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Jane Velez-Mitchell

Kids Vanish After House Fire; Arnold`s Scandalous Secrets

Aired October 01, 2012 - 19:00   ET

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

UNIDENTIFIED MALE: JANE VELEZ-MITCHELL starts right now.

JANE VELEZ-MITCHELL, HOST: A desperate search for two kids who vanished after a house fire killed their beloved grandparents. What happened to these precious children? They`re only 9 and 7 years old. Did they die in the fire? Or were they kidnapped? We are uncovering the secrets now.

(BEGIN VIDEOTAPE)

VELEZ-MITCHELL (voice-over): Tonight, police say these two children may be in danger, and they need your help. A deadly fire killed their grandparents, and cops first thought this brother and sister died in the flames. But their remains are nowhere to be found. Are these children still alive? If so, who took them and why? Was this fire part of a secret plot to kidnap these kids? We`re investigating tonight.

Plus, Arnold Schwarzenegger`s most toxic secrets spill out. The former Governator sits down with "60 Minutes" and talks about his secret love child with the family maid. Is he sorry for lying to then-wife Maria Shriver? And was she just one of a cast of many mistresses? Is he an egomaniac, or is he just telling it like it is? We`ll analyze tonight.

UNIDENTIFIED FEMALE: Authorities in Tennessee spent yet another day looking for any sign of 9-year-old Chloie Leverette and her 7-year-old half-brother, Gage Daniel. The children were last seen playing in the neighborhood about three hours before the fire started.

UNIDENTIFIED MALE: Wednesday, the Tennessee Bureau of Investigation issued endangered child alerts for Chloie and Gage, but so far investigators have only been able to recover the bodies of their grandparents.

UNIDENTIFIED FEMALE: I think something is very fishy.

UNIDENTIFIED MALE: The more you find out the more questions you have.

(END VIDEOTAPE)

VELEZ-MITCHELL: Tonight a mysterious deadly house fire launches a desperate nationwide hunt for two precious Tennessee children. Cops say these kids are missing, and they could be in extreme danger.

Good evening. I`m Jane Velez-Mitchell.

Nine-year-old Chloie Leverette and her 7-year-old brother, Gage Daniel, were last seen just three hours before fire suddenly erupted at their grandparents` house where they lived. The kids were playing outside their grandparents` home. It was a farmhouse just 40 miles south of Nashville, Tennessee.

Did the kids really die in that fire? Or have they been abducted? At first cops believed the kids had died in the fire that killed their beloved grandma and grandpa. They can`t find, however, the little bodies of the children in the rubble, try as they might. Neighbors and family are now panicked over the unknown.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I think something is very fishy.

UNIDENTIFIED MALE: The more you find out the more questions have you.

UNIDENTIFIED FEMALE: ... simply to continue on until we find out what`s really happened to these children.

(END VIDEO CLIP)

VELEZ-MITCHELL: Investigators insist they don`t have any suspects in the children`s disappearance. Including the children`s parents. But as the investigation turns up more and more questions than answers, could a family secret be behind all of this?

Straight out to investigative reporter Jon Lieberman. Jon, what is the very latest?

JON LIEBERMAN, INVESTIGATIVE REPORTER: Jane, there`s a lot going on at this time. Investigators are still combing through that debris, and they`re trying to figure out if one of three things happened.

No. 1, did these two children actually die in this fire? And let me tell you, Jane, this was a massive fast-moving fire. In fact, there were more than 20 propane tanks in the basement of this house, which made the fire that much hotter, which made it that much more explosive.

No. 2, did these two kids somehow get out, escape the fire, and then wander off? This is a very rural area. But so far there has been no sign of their bodies.

Or No. 3, is there foul play involved? Did someone abduct these children as part of a much larger plot? That`s very unlikely but because investigators haven`t been able to rule out the fact that they died in this fire, they issued the Amber Alert, as you said, and now they are looking for these two children.

Well, the key is was this fire accidental or was it arson? Investigators still can`t figure out what caused the fire. Listen to this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I said it was not an intentional fire. But obviously there`s more to it than that.

(END VIDEO CLIP)

VELEZ-MITCHELL: Obviously there`s more to it than that. Forensic scientist Larry Kobilinsky, one of the top experts in the field. This fire described as intense and quickly collapsing the walls of the house.

Now, we just heard from Jon Lieberman. There were all these propane tanks in the basement of the house. Does this sound like arson? Could the children have been incinerated to the point where they can`t be identified even though cadaver dogs have been searching that rubble?

LARRY KOBILINSKY, FORENSIC SCIENTIST: The answer is no, Jane. If they died in that fire, they would find skeletal remains and massive charred tissue. There`s no way, if they died there, that they would not be found.

I think the answer to this big puzzle lies in two things. The autopsy of the grandparents because then we will know if they were alive when -- at the time that the fire started. The second thing is the crime scene itself to see if there is any indication of the presence of accelerants.

VELEZ-MITCHELL: Well, these propane tanks, Jon Lieberman, I`ve got to go back to you for a second, Jon. This is news that you`ve uncovered. What the heck were they doing with all these propane tanks in the basement? Do we have an idea?

LIEBERMAN: Well, we`re not sure at this point. It looked like, though, according to investigators, that this was just, you know, they had things around, whether they were grilling with them, whether they were -- you know, these weren`t planted there. These were there in this very rural home.

VELEZ-MITCHELL: Interesting. Well, you know, people do use propane tanks, as you said, to grill. But 20 of them? That`s kind of odd.

Cops say they`re looking at the family members, including the parents, and are asking a lot of questions, as they should. Listen to this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Their mother has been spoken to. She does not have the children. There`s other family members that we are looking to speak with today. And we`re going to be speaking with her again, as well.

(END VIDEO CLIP)

VELEZ-MITCHELL: Now, Mike Brooks, HLN law-enforcement analyst, Chloie and Gage. The two beautiful, precious children, they share a mother, but they have separate fathers. Reports are that the mother and the little boy`s dad were investigated by Child Services for four years between 2006 and 2010. The exact reason has not been released.

To me the big question is why on earth were these two kids living with their grandparents and not their mom and one of the dads?

MIKE BROOKS, HLN LAW ENFORCEMENT ANALYST: They have been living with their grandparents, Jane, for about five years. And, you know, and that`s the question. But you know, Children and Family Services, they will not ever comment on what the investigation was that they were involved in, so we don`t know that.

But you know, Larry Kobilinsky, Dr. Kobilinsky, he`s absolutely right. If you notice the arson investigators, Jane, they`re there on the scene with sifters. So they`re taking every bit of the ashes that -- finding that and they`re going through with a sifter looking for anything at all. They thought they may have found a tooth, but that`s still not enough to say OK, these kids were in this fire. Could have been a tooth that was saved, you know, one of the kid`s tooth fell out. We don`t know.

But there`s no sign that the kids were in the fire. Now, investigators from the Tennessee Bureau of Investigation with their interviews initially, everyone was saying, "Well, we saw the kids there about 6:30 p.m." The fire started at approximately 9:30 p.m., Jane. And that`s what led them to believe that the kids were in the house. But there`s no physical sign of them at all.

And even the forensic anthropologist from the University of Tennessee, the Body Farm, who have been there assisting have not found anything.

VELEZ-MITCHELL: Stacey Honowitz, Florida prosecutor, what strikes me as very bizarre and suspicious is that not one child is missing but both of them. Which would lead me to suspect that the chance of coincidentally they both escaping or -- they both dying and be undetected that`s very, very remote statistically. Which leads me to believe that somebody has these children tonight on the lam.

STACEY HONOWITZ, FLORIDA PROSECUTOR: Yes. I mean, really, Jane, when they`re investigating the family, that`s going to the crux of what`s going on in this case. And whether or not this fire was accidental or intentional, these arson investigators have their work cut out for them because the two bodies of the children have not been found.

But I guarantee you that, once you delve into the history, why Children and Family was involved, why they were living with the grandparents, then we`re going to get more leads that maybe we`ll be able to determine whether, in fact, this is a kidnapping, if it was by a family mother, maybe not the mother directly, maybe she was with somebody.

So you know, there are so many unanswered questions but the investigation as to why those kids were there to begin with, I think is going to be a huge factor.

VELEZ-MITCHELL: Let`s examine the timeline of the events. OK.

It started last Sunday. We are talking eight days ago. A week ago yesterday the kids were seen playing outside their grandparents` house at about 6:30 in the evening. Three hours later the house suddenly catches fire, and it burns with tremendous intensity. And the walls quickly collapse. They spend days searching the ashes for signs of these two little children, Chloie and Gage.

By Friday, just by the start of this past weekend, Tennessee officials said, "You know what? We`re issuing a statewide Amber Alert, declaring these kids missing."

So Mike Brooks, what do they do now? This is outside Nashville. We don`t know the identities of the mother and one of the fathers. One of the fathers has spoken. The father of the little boy has spoken to the media. But what do they do now to try to see who has these kids and where they are?

BROOKS: Well, they don`t know. That`s the problem. What they are going to do, so what they`re going to do, they`re going to put these kids - - pictures of these kids on bulletin boards, on you know, road sides. Everywhere they can with this Amber Alert. They went from endangered child alert to Amber Alert now, Jane. So -- and that will go out to a number of different states.

So I mean, right now, they really don`t know who is responsible for -- or who might have these kids. They also don`t know what the cause and the origin of the fire is. So -- they are going to remain there. Just to make sure because they also brought in the Bureau of Alcohol, Tobacco and Firearms, who is assisting TBI and the forensic anthropologist. They just don`t know.

VELEZ-MITCHELL: More on the other side.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I don`t know what happened, but you grieve, you grieve. You grieve for those children that are not found.

(END VIDEO CLIP)

VELEZ-MITCHELL: Did precious 9-year-old Chloie and 7-year-old Gage, two wonderful children, die in a fire that also killed their grandparents? Or were they abducted? Are they somewhere right now being held against their will? Are they in danger?

Authorities have issued an Amber Alert, and they are scouring the nation, particularly Tennessee, for these children.

Larry Kobilinsky, one of the top forensic scientists, you have studied so many crime scenes, so many arson scenes. As they go through this, is this determination of whether or not it was arson or an accidental fire complicated by the fact that they, for some reason, happened to have 20 canisters of gas in their basement?

KOBILINSKY: Well, the fact that there`s propane tanks in a rural home is not a big surprise. And certainly, it would feed the fire.

But the thing is that the fire started from something. It was either accidental, starting from electrical or some other reason, or it was arson. You know, people commit arson to cover up other crimes. Like homicides, and in some instances even kidnapping. They -- they think that they will destroy all the evidence but they don`t. There`s going to be a body. There`s going to be bodies.

In this case, these bodies are there. They`re not cremated. Temperature is not high enough to destroy the skeleton. So you`re going to have bodies there. This could very well have been an arson. As far as whether there are accelerants...

VELEZ-MITCHELL: Wait a second. Let me ask you a follow-up question there. So what you`re saying is they`re going to do an autopsy on the charred remains of the two grandparents, 72 and 70, and see whether had they been shot before the fire? Right? What are they looking for?

KOBILINSKY: Absolutely right. Well, for one, they`re trying to find out if these people were alive when the fire was set. Is there some sign of soot in the airway? Things like that. Is there a bullet in the body or went through the body? Any kind of evidence like that will tell you whether there`s a criminal activity had been performed or not. You`ve got to find out why these grandparents died, and then you might have a better handle on what happened to the children.

VELEZ-MITCHELL: Well, Jon Lieberman, investigative journalist, I found it very significant that the charred remains of the family dog were also found inside the grandparents` home, because that could be significant in the sense that nobody had a chance to escape. How could the kids have escaped the fire, if the family dog didn`t escape? It sounds suspicious to me.

LIEBERMAN: Well, and that`s the big question. Exactly. How did this dog -- you know, the dog got caught. Two grandparents got caught in this fire. So where are these two gorgeous children?

You know, and again, I say, there is still a chance that their remains are somewhere on this property. I mean, even the most seasoned investigators will tell you that sometimes it takes a week or so in order to sift through everything. So there is a chance there...

VELEZ-MITCHELL: Yes. I don`t buy it. I don`t buy it, Stacey Honowitz. I do not buy that these children are still there, remains in the fire. I think that they have been taken. I think that`s why an Amber Alert has been issued. I think that`s why the FBI is involved.

And I think that it all boils down to motive. Who had the motive to take these children and why?

Now, they were living with their grandparents. They were not living with their parents, the -- the -- mother is the mother of both them, but they have different fathers. To me, you`ve got to look at family. You`ve got to look at friends. You`ve got to look at school.

HONOWITZ: You`re 100 percent right. I mean, we can`t jump the gun off automatically and say it`s a definite kidnapping.

But all factors considered, especially what you just mentioned, you would have to say, it just seems very odd, like you said, that the grandparents and the dog wouldn`t make it out, and these two kids, who were living with grandparents, not parents, are nowhere to be found.

And it does take a long time to do this investigation, but certainly, the investigation into the Children and Family Services is going to play a key role. Were there court hearings? Were there custody issues? Were there a problem between the grandparents and the parents? This is all going the play a role.

Certainly, once this investigation is done, if they figure out that it was, you know, an intentional act and arson. So there`s so many factors that are going to play a role, and we`ll see what happens.

VELEZ-MITCHELL: And let me tell you something. You`re looking at the grandparents who perished. And neighbors told us, told our producer, that the kids were always with the grandparents. They were always. Any time you saw the grandparents, you saw the kids and vice versa. So it seems odd that the grandparents perish and the family dog perishes, but the two kids, well, their remains can`t be found. I think these kids are somewhere tonight, right now. We`re going to try to find them.

More on the other side.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I mean, I hope they are alive, but I don`t see how that would happen. You know, I really don`t.

(END VIDEO CLIP)

VELEZ-MITCHELL: But authorities believe these two precious children, 9-year-old Chloie and 7-year-old Gage, are alive, and they`ve issued an Amber Alert. Are they somewhere in Tennessee where their grandparents died in their farmhouse fire? Have they been abducted? And if so, by whom?

Let`s go straight out to Selin Darkalstanian, who is our producer, who just got off the phone with a woman who lives down the street from the crime scene, the scene of the fire where the grandparents perished.

What do you know, Selin? What is she telling you?

SELIN DARKALSTANIAN, PRODUCER (via phone): I just got off the phone with some of these neighbors, and this one neighbor tells me that Bubba, who is the grandpa, he is known as Bubba in this small community, where it seems like, from talking to everybody there, Jane, everybody knows everybody in this community. Bubba was always seen with his two grandkids. He was always walking around.

In fact, this fire happened on Sunday. And just on Saturday he was -- he was in the neighborhood with his grandson walking around. And they say he was very. very dedicated to his grand kids, that he had even told one of the neighbors that his goal is to be alive long enough to raise these kids and see them grow up. So he was very dedicated to these kids.

And these neighbors say that the second they saw the smoke from down the street they knew it was Bubba`s house, and they just figured that the kids would be at the house, because every time they see these grandparents, the grandparents are with the kids.

VELEZ-MITCHELL: And the kids...

DARKALSTANIAN: They assumed the kids would be in the house.

VELEZ-MITCHELL: Everybody thought they seemed very well adjusted at school. Listen to the school principal of these children that are missing.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: He`s a fun-loving little boy, could be a pistol sometimes. You know, she`s kind of like his little mama here at school.

(END VIDEO CLIP)

VELEZ-MITCHELL: Just got a couple of seconds. Mike Brooks, what do cops need to do to find out where these kids are?

BROOKS: They need to interview all family members. Again, I think a lot of it`s going to come down to the Department of Children and Family Services, what was behind that investigation.

And, again, it could come from a tip from the billboards with this Amber Alert with their pictures out there. Anybody see anything, contact the Tennessee Bureau of Investigation.

VELEZ-MITCHELL: Yes. And I say -- I say give everybody connected even remotely to these kids a lie detector test.

Thank you, fantastic panel. Your shocking video of the day. Look out. A skateboard -- well, there is a skateboarder -- oh, has a run-in with a deer. This is usually the opposite of what happens. Often deers are hit by cars. But in this case -- you got the collision between a skateboarder and a deer. We`re happy to say both the skateboarder and the deer turned out fine and went on their merry way.

And here is what Nancy Grace is working on for later tonight.

NANCY GRACE, HLN HOST: Jane, on the radar, tracking crime and justice, to Pennsylvania. A beloved minister suffers crushing heartbreak. Not once but twice.

First wife of 30 years, mother of his three children, dies in a freak home accident. And then the second wife mangled to death in a freak car crash.

Now, prosecutors say that car crash was a fake, that it was staged. That the renowned minister murdered his second wife, and in a stunning twist, a brand-new investigation launched into the first wife`s death 11 years ago.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

SOLEDAD O`BRIEN, CNN ANCHOR: Arnold Schwarzenegger, optimistic or delusional? Even after a tell-all book admitting multiple affairs, he wants Maria back. A stunning interview: Arnold Schwarzenegger talking candidly about his affair with his housekeeper and other indiscretions, as well.

Also, did he even ask his estranged wife, Maria Shriver, to preview the memoir? He talked about her on "60 Minutes" last night.

ARNOLD SCHWARZENEGGER, FORMER GOVERNOR OF CALIFORNIA: Very difficult, strange, bizarre. I mean, everything else, whatever you want to call it.

UNIDENTIFIED FEMALE: The most painful chapter from Arnold Schwarzenegger`s new memoir, "Total Recall." The moment when he admitted to Shriver that he had fathered a child behind her back with the family`s housekeeper.

O`BRIEN: Let me play a clip from Leslie Stahl`s interview with Arnold Schwarzenegger.

SCHWARZENEGGER: I think it was the stupidest thing I`ve done in the whole relationship. It was terrible. I inflicted tremendous pain on Maria. And unbelievable pain on the kids.

(END VIDEO CLIP)

VELEZ-MITCHELL: Tonight`s scandalous secrets spill out as Arnold Schwarzenegger confirms his womanizing, lying, cheating ways, all in his new book called "Total Recall."

Those rumors we heard about concerning Arnold for years, it would appear many of them are true. Yes, he cheated on his wife, Maria Shriver, and he admits numerous times, including that tryst with the family`s housekeeper that resulted in a secret son. A son that Arnold claims he didn`t even know was his. Really, Arnold?

The big question, how was Arnold able to keep so many secrets from his wife and family for so long? He was literally drowning in secrets. Even his new book was a secret. Arnold never let Maria read it before it was published, and he says she still hasn`t read it.

Here is Arnold on "60 Minutes" talking about how much he cheated on his wife.

(BEGIN VIDEO CLIP)

LESLIE STAHL, "60 MINUTES": Is that the only affair?

SCHWARZENEGGER: No. But -- you know, that`s something that`s, obviously between Maria and me.

STAHL: She knew?

SCHWARZENEGGER: Yes.

STAHL: So it`s a recurring issue? With you?

SCHWARZENEGGER: I`m not perfect.

(END VIDEO CLIP)

VELEZ-MITCHELL: And that, my friends is the understatement of the century. Arnold and Maria were married for 25 years. They`re still in the midst of a messy divorce, a divorce that`s bound to get even messier now.

If she didn`t know it before, Maria now knows that Arnold was cheating on her from the very start, even while they were dating. And guess who was one of his conquests -- none other than co-star actress Bridget Nielsen whom he met on the set of 1985 movie "Red Sonja". Here is a glimpse at the budding romance from the Dino de Laurentiis Company and YouTube.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Only one man on earth is man enough to win her.

BRIDGET NIELSEN, ACTRESS: Don`t be a fool.

(END VIDEO CLIP)

VELEZ-MITCHELL: Does Arnold realize the damage he has done to his wife and kids? All of his kids. Do you buy his remorse in this interview on ABC`s "Good Morning America"?

(BEGIN VIDEO CLIP)

SCHWARZENEGGER: It is just one of the disastrous situations that I have created and it is the worst thing I that I have ever done.

GEORGE STEPHANOPOULOS, HOST, "GOOD MORNING AMERICA": Worst thing you have ever done? Worst secret?

SCHWARZENEGGER: It is -- it is -- not just the worst secret. It`s just the worst thing because it hurt so many people.

(END VIDEO CLIP)

VELEZ-MITCHELL: Yes, it did. Oh, my God. I have so much to say about this but before I get started. Kim Serafin, senior editor "In Touch Weekly", what are the most shocking confessions as far as Hollywood`s reaction to all of this?

KIM SERAFIN, SENIOR EDITOR, "IN TOUCH WEEKLY": You know, what`s really strange, if you watch this interview, it seems like he`s talking about himself in the third person. He does talk about how he`s lived his life in denial. He was able to put all of this away, including everything going on with Mildred, including paying her, including not telling Maria about these things.

But it almost seems like still in this interview, he`s just -- really not really confronting it in so many ways. It doesn`t seem like your typical mea culpa interview that we have seen so many celebrities and politicians and people in the public eye do. He just seems like he is out there promoting a movie and promoting a book and talking about his life and talking about his successes and his failures which he says is in his book. This is not really just an apology tour that he is doing.

Of course -- and that`s what we all want to hear about and what we want to talk about.

VELEZ-MITCHELL: He must think we are all idiots because Arnold told "60 Minutes" that he didn`t realize Joseph -- the child he bore with his housekeeper was his until Joseph was seven or eight years old and then one day it just hit him.

(BEGIN VIDEO CLIP)

SCHWARZENEGGER: He started looking like me. So that`s when I kind of thought it, that -- it was never discussed but I mean I put things together, yes.

UNIDENTIFIED FEMALE: Did you ask her? Ask -- her name is Mildred, did you ask Mildred?

SCHWARZENEGGER: No, I didn`t. But it felt like that I should take on the responsibility of taking care of him and her.

(END VIDEO CLIP)

VELEZ-MITCHELL: And then he begins to give Mildred money for her and her son but is it hush money? Oh, no. It is not hush money. I mean really, Jim Moret, chief correspondent "Inside Edition". It is insulting the intelligence of everyone to spew out -- we know, he`s admitted he is a liar. That he lies repeatedly. He lies to the people he is supposed to be the most truthful for, his -- absolute intimate partner, his wife. Why should we believe anything he says in this book?

JIM MORET, CHIEF CORRESPONDENT "INSIDE EDITION": Well, we shouldn`t but I will tell you something. Here is my prediction. None of this, none of it, will matter. Why do I say that? Because last week he hosted an event at USC for what`s called The Schwarzenegger Institute. It is basically a think tank where people get together and discuss policy. And I went to this event and you would think that that the president was there.

They had security. And it had the pomp and circumstance of a political event. Nobody -- we were mumbling about this but nobody brought it up officially. Nobody talked about it. He will go out and sell books. He will go out and make movies. People will want to be with him, will want to be photographed with him.

The people who are being hurt right now are Maria and the kids -- all of his kids. That`s who`s being hurt. And that`s really who I feel sorriest for right now.

VELEZ-MITCHELL: Well, I think this is an absolutely outrage. I think it`s a very hostile act. And I just have to play another clip and then we`re going to analyze it. Even after Arnold had a love child with the housekeeper, Mildred Baena; the maid kept working inside the family home right with Maria for several more years. Her son secretly, his son, would play with Maria and Arnold`s kids.

Arnold told ABC`s "Good Morning" America why, in his words, he kept Mildred working in the home he shared with his wife.

(BEGIN VIDEO CLIP)

SCHWARZENEGGER: It`s worse when you start, you know, getting rid of people because it sounds like punishing somebody for having been in this situation. So that`s the best way I could handle it.

(END VIDEO CLIP)

VELEZ-MITCHELL: You know what, Wendy Walsh, psychologist -- I think this guy needs a shrink. He says that oh, this woman gives birth nine months after they have sex and it never occurs to him that this child might be his. And Joseph was born almost the same time as Maria`s fourth child with Arnold.

I mean, this is behavior that, to me, is very, very angry, hostile behavior towards women. I think that this guy has got serious emotional and psychological problems.

WENDY WALSH, PSYCHOLOGIST: You know, I wonder, Jane, does he even own a calendar or does he have people out there counting the months? Nine months, it takes. Just do the math. Nine months -- subtract nine Arnold, you can do that.

No, the truth is this degree of narcissism -- you know, you used the word earlier Jane -- remorse. He is not even showing remorse. He`s just documenting it in a very logical way. He`s saying this was a bad thing. But he`s almost saying that it was bad that it was discovered. It was bad that it came out. Not that it happened.

I`m not seeing real feelings of guilt and remorse. And this, unfortunately, is kind of common in really powerful men. They learn to compartmentalize their lives. Jane, this guy had open heart surgery in another country and didn`t tell his wife.

(CROSSTALK)

VELEZ-MITCHELL: Yes, we`re going to get to that.

Let me tell you something, this is not remorse. This is a brag fest disguised as a confessional. He is still smirking. He is still proud of his conquests. And he wants the whole world to know about it.

And I`m thinking maybe he`s upset that Maria is going through with the divorce and this is sort of revenge because this is such a hostile act. I mean, to write a book and in this book he talks about his, quote, hot affair with actress Bridget Nielsen when they appeared in the movie, "Red Sonja". Listen to this from "60 Minutes".

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Was that the only affair?

SCHWARZENEGGER: No. But I mean -- you know, that`s something that`s, obviously, between Maria and me.

UNIDENTIFIED FEMALE: She knew?

SCHWARZENEGGER: Yes.

UNIDENTIFIED FEMALE: So it is a recurring issue with you.

SCHWARZENEGGER: I`m not perfect.

(END VIDEO CLIP)

VELEZ-MITCHELL: Yes. Now, this, to me is one of the nastiest things he did, Stacey Honowitz, because he`s essentially saying oh, yes, Maria knew about Bridget. Maria knew about my affairs. In other words, he is trying to say that she was a co-conspirator.

Now TMZ says that Maria`s friends are reaching out and saying that she would never have defended him, for example, against the groping claims that he had when he was running for governor, had she known that he was a serial cheater. But isn`t this attacking her again in a manner of speaking?

STACEY HONOWITZ, FLORIDA PROSECUTOR: Well, of course. I mean I`m a prosecutor, I can`t prosecute him for anything but I mean the idea we are even sitting here and talking and giving him credence is really disgusting. I know we have to because it is out there and news and all that people want to hear.

(CROSSTALK)

VELEZ-MITCHELL: Excuse me. He was the governor of California for many years. And I remember in 2003, I believe it was, sitting in a makeup chair arguing with somebody because these women had come forward saying he had groped me, it was something like a dozen women. And Maria Shriver was defending him and saying, believe me, I have known him for years, these women have known him for a few minutes or -- words to that effect.

And I said really, as a woman are you going to vote for somebody who has that many women saying that they`ve humiliated them? And the person I was arguing with said I believe Maria. That`s why we are talking about this. This is a man who has a lot of power.

More on the other side.

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VELEZ-MITCHELL: Here`s your "Viral Video of the Day". I don`t know if I`d accept this proposal. This guy went way above and beyond in proposing to his girlfriend. He took her up in a plane and faked an emergency. And then as she thinks the plane is in trouble and goes through the checklist, at the end of the checklist, he -- unresponsive to flight controls. Ring engagement.

Do you think she`s going to marry him?

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(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: So you give this fiery speech at the Republican convention. How long did it take you before you talked to each other?

SCHWARZENEGGER: There was no sex for 14 days.

(END VIDEO CLIP)

VELEZ-MITCHELL: Does he have something with women? Is he kind of a misogynist. Now, in his new book "Total Recall", Arnold Schwarzenegger, the Governator, is admitting that he cheated on Maria Shriver who has done nothing but stand by her man.

Back when Arnold was running for governor about a decade ago, something like a dozen women came forward and accused Arnold of groping them. Maria fiercely defended Arnold`s innocence on the campaign trail at the time. Listen.

(BEGIN VIDEO CLIP)

MARIA SCHRIVER, FORMER WIFE OF ARNOLD SCHWARZENEGGER: You can listen to all the negativity and you can listen to people who have never met Arnold. Or who met him for five seconds 30 years ago. Or you can listen to me.

(END VIDEO CLIP)

VELEZ-MITCHELL: There you have it. Maria defending Arnold saying he is not a groper, essentially challenging the veracity of those women. At this point he had already secretly impregnated their maid who had given birth to Arnold`s son, a mistress/maid, who was working under the family roof.

Wendy Walsh, I have to go back to you. We could call Maria a victim. She`s always been a class act, I admire her. She gave up her journalism career when he decided to run for governor. But does she also perhaps have to look at herself in terms of possible co-dependency? I mean, at that moment she was rationalizing, justifying and enabling Arnold`s behavior, isn`t that classic co-dependence?

WALSH: Well, I would like to be to be able call her a survivor eventually, Jane. I think that there are men who become very shrewd at manipulation, very shrewd at secrecy. And no matter how close you get to them, they give the idea that they are actually being emotionally intimate with you when they are not.

This is a professional actor. And she bought his character. Now, is this partly her fault? I mean I hate to ever blame the victim. She is busy having four babies and supporting them and taking care of them. Does she have time to be a snoop and chase down her husband and try to figure out every minute he is lying or not?

She`s got her job to do and she held it as a partner there.

VELEZ-MITCHELL: Yes. And I admire her and that`s not a criticism. I`m just saying. You know, in recovery we talk about owning whatever your part is even if it is one-half of 1 percent. Then, you are not a victim, you`re a participant, so you don`t feel helpless.

Now despite this tell-all book that details Arnold`s cheating ways, he`s claiming or insinuating -- you decide for yourself -- does Maria want him back according to him? Listen to this gem from ABC`s "Good Morning America".

(BEGIN VIDEO CLIP)

SCHWARZENEGGER: I think that it is because it is everyone and interested in that. I`m sure that Maria doesn`t say that. But I`m sure Maria wishes that we all could be together and I definitely wish we all could be together.

(END VIDEO CLIP)

VELEZ-MITCHELL: Jim Moret, he`s claiming that Maria wishes they can all be together. Is he for real?

MORET: She wishes none of this ever happened. She was blindsided by the book. She hasn`t read the book. She was blindsided when he ran for governor. He didn`t even tell her about it until two days before he announced.

So what did she do? I don`t think that she is a victim here. I think she did something that is wonderful. She said my husband wants to run, I love him, I`m going to give up my career and back him. I think she believed that those claims about him groping were not true.

I don`t think that she was covering for him. I know her. She is an honorable person and I think she is a good person. I don`t believe for a second that she believes they are getting back together especially now because this isn`t a war against women. This is a war against his entire family. He has brought his kids into this now. This book will hurt every single one of those kids.

VELEZ-MITCHELL: And it is the -- extreme example of extreme narcissism.

More on the other side. We are just getting started.

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VELEZ-MITCHELL: Here we go, "Pet o` the Day". Caroline -- stunning, right in the camera. And then oh, I think I`m going to close my eyes for kind of a sexy look -- Spike. And Bailey says I`m just plain and simple.

We love your pet pics especially Bert and Rufus. We love you.

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(BEGIN VIDEO CLIP)

SCHWARZENEGGER: I always say that wherever there`s smoke there`s fire. That is true. What I want to say to you is that, yes, that I have behaved badly sometimes.

(END VIDEO CLIP)

VELEZ-MITCHELL: But It`s all a big joke as far as he`s concerned. You know when Arnold decided to run for California governor, he dropped that stunning and important piece of information on his wife Maria only a few days before his already-scheduled announcement that he was running. Arnold told "60 Minutes" about her reaction.

(BEGIN VIDEO CLIP)

SCHWARZENEGGER: She started shaking, and she had tears in her eyes. I realized that I was stepping into something that was much deeper than just me running and her being a supportive wife.

(END VIDEO CLIP)

VELEZ-MITCHELL: Kim Serafin, because of his decision to run for governor, Maria had to give up her journalistic career because it was a conflict of interest essentially. Then he repays her with -- it`s mind- boggling to me. This is such an utter lack of respect for his wife in specific and women in general.

SERAFIN: Yes. Exactly. She put her reputation on the line. She gave up her job. And I think that`s the question a lot of people would have about this book and about these interviews he`s doing is what is the purpose. He`s clearly never getting into politics ever again.

And as Jim mentioned, he clearly has a fan base; people that show up to see him speak. Why is he doing this? He even said in the interview, he doesn`t need the money. He invested his money, right? So what is the purpose of this book? Why is he putting his family through this? Why is he putting Maria through all of this again?

We don`t really know. And he`s working on five different film projects all of which people are supporting. You saw a clip in the "60 Minutes" interview of fans on the red carpet looking for his autograph. So what is the purpose of these interviews, of this book?

VELEZ-MITCHELL: Well, I think -- Jim Moret, notwithstanding and he said he was swamped at an event. I think that the world in general has stopped talking about him for 15 minutes and that freaks him out and he wants to write a book to get back. He`s a narcissist.

Stacey Honowitz, you`re a Florida prosecutor, but you deal with narcissists. This guy in my opinion is an egomaniac.

HONOWITZ: Well, I have dealt with a lot of narcissists in my personal life not just my professional right. And certainly I think you`re right. I think that his 15 minutes -- you have always have the 15 minutes of fame. He`s been out of the news for a long time other than the really bad stuff. Now he wants to get back in.

But quite frankly, you know, to go forward with this and to air all of your dirty laundry and to have her have to relive it again is really despicable. And so what I was saying before -- I know we have to talk about it, but it gives him PR. It gives him what he wants. And I just think that that`s horrible.

VELEZ-MITCHELL: But when we bust it open and call him and stop fawning and say, Wendy Walsh, his mentality is Neanderthal. He looks at the world through cartoonish lenses. He is 65 going on 15. He`s emotionally-stunted. He has no self-awareness. He is not a person who has any introspection and he admitted such. He admitted that he has a failure, he doesn`t contemplate it. He keeps moving forward. Isn`t that the opposite of what we should do?

We all have failures. But we should try to learn from them, analyze them, and grow as a result.

WALSH: Yes, Jane, but he has absolutely no motivation to grow because he has -- you mentioned all these things he is and does, but he has the two most important things that he needs which is money and fame. And as long as he continues to keep bringing money and fame to himself, he`ll never hit bottom. He`ll never hit his own bottom and have to come to some realization, never have to grow a conscience, if you will.

VELEZ-MITCHELL: Jim Moret, I think he`s upset that Maria doesn`t want to take him back. I think this is sort of a long tantrum. He is mad at her.

MORET: Well, he also believes that there`s no such thing as bad press. Don`t forget, Jane, he is orchestrating this entire fiasco that we`re talking about. That is his life. And that is he`s doing it through a book. And he didn`t just announce the book. He made a trailer like you would for a movie.

This is a big production for him. He`s out on the circuit. He`s on "60 Minutes". This is -- everything he wants he`s getting.

VELEZ-MITCHELL: Well, I don`t know why he wants this. But we`re going to give it to him.

My advice for Arnold on the other side -- I hope you`re watching because you need this advice.

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VELEZ-MITCHELL: Arnold Schwarzenegger, I`m not saying that you`re an alcoholic. I am an alcoholic in recovery and we learn certain things about ourselves in recovery. And you have the signs.

We`re terminally unique. We think the rules don`t apply to us. We think we`re special. That sounds like you, Arnold Schwarzenegger. You really feel like the rules, the regular rules of respect between a man and a woman or a man and women don`t apply to you; that you`re somehow above it all.

You`re entitled. You`re also defiant. I mean these apologies and this remorse is very superficial. I actually have compassion for you. I really think you need to see a psychiatrist and understand where this is all coming from.

You were abused by your father as a child. He beat you. That`s where it all started. You need to go back to the beginning. Find out why you are so angry and underneath the anger, there is sadness.

And once you explore all that, you won`t need to manipulate, lie, cheat, and act like you`re above it all because you`ll realize you`re not.

Nancy`s next.

END