Ex-Boyfriend-Lawyer, Doctors Charged in Anna Nicole Drug Case

This is a rush transcript from "On the Record ," March 12, 2009. This copy may not be in its final form and may be updated.

GRETA VAN SUSTEREN, FOX NEWS HOST: This is a "FOX News Alert." Just coming into FOX tonight, there is some news in the Anna Nicole Smith case. We are joined on the phone by Harvey Levin of TMZ.com. Harvey, stunning news out of California tonight. What is going on?

HARVEY LEVIN, TMZ.COM: Well, Greta, we found out that Howard K. Stern is turning himself in to authorities tonight in connection with allegedly illegally getting prescription drugs for Anna Nicole Smith. And he is turning himself in, Greta, on felony drug charges. This is all going to go down tonight. He was informed, we're told, that this was happening.

If you remember, Greta, there was a search, which we reported, I believe it was about a month ago, with one of the doctors who was under scrutiny for allegedly giving Anna Nicole methadone when she was eight months pregnant. His name is Sandeep Kapoor. And about a month ago, agents raided his Los Angeles medical office and were looking specifically for drug information against Howard K. Stern, prescription authorization. So that happened a month ago, and tonight he is turning himself in.

VAN SUSTEREN: And just coming in to our computer right now, the Los Angeles Count district attorney's office, Harvey, has issued a press release. And it is entitled "Two doctors, lawyer charged with conspiracy to furnish drugs to Anna Nicole Smith." And it talks about three conspiracy charges. And the defendants, of course, as you noted, were Howard K. Stern, Sandeep Kapoor, who is a doctor, Khristine Eroshevich, which is the psychiatrist, who, as viewers may remember, went down to Florida -- or went down to the Bahamas right before Anna Nicole Smith died and also went to Florida, which is where she died in the hotel.

Harvey, Howard K. Stern knew this was coming down? About how much notice did he have? Because -- I mean, these are felonies. These are felony conspiracy charges. These are -- these are -- these are significant charges. These are not misdemeanors that you can just sort of walk away from.

LEVIN: Oh, absolutely, Greta. My understanding is he was notified sometime today, and he is turning himself in tonight. So I didn't know about Sandeep Kapoor. I just knew they raided his office. So that's news to me now that two other people have been charged.

VAN SUSTEREN: It says the arraignment dates for all three defendants have not been scheduled. Bail has been recommended for $20,000 for each defendant. Now, of course, I don't know if Howard K. Stern has that kind of money. I know that Khristine Eroshevich, oddly enough, lived next door to Anna Nicole Smith in LA. I've seen her home. She may be able to pledge her home. I don't know if she still owns it. But they're going to -- all three will spend the night in jail, these two doctors and the lawyer, unless they can come up with $20,000 or at least 10 percent of it.

Do you have any idea about their finances? Because that's the -- that's the first thing, Harvey, that they've got to face is whether they're going to be like Bernie Madoff and spend the night in jail?

Watch Greta's interview with TMZ Executive Producer Harvey Levin

LEVIN: You know, I don't, Greta. I just know that, at least for Howard K. Stern, I'm not sure if he's been actively doing much since she died. So you know, I have no idea how much they're going to have to put down, whether it's going to be a quick process. I certainly don't know about Kapoor or Eroshevich. I don't know.

VAN SUSTEREN: And I have more information on the specific charges. It says the conspiracy counts allege that the three defendants, the two doctors and the lawyer, conspired to furnish controlled substances to Smith between June 5, 2004, and January 26, 2007. Kapoor, the doctor, and Stern, the lawyer, were charged with one count of unlawfully prescribing a controlled substance between June 9, 2004, September 22, 2006. Eroshevich, who's the psychiatrist, and Stern were charged with unlawful prescribing a controlled substance between June '04 and January '07.

It also goes on to say Kapoor and Eroshevich each were charged with one count of obtaining a prescription for opiates by fraud, deceit or misrepresentation. And it says Kapoor and Stern were charged with one count of prescribing, administering or dispensing a controlled substance to an addict. Eroshevich was charged with the same crime in a separate count.

What's Howard K. Stern been doing lately, any idea, Harvey? He sort of dropped out of the -- out of the spotlight.

LEVIN: Yes, I mean, I don't think he has been doing a whole lot of much -- a whole lot of anything. I know that, you know, he is involved still in the estate. He is still connected with still administering this with Larry Birkhead. But beyond that, I don't think a whole lot, Greta.

VAN SUSTEREN: Well, it was interesting because he said he was never going to leave the Bahamas, remember that home in the Bahamas, and there was a huge fight over that home, whether for -- whether it was owned by somebody else or not, and they had a huge showdown over that. There were lawsuits flying. And apparently, at some point, he must have gone back to California, but I don't know if he's bouncing back and forth.

There was the fight, of course, where Anna Nicole Smith would be buried, whether she'd be buried in Florida, whether she'd be buried in Texas with her mother, or whether -- where her mother lives, or whether she would stay buried in the Bahamas, where her son is.

And as to add more peculiarity to an already peculiar lawsuit or series of lawsuits, Harvey, I know that Anna Nicole Smith's mother is still suing or still in litigation with Larry Birkhead, who is the father (SIC) of Dannielynn. Where -- what's the latest on that, if you know at all?

LEVIN: You know, I mean, I know that this thing is still kicking around. I don't think much is going to come of it, Greta. I mean, I think Birkhead has pretty much established what he needs to establish, you know, in that fight. So I think that one is over.

This was pretty stunning, you got to say, Greta. I mean, frankly, I was surprised when they raided Kapoor's office. I thought this was over. I really did. I knew this was lingering for a long time. So this -- you know, not a whole lot surprises me these days. This kind of does.

VAN SUSTEREN: Well, I'm surprised at the other part of it, that Larry Birkhead is still being sued by Anna Nicole Smith's mother over -- even over -- that the custody hasn't been resolved. You know, over the years, we've seen Larry Birkhead with his daughter, and he seems like a great father, very attentive, and it's a little bizarre that everyone doesn't sort of just move on and let a father raise his child. I mean, lots of insults (INAUDIBLE) slinging back and forth.

But you know, it's unbelievable that now where we are is this breaking news out of California, two of her of doctors and her lawyer/boyfriend now under indictment. Who would have thought this case would be resurrected.

LEVIN: Felony.


LEVIN: I mean, and boy, when you read those charges, Greta, that is powerful. I mean, at its worst, when there were allegations made, they were no worse than that. So I mean, they are throwing the book at them.

VAN SUSTEREN: You don't often see two doctors and a lawyer in the lock-up, either.

LEVIN: Well, no. I mean, I got to say, this -- you know, I've covered a lot of things with the medical board, and the medical board had been investigating it for a long time. And you know, a lot of times when things linger like this, it means that they just kind of peter out. And this one just came from out of the blue, all of a sudden, after months and months and months of investigation with apparently no progress. It seems to me something must have happened when they raided Kapoor's office to at least make them feel like they've unlocked this.

VAN SUSTEREN: All right. And of course, to repeat the breaking news, three conspiracy charges naming the defendants filed this afternoon, a felony complaint, an arrest warrant. They are variously -- there are various charges, eight other felony counts. Breaking news, Howard K. Stern under indictment in the state of California. And Harvey Levin of TMZ.com is on the phone with us, and Harvey, I know we'll continue to follow this. But stunning news out of California. Thank you, Harvey.

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