hi. [ baby fussing ] ♪ >> america live starts now. fox news alert. new information just in to fox news and on fox news, now finding ourselves in the middle of what is a growing series of reports about the department of justice targeting reporters and investigating media leaks. welcome to america live. i upon megyn kelly. this is a stunning twist. as we learn not one but three fox news staffers are caught up in doj investigations and last week it was associated press and holder justified by saying it is one of the worst leaks in my

career. is this one of the worst, too? you did the same thing to james rosen and so far, the washington post reporting that fox news chief washington correspondent james rosen was specifically targeted with government trackers monitoring his every move in the justice department. and the subponas that they needed to track james by effectively identifying him as a potential criminal. and just in the last half-hour, we learned william lodgenes and a fox news producer were looked into their leaks. lageunness. >> with these new revelations about the justice department and fbi into our colleague james

rosen, the fbi agent that had filed in his opinion rosen had committed a crime by working to obtain from a source in the state department. the agent writes that he believes that the evident that rosen had broken the law. at the very least as an aider or abetter or co-- conspirator. rosen said he was never conducted by the government despite the investigation including obtaining a search warrant for his personal e-mail but tracking his movement by tracking the security badge when he came and went from theitate department. the inspector general in the justice department with a leak regarding fast and furruous with the controversial gun operation. reporter william lageuness.

and we don't know if the sources within the justice department may have shared those e-mails with investigators or the fox employees accounts were accessed bite investigators and that is a question we can't answer to this point. investigators issued an administrative subpeona to a communication service provider to identify the personal e-mail address. we don't know who it belonged to. this comes as a controversy of the justice department sweep of 20 phone linesoused by dozens of associated press reporters. megyn in >> let's just back up here. in the case of the associated press, one of the outrageous pieces is that the doj gave no notice to the associated press. they went to court and let me tell you as someone who practiced law and you ask for

a warrant and you have no adversari you it is easy to get. you talking to the judge, trust me, i really, really, really need this. especially when you have the doj. so now we are learning that that not only understand with associated press but with fox news, with james. not only did james not have notice that they wanted to snoop on his personal phone calls and e-mails, his personal communication records, but fox news was not provided notice either? >> it was a surprise to everyone when we read the details on the washington post about how deep of an investigation this had been. i talked to mike and william. and all three say never any notice and in mike and william, we don't know how their e-mails were acessed. all three were not contacted by

the government before acessing all sorts of personal information and going in to get the search warrants. >> this is incredible. there is a process when there are leaks to protect national security. normally the doj would come to the reporter or news organization, associated press or fox news, we are investigating and will you share with us. and then if there is a impasse they want a wide range of organization and the news organization say we think it should be this narrow. in both instance the department of justice unfettered went in there and said give it to us. because there issan exception when national security is an issue. correct? >> just to note there is

a statement by the washington post by james rosen and the they abided by the policy to safe guard the press and public. some may take issue with that. megyn? >> shannon, thank you. we have more on this later in the show. how often is this happening? i thought it was worst ever. top 2 or 3 eric holder had ever seen. we'll go over with brett hume and a senior fox reporter if attorney general eric holder has broken the law here? how many news agencies are targeted and reporters are targeted and the doj apparently ignored the main crux of the federal law to exploit an exception to it and is that

exploited appropriately. we'll look into that, coming up. as the controversy continues to grow in the doj, we see the scandal in the irs grow in common nection with the targeting of political groups. there may be retalitory audits to go after republican donors and conservative groups. one story resulted in personal visits by a tf and fbi, to one woman. trace has the story. >> the irs is focusing on 2012. and this is involving katherine englebrett and part of king string patriots. we should note it is not a her word against the feds. we have seen the documentation. she and kings street patriots

founded a group called true the vote that supports voter id and find out voter fraud. in 2010 englebrett provided with nonprofit status with the irs. that's when the problem began. over the next two years, look at true the vote, they went through four different rounds of irs questions and investigations. hundreds of questions. they wanted facebook post and twitter messages and past conversations. and who they were talking to in the future. kings street patriots were questioned by the fbi six times and nonprofit status questioned by the irs. in the two- year thing. engle brett's family business were audited. the gun business and family manufacturing business and her

business by the irs. and two unscheduled audits by the tobacco and firearms. and audits by the health and safety. there were phones and congressman brady questioned the former head of the irs about this. listen. >> can you assure this committee that none of the information from the irs was shared or begin to another agency. >> that would be a violation of law and i don't believe it understand. >> you can assure us no sharing of the government information. >> i would be shocked congressman, if that understand. shocked. >> bottom line, it could be one big coincidence, but katherine

englebrick does not think it is. >> 55 million americans in harm's way of the powerful storm crawling over the midwest. severe thunderstorm warnings firing up in the map. the video is horrifying. at least 17 reported twisters. two people died in oklahoma. two storm chasers catching them in action. this is a glimpse of what we have seen so far. >> look at that damage. >> are you shooting that. >> i am all over it. >> littered with debris. >> windos are up. windows are up. don't drop down. i got. it >> it is crossing the enter the right now. that is huge. >> we are getting hit with rain.

look at that. that is like something out of a horror flicking. casy join us us from shawnee where a community was completely levelled. >> yeah, megyn, i am standing in the community, the mobile home park was destroyed. so the red clay, this is where a home was sitting. a mobile home, and when the winds came through. it lifted it off of the clay and blew it in the backyard and you can see it smashed it in a million pieces. the thing we talk about time and time again, is how random the damage is. you can see the devastation and across the street is becky king's home and it doesn't look like a shingle is missing, you are lucky. >> we left 30 minutes before the

tornado came and wanted to get our car to safety and didn't want our new cars tore up. >> but your daughter lives one street behind and lost everything. >> she was in the cellar and she came out of the cellar and her house was a total loss. >> what did it sound like. how did she describe it to you? >> sounded like a bigroar and heard a lot of wind and they knew something had understand. >> becky king, no doubt america's thoughts and prayers are with you and everyone here in oklahoma and the midwest. are you forecasters are predicting the storms to hit the same area of oklahoma later today. people like becky and her daughter and forecasters watching the skies as they pick up the pieces after getting punched in the gut yesterday. >> up next, lou dobbes said

crack down on the conservative groups that are targeted in the first place. in three minutes. we are gathered here today to celebrate the union of tim and laura. it's amazing how appreciative people are when you tell them they could save a lot of money on their car insurance by switching to geico...they may even make you their best man. may i have the rings please? ah, helzberg diamonds. nice choice, mate. ...and now in the presence of these guests

we join this loving couple. oh dear... geico. 15 minutes could save you 15% or more on car insurance. anncr: and many of the tornado's victims are... without homes tonight. girl: first, i saw it on cable. then i read about it online. i found out how to help. i downloaded the info. i spoke up... and told my friends... and they told their friends... and together, we made a difference.

anncr: and tornado relief has been pouring in from... across the country. girl: we might be hundreds of miles apart... but because we're connected, it's like we're all neighbors. your doctor will say get smart about your weight. i tried weight loss plans... but their shakes aren't always made for people with diabetes. that's why there's glucerna hunger smart shakes. they have carb steady, with carbs that digest slowly to help minimize blood sugar spikes. and they have six grams of sugars. with fifteen grams of protein to help manage hunger...

look who's getting smart about her weight. [ male announcer ] glucerna hunger smart. a smart way to help manage hunger and diabetes. lagueness -- we are getting reports that federal investigators are looking at a broken section of a track as a possible cause of a horrific commuter train crash in connecticut. they are not sure if the rail was broken in the crash or earlier prior to. they are also focusing on the breaks and performance in the trains and crew performance and trained signal information. connecticut to new york commute was badly delayed for tens of thousands this morning. and there was a big crash on friday and very scary event for a lot of folks who live in the new york metro pollittan area.

that is something you hope never would happen. we are waiting the start of the white house press briefing and expecting more tough questions for press secretary jay carney on the scandal targeting the white house. and this is as many law makers are floating a new way to solve the irs controversy. they think the solution is to crack down on the very types of social welfare groups, in this case conservative social welfare groups that found themselves to be targeted by the irs in the first place. as you know, there is a very thin line and maybe we must pass a law that makes it much clearer that the so- called social welfare organizations must make their proprietaries promoting

social welfare rather than in engaging in politics. >> a second scandal. hundreds of millions is used in c4s that is supposed to be used as nonprofit for political purposes. neven with the a grejous actions acknowledged by the irs, that is a problem with 501c4's engaged in politics. >> what planet do you have to be from to know that tea party is not used for promotion of the social welfare. that is low dobs. if any good come out of this irs targeting of the conservative groups, that it will be a greater crack down on those groups. >> it would be great to come out of this is a public spafrnging of those who use their intellect

on a deceitful way and trying to obbut skate and use air time to try to keep the american public in the dark rather than bring darkness than joy. >> started in the top this is the thing president obama was so upset about when citizens united guy by supreme court. and a lot on the left said they are bad, they are bad. >> that means they are good at least if you are a conservative, and this is a great republic of ours, left and right, conservative and liberals and republicans and democrats and from my perspective, independents. but the fact of the matter. 501 cfours are legitimate and

the president tried to say to the court justices that foreign could make their way. that could be small donors going in unfiltered web sites and contributing. it is against the law. there is disinformation throughout, from the president, throughout the democrat liberal organizations and this is the real issue. the real issue is abuse of power by the internal revenue service and reporting for timothy giethener. and there is a growing call on the left that that is not the real problem but the problem is the groups themselves. 501 c- three, help to donate. and they can do some political

activity, they can't be primarily political and the acquisition on the left they are political and don't deserve tax exempt status and use the 501- c- fou to cloak and that is bad. >> keeping the american public in the dark about who is contributing. that is the rule of the game. and 501 c3's are not simply charities it is move on.org. and organizing for action. you can go through the list. but the fact is, they are talking about obvisicating the real issue. it is a criminal act on the part of the internal revenue service that deserves investigation and all of the talks about 501c- fou

fours or threes. that should be investigated and bring wrongdoings to j. we'll be right back. ♪ to more efficient pick-ups. ♪ wireless is limitless. timothy mcve timothy geithners. timothy mcve

>> lou made's point in the break about the 501 c- four. they took 30 days to get their approval in the 501 c4. that is a political group, but the leftist doesn't have a problem. but doesn't like the tea party. that is the same thing with karl rove's grouf group. okay for one and not the other. that's why we have a story.

today we have a tragic twist to the story of the hostage stand point involving two young sisters in the hofstra university in university. trace has the case. 21-year-oldandegreea was in off campus housing and the front door was open and the 30-year-old suspect walked in with a gun demanding valuables. and told one of the roommates she had eight minutes to get cash out of the a tm. she left and call 911. she had her in a headlock with a gun pointed and he pointed it at police and the police opened fire. this is the dispatch audio.

shots with the hostages. shots fired. we have the suspect down. advoicing the suspect was down. the suspect was shot sen times and the officer that fired the shots 20 year veteran is on leave and devastated. >> here is the commander. >> we'll make sure he receives counseling and appropriate medical attention if he needs it. and when everything is over, when the criminal piece of this is over, we'll look at it from an internal piece and see where we go from there. >> the commencement ceremonies went on as scheduled. white ribbons flew in memory of rubello and students observed a moment of silence.

an drou rubello was a junior studying public relations in hofstra. sarah ingram used to run the internal revenue service. she has a bigger job as head of the tax diameter. how does she still have a job many wonder? up next, the look at the arguments of those who are calling for her to step down or be removed. more on the top story on whether we investigate doj broke its own rules. suggesting that james rosen was part of a criminal conspiracy because as a reporter he tried to get information from a source. that's what we do. it is protected by a little thing called the first amendment and eric holder suggested he was all in favor of it.

we'll see about. that stay tuned. >> jodi arias waits to see if she will take the death.or not. hunger creeping up on you ? stash a ritz crackerfuls. made with real cheese and whole grain. don't get caught hungry. ritz crackerfuls. fuchl fuc5

hofstr

dree dra .

>> new questions about the irs controversy plaguing the white house. we are awaiting the white house

press briefing. jay carney will take questions. should more heads roll, because that guy took over late in the game. joseph grant took over late. he took over from sarah ingram. she was in charge of the division when the problems began and okay great, joseph grant resigned. but what about hershey was there when the things was hatched. she was not only promoted to head up of the office best responsible for implementing the health care law. joining me for a debate. bradly and jouly who is a political adviser. fare well joseph grant who is her successor, brad. but she was there when plot was

hatched and put in place and she was therefrom '09 and 12 and some say she had stepped out. but she was there when it was born and carried out and from the sound it was the worst. >> this is not a low- level bureaucrat. show is a yale bureaucrat. she either acquestioned or approved. it either way it is unacceptable and for the president to address the nation from the east room and say he is getting to the bottom of this. he had to approve bonuses given to this woman in her performance in the scalpedal because they exceeded the authority. the president thought she was

doing such a great job in the irs, he put her in charge of obama care and gives her a raise. >> julie, one came out and said she has no business working in the irs at all let alone in health care reform and she should be fired and that is a voice on the left in this? >> i agree with what brad said partially. and sound like she was involved part of the time and the activities were going on. and she should not be working there. the problem is, after watergate, the powers for the president to do anything with the irs other than fire the political he cannot fire them. and for anyone to tie the president and say for him to

fire her. >> the president has authority over the executive branch of government. whether he likes us to believe it or not. it is not a independent agency. he can require they put her on leave and take her out of the position until show has begin a hearing. >> the president doesn't have a power to fire sufficiently servants that are almost unfireable. it is crazy their job security. we saw that in the spending thing with the agency. >> campaign. >> all i could think is gps. so anyway, none theless, they got her successor to resign. if you are advising the president, she needs to go, miss haul ingram needs to go. how to do it? >> tell the department of treasury to give her love and

give her opportunity not only for the agency to investigate her and congress. captaining has a consitutional obligation of oversight and she should be hauled down before them to explain her actions. the president can direct she be removed and give her time to defend herself. >> because it hasn't understand, whether the administration is happy that sarah hall ingram is there and got a bonus and promoted. folks in town hall, did someone know she could be trusted to play political hard ball. >> i am shocked they are trying to link it to the obama administration despite a fact that bush appointee and others have done 0 linkage of what was going on in the irs. >> she was closer to this than the guy who got fired. >> just so our viewers knows.

cincinnati determination office did it. it is the irs office for determining tax exempt status. that is the unit that did it. and then they answer to washington. and so the greater group in washington. she heads up the greater group in washington and she had closer authority to this than stephen miller. >> she probably had no business work negligent the irs. i don't agree with the few bad apples in the irs that it is coming from the west wing and president obama. >> the president is allowing him to continue? >> how can he fire them? >> i didn't say fire. we know she was ignorant or encouraged it or turned a blind eye to it. she's got to answer for the actions.

>> we only have a minute left. >> get her out. >> i don't want to close it out without asking about lerner. she is still there. this is the one who testified before congress two days before her press conference in which she broke the news that the irs did this and used a planted question. two days earlier, she was asked by a democrat, representative crowley and she chose not to disclose it and the democrat said she lied to him and she lied to congress. what is she doing with a job? >> i don't know. it is virtually impossible to fire career bureaucrats. >> they can fire for cause. >> and if the president were getting involved it would be old nixon. this president can't move. >> this is a systemic.

>> thank you brad. >> this is the way of doing business for the irs. it is not 1 or 2 bad apples. it is a lot and we need to shake the >> it would be not as bad if they didn't come to your house and stink it up. we are all afraid of them. >> that's true. >> and new developments on our top story. we heard from a top gop senator on reports brought to you today and washington post broke this morning. and the justice department targeted james rosen to get the information they wanted with a judge behind closed doors. they said he was part of a criminal conspiracy. they didn't let him know about that. and the top white house advisor saying it is irrelevant who changed the benghazi talking

points and why. ambassador bolton weighs in on the question a head. >> the question is not who editted the talking points. we'll make sure it never happens again. vo: traveling you definitely end up meeting a lot more people but

a friend under water is something completely different. i met a turtle friend today so, you don't get that very often. it seemed like it was more than happy to have us in his home. so beautiful. avo: more travel. more options. more personal. whatever you're looking for expedia has more ways to help you find yours. to prove to you that aleve is the better choice for him, he's agreed to give it up. that's today? [ male announcer ] we'll be with him all day as he goes back to taking tylenol. that was okay, but after lunch my knee started to hurt again, and now i gotta take more pills. ♪ yup another pill stop.

can i get my aleve back yet? ♪ for my pain, i want my aleve. ♪ [ male announcer ] this may, buy aleve and help those in need. angie's liat angie's list, i autyou'll find reviews. on everything from home repair to healthcare written by people just like you. if you want to save yourself time and avoid a hassle, go to angie's list. at angie's list, you'll find the right person to do the job you need. and you'll find the right person quickly and easily. i'm busy, busy, busy, busy. thank goodness for angie's list. from roofers to plumbers to dentists and more, angie's list -- reviews you can trust. oh, angie? i have her on speed dial.

former fabulous star o.j. simpson back trying to secure's

new trial. he is optimistic and believes that freedom is right around the corner and opened up about his different appearance. compared to how he looked now. he appears to have extra weight. he said it is all muscle and that he gained it by eating all of those beans. i am seven plus pregnant and it is all muscle. it is just baby and muscle and nothing else and that concludes the list of things that o.j. simpson and i have in common. more serious news. new develop ams in the top story. the washington post reported last night that fox news correspondent james rosen was targeted by the department of justice. the deal said he was part of a criminal conspiracy to get acess to his e-mail and track

his movements. marco rubio issued a statement that he is concerned that a obama administration targeted a fox news reporter for prosecution for doing who is normal with news gathering protected by the first amendment. we have a fox legal analyst. brit, you were on with martha earlier and this is the angle you raised and not unusual to see the doj interested when something like national security is leaked to a reporter. but what is unusual is to go to court and suggest that that reporter is a criminal. >> that's what happened here. an fbi agent filed with the court which is the basis of this story. it is 36 pages long and describes the activity of the person suspected to be a leaker

who is a case brought against him and described the colleague that is blacked out but it is james rosen, who is our chief washington correspondent. and megyn, the list of things that he allegedly did in the conspiracy. for example, he encouraged mr. kim to give sensitive documents about the foreign country. the reporter did so by deploying flattering and playing to mr. kim's ego. and much like mr. kim on a covert communication's play. they used different e-mail accounts. and employed aliases and citing things that james rosen said at one point that they think are particularly trouble system. what i am interested is breaking

news a head of my competiters. i want report a head of my competiters on initiatives and shifts in u.s. policy and intelligence on the crime. if that is a crime, i don't know what is left to be protected by the first amendment if that is in furtherness. >> rosen has criminal written all over him. when you were the managing editer you would have had him in the news gathering and trying to beat your competiters. >> we did a to rough background check on him and he was clean. all of this was to do what they did do, the thing that is most disturbing is not the fact they tracked his movements by using the state department badge. they presumably looked at it and all of this what the source was doing. that is in their purview.

but they went to court to get a search warrant from e-mail. it wasgle and a g- mail account and they didn't want rosen to find out about it. and they went to ask the judge to grant the search warrant and tell google to keep quiet. in the course of doing that. they allege the activity which we call cultivating the sources and reporting the news was criminal. >> they suggested that james had broken the law. and this is quoting from the affidavit either as aider or abetter or co-conspiritor. and the court signed off. it is easier to get them to sign off when there is no lawyer representing the other side. >> and not just the first amendment, megyn, there is a privacy protection that protects journalist from this

kind of thing and the only exception is someone is involving in a crime. what was the crime here? what was the crime receiving information? and meanwhile no criminal charges were leveed. this is beyond troubling this after the ap investigation and they did not go through doj procedures and did not conduct the ap or media source. they are supposed to negotiate with the media source. they didn't do that. >> eric holder said with the ap story when they monitor 20 phone lines and the reporters who used them two months without advance notice. this was one of the worst 2 or 3 yeek weeks in my career. it is so bad we didn't notice them when they went to court.

and now we find out that thing we've always wanted to do. it's not about having dreams, it's about reaching them. ♪ an ally for real possibilities. aarp. find tools and direction at aarp.org/possibilities.

want to pick it up on the leg front. last week with a we discussed was, yes, the d.o.j. can get your private records without giving you notice if it's a matter of national security. but how big is that exception to the rule? >> it's a very limited exception. not exploit that had often. when i was a federal prosecutor, i rarely saw it. so to have this again and again and again where there is really no meat to it and just you throw that out there, national

security with no examples, no real meat to it, and the proof in that is no criminal charges have been filed. >> and eric holder even last week said you have a long way to go before you try to prosecute the press for publication of leaked material. and yet we see the fbi alleging that james committed in crime. i want to ask you about the chilling effect on the reporters and sources in the wake of these revelations. >> well, i don't see how it could fail to have a chilling effect if you're worried that any communication you might have with a source is going to be a matter of record for the government, that your e-mails to and from a source may be read by the government. this is naturally chilling. one of the things you do and it's considered within our business a sacred obligation to protect the identity of your sources. if you can't do that or if your sources believe you can't do that, you'll be severely

hampered in your ability to get information the government doesn't want out. and classified information is often classified for very good reason. it is secret and should remain so. but an awful lot of material, reams of material, are classified willy-nilly and for the sake of protecting the government from embarrassment. reporters have gone after this stuff and have often blummed it for valuable information the public needed to know. so simply because something is classified doesn't mean you shouldn't come at it. >> certainly right. thank you both. we told you earlier about claims that the irs scandal now involve a tactic called retaliatory audits. that's the question being raised. up next a romney donor saying not only was he targeted, he was targeted three times.

as a kidid, i made a a list ol ththe places i i wanted toto . m mars, but thananks to hotwtwire's incredibibly low traravel price, i can affoford to crososs more things offff my list.. this year r alone, we went toto the top o of the e statue of f liberty, enoughgh to go to texasas-- to a a real dude rananch! ececks the coetitioion's rates s every day, lolow prices..

so w we got our r four star r ts for half p price. nextxt up, hollywood!d! -w-w-i-r-e ♪ ♪ hotwiwire.com save up toto 70% on any weweekend stayay.

fox news alert. a frightening situation playing out across america's heartland. less than 24 hours after an outbreak of two dozen tornadoes across six states, and moments ago tornado watches went up again. welcome, everyone. i'm megyn kelly. pictures coming in today are just terrible. thousands of homes reduced to rubble. entire communities literally wiped off the map it appears. in just -- they're gone. just gone. at least two people are dead. dozens more are injured. here is a little of what the storm chasers caught on tape. >> you can hear it. you can hear it. oh, my god. >> you got it? >> listen to the roar.

look at that. it hit something, dude. >> it just hit a house or something. son of a gun. >> it is crossing the interstate right now. >> the fox weather center has more. >> repeat performance in some of those same areas. we're just getting reports from yesterday. 29 reported tornadoes and the national weather service team out in norman, oklahoma has we think deemed an ef-4 tornado for shawnee, oklahoma. that's where we're seeing some of the worst damage. close to 200 reports of hail and damaging winds, close to 300 reports of strong winds. on the ef scale, 4 is 144-1200 miles per hour. an ef-5 is winds of 200 plus.

we saw that with the joplin, missouri tornado two years ago almost to the date. and we could see very violent storms again today including long lasting life threatening tornadoes. watches as you mentioned, just within the last few minutes, our first tornado watch of the afternoon and it's just going to continue. we also have a severe thunderstorm watch for lower michigan, but this until 10:00 p.m. and i expect we'll see more watches within the next several hours and unfortunately, more warnings. this is the area of severe weather where we think we could see the potential for very strong storms with an emphasis right here. and look at some of the cities that i've plotted here. shawnee, oklahoma, edmond, tulsa, fayetteville, branson, some of the same areas that got hit this time yesterday. this is a slow mover and even tomorrow, the same threat heading into tuesday. back to you. >> janice dean, thank you. we are tracking even more

severe weather around the country. this time in georgia where several streets and homes nearly submerged by raging floodwaters. one woman who was driving on the road at the time says she was almost killed. >> all i was thinking was am i going to die. i grabbed molly, my dog, and we ran to the back door to open it and it was flooded. and i don't know how to swim, so i panicked, i closed the door. didn't know what to do. >> wow. she was eventually able to grab on to some passing debris and then she paddled her way to safety. both she and her dog are expected to be okay. we'll go live to okay lahoma fo the developing weather there in just moments. new details in the scandal over the irs targeting tea party and conservative groups in little run up to the 2012 election. former top donor for mitt romney claiming he and his business were subjected to the irs's audits three times.

and investigated for a fourth. this comes as we're hearing growing number of reports of what are being dubbed retaliatory irs dozens it, but growing evidence that it may. the national co-chair of the romney campaign finance committee credited with blowing the whistle. and there is no doubt in your mind, is will, sir, that the audits you faced were in retaliation to your political activity?will, sir, that the audits you faced were in retaliation to your political activity? >> it's important to separate what we fear from what we actually know. and i don't actually know that the audits were in direct relationship to what happened on what's become known as the enemy's list that president obama's campaign put out a little over a year ago. but i do know that on april 20, 2012, president obama's campaign listed eight individuals out of the hundreds of thousands of donors to mitt romney, they decided the most important thing they can do was to point out

just a handful of then and watch what happens to them. and that's what they did. they sorted out eight of us, listed us on their website on the campaign website, and then said things about us like that we've been on the wrong side of the law. >> i want to show it up on the screen because this is from the obama team's campaign operation. and there it is highlighted in yellow in case the viewers can't read it. it says a closer look at romney's donors reveals a group of wealthy individuals with less than reputable records. wealthy individuals with less than reputable records. that's you, frank. >> and on the wrong side of the law they said later. so there are similarities to some of the other accusations we've been hearing today. so, therefore, a target. >> let's just start there. the feeling you had as a businessman who has done nothing other than make your own way in this country, in seeing the

president's campaign team call you less than reputable and suggest you had trouble with the law, forget the audits that followed, just that, your reaction when that happened. >> at that time, we didn't know we were going to be audited. but at the time, i thought this is going to be bad. people don't like to do business with somebody who is a crook. and indeed we got some phone call, lots of them, we lost some customers because of it, and then of course everything we versed when the news pick up there is an enemy list and everybody came to our rescue. >> and then the audits happened. three and then the threat of a fourth. you're a wealthy man. did you call your lawyers and say i worry this is linked to my donations to mitt romney, i was listed on this website as somebody who is less than reputable and now the irs. can we get to the bottom of that? >> i didn't. the first one came and i thought we'll be audited and then the second one and the third and then i wonder if it's not related.

it's one after another after another. but i don't know that they're related. that's the problem. but i do know this, president obama's s.w.a.t. team, his campaign, put a target on our backs. and you wonder if there is any relationship once people start shooting. you wonder. >> do you think about when you watch the scandal emerging today, because obviously we know conservative groups got targeted, but the white house says they have nothing to do with it? >> i hope they dig really deep. it's important we don't draw conclusions, but i hope they take one layer back after the other and find out who did what and who told them to do what. and see where it all lies. >> have you talked to the other seven? there was the eight wealthy individuals with less than reputable records. there was no evidence, but that was the charge levied. have you spoken with the other seven? >> i reached out to every one of

them. four were so concerned they didn't want to talk to anybody. they had been advised keep your head down, don't let this fester. that was like a year ago. but three of them talked to me. >> had they been audited? >> i'm not privileged to say, but i will say this, i'm not the only one that was audited. that's all i can say. >> is there a reluctance to speak out, a fear of further possible retribution? >> not by me. i don't know about anybody else. i can speak for myself. they can do what they want to do. >> why are you the only one who came forward? >> it's a harrowing experience to have -- i mean, it affects your family. it affects your business. you have to answer all these questions. we had to write e-mail, we had to do conference calls. we had to explain things. and then your kids and your grandkids go to school and they get picked on by other kids because their parents saided that you're involved with whatever. in my case, wrong side of the law, i've had a speeding ticket.

that's it. i never had anything. and i don't think any of the other people did, too. but people when it's the president speaking, he has credibility. people believe stuff right from the get go. >> and i know it cost you 80 grand in lawyer fees and accounting fees. you're a rich man, so it's not nothing, but it's not completely unaffordable, but if this happens to somebody that doesn't have the means that you have, it could be a career ender. it could be a business ender. >> that's what i worry. not only about the irs, but the things that you've been things about. people have to -- are going to interpret, i fear, that you have to be really careful because somebody will come after you you. so keep your head down, keep quiet, don't speak out. i believe the opposite. i believe the way to stop it is to speak out. and to take your hits and keep speaking out. truth seeks its own level. if people will dig for the truth, then everybody who is on the right side of the law will be vindicated i believe. >> i know right after this happened that you were listed as

one. eight. somebody started snooping around looking at your divorce records? they were going that deep looking at your personal information, your divorce records? >> they were looking at everything they could find out. 11 days after this list came out, somebody who purported at the time to be an employee of the federal government from the permanent committee on investigations was going through my -- through our local courthouse finding everything they could find on me. i'm curious. i'm hoping that that will be discovered. what was he doing there, why was he there. why was he investigating me. did it have anything to do with this list that had come out 11 days before. i'd like to know. >> before i let you know, if you have a message for barack obama, what is it? >> we need you. we need to you lead fuss a gousd direction. don't try to intimidate us. we need great leadership that will have moral character and we need examples of that. and this idea that we can be

intimidated because we disagree, i want him to be successful in his presidency. we all want the same thing. we want a great prosperous america. the democrats do. the republicans do. the conservatives and liberal, everyone. we argue about who is going to be the quarterback. and what plays to run. but just because we don't agree on who should be the quarterback doesn't make us the enemy. we're not the enemy. we have to come together and make good arguments rather than to try to destroy the messengers. let them argue, let the best arlt arguments win. don't kill off the messengers figuratively. that's the america that got to us where we are. let's go back to that methodology. >> frank, thank you. all the best to you and your family. >> thank you. if you were just joining us, we just got the 36 page affidavit that you heard brit

mention that the d.o.j. used to suggest that fox news roert james rosen was part of a criminal conspiracy for what we now know was trying to report on a story. the goal of reporting news. new questions about what this department of justice has been up to just ahead. plus a senior white house adviser this weekend saying it's irrelevant who changed the benghazi talking points and why. he can't understand why people are so focused on this. ambassador john bolton joins us with a response. and the tea party and new reports reports on what the house may have known and when. me, you and the american public, we're doing what they have failed to did and we have to continue to do it. even if it means an irs witch hunt. bring it organization determinations unit. [ female announcer ] doctors trust calcium plus vitamin d

to support strong bones. and the brand most recommended by... my doctor. my gynecologist. my pharmacist. citracal. citracal. [ female announcer ] you trust your doctor. doctors trust citracal. peoi go to angie's listt ] for to gauge whether or not the projects will be done in a timely fashion and within budget. angie's list members can tell you which provider is the best in town. you'll find reviews on everything from home repair to healthcare. now that we're expecting, i like the fact that i can go onto angie's list and look for pediatricians. the service providers that i've found on angie's list actually have blown me away. join today and find out why over 1 million members count on angie's list. angie's list -- reviews you can trust.

let's go live to the white house where jay carney is taking questions. >> let me walk you through this because we don't have any interest in being anything other than clear with you about that time line. so as we have said, the white house counsel kathy rumler learned april in that the inspector general was finalizing an audit. that's what they call this kind of report. at the time the audit was still on going and the inspector general had not issued its final report. the white house counsel's office routinely receives notification of pending inspector general matters as does congress and in fact this was one of several ig reports likely to be released soon that were communicated to staff in the white house counsel's office on april 16th in a series of items. but on april 24, kathy rumler

was informed that the inspect general was completing a report about improperly scrutinizing organizations by using words such as tea party and patriot. counsel was further informed the report had not been finalized and the publication date of the report was uncertain but likely soon. while we had an indication of the likely findings, until the ig finalizes his report, findings and conclusions are subject to change and in fact many reports do change significantly before they are published. so to be clear, we knew the subject of the investigation and the nature of some of the potential findings. but we did not have a copy of the draft report, we did not know the details, the scope, or the motivation surrounding the misconduct. and we did not know who was responsible. most importantly, the report was not final. and still very much subject to change.

after that initial notification in april, the white house counsel informed the chief of staff and other members of the senior staff. at no time did anyone on the white house staff intervene with the ir sfl rchlirs audit. there were communications with treasury, office of general counsel to understand the anticipated timing of the release of the report and the potential findings by the i sgchlt. we know that the hill also got briefings as congressman issa said he was aware of, quote, approximately, unclose the -- >> and there you have it, the time line is shifting a bit. as reporters continue to delve into what did the white house know on this irs controversy and when did it know it. michele malkin is a fox news contributor and now initially it was that they knew an inspector general's report was coming, but

they didn't know the findings. only white house counsel office, only the lawyers in the white house were told ig report is coming, but we don't know the finding. now we find out, well, actually they did have a notification of the pending results and not only did the counsel's office know, but the chief of staff was told and other staffers wered to and the top of treasury was told and yet still they want us to believe, michele, that barack obama found out from cable news a couple of fridays ago. >> yeah. where is my bag of popcorn? because the clown carney press briefings have turned in to a circus. we need benny hill music for all the back pedaling going on there. one of the key things to remember here, as many words are coming out of his unfettered mouth, the fact is that this administration made preemptive steps to you try and cover their back side before the official

report came out. the idea that they had no idea about the bombshells that were about to explode is completely laughable. >> the thing that is disturbing is why wouldn't they just say, why wouldn't president obama, if he knew, if your white house counsel knows, if your chief of staff know, if several top officers know and up in of them tell but something this big, this big, that barack obama himself said he found it outrage yurks possibly illegal,in of th tell but something this big, this big, that barack obama himself said he found it outrage yurks possibly illegal, pushing people to fire, none of them gave him a heads up saying mr. president, you need to know the investigation will come out and it's not going to be good? >> yeah. i mean, who knows. perhaps it's just that plausible deny ability shield that they were trying to encompass obama in. but like i said, i don't buy the spin going on right now.

from the white house press briefings or obama himself. >> you you'the question is whet is seeping out beyond party politics. because we have jay carney on tape telling us that the white house and state department only changed one word in the benghazi talking points and we know that's not true. thousa now we have them saying the counsel's office was told a report was coming but we didn't know any findings. thousand we find o now wi find out maybe they did. and eric holder saying we only did that stuff because that was one of the worst leaks i've seen in my life. so is there a credibility problem? >> of course there is. and it's not merely because of my ideology that i give this particular administration such short shrift. it's the fact that i've been covering the way that they have operated, the bully brigade

tactic, the way they have tried to intimidate their opponents and critics from even before day one in this white house. it's the way that obama has operated. >> that's where i want to pick it up with you after this break.

you were speaking of the hi. >> yeah, the brass knuckled intimidation whether it's directed now against grass roots activist or small nonprofits or reporter and journalists like james rosen. this is a theme that has played over and over again not only with the white house, but with the obama campaign. and anyone who is really paying attention can see it even back towards where you had obama himself directing his minute i don't knows to try and shut down

a which i talk show host who wanted to talk about obama's cad ral past. wgn with stanley kurtz. and as time progressed, even many of the local and metropolitan newspapers were coming under fire. you had the "san francisco chronicle" which was put under the thumb of this administration because they had a reporter who wanted to tape one of the fund-raisers and did it and was chastised for it. there have been many local reporters who have been yelled at or screamed at or leaned or or pressured by this administration. so for everyone who has felt the boot of the obama administration and its goons on their necks, i think tomorrow is especially a good day to make yourselves heard. and there are tea party patriots across the country who will be marching to their irs offices locally at noon, taking time off most of them of course are

gainfully employed or are small business employers themselves finally sick of it all. finally. >> what do you think will happen with the tea party? because they were so active and vocal in trying to stop the health care law and then engaged in a lot of candidacies, some of which were not successful, but many which were. look at the overall record of the tea party, it's pretty darn good. but they haven't been as vocal lately and yet this whole thing seems to have revived them, their cause, giving them credibility that the left would never give them. what do you think happens to the tea party? >> the democrats and liberal media try to strangled this movement in its crib and we now know as a result of the irs scandal that the obama administration itself top brass, not just low level rogues, have been trying to stifle their political activity. and to undermine their freedom of assembly and their freedom of

speech. i think what happened in the first wave, and i covered the tea party movement from its very first days, had to have this sense of public protest and demonstration because people really need to realize that they were not alone. social media was a huge help of course in organizing. and then there was a second stage where a lot of people were learning the nuts and bolts of political activism and engagement and started running for local and state offices. and all this time of course, you had the tea party bashers and water carriers and democrats pronouncing them dead, dead, dead, while they were to go tdo hard work. now it's not so much a resurrection because the flame has always been there. this is just another push to try to educate people. even if you can't get to an irs

office, put a yard sign in your yard and just simply declare we will not stand down. >> michele malkin, thanks so much for being here. >> you bet. coming up, a top white house adviser saying it is, quote, irrelevant who changed the benghazi talking points, the ones that they told us they didn't change, and then we find out they have been changed substantially. now they say who cares. and ambassador john bolton joins us live with a response on why it's not irrelevant in his view. . >> the question isn't who edited what talking points. that's largely irrelevant. what is relevant is what do we do to make sure it never happens again. % inintroducing g the greatt weekekend sale a at hotwire.e. any y weekend hohotel stay,, anywywhere,

whenen you bookk a hohotwire hot t rate. the e great weekekend ♪ hotwiwire.com

. new struggles for the obama administration as it tried to answer questions on the terror attack in benghazi and whether the administration changed the talking points on what happened there in order to protect the president during a re-election campaign. remember this from the secretary of state? >> the fact is we have four dead americans. was it because of a protest or guys out for a walk one night? what difference at this point does it make? it is our job to figure out what happened and do everything we can to prevent it from ever happening again. >> that was almost four months ago go. but that message is back again as white house senior adviser dan pfeifer saying it didn't

matter who changed the talking points that they told us the white house and state department barely touched. now he says that is entirely irrelevant. >> and i mean this as no disrespect to you. why are you here today? why isn't the white house chief of staff here to tell us what happened? and the question isn't who edited what talking appointments. that's largely irrelevant. what is relevant is what do we do to make sure that never happens again which is why the president is calling on congress to beef up security and protect our diplomats who exist in an environment of risk. >> ambassador bolton used to hold the job susan rice held. we were told there have been talking points but they only changed one word. that is what jay carney said, one word from diplomatic to post or facility. that's it. and now we know that that was entirely false. and now the message is it's

largely irrelevant. and we sort of heard a similar message from hillary clinton in january. what difference does it make. >> i think this felle low must have learned the word irrelevant the day before and decided to take it out on a test drive on the sunday morning shows where the president was the night of september 11th was irrelevant. breaking the law at the irs is irrelevant. the fact is that the talking points are important in and of themselves and as an example of the larger earth ffort to diver attention from what actually happened in benghazi. the whole mohammed video approach that went for two weeks after the attack up to the president speaking to the general assembly. so the talking points i think are an episode that is important because it was the first time that the sunday talk shows got this particular version. and, look, anybody who has ever been in an administration knows that the decision who represents

the administration on the sunday talk shows, what their subjects are, are controlled by the white house. so the decision to send susan rice to all five of them just like sending this fellow yesterday to all five of them was something the white house decided. they clearly decided the talking points. that's their approach. they will don't answer questions. they just give out talking points. and that was a critical line of defense in their effort to divert the story from what actually happened. >> what they may forget or the public may forget, i don't think your viewers forget this, but is the way this unfolded. they told us that it was all about a video. that's what they said. spontaneous attack, it was about a video, a hateful video that we had nothing to do with. and then we started reporting, i was on the air, i remember you were there and reacted live to it, that there were no demonstrations outside of benghazi on 9/11 or 12 when the attack took place. and since then, we've been asking why did they say there

were demonstrations and why did they link to a video. now after fox news keeps pushing for monthi ins and mofrpnths an mocked, there is something there and the talking points do say spontaneous attack changed to protest. that came from the cia in the wake what have we saw happen at embassy cairo. so that piece of it was answered. but none of that was disclosed by the administration. they didn't say let's update you. we had to push every step of the way for them to give us an inch and then we were told by jay carney in terms of changing the narrative and removing the terror reference and so on, we had nothing to do wheith it. the white house didn't change the talking point, the state department didn't other than consulate to diplomatic. and as americans when we feel like we're being misled, it

starts to smell bad and then we push further and further and we want answers. >> even secretary clinton said what difference does it make if it was a demonstration or a couple guys out for a stroll. it was neither one of those two things. it was a planned attack on a visible american target that sadly succeeded. and that's what did difference it makes even to this day. if you think that the cause was something that was not the cause, i.e. the video, you won't be able to protect americans what the real cause was, which was international terrorism is alive and well in benghazi, in libya, in the middle east generally. and that's what they don't want to admit because it flies in the face of the world view that the war on terror is over. >> the department of juf juof j targets in the wake of the foiled terror plot and the reason the a.p. says they think the white house took interest,

because it was the one year anniversary of the killing of ubl, saying that's kind ofoff, don't worry, we have things under control and then the a.p. uncovers evidence that not only is there chatter, but there was an attack planned, another underwear bomb that the cia can it foil, but it was under way. and they believe the white house is trying to tamp down that their taf, too. >> it was reported so that the administration could take credit for successful counterterrorism effort. here is an assignment for reporters. the white house says we have prosecuted twice as many national security leaks as all prior administrations combined. somebody out to get their list of prosecutions and put it out on a chart what the prosecutions were for. i bet it will show leaks that were detrimental to the administration politically as opposed to which prosecutions have they undertaken for leaks that matt administration look good.

all of the constant briefing to mainstream press like the "new york times" and "washington post" that take credit for the killing of osama bin laden. nobody prosecuted there. let's see who they actually prosecuted and why. >> before i let you go, dan also says republicans who criticize ambassador rice now owe her an apology for accusing her of misleading the country. >> i think president obama owes us an apology for putting somebody on television after four americans were killed who had no responsibility for it and who obviously didn't know the basic facts. hillary clinton should have been out there that sunday. every secretary of state i've ever worked for, all six of them would have been there to explain the administration position. where was hillary clinton? what was her problem? >> ambassador bolton, thanks for being here. fox news alert now. moments ago, the white house taking questions about the department of justice targeting james rosen reading his e-mail including his personal e-mail

follows his movements within the state department suggests jamgs had broken the law. the white house responds and karl rove next.

... ... one more question. can did the president approve of the justice department's handling of the kim leak

investigation? we now know the investigators in the case not only seized james rosen's phone records, they went through and read his e-mails, they tracked his comings and goings inside the state department. does the president approve of that kind of action by the justice department against a reporter? >> i will refer you to what the president said in response to a question about another matter along these lines and that is that he is a strong defender of the first amendment and firm believer in the need for the press to be able to conduct investigative reporting and facilitate a free flow of information. he is also as a citizen and as commander in chief insistent that we protect our secrets, that we protect classified information and that leaks that we take very seriously the leaks of classified information because leaks can endanger the lives of men and women in uniform and other americans serving overseas for our cup. >> this one, too? that's the story we heard last week to justify the a.p. story.

now the same explanation this week from jay carney. he was reacting there on it a question from john karl of abc news. telling a federal judge in order to get a search warrant that james was part of a criminal conspiracy, they had to say that because they wanted to go into court without telling us, without telling jamt, so they could have no opposing counsel and convince the judge to let them read his e-mails, track his movements all in an effort to find a leaker who they thought they already had and they had that leaker's records, but they wanted to see james' as well. moments ago executive vice president for news here issued a statement. it read, we are outraged to learn today that james rosen was named a criminal co-conspirator for simply doing his job. in fact it is down right chilling. we will unequivocally defend his right to operate as a member of

what up only now has always been a free press. karl rove is a former senior adviser and deputy chief of staff to president bush. your reaction to this breaking news. >> deeply troubling. look, every american has sympathy for the release of confidential secret information. but i thought there was a fellow who spoke to this question last week under oath in front of congress who put it right. he said the focus should be on those people who break their oath and put the american people at risk, not on reporters who gather the information. they should not be the focus of these investigations. that was attorney general holder speaking before house committee in response to a question by congressman hank johnson of georgia. and we had to confront this question during the bush administration. there were leaks of classified information and in each and every instance, the focus was on

the potential leak, not the reporter who received it. you can imagine who would have happened if the "new york times" which was the recipient of a number of those confidential leaks if the bush administration had asked for the phone records secretly of up to 100 editors and reporters at the "new york times"? you can imagine what would happen if the bush added minute strags h administration had gone in and filed for secret information alleging that a reporter for the "new york times" was part of a criminal conspiracy? we know what would be happening today. look, the focus ought to be on the people that do the leaking. the press is supposed to try to collect information and report it. that's their job under the first amendment. and this is really chilling. >> everybody remembers scooter libby went to jail for that leak and president bush refused --

>> no, no for that leak. >> let plea just make me just m. >> there was no violation of the law. >> he was accused of lying. but the point is the bush administration was -- members of it were accused of leaking to the "new york times" including our own judy miller information about this woman's identity. you were involved in that, as well. but judy miller went to jail because she refused to disclose her source. and in covering that case, i never remember a side show about the bush administration secretly subpoenaing her phone records and her e-mails and getting search washt warrants without n to her counsel so they could just get to the bottom of the information. >> and to go one step further, megyn, i think it was the experience of anybody asking in the bush administration, we all signed affidavits that said if

you are a reporter who had a conversation with me about this, there is no presumption of confidential on my part, you can disclose any conversation, any communication, any e-mail, any discussion between us about this issue without violating your journalistic ethics. now, look, there is one other thing i want to go back to this, because this makes it even kurt effort more chilling. last week, in that testimony under oath, the attorney general said, quote, with regard to potential prosecution of the press for the disclosure of material, that is something that i have never been involved in, heard of, or would think would be wise policy, unquote. the reason this is troubling to me is we do know he said that he recused himself from the a.p.. but he did not say that he recused himself from the james rosen incident. and this subpoena asked for by the fbi under department of justice guidelines could not have been requested without the

approval of the attorney general and if he does recuse himself, the deputy attorney skrn. >> stand by because we have a hard break coming up. we'll pick it up with you there next. [ female announcer ] doctors trust calcium plus vitamin d to support strong bones. and the brand most recommended by... my doctor. my gynecologist. my pharmacist. citracal. citracal. [ female announcer ] you trust your doctor. doctors trust citracal.

>> megyn: the statement from the department of justice read in part: release of classified information to the press can pose a risk to our national security. such investigations and prosecutions including, in this particular indication, followed all applicable laws and policy intended to safeguard the first amendment. last week we were told by attorney general eric holder they had to run into court and get the ap information without notice to the other side so they couldn't have a lawyer present because it was matter of

national security. one of the worst leaks he had seen, and lo and lo and behold,o chance for anything. >> there's a big difference between the ap and james rosen. in ap they were looking to identify the leaks by going to the people who he leaked. this one they're clearly focused on james rosen was part of a criminal conspiracy. they wanted to prosecute not just the leaker but the reporter who got the leak and last week holder said, quote, prosecution of the press for disclosure of material is not something i've if been involved in, heard of, and would think would be wise policy. so, did the fbi get this without his approval as required by justice department guidelines? was he lying under oath? or was this decision made by one of his deputies because he recused himself? or was he simply not in control of the department of justice? because there's a difference

between going to the ap and trying to identify the leaker by looking at their records. it's another thing entirely to say we're going to prosecutor the reporter. >> they haven't prosecuted james. they prosecuted the leaker, a case brought threeers ago. but the fact is that doesn't change the issue of them naming james as a criminal co-conspirator for doing his job. >> that's exactly right you can't prosecute somebody unless you suggest you're going to prosecute them and this is a clear declaration by the fbi and department of justice they considered him a target of a criminal investigation. and wanted to prosecute him for criminal conspiracy. this is beyond the pale. [ male announcer ] dunes, desert, or trail,

only rzr delivers. now's the time to buy during the polaris xp sales event. take your pick of our new limited edition rzrs and get financing as low as 2.99 percent. save even more with rebates up to 500 dollars... or totally customize your new rzr

with up to 500 dollars of free polaris accessories. razor sharp performance is waiting for you during the polaris xp les event. well, dad, i spent my childhood living with monks learning the art of dealmaking. you've mastered monkey-style kung fu? no. priceline is different now. you don't even have to bid. master hahn taught you all that? oh, and he says to say (translated from cantonese) "you still owe him five bucks." your accent needs a little work.

your doctor will say get smart about your weight. i tried weight loss plans... but their shakes aren't always made for people with diabetes. that's why there's glucerna hunger smart shakes. they have carb steady, with carbs that digest slowly to help minimize blood sugar spikes. and they have six grams of sugars.

with fifteen grams of protein to help manage hunger... look who's getting smart about her weight. [ male announcer ] glucerna hunger smart. a smart way to help manage hunger and diabetes. what a day. thankses for watching. >> shepard: what a day. thanks very much. the news begins anew. jodi arias could be addressing the jurors again after defense attorneys announced the they will not call any witnesses to testify on her behalf as the jury considers a point death penalty for the woman convicted of stabbing, shooting, and slitting the throat of her ebbs love, and lawyers want off the case again. >> the irs controversy put new pressure on the white house. tea party groups say they're prepared to sue the feds. >> why your privacy at the pharmacy may be at risk. jerry willis report on a new wish to keep retailers from stealing personal information th