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Nancy Grace

Breaking News in Missing Groom Case

Aired June 29, 2006 - 20:00   ET

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

NANCY GRACE, HOST: Tonight, breaking news in the so-called missing groom case. As we go to air, we learn of a proposed settlement a settlement, reached by the bride of the missing groom. We take you live for the latest on that. There is a courtroom showdown. As I said, the missing groom, 26-year-old George Smith disappeared off Royal Caribbean`s cruise ship Brilliance of the Seas on a dream honeymoon cruise and a life was cut short. Long story short, the mystery remains, until now.
And tonight, flag burning. On the eve of July the 4th, tonight we are taking your calls.

But first of all, the missing groom`s family is fighting back.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: There is a significant problem with the cruise industry.

Victims of cruise ship crime, like all other crime victims, deserve to be treated with fairness, with dignity, and with respect.

Please encourage your local representatives to protect U.S. citizens who choose to work or vacation on cruise ships. We need your help.

(END OF VIDEO CLIP)

GRACE: As we go to air tonight, we learn that there is a proposed settlement, a settlement between the bride of the so-called missing groom, George Smith, and his wife, along with the cruise ship. Let`s go straight out to Leslie Snadowsky. Leslie, we have here a press statement of Jennifer Hagel-Smith and it is of a proposed settlement reached regarding the disappearance of George Allan Smith on Royal Caribbean Brilliance of the Seas. What do you know?

LESLIE SNADOWSKY, CNN INVESTIGATIVE REPORTER: Well, unfortunately we don`t know much yet. We don`t know the details of this settlement just that Royal Caribbean wanted to settle basically to let Jennifer move on emotionally and just settle the whole thing. But this has nothing to do with another case that was filed by the Smith family. And that suit alleges that Royal Caribbean intentionally covered up his disappearance to make it look like an accident where they still think foul play was involved.

GRACE: Let`s go straight out to George Smith`s sister joining us tonight, also a lawyer herself, Bree. I know that the family is planning a lawsuit against the cruise ship industry, against Brilliance of the Seas Royal Caribbean. Is this settlement with the bride, Jennifer Hagel-Smith a surprise to you?

BREE SMITH, MISSING GROOM`S SISTER: It`s a complete surprise. And it`s actually very concerning, Nancy, because Jennifer is proposing to settle the wrongful death suit. She`s a trustee of the estate which covers my parents` interest. My parents did not even know that she was negotiating a settlement. They don`t even know the terms of the settlement, yet Jennifer`s attorney sent us a fax today saying that Jennifer had reached a proposed settlement.

GRACE: Let`s go out to Greg McCrary, he is the Royal Caribbean consultant. Greg, what can you tell us about the settlement with the bride?

GREG MCCRARY, VET. FBI PROFILER, ROYAL CARIBBEAN CONSULTANT: I really don`t know much about that at all. I`m really here to primarily talk about the lawsuit that is pending that was filed today. So you`ve got a document I haven`t seen. So you probably have more information than I have.

GRACE: You know what? I`ve just gotten it, Greg. With us Greg McCrary, is the Royal Caribbean consultant. And Bree, I`m sure you have it in your hands. I will give you all what we know right now. This is a saga that has been going on for some time, as you know. 26-year-old George Smith went missing on a dream vacation aboard Brilliance of the Seas, one of Royal Caribbean`s premiere cruise ships. Well, all along the family of George Smith feared there had been a cover-up. Explain, Bree?

SMITH: Well, there has been a cover-up all along. And Nancy, I`m afraid that there`s actually a second cover-up now that`s by Jennifer Hagel. She is rushing to settle with Royal Caribbean without finding what happened to my brother George. If the wrongful death went to trial -- the wrongful death suit went to trial and there were depositions taken and, you know, it progressed along, we would be closer to knowing exactly what happened to my brother, George. Instead, Jennifer, by trying to settle so early, is stopping that information flow. You know, this is awful to my family. Jennifer wants to move on with her life with a large payout, where as, my family wants information as to what happened to George.

GRACE: Question, Bree. How will Jennifer Hagel-Smith, the bride of the missing groom, settling the case with Royal Caribbean. And this does say Royal Caribbean will pay a financial settlement to Jennifer Hagel- Smith. It does say that I`m reading it off page one of a press statement of Jennifer Hagel-Smith. So money is being changed hands. But how will her settlement affect a lawsuit or any type of action by his family?

SMITH: Well, how it affects it, Nancy, is our individual claims, which are for intentional infliction of emotional distress and also for invasion of privacy, you know, are different suits. And we will not be able to interview and have deposed the same witnesses as we would have been able to if the wrongful death case went. As a result, Nancy, we will be challenging Jennifer`s attempt to settle this case. We are not stopping. I don`t know what Jennifer is hiding and what Royal Caribbean is hiding that they feel a need to settle this so quickly, but I know that my family are not going away. We will not be settling. We want the information that a lawsuit will provide, and we will continue.

GRACE: Bree is with us. This is George`s sister. Bree, okay explain this again. What you`re saying is your lawsuit was of a different nature of Jennifer Hagel-Smith`s and you were joining forces, so to speak?

SMITH: Yes Nancy, just for some background, for the past nine months, Jennifer Hagel and her attorney had told us that we would be filing a joint lawsuit. It would be the wrongful death suit for which she`s the administrator of the estate and it would also be my parents and my own individual claims. Well we were told several days ago that Jennifer would not be joining in our individual claims with the wrongful death suit because she said that her goal is to maximize the value of the estate, where as, our goal is to get information. So the interest of the parties conflict, and she would be filing separately.

GRACE: Hold on, hold on, hold on. Bree?

SMITH: Yes.

GRACE: I`ve already alerted the viewers that you are a lawyer.

SMITH: Yes.

GRACE: Okay. So that`s one strike against you. But when you say maximize the estate that sounds like lawyer talk for get more money.

SMITH: That`s right, Nancy. She is trying to get as much money as possible as quickly as possible, and there must be something very big that she`s hiding that she wants to settle this fast.

GRACE: But on the other hand, I don`t know if you`ve gotten this, Bree. But we can fax it to your studio where you are. I got it as I was walking to the set. It also says, though, Jennifer Hagel-Smith will be permitted to review all relevant vessel logs, security reports, door activity with the lock link reports, photographs, security tapes, correspondence to and from the FBI and other law enforcement authorities. Okay. What am I hearing?

SMITH: Well, the information that Jennifer will, apparently, be able to get is Royal Caribbean produced evidence that was not produced under oath. What we need, Nancy is to get into court. We need sworn testimony. We don`t want to rely on their statements that they produced in anticipation of litigation. We need sworn testimony. We`ve heard their spin for a year now. Now, we want the truth.

GRACE: This also says Hagel-Smith is creating a charitable foundation that will be in the name of her husband. It will be dedicated to his memory. That Royal Caribbean agrees to make a contribution to the organization. I don`t know if the entire estate is going to become part of a charity.

SMITH: Well that`s what I`d like to know, Nancy. Because you know my family is not after money. I think that if Jennifer was not after money, then she would put every cent of that settlement into this new institute for my brother. However, something tells me that that`s not what`s going on here.

GRACE: Let`s go out to the lines. Joann in North Carolina, hi, Joann.

JOAN: Hi, Nancy. I want to know why the family is objecting so much to Jennifer getting the money.

GRACE: Good question. Old on, I think that`s another viewer that`s trying to get in on the action in the background. Let`s go to Bree. Did you hear that question?

SMITH: Yes. The reason why is we need the information that would be provided through the discovery process of the suit. We haven`t been given any information from Royal Caribbean. We haven`t been given any information from the FBI. The only way for us to find out what happened to my brother is to get the information that would be provided through the lawsuit. So by Jennifer settling so early for money, my family will not be able to find out what happened to my brother almost a year ago today.

GRACE: Take a listen to what another victim of cruise line crime has to say.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: On October 20, 2004, I was sexually assaulted in a ladies` restroom by a drunken passenger while another passenger took pictures and two Royal Caribbean employees watched and did nothing. I reported my crime. I reported it to the FBI. Royal Caribbean harassed me, continued to harass me, made false statements about me and about my situation in the media. Quite frankly, they have done everything possible to make me go away. When you have Royal Caribbean or any cruise line, for that matter in charge of security, it`s like having the fox watch the hen house.

I believe that if I don`t stand up and voice what happened to me as long as -- as well as what has happened to other passengers including a 12-year-old girl who was raped aboard a cruise, a 15-year-old girl who was raped aboard a cruise, if these things were going on at Disneyland, Epcot, Sea World, MGM in Las Vegas, America would not stand for it.

(END OF VIDEO CLIP)

GRACE: Tonight, we are highlighting the issue of cruise ship crime. As a part of that breaking news, the bride of the so-called missing groom, Jennifer Hagel-Smith, apparently, in the last few moments, has reached a settlement, a monetary and financial, a money settlement, with Royal Caribbean cruise line. With us tonight, George Smith`s sister, Bree, who is also an attorney. This case has had far-reaching implications, all the way from the Mediterranean where it happened to Washington, D.C. Well, someone is brave enough to do something about cruise ship crime, other than sweep it under the rug. Joining us tonight, representative Christopher Shays from Connecticut, he was trying his best to make a difference. Representative, thank you for being with us.

REP. CHRISTOPHER SHAYS, (R) CONNECTICUT: Good to be with you.

GRACE: Explain your legislation.

SHAYS: Well, we`ve had hearings now -- we`ve had two since this case broke. I just say that George Smith IV, his case is what really brought this before us. What that happened was that other people watched our hearings, and they stepped forward. So people like Ken Karber who lost his daughter on a ship, didn`t know he lost his daughter on a ship. The ship knew. Carnival Cruise knew that she was missing but never told any of her family members. He had to find out by hiring a private eye to find out what happened to his child.

GRACE: Incredible. Incredible. Bree, have you guys had to hire a private eye?

SMITH: We are in the process of retaining Vito Colucci of Colucci Investigations in Stanford, Connecticut. We gave the FBI a year to solve the crime. But unfortunately, because of Royal Caribbean`s contamination of the crime scene, that case still has not been solved. We`re actually begging the viewers today, if you don`t feel comfortable contacting the FBI or my family, please contact Vito Colucci. We need everyone`s help. It`s a year now that we`ve been going through agony just trying to find out what happened to George. No family should go through this. We beg you to either contact my family or Vito Colucci.

GRACE: Speaking of Vito, he is with us tonight. Vito, when it comes to the George Smith case, what have you been able to do to further the investigation?

VITO COLUCCI, PRIVATE INVESTIGATOR: Well what I`ve been doing up to this point Nancy, I`ve just been assisting them over the last several months. I`m officially hired now to do my own investigation with my staff. In saying that, we start from square one again, okay? We`re going to be working parallel with the FBI. Different set of eyes and ears. As we obtain any information that`s important, it will be given that same day to the FBI to continue to help them out in their part. This has been a sorry case. In meeting with the Smith family I`ve had Mr. Smith, George Smith walk into my office and a simple question like, how you doing today, George, he breaks up and cries. So this has been a horrible situation. And now these events of the last several days, has been terrible for them. But we`ll get to the bottom of it, Nancy, I assure you that.

GRACE: Let`s go to the lines. Ken in California. Hi, Ken.

KEN: Yes. My question is by Jennifer settling -- reaching a settlement, what does this say about her character? What does this say about a wife finding the truth about what happened to her husband? Does this some way make her look bad?

GRACE: Well you know what, in a way it does. But on the other hand a lot of people have always speculated that Jennifer Hagel-Smith was out for money. But we don`t know that. We don`t know what she has been going through, what she has been suffering, how much she has cooperated with the authorities. It`s all been kept very tightly guarded. What about it, Bree?

SMITH: Well all we know is that Jennifer, apparently, provided a wealth of information to the FBI and she did not provide that information to my family. So we know that she has information about my brother`s death that she has not provided to us. And that`s very suspicious Nancy. And now to reach a settlement and to be perfectly frank with you, she told us all along that she did not want to be deposed. Now, why did she not want to be deposed, Nancy? What was her behavior that night that she wants to cover up so much? I hope that the FBI knows everything that she knows and that her selective memory is not a figment of her imagination.

GRACE: Now she`s also made the statement that in addition to suffering over the loss of her groom, that she`s actually lost jobs over being part of this case. Response, Bree?

SMITH: From what I understand, she is reemployed in Boston. She has moved on with her life.

GRACE: When you say "moved on with her life," what do you mean? Got a new job?

SMITH: I mean she has a new job. She has a new car. She has a new apartment filled with my brother`s things. You know, things are different for her than they definitely are for my family who are fighting every day to find out what happened to my brother.

GRACE: Quick break, everyone. With us tonight, the sister of the so- called missing groom, George Smith, and breaking news. As we go to air tonight, we learn of a proposed settlement between the bride of the missing groom, Jennifer Hagel-Smith and the cruise line, Royal Caribbean. Liz let`s go to tonight`s case alert.

Police say surveillance video shows a car rented by Reno millionaire Darren Mack just down the street from a family court judge`s office the very day the judge is shot in the chest. Darren Mack facing charges of attempted murder in the judge shooting and murder in the stabbing death of Mack`s own wife. Meanwhile, a July 11th preliminary hearing set for Mack today. Mack`s defense demanding a change of venue claiming Mack cannot get a fair trial in his home town, Washoe County.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

SMITH: My brother George was 26 years old when he was murdered on a Royal Caribbean cruise ship.

They`ve shown us they will cover up crimes at any cost.

They should not have the option to do what they feel. There has to be laws out there that make Royal Caribbean and the other cruise lines follow a set pattern of what is done when a person goes missing, and possibly, murdered.

(END OF VIDEO CLIP)

GRACE: Welcome back, everyone. Breaking news. As we go to air tonight, we are just learning that there is a proposed settlement in the so-called missing groom case. The settlement is between Royal Caribbean cruise line, their premiere ship, Brilliance of the Seas, and the wife of the missing groom, Jennifer Hagel-Smith. It is a money settlement. Royal Caribbean will pay a financial settlement. They are creating a charitable foundation, Hagel-Smith is, in the name of George Smith. Royal Caribbean agrees to make a donation.

What are the terms of the settlement? How much money is on the table, and why is this in some way to head off a lawsuit by George Smith`s family? All of those questions aside, with us tonight is a very special guest, Representative Christopher Shays out of Connecticut, he is a congressman in that jurisdiction, who has introduced a bill to protect American citizens on cruise lines all over the world. Again, thank you for being with us, sir. What do you specifically hope to achieve with the legislation you introduced?

SHAYS: Well, first off, we want to have a better sense of what kind of problem exists out in the high seas. For instance, the cruise industry tells us there are about 57 assaults every year. We don`t know if that`s an accurate statistic or not. So what we do is we require that they provide statistics quarterly to the Department of Homeland Security. We require that they have people capable to investigate crimes, and they have the proper equipment necessary to investigate those crimes. And we require, finally, that within four hours of any crime being committed involving an American citizen that U.S. authorities are notified so that if U.S. authorities want to, they can step in and investigate.

GRACE: Representative, so many people all around the country thank you, than you very much for what you are doing in Washington. Joining us now maritime attorney Jeffrey Maltzman. Jeff, how do you respond to allegations that Royal Caribbean is trying to cover up?

JEFFREY MALTZMAN, MARITIME ATTORNEY: Well Nancy, thank you for having me on. Frankly, it doesn`t surprise me that the case is settled. From everything I`ve seen and all the facts that I think have come out over the last year, it appears as though the company did everything they could to assist Jennifer from the minute this incident first happened. They had security officers and a female guest relations officer accompanying Jennifer as she went through the investigative process. They sealed off the crime scene, they contacted the FBI, they contacted the Turkish police. So it wouldn`t surprise me that Jennifer who was there on the scene and able to see what Royal Caribbean did, recognizes that Royal Caribbean isn`t to blame and wants to settle the case.

(BEGIN VIDEO CLIP)

UNKNOWN: Victims of crime on cruise ships and those who have lost loved ones under mysterious circumstances have been unable to obtain justice due to complex jurisdictional issues and a lack of accountability. This legislation takes important steps to address those barriers. First, it requires that crimes against Americans on board cruise ships must be promptly reported to authorities within four hours and provides penalties for failure to make those reports. It also requires that sufficient procedures and equipment be in place to conduct investigation of crimes so that crucial evidence is not lost due to delays, ineptitude or lack of necessary equipment.

(END OF VIDEO CLIP)

(COMMERCIAL BREAK)

GRACE: Breaking news tonight. We have just learned that the bride of the so-called missing groom, Jennifer Hagel-Smith, has reached a settlement, a money settlement, with Royal Caribbean cruise lines, whose premiere ship Brilliance of the Seas, was the ship on which George and Jennifer Hagel-Smith embarked on their honeymoon. Straight out to Bree Smith who is joining us, this is George`s sister. Do you plan, Bree, to challenge this settlement?

SMITH: Yes, we do. And Nancy, I actually have several comments for Mr. Maltzman. The first of which is, if your company did nothing wrong, why are you paying Jennifer Hagel anything? My second comment is according to the fax that we just received, it says the information will be provided upon completion of the settlement. Why do we have to settle with your company in order to get information as to what happened to my brother on that ship? You should be forthcoming with that information so my family can find out who murdered George and get justice for him.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

SHAYS: They clearly don`t cooperate. And what that tells you is the cruise line industry is more interested in just kind of getting rid of it instead of dealing with it. Sadly, if you want to commit the perfect crime, it may be that`s where you do it, on a ship.

(END VIDEO CLIP)

GRACE: Breaking news tonight. We have just learned that the bride of the so-called missing groom, her name, Jennifer Hagel-Smith, has reached a money settlement with Royal Caribbean cruise line. One of their premiere ships, "Brilliance of the Seas" is the ship on which these two planned a dream honeymoon throughout the Mediterranean. He went missing.

Was there wrongdoing on behalf of the cruise ship industry? Was there a cover-up? Those questions may go unanswered now, as a result of this settlement. But what`s to stop a grieving widow from reaching a settlement?

We have just received confirmation from Royal Caribbean announcing the settlement with Jennifer Hagel-Smith. So it is confirmed. Interesting. In the announcement from Royal Caribbean, it clearly states the terms of the settlement are subject to approval by a Connecticut probate court.

With us here, Bree Smith. She vows to fight this settlement. But why, exactly, are you opposed to the settlement with the bride?

SMITH: The bride is settling as administrator of the estate. And as administrator of the estate, she has control over my parents` claims under my brother`s estate.

So by her settling, Nancy, that means she`s settling my parents` claims under the wrongful death suit, as well, which precludes my parents from finding out the information that would have been available if the wrongful death suit had gotten to court, such as sworn testimony, which is what we need in order to find out what happened to George.

GRACE: Let`s go out to Jeffrey Maltzman, maritime attorney. Any response to the claims by Bree Smith, George`s sister?

MALTZMAN: Well, first off, Bree, I don`t want to debate you on this. My heart goes out to you and your family. I know you`ve suffered an inconsolable loss. I don`t work for Royal Caribbean. I don`t know why you`re angry at me or, frankly, the cruise line.

It`s the FBI`s job to figure out if a crime has happened here. It`s not a cruise line`s job to be "CSI" and try to figure those types of things out. And, frankly, most people who hear the facts and story that`s come out over the last year don`t assume that a murderer or a crime did occur.

GRACE: Why? Why, Jeffrey? I`ll step in. Because I find it very unusual that there`s blood inside the stateroom. He fell or was pushed off the balcony, clearly, and the door was closed.

MALTZMAN: Well, Nancy, I don`t know how you can say "clearly." First of all, it`s my understanding...

GRACE: Well, that is what the Royal Caribbean consultant...

MALTZMAN: Nancy, let me finish.

GRACE: ... who was with us tonight told me on-air. That`s why I say it. Do you deny it?

MALTZMAN: Nancy, let me respond to your first question first. First off, the blood that you talk about in the room -- and, of course, I`ve not been in the room -- but whatever small amount of blood that was there was apparently a small enough amount that Jennifer Smith, when she woke up in the cabin, didn`t notice it, that the Royal Caribbean employees who helped Jennifer Smith back to her cabin and took her to her cabin that evening didn`t notice it.

So this wasn`t a bloody crime scene or anything like that. You know, people do things on vacation. People drink. People have to be responsible for their own actions. I`m not going to say a crime didn`t occur; I`m not going to say a crime did occur. But most people who hear these facts I don`t believe are going to jump to the conclusion that there was a murder onboard that ship.

SMITH: Nancy, can I cut in here, please?

GRACE: Sure.

SMITH: I think that`s a completely false statement. I think the vast majority of Americans and people worldwide think that a murder was committed on that night.

And Mr. Maltzman can talk and lie through his teeth about the fact there were not any suspicious circumstances, but we know differently. The FBI has a very open and active investigation still. And millions of dollars are currently being spent on this, and it`s all because Royal Caribbean did not seal off that crime scene like they said they would.

They contaminated it, so when the FBI finally got onboard, they had a very difficult job getting the evidence they need to prosecute this crime.

MALTZMAN: Nancy, it`s very easy to make allegations in the press. It`s very easy to make allegations in a lawsuit. It`s more difficult to prove the facts in a court of law, and I think the facts will speak for themselves.

(CROSSTALK)

GRACE: Well, hold on. I got a question, guys. And this is to Bree. Bree, you state that many, many people believe a murder was committed. Just give me, in a nutshell, why -- I know you believe that. But why? What evidence do you know, Bree, that supports your allegation that a murder went down?

SMITH: Well, the evidence is so far-reaching, Nancy. First of all, there was more blood in the cabin than Mr. Maltzman would like to admit. We have crime scene photos.

Additionally, there was a substantial amount of blood on the overhang. There were also sounds of fighting coming from that cabin. We know that three of the four individuals that brought my brother back to his cabin have taken the Fifth Amendment. I mean, read the writing on the wall, Mr. Maltzman. It doesn`t take a genius.

MALTZMAN: Well, frankly, I don`t understand what relevance blood on the overhang has. If somebody falls off a balcony and strikes the overhang, they`re going to bleed.

GRACE: But what about the argument that ensued just before he went missing, a giant thud, raised voices, and now he`s dead?

MALTZMAN: Well, I`ve heard reports of an argument. I`ve heard the passenger in the cabin right next door on the media saying that what he heard sounded like loud partying. I`ve heard sounds that sounded like thuds and furniture being moved. But it`s unclear whether that was being done by George alone in the room or George with other people in the room. And I certainly wasn`t there, and...

(CROSSTALK)

GRACE: Well, even if there was a murder, I would assume that someone else was in the room.

MALTZMAN: If there was a murder in the room, I would certainly hope that the police could solve it. And I believe, from everything I`ve seen and heard, that what Royal Caribbean did, sealing off the cabin, calling the FBI, calling the Turkish police, calling the U.S. State Department, all within an hour, was completely and fully appropriate.

GRACE: OK, hold on.

SMITH: That`s not accurate.

GRACE: Go ahead, Vito.

COLUCCI:: Nancy, you know, Mr. Saltzman (sic) is talking about allegations we`re making. We`re not making allegations. We were reading from Royal Caribbean`s own report that seven of their officials walked through that cabin, untrained officials, taking pictures, OK?

They gathered up all the clothes. How about trace evidence of any blood? And he`s saying -- these are not allegations, Nancy. These are from Royal Caribbean`s book on what they did.

And then to have a captain say that Mr. Smith bumped his nose, got a bloody nose, walked outside for air -- this is a good investigation? In my 30 years of police and private detective, this is a horrible. Seven people walked around that cabin with a little camera taking pictures on the crime scene. That`s not allegations; that`s what happened, Nancy.

GRACE: And to...

MALTZMAN: And that happened after the FBI was there and after the Turkish police was there.

SMITH: That is not accurate.

(CROSSTALK)

GRACE: To Greg McCrary, with the Royal Caribbean cruise line consultant, Greg, isn`t it true that the captain of the ship deemed this to be an accident?

MCCRARY: I believe that was his opinion. And, certainly, really, his opinion doesn`t matter. What he thinks doesn`t matter.

GRACE: The ship`s captain doesn`t matter?

MCCRARY: No, his opinion about what happened in there doesn`t matter.

GRACE: Why?

MCCRARY: What matters -- because what counts are the facts and what the criminal investigation shows. What you think and what I think and Bree thinks, none of that matters.

GRACE: But he`s in charge of the ship...

MCCRARY: What matters are the facts.

GRACE: But he`s in charge of the ship and the investigation.

MCCRARY: Well, that doesn`t give him clairvoyant powers to know what happened. He may have an opinion.

GRACE: That`s like saying what the chief of police says doesn`t matter. That`s a disconnect. That`s not making any sense.

MCCRARY: No, no, no, no. What the chief of police was -- the deputy chief, Clete Hyman, is a witness. What he says is very important. What he heard, what he said he heard, those things are important.

The captain wasn`t there. Now, he`s entitled to his opinion, but that doesn`t mean, you know, that that`s what happened. What we have to do is concentrate on the facts.

The other thing I would say to Bree briefly, if she is convinced -- and apparently she is -- that this is a murder and a cover-up, covering up a homicide is a felony. It would be a federal felony in this case, tampering with evidence, obstruction of justice (INAUDIBLE) of a felony.

If she has any of that information, she needs to make it available to the FBI right away, because they need to investigate that. And they haven`t been investigating that, so...

GRACE: Quickly to Jeffrey Maltzman, who is a maritime attorney. If no crime was committed, if there was no wrongdoing, why settle?

MALTZMAN: Well, why settle for lots of reasons? I mean, lots of different cases get brought by lots of different people. It`s obvious that Jennifer...

GRACE: Yes, that`s not what I asked you.

MALTZMAN: It`s obvious that Jennifer, from what we`ve heard in the media, felt that the company should have and could have done more to try to assist her. I think there`s lots of reasons to try to reach an amicable resolution.

GRACE: But why did they settle? If you keep playing there was no wrongdoing, no negligence, why settle?

MALTZMAN: Nancy, many lawsuits don`t have merit. Only one side can win, but 98 percent of all lawsuits settle.

(CROSSTALK)

GRACE: I`m asking you about this lawsuit.

MALTZMAN: I wasn`t involved in these negotiations. I`m not going to answer that.

GRACE: Hold on. Let`s go to Ray Giudice. Ray, why did Royal Caribbean settle this? And why was it kept secret from the family?

RAY GIUDICE, DEFENSE ATTORNEY: Nancy, it`s good tactics on their part. You want to divide and conquer. I agree with Bree.

Her case and her family`s case would have been stronger if it had been filed in tandem with the wife`s case. They could share discovery, resources, tactics. But the insurance company or the cruise line decided to buy half of this case out. Tactically, they did the right thing, smart business.

(NEWSBREAK)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

JENNIFER HAGEL-SMITH, HUSBAND LOST ON CRUISE SHIP: I lost my husband, George, during our honeymoon cruise last summer on July 5th. When the shock wore off and the enormity of his loss set in, we quickly learned that this was not an isolated event. We were not alone.

In fact, I am standing here today with other victims who have their own stories to tell. And though every tragic story is different, each victim shares a similar thread of frustration and sadness.

(END VIDEO CLIP)

GRACE: Breaking news: That lady, the bride of the so-called missing groom, has reached a money settlement. We have just learned as we go to air tonight -- we have just received confirmation from Royal Caribbean cruise line confirming that money settlement.

Straight out to Bree Smith, George Smith`s sister, the family had a lawsuit pending which was going along hand-in-hand with Jennifer Hagel- Smith`s lawsuit. Do you really believe that her settlement is going to ice your case? Is it over?

SMITH: No, I don`t think it`s over. We are going to fight to make sure that that proceeds. That`s how we can get information as to what happened to George, and we care what happened about George. And we will continue to fight for him.

I have a challenge for Royal Caribbean, Nancy. We actually filed our individual claims today. Standard procedure for Royal Caribbean and the other cruise lines is to move to dismiss the suits so that they don`t even have to ever go to court, that people won`t know what they did wrong.

Well, I challenge them in our case not to move to dismiss these claims. We want you to swear under oath what you say in your media press releases and on television. We want to know that under oath these statements are true, because, to be quite frank, they change every time they speak.

GRACE: To Nicole Deborde, veteran defense attorney, do you think there`s a snowball`s chance in Miami that that will ever happen?

NICOLE DEBORDE, DEFENSE ATTORNEY: I think this case gets more and more difficult to solve as time goes on. Lawsuit settlement or no lawsuit settlement, as the case ages, you lose physical evidence, you lose eyewitness ability to recall. There are a variety of reasons why, unfortunately, as time passes, the true answers to this case become less likely to find.

GRACE: Tell it, sister.

Ray Giudice, the oldest case I ever had to put together was 14 years old. That is very difficult to do. Nicole is right: The longer it takes, the more difficult it will be to solve the case. That`s a fact.

GIUDICE: Nancy, in some regards, the Smith family may have been better off filing this lawsuit a long time ago when depositions, which aren`t going to take place for five, six months in a discovery period, that testimony would be six months old instead of a year and a half old.

However, I mean, it`s their lawsuit, and they can do what they like. I can`t control that. But the faster the better for the plaintiffs, because witnesses` statements and evidence -- and we`ve all seen it in criminal cases -- it`s no different in civil cases. Memories fade.

GRACE: And the anniversary of the date George Smith went missing, the so-called missing groom, is July 5.

Out to Bethany Marshall, Bethany, what do you make of the settlement?

BETHANY MARSHALL, PSYCHOANALYST: Well, I think it`s important to note that, just because she`s settling for money doesn`t mean that she does not care about her deceased husband. Making a settlement and not caring are two different things.

And, also, people grow -- well, first of all, because that would mean that everyone who settles a wrongful death lawsuit doesn`t care about the deceased relative, and that`s simply not the case.

But also, everybody grieves in different ways. And the family of George Smith wants to make meaning out of his death, protect other people in these kinds of situations, and they want to know what happened. And they have a right to, and that`s what`s meaningful to them.

But for Jennifer, what might be meaningful to her is to establish a new life and move on.

GRACE: Response, Bree?

SMITH: How can she move on with her new life when she doesn`t know how her husband of 10 days was murdered? That`s my response: Why does she not want to know what happened to George?

GRACE: Well, you know, Bree, do you believe that she does know? Do you believe the FBI or, possibly, Royal Caribbean has told her information that has been withheld from you?

SMITH: Well, all I know is, like I said, Nancy, that she provided information to the FBI that she did not provide to us. You would think that she would provide this information to the sister and the parents of a missing person, but she didn`t.

You know, one minute, it`s selective memory. The next minute, it`s some supposed FBI gag order that we are told didn`t actually exist. So we don`t know what she knows that we don`t know, but we would like that information. And that would have come out in the wrongful death suit.

GRACE: Did you know this was happening? Did you know about the settlement?

SMITH: No, that`s actually what`s so awful, because she`s actually a beneficiary of the interest of my parents. And in negotiating with Royal Caribbean, she never even told my parents that she was negotiating a settlement.

GRACE: When did you learn about the settlement?

SMITH: Today.

GRACE: Cruise line crime, Clark.

CLARK GOLDBAND, NANCY GRACE PRODUCER: It`s hard to believe, Nancy, but since we changed into Y2K, 2001, 2002, `3, `4, `5, just 305 crimes reported to the FBI. Of that, almost half sexual assault; 20 percent assault; and 10 percent -- that`s over 30 people -- have gone missing on cruise ships.

And you know, of course, Nancy, cruise ship crime is notoriously underreported. May change with this new law.

GRACE: Let`s go to the lines. Jerry in Indiana. Hi, Jerry.

CALLER: Hi. What I`d like to know is, if they`ve been married for such a short period of time, could you get an annulment so that the parents could stay in the suit?

GRACE: Hmm, interesting legal question. Ray Giudice?

GIUDICE: As wife, she is the trustee, the administratrix of the estate. She has the absolute authority to settle this case.

As Bree was saying, I think the only right they have to challenge will be in front of the probate courts in the state where the case will be settled, which I believe is Connecticut, where they can raise the parents` interest. However, I do not think that will be successful, but, obviously, that`s Bree`s intentions.

GRACE: Oh, I don`t know about that. I don`t know if a probate court is going to be so willing to cut off an entire family`s interest in a lawsuit settlement. We`ll see about that. I predict a probate battle.

Katherine in South Carolina, hi, Katherine.

CALLER: Hello. I`m wondering about -- didn`t Jennifer hire Dr. Henry Lee to investigate the crime scene? And I`m wondering if he finished investigating and what he found.

GRACE: OK. I`ll throw that straight to Bree.

Bree, what do you know about that?

SMITH: Well, Dr. Lee was retained. Unfortunately, by the time Dr. Lee did get on the boat, which was numerous months after my brother was killed, most of the evidence was already gone. So, you know, although he`s the best in the world and we can`t thank him enough for what he`s done for my family, unfortunately, what was left at the crime scene was very minimal.

GRACE: And I want to reiterate there is another facet here to the settlement. Hagel-Smith is continuing to offer a reward of $100,000 for information regarding circumstances surrounding George Smith`s death.

We will stay on the case, as well. Stay with us.

(COMMERCIAL BREAK)

GRACE: Let`s all celebrate July the Fourth by going out and burning the flag. Yes, you heard me. And according to our Congress, it`s a-OK.

Let`s go out to Bill Schneider, CNN senior political analyst. Bill, what`s going on in Washington?

BILL SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Well, what`s going on is that an amendment to the Constitution which would have allowed Congress, would have given Congress the power to prohibit the desecration of the United States flag was brought up in the Senate of the United States.

It needed a two-thirds majority. It got 66 votes, which was one vote shy of the majority it would have needed to pass. It passed the House of Representatives by a two-thirds majority last year.

If it had gotten 67 votes in the Senate, it would have gone to the states. Very likely, three-quarters of the states would have ratified the amendment and it would have been in the Constitution so Congress could ban flag burning.

But, now, it lives to fight another day.

GRACE: You know, if I had heard it anywhere else but from Bill Schneider, I wouldn`t believe it.

Clark, what can you burn in America?

GOLDBAND: Well, here`s what you can`t burn in America, Nance. You can`t burn U.S. currency. That`s a big no-no. A cross, if you`re trying to scare someone, mail, you can`t burn that. That`s illegal, destroying mail, and trash. So you can`t burn trash, but you can burn the flag.

GRACE: So you can burn the flag, but you can`t burn a dollar bill.

GOLDBAND: Oh, don`t do that.

GRACE: Congress, come and get me. Can you believe that, on the eve of July the Fourth, you can burn the American flag? If Bill Schneider hadn`t told me, I wouldn`t believe it.

Tonight, we remember Marine Private First Class Ryan Winslow, 19, killed, Iraq. He hails from Jefferson, Alabama, and leaves behind a mother, father and sister. He dreamed of joining the police narcotics SWAT team. Ryan G. Winslow, 19, American hero.

Thank you for being with us tonight, inviting us into your homes. Good night from the New York control room. And a special good night from our littlest crime fighter, our E.P.`s new baby (INAUDIBLE) who recently took the rap for his daddy`s illegal right turn.

Nancy Grace signing off for tonight. See you here tomorrow night, 8:00 sharp Eastern. As we head into July the Fourth weekend, God bless America. Good night, friend.

END