This is a rush transcript from "On the Record ," October 11, 2007. This copy may not be in its final form and may be updated.

GRETA VAN SUSTEREN, HOST: Now, Lincoln Bain is a spokesperson for the two nannies and the host of "Controversy TV" in the Bahamas. He also provided us with this shocking audio and video we are showing you tonight. Lincoln recently went "On the Record" about his experience with Rita Cosby.


VAN SUSTEREN: Now, she came down to the Bahamas recently, right?


VAN SUSTEREN: When was it that she went to the Bahamas?

BAIN: She came to the Bahamas this last Saturday.

VAN SUSTEREN: All right. Before she arrived Saturday, did you have other phone calls with her?

BAIN: Yes, I had several phone calls with her.

VAN SUSTEREN: About how many phone calls between right after the book was published and Saturday did you talk to her?

BAIN: I don't exactly remember how much phone calls. Periodically, she would call me because she wanted — the main thing was she wanted to set up this meting with these nannies so that she could actually say, and look good, that she actually spoke to these girls, when really, she never did speak to them before. So the main thing was she wanted a meeting with them. That was her big thing. So she told me to set up a meeting in the Bahamas, and she was coming on a Saturday. She told me to get a hotel, get a hotel to have the meeting in and bring the nannies. And she also said she wanted to appear on my TV show while she was there.

VAN SUSTEREN: Did you do that? Did you set up a meeting with the nannies?

BAIN: Yes. I contacted the attorney. I contacted the attorney, and I told her what Rita wanted, you know? But the attorney was very annoyed that — and the nannies, to be honest with you — that this woman would now be coming looking for them, when she is $60 million in trouble. When she arrived on Saturday, after she did my show and everything...

VAN SUSTEREN: She did your show on Saturday?

BAIN: Yes, she did my show on Saturday.


BAIN: The meeting that was supposed to be with the nannies, I told her, well, I said, Rita, I set up the meting in the hotel conference room, like you asked. But of course, it's a hotel conference room. There's going to be expenses. You know, we've got to pay for the hotel or whatever, you know? And I don't think we expect the nannies to pay for that, you know? We should — we should find a way to cover that. What are we going to do?

She started negotiating with me. She said, Why should the nannies — sorry, she said why should she have to cover that when she came down to give the nannies an offer? And she said, I came to offer them $1,000 — and that's how she stressed it — I came to offer them $1,00 to share, so that they can come to the U.S. and testify against Howard K. Stern on her behalf, so that they can give an affidavit saying that Howard K. Stern and Larry Birkhead had sexual encounters and they were gay, and a number of other things, you know, she required of this $1,000.

I called the attorney of the nannies and I told her about this proposal. And she said, No, the nannies are not interested.

VAN SUSTEREN: So what happened when you're negotiating over the price of the conference room? Take me further. What happened?

BAIN: Well, she said — you know, that's when she brought up this $1,000 thing, you know? And like I said, I spoke to the lawyer. The lawyer said, no, she's not interested. But she said, Play along with her. You know, she said, Play along with her, negotiate with her to make it believable. But she said, Record every conversation you have with her, and we're going to deal with this appropriately. We're going to take it to the authorities or take it to the media and expose this nonsense, you know?

And she said the reason we're recording this is to protect the nannies because if a woman would write a whole book, a best-selling book, and not corroborate her story, not check the facts, not even attempt to speak to the person she's quoting, that's not a person you can trust. So she said record every conversation you have with her.

VAN SUSTEREN: Rita wanted it recorded.

BAIN: Say again?

VAN SUSTEREN: Rita is the one that wanted it recorded.

BAIN: No, no, no.

VAN SUSTEREN: Oh, the nanny lawyer did? OK.

BAIN: The lawyer wanted it recorded because you can't trust Rita.

VAN SUSTEREN: Did — and so was the conversation recorded with Rita?

BAIN: Yes, almost all of the conversations I had with her was recorded.

VAN SUSTEREN: Video or audio?

BAIN: Both.

VAN SUSTEREN: Did Rita happen to know whether this was going on, the cameras and...

BAIN: She didn't know at any time until after we had an altercation, we had a fight.

VAN SUSTEREN: So then what happened after that?

BAIN: So she continued to try to bribe me. Even after this altercation, when the police left, she's still on tape trying to bribe me, saying she's going to put me — give me — put me on the cover of a magazine and all these lies. You know, all these lies.

VAN SUSTEREN: Did she name the magazines?

BAIN: She was basically talking about "In Touch" magazine. So then she continued to try to bribe me, you know? She was supposed to leave at this time. Right after this fight, she was supposed to go to the airport and leave, but she didn't leave anymore. She stayed over. And she continued to call me, leave messages on my phone, asking me if I accept the proposal for $15,000 from this magazine, you know?

And finally, on Monday, the lawyer said, You know what? Let's do this. Let's make a — let's expose her. So I set up a sting operation, where — I treated it just like they do on "To Catch a Predator," you know? And she came in, she sat down in an office with the lawyer and myself, her and Tom, and she basically was offering this $15,000 and stressing that it can't come from her, it has to come from Tom, you know, because she's trying to keep herself, you know, clean.

And after making the offers, that's when I called the media out. When we were finished with the conversation, I called the media out and she got caught red-handed.


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