48-year-old dee dee blanchard has been found. >> you just can't forget the pink house with the wheelchair ramp. >> i see a stretcher coming out of the house and i just sobbed. >> we found deeceased and of a violent nature. still actively looking for gypsy. >> then we really panicked because oh, my gosh, somebody has kidnapped gypsy. >> tell me about the moment when you heard that something happened to dee dee and that gypsy was missing. >> i was shocked. couldn't understand it. >> why would somebody do this to this child? no wheelchair. no medication. they gonna just leave her for dead. >> reporter: authorities move quickly and hit pay dirt when they trace the ip address of those profane facebook posts to a small house 600 miles away in big bend, wisconsin, at the home of nick godejohn. gypsy's boyfriend. >> who is nick godejohn? >> he's functions at about 15 or 16-year-old. he is a kid that is similar to gypsy from the standpoint of not really having a normal social interaction history that most kids would've had up to that point. >> they go to the house. there's some standoff for a period of time. they have to bring the s.w.a.t. team there. >> reporter: when authorities

dee dee alleges to be wrong with her daughter. two case workers later did visit the blanchard home. but they found nothing out of the ordinary and closed the case. >> how was dee away with this for so long? >> most of the time, these mothers are pathologic liars. they're very difficult to detect. they're very manipulative. i think she probably did like most of these parents, these mothers. she moved around from doctor to doctor. they go to different hospitals and different institutions. >> reporter: that's exactly what she did after storming out of dr. flasterstein's office. she moved gypsy's care 3 hours away to kansas city. >> why did your mom do this? >> i think that she was constantly seeking attention for herself because she didn't feel loved so let's make this baby girl sick so it forever needs you. and that's what i think is from. >> you know a lot of people see this and just wonder why. why didn't you say anything. >> i know. i beat myself up about that all the time, but i have to understand my mind frame back then. i was always so afraid of her. afraid of the consequences after. next, gypsy in court, where the consequence could be life behind bars. >>

blanchard and her mother is replete with allenges and hardships. gypsy is in a wheelchair. >> they were known in the community. people knew gypsy and dee dee.nd sweet mother/daughter duo. >> reporter: in between hospital stays for multiple procedures including stomach surgeries, gypsy frequently jet sets across the country concert, gala the most magical place on earth, disney world. wish were taking her down to orlando all expenses paid and everything. >> royal mashed potatoes. mm-mm. >> reporter: in a horrible twist of fate shortly after dee dee and gypsy drop out of sight, the 48-year-old mother is found stabbed to death. we begin with breaking news tonight, police need your help in trying to find a missing mother and daughter. >> huge police presence the crime tape was up around the house. you just can't forget that pink house with the wheelchair ramp. >> reporter: it turns out that little pink house where the two lived was actually the nerve center from which the so-called doting mother perpetrated an elaborate scam preying on the sympathies of countless good samaritans. >> we have unearthed the appearance of a long financial fraud sche