Carrie Prejean demanded more than a million dollars during her settlement negotiations with Miss California USA Pageant officials -- that is, until the lawyer for the Pageant showed Carrie an XXX home video of her handiwork.
The video the lawyer showed Carrie is extremely graphic and has never been released publicly. We know that, because TMZ obtained the video months ago but decided not to post it because it was so racy. Let's just say, Carrie has a promising solo career.
We're told it took about 15 seconds for Carrie to jettison her demand and essentially walk away with nothing. As we first reported, the Pageant is paying around $100,000 to her lawyers and publicist -- a fraction of her bills. She pockets nothing in the settlement.
Officials from the Miss California pageant are sending a message to Carrie Prejean -- three can play that game!
The production company that runs the pageant is filing a cross complaint against Prejean, demanding, among other things, that Carrie return the $5,200 the pageant fronted her for her breast augmentation.
In other legal docs, Keith Lewis and crew are asking to strike a portion of Prejean's lawsuit -- the portion dealing with public disclosure of private facts.
The new docs say, "the alleged 'private facts' consist of her breast augmentation (which ceased being private during the swimsuit competition of the nationally-televised Miss USA pageant, in which Ms. Prejean walked the stage in a bikini)."
The cross complaint says, "Had [Carrie] heeded the guidance of the Gospel of John, who admonished only those who are without sin to cast stones in judgment, she might have avoided this legal battle ..."
As for the cross complaint, Lewis and the production company claim Prejean is a hypocrite, championing family values after posing for a variety of "semi-nude photos...[which] surfaced via TMZ.com."
Carrie Prejean told Larry King the Miss California USA people were pushing the gay agenda so hard they couldn't hide it -- even asking her to go to a gay event in disguise.
Prejean insinuated pageant officials wanted her to pose in Playboy -- they've told us they were merely passing the offer along, per her demand.
Prejean did not address Donald Trump's statement to us ...that she treated people in the pageant like s**t and refused to participate in 30 sanctioned events.
UPDATE: We learned Carrie just received her letter of termination. She is officially out.
We've learned "biblically correct" Carrie Prejean will lose her Miss California USA crown today because she doesn't play well with others.
Sources connected with the pageant tell us even Donald Trumphas now had it with Carrie, because she's violating her contract by not getting clearance to do her extracurricular stuff.
We're also told Carrie has been a no-show for appearances she was supposed to make for the pageant organization.
The firing, we're told, is strictly based on Carrie breaching her contract. It's not based on her political and moral views.
Carrie is getting her walking papers this afternoon.
The new Miss California USA will be Miss Malibu Tami Farrell.
We know why Carrie Prejean backed out of doing "Larry King Live" tonight. She partied too hard!
Carrie celebrated her 22nd birthday in Atlanta last night. She was scheduled to do Larry's show tonight in L.A., but her people called hours ago and said Carrie had a birthday party last night and she was really tired and took a flight that put the airhead in the air at the time Larry airs.
And wait, there's more. You've heard the story that Carrie is co-hosting "FOX and Friends" later this month? Well we found out she has not asked anyone from the Miss California pageant for permission -- a direct violation of the ground rules Donald Trump established yesterday at the bimbo summit.
Instead of trying to sound smart, beauty pageant contestants should just stick to what they do best: taking embarrassing topless photographs and entering politics.
Or, as Confucius would say, according to Miss Panama contestant Giosue Cozzarelli: "I am Confucius and I am an ancient Chinese Japanese ancient guy."
So how does a beauty queen turn into the poster child against gay marriage? In the case of Miss CaliforniaCarrie Prejean, the answer may lie in an ugly divorce that may have cemented her views on gay relationships.
Carrie's parents filed for divorce in 1988 and the divorce and custody fights went on for more than a decade -- it was a divorce filled with homosexual allegations hurled by both sides.
In one of the docs, Carrie's dad describes a confrontation he had with her mom in 1996, in which he recounts an argument in a restaurant parking lot, where "Ms. Prejean accused me, in front of our daughter, of homosexuality."
The papers also quote a court-appointed doctor who said "The mother questioned [within hearing of the girls] whether [her father] was a homosexual or had a homosexual roommate."
Carrie's mom says the "gay" allegations went both ways. In court papers dated May 16, 2000, a report from the court-appointed counselor says "The mother also alleges the father told the girls their stepfather was gay, that all men with mustaches are gay." The father's response: "The father acknowledges talking with the girls about the stepfather's brother being gay, not the stepfather."
Also in the docs -- a handwritten letter from Carrie's older sister, in which she recounts a weekend stay with her dad: "One time my sister & I went in the hallway of my dad's apartment, & his roommate's door was open all the way & we saw [the roommate] in bed with another man. I don't think it's right for my sister & I to have to live that way."
So does Carrie believe gays broke up her parents' marriage? We called her rep ... no comment so far. We could not reach Carrie's dad for comment.
For the record, there are other allegations -- absolutely hideous -- in the divorce and custody papers -- which we have elected not to publish.
Carrie Prejean demanded more than a million dollars during her settlement negotiations with Miss California USA Pageant officials -- that is, until the lawyer for the Pageant showed Carrie an XXX home video of her handiwork.
Officials from the Miss California pageant are sending a message to Carrie Prejean -- three can play that game!
UPDATE: We learned Carrie just received her letter of termination. She is officially out. 
We know why Carrie Prejean backed out of doing "Larry King Live" tonight. She partied too hard!
So how does a beauty queen turn into the poster child against gay marriage? In the case of Miss California Carrie Prejean, the answer may lie in an ugly divorce that may have cemented her views on gay relationships.
