VIDEO: Nancy Grace Slams Jon Gosselin For Dating Hailey While Still Married To Kate

Jon Gosselin told a fired-up Nancy Grace Wednesday that he wants to stop production on his family's TLC reality program, Jon & Kate Plus 8, in order to “restore family values."

Grace's heated response: "Say what? Do you think that dating Hailey Glassman when your divorce is not settled that you're restoring family values?"

VIDEO: Jon Gosselin Says Kate Does Not Want To See Him

Grace pounded the 32-year-old reality TV dad in the second part of a testy round-table interview broadcast on the syndicated program The Insider.

VIDEO: Jon Spars With Nancy Grace Part 1

When the feisty  CNN Headline News host said she felt Gosselin was trying to shut down the show because it was being renamed Kate Plus 8, thereby cutting him out of it, Gosselin said he wasn't hurting for cash, to which Grace said: "I can see that. You've got on two diamond earrings. You're obviously not broke."

Read The Blistering Letter Sent By Kate’s Lawyer Regarding Missing Money

Said Jon: "Actually, they're CZs.”   (translation: they’re cubic zirconium – or fake)

Read The Secret Gosselin Court Papers

Jon & Kate Plus 8 airs Mondays at 9/8c on TLC.

VIDEO: John Leaves Los Angeles, Denies He's Going To Lose His Cars