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Perjury in this case and failing to report knowledge of sex abuse, mcqueary is a critical witness. in fact, the testimony against -- the case against them rests very centrally on what mike mcqueary said he saw that day when he walked into the locker room in march 2002. according to the grand jury report he says he saw jerry sandusky sexually abusing a 10-year-old boy. and he left distraught. he was shocked. and then reported it to joe paterno and then paterno told him to report it to tim curley and gary schultz. well, what this new witness, dr. jonathan drainoff, a friend of the family of mcqu...

To report knowledge of sex abuse, mcqueary is a critical witness. in fact, the testimony against testimony against them, the case against them rests centrally on what mike mcquery said he saw that day when he walked into the locker room in march 2002. according to the grand jury report he says he saw jerry sandusky sexually abusing a 10-year-old boy. and he left distraught. he was shocked. and then reported it to joe paterno and then paterno told him to report it to tim curley and gary schultz. well, what this new witness, dr. jonathan drainoff, a friend of the family of mcquery says mcquery t...

What this new witness, dr. jonathan drainoff, a friend of the family of mcqueary, says mcqueary told him that night, the night of the incident was something very different. that he didn't see any sexual activity, he heard sex sounds in the shower and he saw the boy emerging from the shower. an arm grabbing him back in and then sandusky emerging from the shower in a towel. it's something less than what is in that grand jury report. so therefore this could undermine the case against curley and schultz. it doesn't, by the way, absolve them of what a lot of people think is the moral obligation to ...

At the end of the day, they believed and the grand jurors believed mcqueary. they didn't believe curley and schultz. they may well have other evidence that supports mcqueary's version of events. it's also worth pointing out that dr. drainoff, the individual whose testimony is key here, also has his own self-interest in not saying that he heard that sandusky was seen doing this because then he would have had an obligation in this as well. >> thank you very much michael and buzz. when we return, a faustan deal with the deal. you're watching "hardball" only on msnbc. ♪ [ male announcer ] how ...

That's all the accuser and his family are talking about, what they're going to do with all the money they get. >> the new allegations drew an outraged reaction sunday from the lawyer of one of the alleged victims. >> the idea that these people are coming forward with a financial incentive is ridiculous. >> prosecutors may have a new problem. over the weekend reports surf e surfaced that statements make by key witness is called i a grand jury report, mcqueary alleges he saw sandusky sexually assaulting a 10-year-old boy in the penn state locker room in 2002. but nbc news has confirmed a report ...