This is a rush transcript from "On the Record," June 3, 2010. This copy may not be in its final form and may be updated.

GRETA VAN SUSTEREN, FOX NEWS HOST: They caught him. Joran van der Sloot prime suspect in the murder of a 21-year-old Peruvian woman has been captured in Chile. You are looking at new video of van der Sloot being taking into custody.

Joining us by phone in Chile is Loretta van der Horst, reporter for "The Santiago Times." Loretta, first of all, is there new information on what is going to happen to Joran van der Sloot now that he's in custody in Chile?

LORETTA VAN DER HORST, "THE SANTIAGO TIMES": Yes. The latest news is he's being held until tomorrow morning, when he will be brought to the Peruvian border, he will be forced to cross the border and will probably be arrested by Peruvian authorities. That's the latest news that they've told us, a couple minutes ago.

VAN SUSTEREN: Do you know if he is talking, making any statements?

VAN DER HORST: He's not. He's just being held there. We have not had any statements from him, only from the police, and so we don't know what his stance is.

VAN SUSTEREN: How did he get captured?

VAN DER HORST: He got captured while traveling from a beach resort place to Santiago. He was in a cab and he was alone. He was captured by the local police at a checkpoint that was installed for him. He was brought to Santiago directly from there.

VAN SUSTEREN: Do you know if there is any clothes, any bloodstained clothes or anything at all in his possession?

VAN DER HORST: No. When he out of the car he was clean as a whistle. He didn't have anything on him. He was very calm and no sign of any material like that.

VAN SUSTEREN: And so he left Peru, and is there any information on what he has been doing since he left Peru?

VAN DER HORST: The only information is that he bused from the border and the taxi from there to go to Santiago. What he did in the meantime, no one knows.

VAN SUSTEREN: Has it been well-known that everyone was looking for him around Chile? Have posters been up and on television, radio, has there been an extensive manhunt for him?

VAN DER HORST: Certainly, yes, in Santiago as well. There's press all over the place and the Interpol station and the television is all over the newspapers heading with it. And yes there's certainly a big manhunt for him, was certainly a big manhunt.

VAN SUSTEREN: Loretta, thank you very much.

And Fox's Phil Keating is in Peru in front of the hotel where 21-year- old Stephany Flores was murdered. Phil, what is the latest there?

PHIL KEATING, FOX NEWS CORRESPONDENT: Greta, once Peruvian authorities have him back in Lima, the Peruvian general in charge of all criminal investigations in this country believes he will have on Joran van der Sloot something that Aruban investigators never were age to materialize for five years, and that is incriminating evidence at the hotel where Joran van der Sloot had been living since mid May.

That is where homicide investigators here in Lima returned yet again today to continue reviewing all surveillance tape taken within the hotel and outside that hotel.

And speaking of that hotel, it truly is not much of a hotel. It is really a basic bones hostel where Joran van der Sloot was actually spending $40 a night.


KEATING: This is a bustling and busy district of Lima, one of the ritzier part of town, and it includes the Atlantic City casino, which happens to be one of the last known spots of Joran van der Sloot before he fled south to Chile.

In fact, the entire reason Joran van der Sloot came to Peru in mid May was to come sit at these poker tables, put down his chips, and try his luck at winning the nearly $1 million cash prize. Instead this casino will go down as one of the last pieces of surveillance videotape on which Joran van der Sloot and Stephany Flores were seen hours before her murder.

Then police say around 5:00 a.m. Sunday, workers at the hostel where van der Sloot had been living two weeks, see him and the young woman enter his room. Four hours later only van der Sloot leaves. Wednesday, Flores' bloody body is finally discovered.


KEATING: And another piece of evidence that Peruvian authorities will have is the testimony by the two taxicab drivers hired by Joran van der Sloot to take him from Lima, Peru all the way south, 20 hours of a drive, to the Chilean border. Those two drivers describe him as being very nervous throughout the entire 20 hour drive and smoking cigarettes nonstop.

Now, today whether he faces murder charges for the Peruvian woman he has been accused of possibly killing? Well, that will be yet to be seen. But I can tell you this -- her father is a very prominent businessman. It is major news here in Lima, and the family, very tragically, buried her late this afternoon. Greta?

VAN SUSTEREN: Phil, thank you.

And now the bombshell breaking news, a disturbing twist in this case right here in the United States. Van der Sloot allegedly paid for his trip to South America by extorting money from Natalee Holloway's mother.

The U.S. attorney in Alabama says van der Sloot promised to tell Beth Holloway what really happened to her daughter in Aruba in exchange for a big cash payout. Van der Sloot tried to get $250,000 but ended up taking $15,000 as a down payment before fleeing to South America. Van der Sloot today has been charged with extortion.

And the story does get worse. As early as May 10th, the FBI knew they had a case against van der Sloot, but the FBI failed to arrest him or act until today. In other words, had they arrested van der Sloot on May 10th when they had the case against him, he would not have been able to travel to South America and there would be no murder.

We'll bring the very latest on this when we get it.

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