not change its spot. did you catch what patrick was talking about? cryptorevolution in banking sector. maybe silicon valley will step in and fix it. liz: will be very interesting to see. for now "the willis report" is next. gerri: hello, everybody, i'm gerri willis. on the show today, the death toll rises from the texas floods. more rain on the way and there are warnings of more flash floods. also why did the irs wait so long to inform the public of a massive hacking of tax returns? we also have new information where those hackers come from. new questions tonight about the big takata airbag fix. are those replacement airbags just as dangerous? we'll investigate. this is "the willis report," the show where consumers are our business. gerri: the web of the clinton finances became even more entertaining gelled. associated press uncovered bill clinton's secret shell company

called, w j.c., llc. clinton used it to stash his consulting fees. here to weigh in on the latest clinton discovery, guy benson, townhall.com, fred barnes "weekly standard" and michael goodwin from "the new york post." welcome all. michael, start with you. what do you make of this? a secret company set aside for the sole purpose of passing money a pass-through agency. everybody does it, come on michael. what is the problem? >> don't you have one? i have one. the clintons when you look at the structure of their financial dealings, we know the foundation. the foundation has numerous spin-offs. clinton this, clinton that everything. gerri: right. >> you have got this media matters this arm they use to attack their critics money passing through sidney blumenthal to there as well as the foundation. now we have this one. there is a lot of overlapping corporations at that all seem to fall under this. it is a little bit like the way the mafia operates frankly.

gerri: the way the mafia operates. the way corporate america operates. it is the way the 1% operates. i want to show you, because it is in the ethernet tonight. what is a shell company? it is really pretty simple. it's a vehicle for business transactions. a lot of people use it to avoid taxes. your average financial advisor for 1%, hey set up your shell company. guy, to you. is it possible here, and i'm just supposing, okay? possibly hillary clinton is talking out of both sides of her mouth when she says that, you know, the 1% should be toppled? would this not topple her as well? >> oh perish the thought that hillary clinton would being talking out of both sides of her mouth. very quickly, gerri, i want to say it is such a pleasure appearing on your show over the years and working with your awesome staff at "willis report." thank you. i look forward to seeing you all over both networks moving forward. hillary clinton wants it both ways on virtually everything.

she talks about toppling the 1% and winking at elizabeth warren supporters and winging at bernie sanders supporters, saying i'm one of you but taking money from wall street, winking we're not quite like them. we're sort of like you. we have high-priced accountants. we'll be just fine. gerri: fred, i want to bring you in. i'm so glad you're here tonight. if memory serves me correctly, we'll show a little video of this didn't obama campaign make fun of romney having a shell company? >> certainly did. gerri: what is good for the goose and good for the gander here? >> we're showing video. i will keep talking anyway. gerri: we can see it. >> only one reason why they set this shell company up. that is to avoid disclosure how much bill clinton was getting paid. and the clintons of course if they were really interested in transparency, they say they are, they could have reported the existence of this. didn't have to be something that

the associated press ferreted out. but all you have to say is, you got from a company more than $1000. could be 100,000. could be a million. could be $1100. gerri: could be 50 million in speaks fees as far as i know. michael, what do know we about the timing of setup of this account? >> one report i heard this shell company was created right almost from the day or couple days after she becomes secretary of state. seems very closely aligned with the disclosure agreement that she made with the obama department of state over her earnings his conflicts, et cetera, et cetera. so i don't know how yet this thing plays into that but it seems clearly that the timing is not a coincidence. gerri: hey, guy this goes from the sublime to the ridiculous. fifa gave clintons money. gave the clinton foundation money. what do you think it was for? were they buying mosquito nets

for people in africa? come on. >> that is the thing. we don't know answers to many of these questions. back to fred's point, what was the purpose of setting up this pass-through shell corporation. part of might be to disguise or hide the ball how much money clinton was making with some of his fees as consultant. big part could be trying to hide companies and entities with whom he was doing business. and for whom he was working. that is another by-product of this. that would be advantage to the clintons. gerri: fred, you know you brought this up in this conversation. >> right. gerri: but what i don't understand, why this isn't resonating with voters? i think this activity is unconscionable. here is hillary clinton as secretary of state, her husband accepting money and speaking fees from the most notorious of governments. you talk today, okay, i'm so wound up about this. apparently hillary is getting kudos for the media speaking out

bravely about equal pay for women. what? what? we already have laws on the books about that. they accept money from nation-states that are horrible to women, horrible to women? i mean not, i'm very upset about it. >> i can tell. gerri: i think you're right to sit back and say you know that is just, as we said earlier speaking out of both sides of your mouth. >> well of course, that is what she is doing. she knows better. when you feed in experience and education and so on that we do have equal pay. as you pointed out a moment ago we already have equal pay act this is issue completely phony issue. democrats like to use it. the press generally goes along without without saying you know you're really wrong about this equal pay thing. you know i just love hillary on all this stuff, on all disclosure. now, this federal judge who says that the that every month they're going to put out the state department will put out more of their emails. this is like sort of a water

torture where you have a drip drip every month. these things come out, reminding people, about her emails deleted emails and what is in these emails. and so hillary may appear to be getting off easy now but this will catch up with her. gerri: yeah. >> on terms of voters i think she is not getting a free pass. many democrats still view her as the likely and they're for her. gerri: the anointed one. >> but polls across the country in swing states show majority near majority in all the key swing states do not find her honest and trustworthy. once you decided that somebody is not honest seems to me it is very hard to vote for that person. this is majority. gerri: they are politicians though, michael. >> that is low standard but when you say she is not honest, she has a big job to persuade them i think. >> that is impossible. she can't do it. gerri: guy weigh in on this. i have to get this in. carly fiorina i when she came out on the stump i

thought, boy how is this going to work out she is being pretty effective i think. she is a great speaker. she is the at same hotel as hillary saying there is a whole raft of things hillary clinton is not explaining and should. what is your reaction to her? >> i think what the fiorina campaign is doing in terms of guerrilla tactics is brilliant. trolling hillary clinton outside of a event giving prepared speech. when they blasted out their e blast to the media, press release they were going to be there, they were emphasizing carly will answer questions, any questions you want to ask. imagine that a politician taking questions from the media. meanwhile hillary is inside giving prefab speech about equal pay and punching republicans about it. i have to point this out. if you take the lazy, unannounced -- nuanced standard hillary clinton attacking republicans on equal pay and apply that standard to hillary clinton's office when she was

senator for almost two terms, she played, paid women 72 cents on the dollar compared to men. if you use her standard. so shouldn't she be foisted by that pitard? gerri: nobody ever does that guy. we appreciate you doing that. fred, give you quick last word here. last word. >> i think we've established hillary clinton is a spectacular hypocrite amongst other things. she is not interested in transparency. what this judge did today, i think issues will not go away. there will be a time, early next year, when republicans are not just running against each other, they will be running against her. and all this will come back and it will go plop right in her lap. gerri: all right. before we go, i just want to mention rick santorum expected to announce his candidacy for president in about five six minutes from now at that very location in pennsylvania. we'll give you latest on that one when it happens. meantime, guy, fred michael, thank you so much for being here. a pleasure speaking with all

three of you. thank you. >> thank you, gerri. gerri: still a lot more to come this hour including a live report from houston as the death toll there rises from the floods. your information at risk, the irs admits 100,000 taxpayers have been hit by hackers. what should they do to protect you. what do you think? tweet me @gerriwillisfbn. send me an email at our web site, gerriwillis.com. we'll be right back.

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liberty mutual won't raise your rates due to your first accident. see car insurance in a whole new light. liberty mutual insurance. gerri: outrage at the irs. after countless warning signs, the agency finally fesses up to a massive data breach, a breach critics say could have been prevented. so is your privacy really a priority at irs? we're asking adam levin founder and chairman of identity theft 911. always good to have you here. >> thank you. gerri: this is a situation we've known about for a long time. we know more details.

100,000 people actually hilt. $50 million stolen. tonight we're hearing for first time congressional stories saying it was russian hackers. what is the irs doing to protect me and you and every other taxpayer out there? >> theoretically they're putting in much more stringent filtering systems. the problem in this case, nobody crawled in the back door, they walked through the front door. gerri: what do you mean by that? >> they posed as real taxpayers. they had a social security number. they had an email address and they had what is called knowledge authentication answers which is high school mascot date of birth, all the different things that would come out in social networking for instance. gerri: i wanted to ask you about that because some people out there are saying, this is the legacy of breach of target. this is the legacy of some of the breach of health care companies that information was out for sale on the black market. they're using it to get your irs refund. they're using it to steal your identity. >> this is the latest

manifestation of a tsunami of breaches. and whether it is anthem primera, target first care, any one of those, plus more there is so much we are awash in data throughout the world now. we have had billions of file that have been improperly exposed. gerri: that's true. >> what happens now, add to that, breaches, you have phishing. then you have oversharing on social networks. and that is where they get those cute little things like your favorite color. gerri: let's be clear here. it is one thing to blame the people who have been hit for oversharing on social media, but never could have happened, if the irs had more ironclad ways of locking down your system. this was a page that you would go and see what you had filed in the past. why was this not more secure? >> well you know they think it was secure. obviously it wasn't secure enough. they're not using multifactor authentication like they should. their filtering system isn't as

good as it should be. i saw of 200,000 people potentially affected and 100,000 were actually compromised, and 15,000 actually had the refunds that were diverted, now they're talking about, well we've give them credit monitoring. there has to be more to life than credit monitoring. gerri: that drives me -- it is too late. we're talking about free credit monitoring, the horse is out of the barn. the irs breaches have already, as of 2013 resulted in 5.8 billion. >> correct. >> of refinds -- refunds written to criminals. taxpayer dollars instead of going to taxpayers, go to criminals. that is our money at work. once more, we know the ig, the inspector general wrote a report recently that there were 69 weaknesses, open door for bad guys to come in and steal taxpayer information. this is not a new report. it is an old report, here we are again today with more information stolen. if you expect american taxpayers to pay their taxes, to pay on

time, you've got to protect them. they're not going to want to pay if the whole system is rigged. >> you're absolutely right. the problem this isn't just an epidemic involving internal revenue service. this is entire american government. gerri: the stakes are so big for taxpayers. >> huge huge. gerri: stakes for taxpayers and country and if you expect americans 98% of the us to file our taxes we pay what we owe, if you want to keep that up, you have to make sure the system is safe. >> no, they have to do. government has to do that. they talk about information sharing, all those things. they need to focus more on cleaning up house in washington and get this thing straightened out. they're estimating this could be as much as 21 or 23 billion by 2017. gerri: wow. wow. >> talking about astronomically high figures. an epidemic pandemic because it is worldwide.

still people don't take identity theft and data protection and data privacy -- gerri: people are worried about lois lerner. meanwhile taxpayers all over the country are at risk of having their identity stolen because they did the absolute right thing in filing their taxes. i think it is wrong, wrong, wrong. adam, thanks for explaining it to us. i appreciate your time. >> thanks, gerri. gerri: later in the show, charges of corruption plaguing soccer's governing body. we'll have latest headlines. speaking of probes more questions coming to life surrounding takata airbags. as a recall gets expanded. we'll have details of a the break.

gerri: breaking news just moments ago the in spence vain the former senator from that

state, rick santorum, you see him there, announced his 2016 presidential bid. this is the former senator's second run for the white house. rings santorum just announcing his 2016 presidential run. he joins a crowded field. six gop hopefuls who now announced their candidacy. this is going on live right now in pennsylvania. in the meantime the biggest consumer recall in u.s. history is underway. takata's airbag recall doubling last week. now impacting nearly 34 million drivers. they're supposed to replace the defective and potentially deadly airbags. still lots of questions unanswered. my next guest wants to get to the bottom of this once and for all. joining me, chairman of house and energy subcommittee on commerce and trade, senator michael burgess from texas. michael good to have you back here on the show. i know you will lead the questions next week. what are the questions you want to have answered? >> well, as you recall, the last time we had the national highway

national traffic safety administration in was last december and there were plenty of unanswered questions that day. we also had the manufacture you are of the takata airbag that day. there was very little information he would divulge. we have to have moved far beyond that point. still don't know there is a root cause that has been identified. gerri: no. >> why these airbag ruptures are occurring. that is the underpinning, unsettling aspect of this investigation. i'm grateful nhtsa did expand the recall last week. i'll tell you my own experience most people aren't aware that there is a massive recall going on out there. so if i can accomplish one thing this afternoon, you better check your vin number against the nhtsa database. it is safercar.gov. enter your vin number or call the dealer say am i included in this recall because there are a lot of cars out there. gerri: you have a lot on the

table there. let's break this down a little bit. you mentioned a lot of different things here. number one, we don't know if the new airbags will be any better. they need to be tested. that is what we hear from experts in the field. will you demand that? >> you have to. right now it is not even clear that there is an adequate supply of new airbags to replace the ones being recalled. forgive me, you know i'm just a little bit, fellow from takata airbags last time was not forth coming in his testimony. so i have i regard their ability to provide the replacement products i'm a little bit circumspect about that. gerri: wow. i know a lot of people out there have lots of questions about those airbags and are concerned as well. you join a relatively large group of people who are asking questions about them tonight. here's what fred upton had to say who is chairman. committee. we have endured a year of takata ruptureses and recalls families

are still at risk. no excuses. congressman, let me ask you this question. has nhtsa done its job? should they be on the hot seat as well? >> well they will come in and dr. rose kind, the new administrator at nhtsa will be there and he will be prepared to answer your questions. i look at that as a difference from where we were perhaps eight months ago. so i think the willingness of the national highway traffic safety administration to work with the subcommittee, it has been a fairly open process between the two. i will take him at his word he will be there an be prepared to answer our questions. i think that is a good thing. there will be questions that can't be answered. and i do understand that but i also will have the automobile alliance and global auto group in. very, you know a very daunting task they face in getting information out to their customers to get the recalled automobiles back in and get them fixed before we have another

tragedy. that is the main thing. let's get this fixed before one of these things goes off again. gerri: pardon me, sir even if you chere is no guarranty you will get that product in any reasonable amount of time. we called dealers here in new york city. some of them laughed at us frankly when we asked how long it would take. some of told us they won't be in the building until july or august. if you know about this you're concerned f you don't know about this and don't know whether our takata airbag i will repeat what you said, congressman burgess, get the vin number, vehicle identification number in the jam of your door or check out by windshield. safercar.gov. call your dealer if that is a takata airbag. congressman burgess. thanks for coming on the show. appreciate your time. >> good to see you, thank you. gerri: speaking of cars, some unbelievable video. a self-parking volvo, look at this, plowing into journalists

during a demo in the dominican republic. look at this. unbelievable. that is a journalist getting hit by a car. at first many thought the accident was the result from a malfunction in the car but it seems the ownerses actually neglected to pay extra money for feature that stops cars from crashing into people. extra fee covers pedestrian detection functionality. the two men are reportedly bruised and okay. the car was supposed to operate on its own in the right way. it clearly did not. how about that? you excited about those self-driving cars? i'm not. coming up, we're days away from the start of hurricane season. will this year be better or worse than last? before we worry about hurricanes texas realing from a rash of deadly storms as the rain continues to fall. we'll have a live report from houston. stay with us.n a ♪ at the starting. and questions the same asking.

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>> welcome back to the willis report, in a moment the latest on those deadly floods in texas. a look ahead to the hurricane season. time for a look at other stories in the news. attorney general loretta lynch calling out the world soccer body accusing fifa of being corrupt for at least 24 years. the organization is facing federal charges soliciting bribes. several officials were arrested. six of the seven are fighting extradition to the u.s. stocks going higher. technology and health-related stocks led the gains. mcdonald's will stop reporting its monthly sales numbers. ceo steve said june will be the last month for sales reports. burger king, taco bell kfc do not report monthly sales. the epa is moving to protect

water bodies. administrator gina says the rules will only affect waters having direct and significant influence on larger bodies of water.

stay there and maybe drop two to three inches of rain in a short amount of time. on that soil already saturated it will cause flooding again. gerri: too bad california is not getting the rain, rick. >> true. desperately need it. no sign of that happening yet. gerri: rick, thank you.

>> you bet. gerri: when we come back, more of the exclusive series troubles in the skies as we look at faa pay. next republicans and democrats anxiously awaiting word of supreme court on the future of the obama care subsidies. first here is the consumer gauge with the numbers that mean the most to you. super poligrip seals out more food particles. so your food won't get stuck and you can enjoy every single bite. eat loud, live loud, super poligrip. super poligrip holds your dentures tightly in place so you never have to hold back. laugh loud, live loud, super poligrip.

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>> a high stakes lawsuit striking at the heart of obamacare will take center stage at the supreme court by next month. health care subsidies for several americans could be struck down. paul. paul welcome back to the show. the suit is called king versus burwell. a hearing just days away at the supreme court. in effect, it could put at risk -- from taxpayers for

health care. tell me what it would do. >> right. there are 37 states that have either federal exchanges or federal-assisted exchanges. if the supreme court holds the law says exactly what it says in english exchanges are eligible for subsidies. those 37 exchanges aren't eligible for subsidies. >> the state subsidies would go away. >> the federal subsidies would go away. >> let's look at the numbers and what that means. 8.8 million on federal exchanges. 2.85 on state exchanges. you can see how it puts so many people at risk here. how do you think -- because i've heard a lot of people -- what's the best thinking right now on how the supreme court will rule on this? >> look, i thought the supreme court back in 2012 was going to overturn the individual mandate to buy -- justice roberts convoluted himself and said it's a tax. upheld it. this is not a constitutional

question. it's a plain reading of the text. it gives roberts and kennedy reason to say plane plain reading of the text. congress screwed it up. >> then what happens? if king versus burwell, if the people bringing this suit prevails surely there is something the administration can do to keep law. >> so the administration has been saying, no, we have no backup plan. it's ridiculous, of course they have a backup plan. i think they have two plans. one of which is for hhs. the government to say republican governors who don't have state exchanges just deem -- it's legitimate. get your subsidies back. >> super easy. >> the second plan is to mercilessly browbeat and say this is your problem. gerri: can we talk about the impact of this and what's going on in terms of cost? i'm reading that administrative costs for this law, aca are going

through the roof. what's happening and why? >> i'm skeptical. that's for physicians for national health plan. advocates for single-payer. i'm skeptical. the administrative costs are going up. now, premiums are going up. and going up a lot. >> and through the roof. >> this is the first time insures have insurers had a full year of claims. in 2013, they were guessing. they had no time. this is the first time they're looking at a full year of claims. we need big increases. thirty, 40, 50%. >> let's look at the average family deductible $10,000. in 2013, it was 4200 bucks. so you get sucked in by this number in 2013 and then suddenly, bam, you get hit by a huge cost. how do you think people will react? >> they'll be unhappy. a lot of people -- this is before your insurance kicks in. this is you're paying

premiums. if you get sick, you can face a five, ten or more higher premium before you get to obamacare. obama tied the hands of insurer. there's only two things you can do. raise your premiums or deductibles. that's about it. choice has been ridiculous. consumers not eligible for subsidies are feeling the pain. >> absolutely. we're hearing from so many people who don't want to pay for that. paul, i want to mention some of the premium rate hikes ahead. 51% rate hike. in tennessee 36% increase. these are by individual providers in those states who were providing the obamacare coverage. you know, we should have known it would happen. right? >> two important provisions are going away. the federal backstops. reinsurance and risk corridors. the federal government moves money around and help the insurance companies prop against their losses. those programs are going away in 2017. they have to increase rates to make sure they're stable before that happens. >> paul thank you for coming on. great job. we have an update on our

report, trouble in the skies. how the faa is helping people cheat on entrance tests. there's the dubious personality test that puts some candidates ahead of others with better grades and qualifications. it's being done for the sake of diversity in the nation's towers. a lot of money at stake. adam shapiro is here. adam >> let's talk about the job the air traffickers concern, this is a stestlesstressful job. these people are paid well because of what's required of them. very skilled jobs that are very pressured. top five states for air traffic controllers to be employed. california with more than 2,000. florida with more than 1700. new york, georgia and indiana. indianapolis hub there. look at the median wage. $122,000. that means 15% earn more

than that. new hampshire highest paid on average. virginia 136,000. georgia, 134,000. and ohio, 131,000. so you're asking why so much and for some people it would seem like a great deal of money well it depends on where you are. for instance, new hampshire they're part of a specialized zone which is boston air traffic. also they're guiding the planes that are at higher altitudes flying at faster speeds. they require more training than people outside of ohio and cleveland at the overton center. but you can get $172,000 a year according to the labor of bureau statistics. you have to be high up. they need to hire 1000 a year. as we showed in our expose of the cheating taking place on the entrance exam all you

have to do is speak english be an american citizen, us citizen and have a high school diploma. >> and a really great personality, from what i understand. thank you so much, adam. still to come fashion house, lilly pulitzer making headlines after causing a stir at target. the company is under fire for fat shaming cartoons popping up on twitter. we'll have the details and get your reaction. ♪

♪ gerri: the famous resort line lilly pulitzer under fire after new york magazine published this photo. take a look at this. it's an illustration displayed of the employee's work area. showing self-deprecating images. just another day of fat

white and hideous. you should probably just kill yourself. joining me now psychiatrist and member of our fox team, keith ablow. welcome back to the show. good to have you. these images really disturbing. this isn't something that lilly pulitzer put out. this is something that a worker at their workstation put up until presumably for themselves to see. what do you think is the mind-set of somebody who does that? >> well you know really bad judgment. and kind of self-focused. i haven't evaluated this person, but most of us would say look, there may be people walking by. i may want to motivate myself in this somewhat bizarre way to not snack but other people can be hurt by it. this person is not keyed into empathy. it's sad it went viral. that hurts people too. gerri: the other image we didn't read about shows a woman in an overweight

woman in a bathing suit. put it down carb face. we're all about shaming people who may have an extra few pounds. a little bit overweight. it seems to me there's more popularity important things to worry about. >> there are a lot of things to worry about. we have adversaries around the globe. our economy is challenged. i will say this, that people who are overweight, if they're using images like that to motivate themselves in the privacy of their own homes. first of all not if they say anything about hurting yourself because you're overweight. some of these images if it's like posted on the refrigerator and you're living alone and you don't have a daughter orson who will see it and misinterpret, sure move themotivate yourself. we do give each other a little bit too much of a pass probably when we're addicted to food. which we don't do for alcohol or cigarettes. food it's so

omnipresent, we seem not to want to challenge those dependent on it. >> what about shame? shame is a way to motivate others. does that work? >> it really doesn't. empathy is the way to motivate others. making them everything they can be. you don't get people to stop eating by calling them names or by shaming them. you get them to stop eating too much by saying, listen, i think you're defeating yourself. i think you could have more self-control and be more powerful. i wonder if you're using this as a drug. what's eating you? it's not what you're eating. it's what's eating you. that really is the way. understanding gets people to care about themselves. gerri: i love that dr. ablow. great advice as always. thanks for coming on the show tonight. >> thank you so much. thank you gerri. gerri: now, we want to know what you think. is society obsessed with people who carry a few extra pounds? log on to

gerriwillis.com and vote. i'll share the results after the break. we'll be right back.

>> the fashion company lilly pulitzer is apologizing after photos were uncovered after showing fat shaming cartoons on an office fridge. is society obsessed with people carrying a few extra pounds? 79% of you said yes. 21% said no. be sure to log on to gerri willis for our online question every weekday. now you can vacation like donald trump or at least owned by donald trump. a bed and breakfast owned by his organization has opened his doors to the public. the 26,000 square foot estate has ten rooms right next to the trump winery. donald bought the property for six and a half million dollars.

it's gorgeous. you can stay at it for 300 bucks a night. beautiful. thanks for joining us. don't forget to dvr the show if you can't catch us live. making money with charles payne is coming up next. have a great -- charles: so are there two americas? are they drifting further apart? remember barack obama, hillary clinton, they railed about the two americas in 2008 saying, hey, it's an indictment against bush. it's an indictment against capitalism. of course the notion they all favored the rich. in the last six years, policy and rhetoric, browbeat the rich have backfired. a couple things have proven to be right. a, obama's policies crushed the dreams and hopes of the middle and lower class. and b rich people spend money. that money goes into society. it creates jobs. they're not hoarding money. although, it's their prerogative. tiffany's did you see it today the biggest winner on the s&p. coupled with the strong sales recently