world it was chen's desire to remain in china, but the 40-year-old blind dissident is now receiving medical treatment after sustaining a foot injury escaping house arrest with the help of supporters last week. chen told the associated press that u.s. officials informed him of a threat that his wife would be beaten to death if he did not leave the american embassy. state department officials have insisted that is not the case. in a phone be interview with sky news, chen explained why he's worried. >> translator: when i was inside the u.s. embassy, i couldn't get information. now i have it, and i can sense certain things, and i've changed my mind. >> reporter: the timing is awkward for secretary of state hillary clinton who is in china with treasury secretary tim geithner to discuss economic and global security issues. today clinton didn't mention chen by name but did mention the broader issue. >> the united states raises the importance of human rights and fundamental freedoms because we believe that all governments do have to answer to citizens' aspirations for dignity and the rule of law and that no nation can or should deny those rights. >> reporter: congresswoman ileana ros-lehtinen says it should have been obvious to u.s. officials all along that there's no way to guarantee chen's safety as long as he is within reach of the, quote, chinese police state. she says the u.s. should not have given in to chinese pressure. megyn? megyn: wow, mike, thank you. well, the obama administration is facing a torrent of criticism for its handling of this situation. former u.s. ambassador to the united nations john bolton is calling this a train wreck, referring to it as diplomatic malpractice. and some are saying that this chinese dissident was rushed out of the u.s. embassy so as not to spoil the strategic economic talks that america's having with china right now in beijing. some political writers suggesting this crisis could impact the 2012 presidential race. we'll debate that later right here on "america live." new fallout, now, over how the white house marked one year since the beth of osama -- since the death of osama bin laden. we're digging deeper into a new ad challenging the president on his own ad. they feel he's taking credit for what the navy seals did. take a look. ♪ >> i said that i'd go after bin laden if we had a clear shot at him, and i did. i did. i did. i did. megyn: chris stirewalt is our fox news digital politics editor and host of "power play" on foxnews.com. chris, if you watch the full segment, it is powerful. there's no question, it is a powerful shot at president obama, and they are suggesting that he is spiking the football contrary to what he said he would not do one year ago. it's an ad organized by a bronze star winner who fought in iraq, who is himself a veteran, who will be here live in about an hour to discuss the ad. but what is your take on it and its impact, potentially, in this race? >> well, the first sellingway, megyn, is that i bet the obama campaign wishes they had never run an attack ad on mitt romney as it related to the killing of bin laden. big mistake. because what it did was open them up and open the president up to this kind of criticism, and especially from somebody like your guest later, mr. aarons, this is the kind of moment that somebody who has a record to stand on, somebody who is politically savvy, somebody who knows people with money can really make stick to a president in an election year. megyn: they talk about in the ad they have a sound bite of president bill clinton from president obama's ad, okay, president obama launched this ad touting the one-year anniversary of bin laden's killing and taking a shot at mitt romney saying he wouldn't have done it. he uses former bill clinton who says, and i quote: suppose the navy seals had gone in there, suppose they'd been captured or killed, the downside would have been horrible for him. and the ad reads, horrible for him? meaning president obama, that's who we're worried about? if navy seals had been captured or killed on the mission, it would have been horrible for president obama? what of that line, chris? it hasn't gotten a lot of attention, but how did that that wind up on the editing room floor? [laughter] >> well, how did that whole ad that could have been sort of an elegant, graceful thing turn into what is now shaping up to be a serious problem for the campaign? they overcooked it and, look, we hear a lot about the political genius and the ability of president obama and his organization. but one has to wonder that if you could muck up something that should be an easy win on the one-year anniversary of the killing of usama bin laden by so rankly politicizing it and talking about it in these terms and attacking mitt romney with it preemptively, you have to wonder how good they really are because this was an unforced error that cut into what should have been a great thing for them. megyn: chris, what -- you know, back in the 2004 presidential election john kerry got, became known as swiftboated, the swiftboat veterans for truth put out these ads that were just devastating against him and his time in vietnam and whether he was a hero or was not a hero, and be it really impacted his race for president. already comparisons are being made between this ad and that one. fair? >> sure, fair. but also we should remember that the world has changed, the political world has changed since 2004 in a big way that all these outside groups are doing all of these things, and there are outside groups that have the blessingover the president -- blessing of the president, that are trying to do the same thing to mitt romney. the outside group, the third party that is speaking very loudly in this campaign is a big part of life today. in 2004 it was surprising and shocking. the real similarity here is the potential to take, in john kerry's case it was his vietnam service, to take a positive for a candidate and turn it into a negative. that's the danger the president faces on this, and if this group gets some money behind it and starts putting on air, it could be big trouble. megyn: well, that's the thing, these ads come out, and they do or do not why a bunch of -- buy a bunch of ad space, but they become such big news stories that they get can exposure anyway, and i'm going to ask if this is the strategy of this ad, we will not be showing the ad in its entirety on this broadcast, but i want to talk to the person behind it about that and whether they do plan on purchasing an ad buy. chris, how -- if ad, you know, whether fair or not fair, i think do you agree it's a powerful piece? >> oh, my gosh, it looks like jerry bruckheimer directed the thing. it is tremendously powerful. you have the seals coarsing through the water, landing ashore. it makes the president look very small. it makes him instead of look big, it makes him look small. it's very effective. megyn: so if they do get boatloads of money as you suggest and they wind up airing this thing all over cable news, does it has the potential to effectively limit the bin laden talking point for president obama on his re-election campaign? because once an issue gets so toxic, you don't even want to go there. even in the his seven-minute campaign video, health care got like a 10-second mention. you know, that issue he's been hobbled on. could this have the effect of doing the same? >> well, let's putbe the blame where it belongs. the campaign did it to themselves by using this as a preemptive strike on romney, so they opened the door to this and more. but, yes, if this becomes a real hot button and this becomes a big subject of debate because of what the campaign did and what groups like this are going to do, yeah, you get to a point where the president isn't able to really talk about the issue that much without conjuring unsavory thoughts in undecided voters' minds. megyn: chris stirewalt, very interesting. thank you, sir. >> you bet. megyn: the group is called veterans for a strong america, and it is led by an iraq war veteran. he has been politically active, he supported john mccain, we believe, for president in '08 and george bush before that. the bronze star, he was awarded, for his service to our country. and he was also recognized by former secretary of defense donald rumsfeld as one of the 50 heroes in the war on terror. aarons also has ties to republicans candidates as we have mentioned, and we'll talk about that in just a little bit, and he will join us live in our next hour on the thought, the thinking behind this ad and where it goes from here. another war memorial now considered controversial because it has a cross on it. an atheist group threatening a lawsuit to take the thing down. what the city is now doing to gear up for a fight of its own. and new information on the controversial bush report that hurt dan rather's newsman career. we have reached out to him about half a dozen times. so far, he appears unable to speak to the show, but we'll speak to someone who appears in mr. rather's new book who you know very well. and the candidate in one of the most competitive senate races in the country finds herself at the center of a controversy over her self-proclaimed minority status? elizabeth warren, really? now she's speaking out as her critics go on the attack. >> by the way, she also says she's native american, and liz warren is an indian in the same way that the stripper who accepted brando's os o car was -- oscar was sacajawea, all right? 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[ laughter ] we're servers at red lobster. and we sea food differely. >> you know, i am very proud of my heritage. i am very proud of the stories that my grandparents told me, that my grandparents told my parents and my parents told my brothers and me. being native american is part of who our family is, and, um, i'm glad to tell anyone about that. i'm just very proud of it. megyn: well, that was elizabeth warren who is locked in a fierce battle in the state of massachusetts, the commonwealth, against senator scott brown, a republican, who won ted kennedy's old seat. elizabeth warren now wants it back for the democrats, and she has found herself at the center of the major controversy over the fact that she listed herself as a native american working at harvard. during an initial search, a genealogical society could find no trace of warren's native american roots. one genealogist now says it does appear that her great, great, great grandmother was listed on some document that is not independently verifiable as cherokee. the woman's name was sara smith. critics now question whether warren was trying to use so-called minority status to advance her position professionally. she says that's not the case. michael graham is a radio talk show host and a columnist at the boston herald which has been covering this story. michael, she says great, great, great granny has some cherokee indian in her and, therefore, that she -- elizabeth -- is very proud of her native american history. fair? >> well, on the long list of things that are more indian than liz warren, you can add indian ice cream, one-sixth of the band village people and every member of the baseball team and me, michael graham, because my great, great grandmother, nancy hill, was a cherokee from the oklahoma territory, but i've never done a single broadcast as boston's only native american talk show host nor do i list myself as your native american voice of the people. the reason this is an issue is because she made it an issue. she went to the university of texas and the university of pennsylvania and listed herself as a minority member of the law school faculty. then she -- megyn: she calls herself a minority. >> yeah. she called herself one at harvard -- megyn: because of great, great, great grandma sara smith. just want to make sure we have the facts out. [laughter] >> if your daughter played pocahontas in the third grade rendition of the story of the founding of america, she is more native american than liz warren, let's be clear here. the washington examiner went back and looked at the law school yes ten den cials of the -- credentials of the people she taught with, everyone had a top ten law school degree except her. she went to rutgers -- megyn: it's the harvard of new jersey. no, wait, that's princeton. >> then you go to all of the ivy league law professors, she's next to the bottom when it comes to the standing of her law school. so now you add i'm talking about a heritage that doesn't exist, i got some cushy jobs in academia, it looks more and more like she used her bogus standing as my fellow cherokee to advance her cause in her academic career. megyn: she says you're being too hard on her, the reason she checked the box in her role at harvard is because she wanted to meet others with similar backgrounds to hers. take a listen. >> the directory, um, i was listed in the directory because i listed it myself. >> okay. so why did -- why did you stop being listed as -- >> you know, it was a long time ago, but mostly i was listed because i thought i might be invited to, um, meetings where i might meet more people who had grown up like i had grown up, and it turned out there really wasn't any of that, so that was that. megyn: she didn't meet anybody just like her. she just was looking for fellow native americans to hang out with on the harvard campus, michael. you're being too tough! >> she actually told the boston herald she was hoping she'd get invited to a luncheon because being a good liberal, she's looking if far free lunch. i'm kidding. megyn: listen, let me just jump in, i mean, is it really, is it so much of a mystery that ms. warren may have stretched the truth a little bit on her native american roots, notwithstanding the great, great, great grandma, sara smith, who may or may not have been cherokee? nonetheless, does anyone care? remember scott blumenthal over in the state of connecticut who was on camera lying about going to vietnam? maybe he didn't lie, maybe he just said he was in vietnam, it was a mistake the numerous times he said he served in vietnam, meantime, the man never served in vietnam, never. he got several deferments. so you tell me, he still got elected, michael. he was the attorney general then, now he's a senator. people don't care! >> you might be right, but remember, this is massachusetts where all of our congressmen are democrats, 90% of our state senate is democrat and yet liz warren is tied or losing to scott brown. and i think people do care because you show up at a job, you just want to get a chance. we know it's tough to find jobs. to have someone step in front of you because she's lying about being a member of a minority group is so, it's classically what's wrong with washington, it's what's wrong with government, and i think that typical voters in massachusetts don't like it. also, we have a problem in that this is the second time in a row now that the democrats have nominated kind of a haughty elitist to represent them in this race for the senate, and both times blue collar democrats have said this person doesn't understand my life, and i'm afraid for elizabeth warren this lends itself to that narrative. megyn: you know, i went to syracuse university, and little did i know i should have been joining the actors' society or support groups because as it turns out my six cousin, which is about as close to me as great, great, great grandma sara smith to her, is loretta swit. remember hot lips high school hand on -- hooley hand on mark? i should have nurtured that while i was at the great university of syracuse in new york. >> and many people say i have the same personality of larry linville, so, megyn, you and i belong together. finally, we found each other. megyn: to quote the great frank burns, it's nice to be nice to the nice. thank you, michael graham. [laughter] i watched a lot of tv when i was a kid. it chose to serve me well, but my mom didn't think so at the time. coming up -- wait, just send me your thoughts on that satisfactory. what do you think of that? follow me on twitter @megyn kelly. police are saying four people are dead at the hands of a reputed neo-nazi. this gunman then allegedly killed himself, and up next we'll show you the high-profile political ambitions this man had before this incident. plus, well done looks more like it, she's been charged with taking her 5-year-old to the tanning salon and putting her in the booth. kelly's court looks into it,, straight ahead. clear, huh? my nutritional standards are high. i'm not juice or fancy water, i'm different. i've got nine grams of protein. twist my lid. that's three times more than me! twenty-one vitamins and minerals and zero fat! hmmm. you'll bring a lot to the party. [ all ] yay! [ female announcer ] new ensure clear. nine grams protein. zero fat. twenty-one vitamins and minerals. in blueberry/pomegranate and peach. refreshing nutrition in charge! home protector plus, from liberty mutual insurance, where the costs to both repair your home and replace your possessions are covered. and we don't just cut a check for the depreciated value -- we can actually replace your stuff with an exact or near match. plus, if your home is unfit to live in after an incident, we pay for you to stay somewhere else while it's being repaired. home protectorlus, from liberty mutl insurance. because you never know what lies around the corner. to get a free quote, call... visit a local office, or go to libertymutual.com today. liberty mutual insurance. responsibility. what's your policy? megyn: well, a no-fly zone with orders to shoot to kill, that's not warning for a war zone, it's for chicago, illinois. the u.s. government will restrict air space over the windy city for a nato summit in about two weeks. an faa advisory indicating the no-fly zone will cover 10 nautical miles of downtown. any plane deemed to pose an immediate threat will face deadly force. down on the streets in chicago, in fact, across the state of illinois, there is growing outrage over new reports that former chicago major richard daley is using his political influence to boost his pension by roughly $50,000 a year. this in a state making massive cuts as it faces one of the worst budget messes in the country. fox business network's stu varney joins us now with more. we've got governor "blago" in jail, and you've got mayor daley, he's a beloved figure, though. >> well, this puts a famous name and a famous face on a national problem -- megyn: what'd he do? >> well, okay. all over the country states and governments cannot afford the pensions which they promised to pay. mayor daley used to be a member of the illinois state legislature. he left and became the mayor of chicago. just after a couple of years he made a one-month payment to the legislature's pension fund even though he was no longer a member of the legislature. he paid in for just one month. it's that that entitles him to $50,000 a year for life in retirement -- megyn: whoa! >> yeah, he gamed the system. now, megyn, there's nothing illegal about this. he was simply taking advantage of what you might call a sweetheart deal, a loophole available to him in his position. and he took it, and by making just a one-month contribution instead of many, many years, he saved $400,000 in contributions and walked away with an extra $50,000 a year for life. megyn: that's unbelievable. how much was the one-month contribution, do we know? i'm just curious. >> i don't know. i'm sorry, i do not know. megyn: it would have been, you know, at most a thousand bucks? >> at most. at the absolute most. megyn: how can this be? obviously, there's a flaw in the system, and he took advantage of it, no question, but there's a flaw in the system. are they changing the system? >> you might call this soft corruption. it was a loophole available to mayor daley and other people at that level of city government. it could have been a sweetheart deal because we now know that aldermen in the chicago city council, 21 of them have just retired, and they will take home $58 million collectively because of this kind of loophole entered into at the time when mayor daley got his extra 50,000 many years ago. megyn: unbelievable. and we will wait for the growing outcry from the citizens who have to pay it. >> oh, there. megyn: they have to pay the bill. stu, thank you. >> sure. megyn: wow. what do you think of it? let me know. follow me on twitter, @megyn kelly. we are going right to the source to learn more about the group behind this ad, an online message that challenges president obama for what they belief is the president taking credit for the seal team six raid that killed usama bin laden. the man behind the ad joins us live, coming up. plus, the stakes could not be higher in this diplomatic showdown over a chinese dissident who went to the u.s. embassy, then left the u.s. embassy under what circumstances remain unclear and is now begging the united states to fly him to safety today. on one side we've got billions in economic concerns, and our relationship with china. on the other the life of a chinese dissident who ended up in jail fighting against china's forced abortions and sterilizations. what a mess. stay with us. wake up! that's good morning, veggie style. hmmm. fohalf the calories plus vgie nutrition. could've had a v8. constipated? phillipscaplets use magnesiu an ingredient that rks more naturally with your colon than stulant laxatives, phillipscaplets use magnesiu for effective relie of constation without cramps. thanks. good morning, students. today we're gonna continue... thanks. or creates another laptop bag or hires another employee, it's not just good for business, it's good for the entire community. at bank of america, we know the impact that local businesses have on communities. that's why we extended $6.4 billion in needit to small businesses across the country last year. because the more we help them, the more we help make opportunity possible. megyn: fox news alert, evacuations are underway in california amid reports that a man has walked into a medical center saying he has a bomb. we've got live pictures coming back right now. trace gallagher picks up the story live from our west coast newsroom, trace? >> reporter: just so you know, it's in san bernardino county, just outside of los angeles, very famous medical center out there. this was the first heart and kidney transplant combination back in 1993, the number one place in the world, by the way, for infant heart transplants. a guy walk into the e.r., says he's got a bomb strapped to him. they evacuate the e.r. which is problematic when you have people who need emergency aid, and now we're being told they are trying to coax this guy into a nearby parking garage to at least get him away from anybody who might be inside the hospital. now, again, this is the loam linda medical center, we don't know if this was a patient, a former patient or someone who might work inside. but at latest we've heard this guy's trying to be persuaded to go to a nearby parking garage so they can kind of try and negotiate with him and figure out what he wants. we'll keep an eye on it and get back to you as the news develops, megyn. megyn: all right, trace, thank you. >> i think we've got a train wreck in process here. the dissident is outside the american embassy, meaning he's no longer under our protection. he's saying that he left because chinese authorities were threatening to kill his wife, and he now says he wants to leave china and come to the united states. the state department is denying big chunks of that. so we've got a real disconnect between what our state department thought they were doing and what this now-very vulnerable chinese dissident thinks was happening. megyn: that was former ambassador to the united nations, john bolton, on the plight of chinese dissident chen. he's calling the state department's handling of this entire incident, quote, diplomatic malpractice. this as we're getting reports that the blind activist who has been beaten and jailed for sounding the alarm on china's forced abortions, is now begging, begging u.s. officials for safe entry out of china. the diplomatic standoff threatens to overshadow the new round of important economic talks between secretary of state hillary clinton, treasury secretary tim geithner who's also there and the chinese government. joining me now, simon rosenberg who's the president and founder of the new democrat network and a former campaign adviser for president bill clinton, and ken blackwell, former ambassador to the u.n. human rights commission, and he's on the board of the beckett fund for religious liberty. what a mess. ken, let me start with you. what a mess. so, you know, the guy shows up at the embassy, we let him in. now he's ours, right? now he's our problem. but our secretary of state and our treasury secretary are about to get there, we've got to get him out of there so we don't have this international diplomatic blowup. we do. supposedly it was all rainbows and unicorns until the guy sat down with the associated from's and said i was threatened, my family was threatened, i need to get out of here, my life's in danger. what are our obligations? >> our obligations are to take a stand for the declaration of human rights and this brave dissident. look, this is a classic problem that shows an entanglement of economic national security and human rights matters, and the obama administration is basically saying that the economic and the national security issues trump the human right -- megyn: are they right? >> if we -- no, they're not right. look, if we did not have 47% of our debt being held by the chinese and if we didn't have to work with the chinese on issues concerning iran and their nuclear aspirations, we, in fact, would be taking a strong -- or we should be taking a strong stand for this individual in defense of life, in defense of women, and this is an embarrassment. not only is it a train wreck, it is a diplomatic embarrassment. megyn: simon, ambassador bolton said the same thing, that this is a train wreck. you heard the quote, that this is diplomatic malpractice, and there's now talk that this is reflecting adversely on the administration. maybe we shouldn't have let him into the embassy, maybe we shouldn't have talked him into leaving the embassy where he's now no lodger save -- no longer safe, that seems to be unanimous according to reports. what should we have done? >> well, i think it is a train wreck, but it's much more for the chinese than the united states. china's now reinforcing in front of the entire world what an oppressive and autocratic regime it is, the censorship that took place, one of your fellow networks had their tv show canceled last night in china when it was airing because they were airing a segment about mr. chen. so, first of all, i think the train wreck is really for the chinese. the second thing is just to go through what happened, megyn, because the administration's gone to extraordinary lengths. he didn't show up at the embassy. he showed up in beijing. they got a call, they sent a car to get him. they were chased throughout all of beijing, car chases that went on with the american embassy sticking their neck out to bring this guy back into the embassy. they sat down with him and said, what do you want? we'll give you asylum, he said, i want to stay home. i want to be with my family, that's where i want to be. he made the decision to leave, and after he left he has changed his mind. so this is a very difficult situation that's going on, as you pointed out very rightly, the backdrop of a big international gathering, and that, you know, but we're not done. there's still things that can be done, and i think people should have patience and let the administration continue to try to get the right solution for mr. chen and his family. because, remember, his wife and his child are still being held by the chinese government. we can't whisk them all out of the country. we can whisk him out, but his family would stay behind. let's let the government do its thing and see where we are in a few days. megyn: you know, ken, what -- how do you get out of this now? simon points out the human rights problems in china, and we all are aware of what they're doing over there, the forced sterilizations, the forced abortions, the infanticide they're guilty of, but we'd like to say we don't do business with countries like that, but we have to. >> well, look, simon is right. this shines a light on the human rights abuses in china. but where he's wrong is that the chinese, they don't care. they really don't care. and we, we were in the forefront of shaping this document, the universal declaration of human rights. and as an ngo at the family research council, we've been in the forefront of taking a stand for life across the globe and domestically. we've taken -- megyn: so what do we do here, ken? this guy, one chinese citizen who feels the same, and look what's happening to him. >> with it is, it is the power of one. sometimes the giant in the field of human rights has to come down on the side of the individual that has taken a stand against, you know, a government, a state, a nation that has no respect for the rule of law, is not democratic and is really not a practitioner of human rights. megyn: simon, he is suggesting, chen is suggesting that he did not leaf the embassy of his own -- leave the embassy of his own volition, he was basically told your wife's not going to be safe. if you stay here, unless you leave, you know, as bolton put it last night, it was sort of a nice wife you got there, be a shame if something happened to her. that's his suggestion now, that he would be -- his wife would get beaten if he did not leave. if that's true, we've got a diplomatic problem on our hands. >> no, megyn, i think what you're saying about the threat came from the chinese. it didn't come from the u.s. the american z said to him, and this is just hard, cold reality, right? the chinese still hold his family. the americans said what do you want to do, we can grant you asylum if you'd like, he said, no, i need to stay here because if i don't, if i stay in the embassy and if i go to the united states, their going to kill my family. and so i'm going to leave, and i'm going to try to -- megyn: he denies this. >> no, he doesn't -- megyn, that's not true. megyn, that's not true. megyn: we deny it, he says it's one thing. >> no, no, megyn, that's not true. what has been clearly documented by the american government is that all of this was discussed. he's now changed his mind. he didn't deny what took place in the discussions. now that he got out and realized that he's sort of back and going to be vulnerable to chinese authorities, he's changed his mind. so the point you made earlier is, look, this is a tough situation. i think the administration's gone very, very far right before a major international gathering to give this guy comfort in their own embassy. i'm actually kind of shocked they did that to begin with. they went way out of their way to bring him in, he didn't show up at the door, they went and got him. and i think the key thing is we've got the -- got to keep the diplomatic track forward. but i also agree with mr. blackwell, the chinese don't care about their own people. megyn: right. wouldn't it be nice if we could turn our backs on them? >> we can't, and i think the administration is doing a nuanced and complicated dance here, but give them a little room and see what they can do. megyn: guys, thank you. what turned out to be a bogus story about president george w. bush's military record led to the end of dan rather's career at cbs, but now he's out with a book aiming to, what he calls, set the record straight on this. bernie goldberg, who appears in the book, joins us right after the break on what this thing says and what it does not. ement or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today. mom! look what i found in the shed! no! no! no! ♪ were you guys just making out in here? what? no! really, cold cuts from a package? yes. 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[ female announcer ] only flood insurance covers floods. visit floodsmart.gov/risk to learn your risk. megyn: well, new details on the scandal that effectively ended dan rather's career at cbs news. just months before president george w. bush faced re-election 06 minutes wednesday -- 60 minutes wednesday aired a record about the national guard record of president bush. it turned out the documents upon which that report was based were questionable at best, and be rather's decade-long career at the network ended soon thereafter. now in a new book he reveals more about his side of the story, and we've invited him to appear on this show to discuss it a half dozen times, no word yet from his publicist, still welcomed, but my next guest is mentioned in the book, bernie goldberg. you're a superstar as well, and apparently you learned that they wanted you, potentially, to investigate cbs and this debacle after it happened, you in the end were not selected. but the thing that jumped out at me in this piece in this book that he's written is that he has no regrets. he says we reported a true story, deal with it. >> right. first, let me say i was on what dan rather called the short list of people to head up the independent inquiry into what happened with memogate or rathergate, whatever you want to call it. so was ann coulter and rush limbaugh and roger ails. so let me assure everybody there wasn't a snowball's chance in you know what that any of us were going to be on the panel, but because they put it in court papers, they knew it would get out, and it would say you see how open-minded we are? it wasn't going to happen. megyn: they went a little too far. >> yeah. it was ridiculous. now, as part rest of your question -- as for the rest of your question, yeah, dan at the time said the story was accurate, and in this book that just came out he still says it's accurate. and let me say this, the underlying story which basically says that george bush was a slacker during his days in the texas air national guard during the vietnam war, it may be true. but he also says the documents that the story was built around are genuine, and be he's on much thinner ice when it comes to that because while the documents have never been proved to be forgeries, they've never been proved to be authentic either. and if you're going to do a story right before a very close election that might bring down the president of the united states, you can't do it on documents that are, as you said, very, very correctly in the lead-in questionable at best. you can't do that. megyn: yeah. this story aired september 8, 2004, and then they spent two weeks doubling down on it trying to maintain its accuracy. in the end, several people were fired from cbs news. bernie, a lot of our viewers remember the heyday of dan rather, peter jennings, tom brokaw, we all watched every night on tv. this story changed his legacy, and he does seem conscious of that and upset by it. >> yeah. yeah, absolutely. i think, i think he's hurt by it. because i think he knows that despite the fact that he covered every major story around the world since the assassination of kennedy and even though he went to some very scary places and put his life in danger more than a few times, you know what -- and i hope this doesn't happen for 100 years -- but you know when the obit is written for him in the first paragraph the words memogate or rathergate or something is going to be mentioned, and i think that hurts him very much. something else that hurts him, and this is interesting -- i'm laughing because you'll see why in a second. he's hurt by the fact that his colleagues who he thought were his friends, some of whom he actually hired at cbs news, turned on him when things went bad. megyn: he calls them spineless. >> very touching that he feels that way. let me say this, when dan was there, he used to say often that cbs news was family. and when dan was there, it was family. it was the manson family. because the idea, the idea that when things went bad, his so-called friends were going to desert him while it's touching for him to believe that, it's incredibly naive -- megyn: hold that thought because that's exactly where we're going to pick back up right after this break. my apologies, we'll be right back. >> all right. megyn: bernie goldberg's still with me. bernie, you were making the point about the manson family. [laughter] >> yeah. all i'm saying is that it's touching that someone says, jeez, these people were my friends, and i helped bring them along, and then when things got rough, they turned on me. all i'm saying is that a lot of these people -- not all of them, but a lot of them -- are careerists. they only care about their careers. and on that point dan got et right in the book -- got it right in the book. he said a lot of them were worried about, you know, their next job at cbs, and they weren't worried about him. it's touching, but it's incredibly naive. megyn: you mention that you think this'll be in the first paragraph of, you know, the remembrances we have of dan rather, many, many years from now, we hope, when he ultimately passes. is that fair? i mean, is this k this be characterized as just one mistake? >> well, conservatives out there are going to say he made a mistake every day he went to work, and i am not saying that. is it fair? it's a good question, and it's a close call. but it was such, it was the thing, the incident that ended his career at cbs news, and in that sense it's big enough that it's understandable if it's mentioned. but i want to make clear everybody out there, mostly the people who despise dan rather, this guy had tremendous courage, physical courage. he was, he was incredibly generous with his money, generous. he was the kind of person that you'd want to hang out with if you were a guy. but, and this is a big but, the biggest gripe i have with dan rather is that he was unable or incapable of taking serious criticism about journalism seriously. that's it. that's my one complaint, that he couldn't take serious criticism seriously. megyn: all journalists make mistakes at some point in their career, the question is whether you own up to them, you admit it, you apologize for it, you make good on it. >> right. megyn: that has not happened here. bernie, thank you, sir. >> okay. thanks, megyn. megyn: well, coming up, a sudden death, a huge bag of cash and traces of drugs. new details in the mystery behind this man's death and what it has to do with the teamsters' union? and joel aarons is a decorated soldier who did a big tour on the mean streets of baghdad and won the bronze star in the process. he's also the man behind this ad, an online message that accuses president obama of taking credit for the seal team six raid that killed usama bin laden, and it is scathing. a party? 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[ female announcer ] new ensure clear. nine grams protein. zero fat. twenty-one vitamins and minerals. in blueberry/pomegranate and peach. refreshing nutrition in charge! my new apartment isn't th far away. it's 4.2 milesway ! with this droid razr... motorola... verizon 4g lte... video... skype. you're gonna get lost. this has gps. well, that makes me feel better. me too. i'll go get two from the back. okay. this mother's day, get the droid razr by motorola. only $99.99. the lowest price ever. verizon. megyn: the investigation into the "operation fast & furious" scandal escalate. house republicans taking the first steps towards contempt charges against the attorney general eric holder. we are getting details on the 64-page letter sent to members of congress by the top investigator in connection with this botched gun running sting. congressman darrell issa laying out his case for contempt against mr. holder. claiming he is not cooperating, the attorney general. as you may remember, the operation fast and furious allowed illegal gun purchases into mexico in homes of tracking these weapons to drug cartel leaders. instead hundreds of guns vanished and many turned up at crime scenes including the site where one border control agent was killed. the showdown between congress and mr. holder today. >> reporter: the contempt resolution claims the attorney general has repeatedly stone walled and lied to congress by providing false denials that weapons were walked, by intimidating whistleblowers and withholding documents. a subpoena in october demanded documents in 22 categories, darrell is a says the doj has yet to provide a single document in 12 of the 22, including who at the justice department should have known about the tactics in "operation fast & furious." how they concluded the operation was fundamentally flawed. they want to know why they did not tell the atf that the people they were investigating were on the federal payroll, untouchable and unindictible. >> this is like what richard knicks on dealt with. ultimately the courts repeatedly sided that he was wrong. congress has an obligation, particularly when the american people have been lied to. >> reporter: this is not a contempt finding. s as vote. but it lays out the case why investigators believe the evidence supports one. we are told is a does not have a firm timetable on when to go forward with this. but sources say he would not have taken the step without the votes other support of house speaker john boehner. moment ago we heard from ranking democrat cummings. he called his a partisan witch hunt. bottom line, you have two trains, one track, collision course next week. we'll get a feeling for this political fight. megyn: here is a little context for you. since 1975, 12 cabinet level or senior officials have been cited for contempt. that hasn't yet happened, for failure to produce subpoenaed document. that includes only one attorney general. janet reno became the first and only attorney general cited for contempt after refusing to turn over department of justice memos. she was seen ad over her failure appoint an independent counsel to investigate campaign fundraising abuses in 1996. three federal agents shot while serving warrants as part of an ongoing investigation. those agents from immigration and customs enforcement or i.c.e., we are told none of them have life-threatening injuries. the gunshots erupting early this morning in a san francisco bay area neighborhood. a suspect is now in custody. new developments on the investigation into the collapse of mf global. one of the largest hedge funds to collapse in american history. six months later after all sorts of investigations got underway. still no answers. $1.6 billion in investor money still missing and the head of the failed company jon corzine who is a political friend of president obama. he helped bring in big bucks for the reelection for the president, and there is a question about what's happening. where is the accountability? fox business network charlie gasparino wrote a column asking if the investigation is slow because of the political ties. why do you say it's slow. six months having worked in law. why do you think this is slow? >> reporter: mf global was not a hedge fund it was run like a hedge fund. it was a brokerage firm. jon corzine former governor, rams up the risk the place implodes and $1.6 billion in customer money disappears. that's not supposed to happen at a brokerage firm. terry duffy, the head of the cme said there was illegality here. megyn: what is the cme. >> >> reporter: i'm sorry. chicago mercantile exchange. because you are not supposed to take customer money and use it for anything. it's obvious something is pretty bad here. what we were the first to report on the fox business network is that they came to the conclusion that no one did anything wrong and that's bizarre. megyn: there is $1 billion missing. >> reporter: i laid out the case, maybe nothing did go wrong. but look at this aspect of the story. look at the conflicts of interest of the people investigating it. about it man and to the woman. securities and exchange commission, the commodities futures trading commission. these are the major investigators looking at this. even people at the top of the fbi. i never say it's the people at the bottom. the political guys at top have connections to president obama. they have a lot of reasons not to be bringing this case and moving forward with it. megyn: you are suggesting they realize this would look bad for democrats and maybe the president because jon corzine was a big bundler -- >> reporter: still. megyn: he's listed but the white house says that money was raised before his troubles. >> reporter: they never gave back the bundled money. the attorney general for the southern district learned from his boss, never misses a chance to go before a camera when there is something going on. he is nowhere to be found on this investigation. where this is real customer money missing. i can make a case insider trading is bad. but try to trace it back to actual people losing money. it's usually people making money. this is a case where farmers and ranchers have lost a lot of money. i know a guy who's out $700,000. that's a lot of the money to him. megyn: i thought this was going through -- if we accept charges are not going to happen until after november. you said you are here and they may be talking about nothing was wrong. where is the $1.billion? where did it go? >> we are hearing our law enforcement sources. they think it's a massive confusion. i would only say this, megyn. sometimes when you have reporters like me reporting about this and write being it in the "new york post." reporting about it on fox business. then you have congressman grimm calling for an independent counsel the look at this. he's calling for it, it's not a done deal. but i hear there are a lot of people on the hill that want this. that sometimes sparks action. and that's a good thing in this case. megyn: a small town is up in arms over a memorial cross considered the controversial by some. [♪] megyn: just ahead. see why an atheist group is threatening to have this thing taken down and these residents say the am not going without a fight. this mom captured national headlines after she was accused of taking her 5-year-old girl into the tanning booth with her. the mom has pled not guilty though her daughter showed up to school with burns and allegedly made an incriminating statement to her teacher. we have the prosecution's arrest document. we'll learn new facts. we'll bring them to if you "kelly's court." a veteran's group launching an ad accusing president obama taking all the credit for usama bin laden's death. we'll hear from the head of the group, an army vet himself and ask him who is paying for all this and why. ok! who gets occasional constipation, diarrhea, gas or bloating? get ahead of it! one phillips' colon health probiotic cap a day helps defend against digestive issues with three strains of good bacteria. hit me! 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[ laughter ] we're servers at red lobster. and we sea food differely. megyn: we are digging deeper into a web ad released by a veteran's group accusing president obama of taking too much credit for the raid that killed usama bin laden. credit they say should have gone the navy seals. here is part of that ad. >> i said i would go after bin laden if we had a clear shot at him and i did, i did, i did, i did. megyn: we are joined by the head of veterans for a strong america. an iraqi war veteran awarded the bronze star for his service and recognize by donald rumsfeld as one of the 50 heroes on the war on terror. he worked on the bush campaign. thank you for your service. i want to ask you why you put this ad together and who is behind it. who is in your group? >> first of all good after joan and thank you for having me on the show. the message is simple. the real heroes who deserve credit are the navy seals and the intelligence community who made the capture and kill of bin laden possible. what we are doing is we are throwing the penalty flag on president obama for excessive celebration. what you have seen from president obama is he's not only spiked the football, he signed it, he there it up in the stands with the fans, he's doing a dance in the end zone now with brian williams in the situation room, and we think it's in an effort to be able to help with his campaign and instead he should be giving the real credit to the real heroes who made the kill of bin laden possible. megyn: clearly in his ad he took a shot at mitt romney. he didn't just mark the anniversary, he add that mitt romney would not have made the decision. some of the navy seals have been critical of that saying they don't want that incident used for political gain. as an iraqi war vet i'm assuming you are a republican given your political history. >> over the last 72 hours i have been on the phone with a lot of former navy seals. i have been talking to special operators. in the process, what i found out is there is a lot of discontent in the community out there. they are very concerned about the president using the capture or the kill of bin laden as ammunition in his campaign. but what really concerns them is bill clinton's comment saying if the raid went bad, it would have been bad for president obama. that's what really concerns a lot of vets out there. we received a lot ofifiedback over the last 24 hours. and we are receiving positive feedback from around the country suggesting that because of the powerful emotions that the at evokes is that we have tapped into something here. megyn: here is that line to which you refer with bill clinton in president obama's ad. >> suppose they had been captured or killed. it would have been horrible for him. megyn: the ad went on -- clinton followed that up moment after by saying but he reasoned i cannot in good conscience do nothing, so he took the harder and more honorable path. he seemed to be trying to say politically he realized there was risk for him but he took the honorable path in pursuing what was best for the country. do you think that's a fair take on president clinton's statement? >> i think it's an incredible statement coming from former president clinton given the fact that he had multiple opportunities to go after bin laden according to intelligence community officials and he demurred. while we can't second guess his actions, we can ask president obama why the excessive celebration. why the need to take the focus off the navy seelds on the intelligence community officials. what we have here was we had a brief moment in america where we had a moment that brought americans together. and now what you see is president obama using the kill of bin laden as a way to divide americans as part of his campaign strategy. megyn: you point out in your ad that president obama used the first person too much in talking about this issue. here is the part of your ad that goes after that. >> i can report i directed leon panetta ... i was briefed ... i called the president -- we don't need to spike the football. >> i said i would go after bin laden if i had a clear shot at it and i did. megyn: we did go back and look at his remarks and here is another portion of them. >> a small team of americans carried out the operation with extraordinary courage and capability. tonight we give thanks to the countless intelligent and counter-terrorism professionals who worked tirelessly to achieve this outcome. we give thanks to the men to carried out this operation. they exemplify the courage of those who serve our country. megyn: do you think the ad is fair on that score? >> absolutely i do. why didn't president obama make a campaign ad that highlighted those remarks? why didn't he need to have a campaign ad that features former president clinton making the remarks he did? but another thing, i recently saw a report i think it was two days ago that shows president obama has made more remarks about himself or used himself in the first person more than all other presidents combined. look, this is going to be up to ought voters to decide. they will have to decide whether to maintain or keep president obama as the commander-in-chief. or if there is going to be another acceptable option to take his place in november. megyn: so far this hasn't been unleashed as far as we know on the cable stations for purchase. are you going to do that? >> we are evaluating that right now, megyn. part of our strategy is to harness the incredible power of the internet. right now we are sitting here talk on skype. you are talking to me in new york. i'm here in south dakota. so we are using the power of the internet to be able to communicate our message. but we are looking seriously at buying ad time especially in critical states where we believe people -- where this message resonates with people. megyn: veterans for america seem to be a non-partisan group. it seems to be partisan. it seems like you don't like president obama. >> there is a different 20s our ideology and partisanship. we don't take sides with regards to republicans or democrats. there are a lot of things we don't agree with republicans on and there are a lot of things we don't agree with president obama on. we are unapologetically conservative. we are a conservative veterans organization with a specific point of view especially with regard to who deserves credit. we believe this president should focus more on talking about who is responsible for carrying out foreign policy on the ground, who hose boots on the ground are instead of talking about what he personally ordered. megyn: thank you so much for being here. we are taking your thoughts on it right now on twitter. follow me at megyn kelly. the top u.s. law enforcer feeling new heat over the "operation fast & furious" scandal. house republicans laying out their case. trying to hold the attorney general in contempt of congress. this is extremely rare. could this backfire against the republicans in an election year or could it be the last straw for the attorney general? new developments in a cross controversy. on one side out of state atheists joining the fight to take down a memorial honoring troops who died in both world wars. on the other the town rallying. 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[ all ] i'm with scottrade. megyn: new details in a heart wrenching case out of arizona. investigators say they believe a well-known reputed neo-nazi gunned down four people including a toddler, then he took his own life. jason todd reddy was running for shaffer. he made headlines in the past for starting a militia to hunt illegal immigrants and drug gangs in the arizona desert. a teamster with a long criminal past. last august this man stepped off a train in new york city and died of a heart attack. at his side a bag containing $180,000 in cash and drugs. the dea wants to keep the money but now someone is claiming it. >> reporter: when he stepped off that amtrak train and died, the paramedics were trying to revive him, the police were rummaging through his bag looking for i.d., that's when they found the money. he served prison time because he found a pile of cocaine and cash. he was also a member of the local teamsters in boston that was notorious for organized crime ties. he was supposed to be bringing the cash to an entertainment company in boston. the lawyer representing that entertainment company told the dea they want that money back. but the feds have dug into the owner of that company and he, too, has a long criminal history including bank robbery, conviction for selling drugs while he was inside the prison. the dea says the scent the dogs picked up in the backpack also has drugs. that's why they are keeping the $180,000. the court has to rule whether the derks a can keep the -- whether the dea can keep the $180,000. this might end up in "kelly's court" at some point in time. megyn: they all get there eventually, trace. thank you. in 30 seconds you will see the today's "kelly's court" tease. house republicans say they have had enough and now they are making the case for holding attorney general eric holder in contempt of congress for "operation fast & furious." in three minutes a look at the possible fallout for both sides if the republicans proceed as planned. and this tan obsessed mother is under arrest charged with child endangerment under claims she took her 5-year-old into the tanning booth with her. the mother admits that the tanning she does may go a shade overboard. but she says she would never put her child inside a tanning bed. we have the arrest document today on "kelly's court." ♪ let the sunshine in ♪ face it with a win are you receiving a payout from a legal settlement or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today. my high school science teacher made me what i am today. our science teacher helped us build it. ♪ now i'm a geologist at chevron, and i get to help science teachers. it has four servo motors and a wireless microcontroller over the last three years we've put nearly 100 million dlars into american education. that's thousands of ks learning to love science. ♪ isn't that cool? and that's pretty cool ♪ [ music plays, record skips ] hi, i'm new ensure clear. clear, huh? my nutritional standards are high. i'm not juice or fancy water, i'm different. i've got nine grams of protein. twist my lid. that's three times more than me! twenty-one vitamins and minerals and zero fat! hmmm. you'll bring a lot to the party. [ all ] yay! [ female announcer ] new ensure clear. nine grams protein. zero fat. twenty-one vitamins and minerals. in blueberry/pomegranate and peach. refreshing nutrition in charge! that bringing you better technology helps make you a better investor. with our revolutionary new e-trade 360 dashboard you see exactly where your money is and what it's doing live. our e-trade pro platform offers powerful functionality that's still so usable you'll actually use it. and our mobile apps are the ultimate in wherever whenever investing. no matter what kind of investor you are, you'll find the technology to help you become a better one at e-trade. a little bird told me about a band... ♪ an old man shared some fish stories... ♪ oooh, my turn. ♪ she was in paris, but we talked for hours... everyone else buzzed about the band. there's a wireless mind inside all of us. so, where to next? ♪ megyn: welcome back. a new report could be good news for potential home buyers. mortgage rates hitting record lows. mayors usually a good month for sellers but not this year. experts say the warm winter let buyers keep buying where normally they would have waited until the spring. john edwards former aide says the presidential candidate denied having an affair with reille hunter. but he later asked about her pregnancy. he admitted her child is his child. three employees at atlanta's international airport accused of smuggling half a million dollars worth of drugs into the united states. they were tracked down when a bag full of heroin and meth were lept unclaimed on the carousel. back to one of our top stories. a big step about it house republicans in connection with the investigation into the botched gun-running operation of "operation fast & furious." a draft of contempt charges against the attorney general of the united states claiming mr. holder is not cooperating or complying with his legal obligations to produce documents subpoenaed by congress. they are look into how the doj allegedly lost hundreds of weapons being funneled into mexico as part of this botched sting. what happens if congress proceeds with this effort to hold the attorney general in contempt in an election year. joining me now, bernard whitman, former pollster for president clinton. guys thank you very much for being here. this could wind up being a double-edged sword if the republicans proceed against the attorney general. there is political risk to them. by let's start with what it would do to the obama administration if you have the attorney general of the united states defending a contempt effort by the u.s. congress? >> it's not good and the american people are asking the question what took so long to get to this point. if the document congressman issa are spreading through congress and all the congressional offices should have them by now, they should take action fairly quickly. if what's contained in this document turns out to be true, this is a problematic picture coming from the arm of the executive branch of government, a branch barack obama controls that is responsible for the law abidingness of our culture. that's a significant problem. megyn: is there risk of this backfiring against the republicans as we saw some of when they dug in their heels on raising the debt ceiling last summer? >> there is an extraordinary risk. the reason is darrell issa. he's a shameless self-promoter. he's a blow-hard. he would seek to politicize the death of a bored agent. the justice department turned over thousands of document in this case and i tote haley you -- i totally support a full and fair investigation. there is no question mistakes were made with a tragic result. but we need clear heads, cool mind and an investigation that seems to uncover the facts instead of trying to use it for a witch hunt. megyn: issa says he has been doing that. the justice department has turned over 6,000 to 7,000 as opposed to 80,000 asked for. >> there are 22 different requests for document levied by the committee. 10 of them have had some fulfillment. i find bernard's thinking on this reprehensible when talking about exploiting the pain of the family. eric holder is preventing answers from being given to agent brian terry's family that they deserve to have. he was killed through an incompetent implementation of this policy. the result have been tragic. the policy is a failure. you have 2,000 weapons that have been trafficked. 567 that have been found. that means there is almost 1,500 weapons out there waiting to be used against future agents, their families and citizens in the lower western states that border mexico. the fact that eric holder has played politics with it is not reflective on darrell issa. a great attempt to misdirect but it's not going to work. >> the attorney general has recognized there are major problems with this, shut it down. the best way forward is not to drag this into a political process by trying to throw around -- the republicans in congress have a deep history of nailing about with investigations in presidential years. i would look back at the last time the republicans controlled the house, and they -- >> you keep saying republicans. how is it partisan? this is an issue of the federal government not giving answers to legitimate questions that the authority from congress has to ask. >> this is another example of darrell issa trying to use the stage to shine the spotlight on himself. megyn: bernard, if you assume darrell issa's document requests are not legitimate -- what if they are? issa's point is, i have legitimate requests. many americans want to go what mapped in this case. i have legitimate requests and i'm getting stonewalled. if you get stone walled over and over, this is what you do. is it political just because the person doing the stonewalling allegedly is the attorney general? >> i think to throw around in an election year a contempt citation against eric holder, it's a witch hunt. if they want to get to the facts of the case, they should examine the document they have and subpoena the witnesses they need to and come to a speedy conclusion. not waste taxpayer dollars and politicize the tragic death of a border agent >> the person who is supposed to be responding according to the rule of law chooses not to. this is the on enforcement mechanism congress has to compel answers answer. megyn: a new jersey woman charged with child endangerment after police say she took her 5-year-old into the tanning booth are her and the 5-year-old suffered burns. we have new details on the case next in "kelly's court." >> i'm innocent. >> why do you think they are doing this to you? 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>> somebody is an idiot out there. >> how much do you love your daughter? >> i would die right now for her. megyn: joining me now mark eiglarsh and jonna spilbor. we have obtained a copy of the arrest warrant here. it offers a little bit of detail it says that she took her 5-year-old child in a quote standup tanning booth. a lot of people are wondering how would you do it? sort of only one room for one body. this says it was a standup tanning booth. and it says it caused first-degree burns on her body. that would be the least severe kind. the school nurse says she noticed it. do they have second degree child endangerment? >> if they can prove she did that. the child was in the booth. if they can prove it, yeah, then they have second degree child endangerment. but mom needs help. she made the statement outside the courthouse, somebody is an idiot it's you, mom. she doesn't need prison, she probably doesn't need a felony conviction. but she is a danger to herself and that child. megyn: they say she is a tanactic. she clearly has an issue with addictive tanning which suggests what? that she also wants the same for her daughter? >> that's what jonna and the prosecutors would have you believe. i'm going to try to defend my fake client and first concede if she did take her child in the tanning booth she should be punished criminally. but the evidence falls short of that from what i read. she is guilty no question of intentionally causing herself to look like a pint of begins. or perhaps out of a tootsie roll. however. they are prepared to say the child was the not in the room with my client. she was outside. megyn: of course they will say that. if she is outside in the waiting room, then they know. if she went in that room with the mother then they don't know. i've got more. megyn: if no one was an eyewitness and can placize on the girl at all times. then the tanning salon can't solve this case. >> people murder people all the time, and we don't see the bullet leave the gun and go into the body of somebody else. here you have a mother who has no problem cook herself. so we can make the inference maybe she doesn't have a problem cooking her kid. number two, the child herself said i tanned with mommy. so we have two pieces of circumstantial evidence that give us probable cause to arrest her. megyn: if the child says i tanned with mommy, why does the state have to prove she brought her into the tanning booth. can they make this case if she let her fair-skinned daughter tan with mommy outside and got burned? >> the child said she went with mommy to the tanning place. megyn: she said tanning with mommy. >> that was a conclusion, that wasn't what the daughter said. if the daughter was left outside and suffered burns from the sun, there is the defense, megyn. she was tanning outside while her mother was inside. yes that's irresponsible, but that's not what they are alleging. megyn: the salon owner who has a reason to say this didn't happen -- this woman has been band for life at the salon said the girl had a sunburn on her arms from april 17 when it was90 degrees out. it happens with parent who are supposed avoid in their children all the time. >> this is different. normally your mother megyn did not look like a purse. i guarantee you. when you got a sunburn, it was a natural sunburn. let's take it a step step further. the teacher had to report it. it doesn't look good for her. megyn: this case would never have been brought if this woman didn't look like this. >> we don't need an expert to tell us she has a problem. she has an addiction to tanning. when you have an addiction you cannot look good to the outside world without toasting yourself like this. the fear is you will pass that along to your daughter. >> no question. we have the presumption of innocence in this country but it does not exist in a case where you look at the mother, the presumption shifts. someone who would leave their daughter in a tanning bed looks like that woman. she says my daughter wasn't in the room. she was outside. she got burned by the sun. it looks suspicious but that's all it takes. a reasonable hypothesis of innocence. megyn: it's a slippery slope when you get into tanning salons. you can't go in if you are under 14. what is next? arresting the parent on the beach who lets their children run around without sunscreen >> i have no problem prosecuting someone who lets their child into a tanning bed. and someone with this type of behavior and psychology putting her child in a tanning bed, i think that should raise charges. but the question is, did she do it? megyn: is it a slippery slope to a parent allowing their child to have a burger at the heart attack grill? in europe parent let their young ones have wine at dinner table >> or being around grandparents who smoke. megyn: my parent smoked. we had a vw bug. my parents would drive smoking with the windows up. >> when you have instances this obvious, the little girl was severely burned megyn: first degree burns. i'm not making light of it. but let's not say severe burns. first degree. >> we can't ignore them. forget about the slippery slope. take it on a case-by-case basis. something needs to be investigated with regards to this 5-year-old girl. megyn: we also did not have car seats or seat belts on. >> neither did we. megyn: somehow we lived. incredible. thank you both so much. growing controversy over a cross out of state atheists threatening to sue over this memorial in a small town honoring troops who died in both of the world wars. but the town is not going out with a fight. rallying to keep the memory of those fallen. >> it would be nice if the opposition was here to see how much the hometown and people from out of the area support this monument. it stand for a lot of things. >> if they want it moved they should come down here and moist themselves. if there is one person complaining about it, i'm one person supporting it. 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[ male announcer ] for fruits, veggies and natural green tea energy... new v8 v-fusion plus energy. could've had a v8. megyn: the battle is on over a military memorial. a group of atheists trying to force a town in rhode island to take down a cross memorializing troops lost in the world wars. >> reporter: the officials in woodstock, rhode island had pretty much give up up this fight because they couldn't afford to pay the legal bills. then a bunch of lawyers came forward saying they will they would donate their time. the suit was filed on behalf of a local resident. they say the latin cross demonstrates woodsocket's preference for christianity over other religions. the city says the cross is a tribute to to veterans, not a religious symbol. this thing went up for a mile and a half and they all came out to defend the cross. listen. >> if my dad was here he would be appalled at the fact they want to take away this tribute to veterans. >> they seem to be preying on the weak communities that can't defend themselves because they don't have the funds to do it. that tells me what kind of people these people are. >> reporter: not anymore. the rhode island attorney general is among those who supports the cross. freedom from religion says there are other ways to honor our veterans. the group expects the judge will order the cross be taken down. the cross has been in woonsocket, the fire station * for 91 years and they say it will stay for 1 more if they can help it. megyn: another former aide to john edwards is on the witness stand today. that's coming up. when you have diabetes... your doctor will say get smart about your weight. that's why there's glucerna hunger smart shakes. they have carb steady, with carbs that digest slowly to help minimize blood sugar spikes. [ male announcer ] glucerna hunger smart. a smart way to help manage hunger and diabetes. aspirin? i don't really know what it's for. isn't aspirin like a vague pain reliever? aspirin is just old school. people will have doubts about taking aspirin for pain. that's why we developed bayer advanced aspirin with micro particles. it enters the bloodstream fast and rushes relief to the site of pain. we know it works. now we're challenging you to put it to the test. visit fastreliefchallenge.com today for a special trial offer. then try it yourself and tell us what you think. >>megyn: we are getting quite a fuse e-mails about elizabeth warren and our viewers do not believe she should have claimed native india status in her materials and our viewers would like to have me interview her. she is welcome to come on the program and i now how i will begin it. how? i have been drinking again, shepard. >>shepard: i can tell. enjoy yourself. so, the the news begins anew. on "studio b" and the ex-john edwards aide says the former presidential candidate lied to him about his affair, but found out his former boss' love child from what he sered from a