What did Hillary Clinton know and when did she know it?

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What did Hillary Clinton know and when did she know it?

New bombshell information emerges from unredacted Grassley-Graham memo; panel debates on 'Hannity.'

This is a rush transcript from "Hannity," February 6, 2018. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: Hey, Tucker, thank you.

In my hands tonight, vindication. Breaking right now this hour, blockbuster developments. Now, key parts of the second memo from Senator Chuck Grassley and Senator Lindsey Graham have now, right here, they have been unredacted. The information is beyond stunning. It offers more evidence, more proof that the FBI lied to the FISA court to get the warrant to spy on the Trump campaign and it was the bulk, the biggest part of their application.

Now, we're going through this all very slowly tonight. That's our breaking news opening monologue.

(MUSIC)

HANNITY: Right in my hands, brand new at this hour, bombshell revelations from the Grassley-Graham memo, major parts -- this is the memo from yesterday -- have now been unredacted, huge parts yesterday.

Now, the memo was providing further evidence that the FISA court was lied to by the FBI in order to get a warrant to spy on the Trump campaign and there's new information that Christopher Steele may have lied to the FBI about briefing media outlets. There's a lot to cover. We're going to go through it slowly. We'll do it together.

Now, the memo starts with this -- this is page one of the memo right here. "On the face, the dossier, it appears that Mr. Steele gathered much of his information from Russian government sources inside of Russia and according to the law firm Perkins Coie, Mr. Steele's dossier related efforts were funded through Fusion GPS by that law firm on behalf of the Democratic National Committee and the Clinton campaign."

Let's pause here. Hillary Clinton is paying Steele to spread Russian lies and Russian propaganda. I'll read it again because this is important. "Much of the information from Russian government sources inside of Russia." Isn't that what the media has been investigating for the better part of a year here? Oh, so keep that in mind as we move forward.

Here's another key portion: it appears that either Mr. Steele lied to the FBI or to the British court that the classified documents reviewed by the committee contain materially false statements.

And then the memo goes on to read, "In response to the committee's inquiries, the chairman and ranking member received briefing. March 15, 2017, from then-Director James Comey." Then the memo goes on to say, "That briefing addressed the Russia investigation, the FBI's relationship with Mr. Steele and the FBI's reliance on Mr. Steele's dossier in two applications that it filed for surveillance under the Foreign Intelligence Surveillance Act. Then, March 17, 2017, the chairman and ranking member were provided copies of the two relevant FISA applications which requested authority to conduct surveillance of Carter Page. Both relied heavily on Mr. Steele's dossier claims and both applications were granted by the foreign intelligence court. In December 2017, the chairman, ranking member and subcommittee Chairman Graham were allowed to review a total of four FISA applications relying on the dossier to seek surveillance of Mr. Carter Page as well as numerous other FBI documents related to Mr. Steele."

Now, the next paragraph -- this is interesting, this is highly redacted here, I wonder what's in that. Then the following paragraph, follow along: Similarly in June of 2017, the former FBI Director Comey testified publicly before the Senate Select Committee on Intelligence that he had briefed President-elect Trump on the dossier's allegations in January -- when he was president-elect just before he's sworn into office -- January 2017, which Mr. Comey described to then President-elect Trump as salacious and unverified.

"When asked at the March 2017 briefing why the FBI then relied on the dossier in the FISA applications absent meaningful corroboration and in the light of the highly political motive surrounding its creation, then Director Comey stated that the FBI included the dossier allegations about Carter Page in the FISA applications because Mr. Steele himself was considered reliable due to his past work with the FBI."

Now later on that page, the memo reads, it goes: "The bulk" -- pay close attention -- "the bulk of the FISA application," put that back up on the screen, "consist of allegations against Page that were disclosed to the FBI by Mr. Steele and also outlined in the Steele dossier." The application appears to contain no additional information corroborating the dossier allegations against Mr. Page, although it does cite to a news article that appears to be sourced to Mr. Steele's dossier as well.

Let's just stop right here. The entire bulk of the FISA application came from the dossier. This dossier, well, they're relying on a guy that was being paid for by the Clinton campaign and by the DNC funneling the money, Fusion GPS got the money through the law firm both the DNC and the Clinton campaign used. There was no verification of any of this, it was just based on the dossier. And the fact that they say, well, he was reliable in the past.

And then imagine this in October when they file for the first application for FISA against the Trump campaign, well, three months later in January, James Comey is saying that it's salacious and unverified. So, why three months earlier did they go before a FISA court and present it as the bulk of evidence. Do you see where we're going here?

Now, here's what page three of this memo says. "(Redacted), the FBI discussed the reliability of the unverified information provided by Mr. Steele in footnotes 8 and 18 of the FISA warrant application. First, the FBI noted a vaguely limited extent the political origins of the dossier."

Stop right there -- they knew it was funded by Hillary Clinton and the DNC. They never told the FISA court that important piece of information. I think the FISA court probably would have made a big impression considering this is the bulk of their case -- the dossier -- if it was coming from one campaign against another campaign in the lead-up to an election.

Now in footnote eight, the FBI stated the dossier information was compiled pursuant to the direction of a law firm who had hired and identified U.S. person now known as Glenn Simpson, Fusion GPS, then redacted. The application failed to disclose that the identities of Mr. Simpson's ultimate clients or the Clinton campaign and the DNC.

Why would the FBI in making a FISA application against an opposition party in an election year and knowing it's paid for by the Clinton campaign in the DNC, why would they not tell the FISA court judge? That to me is a serious omission and one that states there's a political motive behind all of this.

Now, let's just go back a little further. Remember, this is the same James Comey, this is the same FBI that in fact in spite of a mountain of evidence that Hillary Clinton mishandled classified information, destroyed and deleted 33,000 subpoenaed emails and then used acid wash and then BleachBit and then busted up you know different devices with hammers, the same people that kept her in the race are now working on her behalf again and they're doing it in this case by not telling the full truth of the FISA court.

We continue -- "The FBI stated to the FISA court that based on Steele's previous reporting and history with the FBI whereby Steele provided reliable information to the FBI, the FBI believes Steele's reporting to be credible." In short, it appears the FBI relied on admittedly uncorroborated information funded by and obtained for Secretary Clinton's presidential campaign in order to conduct surveillance of an associate of an opposing presidential candidate. It did -- these are -- this is -- right here in this, right here. It did so based on Mr. Steele's personal credibility and presumably having faith in his process of obtaining information.

Wow. They didn't tell the court any of this? They didn't tell the court where the money came from? They didn't tell the court they also knew at that time that Steele hated Trump because Trump -- because Steele mentioned it to Bruce Ohr. We'll get to that in a minute.

But there is substantial evidence suggesting that Mr. Steel materially misled the FBI about a key aspect of his dossier efforts, one which bears on his credibility, and it starts redacted. Yet, the FISA applications note the existence of a news article dated September 23, 2016, which in particular contained some of the same dossier information about Mr. Page compiled by Mr. Steel on which the FBI relied in its application.

While not explicitly stated, this is presumably the article written by Michael Isikoff of Yahoo News titled "U.S. Intel Officials Probe Ties Between Trump Advisor and Kremlin".

Now, "(Redacted), the application attempts to explain away the inconsistency between Steele's assertion to the FBI and the existence of the article apparently to shield Mr. Steele's credibility on which it still relied for the renewal request of the FISA application -- you got to renew it every 90 days. And it said, "Given that the information contained in the September 23rd news article generally matches the information about Page that Steele discovered doing his/her research, (redacted.)"

Now, stop for a second. So, they used the same information from the same person they presented to the court like they're two separate but yet corroborating pieces of information to put emphasis to the court, oh, see, we've got two sources. The only problem is the source of the Yahoo News article was the same source of the dossier is the same guy that didn't want Trump to win and is the same guy that was being paid by the Clinton campaign. This is so corrupt.

And here's what's on page four, got it right here, all of this, right here. In footnote nine of its January 2017 application -- this is the first renewal of the FISA warrant -- in this case for Mr. Page, the FBI again addressed Mr. Steele's credibility. This is three months later. Remember, that's the same January where James Comey told President Trump, it's salacious and it's unverified. So, that same month, they go in for a renewal.

Back to the document, the FBI noted that it had suspended their relationship with Mr. Steel in October of 2016 because of Steele's, quote, "unauthorized disclosure of information of the press." Now, the FBI relayed that Steele had been bothered by the FBI's notification to Congress in October of 2016 about the reopening of the Clinton investigation. Remember that happened just before the election.

And as a result, Steele independently and against prior admonishment from the FBI to speak with only the FBI on this matter, released the reporting discussed here in, dossier allegations against Page to an identified news organization. However, the FBI continued to still cite Mr. Steele's past work as evidence three months later of his reliability. At the same time, they're telling Donald Trump its unverified and salacious, and that incident that led to the FBI suspending their relationship with Mr. Steel occurred after steel provided the FBI with the dossier information described in the application.

Now, the FBI further asserted in footnote 19 that it did not believe that Steele directly gave information to Yahoo News that published this September 23 news article.

Now in the next paragraph, this is what it reads. "In defending Mr. Steele's credibility to the FISA court, the FBI had posted an innocuous explanation for the September 23 article based on the assumption that Mr. Steele had told the FBI the truth about his press contacts and the FBI then vouched for him twice more using the same rationale in subsequent renewal applications," you know, "filed with the Foreign Intelligence Surveillance Court in April and in June of 2017."

Now, here's the important part of page five. "The first of these filings was publicly reported in the U.S. media in April of 2017. Yet, the FBI did not subsequently disclose to the FISA court the evidence suggesting that Steele had lied to the FBI. Instead, the application still relied primarily" -- remember the bulk of the application is the phony Clinton bought and paid for dossier. Go back to-- scroll down, just a hair back up the other way. The bulk of the application. So, instead, the application is still -- we're now six months into this thing -- relied on his credibility even though the FBI knew he was not credible at this point, especially as it relates to the media incident, which pushed him out of the FBI's way in October, the same month the first FISA warrant was granted.

Now, here's what's on page six. "Whether Mr. Steele lied to the FBI about his media contacts is relevant for at least two reasons. First, it's relevant to his credibility as a source particularly given the lack of corroboration for his claims, at least at the time they were included in the FISA applications. Second, it is relevant to the reliability of his information gathering efforts. Mr. Steele conducted his work for Fusion GPS compiling the pre-election memoranda between June and early November 2016."

Now, there was this British litigation, these talks about it in the Grassley and Graham memo here tonight. Mr. Steele acknowledged briefing journalists about the dossier memorandum in late summer autumn 2016. Yes, he was the source for Isikoff.

Now, unsurprisingly during the summer of 2016, reports of at least some of the dossier allegations began to circle -- circulating among reporters and people involved in Russia issues. Mr. Steele also admitted in the British litigation to briefing journalists from the Washington Post, Yahoo News, The New Yorker, the shh-hole network, fake news CNN in September of 2016.

Simply put, the more people who contemporaneously knew that Mr. Steele was compiling his dossier, the more likely it was vulnerable to manipulation. In fact, in the British litigation which involves a post-election dossier memorandum, Steele admitted he had received and included it, unsolicited, unverified allegations. That filing implies that he similarly received unsolicited intelligence on these matters prior to the election as well, stating that Mr. Steele continued to receive unsolicited intelligence -- now pay close attention -- on matters covered by the pre-election memorandum after the U.S. presidential election.

Now, the next paragraphs redacted. It goes on: "One memorandum by Mr. Steele that was not published by BuzzFeed is dated October 19, 2016. The report alleges, (redacted) as well, (redacted), Mr. Steele's memorandum states that his company received this report (redacted) U.S. State Department, that the report was the second in a series and that the report" -- pay close attention -- "was information that came from a foreign sub source who is in touch with, (redacted), a contact of, (redacted), a friend of the Clintons who passed it to, (redacted.)

I love the redacteds here. It is troubling enough the Clinton campaign funded Steele's work but that now Clinton associates as we reported last night, were contemporaneously feeding Mr. Steele allegations, this raises additional concern about his credibility. Let's head to page seven.

"These facts appear to directly contradict the FBI's assertions in its initial application in October of 2016 for the FISA warrant, as well as subsequent renewal applications the FBI repeatedly represented to the FISA court that Mr. Steele told the FBI he did not have unauthorized contacts with the press about the dossier prior to October 2016." That's false. "The FISA applications make these claims specifically in the context of the September 2016 Yahoo News article but Mr. Steele has admitted publicly before a court of law that he did have such contacts with the press at this time and his former business partner, Mr. Simpson, had confirmed it to the committee. Thus the FISA applications are either materially false, in claiming that Mr. Steele said he did not provide dossier information of the press prior to October 2016, or Mr. Steele made materially false statements to the FBI when he claimed he only provided the dossier information to his business partner in the FBI."

And page seven continues, "In this case, Steele's apparent deception seems to impose significant material consequences on the FBI's investigative decision and representations to the FISA court and Steele's information formed a significant portion of the FBI warrant application, FISA application relied more heavily on Steele's credibility than on any independent verification or corroboration for his claims. Thus the basis for the warrant authorizing surveillance on a U.S. citizen largely rests on Mr. Steele's credibility, and the Department of Justice has a responsibility to determine whether Mr. Steele provided false information to the FBI and whether the FBI's representations to the court were in error."

A lot to absorb, but this is it. Joining us now, former deputy assistant to the president, Fox News national security strategist, Sebastian Gorka, Fox News contributor Sara Carter, FOX News legal analyst Greg Jarrett.

Let me start with you on the legal side. The bulk of the application -- what we didn't -- what they didn't add here which was in the Nunes House Intel memo, Steele before the election was known to hate Donald Trump. Very important key.

So, the bulk of information that the FBI gave to the FISA court was the steel dossier which we know was unverified, which Comey said in January to Trump was unverified, but they used it anyway.

GREG JARRETT, FOX NEWS LEGAL ANALYST: Right.

HANNITY: What does this tell you?

JARRETT: It tells you need a calculator to add up all the various crimes that were committed by the Department of Justice and the FBI. They concealed vital facts to the court. They deceived the judge in getting the warrant approval.

They knew that the dossier was phony, it was politically motivated. They knew that Steele was biased and untrustworthy and had lied. So, when they signed under penalty of perjury in front of the judge, that these are true and honest and credible documents, they were therefore lying, committing perjury.

And for every lie in these eight pages that you've identified, it's a separate crime.

HANNITY: Towards the -- it's a separate crime.

JARRETT: Yes.

HANNITY: James Comey committed crimes?

JARRETT: As I read this document, he deceived the court committing across.

HANNITY: So, the bulk of the warrant was based on unverified information bought and paid for by the Clinton campaign against an opposing candidate that they never corroborated?

JARRETT: That's correct. There is some --

HANNITY: Is that how things work?

JARRETT: It -- apparently, that's how the Comey FBI was working and the Department of justice and the Obama administration,

HANNITY: Sara, last night, you were talking about the redacted that redacted redacted names here, but information coming from the from Clinton campaign sources. I read it and I'd love to see the names in there and those redacted parts. I read it that Clinton friends and associates were feeding Christopher Steele information and he was running with it, and then that became part of the dossier which became the bulk of the FISA warrant.

SARA CARTER, FOX NEWS CONTRIBUTOR: That appears to be the case, Sean, and this is very concerning because not only was Christopher Steele informing other reporters, talking to other reporters on background, lying the whole way through but he was collecting information. Remember, by this point, the Russians probably and I've said this before already knew who was paying Christopher Steele who was paying Fusion GPS. They knew about the HRC campaign. They understood that the DNC was paying for this as well, and so they were feeding him these false allegations which he wasn't even corroborating which he was putting into this dossier.

And then twofold, to be taking information it appears from close friends of the Clintons -- and I have been told and I know other members of Congress have spoken this already -- from Sidney Blumenthal and others, Cody Shearer, and then using that information in the dossier to corroborate.

HANNITY: What about Comey's -- what about Comey's flimsy excuse, while he had given us good information in the past, doesn't -- before the FBI, Sebastian, goes, Dr. Gorka, goes before a FISA court applying to spy on an opposition candidate, they downplay who paid for it, they purposely hide that from the court. But don't they have some obligation to see if it's true at all beyond oh we like this guy, we work with them in the past?

SEBASTIAN GORKA, FOX NEWS NATIONAL SECURITY STRATEGIST: They have an obligation to verify that the information in the application for the warrant is legal.

Mark Levin said it right. With this document, it's proven that Hillary Clinton bought a warrant to spy on an American.

HANNITY: Stay on that thought. She bought a warrant. We'll pick it up. Our panel stays with us.

And much more. Wait until you see this tape of Congressman Adam Schiff, straight ahead.

(COMMERCIAL BREAK)

HANNITY: All right. As we continue with Sebastian Gorka, Sarah Carter, Gregg Jarrett are with us.

OK. Back to this unredacted Senate memo that just came out literally as we're coming on the air tonight. We're going through it with you at home as well.

All right. So, Hillary Clinton bought and paid for what they described and this is I think so important that it appears Mr. Steele gathered much of his information from Russian government sources inside of Russia. They funneled the money through this law firm Perkins Coie. Steele's dossier related efforts were funded through Fusion GPS on behalf of the Clinton campaign and the DNC.

Then, so -- it's a bought and paid for Hillary Clinton Russian government source document that then becomes not only to lie to the American people during the election, then we find out that Clinton associates, Dr. Gorka, are feeding even more information to Christopher Steele, the bulk of the FISA warrant we learned tonight was based on this entire Russian dossier and that it had unverified information it all turns out to be lies and Comey's answer is, well, we trusted him because we used them in the past, and they didn't verify it.

I know people in the FBI. This is not how the FBI operates. This is not how our intelligence operates. The 99 percent of good people that serve this country I am certain are livid about this tonight because this was an attempt to steal an election and then later as its renewed, it was an attempt to undermine a duly elected president of the United States.

And, by the way, to my idiotic, overpaid colleagues that call themselves journalists as they've been pushing a narrative that's been false for a year, they've missed the biggest story of their career, because now this is verified tonight. Dr. Gorka?

GORKA: This is the biggest story not of just their career but of modern politics. I want to put this into perspective and crunch everything down that you've said into a bumper sticker.

Watergate was the big, big story, yes for decades. A bungled burglary by some hired thugs, OK? This isn't a bungled burglary. Listen to the names: McCabe, deputy director, Peter Strzok, Lisa Page, Bruce Ohr, this is a conspiracy inside the Department of Justice, inside the FBI.

The largest redacted portion of the Grassley memo is about Bruce Ohr and his wife, and it discusses the fact that Bruce Ohr, senior DOJ employee, has a wife who works for GPS fusion who is working on the Steele dossier. Can we just let that sink in for a second?

HANNITY: The bulk -- the bulk of the application was the Clinton bought and paid for dossier.

GORKA: We have -- we have the people at the highest levels of federal law enforcement and the intelligence community and justice lying to get a warrant to spy on an American.

And let's talk about the most trench fact of all. This man who was spied upon is walking free today, which means, what? There was nothing there. This was about a political smear campaign against a Presidential candidate, Sean.

HANNITY: I can't believe this happened, Sara, in the United States of America. I cannot believe that this was allowed to happen. And the great irony is this is Russian paid for, Russian government propaganda and lies that she paid for and became the bulk of a FISA warrant to spy on an opposition Party candidate just prior to an election and an incoming President-Elect. What other evidence now do we need?

CARTER: I don't know. I mean, I think we need to dig deeper. I don't think it ends with Carter Page. This was the weaponization of our intelligence tools. Of our intelligence apparatus, and this needs to be thoroughly investigated. It should not end with Carter Page. And, Sean, one more point. The FBI knew, knew, according to all of the sources that I spoke with, they knew Carter and they knew that Christopher Steele lied to them. They knew that and they didn't pay him. Remember, they were going to give him a big bulk payment and they stop that. So they knew he was lying. Yet, they go to the FISA court and put in this application and they don't tell the court.

HANNITY: They don't pay him but they vouch for him. They don't mention to the FISA court how much Steele hates Trump. They never mention this was paid for by Clinton and her campaign and the DNC. They purposefully lying to a court, Gregg Jarrett. They are lying to a FISA court. FISA means ok, secret, top secret, and spy on American citizens. On this case a Presidential candidate, but all the information is coming from your opponent. Why bother to tell the Judge that part.

JARRETT: There were some chances. The FBI and the Department of Justice, to do the right thing and at every turn, time after time, they did the wrong thing.

HANNITY: Who is in legal jeopardy tonight, Gregg Jarrett?

JARRETT: Anybody who signed off on this FISA warrant under penalty of perjury. Anybody who represented themselves as an officer of the court and then committed a fraud on the court. When they first learned that all of this came from the Russians, experts on lies and deception, they should have said, Mr. Steele, goodbye and take your dossier with you.

HANNITY: The irony, real quick, we are running out of time. The irony of all of this is Hillary Clinton paid for Russian lies, Dr. Gorka and Sara.

GORKA: The collusion. Russian collusion is right here. It's right here. This is your Russian collusion. Hillary Clinton, her lawyers, the DNC and the DOJ under Obama. There it is, Sean.

HANNITY: Sara. That is the irony of all of this and the media betrayed the American people, a huge part of this story. They never had any facts. They hype it up. They breathlessly reported false information day after day, night after night.

CARTER: And I think now and hopefully now they start reporting the truth.

HANNITY: Don't hold your breath.

CARTER: That is what I hope for.

HANNITY: They will attack you. They will attack me, Gregg.

GORKA: Brian Stelter has surrendered, right?

CARTER: Facts are the facts.

HANNITY: Facts are the facts, great point. Gregg, we have got to roll.

People at the Department of Justice and FBI and eve those who left better have good criminal lawyers representing them. We need, if Jeff Sessions, we need a special counsel. We need it now. Read this report. When we come back, Dan Bongino, Lanny Davis weigh in. Then later Jessica Tarlov, Jesse Watters, you got to see this Congressman Adam Schiff got pranked by Russian comedians promising dirt on President Trump. I thought that was bad if you forget they offered dirt from Russia. That is next.

(COMMERCIAL BREAK)

HANNITY: Fox News chief national correspondent Ed Henry joins us. He has been going through this Grassley memo that has now been un-redacted. All right, Ed, from your side we went over a lot of it what caught your attention.

ED HENRY, SENIOR NATIONAL CORRESPONDENT: Sean, what's interesting as well is this is a criminal referral that Republican Senator Chuck Grassley last month had sent to the Justice Department about Christopher Steele. What would be the potential crime? Well, Grassley is saying in this referral that it would be that Steele may have lied to the FBI. Lied about his contact with the media. Yahoo news, and mother jones magazine, for example. Because this document, this Grassley memo is saying that Steele represented to the FBI that he had not talked to anyone in the media about the dossier. And so then the FBI took that, that he was reliable and he had not spoken to the media and went to the FISA court with the application to get a warrant for surveillance of Carter Page as we have been reporting.

Well, in this memo, Grassley says, quote, the FBI already believed Mr. Steele was reliable. He had previously told the FBI he had not shared the information with the press and lying to the FBI is a crime. Referring to the fact that Christopher Steele, despite representing that to the FBI, that he had not spoken to the media, did speak at least to Yahoo news and Mother Jones about the dossier and then those stories appeared on top of that the Grassley memo tonight now goes on to say that, in fact, the FBI then went back after learning that wait a second, Christopher Steele misrepresented things and did talk to the media. The FBI never disclosed that to the FISA court, Sean. So they kept going back for renewal of the surveillance warrant and didn't say to the court, according to Republican Senator Grassley's memo that, look, things have changed. We no longer think he is reliable. He lied to us. He spoke to the media. So that is a problem potentially for Christopher Steele. Potentially a crime for lying to the FBI, but also potentially another problem for the FBI, misrepresenting things to the FISA court, Sean.

HANNITY: Not to the rank and file. We always have to make that distinction. These are the few people at the top.

HENRY: Leadership went to the FISA court.

HANNITY: I'm just saying that, because I don't want to taint these guys that work to save our country every day. Great report. Ed Henry in Washington.

HENRY: Thank you.

HANNITY: Thank you for being with us. Joining us now former secret service agent Dan Bongino and also with us. I quoted his next book for years, tell the truth. Tell it all. Tell it early. Tell yourself. Well he is back, he got a brand new book Lanny Davis called the unmaking of the President 2016. How the FBI Director James Comey cost Hillary Clinton the presidency. I disagree with the conclusion. But you are a good writer. I love the book. Former White House special counsel Lanny to the President Lanny Davis. Here what happens we know in this case? We can't even argue politics, especially with the Clintons, because you just love the Clintons. But here's what we do know tonight and I think you will agree, actually. So we know that what they are reporting in the senate report is that Mr. Steele gathered much of his information from Russian government sources inside of Russia. We also know that Hillary associates, according to this memo tonight, also were feeding Steele information. We know that Steele was paid by Clinton and the DNC through the law firm. Then, we know the bulk of the FISA that was brought on Page and the Trump campaign was because of the Steele dossier. Not verified. Paid for by an opposition candidate. Unverified information. Did you ever hear of anything like this in your life?

LANNY DAVIS, FORMER PRES. CLINTON SPECIAL COUNSEL: I never heard of anything the way you described it in my life.

HANNITY: OK. But the reality is unverified information that came from Russia of all places, and that was paid for, Clinton paid for the dossier. That is a fact. It's indisputable. It's incontrovertible and then used to apply for a FISA warrant and became the bulk of the FISA application.

DAVIS: Let me get this straight. This theory is based upon upper level FBI management. Not the rank and file.

HANNITY: Not the rank and file, correct.

DAVIS: James Comey who literally wrote a letter 11 days from an election that I prove in my book cost him the presidency, this is a left wing conspiracy of FBI agents? Seriously?

HANNITY: Listen. With all due respect, this is a problem, because these are the same people Dan Bongino that overlooked her mishandling of classified information, her deleting of 33,000 emails. Acid washed, bleach bit and then busting up devices so that she could continue. They wrote an exoneration before an investigation. The investigation happened in July. They were writing the exoneration in May.

DAVIS: I will explain that if you want.

HANNITY: Dan.

DAN BONGINO, FORMER SECRET AGENT SERVICE: It's interesting by the way how Lanny never answers your question and immediately went to the conspiracy theory look at the red squirrel thing. Sean, let's stop calling it the Steele dossier. It's not. It's the Clinton dossier. The information if you read the memo tonight is damning. Hillary Clinton's team essentially hijacked the FBI and the DOJ to use it to launder information they were giving to a former British spy to get it in front of a Judge to spy on their political opponent. That is not in dispute anymore after tonight. Ok? The real conspiracy theory are people like Lanny calling it a conspiracy theory. We now know this happened. This is so deeply disturbing I can't believe he is not horrified by it.

DAVIS: But, wait a minute.

HANNITY: To get a warrant on opposing candidate with information paid for by the other candidate that is not verified, turns out to be Russian sources, I would think you want election integrity. That is what your book is all about. Why doesn't this bother you as much?

DAVIS: Well, let's start with the fact that there is a Republican Attorney General who is.

HANNITY: Recused himself.

DAVIS: Isn't exactly listening to you and a Republican deputy Attorney General who Donald Trump praised isn't exactly listening to you and Gregg and with all due respect to Dan. And what is a red squirrel? I'm not sure about your analogy. But I did I say that there is a need for due process? You guys convict people on the air rather than letting the facts come out.

BONGINO: You still didn't answer the question by the way.

HANNITY: I got to roll. Adam Schiff next.

(COMMERCIAL BREAK)

HANNITY: All right one of the MSE-NBC contributor anti-Trump crusader, Congressman Adam Schiff, he is so obsessed with proving Trump-Russia collusion a year and a half later this guy got prank so bad last year by Russian comedians pretending to have dirt on President Trump. Wait a minute, I thought that was wrong if the Russians have dirt you can't want it and ask for it and conspire to get it, can you? Listen.

(BEGIN VIDEO CLIP)

REP. ADAM SCHIFF, D-CALIF.: He was in Moscow in 2013. He met with a journalist.

UNIDENTIFIED MALE: Well, she is poor journalist but anyway, she became a famous because of Putin-godfather.

SCHIFF: Putin godfather, ok.

UNIDENTIFIED MALE: She is also known as person who provide us girls for escort for Oligarchs and she met with Trump and she brought him one hour Russian girl, celebrity, also known as a person with a strange reputation.

SCHIFF: Olga, how do you spell her name?

UNIDENTIFIED MALE: (Inaudible).

SCHIFF: And what's the nature of the compromise?

UNIDENTIFIED MALE: Well I have pictures of naked Trump.

SCHIFF: So Putin was made aware of the availability of the compromising material?

UNIDENTIFIED MALE: Yes, of course.

SCHIFF: Thank you very much. We will be back in touch with you through our staff to make arrangements to obtain these materials for our committee and for the FBI and I appreciate you for reaching out to us.

(END VIDEO CLIP)

HANNITY: He wants information from a foreign government, Russia to use against the President. And we reached out to the soon to be want to be MSNBC contributor Adam Schiff and his office for a comment. We are still waiting for a response. However his office told the Atlantic that he suspected the call was bogus when you look at the email trail. I'm not buying it. Here now is the co-host of "The Five." The host of Watters world, it's his world, we live in it, Jesse Watters, you got to do the thing. And Fox News contributor, it's not her world, apparently Jessica Tarlov.

JESSICA TARLOV, DEMOCRATIC STRATEGIST: I wish it were.

JESSE WATTERS, FOX THE FIVE SHOW HOST: Why do you want to see Trump naked so bad? You keep falling for naked Trump. First the dossier. Now you are looking for this. He is colluding. I thought you weren't allowed to collude.

TARLOV: We are definitely not. That is why we reported it to the authorities right away. That is what actually happened.

WATTERS: Aren't you supposed to be working on the second memo?

TARLOV: I didn't get that phone call. And the second memo isn't coming.

WATTERS: It's coming. Let's see it when it comes out.

TARLOV: Ok. I look forward to that.

WATTERS: This is what happened. We know Schiff is a leaker what he did with Don Jr. We know is he a liar about what he said about the Nunes memo. And now he knows a huge sucker. He is on the House Intel Committee. He is supposed to be intelligent? Doesn't sound very intelligent to me.

TARLOV: I don't know what you want me to say to all of that obviously, it's not ideal that he had that phone conversation, but if you report it to the authorities and he didn't say hey, come to Trump tower. Can you be here in 20 minutes doesn't seem that bad to me.

WATTERS: Listen. He didn't get any dirt. Hillary paid for the dirt. Hillary sent foreign agents to Russia to get lies to use to spy on Trump.

TARLOV: Ok. By the way. Even the way you are saying that ridiculous.

WATTERS: The way I do my hand.

TARLOV: We are both hand talkers but that is ridiculous.

HANNITY: OK. The news tonight, so we have Hillary Clinton not only is her team feeding Christopher Steele, but she is paying for Russian lies from the Russian government we find out. Then, she is using that -- well, first to lie to the American people and influence them with lies, paid for lies. But then it's used as the bulk of the reason by Comey. We know that Christopher Steele is a Trump hater. We know it's unverified. The basis of a FISA warrant against an opposition Party in the lead up to an election and then to undermine a President-Elect and his team. Now, Jessica, please tell me you are not going to defend what is a defenseless position for you?

TARLOV: No, I think I'm going to give it a go. You said it is the bulk of the reasoning to get the FISA warrant. Re-uping of a warrant of someone on 2013 told "Time" magazine that he was a kremlin advisor.

HANNITY: The initial.

TARLOV: It wasn't the initial.

HANNITY: It wasn't the initial, read.

TARLOV: I know how to read.

HANNITY: OK, good.

TARLOV: Carter Page has been under investigation since 2014 if I'm correct, right? And the Nunes memo, I'm mispronouncing that I'm sorry.

HANNITY: Nunes.

TARLOV: Nunes.

WATTERS: Be respectful.

TARLOV: Whatever, Jesse. Has in his memo, makes it very clear that George Papadopoulos was the original person that kicked this off in June 2013.

WATTERS: Do you know who opened the Snuffleupagus investigation? Peter Strzok, the Trump hater. That is his insurance policy to take out Donald Trump. You trust him opening up an investigation, after he let Hillary off the hook.

TARLOV: He absolutely didn't. This narrative.

WATTERS: He lied to the court, he deceived the court.

TARLOV: Are you listening to me at all? Am I here? Is this real?

WATTERS: You can't defend that.

TARLOV: I can defend that. I absolutely can this coffee boy who was a foreign policy advisor through all.

HANNITY: That is mean. I was coffee person once, you know.

TARLOV: You guys make me sound so evil. I love all coffee people. That is not what the issue here.

HANNITY: This coffee person. I used to be a dishwasher. I'm sorry you are setting on my set.

TARLOV: I was a hostess at a restaurant.

HANNITY: OK. That is not a coffee person.

WATTERS: I was a bellhop.

TARLOV: Are we really competing about this jobs?

WATTERS: A bell person.

TARLOV: George Papadopoulos is where this all started. Not Carter Page who is proud of the fact that he was an alleged kremlin advisor. If this was a Democrat that had said that you guys would be going nuts about it.

HANNITY: Hold on. It's unverified. Paid for by Hillary. Purposely didn't tell the court that the Hillary's campaign and the DNC paid for it.

TARLOV: I will say this very slowly then. From the reports on, this the FISA court was well aware of the fact that this was a politically motivated dossier.

HANNITY: They didn't know it was from Hillary.

WATTERS: Why didn't they tell in court Hillary paid for it?

TARLOV: I don't know. I was not there.

WATTERS: Why don't you think they were truthful with the Judge?

HANNITY: They never would have gotten it.

TARLOV: I don't think that is true. What do you think happened from this Carter Page FISA warrant? Did Trump lose the election?

WATTERS: That is a great question because Page, is guilty guy has never been charged. Where is the collusion? Where is it?

TARLOV: It's not with Carter Page, I guess. But that doesn't mean.

WATTERS: He is the center piece for this whole thing. He hasn't been charged.

TARLOV: No he is not.

HANNITY: I got to go. I would say, hang on. I have got to roll. TKO for Watters and his role tonight. Straight ahead.

(COMMERCIAL BREAK)

HANNITY: Unfortunately that is all the time we have left this evening. This story is literally now unfolding minute by minute, hour by hour, the good news is everything we have been telling you is true. This is the much bigger story, there was Russian collusion. It was with the Hillary campaign. They paid for Russian lies to manipulate the American people. And then it was used to get a FISA and it was never verified, shocking. We will never be the destroy-Trump media. We will see you tomorrow night. Let not your heart be troubled, here is.

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