UNIDENTIFIED MALE: ... an affair with one of Kaine Horman`s friends...
UNIDENTIFIED MALE: He admits that they were friends. He did not have sex with her.
UNIDENTIFIED MALE: ... his wife and Cook had been having an affair.
UNIDENTIFIED FEMALE: There were texts. There were photos.
UNIDENTIFIED FEMALE: Her marriage started out as an affair.
UNIDENTIFIED FEMALE: I don`t want Kyron to come home and have all this other stuff out there.
(END VIDEO CLIP)
UNIDENTIFIED MALE: Do you have anything to say? Do you know where Kyron is? Yes or no?
UNIDENTIFIED FEMALE: A little boy is missing...
UNIDENTIFIED MALE: ... missing Oregon boy Kyron Horman...
UNIDENTIFIED FEMALE: And she was the last person to see him.
UNIDENTIFIED MALE: Stepmom Terri Horman...
UNIDENTIFIED FEMALE: ... all these other twists...
UNIDENTIFIED FEMALE: Court documents suggest she came to the club looking to abduct her 20-month-old daughter, Kiara, from the gym day care center.
UNIDENTIFIED FEMALE: ... alleged murder-for-hire plot...
UNIDENTIFIED FEMALE: A landscaper claims Terri offered a large sum of money to kill her husband, Kaine.
UNIDENTIFIED FEMALE: Kyron`s father moved out, filed for divorce and got a restraining order.
UNIDENTIFIED FEMALE: In it, Kaine Horman said he believes his wife, Terri Horman, is involved in the disappearance of 7-year-old Kyron.
UNIDENTIFIED MALE: Right at this particular point, I think our detectives have got to -- they`re working on a very sound case.
UNIDENTIFIED FEMALE: ... waiting for that break that could come in the case at some point...
UNIDENTIFIED FEMALE: The focus is still to find little Kyron Horman.
(END VIDEO CLIP)
GRACE: Looking for a break in the case? What more do you need? We now have the stepmom, who says she walked 7-year-old Kyron to his door after the science fair, his door in the elementary school, there in a very rural area. She says he is never seen again. We now have her cell phone popping up in other areas than where she says she was, an alleged attempt to hire a hit man to kill Kyron`s father, her husband, now hundreds of text messages, sexually-related, dozens of sexually explicit photos she`s sending over the computer. And this is after Kyron goes missing?
To top it all off, Matt Zarrell, are you telling me she tried to kidnap the 19-month-old baby girl from day care? What more do police need!
ZARRELL: Yes, police told Kaine Horman that on or about June 28th, the same exact day she was served with the restraining order, just before she was served, she went to the gym where Kaine Horman works out and was asking if Kaine Horman was there with Kiara. Now, he wasn`t, but Terri Horman told the clerk at the gym that the next time he comes in with Kiara, she wants him to call her because she wants to come and take Kiara.
GRACE: Unleash the lawyers. Joining me tonight, high-profile lawyer out of Seattle Anne Bremner. Also Hugo Rodriguez, defense attorney, former fed, joining me out of Miami.
Anne Bremner, she allegedly tries to hire a hit man to kill Kyron`s father, and she thinks she can have custody of the baby? No! No, no! It doesn`t work like that, Anne Bremner!
ANNE BREMNER, DEFENSE ATTORNEY: Well, but Nancy, you said, Hand me a handcuff. I think you want a pair of handcuffs for her. But the fact is, one of these things is not like the others. You know, potentially hiring a hit man -- we don`t actual have proof of that, and that happened what, six months ago, supposedly? And then the child kidnapping? Uh-uh! The restraining order had yet to be served on her, so she had no legal requirement that she not take the child or be around the child.
And then, finally, when you`re looking at a supposed abduction of her own stepson, what kind of evidence do we really have? The last one that`s seen with him, yes. This is my part of the country, you know, Northwest. Everybody up here thinks she did it. But you know what? Is there evidence that she did it? I don`t know.
GRACE: Well, other than her lying to investigators...
GRACE: ... according to sources, Marc Klaas, about where she was after the child went missing.
MARC KLAAS, KLAAS KIDS FOUNDATION: Well, it`s one thing after another that just continues to pile up. And the whole problem is -- and this is what you`ve mentioned. The focus has to remain on finding little Kyron, and she`s just not giving up that information, which I believe is why they keep revealing ugly layer after ugly layer of her hideous behavior since the moment that he disappeared.
GRACE: You know, another issue. I want to go back to you, Jean Casarez. When she allegedly went to the day care -- which, number one, I don`t understand why the baby was in day care because she wasn`t working. So why is she, you know, stashing the baby in day care? But that`s a whole `nother can of worms. When she went to day care and told them to tell her, when he showed up with the baby, that she wanted to get the baby, when was the restraining order served on her in relation to that visit or that call to the day care?
CASAREZ: I think it was on the 28th, so I think it was the very same day the restraining order came down. Whether she had been served with it or not, I don`t know. But it was the day care that he works out at -- the gymnasium...
GRACE: Oh, it`s the gym day care.
CASAREZ: Yes, the gym day care.
GRACE: All right. But that`s -- that`s a different story. She`s just putting child there while she goes and works out. OK, I understand that. Tell me again about the date that happened, Jean Casarez, and the date that she said, When he comes to the day care, I want to know about it.
CASAREZ: That`s right. She went to the gym day care thinking he might be working out, and the baby, their baby, would be in the day care. And she wanted to abduct it. Now, that`s the words of the clerk because...
GRACE: But what was that day? What day did she go to the day care to try to find the baby?
CASAREZ: I think it was June 28th.
GRACE: And what day was the restraining order?
CASAREZ: June 28th.
GRACE: All right, there you go, Hugo Rodriguez. And if you just look at it -- I heard what Bremner said, that she hadn`t been served yet. Well, you know what? If she hadn`t been served, it`s a technicality because she clearly knew that...
HUGO RODRIGUEZ, DEFENSE ATTORNEY: No, she didn`t.
GRACE: ... she was going to try to get the baby. Why -- if she didn`t know he was keeping the baby from her, why would she say, Let me know, call me when he comes, I`m going to come get the baby?
RODRIGUEZ: The restraining order had not been served.
RODRIGUEZ: She had no idea that it was coming. She did not know it was coming. The restraining order is based on the allegation that she was going to hire somebody six months prior. There was nothing improper with her asking about her child and wanting to see her child. Nothing.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: A search is under way now for 7-year-old Kyron Horman. According to affiliate KPTV, police are back at the area where the 2nd-grade boy vanished from his Portland school.
UNIDENTIFIED FEMALE: Neighbors say the search by detectives has appeared to focus on pick-up truck owners.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: They`re saying that you failed two polygraph tests. Did you fail two polygraph tests?
UNIDENTIFIED FEMALE: (INAUDIBLE) give us some privacy?
UNIDENTIFIED MALE: Can I please speak with her?
UNIDENTIFIED FEMALE: The only person asked who was asked to take a second polygraph was Terri Horman.
UNIDENTIFIED MALE: In the first failure, I think we were all concerned about it, but it was the behavior immediately following and the build-up to the next one that I think all of us just found completely unacceptable.
UNIDENTIFIED MALE: Why won`t you talk with investigators? Are you cooperating?
UNIDENTIFIED FEMALE: We can`t talk about the details of it, but we passed with flying colors, so...
(END VIDEO CLIP)
GRACE: I am just hearing in my ear as we are going to air that police have gone back to Kyron`s elementary school as we speak. They are going back and they are re-searching the elementary school, looking in every nook, every cranny for something they may have missed.
This is a shot of 7-year-old Kyron Horman, 3-foot-8, 50 pounds, brown hair, blue eyes, thick eyeglasses, was wearing a back T-shirt with "CSI" on it, black cargo pants, white socks, black sneakers with orange trim. His dream was to be a cop.
The wire I`m getting right now, KPTV reporting that cops have looked previously at the elementary school but that they are back. They`re also focusing on people who drive pick-up trucks. Some in the area are saying that their homes have been searched, as well. Police will not comment on the report, but our reports are telling us they are back at the school searching.
I want to go straight back out to Jean Casarez. Jean, I want to talk to you about the alleged kidnap by Terri Horman and the sext messages and these photos. How do they fit into the police investigation?
CASAREZ: Well, it`s all very close in time because Michael Cook, who she allegedly hooked up with four days after Kyron went missing -- that would be in June. The alleged kidnap would have been when that temporary restraining order was filed with the court, before she was served it.
GRACE: To Bruce McCain (ph), former captain, sheriff`s office, attorney also, joining us out of Portland, Oregon. Bruce, weigh in.
BRUCE MCCAIN, FORMER SHERIFF`S OFFICE CAPTAIN: Well, Nancy, the thing that strikes me as most interesting as a lawyer in this case is the role of this family law divorce proceeding because if you look at the very beginning, the divorce itself, the restraining order, the contempt charge, the motion to have Terri moved out of her house, everything associated with this divorce case has been fed by the investigators and the district attorney. It really begs the question as to who`s actually controlling this divorce process as they open up a secondary legal front...
GRACE: Let me ask you something, McCain. Why do I care about the divorce process?
GRACE: I care about finding Kyron. Explain to me why that`s even relevant to me.
MCCAIN: Because this is a mechanism to get Terri Horman into court.
MCCAIN: She cannot ignore this family court law. The prosecutors are the ones who are feeding this information, and they`ve opened up a second legal front against Terri Horman and it`s putting pressure on her and her criminal defense lawyer. She now has to appear in court, answer a circuit court judge in September, if not sooner.
GRACE: Bruce McCain, you are absolutely correct!
DESIREE YOUNG: I`m kind of at that point where I`m so angry I don`t even have words.
UNIDENTIFIED FEMALE: She`s step mom to missing 7-year-old Kyron Horman.
UNIDENTIFIED FEMALE: I`ve about known her a long time.
UNIDENTIFIED FEMALE: Last person to allegedly see him.
UNIDENTIFIED FEMALE: I know she`s lying.
UNIDENTIFIED FEMALE: The father of Kyron Horman, a missing Oregon boy, says his estranged wife has attempted to abduct their 20-month-old daughter.
UNIDENTIFIED FEMALE: She`s still not cooperating.
UNIDENTIFIED FEMALE: In new court documents Kane Horman alleges --
UNIDENTIFIED FEMALE: After Kyron went missing she met and began a sexual relationship with Michael Cook. Who is Michael Cook?
UNIDENTIFIED FEMALE: One of Kaine`s childhood friends.
UNIDENTIFIED FEMALE: I just really want her to do the right thing and I can`t say it enough that Kyron is still out there, and he needs to be home.
NANCY GRACE, HEADLINE NEWS HOST: Back to Anne Bremner and Hugo Rodriguez. First of all, Anne Bremner, when you misquoted me earlier I said get the handcuffs. And I want you to explain to me why it is irrelevant that she is sending hundreds of sexual text messages and exclusive sex photos in the hours after her stepson disappears?
ANNE BREMNER, DEFENSE ATTORNEY: Well, I heard you say get me a hand cuff but at any rate a pair of hand cuffs and it sure sounds like from you, Nancy --
GRACE: The handcuffs.
BREMNER: Okay. Well maybe I misheard over here.
GRACE: Yeah, maybe you did.
GRACE: Yeah, I can`t say that.
BREMNER: Denied having sex. Okay. I`ll say it. They denied having sex. How is that relevant --
GRACE: Anne, Anne, Anne, Anne, Anne.
BREMNER: Let`s assume it`s one of your other guests that --
GRACE: They denied having sex.
BREMNER: That`s right.
GRACE: She`s sending photos over her phone of every body part she`s got.
BREMNER: Those are two -- you know what?
GRACE: He probably didn`t know what it was.