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Nancy Grace

Flight 370 Said to Have Crashed into Indian Ocean

Aired March 24, 2014 - 20:00   ET

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

NANCY GRACE, HOST: Breaking news tonight. Has Malaysia flight 370 finally been located? 239 passengers and crew vanish into thin air after the flight abruptly veers off course, a mystery "Good night" from the pilot.

Bombshell tonight. A breakthrough. At this hour, loved ones devastated by horrific news, the possibility everyone on flight 370 believed dead. Tonight, is there a cover-up?

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Malaysia Airlines flight 370 indeed ended in the southern Indian Ocean.

UNIDENTIFIED MALE: The absolute heartache and heartbreak grows for the families of flight 370.

UNIDENTIFIED FEMALE (through translator): How can people bear this? How do I live? I`m not done yet.

(END VIDEO CLIP)

GRACE: Tonight, not one but two missing children gone. Eight-year- old Relisha with a family friend babysitting. Now she`s gone and believed to be in grave danger. And to North Carolina, a teen, Danielle, last seen walking down the street to a friend`s house, never seen again. Where is Danielle? Tonight, we are not letting go of these two missing children.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Eight-year-old Relisha Rudd is believed to be...

UNIDENTIFIED MALE: ... with a family friend, Khalil Tatum (ph). They also found the man`s wife murdered in a motel room. That grim discovery led to the Amber Alert.

UNIDENTIFIED MALE: The search is on for a beautiful young teenage girl.

UNIDENTIFIED FEMALE: If you please know where my daughter is, please give information!

UNIDENTIFIED MALE: Police, firefighters, FBI and...

(END VIDEO CLIP)

GRACE: Plus, "Real Housewife" turned real convict. Teresa Giudice and her big flirt of a husband busted when feds hone in on their lavish lifestyle, a $5 million mansion, a $30,000 to $50,000 birthday party for the little girl. Then they`re caught red-handed lying to feds to get even more money. Tonight, is the "Real Housewife" still cooking the books? Teresa Giudice orders fans "cash only" at her last book signing. Is she still trying to cheat the tax man?

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: (INAUDIBLE)

UNIDENTIFIED FEMALE: What did I tell you?

UNIDENTIFIED MALE: Teresa Giudice is one of the biggest reality stars on television. She`s recently been selling autographs for $25, cash only.

(END VIDEO CLIP)

GRACE: Good evening. I`m Nancy Grace. I want to thank you for being with us.

Bombshell tonight. Has Malaysia flight 370 finally been located? 239 passengers and crew vanish into thin air after the flight abruptly veers off course, a mystery "Good night" from the pilot. Bombshell tonight. At this hour, loved ones devastated by horrific news they receive by text! Could everyone on flight 370 be dead? And tonight, is there a cover-up?

Straight out to Martin Savidge, CNN correspondent. Martin, why should we believe this story from yet another prime minister that the wreckage has been found and it is the Malaysian flight?

MARTIN SAVIDGE, CNN CORRESPONDENT: Well, you`re absolutely right, Nancy. There are a lot of people who are very skeptical. There are even some family members of that airline that are skeptical of this information. Until they see debris, they say they really won`t believe it.

But the prime minister came out and held a special emergency press conference to announce that new data from satellites had been analyzed in a way that had never been used before, and as a result of that information, they have concluded that flight 370 had ended, in his words, over the Indian Ocean. The clear implication was that the plane had crashed into the water and that all on board had been killed -- Nancy.

GRACE: Martin, what I understand is that the U.S. is bringing in an extremely sensitive hydrophone. What is that?

SAVIDGE: Well, you know, this is a special sonar device or a listening device, actually, is what it is. And what they will do is they will trail it in the water with the hopes that they can pick up an electronic signal, the ping, as they refer to it, that should be coming from the various recorders that were on board flight 370.

Assuming that the plane went into the water and that these are now on the ocean floor, they would be releasing a signal, a radio signal, that this hydrophone could pick up. So once they hear it, they can begin to pinpoint exactly where the wreckage is. Of course, those recorder boxes would be vital to figuring out what happened to that flight.

GRACE: We`re talking your calls. Out to Holly in Ohio. Hi, Holly. What`s your question?

UNIDENTIFIED FEMALE: Hi. My question is, is I had heard several different times aviation experts say that if the plane would crash, several different alarms would be going off. What happened to that?

GRACE: Good question, Holly, Ohio. Martin Savidge, CNN correspondent, joining us from the simulator. Martin, what about those alarms Holly`s referring to?

SAVIDGE: Right, and those are very good points. It`s true. Mitchell Cassato (ph), who`s the pilot here, knows them well. These are electronic -- they`re emergency transmitters, right?

UNIDENTIFIED MALE: Yes, it`s basically an emergency locator transmitter, and what it does is it sends out a signal, the same way you would get a signal from a cell phone or anything else, but it`s just more robust. And why we don`t have those signals is a good question. (INAUDIBLE)

SAVIDGE: But they should be triggered as the result of either, one, a high impact, which you would get even on the ground, of course, or with the water, but if they touched the water, as well. So we can`t understand why there hasn`t been some sort of emergency beacon going off when this aircraft went down.

GRACE: Hey, Martin...

SAVIDGE: It`s another one of those mysteries.

GRACE: Marty...

SAVIDGE: Yes, Nancy?

GRACE: These alarms you`re talking about that Holly in Ohio brought up, I assume that they`re audible just to the human ear if you`re in that vicinity, but in this part of the Indian Ocean, of course, nobody`s there. Are you saying the alarm is something that`s transmitted, plus it`s audible to the ear?

SAVIDGE: Well, these emergency beacons -- I think that`s what she`s referring to that go off as a result of a crash. These are a frequency that are monitored by just about every aircraft and by search vessels. So it`s a very loud, very powerful signal. I`m not saying you`re going to hear it with the ear, unless you`re using some sort of radio device, but it`s monitored on every international frequency as far as an emergency beacon.

GRACE: Right.

SAVIDGE: You would know it...

GRACE: Joining me right now...

SAVIDGE: ... and satellite should track it.

GRACE: Ah, sunlight (ph), as well. Martin, don`t move. To Captain David Funk, pilot, retired international captain with Northwest Airlines. Captain Funk, thank you for being with us. We`ve been told repeatedly that there must have been some type of emergency in the cockpit. What do you make of it, Captain?

CAPT. DAVID FUNK, FMR. PILOT, NORTHWEST AIRLINES: I think that`s exactly right. They initiated a turn back towards land, which any pilot is going to do in an emergency. The first thing you`re going to do is go head to the nearest airport. In this case, it was over, so to speak, the captain`s left shoulder. So he turned the airplane back in a westerly heading. That`s the first thing he`s going to do.

The second thing you`re going to do is deal with the emergency. You don`t have time to talk to people on the ground. You fly the airplane, you navigate, and then you communicate. There`s nobody on the ground that can help you at that point anyway, so just solve the problem.

Now, whether it was, Nancy, a nefarious event -- there was an intruder -- we won`t know that until we recover the airplane. I tend to believe after this length of time it was most likely an accident, and it was a cascading event that very rapidly got out of control and beyond the crew`s ability to with it, and ultimately lost to the -- led to the loss of the airplane.

GRACE: Well, you know, something is not fitting together for me. And I guess, Martin Savidge, it`s the fact that we believe the flight went up to 45,000 feet, if that`s still true -- do we still believe that? -- almost straight up, then it goes down to 12,000 feet. Is this before or after it veers directly off course? How can all of that be true and this be a normal or SOP emergency? How can all of those things be true, Martin, in one scenario?

SAVIDGE: Yes, they cannot, you`re absolutely right. I mean, somewhere, we know that there`s a lot of information that is either incorrect or they`re basing it upon wrong sourcing.

As far as the aircraft going to 45,000 feet, that was based upon radar information that was being analyzed, but at the same time they gave that announcement out, they warned that that radar data can sometimes be very misleading. So we don`t believe it did go as high as that. It would be very difficult -- not impossible but difficult for this plane to go that high.

Then you mentioned that descent. We don`t know how quickly they did it, but to go from that height to that level, down to 12,000 feet, would be a long way to go. If it was done rapidly, it could be almost catastrophic.

So again, we`ve got, just as you point out, all these mixed signals. It cannot all be right and have an airplane still on course to Beijing. It didn`t go that way.

GRACE: Yes, you know, back to Captain David Funk. How can all those things be true?

FUNK: Well...

GRACE: That you`ve got the flight up to 45,000 feet, down to 12,000 feet, taking a T-bone, a hard turn away from their flight course. They`re hundreds and hundreds of miles off their flight plan.

FUNK: Well, they started out where they were supposed to be and then turned, and wound up going eventually to the south-southwest. The variouses (ph) in altitude -- the radar can be off as much as 10,000 or 15,000 feet in its estimate of the altitude at the ranges that that radar was reaching out and painting the skin of that airplane. So I don`t give a lot of credibility to 46,000 or altitudes below maybe 22,000 or 23,000 feet.

GRACE: Right.

FUNK: That`s a possibility...

GRACE: And that was Malaysia.

FUNK: That`s right.

GRACE: Malaysia is still saying that the flight was on course. Hold on, Captain Funk and Marty Savidge. With me right now, Rita Cosby, who has just landed in Singapore. Rita, what are you learning?

RITA COSBY, INVESTIGATIVE REPORTER (via telephone): Well, Nancy, I just flew over a huge swathe of the Indian Ocean, and I just want to tell you visually what I saw. There is a massive amount of search ships with sonars from dozens of countries -- I have never seen such a massive search effort -- looking for debris of the plane with this new news.

And also, here we`re very close to Kuala Lumpur, and families are -- this is where the plane originated from. Families here are outraged. Everyone that I`ve been talking with on the ground, they have just said how furious they are that they`re just getting this information that, again, they got the news via text, and now they want to see a piece of the plane. They want to actually get physical evidence because they are very skeptical.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: ... presumed dead, that no one survived, that the plane was lost in the middle of the Indian Ocean.

UNIDENTIFIED FEMALE: It`s been an emotional roller-coaster for the parents, partners and children waiting to hear if anyone is alive.

UNIDENTIFIED FEMALE: I`m hoping and I`m asking, please, to not hurt the people on the plane. Let Philip come back to me, please!

(END VIDEO CLIP)

GRACE: Welcome back, everyone. The family and loved ones of Malaysia flight 370 now learning the horrific possibility that every single person on the plane dead, with no explanation as to what happened, and they learn it by text.

Rita Cosby just touching down in Singapore. Rita, is that true, that they notified them by text?

COSBY: Yes, that`s what we`re told, is that family members here in Southeast Asia got the word by text from Malaysia Airlines. And if you listen to the wording from Malaysia Airlines, it says that they assume beyond any reasonable doubt that the plane was lost and no one survived. Can you imagine getting the news?

Family members here on the ground are furious. They are outraged. They feel that the search has been just botched from the begin with, (sic) and they are also very skeptical of this information. They want to see a piece of the plane.

There are reports that China and that also Australia actually saw some debris in that area where now they`re saying they believe the plane went in the water. But until they physically see the debris, until a part is actually taken out of the ocean and determined to be part of this plane, family members will not rest. And they say that this has just been messed up to begin with, and they felt it`s extremely insensitive, the way that it`s been handled.

GRACE: Well, it`s my understanding -- back to Nate Rawlings, correspondent with "Time" magazine. Nate, thanks for being with us -- that they called -- as opposed to the open press conferences, that they called the family and loved ones back behind closed doors, and they told them this news, the ones that didn`t already know it from the text messages. And then the families are loved ones were screaming, Where`s the proof, where`s the proof?

I mean, the reality is, Nate, how do they know that this is different from every other blob of metal or wreckage or garbage that has been spotted in the ocean? It seems like the families are being told very, very little.

NATE RAWLINGS, "TIME" MAGAZINE: Well, that`s exactly the point. After weeks of getting little information and sometimes no information, they get this very definitive message that, in fact, all hope is lost without any definitive evidence. The Malaysian government sent it out via e-mail and text in what I assume they thought were the best way that they could contact the families. And then the Malaysian prime minister had a press conference, where he said, We believe, based on all the evidence we have, but he didn`t go into any detail really at all as to what that evidence is.

GRACE: Out to the lines. Mary, Montana. Hi, Mary. What`s your question?

UNIDENTIFIED FEMALE: Greetings, Nancy, from Montana. I had a few, and you`ve answered some of them with some of the callers that you`ve already spoken to. My first question is, they informed us that -- originally, they said that they -- they put in that path already to turn and go left before they ever got to that point. They said they had an alternate route that was already put in, and now they`re saying that it must have been a mechanical and that`s why they turned?

GRACE: Good question, Mary, Montana. OK, Martin Savidge, another curveball to you. Got an answer?

SAVIDGE: Yes. Well, they backed off. They did say that this turn appeared to have been pre-programmed at least 12 minutes before the turn was carried out. That would have been done with the flight management system. However, now they have backtracked from that statement, and authorities say it does not appear that it was pre-programmed. It doesn`t mean that the pilots couldn`t have done this with some sort of plan (INAUDIBLE) reason, but also seems to say that it could very well have been an emergency they were responding to, attempting to return.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Family members of passengers aboard the Malaysia Airlines flight vent their frustration.

UNIDENTIFIED FEMALE (through translator): As time goes by, we feel less hopeful.

UNIDENTIFIED MALE (through translator): Our relatives were on that flight. This wasn`t an accident. Instead, it was caused by the Malaysian government. They are covering up something.

(END VIDEO CLIP)

GRACE: Welcome back, everyone. We are taking your calls. Tonight, we learn family and loved ones get a text message basically telling them, Well, this time, we think we`ve got it right. We`ve found the missing Malaysia flight 370, and everyone is dead.

To Clark Goldband. Question. The turn and descent -- actually, it may be better to throw this to Martin Savidge. Marty, can you show us a demonstration of turn and descent?

SAVIDGE: Right. Let me sort of tell you the parameters we set this up for, where you would be at 35,000 feet, and then boom, there`s some sort of explosive decompression. Maybe a bulkhead gave way. Maybe there was some explosion back in the passengers section. But either way, there is now a large hold in airframe.

You would immediately, as pilot, take it off automatic pilot -- that`s the sound you hear. You would begin making arrangements to get this plane down to about 10,000, 12,000 feet. The reason being, we would be on oxygen. Those oxygen masks in the back passenger compartment would have dropped, as well. People are breathing via that, but it`s a limited time of oxygen they get.

We need to get this airplane down to 10,000 feet. The problem you have, Nancy, is you`re also turning at the same time because, remember, you need to get it on the ground eventually. You`re not going to continue a flight with a major hole like that. So you want to turn it. You want to get it down on the ground. You`re communicating between the pilot and co- pilot. There`s a checklist. You`re talking to the people on the ground, declaring an emergency. And you want to get down there so people can breathe. So that`s the rate of descent.

But I should point out it`s not like going down in a roller-coaster. It`s not this shattering dive because the airframe is damaged, remember. It`s got to be controlled. You`ve got to keep this plane from falling apart as you descend. There is a lot to do in a short amount of time. It`ll take them six minutes to get to a point where they can breathe -- Nancy.

GRACE: I want to go to Heidi Snow, founder of Access, lost her fiance in TWA flight 800. Heidi, I know you must have been stunned when you learned that these family members of the Malaysian flight 370 learned this new information, this horrific new information, via text.

HEIDI SNOW, LOST FIANCE ON TWA 800: Right. It`s certainly very difficult to go through this type of loss, and the lack of information is really what makes air disaster loss so different from other sudden losses. But I have to say that during this process, any information that you receive is very useful. So as much as text may seem insensitive, everybody receiving it at the same time -- that`s very important. And all information is necessary. So I`m just glad that it got out at the same time to all the different families because otherwise, people hear about it piecemeal or they hear about it on the news later and not directly from the sources. That`s always a big issue for the families.

It`s very difficult news, and I -- we have begun to hear from people who`ve been clinging onto hope, and then every hour, it changes to, Maybe they`re really gone. But I have to say that this new information -- and from all of us who`ve lost people in air disasters, there`s still -- there`s still so many open questions. This new information really doesn`t confirm a lot for us.

I`ve got say that I even had -- after my fiance was killed, I could see the wreckage in the Atlantic Ocean, but his remains still were not found. And until they could confirm that his body had been recovered, I still held onto hope. I still went back and forth every few hours thinking there`s a possibility somehow he survived this.

And so this new information is valuable and it`s important for people get it, but at the same point, until there`s -- a piece of the plane comes forward or some type of remains come forward, it really isn`t -- it doesn`t really change...

(CROSSTALK)

GRACE: ... definitive. I`m with you, Heidi. I wouldn`t believe it until I had proof.

And to you, Justin Green, aviation attorney joining me out of New York. That`s just what the families and loved ones are screaming -- literally screaming at officials tonight, Where`s the proof? They`re screaming it behind closed doors, according to reports to us.

Justin Green, I`d like for you to weigh in with your expertise about what you know at this juncture.

JUSTIN GREEN, AVIATION ATTORNEY, PRIVATE PILOT: Well, first thing, the Malaysian authorities have a very difficult job. It`s almost an impossible job. But they seem to have done everything possible to make it worse. And they`ve really lost the trust. And the last thing the Malaysian prime minister is saying is, Look, trust me, at this point, the plane crashed, everyone is dead.

And as Heidi, who I know and I really applaud the work she does, says, that`s not going to be good enough for the families. Until they can confirm what happened and how it happened and bring back some tangible proof, the families are not going to accept what the prime minister is telling them to accept as a leap of faith.

GRACE: Clark Goldband, I`m just concerned that -- is this any different from all the other sightings?

CLARK GOLDBAND, NANCY GRACE PRODUCER: Well, Nancy, authorities are saying this came from a U.K. satellite. And that`s important about this is, this is the first time this company has ever tried something like this. They believe it`s in this zone somewhere down here, and authorities are still searching.

One last thing, Nancy. We don`t know exactly why they`re searching this area, but it`s important to point out not one, not two, but three countries, Australia, China and France, had possible sightings within the last 24 hours.

GRACE: So Martin Savidge, full circle, back to you. Do you believe this is flight 370?

SAVIDGE: You know, until, I think, some debris is actually pulled from the ocean and a serial number or some positive way of identifying that this is something that came from the aircraft, I`m going to be a skeptic, like many of the passengers. (sic) I`m going to be one of those that we really need to have solid proof, not just something that comes from a satellite or radar. We need a piece of the plane.

(COMMERCIAL BREAK)

GRACE: And tonight, real housewife turned real convict, Teresa Giudice, and her flirt of a husband, busted when feds honed in on their lavish lifestyle. A five million-dollar mansion, a $30,000 to $50,000 birthday for the little girl, and then they`re caught red-handed, lying to the feds to get even more money. Tonight, is the real housewife still cooking the books? Does Teresa Giudice order her fans cash only at her last book signing? Is she still trying to cheat the tax man?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Teresa Giudice, one of the stars of Bravo`s "Real Housewives of New Jersey," recently has been selling autographs for $25, cash only. Is Giudice putting aside a nest egg just in case she ends up a jailbird?

(END VIDEO CLIP)

GRACE: A nest egg? Senior reporter with radar online, Alexis Tereszcuk, what do you know about her ordering fans at a book signing cash only? I mean, whenever I`ve done a book signing, they had already gotten the book from somewhere. I assume they bought it. And I sign the book, we`d take photos or we talk about cases, but I never yelled at someone, cash only! I mean, is that the report?

TERESZCUK: That`s absolutely what our eyewitness told us. And the thing was, it was $110 to get into this event already. Did not include the $25 on top of that. People were paying $150 to see Teresa. She was telling her fans $25 cash only and no receipt. Fans were shocked. Everybody uses their credit card these days. People want their miles. It`s a book, it`s not something that you would think you couldn`t pay with your credit card for, but this is not what was going on there. This raises a lot of suspicions about why she is only taking cash.

GRACE: Okay. Alexis. First of all, can I see Alexis, senior reporter, Radaronline.com?

Alexis, where are we getting this? How do we know this happened?

TERESZCUK: We have an eyewitness who was there. They provided us with this video of the event, and that`s what they told went on there. We spoke with them very closely, and this is the evidence we`ve uncovered.

GRACE: I`m seeing it. I`m seeing it right now, Alexis. Okay. I wonder how much money she got off this event. Now, remember, these are just claims. They`ve not been proven in a court of law. Unleash the lawyers. Joining me, Robert Schalk out of New York, Randy Kessler, defense attorney out of Atlanta. Randy, let`s see a picture of that gold-plated chair you and I were looking at and the other photos we had discussed. Randy, $55,000 for a kid`s birthday?

KESSLER: Hey, to each their own. If she`s got it and she want to spend it, it`s not illegal to spend that kind of money.

GRACE: That was even more gold-plated furniture, I hadn`t even seen that one. Actually, Liz, it looked like a gold-plated commode. Or gold- plated something. It was -- what is that? Okay, yes, that`s not gold, Liz. Let me know when you find it. Randy, she doesn`t have it. They filed bankruptcy, I believe. Isn`t that right, Alexis? Haven`t they filed bankruptcy?

TERESZCUK: They did. They filed for bankruptcy. They tried multiple times and they were turned down. But now--

(CROSSTALK)

GRACE: Everybody, let`s pause for a moment and take a look at this. All right, Kessler. Take a look at that. You may have to avert your eyes. Kessler, they don`t have the money because they declared bankruptcy. And all of this lavish, lavish lifestyle, millions and millions of dollars on lifestyle, then they admit under oath that they lied on documents to get even more money fraudulently in all of these loans. Now when I hear the words cash only, that raises a red flag to me, Kessler.

KESSLER: Sure, that`s what the natural suspicions should be, but it`s not illegal to accept cash for a book, that`s what she wanted to do.

GRACE: Why are you shaking your head yes? You`re (inaudible)?

SCHALK: It is not illegal to accept cash. As long as she reports it. And I`ll bet you anything, Nancy, she`s reporting this cash now that it`s been reported--

GRACE: I bet she`s reporting it tonight, Schalk!

(COMMERCIAL BREAK)

GRACE: Now, remember, these are just claims. They have not been proven in a court of law.

You know, Alexis, I think -- and she`s not going to jail, she and her husband because they`re rich, okay? They`re going to jail because they lied to the federal government. Even Martha Stewart had to go to jail. And here`s the lesson. Don`t go anywhere, Alexis. Kessler and Schalk, back to you two.

Kessler, wouldn`t you say it`s better if the feds asked you a question and you feel you`re about to let a lie slip out, just don`t say anything. Say nothing. Take the Fifth, for Pete`s sake, or just don`t say anything. Act like you didn`t hear them. But don`t lie, for Pete`s sake. That`s how Martha Stewart got in trouble. Someone said, hey, something`s going to happen in the stock market. She called a friend about it and then she went to jail for that. And now you got this one lying on a boat and trailer, $7,500; Kawasaki ATV. What I want to see are the cars. So this is not only lifestyle but lying about it to get even more money. Shouldn`t they just be quiet instead of lying?

KESSLER: Absolutely, that`s always what offends the trier of fact. You know, when you cheat on somebody or when you steal something, it`s from somebody else. But when you lie to the court or to the prosecutors, then you`re offending them. So yes, stay quiet, trust your lawyer, and say, I`ve got a lawyer, I`d like to talk to my lawyer.

GRACE: Dr. Ramani Durvasula, clinical psychologist, joining me. Dr. Ramani, question. Is it a feeling of entitlement? What is it? Are you around so much wealth you think you`ve got to have it? When I see something other than a beat-up minivan, Dr. Ramani, I`m thinking, whoo hoo, they`re spending all their money on a car.

DURVASULA: This is not only about entitlement, it`s about feeling above it all, as though the rules do not apply to you. This idea that there`s never enough attention, there`s never enough love, and there`s definitely never enough stuff. This is narcissism on steroids. It`s at a level that is untreatable, it`s unfixable, and she`s going to keep breaking the rules until somebody punishes her on a level that`s a wakeup call, and even then I am not convinced she`ll change.

(COMMERCIAL BREAK)

GRACE: Back to Alexis and Ramani Durvasula, clinical psychologist. So Alexis, even after all this money, three houses -- I can`t remember, there`s two vacation homes, one on the water -- oh, there`s one up now. That`s a vacation home. There`s two vacation homes, then there`s a -- wow -- million-dollar mansion, and there`s all the cars, the expensive cars, there`s this birthday party for 50 grand, blah, blah, blah, but what I don`t get -- and I`m not begrudging them that. If that`s how they want to live, more power to them.

But lying on documents to get even more money. And when you steal from the federal government, you`re stealing from me and you. We`re the ones paying all those taxes. I don`t even want you to look at your paycheck because you`ll start crying, Alexis, about the taxes you pay. Don`t they have enough? And now telling people at this book signing -- let`s see the video, Liz, Alexis got for us, telling people, cash only, cash only? Why, to stick it in her pocket and not tell the feds? Now, remember, these are just claims. They`ve not been proven in a court of law.

TERESZCUK: You`re basically right. Our person that was there said there were bags of cash on the floor. The people who were taking the money were just shoving it in the bags on the side of the table. She`s also the second highest paid housewife in the entire franchise. Out of all the cities, she is number 2 highest paid. She makes over half a million dollars a season for this show. Eight episodes, and she brings in all that cash, and yet they`re still doing so many shady things that the feds want them to go to jail.

GRACE: Ramani Durvasula, I guess I need a shrink on this because Alexis and I aren`t figuring it out. I would be so worried -- let me see Ramani, I would be so worried to do anything wrong that I would get taken away from my family. You know? I wait all these years, I finally have a family. Do you think I`m going to screw up on my taxes, for Pete`s sake, or lie on some loan document? If I want money that bad, I can get a second job or a third job, but the thought of being taken away from your family, that you want money that much, to what, buy more clothes to shove in your closet?

DURVASULA: Nancy, you have a conscience and that stops you. And makes you think about consequences of your behavior.

GRACE: It`s fear, Ramani, it`s fear, because I don`t want to be in the women`s correctional, at the women`s CI while my children are being raised by my husband and his new girlfriend. Yes, no!

DURVASULA: It`s a sense of responsibility, and that sense of responsibility goes out the window when a person has spent so many years getting away with it. It becomes her reality. That`s it.

(COMMERCIAL BREAK)

GRACE: Tonight, not one, but two missing children, gone. An 8-year- old little girl, Ralisha (ph), with a family friend babysitting, now believed to be in grave danger. And to North Carolina, a teen girl, Danielle, last seen walking down her street to a friend`s house, never seen again. We are not letting go of these two missing children.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Police are searching for an 8-year-old girl who`s gone missing.

UNIDENTIFIED FEMALE: I told him, she wasn`t missing. I knew who she was with.

UNIDENTIFIED MALE: Ralisha Rudd (ph) is believed to be with family friend --

UNIDENTIFIED MALE: Khalil Tatum (ph).

UNIDENTIFIED FEMALE: Hours after a nationwide Amber alert, but still no signs of Ralisha or Tatum.

UNIDENTIFIED FEMALE: Police, firefighters, FBI and hundreds of volunteers in Hope Mills, North Carolina, are searching for a 15-year-old girl, Danielle Locklear.

UNIDENTIFIED MALE: Danielle is a freshman at Southview High School, a good student, a popular student.

UNIDENTIFIED FEMALE: I feel in my heart, I want my baby to come home.

(END VIDEO CLIP)

GRACE: Straight out to Dan O`Donnell, anchor at WISN. Let`s start with Ralesha Rudd. This is an extremely convoluted story, but let me boil it down to what I understand. Ralesha is 8 years old. She has been missing from school a couple of weeks now, but was never reported gone. I`m talking about 8-year-old Ralesha Rudd. The mom says she let the family friend, the family has babysat Ralesha on many occasion, have Ralesha. Now the family friend`s mom is dead, and the dad, we believe, has Ralesha, the babysitter dad, him, right there. Tatum has the 8-year-old girl!

O`DONNELL: In fact, he has now been charged with her murder, Nancy. We know that her body was found late last week at a Red Roof Inn, where they actually found the suspect, Khalil Tatum`s SUV. Still, however, no sign of this little girl.

GRACE: Okay, tell me about the mom. Why is the mom allowing this man to babysit?

O`DONNELL: Well, she has had a number of health problems. And in fact, when she let Tatum babysit her daughter, she was going to the hospital with some sort of issue that has not yet been explained. She`s been in and out of a homeless shelter in Washington, D.C. for the past year and a half. Social workers have been at her apartment when she did, in fact, have an apartment, almost twice a week for the better part of a year. It seems, from everything I understand about the mother, that she`s troubled.

GRACE: Ashley Young, the aunt of Relisha Rudd, Ashley, what can you tell us tonight? What are police saying?

ASHLEY YOUNG, AUNT: Well, I can tell you what I know. I know my niece is a very loving girl. And the person that has her right now, we`ve never had this problem out of him before. He always brought our Relisha home to us in time.

GRACE: Can I ask you a question. Why is an 8-year-old girl being babysat by a grown 51-year-old man?

YOUNG: It wasn`t that she was being babysit. He has a granddaughter that Relisha is friends of, that Relisha was playing with. So she was with the family and the granddaughter.

GRACE: Okay. Okay, that makes a lot more sense to me. I could not get it through my head why -- I would no more send off my little girl, 6 years old, to be alone with a 51-year-old man than the man in the moon. But now that you`re telling me he had this little granddaughter and they would play together, that makes a lot more sense to me, Miss Young. Okay, everybody, Relisha Rudd, she`s absolutely in danger. The tip line, 202- 727-9099. Dan, what can you tell me about little Danielle Locklear. She`s walking down the street to see a friend and she`s never seen again.

O`DONNELL: That`s right. On March 11, she told her grandfather that she was going to her friend`s house, down the street. It was about early evening, and she apparently, police don`t believe she ever made it to this house. She just vanished. Her grandfather has no idea where she is, nobody does. She`s been missing ever since.

GRACE: Rowna Fowler is Danielle`s mom, joining us right now from Hope Mills, North Carolina. Rowna, what can you tell us?

ROWNA FOWLER, MOTHER: I`m at a complete loss, like everybody else. This is totally out of character for my daughter. She has never done anything like this. This is just -- I`m in total shock. I would never in a million years have seen this coming.

GRACE: Rowna Fowler, Danielle`s mom, who was the last person in the family to see Danielle?

FOWLER: My stepfather, which is her stepgrandfather.

GRACE: And what was she doing?

FOWLER: She was here. He had said that she had cooked a small meal, dinner, for both of them. And later on she had just asked him, you know, can I take, I guess it was like a little folder, can I take this up the street to my friend`s house, and I guess he had told her, you know, well, hurry up and come back. And she just never did.

GRACE: Marc Klaas, president and founder of Klaas Kids foundation, weigh in, Marc.

KLAAS: Well, the good news is that the community has rallied around this family and they`re going out on massive searches. So if she`s somewhere in the area, they should be able to locate her sooner rather than later. The bad news is that her social media accounts are not being utilized at all. And 15-year-old kids today grow up with social media. It`s how they keep in touch with their friends, it`s how they keep in touch with their families, and the fact that there`s been no activity at all, I think, is a very large red flag.

What they need to do is they need to eliminate family members, they need to eliminate friends, they need to look at the registered sex offenders within the community. And I think that they`re going to find that this is a very localized case.

GRACE: Tip line for Danielle Locklear, 910-425-4103.

Let`s stop and remember American hero, Army Sergeant, Fernando delaRosa, 24, Alamo. Bronze Star, Purple Heart, Army Commendation Medal. Loved baseball and football. Parents, Rolando and Rosa. Four brothers, widow, Karen, sons, Fernando jr. and Juan Carlos. Fernando DelaRosa, American here. Drew up next. I`ll see you tomorrow night, 8:00 sharp Eastern, and until then, good night, friend.

END