>>> TONIGHT ON "DATELINE" --
>> MY MOM CALLED ME, "THERE'S A FIRE AT THE HOUSE.
THERE'S A FIRE AT THE HOUSE. >> I JUST KEPT PRAYIN', "PLEASE
LET HER BE OKAY. >> IT WAS CLASSIFIED AS A
HOMICIDE >> Reporter: BEFORE SHE DIED, A
MYSTERY MAN POPPED UP AT THE HOUSE?
>> LOOKIN' OVER THE FENCE. LOOKING IN THE BACKYARD.
>> THERE WERE SOME STRANGE PHONE CALLS THAT WERE COMING IN.
SHE WAS WORRIED AND SCARED >> WE DECIDED TO DO AN
UNDERCOVER OPERATION >> ARE YOU TELLING ME THAT YOU
HAD NOTHING TO DO WITH THIS WHATSOEVER
ARE YOU TELLING ME THAT? >> I CAN'T
>> SO I ASKED HIM, "DID YOU KILL HER?
>> Reporter: HE WAS LIVING A DOUBLE LIFE.
>> SHE KNEW NOTHING. >> HE GETS ON THAT FLIGHT, WE
HAVE NO WAY TO STOP HIM. >> HE WAITED FOR DARKNESS, SO
THAT HE COULD LIGHT THE FIRE >> Reporter: THE KILLER, OR
KILLERS, ARE OUT THERE >> WHAT IF WE'RE NEXT?
>> A YOUNG MOTHER IS KILLED IN A MYSTERIOUS FIRE.
AND IT WOULD TAKE SOME CREATIVE POLICE WORK TO SOLVE THIS ONE.
I'M LESTER HOLT AND THIS IS "DATELINE.
* HERE'S ANDREA CANNING WITH "FIRE
AND ICE. >>> DO YOU REQUIRE POLICE, FIRE,
AMBULANCE? >> HELLO THERE'S A FIRE.
>> Reporter: THE FIRST CALL CAME IN AT 7:50PM
>> OKAY WHERE DO YOU SEE THE FIRE
>> IN THE GARAGE THE FLAMES, YES.
VERY BAD VERY BAD
>> Reporter: IT WAS SEPTEMBER 15, 2014, A RAINY
EVENING IN THE LAKESIDE CITY OF PICKERING, A SUBURB OF TORONTO
ANA CONOLY'S HUSBAND HAD JUST LEFT TO TAKE THEIR DOG FOR A
WALK WHAT HAPPENED NEXT IS STILL HARD
FOR HER TO TALK ABOUT. >> AND THEN HE TURNED AROUND AND
HE SAYS, "CARM'S HOUSE IS ON FIRE
IT'S COMING OUT FROM THE GARAGE."
>> Reporter: CARM WAS CARMELA KNIGHT, ANA'S NEIGHBOR
WHEN ANA STEPPED OUTSIDE, THE FIRST FIRE TRUCK WAS ALREADY ON
THE SCENE. MORE WERE ON THE WAY
>> AND THE FIRE JUST KEPT GOING. IT GOT SO BAD, THE FIRE, AND YOU
COULDN'T -- YOU COULDN'T DO ANYTHING
>> Reporter: CARMELA LIVED WITH HER HUSBAND DAVID AND TWO YOUNG
SONS ANA HAD NO IDEA IF ANY OF THEM
WERE IN THE HOUSE. SHE FELT SO HELPLESS -- CARMELA
WAS ONE OF HER BEST FRIENDS. >> IF YOU EVER MET CARM --
INSTANTLY, YOU WOULD BECOME FRIENDS WITH HER
>> Reporter: NOW ANA COULDN'T REACH CARMELA ON HER CELLPHONE
>> HER ANSWERING MACHINE JUST SAID, "HEY, IT'S CARM.
SO SHE DIDN'T PICK IT UP >> Reporter: SO SHE CALLED
CARMELA'S MOM, FRANCA, HOPING THEY WERE TOGETHER
>> MY PHONE RANG AND IT WAS ANA. AND SHE WAS SCREAMIN' ON THE
PHONE AND SAYING, "IS CARM WITH YOU?
AND I SAID, "NO, WHAT'S WRONG? WHAT'S WRONG?"
>> Reporter: WHEN YOU REALIZED THAT THEY WERE NOT TOGETHER, DID
YOUR HEART JUST SINK >> YES
YES. >> I WENT STRAIGHT OVER TO THE
HOUSE -- >> Reporter: AND WHAT IS THAT
DRIVE LIKE, WITH ALL THE UNKNOWNS
>> IT WAS JUST AWFUL I JUST KEPT PRAYING.
I JUST KEPT PRAYIN', "PLEASE LET HER BE OKAY, PLEASE LET HER BE
OKAY." >> Reporter: WHEN YOU ARRIVE AT
THE HOUSE WHAT DO YOU SEE? >> THERE WAS STILL THE FIRE ON
THE TOP OF THE GARAGE. AND -- I JUST RAN.
THE DOOR WAS OPEN. >> I SAW, LIKE -- LIKE --
SOMETHING, A BODY WHICH I THOUGHT WAS A BODY
BUT TWO FIREMEN AND TWO POLICE OFFICERS CAME AND THEY STOPPED
ME >> Reporter: CARMELA'S SISTER
NANCY ARRIVED SOON AFTER WHAT DO YOU SEE?
>> FIRE TRUCKS, AND ALL THE NEIGHBORS, EVERYONE WAS -- IT
WAS JUST VERY BUSY, AND, LIKE, MY MOM JUST KEPT SAYING,
"SOMETHING HAPPENED TO HER." AND I JUST SAID, "NO, SHE'S
FINE SHE'S FINE."
>> Reporter: NANCY FRANTICALLY TRIED TO REACH CARMELA'S
HUSBAND. >> I TRIED CALLING DAVE NUMEROUS
TIMES THAT NIGHT I WANTED TO MAKE SURE THE BOYS
WERE OKAY, AND IF CARM WAS OKAY, AND IF HE HAD SPOKEN TO HER.
>> Reporter: AND WAS HE ANSWERING THE PHONE?
>> NO. >> Reporter: AN OFFICER ASKED
NANCY AND HER MOM TO GO TO THE POLICE STATION
THEY KNEW IT WASN'T A GOOD SIGN, BUT NANCY REFUSED TO GIVE UP
HOPE >> "EVERYTHING'S FINE, DON'T
WORRY. WHEN WE GET TO THE POLICE
STATION, EVERYONE'S GONNA EXPLAIN, IT'S GONNA BE OKAY.
>> Reporter: YOU'RE STILL THINKING SHE'S ALIVE
>> YEAH. >> Reporter: AT THE STATION THEY
LEARNED DAVID AND THE BOYS WERE SAFE. THEY'D BEEN AT HOCKEY
PRACTICE WHILE THAT WAS A HUGE RELIEF,
WHAT POLICE SAID NEXT WAS HARD TO PROCESS
THEY CONFIRMED WHAT FRANCA THOUGHT SHE'D SEEN IN THE
GARAGE >> THEY DID SAY THAT THEY FOUND
A BODY, BUT, I WAS STILL HOPEFUL.
BUT IN THE BACK OF YOUR MIND YOU'RE, LIKE, "SHE'S NOT
ANSWERING HER PHONE. AND IT'S JUST MAKES YOU FEEL
SICK TO YOUR STOMACH >> Reporter: DAVID AND THE BOYS
SHOWED UP AT THE STATION HE LEFT THEM IN THE CAR WITH HIS
FATHER AND WENT IN TO SPEAK WITH POLICE
A DETECIVE TOLD HIM THEY'D FOUND A BODY AND THAT IT MIGHT BE HIS
WIFE'S >> I WANT YOU TAKE A DEEP BREATH
AND TRY AND RELAX. I KNOW IT'S -- I'M NOT SAYING
IT'S HER, RIGHT? >> IT CAN'T BE
>> OKAY. UM, WE DON'T KNOW THAT AT -- AT
THIS POINT BUT THAT'S THE REASON THAT
YOU'RE HERE. >> Reporter: DAVID IMMEDIATELY
WORRIED ABOUT HIS SONS >> MY BOYS -
>> YEAH, THAT'S WHERE I SAY, WE'RE GONNA, WE'RE GONNA, "WE'LL
DO THIS STEP BY STEP, ALRIGHT? >> Reporter: NO ONE WANTED TO
BELIEVE THEIR BELOVED CARM WAS GONE
A WOMAN WHO MEANT THE WORLD TO SO MANY PEOPLE
>> SHE JUST HAD THIS SENSE OF CALMNESS TO HER THAT JUST PUT ME
AT EASE. >> Reporter: WHILE NANCY HELD
TIGHT TO THE HOPE THAT CARMELA WAS STILL ALIVE, LAW ENFORCEMENT
GOT TO WORK. DURHAM REGIONAL POLICE
DETECTIVES DIANNE JENNINGS AND LEON LYNCH WERE ASSIGNED THE
CASE >> Reporter: WHAT CONDITION WAS
THE BODY IN? WHAT COULD THEY TELL FROM
INITIAL ASSESSMENT >> IT WAS -- A BADLY CHARRED
BODY, AND THEY COULD NOT RECOGNIZE WHO THE PERSON WOULD
BE >> Reporter: IT WASN'T UNTIL
DETECTIVES HEARD FROM THE FORENSIC PATHOLOGIST THAT THEY
CONFIRMED THE VICTIM WAS 39-YEAR OLD CARMELA KNIGHT
HOW WAS SHE IDENTIFIED >> BY HER DENTAL RECORDS
>> Reporter: AND THE PATHOLOGIST TOLD THEM SOMETHING ELSE ABOUT
CARMELA'S BODY >> THEY DISCOVERED THAT SHE
HAD -- A TOURNIQUET AROUND HER ARM AND A SYRINGE WITH HER BODY.
>> Reporter: THIS IS DRUG PARAPHERNALIA?
>> YES YES.
>> Reporter: SURPRISING? >> ABSOLUTELY.
>> Reporter: THIS IS A -- HOCKEY MOM, A SUBURBAN MOM.
>> EXACTLY >> Reporter: IT WAS A PUZZLING
CLUE IN WHAT WOULD TURN OUT TO BE A COMPLICATED CASE.
COULD YOU JUST TELL JUST FROM ALL YOUR YEARS OF EXPERIENCE
THAT THIS WAS NOT GOING TO BE EASY
>> YES THAT'S FAIR, YES
>> Reporter: THEY HAD NO IDEA SOLVING THIS MYSTERY WOULD
BECOME A BATTLE OF WITS AND A RACE AGAINST TIME.
>>> WHEN WE COME BACK -- DELIVERING THE HEARTBREAKING
NEWS >> I JUST DIDN'T WANT IT TO BE
TRUE >> AND, A DISTURBING DISCOVERY
>> CARMELA WAS DEAD AT THE TIME OF THE FIRE?
SO SHE DIED BEFORE THE FIRE? >> Reporter: THE NEXT DAY, THE
HOUSE ON PEBBLESTONE CRESCENT WAS STILL SMOLDERING WHEN POLICE
BROKE THE NEWS TO FRANCA THE BODY FOUND IN THE GARAGE WAS
HER DAUGHTER CARMELA'S >> I JUST MISS HER SO MUCH
>> Reporter: HER CAUSE OF DEATH WAS STILL UNKNOWN.
>> THEY JUST SAID, "IT COULD BE AN ACCIDENT.
SHE COULDA DIED IN THE FIRE. WE DON'T KNOW.
>> Reporter: CARMELA'S SISTER NANCY THOUGHT ABOUT HOW CARMELA
SOMETIMES SMOKED IN THE GARAGE >> THEIR DIRT BIKES ARE IN
THERE, SO WE'RE, LIKE, "MAYBE SOMETHING HAPPENED WITH THAT --
WITH THE GASOLINE AND STUFF," LIKE, WHO KNOWS, RIGHT
>> Reporter: SO AN ACCIDENT, MAYBE. BUT WHEN POLICE BROUGHT
UP THE POSSIBILITY OF A DRUG OVERDOSE
DID YOU BELIEVE THAT SHE COULD DO DRUGS
>> NO, GOD, NO SHE DIDN'T EVEN DRINK.
SHE HAD -- AN OCCASIONAL GLASS OF WINE.
>> Reporter: HER YOUNGEST SON DYLAN, NOW 17, REMEMBERS HIS
FATHER BREAKING THE NEWS OF HIS MOTHER'S DEATH TO HIM AND HIS
BROTHER. >> AND OUR DAD SAT IN FRONT OF
US, AND HE COULDN'T EVEN TELL US, HE SAT THERE, CRYING
AT FIRST I DIDN'T WANNA BELIEVE IT
I REALLY DIDN'T. I DIDN'T THINK IT WAS TRUE
I JUST DIDN'T WANT IT TO BE TRUE
>> Reporter: NANCY WAS ALSO FINDING IT HARD TO BELIEVE
SHE HAD JUST BEEN WITH CARMELA SHE WAS HAPPY.
THEY'D BEEN PLANNING NANCY'S WEDDING, NOW SHE WAS ATTENDING
HER SISTER'S FUNERAL >> THAT CHURCH HELD 600 SEATS,
AND ALL THE SEATS WERE FULL. THERE WAS PEOPLE ALL ALONG THE
WALLS, IN THE BACK >> Reporter: REALLY SHOWS YOU
HOW SPECIAL SHE WAS. >> SHE WAS VERY SPECIAL.
>> Reporter: A FEW DAYS LATER, THE PATHOLOGIST TOLD DETECTIVES
HOW CARMELA DIED >> IT WAS CONFIRMED THAT IT WAS,
IN FACT, A HOMICIDE. >> Reporter: SHE'D BEEN
MURDERED DETECTIVES JENNINGS AND LYNCH
PORED OVER THE REPORT. IT WAS GRUESOME, BUT IT WAS THE
EVIDENCE THEY NEEDED TO KICK OFF THEIR INVESTIGATION.
>> THEY KNEW THAT CARMELA WAS DEAD AT THE TIME OF THE FIRE
>> Reporter: SO SHE DIED BEFORE THE FIRE
>> SHE DID THEY ALSO TOLD US THAT SHE DIED
OF BLUNT FORCE TRAUMA. SHE HAD FACIAL INJURIES, AND SHE
DIED OF A NECK COMPRESSION >> Reporter: THEY COULD TELL ALL
OF THIS EVEN WITH THE BADLY BURNED BODY?
>> RIGHT THEY COULD
>> THAT'S JUST, THE FIRE JUST DESTROYS THE OUTSIDE OF THE
BODY AND ALL THE DAMAGE THAT HAPPENED
PRIOR TO DEATH IS STILL EVIDENT UNDERNEATH THE -- THE SKIN
>> Reporter: OF COURSE, IN A CASE LIKE THIS, POLICE USUALLY
LOOK AT THE HUSBAND FIRST. SO THEY LEARNED WHAT THEY COULD
ABOUT DAVID KNIGHT HE WORKED IN CONSTRUCTION AS A
PROJECT MANAGER. HE AND CARMELA OWNED THAT NICE
FOUR BEDROOM HOUSE IN PICKERING AND THEY HAD A SECOND HOME IN
INDIAN ROCKS BEACH, FLORIDA. >> WHY DON'T YOU TAKE A DEEP
BREATH AND TRY TO RELAX. >> Reporter: IN HIS POLICE
INTERVIEW ON THE NIGHT OF THE FIRE, DAVID TOOK INVESTIGATORS
THROUGH HIS DAY. WHERE DOES DAVID SAY HE WAS
DURING THE TIME OF THE FIRE? >> AT THE HOCKEY RINK WITH HIS
BOYS, HE LEFT THE HOUSE AROUND 3:30, WENT TO MCDONALD'S,
AND THEN WENT TO THE ICE RINK IN TORONTO AND HAD A PRACTICE FROM
6:30 TILL 8:00 THIS IS SOMETHING THAT IS EASILY
VERIFIABLE >> DEFINITELY, YES -
>> YES >> Reporter: HE WAS -- HE WAS AT
THE HOCKEY RINK DURING THE FIRE -
>> MANY WITNESSES SAW HIM THERE, ON THE ICE
>> AND WE HAVE VIDEO SURVEILLANCE SHOWING HIM SKATING
AROUND ON THE ICE DURING THAT TIMELINE
>> Reporter: HE ALSO TOLD THE DETECTIVE THAT WHILE HE AND
CARMELA LIVED IN THE HOUSE TOGETHER, THEY WERE SLEEPING IN
SEPARATE BEDROOMS. THEIR MARRIAGE WAS ENDING AFTER
15 YEARS >> HE'S TALKING ABOUT THEIR
RELATIONSHIP IT WAS AN AMICABLE SEPARATION
AND THAT HE LOVED CARM >> Reporter: AND HIS REACTION TO
THE NEWS THAT NIGHT SEEMED GENUINE.
>> THE DETECTIVE THOUGHT HE WAS EMOTIONAL WHEN HE WAS TOLD -
>> Reporter: ACTING THE WAY ONE WOULD EXPECT WHEN THEY'VE JUST
RECEIVED NEWS LIKE THIS? >> YES
>> Reporter: AND BESIDES, HIS ALIBI WAS AIR TIGHT.
SO DETECTIVES WONDERED, IF CARMELA'S HUSBAND WASN'T THE
KILLER, WHO WAS? IT WAS TIME TO FIND OUT MORE
ABOUT HER FROM OTHER PEOPLE IN HER LIFE
>> WE LEARNED THAT SHE WAS VERY INVOLVED WITH HER BOYS
NOBODY COULD SAY A BAD THING ABOUT CARMELA.
THERE WAS NOTHING NEGATIVE WHATSOEVER IN ANY INTERVIEW.
>> Reporter: TARA COCCIMIGLIO WAS ONE OF THE PEOPLE WHO'D
SPOKEN TO POLICE SHE AND CARMELA WERE FRIENDS
FROM COLLEGE >> WE HAD A LOT IN COMMON.
AND WE BECAME THE BEST OF FRIENDS.
>> Reporter: WHAT DO YOU THINK IT WAS ABOUT YOU TWO THAT --
THAT EVENTUALLY YOU JUST TOTALLY HIT IT OFF
>> TO BE HONEST, WE BOTH LIKED TO PARTY
AND HAVE A GOOD TIME >> Reporter: SOUNDS FAMILIAR
>> YEAH, SHE WAS A SWEETHEART. SHE HAD A HEART OF GOLD.
AND SHE WAS SO GENUINE >> Reporter: TARA SAYS THEY HAD
SIMILAR DREAMS FOR THE FUTURE. >> I KNEW THAT WE BOTH REALLY
WANTED FAMILIES AND CHILDREN >> Reporter: SHE REMEMBERS
CARMELA FIRST MET HER FUTURE HUSBAND AT A NIGHTCLUB
>> SHE SAID SHE MET SOMEBODY AND THAT HE HAD SENT HER
FLOWERS. >> Reporter: THAT DOESN'T ALWAYS
HAPPEN AFTER YOU MEET SOMEONE AT A CLUB
>> NOPE, IT DOESN'T. SOMEBODY THAT'S GONNA SEND YOU
FLOWERS RIGHT AWAY TO SHOW THAT THEY WERE SO HAPPY TO MEET YOU
IS USUALLY A GOOD SIGN >> Reporter: IT WAS A VERY GOOD
SIGN AFTER A QUICK COURTSHIP CARMELA
AND DAVID GOT ENGAGED ON CHRISTMAS DAY.
WHAT WERE THE BIG PLANS? DID SHE SAY RIGHT AWAY
DID SHE KNOW WHAT -- >> YOU KNOW -- A BIG ITALIAN
WEDDING. >> Reporter: WAS SHE REALLY
HAPPY ON HER WEDDING DAY >> SHE WAS VERY HAPPY.
SHE WAS A BEAUTIFUL BRIDE. >> Reporter: NOT TOO LONG AFTER
THAT, CARMELA AND DAVID WELCOMED THEIR FIRST SON.
>> AND WE WERE ALL SO EXCITED TO MEET HIM
>> Reporter: COULD YOU JUST SEE IT IN HER EYES
THE JOY AND THE LOVE THAT SHE HAD FOR HER FIRSTBORN?
>> YES SHE WAS THRILLED TO BE A MOM
>> Reporter: THREE YEARS LATER, DYLAN WAS BORN
WHAT DID YOU LOVE ABOUT YOUR MOM?
>> JUST -- I GUESS THE WAY -- SHE CARED ABOUT ME AND MADE SURE
THAT I KNEW I WAS LOVED. >> Reporter: AND SHE WAS AN
OFFICIAL HOCKEY MOM? >> YEAH, SHE DEFINITELY WAS.
SHE WAS ALWAYS OUT THERE SCREAMIN' AND SHOUTIN'
>> Reporter: NO ONE EVER SAID ANYTHING TO DETECTIVES ABOUT
CARMELA USING DRUGS. SO A FEW WEEKS LATER, WHEN THEY
GOT HER TOXICOLOGY REPORT. THE RESULTS DIDN'T SURPRISE
THEM >> NO DRUGS IN HER SYSTEM.
HER TOX WAS NEGATIVE >> Reporter: WHAT DID THAT TELL
YOU ABOUT THE SCENE WITH THE DRUG PARAPHERNALIA
IT SUGGEST TO YOU THAT THE -- THAT THE SCENE HAD BEEN STAGED
>> WHEN WE PIECED EVERYTHING TOGETHER, IT CERTAINLY DID
>> Reporter: ANOTHER CLUE CAME FROM THE HOME SECURITY SYSTEM.
INTERIOR DOOR SENSORS HAD BEEN TRIPPED.
>> IT SHOWED THAT SOMEBODY WAS IN THE HOUSE AFTER DAVID AND THE
CHILDREN LEFT FOR HOCKEY >> Reporter: THEY KNEW DAVID AND
THE BOYS LEFT AROUND 3:30 THAT AFTERNOON.
CARMELA CAME HOME FROM WORK AROUND 5:00.
>> SO WE HAD SOME UNEXPLAINED DOORS OPENING AND CLOSING.
SOMEBODY WAS GOING INTO DIFFERENT AREAS OF THE HOUSE
>> Reporter: WHO WAS THAT SOMEBODY
FRANCA RECALLED SOMETHING HER DAUGHTER HAD SAID.
CARMELA HAD TOLD YOU A STORY ABOUT SOMEONE APPROACHING HER, A
MAN FROM A BLACK SUV >> SHE WAS IN THE BACKYARD
DAVE HAD TAKEN THE BOYS DIRT BIKING
A MAN LOOKED OVER THE FENCE AND ASKED FOR DAVE
AND SHE SAID, "DAVE'S NOT HERE." AND HE LEFT, AND THEN SHE RAN TO
THE FRONT AND SAW THIS MAN GETTING INTO THE -- THE BLACK
SUV, AND TOOK OFF. >> Reporter: DID SHE KNOW WHO IT
WAS? >> NO.
>> Reporter: SO THIS IS -- A MYSTERY MAN THAT'S SHOWING UP AT
HER HOUSE? >> YEAH.
>> Reporter: THIS REALLY THICKENS THE PLOT --
>> YES >> Reporter: COMING UP -
CARMELA'S SISTER-IN-LAW VISITS POLICE AND DROPS A BOMBSHELL
>> HE JUST SAID, "I KNOW WHO, WHAT, WHEN, WHERE AND HOW.
WITH A PHONE CALL I COULD HAVE STOPPED THIS AND I HAVE TO LIVE
WITH THIS FOR THE REST OF MY LIFE."
AND HE BURST INTO TEARS. >> Reporter: WHEN "DATELINE"
>> Reporter: POLICE WERE
PURSUING A NEW LEAD IN THE CARMELA KNIGHT MURDER
INVESTIGATION. HER MOTHER HAD TOLD THEM ABOUT A
MYSTERIOUS MAN IN A BLACK SUV WHO SURPRISED CARMELA IN HER
BACKYARD >> SHE WAS SCARED, YOU KNOW?
SHE DIDN'T KNOW WHO HE WAS >> Reporter: FRANCA SAID CARMELA
TOLD HER HUSBAND DAVID ABOUT THE UNEXPECTED VISITOR
>> SHE TOLD HIM. THIS GUY CAME LOOKING FOR YOU,
DAVE WHAT'S GOING ON?" "OH, NOTHING,
NOTHING, NOTHING," RIGHT BUT THEN HE PUTS THE ALARM ON
THAT NIGHT AND HE'S, LIKE, REALLY PARANOID -- LIKE, SCARED.
>> Reporter: JUMPY >> YEAH, VERY, VERY JUMPY, SHE
SAID >> Reporter: BUT AS DETECTIVES
WERE TRYING TO FIGURE OUT WHO THE MAN WAS, SOMEBODY ELSE
POPPED UP ON THEIR RADAR -- HEATHER KNIGHT
CARMELA'S SISTER-IN-LAW. >> SHE CAME INTO THE POLICE
STATION AND GAVE A STATEMENT >> Reporter: HEATHER WAS MARRIED
TO DAVID KNIGHT'S BROTHER, MATT. AND WHEN SHE HEARD CARMELA HAD
BEEN MURDERED, A SINKING FEELING CREPT IN ABOUT HER OWN HUSBAND
FIRST, SHE TOLD THE DETECTIVES THAT MATT HAD ABRUPTLY LEFT
CANADA >> AND THIS IS VERY QUICKLY --
VERY SOON AFTER. TWO --
>> Reporter: CARMELA'S DEATH >> --TWO DAYS LATER.
>> Reporter: HE'S OFF TO FLORIDA?
IT WASN'T JUST THAT MATT LEFT, SHE SAID HE ACTED LIKE HE WAS
NEVER COMING BACK. >> HE HAD LEFT A KEY TO THEIR
HOUSE ON THE -- THE TABLE WHEN HE LEFT.
>> Reporter: BUT WHAT BOTHERED HEATHER THE MOST WAS THE LAST
THING MATT SAID BEFORE HE GOT ON THE PLANE.
>> HE JUST SAID, "I KNOW WHO, WHAT, WHEN, WHERE AND HOW --
WITH A PHONE CALL I COULD HAVE STOPPED THIS
AND I HAVE TO LIVE WITH THIS FOR THE REST OF MY LIFE.
AND HE BURST INTO TEARS. >> Reporter: NOW THE DETECTIVES
WERE REALLY LISTENING. >> AND HE SAYS, "MAYBE 20,
30 YEARS DOWN THE ROAD WHEN WE'RE ON A BEACH SOMEWHERE OR
SOMETHING I'LL FILL YA IN ON EVERYTHING, BUT I DON'T WANT TO
TELL YOU EVERYTHING, BECAUSE I DON'T WANT YOU TO BE IN THAT
POSITION." >> Reporter: HEATHER WENT ON TO
TELL THEM THAT ON THE NIGHT OF THE FIRE, AS SOON AS MATT HEARD
ABOUT IT HE RUSHED OUT OF THE HOUSE
SHE ASSUMED HE WENT TO SEE HIS BROTHER, BUT THEN SHE GOT A
PHONE CALL >> FROM DAVID KNIGHT SAYING,
"WHERE'S MATTHEW?" AND SHE THOUGHT, "I THOUGHT HE
WAS WITH YOU." AND THEN SHE LATER LEARNS THAT,
IN FACT, HE WAS WITH GRAHAM. >> Reporter: GRAHAM MACDONALD.
A NAME THAT WAS NEW TO INVESTIGATORS.
>> GRAHAM MACDONALD WAS A FRIEND OF HER HUSBAND, AND GRAHAM AND
MATTHEW HAD WORKED TOGETHER AT A COMPANY CALLED HOTSETS IN
TORONTO. SO HE WAS JUST -- A FAMILY
FRIEND >> Reporter: GRAHAM, A HANDYMAN,
WAS ALSO FRIENDS WITH MATT'S BROTHER DAVID.
IN FACT, DAVE HIRED HIM TO SPRUCE UP THE HOUSE ON
PEBBLESTONE CRESCENT SO WHY HAD MATT RUSHED OUT TO
SEE GRAHAM IN THE MIDDLE OF A FAMILY CRISIS AND NOT HIS
BROTHER? A TEAM OF INVESTIGATORS LEFT
CANADA FOR SUNNY FLORIDA TO ASK MATT
>> THEY WENT TO HIS HOUSE. THEY LEFT BUSINESS CARDS
THEY WERE ABLE TO SPEAK TO HIM ON THE PHONE, AND HE REFUSED TO
SPEAK TO THEM. HE SAID THAT HEATHER IS A LIAR,
AND THAT SHE'S JUST TRYING TO GET HIM INTO TROUBLE, AND THAT
HE HAS NO INTENTIONS ON EVER COMING BACK TO CANADA.
>> Reporter: WITH NO JURISDICTION IN THE U.S. OR ANY
EVIDENCE TO PRESS MATT FURTHER, INVESTIGATORS CAME HOME
EMPTY-HANDED WHAT'S MORE, THEY KNEW THAT
MATT, LIKE HIS BROTHER DAVID, HAD AN ALIBI FOR THE DAY CARMELA
DIED HE WAS WITH HEATHER.
>> SHE MADE IT VERY CLEAR THAT HIM AND HER WERE TOGETHER THAT
ENTIRE DAY. HE DID NOT LEAVE HER SIDE
AND THERE'S NO WAY THAT HE -- HE COULD HAVE DONE IT
>> Reporter: THEY HAD STRUCK OUT WITH MATT, SO THEY BROUGHT
GRAHAM MACDONALD INTO THE STATION TO ASK HIM WHERE HE WAS
THE DAY OF THE FIRE. >> HE TOLD US THAT HE WENT TO
VISIT HIS GRANDMOTHER, BUT HIS GRANDMOTHER WASN'T HOME.
HE ALSO TOLD US THAT HE TOOK THE GO TRAIN BACK FROM TORONTO OUT
TO PICKERING, AND THEN WALKED FROM PICKERING TO MOODY'S MOTEL.
>> Reporter: BUT THEN THEY DID SOME DIGGING
>> WE GOT VIDEO SURVEILLANCE FROM HIS GRANDMOTHER'S
APARTMENT, AND GRAHAM DID NOT APPEAR ON THE SURVEILLANCE
VIDEO. >> Reporter: IS THAT FISHY THAT
HE TOLD YOU HE WENT THERE, AND THEN HE'S NOT ON THE
SURVEILLANCE VIDEO >> IT IS FISHY
WE LOOKED AT ALL THE GO TRAIN SURVEILLANCE
GRAHAM MACDONALD WAS NOT ON THE GO TRAIN
>> Reporter: POLICE STARTED TO WONDER IF GRAHAM MIGHT'VE HAD A
REASON TO WANT CARMELA DEAD. DID YOU THINK THAT MAYBE
GRAHAM MACDONALD, HAD SOME TYPE OF AN OBSESSION WITH CARMELA
THAT POSSIBLY WHEN HE WAS DOING RENOVATIONS HE GOT FIXATED ON
HER? >> DEFINITELY.
THE WAY HIS STORY WASN'T PANNING OUT.
AND IF HE HAD SOME TYPE OF RELATIONSHIP WITH HER, AND IT
DIDN'T GO WELL. >> Reporter: AFTER TALKING TO FRIENDS AND
FAMILY, THE SCORNED LOVER THEORY DIDN'T GO ANYWHERE
>> WE'RE JUST GONNA SIT IN HERE GRAHAM
YOU WANT TO TAKE A SEAT HERE >> Reporter: BUT AFTER CATCHING
HIM IN THOSE LIES, THEY NEEDED TO TALK TO GRAHAM AGAIN.
SO, THEY CALLED HIM BACK FOR A SECOND INTERVIEW
GRAHAM MAINTAINED HE WAS IN TORONTO THAT DAY, BUT HIS MEMORY
OF IT WAS HAZY, AND THERE WAS A GOOD REASON FOR THAT
>> WHAT DO YOU MEAN YOU WEREN'T ALL THERE?
>> WELL I WAS SMOKING CRACK THAT NIGHT.
>> THAT NIGHT? >> YEAH, I DID A COUPLE PERCS
AND I SMOKED CRACK >> HE WAS USIN' DRUGS THAT DAY,
AND HIS RECOLLECTION'S ALL OVER THE MAP AND JUMBLED BECAUSE OF
THAT HE DOESN'T REALLY REMEMBER WHERE
HE WAS >> Reporter: WHEN PRESSED BY THE
INVESTIGATORS, GRAHAM GOT UPSET AND WANTED TO END THE INTERVIEW.
>> I DON'T WANT TO DO THIS ANYMORE.
I'M GONNA STOP -- YOU GUYS DO WHAT YOU NEED TO DO.
>> OKAY, BUT YOU KNOW, GRAHAM, LISTEN -
>> NO. I DON'T KNOW WHAT TO DO HERE
>> HE BECAME A PERSON OF INTEREST THAT NEEDED A LOT MORE
INVESTIGATING. >> Reporter: AND HE WASN'T THE
ONLY ONE GRAHAM HAD LED THEM TO A
POSSIBLE NEW SUSPECT SOMEBODY IS NOT TELLING THE
TRUTH HERE >> THERE ARE SOME GAPS IN THE
STORY. ABSOLUTELY
>> COMING UP - >> THEY MEET UP WITH HIM IN THE
PARKING LOT. THEY TRY TO ENGAGE HIM IN
CONVERSATION, AND HE JUST KEEPS WALKING AND WOULDN'T STOP,
WOULDN'T SPEAK TO THEM >> Reporter: A SUDDENLY SILENT
HUSBAND -- LIVING A DOUBLE-LIFE
>> THERE WAS NAKED PHOTOS OF -- THIS GIRL.
AND SHE WAS KISSING HIM ON THE >> Reporter: WITH EACH PASSING
MONTH, CARMELA'S MOTHER, FRANCA GREW MORE IMPATIENT WITH THE
INVESTIGATION. >> I PHONED JOHN, ONE OF THE
DETECTIVES, TWO, THREE TIMES A DAY -- CALLING LIKE, "WHAT'S
GOIN' ON? WHAT'S GOIN' ON? AND THEY KEPT SAYING, YOU KNOW,
"WE'RE WORKING ON IT WE'RE WORKING ON IT, YOU KNOW.
>> Reporter: SHE HAD NO IDEA ABOUT THE DETECTIVE WORK
UNFOLDING BEHIND THE SCENES. DURING GRAHAM MACDONALD'S FIRST
POLICE INTERVIEW, HE'D REVEALED SOMETHING THAT SENT THE
INVESTIGATION IN A WHOLE NEW DIRECTION.
>> WHAT DOES HE TELL YOU >> HE TELLS US THAT HE WAS WITH
DAVID KNIGHT THE DAY OF THE MURDER
>> Reporter: A RED FLAG. THEY'D SPOKEN AT LENGTH TO
CARMELA'S HUSBAND THE NIGHT OF THE FIRE AND HE HAD TOLD THEM HE
WAS AT THE HOCKEY ARENA THAT EVENING.
THERE WAS SECURITY CAMERA FOOTAGE THAT PROVED IT
BUT ACCORDING TO GRAHAM DAVID WASN'T TELLING THE WHOLE STORY
>> DAVID KNIGHT NEVER MENTIONED BEING WITH ANYBODY THAT DAY.
AND NOW GRAHAM MACDONALD'S TELLING US THAT HE WAS WITH
DAVID AND THAT THEY WENT TO TORONTO.
>> Reporter: DETECTIVES WERE NOW TAKING A HARD LOOK AT DAVID
KNIGHT AND SOME OF HIS BEHAVIOR AFTER
THE FIRE WAS RAISING EYEBROWS. CARMELA'S FRIEND TARA SAYS HE
DIDN'T ATTEND CARMELA'S FUNERAL. >> IT WAS AWFUL TO THINK THAT
YOUR WIFE COULD DIE SO TRAGICALLY
AND, EVEN IF YOU WERE SEPARATED, THAT YOU WOULDN'T COME TO PAY
YOUR RESPECTS. >> Reporter: EVEN WORSE, SHE
SAYS HE DIDN'T LET THEIR YOUNG SONS GO.
>> THEY WEREN'T AT THEIR OWN MOTHER'S FUNERAL
>> NO. >> OH MY GOSH.
>> Reporter: BUT CARMELA'S MOM WASN'T SURPRISED
SHE KNEW THE DIVORCE PROCEEDINGS HADN'T BEEN GOING AS SMOOTHLY AS
DAVID LET ON IN FACT, SHE SAYS IT GOT UGLY.
DAVID WAS TELLING LIES ABOUT CARMELA ALL OVER TWN BEFORE AND
AFTER HER DEATH. >> DAVE TOLD ALL THE HOCKEY
PARENTS THAT SHE WAS A GAMBLER, THAT SHE HAD A BOYFRIEND, THAT
SHE WAS TAKING DRUGS >> DO YOU THINK THE PARENTS WERE
BUYING THIS. >> NO.
NO, THEY WEREN'T >> Reporter: CARMELA HAD
COMPLAINTS ABOUT DAVID, TOO. TARA TOLD INVESTIGATORS THAT
CARMELA HAD LONG SUSPECTED HE WAS UNFAITHFUL
HE'D STAY LATE AT WORK, COME HOME WITHOUT HIS RING -- TRAVEL
MORE AND MORE. >> I THINK THERE WAS SOME
RECEIPTS THERE WERE SOME STRANGE PHONE
CALLS THAT WERE COMING IN. >> Reporter: AND A YEAR AND A
HALF BEFORE HER MURDER -- UNDENIABLE PROOF
CARMELA FOUND A THUMB DRIVE IN DAVID'S CAR FILLED WITH RACY
PHOTOS SHE CONFIDED IN HER SISTER
NANCY. >> SO THERE WAS NAKED PHOTOS
OF-- THIS GIRL AND THERE WAS A PICTURE OF DAVE
AND-- AND HER, AND SHE WAS KISSING HIM ON THE CHEEK
>> SO THERE WAS NO GETTING AROUND THIS?
>> NO. >> THIS WAS-
>> YEAH. >> ADULTERY?
>> YEAH, EXACTLY >> Reporter: NANCY SAID DAVID
FINALLY ADMITTED HE HAD A GIRLFRIEND WHO LIVED NEAR THAT
SECOND HOUSE IN FLORIDA. DAVID PROMISED CARMELA HE'D STOP
SEEING HER IMMEDIATELY, AND THEY WENT TO MARRIAGE COUNSELING.
BUT MONTHS LATER SHE DISCOVERED THE AFFAIR WAS STILL GOING
STRONG >> THEN SHE JUST DECIDED-- SHE
JUST SAID, "ENOUGH'S ENOUGH, I CAN'T DO THIS ANYMORE," AND--
TOLD HIM >> HOW DID HE REACT?
>> AS SHE WAS TELLING HIM, HE WAS BEGGING FOR HER TO COME
BACK-- AND SHE SAID, "NO, I CAN'T DO THIS ANYMORE.
YOU'VE HAD CHANCES AND THAT'S IT."
>> Reporter: POLICE WANTED TO HEAR MORE FROM DAVID, BUT WHEN A
TEAM OF INVESTIGATORS WENT TO SPEAK WITH HIM, HE IGNORED THEM.
>> THEY MEET UP WITH HIM IN THE PARKING LOT.
HEY TRY TO ENGAGE HIM IN CONVERSATION, AND HE JUST KEEPS
WALKING AND WOULDN'T STOP, WOULDN'T SPEAK TO THEM
>> Reporter: AFTER THAT DAVID LAWYERED UP.
SO INVESTIGATORS TURNED THEIR FOCUS TOWARD THE GIRLFRIEND.
WHILE THEY'D BEEN IN FLORIDA TRYING TO SPEAK TO DAVID'S
BROTHER, THEY'D PAID HER A VISIT.
>> SHE SAYS THAT SHE WAS UNDER THE IMPRESSION THAT DAVID HAD
BEEN DIVORCED FOR SIX YEARS, THAT THEY MET IN A BAR ABOUT A
YEAR AND A HALF PRIOR. >> SHE KNEW EVERYTHING ABOUT HIS
FLORIDA LIFE AND IT JUST SEEMS THAT SHE
DIDN'T KNOW ANYTHING ABOUT HIS PICKERING LIFE
>> DAVID KNIGHT WAS LIVING A DOUBLE LIFE.
>> YES >> Reporter: THEY LEARNED HIS
PLAN WAS TO SET UP A CONSTRUCTION BUSINESS IN FLORIDA
AND MOVE THERE PERMANENTLY, BUT HE RAN INTO SERIOUS MONEY
PROBLEMS IN THE MONTHS BEFORE CARMELA'S DEATH.
>> WE'RE LEARNING THAT CARMELA WAS IN FINANCIAL DIRE AND THAT
HE WASN'T PAYING THE MORTGAGE OR HELPING HER OUT WITH THE BOYS.
AND SHE FILED AN EMERGENCY MOTION FOR CUSTODY OF THE
CHILDREN, AND THAT HEARING WAS SUPPOSED TO BE HEARD ON THE
THURSDAY AFTER HER MURDER. >> THAT WAS JUST THREE DAYS
LATER -- >> THREE DAYS LATER.
>> YES >> Reporter: INVESTIGATORS
WONDERED IF DAVID HAD FOUND A SOLUTION TO HIS FINANCIAL
PROBLEMS HE HAD TAKEN OUT TWO LIFE
INSURANCE POLICES ON CARMELA TOTALING $850,000.
>> DAVID HAD A LOT TO GAIN FROM CARMELA'S LIFE INSURANCE POLICY.
>> HE DID, AND HE NEEDED THAT MONEY.
>> THE BUSINESS DEAL WAS CLOSING SEPTEMBER 25TH, WHICH, AGAIN,
WAS RIGHT AFTER HER MURDER >> THE TIME WAS RUNNING OUT FOR
HIM, THAT HE NEEDED TO-- >> YES
MAKE THIS HAPPEN >> Reporter: POLICE WERE NOW
CONVINCED THAT DAVID KNIGHT WAS SOMEHOW INVOLVED IN HIS WIFE'S
MURDER - BUT THEY DIDN'T HAVE ANY REAL EVIDENCE.
THEY NEEDED MORE TIME TO VERFIY IF DAVID REALLY WAS WITH GRAHAM
THE DAY CARMELA WAS MURDERED, BEFORE HE WAS SEEN AT THE HOCKEY
RINK BUT TIME WAS RUNNING OUT --
DAVID WAS ABOUT TO BOLT. ONCE HE LAWYERED UP DETECTIVES
GOT A COURT ORDER TO TAP HIS PHONE.
AND THEY LEARNED HE WAS PLANNING TO MOVE TO THE SUNSHINE STATE.
>> AND WHAT DOES THAT MEAN FOR YOUR INVESTIGATION
>> IT WOULD HAVE BEEN VERY PROBLEMATIC TO INVESTIGATE HIM
WHILE HE'S IN FLORIDA AND -- MIGHT'VE MEANT THAT OUR
INVESTIGATION WAS OVER >> Reporter: DETECTIVES HAD
SEIZED DAVID'S PASSPORT EARLIER IN THE INVESTIGATION
BUT NOW THEY LEARNED HE HAD FOUND A WAY TO OUTSMART THEM BY
GOING TO THE GOVERNMENT AGENCY THAT ISSUES PASSPORTS.
>> HE THEN FALSIFIED A DOCUMENT SAYING THAT HE LOST HIS GYM BAG
AND LOST HIS PASSPORT. CANADA REISSUED HIM A NEW
PASSPORT >> Reporter: A NEW PASSPORT
MEANT DAVID KNIGHT COULD SLIP THROUGH THEIR FINGERS, FOR GOOD.
>> THIS WAS A RACE AGAINST TIME. >> IT WAS.
>> COMING UP - DAVID HAD AN ACE UP HIS
SLEEVE -- A PRIVATE JET AND AN UNWITTING ACCOMPLICE
>> YOU WERE ABOUT TO TRANSPORT AN ALLEGED KILLER TO FLORIDA
>> EXACTLY >> HE GETS ON THAT FLIGHT, WE
HAVE NO WAY TO STOP HIM. CARMELA KNIGHT HAD BEEN
MURDERED, DETECTIVES LEARNED HER HUSBAND DAVID, A POSSIBLE
SUSPECT, WAS ABOUT TO HOP ON A PRIVATE JET HEADED FOR FLORIDA
>> HE PLANNED ON NEVER RETURNING TO CANADA AGAIN.
ONCE HE MOVED, THAT WAS IT >> Reporter: THE WIRE-TAP ON
DAVID'S PHONE WAS PAYING OFF >> WE WERE ABLE TO LISTEN TO HIS
PLANS NAMELY, PURCHASING A HOUSE, ENROLLING THE BOYS IN
SCHOOL, AND WHAT HIS FUTURE PLAN WAS IN FLORIDA
>> Reporter: THIS WAS BAD NEWS FOR DETECTIVES
THEY'D BEEN BUILDING A CASE AGAINST HIM, BUT THEY STILL
DIDN'T HAVE ENOUGH EVIDENCE FOR AN ARREST.
>> IT WAS VERY, VERY TENSE BECAUSE WE THOUGHT HE WAS GONNA
BE ABLE TO GET ON THAT JET >> Reporter: PILOT
BASSAM AL-SARRAJ REMEMBERS THE REQUEST COMING IN FROM A
CUSTOMER LOOKING TO FLY PRIVATE TO FLORIDA
IMMEDIATELY. >> IT WAS ACTUALLY AN EVENING,
AROUND 8:00 AT NIGHT AND I SAID, "OH, THIS GUY'S
REALLY LOOKING TO GO SOMEWHERE." >> Reporter: SO BASSAM CALLED UP
THE CUSTOMER IT WAS DAVID KNIGHT.
>> DI SAID, "HEY, THIS IS -- THIS IS THE DEAL
WE -- WE ACTUALLY FOUND A PLANE THAT JUST HAPPENS TO BE GOING TO
FLORIDA. >> Reporter: DAVID WIRED
$15,000, AND THE TRIP WAS SET FOR THE NEXT MORNING
ARE YOU ON PINS AND NEEDLES? >> YES
>> HE GETS ON THAT FLIGHT, WE HAVE NO WAY TO STOP HIM.
>> Reporter: SO DETECTIVES HAD AN IDEA.
REMEMBER DAVID HAD LIED AND GOTTEN HIMSELF A NEW PASSPORT.
POLICE MADE A PLAN TO CONFISCATE IT BEFORE HE GOT ON THE PLANE.
>> SO THIS CONFISCATION OF HIS PASSPORT IS -- IS BASED LESS ON
THE MURDER INVESTIGATION AND MORE ON HIM FALSIFYING PASSPORT
DOCUMENTS. >> RIGHT
>> Reporter: BUT DETECTIVES DIDN'T HAVE MUCH TIME.
THEY CONTACTED POLICE NEAR THE AIRPORT AND ASKED THEM TO SEND
OFFICERS TO INTERCEPT DAVID. BASSAM, THE PILOT, REMEMBERS
DAVID ARRIVING FOR HIS FLIGHT JUST AS THE PLANE WAS FUELED AND
READY TO GO. >> HE SHOWS UP
HE'S GOT HIS DOG HE'S GOT HIS LUGGAGE
WE PUT THE LUGGAGE IN THE PLANE. >> Reporter: AND DOES
DAVID KNIGHT HAVE ANY IDEA THAT -
>> NOTHING >> Reporter: THAT THE POLICE ARE
IN THERE? OR THAT YOU'RE TAKING--
>> NO IDEA >> Reporter: AND THAT'S WHEN THE
POLICE STEPPED IN. >> THE POLICE OFFICER COMES OUT
AND SAYS -- "I'M SEIZING YOUR PASSPORT ON BEHALF OF THE
GOVERNMENT OF CANADA." >> Reporter: OH, MY GOSH
WHAT DID DAVID KNIGHT SAY? >> HE FREAKED OUT.
>> Reporter: NO PASSPORT, NO CHANCE OF ESCAPING TO THE UNITED
STATES YOU WERE ABOUT TO TRANSPORT AN
ALLEGED KILLER TO FLORIDA. >> EXACTLY
>> Reporter: POLICE LET DAVID GO, BUT HE HAD TO KNOW
DETECTIVES WERE ZEROING IN ON HIM.
AND IN FACT, THEY WERE MAKING PROGRESS IN OTHER PARTS OF THE
CASE THEY HAD IDENTIFIED THE MYSTERY
MAN IN THE BLACK SUV >> IT WAS DAVID'S EX-BUSINESS
PARTNER. >> Reporter: THE EX-PARTNER TOLD
DETECTIVES DAVID HAD STOLEN $200,000 FROM HIM.
IT WAS MONEY THEY WERE GOING TO USE TO START A CONSTRUCTION
BUSINESS >> Reporter: THIS BUSINESS
PARTNER MUST'VE BEEN ANGRY >> HE WAS, YES
>> Reporter: ANGRY, YES. BUT THE MORE THEY INVESTIGATED,
THE LESS THEY THOUGHT HE HAD ANYTHING TO DO WITH CARMELA'S
MURDER THEY BELIEVED HE SHOWED UP IN
THE BACKYARD TO CONFRONT DAVE, NOT SCARE CARMELA.
THAT LEFT JUST DAVID, MATT, AND GRAHAM, AND THEY WEREN'T
TALKING. SO DETECTIVES KNEW THEY NEEDED
TO DO SOMETHING BIG. >> WE DECIDED TO DO AN
UNDERCOVER OPERATION WITH GRAHAM MACDONALD
>> Reporter: GRAHAM IS THE TARGET
>> YES >> Reporter: THE PLAN WAS FOR AN
UNDERCOVER OFFICER TO BEFRIEND GRAHAM
>> FOR THEM TO BECOME FRIENDLY, FOR THEM TO BUILD SOME RAPPORT,
AND YOU KNOW, PLAY POOL TOGETHER AND -- AND THAT SORTA THING.
THAT'S -- THAT'S EVENTUALLY WHAT ENDED UP HAPPENING."
>> Reporter: THEY BECAME FRIENDS.
GRAHAM RIGHT AWAY TOLD HIM THAT, LOOK, THE POLICE ARE LOOKING AT
ME FOR THIS MURDER THE UNDERCOVER OFFICER SAID HE
KNEW SOMEONE WHO COULD HELP HIM. HE INTRODUCED GRAHAM TO "UNCLE
DAN. ANOTHER UNDERCOVER OFFICER WHO
WAS POSING AS A MAN WHO HAD A HISTORY OF FIXING PEOPLE'S
TROUBLES WITH THE LAW. "UNCLE DAN" AGREED TO SPEAK WITH
US AS LONG AS WE DIDN'T SHOW HIS FACE
YOU'RE NOT FRIENDS WITH GRAHAM MACDONALD
YOU DON'T WANNA BE FRIENDS WITH HIM, BUT YET YOU HAVE TO
CONVINCE HIM OF THAT >> IT'S DONE THROUGH DIFFERENT
SCENARIOS THROUGHOUT THIS WHOLE OPERATION JUST TO SHOW THAT, YOU
KNOW, I WAS SOMEBODY TRUSTWORTHY.
>> Reporter: UNDERCOVER OFFICER "UNCLE DAN" INVITED GRAHAM AND
HIS FRIEND OUT FOR A DAY OF ICE-FISHING ON LAKE SIMCOE, BUT
SOMETHING CONVENIENTLY HAPPENED ON THE WAY TO THE LAKE
>> WHILE THEY WERE ON THEIR WAY TO THE HUT, THEY WERE PULLED
OVER BY THE POLICE FOR A TRAFFIC STOP
THE POLICE OFFICER RAN BOTH OF THEIR NAMES THROUGH THE POLICE
SYSTEM, AND GRAHAM MACDONALD HAD A RETURN OF BEING A SUBJECT IN A
HOMICIDE >> Reporter: THEY HOPED
MENTIONING CARMELA'S MURDER MIGHT GET GRAHAM OUT OF HIS
COMFORT ZONE >> AS A RESULT OF THAT TRAFFIC
STOP, GRAHAM MACDONALD WAS -- APPEARED TO BE VERY RATTLED BY
THE FACT THAT THE POLICE HAD NAMED HIM.
WHAT HE THOUGHT, WAS A SUSPECT >> Reporter: EVENTUALLY, THE
POLICE LET THEM GET ON THEIR WAY.
EVERYTHING WAS NOW RIDING ON THIS MEETING IN THE ICE FISHING
HUT. COULD "UNCLE DAN" GET GRAHAM TO
TAKE THE BAIT? >> SO WHEN I CAME INTO THE HUT,
GRAHAM WAS SITTING IN THE CORNER
AND I SAID TO HIM, "I HEARD YOU HAVE A PROBLEM."
>> THE PROBLEM I'M RUNNING INTO NOW THEY'RE STARTING TO THROW MY
NAME AROUND. I DON'T KNOW IF THEY'RE USING ME
AS A SCAPE GOAT, OR WHATEVER THE CASE MAY BE, BUT -
>> SO ARE YOU TELLING ME THAT YOU HAD NOTHING TO DO WITH THIS
WHATSOEVER? ARE YOU TELLING ME THAT
>> I CAN'T >> WHAT DO YOU MEAN, YOU CAN'T
>> I CAN'T SAY I NEVER HAD NOTHING TO DO WITH IT.
>> SO I ASKED HIM, "DID YOU KILL HER?
>> COMING UP - >> I COULD TELL THAT HE HAD
KINDA TEARS IN HIS EYES. SOMETHING WAS REALLY BOTHERING
HIM, AND HE WANTED TO TALK >> Reporter: CAN "UNCLE DAN"
REEL IN A SUSPECTED KILLER >> I WAS SHOCKED
I DIDN'T EXPECT THAT TO HAPPEN
COLD ICE FISHING HUT, GRAHAM MACDONALD WAS UNKNOWINGLY
FACE TO FACE WITH AN UNDERCOVER OFFICER.
>> I COULD TELL THAT HE HAD KINDA TEARS IN HIS EYES.
SOMETHING WAS REALLY BOTHERING HIM, AND HE WANTED TO TALK
>> Reporter: DETECTIVES JENNINGS WAITED NEARBY WITH BAITED
BREATH >> >> I WAS IN A VEHICLE ON THE
SHORE JUST OVER THERE OFF TO A PARKING LOT, LISTENING LIVE.
>> I ASKED HIM, "DID YOU KILL HER?
AND HE NODDED YES. >> I WAS SHOCKED
I -- I DIDN'T EXPECT THAT TO HAPPEN
AND IT WAS A HUGE BREAKTHROUGH >> Reporter: THEY FINALLY HAD
THE FIRST PIECE OF THE PUZZLE, BUT DETECTIVES BELIEVED GRAHAM
HADN'T ACTED ALONE AND WERE CERTAIN HIS
"CONFESSION" WASN'T THE WHOLE STORY.
UNCLE DAN NEEDED MORE, BUT HE WAS CAREFUL NOT TO PUSH GRAHAM
INSTEAD, HE ENDED THE MEETING. A WEEK LATER, 'UNCLE DAN'
INVITED GRAHAM TO HIS OFFICE >> BASICALLY TO SIT HIM DOWN AND
GET AS MUCH DETAIL OUT OF HIM AS I POSSIBLY COULD
>> Reporter: INVESTIGATORS HAD COME UP WITH A CLEVER WAY TO GET
GRAHAM TO GIVE A FULL CONFESSION
>> WE DEVELOPED A SCENARIO WHERE I SAID, "I THINK I MIGHT BE ABLE
TO FIX THIS PROBLEM FOR YOU. AND I SAID, "I HAVE A GOOD
FRIEND OF MINE," WHO'S DYING OF CANCER AND DOESN'T HAVE LONG TO
LIVE "HE WILL TAKE THE RAP FOR YOU.
HE WILL CONFESS TO IT, BUT YOU NEED TO ENSURE THAT HIS CHILDREN
WILL BE LOOKED AFTER $10,000 TRUST FUNDS FOR EACH
CHILD. AND HE'LL DO THIS FOR YOU.
>> Reporter: AND LIKE A HOLLYWOOD MOVIE, THEY USED
MAKEUP TO DISGUISE AN UNDERCOVER OFFICER NAMED JAMES TO PLAY THE
PART OF THE DYING MAN. WHEN HE SHOWED UP AT THE OFFICE,
IN A WHEELCHAIR, THEY TOLD GRAHAM, IF JAMES WAS TAKING THE
FALL FOR THE MURDER, HE NEEDED TO KNOW EVERY LAST DETAIL.
>> I HAVE HIM GO THROUGH HIS INVOLVEMENT, HOW IT WAS PLANNED,
HOW IT WAS EXECUTED. >> Reporter: AND THAT'S WHEN
GRAHAM LAID IT ALL OUT, AND NOT ONLY HIS INVOLVMENT BUT
DAVID KNIGHT'S, TOO. HE SAID DAVID HAD HIRED HIM TO
KILL CARMELA >> HE SAID DAVID WANTED HIS WIFE
GONE GRAHAM DID SAY THERE WAS A LOT
OF PLANNING. >> Reporter: GRAHAM TOLD THEM ON
THE DAY OF THE MURDER, DAVID WENT TO FILL UP GAS CANS TO BE
USED TO SET THE FIRE HE SAID DAVID LATER TOOK HIM TO
THE HOUSE, AND LET HIM IN. HE THEN HID IN THE BATHROOM
WAITING FOR CARMELA TO COME HOME
>> SHE CAME IN THROUGH THE GARAGE AND HE ATTACKED HER FROM
BEHIND AND SHE FOUGHT FOR HER LIFE.
THEY RACED AROUND THE KITCHEN ISLAND
HE FINALLY GOT HER DOWN ON THE GROUND AND STRANGLED HER
>> Reporter: HE SAID HE TRIED TO MAKE IT LOOK LIKE CARMELA HAD
OVERDOSED. >> HE PLACED THE TOURNIQUET ON
CARMELA'S BODY AND TRIED TO INJECT HER WITH COCAINE.
LEFT THE SYRINGE IN THE -- IN HER ARM.
>> Reporter: AND THEN WHAT HAPPENED NEXT?
>> THEN HE DRAGGED HER TO THE GARAGE, AND PUT HER FACE-DOWN IN
THE GARAGE AND HE WAITED.
HE WAITED FOR DARKNESS, SO THAT HE COULD LIGHT THE FIRE.
>> Reporter: THIS WAS ALL ABOUT MONEY FOR -- GRAHAM?
>> WELL HE WAS PROMISED $100,000 FROM DAVID KNIGHT AND A
LIFE IN FLORIDA. >> Reporter: NOW INVESTIGATORS
HAD TO BE SURE GRAHAM'S CONFESSION CHECKED OUT
THEY EASILY FOUND THE VIDEO OF DAVID AT THE GAS STATION FILLING
THE GAS CANS AND THEY DISCOVERED ANOTHER
VIDEO THAT PROVED GRAHAM WAS WITH DAVID ON THE DAY OF THE
MURDER THAT'S HIM IN THE PASSENGER
SEAT GRAHAM ALSO TOLD UNCLE DAN THAT
HE AND DAVID BOUGHT BURNER PHONES, SO DETECTIVES TOOK
ANOTHER LOOK AT THE VIDEO SUPPORTING DAVID KNIGHT'S ALIBI.
>> Reporter: THIS IS DAVID KNIGHT AT THE ICE HOCKEY
RINK THE NIGHT OF THE MURDER >> THAT'S CORRECT.
YOU CAN SEE HE'S -- HE'S GOT HIS ONE HAND UP AND HE'S SPEAKING ON
A CELL PHONE >> Reporter: WHILE HE'S SKATING
AROUND >> THAT'S RIGHT.
THE TIME STAMPS ON THE CALLS THERE ARE ACTUALLY RIGHT AFTER
CARMELA'S MURDER >> Reporter: PHONE RECORDS
PROVED IT WAS GRAHAM ON THE LINE
NOW, THERE WAS JUST ONE LAST BOX TO CHECK
IN ORDER TO ARREST DAVID, INVESTIGATORS NEEDED PROOF HE
PAID GRAHAM FOR THE MURDER AS LUCK WOULD HAVE IT, DAVID
HADN'T GIVEN HIM A DIME YET. THIS WAS THEIR OPENING
>> THE UNDERCOVERS TOLD GRAHAM, THAT, "YOU KNOW, YOU WERE
PROMISED $100,000, AND HE HASN'T PAID YOU ANYTHING, SO YOU NEED
TO GO COLLECT. >> Reporter: DETECTIVES PUT A
TAIL ON DAVID AND FOUND HIS FAVORITE WATERING HOLE
GRAHAM'S FRIENDS, THE UNDERCOVER OFFICERS, CONVINCED HIM TO PAY
DAVID A SUPRISE VISIT AT THE BAR.
WHEN HE DID, OTHER UNDERCOVER OFFICERS WERE SCATTERED AROUND
INSIDE AND UNBEKNOWST TO DAVID, AND
EVEN TO GRAHAM, GRAHAM WAS RECORDING IT ALL
>> WE DID PROVIDE HIM WITH SOMETHING THAT HE WASN'T AWARE
THAT WAS ACTUALLY A RECORDING DEVICE
AND THERE WERE ALSO OTHER RECORDING DEVICES IN THE AREA.
>> Reporter: SO YOU'RE ABOUT TO CAPTURE THIS WHOLE CONVERSATION
ON TAPE? >> HOPEFULLY
YES. >> Reporter: WHAT HAPPENS WHEN
GRAHAM APPROACHES HIM? >> THEY TALK
HE WAS QUITE SHOCKED TO SEE GRAHAM WALK BACK INTO HIS LIFE
AGAIN. AND I THINK HIS FIRST THING WAS
LIKE, "WHAT ARE YOU DOING HERE?" >> Reporter: DURING A BRIEF
CONVERSATION, GRAHAM TOLD DAVID ALL ABOUT UNCLE DAN.
AND THE PLAN TO HAVE A DYING MAN TAKE THE FALL FOR THE MURDER
DAVID BOUGHT IT HOOK LINE AND SINKER AND TOLD GRAHAM TO COME
BACK A FEW DAYS LATER. >> THEY MADE AN ARRANGEMENT TO
MEET THE FOLLOWING THURSDAY, AND THAT WAS WHEN DAVID KNIGHT PAID
HIM $5,000 >> I WANT SOMEBODY ELSE TO COUNT
THIS >> Reporter: NEARLY SIX MONTHS
AFTER CARMELA WAS MURDERED, INVESTIGATORS HAD THEIR MEN.
DAVID KNIGHT, GRAHAM MACDONALD, AND MATTHEW KNIGHT WERE ALL
ARRESTED FOR THE MURDER PLOT NANCY WHO HAD LONG SUSPECTED
DAVID PLAYED A ROLE IN CARMELA'S MURDER, FELT VINDICATED.
>> Reporter: DID IT GIVE YOU SOME RELIEF, EVEN FOR JUST A
MOMENT, AFTER EVERYTHING YOU'D BEEN THROUGH
>> OH, YEAH. DEFINITELY
IT DID LIKE A HURRAH KIND OF, LIKE, YOU
KNOW, FINALLY THEY CAUGHT HIM. >> Reporter: AFTER A 4-MONTH
TRIAL, DAVID KNIGHT WAS CONVICTED OF FIRST-DEGREE
MURDER, CONSPIRACY TO COMMIT MURDER AND ARSON
GRAHAM MACDONALD WAS CONVICTED OF THE SAME CRIMES
EACH WAS SENTENCED TO LIFE IN PRISON WITH A CHANCE OF PAROLE
AFTER 25 YEARS MATTHEW KNIGHT PLEADED GUILTY TO
ACCESSORY AFTER THE FACT TO MURDER
HE SPENT A YEAR BEHIND BARS. IT WAS LESS TIME THAN DETECTIVES
HAD HOPED FOR. THEY DID, HOWEVER, THINK
DAVID KNIGHT GOT WHAT HE DESERVED
>> Reporter: INSTEAD OF LIVING HIS NEW LIFE IN FLORIDA, HE'S IN
AN EIGHT-BY-TEN CELL >> HE IS
>> IT'S WHERE HE SHOULD BE >> Reporter: FRANCA COULDN'T
AGREE MORE >> I WANT HIM TO SUFFER, AND
EVERY DAY OF HIS SUFFERING, I WANT HIM -- I WANT HIM TO SEE
CARM'S EYES. AND THINK OF WHAT HE DID, HOW HE
DESTROYED A FAMILY >> I DIDN'T WANNA BELIEVE IT
AND I'D BELIEVED HIM FOR SO LONG
AND JUST CAME TO THE REALIZATION THAT HE RUINED MY CHILDHOOD.
AND HE PUT ME IN A PLACE I DON'T KNOW IF I'LL EVER GET OUT OF
>> Reporter: IT MUST JUST FEEL LIKE A BAD DREAM SOMETIMES
>> SOMETIMES, YEAH I WISH IT WAS, BUT
UNFORTUNATELY, IT'S NOT. >> Reporter: DYLAN NOW LIVES
WITH HIS AUNT NANCY. I'M GLAD THAT YOU HAD A SOFT
LANDING WITH YOUR AUNT AND UNCLE AND THAT YOU FOUND A HOME, WHERE
YOU -- >> YEAH.
>> Reporter: YOU HAVE TWO LITTLE COUSINS.
>> YEAH. >> Reporter: THAT YOU'RE, LIKE,
A BIG BROTHER TO NOW >> YEAH.
PRETTY MUCH. PRETTY MUCH.
AND THEY -- YEAH THEY, YOU KNOW, THEY MAKE ME
HAPPY. DEFINITELY BRING ME JOY IN LIFE.
>> Reporter: NANCY'S FRIENDS GIFTED HER A NECKLACE IN HER
SISTER'S HANDWRITING A KEEPSAKE SHE SAYS IS SO
MEANINGFUL THAT SHE DECIDED TO GET ONE FOR HER MOM TOO.
THEY WEAR THEM OFTEN, KEEPING CARMELA CLOSE TO THEIR HEARTS.
AND THEY GATHER EVERY YEAR TO CELEBRATE CARMELA'S BIRTHDAY
THEY MAKE A HOME-COOKED MEAL TOGETHER
FRANCA STILL SEES HER DAUGHTER IN HER GRANDSONS
DO YOU THINK CARMELA LIVES ON THROUGH HER BOYS
>> SHE DOES. DYLAN LOOKS EXACTLY LIKE HER
>> Reporter: IS THE FUTURE BRIGHT FOR THEM?
>> I HOPE SO I HOPE SO.
THEY HAVE A LOT OF CARM, THANK GOD.
>> THAT'S ALL FOR THIS EDITION OF "DATELINE."
WE'LL SEE YOU AGAIN NEXT FRIDAY AT 9/8 CENTRAL AND, OF COURSE,
I'LL SEE YOU EACH WEEKNIGHT FOR "NBC NIGHTLY NEWS.
I'M LESTER HOLT. FOR ALL OF US AT NBC NEWS,
GOODNIGHT.