is going to happen that they had to jump in and put an end to this and they did.

VELEZ-MITCHELL: All right.

SHUTER: They can cancel the show for any reason so I don`t think this is going to work.

VELEZ-MITCHELL: Up next this incredible primetime live exclusive. She is revealing the secrets of what life with Charlie was like. She had a relationship with Charlie, and she`s actually got some poems and other things that he gave her that she`s going to show us and read us on air next.

This is a woman who had a relationship with Charlie and she is talking about it and I would like you to give me a call on all this. 1-877-JVM- SAYS.

(BEGIN VIDEO CLIP)

PIERS MORGAN, CNN HOST, "PIERS MORGAN TONIGHT": The premise of their argument with you is that you`re in some kind of denial about this and actually you`ve never really stopped and thought I`ve got to sort myself out properly.

SHEEN: And then I can have a life like theirs? I`m going to pass.

MORGAN: Really? Why?

SHEEN: Why? Because I`m a winner and their lives look like they`re - -

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

SHEEN: They`ve run the gamut from like ok. He is not loaded. Now what? Oh, he`s manic. I don`t even know what that means. I guess it implied there is going to be a crash. I don`t know when that`s coming but maybe you could cover it when it does, you know.

(END VIDEO CLIP)

VELEZ-MITCHELL: Tonight a first-hand account of life with Charlie Sheen. His ex, Ginger Lynn, joins me tonight to dish on her two plus years with the scandalous sitcom star. Ginger and Charlie were together in the early 1990s as his Hollywood career took off and she is probably the most famous of Sheen`s adult film star ex-girlfriends. Yes, she was an adult film star.

Ginger says she knows a side of Charlie the rest of us don`t get to see. So I`m very curious. What was life like with this raucous actor during his heyday?

Tonight, in an ISSUES exclusive, I am very thrilled to welcome the one and only Ginger Lynn to the show. Thanks for coming on. I understand you`ve got some Charlie mementos from back in the day.

Tell us what you`re auctioning off and I`m particularly interested in this book that is a catalogue of all drug use. Show us that and tell us about that.

GINGER LYNN, ACTRESS AND RADIO HOST: Well, what this is, Charlie has always had an incredible sense of humor. He is a very articulate, passionate type of person. And I was going through rehab at the time.

As a gift, as a joke, as a lift me up, make a little bit light of a very serious situation, Charlie gave me this book --

VELEZ-MITCHELL: Hold it up.

LYNN: delivered it to me during my rehab days. It`s "The Complete Drug Reference Book".

VELEZ-MITCHELL: Oh, wow.

LYNN: You know, but --

VELEZ-MITCHELL: What did he inscribe inside it?

LYNN: What he says inside is, "To Ginge, from one druggy to another, love C".

(CROSSTALK)

VELEZ-MITCHELL: Wow. Let me just ask you this.

LYNN: Yes.

VELEZ-MITCHELL: Can I ask you this question. So you`re talking about -- you`re sober now? Is that fair to say?

LYNN: I`m not. I`m still in the program, not working my program, still have a sponsor, still deal -- all of my friends are in the program but I`m not actively sober, no.

VELEZ-MITCHELL: When you were with Charlie, what was your life like? Were you drinking heavily and drugging together? Was that part of it?

LYNN: You know, Charlie and I met on the set of "Young Guns 2" and for the first six months we were definitely having a good time, a lot of parties, a lot of getting out there, doing different things. Nothing extravagant, nothing excessive, but it got to the point where we -- he needed some help.

His family did an intervention. We decided together to get sober. I had already been through rehab once at the time. So I stood beside him, was there with him. And we stayed sober together for over a year.

VELEZ-MITCHELL: And then what happened?

LYNN: We both -- Charlie went out and then I went out not long after that.

VELEZ-MITCHELL: Yes. When Charlie went out what was it like? Was it like this?

LYNN: No. I`m trying not to watch Charlie, not to follow him during -- throughout this, what is going on right now. You know, it was the late `80s, early `90s. It didn`t seem at the time or to me excessive or out of control.

When he did go back out it was -- I think, you know, when you`re going through sobriety, when you`re trying very hard to stay sober it`s all new, a whole different lifestyle. You`re exposing yourself. You`re vulnerable. You`re honest. There are a lot of changes and a lot of -- you`re so vulnerable.

And when he went back out things --

(CROSSTALK)

VELEZ-MITCHELL: Can I ask you this question? People have talked about Charlie`s violent side. I mean, he`s had this situation with his ex- wife, Brooke a couple of Christmases ago where he ended up pleading guilty to simple assault. Did you ever see a violent side to Charlie when he was drinking or using?

LYNN: I never saw a violent side, never. Charlie never raised his voice to me. There was never any violence whatsoever. This is all new to me. I`ve never seen that side of him.

VELEZ-MITCHELL: Now, you are an adult film star. What is his obsession with adult film stars?

(CROSSTALK)

VELEZ-MITCHELL: Thank you for clarifying that. What is his obsession with being with women who are adult film stars?

LYNN: You know, I think that Charlie has so much passion, so much energy, so much zest for life that the women who do adult films, women like me -- we`re free, we`re free spirited, we`re outgoing, we`re full of life and joy and have fun and there`s something where we`ve allowed ourselves to do things that most people only think about doing. And Charlie has a side of him that I know or that I knew that is attracted to that energy.

VELEZ-MITCHELL: Dangerous side. That dark side. All right. Hang in.

LYNN: I don`t know if it is --

VELEZ-MITCHELL: You`re going to come back and say more next. I`m fascinated.

By the way, I`m in recovery too. It`s not just Charlie Sheen. If you`re grappling with an addiction or know someone who is check out my new book "Addict Nation" available on amazon.com right now. It`s all about this stuff, all of it.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

SHEEN: They`ve run the gamut from like, ok, he`s not loaded. Now what? Oh, he`s manic. I don`t even know what that means. That I guess would imply that there`s going to be a crash. I don`t know when that`s coming but maybe you could cover it when it does.

(END VIDEO CLIP)

VELEZ-MITCHELL: Yes, Charlie, sadly, we will cover it when it happens, if it happens. And I hope it doesn`t happen. But you`ve got to get some help.

Charlie Sheen has been the punch line of countless jokes over the last few weeks. Will he laugh his way all the way to the bank? He`s suing Warner Brothers and the Creators of "Two and a Half Men" for $100 million.

But we have tonight, a fabulous ISSUES exclusive. We are here with Ginger Lynn, who is a former adult film star and radio host, who had a relationship with Charlie, what, a decade and a half ago approximately? And you have some letters, and other things, poetry, I understand, or things of that nature that you`re going to auction off.

Where are you going to auction them off and can you read something of an intimate nature that was written to you?

LYNN: What I have is Charlie was always giving me poems and letters and cards and notes and gifts, always sharing the way he felt about everything. I have many of his letters, poems, gifts that I will be auctioning off, that are being auctioned off at GingerLynnAuctions.com. It`s an adult auction site that I began back in last October. It came to me a few weeks ago that I had all these fabulous things that Charlie`s fans would like to have.

And also, so many things -- everything Charlie`s doing right now is in the news. I try to avoid it. But there`s a wonderful, wonderful, sweet man inside that I don`t think has really been exposed, or a lot of people know about. So --

VELEZ-MITCHELL: I`ve got to ask you to read something very quickly.

LYNN: Sure.

VELEZ-MITCHELL: You`re going to read something, read something.

LYNN: Absolutely. I`m going to.

All right. This is the letter that Charlie wrote to me from rehab. It`s dated 8-8-1990, 1:15 a.m. It says -- you know what, I have to apologize. I don`t have my glasses.

VELEZ-MITCHELL: Well, hold it up to your face. That`s what I do when I forget my contacts. Right up to your face.

LYNN: I`m trying.

VELEZ-MITCHELL: Right up to your face.

LYNN: There are a couple things that I think can make out. Charlie`s in rehab. And he says something to the effect, "I`m writing to you from my penthouse suite at the Hotel (INAUDIBLE). The view from here is incredible. I can see the Eiffel Tower, Mount Rushmore, Niagara Falls, (INAUDIBLE), River Front Stadium, Reds Home Plate, the Nile, (INAUDIBLE) and Oprah Winfrey`s cleft palate and (INAUDIBLE) as well -- which happens to be my favorite sight of all.

And he goes on to just talk about how supportive he is, or how supportive I am, and he`s happy that I`m there. And that as many things that he`s been doing that were difficult, he couldn`t go through this alone.

We all fall down, we all have difficult times. And I don`t know if this is difficult for Charlie or not. But I think it`s important that he know that there are a lot of people that are still supporting him. We`re not all laughing.

We`re not -- I want Charlie to rise back up. He`s a wonderful man, a wonderful actor, a good person.

VELEZ-MITCHELL: Do you think the way is to auction off memorabilia at this time of crisis?

LYNN: I see this as a way to share the good side of Charlie. These things were important to me, meant something to me a long time ago. His fans, who haven`t seen this side of him -- I`m not doing this. It`s not for monetary gain. I run a business. It`s a way to get people to go to my site, support the adult female performers who are selling their things, and it helps Charlie`s fans to see another side of him when the media is just being constantly negative.

VELEZ-MITCHELL: Well, Ginger Lynn, thank you for joining us. We`ll say that he reveals a way with words. And if he were sober, he might actually be a great writer. But let`s hope he does get sober. We pray. We pray.

LYNN: I wish him all the --

(COMMERCIAL BREAK)

VELEZ-MITCHELL: First Lindsay Lohan experiences the benefit of our two-tiered justice system and now it looks like Mel Gibson might enter a painless plea deal tomorrow.

Reports of domestic abuse surfaced when explosive audio tapes allegedly between Mel and his ex Oksana were leaked to RadarOnline. You remember this.

(BEGIN AUDIO CLIP)

UNIDENTIFIED MALE: How dare you. How (EXPLETIVE DELETED) dare you. You wanted the number of my therapist. Don`t you ever speak to him. Find your own (EXPLETIVE DELETED) therapist. Because you got problems more than me.

(END AUDIO CLIP)

VELEZ-MITCHELL: Yes, well fire that therapist. Now the actor is expected to plead guilty or no contest to misdemeanor domestic violence but there`s a catch. He`ll get zero jail time.

Typical.

Be sure to tune in tomorrow on ISSUES to find out what happens.

Nancy Grace up next.

END