PORTLAND, Ore. -- KGW has learned from a reliable source that police were prepared to arrest Terri Horman on Saturday, June 26 for plotting to kill her now-estranged husband Kaine.

An unsealed restraining order confirmed that Kaine Horman, whose seven-year-old son Kyron has been missing for more than four weeks, was told by investigators that his wife Terri had plotted to kill him. According to more than one source, Terri offered a landscaper a lot of money to kill Kaine.

On June 26th, the landscaper, who has been cooperating with authorities and was wearing a wire, met with Terri and an undercover officer. Police were prepared to arrest her if she implicated herself but Terri cut the conversation short, the source told KGW.

Kaine told of murder-for-hire plot

Later that day, Kaine was told by investigators that she had plotted against him. He was also told if she did it once, there's a chance she did it other times and we're investigating that possibility, according to a source close to the investigation.

That night Kaine took their 19-month-old daughter and moved out.

According to sources, Terri Horman had talked to the landscaper about being in a bad marriage and had claimed that Kaine had hurt her emotionally.

The Oregonian first reported the murder-for-hire plot Sunday morning. KGW independently confirmed the report through a reliable source.

The landscaper - whom Terri had hired to do work last November without Kaine's knowledge - came forward to investigators as they reached out to everyone that they could find who had had contact with the family. While he said he had no intention of carrying out the plot, he did believe that he would be getting something from Terri.

She led him on, sources said.

Police records showed that Terri made two calls to 911 on the night of June 26. The first time, at 5:17PM, was recorded as being related to threats and the second time, at 11:39PM, which was recorded as a custody issue and was made after it was clear to her that Kaine and their daughter were not returning.

Kaine files for divorce, restraining order

Two days later, Kaine filed for divorce and obtained a restraining order prohibiting Terri from having any contact with him or their daughter.

That restraining order was made public July 8. In the restraining order, Kaine states that police provided him with probable cause that his wife Terri was involved in the disappearance of their 7-year-old son Kyron, and that she plotted to have him murdered.

Read: Restraining Order (PDF)

Terri, meanwhile, has hired well-known defense attorney Stephen Houze, whom she contacted on the recommendation of friends and family who had researched the issue.

Source: Terri Horman lied to investigators

The reliable source also told KGW News that investigators believe that Terri has lied to investigators and that there have been several instances where they have wanted to know more about her whereabouts the day her step-son disappeared, including:

* after cell phone records seemed to indicate that she may not have been where she said on that day;

* after her performance during several hours of polygraphs which, the source said, indicated that she was being evasive ; and

* after examining files from her computer.

Investigators have also examined Terri's cell phone and email records, determining whom she had had contact with in the days leading up to her step-son's disappearance.

COMPLETE COVERAGE: Search for Kyron Horman

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