a toy drive with a twist. they founded santa paws. they learned no group was providing holidays for pets in shelter. >> you're always look for an idea that will catch. something different. i'm hoping he found it. >> dana: good news there. got more than 3,000 pet toys out. i'm dana. here's shep. >> shepard: he was in the room. it's noon on the west coast. 3:00 in washington. new york there's a lot going on in the investigations of president trump and his people. the deadline has just passed, 13 seconds ago for the special counsel and former national security adviser michael flynn to hand over more documents. the president says prosecutors tricked michael flynn into pleading guilty to lying to the fbi. we'll see what the new documents from both sides reveal. plus, there's word president trump personally asked the head of the national inquirer to pay

off a former playboy model. for that, the president blames his former fixer for illegal hush money deals. but now michael cohen says the president knew that the payments were wrong. we'll hear from cohen in his first interview since his sentencing. the feds are looking to how the president's inaugural committee spent's millions and whether it took illegal donations from foreigners. the white house is responding. reporting on that and more begins now. our reporting begins with president trump's former long-time fixer michael cohen who says of course president trump knew it was wrong to arrange hush payments during the campaign for women who he had affairs with years ago. but directed michael cohen to

make the payments anyway. michael cohen spoke to abc news george stephanopoulos in an interview. >> he directed me to make the payments, directed me to become involved in the matters, including the one between mcdougal and david pecker and pecker's counsel. i just reviewed the documents in order to protect him. i gave loyalty to someone that truthfully does not deserve loyalty. >> he was trying to hide what you were doing, correct? >> correct. >> he knew it was wrong? >> of course. >> shepard: that was from good morning america. cohen's first comments since being sent to prison for violating campaign finance laws and lying to congress. we have not heard from the president directly since that interview aired. bill hemmer asked the white house deputy press secretary about it this morning. >> quite frankly for the media to give credence to a convicted criminal who has lied on multiple occasions and admitted

to doing that is frankly laughable. the president has maintained and said many times he's never instructed michael cohen to do anything illegal. we stand by that. >> shepard: it's the special counsel giving the credence. it's the special counsel who has the evidence. those prosecutors say michael cohen as lawyer and fixer arranged the payment at the direction of candidate donald trump. by law, he who directs it is responsible for it. directing can also be a crime. laura ingle reporting live from new york. >> shep, the finger pointing got ugly they are week as both men went on the record blaming each other for the hush money payouts to former playmate and porn start that michael cohen admits were designed to influence the 2016 presidential election. the former fixer says he's angry with himself because he knew what he was doing to help his boss was wrong. president trump said he should have never hired michael cohen

to begin with. >> i never directed him to do anything wrong. whatever he did, he did on his own. >> i don't think there's anybody that believes that. nothing at the trump organization was done unless it was run through mr. trump. he directed me to make the payments, directed me to become involved in these matters. >> cohen said it's not true that he wants to embarrass the president but said he will not be the villain of his story, shep. >> shepard: two important items coming up. the area of trust and the timing of the payments. >> yeah, that was discussed in this interview with abc. cohen has been convicted as we know of lying to congress about a russian real estate deal that he said was over before the election but wasn't. he was asked how anyone is supposed to trust him now. >> special counsel stated emphatically that the information that i gave to them

was credible and helpful. there's a substantial amount of information that they possess that corroborates the fact that i'm telling the truth. >> you're done with the lying? >> i'm done with the lying, done being loyal to president trump. >> cohen talked about what was going on behind the scenes when the hush money payments were being made. >> you have to remember at what point in time that this matter came about two weeks or so before the election post billy bush comments. so yes, he was very concerned about how this would affect the election. >> to help his campaign. >> to help him and the campaign. >> cohen that began working for the trump organization in 2007 said the man he once knew has changed since moving into the white house saying he's not the donald trump that he remembers from trump tower, shep. >> shepard: laura ingle reporting from new york. we're learning more about

president trump's involvement in the hush money payments. the "wall street journal" reports that the president personally talked with the national inquirer publisher, named david pecker, about keeping women quiet. the parent company of the journal and the parent company of fox news share common ownership. the journal is now reporting citing court documents, reports and interviews with three dozen people that president trump was indeed involved in almost every step of this agreement. and another pay off to a porn star. the feds have the evidence to prove it all. this goes directly against what the president said in april. >> did you know about the $30,000 payment to stormy daniels? then why -- why did michael cohen make that payment? >> you have to ask michael cohen. he's my attorney. you'll have to ask michael. >> do you know where he got the money to make the payment? >> no. >> shepard: so how did we get

here? attorneys for karen mcdougal say the national inquirer executives paid her $150,000 in august of 2016 as part of a catch and kill strategy, to squash a claim that she had with president trump. the president denies the relationship. and then there's stormy daniels. her lawyers claim cohen paid her $130,000 weeks before the 2016 election in order to keep her quiet about her claim of a sexual relationship with president trump. the president also denies that relationship. wednesday, a judge sentenced michael cohen to three years in prison for crimes including campaign finance violations that came at the direction of candidate donald trump. that same day, they cut a deal with the parent company that owns the national inquirer. american media inc. admits they made the payment in concert with a candidate's presidential campaign to prevent a woman's story from influencing the

election. it's very clear. the president says the hush money payments were not campaign contributions and even if they were, there was nothing wrong with -- there was wrong with making them. it was cohen's mistake, not his. john bussey is here. he's a fox news contributor, associate editor of the "wall street journal." john, thanks. >> pleasure. >> shepard: your thoughts? >> well, i think that you've kind of laid it out. it's not a he said he said argument, which i think the president is trying to suggest that it is. his word against michael cohen's word and after all, michael cohen has been found to have been a liar, so why would you believe him? it's not that. the prosecutors have been piecing this together using a lot of information that they got after raiding michael cohen's office and home, getting tapes, getting papers. they have, as you point out, an arrangement, an agreement with mr. pecker so they're hearing

from him. i think the president is seeing that the very deliberate process of federal prosecutors in new york and the mueller investigation are kind of providing a lot of additional information that buttresses their confidence in what mr. pecker and mr. cohen have said about the president. >> shepard: the number of different stories coming from the same person and the president must give pause to some on capitol hill. >> yes. at this point some folks are beginning to get more concerns about what this might mean politically going to 2020. let's put aside discussion of possible impeachment proceedings. that is a fraught road to walk down. with this hanging over the president and as each day goes by, another rather remarkable disclosure being made about these arrangements that were made and possible, we don't know for sure yet, ill legality on

the part of the campaign. this is creating a political concern in the republican party. you don't really hear it yet voiced by senators and congress people aligned with the president, but this is going to be a burden as they head now into the 2020 election process. >> shepard: john bussey from the "wall street journal." thank you. all of this as we're getting word that federal prosecutors now in a new thing are investigating whether president trump's inaugural committee misspent some of the $107 million in donations. whether top donors gave money so that they could gain influence in the upcoming administration. that is strictly prohibited. that's according to the reporting of the "wall street journal" as well. the parent company of the journal and our company share common ownership. part of the article reads --

>> shepard: here's the response from the white house. >> that doesn't have anything to do with the president or the first lady. the biggest thing the president did in his engagement in inauguration was to come here and raise his hand and take the oath of office. the president was focused on the transition during that time and not on any of the plans. >> shepard: the journal notes that robert mueller is looking into whether any foreign money flowed into the inaugural fund, which is also not allowed. and there's breaking news now on fox news channel. we said at the top of this news cast that the deadline had just expired for michael flynn documents to be released and it's happened. our catherine herridge has the list of those documents. just moments ago, robert mueller handed over documents related to flynn's interview with the fbi. that interview took place in january of last year. so january 2017. michael flynn later pleaded

guilty to lying in that interview about contacts with the then russian ambassador about sanctions. like the special counsel's memo last week on sentencing recommendations for flynn, the bigger story here is what investigators do not share with us. robert mueller said flynn was so helpful to investigators that he should get little to no prison time. sentencing guidelines suggested six months. much of that was blacked out. it told us that flynn sat down for 19 interviews with prosecutors. his lawyers say he turned over thousands of documents and the special counsel's office reports that flynn has been helping with other criminal investigations that they have not yet disclosed. catherine herridge has the documents now and is pouring through them in washington. catherine? >> sort of three buckets of information here that we want to touch on. first, the special counsel's response to flynn's legal team and their sentencing memo is

they don't think there's mitigating circumstances for flynn's interview in january of 2017. you'll recall that flynn's legal team that he was discouraged from having a lawyer present for the fbi interview and he was not formally warned that any false statements could be used in a future prosecution. the second document i want to draw your attention to is a memorandum. the name from what i can see is blacked out. based on my understanding of the story, this was a memo written by then deputy director andrew mccabe. a significant portion is redacted but lays out the sequence of events and how the interview came about with flynn. there's one section that is redacted that i want to read to you. i have a very good sense of my reporting what it refers to it. it says lieutenant general flynn was trying to build relationships with the russians. he had calls that he exchanged

condolences. he then stated that i probably knew what was said and then it's redacted, based on my understanding and my reporting. i believe flynn said to mccabe that the fbi knew what he said because they had a transcript of the intercept because they were tracking the russian ambassador's phone calls and flynn had spoken to him when he was outside the country and would not have the same protections as an american citizen for their communications because he was outside the united states. now, the last document here is what is called an fbi 302. right here. it's a formal usually typical or official summary of an fbi interview. what is not -- what remains confusing to me is this is from august of 2017. it says that it's an interview with strzok by the special counsel about the flynn interrogation. the reason this is sort of odd

to me, a de-sync here, 302s are don within days of the interview. this relates to flynn and being done many months later by the special counsel and with strzok. that requires further explanation. huge sections of the document are redacted. so i would rather not speculate about what it says but i'm drawing a tension to this gap in the time line. the august 302 or the interview summary of flynn from january, which is seven months earlier, shep. >> shepard: the document does from my reading say that flynn was lying before, lying to and lying after. i'm going to read a section here, catherine. quoting here -- this is from prosecutor mueller -- "former head of an intelligence agency, retired lieutenant general and 33 year veteran of the armed forces knows he should not lie to federal agents." it seems on that part that is

bottom line-ish. >> that's been their argument. flynn dealt with the rbi on a routine basis. i know from covering the intelligence, these meetings were done to discuss the latest intelligence or counter terrorism targets. he had a very sort of familiar relationship with the fbi. it says the agents described flynn as being jockular and friendly and showing them around the west ring. the bottom line, someone like flynn with military and intelligence experience should have known that he couldn't make statements that were misleading to the fbi. flynn's lawyers argued that they didn't treat other situations in the same matter. they point to george papadopoulos and that he was warned about the serious nature of the investigation.

critics of the special counsel and director comey point to hillary clinton. she's a sophisticated target in an investigation -- >> shepard: seriously? >> yes. that's what they point to. >> shepard: let them point, this is what the the prosecutor is pointing to. hillary clinton. seriously? the point with that was, that investigation is over and we're on to a new one. this one is very much underway. and i have a brand new document i'd like to road. >> good. >> shepard: part one, defendant's false statements prior to january 24, 2017: the defendant made his decision to lie about his communications with the russian ambassador two weeks before his interview with the fbi. on january 12, 2017, the "washington post" published a story saying that the russian ambassador had spoken with him the day the united states announced sanctions and other measures against russia in

response to that government's actions intended to interfere with the 2016 election. why did obama dabble on russian hack something that's the reference point. then it says the post story asks whether the defendant had undercut the sanctions and whether his actions violated the logan act. the defendant asked the subordinate member to convey false information about the communications with the russian ambassador. to be clear here, what happened was the united states notified the russians, we're putting sanctions on you because you meddled in the election that americans voted in. so we're sanctioning you. after they did, michael flynn called the russians. the question is there a quid pro quo there? did he make a promise? they say you shouldn't have been calling. of the fact that you called, you

lied. so the u.s. places sanctions on russia, michael flynn calls russia. michael flynn lies about calling russia and tells others to lie for him about calling russia. that is more russia lies. and from the very beginning, 17 different people, 80 to 90 different lies, all on different occasions, all about russia, all without reason, all without context. i remember distinctly the day we found out about the meeting in trump tower. one revelation after another revelation and suddenly seven people in the room and then eight people in the room. suddenly a russian translatener the room and they had no knowledge of it. they had no memory of this meeting in trump tower. they had no memory of the russian translator. they called it a nothing burger, not a thing. didn't remember it. didn't happen. and all of that was lies. john bussey is with us, this

program is interesting. because they point out things that we already know as they move toward their assessment of michael flynn and what his actions were. we put sanctions on the russians for med delling in the election. general flynn called the russians, lied about calling the russians, continued to lie about calling the russians and told a subordinate to lie about the call he made. there's that. >> there is. i think we're starting to get kind of an outline of the table of contents will go into the mueller report. we have a fraction. we don't have the cliff notes to this report yet. there's so much material that they're wading through, material that you just described, material that is in our scoop today and in today's "wall street journal" on federal investigators in manhattan looking at the inauguration,

funds that were contributed to the inauguration, were they misused. how did they get on to that? there was an adviser melania trump that helped with the inauguration. this person talked with michael cohen. there was a tape of that conversation. it was retrieved when the fbi raided his home and his office. what else was retrieved? what are they looking at in the inauguration funds, whether or not there was foreign money flowing into it in an effort to gain access and influence donald trump or to get favors. there was a tendency developer interested in a nuclear project. he contributed money. later on, he contracts with michael cohen to represent him and trying to get a loan from the energy department. his lawyer didn't respond with any comment. the white house isn't commenting on that. these are all things that

mueller is deep into. >> shepard: i want to read right from the top, john. because i think it's relevant from the beginning, this is from the top of the document. if we have a shot of it in there. i don't mind reading it. "government's replay. not very long. "the united states of america by and through the special counsel robert mueller iii respectfully submits this reply to defendant michael t. flynn's sentencing memorandum." gives a reference. "in this sentencing men random, the defendant cites circumstances surrounding his fbi interview on july 24, 2017, as a factor that mitigates the seriousness of his offense. the circumstances of the defendant's interview, which are further described below, are not mitigating." in other words, you having a investigating factors and

mitigating factors, this is not a mitigating factor. "nothing about the way the interview was arranged or conducted caused him to make false statements to the fbi on january 24." then they give us context. here's the context. "the defendant chose to make false statements about his communications with the russian ambassador weeks before the fbi interview when he lied about that topic to the media. the incoming vice president and other members of the presidential transition team. when faced with the fbi's questions on january 24 during an interview that was voluntary and cordial, the defendant repeated the same false statements. the court should reject the defendant's attempt to minimize the seriousness of those false statements to the fbi." john, everyone has been trying to minimize the seriousness of the false statements. he lied to "the washington post"

about contacting sergey kislyak, the ambassador that was a known russian spy. he lied to the vice president about this according to the vice president's office and the white house. and then in a voluntary cordial as it's been described interview with the fbi, he lied to federal investigators. this man of enormous standing in our nation. who has been through so much and has learned so much, realizes that he's just lied to federal prosecutors. the one thing -- we know that happened. what we don't know is why he felt he needed to lie. why mike flynn felt he needed to lie about kislyak hahn the same day that the administration in the white house put sanctions on russia for interfering in the election which donald trump won.

that's what we don't have a why on. >> that's what mueller is going to attempt to answer and we should assume that because mueller has met with or his special committee has met with flynn as many times as it has for as many hours as it has, similarly with michael cohen at this point. the mueller investigation has voiced confidence in the information and the analysis that they have ultimately received and the conclusions they're beginning to draw. we can assume that there's going to be a lot more data points that are filled in that helped us as a public and certainly the judge or the jury or the inquiry that proceeds from this reach its own conclusions about what actually happened, when it happened and who asked for it and who is involved. that information is in the hands of mueller and he will be convincing or he won't be

convincing. the increasing data load that we're getting now and the degree of cooperation that mueller is getting from participants in these different discussions across an array of allegations is compelling. >> shepard: he lied to "the washington post," reading from this filing, over the next two weeks the defendant repeated the same false statements to multiple members of the presidential transition team, including incoming chief of staff, the white house press secretary, sean spicer and then all of those officials repeated the defendant's false statements on national television. and then circumstances of the defendant's false statements on january 24th, 2017, the day he lied to the fbi, the day of the sit down. his decision to make false statements was voluntary and intentional. the fbi director, andrew mccabe,

informed the defendant about the topic of the interview. then they cite the men random. mccabe explained that the fbi needed to talk to him in light of the media coverage and his recent contacts with russian representatives. continuing to read. when the defendant asked mccabe if the questions would concern his contact with the russian ambassador to the united states, mccabe confirmed they would. in other words, they told him in advance, you've been saying you didn't talk to sergey kislyak, the russian ambassador. we're about to ask you about that. he said all right. during the interview, the fbi agents gave the defendant multiple opportunities to correct his false statements by re-visiting key questions. when the defendant said he did not remember something that he said, they used the exact words that the defendant had used in order to prompt a truthful response. the interview was voluntary. lacked any coercion.

when arranging the interview, the defendant agreed to speak to two fbi agents. they agreed to conduct the interview in his office. the defendant was relaxed and jocular and he lied through his teeth about the contacts with sergey kislyak. chris wallace is live with us. we know the details, chris. we don't know the why. >> no, we don't. i certainly agree with what you're suggesting and also with what the special counsel is suggesting in his statement. this is not just some casual conversation and not a one-off. the fact is that michael flynn had weeks to a variety of people in the press and the transition, including the incoming vice president of the united states, mike pence, had lied about what he discussed with sergey kislyak. pence came on "fox news sunday" just before the inauguration and

speak about that and told the cover story that there was no discussion about sanctions in his conversation, michael flynn's conversation with kislyak. so he was continuing to tell this cover story, which he was telling as a victim because he had been lied to because michael flynn. so this idea that this was just a casual conversation and one off and a couple of fbi agents show up and hey, mike, how are you. oh, maybe i made this mistake here. no, this was a concerted effort by michael flynn about the purpose of his phone call with kislyak. it went up to and including talking to the fbi after he had told a lie to the vice president. so there's a pattern here. you know, it's interesting. we've been talking about our sister publication, the "wall street journal" which had a big editorial today and i usually agree with them. that this some kind of

entrapment by the fbi. entrapment usually means the fbi comes in to a crooked congressman and they say, here's a million dollars. you know, they were never planning to do anything. do us a favor. you can argue if they hadn't come in and offered the million dollars, they wouldn't have done the favor. so maybe you can argue that is entrapment. to come in and say, what did you talk to sergey kislyak about and then you lie about it, that isn't entrapment. it's a lie. >> shepard: a sitting national security adviser writes mueller, former head of an intelligence agency, retired lieutenant general, 33-year veteran of the armed forces knows he should not lie to federal agents. he does not need to be warned it is a crime to lie to federal agents to know the importance of telling him the truth. the defendant undoubtedly was aware in light of his many years working with the fbi that lying to the fbi carries serious consequences. the defendant agreed to meet

with the fbi agents without counsel and answer questions. his obligation to provide truthful information came with that agreement. if he lied, what mueller must have been thinking when the lies happened was, there had to have been a good reason. this man of the fbi, this man of incredible service to the united states knows you can't lie. so then he did must have been significant in some way and oh, yeah, maybe not related, but the same day that the united states put sanctions on russia, the same russians that he called and had a conversations with. there's a lot of smoke as there has been. we still don't know why. >> are you talking to me? >> shepard: i ran out of words. >> clearly, flynn did not think it was in the interest of president trump for them to put out the fact that when president

obama one day imposes sanctions on russia for meddling and the next day flynn has a conversation that the fbi knows about because they were surveilling it or the national security agency was surveilling it, some government intelligence agency and turns out that flynn was talking about, well, don't worry about the sanctions and don't overreact because we want a different relationship with you, undoing what the sitting president had done the day before, that wouldn't look very good for the trump transition. >> shepard: you have to wonder, did michael flynn reach out to sergey kislyak on that particular day at that particular time at the direction of anybody else or did he make that call on his own considering what his new position was or was he just calling for some sort of casual, you know, unrelated in any way, the timing is weird. but nothing wrong with it sort of event. we will probably hear from mueller on that at some point.

would you guess? >> well, yeah. obviously the real key to all of this is the fact that after he pled guilty as part of a cooperation agreement, michael flynn met with the special counsel's investigators 19 times. >> shepard: yeah. the orchestra plays because they know we have a break in three minutes. we'll return with chris wallace after this. urance, and as a fitness junkie, i customize everything. like my bike and my calves. liberty mutual customizes your car insurance so you only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ - [narrator] meet shark's newest robot vacuum. it powerfully cleans from floors to carpets, even pet hair, with ease, and now for cleaning surfaces above the floor, it comes with a built in shark handheld. one dock, two sharks. the shark ion robot cleaning system.

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>> shepard: continuing coverage of the documents. you know, sometimes when you get documents, you learn some things. we knew that mike flynn had lied because that is settled. what mike flynn was asking for was leniency because he had said, you know, there were mitigating circumstances here and the interview was this and that and, you know, i didn't know. the court says no to all that because you knew everything. then the rest of this is a bunch of redactions. our papers are blue because

they're on tv. you can see the redactions. the areas of redactions, there's stuff we don't know. so we won't read into that anything, because we don't have the context and perspective of it. we'll all have it eventually. chris wallace is back in washington. if there's something here, i don't see it. >> let me correct one thing. >> shepard: please do. >> you said the court didn't agree with him. it's not the court. the court hasn't ruled. >> shepard: the prosecutor. >> the special counsel who is issuing that filing and arguing against flynn's attorneys. if you want to know who said that flynn lied, the president of the united states back in february of 2017, donald trump, is on the record as saying that flynn lied to the vice president and lied to the fbi. so i don't know that there's

really much doubt about that. one other point i would make, i know before we got this document that you were talking a lot, shep, about campaign finance and the whole question of cohen and how much they know. one of the most undercovered statements is from jerry nadler who said on sunday illegal campaign contributions are clearly an impeachable offense. the question as to whether or not they're important enough to impeach a president about is a different matter. that really gets to the nub of it, which is you could argue that breaking the law is breaking the law but do the democrats want to overturn the duly elected election of donald trump over a campaign finance violation which is arguable. you can get good lawyers that say it wasn't a campaign finance

violation. it's a legitimate argument. you get to michael flynn and dealing with the russians and obstruction of justice, it's always seemed to me that this is where this case -- we still don't have evidence that the president was involved in any of that. but if he was involved in a conspiracy with the russians to meddle, if he was involved in obstruction of justice, i don't think there would be any doubt that was an impeachable offense. campaign finance is much more marginal as a potentially impeachable offense. >> shepard: and jerry nadler, who is the incoming head of the committee, was saying as much. you know, yeah, there's a violation. everybody has admitted to that. whether we're going to do something about it in congress on that matter is another thing. jerry nadler knows like you know and the rest of washington knows, this is not the end. there's more of something coming and then they'll make a decision on that. i don't hear democrats willingly and openly talking about impeachment that much anyway. >> well, some are.

>> shepard: some definitely. >> yeah. look. it's something that is clearly going to come up and it will be -- impeachment has legal surroundings to it. but it's a political decision ultimately. it's a decision by a bunch of politicians in the house whether to indict the president and impeach the president. as we saw with bill clinton in 1998 over monica lewinsky, that can go terribly wrong. you can make a case and get the votes and end up hurting your own political causes as the republicans did back in 98. so we'll have to see what calculation the democrats make here. one thing i think i would say is that, you know, people keep on talking and this gets back to your point, we don't know what will come out. people keep talking. this investigation will wrap up by thanksgiving, it's going to wrap up by christmas. we don't have a clue when the mueller investigation will wrap up, when he will write his

report and what is in it. what did michael flynn say in the 19 meetings. what did michael cohen said in his 11 meetings, what did manafort said in the meetings before their agreement blew up? what has robert mueller found on his own? maybe it's a lot, maybe it's a little. you can't jump the gun here and i will always take the over on how long it's going to be before robert mueller is going to announce what he's going to do. >> shepard: the over has been the bet since the beginning of the investigation season. >> absolutely. i think as people -- the end of the year is up. people are saying the first three months of 2019. i'll take the over. >> shepard: for now, just consider this to be the new norm. we'll see when that changes. you'll be the first to hear about it. chris will have a fantastic program this sunday with the president trump's attorney rudy guliani will be there. we'll probably get some knowledge dropped there.

and chris will talk with a microsoft co-founder, bill gates who is co-chair of the bill and melinda gates foundation. that's this sunday on "fox news sunday." it's on your local fox station, you know, the one where they have the football. that's where it airs the first time. airs in the morning time sometime. you have to check your local listings. then it airs later on fox news channel. you should watch it on your local fox station first. that's when it's new and great. coming up, i'll talk with a lawyer about this. what does this mean in the big picture? is there some sign of things to come? and i've been reading from some of you, flynn didn't lie. stop it, stop it. find something defensible. that's not it. the president said he lied. the vice president said he lied. robert mueller said he lied. incoming press secretary said he

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>> shepard: let's talk the legal of this now. john is here. he's a former federal prosecutor in the united states attorney's office for the eastern district of new york. good enough to share his time with us. thank you. >> good afternoon. >> shepard: flynn lied to the fbi. >> he doesn't challenge that. he admits it. >> shepard: yeah, circumstances. yeah. no mitigating. >> not a mitigating circumstance. he will get probation regardless. there was nothing in that interview that was problematic. flynn himself never challenged the interview or said it was entrapment or the fbi did anything improper. it's a nonissue. >> shepard: the rest is redacted. i don't have anything revelat n revelationary out of, this david pecker, the head of ami, the company which owns the national

inquirer, is now a cooperating witness. the national inquirer is a national co operating witness. david pecker had a safe. in the safe were secrets. does mueller have the safe? >> it's actually the southern district of northern that is investigating that. >> shepard: right. fd -- >> it's the prosecutor's office here in manhattan. pecker is at the center of the contribution issue. he was the man in the room. he hasn't lied to the prosecutors. he's been given immunity and you have to cooperate completely and give all evidence, including any physical ed. so he's going to be central. what the investigators are looking at right now, e-mails, memorandum. most importantly, the flow of funds. >> shepard: in an effort to learn the truth. >> that's right. >> shepard: these are career prosecutors looking for the truth.

the prosecutors work for the people. >> and they're not political. i was in the u.s. attorney's office at a time that we looked at democrats and republicans, people of all diverse views. you focus on what your job is. here there was a referral by mueller, the special prosecutor that there might be -- >> shepard: here, look what i got. >> and you have a person that has admitted and pled guilty. the critical issue here is whether or not the president intended that pay-off to be -- the influence the election or if it was done for personal reasons. that's the central issue. >> shepard: pecker said it was about the election. cohen said it was about the election. that doesn't matter. there has to be a conclusion somewhere that it was about an election. >> it's what is in the president's mind. it's an intent crime. intent crimes are proved by circumstances. one of the circumstances are witnesses that may have communicated with the target of the investigation and what they understood the exchange to be. >> shepard: so if you're doing this, you're following the money. >> absolutely.

the fact is that there was a shell corporation used, which is not a good fact. the fact is that money flowed from the trump organization to michael cohen and then to the national inquirer. that will be problematic. >> shepard: that's evidence of a scheme. not of a happenstance. >> evidence of hiding something. the president will say it's all personal. i didn't want the embarrassment of this coming out. the prosecutor will respond, why did you set up this route of the funds? michael cohen was at the center of it. then we go back to mr. pecker. he's is the key witness in this. >> shepard: more to learn. it will be awhile. great to see you. >> great to see you. >> shepard: the news continues after this. are you a veteran, own a home, and need money for your family? newday usa can help. we earned a lot of va benefits with our service. but the va home loan benefit is a big one. if you want to use it to get cash, call newday usa. va loans are all they do.

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>> shepard: 7-year-old guatemalan girl died in united states custody last week. u.s. officials say border agents arrested the girl, the 7-year-old, and her father in southern new mexico. officials say the little girl showed no signs of health issues in the initial screening. eight hours later, she began to have seizures and registered a 105-degree fever. emergency medical workers and lifted her to a medical hospital in el paso which later died.

officials said she had no food and no water for days. they say border agents took "every possible step" to save her life. she corresponded jonathan hunt this morning live from our west coast news office. >> the girl was in a group of 163 people who illegally cross the border from mexico into the u.s. now customs and border protection officials tell us the group was found by a team of four cbp agents at 9:15 p.m. on december 6th. they were held at a forward operating base near the border while being interviewed. officials say the group did then have access to water, food, and restrooms. nearly eight hours later, around 5:00 a.m. on the seventh, the girl who had according to cbp officials showed no signs of illness was put on the cbp bus for the 95-mile journey to the

processing center in new mexico. at that point, the girl's father told agents her daughter was sick and vomiting. they radioed ahead and when the bus arrived 90 minutes later 6:30 a.m., emergency medical personnel began treating the girl. she was not breathing and revived twice. at 7:45:00 a.m., she was transported by air ambulance to a hospital in el paso, texas. she died there just after midnight, december 8th, having suffered brain swelling and liver failure. >> shepard: what sort of reaction has there been from u.s. officials? >> appearing on fox and friends this morning, homeland secretary kirstjen nielsen said cbp agents said they did all they could to help the seven-year-old and an worn other migrant families to not to make this sort of arduous trip. >> it's heart-wrenching, that's what it is, and my heart goes

out to the family. all of dhs. this is a very sad example of the dangers of this journey. >> democratic senator dianne feinstein said in a statement that the death was "heartbreaking and unacceptable." then she went on, speaking of migrants in general saying, "this country owes them compassionate, humane treatment. we will be demanding answers from commissioner kevin michael eaton how this was allowed to happen." shep, given the girl died early on saturday, democrats also want to know whether the cbp commissioner was aware of the death when he testified before the senate on tuesday. he did not mention the death during that testimony. if he knew about it, democratic senators want to know why he left that out of his testimony. shep? >> shepard: jonathan hunt reporting live from los angeles.

the dow and stocks are in the tank. near eight-month lows after weak economic data from china. investors are worrying about the health of the global economy. traders also concerned about britain's impending departure from the european union. the dow was down as much as 549 points today. the s&p 500 falling to a eighth month low, health care and technology companies taking the worst losses. stocks plunged with blue-chip style does just real plunging at 500 at one point in hovering around their right now. the second largest economy shows greater weakness. beijing shows retail sales in the second largest economy grew at the weakest pace since 2003. industrial output rose the least in nearly three years. as domestic demand in china softened further. the week reports heightened concerns about the impact of a

protracted trade battle between the united states and china. shares of johnson & johnson at one point responsible in one way or another for about 100 points in the drop in the dow. so all around, the numbers are down for the day and down for the week as the dow is set to close down at about 500. i reporting continues now on fox news channel. >> neil: is there a connection between what you are looking at right now? special counselor bob mueller's documents, will the stocks dropping right now. more than they have before we got any of this. period of investors getting a little bit nervous right now that adding all their worries about trade, about things getting worse on the global front for a lot of markets that were once soaring that are not doing that right now, it's all added to uncertainty at the corner of wall and broad. one things were getting a handle on here is one of the reservation that have come