KELLY FILE

Sean Spicer talks Trump's press secretary decision; Pizzeria owner targeted by fake news stories speaks out

This is a rush transcript from "The Kelly File," December 15, 2016. This copy may not be in its final form and may be updated.

MEGYN KELLY, HOST: Breaking tonight, President Obama now vowing to quote, "take action against Russia" for interfering in the United States election allegedly. A threat that comes just hours after reports that he was well aware of Russia's role months ago but intentionally kept the information quiet because he thought Hillary Clinton was going to win.

Welcome to "The Kelly File" everyone. I'm Megyn Kelly. It is now believed that the White House had knowledge of Russia's cyber militias dating back to the summer of 2015. And tonight, reports suggest that the Obama administration did not say anything because the folks thought that Hillary Clinton would win the election and they didn't want to start a cyber-war with Russia.

This late breaking information tonight follows a string of White House allegations against Donald Trump with the Press Secretary Josh Earnest claiming not only did then candidate Trump know that Russia was engaging in militia's cyber activity, he encouraged it. Well, they apparently knew too and his boss was the sitting president.

Trump's transition team senior advisor Kellyanne Conway is calling the charges against her boss breathtaking.  

(BEGIN VIDEO CLIP)

KELLYANNE CONWAY, SENIOR ADVISOR TO PRESIDENT-ELECT TRUMP: That is breathtaking. I guess he's auditioning to be a political pundit after his job is over soon. That is incredibly disappointing to hear from the podium of the White House Press Secretary. Because he essentially stated that the President-elect had knowledge of this, maybe even fanned the flames. It's incredibly irresponsible. And I wonder if his boss, President Obama agrees.

(END VIDEO CLIP)

KELLY: In just a moment, we'll have reaction from Congressman Peter King who met with the President-elect at Trump Tower earlier today. And CIA trained Intel Officer Lieutenant Colonel Tony Shaffer.

But we begin tonight with our chief intelligence correspondent Catherine Herridge live in Washington. Catherine?

CATHERINE HERRIDGE, FOX NEWS CHIEF INTELLIGENCE CORRESPONDENT: Well, Megyn, Fox News has independently confirm that Russian backed cyber militias were targeting U.S. systems and influential U.S. persons in the summer of 2015 in the operation evolved into an effort to interfere in the U.S. election. These operations were sanctioned by the highest levels of the Russian government.

After the FBI's director's July statement about the Clinton e-mail investigation, a government source says there was a reluctance to further insert government institutions and their assessments into an already deeply politicized election cycle. A leading cyber security expert says, the intelligence community reviewed the techniques, tactics and procedures leveraged in the attacks and made the link to Russia. In October the agencies and Homeland Security or DHS went on the record. Though Putin was not mentioned by name.  

(BEGIN VIDEO CLIP)

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: This is a statement that was written by the intelligence community and the Department of Homeland Security. So, you should ask them exactly what their intent was. But my reading of it was that it was not intended to be subtle.  

(END VIDEO CLIP)

HERRIDGE: Tonight the senior Democrat on the Senate Intelligence Committee has said, the briefings throughout the summer re-detailed and the sources were highly credible. Senator Feinstein says she believes that the Russians engaged in a major covert campaign to influence public opinion.  But to be clear, there is no evidence that hackers got into the voting machines and change the totals. Current and former intelligence officials say, language really matters here and there is a big gap between Russian government sanctioned hacking and the Russian president personally directing and dictating how e-mails were released -- Megyn.  

KELLY: Catherine, great to see you.

HERRIDGE: Sure.

KELLY: Joining me now with more, New York Congressman Peter King, member of the Homeland Security Committee and Permanent Select Committee on Intelligence. And Lieutenant Colonel Tony Shaffer, he is a CIA-trained senior intelligence officer. Great to see you both.

So, Congressman King let me start with you. Because you were on the program last night just in disbelief about the fact that the CIA had blown off Congress in response to a demand that it appear and explain exactly what they believe happened here. And now today you went to Trump Tower and met with the President-elect. What's the latest?

REP. PETER KING, R-N.Y., HOMELAND SECURITY COMMITTEE MEMBER: Well, basically, I discussed with him what I said on your show last night, that there's no evidence that's been brought to our attention and the intelligence community has never shown us anything indicating that the Russians, who I do believe involved in hacking, I'm not denying that at all. That they were attempting to favor Donald Trump over Hillary Clinton.

There's no evidence -- fact. They've consistently told us that the intention of the Russians was to disrupt the election and put a cloud over whoever won the election. And apparently right now, they're succeeding in that. But as far as the reports over the weekend, that's what I was talking about last night. There is nothing to back that up at all. There is no --

KELLY: That there was a motive to help Donald Trump. That's the latest twist.  

KING: Absolutely. Absolutely. Yes. Absolutely. And the fact that was coming from the intelligence community, I found very concerning because it's almost if they are taking sides. Someone in there is taking sides against the incoming president. That is just terrible.

KELLY: Lieutenant Colonel Shaffer --

LT. COL. TONY SHAFFER (RET.), LONDON CENTER FOR POLICY RESEARCH: Yes.

KELLY: The notion that first of all -- that President Obama is now saying it was the Russians and we are going to take action. We need to take action. It's like, well, you've known since the summer of '15 and the other question is, what kind of action? Like redline action and Syria action? I mean, it's tough to take that kind of threat seriously given his past failures to follow through in much more serious circumstances.

SHAFFER: Right. Well, I'm still skeptical. I mean, as Representative King just said, there's no new evidence. I mean, James Clapper put out on the 17th of November what they have. It ain't -- it doesn't justify what the President say.

KELLY: And even he said that.

SHAFFER: Yes.

KELLY: Even James Clapper was like, I don't think they got it.  

SHAFFER: Let me say this to be very clear. He's an operative who's run these sorts of operations. I've actually had to notify the National Security Council in certain operations, brief the White House on things I'm doing. Things get politicized at that level all of the time. And let's be clear Megyn, no other Intelligence Agency is backing up the CIA on this.  If that evidence is there, President Obama owes this nation, a moment like President Reagan did on the KAL 007 downing that the Russians did back in the '80s as well as JFK when President Kennedy had to have pictures at the U.N. showing the Russian missiles in Cuba. That's what is needed here to justify the President coming back with this severe belief in response. I don't think that's available by the fact that there's no new information.  

KELLY: Okay. But here's the question.

SHAFFER: Yes.

KELLY: Here's the question. I'll put it to you, Congressman King.

KING: Yes.

KELLY: In the CIA's defense, they all say, you can draw the inference because all of the stuff that came out hurt Hillary and not of it hurt Donald Trump. There were reportedly some hacks of some Republicans and yet we never saw those documents. All we saw was Podesta stuff and DNC stuff.  Which, you know, I mean, you don't have to be a rocket scientist to say, hmm, why would they release that and not the stuff from the Republicans?

KING: Well, some of the things, we don't know that the Russians were involved with Podesta. And General Clapper said that also. They're not certain where that came from. Number two would be as far as the motive.  All along they've been telling us that they don't know what the motive was.  I mean, you can always have inferences. But the CIA again up until November 17th, we heard nothing about other than the fact that they didn't know.

Now, what happened between November 17th and now that caused the CIA to change their opinion. They could have made these same inferences back in November 15th, November 10th. Back in October. And also, a part from that though, the recent CIA report -- I don't know who it is at the CIA, is it John Brennan? Who is doing it? I mean, no one is on the record.  

KELLY: And they won't speak to you.  

KING: There is no document. There is nothing.

KELLY: They won't speak to you. That is the problem. Go ahead, Congressman.

KING: Which is unheard of. It's wrong. I mean, in the past, listen, they came up with a report that we disagree with, that's fair game. But there is nothing. Shadow boxing. Shadow boxing.  

KELLY: All right. Let me put that question before we go to Colonel Shaffer.

KING: Yes.

KELLY: Why would the CIA be playing peek a boo with these facts?

SHAFFER: Because they're trying to do -- insert themselves into Democrat politics. Megyn -- race should apply here. You know, Julian Assange just said, where this came from, an insider. So, we've got to look at the fact that maybe --

(CROSSTALK)

KELLY: -- the simplest theory is the right one.  

SHAFFER: Yes. Maybe the simplest theory here is that someone inside the DNC did give all of those e-mails to Assange. Maybe that's what happened here. And I know for a fact that others on our side have been very upset, you know, former members of NSA have done things to assist. Anonymous in getting into things. So, maybe we ought to look at some of the things closer to home.

KELLY: Okay.

SHAFFER: But like I said, John Brennan is acting politically and he should be held accountable. Because no one else is trying to do what he is doing which is undermine this election.  

KELLY: Okay. Great to see you both.  

SHAFFER: Thank you.

KING: Thank you, Megyn.

KELLY: Wow! Just four days until the Electoral College casts its votes and there are a number of new efforts tonight to block President-elect Trump from taking office. A liberal California activist running full page ads in papers across the country pleading with the members of the Electoral College to ignore the will of the voters and to reject Mr. Trump.

Plus, some Hollywood types today got in on the act with a new public service announcement calling Donald Trump unqualified to be commander-in- chief. Watch.  

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Republican members of the Electoral College. This message is for you. As you know, our founding fathers built the Electoral College to safeguard the American people from the dangers of a demagogue and to ensure that the presidency only goes to someone who is to an imminent degree endowed with the requisite qualifications.  

UNIDENTIFIED FEMALE: An eminent degree, someone who is highly qualified for the job.  

(END VIDEO CLIP)

KELLY: FOX News digital politics editor Chris Stirewalt is with us.

(LAUGHTER)

I mean is that going to do it? Like Debra messing is going --

CHRIS STIREWALT, FOX NEWS DIGITAL POLITICS EDITOR: Come on! Well, look, "Will and Grace" was great.  

KELLY: Amazing.

STIREWALT: But here's the thing.

KELLY: And President Bartlett -- President Bartlett, a former president there trying to stop. Yes. Left wing.  

STIREWALT: The most successful Democratic president of the 20th Century, no doubt.

KELLY: Right. President Bartlett.

STIREWALT: But here's the deal. They had the wrong argument before when they told the electors, don't vote for Trump because the Russians stole the elections. Because Russians didn't steal the election, they influenced the election, they influenced the campaign. They didn't steal the election.  Okay. Now they come back with an argument that conservatives actually like which is we are a federal system, we are a Democratic Republic in which these electors have their own agency, they can do what they want.

Most of the states punish you if you don't vote the way that you are supposed to vote but you are your own person. The elector is their own person. And when they go to their state capitals on Monday and cast their votes, they're doing it on themselves. So, this is an effective argument, made by exactly the wrong people. By a 180 degrees, the wrong people, liberal Hollywood stars who are now going to say the conservative Republican electors, hey, we love federalism and we love Alexander Hamilton. And it's all so great. No, no, no, you're doing it wrong.

KELLY: So, Hollywood has not learned its lesson that --

STIREWALT: No.

KELLY: -- bringing out Lena Dunham and Lady Gaga may have alienated some people.

STIREWALT: Uh-hm.

KELLY: And once again they tried out some stars for what?

(LAUGHTER)

KELLY: I mean, do they really think that this is going to do it?

STIREWALT: Well part of it is the anguished heart of people who believe that America is slipping through their fingers and they're taking it, very, very hard. I understand that. Losing elections is hard. This one is really hard because very few people saw it coming. And so, it hurts. So, I get that part. But the other part is this, they want to leave a mark on Donald Trump so that as he tries to govern, no matter what he does, it's the legitimacy of him in office that in some way --

KELLY: Good luck when you have a Republican House and Senate.  

STIREWALT: Well, yes.  

KELLY: Yes. And I guess I have stolen the last word.  

STIREWALT: Uh-huh.  

KELLY: Mr. Stirewalt, great to see you.  

STIREWALT: You bet.

KELLY: So, we have this breaking news on the Russia hacking. And new efforts to change the results of this election.

And up next, we're going to get a chance to speak with Sean Spicer, the man described as most likely to be the next White House press secretary.

All right. Size him up. Can you see him in that White House press briefing room? Look at him. Look at him. Okay. Sorry, Sean. We'll be right to him and we'll ask him some questions.  

Plus, we got word from Trump Tower today that the President-elect is starting to take a serious look at the Supreme Court. And Governor Mike Huckabee is here with that news.  

And then a "Kelly File" exclusive on how a conspiracy theory about Bill and Hillary Clinton resulted in a man shooting up a D.C. pizza parlor. For the first time ever, the owner of the restaurant is talking and he is here in moments only on "The Kelly File."

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: This is where we store our computer system and also where sometimes our staff puts their bags or something. This is a new lock because this is where this was shot off.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

PRESIDENT-ELECT DONALD TRUMP: Look at the size of this place. Every corner is packed. Now the press won't say it -- hey, press, turn the cameras, show them, please. Show them. Show them.

(CHEERS AND APPLAUSE)

World's most dishonest people. These are dishonest people.  

(END VIDEO CLIP)

KELLY: Number one. Breaking tonight, President-elect Donald Trump again taking on the media. This time during his Thank You Tour stop in Pennsylvania. It comes on the same day Mr. Trump was supposed to hold a news conference about how he will resolve his potential business conflicts.  That news conference was cancelled. And instead he went on twitter writing, "The media tries so hard to make my move to the White House as it pertains to my business, so complex when actually it isn't."

In moments, we're going to be joined by senior communications advisor to the Presidential Transition Team Sean Spicer. We will ask him about breaking news on a possible position for him in the Trump White House.  There could be an announcement on this any moment.

But first, Trace Gallagher is live on why Mr. Trump is taking new heat over his business deals. Trace.  

TRACE GALLAGHER, FOX NEWS CORRESPONDENT: Hey, Megyn. Business experts including the editorial page of our corporate -- in the Wall Street Journal say to eliminate conflicts of interest, Donald Trump should liquidate his stake in his company. Instead Trump says that no new deals would be done while he's in office and that he'll hand over company management to a team that includes his children, though many have questioned why if his children are taking over the business, are they also involved in the transition meetings which according to Politico includes interviews with potential cabinet nominees.

Instead of going forward with the scheduled news conference to answer questions and lay out his grand plan to avoid conflicts of interest, Trump's team says, the President-Elect will offer up details in January ahead of his inauguration. Today, RNC Chief strategist Sean Spicer, who is also advising the transition was press on CNN about Trump's transparency.  Watch.  

(BEGIN VIDEO CLIP)

SEAN SPICER, CHIEF STRATEGIST, REPUBLICAN NATIONAL COMMITTEE: The American people have understood exactly what they're getting and they voted overwhelmingly for him. He's been very clear about what he owns, the role of his family and everything else since he announced that he was running for president. And they overwhelmingly elected him with all of that on the table.  

(END VIDEO CLIP)

GALLAGHER: Trump himself went on Twitter today to criticize the general media for trying to make his business ties and his move to the White House so, quote, "complex." And one of the President-elect's favorite media targets, "The New York Times" may have provided more ammunition by hiring reporter Glenn Thrush. He's the man who was exposed by WikiLeaks for sending stories to Hillary Clinton staffers before publication. In April of 2013, Thrush then with Politico wrote to Clinton Campaign Chair John Podesta, quote, "Please don't share or tell anyone I did this. Tell me if I'd f'd anything up." The Times calls him a premier political journalist.  But in the leaked emails Thrush called himself a hack -- Megyn.  

KELLY: Trace, thank you.

Joining me now, Sean Spicer, he is the senior communications advisor to the Presidential Transition Team and reportedly the leading candidate to become President-elect Trump's press secretary.

Sean, great to see you. So, all right, let's get right to it. Have you been offered the position of White House press secretary?

SPICER: No, I have not.  

KELLY: If offered the position, would you take it?

SPICER: Absolutely. I would take anything that the President would ask me to do, shovel the driveway of the South Lawn or mow the lawn. Whatever he asked. This President has a real agenda of change and I would be glad to play a role in anything that he asked me to do to help advance that agenda.  

KELLY: If not an explicit offer, have they discussed the job with you?

SPICER: Well, I don't get into specific conversations that I've had privately with either the President-elect --

KELLY: Aha! I got you there. Okay. I got you. Now, according to our own John Roberts, they are saying that you're a leading candidate. Others suggesting an announcement is imminent. Do you believe that we might get an announcement, whoever it is, as soon as tomorrow?

SPICER: It could be any time. Look, I think I've now had an opportunity to be around the President-elect most of the time since he won the election. And when he makes a decision, he lets it be known. And there is no equivocating. So when he makes his mind up, he'll let us know and we'll get the word out.  

KELLY: There's also a report that Reince Priebus in taking the job as chief of staff said this is a package deal, Sean Spicer has to be the press secretary, that's the only way I'm going to take this. Because he hearts you. Well, is that true?  

SPICER: And I heart him.  

KELLY: Do you believe -- is there is chance that it's a package deal? The package deal has already been privileged.

SPICER: No. I absolutely not. Look, Mr. Trump doesn't take package deals. He takes the best deals. And again, as I said, I would be honored to do anything that help advance his agenda. But there never was a deal and he chose Reince based on the effectiveness and the success that he had of running the RNC and wanted to bring that to the White House to help the American people move forward. So, there is never been any kind of deals.  And if anyone knows anything about putting together good deals, it would be Donald Trump.  

KELLY: Okay. Well, maybe that is a good deal in his mind, maybe he likes that package deal.  

SPICER: Hopefully.  

KELLY: All right. So, let's talk about the media.

SPICER: Yes.

KELLY: You know there was a discussion with Reince Priebus about, on Hugh Hewitt show about, how the relationship with the media would change, and whether there would be daily White House press briefings. I don't think the viewers care about who sits where in the White House press briefing room. But would you advocate for daily or presidential White House press briefings, for the White House press corp?

SPICER: Well, I think we have to look at everything. And so, I don't know that it needs to be daily. I don't know that they all need to be on camera. And I think that's a view shared by a lot of former White House press secretaries, a view by some in the media. In fact, that the White House press briefings have become somewhat of a spectacle. And so maybe there's a more effective way of delivering the news and having a more, you know, appropriate adult conversation with the media to inform them of the President's actions as opposed to an on-camera activity. But it's not a yes or no. I think what you've seen with Donald Trump is real change.  He's not going to settle for the status quo and the business as usual is over.  

KELLY: But is he going to bounce reporters out whose, you know --

SPICER: No, no, look, I mean, he's not going bounce anybody else. Look, no, no, absolutely not. Absolutely not. Absolutely not. He has a healthy belief in the First Amendment and the understanding in the role --

KELLY: So healthy, why did he ban them during the campaign?

SPICER: Because there's a difference -- he understands the role of president and the role of the White House. That's a vastly different view than being at a campaign rally that's paid for by the campaign, funded by him, by his own dollars out a private venue. He has the right to control access to that.  

KELLY: Okay. All right. So if The New York Times does a scathing editorial on President Trump, they're still going to let The New York Times reporters in the press briefing room and have access just the same as all the other news organizations.

SPICER: They're in the pool right now and they still have scathing editorials and pretty poor reporting.  

KELLY: So, yes. The answer to my question is yes.

SPICER: Yes.

KELLY: Okay. The other question that the children are taking a hit, Donald and Eric, for sitting in on these briefings when they're supposed to be running the Trump organization. Can they do both? Can that continue after the inauguration?

SPICER: Well, I think what Mr. Trump is going to do is lay out and delineate the difference between the role that he and anyone else will play in advancing his agenda and this government and what he will do with his business. But it will be made crystal clear and the line will be pretty bright as to what's business and what's government. But right now as far as the role of the children --  

KELLY: But do you see the potential conflict in letting the signs --

SPICER: I do. There is a potential --

KELLY: -- for running the Trump's organization sit in on government meetings, on presidential political meetings?  

SPICER: Well, first and foremost, when it comes to Mr. Trump himself as president, the law is clear that he cannot have a conflict of interest.  However, because he wants to ensure that he's focused on the American people and moving this country forward, he's taken the additional step of saying that he wants to make sure that the line is clear and then that will happen. As far as the children are concerned with respect to the transition, their names are listed on the website.

They were announced. This meeting that we had yesterday, we brought the press in. Everyone who comes up and down the elevator are there for the cameras to see. I think that when it comes to transparency, we've been much more transparent when it comes to this transition than probably any other transition in the past.

KELLY: Well, that's true.

SPICER: When it comes to --

KELLY: You can be transparent about something that's inappropriate too just because you're transparent doesn't mean it's okay. Do you see the Trump's sons maintaining these role in these meetings, this cabinet level meetings, and meetings with foreign leaders after Trump is inaugurated and Donald and Eric are supposed to be running the Trump business --

SPICER: I think once the President-Elect becomes president, he will have laid out exactly how he's going to delineate between his role and the family's role as government officials or government activities and his role and their role when it comes to pertaining to the business.  

KELLY: Okay. I have to go. But I got to ask you this last question.  Dana Perino said that when you're the White House press secretary, you have to wake up at 4:30 in the morning. Are you going to do that? Are you going to work those 18-hour days, wake up at 4:30, doesn't pay well. You got, you know, just the disgusting media as Trump would say firing unfair questions at you. Why would you want that job?

SPICER: Well, as I said earlier, it's not just that job, but any job.  

KELLY: Okay. But 4:30 in the morning?

SPICER: I already get up at 5:00 so I might as well get up half hour earlier.  

KELLY: Good gracious. Good luck to you, Sean. Great to see you.

SPICER: Thanks.

KELLY: Also tonight. Big news breaking on one of Hillary Clinton's closest aides. See what is happening with Huma Abedin and the investigation into her estranged husband. Congressman Anthony Weiner.

And then a "Kelly File" exclusive on how a conspiracy theory about Bill and Hillary Clinton resulted in a man shooting up a D.C. pizza parlor. The owner of that pizza shop is here next right after this break in a "Kelly File" exclusive. He'll be here live on the story behind the story.  

(BEGIN VIDEO CLIP)

PETER NEWSHAM, INTERIM D.C. POLICE CHIEF: There's nothing here. It's completely fictitious. This is a great business and, you know, the fact that anyone would continue to perpetuate that lie, it's a little unsettling.  

(END VIDEO CLIP)

(COMMERCIAL BREAK)

KELLY: A "Kelly File" exclusive tonight on the conspiracy theory that came to be known as Pizzagate. It started what turned out to be a bogus news story suggesting that Bill and Hillary Clinton were running a sex ring out of a Washington, D.C. pizza parlor. The whole thing turned truly frightening when a man showed up at the pizza parlor with a gun, two weeks ago, demanding to know more. And now it has become the center of national debate over fake news. James Alefantis, the owner of the pizzeria is talking for the first time. He is here on the set with me in moments. But first we go to Trace Gallagher on West Coast Newsroom on how this whole thing got started. Trace.

GALLAGHER: Megyn, as many controversies do these days, it began with a tweet. On October 30th, days after the FBI announced they would be reopening an investigation into Hillary Clinton's email, someone on twitter whose name remains unverified, but has several thousand followers posted that new emails found on Anthony Weiner's computer confirm that Hillary Clinton was involved in a pedophilia ring.

The twitter post included information from a Facebook user who stated, quote, my NYPD source said it's much more vile and serious than classified material on Weiner's device. We're talking an international child enslavement and sex ring. The next day the bogus claimed was pick up by a website called yournewswire.com, message board like 4Chan and Reddit, right wing blogs and several pro-Trump websites. InfoWars Alex Jones, a far right web host posted a YouTube video seen almost 500,000 times.

(BEGIN VIDEO CLIP)

ALEX JONES, INFOWARS: When I think about the children Hillary Clinton has personally murdered and chopped up and raped, I have zero fear standing up against her.

(END VIDEO CLIP)

GALLAGHER: The rumor spread, inspiring some newfound internet sleuth to start digging around in John Podesta's hacked e-mail searching for proof and location of the so-called sex ring. What they found were numerous references to pizza, a term that Urban Dictionary says is slang for child pornography. So somehow they concluded that Podesta and company were speaking in code. They also pounced on an e-mail from D.C. pizzeria owner and prominent Democratic supporter James Alefantis inviting Podesta to a pizza party fundraiser at his restaurant. Users then started combing through Alefantis Instagram posts, including a photo of a young girl with her hands tape to the Ping-Pong table  Alefantis said the child is his god daughter and the picture was very innocent. And this picture that conspiracy theorists decided must be the secret basement where children are locked up. But in fact it's from a restaurant Alefantis considered leasing. And Comet ping-pong doesn't even have a basement.

By November 4th, just six days after the initial tweet about a sex ring, Alefantis was officially part of the conspiracy. He began receiving threatening phone call with people labeling him a pedophile. On November 7th, the #pizzagate was born and by November 16th, people starting showing up at the restaurant to investigate for themselves, like the well-known right wing activist Jack (inaudible) who used a video camera to live stream his visit on periscope, focusing on a child, a birthday party trying to catch me various activity. On December 4th, Edgar Welch showed up at Comet Ping-Pong armed with an AR-15, a revolver and a knife determined to find underground rooms and vaults, firing his gun at a door behind which Alefantis says he wouldn't have found anything exciting.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: In here, are our bags and closet. The bullet went into our computer system.

(END VIDEO CLIP)

GALLAGHER: After police arrive, Welch surrendered peacefully saying that he was trying to rescue the children he was sure were hidden inside. He faces charges including assault with a deadly weapon, Megyn.

KELLY: Trace Gallagher, thank you, joining me now, in a "The Kelly File" exclusive, James Alefantis, the owner of Comet Ping-Pong in Washington D.C.  James, thank you so much for being here.

JAMES ALEFANTIS, COMET PING-PONG: Thank you for having me.

KELLY: What a terrible ordeal this must have been for you.

ALEFANTIS: It has been.

KELLY: When this man walked into your restaurant with this gun, firing multiple shots, no one was injured. You weren't there that day, right?

ALEFANTIS: I was there earlier that day.

KELLY: You knew things were reaching a fevered pitch, but did you foresee that?

ALEFANTIS: It had been building since before the election. Starting on November 4th, I started receiving messages on my Instagram that were just very bizarre and strange and accusing me of all kinds of falseness and conspiracy. And this built and built and built for over a month. And really, it's not just me that was involved. It was my staff who was harassed and attacked. They received Instagram messages, Facebook messages. Then it started to appear that images of children and other people were being taken from social media and blasted throughout the internet with this insane conspiracy idea filled with just lies about this impossible international conspiracy of human traffickers involving Hillary Clinton.

KELLY: Oh my god and you -- you're a Democratic donor. There's nothing illegal about that, doesn't make you a pedophile or somebody who is part of a child sex ring. One of the pictures that Trace showed in the report, people has been saying, look at this, this is evidence. There's a child with her hands taped down. And you're saying there is a simple explanation to that.

ALEFANTIS: Yeah. I am very glad that you had us on today, it is an incredible thing, and we've invited your cameras into the restaurant, because people have all of these ideas. And this is -- people use social media. This is a picture of my god child, in a completely innocent place, very happily playing with her sister. Her sister has taped her hands. Her parents are there, I put this on my Instagram with their approval. Right there, it sits there on the internet for a year and a half and people start building these lies and falsities about innocent people and then spreading this image over the internet.

KELLY: When people talk about fake news, you know a lot of folks just roll their eyes. Like, you know whatever, people figure it out, and the truth is they don't always figure it out. And someone could have been killed inside of your restaurant.

ALEFANTIS: Yes.

KELLY: For no good reason other than people like Alex Jones, fanned a conspiracy theory that even the D.C. police say has no basis in fact.

ALEFANTIS: Yes. It's pack of lies. And it's dangerous. What happens is this person was inspired to drive across four state lines with an assault rifle and enter a family friendly restaurant at 3:00 in the afternoon on a Sunday. So you can imagine the fear that must have been felt by these people. And this is real consequences. My staff lives in fear. My staffs are the bravest people I've ever met. And we're trying to make sure they're safe and do their job. Imagine someone coming to your workplace with an assault rifle.

KELLY: And to be accused of being a pedophile, because you have e-mails that talk about pizza. When you ran a pizza parlor, I mean they are going to be emailed, like the word pizza seems out of place, I mean it's really gone down the rabbit hole, but you tell me whether this has affected your business. And separate and apart from the fact that no one was injured, whether there have been real consequences to you and your customers and your staff as a result of -- again, the D.C. police are saying this is fake. Fake.

ALEFANTIS: Thank you. It's true. Yes. It's been just being terrorized.  It's been over a month of daily death threats to me, hundreds of phone calls to the restaurant asking for all kinds of wild things like ordering a cheese pizza. Something that we just do, we are a pizza place.

KELLY: Right.

ABELE: A family friendly pizza place. We have been in existence for ten years in the same location. So, it was difficult and shocking. Now our community has rallied around us, so we have people coming in. There are families and kids where there. We have private security. We're trying to make sure that the staff feels safe, that our community feels safe and that our customers feel safe.

KELLY: What is the bottom-line, quickly? What needs to change?

ALEFANTIS: I think there has to be some way of breaking these things up.  There's no -- it's impossible that this news can go from one person to the next, the next and the grand conspiracy theory and there's no reporting, no ability to do anything.

KELLY: I know Reddit has banned this topic on its website, I mean slowly but surely. Those who helped ban it are trying to dial it back out of the safety. You know the concerns for the safety of those who had been in danger.

ALEFANTIS: Really, this could happen to anyone. It's not just us. It is any single person.

KELLY: I know you said to our producers it's also surreal until the gun comes in. Wow, James thank you for being here and telling your story.

ALEFANTIS: Thank you so much.

KELLY: All the best to you.

ALEFANTIS: Thank you.

KELLY: Incredible. So in other news, we got word from Trump Tower today that the President-Elect is starting to take a serious look at the Supreme Court. This is going to be a fight for sure. And Governor Mike Huckabee is here next on that.

Plus a new twist in the controversy over the Muslim woman who was arrested for filing a false report after she accused Trump supporters of attacking her, Brian Kilmeade, just ahead of the breaking news, don't go away.

(COMMERCIAL BREAK)

KELLY: Developing tonight, new reports that President-elect Donald Trump is starting to discuss who might be his pick as our next Supreme Court Justice. Fox News own Judge Andrew Napolitano, look at the hair, he visited Trump Tower today. You couldn't miss him. And to discuss the choice with the President-Elect and the judge stopped for the cameras on the way out.

(BEGIN VIDEO CLIP)

ANDREW NAPOLITANO, FOX NEWS SENIOR JUDICIAL ANALYST: We spoke for an hour today about the constitution, about the Supreme Court and about the process for choosing the replacement for Justice Antonin Scalia. I think he is going to begin to concentrate on finding a younger version of Justice Scalia and have that name out there before he is inaugurated.

(END VIDEO CLIP)

KELLY: Fox News Contributor and Former Arkansas Governor Mike Huckabee, is here with thoughts on that. This is huge. The Supreme Court, we haven't really been paying much attention to it. We have been looking at the cabinet pick, but that choice will have a bigger impact.

MIKE HUCKABEE, FOX NEWS CONTRIBUTOR: Far bigger, because if he gets a bad cabinet member, he can fire them. He doesn't get to fire a Supreme Court appointee, once they're on the court.

KELLY: Even if he decides he doesn't like them.

HUCKABEE: Even if he decides to quit his job, they don't quit theirs.  Being a president is a four-year job, maybe an 8-year job. Being a Supreme Court justice might be a 40-year job. The impact of the justice on this country is so amazingly complex, that he is got to make good decisions.  One of the things that I hope he does -- I don't want him to look and say let's get a conservative judge rather than a liberal judge. Let's get a judge who has a sacred respect of the constitution and who understands that the role of the court is limited to only interpreting the law not to creating it.

KELLY: But that is Justice Scalia did a lot of the times, he said, you know, he was an originalist. He said, I don't think you put nine guys or gals in robes and let them start deciding about some social issues. I think we should stay out of it and if not that, you know, he doesn't think it was a constitutional rights on abortion, but he said leave it to the states, if they want to legislate more against it. Leave t up to the states, of course that was seen differently. So, how many, like how many vacancies do you think that President Trump will have the chance to fill and you think that he'll fill the Scalia seat before the inauguration, announce his pick?

HUCKABEE: I think it's very possible that he might. He is certainly got that one. That is a given. But he could have two or three more. I mean you have several court members who are getting up there in years. And I don't want to start naming names.

KELLY: Ginsberg.

HUCKABEE: Somebody will say that, you know I'm predicting somebody's demise.

KELLY: Well, some of them might die, but they might leave.

HUCKABEE: They might, but it is doubtful if the person with the polls who is on the left to leave as long as Donald Trump is president. I mean, I'm just being honest and realistic.

KELLY: Justice Scalia would not have chosen to die under a Democratic president if he would have been given the choice.

HUCKABEE: No. He was a great guy, by the way. I actually documented him a couple of times. An amazing human being, but the reason he was amazing, that I have so much respect for him, is because he understood that his job when he went in there with the black robe was not to say, this is what if legislature should have done, but they didn't so we're going to do it for them. That is judicial supremacy. It's a very dangerous thing that is really only been in play about 40, 50, 60 years in America. It's not something that the original founders of our country would have tolerated.  And it's something that we as a citizen shouldn't tolerate.

KELLY: Do you feel like as governor of Arkansas this has been a -- a former governor that this has been a legacy that you were able to leave at the state level? And speak to, you know, how important this will be for President Trump, because he won this election really by 80,000 votes if you consider Wisconsin, Minnesota and Pennsylvania. And those 80,000 voters made a big difference when it comes to certain policies that are going to go before the Supreme Court. .

HUCKABEE: And those changes and the responsibility go to the grandchildren, not just to the children, but to the grandchildren of those who are alive today. We elected most judges in Arkansas, but I appointed vacancies and had many appointments. I always tried to ask myself, does this person understand that their job is limited to interpreting the law.  And if they want to make law, they need to run for the legislature.

KELLY: Absolutely right. That could have been spoken by Justice Scalia himself.

HUCKABEE: And they are equal. But there's got to be check and balance, there is no check and balance on the court right now. When the other two branches of the government surrender to the court, we're in trouble. And we're in trouble right now.

KELLY: Great to see you Governor.

HUCKABEE: Great to see you.

KELLY: It's fun being outnumbered with you today too.

HUCKABEE: I had a great time.

KELLY: Can't stop meeting like this.

HUCKABEE: I know.

KELLY: Also tonight, we have big news breaking on one of Hillary Clinton's closest aides. Huma Abedin. Plus, we'll look at why some Trump supporters want to boycott the new "Star Wars" film. Pay attention, I know James, this one is for you. Brian Kilmeade has the story next, live.

(COMMERCIAL BREAK)

KELLY: New fallout tonight after police arrested a Muslim woman for filing a false report about being attacked by Trump supporters on the subway in New York.

This is part of what she told reporters back in December 1st.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: They got closer. They were like take that rag off your head. One of them reached for my hijab from the back and tried to pull it off, but I put my hand on top of my head so it wouldn't fall off.

(END VIDEO CLIP)

KELLY: We spoke with her attorney tonight, who said quote, Ms. Seweid is just 18 years old. She is a young woman and we at the Legal Aid Society stand behind her 100 percent. Brian Kilmeade is co-host of the Fox & Friends and author of Thomas Jefferson and the Tripoli Pirate, which is a great Christmas gift. So what does that tell us?

BRIAN KILMEADE, FOX AND FRIENDS SHOW HOST: She is in trouble, she flat out lied. You talked about fake news earlier. You covered the story last night and it is amazing. She is in trouble, she is 18 years old.  Evidently she was out late, she was drinking, and she tried to cover up the story. She disappeared for a couple of days after police could not verify anything she was saying. Finally on Wednesday she broke and she said I made it all up. She did show too without the hijab and with her head totally shaved. And some say that was her parents, punishing her, thought those are speculation on the outside.

But the other big story I think is in the era in which proclaiming everything for Hillary Clinton lost. One of which was fake news. So, normal mainstream media like the New York daily news writes, woman attacked because say quote, I am a Muslim teen. CBS Muslim teen attacked in New York City subway. BuzzFeed, Trunk (inaudible) Donald Trump, Donald Trump trying to remove woman hijab on subway. This is only her account.

They didn't try to verify the story. They didn't get a second source.  They didn't wait for the cops to come out. And instead that is what everyone thinks. That is what everyone thinks about New York and that is what everyone thinks about Donald Trump and their supporters supposedly deplorable. I think it is falling downstairs, it makes you take a step back and say, what am I actually reading and what can I actually trust?

KELLY: All right, I know that the standard for getting things on TV or in print these days, they seem to be slipping. And too much news that isn't real news is getting past us. And this woman's story was not vetted and it went everywhere. I want to ask you next about Huma Abedin. Apparently according to Vanity Fair, Hillary Clinton staffers don't give a blank about what happens to her and they are turning on her.

KILMEADE: Insiders just saying that she was too suffocating with Hillary Clinton and she loves the spotlight too much. Whether it is red carpet treatment or showing up in major events, she is doing nonstop selfies, according to some. Maybe they're just jealous. Then they tried to get Hillary Clinton to open up as Donald Trump begins to blow up in a good way.  And Hillary Clinton would be shrinking her circle, not wanting to do "the view" and other shows like this one and because of that they really blame her. And tonight there is a Christmas party at the plaza. She is going to be there. And maybe there some going to be some tensions, showing at the big party, and you know what, we're not invited.

KELLY: How do they blame her? It's Hillary's decision, it is not Huma's decision, but Hillary does.

KILMEADE: Listen, I agree, but everyone is pointing fingers. As you see, nobody takes responsibility with the Hillary Clinton camp. They have been keeping up with the story line.

KELLY: Now they are also saying that Huma Abedin is seeking to reveal the Clinton e-mail search warrant, she is getting a little pushback on that investigation in the Weiner. Let me ask you about Star Wars, Trump fans are pushing for a boycott of the movie over rumored anti-Trump scenes.

KILMEADE: Yeah and evidently they disclaim by one of these Trump guys says he read on a tweet that one of the coauthors Chris Weitz tweeted out, that he is changing the ending, he indicated he is changing the ending, because of Donald Trump's victory. But he says that is absolutely not true, but a big dump Trump movement started, started to get some steam, Disney pushes back, I'm not doing that. The last Star wars movie I saw with star in it was star search. It wasn't a movie. It was a TV series, also Star Trek, (inaudible).

KELLY: Oh, sounds hot.

KILMEADE: Yeah.

KELLY: So this is nonsense. And by the way, the boycott, like most Trump fans, they're very reasonable. There are like, ok, this is Saturday evening, it's a faction that is always pushing for a boycott, want to boycott everything.

KILMEADE: One of the names, Malik Obama, he is also tweeting boycott.

KELLY: Oh boy.

KILMEADE: He is upset.

KELLY: Good luck with that, great to see you, Brian Kilmeade. We'll be right back.

KILMEADE: Great to see you.

(COMMERCIAL BREAK)

KELLY: Big Christmas special, right now. Go to Amazon.com, you can get "Settle for More" my new memoir for $4. It is incredible, seriously Amazon.com right now, Merry Christmas. Enjoy it, all the best.

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