All language subtitles for Whistleblower.S01E03.WEBRip.x264-ION10

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>> I FINALLY MET THE PUPPET

MASTERS.

THE ONES WHO HAVE BEEN COOKING
THE BOOKS.

I WANTED NO PART OF THIS.

I COULD SEE MYSELF GOING TO
JAIL.

I FOUND MYSELF UP AGAINST ONE OF
THE MOST POWERFUL CORPORATIONS

IN THE COUNTRY.

I CAME TO BELIEVE THAT THE
COMPANY MIGHT BE DOUBLE- OR EVEN

TRIPLE-BILLING FOR THESE
EXPENSIVE PARTS TO THE U.S.

GOVERNMENT.

AND THIS WAS ADDING UP TO THE
TUNE OF MILLIONS OF DOLLARS.

I WORKED FOR THE DEFENSE
CONTRACTOR, NORTHROP, AND MY JOB

THERE WAS TO TRACK INVENTORY
THAT WOUND UP IN THE B-1 BOMBER,

THE STEALTH BOMBER, AND THE F-15
FIGHTER.

SOMEBODY WAS IN MY HOUSE.

MY FAMILY WAS ASLEEP.

THEY COULD'VE DONE ANYTHING TO
US.

MY NAME IS JAMES H. HOLZRICHTER,
AND I'M A WHISTLEBLOWER.

>> IF YOU KNOW JIM, HE LOVES
AMERICA.

AND HE BELIEVES IN RIGHT AND
WRONG.

THIS WAS NOT JUST AN ORDINARY
FRAUD CASE.

FRANKLY, IT AFFECTED NATIONAL
SECURITY.

>> I WANTED TO GET SOME
DOCUMENTS OUT, TO PROTECT MYSELF

IN CASE THEY WERE DESTROYED.

I SMUGGLED COPIES OF DOCUMENTS
OUT AND BROUGHT THEM TO THE

FEDERAL AGENTS.

MY PHONES WERE TAPPED, AND EVEN
MY CARS WERE TAMPERED WITH.

I CAN'T SAY WHO IT WAS.

SOMEBODY DID IT.

AND I ALMOST LOST MY LIFE.

WE WOUND UP IN A HOMELESS
SHELTER.

THE ENTIRE FAMILY GOES THROUGH
EVERYTHING, THE COST IS SO MUCH.

>> SEE OUR SUCCESSES AND WHEN WE
HAVE MULTIMILLION-DOLLAR

SETTLEMENTS.

WHAT THEY DON'T SAY, AND FRANKLY
WE DON'T TALK ABOUT A LOT, IS

THE CASES WE LOSE.

UNLESS A WHISTLEBLOWER'S
PREPARED FOR THE STRESS, THEY

SHOULDN'T GET INVOLVED.

>> WHEN I WAS YOUNGER, MY FATHER
SAID SOMETHING TO ME THAT I'VE

NEVER FORGOTTEN.

HE SAID, "JIMMY, WHEN IS IT EVER
WRONG TO DO THE RIGHT THING?"

>> Reporter: I'M ALEX FERRER,
THIS IS "WHISTLEBLOWER."

WOULD YOU BE WILLING TO
SACRIFICE YOUR FAMILY'S SAFETY

TO STOP MASSIVE FRAUD ON A TOP-
SECRET GOVERNMENT PROJECT?

>> WE'RE HEADING ON OVER TO THE
PLACE WHERE MARY AND I WERE

LIVING WITH OUR CHILDREN WHEN
THIS ALL BEGAN-- WHEN I FIRST

STARTED FINDING OUT ABOUT THINGS
THAT JUST DIDN'T ADD UP.

AS WELL AS, YOU KNOW, THE HOUSE
WAS BROKEN INTO.

SO YEAH, THIS IS WHERE IT ALL
BEGAN.

>> Reporter: JIM HOLZRICHTER'S
JOURNEY AS A WHISTLEBLOWER BEGAN

A FEW YEARS AFTER HE'D LEFT THE
COAST GUARD AND STARTED HIS

DREAM JOB AT NORTHROP
CORPORATION, ONE OF THE TOP

MILITARY CONTRACTORS IN THE
WORLD.

>> WHERE THEY MADE THE AVIONICS
FOR ALL SORTS OF HIGH TECH

AIRCRAFT.

THE F-16-- THE B-1 BOMBER-- THE
B-52, THEY WERE ALSO WORKING ON

A VERY CLASSIFIED PROJECT THAT
CONGRESS WOULDN'T EVEN ADMIT IT

WAS EXISTING, AND THAT WAS THE
B-2 STEALTH BOMBER.

IT HADN'T MERGED WITH GRUMMAN
YET, SO IT WAS JUST NORTHROP.

SO THEN I BEGAN WORKING' THERE
AN ELECTRONIC TECHNICIAN.

>> Reporter: NORTHROP IS DEALING
WITH SOME OF THE TOP MILITARY

SECRETS OF OUR COUNTRY.

>> YES.

>> Reporter: JIM WAS WORKING AT
NORTHROP'S PLANT IN ROLLING

MEADOWS, ILLINOIS, JUST NORTH OF
CHICAGO.

HIS JOB: TRACKING THE INVENTORY
OF CRITICAL ELECTRONICS FOR THE

AIR FORCE'S F-15 FIGHTER, B-1
BOMBER AND THE B-2 STEALTH

BOMBER.

SO THEY CALLED THESE BLACK
PROGRAMS, RIGHT?

>> UH-HUH.

>> Reporter: AND-- BECAUSE
THEY'RE SO SECRET.

NOBODY REALLY HAD THE WHOLE
PICTURE?

PEOPLE COULD ONLY SEE WHAT'S
GOING ON HERE, BUT THEY COULDN'T

SEE WHAT'S GOING ON OVER HERE?

>> THAT'S EXACTLY WHAT HAPPENED.

>> Reporter: TELL ME ABOUT THE
CULTURE THERE BECAUSE OF THAT.

>> SUSPICION.

FEAR.

THAT REALLY WAS AN UNDERLYING
UNDERCURRENT.

>> Reporter: THE WORK WAS
SENSITIVE AND THE SECURITY WAS

INTENSE.

>> THEY HAD THE CAMERAS ALL OVER
THE PLACE TO WATCH YOU.

THE PHONES YOU KNEW WERE
MONITORED IN AND OUT.

>> Reporter: THEY COULD LISTEN
TO ANY PHONE CALL THAT YOU MADE

OR RECEIVED?

>> INSIDE THE COMPANY, YES.

>> Reporter: BUT JIM REVELED IN
WORKING FOR THE DEFENSE

INDUSTRY.

>> HE WAS SO HAPPY TO BE AT A
REGULAR JOB, A NORMAL JOB AND

MONEY WAS COMING IN EVERY WEEK.

IT WAS GOOD.

I MEAN, IT SEEMED LIKE A GOOD--
GOOD SITUATION.

>> Reporter: JIM, HIS WIFE MARY
AND THEIR FIVE KIDS- AGES THREE

TO 14 AT THE TIME- WERE LIVING
A COMFORTABLE LIFE IN A RENTED

HOME IN THE SUBURBS.

AND AT SOME POINT, YOU MOVE FROM
TESTING EQUIPMENT TO AUDITING

THE SYSTEMS THAT MONITOR PARTS
THINGS LIKE THAT-

>> YES, PRODUCT ASSURANCE.

>> Reporter: "PRODUCT
ASSURANCE": THAT'S THE

DEPARTMENT MAKING SURE THE
COMPANY WAS PROPERLY BILLING FOR

THE PARTS THAT MAKE UP THE
STEALTH TECHNOLOGY VITAL TO OUR

NATIONAL SECURITY.

>> I WAS FINDING DISCREPANCIES,
THINGS THAT JUST DIDN'T ADD

UP.

THERE WERE CIRCUIT CARDS THAT,
AS SOON AS THEY'D COME IN,

THEY'D THROW THEM OUT.

>> Reporter: JIM COULDN'T FIGURE
OUT WHY NORTHROP WOULD SCRAP

PERFECTLY GOOD PARTS.

>> IT STARTED MAKING ME FEEL
SOMETHING'S WRONG HERE.

THEY ALSO HAD WHAT WAS KNOWN AS
AN INFLATED BILL TO MATERIALS.

PHANTOM PARTS, CHARGING FOR
PARTS THAT WEREN'T IN IT,

SALVAGING PARTS-- A PART THAT
HAD FAILED, THEY'D TAKE ALL THE

GOOD PARTS OUT AND REUSE THEM
AND, THEN, CHARGE AGAIN FOR THEM

AS IF THEY WERE NEW.

SO NINE TO $11 MILLION
WORTH OF COST OVERRUNS OR COST

OVERCHARGES TO THE CUSTOMER.

>> Reporter: AND THE CUSTOMER
BEING OVERCHARGED WAS THE U.S.

GOVERNMENT.

SO YOU'RE TELLING ME THAT
NORTHROP WOULD ORDER A PART.

THE PART WOULD COME IN AND THERE
WOULD BE A PROBLEM WITH IT.

THEY'D SEND IT BACK TO THE
VENDOR.

AND WHEN THE VENDOR SENT IT BACK
REPAIRED, THE VENDOR WOULDN'T

BILL NORTHROP, BUT THE
COMPUTER SYSTEM AT NORTHROP

WOULD AUTOMATICALLY BILL THE
GOVERNMENT A SECOND TIME FOR THE

PART?

>> YES.

THAT'S--
>> Reporter: DID THAT EVER

HAPPEN MORE THAN TWICE?

THERE WAS TIMES WHEN THE PART
WAS SENT BACK AGAIN AND THE

GOVERNMENT WAS BILLED--
>> IT HAPPENED HUNDREDS OF

TIMES.

TO THE TUNES OF MILLIONS
AND MILLIONS OF DOLLARS.

>> Reporter: AND HOW EXPENSIVE
WERE THESE PARTS?

>> THEY COULD GO UPWARDS OF
$116,000 FOR ONE OF THEM.

>> Reporter: PER PART?

>> PER PART.

>> Reporter: JIM HAD DISCOVERED
THAT IN SUPPLYING THE

ELECTRONICS FOR THE AIR FORCE'S
CUTTING-EDGE AIRCRAFT, NORTHROP

WAS NOT ONLY DOUBLE- OR TRIPLE-
BILLING FOR EXPENSIVE PARTS,

THEY WERE SHIFTING COSTS FROM
ONE PROJECT TO ANOTHER TO

MAXIMIZE THEIR PROFITS, AND
CONCEALING THOSE DISCREPANCIES

FROM THE GOVERNMENT.

AS YOU'RE FINDING THESE
DISCREPANCIES, WHO ARE YOU

REPORTING THEM TO?

>> MY IMMEDIATE SUPERVISOR,
EVERY ONE OF THEM.

AND THEN ADMINISTRATOR OF
PRODUCT ASSURANCE COMES BY.

AND SHE STOPS AT MY DESK AND SHE
STANDS THERE, "WELL, WHAT ARE

YOU DOING?"
AND I TOLD HER WHAT I WAS DOING

AND SHE LOOKS LIKE SHE'S
THINKING ABOUT SOMETHING.

AND THEN SHE SAYS, "WELL, I WANT
YOU TO STOP NOW."

I REALIZED THAT ALL OF THE
INDICATORS WERE SHOWING THAT

THERE MIGHT BE ACTUAL FRAUD.

I WANTED NO PART OF THIS.

I COULD SEE MYSELF GOING TO
JAIL.

I'M THINKING, "I NEED TO START
COVERING MYSELF IN CASE

SOMETHING, YOU KNOW, HAPPENS."

>> Reporter: AT THIS POINT
YOU'RE THINKING, "I'M GOING TO

START KEEPING A COPY OF
EVERYTHING IN CASE THINGS GO

SOUTH --"
>> FOR MYSELF.

>> Reporter: "I HAVE
DOCUMENTATION"?

>> YES.

[COPY MACHINE WHIRRING]
SO I MADE COPIES OF THE

DOCUMENTS, BUT HOW DO YOU GET
THEM OUT OF A FACILITY THAT IS A

TOP-SECRET FACILITY?

>> Reporter: JIM BEGAN TO
SMUGGLE COPIES OF DOCUMENTS OUT

OF NORTHROP SO HE'D HAVE
EVIDENCE OF THE PROBLEMS HE WAS

TRYING TO EXPOSE AND FIX.

>> SO WHAT I DID IS-- IS I
STARTED TAPING THEM TO MY BODY.

AND I'D TAKE THEM, AND I'D PUT
THEM IN MY SOCK, AND HOLD IT

AGAINST MY LEG LIKE THAT, AND
THEN I COULD WALK OUT LIKE THIS.

>> Reporter: HAD YOU SPOKEN TO
MARY, YOUR WIFE, ABOUT WHAT HAD

BEEN GOING ON?

>> NO.

>> Reporter: SHE DIDN'T KNOW?

>> NO, SHE DID NOT.

>> I GOT MY FEELINGS FROM THE
WAY HE WAS FEELING.

BECAUSE HE WAS STARTING TO FEEL
LIKE HE WAS BEING FOLLOWED AND

WATCHED.

BUT I REALLY DIDN'T WANT TO KNOW
TOO MUCH, BECAUSE IT DID SEEM

LIKE IT KIND OF WAS STARTING TO
GET TO BE A DANGEROUS SITUATION.

AND I THOUGHT, WELL, THE MORE I
KNOW, THE MORE DANGER I'M GOING

TO BE IN.

AND I GOT TO BE HERE FOR MY
KIDS.

>> Reporter: FOR MONTHS, THIS
CONTINUED, AND THEN ONE NIGHT

AFTER WORK, A PHONE CALL FROM A
STRANGER CHANGED EVERYTHING.

>> HE GOES, "MY NAME IS RICHARD
ZOTT.

AND I'M A FEDERAL AGENT FOR THE
DEFENSE CRIMINAL INVESTIGATIVE

SERVICE AND I'M MAKING SOME
INVESTIGATIONS AT NORTHROP AND

I'D LIKE TO TALK TO YOU."

IT WAS LIKE SOMEBODY PUNCHED ME
IN THE STOMACH.

>> Reporter: JIM HOLZRICHTER WAS
HOME WITH HIS FAMILY ONE NIGHT

WHEN HE RECEIVED THAT DISTURBING
PHONE CALL.

>> AND NOW HERE'S SOMEONE SAYING
HE'S A FEDERAL AGENT.

I DON'T KNOW WHO HE IS.

HE'S A VOICE ON THE PHONE.

IT COULD BE SOMEONE FROM
NORTHROP SAYING, "LET'S CHECK

JIM TO SEE IF HE'S GOING TO RAT
US OUT."

AND I COULD BE BEING SET UP.

>> Reporter: BUT THE CALLER WAS,
IN FACT, AN INVESTIGATOR WITH

THE DEFENSE DEPARTMENT NAMED
RICHARD ZOTT.

YOU COLD-CALLED JIM AT HOME
AFTER WORK ONE DAY.

>> YES, I DID.

>> Reporter: AND YOU WERE A
FEDERAL AGENT WITH WHICH--

>> THE DEPARTMENT OF DEFENSE,
THE DEFENSE CRIMINAL

INVESTIGATIVE SERVICE.

AND-- THERE WAS HESITATION ON
THE PHONE.

YOU COULD HEAR THE WHEELS
MOVING.

>> AND HE SAYS, "I WANT TO TALK
TO YOU."

AND I GO, "WELL, I CAN'T VERIFY
YOUR CREDENTIALS.

YOU COULD BE A FOREIGN AGENT.

I WORK FOR A DEFENSE
CONTRACTOR."

I SAYS, "I'LL TELL YOU WHAT I'LL
DO.

I'M GOING TO GO INTO WORK
TOMORROW AND I'LL LET THEM KNOW

THAT YOU CALLED ME."

>> SO I SAID, "YOU KNOW, JIM,
YOU CAN TALK TO THEIR

ATTORNEYS.

BUT THEY WON'T REPRESENT YOU.

THEY'LL REPRESENT THE INTERESTS
OF NORTHROP.

AND SO I THINK YOU AND I REALLY
NEED TO TALK."

AND I TOLD HIM, YOU KNOW, "IF
YOU DON'T WANT TO TALK TO ME,

THE NEXT TIME I TALK TO YOU,
UNFORTUNATELY, IT-- IT MAY BE

TAKING YOU AWAY IN HANDCUFFS."

>> I SAYS, "WELL, WHAT TIME CAN
YOU BE HERE TOMORROW?"

[LAUGHS]
>> Reporter: THAT'S A

CONVERSATION THAT CHANGES YOUR
LIFE.

>> YEAH, OH, ABSOLUTELY.

>> Reporter: AGREEING TO TALK
WITH A FEDERAL AGENT, JIM

HOLZRICHTER HAD TAKEN A
FATEFUL STEP-- HE WAS NOW

OFFICIALLY BLOWING THE WHISTLE
ON THE ALLEGED FRAUD AT

NORTHROP.

WHAT WAS YOUR INITIAL IMPRESSION
OF AGENT ZOTT?

>> OH, MY GOODNESS.

I THOUGHT THE CAVALRY HAD COME.

I THOUGHT, "WELL, NOW--
NOW TH-- HERE'S THE RIGHT PERSON

WHO CAN TAKE CARE OF THIS
PROBLEM."

DID I WANT PEOPLE TO GO TO
JAIL?

NO.

DID I WANT PEOPLE TO LOSE THEIR
JOBS?

NO.

DID I WANT THEM TO SHUT THE
COMPANY DOWN AND PUT 5,000

PEOPLE OUT OF WORK?

NO.

I JUST WANTED THE PROBLEM FIXED.

>> Reporter: HOW DID YOU BECOME
INVOLVED IN THE INVESTIGATION

INTO NORTHROP THAT INVOLVED JIM
HOLZRICHTER?

>> WELL, INITIALLY, AN
INDIVIDUAL NAMED REX ROBINSON

CAME ON OUR RADAR, THAT HE HAD
MADE SOME ALLEGATIONS INVOLVING

A CLASSIFIED PROGRAM.

AND REX SAID, "YEAH, THERE'S AN
INDIVIDUAL NAMED JIM HOLZRICHTER

WHO ALSO WORKS AT NORTHROP WHO
MAY HAVE SOME INFORMATION TO

CORROBORATE WHAT I'M SAYING."

>> IT WAS REX WHO HAD MENTIONED
ME, JUST BECAUSE I HAD TOLD ONE

GUY THAT I WAS RIDING TO WORK
WITH I-- I WAS UNCOMFORTABLE

WITH SOME THINGS I WAS SEEING
GOING ON.

REX WAS WORKING IN THE SAME
PROGRAM AS THE GUY WHO I DROVE

TO WORK WITH WAS.

>> REX WAS RESPONSIBLE FOR
TESTING EQUIPMENT THAT THEY

WERE DEVELOPING FOR THE B-2
BOMBER.

>> IT'S THE MOST SOPHISTICATED
RADAR-JAMMING TECHNOLOGY IN

THE WORLD AT THAT POINT.

>> Reporter: ATTORNEYS MICHAEL
BEHN AND BRUCE HOWARD WOULD END

UP REPRESENTING REX IN HIS
ALLEGATIONS AGAINST NORTHROP.

>> BUT WHAT REX SAW AND WHAT HE
TOLD US WAS THEM FAKING

TESTS.

LIKE, FOR EXAMPLE, THE AIR FORCE
WOULD COME IN--

>> AND THAT'S WHERE THEY HAD THE
DUMMY TEST EQUIPMENT THAT

PRETENDED TO SHOW THAT IT
WORKED.

>> AND WHAT REX SAID WAS THEY--
THEY'D HOOK IT UP SO THAT THE

LIGHTS BLINK.

AND THE-- THE NEEDLES READ WHAT
THEY WERE SUPPOSED TO READ.

BUT, BASICALLY, ALL THE MACHINE
DID WAS TURN ON LIGHTS AND MOVE

NEEDLES!

>> AFTER THE AIR FORCE HAD LEFT
THE REVIEW, THE HEAD DEVELOPER

FOR NORTHROP SAID, "WE LIED OUR
TEETH OFF, NOW WE HAVE TO MAKE

THOSE LIES COME TRUE."

AT THAT STAGE, THE GOVERNMENT
GAVE THE GREEN LIGHT TO GO

FURTHER WITH THE PROJECT AND
PUMPED MORE THAN $250 MILLION

TOWARDS THIS PRODUCT THAT-- DID
NOT WORK.

>> TAXPAYER DOLLARS.

>> TAXPAYER DOLLARS.

>> Reporter: WHEN NORTHROP
LEARNED REX HAD GONE TO THE

F.B.I., THE COMPANY BEGAN TO
GIVE HIM BAD REVIEWS AND

EVENTUALLY FIRED HIM.

THAT'S WHEN REX FOUND HIS WAY TO
THE ATTORNEYS AND OFFICIALLY

BECAME A WHISTLEBLOWER.

JIM, STILL WORKING AT NORTHROP,
DECIDED TO JOIN FORCES WITH REX

TO BUILD A STRONGER CASE AGAINST
THE COMPANY, USING BOTH OF THEIR

ALLEGATIONS.

>> THESE KIND OF LOOK FAMILIAR
TO ME, DON'T THEY?

>> YEAH, DON'T THEY, YEAH--
>> YEAH--

>> THESE ARE THE ONES THAT I HAD
TAPED TO MY-- STOMACH AND

BROUGHT THEM OUT, I HAD THEM
STUFFED IN THERE--

>> I REMEMBER THAT, I REMEMBER
THAT--

>> AND BROUGHT THEM OUT TO YOU.

>> AND I WAS SHOCKED-- I
REMEMBER WHEN YOU BROUGHT THIS

OUT, IT WAS INCREDIBLE.

IT WAS LIKE A TREASURE TROVE FOR
ME.

>> YEAH.

>> 'CAUSE THESE KINDS OF
INVESTIGATIONS ARE SO DIFFICULT,

AND YOU BROUGHT THESE TO ME AND
I REMEMBER WE WERE GOING OVER

LOOKING AT THE SCRAP RATES.

>> YEAH, I WAS-- IT'S JUST LIKE
THERE'S THIS ONE RIGHT HERE.

THEY HAD ONLY BOUGHT 817, BUT
THEY SCRAPPED 1,453.

SO IT WAS LIKE AN OVERCHARGE OF
$119,000 JUST ON THIS ONE PART.

>> JUST THIS ONE, YEAH.

AND THE THING IS: HOW CAN YOU
SCRAP ALMOST DOUBLE THE AMOUNT

THAT YOU PURCHASED?

>> Reporter: FOR THE NEXT YEAR
AND A HALF, JIM CONTINUED TO

PASS ALONG TO AGENT ZOTT
EVIDENCE THAT NORTHROP WAS

SYSTEMATICALLY BILKING THE
GOVERNMENT OF MILLIONS OF

DOLLARS.

JIM WAS DOING THIS AT GREAT
PERSONAL RISK.

>> I THINK A COUPLE TIMES WHEN
YOU WERE COMING OUT, THEY

SEARCHED YOU.

>> RIGHT.

RIGHT, THEY TOOK MY SHIRT OFF
ONE TIME, AND THE DAY BEFORE, I

HAD BROUGHT DOCUMENTS OUT, BUT
THAT DAY, I WASN'T BRINGING

DOCUMENTS OUT.

>> THANK GOODNESS.

>> I CHANGED THE WAY THAT I WAS
BRINGING THE DOCUMENTS OUT

FROM THEN ON.

I DIDN'T HAVE THEM UNDER MY
SHIRT ANYMORE, I PUT THEM IN MY

SOCK.

>> Reporter: JIM NORMALLY GAVE
DOCUMENTS DIRECTLY TO ZOTT.

IT WAS RARE HE BROUGHT THEM
HOME, BUT ONE NIGHT BEFORE HE

WAS TO MEET WITH THE F.B.I.,
HE'D LEFT A STACK OF DOCUMENTS

IN A PILE, ON HIS LIVING ROOM
TABLE.

>> AND SO I HAD THEM SITTING IN
MY LIVING ROOM, RIGHT NEXT

TO MY TELEVISION.

AND THEN THERE'S A NIGHT LIGHT
THERE, A LIGHT THAT'S OFF, I

HAD THEM SITTING THERE.

SO IT WAS ABOUT 4:30 IN THE
MORNING.

AND FOR SOME REASON I WOKE UP, I
DON'T KNOW IF I HEARD A NOISE OR

WHATEVER.

AND I CAME OUT INTO THE LIVING
ROOM AND THE LIGHT WAS ON.

"WHAT IS THIS?"
THE DOCUMENTS ARE TURNED UPSIDE

DOWN, THE LIGHTS ARE ON, THE
DOOR'S OPEN.

AND-- AND IT JUST-- SOMEBODY WAS
IN MY HOUSE!

I WAS SO SCARED.

ONE OF THOSE MOMENTS, AGAIN,
WHERE I'M THINKING, "WHAT HAVE I

DONE TO MY FAMILY TO PUT THEM AT
RISK LIKE THIS?"

SO, I CALLED RICHARD.

I GO, "SOMEBODY WAS IN MY
HOUSE."

AND HE GOES, "THAT'S A
PROFESSIONAL.

HE WAS THERE TO TAKE COPIES OF
WHAT YOU WERE BRINGING TO THE

F.B.I."

>> Reporter: SO HE MUST HAVE
HEARD YOU COMING?

>> HE SAYS, "HE HEARD YOU GET UP
AND HE GOT OUT OF THERE."

>> Reporter: AND WHEN DID THE
BURGLARY OCCUR?

>> THE NIGHT I GOT THEM.

THIS--
>> Reporter: SO SOMEBODY EITHER

TAPPED YOUR PHONE--
>> THE PHONE WAS--

>> Reporter: --OR HAD ACCESS TO
SOMEBODY ELSE WHO KNEW THAT YOU

WERE GOING TO HAVE THE DOCUMENTS
THAT DAY?

>> YES.

>> Reporter: IN THE COURSE OF
THE INVESTIGATION AGENT ZOTT

ALERTED JIM THAT HE HAD FOUND
WIRE TAPS ON REX ROBINSON'S

PHONES.

JIM WAS RISKING A LOT TO HELP
YOU WITH YOUR INVESTIGATION.

>> I THINK JIM WAS RISKING MORE
THAN MANY PEOPLE I'VE EVER

WORKED WITH YEAH.

I WAS VERY CONCERNED ABOUT HIS
SAFETY.

ONCE HIS COVER WAS BLOWN, THEN I
WAS EVEN MORE CONCERNED.

>> Reporter: AND THAT'S EXACTLY
WHAT DID HAPPEN WHEN AN

ASSISTANT U.S. ATTORNEY,
WORKING WITH ZOTT, MADE THE

MISTAKE OF CALLING JIM DIRECTLY
ON HIS WORK PHONE.

>> THE U.S. ATTORNEY FROM THE
DIRKSEN FEDERAL BUILDING CALLS

ME AT MY PHONE, AT MY DESK,
INSIDE ONE OF THE MOST SECURE

FACILITIES ON THE FACE OF THE
PLANET.

>> Reporter: YOUR PHONE THAT'S
BEING MONITORED BY NORTHROP?

>> UH-HUH.

HE GOES, "HEY JIM, IT'S THE U.S.

ATTORNEY.

I WAS WONDERING ABOUT THAT WIRE
I ASKED YOU TO WEAR.

YOU UP FOR THAT?"
AND I GO--

"WHO IS THIS?

I THINK YOU HAVE THE WRONG
NUMBER!"

AND I HANG UP AND I'M GOING,
"NO, NO..."

>> Reporter: AT THAT POINT, YOU
REALIZE?

>> I'M DONE.

>> Reporter: NORTHROP COULD NOT
FIRE JIM OUTRIGHT, BUT THE

COMPANY COULD MAKE HIS LIFE
MISERABLE.

AND NOW, HE BEGAN BRINGING HIS
PROBLEMS HOME.

>> HE WOULD COME HOME AND TELL
ME HOW HE WAS BEING TREATED,

EVEN BY HIS WORKMATES GETTING UP
AND WALKING AWAY FROM THE LUNCH

TABLE-- IT SEEMED SO UNFAIR.

>> PEOPLE THAT I HAD EATEN LUNCH
WITH FOR FIVE YEARS, AND NONE OF

THEM SAID A WORD.

THEY JUST ALL PICKED UP THEIR
TRAYS AND WENT TO ANOTHER TABLE

AND LEFT ME SITTING THERE.

>> I FELT LIKE ALL ALONG HE WAS
DOING THE RIGHT THING.

AND WHY WERE THEY TREATING HIM
SO BADLY?

WHY WEREN'T THEY WORKING WITH
HIM?

WHY WEREN'T THEY CORRECTING THE
PROBLEM?

>> PEOPLE'D SEE ME COMING' DOWN
THE HALL AND THEY'D TURN AROUND

AND GO THE OTHER WAY.

I WAS A PARIAH.

>> Reporter: AND HE HAD REASON
TO FEAR IT COULD GET WORSE.

>> I HAD A FEDERAL AGENT TELL ME
ONE OF HIS WHISTLEBLOWERS

HAD JUST BEEN MURDERED.

>> Reporter: I'M ALEX FERRER.

THIS IS "WHISTLEBLOWER."

>> YOU'RE TRYING TO MAKE THE
BEST POSSIBLE CHOICE IN AMONGST

A BATCH OF BAD ONES, BUT THERE
ARE REPERCUSSIONS TO THAT.

>> Reporter: JIM'S WHISTLEBLOWER
CASE AGAINST NORTHROP WAS STILL

UNDERWAY, BUT A YEAR AND A HALF
AFTER HE FIRST NOTICED PROBLEMS

AT THE COMPANY, HE'D FINALLY
BEEN FORCED TO LEAVE.

AND HOW DID IT FINALLY END, YOUR
EMPLOYMENT WITH NORTHROP?

>> THERE WAS A MEETING THAT WAS
BEING HELD UP AT THE LAWYERS'

OFFICE.

THEIR LAWYERS WANTED TO WANTED
TO TALK TO ME ABOUT THE

INVESTIGATION.

THEY ASKED ME, YOU KNOW, "WHAT
DOES THIS CASE INVOLVE?"

I SAYS, "EVERYTHING I'VE ALREADY
DIVULGED INTERNALLY."

>> Reporter: THE COMPANY KNEW HE
WAS PART OF A DEFENSE DEPARTMENT

INVESTIGATION ALLEGING MASSIVE
FRAUD.

>> THEIR CORPORATE ATTORNEY
SAYS, "WELL, AS YOU KNOW, THERE

ARE LAWS IN PLACE THAT WE CAN'T
RETALIATE AGAINST YOU BECAUSE

YOU'RE A WHISTLEBLOWER," HE
SAYS, "BUT YOU CAN UNDERSTAND

OUR POSITION.

WE DON'T WANT TO LEAVE THE WOLF
LOOSE AMONGST THE SHEEP."

>> Reporter: [LAUGHS]
YOU'RE THE WOLF AND THEY'RE THE

SHEEP?

>> RIGHT.

THAT'S WHAT I WAS-- I WAS--
THAT'S EXACTLY WHAT I WAS

THINKING.

I GO, "WHAT?

I'M THE WOLF?

OKAY..."

>> Reporter: BUT THE STRESS OF
BLOWING THE WHISTLE HAD BECOME

TOO MUCH FOR JIM.

>> I LEFT THAT MEETING AND I WAS
HAVING CHEST PAINS SO BAD, I

THOUGHT I WAS HAVING A HEART
ATTACK.

>> Reporter: TURNED OUT IT
WASN'T?

>> IT WASN'T.

I WENT TO THE HOSPITAL AND THEY
DID ALL SORTS OF TESTS.

MY DOCTOR CAME IN AND SHE PUT ME
ON A SHORT-TERM MEDICAL LEAVE

FOR SITUATIONAL ANXIETY.

>> Reporter: AND YOU NEVER WENT
BACK?

>> I NEVER WENT BACK.

I HAD BEEN BLACKBALLED IN THE
AEROSPACE INDUSTRY.

AND I WOULD NEVER WORK IN THAT
FIELD AGAIN.

THAT WAS RATHER DISHEARTENING,
BECAUSE THE TYPE OF WORK I WAS

DOING WAS WHAT I WANTED TO DO MY
WHOLE LIFE, EVER SINCE I WAS A

CHILD.

I GOT A JOB MANAGING A GAS
STATION IN McHENRY.

AND THEN I GOT A JOB DRIVING A
BUS, PICKING UP THE ELDERLY AND

DISABLED, AND I DID THAT FOR A
COUPLE YEARS BEFORE I STARTED

WORKING FULL-TIME FOR "THE
TRIBUNE" AS A INDEPENDENT AGENT.

IT FIRST STARTED WITH STUFFING
PAPERS AND THEN DELIVERING

NEWSPAPERS TO THE STORES ON
SATURDAY AND SUNDAY.

THAT WAS A SEVEN-DAY-A-WEEK JOB,
365 DAYS A YEAR AND YOU'D WORK

FROM MIDNIGHT UNTIL NOON THE
NEXT DAY, SEVEN DAYS A WEEK, AND

I WORKED FIVE YEARS WITHOUT A
DAY OFF.

>> Reporter: IT QUICKLY BECAME
CLEAR: HERE'S WHERE THE IMPACT

OF BLOWING THE WHISTLE-- AND THE
YEARS OF BUILDING A CASE-- FELL

EQUALLY ON JIM'S WHOLE FAMILY.

>> THIS SCHOOL HERE ON MY LEFT
WE'RE PASSING-- THIS IS WHERE

ALL MY CHILDREN WENT TO SCHOOL,
FROM KINDERGARTEN TO EIGHTH

GRADE.

BECAUSE WE LIVED HERE, OFF AND
ON, IN WONDER LAKE.

>> WE WERE RENTING A HOUSE.

THE KIDS REALLY LIKED IT
THERE.

THEY WERE IN A PRETTY GOOD
SCHOOL, AND-- WE WERE LIVING A

PRETTY GOOD LIFE.

>> THIS IS ALSO THE HOUSE THAT
WE WERE LIVING AT WHEN IT WAS

BROKEN INTO.

AND THAT FRONT DOOR WAS OPEN,
AND THEY HAD A COAT

HANGER HOLDING IT OPEN.

AND WHEN I EXPLAINED THAT TO
RICHARD, HE SAYS, "WELL, THAT'S

WHAT A PROFESSIONAL WOULD DO."

>> THAT RAISED SERIOUS CONCERNS
TO ME.

IT-- 'CAUSE THAT'S NOT A
BURGLARY, I MEAN, YOU KNOW,

GOING SPECIFICALLY FOR THESE
DOCUMENTS.

AND THE FACT THAT THE DOOR WAS
LEFT OPEN TELLS ME THAT THEY

ARE-- THEY-- THEIR LEVEL OF
EXPERTISE IS HIGHER THAN AN

AVERAGE BURGLAR.

>> Reporter: AGENT ZOTT SAYS HE
MENTIONED THE INCIDENT TO THE

ASSISTANT U.S. ATTORNEY WORKING
THE CASE, BUT HE CONSIDERED IT A

MATTER FOR LOCAL LAW
ENFORCEMENT.

>> I TALKED TO MY SUPERVISORS
ABOUT WITNESS PROTECTION

PROGRAM.

AND I REMEMBER I BROUGHT IT UP
WITH JIM AND HE WAS NOT ENTHUSED

WITH THE IDEA OF LIVING IN THE
MIDDLE OF IOWA SOMEWHERE, YOU

KNOW, UNDER AN ASSUMED IDENTITY.

>> WE STARTED LIVING IN FEAR AND
SHAME TOO.

BECAUSE, YOU KNOW, ONCE HE LOST
HIS JOB, YOU KNOW, WE WERE POOR.

WHEN THINGS STARTED-- I THINK
ADAM WAS ONLY TWO OR THREE YEARS

OLD.

AND THEN MY OLDEST DAUGHTER, SHE
WAS IN, JUST FINISHING UP JUNIOR

HIGH.

SO IT KIND OF TOOK UP THEIR
WHOLE LIFE, THEIR WHOLE

CHILDHOOD REALLY.

>> Reporter: YOU ABLE TO SAVE
THE HOUSE?

>> NO.

NO.

WE WERE RENTING AT THE TIME BUT
WE COULDN'T AFFORD IT ANYMORE.

AND SO WE HAD TO MOVE.

BUT WE HAD NOWHERE TO MOVE.

>> Reporter: SO WHERE DO YOU END
UP?

>> HOMELESS SHELTER.

SO, THIS IS THE HOMELESS SHELTER
WHERE WE WERE LIVING AT AFTER WE

LEFT THE HOUSE IN WONDER LAKE.

AND WE STAYED RIGHT ACROSS FROM
US, RIGHT HERE, IS WHERE THE

FIRST APARTMENT WHERE WE WERE
AT.

WELL WE WERE HERE FOR TWO MONTHS
UNTIL WE COULD FIND A PLACE FOR

US TO MOVE INTO.

>> THE THING THAT I ALWAYS
REMEMBER THE MOST IS GRADUATING

EIGHTH GRADE AND THEN HAVING TO
GO TO THE HOMELESS SHELTER RIGHT

AFTERWARDS, AND THEN EVERYBODY
FOUND OUT THAT WE HAD

COCKROACHES THERE, TOO, SO
EVERYBODY STAYED AWAY FROM

US.

>> Reporter: FOR YEARS, JIM
WORKED WITH HIS ATTORNEYS AND

AGENT ZOTT TO BUILD THE CASE,
THEY NEEDED TO PERSUADE THE

DEPARTMENT OF JUSTICE TO GO
AFTER NORTHROP.

>> I'D GO DOWNTOWN TO THE
LAWYER'S OFFICE TO GO THROUGH

DOCUMENTS.

THEY START FLOODING US WITH THIS
PAPER SNOWSTORM.

YOU'VE EVER HEARD OF THE ADAGE
OF A "NEEDLE IN A HAYSTACK?"

IT WAS, LIKE, THEY SENT US THE
HAYSTACK AND KEPT ALL THE

NEEDLES.

>> Reporter: FOR ITS OWN
REASONS, THE GOVERNMENT HAD

DECIDED AGAINST TAKING ON THE
CASE.

ADMITTEDLY, IT WAS COMPLEX, AND
AS ONE OF A HANDFUL OF MAJOR

DEFENSE CONTRACTORS, NORTHROP
NOT ONLY HAD DEEP POCKETS, BUT

TREMENDOUS POLITICAL CLOUT.

>> IT REALLY SUCKS TO BE
INVOLVED IN LITIGATION IN

GENERAL, AND TO BE IN LITIGATION
AGAINST A HUGE CORPORATION CAN

BE VERY DIFFICULT, VERY TIRING,
VERY STRESSFUL.

>> IT WAS HARD GROWING UP
KNOWING THAT WE DIDN'T HAVE THE

SAME THINGS OTHER KIDS DID.

AND WE WEREN'T GOING TO HAVE ALL
THOSE AWESOME CLOTHES THAT

EVERYBODY COMES BACK TO SCHOOL
WITH, LIKE... WE WOULD GO TO

THE-- YOU KNOW, THE RESALE SHOP
OR TO KMART.

AND WE'RE LIKE, "YEAH, WE GET TO
HAVE OUR ONE SHIRT AND OUR ONE

PAIR OF JEANS FOR SCHOOL THIS
YEAR."

LIKE, AND WE WERE SO HAPPY.

IT WAS LIKE A BLESSING TO HAVE
THAT.

>> Reporter: THIS IS THE FIRST
TIME THE ENTIRE FAMILY HAS

TALKED TOGETHER ABOUT WHAT
THEY WENT THROUGH.

>> IT'S ONE OF THE THINGS I WANT
YOU TO UNDERSTAND IS ABOUT WHAT

A WHISTLEBLOWER GOES THROUGH.

IT'S NOT SOMETHING-- HE TRAVELS
THIS ROAD ALONE.

IT'S MY-- THE ENTIRE FAMILY GOES
THROUGH EVERYTHING, AND IT

ALWAYS COMES BACK TO THAT
QUESTION-- WOULD I DO IT AGAIN?

THE COST IS SO MUCH.

HOW DO I GIVE YOU BACK YOUR
CHILDHOOD?

>> I FELT LIKE HE WAS DOING THE
RIGHT THING ALL ALONG.

BUT-- AND I FEARED FOR HIM VERY
MUCH.

I WAS VERY AFRAID.

>> Reporter: MARY'S FEARS WOULD
BECOME ALL TOO REAL WHEN SOMEONE

TAMPERED WITH HER FAMILY'S CARS.

>> I WORKED IN THIS HIGH-TECH
ENVIRONMENT.

THIS IS A TIME WHEN THE MOVIE
"SILKWOOD" WAS COMING OUT.

WHAT HAPPENS TO WHISTLEBLOWERS?

THEY WIND UP IN A TRUNK.

IF SOMETHING WERE TO HAPPEN TO
ME, IT WOULD BE MADE TO LOOK

LIKE AN ACCIDENT.

>> NORTHROP-- THEIR STRATEGY WAS
A SCORCHED EARTH LITIGATION.

THEY TRIED TO DRAG THINGS OUT AS
MUCH AS POSSIBLE.

>> Reporter: KNOWING THE
WHISTLEBLOWERS DID NOT HAVE THE

BACKING OF THE GOVERNMENT, THE
DEFENSE CONTRACTOR DRAGGED OUT

THE LITIGATION AND THE
WHISTLEBLOWER LAWYERS WERE

FOOTING THE BILL.

>> AND THEY WOULD TRY AT THE
HIGHEST LEVELS TO INFLUENCE THE

DEPARTMENT OF DEFENSE WITH WHOM
THEY DEALT WITH ALL THE TIME.

AND THEY WOULD CONTEST EVERY
SINGLE DOCUMENT THAT WE WANTED

TO GET.

>> Reporter: BUT FINALLY, 13
YEARS AFTER JIM'S DECISION TO

BLOW THE WHISTLE, TEN YEARS
AFTER THE GOVERNMENT DECLINED TO

INTERVENE, JIM AND REX AND THEIR
LAWYERS FINALLY HAD ENOUGH DIRT

TO GET THE GOVERNMENT TO TAKE ON
NORTHROP.

>> IT WAS ONE OF THE FIRST, IF
NOT THEFIRST CASE WHERE AFTER

THE GOVERNMENT, INITIALLY,
DECLINED TO GET INVOLVED, YEARS

LATER, AFTER WE MARSHALED SOME
EVIDENCE TO CONVINCE THEM IT WAS

A WORTHY CASE, THEY DECIDED TO
INTERVENE WITH US.

>> Reporter: ULTIMATELY, YOU DID
FIND SOME DOCUMENTS THAT WERE

PRETTY MUCH A SMOKING GUN.

>> YES, ABSOLUTELY.

WE DID HAVE DOCUMENTS, FOR
EXAMPLE, WHERE THEY WERE

TRAINING THEIR OWN PEOPLE,
"WE CAN'T TELL THE TRUTH."

>> "WHAT WILL THE CUSTOMER
ACCEPT AS REASONS WE CAN'T TELL

THE TRUTH?"
WHEN YOU HAVE SOMETHING LIKE

THAT, THAT TO ME IS PRIMA
FASCIA EVIDENCE OF FRAUD,

DECEPTION.

>> Reporter: SO ARE YOU TELLING
ME THAT THEY WERE TRAINING THEIR

PEOPLE TO FIND CREATIVE WAYS NOT
TO TELL THE TRUTH TO THE

GOVERNMENT ABOUT WHAT WAS GOING
ON UNDER THE CONTRACT?

>> THE DOCUMENTS THAT WE FOUND
EVIDENCED THAT PRETTY CLEARLY.

>> WHAT FRAUD IS: FRAUD IS--
IT'S A BIG TERM SIMPLY FOR THEFT

BY DECEPTION.

>> Reporter: AND WHEN RETIRED
AIR FORCE COLONEL ROGER MOSELEY

TOOK A LOOK AT THEIR EVIDENCE--
>> THE SYSTEM IS BROKEN.

>> Reporter: HE WAS LIVID.

>> THIS JUST MAKES YOU FURIOUS
THAT THEY WOULD DO THIS TO US.

>> COLONEL MOSELEY WAS ONE OF
OUR EXPERTS IN THE NORTHROP

CASE, AND SPECIFICALLY ON THE
STEALTH SIDE.

>> I WAS THE DEPUTY DIRECTOR OF
THE B-2.

IT WAS A TERRIFIC JOB, I HAD IT
FOR THREE YEARS AND I THOROUGHLY

ENJOYED IT.

AND IN THE END, WE BUILT AN
AIRPLANE.

AND HERE IT IS.

THE B-2 BOMBER, THE FIRST
STEALTH BOMBER.

A VERY IMPRESSIVE AIRPLANE,
FLIES A LONG WAY, CARRIES A

LOT-- IS ALMOST INVISIBLE TO
RADAR.

>> COLONEL MOSELEY SAID HAD HE
KNOWN OF WHAT NORTHROP WAS

DOING, THEIR FRAUD IN OUR CASE,
AT THE TIME HE WAS IN CHARGE OF

THE STEALTH PROGRAM, HE WOULD
HAVE CUT NORTHROP OFF.

>> IF I HAD KNOWN THAT THIS WAS
GOING ON AT THE TIME, I

GUARANTEE YOU I WOULD'VE BEEN IN
ILLINOIS WITH A PACK OF LAWYERS,

AND WE WOULD'VE GONE OVER THIS.

THIS PART: "OVERCHARGE FOR
PARTS."

IT WOULD'VE BEEN VERY HARD
FOR THEM TO-- ONCE I KNEW THAT

SOMETHING WAS GOING ON, FOR THEM
TO FAKE ME OUT.

BUT WHEN YOU FIND A SLIDE THAT
SAYS, "WE CAN'T TELL THE TRUTH,"

YOU SORT OF BACK AWAY FROM BEING
CONSIDERATE AND YOU REALLY WANT

TO GO AFTER THEM.

UNFORTUNATELY, AS I LOOKED MORE
AND MORE INTO THE PAPERWORK, IT

WASN'T A SIMPLE ERROR.

IT WAS AN ERROR THAT WAS KNOWN
TO THE MANAGEMENT AND THE

MANAGEMENT WAS TELLING THEIR
EMPLOYEES, "WE'LL TAKE CARE OF

IT," AND THEY NEVER DID, AND
THEY AVOIDED TAKING CARE OF IT

ON PURPOSE BECAUSE IT WAS
INCREASING THEIR REVENUE AND

THEIR PROFITS.

WE GAVE THEM A COST-PLUS
CONTRACT.

ALL THE MONEY YOU NEED TO DO
THIS, WITHOUT RESTRICTION.

AND YET THEY STILL DO THIS
KIND OF STUFF.

UNBELIEVABLE.

>> Reporter: AS JIM AND REX'S
CASE AGAINST NORTHROP UNCOVERED

INCREASINGLY DAMNING EVIDENCE OF
FRAUD, IN JIM'S HOUSEHOLD, THE

FAMILY REMEMBERS HOW, OVER THE
YEARS, THE PARANOIA HAD STEADILY

MOUNTED.

>> I REMEMBER THE FAMILY PULLING
TOGETHER DURING THE TIMES OF

UNCOMFORTABLENESS, OR WHEN WE
WERE SCARED, OR SLEEPING AT THE

FOOT OF YOUR BED IN YOUR ROOM
BECAUSE I WAS TOO SCARED TO

SLEEP IN MY ROOM.

>> I KNOW THAT MOM WAS-- WAS
STRESSED ABOUT IT.

AND, YOU KNOW, THAT KIND OF
CARRIED DOWN THE LINE, AND

ME TRYING TO KEEP ALL OF US
TOGETHER TOO.

YOU KNOW?

JUST TRYING TO KEEP IT CALM AND
TRYING TO KEEP IT UPBEAT, AND

NOT REALLY THINK TOO DEEPLY
ABOUT IT.

BUT I-- I DID.

>> MOM WAS SAYING TO ME THE
OTHER DAY AS IS THAT SHE SHOWED

ME HER JOURNAL.

SOMETHING I WAS UNAWARE THAT YOU
HAD BEEN DOING, THAT SHE KEPT--

SHE WROTE DOWN THOSE FEELINGS.

>> I WROTE DOWN SOME THINGS THAT
I COULD HARDLY BELIEVE WHEN I

WENT BACK AND READ THEM AGAIN,
HOW PARANOID I HAD GOTTEN.

MY FIRST ENTRY ACTUALLY WAS
SOMETHING JIM HAD SAID TO ME.

HE SAID, "IT'S NOT IF ANYMORE,
IT'S WHEN."

"DAD KNOWS THEY'RE GOING TO KILL
HIM."

WE NEED TO PREPARE OURSELVES FOR
THIS.

THAT'S WHEN I SAID, "I SHOULD
GET SOME INSURANCE," BECAUSE IT

WAS REAL-- IT WAS A REAL THREAT.

YEAH, BECAUSE I SAID, "WELL, IF
SOMETHING HAPPENS, I GOT TO TAKE

CARE OF THESE KIDS.

WHAT AM I GOING TO DO?"
BECAUSE I FIGURED IF YOU DID

DIE, THEY WOULD MAKE IT LOOK
LIKE AN ACCIDENT.

>> WHEN I WOULD COME HOME FROM
WORK, MY DAUGHTER WOULD PULL ALL

THE BLINDS.

AS YOU CAN SEE, THAT WINDOW
RIGHT THERE IN THE CORNER,

THAT'S WHERE MY DAUGHTER USED TO
PULL THE BLINDS.

SHE SAYS, "SO YOU-- SOMEBODY
WOULDN'T SHOOT YOU THROUGH THE

WINDOW."

>> Reporter: YOUR 16-YEAR-OLD
DAUGHTER WAS PULLING THE BLINDS

BECAUSE SHE THOUGHT SOMEBODY WAS
GOING TO TAKE A SHOT AT YOU

THROUGH THE WINDOW?

>> YES.

YEAH.

>> Reporter: WHEN YOU LEARNED
THIS--

>> IT BROKE MY HEART.

IT BROKE MY HEART.

AS A FATHER, YOU TRY TO KEEP
YOUR FAMILY SAFE.

YOU TRY TO, YOU KNOW, KEEP THE
MONSTERS AT BAY, SO TO SAY.

BUT FOR THEM TO HAVE TO GROW UP
THAT WAY-- HEARTBREAKING.

>> THAT FEELING OF
HELPLESSNESS...

>> Reporter: JIM WORRIED THAT HE
COULDN'T PROTECT HIS FAMILY OR

HIMSELF.

AT SOME POINT, SOMEBODY DID MAKE
AN ATTEMPT ON YOUR LIFE?

>> YES.

I'M DELIVERING SOME PAPERS BUT
I'M GOING SLOW.

AND THE RIGHT, FRONT TIRE SHEARS
OFF.

THE FRONT END OF THE CAR GOES
INTO THE-- THE SHOULDER LIKE

THIS AND STOPS RATHER ABRUPTLY.

FORTUNATELY, I WAS GOING SLOW,
SO IT DIDN'T CAUSE ME ANY

PHYSICAL DAMAGE.

>> Reporter: WHAT CAUSED THE
RIGHT WHEEL TO FALL OFF?

>> WELL, WHEN IT SHEARED, ONE OF
THE BOLTS WAS LAYING THERE AND

THE NUT WAS AT THE END OF THE
STEM.

AND THEN I STARTED GETTING A
CREEPY FEELING.

WHY WOULD THAT BE ALL THE WAY
OUT AT THE END OF THE STEM?

AND I ONLY FOUND THE ONE.

AND SO I CALLED RICHARD ZOTT.

AND HE GOES, "JIM," HE SAYS,
"THAT'S A CLASSIC WAY THAT THEY

MAKE IT LOOK LIKE AN ACCIDENT."

>> AND IF IT'S ACCIDENTAL, IT
WOULD PROBABLY ONLY HAPPEN ONCE.

AND SO IT WASN'T ONLY ONE TIME,
THIS HAPPENED A COUPLE TIMES.

>> YEAH, THREE TIMES.

A FEW WEEKS AFTER IT HAPPENED TO
ME, THEN IT HAPPENED TO MY SON.

AND THEN MY DAUGHTER, A COUPLE
WEEKS AFTER THAT, IT HAPPENED TO

HER WHEN THE TIRE SHEARED OFF OF
HER CAR WHEN SHE WAS MAKING A

TURN, IT JUST BROKE RIGHT OFF
AND ALL THE LUG NUTS WERE GONE.

>> Reporter: WHEN THE LUG NUTS
WERE LOOSENED ON HIS CAR-- DO

YOU THINK PEOPLE WERE REALLY
TRYING TO KILL HIM?

OR DO YOU THINK THEY WERE TRYING
TO SEND HIM A MESSAGE?

OR, YOU KNOW--
>> YOU KNOW, WE-— I GO BACK AND

FORTH ON THAT.

I DON'T REALLY KNOW.

BUT EITHER WAY, THE CONSEQUENCES
COULD'VE BEEN HIS DEATH.

>> WAS IT NORTHROP WHO MADE THE
ATTEMPT ON MY LIFE?

I CAN'T SAY WHO IT WAS.

YOU KNOW?

SOMEBODY DID.

>> HERE'S NORTHROP ON THE LEFT.

THIS IS THE DEFENSE SYSTEMS
DIVISION.

I WAS AT NORTHROP, I DON'T KNOW,
MAYBE A HANDFUL OF TIMES, 'CAUSE

FRANKLY, THEY REALLY DID NOT
WANT TO SEE ME.

>> Reporter: TO THIS DAY,
THERE'S NO PROOF WHO WIRE TAPPED

THE WHISTLEBLOWERS' PHONES,
TAMPERED WITH THE HOLZRICHTER

FAMILY'S CARS, OR WHO BROKE INTO
THE HOUSE.

AND NO EVIDENCE THAT NORTHROP
CORPORATION WAS INVOLVED IN ANY

OF THESE INCIDENTS OR WAS EVEN
AWARE OF THEM.

>> Reporter: THE CASE AGAINST
NORTHROP BECAME ONE OF THE

LONGEST RUNNING WHISTLEBLOWER
LAWSUITS, EVER.

HOW MANY YEARS EXACTLY?

>> COUNTING THE TIME I WAS
UNDERCOVER, 17-AND-A-HALF YEARS.

>> Reporter: YOUR DAUGHTER WENT
FROM BEING THREE YEARS OLD TO 20

YEARS OLD.

>> YES.

>> Reporter: WHILE YOU WERE
INVOLVED IN THE CASE.

>> YES.

>> Reporter: YOU FLEW COLONEL
MOSELEY IN FOR DEPOSITION.

>> YES.

>> Reporter: AND ON THAT SAME
MORNING, NORTHROP ANNOUNCED THAT

THEY WERE GOING TO SETTLE THE
CASE.

>> YES.

>> Reporter: BEFORE HIS
TESTIMONY?

>> YES.

>> SO, I WAS READY TO GO IN.

AND WE GET THIS PHONE CALL THAT
SAID THAT NORTHROP HAD CAVED ON

THE LAWSUIT, AND THEY WERE GOING
TO PAY DAMAGES, AND THEY HAD

OFFERED X AMOUNT OF MONEY AND
THE GOVERNMENT HAD ACCEPTED IT.

IT MAY HAVE BEEN THE FIRST TIME
THAT A GOVERNMENT GUY, WHICH I

CONSIDERED MYSELF, WAS GOING TO
SAY THESE THINGS AND IT WAS

GOING TO BE IN THE PUBLIC
RECORD.

THAT MIGHT HAVE BEEN THE KEY.

I DON'T THINK WE'LL EVER
KNOW.

>> Reporter: IF THE COMPANY, NOW
NORTHROP-GRUMMAN, WENT TO TRIAL

AND LOST, THEY FACED DAMAGES
TOTALING AN ASTOUNDING $1.2

BILLION.

INSTEAD, NORTHROP-GRUMMAN
SETTLED OUT OF COURT, ADMITTING

NO WRONGDOING.

THEY AGREED TO PAY A TOTAL OF
$134 MILLION, ACCORDING TO THE

WHISTLEBLOWERS' ATTORNEYS.

THAT MONEY INCLUDED PAYMENTS TO
THE GOVERNMENT, THE

WHISTLEBLOWERS, AND LEGAL FEES.

NORTHROP-GRUMMAN DISPUTES THAT
TOTAL SAYING THE CORRECT FIGURE

IS $99 MILLION-- STILL A LOT OF
MONEY.

THE COMPANY DECLINED A REQUEST
FOR AN ON-CAMERA INTERVIEW, BUT

GAVE US A STATEMENT, READING IN
PART: "AS DESCRIBED TO US, THIS

PROGRAM RELATES TO A FALSE
CLAIMS ACT SUIT FILED ABOUT 30

YEARS AGO.

THE COMPANY SETTLED THE MATTER
IN 2005, WITH NO FINDING OR

ADMISSION OF WRONGDOING ON THE
PART OF NORTHROP GRUMMAN."

NORTHROP GRUMMAN ALSO STATED
THAT ANY SUGGESTION THAT THE

COMPANY MAY HAVE ENGAGED IN ANY
CRIMINAL WRONGDOING DECADES AGO

WOULD BE WITHOUT "CREDIBLE OR
INDEPENDENT EVIDENCE" AND "FALSE

AND IRRESPONSIBLE."

SO, THE CASE SETTLES?

>> YES.

>> Reporter: BUT FOR
SUBSTANTIALLY LESS THAN THEY

WERE EXPOSED?

>> CORRECT.

AND-- AND THAT'S USUALLY HOW IT
RUNS.

THEY'RE-- IT-- IT'S-- IT'S
INTERESTING HOW PEOPLE NOW REFER

TO IT.

THEY'RE REFERRING TO IT AS THE
FRAUD TAX.

>> Reporter: THE FRAUD TAX?

>> THE FRAUD TAX.

>> Reporter: LIKE A TAX THAT A
COMPANY HAS TO PAY BECAUSE THEY

COMMITTED FRAUD?

>> IF YOU GET CAUGHT.

>> Reporter: IF YOU GET CAUGHT?

>> IF YOU GET CAUGHT.

>> Reporter: THE OTHER
WHISTLEBLOWER, REX ROBINSON,

DIDN'T LIVE TO SEE THE
SUCCESSFUL OUTCOME OF THEIR LONG

ORDEAL.

>> REX ROBINSON HAD PASSED AWAY
A COUPLE YEARS EARLIER.

HE WAS LIVING IN THE MIDDLE OF
THE NEW MEXICAN DESERT IN A

TRAILER.

IT WAS TRAGIC.

IT WAS -- WE WEREN'T FRIENDS
WHEN WE STARTED.

BUT TOWARDS THE END, WE TALKED
EVERY WEEK.

EVERY WEEK, WE TALKED.

HE JUST FELT CHEATED OF A LIFE.

>> Reporter: THE WHISTLEBLOWERS'
SHARE OF THE SETTLEMENT, SPLIT

BETWEEN JIM AND REX'S SURVIVING
FAMILY, AMOUNTED TO AROUND SIX

MILLION DOLLARS EACH.

>> SO, WHEN YOU SEE THESE LARGE
AWARDS LIKE IN MY CASE-- WAS IT

A LIFE CHANGING AWARD?

YES, IT WAS.

BUT THE THING IS-- IS THAT
PEOPLE ARE UNAWARE THAT THE

ATTORNEYS, RIGHT OFF THE TOP,
TAKE 40%.

OH, DON'T FORGET THE I.R.S.

>> Reporter: SOME PEOPLE THINK
THAT WHISTLEBLOWERS DO THIS FOR

THE MONEY.

SEEMS LIKE A VERY DIFFICULT WAY
TO MAKE MONEY.

>> [LAUGHS]
IT'S EXTRAORDINARILY DIFFICULT.

THEY'RE DOING IT BECAUSE IT'S
THE RIGHT THING TO DO.

AND THAT'S WHAT MOST
WHISTLEBLOWERS GET INTO IT FOR,

BECAUSE THEY'RE HONEST PEOPLE OF
INTEGRITY AND REPORTING FRAUD IS

THE RIGHT THING TO DO.

>> MANY CASES, THE
WHISTLEBLOWERS ESPECIALLY THAT

WE'VE BEEN HONORING AS PART OF
OUR CONFERENCE, HAVE THEIR LIVES

THREATENED.

IN JIM'S CASE, JIM WOUND UP
HOMELESS.

>> Reporter: IN THE YEARS SINCE,
JIM HOLZRICHTER HAS BEEN HONORED

FOR HIS EXAMPLE, STANDING UP FOR
WHAT'S RIGHT, WHATEVER THE

COSTS.

TODAY HE WORKS AS A MENTOR TO
OTHER WOULD-BE WHISTLEBLOWERS.

>> I'VE MENTORED SEVERAL DOZEN
WHISTLEBLOWERS OVER THE YEARS.

AND IT'S MY PRIVILEGE TO BE ABLE
TO DO THAT BECAUSE WHEN I WAS

GOING THROUGH THIS, THAT
RESOURCE WASN'T THERE.

>> YOU STOOD UP FOR WHAT WAS
TOTALLY RIGHT AND WHAT WAS

TOTALLY WRONG.

>> BECAUSE WITH AS LITTLE AS WE
HAD, YOU STILL TAUGHT US

HOSPITALITY.

>> YEAH.

>> YOU STILL TAUGHT US CLASS--
>> YOU SAID "YOU DO NOT NEED A

LOT OF MONEY TO HAVE CLASS."

WE LEARNED THINGS THAT WE WOULD
NOT HAVE LEARNED OTHERWISE.

>> THIS IS SO HUMBLING TO HEAR
ALL OF YOU TALK THIS WAY.

AND, YOU KNOW, AND TO -- TO HEAR
HOW YOU FEEL ABOUT ME AS YOUR

FATHER.

'CAUSE ONE OF MY GREATEST FEARS
IS THAT YOU WOULD HAVE RESENTED

ME, YOU KNOW, FOR HAVING YOU TO
GO THROUGH THIS.

IT'S-- IT'S--
[CLEARS THROAT]

IT'S REALLY PAINFUL TO KNOW THAT
WHAT YOU HAD GONE THROUGH.

>> WE'RE STRONGER BECAUSE OF IT.

>> TOWARD THE END OF THE CASE, I
WAS JUST PRAYING THAT IT WAS

OVER.

I DIDN'T CARE IF WE WON, WE
LOST, IF THERE WASN'T A DIME.

I JUST WANTED IT TO BE OVER, AND
THAT'S WHAT I WAS PRAYING AND IT

FINALLY WAS, SO I FEEL LIKE MY
PRAYER WAS ANSWERED THERE.

>> TO ME, MY FAMILY ARE THE TRUE
HEROES THE ONES WHO STUCK WITH

ME AND NEVER ABANDONED ME.

>> Reporter: BLOW THE WHISTLE,
CHANGE THE WORLD.

Captioning sponsored by CBS
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Media Access Group at WGBH
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access.wgbh.org

>> FOR MORE INFORMATION GO TO
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HERE IS WHAT'S COMING UP ON THE
NEXT "WHISTLEBLOWER."