we will try to get the origin of "do this." "the factor" continues 24/7 at billoreilly.com. i am bill o'reilly. remember, the spin stops right here because we are definitely looking out for you. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- sean: tonight -- video of the prostitution scandal that could bring down acorn. >> ok. let's see what we have got here. sean: congressman joe wilson challenged the president last night and he is here. >> i have known him for 20 years. sean: i go one-on-one with one of president obama's closest friends. you do not want to answer my question. you do not want to deal with this. all of that and more. a very busy "hannity" start now.

the community organizer group acorn has fired two of its employees after they were caught on tape offering advice to a man and woman posing as a pimp and prostitute on how to skirt tax laws and import young girls from el salvador for the purpose of child prostitution. the story came to light as a result of an undercover investigation conducted by a filmmaker. he and a colleague posed as a pimp and prostitute trying to get an underage prostitution ring off the ground. they solicited the help of the baltimore office to get their "business" in order. >> there is a code for it. >> a code for prostitution? >> i need a name and a code number. i am going to look in here. >> we need the right tax code. that is wonderful.

>> your business is performing arts. that is what you are. it is not lying. it is a play on words. performing artist. stop saying "prostitute." sean: childhood prostitution, performing arts. acorn might get millions of your tax dollars, but they're happy to show this prostitute how to cheat the irs. take a look at the tax specialist, who shows her all the things she can write off on her taxes. >> you have to have a certain clothing. you can write that off. you have to have a certain grooming. that can be written off. do you get little gifts or some kind of incentive or something to your clients? >> condoms. >> you do not travel. >> they travelled to her. >> you do not go over there.

ok. you can probably write off $9,000. ok? sean: she heard that right. the tax specialist calculates the prostitute can write off almost all of her in, and later learned that the same employee encouraged her to claim a $9,600 salary as opposed to $96,000. that is not all. here's the filmmaker and the companion describing their plan to bring underage, illegal immigrants into the prostitution ring. unbelievable. >> there are people in el salvador that of gotten wind. -- have gotten wind. i am interested in taking care of them. >> they are very young. we do not want to put them on the books.

there are 13 of them. they will probably move into this house. >> for a year. >> they can do this type of thing. >> [unintelligible] >> they need our help. everyone else is being discriminatory. there'll be 13 of them in the house and we do not want that to cause trouble. sean: these are young kids. acorn has no problem with that. the employee was happy to have him hide the girls from the irs. they get taxpayer dollars. take a look. >> [inaudible] they are not really going to be employees. they are under 16. the others, you can claim them as a dependent.

they live in your house. >> ok. >> you are taking care of them. >> what they are making money? >> if they are making money and they are underage, you do not have to let anybody know, anyway. sean: acorn fired the official on those videos. will this all the problem? joining me now to discuss the -- discussed this incredible story, by two guests. we know so much about acorn. they get taxpayer dollars. i discussed this with you awhile back. why don't you explain how you got involved in this, how they decided to do this, how this happened, and what was said so our audience understands? >> congratulations to "60

minutes" and cbs for having the guts to take on a corner. just kidding. it was two intrepid -- a 25- year-old and the woman wants to be a journalist. james was already on his way to being one of the great journalists. what did he know about acorn that he could walk through the doors of the baltimore acorn that he would find this? he went in to acorn thinking there was going to be something like this and he found it. he positioned himself as a pimp and she was a prostitute. every step of the way, these people, you know, participated and up the ante. i am here to tell you that james o'keefe and the woman are heroes for doing this. we all knew that this is what happens at acorn, to a degree. sean: michael, we will get into

the criminal issues that could be in play here in just a few minutes, criminal facilitation, and judge napolitano says there could be as many as eight crimes potentially involved here. i wanted to explain the part about this being a child prostitution ring that they are talking about. this person says, you can say they are performance artists. then, they are advising them the things they can write off, dodge taxes. doesn't acorn get money from the u.s. treasury? >> they get millions of dollars from the treasury. you cannot make this up. not only are they facilitating and helping the pimp and prostitutes set up a child prostitution ring, they are also telling them they can take a child tax credit for the underage prostitutes. i really think -- about them

being heroes come acorn owes a big apology to the filmmaker. they put out a statement this morning charging him with gotcha journalism and that he was confirmed -- he was committing defamation. they realized there was truth to what he reported then they fired these employees. they owe him an apology and also a thank you for rooting out these employees. sean: the level of corruption is the question we have to get to hear, the criminality, whether or not taxpayer dollars should go to a group with a series of investigations and questionable tactics. i want to go back to something that you said. we had a media that ignored bill ayers and reverend wright. we had a mainstream media that ignored jones. we have eric holder. we have a lot of radical surrounding this president. he was once the lawyer for them.

i know they need a lawyer, but does this connect back to the president of the united states in your mind? >> i am not going to get into how this relates to the president. i think you touched on the most important theme here. we are going into tea parties this weekend. they first started on tax day. then, the town hall meeting started happening over the enlargement of government and the fact the stimulus was not working and they did not like the health care ideas. what we're seeing here and what i think you will see saturday is more than outrage against the mainstream media. they did not vet this president and they are not vetting him or the people around him. sean: remember, he was their lawyer. when you put all the pieces together, and all of the people around him that have these radical associations, ties to so many -- ties, so many, their extreme and the media does not

touch it. there are two parts to that story. >> of van jones was a community organizer himself. acorn is the primary community organization. barack obama won a presidency because he did not go to corporate law. he went to go help mrs. mcgillicuddy eat apple sauce because he was this benevolent community organizer. now we understand what a community organizer is. sean: i am out of time. i appreciate you being here. great investigative work. when we come back -- thank you for being with us. we will show you more of this video. we will get to the criminal side of this. also, he challenged the president during his speech last night. congressman joe wilson is here.  achoo!

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[inaudible] they are not of legal age to work, anyway. they do not even exist. sean: they do not even exist. that was more of the shocking video produced by james o'keefe. he posed as a pimp and found the employees more than willing to help them get around all the laws to get his prostitution ring up and running. joining me now to discuss all of this story are kimberly guilfoyle and a columnist. you know the girl that when undercover. >> right. she is a friend. she is a college student. sean: she did this on her own. this is something she initiated. >> she had the idea. she was an intern at a d.c. think tank this summer and she

thought the story needed to be covered. it was alarming that other networks and news channels did not agree. it is an embarrassing day for the liberal press. sean: they never covered than jones, either. >> we have been talking about acorn for months. someone needed to get the story. sean: i want to look at the legality of this. you are a lawyer. our friend the judge napolitano made the case that literally, criminal facilitation this year. prostitution, operation of a prostitution ring, filing false documents, bank fraud, immigration laws, transporting children into the u.s. or immoral purposes, and a couple more. how likely is it that those criminal charges stick? >> they will have to show there was an act committed to facilitate those crimes of the

alleged conspiracy to commit tax violations. they should also check into other things. let's see if the administration looks into any of these things. acorn, they will be conducting our senses. why are they not disbanded? sean: they will need a lawyer. >> they should have a lawyer. sean: wasn't barack obama their lawyer? >> very community organizing group. sean: in all seriousness, we are talking about child importation, prostitution, exploitation for money, tax evasion. doesn't this group get money from our government? >> taxpayer dollars help fund this organization. we should all be outraged.

we have been outraged about this for months. i do not know where the rest of the media is. it is fox and conservative journalists that have been after this. no one is listening. where is journalism going? >> it is serious. it is a criminal enterprise. they do not make any bones about it. they are making jokes about committing these crimes against children and then saying, if you can get us -- give us a fee, we can show you how to claim them as dependents. >> acorn had the gall to come out and be indignant about this because a college student could get the story and no one else did. it is gotcha journalism. >> they fired these employees. sean: broader picture, we had van jones. we went into his history of radicalism. we have holder who believes in

compulsory abortion. we go back to jeremiah wright and bill ayers. what does this say about this president? >> in the beginning, people were saying, you are making much ado about nothing. you are being fanatical. there is not a big deal here. it speaks to the larger issue of the vetting process. does the white house know this is the background of these people? sean: what does it say about the president and this group? he was teaching one of the radicals. >> you can ignore one or two that get through the cracks. when it seems to be a pattern, and it is, of behavior, you have to think there is a vetting process. it is intentional. they are checked up a list. these are exactly who barack obama want it. >> it goes back to the president

and he should not associate with groups like this and they should not be in business. sean: they used him in the election. >> it is collusion. sean: thanks for being with us. he is the most wanted man in washington and he is right here on "hannity." joe wilson is here. d

d this country definitely needs to focus on other ways to get energy. we should be looking closer to home. there are places off the continental shelf. natural gas can be a part of the solution. i think we need to work on wind resources. they ought to be carefully mapping every conceivable alternative. there is an endless opportunity right here.

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sean: president obama might have tried to sell the country on government health care, but some remain outraged by washington's irresponsible spending and are

not convinced by his bumper sticker message. it is time to check in with griff jenkins. he is with the tea parties express. he joins us tonight from albany, new york. >> we have traveled over 4,000 miles from syracuse here to albany, new york. this is the 30th stop. this group like the 29 before is the america that washington forgot. that is how they feel. their white, black, young, old, male, female, and they're upset about the size of government and the bailout. they're upset about taxes. they're upset about czars. there are more than 50,000 people. they see themselves as a part of an america that is rising up to

reclaim itself from a government that has run amok, a government that has overreached itself. that is what they say. i believe in the heels of -- on the heels of the president's speech, we are hearing an awful lot about health care. the message we send to washington, this is the 30 it stop. there are few more to go, and then it is time for washington. do you have a message for washington? [cheers and applause] >> stop the insanity. >> it has been 14 days. two more to go. we are headed to washington. sean: the issue of health care reform is one that inspires passionate debate. last night during president obama's speech in the house chamber, the controversial topic cause congressman joe wilson to speak up. take a look. >> there are also those who claim that our plan would ensure illegal immigrants. this is false.

the reforms i am proposing would not apply to those who are here illegally. >> [unintelligible] >> not true. sean: joining us from washington is the man that has everyone talking. congressman joe wilson. welcome back. thanks for being on the program. >> it is an honor to be with you. sean: you have already explained it. you explain you were sorry. you spoke out in an emotional moment. it is squared away with the white house? >> they were very gracious and accepting of my apology. they said, let's discuss the issues. sean: i want to go -- that is what i want to do. the president said last night, these are facts, nobody disputes them. i can name five things, the issue of whether or not illegals are covered, whether or not this covers abortion, whether or not

medicare is cut, what "and of life counseling" is, and the cost. let's start with immigration. are illegal immigrants covered in this bill? >> in fact, they could get the insurance. they could get the benefits and the subsidies. the reason i know this is because i served on a committee where we considered amendments. i followed the amendments on other committees, the energy and commerce, and i noticed the democrats defeated the amendment that would provide for enforcement. there is verification of citizenship. when the president said this, i knew what he was saying was not accurate. i do apologize for speaking out, but what he said was not accurate. sean: let's talk about this. congressional research investigated this. why don't you tell everybody what they found? it is in direct opposition to what the president said.

>> we have a congressional research office. just last month, they did a study and indicated there were no restrictions against providing or not -- providing for illegal aliens to fully participate in the programs. sean: here is the question. i read the bill, every page of it. >> i did, too. sean: i agree with congressional research office on immigration. i also believe that they found a sneaky way to fund abortions. they are denying it. do you agree with me on abortions and medicare cuts? >> i do. when you read the bill, it does not take long, because you can see you have the choice of the health commissioner. he will have czar-like powers and can do anything they want to do, including abortion coverage. sean: that is the point. i find it unbelievable. i want to ask you about the cost

factor. the president made promises about cost. how do you insure all of these people? how you tell the american people they can keep their insurance? i do not believe those things will be true. your interpretation? >> we have seen cash for clunkers. this administration misses by a factor of three, $3 billion. they did not get the numbers correct. the same thing can occur when you have an overwhelming of the health-care system. instead of a delay getting a car, people will be delayed getting help care. sean: i want to go back to this issue that came up, this sanctimony, the feigned outrage over your comment, this phony stability now that the democrats are all involved in here. we watched an entire summer where democrats attacked stay at home mothers and grandmothers and veterans at town halls. we know harry reid once referred to the president of the united states as a liar and a loser.

we know the democrats also booed db. i want to ask you about the double standard. -- booed george w. bush. i want to ask you about the double standard. >> the only solutions would be dramatically higher taxes, massive new borrowing, or sudden and severe cuts in social security benefits or other government programs. i recognize that 2018 and 200042 might seem a long way off, but those days are not distant. sean: harry reid, calling the president a liar and loser, was asked to apologize and he didn't. do you think that is a double standard? >> there really is, particularly with senator reid. he indicates it was in a book. i truly am humbled.

i respect the president. i respect the office of president. i believe that they do have a double standard. i am willing to discuss the issue of health care and really make a difference. sean: maybe the president will invite you to the white house for a beer. the left has targeted you and i have a link on my website for those that want to support you on hannity.com. we appreciate you being with us. let not your heart be troubled. when we come back, the great, great american panel. dad, here-look at this- your p.a.d. isn't just poor circulation in your legs causing you pain. ok-what is it? dad, it more than doubles your risk of a heart attack or stroke. i can't keep anything from you. you better read about plavix. if you have p.a.d., plavix can help protect you from a heart attack or stroke. plavix helps keep blood platelets

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(announcer) we understand. you need to save money. sean: it looks like charlie sheen is taking cues from van jones. the actor recently requested a meeting with president obama to urge him to open an investigation into the 9/11 attacks. he says they were an inside job and the commission report was "a blatant work of manipulation." lp

sean: tonight, he has been a democratic campaign consultant for over 30 years and is recognized as the coinventor of overnight polling. doug schoen is back.

she is a republican strategist, leslie sanchez. she is a professor of political science at vanderbilt university. political analyst carol swain is back with us. 44 more moderate democrats have gone on record in opposition of the health care bill. on the other side, you have 57 liberal members saying, no government option, we will not be a part of it. pelosi is saying, we have to have it. max baucus is saying it is not going to happen in the senate. steny hoyer is even imposing. how you get out of that? >> that was what the speech was. he was saying, there is a non- public public option. he is for it before he will be against it. this is part of the strategy. the public option is going to be k.o.'d relatively quickly.

he needed a trigger. sean: the president wants to -- >> political gain. >> fancy prep work. >> i thought the speech was very misleading. for one thing, there is always unintended consequences whenever there is legislation. there is no way the president can promise people that there will be able to keep their doctors, keep their insurance companies. no change, no cost of everything will get better. what really bothered me was what he said about abortion. if you look at the mainstream media, "the wall street journal ," factcheck.org, they say it is in there. he is saying it would not do that. sean: we got into that with the congressman, the issue of illegal immigrants, abortion, end of life counseling, medicare

cuts, the president was not exactly honest last night. >> he addressed some of those issues in a soft way, trying to appease some of the republicans. you are right. she is right on this issue. we are seeing the distrust of the legislative branch. sean: lowest approval rating in 24 years. >> it was 41%. even if you compare it to when nixon was impeached, he still had 40% having confidence in the executive branch. >> the larger issue for the blue dogs is that the president said that we could basically pay for a $900 billion program by cutting waste, fraud, and abused without any specifics, without any indication of where that would come from, or what the taxes are going to be. sean: will those blue dogs bail? >> they will go with the wind.

they will look at the polls. if they have the public support, there will vote for the president. >> we know they do not have the public support. sean: do you think the bill is dead? >> i think it is dead in the sense that they care about reelection. sean: how does that impact the president, considering he has put so much of his political capital on this? >> some democrats say something will pass. the problem is, it will be in the details. it will not be because of the republican side. there will be concerned and public sentiment about the details. we saw it in the stimulus package. he could stop the earmarks. he has not done it yet. sean: we will come back with our great american panel. first, a sneak peek at what is coming up on greta. greta: i have some much tonight. we will have a behind-the-scenes look at what is going on in the senate.

we have former speaker newt gingrich. we have karl rove. we have governor epitaxy -- governor pataki. we also have a former congressman that just got out of prison. it is unbelievable. he is never dull. sean: beam me up, scottie. we have more with our great american panel. boss: so word's gettin' out that geico can help people save in even more ways - on motorcycle insurance, rv, camper, boat insurance. nice work, everyone. exec: well, it's easy for him. he's a cute little lizard. gecko: ah, gecko, actually -

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sean: we continue with our great american panel. does cohen need to go? he says we should follow sharia law. >> holdren should have gone

first. he should not have been considered. sean: because of the compulsory abortions/sterilization. >> he is one of the co-authors of the book. there is no way he can swivel round and say, i am not responsible, that is not my view. it his name is on the book, he is responsible. >> as an author, you know that he is responsible. it does go back to the president. i think it is reflected in the fact that he maintained that position. i think that is very much part of the frustration that you see at these town hall meetings. sean: you are a fair-minded democrat. you know what? you really are. does it concern you how many radical people this president surrounds himself with? >> it has to confirm me -- it

has to concern me. i thought a lot of the rhetoric was moderate. i thought the introduction of senator mccain oppose a proposal was smart and good politics. let me answer your question. sean: it was my way or the highway last night. >> that rhetoric is not good. the vetting process broke down. these people are not reflective of mainstream, democratic del use. carol is right. sean: how out of touch can you be? >> he is a liberal democrat. >> these guys are outside the mainstream and they do not belong in the administration. sean: the broader question for me is -- look, everybody who has walked me over the years knows how i feel about barack obama and his associates. anyone can have a radical in their life, but when you find

out, you say goodbye. you are not together for 20 years. do you believe the president is radical? >> the evidence speaks for itself. it does not matter what i believe. sean: that is the point. the evidence speaks for itself. the difference is a guy that presented himself one way is clearly a far left ideologue that i suspected then tried to warn people he was. >> that is what the left is going to say. they will say, you never gave him a fair chance. he wanted by partisanship. he does not meet those goals. he has not on bipartisanship and he is not in changing washington. >> we need a real vetting process for these czars and we need to cut their number down to two or three, not 32. >> we need a constitutional amendment that says when someone is a nominee for major office, whether it is congress or

presidency, there is a background check. >> these people do not belong in the administration. >> these people in congress are making decisions. they do not go through background checks. sean: great panel. a close friend of barack obama for over 20 years, hill harper is here. .

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sean: and joining us now is an actor, activist, close friend of president obama, anç author ofa book,ç hill harper.

there are a lot of things i agree with, but i do not want to start there. you have no barack obama,çç f, what, over 20 years? >> yes. sean: and you are not exactly a fan of his. >> and i am not exactly sure why. i have known him,ç and he is and concerned patriots that i know, and he is a hard worker. sean: you have said all of these wonderful things aboutçç barak and about michelle, and one of the things you brought out is about the potential in each other, and i think that is a great story, and i think, seemingly caring parents, no one çis disagreeing withç that --t me ask you from my side, in terms of political differences, because you even refer to him as a complete truth teller. that is a phraseç you haveç ud to describe him. >> i have used that term and

have known him for over 20 years. sean: i do not believe he was honest about billç ayers2and about jeremiah wright, so i do not think he is a truth teller. i think he is politically expedient. >> sean, i have, like, no dog in the race in the senseç that i çhave known him for 20 years, d i am not in politics. i am not running for any office. my paycheck does not come from -- sean: ççwhen he said, "that it the man that i knew," did you believe that? >> yes, and he is a guy that has such a family man -- he works so hard to help people. sean: and you have not answered my question. >> and also, let me say -- ççhe quote unquote "hung out h

all of these people." >> no, he did not. sean: actually, iç likeç your book. the only thing i disagree with is when you talk about, for example, sex and about that in the black community,ç and you have talkedç about that you hae changed in your particular life, you would advise your daughter in the future if you have a daughter, when you talk about, for example,çç 34% of american children from african-american families -- that is 85%, are raised in two-person familiesç. this isç universal. if you believe we are all created by god, everybody can benefit from what you are saying. that is the message of character. character and finding that in your pa rtner. hey, step up to the plate.

ççget married. find a partner to build a life with. that is what this country is built on. >i talk about the relationsxiì(+ been ongoing in my book. sean: you can go ahead and look at the camera and ask her right now. >> you be my best man. $(lc@&c+ and you are going to stand there, right next to president obama? sean: i have asked president obama to come on the show. i am a nice guy. >> people haveç toç understane difference between entertainment and news. components, and we raise tough questions that others in the media ignored. i do not think he shouldçç hae appointed van jones, or these other people. nor do i believe this story about the reverend jeremiah wright horror that he should have hung out with bill ayers.

-- or that heçç should have hg out with bill ayers. he is a terrorist. he started his career in his house. it is bad judgment. >> if you run down the facts, and you look at it, and youç cn çfind people you can run into that have sat on boards that have had mistakes and problems, but you can do that with anybody. sean: that is a fair criticism. but he has a historyç of long relationships. çafter 40 years of being in jeremiah wright's church, if he had said, "you know what? i am out of feheçre,"ç i would have thought that was on this. >> if people look at who he is, look at his record, you will find that he is much more conservative about the way he goes about doing things. çit is true. çi am a fiscal conservative. sean: i think he portrays

himself as a moderate and that he associates with the radicals are long periods of times and ççnever distances himself from them. >> all idea of instilling fear in people about associations -- this whole idea of instilling fear. sean: i would have given himç e harper. that is a good thing. sean: i haveç to!wlobal you no. >> all of these bad this is the asians. -- i have to google yunyou now. >> all of theseç bad things i i think i have a little more knowledge about the man after 20 years than pundits who come on that have never talked to him. sean: why do you not tell them toç talk toç me? why is he