• With: Jillian Melchior, The National Review

    This is a rush transcript from "On the Record," February 26, 2014. This copy may not be in its final form and may be updated.

    GRETA VAN SUSTEREN, FOX NEWS HOST: If you thought it was bad that convicted felons are working as ObamaCare navigators, brace yourself. Stunning new information that a convicted terrorist, convicted in the bombing death of two, has been working as a navigator. That's right. How does that happen?

    The "National Review's" Jillian Kay Melchior is breaking that story. She joins us.

    Nice to see you back, Jillian. Who is this navigator and what was she convicted of?

    JILLIAN KAY MELCHIOR, FRANKLIN SENIOR FELLOW, "NATIONAL REVIEW": Well, she was a member of the Popular Front for the Liberation of Palestine. It's essentially a terrorist group founded in the wake of the Six Day War. She immigrated to Chicago. But before that, Israel had convicted her for her role in a bombing. What basically happened was that this particular terrorist group sneaked a bomb in a box of candy into a grocery store in 1969. It blew up. It killed two young men who were university students, who were just picking up groceries for a hiking trip. She was convicted and spent 10 years in prison, was released as part of a prisoner release. She immigrated to the U.S. and became an Obamacare navigator.

    VAN SUSTEREN: How did she -- there was no problem with her getting into the United States? I understand she has actually become American citizen.

    MELCHIOR: That's right. She is being indicted right now. They say she lied on her application. And she seems to lose her citizenship. She may spend 10 years in a U.S. prison before that. But I think it's a significant national security risk and it's also a significant risk to anybody that's signing up for ObamaCare in Illinois. It's incomprehensible that someone with in record would be there.

    VAN SUSTEREN: Isn't Illinois one of the states that does background checks on navigators?

    MELCHIOR: They sure do. I have been able to pull the FBI background check on her. To their credit it doesn't mention this prior conviction. It's more of a national security scare. She was able to get in the country by lying to begin with.

    VAN SUSTEREN: All right. She is not currently a navigator, right? When they did find out? Did they move swiftly?

    MELCHIOR: That's right. In the wake of her indictment for lying on her application papers, the Department of Insurance found out about it and revoked her license. That was buried in the disciplinary report.

    VAN SUSTEREN: Aside that revoking the license, some sort of quiet procedure that's done that there wasn't sort of a public announcement that this had happened?

    MELCHIOR: It was public record, but they definitely didn't make a fanfare of it.

    VAN SUSTEREN: All right. Now, is there any reason to believe that the rest of the navigators are lickety-split clean in Illinois or other states?

    MELCHIOR: It's tough to say. I found several felons who were convicted in the U.S. with histories of financial crimes. I think, overall, this is a program with not enough oversight. Federal government doesn't require background checks. Illinois, clearly, even a background check doesn't cut it always.

    VAN SUSTEREN: Jillian, as always, thank you. Great work.

    MELCHIOR: Thank you.