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Nancy Grace

Prince Andrew Underage Sex Allegation; Real Houseife Now A Federal Prison Inmate

Aired January 05, 2015 - 20:00   ET

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


NANCY GRACE, HLN HOST: Breaking news tonight. As we go to air, we learn Prince Andrew, the Duke of York, an heir to the throne of England, holed up

in a royal lodge as a sex slave nightmare only depends, Prince Andrew in hiding as he prepares to face the queen amid claims an underage girl forced

to have sex multiple times with Prince Andrew, the Duke of York, in New York, London, the Caribbean, according to court papers, the girl allegedly

procured for Andrew by an American, Jeffrey Epstein, the girl`s father now demanding justice while the royals issue four denials of any wrongdoing.

Bombshell tonight. At this hour, the Duke of York, Prince Andrew, flies back to Britain from the Alps, where the prince has been holed up in a 22-

bedroom luxury hideaway. Is Prince Andrew headed to jail over the sex slave scandal? And does this mark the beginning of the end of the British

monarchy?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Buckingham Palace on damage control.

UNIDENTIFIED FEMALE: Prince Andrew is accused of being part of a sex ring.

UNIDENTIFIED FEMALE: A woman who says she was a victim...

UNIDENTIFIED MALE: Alleged that she was kept as a sex slave, forced to have sexual relations with the prince when she was a minor, in an orgy with

many other underage girls.

UNIDENTIFIED FEMALE: The royal family emphatically denied the allegations.

(END VIDEO CLIP)

GRACE: And live tonight, a breakfast sandwich at a local diner and top secret 3:00 AM surrender leaves "Real Housewife of New Jersey" Teresa

Giudice behind bars at a federal pen. The "Real Housewife," hiding in the back seat of a luxury SUV, leaves her $4 million mansion in the middle of

the night to surrender at a federal pen, kicking off a 15-month prison stint for fraud.

According to sources, Giudice`s greed knows no bounds, scandalous to the bitter end, trying to turn a dollar making last-minute deals to make even

more cash en route to jail, last spotted clutching a $3,000 clutch and a last-ditch effort attending mass. We learn Giudice spent tens of thousands

to make a music video and lied to her daughters about where she`s headed. Now at Danbury Federal Prison for Women, the "Real Housewife" had to hand

in hair extensions before she sat down to her first meal behind bars, beans and franks.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: That was one thing I`ll never forget.

UNIDENTIFIED MALE: For "The Real Housewives of New Jersey," the real orange is the new black.

UNIDENTIFIED FEMALE: New Jersey housewife Teresa Giudice is adjusting to a new reality, one behind bars.

(END VIDEO CLIP)

GRACE: And tonight, two police officers lose their lives in the line of duty just before Christmas. Rafael Ramos leaves behind a wife and two

children, Wenjian Liu, married in just October, both officers promoted to detective.

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

Bombshell tonight. As we go to air, we learn Prince Andrew, the Duke of York, an heir to the throne of England, holed up in a royal lodge as a sex

slave nightmare only deepens. The Duke of York, Prince Andrew, flying back to Britain from the Alps, where he`s been holed up in a luxury hideaway, is

facing claims he is embroiled in a sex slave scandal with an underage girl. The royals issue not one, two, three, but four denials of any involvement.

Straight out to Neil Sean, royal watcher, joining us out of London. OK, they`ve done a lot, but this is something I never saw coming, Neil, Prince

Andrew involved in an underage sex scandal? I mean, Neil -- let -- let -- let me think about this a moment. He could have practically any woman in

the world he wants -- practically. So why would he get involved in an underage sex scandal? Why would he try to force a young underage girl to

be a sex slave?

NEIL SEAN, ROYALS WATCHER: Well, good evening, Nancy, from London. And thank you so much for explaining all of that. Let me just tell you first

and foremost that Buckingham Palace have refuted all claims. Now, obviously, as you say, there`s four denials in there. But across the pond

in your area, they keep coming thick and fast with these brand-new claims.

I think what`s really telling, what`s broken over here today in London, is that this particular claimant is saying that she met the queen of England.

Now, Buckingham Palace have denied that a meeting`s ever taken place. There`s no record of this.

I think a lot hinges on the fact, if there is some proof and she wants to make this claim stick, then obviously, she needs to come forward with some

kind of evidence that, in fact, she did meet her majesty, the queen. Obviously, Prince Andrew, the Duke of York, is...

GRACE: Whoa, whoa, whoa, whoa, whoa, whoa, wait! Neil Sean, royals watcher, no offense, but I`m not concerned about her claim that she once

met the queen, OK? Don`t care! What I care about is the allegation that Prince Andrew, an heir to the throne, had forced sex with a minor. Now,

whether it was forced sex or not forced sex also, Neil Sean, is irrelevant because if it`s a minor, it doesn`t matter if she was going along with it

or not. What matters is, did Andrew, Prince Andrew, have sex with a minor?

I agree with you. If part of her claim is false, then under American law, which is certainly not going to apply there, a jury would be entitled to

disregard all of her story. So what you`re saying is she never met the queen. Well, if she`s lying about that, a jury will be entitled to

disregard or reject everything she says. But again, I`m not worried if she ever met the queen. I`m worried about, did she have sex with Prince Andrew

because she`s a minor.

SEAN: And he denies that. And I understand what you`re saying, Nancy, but what you`ve got to remember is, is she shifted her story very quickly from

this original claim of having sex with the Duke of York. What she`s now done and what the team over there have done is decided to now say, Look,

it`s even bigger. She met the queen.

Now, what they don`t understand is, is that anybody who meets her majesty, the queen of England, every single meeting is recorded, no matter how

minor. So this is a very serious claim that she`s made, and it would be one that would certainly make...

GRACE: Wait a minute! I want to...

(CROSSTALK)

GRACE: ... what you`re saying, Neil. You`re saying that even if the queen -- this photo allegedly of Prince Andrew and Virginia Roberts together is

from Dailymail.com. Now, I`m telling you, Neil, unless they doctored the picture, that looks like they`re together. But ever since I found out

about Photoshop, I don`t believe any picture I see unless I took it myself.

Now, let me get back to what you`re saying. You`re saying that every time the queen meets someone, there`s a record of it. So if she`s at a party or

a gathering or she`s making a public appearance, how can every single person be logged?

SEAN: No, no. If you are -- what she`s claiming, and what we haven`t seen so far, which will come out later, maybe tomorrow, in tomorrow`s press

(ph), is that they met in private circumstances. So if you and me were to meet the queen with the Duke of York, we certainly wouldn`t just be ushered

in. You would be registered. You would be going through security. There would be documentation as to who you`re taking into a royal palace, no

matter how minor. So this is a very serious claim.

And I have to keep reiterating the fact that, yes, the Duke of York has refuted all claims. So have Buckingham Palace. I think what`s

interesting, as well, what you haven`t picked up on over there so far, is that everybody`s saying, Oh, he got called back from his hideaway on

holiday to come and meet the queen. They simply had a conversation. The queen is still on her Christmas break in Sandringham, and the Duke of York

is in Windsor. If they thought this was that serious, a meeting would have been called, say at Buckingham Palace. They would have met. It`s quite

simply that. They`ve had...

GRACE: Neil, Neil, Neil...

SEAN: ... a phone conversation.

GRACE: You know what? And let me put it out there. I love you, OK? But we`re looking at this in two different ways. I don`t care if the queen is

still on her Christmas vacation, OK? And I don`t care if he`s been called home to meet with her. All I care about is, did Prince Andrew have sex

with a minor, because if he did, he`s going to jail, all right? That`s what I care about.

Now, the other thing I care about is, is she lying? Now, the first thing you said was the girl also claimed she met the queen. And you`re saying

whenever that happens, there`s a very strict log of it. Well, what if it happened under circumstances where there wasn`t a log, like at a public

function of some sort, where the royals show up and they cut a ribbon or they wave? What if it was at a function like that? Is that contrary to

what the -- you know what? Let`s just start at the beginning, Neil.

What is -- and I`m not saying I`m buying the story. I`m also not saying I don`t buy it because every time I see a picture, Andrew is out with another

lady. Well, why can`t he rein it in a little bit? I mean, you live on the edge, you might fall off, if you understand what I`m saying. So now we`ve

got claims an underage sex slave has popped up.

But let`s look at it critically, Neil Sean. With me also, Sara Nathan from Dailymail.com and Victoria Arbiter, CNN royal commentator.

Neil Sean, what is the claim exactly?

SEAN: Well, the claim is that she met him on numerous occasions, starting when she was 17, an underage minor, and obviously, without going into too

much graphic detail, there were subsequent meetings. Now, I think what`s interesting here...

GRACE: Whoa, whoa, whoa, wa-wait! We don`t think that sex is a sordid detail, unless, of course, it`s with a minor. So you`re saying that they

met, all right? According to her claim, didn`t they meet in London, New York, and the Caribbean, and on those three occasions that they had sex

procured by an American? Isn`t that the claim?

SEAN: Yes. OK, but -- OK, if you want to do that, if you want to do -- you know, if you`re making those sort of claims...

GRACE: I`m not!

SEAN: ... I could say that I`d met...

GRACE: The girl is!

SEAN: No, no, no. What I`m saying -- no, what I`m saying here, Nancy, is that, you know, it`s very easy to make those claims. Substantiate them.

You must have some proof. If you traveled to all these destinations and you`ve just got one old tatty picture of you with your arm around a prince

-- you know, we all meet people and we all -- look, you`re a celebrity. You know, you meet people, people ask you for a picture on the street.

That doesn`t needed to say you dated them. If that`s the best proof you have, then it doesn`t really stack up much, does it.

GRACE: Well, I agree with you. And this is the photo Neil Sean, joining us from London, is talking about. It`s allegedly made of Prince Andrew and

Virginia Roberts together. It is from Dailymail.com. And joining me right now, in addition to Neil Sean and Victoria Arbiter, is Sara Nathan from

Dailymail. Sara, what do we know?

SARA NATHAN, DAILYMAIL.COM (via telephone): Hi, Nancy. So what I just want to point out is that, actually, this girl`s father has put a note out

just this afternoon saying that he actually is sorry for any misunderstanding, and that his daughter said that she was going to meet the

queen`s son, Prince Andrew, not the queen herself. So that...

GRACE: OK, Sara, I really -- I hate to interrupt you, but again, I`m not really concerned about...

(CROSSTALK)

GRACE: OK. Cleared up. Now, did you get that, Neil Sean? Apparently, the father got it confused. The girl says she never met the queen, but she

was going to meet the son. There.

SEAN: OK, but Nancy -- Nancy...

GRACE: Now, Sara, can we get back to underage sex?

(CROSSTALK)

GRACE: What, Neil?

SEAN: How dumb is this guy, though? That -- no, this -- this Jeff Epstein or whatever the guy -- the daughter`s father -- how dumb is he? You know,

he lets this go `round the world, and then goes, Oh, whoops. Sorry. She didn`t meet the queen, she met -- I mean, oh, come on! You know, this has

got more holes than Edam cheese! It`s not -- of course it doesn`t stack up. I think they`ve obviously got some ulterior motive, and now they`re

possibly back-pedalling.

The bottom line is, as this story develops, I would say to you that some things are going to be ironed out where they have to offer a very, very

large public apology. I would state that this story does just not stack up. You know, we can...

(CROSSTALK)

GRACE: OK, Sara -- Neil, I know where you stand, and what we call it here is called impeachment when your story turns out to be a big, fat lie. But

right now, Sara Nathan, what do we know?

NATHAN: So all we know at the moment, they -- there are -- this case has been going back for years, and it`s been -- it`s nothing new that we don`t

know about. But what we do -- well, it`s the first time that, actually, any allegations of sexual impropriety have come forward about Andrew.

This girl now is a mother of three. She`s married. She`s been living in Australia. This weekend, pictures came out of her. She`s actually back in

the States. She is with her husband. She`s even talking now, Nancy, about writing a book later on this year. So one can only imagine that these

claims might be now part of, you know, coming back to the public eye because she wants to make -- you know, she wants to actually make more of

it. That`s all we know at the moment.

GRACE: You know, Victoria Arbiter, I`m asking Neil Sean and Sara Nathan, and nobody will give me the actual claim. I hear them both loud and clear,

Victoria. The royals deny it. They deny, deny, deny, deny. They`ve denied it four times, OK?

Now Neil and Sara have continued to deny anything. Can you please just tell me what the claims are, Victoria? And we`re not in a courtroom,

people. We can talk about the claims, all right? We`re not a jury. There`s not a judge. We`re talking about the claims this girl is making.

She is making claims that an heir to the England throne had underage forced sex.

Victoria, what are the claims? What does she say happened?

VICTORIA ARBITER, CNN ROYAL COMMENTATOR: The key word here, Nancy, you`re right, is "claim." These are very serious allegations, but she says that

Jeffrey Epstein secured her a trip to London, where she met with Prince Andrew, and it was during that trip that the alleged sex, underage sex with

a minor, took place.

But I have to point out here, Nancy, that Florida law does not apply in the U.K. These are allegations at this point, but the age of consent in the

U.K. is 16. This does not mean that the details are any less sordid. But Prince Andrew is denying this emphatically. She says that they met again

in New York, where the age of consent is 17. They then allegedly met again at the -- on the U.S. Virgin Islands private island owned by Jeffrey

Epstein. So these are very damaging allegations.

GRACE: Who is he? Michael Christian, who is Jeffrey Epstein? What does he have to do with Prince Andrew? And how is the famed legal scholar Alan

Dershowitz in the middle of all this?

MICHAEL CHRISTIAN, NANCY GRACE PRODUCER (via telephone): Jeffrey Epstein is a money manager and investment banker to multiple wealthy clients,

Nancy. He`s a very wealthy man. He pleaded guilty in 2007 to prostitution solicitation charges in Florida and he served 18 months in prison beginning

in 2008.

GRACE: Wa-wa-wa-wait! Wa-wait! So Jeffrey Epstein has pled guilty to what?

CHRISTIAN: Prostitution solicitation.

GRACE: OK, and somehow, it`s been argued that Alan Dershowitz also is part of all this, along with Prince Andrew. And I got to tell you, Michael

Christian, I don`t believe this for one minute about Alan Dershowitz. How did he get into the mix, Michael?

CHRISTIAN: Nancy, he is named in the same legal papers that name Prince Andrew, and he is absolutely vehemently denying this. He is so angry about

this, he is threatening to file papers to have the attorneys representing this woman disbarred, absolutely categorically denying he had any sex with

this woman ever.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Prince Andrew is accused of being part of a sex ring allegedly run by a billionaire.

UNIDENTIFIED MALE: Alleges that she was kept as a sex slave for three years by the prince`s former friend, billionaire businessman and registered

sex offender Jeffrey Epstein. Roberts says Epstein routinely lent her to powerful figures for sex, including well-known criminal defense attorney

Alan Dershowitz.

UNIDENTIFIED FEMALE: To be clear, you have never met -- you`ve never even met this woman, Virginia Roberts.

UNIDENTIFIED MALE: Absolutely not.

(END VIDEO CLIP)

GRACE: Tonight, Prince Andrew, one of the heirs to the throne of Britain, is embroiled in an underage sex slave scandal. The girl, Virginia Roberts

-- her name is already out there, we would not have reported it -- claims that Prince Andrew had sex with her and that she was forced to have sex

with him.

A problem I`ve got with that, Neil Sean -- and I know you`re all defending the royals, but a problem I`ve got with it is she claims she had sex with

Prince Andrew in London and the Caribbean and New York City. Now, how is she kept as a slave and what, flown around the world first class in private

jets? I mean, how can you be a sex slave -- and what is disturbing me about that, Neil, is that I have worked and defended real sex slaves, child

prostitutes, and their life is a living hell -- a living hell, Neil. And so I don`t understand how she`s claiming the whole thing worked.

Now, I get it. The royals deny it. Before you all start that up again, I understand they deny it. Can you just tell me, how does Virginia Roberts

claim that this happened? And I can tell you right now, Alan Dershowitz did not have sex with a minor. But I can tell you this much. There`s no

way that Alan Dershowitz would violate the law in this manner. Absolutely not. I don`t believe it for a minute. And that casts doubt on the whole

story.

So tell me, Neil Sean, how does she claim this whole sex slave ring caught her and transported her from one luxury hotel to the next?

SEAN: Well, as you pointed out, Nancy, right at the beginning of the segment, you know, Prince Andrew is -- is, shall we say, one of the most

eligible people that anybody would want to date. You know, any woman wouldn`t have to be made difficult, shall we say. He is available. He`s

single. He`s not with, of course, Sarah Ferguson, so he still is technically a single man.

I think what`s interesting with this particular lady`s story, Virginia Roberts, is -- and more will develop. You will read about this tomorrow.

She has a rather salacious background and I can tell you a rather huge imagination. I can`t say anymore than that at this point. What I can tell

you is that there`s too many holes in her story. As you rightly point out...

GRACE: Now, hold on, Neil Sean. What we call that over here is slinging mud and blaming the victim. I`m not saying I believe her. But when you

say, Oh, she`s got a horrible background and a vivid imagination -- translation liar -- and then say, But I can`t explain that, that`s not

going wash.

Victoria Arbiter, what do you know about Virginia Roberts? Why would Neil Sean say she has a vivid imagination and a bad background?

ARBITER: Well, I think Virginia Roberts has even admitted she was a young runaway. She was 15 when she became embroiled with Jeffrey Epstein. She

was clearly naive, ignorant and looking perhaps for someone to take care of her. I mean, any young girl that`s 15 that`s being allowed to cavort

around the world on private jets with a man that is not known to her parents, you`ve got to wonder what type of upbringing she had.

GRACE: Well, wait a minute. Wait a minute. So you are saying, Victoria - - and I assume you, too, Neil -- that at the age of 15, she was fraternizing with -- in some capacity with Epstein, who has now pled guilty

to, I guess, procuring prostitutes. So if you`re admitting that, then you`ve gone a long way to confirm the claims, Victoria.

ARBITER: Well, no, because I think what we really have to stress here at the moment, Nancy, is that both Prince Andrew and Alan Dershowitz -- they

are collateral damage at this point. They`re not being investigated. They`re not being charged with anything. Scotland Yard said it has not

received any formal complaint about Prince Andrew.

What these women have done -- Virginia Roberts, along with three other women -- they are filing a civil proceeding -- it`s been going on for a

very long time -- against the U.S. government. They say that their needs were not met. They weren`t consulted when a plea deal was arranged with

Jeffrey Epstein back in 2008.

GRACE: OK, hold on. Let me get my mind around this. Sara Nathan, (INAUDIBLE) editor-at-large with Dailymail.com -- so are you telling me

it`s confirmed that at the age of 15, this girl had hooked up with Epstein and was flying around the world with him, and he has pled guilty to

procuring prostitutes?

NATHAN: Yes. I mean, the charges against Jeffrey Epstein have already been and gone. He`s already done time. She actually met him when she was

working at Donald Trump`s Florida club, Mara Lago, in 1988. I mean, it was just after her 15th birthday. She met Jeffrey Epstein`s friend, Ghislaine

Maxwell, the daughter of Robert Maxwell, the famous newspaper proprietor (ph) in England. She was a friend of Epstein`s, and she introduced her to

Epstein, this girl, Virginia. And then she says she was swept up into their world. She was made to become a sort of a sex slave, just, you know,

as a masseuse, she was given...

GRACE: Did you just say that she seduced him or was introduced to him?

NATHAN: She was introduced to him, but then asked to give him a sensual massage soon after meeting him, which...

GRACE: OK...

(CROSSTALK)

GRACE: OK, but all of that is on him, not her, because she`s a minor.

NATHAN: Of course.

GRACE: So what I`m hearing from, really, all three of you is that at age 15, she creates a sex relationship with Epstein, a wealthy American, who

has now pled guilty to procuring prostitutes for wealthy individuals. Now, is he connected in any way? Is Epstein connected in any way to Andrew?

That`s my next question.

Do we have a connection, Neil Sean, between Epstein and Andrew?

SEAN: Well, there was a connection. A picture is what we`ve seen so far. You know, Prince Andrew, the Duke of York, has never publicly said he was

in any business liaison with him at all. What you see and what you`ve seen in Sara`s Mailonline column are pictures of Prince Andrew walking in

Central Park with him.

Now, you know, you can speculate on that what you want. But as I said to you right at the beginning, I could be walking with you, and we could be on

the front page of "The National Enquirer" as an affair. It`s as simple as that. So that person comes out and either says, I did this or I didn`t do

that, then you can only speculate at this point.

(COMMERCIAL BREAK)

GRACE: At this hour, Prince Andrew, one of the heirs to the throne of Great Britain, now facing claims that he is embroiled in an underage sex

slave scandal.

Michael Christian, if you could break down for me how the girl claims this happened.

CHRISTIAN: She basically says that she was working as a sex slave for Jeffrey Epstein, and that he forced her to have sex with the prince on

three separate occasions, or at least in three separate geographical locations. What`s really interesting, Nancy, and we haven`t touched on

this, she says the third time, which was in the U.S. Virgin Islands, it was actually as part of an orgy with numerous other underage girls. That`s in

the court filing.

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

LISA: Hi, Nancy. Thank you for taking my call. Can I just ask the question, please -- with all the money, power and fame that Buckingham

Palace has, can he still be charged accordingly?

GRACE: To Neil Sean, royal watcher. How long -- I mean, how would that work? Can a prince -- can the prince of England be charged with a crime?

SEAN: Well, obviously, nobody is above the law, even here in England, whatever people may think. As we`ve stated many times, the Duke of York

has refuted these claims, but if that wasn`t to be the case, then, of course, yes, naturally, he would be, you know, tried in a court of law. I

mean, you know, it just goes without saying. Naturally, it would happen, yes.

(COMMERCIAL BREAK)

GRACE: At this hour, Prince Andrew, one of the heirs to the throne of Great Britain, now facing claims that he is embroiled in an underage sex

slave scandal. Michael Christian, if you could break down for me how the girl claims this happened.

CHRISTIAN: She basically that said she was working as a sex slave for Jeffrey Epstein and that he forced her to have sex with the Prince on three

separate occasions or at least in three separate geographical locations.

What`s really interesting is, see we haven`t touched on this. She says the third time, which was in the U.S. Virgin Islands, it was actually as part

of an orgy with numerous other underage girls. That`s in the court filing.

GRACE: Out to the lines, hi Lisa. What`s your question?

LISA: Hi Nancy. Thank you for taking my call. Can I just ask the question, please, with all of the money, power and fame that Buckingham

Palace has, can he still be charged accordingly?

GRACE: To Neil Sean, Royals Watcher, how long, I mean, how would that work? Can a prince, can the Prince of England, be charged with a crime?

SEAN: Well, obviously nobody is above the law even here in England whatever people may think. If -- As we`ve stated many times, the Duke of

York has refuted these claims but if that wasn`t to be the case then, of course, yes, naturally he would be, you know, tried in a court of law. I

mean, you know, it just goes without saying. Naturally it would happen, yes.

(COMMERCIAL BREAK)

GRACE: Live tonight. A breakfast sandwich at a local diner and a top secret 3:00 a.m. surrender leaves Real Housewives of New Jersey, Teresa

Giudice behind bars at the federal pen. The Real Housewife is hiding in the back seat of luxury SUV leaves her $4 million mansion in the middle of

the night to surrender at a federal penitentiary kicking off a 15 month prison stint for fraud.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The reality TV star Teresa Giudice is now a federal prison inmate. The mother of four turned herself in around 3:00 a.m. this

morning, reportedly after negotiating her early surrender during a series of phone calls with prison officials on New Year`s Eve.

(END VIDEO CLIP)

GRACE: Straight out to Alexis Tereszcuk, Senior Reporter, RadarOnline.com. Welcome back, Alexis.

Alexis, I can`t believe it really happened. Teresa Guidice is really behind bars. Is it true that she left her $4 million mansion hiding down

in the back of a luxury SUV?

ALEXIS TERESZCUK, SENIOR REPORTER, RADARONLINE.COM: It is 100 percent true. I actually can`t believe it either. I never thought she would

actually make it to prison. I thought for sure there would be some last- minute deal, but nope. She did. She escaped. Her lawyer picked her up in an SUV. She hid in the back like a.

GRACE: Alexis, this is the first time I`ve ever seen her dodge a camera. This is the SUV.

TERESZCUK: It`s true.

GRACE: She got a ride in the middle of the night. She is in the Danbury Federal Penitentiary, as we speak. And Alexis, as my understanding, the

first thing she had to do is hand over her hair extensions.

TERESZCUK: Absolutely right. You cannot have them in prison, unfortunately. And this is -- but look at her, she`s got this giant New

Jersey hair, and that`s one of her trademarks, then she sells a hair care line. So I guess she`ll be able to sell a lot more when she gets out,

maybe to other women that have been really from prison to take care of their hair.

GRACE: OK. Candace Trunzo, Senior News Editor DailyMail.com, what do we know about Danbury and what will life be like for Teresa Guidice? I

understand she was trying to make money up until the very end. Her greed knowing no bounds still trying to turn a dollar, even trying to make deals

to work and make money from behind bars, Candace.

CANDACE TRUNZO, SENIOR NEWS EDITOR, MAILONLINE.COM: Absolutely. But that`s not allowed in prison. She`s going to have to tow the line just

like every other female prisoner at Danbury. She`s got to give up all of her clothes, the shoes she goes in with, all of her jewelry except for a

very plain wedding band, and she`s going to have to take the top bunk of a metal bed. I`m sure that`s very, very much unlike what she sleeps in in

her New Jersey -- yeah, mansion.

So, life is going to be very simple and different for her. I mean, she`s used to luxury. She`s used to living in and relax luxury, and that ain`t

going to happen anymore, not at Danbury.

GRACE: You`re seeing video of the Real Housewives of New Jersey from Bravo. This is one of the mini many tours that the Real Housewives gave up

one of her multimillion dollar homes. As we look at that, joining me is Jody "Babydol" Gibson, former Hollywood madam author of "Convicted.".

Ms. Gibson, thank you for being with us. Can you tell me what life is like in Danbury? And while we hear that, I want to see that comparison to

Teresa Guidice`s $4 million mansion.

JODY GIBSON, FORMER HOLLYWOOD MADAM: Well, she`s definitely not going to be in locked down cell with eight prisoners doing life sentences for

murder, fortunately.

However, you know, you are virtually stripped off everything. Everything not just your clothes and the ability to get yourself cared for

as a woman but your self-worth and how you feel going through this experience just stripped off everything.

You know, the facility is not a locked down environment it looks much like an office but instead of the desks, there are partitions that separate each

cubicle. So, she`s not in a locked down severe environment. She`s going to have access -- most federal facilities have hair salons. She can get

her hair done, you know there`s -- it`s polarizingly different from a maximum security state penitentiary.

GRACE: What sort of dangers, if any, does she face behind bars?

GIBSON: You know her biggest danger Nancy is that she`s a target coming in off of a high profile case that has to do with money and Hollywood. She

will be a target.

The biggest challenge for her will be how to learn how to say a lot and say nothing. You can`t say yes, you can`t say no. She`ll be descended upon

like bees on honey, descended upon by every inmate who thinks she`s going to get them this, she` going to get them that, 24 hours a day she will be

barraged by inmates looking for things. And so she has to learn how to handle that.

GRACE: (inaudible) lawyer is joining me, Hugo Rodriguez and Jason Oshins.

First of all Jason Oshins what is the breakdown about how much time she`s really going to do? I mean, even with all the millions of dollars, Jason,

that she is raking in during Real Housewives of New Jersey and living does this -- it`s almost repulsive, lavish lifestyle, the reality is that she

lied and pled guilty to lying on federal documents to steal even more money.

And before you guys defend her, she`s stealing from you two, all right? So you can take on 10 or 12 more cases to make up but she stole out of your

pocket, but how much time, Jason, is she really going to do? Is it 85 percent of the time?

JASON OSHINS, DEFENSE ATTORNEY: On a fed case she`s going to do about 85 percent there`s no good behavior unlike in most states or when a state is

filled up and they release you early. Here she`ll do out of that 15 months she`ll do a shade under 13 months and like your guest had said, it`s not a

max prison. Her biggest challenge will be maintaining her self-esteem for those 13 months.

GRACE: Well, wait. Maintaining her self-esteem. I don`t think Teresa Guidice has any problems maintaining her self-esteem. Hugo Rodriguez agree

or disagree with what she`s facing behind bars. I mean, this is Danbury it`s not like its Alcatraz, it`s not Rikers.

HUGO RODRIGUEZ, DEFENSE ATTORNEY, FMR. FBI AGENT: This is a camp she`s going to end up doing about nine months at the camp. Under the federal

system, she`ll do a little less than 13 then she`s eligible for a halfway house where she`ll spend less than a month, then she will go on home

detention for the remainder of her 13 months sentence. So, she`ll do about nine months inside the camp.

GRACE: Everybody you`re seeing a video of Real Housewives on New Jersey from Bravo, OK. Here`s the thing, for her to get out, Candace Trunzo,

DailyMail.com and Alexis Tereszcuk, RadarOnline.

Candace, you know, let me ask the lawyers this. Jason, for her to get out, does she have to speak to anybody on pardon and parole because even as she

is going to jail. She spends tens of thousands of dollars having a music video shot for her, I guess 10-year-old daughter or one of her daughters

and is still trying to turn a deal on her way to jail. Basically, she`s still trying to make money. I mean, she has learned -- oh, is that the

music video? OK, hold on.

I got to drink this in. Alexis, what is this?

TERESZCUK: This is Teresa`s oldest daughter, Gia Giudice, she`s 13 years old and she and her two friends have gotten together to make music videos.

She wants to be a pop star and in fact has been in talks to have her own reality show of her mother Teresa even though she was on her way to jail,

would desperately trying to find a way to get her daughter out there, put her in provocative outfits and just to make her as famous as she possibly

could before she got locked up.

GRACE: OK, I`m about to choke thinking of my daughter dressed like that and doing that on a video. This is from YouTube everybody and as Teresa

Guidice heads to prison, this is what she`s doing.

(COMMERCIAL BREAK)

GRACE: And at this hour, Real Housewives out of New Jersey, Teresa Giudice is absolutely behind bars at a federal penitentiary. After a breakfast

sandwich at a local diner and a top secret 3:00 a.m. surrender, she`s behind bars first having to give up her hair extensions.

Before she settles down for her first prison feast beans and franks. This after stealing hundreds of thousands of dollars from the government, from

taxpayers.

Here she is hiding in a luxury SUV as she is driven to Danbury Federal Penitentiary.

Now, facing time behind bars way from her husband and, most important, from her children, please listen to her new year`s resolution.

(BEGIN VIDEO CLIP)

TERESA GIUDICE: Dina, I do the same thing. I don`t really make New Year`s resolutions, but when I`m forced to, I do.

DINA MANZO: All right so let`s say I`m forcing you to.

GIUDICE: OK.

MANZO: Give me your top.

GIUDICE Going forward, I would like to stop eating bad carbs.

MANZO: That`s a good one.

GIUDICE I used to always have the best ass, right? I know. And, I mean -- and now I have to keep exercising. So if not, then I may have to get one

put in.

MANZO: Maybe because we`re in our 40s now, we got to work a little harder.

GIUDICE We do.

(END VIDEO CLIP)

GRACE: OK, that`s from glam.com. OK, I`m with the lawyers, Hugo Rodriguez, Jason Oshins. Jason, she`s facing time behind bars. She is

leaving her children behind for over a year. And her New Year`s resolution is to eat less carbs.

How about not stealing from the taxpayers or even more simple, not lying? That`s a tough one for everybody. But really stay away from carbs, Jason.

I would like play that for the pardon and parole board.

OSHINS: Yeah, that`s not going to work for them. But more importantly listen, she`s a capitalist, she`s trying to maximize her ability to, you

know, have something.

GRACE: Steal?

OSHIN: . after she gets out of prison.

GRACE: Steal?

OSHIN: Wouldn`t be the first one who did that.

GRACE: OK, that -- Jason?

OSHIN: Yes.

GRACE: That`s your defense? She`s not the fist one? That -- Did you say that?

OSHIN: No, we`re now indicting her as she`s going into prison.

GRACE: She`s already been indicted.

OSHIN: . for trying to be capitalist?

GRACE: No, for stealing.

OSHIN: She`s maximizing what her cache (ph) or time that she has.

GRACE: Put him up. My mother in her `80s still works, two jobs, OK? She`s still working.

OSHIN: God bless her.

GRACE: OK? And this woman is stealing from her and my father.

OSHIN: She`s about to serve her time for that, Nancy.

GRACE: But you`re saying it`s the American way. Is that not what I heard here?

OSHIN: It is the American way. We`re capitalists here in this country. People get rewarded after they do their time. She`s not going to be the

first.

GRACE: Not for stealing.

OSHIN: . you won`t be the last, Nancy.

GRACE: Not for -- can I, you know, hold on. Hugo, please weigh in. Will this have anything to do with when she gets paroled?

RODRIGUEZ: There is no parole and there is no pardon in the federal system. She`s going to get out and be on what`s called supervised release,

which is another form of probation.

But in addition to that, she has restitution of approximately $400,000 and possibly another $200,000 in what the feds call substitute assets. So she

and her husband are going to be monitored very closely. They`re going to have to get permission to get credit cards, they`re going to have to get

permission for every financial transaction.

GRACE: Oh, please, she just dropped tens of thousands of dollars on a kind of a frankly, exploitive music video for her little girl. Greg Cason

psychologist, her New Year`s resolution is to eat less carbs. Help me.

GREG CASON, PHD: Yeah, this is someone who is avoiding the obvious. She`s the queen of bad decision making. Everything she does points to bad

parenting and bad choices. And this is just one more. I wouldn`t get behind her for anything.

The only thing she can do is to earn money. And that is where reality makes its impact is in making money and making stars out of people who are

trash like her.

GRACE: I want to ask the question how old is this daughter. But I`m afraid of what the answer is. I just heard in my ear, thank you for

telling me, after I asked not to know. The daughter has just turned 13. I don`t know when the video was made. But, this is the video she dropped

tens of thousands of dollars, it`s on YouTube, Teresa Giudice`s daughter. But as we go to break, this is what she tells glam.com.

(BEGIN VIDEO CLIP)

GIUDICE: Dina I do the same thing I don`t really make New Year`s resolutions, but when I`m forced to, I do.

MANZO: All right. So let`s say I`m forcing you.

GIUDICE: OK.

MANZO: Give me your top.

GIUDICE: Going forward I would like to stop eating bad carbs.

MANZO: It`s a good one.

GIUDICE: I used to always have the best ass, right, you know? And I mean. But now I have to keep.

(COMMERCIAL BREAK)

GRACE: At this hour, Real Housewife of New Jersey Teresa Giudice finally behind bars for stealing hundreds of thousands of dollars from taxpayers

lying on federal forms.

Alexis Tereszcuk, Candace Trunzo, is it true Alexis, that she told her daughters she was going to jail to write a book about going to jail?

TERESZCUK: She told her two younger daughters, yes, exactly. She`s lied to them. She`s still lying. She told them that she was going to jail to

write a book. The two older daughters know she`s going to jail for real, but they have no idea why. What the real reason is.

So, she`s just still lying to her children. Cannot physically tell the truth even the night before she goes to jail.

GRACE: Candace Trunzo, DailyMail.com, what do we know about life behind bars for Teresa Giudice?

TRUNZO: Well, I think it`s going to be a very tough transition for her, from the moment that she stepped in to the prison day, she was strip

searched, she had to give a urine sample to make sure that she`s not on any drugs. She had to do what`s called a squat and cough, to make sure that

she`s not hiding anything in her body.

And then, you know, she`s just gong to be -- it`s kind of lean and mean. As another one of your guests said it`s kind of like a camp. But it`s a

camp where she`s going to be in the top bunk of a metal bed.

GRACE: You know who`s really suffering Candace and Alexis and to the lawyers Hugo, Jason is really suffering, whether she`s a good mom or not,

her children to have their mother taken away. And one day they`re going to read all about this on the internet. That`s the worst punishment of all.

Let`s stop and remember American Hero Army Sergeant John Bubeck, 25, Collegeville Pennsylvania, Bronze Star, Purple Heart, known as a jokester.

He followed his heart and always to others before himself. Mother Judith, brother Jim, sister Katherine, John Bubeck American survivor. And tonight,

we remember other heroes.

New York City Police officers who lost their lives in the line of duty just before Christmas, Rafael Ramos leaves behind a wife and two children and

Wenjian Liu just married in October, both now promoted to detective. Good night, friends.

(BEGIN VIDEO CLIP)

PEI XIA CHEN, WIDOW OF WENJIAN LIU: The caring son, a loving husband, and a loyal friend. You are an amazing man.

MARITZA RAMOS, WIDOW OF RAFAEL RAMOS: Rafael Ramos, who will always be loved and missed by many.

(END VIDEO CLIP)

GRACE: Drew up next, I`ll see you tomorrow night 8:00 sharp Eastern and until then, good night, friend.

END