Latest Epstein accuser comes forward, says she was raped at age 15

This is a rush transcript from "The Story," July 11, 2019. This copy may not be in its final form and may be updated.

MARTHA MACCALLUM, HOST: I don't know how you bet on T-rexes. But I think the one in the middle looked pretty good. Thank you, Chris. Good to see you.

So, for nearly two years, Special Counsel Robert Mueller remained silent as his team worked to investigate Russian interference in the 2016 election. He released his report, it found no collusion. He emerged shortly after only briefly to make this point that he wanted to make about obstruction of justice.


ROBERT MUELLER, FORMER DIRECTOR, FEDERAL BUREAU OF INVESTIGATION: If we had, had confidence that the president clearly did not commit a crime we would have said so. We did not, however, make a determination as to whether the president did commit a crime.


MACCALLUM: But beyond that clarification, he made one thing extremely clear.

MUELLER: And we will not comment on any other conclusions or hypotheticals about the president. Any testimony from this office would not go beyond our report. I do not believe it is appropriate for me to speak further about the investigation. Now, I hope and expect this to be the only time that I will speak to you in this manner.

MACCALLUM: And you get the idea. But under great pressure to keep this story and the investigation from dying on the vine, perhaps, Chairman Nadler issued a so-called friendly subpoena. And Mueller agreed that he would appear publicly once to testify about the report and that is scheduled to take place on Wednesday.

But interestingly, the attorney general this week left an opening for the former special counsel. Saying, if he doesn't choose to appear, the DOJ will back him up on that choice. And now, Democrats are battling over who will get to speak at the hearing for how long each will get to speak and they're reportedly watching old Mueller testimony. And some, according to reports appear a bit concerned that he may not give them all that they want from this big moment on Wednesday.

In moments, Trey Gowdy, who knows a thing or two about these high stakes hearings. He says what we can expect may look a little bit like a freak show. Next week, he'll explain that. But first up, chief intelligence correspondent Catherine Herridge with more on the scramble to make this hearing worthwhile. Catherine?

CATHERINE HERRIDGE, CHIEF INTELLIGENCE CORRESPONDENT: Thanks, Martha. Tonight, there's a reason lawmakers on both sides of the aisle are upset about the Mueller testimony next week. As it stands, many junior committee members won't have the opportunity to ask questions during this historic session. And the frustration came to ahead earlier today.


REP. DEBBIE LESKO, R-ARIZ.: I don't even get a chance to question him. I've been elected just like anybody else here and for the leadership in this committee to decide that only certain members and there's only time for certain members to be questioned even on your side of the aisle.


HERRIDGE: The two Democrat-controlled House committees: Judiciary led by Jerry Nadler and Intelligence led by Adam Schiff have allotted two hours for a morning and afternoon session, a total of four hours.

Every lawmaker gets five minutes to question Mueller. And when you do the math, that means about two dozen lawmakers will be left out and then the time will run out. And that violates a long-standing practice known as House Rule XI, clause 2(j) that says, "Every member gets a shot at the witness for questions unless they pass or relinquish their time."

And today, Chairman Nadler would not explain how he's going to cut off Muller's testimony next week at just two hours.


REP. JERROLD NADLER, D-N.Y.: I have been very lenient in permitting people to discuss the procedures at the -- at the Mueller hearing with at length which is beyond the scope of this -- of this markup. But I'm not going to comment on it further.

UNIDENTIFIED MALE: This is my last opportunity reclaiming my time again, and I lost 30 seconds of it.

NADLER: Gentlemen will be granted his 30 seconds.

UNIDENTIFIED MALE: It is my understanding because this is the only markup that we're going to have before Mueller that us here on the bottom row are going to have the opportunity to bring this issue up in a public setting and talk about it.

So, I absolutely have the right to bring it up right now in this markup to talk about the fact that myself and my colleagues on the other side of the aisle, who aren't in the famous 11 that are going to get the opportunity to talk don't have the opportunity to ask questions to Bob Mueller, one of the biggest witnesses coming to this committee.


HERRIDGE: Republicans could use a number of tactics, Martha, next week to delay or run out the clock on Mueller's testimony. Especially during that morning session with the Judiciary Committee. And that would effectively derail the Democrats star witness, Martha.

MACCALLUM: Catherine, thank you very much.

So, here now former House Oversight Committee chairman and Fox News contributor Trey Gowdy. Trey, good evening to you. Why is there a limit on the amount of time? Is that something that was -- you know, requested in order for the agreement here to testify?

TREY GOWDY, CONTRIBUTOR: Yes, lots of -- lots of witnesses do that. Lots of witnesses say I'll come for two hours, you can ask me whatever you want this two hours, but then, I'm leaving. That's not unusual.

Martha, remember when Barr was coming about a month ago, Nadler wasn't even going to let any of the members question him. He was going to have a staffer no one's ever heard of. So, I don't know why the Democrat members are upset, at least, some of them are getting to get to ask Mueller something with Barr, he wouldn't going to let any of them talk.

MACCALLUM: So, when you did, when you oversaw the Benghazi hearings, it went on much longer. How were you able to negotiate that longer time period?

GOWDY: I remember -- Well, I mean, there was a little different fact pattern. She was running for president, obviously, she wanted to answer all of the questions. We enlarged the five minutes to 10 minutes because you can't do anything in five minutes.

And, you know, at the end, the media still said, we didn't learn anything new. Well, hey, you're not going to learn anything new next Wednesday anyway. One of the -- one of the House members you've just played a clip from, I can't help but that's one of the most ludicrous arguments I've ever heard.

There are 435 members of the House. 90 percent of whom are not on Intel or Judiciary. They're not going to be able to ask any questions on Mueller. So, the fact that you've been elected to the House does not mean you get to question Bob Mueller. And don't even mean you get to be on the Judiciary Committee or the Intel Committee.


MACCALLUM: So -- no, it's true.

GOWDY: So, there are -- there a handful of good questioners on both sides, but only a handful. And our Republicans going to be -- and we're going to be really strong having poor questioners not be able to take their five minutes with Bob Mueller. Trust me we're going to be fine.

MACCALLUM: And most of them spend most of their five minutes -- you know, formulating a question before they even allow someone to answer anyway. So, I would imagine there's going to be a fair amount of that. When you, you know, look at Bob Mueller himself and this interesting comment that was made by Attorney General Barr about, you know, if he decides not to go, we would support that.

Do you think there's a chance that Robert Mueller is considering maybe taking a pass on this whole thing?

GOWDY: Well, his -- he doesn't want to come at all. Remember -- he -- yes, he said much in the last two years, one thing he said pretty clearly was I hope this is my only public statement. So, they're bringing him -- they want to keep the story alive he's not going to participate in that. He's not going to answer anything outside the four corners of his report.

So, this is just to have a daylong -- so, the focus are beyond the questions. If Mueller is not going to give you any interesting answer, I have quizzed him before.


MACCALLUM: Yes, but, you know, Republicans are going to -- I would imagine --


GOWDY: It's not -- it's not going to be boring.

MACCALLUM: Pardon me. Republicans, I would imagine are going to want to know, you know why he didn't look into the origins of the investigation, all of those kinds of questions. When did he know, at what point did he conclude that there wasn't any collusion and why didn't he, you know, come forward with that information? Isn't that what we're likely to hear from Republicans?

GOWDY: Sure. And this will be his answer. Why did not looking anything else because it wasn't asked who, when did I conclude there was no collusion when I interviewed the last witness?

MACCALLUM: Yes, and that will be that.

GOWDY: That's it.


GOWDY: Mueller is a marine, former FBI director, he's not -- he is going to answer the question maybe and nothing more. You will learn nothing next Wednesday except a lot of my former colleagues think they're great questioners and think that they should have their five minutes.

MACCALLUM: All right, you know, we'll talk about this more as we get closer to it. I do want to take a look with you because you are a South Carolinian. At this South Carolina poll that shows Joe Biden, at least, at this point in very good shape in South Carolina. 35 percent among Democratic voters there. Sanders at 14, Harris at 12.

She would very much like to have a strong show in there among African- American voters in South Carolina, he's at 41 percent. Talk to me about the -- you know, strong affection for Joe Biden in South Carolina, at least, at this point.

GOWDY: Well, I think Democrats in South Carolina are very familiar with him. He's called a lot, he eulogized Strom Thurmond. He's worked with things -- worked with Lindsey Graham in the past. So, he's a known commodity. I think as my fellow South Carolinians who vote in the Democratic primary get to know Senator Harris and Senator Warren and Tulsi Gabbard and others.

His numbers will come down, but look, people like him. I'm not going to vote for him but people like him. And likability still matters in politics. You put your finger on it, you have to do well with communities of color and the Democrat primary in South Carolina. But he was the vice president to the most popular politician of color the country has ever known, in Barack Obama. And you better believe he will remind people of that.

He was very loyal to President Obama when lots of other Democrats were kind of flirting with the Clintons.

MACCALLUM: That's true.

GOWDY: I think black voters in South Carolina will remember that.

MACCALLUM: Thank you, Trey. Good to see you tonight. Trey Gowdy.

GOWDY: Yes, ma'am.

MACCALLUM: We'll talk to you as we get closer to this big thing on Wednesday, lots more to talk about with regard to that. Good night, thanks for being here.

Coming up next for all you folks still at home this evening, watching. Coming up next, Alexandria Ocasio-Cortez, getting slammed on both sides of the aisle for pulling the race card in her feud with Speaker Nancy Pelosi. House Republican Conference chairwoman Liz Cheney, wants to respond to this, this evening. She's coming up.

Also, a story exclusive with the Republican candidate for governor in Mississippi. Have you heard about this? He is labeled sexist for not allowing a female reporter to ride along with him for a day covering his campaign.


ROBERT FOSTER, R-MISS., GUBERNATORIAL CANDIDATE: This is my truck, and in my truck, we go by my rules.

JOHN BERMAN, ANCHOR, CNN: OK, we understand.

FOSTER: And that's my rule.




REP. NANCY PELOSI, D-CALIF.: We respect the value of every member of our caucus. The diversity of it all is a wonderful thing. Diversity is our strength, unity is our power. And we have a big fight and we're in the arena and that's all I'm going to say on the subject. If you want to raise your question, you can raise your question.


MACCALLUM: That's all she has to say. This has been quite an interesting and very spicy back and forth here as she responds to criticism from members of her own party who are now suggesting that their feud with the Speaker is connected to the color of their skin.

Freshmen Congresswoman Alexandria Ocacio-Cortez telling the Washington Post "I think -- I kind of thought that she was keeping the progressive flank at more of an arm's distance in order to protect more moderate members which I understood. But the persistent singling out, it got to a point where I thought it was just outright disrespectful, the explicit singling out of newly elected women of color," said AOC as she is known.

Here now House Republican Conference Chairwoman Liz Cheney. Good to see you this evening, Chairwoman. Thank you for being here. What's your reaction to what's going on there?

REP. LIZ CHENEY, R-WYO.: Well, thank you for having me, Martha. I think what you're watching is really the unraveling of the Democratic Party as we've known it in the past. You have a situation where you've got this very radical wing of the House Democrats and the Speaker has attempted many times to try to sort of keep everybody under control by -- in the past moving very far left and you see now that that's not working for her.

But what you do have is a situation where the Democratic Party both here in the House, as well as the candidates that they've put up for president, has become a party of socialists. They become a party they're advocating this far left set of positions.

And you know, I think on some level Speaker Pelosi knows that those are not positions that the vast majority of the American people agree with. She knows that the vast majority of American people do not want to give free government-provided health care to all illegal immigrants. But we know that is what the Democrats in the House, many of them want to do. We know it's where the Democratic presidential candidates want to do.

And so she's in a very difficult situation but she's dealing with a situation where they've just -- she's being dragged, the whole party is being dragged very far to the radical left fringe.

MACCALLUM: Well, you know, it's interesting that this conversation because Alexandra Ocasio-Cortez said today she do not -- she does not believe that Nancy Pelosi is racist, and yet there is this poll towards the identity politics of this by the bringing that up, it's a very loaded weapon to bring that up in many ways.

And here is Representative Jayapal who backs Alexandria Ocasio-Cortez. She says we women of color have faced this for such a long time. We're in a body of mainly old white men, you don't get to be here without having dealt with that most people. What do you make of that?

CHENEY: Look, I think we all have an -- have an obligation and a responsibility to our constituents, to the people who sent us here, to the American people to make arguments, to make our case, to stand for what we believe in based on substance, based on policy. We all have the responsibility to debate based on standing up for facts.

And I think that falling back into identity politics too often is an excuse for not standing up for facts and substance. On the Republican side, you will see us make sure and I can tell you this is the Republican Conference chair, someone who's responsible for a large part of our messaging that we're going to be having these debates based on substance.

We know that the American people do not want this to be a socialist nation. The problem on the Democratic side is a lot of them do want it to be a socialist nation. They don't understand fundamentally that when you give government the amount of power they want to give the federal government, you're taking people's freedom away. We won't let that happen on our side of the aisle.

MACCALLUM: I thought it was very significant that Alexandria Ocasio-Cortez went after DHS. She obviously believes that they have had policies that she finds very disturbing in terms of the way that families are being treated on the border. They have pushed back strongly on that notion in terms of how they're doing their job down there.

But she then said that she thought that the creation of DHS in the early 2000s, and she doesn't mention 9/11 when she talks about this, but she says that it was an egregious mistake on the part of the Bush administration. What's your response to that?

CHENEY: It's just fundamentally irresponsible, uninformed. The Department of Homeland Security is comprised of approximately 22 agencies. They have hugely important cybersecurity responsibilities, intelligence security responsibilities, the Coast Guard, the Secret Service, FEMA, all of those are part of the Department of Homeland Security and part of the hugely important mission that department has, and the hundreds of thousands of professionals who staff that department.

I did note that when Congresswoman Ocasio-Cortez talked about its creation, she failed to mention 9/11. That's pretty much something that we see consistently frankly on their side of the aisle, a lack of a willingness to recognize what the nation went through, the worst attack in our history, and the fact that we put the Department of Homeland Security together to help ensure the security of the homeland.

It was one thing when they were out there saying they were going to abolish ICE. That in and of itself is absurd and irresponsible enough. But now for congresswoman Ocasio-Cortez who frankly seems to be emerging is one of the intellectual leaders of their party in the House and I think that tells you that it's a pretty low bar, but that she has been in a situation where she's now saying we should just abolish DHS. That's just absurd and dangerous and highly irresponsible.

MACCALLUM: Chairwoman Liz Cheney, thank you very much. Good to have you with us tonight.

CHENEY: Thank you, Martha. Good to be with you.

MACCALLUM: Coming up still ahead --

JENNIFER ARAOZ, ACCUSER OF JEFF EPSTEIN: I don't want to say I was screaming or anything of that nature but I was terrified and I was telling him to stop, please stop.


MACCALLUM: Incredible interview. We are about to talk to that woman Jennifer Araoz's attorney who is accusing Jeffrey Epstein of rape. Also, the Republican candidate for governor who says that not allowing a female reporter to ride along with him throughout the campaign day is his prerogative. He will join me --


FOSTER: This is my truck and in my truck, we go by my rules and that's my rules.



MACCALLUM: He's up next.



LARRISON CAMPBELL, REPORTER: Why is it my responsibility to make you feel comfortable? Why is the onus on me to bring someone along? Why does it appear improper for a man to be with a woman?


MACCALLUM: Local reporter Larrison Campbell calling out Mississippi gubernatorial candidate Robert Foster as sexist because he would not allow her to cover an all-day campaign event in and out of the car, making stops in different places unless she brought along a male to accompany her.

Foster says that he follows the Billy Graham rule and wouldn't want something to be wrongly perceived or compromised his marriage. Here he is standing by his decision.


FOSTER: I trust myself completely but I don't trust the perception that the world puts on people when they see things and they don't ask the questions, they don't look to find out the truth. Perception is reality in this world and I don't want to give anybody the opinion that I'm doing something that I should not be done.


MACCALLUM: So the state representative stands at about eight percent in the latest polls for the Mississippi governor's race Republican primary. Robert Foster joins me now in a STORY exclusive. Mr. Foster, thank you for being here tonight. Good to have you with us. I guess my first question for you would be how does having a reporter with you for the day traveling in and out of a car, how does that evoke suspicion?

FOSTER: Well, like those are stated before -- and first thank you for letting me having me on here tonight. I appreciate this. We're running a grassroots campaign. It's a David and Goliath situation here. And there have been many polls, a lot of straw polls and online polls that show a different scenario than the one that has -- that you've stated about earlier but we do have a very small budget in our campaign compared to some of our other opponents who are funded by millions and millions of dollars of special interest funding and I don't have the largest campaign staff.

In a lot of cases, it's myself traveling to some events alone and my campaign director goes with me when he can. There's a lot of opportunities in times when he has to go and be at other places --

MACCALLUM: No, I understand that. I understand that you thought that you might be with this reporter throughout the day and it might just be the two of you. What I don't understand is why that would evoke suspicion? Why would that evoke suspicion?

FOSTER: Well, when you have a married man with another woman and they're alone, some people may perceive that is that there may be something taking place and I don't want to give anybody the opportunity to think that there's anything going on that shouldn't be going on.

MACCALLUM: But she's a reporter. You know, this is a professional situation. Her other colleagues had gone along on various -- on the exact same assignment with the other people that you're running against. You know, I mean, I respect that you want to protect your reputation and your marriage but you know, having watched the interview that you both did, I just -- I find it very difficult to understand why that situation would evoke suspicion in anyone.

I think people are quite used to seeing professionals on the campaign trail, members of you know the press, people who are campaigning. And if you felt that way -- you know, in terms of perception, you know, you talk about how powerful perception is, right. That's one of your concerns right?

FOSTER: Sure. Well, first of all, I think it needs to be noted that this was not just her following me and her own vehicle from campaign stop to campaign stop. She was requesting to ride in my vehicle and my truck with me for an entire day 15 to 16 hours, and I think that's a very unique request. I've done many interviews with many reporters, male, female alike and that's not an issue.

MACCALLUM: Well, there's a lot ride-along reporter interviews. I mean, it happens all the time. I've done to myself. You know, is that that is not an unusual format, you know, the ride-along for the day campaign format.

You know, I guess one of my questions is the perception that you are concerned about. Does it not concern you that that the perception of some people would be that you're discriminating against half of the professional population?

FOSTER: It doesn't, because their feelings and their concerns about being discriminated against Donald Trump my vow to that I made to my wife and my belief that I should not be alone with another woman that I'm not married to. And I put that first and foremost above anyone else's feelings or perceptions.

MACCALLUM: So, you said to her that she had to bring someone along as a sort of a, I guess a chaperone or something to ride along into cover your campaign for the day. And she was questioning why, if you are the one who feels that way, why wouldn't you bring someone along? You know, even your wife, or a friend, or, I know you said you have a very small campaign. But that was an option that you could've employed.

FOSTER: Well, we never got to that point. She writes the story, she got offended by me even asking that there be a third wheel in the vehicle with us and first of all, she is the one that asked me for the interview. I didn't ask her for the interview, so why should I have to pay out of my pocket or go out of my way to make accommodations for her to have some, you know, for a third person to be there?

I would have worked that out and still can in the future, but at the moment, it was a situation where we didn't have anybody for that period of time on hand for a 15, 16-hour day to ride with us and it could be worked out in the future, absolutely.

MACCALLUM: I understand -- I think that, you know, a lot of people respect the idea that you don't want to be in a situation that might appear a certain way and certainly on the campaign trail, you know, there is a lot of interaction and I think being respectful of your marriage obviously is all your choice. I mean, it's absolutely your choice as you ran your campaign.

But I just think it raises questions, people say, you know, why would it not be understood as just, you know, a professional situation? If you would be comfortable with a male reporter riding alone with you in a car all day, you know, there are people who might say, what is he doing with that guy? Why doesn't that concern you?

FOSTER: Well, I'm a married man and I made a vow of my wife that I would not be alone with another female and she made the vow that she would not be alone with another male and that is my personal decision to live that way.


FOSTER: I've lived that way my professional and personal life.

MACCALLUM: So, the state treasurer is running for attorney general, she is a woman. If you are elected governor would you not ride in a car or travel with the attorney general?

FOSTER: We would have a staff member or two with us, I'm sure.

MACCALLUM: So, you wouldn't feel comfortable riding --


FOSTER: At that point I would have a staff.

MACCALLUM: -- with the attorney general if she is elected? You wouldn't feel comfortable with that? You would want someone else?

FOSTER: I wouldn't do that. It doesn't matter who the other woman is, I mean, I always have if we are going to ride in a car somewhere together there would be a staff member or a driver. The governor has got a driver so that solves that issue.

MACCALLUM: All right. OK, interesting situation. And we'll be -- we'll be watching how it evolves. You know, what is the feedback been generally, positive or negative in Mississippi towards this situation?

FOSTER: I think overwhelmingly the people in Mississippi stand with me on this. It's not a new practice. People have been practicing this for a very long time. Billy Graham himself, Vice President Mike Pence practices a very similar scenario.

A lot of professional men and women alike have an open-door policy in meetings and do not ride alone with a member of the opposite sex. That is not a new concept. In fact, I think it's something very serious that people ought to be looking at in their own professional lives as maybe they ought to do that as well.

MACCALLUM: All right. Robert Foster, thank you for sharing your thoughts on that with us tonight. Good to speak with you, sir.

FOSTER: Thank you.

MACCALLUM: You bet. Coming up next.


What hurts even more so is that, if I wasn't afraid to come forward sooner then maybe he wouldn't have done it to other girls. I feel really guilty to this day. I feel like (Inaudible).


MACCALLUM: Coming up, a story exclusive with the attorney for Jennifer Araoz who said that she was raped by wealthy sex offender Jeffrey Epstein when she was just a 15-year-old girl.


MACCALLUM: So tonight, Jeffrey Epstein's lawyers are seeking a $77 million bailout package for their client, the accused child sex trafficker as new accusers detailed very disturbing allegations against him.

Jennifer Araoz alleges that she was just 14 when she was first approached and met him and then when she was 15, she claims that she was raped by Jeffrey Epstein, which is very contrary to what he has discussed about this whole thing in the past.

In moments, we will be exclusively joined by her attorney but we begin with chief correspondent Jonathan Hunt with the back story on this tonight. Good evening, Jonathan.

JONATHAN HUNT, CHIEF CORRESPONDENT: Good evening, Martha. Jennifer Araoz says she was 14 years old when a woman approached her outside her performing arts high school and told her about Jeffrey Epstein. Describing him as a caring man who could help her achieve her dreams.


ARAOZ: That he just a great guy. Just saying, like, you know, he's helped me. I've struggled. Like she was similar to me.

UNIDENTIFIED FEMALE: Did she say he could help you with your career?

ARAOZ: That was a big part of it.


HUNT: Araoz said she visited Epstein and gave him massages and then when she was 15 years old, Epstein raped her.


ARAOZ: And he, you know, very forcefully kind of brought me into the table, and I just did what I was -- what he told me to do. I was really scared. I was terrified and I was telling him to stop.

UNIDENTIFIED FEMALE: Did Jeffrey Epstein rape you?

ARAOZ: Yes. He raped me. He forcefully raped me. But knew exactly what he was doing and I don't think cared.


HUNT: Araoz said she didn't come forward sooner because of feelings of shame and guilt.


ARAOZ: I just thought like, you know, it's my fault. Like, I was like, obligated, like that is just what you are supposed to do. So, I really didn't know about it.

UNIDENTIFIED FEMALE: When did you stop blaming yourself?

ARAOZ: It was a long time, really.


HUNT: Araoz says she never return to Epstein's mansion after the allege rape, and even left her high school because it was so close by. Martha?

MACCALLUM: Such a heartbreaking interview. Jonathan, thank you very much. Here now in a Story exclusive is Daniel Kaiser, he represents Jennifer Araoz. Were you proud of your client? That was a tough thing for her to do.

DANIEL KAISER, JENNIFER ARAOZ'S ATTORNEY: Incredibly proud of her. I mean, this was -- this was a very difficult thing. You know, to summon the courage to put yourself in front of cameras and tell a story like that, it is an unbelievable thing.

And you know, she is emotionally exhausted from it but she is mostly really proud of herself and really, really thankful that she had the courage to do it because she's now sees herself as a role model for others. Not just other Epstein victims, which is important, but just victims of child sex abuse, generally. So, it's been freeing for her in that respect to come forward and tell a story.

MACCALLUM: This felt so courageous of her at that point to do what she did. Never coming back and removing herself from the situation completely after he raped her. She dropped out of the school that she loved, which was a performing arts school, but it was too close to his house so she removed yourself from the situation.

Here she is talking about the part that I find almost as appalling in all of this. These women who recruited these young girls. Watch this.


ARAOZ: She was definitely trying to get to know me, trying to find out, you know, where I was from, where I grew up, you know, who I lived with.

UNIDENTIFIED FEMALE: And when you think of her now, you used the phrase you said the recruiter. And you felt like she was --


ARAOZ: For sure.

UNIDENTIFIED FEMALE: -- looking for someone for him.

ARAOZ: One hundred percent, yes.


MACCALLUM: We have some pictures of some of these alleged recruiters that we can put up on the screen. And, Daniel, do you know? Does she know if one of these women is one of the women who approach her on the street in front of her school?

KAISER: Yes, she hasn't been able to identify by name the recruiter yet. I mean, she was 14, this was a long time ago. I mean, she knows generally that the recruiter was in her early 20's, brunette, that's her memory.

Remember, you know, when you -- to follow up with what you just said, we all know that Mr. Epstein is an evil guy, right, we can all agree on that. But there were a network of adults around Mr. Epstein that enabled this from the very powerful, who were able to, because of their political connections and money, were able to protect him.

But from the not so powerful. The secretaries, the recruiters, the people in his life that knew full well what was going on and they facilitated this abuse. So, while it's clear that Mr. Epstein needs to be held responsible, there's culpability for all of those around him as well.

MACCALLUM: And how is that going to play out?

KAISER: Well, you know --


MACCALLUM: Are they going to --

KAISER: Well, we'll see. I mean, you know, there's this our civil (Ph) litigation, and part of our civil (Ph) litigation is to attempt to identify some of these individuals by name and we intend to hold them accountable civilly, as best we can.

There is obviously the Southern District of New York criminal prosecution, I'm sure they are looking to identify these individuals as well. But, you know, that's the -- you know, that's what we have to look at as a community. You know, guys like this are able to do what they do because there is a community around them that are -- that is facilitating this kind of abuse.

And so, you know, that's the story that still needs to be told, and I hope that Jennifer's case, the accompanied criminal cases are able to tell that story because they need to be held accountable as well.

MACCALLUM: Yes. These women talked about other women who put $300 in envelopes and left it on the table for 14 and 15-year-old children. And as someone pointed out today, I thought this is a great point, there is no such thing as a child.

KAISER: No, no.

MACCALLUM: No child chooses to be a prostitute.

KAISER: Jeffrey Epstein doesn't get absolved for his crimes because he leaves an envelope of cash for them to take when they leave. These are babies, 14 years old, freshman in high school? These are babies.

MACCALLUM: Yes, I think part of the crime --


KAISER: OK? So, to say that --

MACCALLUM: -- luring these girls who --

KAISER: -- to say this is prostitution is just -- is just an unconscionable outrageous way to defend against his allegations.

MACCALLUM: Well, Daniel Kaiser, thank you very much for coming in. It's good to meet you, and we'll be following “The Story” closely.

KAISER: Thanks for having me.

MACCALLUM: You bet. Thank you for being here.

MACCALLUM: So, in a booming economy, why are cities like New York and Los Angeles and San Francisco seeing a surge of homelessness? It's an important question. What is going on in these cities in the midst of this booming economy?

Secretary Ben Carson is on a mission to change that. He is here exclusively next on THE STORY.


MACCALLUM: This week, the city of Austin implemented a controversial new policy allowing the homeless population there to camp and sleep and panhandle on the public streets without getting a summons or any kind of pushback. The city's Democratic mayor very much behind this decision but the Republican Governor, Gregg Abbott, not so much.


GOV. GREG ABBOTT, R-TX: We are monitoring, primarily health and safety- based issues. The bottom line is that almost any strategy is superior to allowing people to camp out on places like Congress Avenue.


MACCALLUM: But Austin is just one of several cities across America that has experienced a surge in homelessness. In the city of Los Angeles, homelessness is up 16 percent in the past year. In San Francisco, it is up to 17 percent. These images are from Los Angeles, and the San Francisco numbers since 2017 up 17 percent.

Here now is an exclusive on “The Story,” is Housing and Urban Development Secretary, Ben Carson, who has today been touring local programs across the country as the Trump administration works to end homelessness in America. Great to have you with us, Secretary Carson this evening. Tell us what you've seen --



MACCALLUM: Good to have you. Tell us what you've seen on the streets today.

CARSON: Well, I actually saw some very positive things on the street today. I was in Salt Lake City at Welfare Square, which is something that is sponsored by the Mormon Church and they provide all kinds of wraparound services to help people to be able to accelerate and to be successful.

Clothing, food, job opportunities, all those kinds of things. The kinds of things that we really should be concentrating on. But you know, when we get to this issue of homelessness, where we are seeing the most homelessness are in places that have the most regulation.

You know, as a physician, I like to go directly to the source of the problem and not just treat the symptoms. A lot of the things that we complain about are the symptoms, but what is the root cause?

And the places where we see the most homelessness have the largest numbers of regulatory barriers, zoning restrictions and things like that. Now the good thing is that a lot of places are willing to recognize that and to start working towards solutions.


CARSON: You know, Seattle for instance, has instituted a block program where they put in tiny houses. Mayor Garcetti has recently relax the restrictions on accessory dwelling. But you know, these are small steps but they are beginning at least to recognize what the problem is.

MACCALLUM: Right. You know, why do you, what's the reason, I think a lot of people say the economy is doing so well, unemployment is so low, and the overall homeless numbers in the country over the last several years are fairly -- are fairly static. But these certain cities are seeing this tremendous increase in the number of people who are sleeping on their streets. So why is that?

CARSON: Yes. Well, recognize that the zoning restrictions, for instance, in Los Angeles, 80 percent of the land is zoned for single-family housing, and then you throw on top of that the other regulatory barriers, the latest of which is they have to have solar panels.

You take something that was affordable and you quickly translate it into something it isn't. When we're talking about single-family new construct, we are talking about 25 to 27 percent increase in the cost. For multifamily you're talking 32.1 percent up to 42 percent in the more expensive areas.

Those are things that elevate things completely out of the range of a lot of people. And it's not that we don't have innovation going on in this country, we do. A few weeks ago, on the National Mall, we had many people come in and demonstrate what they are capable of doing in terms of manufactured housing, modular housing, 3D print housing --


MACCALLUM: I mean, providing affordable housing is definitely --

CARSON: -- tiny houses.

MACCALLUM: -- a good step in the right direction. Before I let you go, what is your understanding of what causes homelessness? You know, what is it that is putting most of these individuals on the street? Is it mental health? Is it drug addiction? Is it, you know, inability to pay their bills? What is driving it?

CARSON: Well, bear in mind that there are a lot of places for people to go who are homeless. We have a tremendous amount of sympathy for them and shelters are available for most people. But there are a lot of people who are suspicious, who don't trust anybody, who have mental health issues, and in some cases, who are not willing to move, you know, from an area that would not be friendly to them in terms of employment. To a place that would be.

So, all -- but, here's the key thing. This is a solvable problem. You know, there are cities that are bigger than any city that we have like Tokyo where there is no homelessness. You know, we have to start using much more intelligent strategies and that's exactly what we are trying to do right now.

MACCALLUM: All right. We will be watching what comes out of HUD. And thank you, Secretary. Good to see you tonight. Thanks for -- thank you for being here.

CARSON: OK, you, too.

MACCALLUM: So, moments ago, a hurricane warning was issued for parts of the Louisiana Coast. Rick Reichmuth with the very latest moves of this storm coming up next.


MACCALLUM: Breaking right now, we've got a hurricane warning that has been issued for parts of Louisiana. It's tropical storm Barry threatens the Gulf Coast tonight.

Fox News chief meteorologist Rick Reichmuth tracking it for us. Rick, thanks for being here tonight. What are you seeing in all of that?

RICK REICHMUTH, METEOROLOGIST: You bet. It's such an interesting storm for us. Each tropical system kind of has its own thing that we watch. It's when, obviously, the hurricane warnings are in place, that's interesting and important.

But the bigger context for what's going on, you see all that red there, that's the Mississippi River watershed. Any piece of -- any drop of water that falls anywhere in that area, if doesn't evaporate or gets absorbed into the ground eventually exits the Mississippi River right down at the mouth right by Louisiana.

Because of that, we have seen record-breaking rain all across that area. We've been talking about flooding for months and months and all that water is still in the Mississippi River.

So, the Mississippi River level is at about 16 feet at New Orleans and the level -- the levees are only 20 feet. So, you only about four feet of space of water to go in and we're talking about maybe a three to four feet storm surge there and a lot of water that's going to fall in rain.

So, we're not probably talking about a big wind event that we're going to deal with, we are going to talk about a major flooding event from all the rain that we are going to get over the next days, Martha.

MACCALLUM: wow. That is a nerve-racking situation --


MACCALLUM: -- for the folks who are watching those levees. Rick, we'll be watching with your help. Thank you very much.


MACCALLUM: That's “The Story” on this Thursday night. Thanks for being with us. We'll see you back here tomorrow night at 7:00. Have a great night, everybody.

Tucker Carlson is coming up next.

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