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Hannity

'Pimp', 'Prostitute' on Undercover ACORN Video

This is a rush transcript from "Hannity," September 11, 2009. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: And this is a Fox News Alert.

Two more ACORN officials have been fired as the shocking undercover investigation has now spread to that organization's Washington offices. And that's not all. Just breaking tonight the U.S. Census Bureau has severed all ties with the ACORN organization. Now, the director of the U.S. Census Bureau informed the president of ACORN earlier tonight that the partnership has been terminated.

Now last night, we showed you the unbelievable video from Baltimore, the group where ACORN workers were attempting to help a man and woman set up a prostitution ring involving underage girls from El Salvador. But the fallout has now reached the organization's Washington offices.

Let's now take a look.

(BEGIN VIDEO CLIP)

JAMES O'KEEFE, POSED AS PIMP IN ACORN VIDEO: My partner is a — she's in a unique line of business. And I don't know if you allow...

UNIDENTIFIED ACORN EMPLOYEE: ...if you need my assistance, what are you saying?

If you do not tell us, we cannot help you.

O'KEEFE: My girlfriend is a prostitute.

UNIDENTIFIED ACORN EMPLOYEE: OK.

O'KEEFE: And I do not know if...

UNIDENTIFIED ACORN EMPLOYEE: I kind of figured that.

UNIDENTIFIED ACORN EMPLOYEE: You don't put down "I'm a prostitute" or "I'm a lady of the night and this is where I'm getting my income." They do not want to know where your money is coming. All they want is accountability if you have a bank account that money's going into the bank.

O'KEEFE: So I could be the one, basically — and then she can perform tricks in the house.

(END VIDEO CLIP)

HANNITY: All right. It gets worse. Now, take a look as an official from ACORN actually suggests a name for the underage prostitution business.

(BEGIN VIDEO CLIP)

UNIDENTIFIED ACORN EMPLOYEE: She has to have a picture.

O'KEEFE: OK.

UNIDENTIFIED ACORN EMPLOYEE: So you could say your name of your company is "Hop In."

O'KEEFE: What is it "Hop In?"

UNIDENTIFIED ACORN EMPLOYEE: "Hop In." Now I don't care — I'm just giving you an example. "Hop In." You're consultants. Whatever you consult is your business. But that you have to show a profit and loss. You'd have to now because of the way the banking system is going. She has to.

Or the only other option you have is that you put it all your name and she is not on the loan.

(END VIDEO CLIP)

HANNITY: Unbelievable. Now, the advice continues from ACORN officials. Now, watch as ACORN advises the young woman who is pretending to be a prostitute how to cheat our tax system.

(BEGIN VIDEO CLIP)

UNIDENTIFIED ACORN EMPLOYEE: It's all about disclosure. And you do not have to sit back and tell people what it is that you do. I have my own company. I provide a service. I'm a marketer, I'm good citizen.

You make $4,000 or $5,000 consistently just to make sure $4,000 or $5,000 is going to that bank account, when a $5,000 income a month might be $60,000 a year. They don't mind if you lie — you are going to have to write it off.

(END VIDEO CLIP)

HANNITY: Now, ACORN has said to these tapes are quote, "slanted" to misinform to the public, but even when the filmmaker in these tapes gives the ACORN officials an opportunity to follow the law, he is pushed by the workers to evade the system even more. Look at this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED ACORN EMPLOYEE: She provides a service

HANNAH GILES, POSED AS PROSTITUTE IN ACORN VIDEO: That's what America is based on it's goods and services.

O'KEEFE: Yes, but it's not just any service. And this is why everyone else has denied as, because they do not want to break the law. And I do not want to be ineligible because I am breaking some law.

UNIDENTIFIED ACORN EMPLOYEE: OK.

UNIDENTIFIED ACORN EMPLOYEE: OK she can't be on the (INAUDIBLE).

UNIDENTIFIED ACORN EMPLOYEE: You're not following what I'm saying.

O'KEEFE: OK.

UNIDENTIFIED ACORN EMPLOYEE: You can have a business, she's not going to put it on there that she's doing prostitution.

O'KEEFE: She's not going to put on in there?

UNIDENTIFIED ACORN EMPLOYEE: Yes, she doesn't have to —

O'KEEFE: But that is the reason for us getting her the house.

UNIDENTIFIED ACORN EMPLOYEE: She can be a sole proprietor. And she is making money not saying that it's those kinds of services that she — whether she wants to sell goods, whether she is on the telephone, whether she's in marketing, she provides the service and marketing. Do you understand what I'm saying?

O'KEEFE: I understand.

(END VIDEO CLIP)

HANNITY: Unbelievable and tonight, I am joined by the independent activist filmmaker who went undercover into those ACORN offices, James O'Keefe. Now, his work is being feature on BigGovernment.com and also with us is Hannah Giles, who portrayed the prostitute in those videos and she is also with BigGovernment.com.

Video: Watch Sean's interview

Guys, welcome to the program. I've got to give you both a lot of credit. Where is "60 Minutes," where is "20/20," where is investigative journalism? Tell us how you came up with this idea and how it all got started.

O'KEEFE: Well, my friend Hannah, messaged me on Facebook and suggested — we're both activist, we've both done a lot of activism in the past and she suggest just — she was walking by in ACORN one day and she said, "What if I went in dressed as a prostitute?"

And she messaged me this and I said, "Well, I could be a pimp." And we took it from there. We created a situation as ridiculous as we possibly could. We came up with underage girls. And...

HANNITY: Yes and this — Hannah let me start with you — so it was really your idea to bring this to light. Why don't you walk us through — you walked by these offices, you come up with the idea. Was it hard to play a prostitute? But tell us how it all came together.

GILES: Well, Sean, it's amazing what girls think about when they are jogging. And that was just something that popped into my head. I had never seen an ACORN office, I really didn't even know that they existed and I jogged into the wrong part of town, saw some homeless people and street ladies and I put two and two together when I turned around to get back into a safe neighborhood.

And it's like — what if these people went into ACORN — a prostitute and what would come from that? No bills, no nothing — would they get a house? Could they start a business? So we put it to the test.

HANNITY: Well and obviously. And you both have come under fierce criticism for this.

I want you to walk us through because I'll tell you beyond the tax evasion part of this and the law breaking and the assistants and the fact — you went into specificity detail.

Let's start in Baltimore. She said, this is a business that services male clients that uses condoms. Walk us through just how specific you were that this was — and would import young teenage girls from El Salvador.

O'KEEFE: Basically we went in and we just started out the simplistics — I'm — my girlfriend is a prostitute. And then when they said that's OK, I took it to the next level and I said well, I know other prostitutes. I took it to the next level and they're trafficking from El Salvador.

I just took it — when they kept saying yes, I kept getting more ridiculous and more ridiculous and it just escalated from there.

HANNITY: And you don't think that any clue that this — so you think this is almost standard operating procedure, because they help people with their taxes.

O'KEEFE: Yes they had absolutely no hesitation whatsoever. At no point in my talking to them, did they stop me or did it occur to them that there is any morality involved. They just — this just kept on going...

HANNITY: Not at one point.

O'KEEFE: ...business as usual.

HANNITY: And Hannah because you are playing the prostitute here and look, whenever somebody gets into the trafficking of the young children, any human being with a soul, alarm bells are going to go off in their head and say, well, this is the business you're in?

But all they did was offer assistance. So as you're going through this in Baltimore. What's going through your mind at the time?

GILES: First of all — I was — I cannot believe it. How can a woman, who is most likely a mother, even maybe a grandmother, be OK, not even fazed with the fact that underage girls are going to be smuggled into the country to be used for a sex business.

HANNITY: Yes and as the answers were coming in, I mean did you find your mind spinning and saying to yourself, Hannah, that it's almost inconceivable that a human being could react this way?

Because that was my reaction, I'm sitting there and saying, anyone ever said that to me, I am calling the police that second...

GILES: Yes.

HANNITY: ...and I'm telling them to get out of my office. So...

GILES: Well, when we saw them not fazed by one thing, we were like, wow, I wonder what else we can get. And that's what James was saying, we pushed and we pushed and we got everything that we asked for...

HANNITY: Yes.

GILES: ...as a fake pimp and prostitute.

HANNITY: And what do you think of those people that are saying, oh, this has been a set up this is unfair. They did fire them, and the U.S. Census Bureau did cut their ties with them today. What's your reaction to that?

O'KEEFE: I think it's great. I think that this is like you said, standard operating procedure. The trap was preset. This is who these people are, we're exposing their soul, we're getting to the heart of who they actually are.

It's not just some manipulation, it's not entrapment. I'm not an agent of the government. I'm just going in as a concerned young citizen of this country; just showing people what goes on behind closed doors.

HANNITY: Yes, all right, we've got a lot to get to with both of you here. I want also to get in to what happened in the Washington office. And Hannah, stay right there we're going to get back to you.

But more importantly, one of the biggest aspects of this, ladies and gentlemen, is the money factor. And how much of your hard-earned — hard- earned tax dollars over the years has gone to ACORN? And the association of course, if they need a lawyer, I guess — well, they already have one — Barack Obama.

(COMMERCIAL BREAK)

HANNITY: Tonight, we have been showing you the brand new video of the investigation at ACORN's Washington offices. But let's look back at a similar investigation that occurred in the Baltimore offices of ACORN. We brought you some of the video last night. Here is some more.

(BEGIN VIDEO CLIP)

UNIDENTIFIED ACORN EMPLOYEE: The type of business or service you provide — we make sure there is a code for it.

O'KEEFE: A code for prostitution?

UNIDENTIFIED ACORN EMPLOYEE: Yes, I have to have a name and code number.

O'KEEFE: I don't know if there's going to be a code...

UNIDENTIFIED ACORN EMPLOYEE: I'm going to look in there. I am going to get my list.

O'KEEFE: Ok. And then you get the right tax code.

UNIDENTIFIED ACORN EMPLOYEE: Yes.

O'KEEFE: That is wonderful.

UNIDENTIFIED ACORN EMPLOYEE: Your business is a performing artist.

GILES: A performing artist.

UNIDENTIFIED ACORN EMPLOYEE: Which you are. OK, so you're not lying. A little play on words.

GILES: That's good for my ego.

UNIDENTIFIED ACORN EMPLOYEE: We're going to call you a performing artist. So stop saying prostitute.

O'KEEFE: Got it.

(END VIDEO CLIP)

HANNITY: All right. That same official for ACORN, who has since been fired by that organization, went even further to help the woman posing as a prostitute. Take a look.

(BEGIN VIDEO CLIP)

UNIDENTIFIED ACORN EMPLOYEE: You have to have certain clothing, OK. So we can write that off. You have to have certain grooming, OK. That can be written off. Do you provide — do you give like little gifts or some kind of incentive or something to your clients? We can write that...

GILES: Well, I mean...

O'KEEFE: Condoms. How many condoms did you buy last month?

UNIDENTIFIED ACORN EMPLOYEE: You don't travel.

O'KEEFE: They travel to her.

UNIDENTIFIED ACORN EMPLOYEE: So you don't go anywhere, right? OK. We can probably write off at least $7,000.

(END VIDEO CLIP)

HANNITY: I am joined by the filmmaker behind all of this video, James O'Keefe, and Hannah Giles, who portrayed the prostitute. By the way, did I call you a prostitute Hannah — I meant performing artist. I apologize for that, excuse me.

GILES: Yes.

HANNITY: Did that shock you as much as — by the way, you get to write off your hooker boots and your condoms, that's according to the ACORN official.

GILES: They are so kind.

HANNITY: When I heard that — that shocks the conscience. That shocks the conscience. But I have to tell you — it's underage thing. In both instances it comes up here. You were not shy about saying this is about the importation of young underage girls for the purpose of prostitution. There was no ambiguity.

O'KEEFE: It really comes out of the playbook from Saul Alinsky, who's a community organizer in — he wrote one of his chapters something about using their rules against them. This is really just the application of community organizer Saul Alinsky against community organizers.

HANNITY: You came out — this came out in two separate days. Are there any more tapes to come?

O'KEEFE: Maybe.

GILES: Maybe.

O'KEEFE: Maybe not.

HANNITY: Hannah, maybe.

GILES: Maybe.

HANNITY: All right. I can we will get there.

Here's my question. I'll show this to you Hannah first. We know Jon Boehner's office did a study. ACORN affiliates at 11 states $31 million in federal funds. And it goes — we can go through the entire list.

We know that ACORN was founded in 1970 and have received $53 million in federal funds that have been pumped into ACORN. Under the Obama administration ACORN stands to receive a whopping $8.5 billion in available stimulus funds.

Hannah you were in their offices. You met the people, you heard what they said, you see their seeming willingness to go along with an underage prostitution ring. When you hear those numbers — that is taxpayer money. What is your reaction to that?

GILES: First of all, what I thought about our money — would I like a prostitution ring with underage girls in my neighborhood? No. With my money, would I like to support that? No. So that kind of frustrated me.

And I think the corruption is deep-set. I think it goes beyond voter fraud and smuggling in underage girls for sex rings.

HANNITY: And I'll ask you the same question.

O'KEEFE: I think that what struck me was when I visited those two offices. They're just — part-time receptionist, there was and one or two employees there that run the facility. You know, half-way houses that — it looks like you could just pick up shop and move elsewhere.

Where is all the millions of — billions of — where is the money going? These places are almost so run-down. I don't understand where the money is going.

HANNITY: It is a great question, and one I think we need a full-fledged Congressional investigation into. And I wonder if that will come now as a result of your tapes.

O'KEEFE: Hopefully.

GILES: I hope so.

HANNITY: Has anybody contacted either one of you?

O'KEEFE: No politician has contacted me, but I have seen on the news various people in Congress coming out, saying they were interested in investigating.

HANNITY: Hannah you said to me earlier that you had been walking by this office and that you came up with this idea and you called your friend and said, "You want to be the pimp? I'll be the prostitute here."

What did you know about ACORN that made you think that there might something untoward going on here?

GILES: All I really knew about ACORN at the time was the voter fraud during the election — registering Mickey Mouse and different people like gravesites.

But I thought of ACORN housing, that was specific to that office. The one in Washington D.C. is a headquarters of ACORN. And it just kind of — it just spurred my curiosity. I came up with the idea and then I did some research on the housing to see if it would be even be possible for us to get away with this.

HANNITY: Let me ask you this. In that experience — and I ask both of you your personal experience — what was the worst thing you think you learned here?

GILES: That they were willing to aid and abet corrupt people who wanted to harm children.

O'KEEFE: They are soulless people. They don't believe in anything. They just believe in change for its own sake.

HANNITY: All right guys. I have to tell you, this is a great service. Whatever either one of you come under, I have to let you know there are a lot of Americans out here that really appreciate your willingness.

You're 25 years old? Hannah, you are 20?

GILES: Yes, sir.

HANNITY: Amazing to have a generation coming up standing for the truth and doing great investigative journalism.

I've often said journalism is dead. You guys are bringing it back to life. Good job. Thank you both.

GILES: Thank you Sean.

— Watch "Hannity" weeknights at 9 p.m. ET!

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