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Kelly File

Iran releases troubling images of captive US sailors; Did DNC chair make sexist remarks about Haley?

This is a rush transcript from "The Kelly File," January 13, 2016. This copy may not be in its final form and may be updated.

MEGYN KELLY, HOST: Breaking tonight, 10 American sailors are now getting debriefed and getting medical exams after spending the better part of 24 hours in Iranian custody.

At this hour there are serious questions about how this happened in the first place. As Iran attempts to humiliate the United States by releasing a series of propaganda videos of our soldiers.

Welcome to "The Kelly File," everyone, I'm Megyn Kelly. The news of the sailors' release came early this morning. And while the Obama administration was quick to thank the Islamic Republican for giving our sailors back to us, Iran in turn decided to release its series of troubling images from the sailors' time in captivity. Look at this.

First still images showing the nine men and one woman sitting on the floor in a sparse room. Iran also making it a point to show the sailors eating and drinking. But did you notice the one woman in the room? Our female sailor in what appears to be a make-shift hijab, or head scarf. Sources tell Fox News, she may have been forced to wear it. Hours later, the images from Iran got much worse. This time, it was video. Iranian state television deciding to show off our sailors at gunpoint on their American vessel. On their knees. Hands behind their heads.

Images eerily reminiscent of a hostage or even an execution scene we've seen at times. Tonight, images like these are splashed across newspapers in Iran. The video also shows Iranian forces rifling through the sailors' belongings and their weapons. Keep in mind, we were told, we had an engine problem on one of these boats. And get this, the video was actually released shortly before Secretary of State John Kerry praised Iran's actions and thanked them, thanked them, giving the Obama Administration the foreign policy a pat on the back. Watch.

(BEGIN VIDEO CLIP)

JOHN KERRY, SECRETARY OF STATE: I also want to thank the Iranian authorities for their cooperation and quick response. And I think we can all imagine how a similar situation might have played out three or four years ago.

(END VIDEO CLIP)

KELLY: In moments, we will be joined by the former army vice-chief-of- staff, General Jack Keane, who has got some unbelievable thoughts on this.

But we begin with former Speaker of the House, Newt Gingrich, author of the new book, "Duplicity." Great to see you, Mr. Speaker. Thank you for being back with us tonight.

NEWT GINGRICH, FORMER SPEAKER OF THE HOUSE: It's great to be with you.

KELLY: This is an incredible sight.

GINGRICH: Well, look, the Iranian dictatorship hates the United States.  While Kerry and Obama were working on an agreement, Khomeini (ph), the leader of the government led crowds publicly chanting "Death to America", as he said, to remind people that nothing had changed. That the agreement was meaningless in the long run. You have to assume that this is a bad dictatorship that hates us. And that every chance they get, I'm amaze at the Obama administration's inability to realize that these guys shoved them and shoved them and shoved them. They've had two ballistic missile tests in clear violation of the U.N. Security Council Resolutions. It seems like there is nothing the Iranians can did that John Kerry and Barack Obama don't find some method of excusing.

KELLY: What is our female soldier doing? Our sailor doing with the head scarf on?

GINGRICH: She is being imposed upon by a dictatorship that is deliberately humiliating her and deliberately imposing their value system. All of these films are designed to say to the world, United States is a paper tiger.  Iran is the rising new power and you had better be with Iran because we're going to be there when it matters and the Americans aren't going to be there because they can't even protect their own sailors.

KELLY: You think it is a direct provocation?

GINGRICH: No. I think that they wake up every morning and if something happens that they can get away with, they do it. I don't think they went out of their way to do this, but I think they can't restraint themselves.  They hate us. The people really underestimate this. The political leadership, not the average Iranian but the political leadership and the Revolutionary Guard hates the United States. They genuinely believe as their founder said, Khomeini (ph) that we are the great Satan.

KELLY: Uh-huh.

GINGRICH: They mean that. And any chance they get to hurt the great Satan, they're going to do so.

KELLY: Newt Gingrich, great to see you. Thank you.

GINGRICH: Great to see you.

KELLY: Well, as we mentioned, video has been released of one of the sailors apologizing to the Iranians. Watch this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It was a mistake, that was our fault, and we apologize for our mistake. The Iranian behavior was fantastic while we were here.  We thank you very much for your hospitality and your assistance.

UNIDENTIFIED MALE: Do you have special problem?

UNIDENTIFIED MALE: We had no problem, sir.

(END VIDEO CLIP)

KELLY: General Jack Keane is chairman of the Institute for the Study of War. Former army vice-chief-of-staff and a FOX News military analyst.

General, good to see you.

GEN. JACK KEANE (RET.), INSTITUTE FOR THE STUDY OF WAR CHAIRMAN: It's good to see you, Megyn.

KELLY: It's a shocking thing to see. Shocking.

KEANE: Yes, it is, very much so. I mean, we don't know what the coercion or intimidation took place, you know, prior to him making that statement.  The youngster suddenly made a huge mistake in making that statement. These are people who pointed guns at his crew. Forced the evacuation of his crew off their boats. Surrendering their weapons. Locked them up in the facility and denied them freedom. And we have no apologies to make for anything given that kind of horrific behavior by the Iranians. What is the mistake that they may have sailed into international waters?

I mean, you sail into international waters, you go out there and you find out, hey, do you need any help? And if you don't need any help, then send the people on their way and let them know where they are at. That's not what these guys did. That's outrageous. I'm not even convinced that the Iranians are just exploiting a difficult situation. I'm not sure why the radio is not working and why the GPS is not working. Did they jam it? Did they try to provoke the situation themselves? I'm not even sure they were in Iranian waters.

They could have been in international waters. And making the same claim that they are in Iranian waters so that they can provoke the situation, create the humiliation and embarrassment that you cited in the introduction which has been a pattern of behavior ever since the nuclear deal was agreed to. One incident after another, they have been concocting these provocations.

KELLY: Walk us through the irregularities, according to what should have been done. I mean, the Iranians boarded an American vessel. They had our sailors on their knees with their hands behind their heads. They later had them in captivity it appeared with the woman with the head scarf. And then they get one of our sailors on camera apologizing, which appears to violate the code of conduct for members of the U.S. Armed Forces.

KEANE: Well, absolutely. Well, the Iranians violated international law by confiscating boats and the members on those boats and detaining them and locking them up and taking their weapons. Secondly, I don't know what the navy's rules of engagement are in the Persian Gulf. But from my perspective, you don't surrender your boat. You don't surrender your weapons. And I don't think this incident should have happened in the pattern that it did. But yet I can't blame the youngsters on those boats because I don't know the rules of engagement that they're operating under.

KELLY: Right.

KEANE: The investigation will determine all of that.

KELLY: Or the threat.

KEANE: Get into that.

KELLY: And that's the thing. This guy is being threatened, if there is some, you know, junior sailor who has got a gun to his head, and you know, you better say this or else. At the same time, we got a secretary out there, thanking them, General. He's thanking them.

KEANE: The conciliatory tone that Secretary Kerry expressed is absolutely ludicrous, knowing full well that sailors were detained against their will and under gunpoint. He may not have seen the video but certainly he knows they were detained against their will. Secondly, to associate this behavior of the Iranians, in releasing them and not making them hostages and associate that with the nuclear deal, is absolutely horrific. And it just doesn't even deal with what the harsh reality that is taking place.  Since the nuclear deal, The Washington Post journalist has been tried, convicted, and sentenced.

Two other Iranian Americans are now hostages. Two missile launches tested.  Medium-range missiles. Capable of carrying nuclear weapons. No sanctions against those. Firing rockets in the vicinity of U.S. and French ships in the gulf. All of these are staged provocations. For what reason, Megyn?  Here's the reason. They are demonstrating to the Arabs in the region, the nuclear deal is done. The gloves are off. We're back in, as the number one regional power, seeking domination in the region and we're telling the Arabs that the United States does not have your back. We've humiliate them, embarrassed them time and time again and they are no longer the ally that they are used to be. This is the message. This is the message.

KELLY: That's the perspective people need to hear that contrasts against what we're being told by the administration, which is, it is thanks to our great dealings over that Iranian nuclear deal that we pick up the phone and get those sailors back. So, good on us because we got them right back.  All we had to do was apologize and give them a public thank you and they used it as propaganda video. But they're back. And that's where it stands tonight. There's going to be much more as this investigation unfolds.

General, great to get your perspective. Thank you, sir.

KEANE: Good talking to you, Megyn.

KELLY: Also breaking tonight, an ugly new fight erupting between two of the Republican frontrunners for president. Just 24 hours before the next debate. We will show you what Donald Trump just said about Ted Cruz in just the last couple of hours.

As Dana Perino and Chris Stirewalt weigh in on what this means for the debate. We had to put them in separate rooms. It's a long story. I'll explain when they come back.  

Plus, new fallout tonight from our interview with the head of the Democratic National Committee after she launched what critics are calling a sexist attack on Governor Nikki Haley.

And then thousands last night attended the world premiere of the new Benghazi movie, including the families of those who died in the attack.  Those families join me tonight to share a powerful story about what they saw on the big screen and Hillary Clinton's latest claims that these families are not being honest.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It was sad. It was un-American. It was tough to watch that many people who were basically just left out there to die.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

KELLY: Breaking tonight with 24 hours to go until the next Republican debate. We are seeing a verbal beat down between two of the GOP frontrunners.

Senator Ted Cruz appearing to take the glove off. Sort of. Like maybe one glove is off. After months of avoiding a direct confrontation with Donald Trump. Yesterday Mr. Cruz went after Mr. Trump at least three separate times.

(BEGIN VIDEO CLIP)

SEN. TED CRUZ, R-TEXAS, PRESIDENTIAL CANDIDATE: Why are Hillary's strongest supporters backing Donald Trump? You know, the past couple of elections, we saw the Democrats thrilled that they got the nominee they wanted to run against in the general election.

Does a commander-in-chief understand who our enemy is? Radical Islamic terrorism understand how to defeat it. Not just based on what is said on Sunday's shows on TV.

Donald comes from New York and embodies New York values. And listen, the Donald seems to be a little bit rattled.

(END VIDEO CLIP)

KELLY: And for his part, just hours ago tonight, Trump doubled down on his suggestion that Cruz may not be eligible to become president because he was born in Canada.   

(BEGIN VIDEO CLIP)

DONALD TRUMP, R-PRESIDENTIAL CANDIDATE: He has got a problem that the Democrats will be bringing suit saying that he wasn't born in this country and therefore he is not eligible, essentially, to run for president.  There's going to be a suit brought.

(END VIDEO CLIP)

KELLY: Joining me now, Dana Perino, co-host of "The Five" and a former Bush White House press secretary. And Chris Stirewalt who is Fox News digital politics editor. Good to see you both.

We put Chris in a cavern. He is in some cavern. We can't disclose the -- location.

CHRIS STIREWALT, FOX NEWS DIGITAL POLITICS EDITOR: They can't. No, they can't build a facility to hold me.

(LAUGHTER)

KELLY: All right. Let's talk about the latest. I don't know. Let me start with you, one glove off, right? It's not a full-fledged like Ronda Rousey situation. But it's like a little like, let me see how this goes.

STIREWALT: Well, I want to tell you, he better have a tridem and burning spear, axe, whatever he can do when he gets to this building here in North Charleston, South Carolina. The North Charleston coliseum. Because when he stands on stage next to Donald Trump --

KELLY: Tomorrow night.

STIREWALT: Donald Trump is -- tomorrow night Donald Trump is going to be beating him down and beating him down and Cruz actually needs that. He needs that moment and he needs to be able to endure it. And it's made much more complicated just moments ago, New York Times story, just out about Ted Cruz not disclosing correctly a loan that he and his wife took out through his wife's employer, Goldman Sachs, not exactly the most popular firm in the blue collar electorate and you know Donald Trump, that is one article in the "New York Times" he's going to be loving.

KELLY: Back in 2012 when Cruz is running for Senate, he later disclosed it in a different forum and he didn't disclosed it as part of his campaign final disclosure which is required.

Dana, the thing about Trump is he -- it is almost like a tale of two Trumps. He is much more subdued on the debate stages. And all along even with these attacks on Cruz's, it is not me, it is the Democrats. So, Cruz is going to be in an interesting position. Because, I don't know if it is going to be a full-fledged assault by Trump.

DANA PERINO, CO-HOST, "THE FIVE": Because Donald Trump is just looking out for Cruz.

KELLY: Right.

PERINO: And he might be right about the fact that the Democrats, they felt like they were in a box and Ted Cruz were the nominee, where the Democrats filed suit about the Canadian-born presidential candidate.

KELLY: Uh-hm.

PERINO: Yes. They might. Although I think most scholars are saying that he would be a citizen based on the legal proceedings. On the fact that the New York Times put out this story saying that Ted Cruz had not filed his disclosure properly. Yes, I think that Donald Trump might try to use that against him. But remember, the common enemy is the mainstream media and the New York Times. So, you might actually want to see them try to get along on stage because that has worked for both of them. A poll this week showed that majority, vast majority, like 78 percent of Republicans like Ted Cruz's approach of not attacking Donald Trump up to now.

KELLY: Uh-hm. But what is happening Chris, the reality is, Trump is attacking Cruz a lot on this issue.

STIREWALT: Of course.

KELLY: And it is helping him. Cruz had 10-point lead over him in Iowa last month. Now it's basically statistically tied in Iowa.

STIREWALT: Well, we'll see. As we would say in regular America, we're getting ready to find out. The way it's going to work on that stage, I don't know. And I don't know whether Trump will again cuddle fish, whether he will go back and say, I was just raising questions. I was just asking questions. Or whether he is ready to engage but I think Dana is a hundred percent right. I think you're a hundred percent right. Cruz has to have this moment. Because what Trump will do otherwise, is slowly, slowly smother him. He will slowly, slowly smother him over time with so much of his deep concern that he feels for his good friend, Ted. He will just smother him to death over the next several weeks. And it will take Ted Cruz out of the running.

KELLY: I'm having images, Dana, because Cruz has said that he holds Carson and he holds Trump close and he just gives him a warm affectionate kiss.  So, the one is like smothering the one. The other one is kissing. Now, it is getting weird.

STIREWALT: Getting weird up there.

PERINO: Well, and tomorrow night, there are several other candidates besides Trump and Cruz on the stage.

KELLY: Oh that's right.

PERINO: Yes. And yes, they need to have a moment and they need to be able to announce, like to the world, who is now really paying attention for the first time. We've been in pregame season up to now. Tomorrow night is the really the beginning. Remember in 2012, 46 percent of Republican voters did not make up their opinions on who they were going to vote for until after the last debate in Iowa.

KELLY: Right.

PERINO: No pressure.

KELLY: Yes.

STIREWALT: Ding ding ding ding ding ding.  

KELLY: We might make a little news. We will have to stay tune to find out. Good to see you both.

STIREWALT: You bet.

KELLY: And don't forget, the first GOP debate of 2016 is tomorrow night over on Fox Business Network. Maria Bartiromo, Neil Cavuto will be moderating that. It starts at 9:00 p.m. Eastern on our sister network.  And then tune it over here, special edition of "The Kelly File" live at 11:00 p.m. with complete debate analysis and reaction.

Also tonight, after Elvin Swisher lied -- he looks so nice. Lied about his combat experience and wore a bunch of metals that he did not earn, a federal appeals court decided, no problem, Elvin. Was that the right call?  Our legal panel is here.

Plus, the head of the DNC this week attacked Nikki Haley saying, the Governor only got to respond to President Obama because the GOP has a diversity problem.

The new fallout from that when Dana Loesch and Robert Zimmerman join us next.

(BEGIN VIDEO CLIP)

KELLY: As a woman, don't you think it is diminishing to say that they had to put her up there for diversity purposes?

REP. DEBBIE WASSERMAN SCHULTZ, D-FLA., DEMOCRATIC NATIONAL COMMITTEE CHAIR: Even the Republicans themselves have acknowledge that they had a diversity problem.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

KELLY: Developing tonight, did Debbie Wasserman Schultz make a sexist remark about Governor Nikki Haley after Haley's State of the Union response last night?

(BEGIN VIDEO CLIP)

KELLY: As a woman, don't you think it is diminishing to say they had to put her up there for diversity purposes?

SCHULTZ: Even the Republicans themselves have acknowledged that they have a diversity problems? Even though --

KELLY: Why couldn't she be picked because she is smart, she's savvy, she presents well, she's articulate and she's a great spokesman for the Republicans?

SCHULTZ: Because she has actually done damage to her state. Has been actually a governor who has been extremely unpopular.

KELLY: What are you going to say when people say they only made Hillary the nominee, if she becomes the nominee, because she is a woman? You're going to say that's sexist and watch it.

SCHULTZ: Well, of the people in the Republican Party, if you take a look at accomplishments in popularity, Nikki Haley is not the person that would leap to mind at the top of that list. She isn't popular in her state.

KELLY: I know you better than this. She knows you're on shaky ground.

(END VIDEO CLIP)

KELLY: Joining me now, Dana Loesch, the host of Dana on the Blaze TV. And Robert Zimmerman who is a Democratic National Committee member from New York.

Good to see you both.

ROBERT ZIMMERMAN, DEMOCRATIC STRATEGIST: Good to be with you.

KELLY: Robert, really, was that the line of attack for Debbie to take, for Miss Schultz to take?

ZIMMERMAN: Look, I first have to say myself as a Democratic National Committee man, I have enormous respect for Nikki Haley and the way she took on the hate mongering and the extremist rhetoric of the leading Republican presidential candidates and the way she took on the Republican Party that said, they own part of the complete collapse of confidence in government.  And they're partially responsible for government being broken. I think she had a very important speech. But what Debbie Wasserman Schultz was trying to point out is that the Republican Party by their own admission as a diversity problem and they're not going to address it just by putting Nikki Haley as a spokesperson. They're going to address it when they finally put policies in place that don't discriminate against the gay and lesbian community --

(CROSSTALK)

KELLY: She suggested that was the only reason she was chosen. That that was the only she was chosen, Dana, is because obviously she's not good enough to be up there on her own. It has to be her lady parts and her Indian ancestry.

DANA LOESCH, HOST, "DANA" ON THE BLAZE TV: Apparently. And I guess Robert forgets too who is actually been in-charge over this past few years and who have the majority in the beginning of the Obama's presidency. But to that point though, Megyn, Debbie Wasserman Schultz is completely aware I'm sure of what the Democrat, primary line-up looks like compared to the Republican primary line-up. Right? I mean, if we're going to have a discussion of diversity, perhaps we can start with the two elderly white individuals who are running in the Democrat primary. And then take a look at all of the young and very diverse both sexist, you have different ethnicities, you have different ancestry. It is quite different. It speaks for itself.

KELLY: Robert?

ZIMMERMAN: But Dana, but Dana, let's remember, this very diverse field of Republican candidates are running like they are in the 1950s. They are advocating legislation that would discriminate --

KELLY: But that's a different point.

(TALKING OVER EACH OTHER)

KELLY: We're talking about gender and we're talking about racial and ethnic identity.

ZIMMERMAN: No, we are talking about diversity.

KELLY: And she had to hit her, you know very well that if a Republican did that, Debbie Wasserman Schultz to a democrat, would be out there calling them out on it, Robert.

ZIMMERMAN: The issue that Debbie Wasserman Schultz was pointing out is the issue of diversity. And that's defined by the policies you advocate, Megyn. And as long as the Republicans keep advocating policies against pay equity for women, and keep advocating to the -- undocumented workers--

LOESCH: That is a myth. That is a lie.

KELLY: Go ahead, Dana.

LOESCH: That is an absolute myth. The whole pay in equality thing. That goes down to women's choices. Don't sit here and say that you are empowering women by giving them the choice to go out and do whatever they want as a profession and then when they don't choice according to your patriarchal will, Robert, then penalize them for making less on the dollar, that's fact.

ZIMMERMAN: How you want to spin it, the Republican Party --

LOESCH: No. That's the truth.

ZIMMERMAN: How you want to spin it, the Republican Party is still defined by the gender that really goes back to the 1950s and their attitude towards people of color, their attitude towards Hispanics, and undocumented workers. Their attitudes --

(TALKING OVER EACH OTHER)

KELLY: They have two Cuban-Americans running for office. How many do the Democrats have, Robert?

ZIMMERMAN: Does it really matter if those Cuban-Americans wanted to deport undocumented workers --

LOESCH: Oh, wait --

KELLY: So, it's OK -- like they have diversity but they don't get credit because they don't act diverse enough?

ZIMMERMAN: They don't -- no.

LOESCH: Robert, if you --

ZIMMERMAN: They don't advocate policy to enhance diversity. It's just about themselves.

KELLY: In your view. In your view.

LOESCH: Yes.

ZIMMERMAN: That's exactly right.

KELLY: Go ahead, Dana.

LOESCH: Yes. Robert, I have to say that there's not a single Republican candidate who win, their spouse was in office. And actually led a raid and held a rifle in a child's face as he was in his office, if he want to sit here and talk about deportation, we can have that conversation.

KELLY: No, we can't, because we're out of time but it's great to be see you both.

(LAUGHTER)

Dana wins with the last remark I guess because we're out of time. Great to see you both.

ZIMMERMAN: Good to be with you.

LOESCH: Thank you, Megyn.

KELLY: Coming up, growing outrage after a federal court rule that any American can wear war medals whether it is earned or not, and feel free to live out in the end, earn money on it. It's great. That wasn't exactly what they said. But in essence.

And then thousands last night attended the world premiere of the new Benghazi movie "13 Hours" including the families of those who died in the attack. They will join me next to share their story about what they saw on the big screen. And about Secretary Hillary Clinton's claims that these folks right here, families of the fallen, are not being honest about what she told them.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It was an ambush. Looking for assistance from the state or, you know, the government, and nobody is pretty much trying to listen. It's pretty much over the truth.

UNIDENTIFIED MALE: You suspect it is friendly?

UNIDENTIFIED MALE: I am not aware.  

(END VIDEO CLIP)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It's probably the best war film I've seen. Straight up there with American Sniper, you know, and Lone Survivor, shows that they were left really behind. So I think you're going to see something come down the pike about, you know, who was in charge, secretary of state at the time.

UNIDENTIFIED FEMALE: So --

UNIDENTIFIED MALE: Now, she's to blame for this whole thing, period.

UNIDENTIFIED MALE: Just the way that the movie portrays that they were just left out there. I don't have the words. It was sad. It was un-American.

UNIDENTIFIED MALE: I've had friends and family that have lost their lives over there, and service. And it really hits home. It's a big standpoint. And you know, I could say I can't really speak on what happened, because you know only God and Hillary knows.

(END VIDEO CLIP)

KELLY: Well, that is just some of the reaction from the thousands who watched last night's world premiere of Michael Bay's upcoming film, 13 Hours: The Secret Soldiers of Benghazi. And as you just heard, the movie not only packs a powerful, emotional punch, it left some folks asking new questions about the terror attack in Libya and how Secretary Clinton handled it.

Some of the families of those who died in the attack say Mrs. Clinton told them, when the bodies were returned home, over the caskets, that a protest in Benghazi and video were to blame. We now know that was not the case.

In a moment, we will hear directly from those families and we will ask them about Secretary Clinton's suggestion that they are not telling the truth about what happens at Dover Air Force Base. But first, chief White House correspondent Ed Henry gets us up-to-date on controversy. Ed?

ED HENRY, CHIEF WHITE HOUSE CORRESPONDENT: Good evening, Megyn. This really cuts right to the heart of the question of why Hillary Clinton is struggling on whether she is honest and trustworthy with voters. Just within days of the Benghazi terror attack, she and the president, as you know, went to Andrews Air Force Base to meet with the families of the four victims. And some family members have publicly said, that on that grim (ph) day, Hillary Clinton told them the attacks were sparked by a video. Charles Woods, whose son Ty was killed in Benghazi said, he actually wrote down on a notebook, verbatim, as she spoke, he quote her saying, "We are going to have the filmmaker arrested who was responsible for the death of your son." First of all, that's different from what Clinton told her daughter, Chelsea, and at least one diplomat. This looks always that look like an al- Qaeda terror attack. That's different from what she told families. It also became a flash point. There's different in her story in last October's Benghazi hearing in the House, when she was challenged on these conflicting accounts. Listen.

(BEGIN VIDEO CLIP)

REP. JIM JORDAN, R-OHIO: You had a conversation with the Egyptian prime minister. You told him this, "We know the attack in Libya had nothing to do with the film. It was the planned attack, not a protest."

HILLARY CLINTON, D-PRESIDENTIAL CANDIDATE: Well, congressman, there was a lot of conflicting information that we were trying to make sense of.

(END VIDEO CLIP)

HENRY: And despite Charles Woods saying, he wrote down verbatim what Clinton said on two occasions recently. She has now suggesting the families are not remembering this correctly. She first said that on ABC News with George Stephanopoulos. Listen to this exchange.

(BEGIN VIDEO CLIP)

GEORGE STEPHANOPOULOS, ABC NEWS CHIEF ANCHOR: Did you tell them it was not the film? And what's your response?

CLINTON: No. I said very clearly, there had been a terrorist group that had taken responsibility on Facebook.

This was a fast-moving series of events in the fog of war.

(END VIDEO CLIP)

HENRY: Then she did an editorial board meeting with the Daily Sun, that's a newspaper in rural New Hampshire. She said that the families' grief may have clouded their memories. Saying she can't recall the details when people were sobbing in front of her at Andrews. She was pressed by a columnist for that newspaper who said, look, somebody is lying here, who is it? Clinton replied, "Not me. That's all I can tell you." Megyn?

KELLY: Ed, thank you. As Ed mentioned, Tyrone Woods, father isn't the only relative to claim Hillary Clinton blamed that video for their son's death. And while we hear -- we will hear from Woods, his son and the mother of another victim in a moment. The fact that three different families have came forward with the very same story, does not exactly support Mrs. Clinton's claim that all three are getting their facts wrong.

(BEGIN VIDEO CLIP)

KATE QUIGLEY, SISTER OF GLEN DOHERTY: You know, when I think back now to that day and what she knew, you know, it shows me a lot about her character that she would choose in that moment, to basically perpetuate what she knew was untrue.

(END VIDEO CLIP)

KELLY: That's the sister of Glen Doherty who was killed in that attack. Patricia Smith is the mother of Sean Smith who was killed in that attack. And we are also joined by Charles Woods, the father of Tyrone Woods, who was killed in that attack, along with Tyrone's brother, Jeremiah. Thank you all so much for being here with me tonight. Pat, I'll get you in one moment. I'll start with Charles and Jeremiah. First, I know you were all at the premier last night, your reaction to it, Charles?

CHARLES WOODS, FATHER OF BENGHAZI VICTIM TYRONE WOODS: Well, from the very beginning, I felt like probably, anyone else who lost a loved one. You want to be there at the moment that they die. You want to be at the side. You want to know what they were going through. And I had always wanted to talk with one of the men who were with Ty. I was able to do that both before and after the premiere. And I really wasn't ready for what I saw on the screen. I have read the book. I thought I was prepared. But when I actually saw my son's life being taken from him, it was very emotional. The entire family, there was four of us there, we were all in tears. We were hugging each other, sobbing. It was almost like I didn't want to be there, but I'm glad that I had the experience. It did add to the --

JEREMIAH WOODS, BROTHER OF BENGHAZI VICTIM TYRONE WOODS: Healing process.

C. WOODS: Yeah, the healing process, the closure. And it was positive, but very powerful, because this is what really happened. You know, there's a lot of smoke and mirrors that have gone out from both the left side and right side, that these men that were with Ty, they were telling the truth. This is what actually happened.

KELLY: It make no mistake about it, when you see the movie 13 Hours, you will see that Tyrone Woods emerges as an incredible hero who rallied those men and did everything in his power to try to override the orders they were being given to stand down and not go help the ambassador at the consulate, but they went. They just went too late because they were told not to. And finally, you'll see in the movie what he did. When you saw that, Jeremiah, when you see your brother depicted and the heroism that he showed and how, and the love that the other guys felt for him, what was it like for you?

J. WOODS: It was unbelievably touching. Like my father said, the -- in the movie, you can absolutely tell that there was the touch of people who were actually there on the ground. You could see that their input was 100 percent taken by Michael Bay and the actors who were portraying it and --

KELLY: And we have footage of that, behind the scenes guys, the real guys, you know, Tonto and Oz and Tig, telling Michael Bay, this is how it was done. This is how it went down.

J. WOODS: Actually, it was Oz, i believe. We were talking after the premiere and he was saying, when Michael Bay was signed on for the movie, he essentially said, "If you don't get this right, I'll be in water boarding you." Essentially, you know, only.

KELLY: Oz, who was very close with Ty.

C. WOODS: Yeah

KELLY: And we have a picture of him visiting Ty's grave. I mean he -- his death took us all on you and on -- and the men who served with him. This is that picture here. We interviewed Oz and other two guys, not long ago. I wanted to ask Pat, because I know you were there and my heart goes out to you as a mother. I know how difficult it must have been for you. And you were not able to stay throughout the whole movie.

PATRICIA SMITH, MOTHER OF BENGHAZI VICTIM SEAN SMITH: I left as soon as Sean came on screen or the person who portrayed him. I couldn't handle it. Hillary is a liar. I know what she told me.

KELLY: Oh, Pat. I know it must be so hard. I -- so many people want to put this behind them and say, Hillary sat there and she testified, she testified with her own 13 Hours, and they say it's done. They say there's no story about Benghazi. And that she did everything she could do to the fog of war and she came right out and said, "She is not lying." Suggesting, you are the one who is lying about what happened at that air force base.

SMITH: Bull feathers. That is just plain old bull! I know what she said and not only did she say it, but Obama said the same thing to me, and Panetta, and Biden, and Susan Rice. I went up to all of them, begging them to tell me what happened. And they all said that it was the video, every one of them.

KELLY: What is incredible, Charles, you have contemporaneous notes. I mean, in a court of law, this is admissible if you were at that point. Were you - - you wrote down what she said, "We are going to have the filmmaker arrested who was responsible for the death of my son." That's what she said at the time. When I interviewed OZ, and Tig, and Tonto, their first response was, "Who has motive to lie? Is it Mr. Woods? Is it Pat Smith? Is it Kate Quigley?" Why do you think she said what she said about, when they said somebody's lying, she said, "It's not me."?

We'll have the families' answers to that in moments. And we'll show you Charles Woods' journal entry. And last, we'll also ask him what they hope to see, now that the whole country will get a chance to learn what really happened in Benghazi.

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UNIDENTIFIED MALE: We need immediate assistance. We are overrun.

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KELLY: And we're back now with more from the families of Benghazi victims, Sean Smith and Tyrone Woods.

Why do you think she said what she said about when they said, "Somebody's lying" she said, "It's not me."

C. WOODS: OK. First of all, we have some honorable people here. The members of the three other families, they are honorable people. And I don't want to be political to politicize the death of my son would be dishonoring to Ty. All I can do -- and I did bring my notebook that I carry, because every year I've carried these for years. And I'll just read what I said, and then I will let people, whether you're democrat or republican or independent, draw your own conclusion.

KELLY: You were just found right after.

C. WOODS: This is what I wrote right down -- or I wrote down. "I gave Hillary a hug and shook her hand. And she said, we are going to have the filmmaker arrested who was responsible for the death of your son." Yeah.

J. WOODS: And I remember that evening. When Ty's body flew and I just on the phone with my dad and that was exactly what she was saying. That was the information we had at the time. And that was, what I believed and I had no correspondents directly but through him. And that was, that was what we were going on really for the first, over month, after he passed.

KELLY: What do you feel when you hear the congressional investigators say, no stand down order was given. It's not -- that was not what went down that despite the testimonials of the guys who fought the fight. And you hear partisans say, "Would you move on? Benghazi is done."

J. WOODS: Well, I think what you said there about the individuals who actually were on the ground -- I really believe that is what holds the most weight. The individuals on the ground, no matter what, there's multiple people there who are corroborating and I would say there, those multiple people who have identical testimonies, on that I would --

KELLY: What do you think, Charles?

C. WOODS: OK. The men on the ground are totally reputable. They risk their lives because of integrity, because of honor. They don't lie. They have no motivation to lie. And even if -- OK, look at the facts, Ty and the rest of them would have left immediately if there had been no stand down order.

KELLY: That was they --

C. WOODS: They would have gone immediately, so --

KELLY: And that's what the three guys said.

C. WOODS: Yes, exactly.

KELLY: I want to ask you about that Pat.

C. WOODS: Those are the facts.

KELLY: They -- Oz, Tonto and Tig said, without question. They believed if they had been allowed to go when they, when the calls came in, when they said, "We're all going to die unless somebody gets over here," that they could have save the life of Ambassador Stevens and your son. I mean, what kind of accountability do you want to see?

SMITH: I want to see Hillary in jail. It was her department, and she had been lying and she turned the whole country into a bunch of liars.

KELLY: That's an extraordinary thing when you think that Charles, your son, died trying to help Pat's son, Ambassador Stephens and others. And you met some of the CIA agents whose lives he did save at the premiere last night. I've got to go, but I want to ask you, what was that like?

J. WOODS: It was surreal. It really, putting faces and names to real people. When these types of things are mentioned on the new so many times, their name was faceless or faceless names. And you don't really get the human aspect of it, but meeting them face-to-face, that really -- it puts it in a whole new light and really shows the significance of that sacrifice that was made.

In the movie, one of the dialogues when they were leaving to the annex, it was, Ty's character said, "Well, this is about the end of our contract work." And the response from one of his comrades was, "Well, that's a small price to pay for doing the right thing and being able to live with themselves." And that, that right there is just the true hallmark of just the kind of heroes that they were and the man that they were.

KELLY: He is the one who said, "None of you has to go, but we're their only chance." And they did go. And they paid a high price for the heroism last night, but they saved American lives. Thank you both so much for being here. Pat, God bless. Good luck to you. Thank you for being here.

Charles Woods says he actually hopes this movie will inspire others to serve. And believe it or not, after his son died, he called up the Armed Forces and tried to enlist at 60-years-old. Jeremiah is going to medical school. He hopes to take those skills to help our men and women in uniform.

Monday night, we have an amazing lineup for you, an hour on the blockbuster movie 13 Hours: The Secret Soldiers of Benghazi, and how the film could change the 2016 race.

Plus, we will show you exclusive behind the scenes material with the real life soldiers, the actors and Director Michael Bay, and how together they managed to capture the powerful story of bravery and sacrifice. That's Monday night, 9:00 p.m. Eastern Time.

Coming up next, right here, growing outrage after a Federal Court rules that an American can wear more medals and lie about his service, whether it's earned or not.

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KELLY: New outrage after a Federal Court says, "It's no crime for Americans to wear an honorary war medal. Even if they didn't earn it and even if they use it for money." That's good news for Elvin Swisher who wore a purple heart among other medals, and was originally convicted under the law that has just been tossed out. Attorneys, Mark Eiglarsh and Andell Brown are with me now. Andell, you agree with this?

ANDELL BROWN, CIVIL RIGHTS ATTORNEY: I absolutely do not agree, Megyn. It is disgusting and it cheapens the sacrifice that the men and women in uniform have made, that anyone can just walk up and put on a medal and act as if they've earned the honor and respect that we have for the sacrifice our men and women in the military have made.

KELLY: Mark, you got to give it to Elvin.

BROWN: I think it's absolutely outrageous.

KELLY: Who came up with a big story about how he had a secret mission in North Korea in 1955 and got all these medals but he was told to keep them a secret. That was all BS to get disability benefits.

MARK EIGLARSH, CRIMINAL DEFENSE ATTORNEY: We can all agree that what he did was outrageous and offensive and what should be done is public humiliation. Everybody look at this guy.

KELLY: Yes.

EIGLARSH: And use your free speech to let everyone know how you feel about it. However, the Appellate Court had to follow a 2012 Supreme Court ruling, which made it very clear that it is constitutionally protected speech to lie about military service unless it's under oath, so it would be perjury.

KELLY: But the Congress ((ph) new law after that and said.

EIGLARSH: Or you use it to get money, then it would be fraud.

KELLY: Well, then we're gonna make it illegal if he tries to use it for money, Andell. That's how they tried to get him.

EIGLARSH: Right. It's not what he did.

BROWN: Absolutely. But I think the thing that mark is missing is that the fact they talk about something of value. They act as if the only thing of value here is money, not the blood, sweat, tears and sacrifice of those military individuals.

EIGLARSH: You're not -- Andell, you cannot win --

BROWN: Not the honor that we, as the country have for what they've done.

KELLY: Go ahead, Mark.

EIGLARSH: Andell.

BROWN: There's a value for that.

EIGLARSH: You cannot win a legal argument with a moral argument. You are right morally. We all agree it's reprehensible. However, the minute you create language that says you cannot lie or misrepresent yourself, then, all the politicians go to jail, anyone wearing a New York Fire Department, they get in trouble.

KELLY: OK. You are enticing First Amendment territory.

EIGLARSH: You know --

KELLY: Got to leave with that. And just ponder that during the commercial break, great to see you both.

EIGLARSH: Yes. Take care, Megyn.

BROWN: Thank you.

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KELLY: Tomorrow night, special "Kelly File" at 11:00 p.m., 11:00 Eastern Time. We'll have all the news from the FBN GOP debate with Krauthammer, Thiessen, Bill Burton, Perino, Stirewalt, plus Frank Luntz and his focus group. We'll see you then, 11:00 pm.

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