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Did FBI Botch Van Der Sloot Case?

This is a RUSH transcript from "The O'Reilly Factor," June 8, 2010. This copy may not be in its final form and may be updated.

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BILL O'REILLY, HOST: In the "Factor" investigation segment tonight: We promised you yesterday we would look into Greta Van Susteren's question on how the FBI handled accused killer Van der Sloot.

Last month, the FBI office in Birmingham, Alabama, set up a meeting in Aruba between Van der Sloot and a person, a civilian, who told the killer he would pay him $250,000 for information about where Natalee Holloway's body was. Now, the meeting was videotaped by the feds, and Van der Sloot accepted $10,000 in cash during the meeting. Also, the thug apparently incriminated himself during the discussion. Then, Van der Sloot vanished, emerging in Peru on May 14, where he is now in jail, suspected of murdering another young girl.

With us, private investigator Bo Dietl, who was involved in the Van der Sloot captured on videotape. So you were like the go-between here, right? Somebody contacted you to set this meeting up?

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BO DIETL, FORMER NYPC DETECTIVE: Well, I was contacted that there was going to be a meeting. We were going to have our people from New York go down there and take over the meeting, and then the FBI got involved.

O'REILLY: All right, hold it, let me stop you. When you mean take over the meeting, you mean videotape it?

DIETL: Yes.

O'REILLY: And set up surveillance?

DIETL: Right, right.

O'REILLY: So initially this was going to be a private, because you're a private detective. The FBI gets wind of it. And they say to you what?

DIETL: No. The FBI was contacted to be involved with this. From the beginning they were contacted.

O'REILLY: So, along with you, they were contacted?

DIETL: Right, right. Then we were asked to step back. So what happened was the meeting was made with the go-between. What happened to Joran was text messaging someone that knows the family…

O'REILLY: Right.

DIETL: …saying he wants to get this $250,000. They set the meeting up in Aruba. The FBI says back out, so we back out. They set the meeting up in a special place with cameras and audio.

O'REILLY: Right.

DIETL: Joran van der Sloot goes in there. He makes incriminating statements of how Holloway died, exactly happened, where he buried her. Then on top of it, he counted — they count out $10,000 cash was exchanged in the room.

O'REILLY: Now this was Holloway's money, right?

DIETL: This was Holloway's money.

O'REILLY: The Holloway family gave the civilian go-between who's talking to Van der Sloot $10 grand…

DIETL: Yes.

O'REILLY: …to give seed money to Van der Sloot to keep him on the string.

DIETL: Right. What it was was $10,000 was counted out in cash.

O'REILLY: Right.

DIETL: $15,000 was wired. So you had wire fraud.

O'REILLY: So he had $25,000 in his pocket.

DIETL: Not in the pocket. Wire fraud to Netherlands, $15,000.

O'REILLY: Oh, he had $15,000 wired to an account in Netherlands.

DIETL: Right. So now you got him on wire fraud plus extortion. The extortion was there. They…

O'REILLY: So why didn't the FBI pop him right there in the room?

DIETL: Well, that question is not — I have no idea.

O'REILLY: So you don't know?

DIETL: If I set up the operation, I would have popped him right away. But — plus, you had the Aruban government was involved with the FBI. They knew about this whole operation.

O'REILLY: All right, well, stop, you — stop.

DIETL: Yes.

O'REILLY: Don't outrun your coverage here. So the Aruban government had to be informed about this whole sting that it was going down. They had to know it was taking place by law?

DIETL: Absolutely.

O'REILLY: So then you had the State Department involved. You had the FBI involved. You have the civilian, the Holloway family involved, and Van der Sloot. All right. So Van der Sloot gets the $10 grand. $15 goes to his account in the Netherlands.

DIETL: Right.

O'REILLY: They could have arrested him, the FBI then, with the permission of the Aruban government.

DIETL: Absolutely.

O'REILLY: They had to get that permission.

DIETL: Absolutely.

O'REILLY: And we don't know — and by the way the FBI has been cooperating with us but they haven't laid it out yet to us. But we have been talking to them. So we don't know whether the Aruban government stopped this. So after the meeting, OK, Van der Sloot disappears.

DIETL: Yes, he takes off. The meeting was on May 10. He disappears on the 13. But then, again, you have incriminating statements by him under the law of Aruba. The Aruba government could have held for 180 days just for investigation.

O'REILLY: They could have just — now twice they've arrested this guy in Aruba. But they could have arrested him again?

DIETL: On his new statements there, what actually occurred, and I don't want to go into the context of the statements, but he admits…

O'REILLY: Why don't you want to go into the context of the statements?

DIETL: Because this might be some evidence against him in the future. What he did admit was he was there when she hit her head and she died.

O'REILLY: OK. So the Aruban government could have immediately stepped in. You have to assume that the Arubans were with the FBI watching this sting.

DIETL: I would think so.

O'REILLY: You would have to assume that. So they could have arrested but the FBI could not have arrested him without the Aruban government's permission.

DIETL: I don't know what the set-up — the pre-set-up was. I'm sure the FBI contacted the government of Aruba that they were going to do this sting.

O'REILLY: Right. We know…

DIETL: Somebody could have locked him up.

O'REILLY: Right.

DIETL: Either the Arubans or the FBI.

O'REILLY: Somebody could — now the FBI can't arrest on a foreign — in a foreign country without permission. I — we have "Is It Legal?" and they're going to clarify that in a minute. All right. So all in all, they had him. But they let him go. And we don't exactly know who the villain was that let him go?

DIETL: We don't know who let him go, but we all know about he was let go and then he ended up killing somebody else.

O'REILLY: Yes, and a girl's dead.

DIETL: But the big thing here, Bill, is for the Interpol and FBI. Let's find for the last five years where this creep was.

O'REILLY: Right.

DIETL: He went all over Thailand. You're going to have other people dead. This is a homicidal maniac.

O'REILLY: I agree with you 100 percent.

DIETL: He killed Holloway and he killed this girl.

O'REILLY: This is a serial killer. I agree with you. All right, Bo. Thanks for coming in. We appreciate it.

DIETL: Thank you, Bill.

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