This is a rush transcript from "Hannity & Colmes," December 5, 2007. This copy may not be in its final form and may be updated.

ALAN COLMES: Two months ago the controversy over the Folsom Fair in San Francisco started with this flyer. Now the group Americans for Truth is releasing footage of what went on at the event.

The video is nothing short of pornographic, showing groups of men engaged in orgies on public streets, as well as acts of oral sex and other sexual activity. And the worst part is you can actually see young children witnessing lewd behavior.

The group is now asking that Speaker Pelosi publicly condemn the conduct that takes place in her congressional district.

Joining us now, the president of Americans for Truth, Peter Labarbera.

Peter, you're using this as a group to hit Nancy Pelosi over the head, and you're putting out this video. Why are you putting out gay porn?

PETER LABARBERA, AMERICANS FOR TRUTH: Well, we're not putting out gay porn, Alan. We're calling attention to what actually happened on the streets.

COLMES: You're spreading the video.

LABARBERA: Well, we want to call attention. We have the person third in line for the presidency of the United States, Alan, and her district is allowing sex acts to occur on the streets.

COLMES: Well, first of all you can't control what goes on in her district, but if this is such a terrible video, why spread it?

LABARBERA: Alan, we're exposing a horrible thing in the city of San Francisco, where children were exposed to this awful behavior, where they're allowing sex to occur on the streets. The police did nothing. In fact, Alan, the police recruited at this event.

We think the rest of America deserves to know what's going on.

COLMES: You're spreading what you're calling a lewd and lascivious video. You're giving it wider distribution. You're going to create more eyes, possibly more children's eyes seeing a video that you're condemning. And you're showing it at the same time. That seems pretty hypocritical to me.

LABARBERA: Alan — Alan, we're not the issue. The issue is what's going on in Nancy Pelosi's district.

COLMES: You're making the district. It's not Nancy Pelosi's issue.

LABARBERA: We're holding her — we're holding her accountable, Alan.

COLMES: Why don't you hold the governor accountable? It's happening in Schwarzenegger's state. You want to hit a Democrat over the head.

LABARBERA: Alan — Alan...

COLMES: This is simply a club for you to take a political stance, use it for political posturing. Why don't you go after Schwarzenegger?

LABARBERA: Alan, she — it's her district. This happened in her district.

COLMES: It's his state.

LABARBERA: Why is — why is Speaker Pelosi reluctant? Why can't she condemn...


COLMES: Why don't you ask the governor to condemn it? Isn't it his state? Why don't you ask Governor Schwarzenegger to condemn it in his Republican state?

LABARBERA: I would love the governor — I would love the governor to condemn it, Alan. And we can agree on that.

COLMES: Why don't you go after him? You're only after going after Pelosi.

LABARBERA: We're going after the person, it's her own district. Gavin Newsom, we've also called on him. He called it a wonderful and exciting event.

COLMES: Had nothing to do with that.

SEAN HANNITY, CO-HOST: Let me ask you, Peter. Welcome back to the program. It's Sean Hannity here.

LABARBERA: Thank you.

HANNITY: I read your press release here. Now, by the way, this — this is the same event that we were talking about here where they had a promotional advertisement that mocked Christianity in the form of the anti-Christian poster about the Last Supper. But you said that apparently, there were orgies going on in public?

LABARBERA: Yes, yes, Sean. People were walking right by...

HANNITY: Well, I'm — I'm not being titillating here or gratuitous in my asking of this question, but I mean, real sexual acts being committed in public?

LABARBERA: Absolutely, it's on the film. And the police were standing by. They did nothing. And the police were actually recruiting at this event.

And we also have videotape of children walking up — they let children in with their parents. I guess that's progressive parenting.

HANNITY: So there — there were people having sex in public, and nobody arrested them, nobody did anything?

LABARBERA: Absolutely. We didn't see any arrests. We didn't see the police make any move. This is too much tolerance. This is tolerance run amuck, Sean.

HANNITY: Yes, and this is right there in the Speaker of the House, Nancy Pelosi's, district. Have you gotten any response from her at all?

LABARBERA: No response. I hand—delivered our notice to her, our letter calling on her to condemn this event.

As you know, she wouldn't condemn that promotional poster. She said it wasn't a threat to Christianity. I think this is a threat to basic American values. And if 99.9 percent of Americans saw what actually occurred in Nancy Pelosi's district, including her, herself, I think they would be shocked.

HANNITY: Look, I didn't look at the whole video here. I've only witnessed what we've actually been showing our audience now.

But you say that there were men walking on the streets naked, groups of men engaged in orgies, acts of oral sex, masturbation, as crowds walked by and snap pictures, young children with their parents, you know, there watching this and public whippings. I'm reading from your document here. And blatant anti-Christian bigotry going on there, as well.

Is this — I'm just stunned. I mean, is there nobody else besides you and your group that's outraged over this?

LABARBERA: Well, actually, Catholics are outraged, especially, because the Sisters of Perpetual Indulgence, as you know, is involved in this. And they're a group of men who dress as mock nuns, and they blaspheme the church. And they do things like call themselves Sister Porn Again instead of Sister Born Again. They directly mock the church and Christianity. And they are — they received money from this event. And they greeted people as they came in.

It's shocking, Sean. This is the reality. The Democrats have allowed so much tolerance that now they're tolerating, in San Francisco, men having sex right in the street. It's incredible, I admit.

HANNITY: It's almost beyond belief that we're even covering this story and that it's existing. And Nancy Pelosi, she needs to speak out on the moral issue of our time.

COLMES: Let's see if the governor does that.

HANNITY: Let's see if she has the courage to respond to you. It's her district.

Thank you very much, Peter, for being with us. Appreciate your time.

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