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NANCY GRACE

Latest in Search for Natalee Holloway

Aired October 4, 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, part two of an exclusive primetime post- release interview. Is there a cover-up in Aruba? Why were documents altered, evidence ignored? Tonight: The mystery surrounding 18-year-old Natalee Holloway`s disappearance only deepens as her mother and stepdad take on the Aruba government.
And tonight: Crime intrudes in one of the wealthiest areas of the world. The brutal wine country murders head to court.

Good evening, everybody. I`m Nancy Grace. I want to thank you for being with us tonight.

Tonight: Napa Valley is one of the single wealthiest neighborhoods in the entire world, but even it is not immune to crime. The wine country double murder involving two 26-year-old roommates could be cracked with a suspect no one ever suspected.

But first tonight: It has been four torturous months since Natalee Holloway went missing, missing off the tiny island of Aruba from her senior class trip. All three lead suspects in the case -- judge`s son Joran Van Der Sloot and his two buddies -- have all walked free. Tonight: Did Aruban authorities cover for the judge? Natalee`s parents are not giving up, and they are speaking out tonight from our studios here at Headline News.

First of all. for an update on the case, I want to go out to Jane Velez-Mitchell, investigative reporter. Jane, is there a cover-up? What`s the latest?

JANE-VELEZ-MITCHELL, INVESTIGATIVE REPORTER: Well, I got to tell you, Nancy, the Aruban authorities insist they are still investigating this case. They swear they`re still interviewing witnesses, they are still conducting underwater dives, searching caves. But clearly, the drama has shifted from Aruba to Holland.

As you know, about a month ago, the chief suspect in Natalee`s Holloway`s disappearance, Joran Van Der Sloot, and his family left Aruba for Holland. Joran is now going to college there. Now, he may have thought he could leave the whole drama, the whole controversy behind and start a new life, but absolutely not. The controversy has followed him to Holland. So have the reporters. And the recent statements he gave to reporters have reignited outrage. Specifically, he seemed to blame Natalee Holloway for her own disappearance, implying that she was the aggressor, that she came on to him, that she wanted to drink and party.

And Natalee`s Holloway`s mom is absolutely outraged, pointing out that Joran Van Der Sloot has changed his story at least 20 times.

GRACE: Here in the studio with me, a very special guest. This is part two of an exclusive post-release interview. Natalee`s mother is not done with the search for Natalee Holloway. Beth, when you hear that dives are still ongoing, that the Aruban government is still looking for Natalee or trying at least to find out what happened, do you believe it?

BETH HOLLOWAY TWITTY, MISSING GIRL`S MOTHER: Where was all this on June 1? Where was all this May 31, June 1, June 2, June 3, June 4?

GRACE: You know, when I hear that dives are taking place, I really don`t know whether to believe it or not.

Elizabeth, could you pull up -- there`s a shot of Natalee. We learned yesterday that she was so devoted, she practiced year long to try out on a dance team, very, very difficult to make. Obviously, she made it. But Elizabeth, can we pull up a map, a map of Aruba?

Jossy Mansur is with us, the editor of "El Diario" newspaper. Where are the dives taking place, Jossy?

JOSSY MANSUR, MANAGING EDITOR, "EL DIARIO": To the north of the lighthouse, Nancy. There is an underwater cave there. They want to search totally. They were busy with that when I left Aruba.

GRACE: Jossy, I want to believe you. You`ve always been correct in all of your facts. but the fact that the three lead suspects have been released makes me cast doubt on anything the government`s doing down there. Tell me, is Judge Paulus Van Der Sloot in his office as a judge now? Where is he?

MANSUR: He is not a judge. He is in Holland with his son. He is settling him down. In other words, he`s making sure he`s settled there for his studies. And his mother is still in Aruba. She`s teaching at the International School of Aruba at the refinery (ph).

GRACE: Well, just this past week in the American tabloids, a young lady spoke out of a night on the town with Joran Van Der Sloot. So apparently, he must need a 24-hour chaperone in order to stay out of trouble. In fact, take a listen to what Joran Van Der Sloot had to say in an interview just recently.

(BEGIN VIDEO CLIP)

JORAN VAN DER SLOOT, SUSPECT IN NATALEE HOLLOWAY DISAPPEARANCE: I knew her for one night. I feel horrible that I even went out that night without my father knowing. I should have just stayed home and this wouldn`t have happened to me. It would happen to another person. I just try to look at it that I was at the wrong place at the wrong time, maybe even with the wrong people. And I just hope that the truth comes out, that this comes some clarity in the case.

JERRY WAGSCHAL, "A CURRENT AFFAIR" PRODUCER: But do you understand? I mean, how could a girl just disappear?

VAN DER SLOOT: I don`t know. I think that`s the million-dollar question.

WAGSCHAL: What would you do now?

VAN DER SLOOT: I would have just stayed home that night. I wouldn`t have even gone out. It was Natalee who asked me to go out with her. It was her that asked me to come to the club. And it was her that was yelling at me to go dance with her, and I said -- and I went to go drink something with my friends.

WAGSCHAL: Are you that irresistible? I mean, is that what...

VAN DER SLOOT: No. I don`t know. That`s not -- that`s absolutely not what it`s about. I don`t know. When her parents showed up at my door with her picture, I didn`t even know who Natalee Holloway was. I didn`t even know her name.

(END VIDEO CLIP)

GRACE: Well, you know what? That is contrary to everything he told police and what he told Natalee`s parents.

Here in the studio with me, Natalee`s mother. Now, when you went to Aruba, you were telling us last night, you got there as quickly as possible. You learned Natalee was missing in the afternoon. You were on a 6:00 PM flight. You got there at around 11:00 PM. And by 3:00 AM-ish you single-handedly, with the help of your Jug, your husband, had found Joran Van Der Sloot, who was still out partying that night around 3:00 o`clock in the morning. And at that time, he spoke to you. He talked to you about Natalee. But here he`s saying he even didn`t know who Natalee was. He didn`t even know her name.

BETH HOLLOWAY TWITTY: I know. I mean, it`s just so typical of Joran. I mean, every time I hear that interview, I -- it just jumps out at me how everything is Natalee`s fault. It`s Natalee`s fault for everything, that he was in the wrong place at the wrong time. Well, Natalee was in the wrong place at the -- I mean, it`s just always her fault.

GRACE: Was evidence covered up? Take a listen to Joran Van Der Sloot, chief suspect.

(BEGIN VIDEO CLIP)

VAN DER SLOOT: She had a lot to drink at Carlos and Charlie`s. She grabbed my hand and took me with her for me to take jelly shots off her. And afterwards, she asked me to buy a shot for her, buy her something to drink, which I did. And that`s all I saw that she drank. I didn`t see her drink anything else.

But from the day -- from the earlier, when I was with her friends at the Excelsior casino at the Holiday Inn, the whole group was already drinking from 5:00 in the afternoon. And I didn`t really see her at that moment. I didn`t even really notice her at that moment. But I guess they came here to have a good time, to celebrate their graduation also, and they might have all gone a little too far. I don`t know.

WAGSCHAL: What do you mean jelly shots with her? You mean off of her body?

VAN DER SLOOT: Yes.

WAGSCHAL: How does that work? Can you tell me?

VAN DER SLOOT: I don`t know. I never did it myself before. She grabbed my hand and took me with her and asked me if I wanted to take jelly shots off her.

WAGSCHAL: And how does it work? I don`t understand.

VAN DER SLOOT: And she climbed on the bar. She laid down on the bar and she called over the bartender by name, and he got a jelly shot for her and then I took a jelly shot off her.

WAGSCHAL: I don`t understand. Is it on her belly? Is it on...

VAN DER SLOOT: On her belly, yes.

WAGSCHAL: On her belly button.

VAN DER SLOOT: Yes.

WAGSCHAL: And then what do you do?

VAN DER SLOOT: And then you basically lick it off.

WAGSCHAL: How do you leave a girl on the beach?

VAN DER SLOOT: Well, I told her I had to go home. I had school the next day. And I thought maybe she`d understand. She told me, no, she wanted me to stay there with her because the next day, she was leaving and she wanted to stay there the whole night. I told her, no, I had to go. I even lifted her up to carry her back to her hotel, and she told me to put her down. I left her there. I sat down next to her, talked to her a while, and I called Deepak to ask him if he could come pick me up, which Deepak didn`t do, but...

WAGSCHAL: Was she angry?

VAN DER SLOOT: She wasn`t angry. If anything, she was probably more, you know, upset that I was leaving her there. And I don`t know what reaction she had. I don`t know.

At the time, I didn`t feel it was a bad idea. At the time, I really didn`t. It didn`t seem wrong. It didn`t seem -- of course, now I look back at it and I think [DELETED] I`m an [DELETED]. What did I do? But there`s nothing I can do about it now. If I could have that moment back, I would have made sure she got back to her hotel safely. But I can`t change that now.

(END VIDEO CLIP)

GRACE: Man, how I would like to hook him up to a polygraph machine! Beth, you gave -- after meeting this young man around 3:00 AM that night, you gave a full statement to police. What happened?

BETH HOLLOWAY TWITTY: Well, it was 48 hours later that I was able to give a full statement to the police.

GRACE: Why so long?

BETH HOLLOWAY TWITTY: I don`t know, Nancy. I was sent away on May 31. I was told that I was not needed that day. So I was brought back in on June 1, and...

GRACE: The police told you they didn`t need you, after you flew in from America?

BETH HOLLOWAY TWITTY: Correct. I was not needed on the 31st to give my statement. I went in June 1 approximately 10:00 AM and gave my statement. It was printed in Dutch. It was translated for me in English, and I signed it. The same day on June 1 at 10:00 PM, the same detective brought me two statements, one that I had signed...

GRACE: Now, wait a minute -- 10:00 PM? This is the day you give statements -- the day she gives statements to Aruban authorities, after being told to wait for 48 hours. You give a full statement. You sign it.

BETH HOLLOWAY TWITTY: Yes.

GRACE: At 10:00 PM, an investigator finds you where?

BETH HOLLOWAY TWITTY: In a restaurant.

GRACE: You`re out at restaurant.

BETH HOLLOWAY TWITTY: Yes.

GRACE: And they track you down to restaurant.

BETH HOLLOWAY TWITTY: Yes.

GRACE: And you are with?

BETH HOLLOWAY TWITTY: I`m with Jug and about eight other family members that flew (INAUDIBLE)

GRACE: So a lot of people witnessed this event.

BETH HOLLOWAY TWITTY: Yes.

GRACE: They come up to you in a restaurant and say?

BETH HOLLOWAY TWITTY: I need you to sign this new statement. There was a change that had to have been made. Jug spoke with them. You know, Nancy, I was not able to make any type of decisions on what I was signing. I mean, something was presented before me. I`m looking for my daughter in a foreign country. What was I going to do?

GRACE: Was it in Dutch?

BETH HOLLOWAY TWITTY: I had to go on good faith. Oh, yes. Absolutely.

GRACE: So after signing your statement once that afternoon, they seek you out at a restaurant...

BETH HOLLOWAY TWITTY: Yes.

GRACE: ... and ask you to re-sign a statement written totally in Dutch?

BETH HOLLOWAY TWITTY: Yes.

GRACE: And Jug quizzed them, saying?

GRACE: What are the changes? The changes were only supposed to have been a date.

GRACE: And?

BETH HOLLOWAY TWITTY: We found out about three weeks later that that statement that I signed on June 10 is not my statement. We were given that statement by an Aruban attorney sometime during the month of July and finally had it translated, and it is not my original statement.

GRACE: What was left out, Beth?

BETH HOLLOWAY TWITTY: There were a lot of names that were left out, you know, just key elements as far as how Joran asked Jug and -- to leave the group before he admitted the sexual assaults that he committed against Natalee and -- and just a lot of things. You know, Paulus`s name -- I didn`t know anyone`s name. I didn`t know Charles Croes`s name, which is just ludicrous.

(CROSSTALK)

GRACE: And you knew all of that.

BETH HOLLOWAY TWITTY: Oh, absolutely.

GRACE: You`d been talking to people in their front yard at 3:00 AM.

BETH HOLLOWAY TWITTY: Absolutely, I knew who they were.

GRACE: Now, how did you find out your statement to police had been altered by Aruban authorities?

BETH HOLLOWAY TWITTY: We had -- we received a copy of one of my statements, and it just so happened to have been the one that I re-signed or I signed on June 1 at 10:00 PM. And it was not my statement. We had it translated and...

GRACE: You know, another issue came up. I`m going to go out to Jug Twitty. He`s standing by in Birmingham, Alabama -- obviously, Beth`s husband, Natalee`s stepfather. Jug, was there a very detailed statement describing Natalee`s underwear?

GEORGE "JUG" TWITTY, MISSING GIRL`S STEPFATHER: Yes.

GRACE: What happened?

JUG TWITTY: Nancy, what happened -- well, I think it was probably about 30 days after, or so, maybe the 1st of July or something. I had a meeting with Van Der Straaten, who was the police chief in charge at that time. And I went in and sat down with him and told him and Officer Sanboe (ph), who was going to take over for Van Der Straaten. He was there, too.

You know, I asked a question about, I understand that there was a statement made by Joran, where he talks about what he had done to Natalee and he described in very graphic detail, like, the stitching and embroidery and everything on Natalee`s underwear. And he goes, Oh, no, no, no. Absolutely not. Absolutely not. Well, little did he know I had just read the statements where Joran describes that to the "T," you know, two days before. But of course, I didn`t tell him that. But that`s just when I started to think something`s wrong here.

GRACE: And the reality is, how would Joran Van Der Sloot have known about embroidery and the design on her underwear if he hadn`t seen it? According to them, they were all in the back seat of the car. There had been no sex assault, nothing. How would he have known that?

Amidst claims of alterations of statements, changing the fact, hiding evidence, will we ever find out what happened to Natalee? We`ll all be right back.

But very quickly, to tonight`s "Case Alert." After three months of silence, missing groom George Smith`s family finally speaks out, calling for a law to protect cruise passengers from dangers at sea. A lawmaker from Smith`s home state of Connecticut demands Congress hold hearings on the cruise industry. Smith`s whereabouts still unknown.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Although we can never replace a person of his stature and character, we believe his legacy can be one that helps other families be spared of tragedies like ours.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BETH HOLLOWAY TWITTY: Joran talks about how Natalee says a lot of strange things and very bizarre things. And he makes that comment twice before he says, also -- he states that she`s obviously drunk. And when I hear of her speaking of strange things and what she was saying, you know, that sounds like to me that`s not drunk, but it sounds like that could be drugged, and how she`s also falling asleep and waking up, in his statement.

(END VIDEO CLIP)

GRACE: Welcome back. I`m Nancy Grace. And with me tonight, two very special guests that are vowing they will get justice for Natalee Holloway. Her mother, Beth, is with us, her stepfather, Jug.

And you know, we`ve seen Beth and Jug on TV a million times from Aruba, begging for help. But here in the studio with me, in our Headline News studios, is Beth. He just gave me some very disturbing news that I had never known before, after all the studying and analyzing we`ve done on the case.

Beth, you were just -- we were talking about the fact Joran Van Der Sloot, who swears now there was no sex between him and Natalee, gave a very detailed description of Natalee`s underwear, the embroidery on it and all that. But you just revealed a new fact to me I didn`t know.

BETH HOLLOWAY TWITTY: Well, not only did he know specific details about her underclothing, but also just physical descriptions of her, so...

GRACE: Without her clothes on.

BETH HOLLOWAY TWITTY: Yes.

GRACE: I`ll put it as gently as I possibly can.

BETH HOLLOWAY TWITTY: Yes.

GRACE: You know, I want to go out very quickly to David Wohl, defense attorney. David, this is a guy that swears, on one hand, that he did not have sex with Natalee Holloway, which many people would have thought to be non-consensual, but yet has chosen to give police a description of her underwear and her private parts -- the girl`s private parts, all right?

DAVID WOHL, DEFENSE ATTORNEY: Yes. You know, Nancy, I mean, if you believe that, then I`ve got a bridge in Arizona that`s up for sale. You know, I don`t buy it at all.

GRACE: Well, wait, wait, wait!

WOHL: I think...

GRACE: I`m past that. I`m onto why the Aruban government is covering -- covering up for this. Save me the breath! Of course I know he`s lying. But why is the Aruban government covering all this up?

WOHL: I don`t know. I think, basically -- I kind of agree with you, Nancy. I find it hard to believe that they`re aggressively pursuing this, like Natalee`s mom is. I think they`re on cruise control, and that`s why it is so crucial for Natalee`s mom to continue.

You know, we`re basically where we would be in the Peterson case, Laci Peterson, if her body and Conner`s body had not washed ashore. We need some forensic evidence. We`ve got to have some blood. We`ve got to have a murder weapon, perhaps. We`ve got to have something more than these statements that can be interpreted one way or the other. And I think we`ll get them because with this pursuit that Natalee`s mom is on, eventually, the evidence we need will turn up.

GRACE: Very quickly, to tonight`s "Case Alert." The search for the mother of 4-year-old abandoned Valery Lozada now centers on two Pennsylvania landfills. Monica Lozada`s live-in boyfriend, Cesar Ascarrunz (ph), allegedly tells police he strangled Monica during a heated argument, then tossed the young mother out with the trash. Monica`s 4-year-old daughter, Valery, survived. That`s the miracle. The little girl found on the streets of New York in the middle of the night in pajamas and barefoot.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Do you know how you got lost, honey?

VALERY LOZADA, LOST 4-YEAR-OLD: I got lost when I was sleeping. He took me in the car and...

UNIDENTIFIED FEMALE: Your daddy?

LOZADA: ... took me outside with no shoes. So I was crying. And some people find me, and they give me sweater and everything.

(END VIDEO CLIP)

GRACE: Many legal eagles believe her, the little girl pointing the finger at Cesar.

(COMMERCIAL BREAK)

GRACE: Natalee Holloway worked year `round -- year `round! -- dedicated to making the dance team. Check it out. That is one determined little girl. Now, if we could just find out what has become of Natalee Holloway. As you know, she went missing on her high school senior trip. We are not letting go of the case! It ain`t over yet, according to her mother and stepfather, joining us live here in our Headline News studios.

Back to Beth Twitty, Natalee`s mom. I want to talk to you about the prime minister`s statement, the Aruban prime minister, who went public and stated there was blood found in the car. Remember?

BETH HOLLOWAY TWITTY: Yes, absolutely.

GRACE: What happened?

BETH HOLLOWAY TWITTY: Absolutely. That`s what I would love to know. On June 11, he states on international media in front of me -- I had no idea what he was about to disclose -- that there was blood in the Kalpoes` vehicle, there was DNA, there was blood. Where is that? Even (INAUDIBLE) went so far to cut interior portions from the car -- the back seat, the ceiling. You know, what happened with that?

GRACE: Now, Ellie (ph), didn`t we find out later another statement was issued saying there wasn`t any blood?

UNIDENTIFIED FEMALE: Exactly. We had heard there was never any DNA evidence of any kind retrieved from the car.

GRACE: Or no blood period.

UNIDENTIFIED FEMALE: Right, exactly.

GRACE: Completely -- now, you want to tell me, Jug, that the prime minister -- that would be just like Bush, getting on national TV and saying -- and making a statement of fact, and then us finding out it was absolutely false.

Another issue, aside from the prime minister cooking up that story, then retracting it, regarding Natalee, I`m concerned about this connection between the chief of police, the retired Van Straaten, and Paulus Van Der Sloot, the chief suspect`s father.

JUG TWITTY: Yes, there`s all kinds of rumors about -- you know, that he was Joran`s godfather and all the different -- you know, I don`t know if any of that`s true.

GRACE: Whoa, whoa, whoa!

JUG TWITTY: I know they were probably...

(CROSSTALK)

GRACE: Wait, wait, wait! Oh!

JUG TWITTY: That was a rumor...

GRACE: Godfather?

JUG TWITTY: ... that was all over the island, so...

GRACE: Well, how can you find out if it`s true?

JUG TWITTY: I don`t know. I mean, I asked him point blank, and Van Der Straaten said no. But I`ll tell you, Nancy, the deal is there`s -- the reason there`s no evidence was because the people didn`t do the right thing in the beginning. And I want the prosecutor or somebody to step up and say, Look, we made a mistake. We didn`t arrest them the second day, like we should have. We let them go for nine days. We gave them a chance to clean the car. We gave them a chance to hide everything, to set up everything, to set up their stories, point the fingers at the two black security guards.

Somebody -- you know, that`s the reason there`s no evidence. Had they gone to the -- and impounded that car that day -- the FBI told us there was blood all in the car. The prosecutor said the FBI said there was blood in the car. But for some reason or another, when they sent it off, they say now it`s all cleaning fluid. Well, who knows. I know they had nine days to clean the car.

(COMMERCIAL BREAK)

THOMAS ROBERTS, CNN HEADLINE NEWS ANCHOR: Hi, everybody. I`m Thomas Roberts and this is your HEADLINE prime newsbreak.

Federal investigators are looking over the New York tour boat that capsized Sunday killing 20 people. And authorities have released dramatic 911 tapes that capture the early moments of the tragedy. The boat owner`s license has been suspended. He could face a 25 to $100 fine for not having enough crew on board.

President Bush says he never asked Supreme Court nominee Harriet Miers what she thinks of abortion. Court watchers on both sides of the aisle say there are many unanswered questions about Miers` views, but there is no judicial record to look at because she has never been a judge. Meanwhile, the high court is busy this week. Tomorrow it takes on the contentious issue of assisted suicide.

A new study says the death rates from cancer in the U.S. is on the decline. Cancer rates among men have stabilized, but women and minorities don`t seem to be benefiting from the downward trend. Prevention, early detection and better treatment actually helped lower those rates.

That is the news for now. Thanks for joining us. I`m Thomas Roberts and we take you back now for more of Nancy Grace.

(MUSIC)

GRACE: Of course, this is how we got to know Paulus Van Der Sloot, aka Judge Van Der Sloot, the best, his back side running from questions. And, of course, it was nothing new. That procedure continued throughout the investigation of the disappearance of Natalee Holloway.

Welcome back everybody. I want to go straight out to the managing director of "El Diario" newspaper, Jossy Mansur. Jossy, regarding the connection, what I perceived to be a close connection between the judge, Paulus Van Der Sloot and the retired chief of police who initially handled Natalee`s case, Van Der Stratten, were they friends?

MANSUR: Of course, they were friends. It stands to reason they were friends because Paul Van Der Sloot had many friends within the police department; he had many friends within the Department of Justice. And he had many friends with -- and he was friendly with all the judges in Aruba. He worked out of the same office as they did and did the same work.

GRACE: You know, I want to talk about the fact that with Van Der Stratten, the chief of police being so close to the judge, Paulus Van Der Sloot, the chief suspect`s father, what affect that had on the initial stages of this case. Here in the studio with me Natalee`s mother Beth Twitty is with us.

Let`s take a look at what we perceive to be the top 10 bungles of the case. Elizabeth, if you could throw that up for me. Number 10, Joran Van Der Sloot says he`s a Dutch tourist visiting Aruba the night that he met Natalee. That`s a lie. Joran Van Der Sloot has lived in Aruba for years. In fact his father is a judge there.

Number nine, Van Der Sloot says he is 19 years old. Truth, he`s 17. Why lie except to get into casinos and bars.

Number eight, Van Der Sloot says he and the Kalpoes dropped Natalee off at the Holiday Inn the night she disappeared. That she stumbled, that she was drunk, that she bumped her head, then pointed the finger at two innocent black security guards. He said they came up to help her and walked away with her. That`s a lie. Those men have been cleared.

The three then identify the two black security guards. The truth, the story grows.

Six, D.J. on a party boat Steve Croes also identifies the two security guards. Truth? No. The story grows.

Prime minister says blood found in Deepak Kalpoe`s car. The truth, no blood ever found in the car after an official government statement.

Number four, the Kalpoes say they dropped Natalee and Joran Van Der Sloot off at the beach. Yet another version of the story. The truth, a local gardener identifies all three at a Racquet Club near the beach.

Number three, Van Der Sloot says he left Natalee asleep on the beach. Now he says she was awake when he left complaining that he was leaving.

Number two, Van Der Sloot told police everything, he says. The truth, he now says to this day he has not told the full story.

Now, finally, number one, Van Der Sloot says he and Natalee had sex at his house. Later he describes taking her to the beach. Truth? Nobody knows but Joran Van Der Sloot and the Kalpoe brothers.

When you look back and this and so many other instances of bungling or outright manipulating the evidence, Beth, how do you feel?

BETH HOLLOWAY TWITTY: You know, Nancy, the sad part is that`s just half of it. I mean I was thinking of all the witnesses, the bogus sightings and the things that we`ve been on, and all these other persons of interest. I mean we`ve got people from -- with names from von rain (ph) and von loom (ph) and Freddy -- and what happened to all of them? And all of their alibis have been destroyed. I mean I think of Freddy and I think what happened to him? You know what has happened to all of these persons of interest...

GRACE: The fourth person arrested, right?

BETH HOLLOWAY TWITTY: Yes.

GRACE: And another thing that I find very disturbing, Beth, is that his apartment where he now says he had consensual sex with Natalee Holloway is attached to -- is a part of Paulus Van Der Sloot, his father`s home. Did you ever ask was the home searched?

BETH HOLLOWAY TWITTY: Oh, yes, we asked. And in his statement he says he took her to his home. He doesn`t say his apartment. And I`m thinking I cannot believe that the primary residence was never searched. And the mother was out of the country for the day or for the night. So I`m just -- it`s just one more...

GRACE: You know, Jug, did you ever question the authorities as to why Paulus Van Der Sloot`s home had not been searched?

JUG TWITTY: Absolutely. I mean I asked -- with a meeting with the prosecutor did you search Paulus` home and she said no. And I said why? And she said because he wouldn`t let us. I`m going I can`t -- he was a suspect. They brought him in for -- held him for two days. I just don`t understand it. That`s what I`m talking about. Nothing was done right in the beginning on this thing, otherwise we`d have an answer.

GRACE: And to Alan Ripka, a veteran defense attorney. Alan, here in America it is called a cartilage (ph) search if you have a warrant or consent to search a home or an apartment, you can under the law search surrounding areas including tool houses, garages, the yard, whatever. And in this case that would have applied to Joran Van Der Sloot`s apartment.

ALAN RIPKA, DEFENSE ATTORNEY: That`s correct, Nancy. In fact, certainly they should have searched every inch of it. And the fact that he did not allow them to is very telling because as you know when you have nothing to hide, why not let people in and let them look around because they are not going to find anything. And this is sort of circumstantial evidence of the fact that he has got a large responsibility in this and I`m sure they would have found something and that`s what he was nervous about.

GRACE: And I want to quickly go to psychoanalyst Bethany Marshall. Bethany, after watching all of Joran Van Der Sloot`s interviews on "A Current Affair" one of their producers tracked him down at the university. What do you make of his demeanor?

BETHANY MARSHALL, PSYCHOANALYST: I just think sociopath, sociopath, sociopath. I mean he has a derisive attitude towards the victim. He viewed Natalee as an object to be exploited. He had disregard for the rules of society. But the interesting thing about sociopaths is not only do they lack regard for others, but they are often unconcerned for their own safety.

And because of that, they tell very shabby, shallow lies. So I think the person who is going to crack this case wide open is Joran Van Der Sloot himself because over time, he`s going to forget -- once the pressure is off, he`s going to forget the consequences even more. He`s going to brag to somebody and the truth will come out.

GRACE: Let`s take a look, if we could, Elizabeth -- if you could put up his demeanor during that interview with "A Current Affair". You know it`s amazing to me and Alan Ripka just pointed out, Beth, that the judge refused to allow anyone to search his house and that Joran Van Der Sloot ultimately quit talking. The day after all of this happened, while you were out combing the island, they called a meeting, a meeting at the pool behind the judge`s house of lawyers, the Kalpoe family, Joran Van Der Sloot, his father, for what?

BETH HOLLOWAY TWITTY: What he was doing was helping the boys get their stories straight, Nancy. He was instructing the boys how to get your story straight. If all stories match, in 10 days you will be free.

GRACE: And what about the hard drive?

BETH HOLLOWAY TWITTY: Well he also told the guys once they got their stories straight to begin e-mailing this and then use your hard drive to nail an alibi.

GRACE: And not to use your cell phone.

BETH HOLLOWAY TWITTY: Cell phones would be bugged.

GRACE: Incredible while you were out walking the beaches looking for Natalee they are devising their defense strategy. Of course they claim they know nothing about the case.

Very quickly as you may know by now, Congressman Tom Delay is indicted again, this time on a money laundering charge brought against him by a Texas grand jury. The former House majority leader already faces one conspiracy charge in a state campaign finance probe. This new indictment comes as a result of a motion he filed to dismiss the conspiracy charge. If Delay is found guilty, he faces five years to life behind bars under Texas law.

(COMMERCIAL BREAK)

(MUSIC)

GRACE: To say Natalee Holloway was on the top of the world is an understatement. An American Alabama beauty with a full scholarship to go to the university to become a doctor -- her goal, to help others. Tonight, can we help her? Here in the studio with me, Natalee`s mother. Beth, is it true that there is a detailed statement by Deepak Kalpoe about Natalee?

BETH HOLLOWAY TWITTY: Well, there is a taped confession from Deepak Kalpoe that they all had sex with my daughter. And we were told early on that you know new evidence, when it`s brought forward that it would warrant the re-incarceration of these suspects. And we felt like even as early as you know 1st of July that we could be headed towards you know kidnapping and rape charges against these young men definitively.

GRACE: At least.

BETH HOLLOWAY TWITTY: Yes. Now I`ve never said whether they went ahead and actually killed my daughter or not. We have never said it because we do not know. That it doesn`t look good, but kidnapping and rape at least Nancy.

GRACE: How did you learn about this statement by Deepak Kalpoe?

BETH HOLLOWAY TWITTY: This confession was obtained by a man by the name of Jamie Skeeters and he`s president of California Polygraph Association and he`s a retired -- a 38-year commander, chief of police, and extremely credible investigator and this is new information that needs to be reviewed by the Attorney General`s Office.

GRACE: What does he say on the statement?

BETH HOLLOWAY TWITTY: You know I can`t remember the question that led up to this response from Deepak. But it was basically he said quote -- "that they all had sex with Natalee" and he described how easy it was. Well of course it would be easy if she is coming in and out of consciousness. You know I mean Natalee was not able to defend herself.

You know she was not able to choose her will. You know this is -- that constitutes -- that`s a gang rape and I don`t know who they all are. We know Deepak and Satish Kalpoe and Joran Van Der Sloot, but who else, who else was at the home that night. Who else was there? We don`t know that.

GRACE: It`s one thing for a crime to occur to a young girl. It`s another thing for the Aruban government to turn away from what we believe to be the truth and to stand by and let this continue. We are not letting go of the case of Natalee Holloway.

I want to thank Beth and Jug for being with us and, friends, we will meet again.

Very quickly, everybody. I want to update you on a case we have been covering for you and one of the richest areas of the entire world, Napa Valley, violent crime intrudes. It`s called the wine country murders. Let`s get an update from Jane Velez Mitchell.

VELEZ-MITCHELL: Nancy, a huge breakthrough in this case. Authorities say the DNA test that they have done backup their belief that they have caught the right man in this horrific double stabbing murder of two young women on Halloween night in Napa Valley. This man Eric Copple, 26-year- old, a land surveyor, smoked the same rare brand of cigarettes that were found at the crime scene, that the evidence that they collected, the DNA evidence.

What make this so very creepy is that Copple`s then girlfriend, now wife, was a very close friend and co-worker of one of the murdered women. They attended her funeral. They invited this murdered woman`s mother to their wedding a couple of months later. This woman attended and even read a passage from the Bible that they selected that talked about love and death and passion and now the entire community is wondering why? He apparently gave some sort of confession, but they won`t say what it is.

GRACE: To the best friend of one of the victims, Kelly McCorkle is with us. Her friend was Leslie Mazzara. And Elizabeth, do we have that video taken from the beauty pageant?

Kelly, out to you, if this guy who was never considered a suspect, no criminal history whatsoever, is in fact guilty, it`s amazing to me that he was probably in and out of the apartment of your friend quite often.

KELLY MCCORKLE, BEST FRIEND OF VICTIM LESLIE MAZZARA (via phone): Oh, I know and that`s the scary part and my biggest fear was that it would be somebody that Leslie would know. And I`ve talked to a lot of Leslie`s close friends out in Napa and none of them say that Leslie knew Eric well, just probably as an acquaintance.

GRACE: And, to Bethany Marshall, psychoanalyst, you know we really need a shrink on this one, Bethany...

(CROSSTALK)

GRACE: ... because here you`ve got Adriane Insogna getting married and as the groom kissed the bride, he looked over her shoulder and according to cops, had his eye on his murder victim`s mom sitting in the wedding -- freaky.

MARSHALL: It is so freaky and when I heard about this particular crime, I had a thought, which is that I think that there were two perversions that might have motivated this crime. One was voyeurism because we know whoever the perpetrator was he was standing outside the window smoking, possibly rehearsing in his mind how he was going to commit the crime.

And that the second was sexual sadism even though there`s no evidence of a sex attack that perhaps the use of a knife because it`s easier just to kill somebody with a gun, but he used an instrument that would really cause pain and injury and that there was some sexual satisfaction in that.

GRACE: Ellie, haven`t we confirmed tonight that there is no sex assault on either of the victims both killed in their beds?

UNIDENTIFIED FEMALE: Right. Right. Murder charges no sexual assault charges.

GRACE: And speaking of the murder charges, to Jane Velez Mitchell, number one, was the knife, the murder weapon, taken from the home or did he stand outside smoking the cigarettes looking in the window with the knife in his pocket, do we know?

VELEZ MITCHELL: You know I`m not sure about that, but I have to say what is absolutely significant about this case is that this Eric Copple has been described by many people as a loner, as a kid who never fit in, who moved from place to place. And so this is a situation where you have a man who may have been suppressing a lot of obsession and a lot of rage.

GRACE: And very quickly, Alan Ripka, death penalty, no death penalty? We`ve got two dead bodies.

RIPKA: Well it would certainly sound like it`s a death penalty case, Nancy, but I`ll tell you, you may go for a temporary insanity here. Here is a guy who is knowingly a lawful citizen. People know him. They like him. And this guy burst on that particular day. And he may have...

GRACE: Burst? Burst? David Wohl, don`t think there was any bursting to it. He stood outside the window looking in long enough to have quite a few cigarettes. Now that`s not a snap. That`s watching and smoking and then going in when they cut the lights off. That`s not bursting like Alan Ripka said.

WOHL: No and Nancy, God bless our RFLP DNA evidence because it`s amazing what they can take off the saliva off a cigarette butt. I mean I can just vision him after he`s committed these murders, after, sitting there as the cigarette is finishing and just sort of tossing it on the ground thinking I`ve committed the perfect crime. But guess what, 2001 -- the next century of forensic evidence is this RFLP DNA and it`s wonderful and hey, they`ve nailed him apparently.

GRACE: We`ll find out about that. Everybody, we`re going to keep you posted on the wine country murders.

Very quickly before we come back to tonight`s all points bulletin, FBI and law enforcement across the country on the lookout for this woman, Joanne Chesimard, wanted in connection with the `73 murder of 34-year-old New Jersey state trooper, Werner Forester. Chesimard in her 50s, is 5`7", 140 pounds, salt and pepper hair.

If you have any information on this alleged cop killer, call the FBI, 973-792-3000.

Local news next for some of you, but we`ll all be right back. And remember, live coverage of the Wisconsin hunting murder trial, 3:00 to 5:00 Eastern on Court TV. Please stay with us as we remember Staff Sergeant Daniel L. Arnold, just 27, an American hero.

(COMMERCIAL BREAK)

GRACE: Adriane Insogna, age 26, Leslie Mazzara, age 26, both American beauties lost their life too young and now the suspect, Eric Copple, 26 himself, is a man no one was ever suspicious of.

Welcome back. I`m Nancy Grace. I want to go straight to Jane Velez Mitchell. We were talking about the wine country murders. You`d think in a prestigious pocket of the country where everything seems perfect and beautiful. People are rolling in money. You think they got a problem? No, but somehow violent crime intrudes.

There is a miracle to this case. There was a third roommate, a roommate whose name we`re not disclosing tonight who escaped. How did she have the wherewithal to get out as her other two roommates were being stabbed to death?

VELEZ MITCHELL: She heard the commotion and she took off and she bolted and she went for help. By the time that help arrived back two women were dead, stabbed to death in their beds. It appears that the suspect came in through a window, but it is a miracle. Thank God she got out of there and that she went for help, otherwise there could be three dead women.

GRACE: Now we were talking about the cigarette butts. What was interesting, Alan Ripka, is the DNA from saliva on the cigarette butts outside the window matches blood probably from defensive wounds by the perp in the home. So cops knew the perp inside matched the cigarettes outside and finally they got a match to this guy, we think, the final result`s not in yet, Eric Copple. It`s hard to beat DNA, Alan.

RIPKA: It sure is Nancy and I think the identity of the killer is a lock. The question is why this happened and how it happened and that`s going to be the big question for the defense counsel in this case.

GRACE: I want to thank all of my guests, especially here in the studio with me, Natalee`s mother, Beth Holloway, now Beth Twitty. My biggest thank you as always is to you for being with us, inviting all of us into your homes and still caring about Natalee`s case.

Coming up, headlines from all around the world, Larry on CNN. To all of you legal eagles celebrating New Year`s again tonight, Lshannah Tovah (ph). Happy New Year! I`m Nancy Grace, signing off again for tonight. I hope to see you right here tomorrow night, 8:00 sharp Eastern and until then, good night, friend.

END

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