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Nancy Grace

Search for 13-Year-Old Florida Girl Under Way; Michael Jackson Trial Continues

Aired April 14, 2005 - 20:00   ET

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

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


NANCY GRACE, HOST: Tonight, one Alabama girl has been found, but another girl, a 13-year-old from Florida, still missing. A massive search is underway tonight. We need your help.
And in the Michael Jackson child sex trial, the boy`s mother on the stand under oath says she began to fear Jackson and what he would do to her family if they took her son away. The two regularly shared a bed.

And a fifth arrest made in the California missing couple case. We take you live to California for the latest.

Good evening, everybody. I`m Nancy Grace. And I want to thank you for being with us tonight. Today, Michael Jackson squares off with his alleged molestation victim`s mother again.

And an arrest in the case of the California couple missing since November. Remember, they had shown their boat to a would-be buyer and disappeared into thin air. Police believe they were murdered and buried at sea in the cold waters of the Pacific Ocean.

But first, a little 13-year-old girl, Sarah Michelle Lunde, missing tonight. We want your help. Police are questioning her mother`s ex- boyfriend. He`s an unregistered sex offender.

Sarah was just home that night from a church function. She had played volleyball, she had sang church songs, and had youth fellowship.

With us in Omaha, victims` advocate, Marc Klaas. His daughter, Polly, I know you remember, was kidnapped and murdered. He`s a tireless victims` rights advocate. In Tampa, defense attorney Joe Episcopo; in New York, defense lawyer Robert Gottleib and psychologist Anne Renee Testa; and with us now, Susan Candiotti in Ruskin, Florida.

Susan, deja vu. You and I were just talking about a similar case, and now this. Bring me up-to-date, friend.

SUSAN CANDIOTTI, CNN CORRESPONDENT: Well, the police are searching frantically for any sign of Sarah Lunde, 13 years old. So far as we know, they have no new clues as to her disappearance. Remember, she was on that church outing as you indicated over the weekend. And she was not reported missing until Monday, reported missing by her mother when her daughter did not show up for school.

Now, reportedly, the mother has said that she thought that her daughter was with some friends, and that`s why she wasn`t home on Sunday night. In any case, an army of volunteers are assisting police. They`ve been searching an area about three-to-five miles, a grid that stretches out from her home.

Now, this little girl did come from a broken home. And she has run away before. However, she has always come home in the past. She even stayed with a minister`s family once.

And all of her friends, those her know her, her family say it`s totally out of character, in their opinion, for her to be away this long and not have checked in with someone. Of course, as you said, someone that authorities are very interested in is this David Onstott person who is currently being held without bond on an outstanding warrant on a DUI charge out of Michigan. So he`s not going anywhere for now. They`re stopping short of publicly calling him a person of interest.

GRACE: You know, what`s amazing to me, Susan Candiotti, two questions. Number one, when she had run away before, she had only been gone for a couple of hours, right?

CANDIOTTI: Not very long. It was slightly longer than that when she actually stayed at the minister`s house for a time, according to them, until things sort of calmed down, and then she went back home again.

GRACE: So this is a complete departure from her behavior. This is what I don`t understand, Susan Candiotti, that her mother thought she was with friends? The mother didn`t know where she was?

CANDIOTTI: Reportedly, that`s what we`re hearing, Nancy. And unfortunately, the mother is not taking questions of any kind. She has appeared before cameras on a few occasions asking for help, but declines to answer any questions about the circumstances surrounding her daughter`s disappearance.

GRACE: Let me ask my producer.

Elizabeth, please keep rolling that video and putting Sarah Lunde`s picture up, OK?

Back to Susan Candiotti. Another thing. Look how cute, with a little headband, 13, 5`3", 176 pounds, hair, brown, eyes, hazel, missing out of Florida.

Susan Candiotti, here`s another question that I`ve been thinking about all day long. The older brother, what he was, 15, 17? He realizes, he comes home Saturday night, sees her there in the home. On Sunday morning, he realizes she`s gone. And they don`t report her missing until Monday?

CANDIOTTI: It`s certainly hard to explain, and maybe not the way that a lot of us would have reacted. We don`t know why the brother didn`t say anything to anyone, or at that point apparently, and why the mother waited until Monday to report her missing, other than what we`ve been told that she apparently -- or they thought that she was with friends.

As I said, Nancy, you might have handled it differently. I might have handled it differently. But for now, we`re at a loss.

GRACE: Well, you`re darn right, I would handle it differently, Susan Candiotti. But fussing at the mother is not going to help any thing now.

Susan Candiotti is with us there in Florida. Very quickly to victims` rights advocate Marc Klaas.

Marc, what`s disturbing me so much is that you and I both know that the hours immediately following the disappearance are crucial. Why?

MARC KLAAS, VICTIMS` RIGHTS ADVOCATE: Well, because a kidnapper can disappear with a child at the rate of one mile a minute. Therefore, if you don`t create some sort kind of a barrier around that, create the umbrella around that within the first few hours, that kidnapper could be virtually anywhere with that child.

But just as in the Lunsford situation, I think we`re going to find this one is very, very close to home.

GRACE: Well, another thing about the hours, the minutes as they pass, we all know that when people are kidnapped, within the first 72 hours, if they can make it that far, that is when they are murdered, OK? So these first couple of days are the single most important times. And they lost a whole day by not reporting her missing.

KLAAS: Yes. Nancy, 74 percent of children that are murdered as a result of this kind of abduction are dead within the first three hours. There is absolutely no time to lose.

And I would counsel that mother, irregardless of how dysfunctional she might be, to get in front of the cameras time, after time, after time, and answer those questions that people are asking and plea for her daughter`s safe return.

She wasn`t there when she needed her. She should be there for her right now.

GRACE: That is a darn good question.

Susan Candiotti, has the mom made any public pleas for her daughter`s welfare?

CANDIOTTI: Oh, yes, she has. She has repeatedly appeared before cameras very briefly to ask for any help in helping find her daughter, for volunteers to come out, for tipsters to please call the sheriff`s department. She has done so repeatedly.

And we have seen her on a daily basis here at the church that her daughter attended in the youth ministry. And she has been spending time with the volunteers and with the police, and appears to be cooperating with them fully.

GRACE: Well, I`m glad to hear it. And as a matter of fact, Susan Candiotti is correct. Take a listen to this.

(BEGIN VIDEO CLIP)

KELLY MAY, MOTHER OF MISSING GIRL: All we all want to do is bring Sarah home safely. And that`s everybody`s goal. And the sheriff`s department has done a great job. All we can do is keep hoping and praying that that`s how the outcome comes. But I do want to thank everybody that`s been here and the support that I`ve received.

(END VIDEO CLIP)

GRACE: That is Kelly May, the missing girl`s mother. If you`re just joining us, a missing girl, 13-years-old out of Florida. We need your help.

Elizabeth is running the photo repeatedly. Take a look at this little girl, 13-years-old, Sarah Lunde.

Back to Susan Candiotti. Tell me about this ex-boyfriend with a sex offender history, not registered.

CANDIOTTI: And that is why -- in fact, after this happened, they found out about it, because there are 24 registered sex offenders in this little town of Ruskin, population just over 8,000. And as soon as this happened, police went right to work, of course, checking on their status.

They said that they immediately were able to locate in short time 23 of the 24. And the one that they didn`t locate had already left the state, they found out, so he`s in trouble, too. But he had left before Sarah was reported missing.

Now, in terms of Onstott, there is a bit of flurry of activity tonight because a piece of paper has surfaced written by a probation officer with the state of Florida. And it reflects his notes of a conversation with the head of the Florida Department of Law Enforcement Sex Crimes Unit.

In the notes, this probation officer says that the head of the unit refers to Onstott as a suspect in this case. I just confirmed that with a member of the Florida Department of Law Enforcement. However, they stress that no one from the Hillsborough County Sheriff`s Department or the Florida Department of Law Enforcement is officially calling this man a person of interest.

However, the sheriff has said, time and again, look, it`s obvious we`re very interested in this man because of his past relationship with Sarah Lunde`s mother. They`re looking at him very, very closely.

GRACE: As you can see, on the scene, CNN correspondent Susan Candiotti bringing us the latest.

Quick break. We`ll bring the panel in to join Susan and Marc Klaas.

But as we go to break, I want to remind you this is National Crime Victims Week. It was two years ago today that the remains of Laci Peterson washed ashore at Point Isabel in the San Francisco Bay.

Laci was murdered along with her unborn baby boy, Conner. They were dumped into the icy waters of the bay by her husband, Scott Peterson. Peterson now on San Quentin`s death row with a view of the same bay where he buried his family.

Laci`s death highlights the horrific statistic that the number-one cause of death amongst pregnant women in this country, homicide. Laci and Conner at peace.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

DAVID GEE, SHERIFF, HILLSBOROUGH COUNTY: The last time where she was really gone for any period of time was when she was in foster care at the age of 9. Since then, she would have apparently periods of maybe temper tantrums where she would leave for a few hours.

We`re relying on the family and on the pastor, the local pastor who she was very close to. And he has characterized this as just completely out of the ordinary and feels that she would not have done this for this period of time, and would of come forward by now.

(END VIDEO CLIP)

GRACE: That`s the sheriff from Hillsborough County.

If you`re just joining tonight, a 13-year-old girl missing out of Florida. And what a cutie.

Elizabeth, could you show her? This is Sarah Lunde. She`s been actually missing, we believe now, since either Saturday night or Sunday morning, not reported missing by her family until Monday, losing valuable, valuable lead time!

Another disturbing thing, according to Susan Candiotti, the CNN correspondent there on the scene in Florida, is that the mother`s ex- boyfriend, sex offender.

Susan, explain this to me again. He was unregistered, so the mom would not have known, correct?

CANDIOTTI: Well, we`re not certain of that again, because the mother isn`t answering questions, not taking any questions, so it`s pure speculation.

GRACE: And Susan, how many registered sex offenders popped up on the search in that area?

CANDIOTTI: Twenty-four, two dozen of them. And I don`t know, perhaps coincidentally, about 24 are also registered in Homosassa Springs, Jessica Lunsford`s hometown, that population there about 12,000 and, again, about 8,000 here in Ruskin. It`s about 100 miles away from here.

GRACE: Interesting. You know, you mentioned that piece of paper was found from a probation or parole officer stating that the boyfriend was, in fact, a suspect. From where did that piece of paper come?

CANDIOTTI: Well, we obtained a copy of it, let`s say. And it was authored again -- came out of the Florida probation office, that that`s particular office.

However, again, law enforcement officials here are being very, very careful, treading very softly here, not wanting to label anyone a suspect, even a person of interest at this time. Although privately, you know, we`re getting an indication that of course they are more than just merely interested, mildly interested, in that particular man. And he`s obviously been to the house before and is familiar with it.

GRACE: Susan, the last person to see Sarah alive was her 17-year-old brother. Has he been questioned?

CANDIOTTI: Well, he has been talking with the police, so he has been in touch with them. And I thought one very touching note, when we first arrived on the scene here, I had a chance to talk with a very close friend. She described herself as Sarah Lunde`s best friend.

And this young lady had been on that weekend outing with her and said what a wonderful time they had. And I also talked to the mother of that best friend. And this is what was particularly touching. She said that, when they got back on Saturday night, her daughter had asked, "Mom, can Sarah spend the night at our house? We had such a great time."

And this mother said, "You know, honey, we`re so tired, and she was just here last weekend, do you mind if we just say no?" And now this mother says she feels, in part, blaming herself. Of course, nothing to do with it, but feels very badly that if only Sarah had spent the night at their house, perhaps this wouldn`t have happened.

GRACE: ... this wouldn`t have happened. Oh, what a horrible story, Susan. I know that mother is wracked with guilt. She shouldn`t be.

Very quickly, to psychologist Dr. Anne Renee Testa. Anne Renee, welcome. Based on what Susan Candiotti is telling us, this little girl had come from a broken home. She would run away for a couple of hours. One night, she went to her minister`s home and stayed. But they are saying this is totally out of context. What do you think?

DR. ANNE RENEE TESTA, PSYCHOLOGIST: I think that she`s run away before, Nancy, and there is a reason that she ran away from her home prior to this. And I think that it`s a home where there is a lot of anguish behind it. And frankly, I have the feeling, as I think we all do, that on Onstott had something to do with it.

GRACE: OK. With us in New York, Dr. Anne Renee Testa, psychologist.

Very quickly to Florida defense attorney Joe Episcopo. Joe, explain to me how someone can be a convicted sex offender and somehow they walk out of the jail, the prison, and they`re not registered. How can that be? I thought they were registered when they left?

JOE EPISCOPO, DEFENSE ATTORNEY: Well, they have to register in the county where they decide to live. It`s up to them to do it. And it`s a five-year felony when they don`t do it.

But you know what really strikes me about this, Nancy and Marc? Florida`s death penalty does not seem to be a deterrent to these individuals. Look at Couey and Jessica Lunsford, and now this guy who appears to be a suspect. It doesn`t bother them at all. It`s not a deterrent. And that`s very troubling.

GRACE: It may not be a deterrent to them, Joe Episcopo, but it may deter other people. And it`s hard to take into account the people that don`t act may be deterred, actually.

On the outside looking in, we can only say these people that commit murder obviously were not deterred, but there could be thousands of others that were deterred that did not commit the crime.

Hold on, Robert Gottleib, jump in. What`s your take?

ROBERT GOTTLEIB, DEFENSE ATTORNEY: It`s too early to be talking about the death penalty. It`s too early talking about that Onstott obviously is guilty. It`s very clear. The police clearly, and they justifiably, have a reason to investigate him.

And we all know that`s why they`re holding him, while they can use as a pretense the impaired, the failure to register as a basis to hold him. These guys, law enforcement, wanted to hold him to investigate.

So I would counsel everybody -- and Nancy, you know how strongly I feel about this, as you do. At this point, we should not be making public statements that, obviously, this fellow must be involved. This is not the time to be talking about the death penalty for somebody who has not been convicted.

GRACE: Well, hold on. Hold on, Robert, Robert...

GOTTLEIB: Hopefully, she will be found alive.

GRACE: Robert, nobody has convicted the boyfriend just yet. Susan Candiotti was just reporting on it. I think the only one jumping the gun tonight is you. But you hold on.

We`re going to a commercial break. We`ll be right back with Susan and Marc Klaas. Please stay with us.

(BEGIN VIDEO CLIP)

CRAIG LATIMER, CAPTAIN, HILLSBOROUGH CO. POLICE: Of the 24 sexual offenders that we reported that are in the area, we`ve been able to account for 23 of these sexual predators or offenders at this time.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

GRACE: If you are just joining us -- Elizabeth, could you show that shot again? A little girl missing tonight, 13-year-old Sarah Lunde, age 13, 5`3", 176 pounds, brown hair, hazel eyes. Last seen Saturday night, not reported missing until Monday morning.

Very quickly, to victims` advocate Marc Klaas. Marc, question: What should the police be doing now, right now? It`s days into her being gone. And who should they be talking to? What should the family be doing tonight?

KLAAS: Well, certainly, the family should be cooperating fully with law enforcement. This department has dealt with these kinds of cases before. This was a department that dealt with the Eisenberg case, so they have plenty of experience. They talked to the family...

GRACE: Whoa, whoa, whoa, whoa, whoa, whoa, whoa, wait a minute. Eisenberg was never solved. Please don`t hold that up as a model.

KLAAS: You know, but they had an indictment on that family.

GRACE: Yes, you`re right.

KLAAS: And judge threw it out of court. He arbitrarily did that.

So the police know what they`re doing. They are talking to the family. They have rounded up the sex offenders. They`re allowing volunteers to do the physical searches so that they can maintain their resources for other more pertinent portions of the investigation, which is exactly as they should be doing. Let`s just hope they`re able to crack this thing sooner rather than later.

GRACE: You know what? You are right. There was an indictment on Eisenberg.

KLAAS: Oh, yes.

GRACE: And a federal judge threw it out because he said he couldn`t hear what was being said on the wire tap. I remember now. Thank you.

Very quickly, back to Susan Candiotti. Susan, for those viewers that are just joining us, could you give us a recap, and what is happening tonight there in Florida?

CANDIOTTI: Well, they`ve been searching now for four days for this girl since she was reported missing on Monday. Authorities have been doing a ground search, using assets in the air, as well as on the water, a lot of tributaries around here, to try to locate this girl. They`ve knocked off, of course, the ground search for the night, and they always resume just before daybreak.

GRACE: Hey, Susan, regarding the mom`s ex-boyfriend, this David Onstott guy, what was his prior sex offense?

CANDIOTTI: Let`s see. Right now, it`s been a long day. I`m sorry, Nancy.

GRACE: But he`s convicted right?

CANDIOTTI: Right now it`s not coming to me.

GRACE: But he was convicted?

CANDIOTTI: Yes, a convicted sex -- yes, yes, he was.

GRACE: You know, you were mentioning...

CANDIOTTI: And at this time, again, we`re stressing again, as we`ve said repeatedly, authorities are not calling him a suspect officially or a person of interest, and say they won`t comment on any other aspect of the investigation. They`re not, they say, putting all of their eggs in one basket.

GRACE: You know, Susan, you said that in their area 24 sex offenders had popped up. Listen, after you and I started reporting on the Jessie Lunsford case, I put my parents` zip code in a computer. They live in a very rural area. I can`t think of a single crime. Twenty-three sex offenders popped up in the zip code.

So it`s not that unusual. Thank God we have that ability. With me live in Florida with all the latest on the disappearance of a 13-year-old girl, Sarah Lunde. Reporting tonight, Susan Candiotti.

Take a look at this girl, please.

(COMMERCIAL BREAK) * (NEWS BREAK)

GRACE: Tonight, in Santa Maria, California, "Inside Edition" senior correspondent Jim Moret is joining us. We`re talking about what went down in the California courtroom today, the case against Michael Jackson.

As you know, the current little boy who claims Jackson molested him, mother on the stand claiming she was afraid of Michael Jackson.

Let`s first go to "Celebrity Justice" reporter Jane Velez-Mitchell. The two of them have been in the courtroom all day long.

Jane Velez-Mitchell, what a case. What happened in court today, friend?

JANE VELEZ-MITCHELL, "CELEBRITY JUSTICE": What a wild day, Nancy.

The mother of the current accuser gets on the stand and tells this absolutely bizarre story of conspiracy that began, she said, right after the Bashir documentary aired in February 2003 and goes on two months. It goes to Miami. It goes Neverland. It goes to L.A. and points in between. All the while, she says she`s followed. She`s videotaped, audiotaped, threatened and coerced into making the rebuttal video praising Jackson.

She and her kids do this. And then she says Jackson`s henchmen say, you didn`t do it right. We are still going to have to ship you off to Brazil. Not only are they threatening her, she says, say they can get her and even her parents, but she says they also tell her there are these mysterious killers who are circling Neverland and circling around her and they`re the only ones who can protect her from them. That`s why she has to keep going back to Neverland.

GRACE: How was the jury responding, Jane?

VELEZ-MITCHELL: Well, I think that they`re very matter of fact. I can`t say that they are emotionally moved by her testimony. I can`t say they`re discounting it. I have to say, when I went to the overflow room, the woman has a certain way of speaking that doesn`t really inspire a serious response.

She is sort of unintentionally comical or slapstick. And I found that a lot of people were sort of guffawing and laughing. And I really think that it`s kind of sad, because whether she`s telling the truth or not, I don`t think that it should be judged based on her personality. It should be judged on the facts of the case and how we evaluate her testimony and the evidence, not whether we like her or not.

GRACE: Jane Velez, that`s the first time I`ve heard that. What do you mean the mom is slapstick?

VELEZ-MITCHELL: Well, she has a way of doing things that just sort of provokes comedy. Sometimes, she`ll crack a joke. She says now, when she answers the door, she says either it`s a subpoena or it`s those killers again. And everybody laughed with her.

But, a lot of times, they seem to be laughing at her, because she does dramatic and even erratic gestures. She snaps her fingers. She points to Jackson and says, you did this. She turns and addresses the jury not in a subtle way but, kind of like, boom, I`m talking to the jury now. Now I`m talking back to you. It`s a little caricaturish.

And, in a way, it kind of -- she shoots herself in the foot. She answers questions before the question is finished. Then even the prosecutor had to scold her. Let me finish the question over and over again. So, it`s rough in a sense in that way. And I have sympathy for her, because I can tell she`s not sophisticated. She doesn`t really realize how she`s coming off, I think.

GRACE: Well, you know, Jane Velez-Mitchell, it`s almost as if you can`t win for losing. You`re damned if you do. You`re damned if you don`t. If she was deadpan and had a flat affect, everybody would be screaming, she is deadpan. She`s got a flat affect. We don`t like her. The woman has a personality and everybody says she is a caricature and the jury doesn`t like her.

Could you pick anything up from the jury, other than the press may not like her? But I don`t care about the press. I want to know how the jury is responding.

VELEZ-MITCHELL: Well, you know, ironically, just on a point that you made, she actually said in court one of the reasons she did not call police was that she understood that the story was so bizarre, who would believe her? And now there are people, when she is telling her story, who don`t believe her. So, it`s kind of a self-fulfilling prophecy.

I can tell you that I think that the jury is probably having the same human reaction that most of us had in the overflow. It`s hard to get really emotional. You kind of forget the seriousness of the charges when you hear her answer sometimes.

GRACE: What about it, Jim Moret? Is there any evidence to back up her claim? She`s talking now about the conspiracy, so to speak, to keep her and her son on Neverland, to keep the boy from leaving Michael Jackson. What do we have to back that up?

JIM MORET, "INSIDE EDITION": Yes, she is the main conspiracy witness, Nancy. Without her, they don`t have a case. And this is what they`ve got. They have got a woman that took the Fifth on issues of alleged welfare and perjury. And she did that outside the presence of a jury.

But the judge basically said to the jurors, we have a witness who has taken the Fifth on these two issues. So, he basically said to them, she may be a liar, but you decide. And you know what? It`s not her personality that is bothering a lot of people. It`s the demeanor. It`s the way in which she speaks.

She pleads with the jury not to judge her. She breaks down in tears over the most bizarre things. I`ve covered court cases for the better part of 20 years. This is the single most bizarre witness I have ever seen.

(CROSSTALK)

GRACE: Wait a minute. Wait. Wait. Wait. What do you mean she breaks down over unusual things?

MORET: Well, she was shown her passport and the passport of her children. You have to remember that she claims that Jackson`s henchmen forced her to make applications for passports because they were going to be spirited away to Brazil against their will.

GRACE: Right.

MORET: She was shown passports, which she supposedly hasn`t seen for months, because they were in Jackson`s henchmen`s custody.

GRACE: Right. Right.

MORET: And she says, oh, oh, finally, finally. However, when she was asked about whether her son was molested, then it`s deadpan. I don`t know.

You see? And it`s that disassociation with reality that people are having a hard time understanding. Is she for real? Is she hallucinating? Is she on medication? She is that strange. And the jury, they`ve showed a disconnect over time, because, by the end of the day yesterday, the jurors were looking this way. They were not looking at the witness.

Today, they were taking more copious notes. That`s because today she seemed to be a bit calmer. She wasn`t all over the place. She wasn`t over the top all day like she was yesterday. But this is still a very problematic witness for the prosecution.

GRACE: Let me go to Dr. Anne-Renee Testa.

Dr. Anne-Renee Testa, I have been on the stand myself. And after all the years of telling witnesses how they should behave on the stand, my mouth went dry. I was thinking a long time before I answered each question to make sure I was thorough and covered all my bases. When people take the stand, I have seen grown men break down and cry under cross-examination.

ANNE-RENEE TESTA, PSYCHOLOGIST: Absolutely, Nancy.

And I don`t think there is anything wrong with her. I think it`s a classic case of attention deficit disorder. And she doesn`t care what anybody is thinking of her. And in terms of the passport, by the way, I thought that was very moving.

Imagine if your passport was taken away from you and, all of a sudden, it`s handed back after all of these months, after all what has happened to her. And she`s handed her passport and she starts to cry. I thought that was very real. And I think she`s more real than most people that get up on the stand. I give her credit.

ROBERT GOTTLEIB, DEFENSE ATTORNEY: Nancy, can I just throw something in here?

GRACE: Sure.

GOTTLEIB: Because I don`t think, with regards to this witness and Jim`s report, that this is an issue only of demeanor, that she comes across perhaps a bit strange.

The facts speaks for themselves with regard to this witness. Here`s a woman who the prosecution is relying on to establish that she`s held against her will, that this is a conspiracy. Yet, I believe that the testimony comes out that, during this period of time, she left the ranch in Jackson`s Rolls-Royce to get a leg wax. And, in fact, she told the jury she, in fact, had to pay for the leg wax.

So, while she`s at the salon getting a leg wax -- this is when the conspiracy to hold her at Neverland is taking place -- she also saw her boyfriend at the salon. She never says to the boyfriend, hey, listen, call 911. Call the police. We`re being held against our will. It goes far beyond the issue of demeanor.

GRACE: That`s a good point. The defense is going to have a heyday with that.

To Joe Episcopo in Tampa.

Joe, on the other hand, Joe, you`re a veteran trial lawyer, like Robert Gottleib. You`ve seen witnesses break down on the stand. I dare say the three of us have caused witnesses to break down on the stand. But, Joe, what about the corroboration of this mother? For instance, she was, in fact, at Neverland on the dates she said she was. There were those phone calls to two unrelated comedians where she said, listen, they won`t let me leave this place. Remember that, Joe? And, also, all of those very, very expensive gifts and trips, expensive watches to the tune of, what, $75,000, a lot of things actually corroborate what this mother says.

JOE EPISCOPO, DEFENSE ATTORNEY: Yes.

But when it came time for the actual question about molestation, she couldn`t say anything about it. And, you know, every time prosecutor Sneddon tries to prove the case of what happened in 2003, he fails. Yes, he proved something might of happened in 1990 and 1993, but he can`t prove this case. And that`s the problem.

GRACE: Well, I don`t know about that, Joe Episcopo, because the accuser, the young boy himself -- isn`t this correct, Jane Velez-Mitchell? The young boy in this case in chief testified it did happen. So, is that correct, Jane?

VELEZ-MITCHELL: Yes.

(CROSSTALK)

GRACE: So, when you say there is no evidence, there is evidence.

VELEZ-MITCHELL: Some of the compelling evidence that came in today and yesterday, Nancy, the story seems completely unbelievable and then the prosecution produces two audiotapes, one in which one the alleged unindicted co-conspirators, Frank Tyson, is calling her, purportedly him, and saying in a falsetto voice that sounds just like Michael Jackson, you have to come back to Neverland. We`re worried you. We need you here. It`s not safe for you out there. You have to come back. Let`s arrange for you to come back right away.

I couldn`t make this stuff up if I was the greatest novelist on the planet. We`re all there with our jaws dropping. This guy, it`s like a cult. He`s imitating Michael Jackson`s voice. At a certain moment, I thought, maybe it is Michael Jackson himself, but the same falsetto begging her over and over to come back to Neverland. That`s not made up.

GRACE: And then, of course -- we`re going to break, but, of course, Jane Velez-Mitchell, the mom already testified that Jackson broke down in tears begging to let the boy sleep in the bed with him. That was pretty convincing.

Jane Velez-Mitchell, Jim Moret at the courthouse, along with our panel.

Please stay with us.

(COMMERCIAL BREAK)

GRACE: Michael Jackson, always a star, this time, in the courtroom.

Well, this set the tone of it. Remember that shot where Michael Jackson was on top of the SUV after court? He pleased the fans. I don`t know if it`s going to work in a court of law, though.

Welcome back. Before we switch gears to the missing couple case -- they showed a would-be buyer their boat and were never seen again. We`ve got an update for you tonight on that story.

Back to Jane Velez-Mitchell. She`s with "Celebrity Justice," joining us outside of the courthouse.

Jane, what happens tomorrow?

VELEZ-MITCHELL: Well, the prosecutors say they`re going to show surveillance video allegedly taken by Michael Jackson`s people of this family to back up the charge that they were followed and surveyed.

And then Tom Mesereau, the defense attorney for Michael Jackson, begins his cross-examination. And that is going to be a humdinger, could be the most pivotal day in the whole trial.

GRACE: Did I just hear right? There is surveillance video where Jackson was surveilling this family?

VELEZ-MITCHELL: We don`t know yet. That`s what the prosecution is promising. And we`ll see if they deliver tomorrow.

GRACE: And everybody is telling me tonight there is no corroboration for this mom`s testimony? OK.

Very quickly to Marc Klaas.

Marc, you`re a crime victim. You`ve been -- you`ve testified in many, many hearings, of course, at the sentencing of your daughter`s killer. It concerns me that everyone is attacking the boy`s mother. I mean, she is not highly educated. She doesn`t have a lot of money. She is not a sophisticated person. And she`s up against Tom Mesereau, for Pete`s sake, one of the best defense attorneys in the country.

MARC KLAAS, KLAAS KIDS FOUNDATION: Well, yes. And the guy is going to browbeat her and he`s going to do everything he can to discredit her.

But the bottom line here is that there was a little boy that may have been molested. It wasn`t his mother that was molested. It wasn`t Michael Jackson. I think the common theme in this show tonight, Nancy, is very clear. There are people on this Earth who should never be allowed to give birth.

GRACE: Marc Klaas, stinging indictment. But you know what? I think a lot of people share your sentiment, but you have the guts to say it, friend.

Thanks to all of my panel regarding the Michael Jackson trial.

Let`s switch gears. Tonight, in San Diego, the missing couple`s son I told you about is with us, Ryan Hawks, from the Newport Beach Police Department, Lieutenant Steve Shulman.

Welcome, gentlemen.

To Lieutenant Shulman.

What can you tell us about the case tonight?

LT. STEVE SHULMAN, NEWPORT BEACH POLICE DEPARTMENT: Well, I can tell you, as of last Friday, we arrested Jennifer Deleon, who is the wife of Skylar Deleon, who we arrested back in December.

She has also been arrested. And she is the fifth suspect that was arrested in the missing couple`s disappearance and the for murder of the Hawks. And so, she will be arraigned tomorrow, along with several of the other defendants.

GRACE: To Ryan Hawks. He is the son of the missing couple.

Ryan, for our viewers who are not familiar with your parents` story, could you tell it to us?

RYAN HAWKS, SON OF MISSING COUPLE: Yes.

Well, basically, they getting ready to sell their boat, move down to San Carlos and get a smaller boat, because it was a really large boat to maintain for two people. That and the fact, I think being away for so long at sea really wore on them for quite some time, because they were away from family, even though they were in touch weekly.

And so, when they had the opportunity to sell, they had a strong prospect, went and met on numerous occasions. And then, at one time, they took it out for a sea voyage and never came back.

GRACE: Ryan, you and your siblings very, very close to your parents. And I want to know your reaction to this arrest of this woman.

HAWKS: I`m relieved, you know? I know it`s been coming for quite some time. She had a major role in it and her time is coming.

And I`m just absolutely appalled and frustrated at everything that`s going on. But when I heard the news they finally arrested her, it sat a little better with my stomach. And, you know, my family was very pleased. So we`re happy things are moving in the right direction.

(CROSSTALK)

GRACE: Ryan, for so long, you didn`t know what had happened to your parents. What was the name of the boat?

HAWKS: The name of the boat was Well Deserved.

GRACE: Right.

HAWKS: And it was.

GRACE: Yes. This had been their dream. They worked their whole lives to get this boat. And it was a beauty, and were living on the boat, then were considering selling, showed it to this would-be buyer and were never seen again.

When we come back, we`re going straight to Lieutenant Steve Shulman to find out, what was the scheme. Why did this happen? Was it a robbery gone wrong? What? Have the bodies been recovered? Was this a burial at sea? And what will the punishment be?

Now to an all-points bullet. U.S. Marshals and law enforcement authorities across this country looking for John Dallas Lockhart. Take a look. Catch this. He`s an Ohio lawyer, a lawyer, who fled the state last December. He is wanted for the alleged rape of a 4-month-old child and for photographing the act. Take a look, Lockhart, 36 years old, 6 feet tall, about 185 pounds, green eyes, black hair.

If you have any information on John Dallas Lockhart, contact the Northern Ohio Violent Fugitive Task Force at 1-866-4-WANTED. There may be a cash reward for info leading to Lockhart`s arrest, Lockhart, as of tonight, considered armed and dangerous.

Local news coming up for some of you. But we`ll be right back. Remember, live coverage of the Michael Jackson trial tomorrow 3:00 to 5:00 Eastern on Court TV`s "Closing Arguments."

Please stay with us.

(COMMERCIAL BREAK)

GRACE: We at NANCY GRACE want desperately to help solve unsolved homicides, find missing people.

Tonight, take a look at Pamela Dunn, mother, grandmother, last known to be in her hometown of Watertown, South Dakota. She disappeared December 2001. If you have any information on this lady, Pamela Dunn, please call the Carole Sund/Carrington Foundation toll free 888-813-8389. There may be a reward in connection with Pamela Dunn. Please, help us.

Welcome back.

A case that has been solved, we believe, but doesn`t heal the heartbreak of the children left behind.

Let`s go to Steve Shulman, Lieutenant Steve Shulman, with the Newport Beach Police Department.

Lieutenant, I`m not quite sure I understand the alleged scheme of this group of five. They`re set for arraignment tomorrow, I believe. What was their goal? Why did they have to kill Ryan`s parents?

SHULMAN: Well, Nancy, we believe that this was a murder for financial gain. And this case began back in November, when the Hawks discovered that Thomas and Jackie were missing. It started out as a missing persons report.

And the family knew that the Hawks were selling their boat. And they basically told us that Skylar and Jennifer Deleon were going to be the buyers of the boat.

GRACE: Yes. So, it was all about money, Steve?

SHULMAN: Correct. It started out as just a missing persons case. And then they made some statements that told us that they last saw the Deleons take the cash, $400,000 cash.

GRACE: Right. Right. Oh.

Ryan Hawks is the son of the missing couple.

Ryan, when you hear that it was all about money, that must just hurt you so deeply.

HAWKS: Yes, it does. I mean, it`s just amazing what level some people will reach in life. And it just goes to show how, you know, their self-esteem, and they`re very weak people. Just imagine two people trying -- three people trying to take down a retired couple for financial gain.

GRACE: Yes.

HAWKS: It`s -- it`s appalling.

GRACE: Ryan Hawks, our thoughts and our prayers with you tonight, friend.

The arraignment of the five tomorrow in a California courtroom.

I want to thank each and every one of my guests tonight.

But my biggest thank you, like every night, is to you for being with us and inviting all of us into your home.

Coming up, the headlines from around the world.

I`m Nancy Grace, signing off for tonight. Hope to see you right here tomorrow night, 8:00 sharp Eastern.

Until then, good night, friend.

END


Aired April 14, 2005 - 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: Tonight, one Alabama girl has been found, but another girl, a 13-year-old from Florida, still missing. A massive search is underway tonight. We need your help.
And in the Michael Jackson child sex trial, the boy`s mother on the stand under oath says she began to fear Jackson and what he would do to her family if they took her son away. The two regularly shared a bed.

And a fifth arrest made in the California missing couple case. We take you live to California for the latest.

Good evening, everybody. I`m Nancy Grace. And I want to thank you for being with us tonight. Today, Michael Jackson squares off with his alleged molestation victim`s mother again.

And an arrest in the case of the California couple missing since November. Remember, they had shown their boat to a would-be buyer and disappeared into thin air. Police believe they were murdered and buried at sea in the cold waters of the Pacific Ocean.

But first, a little 13-year-old girl, Sarah Michelle Lunde, missing tonight. We want your help. Police are questioning her mother`s ex- boyfriend. He`s an unregistered sex offender.

Sarah was just home that night from a church function. She had played volleyball, she had sang church songs, and had youth fellowship.

With us in Omaha, victims` advocate, Marc Klaas. His daughter, Polly, I know you remember, was kidnapped and murdered. He`s a tireless victims` rights advocate. In Tampa, defense attorney Joe Episcopo; in New York, defense lawyer Robert Gottleib and psychologist Anne Renee Testa; and with us now, Susan Candiotti in Ruskin, Florida.

Susan, deja vu. You and I were just talking about a similar case, and now this. Bring me up-to-date, friend.

SUSAN CANDIOTTI, CNN CORRESPONDENT: Well, the police are searching frantically for any sign of Sarah Lunde, 13 years old. So far as we know, they have no new clues as to her disappearance. Remember, she was on that church outing as you indicated over the weekend. And she was not reported missing until Monday, reported missing by her mother when her daughter did not show up for school.

Now, reportedly, the mother has said that she thought that her daughter was with some friends, and that`s why she wasn`t home on Sunday night. In any case, an army of volunteers are assisting police. They`ve been searching an area about three-to-five miles, a grid that stretches out from her home.

Now, this little girl did come from a broken home. And she has run away before. However, she has always come home in the past. She even stayed with a minister`s family once.

And all of her friends, those her know her, her family say it`s totally out of character, in their opinion, for her to be away this long and not have checked in with someone. Of course, as you said, someone that authorities are very interested in is this David Onstott person who is currently being held without bond on an outstanding warrant on a DUI charge out of Michigan. So he`s not going anywhere for now. They`re stopping short of publicly calling him a person of interest.

GRACE: You know, what`s amazing to me, Susan Candiotti, two questions. Number one, when she had run away before, she had only been gone for a couple of hours, right?

CANDIOTTI: Not very long. It was slightly longer than that when she actually stayed at the minister`s house for a time, according to them, until things sort of calmed down, and then she went back home again.

GRACE: So this is a complete departure from her behavior. This is what I don`t understand, Susan Candiotti, that her mother thought she was with friends? The mother didn`t know where she was?

CANDIOTTI: Reportedly, that`s what we`re hearing, Nancy. And unfortunately, the mother is not taking questions of any kind. She has appeared before cameras on a few occasions asking for help, but declines to answer any questions about the circumstances surrounding her daughter`s disappearance.

GRACE: Let me ask my producer.

Elizabeth, please keep rolling that video and putting Sarah Lunde`s picture up, OK?

Back to Susan Candiotti. Another thing. Look how cute, with a little headband, 13, 5`3", 176 pounds, hair, brown, eyes, hazel, missing out of Florida.

Susan Candiotti, here`s another question that I`ve been thinking about all day long. The older brother, what he was, 15, 17? He realizes, he comes home Saturday night, sees her there in the home. On Sunday morning, he realizes she`s gone. And they don`t report her missing until Monday?

CANDIOTTI: It`s certainly hard to explain, and maybe not the way that a lot of us would have reacted. We don`t know why the brother didn`t say anything to anyone, or at that point apparently, and why the mother waited until Monday to report her missing, other than what we`ve been told that she apparently -- or they thought that she was with friends.

As I said, Nancy, you might have handled it differently. I might have handled it differently. But for now, we`re at a loss.

GRACE: Well, you`re darn right, I would handle it differently, Susan Candiotti. But fussing at the mother is not going to help any thing now.

Susan Candiotti is with us there in Florida. Very quickly to victims` rights advocate Marc Klaas.

Marc, what`s disturbing me so much is that you and I both know that the hours immediately following the disappearance are crucial. Why?

MARC KLAAS, VICTIMS` RIGHTS ADVOCATE: Well, because a kidnapper can disappear with a child at the rate of one mile a minute. Therefore, if you don`t create some sort kind of a barrier around that, create the umbrella around that within the first few hours, that kidnapper could be virtually anywhere with that child.

But just as in the Lunsford situation, I think we`re going to find this one is very, very close to home.

GRACE: Well, another thing about the hours, the minutes as they pass, we all know that when people are kidnapped, within the first 72 hours, if they can make it that far, that is when they are murdered, OK? So these first couple of days are the single most important times. And they lost a whole day by not reporting her missing.

KLAAS: Yes. Nancy, 74 percent of children that are murdered as a result of this kind of abduction are dead within the first three hours. There is absolutely no time to lose.

And I would counsel that mother, irregardless of how dysfunctional she might be, to get in front of the cameras time, after time, after time, and answer those questions that people are asking and plea for her daughter`s safe return.

She wasn`t there when she needed her. She should be there for her right now.

GRACE: That is a darn good question.

Susan Candiotti, has the mom made any public pleas for her daughter`s welfare?

CANDIOTTI: Oh, yes, she has. She has repeatedly appeared before cameras very briefly to ask for any help in helping find her daughter, for volunteers to come out, for tipsters to please call the sheriff`s department. She has done so repeatedly.

And we have seen her on a daily basis here at the church that her daughter attended in the youth ministry. And she has been spending time with the volunteers and with the police, and appears to be cooperating with them fully.

GRACE: Well, I`m glad to hear it. And as a matter of fact, Susan Candiotti is correct. Take a listen to this.

(BEGIN VIDEO CLIP)

KELLY MAY, MOTHER OF MISSING GIRL: All we all want to do is bring Sarah home safely. And that`s everybody`s goal. And the sheriff`s department has done a great job. All we can do is keep hoping and praying that that`s how the outcome comes. But I do want to thank everybody that`s been here and the support that I`ve received.

(END VIDEO CLIP)

GRACE: That is Kelly May, the missing girl`s mother. If you`re just joining us, a missing girl, 13-years-old out of Florida. We need your help.

Elizabeth is running the photo repeatedly. Take a look at this little girl, 13-years-old, Sarah Lunde.

Back to Susan Candiotti. Tell me about this ex-boyfriend with a sex offender history, not registered.

CANDIOTTI: And that is why -- in fact, after this happened, they found out about it, because there are 24 registered sex offenders in this little town of Ruskin, population just over 8,000. And as soon as this happened, police went right to work, of course, checking on their status.

They said that they immediately were able to locate in short time 23 of the 24. And the one that they didn`t locate had already left the state, they found out, so he`s in trouble, too. But he had left before Sarah was reported missing.

Now, in terms of Onstott, there is a bit of flurry of activity tonight because a piece of paper has surfaced written by a probation officer with the state of Florida. And it reflects his notes of a conversation with the head of the Florida Department of Law Enforcement Sex Crimes Unit.

In the notes, this probation officer says that the head of the unit refers to Onstott as a suspect in this case. I just confirmed that with a member of the Florida Department of Law Enforcement. However, they stress that no one from the Hillsborough County Sheriff`s Department or the Florida Department of Law Enforcement is officially calling this man a person of interest.

However, the sheriff has said, time and again, look, it`s obvious we`re very interested in this man because of his past relationship with Sarah Lunde`s mother. They`re looking at him very, very closely.

GRACE: As you can see, on the scene, CNN correspondent Susan Candiotti bringing us the latest.

Quick break. We`ll bring the panel in to join Susan and Marc Klaas.

But as we go to break, I want to remind you this is National Crime Victims Week. It was two years ago today that the remains of Laci Peterson washed ashore at Point Isabel in the San Francisco Bay.

Laci was murdered along with her unborn baby boy, Conner. They were dumped into the icy waters of the bay by her husband, Scott Peterson. Peterson now on San Quentin`s death row with a view of the same bay where he buried his family.

Laci`s death highlights the horrific statistic that the number-one cause of death amongst pregnant women in this country, homicide. Laci and Conner at peace.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

DAVID GEE, SHERIFF, HILLSBOROUGH COUNTY: The last time where she was really gone for any period of time was when she was in foster care at the age of 9. Since then, she would have apparently periods of maybe temper tantrums where she would leave for a few hours.

We`re relying on the family and on the pastor, the local pastor who she was very close to. And he has characterized this as just completely out of the ordinary and feels that she would not have done this for this period of time, and would of come forward by now.

(END VIDEO CLIP)

GRACE: That`s the sheriff from Hillsborough County.

If you`re just joining tonight, a 13-year-old girl missing out of Florida. And what a cutie.

Elizabeth, could you show her? This is Sarah Lunde. She`s been actually missing, we believe now, since either Saturday night or Sunday morning, not reported missing by her family until Monday, losing valuable, valuable lead time!

Another disturbing thing, according to Susan Candiotti, the CNN correspondent there on the scene in Florida, is that the mother`s ex- boyfriend, sex offender.

Susan, explain this to me again. He was unregistered, so the mom would not have known, correct?

CANDIOTTI: Well, we`re not certain of that again, because the mother isn`t answering questions, not taking any questions, so it`s pure speculation.

GRACE: And Susan, how many registered sex offenders popped up on the search in that area?

CANDIOTTI: Twenty-four, two dozen of them. And I don`t know, perhaps coincidentally, about 24 are also registered in Homosassa Springs, Jessica Lunsford`s hometown, that population there about 12,000 and, again, about 8,000 here in Ruskin. It`s about 100 miles away from here.

GRACE: Interesting. You know, you mentioned that piece of paper was found from a probation or parole officer stating that the boyfriend was, in fact, a suspect. From where did that piece of paper come?

CANDIOTTI: Well, we obtained a copy of it, let`s say. And it was authored again -- came out of the Florida probation office, that that`s particular office.

However, again, law enforcement officials here are being very, very careful, treading very softly here, not wanting to label anyone a suspect, even a person of interest at this time. Although privately, you know, we`re getting an indication that of course they are more than just merely interested, mildly interested, in that particular man. And he`s obviously been to the house before and is familiar with it.

GRACE: Susan, the last person to see Sarah alive was her 17-year-old brother. Has he been questioned?

CANDIOTTI: Well, he has been talking with the police, so he has been in touch with them. And I thought one very touching note, when we first arrived on the scene here, I had a chance to talk with a very close friend. She described herself as Sarah Lunde`s best friend.

And this young lady had been on that weekend outing with her and said what a wonderful time they had. And I also talked to the mother of that best friend. And this is what was particularly touching. She said that, when they got back on Saturday night, her daughter had asked, "Mom, can Sarah spend the night at our house? We had such a great time."

And this mother said, "You know, honey, we`re so tired, and she was just here last weekend, do you mind if we just say no?" And now this mother says she feels, in part, blaming herself. Of course, nothing to do with it, but feels very badly that if only Sarah had spent the night at their house, perhaps this wouldn`t have happened.

GRACE: ... this wouldn`t have happened. Oh, what a horrible story, Susan. I know that mother is wracked with guilt. She shouldn`t be.

Very quickly, to psychologist Dr. Anne Renee Testa. Anne Renee, welcome. Based on what Susan Candiotti is telling us, this little girl had come from a broken home. She would run away for a couple of hours. One night, she went to her minister`s home and stayed. But they are saying this is totally out of context. What do you think?

DR. ANNE RENEE TESTA, PSYCHOLOGIST: I think that she`s run away before, Nancy, and there is a reason that she ran away from her home prior to this. And I think that it`s a home where there is a lot of anguish behind it. And frankly, I have the feeling, as I think we all do, that on Onstott had something to do with it.

GRACE: OK. With us in New York, Dr. Anne Renee Testa, psychologist.

Very quickly to Florida defense attorney Joe Episcopo. Joe, explain to me how someone can be a convicted sex offender and somehow they walk out of the jail, the prison, and they`re not registered. How can that be? I thought they were registered when they left?

JOE EPISCOPO, DEFENSE ATTORNEY: Well, they have to register in the county where they decide to live. It`s up to them to do it. And it`s a five-year felony when they don`t do it.

But you know what really strikes me about this, Nancy and Marc? Florida`s death penalty does not seem to be a deterrent to these individuals. Look at Couey and Jessica Lunsford, and now this guy who appears to be a suspect. It doesn`t bother them at all. It`s not a deterrent. And that`s very troubling.

GRACE: It may not be a deterrent to them, Joe Episcopo, but it may deter other people. And it`s hard to take into account the people that don`t act may be deterred, actually.

On the outside looking in, we can only say these people that commit murder obviously were not deterred, but there could be thousands of others that were deterred that did not commit the crime.

Hold on, Robert Gottleib, jump in. What`s your take?

ROBERT GOTTLEIB, DEFENSE ATTORNEY: It`s too early to be talking about the death penalty. It`s too early talking about that Onstott obviously is guilty. It`s very clear. The police clearly, and they justifiably, have a reason to investigate him.

And we all know that`s why they`re holding him, while they can use as a pretense the impaired, the failure to register as a basis to hold him. These guys, law enforcement, wanted to hold him to investigate.

So I would counsel everybody -- and Nancy, you know how strongly I feel about this, as you do. At this point, we should not be making public statements that, obviously, this fellow must be involved. This is not the time to be talking about the death penalty for somebody who has not been convicted.

GRACE: Well, hold on. Hold on, Robert, Robert...

GOTTLEIB: Hopefully, she will be found alive.

GRACE: Robert, nobody has convicted the boyfriend just yet. Susan Candiotti was just reporting on it. I think the only one jumping the gun tonight is you. But you hold on.

We`re going to a commercial break. We`ll be right back with Susan and Marc Klaas. Please stay with us.

(BEGIN VIDEO CLIP)

CRAIG LATIMER, CAPTAIN, HILLSBOROUGH CO. POLICE: Of the 24 sexual offenders that we reported that are in the area, we`ve been able to account for 23 of these sexual predators or offenders at this time.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

GRACE: If you are just joining us -- Elizabeth, could you show that shot again? A little girl missing tonight, 13-year-old Sarah Lunde, age 13, 5`3", 176 pounds, brown hair, hazel eyes. Last seen Saturday night, not reported missing until Monday morning.

Very quickly, to victims` advocate Marc Klaas. Marc, question: What should the police be doing now, right now? It`s days into her being gone. And who should they be talking to? What should the family be doing tonight?

KLAAS: Well, certainly, the family should be cooperating fully with law enforcement. This department has dealt with these kinds of cases before. This was a department that dealt with the Eisenberg case, so they have plenty of experience. They talked to the family...

GRACE: Whoa, whoa, whoa, whoa, whoa, whoa, whoa, wait a minute. Eisenberg was never solved. Please don`t hold that up as a model.

KLAAS: You know, but they had an indictment on that family.

GRACE: Yes, you`re right.

KLAAS: And judge threw it out of court. He arbitrarily did that.

So the police know what they`re doing. They are talking to the family. They have rounded up the sex offenders. They`re allowing volunteers to do the physical searches so that they can maintain their resources for other more pertinent portions of the investigation, which is exactly as they should be doing. Let`s just hope they`re able to crack this thing sooner rather than later.

GRACE: You know what? You are right. There was an indictment on Eisenberg.

KLAAS: Oh, yes.

GRACE: And a federal judge threw it out because he said he couldn`t hear what was being said on the wire tap. I remember now. Thank you.

Very quickly, back to Susan Candiotti. Susan, for those viewers that are just joining us, could you give us a recap, and what is happening tonight there in Florida?

CANDIOTTI: Well, they`ve been searching now for four days for this girl since she was reported missing on Monday. Authorities have been doing a ground search, using assets in the air, as well as on the water, a lot of tributaries around here, to try to locate this girl. They`ve knocked off, of course, the ground search for the night, and they always resume just before daybreak.

GRACE: Hey, Susan, regarding the mom`s ex-boyfriend, this David Onstott guy, what was his prior sex offense?

CANDIOTTI: Let`s see. Right now, it`s been a long day. I`m sorry, Nancy.

GRACE: But he`s convicted right?

CANDIOTTI: Right now it`s not coming to me.

GRACE: But he was convicted?

CANDIOTTI: Yes, a convicted sex -- yes, yes, he was.

GRACE: You know, you were mentioning...

CANDIOTTI: And at this time, again, we`re stressing again, as we`ve said repeatedly, authorities are not calling him a suspect officially or a person of interest, and say they won`t comment on any other aspect of the investigation. They`re not, they say, putting all of their eggs in one basket.

GRACE: You know, Susan, you said that in their area 24 sex offenders had popped up. Listen, after you and I started reporting on the Jessie Lunsford case, I put my parents` zip code in a computer. They live in a very rural area. I can`t think of a single crime. Twenty-three sex offenders popped up in the zip code.

So it`s not that unusual. Thank God we have that ability. With me live in Florida with all the latest on the disappearance of a 13-year-old girl, Sarah Lunde. Reporting tonight, Susan Candiotti.

Take a look at this girl, please.

(COMMERCIAL BREAK) * (NEWS BREAK)

GRACE: Tonight, in Santa Maria, California, "Inside Edition" senior correspondent Jim Moret is joining us. We`re talking about what went down in the California courtroom today, the case against Michael Jackson.

As you know, the current little boy who claims Jackson molested him, mother on the stand claiming she was afraid of Michael Jackson.

Let`s first go to "Celebrity Justice" reporter Jane Velez-Mitchell. The two of them have been in the courtroom all day long.

Jane Velez-Mitchell, what a case. What happened in court today, friend?

JANE VELEZ-MITCHELL, "CELEBRITY JUSTICE": What a wild day, Nancy.

The mother of the current accuser gets on the stand and tells this absolutely bizarre story of conspiracy that began, she said, right after the Bashir documentary aired in February 2003 and goes on two months. It goes to Miami. It goes Neverland. It goes to L.A. and points in between. All the while, she says she`s followed. She`s videotaped, audiotaped, threatened and coerced into making the rebuttal video praising Jackson.

She and her kids do this. And then she says Jackson`s henchmen say, you didn`t do it right. We are still going to have to ship you off to Brazil. Not only are they threatening her, she says, say they can get her and even her parents, but she says they also tell her there are these mysterious killers who are circling Neverland and circling around her and they`re the only ones who can protect her from them. That`s why she has to keep going back to Neverland.

GRACE: How was the jury responding, Jane?

VELEZ-MITCHELL: Well, I think that they`re very matter of fact. I can`t say that they are emotionally moved by her testimony. I can`t say they`re discounting it. I have to say, when I went to the overflow room, the woman has a certain way of speaking that doesn`t really inspire a serious response.

She is sort of unintentionally comical or slapstick. And I found that a lot of people were sort of guffawing and laughing. And I really think that it`s kind of sad, because whether she`s telling the truth or not, I don`t think that it should be judged based on her personality. It should be judged on the facts of the case and how we evaluate her testimony and the evidence, not whether we like her or not.

GRACE: Jane Velez, that`s the first time I`ve heard that. What do you mean the mom is slapstick?

VELEZ-MITCHELL: Well, she has a way of doing things that just sort of provokes comedy. Sometimes, she`ll crack a joke. She says now, when she answers the door, she says either it`s a subpoena or it`s those killers again. And everybody laughed with her.

But, a lot of times, they seem to be laughing at her, because she does dramatic and even erratic gestures. She snaps her fingers. She points to Jackson and says, you did this. She turns and addresses the jury not in a subtle way but, kind of like, boom, I`m talking to the jury now. Now I`m talking back to you. It`s a little caricaturish.

And, in a way, it kind of -- she shoots herself in the foot. She answers questions before the question is finished. Then even the prosecutor had to scold her. Let me finish the question over and over again. So, it`s rough in a sense in that way. And I have sympathy for her, because I can tell she`s not sophisticated. She doesn`t really realize how she`s coming off, I think.

GRACE: Well, you know, Jane Velez-Mitchell, it`s almost as if you can`t win for losing. You`re damned if you do. You`re damned if you don`t. If she was deadpan and had a flat affect, everybody would be screaming, she is deadpan. She`s got a flat affect. We don`t like her. The woman has a personality and everybody says she is a caricature and the jury doesn`t like her.

Could you pick anything up from the jury, other than the press may not like her? But I don`t care about the press. I want to know how the jury is responding.

VELEZ-MITCHELL: Well, you know, ironically, just on a point that you made, she actually said in court one of the reasons she did not call police was that she understood that the story was so bizarre, who would believe her? And now there are people, when she is telling her story, who don`t believe her. So, it`s kind of a self-fulfilling prophecy.

I can tell you that I think that the jury is probably having the same human reaction that most of us had in the overflow. It`s hard to get really emotional. You kind of forget the seriousness of the charges when you hear her answer sometimes.

GRACE: What about it, Jim Moret? Is there any evidence to back up her claim? She`s talking now about the conspiracy, so to speak, to keep her and her son on Neverland, to keep the boy from leaving Michael Jackson. What do we have to back that up?

JIM MORET, "INSIDE EDITION": Yes, she is the main conspiracy witness, Nancy. Without her, they don`t have a case. And this is what they`ve got. They have got a woman that took the Fifth on issues of alleged welfare and perjury. And she did that outside the presence of a jury.

But the judge basically said to the jurors, we have a witness who has taken the Fifth on these two issues. So, he basically said to them, she may be a liar, but you decide. And you know what? It`s not her personality that is bothering a lot of people. It`s the demeanor. It`s the way in which she speaks.

She pleads with the jury not to judge her. She breaks down in tears over the most bizarre things. I`ve covered court cases for the better part of 20 years. This is the single most bizarre witness I have ever seen.

(CROSSTALK)

GRACE: Wait a minute. Wait. Wait. Wait. What do you mean she breaks down over unusual things?

MORET: Well, she was shown her passport and the passport of her children. You have to remember that she claims that Jackson`s henchmen forced her to make applications for passports because they were going to be spirited away to Brazil against their will.

GRACE: Right.

MORET: She was shown passports, which she supposedly hasn`t seen for months, because they were in Jackson`s henchmen`s custody.

GRACE: Right. Right.

MORET: And she says, oh, oh, finally, finally. However, when she was asked about whether her son was molested, then it`s deadpan. I don`t know.

You see? And it`s that disassociation with reality that people are having a hard time understanding. Is she for real? Is she hallucinating? Is she on medication? She is that strange. And the jury, they`ve showed a disconnect over time, because, by the end of the day yesterday, the jurors were looking this way. They were not looking at the witness.

Today, they were taking more copious notes. That`s because today she seemed to be a bit calmer. She wasn`t all over the place. She wasn`t over the top all day like she was yesterday. But this is still a very problematic witness for the prosecution.

GRACE: Let me go to Dr. Anne-Renee Testa.

Dr. Anne-Renee Testa, I have been on the stand myself. And after all the years of telling witnesses how they should behave on the stand, my mouth went dry. I was thinking a long time before I answered each question to make sure I was thorough and covered all my bases. When people take the stand, I have seen grown men break down and cry under cross-examination.

ANNE-RENEE TESTA, PSYCHOLOGIST: Absolutely, Nancy.

And I don`t think there is anything wrong with her. I think it`s a classic case of attention deficit disorder. And she doesn`t care what anybody is thinking of her. And in terms of the passport, by the way, I thought that was very moving.

Imagine if your passport was taken away from you and, all of a sudden, it`s handed back after all of these months, after all what has happened to her. And she`s handed her passport and she starts to cry. I thought that was very real. And I think she`s more real than most people that get up on the stand. I give her credit.

ROBERT GOTTLEIB, DEFENSE ATTORNEY: Nancy, can I just throw something in here?

GRACE: Sure.

GOTTLEIB: Because I don`t think, with regards to this witness and Jim`s report, that this is an issue only of demeanor, that she comes across perhaps a bit strange.

The facts speaks for themselves with regard to this witness. Here`s a woman who the prosecution is relying on to establish that she`s held against her will, that this is a conspiracy. Yet, I believe that the testimony comes out that, during this period of time, she left the ranch in Jackson`s Rolls-Royce to get a leg wax. And, in fact, she told the jury she, in fact, had to pay for the leg wax.

So, while she`s at the salon getting a leg wax -- this is when the conspiracy to hold her at Neverland is taking place -- she also saw her boyfriend at the salon. She never says to the boyfriend, hey, listen, call 911. Call the police. We`re being held against our will. It goes far beyond the issue of demeanor.

GRACE: That`s a good point. The defense is going to have a heyday with that.

To Joe Episcopo in Tampa.

Joe, on the other hand, Joe, you`re a veteran trial lawyer, like Robert Gottleib. You`ve seen witnesses break down on the stand. I dare say the three of us have caused witnesses to break down on the stand. But, Joe, what about the corroboration of this mother? For instance, she was, in fact, at Neverland on the dates she said she was. There were those phone calls to two unrelated comedians where she said, listen, they won`t let me leave this place. Remember that, Joe? And, also, all of those very, very expensive gifts and trips, expensive watches to the tune of, what, $75,000, a lot of things actually corroborate what this mother says.

JOE EPISCOPO, DEFENSE ATTORNEY: Yes.

But when it came time for the actual question about molestation, she couldn`t say anything about it. And, you know, every time prosecutor Sneddon tries to prove the case of what happened in 2003, he fails. Yes, he proved something might of happened in 1990 and 1993, but he can`t prove this case. And that`s the problem.

GRACE: Well, I don`t know about that, Joe Episcopo, because the accuser, the young boy himself -- isn`t this correct, Jane Velez-Mitchell? The young boy in this case in chief testified it did happen. So, is that correct, Jane?

VELEZ-MITCHELL: Yes.

(CROSSTALK)

GRACE: So, when you say there is no evidence, there is evidence.

VELEZ-MITCHELL: Some of the compelling evidence that came in today and yesterday, Nancy, the story seems completely unbelievable and then the prosecution produces two audiotapes, one in which one the alleged unindicted co-conspirators, Frank Tyson, is calling her, purportedly him, and saying in a falsetto voice that sounds just like Michael Jackson, you have to come back to Neverland. We`re worried you. We need you here. It`s not safe for you out there. You have to come back. Let`s arrange for you to come back right away.

I couldn`t make this stuff up if I was the greatest novelist on the planet. We`re all there with our jaws dropping. This guy, it`s like a cult. He`s imitating Michael Jackson`s voice. At a certain moment, I thought, maybe it is Michael Jackson himself, but the same falsetto begging her over and over to come back to Neverland. That`s not made up.

GRACE: And then, of course -- we`re going to break, but, of course, Jane Velez-Mitchell, the mom already testified that Jackson broke down in tears begging to let the boy sleep in the bed with him. That was pretty convincing.

Jane Velez-Mitchell, Jim Moret at the courthouse, along with our panel.

Please stay with us.

(COMMERCIAL BREAK)

GRACE: Michael Jackson, always a star, this time, in the courtroom.

Well, this set the tone of it. Remember that shot where Michael Jackson was on top of the SUV after court? He pleased the fans. I don`t know if it`s going to work in a court of law, though.

Welcome back. Before we switch gears to the missing couple case -- they showed a would-be buyer their boat and were never seen again. We`ve got an update for you tonight on that story.

Back to Jane Velez-Mitchell. She`s with "Celebrity Justice," joining us outside of the courthouse.

Jane, what happens tomorrow?

VELEZ-MITCHELL: Well, the prosecutors say they`re going to show surveillance video allegedly taken by Michael Jackson`s people of this family to back up the charge that they were followed and surveyed.

And then Tom Mesereau, the defense attorney for Michael Jackson, begins his cross-examination. And that is going to be a humdinger, could be the most pivotal day in the whole trial.

GRACE: Did I just hear right? There is surveillance video where Jackson was surveilling this family?

VELEZ-MITCHELL: We don`t know yet. That`s what the prosecution is promising. And we`ll see if they deliver tomorrow.

GRACE: And everybody is telling me tonight there is no corroboration for this mom`s testimony? OK.

Very quickly to Marc Klaas.

Marc, you`re a crime victim. You`ve been -- you`ve testified in many, many hearings, of course, at the sentencing of your daughter`s killer. It concerns me that everyone is attacking the boy`s mother. I mean, she is not highly educated. She doesn`t have a lot of money. She is not a sophisticated person. And she`s up against Tom Mesereau, for Pete`s sake, one of the best defense attorneys in the country.

MARC KLAAS, KLAAS KIDS FOUNDATION: Well, yes. And the guy is going to browbeat her and he`s going to do everything he can to discredit her.

But the bottom line here is that there was a little boy that may have been molested. It wasn`t his mother that was molested. It wasn`t Michael Jackson. I think the common theme in this show tonight, Nancy, is very clear. There are people on this Earth who should never be allowed to give birth.

GRACE: Marc Klaas, stinging indictment. But you know what? I think a lot of people share your sentiment, but you have the guts to say it, friend.

Thanks to all of my panel regarding the Michael Jackson trial.

Let`s switch gears. Tonight, in San Diego, the missing couple`s son I told you about is with us, Ryan Hawks, from the Newport Beach Police Department, Lieutenant Steve Shulman.

Welcome, gentlemen.

To Lieutenant Shulman.

What can you tell us about the case tonight?

LT. STEVE SHULMAN, NEWPORT BEACH POLICE DEPARTMENT: Well, I can tell you, as of last Friday, we arrested Jennifer Deleon, who is the wife of Skylar Deleon, who we arrested back in December.

She has also been arrested. And she is the fifth suspect that was arrested in the missing couple`s disappearance and the for murder of the Hawks. And so, she will be arraigned tomorrow, along with several of the other defendants.

GRACE: To Ryan Hawks. He is the son of the missing couple.

Ryan, for our viewers who are not familiar with your parents` story, could you tell it to us?

RYAN HAWKS, SON OF MISSING COUPLE: Yes.

Well, basically, they getting ready to sell their boat, move down to San Carlos and get a smaller boat, because it was a really large boat to maintain for two people. That and the fact, I think being away for so long at sea really wore on them for quite some time, because they were away from family, even though they were in touch weekly.

And so, when they had the opportunity to sell, they had a strong prospect, went and met on numerous occasions. And then, at one time, they took it out for a sea voyage and never came back.

GRACE: Ryan, you and your siblings very, very close to your parents. And I want to know your reaction to this arrest of this woman.

HAWKS: I`m relieved, you know? I know it`s been coming for quite some time. She had a major role in it and her time is coming.

And I`m just absolutely appalled and frustrated at everything that`s going on. But when I heard the news they finally arrested her, it sat a little better with my stomach. And, you know, my family was very pleased. So we`re happy things are moving in the right direction.

(CROSSTALK)

GRACE: Ryan, for so long, you didn`t know what had happened to your parents. What was the name of the boat?

HAWKS: The name of the boat was Well Deserved.

GRACE: Right.

HAWKS: And it was.

GRACE: Yes. This had been their dream. They worked their whole lives to get this boat. And it was a beauty, and were living on the boat, then were considering selling, showed it to this would-be buyer and were never seen again.

When we come back, we`re going straight to Lieutenant Steve Shulman to find out, what was the scheme. Why did this happen? Was it a robbery gone wrong? What? Have the bodies been recovered? Was this a burial at sea? And what will the punishment be?

Now to an all-points bullet. U.S. Marshals and law enforcement authorities across this country looking for John Dallas Lockhart. Take a look. Catch this. He`s an Ohio lawyer, a lawyer, who fled the state last December. He is wanted for the alleged rape of a 4-month-old child and for photographing the act. Take a look, Lockhart, 36 years old, 6 feet tall, about 185 pounds, green eyes, black hair.

If you have any information on John Dallas Lockhart, contact the Northern Ohio Violent Fugitive Task Force at 1-866-4-WANTED. There may be a cash reward for info leading to Lockhart`s arrest, Lockhart, as of tonight, considered armed and dangerous.

Local news coming up for some of you. But we`ll be right back. Remember, live coverage of the Michael Jackson trial tomorrow 3:00 to 5:00 Eastern on Court TV`s "Closing Arguments."

Please stay with us.

(COMMERCIAL BREAK)

GRACE: We at NANCY GRACE want desperately to help solve unsolved homicides, find missing people.

Tonight, take a look at Pamela Dunn, mother, grandmother, last known to be in her hometown of Watertown, South Dakota. She disappeared December 2001. If you have any information on this lady, Pamela Dunn, please call the Carole Sund/Carrington Foundation toll free 888-813-8389. There may be a reward in connection with Pamela Dunn. Please, help us.

Welcome back.

A case that has been solved, we believe, but doesn`t heal the heartbreak of the children left behind.

Let`s go to Steve Shulman, Lieutenant Steve Shulman, with the Newport Beach Police Department.

Lieutenant, I`m not quite sure I understand the alleged scheme of this group of five. They`re set for arraignment tomorrow, I believe. What was their goal? Why did they have to kill Ryan`s parents?

SHULMAN: Well, Nancy, we believe that this was a murder for financial gain. And this case began back in November, when the Hawks discovered that Thomas and Jackie were missing. It started out as a missing persons report.

And the family knew that the Hawks were selling their boat. And they basically told us that Skylar and Jennifer Deleon were going to be the buyers of the boat.

GRACE: Yes. So, it was all about money, Steve?

SHULMAN: Correct. It started out as just a missing persons case. And then they made some statements that told us that they last saw the Deleons take the cash, $400,000 cash.

GRACE: Right. Right. Oh.

Ryan Hawks is the son of the missing couple.

Ryan, when you hear that it was all about money, that must just hurt you so deeply.

HAWKS: Yes, it does. I mean, it`s just amazing what level some people will reach in life. And it just goes to show how, you know, their self-esteem, and they`re very weak people. Just imagine two people trying -- three people trying to take down a retired couple for financial gain.

GRACE: Yes.

HAWKS: It`s -- it`s appalling.

GRACE: Ryan Hawks, our thoughts and our prayers with you tonight, friend.

The arraignment of the five tomorrow in a California courtroom.

I want to thank each and every one of my guests tonight.

But my biggest thank you, like every night, is to you for being with us and inviting all of us into your home.

Coming up, the headlines from around the world.

I`m Nancy Grace, signing off for tonight. Hope to see you right here tomorrow night, 8:00 sharp Eastern.

Until then, good night, friend.

END