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Nancy Grace

How Much Was Anna Nicole Worth?; Search for Madeleine McCann Continues

Aired May 18, 2007 - 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. Cover girl Anna Nicole Smith`s fortune, her will and alleged assets just made public. Where`s the money? Tonight, have the cover girl`s assets been traced to the Bahamas? Cash in bank accounts, diamonds and other jewelry in safe deposit. And two homes could top $2 million. So, tell me, why were these assets specifically omitted in court documents? Are cover girl Anna Nicole Smith`s assets being plundered with her in the graveyard? And what about her sole heir, 8-month-old baby Dannielynn?
And tonight, a beautiful 4-year-old baby girl on a luxury resort vacation with her entire family vanishes from her own bedroom, after parents leave the children alone to attend a dinner party. Tonight, did the chief suspect maintain a secret hidden room in his home? And why has he been released? With over 55 million Internet hits in the find baby Maddie site, the world watches and wonders why was she left alone. And tonight, that reward topping $5 million to find baby Maddie.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Millions have joined the search for 4-year-old Madeleine McCann, missing now for two weeks from a luxury vacation with her family. findmadeleine.com set up by the McCann family to aid the search for Maddie receiving over 65 million hits.

Rewards offered by businessmen, famous athletes and ordinary individuals total more than $5 million. Maddie vanishes from a bedroom after her parents leave her alone with her 2-year-old twin siblings to go to dinner. Investigators focus on the area near the resort where Maddie went missing. Police Tuesday identified 33-year-old Robert Murat as a formal suspect.

But said they didn`t have enough evidence to charge him. Maddie`s parents, Kate and Gerry, criticized for leaving the children alone.

(END VIDEOTAPE)

GRACE: Good evening. I`m Nancy Grace. First, Anna Nicole Smith`s estate. Are millions hidden in the Bahamas?

(BEGIN VIDEOTAPE)

GRACE: As everyone is circling about Anna Nicole Smith`s will now made public, we now get a list of assets, and you know what, I don`t believe that list of assets. I do not believe that all of her personal property amounted to just $10,000. This woman had all of those designer dresses, all that jewelry, the cars, the furniture. I`m not buying it.

UNIDENTIFIED MALE: Only $10,000 listed? Like you said, what about the dresses, what about the Trimspa negotiations and contract she had.

UNIDENTIFIED MALE: Did Anna Nicole Smith really die a poor little rich girl? A report says Anna Nicole is actually worth millions, an estimated $2 million to be exact. All this in bank accounts, diamonds, multiple homes, the controversy deepens over the cover girl`s fortune.

(END VIDEOTAPE)

GRACE: I`m Nancy Grace, I want to thank you for being with us tonight. To the fortune -- the so-called fortune of Anna Nicole Smith, last week her will and alleged assets made public in a court of law document. Where`s all the money and if it is true that all of these assets are somewhere hidden in the Bahamas, why wouldn`t they listed on the official court documents? And who`s responsible for preparing the list of assets? Straight out to investigative reporter Art Harris.

Art, you`ve been in the Bahamas trying to track the money. What have you learned?

ART HARRIS, INVESTIGATIVE REPORTER: Well, Nancy, on my Web site artharris.com I reveal tonight that there are about $2 million worth of assets in the Bahamas. But I hate to disappoint you. Nothing nefarious going on here. It`s just that the first probate was filed in California, a preliminary estimate of assets there, her house, balance, $710,000, another $10,000 in cash there, filed just so they could set the filing fee.

But there was always a contemplation opening a second probate in the Bahamas, when people live in two places, you have two probates. There I`ve learned there is the house, Horizons, an estimated $1 million about. But it could be worth more if it has appreciated.

She has diamonds in bank accounts. She has the boat, the yacht that was bought when she was in the hospital, worth about $150,000. That will be listed when probate is filed there. Also, a high six-figure bank account, my sources tell me, in the Bahamas.

But what people forget is when she moved from Los Angeles, Nancy, that`s when she moved her money to the Bahamas. So it`s natural that`s where the money was all along. She had those high fees from photo shoots.

GRACE: Question, Art Harris. I don`t know why you think -- take joy in something nefarious, as you say, happening. The only person that is going to be hurt -- that stands to be hurt in all of this is an 8-month-old baby girl. I`m not quite sure what you`re insinuating. But I know this much.

HARRIS: Nancy.

GRACE: . when you are.

(CROSSTALK)

GRACE: As I was saying, when you file official court documents in which you list the assets and you know of other assets, just because they`re in a different jurisdiction does not mean, to my understanding, they should not be on that formal court document assets.

HARRIS: Well, Nancy, probate lawyers tell me that you`re wrong.

GRACE: Well, you know what, why don`t we go to a probate lawyer. Why don`t we go out to Burt Levitch, trust and estates attorney. Why would you not list all of the assets, unless you`re intending to file an addendum, Burt?

BURT LEVITCH, TRUST & ESTATES ATTY.: Nancy, the documents that were filed here in the Los Angeles Superior Court were pretty clear in stating that Anna Nicole was a nonresident of California. And the address that they listed as her final residence was the Horizons residence in Nassau, Bahamas.

So what the California court is interested in doing is having an inventory filed of the California assets. And that essentially makes this an ancillary proceeding. One of the things that surprised me when this document was filed on Monday was that we didn`t hear of a primary probate filing.

But now your investigative reporter has learned of the Bahamas action and that`s beginning to fill in some of the gaps in this picture.

(CROSSTALK)

GRACE: I`ve got a question. Why -- if her primary residence is in the Bahamas -- was in the Bahamas, why would she file a California probate?

LEVITCH: In most jurisdictions, the primary probate can govern all of someone`s financial resources. But the one exception to what the primary probate can cover is real estate.

So it`s necessary for the California courts to open an ancillary jurisdiction probate here in California, specifically to dispose of her residence. And I`m guessing that the $10,000 listed in the way of, quote, "personal property," is really the tangible personal property that may have been left in or around the house out here in California.

GRACE: OK. So it`s typical to file two different probate matters, Burt Levitch?

LEVITCH: Yes, it is, Nancy.

GRACE: I want to go back to Art Harris. Art, how does the court double check -- how does the court trace all the assets you have discovered about jewelry and diamonds and safe deposit boxes? I`m also interested in not one, but two residences in the Bahamas. Is that second residence on which she made a down payment, is that listed and what about cars and other personal property?

HARRIS: Yes. Sure. Nancy, nothing has been listed yet in the Bahamas. My sources were telling these are some of the things that will be listed when Howard K. Stern files the probate, the will in the Bahamas after he is officially declared an executor of the estate in California June 19th.

That`s when it will move to the Bahamas as earlier anticipated. And a Bahamian judge actually suggested that as the protocol. .

GRACE: Let`s go out to the lines. Martha in Tennessee. Hi, Martha.

CALLER: Hi, Nancy. I appreciate you being strong and keeping your stand.

GRACE: Well, let me tell you, Martha, it`s tough. What`s you`re question, dear?

CALLER: Well, we appreciate it.

GRACE: Hey, Martha, you`re calling from Tennessee?

CALLER: Yes.

GRACE: What about Mary Winkler, the preacher`s wife getting that light sentence? It looks like she`s going to get the kids back, too.

CALLER: Yes. That`s not right.

GRACE: Tell it. OK. Back to Anna Nicole. Go ahead, dear.

CALLER: No. I want to know, why is Howard still the executor of the will, considering he had a personal relationship with her?

GRACE: Let`s go back out to Burt Levitch, trust and estates expert, joining us out of L.A. When you have a personal relationship with someone or you may end up taking under the will or taking, as the executor of the will, is that not a conflict, Burt Levitch?

CALLER: It certainly presents a potential conflict. But keep in mind that each one of us has the ability to say who we want to administer our estate. And back in 2001 when Anna Nicole signed this will, she obviously had a relationship of some sort with Howard Stern and decided that he would be the best person to administer her estate.

And she, for whatever reason, chose not to update up that will following the birth of her daughter, the death of her son and that left Howard in place.

GRACE: Let`s unleash the lawyers. Joining us tonight, civil rights attorney, child advocate, Gloria Allred. Also with us, veteran trial lawyer, defense attorney Sandy Schiff in the New York jurisdiction. And out of Austin, Texas, Courtney Anderson (ph).

To you, Gloria Allred, let`s talk about Dannielynn, the likely heir, since it is going to go intestate -- the will is going to be declared invalid I would think for various reasons. To Dannielynn, shouldn`t there be someone that doesn`t have a dog in the fight, nobody that`s going to take under the will at all to safeguard her rights, Gloria?

GLORIA ALLRED, CIVIL RIGHTS ATTY., CHILD ADVOCATE: Well, yes, and I think that that`s going to be Larry Birkhead, her father, because to the best of my knowledge, I haven`t seen any reports that Anna Nicole left him one red cent. And therefore, he, I think, is in a position to be the guardian of her interests in this estate litigation.

GRACE: Well, you`re absolutely right. He`s totally not named in the will. He`s not named outside the four corners of the will, Gloria Allred. But to you, David Caplan, celebrity journalist, hasn`t he made a request to be a special.

DAVID CAPLAN, CELEBRITY JOURNALIST: Administrator, yes.

GRACE: Yes.

CAPLAN: Yes. Larry Birkhead actually yesterday in Los Angeles filed a petition to be the special administrator of Dannielynn`s guardianship and estate.

GRACE: And you know, question David Caplan, what is there to be gained from this point on? Is there copyrighting? Is there using her name in likeness? What is there for anyone to gain from this juncture forward?

CAPLAN: Yes, I mean, we`ve already discussed sort of Anna Nicole`s existing assets. But going forward, the Anna Nicole Smith brand is huge. And the potential really is millions and billions of dollar, her likeness, her name. I mean, we`ve seen this before with other celebrities who were deceased from Elvis Presley to so many others, they make so much more money after their death.

GRACE: Out to the lines. Lucy in New York. Hi, Lucy.

CALLER: Hi. Nancy I was wondering, since they`ve waited so long to discuss all of her assets and all, wouldn`t there be a chance for those to be missing and who`s to really know how much of that estate here?

GRACE: You know, to you Vito Collucci, private investigator, how do you determine if assets are hidden? How do we know there aren`t offshore assets and accounts in Turks and Caicos, the Cayman Islands, in Switzerland. How can we tell?

VITO COLLUCCI, PRIVATE INVESTIGATOR: Well, when we do asset checks for attorneys on cases, basically we are able to find if there`s offshore accounts hidden. The only problem, though, Nancy, when you`re dealing with a different country like the Bahamas or something like that, I have hooked up my attorneys and my clients with PIs, retired detectives, police officials from those countries.

The only problem with that, there`s a lot of payoffs and a lot of sometimes illegal things going on to get the results and who knows who hands their hands in the till of these safe deposit boxes? That`s the problem.

GRACE: Back to you, Art Harris, investigative report. I want to talk about that boat, it`s not just a boat, listen, nobody is rowing with an oar. This is a big yacht. What was the name of it, Crackerjack (ph), or what was the name of it?

HARRIS: Well, it couldn`t have been that big, Nancy. I`m told that they only paid about $140,000, $150,000 for it. So that won`t buy you much boat.

GRACE: Well, that may not be a lot of money to you. But to other people.

HARRIS: No, no, Nancy.

(CROSSTALK)

GRACE: . that`s a good chunk of change. Is that a down payment?

HARRIS: I know that you can float around a lake like that. No. Well, I`m understanding that that is in fact the full price of the boat.

GRACE: Ah, The Cracker.

HARRIS: Yes, well, you know, Crackerjacks can, you know, cost a little more than that, of course.

GRACE: You know, Art, couldn`t you -- they have the boat in the Bahamas, correct?

HARRIS: It has been taken to the Bahamas, that`s what my sources tell me.

GRACE: So if that boat were retooled and renamed The Anna Nicole, how much do you think that thing would go for?

HARRIS: Well, if she was on it, I think it is going to probably be worth a lot. Along with Horizons, actually, I`m told that Ford Shelley and G. Ben Thompson, who claimed ownership of the house, which is questionable at this point, think it`s worth $10 million just because Anna Nicole lived there.

GRACE: Let`s take a look at the Horizons home we are talking about, Liz, if you can pull that up. Now this is where she had been living. There`s also another home, you`re seeing shots there of the home on which there`s a down payment. So there`s actually two homes in the Bahamas, Art. Is that on the list?

HARRIS: That`s right. That`s going to be filed on the list. My sources tell me when the will is filed in the Bahamas.

GRACE: So none of this has yet been filed, correct?

HARRIS: Correct, correct.

GRACE: Art, how did you find out about all of the jewelry in the safe deposit boxes?

HARRIS: Well, you know, I have people who are close to this whole thing, Nancy. And I`m told that she had on a five carat diamond ring, worth a lot, when she died. She had three carat diamond earrings each that were found in the room by Seminole police, along with $10,000 in cash. And of course, that was confiscated. And it will be turned over to Howard K. Stern.

(CROSSTALK)

HARRIS: . executor.

GRACE: OK, now, wait, wait, wait, wait, that`s not in the Bahamas. So back to you, Burt Levitch, if you`ve got a six carat diamond ring, three carat earrings and $10,000 cash in Florida, why wasn`t that part of the California probate list?

LEVITCH: Well, the only reason that there was any personal property attached to the California petition is that I`m pretty sure it was associated directly with the residence out here. Again, the ancillary jurisdiction only deals with real property. And it`s a very related miscellaneous assets. So it sounds like the items that were found in the hotel room in Florida would eventually be under the jurisdiction of the Bahamian court.

GRACE: You`re saying additional photos of that Horizons home, that in itself -- to you Gloria, Sandy and Courtney, that`s a legal dispute right there. Anna Nicole Smith apparently got this home, Horizons, with a quitclaim deed. It was handed over to her by her then boyfriend. And now he`s claiming it was just for her to get citizenship.

He didn`t really mean for her to have it, Sandy. So long story short, is that a fraud on the court, and will she, her assets, her estate end up getting this home?

SANDY SCHIFF, DEFENSE ATTY.: Well, quitclaim deed means you get as good a title as the person who conveyed it to you. It`s not a full deed with convenance (ph) against a grantor. And it`s for the court to determine who actually owns that. So it`s up in the air.

GRACE: And what about it, Courtney? The allegations are, the owner of this gorgeous mansion, take a look at that thing, called Horizons. Wanted Anna Nicole Smith to get -- help get residency in the Bahamas. You`ve got to have property. So he quitclaims his home to her so she can get residence. Then she dies. Now her estate is claiming it`s mine, what`s going to happen?

COURTNEY ANDERSON, DEFENSE ATTY.: Well, what a wicked web we weave when first we set out to deceive. This woman was just amazing. I mean, I just have to say, from a legal perspective, it is really fascinating. I`m sure it`s going to be riveting evidentiary hearings about what happened and what she promised and the oral representations that were made.

But just as a person and as a woman, I am endlessly fascinated that she was able to cajole, convince and talk this man into this. So it`s absolutely amazing.

GRACE: And back to you, Burt Levitch, trust and estates attorney, he gives her a quitclaim, I think it is a quitclaim deed, to the home just to help her get residency, then she dies.

LEVITCH: Raises a really interesting question. Here the allegation in the California court is that she was a resident of the Bahamas. And I suppose it`s possible that the Bahamian court could say, no, it`s not our problem. Her attempts to gain residency here were unsuccessful. You needed to own a home and she didn`t. And who knows what jurisdiction would pop up next?

GRACE: And let me guess, Art Harris, who`s living in the Horizons mansion right now?

HARRIS: Well, of course, Howard Stern is. And he has been called a squatter by the alleged owner. But I also have right here a judge`s order requiring the owner, Ben Thompson, to put up $100,000 cash bond if he wants to proceed with this lawsuit. That tells me that the judge is not terribly confident it`s a good case.

GRACE: Very quickly to tonight`s "Case Alert." A woman attacked while praying in church. Police say 44-year-old John Michael Petry entered a Middletown, New York, Church, watched the 58-year-old woman for about 20 minutes praying, and molested her.

But she fights back, repeatedly stabbing her assailant with a pen. All caught on church security cameras. Tonight he (INAUDIBLE) behind bars facing felony charges of attempted rape and sex abuse.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We have faith, we really do. We pray for him. And we also pray that from our experience down through the century that God always brings good out of evil.

(END VIDEO CLIP)

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UNIDENTIFIED MALE: We`ve calculated that she has made in the past 12 months previous to her death at least $1.3 million. Remember those wedding pictures she had with Howard Stern (INAUDIBLE) People magazine for a million dollars, the Dannielynn birth pictures for $300,000. That`s a lot of money to go through. And whatever happened to that yacht she supposedly bought in Florida right, remember, before her death?

(END VIDEO CLIP)

GRACE: That`s right. Apparently about $2 million worth of assets emerge in the Bahamas, not listed in court documents so far belonging to cover girl Anna Nicole Smith. Who is protecting her assets? Out to you Gloria Allred. I`m looking at this petition filed by Howard K. Stern, no offense, Mr. Stern, but it says you need to be appointed -- you`re asking to be appointed special administrator to pay expenses on the property, including utilities, gardener, pool maintenance.

Hello, she`s dead. Why does she need pool maintenance?

ALLRED: Well, I think it`s important that the value of her assets be protected. And so it may be that some of her real property is sold in the future, Nancy. And you would want that property to be in good condition to help to increase the market value of that property.

GRACE: Gloria, you know Howard K. Stern is doing the backstroke in that pool right now.

ALLRED: Well, you know, I don`t know. I don`t necessarily have that same view of Howard Stern.

GRACE: I don`t have that view of him. He stuck by her all these years. He helped her lead the fight on the Marshall estate. But you know, gardening, pool expenses, isn`t that a little over the top, Gloria?

ALLRED: Well, you know, it may not be. It really depends on the circumstances. And I think it`s probably a small amount given what`s at stake in this. And I don`t think that he`s asking to be paid himself for gardening or taking care of the pool.

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UNIDENTIFIED FEMALE: Anna Nicole had personal property valued at $10,000. She had a home in Los Angeles valued at $1.8 million, but she had a $1.1 million debt on her home, presumably a mortgage, maybe tax bills. Bottom line here, she was only worth about $700,000.

GRACE: But tonight, according to Art Harris, investigative reporter, she has got about $2 million worth of assets in the Bahamas. Out to the lines. Debbie in Florida.

Hi, Debbie.

CALLER: Hi, Nancy. Nancy, Anna Nicole`s will specifically eliminates future children and husbands. But it doesn`t eliminate her mother. So doesn`t that lack of exclusion open the door for Virgie Arthur, as a blood relative, to inherit everything?

GRACE: You know, I understand where you`re headed. What about it, Burt Levitch? She does have a point. Under the will, it specifically excludes, for instance, Dannielynn, by excluding future children. What do you think, Burt?

LEVITCH: That is true, but this is an unusual document because there`s not one but there are two disinheritance clauses. There`s that specific one that you just alluded to, Nancy, in which future children are specifically disinherited. But I`m actually looking now at section 6 point 2 that says "except as otherwise, provided, I have intentionally omitted to provide for any of my heirs." That would include Virgie.

GRACE: When we come back, not only more on Anna Nicole, but a beautiful baby girl vanishes from a luxury resort vacation while her parents leave her for a dinner party. Tonight, where is baby Maddie?

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BROOKE ANDERSON, CNN HEADLINE NEWS ANCHOR: Is it possibly clear who would receive the money should Anna`s estate win that court battle?

JANE VELEZ-MITCHELL, INVESTIGATIVE REPORTER: Well, I think that they`re going into probate because they want to settle the whole issue of Anna Nicole Smith`s estate so that they could get to the big battle over the big money, which is the estate of J. Howard Marshall, potentially worth to Anna Nicole Smith estate, if she wins, at least half a billion dollars.

But until they settle this whole estate business, they can`t go forward to that big battle. And, remember, Howard K. Stern is a lawyer in that battle and could make a contingency fee worth several million dollars.

(END VIDEO CLIP)

GRACE: That`s right. Howard K. Stern is set to get about a 6 percent fee, I believe, of any of the huge, half-a-billion-dollar estate of Anna Nicole`s former husband, Howard Marshall. And the reality is, he had a lot of oil interest. So, hey, take a look at the pump. That money has only increased.

Out to the lines, Carla in Colorado. Hi, Carla.

CALLER: Hi, Nancy.

GRACE: What`s your question, dear?

CALLER: My question is, even though the baby is not in the will, shouldn`t she get her mother`s jewelry?

GRACE: Absolutely, Carla. I think every woman on the set would agree with you on that one.

And out to you, Burt Levitch, the reality is, when the will is struck down, the deceased goes in testate, in other words, without a will. Won`t the government governing the will give all the money to the child? Or does some go to Virgie Arthur, the mother?

BURT LEVITCH, TRUST AND ESTATES ATTORNEY: Under California law in this case, the child would inherit all the assets. But, remember, California law will presumably govern the disposition of the house out here in Los Angeles. But with respect to the recovery from the litigation in Texas, the Bahamian court may well be interpreting the California will, as well.

GRACE: So you`re talking about the Howard K. Marshall money, half a billion dollars?

LEVITCH: Exactly. My guess is that that would still go to Dannielynn and that Virgie would not inherit anything. But I can really only predict, without any measure of certainty, what a California court would do. It`s really hard for me to say what might happen in the Bahamas.

GRACE: Back out to you, Art Harris, is it true that there have been secret talks to settle? This has been a long, long legal dispute. It`s gone all the way to the U.S. Supreme Court. It`s landed back. Now it`s at the kooky Ninth Circuit. God only knows what that bunch will do.

ART HARRIS, INVESTIGATIVE JOURNALIST: In San Francisco.

GRACE: Yes. Aren`t they the ones that said the Pledge of Allegiance was inappropriate in the classroom? Yes, that`s the Ninth Circuit. So God only knows what they`re going to do. So it`s going to land with the Ninth Circuit, the Howard Marshall billions. What do you think is going to happen?

HARRIS: Well, right now, there have been secret talks, Nancy. They have been cancelled since the death. And, of course, since Howard Marshall died, his widow was at those talks. And the last time they met, Howard K. Stern was there with Anna Nicole and their lawyers, and it`s going to be in San Francisco, but right now the mediation, the court-ordered mediation is halted, and so has the wheeling and dealing.

GRACE: Why?

HARRIS: Well, there`s nobody really to talk...

GRACE: Well, Stern can do it. He`s been representing her in this forever.

HARRIS: Well, he`s been named a special administrator. He doesn`t get to go back officially until and unless he`s named executor of the estate.

GRACE: OK, well, it`s clearly her wishes that he be the executor of the estate. I find it very difficult to believe, Gloria Allred, that even if the will is struck down that they will take Stern away as executor. That was clearly her wish.

GLORIA ALLRED, ATTORNEY: I think you`re right, Nancy. I think that was her wish. And, apparently, that`s what may happen. And he has said that he is not going to accept any compensation for being executor. But as you pointed out, he certainly will benefit big time, if as and when the Marshall litigation results in millions, potentially, to the estate of Dannielynn. Then he`ll get his contingency fee on that litigation.

GRACE: Out to the lines, John in Oklahoma. Hi, John.

CALLER: Hello, Nancy.

GRACE: How are you, dear?

CALLER: Good, good.

GRACE: What`s your question?

CALLER: Does Howard Stern still play a part in the receiving and getting the money from the Marshall estate over into the -- what we would call the Anna Nicole estate?

GRACE: Out to you, David Caplan, the answer would be most likely yes.

DAVID CAPLAN, "STAR" MAGAZINE: Yes, no, he definitely does. And we just have to see how much money, you know, when it all unfolds in court. But he definitely will. And that, again, was Anna Nicole`s wishes.

GRACE: And I believe, Sandy Schiff, it`s about a 6 percent fee that he gets, but, you know, a lot of people come down on Stern, but he has been on the Howard K. Marshall lawsuit from the very, very beginning. He`s been working this thing forever, and it really is only fair that he gets paid for all that work.

SANDY SCHIFF, DEFENSE ATTORNEY: Yes, and with his former partner, and he has a percentage. And, believe me, it`s worth more than his executor`s fees, and it doesn`t make any sense for him to fool around.

GRACE: And back out to you, Courtney Anderson, I agree. I want him to get paid for all of his hard work. But I do have a problem -- that may not even be a legal question -- with him shacked up in the Horizons mansion, you know, with that pool -- let`s see the Horizons mansion again, Liz, OK? I`m not saying this is illegal, but he`s asking for upkeep on this palace he`s living in. And the legal argument is, Anna Nicole shouldn`t have even been living there.

COURTNEY ANDERSON, DEFENSE ATTORNEY: Well, that`s not Anna Nicole...

GRACE: He`s a squatter. He is a squatter.

ANDERSON: That was not Anna Nicole`s argument, if I remember correctly. They were fighting over this property. I think they had the utilities turned off in the quest to evict Anna Nicole prior to her untimely passing. So her perspective was -- and she maintains to the very end -- that she was rightfully the owner of that. He said that they had a spiritual wedding, I believe, that he was her boyfriend. He loved her. He lived with her and her new baby.

And so he`s there maintaining the property, as Gloria said, maintaining the property value, ensuring that that`s not any waste. You know, and the whole entire thing is fascinating. I do want to mention, though, I`m in Texas, and I`m not so convinced that the Marshalls are going to settle.

It was pretty clear that, when they won their lawsuit here in Texas against Vickie Lynn or Anna Nicole, that they had kind of dug their heels in on this, and they felt that she was not in the will, and that she wasn`t going to get any more than she`d already received.

GRACE: But that was when the son and Anna Nicole were both still alive.

ANDERSON: Well, I know. But after the son passed away, his family publicly said that -- their lawyers said that they were going to continue with the exact same position they`d had. So I`m not so sure that money is ever, ever going to come to fruition and be in anybody`s pocket.

GRACE: There`s almost a curse on that money, millions.

Out to a special guest joining us, medical examiner and forensic pathologist, Dr. William Morrone. We`ve all kind of forgotten the inquest into the death of Daniel Smith. That`s been put on the back burner. We know that methadone likely involved.

DR. WILLIAM MORRONE, MEDICAL EXAMINER: Yes.

GRACE: What do you anticipate will happen at the inquest?

MORRONE: The actual facts that come out from the autopsy need to be filled in. Where did the medication come from? What kind of instructions were there? What were the actual doses? Was there any supervision? Was there a doctor-patient relationship? Was this off the street? Was this illegal? Those are all questions that still need to be answered.

GRACE: And what happens at a formal inquest? We understand Howard Stern is going to be a witness.

MORRONE: The people in the family have the responsibility to answer questions that I just posed publicly. Those questions have been out there for five or six months. They know the answers.

GRACE: And as far as Anna Nicole Smith`s death, are there any potential criminal or civil charges out there?

MORRONE: The criminal charges are pretty much wrapped up. There might be civil charges, but the answers were actually more forthcoming in the Anna Nicole investigation.

GRACE: Right, because of Dr. Perper.

MORRONE: Absolutely. He did an excellent job.

GRACE: Maybe they could use him down in the Bahamas. And very quickly, back to you, Art Harris, the house, the Horizons house, the one I keep showing the pool, with the Grecian statues around it, there`s more update on that, too.

HARRIS: Yes, Nancy, a Bahamian judge has ordered the so-called owners, the plaintiff Howard, Ben Thompson and Ford Shelley, to put up $100,000 cash bond to cover legal fees in case they lose. That suggests to me that they may not have as strong a case as they think.

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UNIDENTIFIED FEMALE: Her face stares out from tens of thousands of posters, and millions have logged on to her Web site. Today, the search for Madeleine McCann has gone truly global. The site that`s raising awareness about her abduction has received 60 million hits since it was set up this week. It`s part of a mass movement involving thousands of people with just one aim: to find Madeleine.

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GRACE: This now-4-year-old baby girl missing from a luxury resort vacation, 60 million hits on the Find Maddy Web site. The world is watching and wondering why she was left alone as her parents went to a dinner party.

Straight out to Emily Smith, the U.S. editor of "The Sun," what`s the latest, Emily?

EMILY SMITH, "THE SUN": Well, the latest is the police have a suspect, but they don`t have enough to charge him yet. But there`s a lot more information coming out, but still nothing to the whereabouts of where little Maddy is.

GRACE: Is it true that this suspect had a secret room in his home and he lived pretty much across the street from baby Maddy?

SMITH: Yes, he lived 100 yards from the apartment where she was staying with her parents. And the house has been searched. And in there, they have found a room, a basement room, but we don`t believe that they have found anything in that room that leads us to Maddy.

GRACE: What made him a suspect to start with, Emily Smith? Emily joining us, she`s the U.S. editor of "The Sun." I understand he suddenly was on the scene acting as a translator voluntarily. Is it true that he said something that drew attention to him?

SMITH: Well, what he did was, he initially was working as a translator with the police and the parents of Madeleine, helping them out. And he was also speaking to journalists down there on the scene, as well.

And eventually, people began to get suspicious. He began talking about his own 4-year-old daughter who he wasn`t able to see now because they were in a custody battle. He didn`t want to give his full name. He seemed to be hanging around a little bit too much and asking too many questions.

GRACE: Emily Smith, is it true that he suddenly wanted a rental car right around the time of her disappearance and told the rental agency he needed it fast?

SMITH: That`s right. He already had two cars. He lives with his mother. His mother has a van. He has his own gold Kia. And then, suddenly, on Saturday, he called a car rental agency and said, "I need a car, and I need it fast."

GRACE: Out to you, Dr. Patricia Saunders, clinical psychologist, this is a luxury resort, a lot of security. The parents were about 50 yards away. Every night, about eight parents would put their kids to bed and go to dinner at an outdoor tapas bar. They could get appetizers. They could see the front door of the downstairs condominium in which they were renting. Do people let their guard down too much on vacation?

DR. PATRICIA SAUNDERS, CLINICAL PSYCHOLOGIST: Unfortunately, they do, Nancy. And being on vacation doesn`t mean you`re on vacation from your parental responsibilities. When people are on vacation, they kind of move into a trance-like state. They feel safe, and they`re lulled into a feeling of security, which obviously is not realistic.

GRACE: And back to you, Emily -- Emily, U.S. editor with "The Sun" -- I understand that the borders were not really checked or didn`t become a focal point for police until 15 hours later. How far away is the border -- this resort is Portugal -- from the resort?

SMITH: They could be across the border within two- or three-hours drive. I mean, the problem was that the police...

GRACE: I`m sorry, I couldn`t hear you. Did you say two or three hours?

SMITH: Yes.

GRACE: That`s like driving from Connecticut to Rhode Island. I mean, it`s not far at all.

SMITH: No, not at all. And the problem is the police didn`t classify this as an abduction. She was seen as a missing person, so there wasn`t an alert until 24 hours later.

GRACE: And, Emily Smith, is it true that his computers were taken and some videos were taken from his home?

SMITH: Yes, this is a British man who lives with his mother very nearby. And they`ve raided the house. They`ve taken his computers, a lot of files, videos, clothes, even soil samples, and they`re working through those at the moment.

GRACE: Soil samples? Out to you, Bernadine in Illinois. Hi, Bernadine.

CALLER: Hi, Nancy.

GRACE: How are you, dear?

CALLER: Oh, I`m just fine. I`m just very upset about this little girl.

GRACE: Me, too.

CALLER: I cannot understand why parents would leave them children in a room alone and go have dinner.

GRACE: Back out to you, Dr. Patricia Saunders. You know, these parents, apparently both doctors, both physicians, had tried for a long time to have children, had to go to infertility treatments, the whole works. Finally had the children, then had twins. The mom had cut back on her practice in order to spend time with the children. What happened, Dr. Saunders?

SAUNDERS: Well, clearly they loved Madeleine, but they were with three other couples. Apparently they were doing this every night, so it`s group pressure, kind of like a group fantasy that everything`s right with the world and our babies are going to be safe. People need to wise up: This is a dangerous world.

GRACE: And back to Emily, what can you tell us about the search effort now, $5 million and climbing on the reward?

SMITH: Well, the search effort is truly international now. They have a Web site, as you said earlier, that`s had 60 million hits. There`s posters going out all over the place. Tomorrow in England, there`s a very big soccer game, and Madeleine was a huge soccer fan -- is a huge soccer fan, and said there will be videos played during that that could reach an audience of 450 million. Her parents and everybody are doing as much as they can in the hope that we find Madeleine and we find her alive.

GRACE: And question: What are the parents` explanations for leaving her alone to attend a dinner party?

SMITH: Well, they checked on her every hour. They went back at 8:00, at 9:00, and at 10:00 she was gone. Her twin brothers and sister was there lying in the bed, and Madeleine was gone. And I`m sure that`s a decision that they`ll regret for the rest of their lives.

GRACE: And where are the twins right now?

SMITH: They`re still with the parents. The parents remained in the resort, and they say they won`t leave until they have found Madeleine.

GRACE: We`ll stay on the case, baby Maddy. There is a Find Baby Maddy website. The reward tonight climbing over $5 million.

Quickly to tonight`s "Case Alert." One of the so-called Barbie bandits giggles her way through an exclusive TV interview. Heather Johnston tells ABC News she and fellow bandit, Ashley Miller, wore their stunner shades when they robbed an Atlanta area bank $11,000 bucks in February. The 19-year-old is now out on a $10,000 bond. Well, that`s not fair. Lady Justice takes a kick in the pants tonight. But, hey, you keep on giggling, Barbie doll. Let`s see what happens at trial.

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GRACE: What a week in America`s courtrooms. Take a look at the stories and, more important, the people who touched our lives.

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GRACE: Maybe the L.A. county sheriff forgot that she was late to court, and then her mother heckled the judge and the prosecution from back in the gallery. I don`t know what kind of good behavior that constitutes.

Margarita in her hand, I guess you want me to believe that that`s prune juice.

MICHAEL CARDOZA, DEFENSE ATTORNEY: You know, Nancy, who knows what it is? But we`re dealing...

(CROSSTALK)

GRACE: No, no, no, no, you look. No, you look. Elizabeth, do I have to cut his mike?

The will was already released with this list of assets that claims she only had $10,000 of property, complete and total B.S.

CALLER: I was wondering if Howard K. Stern can file a palimony lawsuit against Anna Nicole...

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GRACE: Edy, you little mink. That`s a great question.

He must have a sinus condition, because I`m not seeing any tears. I assumed that was at one of the vigils. Let me reiterate that the husband, Mr. Stebic, has not been named a suspect.

We see Alan Ripka, the speaker, the lawyer -- there he is. All lawyers who break ethical violations think that they`re right, that it`s OK.

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ALAN RIPKA, DEFENSE ATTORNEY: That`s not true, Nancy.

GRACE: OK.

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GRACE: Tonight, let`s stop to remember Marine Lance Corporal Jeffrey D. Walker, just 21, from my hometown, Macon, Georgia, killed, Iraq. Walker`s second tour of duty, his mom says he was thrilled to join the Marines from high school to serve his country. He loved rollerblading and art, especially drawing. Nickname: The Joker. He dreamed of becoming a police officer. Leaves behind 5-month-old son Conner, fiancee Dana, mother, Teresa, stepdad, Michael, father, James, stepmother, Cathy, sisters, Kelly, Casey. Jeffrey D. Walker, American hero.

Thank you to our guests, but especially to you for inviting all of us into your homes. Happy birthday to the mom of NANCY GRACE regular Jean Casarez. Happy birthday, Barbara. What a beauty. Special good night from friends here in New York Rob and Terrance. Wave, guys. Cute, cute, cute. Good night from the New York control room. Where`s Liz? There`s Brett, Liz, yes. There you go. Dance, Brett.

Everybody, I`ll see you tomorrow night, 8:00 sharp Eastern. And until then, good night, friend.

END