KING: Let me give you the story as we have it. According to German customs officials, investigators in that country are examining documents found in Don Johnson's car involving financial transactions, credit notes, securities, totaling $8 billion. The documents reportedly were found November 6 when Johnson's car was stopped during a routine check as he entered Germany from Switzerland with several other men. German officials have been quoted saying they notified U.S. tax and customs officials because of the large amount. They also say there currently is no indication of illegal transactions. What happened?

DON JOHNSON, ACTOR: You know, this whole week has been this -- it would be -- it's comical, and funny in some ways, if it weren't so damaging and difficult. Last November -- Because some people were under the impression that this just happened, that I was in handcuffs in Germany or Switzerland or somewhere. Last November, I was meeting with some American businessmen in Zurich for a film financing, for a film fund that I was putting together for my company. They gave me some bank statements and some resumes and some other documents, some things to prove that they could perform as investors. I said, Thank you very much. I got in the car. And I started off for Germany to look at the new Mercedes SLR. A great car, and I'm probably going to get one. On the way through the German border, I got stopped. It happens a lot these days with traveling, because of -- since 9/11. I mean, everyone's being stopped for everything. And just like everyone else, I got out. I gave them my passport. And they looked in my assistant's briefcase and saw these documents, saw the bank statements and the resumes and things like that. They didn't really quite understand what they were seeing. And they said, Gee, do you mind if we photocopy these? And I said, Sure, go ahead, copy, do whatever you want. I signed some autographs. We joked around. They said, Hey, Greg (ph), good luck with your film financing, have a great time, and I took off and went to look at the Mercedes. P.S., four or five days ago, in some magazine -- I guess it's a German tabloid in -- somewhere in Germany, (UNINTELLIGIBLE) -- I don't even know the name of it -- some tabloid journalist wrote -- I don't know how he came up with this fantastic idea.

KING: You did not have $8 billion?

JOHNSON: Do you know how much room it would take to put $8 billion? It certainly wouldn't fit in the trunk of any car you've ever seen.

KING: No, but you could have certificates where they...

JOHNSON: And by the way, do you think I had $8 billion, I would be sitting here talking about it?

KING: So you had no money?

JOHNSON: No, I had bank statements and resumes (UNINTELLIGIBLE).

KING: Of people who were going to invest.

JOHNSON: Yes.

KING: Did it totally -- where did they come up with $8 billion?

JOHNSON: I have...

KING: Why not $7 billion?

JOHNSON: I have no idea. Frankly, the deal fell apart, and I never really examined the documents.

KING: So what took so long between November and March?

JOHNSON: Now you're talking. I'd like to know that very same thing myself. Virtually nothing. I've never heard from any authorities. Not the German government, not the American government, not anybody.

KING: But "The Glasgow Herald" headlined -- this is the headline, this is Glasgow, Scotland, I presume -- "German Customs Suspect Miami Vice Star of Running Money Laundering Operation."

JOHNSON: Yes.

KING: Other headlines, "Things Aren't So Sunny for Don." "Vice or Price? TV Star Don Johnson Car-Shopping With $8 Billion to Spend." "Busted... "

JOHNSON: I could have bought the whole company for that.

KING: Here's another headline. "Busted With Billions."

JOHNSON: I know, huh? You know, this is -- I mean, it's funny. KING: It is funny.

JOHNSON: It's funny. But the -- there's some ancillary things that are going on here. I have a new business with partners, and we're making investments and things. And the damage -- now, I've had two bank accounts closed just off of the news reports.

KING: You mean, the bank closed them?

JOHNSON: The bank closed my accounts off of the news reports. Not off of any real investigation. They didn't bother to check and see if there was any real investigation. They closed my bank accounts. My partners are looking at me like, with a jaundiced eye, going, What is going on here?

KING: So what was in the car was statements made by potential investors?

JOHNSON: Yes, potential investors.

KING: How much money was in the car? Money? Actual money?

JOHNSON: I probably had a few hundred bucks in my pocket and credit cards. And the...

KING: And the guys who inspected it didn't think anything of it?

JOHNSON: No. No, they...

KING: Why did they take pictures of it?

JOHNSON: Well, because -- you know, I think that they -- on the German-Swiss border, there's a lot of -- there's -- especially the way I understand it, after I've been, you know, done -- doing my own investigating, there's a lot of transfer of funds that German citizens do to Switzerland and vice versa, and other things. So I think that anybody that comes through there with papers or documents that look like funds, or that look like it might have some financial bearing, they're going to say, Well, maybe we better just take a picture of it, you know. They took a picture of it. I drove on.

KING: Did any of these newspapers, journalists, contact you?

JOHNSON: By the way -- So many newspapers, the BBC, "The New York Post," I mean, everyone jumped on this story. And in the legal action, and I'm considering it, I am going to name each and every one of them. Now, they haven't...

KING: You're going to sue "The New York Post"? You're going to sue the newspapers?

JOHNSON: I'm going to -- I'm -- I'm going to, I'm going to...

KING: For doing...

JOHNSON: ... line up -- I'm going to line -- Because they perpetuated this story of money laundering, based on no evidence, based on no investigation, and it's caused me an unbelievable grief. Unbelievable grief.

KING: None of the papers called you?

JOHNSON: No -- well, they called. Actually, what happened was, about a -- about two weeks ago, we got an e-mail from a journalist at a television station in Germany. And he said, There's something about Don Johnson coming through the border, and was he stopped? And my immediate adviser, quite appropriately, handled it, and called -- e- mailed him back and said, He was stopped. He showed them his passport. They exchanged -- he signed a few autographs. He said, See Yasser Arafat, and they wished him luck, and he went on. About a week later -- well, actually, last Monday, this tabloid wrote on -- in -- I guess according to the (UNINTELLIGIBLE) -- they actually did the television show and said I -- that there was some sort of investigation going on. And then the tabloid wrote that there was maybe money laundering. Well, you say $8 billion, and Don Johnson, apparently that gets covered.

KING: Boy. Well, so -- now, you've had your run-ins with the press at times, have you not? I mean...

JOHNSON: You know something? By and large, the press has been very fair with me, and very...

KING: But you were once bad boy, to quote you, right?

JOHNSON: Well, you know, I mean, I think that they -- I think they sometimes the character. And the characters I played... KING UNINTELLIGIBLE).

JOHNSON: ... and stuff like that mixed up with the actual person.

KING: So where do you, where do you gather, in this interval, where this came from? (UNINTELLIGIBLE) -- I mean, you must be racking your brain to think...

JOHNSON: I truly think that because Sonny Crockett and Nash Bridges are characters that deal with money laundering and drug smuggling and these exotic...

KING: Do you think they associated the characters?

JOHNSON: I think that they -- I think that they don't -- I think they weren't able to delineate. And I also think that it's a sexy story, obviously. It was picked up by some of the most venerable news stations -- news outlets in the world. KING: Did "The L.A. Times" run it?

JOHNSON: No, gratefully, they didn't. I'll tell you who didn't was Reuters, who I gave the interview to yesterday, to -- and I said -- You know, they had the sense, they said, You know, something doesn't smell right with this. Some -- and CNN didn't go with it. Smart. They don't want to be on my list.

KING: You're really thinking of suing people?

JOHNSON: Well, I don't know, I'll tell you what...

KING: How were you damaged? Other than the bank closing your accounts? Well, I guess you were, certainly.

JOHNSON: You know something? For the rest of my life, anytime somebody taps into the Nexus of Don Johnson, it comes up, Oh,yes, and at one time he was -- he was -- there was something shady about it. And forever, you have to answer that question to somebody. Tell me what happened at the border that day. No matter what goes on. That is -- that affects you on a business level, on a credibility level.

KING: And to you, when it happened, this was just a another momentary incident in your life...

JOHNSON: Like any other citizen.

KING: ... that you never gave a second thought to?

JOHNSON: Not one second.

KING: After you drove into Germany you forgot about it...

JOHNSON: Went to Germany -- yes, went to Germany, looked at the car, ordered one.

KING: You've ordered the car?

JOHNSON: Yes.

KING: Did you pay cash? Aha!

JOHNSON: Well, there is a...

KING: Aha!

JOHNSON: By the way, do you need a loan, or -- Well, I'll tell you something else that bothers me. From now on, every time I go out to dinner, I'm going to have to pick up the dinner check.

KING: Well, it must have hit you, I mean, to read $8 billion. I mean...

JOHNSON: Oh, my gosh. I mean, first of all, my son called me, crying. And, I mean, it was -- it's been terrible. It's been terrible. This has been one of the most difficult weeks of my life.

KING: Really?

JOHNSON: Really.

KING: Well, maybe, hopefully, this can put it away. I mean, you're being seen all over the world, it's being seen in Germany now, and hopefully this will...

JOHNSON: Your mouth to God's ears. And maybe the news agencies that picked this up and ran with it in the first place, they could buy themselves a little fair play here by running a good retraction. Otherwise, they're going on my list.

JOHNSON: Going off to Europe again?

JOHNSON: Oh, yes, of course. I -- listen, I enjoy traveling. And I enjoy traveling in a variety of countries. I'll go to Germany. I love Germany. Except one particular place in Germany.

KING: What's the car you bought?

JOHNSON: A Mercedes SLR.

KING: The new coupe?

JOHNSON: Yes.

KING: That's a coupe.

JOHNSON: Yes. It's hot. The doors go up like this. Zhhhut! You know?

KING: What does it go for, that car? Come on, you've got $8 billion.

JOHNSON: I could tell you, but then...

KING: What does it go for? JOHNSON: Eight billion, yes.

KING: Petty cash. What does it go for?

JOHNSON: I don't know, in the -- it's a few hundred thousand.

KING: When are you on screen again?

JOHNSON: I don't know. I'm taking a break. Well, I was taking a break until my friends in Germany helped me get back on this film. KING: You're back on the screen now.

JOHNSON: Yes.

KING UNINTELLIGIBLE).

JOHNSON: Hey, I...

KING: Don Johnson. It was just bank statements. Don Johnson, active businessman. And they didn't even, they didn't even come up with the money. You didn't even invest in a deal.

JOHNSON: Right, yes, that's what's really damning.

KING: Don Johnson. And tomorrow night, Merv Griffin and Cindy Adams will be with us on a very special LARRY KING WEEKEND. Back to tell you more about the rest of the weekend and Monday, after this.

(The End)

*This transcript is copyright of CNN and Larry King Live