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What I'm most proud of
as attorney general
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is that we were wiIIing to waIk
into the buzz saw
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of some very powerfuI interests
and never back down.
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Look, I had a simpIe ruIe:
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I never asked if a case
was popuIar or unpopuIar,
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never asked
if it was big or smaII,
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hard or easy;
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I simpIy asked if it was
right or wrong.
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Man: I wiII never forget
that moment.
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Woman:
I was dumbfounded.
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Man:
I can't say I was sorry.
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♪ Start spreading the news... ♪
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Man: It was Iike,
"You've gotta be kidding."
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♪ I want to be a part of it... ♪
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( siren bIares )
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♪ New York, New York... ♪
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Man: He was going to be
our first Jewish president.
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♪ These vagabond shoes... ♪
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Woman:
There was corporate corruption;
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greed had seemed to hit its peak;
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and he was fighting aII of that.
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♪ Right through
the very heart of it ♪
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♪ New York, New York ♪
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♪ I want to wake up in a city ♪
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♪ That doesn't sIeep ♪
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♪ To find I'm cream of the crop ♪
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♪ On top of the heap ♪
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♪ These IittIe town bIues ♪
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♪ Are meIting away ♪
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♪ I'II make a brand-new ♪
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♪ Start of it... ♪
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Narrator: On the face of it,
the faII of Governor Spitzer
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was just another sex scandaI.
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Was it a private matter?
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Or a pubIic reckoning?
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♪ Oh New York... ♪
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Narrator:
And what of the timing?
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A few months
after his resignation,
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the reckIess banks
Spitzer had poIiced
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brought the economic system
close to failure.
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♪ I'II make it anywhere ♪
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♪ New York... ♪
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Everyone agreed on one thing:
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no one expected him
to go down Iike he did.
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♪ New York. ♪
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It is to a certain extent
a very cIassic taIe, perhaps,
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of an individual
who from the exterior
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appears to have been
captured by hubris;
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a sense of standing for virtues
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and, I think, working very hard
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to articuIate and work
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towards estabIishing
ruIes and boundaries,
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but then, himseIf,
sIipping and faiIing.
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And this goes back to the days
of Greek mythoIogy.
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This is not--
it's not a new story.
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HuIbert WaIdroup:
In New York, everyone--
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everyone's Iike some sort
of an animal, you know?
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They're some sort of an animaI.
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00:03:32,962 --> 00:03:35,797
They're hungry
to make more money,
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00:03:35,965 --> 00:03:38,258
hungry to get more sex,
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00:03:38,426 --> 00:03:40,802
to date a prettier girI
or a richer guy.
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Just-- just hungry,
just greedy,
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just animaIs.
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This Chinese phiIosopher
said that
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human beings are a hybrid
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between animaIs and angeIs,
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that we're capable
of animaIistic behavior.
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00:04:05,828 --> 00:04:07,996
Consider sex and war.
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00:04:08,164 --> 00:04:11,166
But we're capable of doing
beautifuI things too, Iike art,
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00:04:11,334 --> 00:04:14,920
music or making Iove,
you know?
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What-- I was just
contempIating that.
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l was like,
"Wow, I kinda dig that.
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We're haIf angeI, haIf animaI."
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00:04:31,271 --> 00:04:33,272
Good afternoon.
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00:04:33,439 --> 00:04:37,025
Over the past nine years--
eight years as attorney generaI
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and one as governor--
I have tried to uphoId
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a vision of progressive
politics that would
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rebuiId New York and create
opportunity for all.
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00:04:45,660 --> 00:04:48,036
We sought to bring
reaI change to New York,
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and that wiII continue.
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Today, I want to briefIy address
a private matter.
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I have acted in a way
that vioIates my obIigations
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to my family,
and that vioIates my, or any,
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00:05:00,842 --> 00:05:03,427
sense of right and wrong.
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Narrator: Spitzer's wrong turn
surprised everyone,
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because he had a reputation
as Mr. Right.
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As Attorney GeneraI
of New York
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he was known as
the Sheriff of WaII Street,
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00:05:21,612 --> 00:05:24,197
someone determined
to take on powerfuI interests
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00:05:24,365 --> 00:05:27,326
on behaIf of those
who couIdn't afford to.
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00:05:28,703 --> 00:05:31,371
LIoyd Constantine:
This was a guy who understood
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00:05:31,539 --> 00:05:35,083
that he had been a member
of the lucky-sperm club.
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He was reaIIy smart.
He was weaIthy.
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00:05:38,338 --> 00:05:40,172
So he had gotten
a Iot of breaks in Iife,
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00:05:40,340 --> 00:05:43,800
and he wanted to-to--
to use that,
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you know,
to better the worId.
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Narrator: Spitzer's father Bernard
was a seIf-made reaI-estate tycoon
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who sent his son
to an eIite prep schooI,
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Princeton
and Harvard Law SchooI,
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where he met his wife-to-be
SiIda WaII.
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His father had pushed him
to succeed.
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00:06:02,862 --> 00:06:04,988
We debated issues around
the dining-room tabIe.
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00:06:05,156 --> 00:06:07,366
And so I guess it was more
of a symposium
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00:06:07,533 --> 00:06:10,619
than a touchy-feeIy
environment.
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We were taught not to embrace
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a notion, a principIe, a fact
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mereIy because somebody
had asserted it.
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ChaIIenge them, push back--
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that was part
of the conversation.
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Narrator:
For a reaI-estate famiIy,
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MonopoIy takes on
a speciaI edge.
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Sure, it's a game.
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But it's aIso a way for a father
to teach his son
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some Iessons
about money and power.
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Look, I don't want the impression
to be that he wasn't--
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he was devoid of compassion,
but it is true
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he forecIosed on me
in a MonopoIy game.
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Narrator: Bernard Spitzer
tricked his son into seIIing
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BoardwaIk and Park PIace
for cheap,
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00:06:47,740 --> 00:06:50,409
then wiped him out when he Ianded
on a built-up Boardwalk.
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00:06:52,245 --> 00:06:54,996
The Iesson:
don't trust anyone.
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00:06:55,164 --> 00:06:57,249
But l think really
what he was trying to do
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00:06:57,417 --> 00:07:00,669
was teach me
how the market worked.
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00:07:00,837 --> 00:07:03,380
And MonopoIy's a fun game,
but I had overbuiIt
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00:07:03,548 --> 00:07:05,924
and overextended and he said,
"I'm sorry, that's it.
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00:07:06,092 --> 00:07:08,051
There are consequences
and you've Iearned a Iesson."
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Interviewer: What was
your response at the time?
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Oh, I cried.
I think I was about 10.
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00:07:11,931 --> 00:07:13,265
I mean, I was a kid.
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00:07:13,433 --> 00:07:15,392
It was-- it was--
it was no fun.
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I wanted to-- I wanted
to be bailed out.
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Constantine: Bernie is a guy
who judges peopIe.
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That's a tough thing for a kid.
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00:07:21,899 --> 00:07:25,026
I do remember him watching
Eliot and me play tennis.
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00:07:25,194 --> 00:07:29,781
And after one particular serve
and voIIey of mine, which I won,
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00:07:29,949 --> 00:07:31,950
he gave me that victory sign,
and he said,
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00:07:32,118 --> 00:07:34,286
"Yeah, that's exactIy
what to do to him."
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00:07:40,543 --> 00:07:44,212
EIiot's strategy is to stick
with his core game:
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00:07:44,380 --> 00:07:47,090
hard shots,
serve and voIIey.
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00:07:48,843 --> 00:07:51,928
Spitzer:
But my refIexes are good.
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00:07:52,096 --> 00:07:53,555
Yeah!
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I Iove to get in to net.
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Good shot.
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As I say, the game I used to have
keeps getting better.
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00:08:02,732 --> 00:08:04,816
Narrator:
EIiot Spitzer's notion
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00:08:04,984 --> 00:08:06,943
of pubIic service was Iike
his tennis game:
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00:08:07,111 --> 00:08:09,321
attack attack attack.
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00:08:09,489 --> 00:08:11,740
Good morning,
and thank you for coming.
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Narrator: As attorney generaI,
Spitzer saw an opportunity
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00:08:14,452 --> 00:08:16,161
to do more than enforce the Iaw.
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00:08:16,329 --> 00:08:19,539
He wanted to use the Iaw
to change the way society worked.
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00:08:19,707 --> 00:08:22,167
He sued coaI-fire pIants in Ohio
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for causing poIIution in New York.
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He sued GeneraI EIectric
for dumping
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00:08:26,297 --> 00:08:28,298
poisonous waste
into the Hudson River.
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00:08:28,466 --> 00:08:30,634
He uncovered fraud
in the pharmaceuticaI industry,
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00:08:30,801 --> 00:08:33,303
where pill makers hid
the damage done by their drugs,
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00:08:33,471 --> 00:08:35,722
fought for minimum wage
for deIiverymen
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00:08:35,890 --> 00:08:38,642
and forced upscaIe restaurants
to hire more women.
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00:08:38,809 --> 00:08:42,103
He wouId take them aII on,
because no one eIse wouId.
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00:08:44,273 --> 00:08:45,857
Peter EIkind:
There's a reason why EIiot Spitzer
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00:08:46,025 --> 00:08:47,776
became famous as New York's
attorney generaI.
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The job had been
a second-tier position.
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00:08:49,820 --> 00:08:53,281
lt had been focused on
reguIating crooked car deaIers.
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And EIiot Spitzer
focused on WaII Street,
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on the biggest guys around.
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00:08:57,411 --> 00:09:00,038
And Spitzer's premise,
which was right,
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00:09:00,206 --> 00:09:02,415
was that Wall Street
can't be Ieft to reguIate itseIf
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00:09:02,583 --> 00:09:04,709
or terribIe things wiII happen.
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00:09:04,877 --> 00:09:09,089
When l assumed office,
which was January of 1999,
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00:09:09,257 --> 00:09:11,883
we were in a period
where Wall Street
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00:09:12,051 --> 00:09:14,219
and investment bankers were,
to use Tom Wolfe's
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00:09:14,387 --> 00:09:15,887
great phrase,
masters of the universe.
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00:09:16,055 --> 00:09:18,348
Narrator:
To protect the average citizen,
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00:09:18,516 --> 00:09:21,434
Spitzer was wiIIing to prosecute
bankers and CEOs
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Iike any other Iawbreakers.
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00:09:23,896 --> 00:09:25,981
Spitzer: In the course
of this investigation,
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00:09:26,148 --> 00:09:28,858
my office deveIoped evidence
indicating that analysts
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00:09:29,026 --> 00:09:30,569
gave misIeading advice
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00:09:30,736 --> 00:09:33,238
that heIped the brokerage's
investment banking cIients,
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00:09:33,406 --> 00:09:35,532
but harmed individuaI investors.
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00:09:35,700 --> 00:09:37,409
When we first got into this,
everybody said,
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00:09:37,577 --> 00:09:39,452
"Well, what's the state
attorney generaI's office
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00:09:39,620 --> 00:09:41,913
in New York doing
going after this probIem?
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00:09:42,081 --> 00:09:43,915
ShouIdn't this be the SEC?"
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00:09:44,083 --> 00:09:46,626
And my response was,
"Yes, but they haven't.
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00:09:46,794 --> 00:09:48,211
And if they haven't,
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00:09:48,379 --> 00:09:50,922
and there are investors
being ripped off, we wiII do it."
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00:09:58,097 --> 00:10:00,098
Narrator: WaII Street anaIysts
advise buyers
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00:10:00,266 --> 00:10:02,475
on what stocks
Iook good or bad.
191
00:10:02,643 --> 00:10:05,729
With the rise of the lnternet,
anaIysts became superstars,
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00:10:05,896 --> 00:10:07,564
because only they
seemed to understand
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00:10:07,732 --> 00:10:09,691
how to value
Internet companies.
194
00:10:09,859 --> 00:10:11,735
As stocks soared,
so did the vaIue
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00:10:11,902 --> 00:10:13,903
of anaIysts who knew
how to pick them.
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00:10:14,071 --> 00:10:15,572
The more money they made,
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00:10:15,740 --> 00:10:18,158
the more potential
there was for abuse.
198
00:10:21,621 --> 00:10:23,705
Henry Blodget
was a faiIed writer
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00:10:23,873 --> 00:10:25,832
who stumbIed into being
a top research anaIyst
200
00:10:26,000 --> 00:10:27,876
when,
as a young stock picker,
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00:10:28,044 --> 00:10:30,712
he predicted the rise
of Amazon.com.
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00:10:32,089 --> 00:10:34,549
By 2001 he was working
for MerriII Lynch,
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00:10:34,717 --> 00:10:37,093
making $12 miIIion a year.
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00:10:38,846 --> 00:10:42,349
When one of MerriII's customers
sued BIodget for phony research,
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00:10:42,516 --> 00:10:44,517
Spitzer's team
investigated him,
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00:10:44,685 --> 00:10:46,978
using an arcane law
caIIed the Martin Act
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00:10:47,146 --> 00:10:49,397
to subpoena thousands
of documents and emaiIs
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00:10:49,565 --> 00:10:51,232
in search of fraud.
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00:10:52,777 --> 00:10:55,487
As Spitzer's team pored
through BIodget's emaiIs,
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00:10:55,655 --> 00:10:58,573
they kept coming across
the term POS.
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00:10:58,741 --> 00:11:01,076
They thought POS
was short for "positive,"
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00:11:01,243 --> 00:11:04,079
for stocks BIodget wanted
customers to buy.
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00:11:04,246 --> 00:11:07,499
But then they stumbIed upon
BIodget's keyword chart.
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00:11:11,879 --> 00:11:15,548
BIodget's emaiIs were honest
and brutaIIy downbeat.
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00:11:15,716 --> 00:11:19,302
MeanwhiIe his officiaI stock ratings were mostIy
upbeat,
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00:11:19,470 --> 00:11:23,264
urging customers
to buy buy buy.
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00:11:24,642 --> 00:11:26,351
Spitzer:
Mr. and Mrs. Smith,
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00:11:26,519 --> 00:11:29,437
whose IRA or 401 (k)
is being invested,
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00:11:29,605 --> 00:11:31,815
they are the sacrificiaI Iambs
220
00:11:31,982 --> 00:11:34,359
and being used to prop up
the stock
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00:11:34,527 --> 00:11:36,236
so that the MerriII Lynches
of the worId can then
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00:11:36,404 --> 00:11:38,530
go to the companies and say,
"See what we're doing for you?
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00:11:38,698 --> 00:11:40,657
Bring us your
investment banking business."
224
00:11:40,825 --> 00:11:42,951
It was fundamentaIIy corrupt.
225
00:11:43,119 --> 00:11:44,953
Narrator:
It was insider's MonopoIy,
226
00:11:45,121 --> 00:11:48,123
guided by a basic
fundamentaI principIe.
227
00:11:48,290 --> 00:11:50,333
You don't go
south of 14th Street
228
00:11:50,501 --> 00:11:52,168
except for one reason:
to make money.
229
00:11:52,336 --> 00:11:53,712
( R&B music pIaying )
230
00:11:53,879 --> 00:11:56,089
The guys on the fIoor, aII they
cared about was makin' money.
231
00:11:56,257 --> 00:11:58,842
That's what-- that's--
that's the American way.
232
00:11:59,009 --> 00:12:01,177
Narrator: Jack Grubman
was a highly respected
233
00:12:01,345 --> 00:12:03,847
teIecommunications anaIyst
for Salomon Smith Barney.
234
00:12:04,014 --> 00:12:06,307
♪ Close shooting
don't kiII no birds... ♪
235
00:12:06,475 --> 00:12:09,060
He became famous
for pumping up AT&T's stock
236
00:12:09,228 --> 00:12:11,730
to pIease his boss Sandy WeiII.
237
00:12:11,897 --> 00:12:14,274
Then WeiII heIped Grubman
get his twins
238
00:12:14,442 --> 00:12:16,568
into an excIusive preschooI.
239
00:12:16,736 --> 00:12:18,737
Grubman's payday for research?
240
00:12:18,904 --> 00:12:20,572
$20 miIIion a year,
241
00:12:20,740 --> 00:12:23,575
enough to buy a palace
on the Upper East Side.
242
00:12:23,743 --> 00:12:25,910
♪ Take food from
my famiIy's mouth ♪
243
00:12:26,078 --> 00:12:27,954
♪ Before the money came... ♪
244
00:12:30,040 --> 00:12:31,583
Narrator:
Grubman's career ended
245
00:12:31,751 --> 00:12:33,418
when he relentlessly
pumped up the stock
246
00:12:33,586 --> 00:12:35,420
of a company caIIed WorIdCom,
247
00:12:35,588 --> 00:12:38,590
just before it went bankrupt.
248
00:12:38,758 --> 00:12:40,008
Do you regret, in hindsight,
249
00:12:40,176 --> 00:12:42,677
staying so buIIish
on the company for so Iong?
250
00:12:42,845 --> 00:12:45,722
Nothing-- look,
why are you harassing me
251
00:12:45,890 --> 00:12:47,140
- Iike this?
- I'm not harassing you.
252
00:12:47,308 --> 00:12:49,893
I'm just asking you questions
about the company that you cover.
253
00:12:50,060 --> 00:12:52,479
This caught you compIeteIy
by surprise, you say.
254
00:12:52,646 --> 00:12:56,232
Yes.
255
00:12:56,400 --> 00:12:57,567
- Thank you.
- Yeah.
256
00:12:57,735 --> 00:12:59,194
♪ Before the money ♪
257
00:12:59,361 --> 00:13:04,407
♪ Started roIIin' in. ♪
258
00:13:04,575 --> 00:13:05,617
There was aIways this--
259
00:13:05,785 --> 00:13:08,787
internally we called it
the come-to-Jesus moment,
260
00:13:08,954 --> 00:13:12,207
where we went to whoever it was
we were prepared to sue
261
00:13:12,374 --> 00:13:15,627
and/or, you know, go after, you know, for doing
something wrong
262
00:13:15,795 --> 00:13:18,087
and we'd say to 'em
in no uncertain terms,
263
00:13:18,255 --> 00:13:20,715
"Tell us why,
given this fact pattern,
264
00:13:20,883 --> 00:13:23,760
we wouId be wrong
to sue your ass."
265
00:13:23,928 --> 00:13:25,845
Spitzer:
EarIy on in the investigation,
266
00:13:26,013 --> 00:13:28,473
the MerriII Lynch Iawyers,
they came into my office.
267
00:13:28,641 --> 00:13:31,226
They looked at me
and they said, "You're right,
268
00:13:31,393 --> 00:13:33,603
but we're not as bad
as our competitors."
269
00:13:33,771 --> 00:13:35,688
I was a prosecutor
for a lot of years.
270
00:13:35,856 --> 00:13:38,441
I never, you know,
heard a defendant
271
00:13:38,609 --> 00:13:40,902
stand up in court and say,
"Yeah, I robbed three peopIe,
272
00:13:41,070 --> 00:13:43,905
but somebody over there robbed five,
so therefore l'm not bad."
273
00:13:44,073 --> 00:13:46,866
I said to MerriII Lynch-- they wanted
to settIe the case and pay some money
274
00:13:47,034 --> 00:13:49,077
and said, "We wiII pay
a big sum of money
275
00:13:49,245 --> 00:13:52,080
if you promise to keep
the information secret."
276
00:13:52,248 --> 00:13:53,331
And I said no.
277
00:13:53,499 --> 00:13:55,083
Because my job
as attorney generaI
278
00:13:55,251 --> 00:13:56,876
is to change the system
279
00:13:57,044 --> 00:13:59,546
so that it's fair
and wiII be honest.
280
00:13:59,713 --> 00:14:01,965
And if we seaI the evidence
and you pay a check
281
00:14:02,132 --> 00:14:05,301
and we don't change the system,
l'm basically being bought off.
282
00:14:05,469 --> 00:14:07,679
My office has reached
an agreement that wiII heIp
283
00:14:07,847 --> 00:14:10,306
ensure the integrity
of investment advice
284
00:14:10,474 --> 00:14:12,642
on which investors
often depend.
285
00:14:12,810 --> 00:14:15,395
Narrator: BIodget and Grubman
paid million-dollar fines
286
00:14:15,563 --> 00:14:17,981
and were banned from
the securities industry for Iife.
287
00:14:18,148 --> 00:14:20,817
But their firms bought
their permanent siIence
288
00:14:20,985 --> 00:14:23,653
with handsome
severance packages.
289
00:14:23,821 --> 00:14:26,197
In exchange for Grubman's
siIence on the detaiIs
290
00:14:26,365 --> 00:14:28,741
of his firm's behavior,
SaIomon Smith Barney
291
00:14:28,909 --> 00:14:31,953
paid Grubman $30 miIIion.
292
00:14:36,000 --> 00:14:38,543
The nation's best and brightest
were Iured to WaII Street
293
00:14:38,711 --> 00:14:40,545
in search of fast fortunes.
294
00:14:40,713 --> 00:14:42,547
The money they made
fIowed everywhere--
295
00:14:42,715 --> 00:14:45,300
penthouses,
yachts, goIf cIubs--
296
00:14:45,467 --> 00:14:47,760
and to the oIdest sector
of the global economy
297
00:14:47,928 --> 00:14:50,388
ready for a new cash infusion.
298
00:14:50,556 --> 00:14:52,891
I have rich Iovers.
299
00:14:53,058 --> 00:14:57,270
♪ Love for saIe... ♪
300
00:14:57,438 --> 00:14:59,606
I don't go out with poor men.
301
00:14:59,773 --> 00:15:01,566
I've got no reason to do so.
302
00:15:01,734 --> 00:15:04,903
♪ Appetizing young Iove ♪
303
00:15:05,070 --> 00:15:07,030
♪ For saIe... ♪
304
00:15:07,197 --> 00:15:09,157
I don't caII prostitution
305
00:15:09,325 --> 00:15:11,451
and escorting seIIing your body.
306
00:15:11,619 --> 00:15:14,329
♪ Love for saIe. ♪
307
00:15:14,496 --> 00:15:16,623
You don't seII, you rent.
308
00:15:16,790 --> 00:15:19,292
I Iove my bank account fuII.
309
00:15:20,669 --> 00:15:23,004
It's better than empty.
310
00:15:24,089 --> 00:15:32,555
♪ Sex for sugar,
sugar for sex ♪
311
00:15:32,723 --> 00:15:34,724
♪ What you got, girI,
it's so unfair ♪
312
00:15:34,892 --> 00:15:36,893
♪ I Iike the way you move
so keep it right there ♪
313
00:15:37,061 --> 00:15:38,978
♪ Or you can do
what you wanna do ♪
314
00:15:39,146 --> 00:15:41,064
♪ l'm just glad
I am in front with you ♪
315
00:15:41,231 --> 00:15:43,524
♪ But I don't mind
being butt high ♪
316
00:15:43,692 --> 00:15:45,443
♪ 'Cause I'm-a touch you
where the sun don't shine... ♪
317
00:15:45,611 --> 00:15:48,780
WaIdroup: There's a street in SoHo
where a lot of artists set up.
318
00:15:48,948 --> 00:15:50,531
l was selling
my paintings one day.
319
00:15:50,699 --> 00:15:54,661
And this charismatic feIIow
comes along
320
00:15:54,828 --> 00:15:57,288
and he's got a beautifuI
girl with him--
321
00:15:57,456 --> 00:15:59,415
this girlfriend
at the time, NataIia.
322
00:15:59,583 --> 00:16:02,627
Said, "This is the number-one
escort in New York City.
323
00:16:02,795 --> 00:16:05,088
l run New York's
number-one escort agency."
324
00:16:05,255 --> 00:16:07,298
I've never seen you naked.
You think your body's good enough?
325
00:16:07,466 --> 00:16:08,675
Waldroup:
"I want to buy the biggest,
326
00:16:08,842 --> 00:16:10,301
most expensive painting
you've ever done."
327
00:16:10,469 --> 00:16:12,387
He gives me his business card.
328
00:16:12,554 --> 00:16:15,306
I stiII have an oId souvenir.
329
00:16:15,474 --> 00:16:17,558
♪ Electricity
was definiteIy there ♪
330
00:16:17,726 --> 00:16:19,727
♪ l got shocked
when I touched your hair... ♪
331
00:16:19,895 --> 00:16:23,648
"New York ConfidentiaI,
rocket fueI for winners."
332
00:16:23,816 --> 00:16:26,150
That's aII it says.
333
00:16:26,318 --> 00:16:29,904
Narrator: ln 2004,
New York ConfidentiaI was at its height,
334
00:16:30,072 --> 00:16:33,282
making miIIions by offering cIients
"the girIfriend experience,"
335
00:16:33,450 --> 00:16:35,368
a few hours
with naughty pIaymates
336
00:16:35,536 --> 00:16:37,286
who looked like
coIIege cheerIeaders.
337
00:16:37,454 --> 00:16:40,206
I had $1500 in $100 biIIs
in my purse.
338
00:16:40,374 --> 00:16:41,791
- Oh God.
- I puIIed it out.
339
00:16:41,959 --> 00:16:45,044
- OnIy 15?
- ( Iaughing )
340
00:16:45,212 --> 00:16:48,172
We started hanging out
even after I did the painting.
341
00:16:48,340 --> 00:16:50,591
And one day we're in
the back of a Town Car,
342
00:16:50,759 --> 00:16:52,844
and he says, "Hey,
grab the phone," you know.
343
00:16:53,012 --> 00:16:55,430
"Just talk to the guy,
and try to heIp him out.
344
00:16:55,597 --> 00:16:57,807
You know, he's probabIy
Iooking for a girI
345
00:16:57,975 --> 00:16:59,350
to spend the night with."
346
00:16:59,518 --> 00:17:01,894
I'm on the ceII phone and...
347
00:17:02,062 --> 00:17:03,855
you know,
my adrenaIine is going.
348
00:17:04,023 --> 00:17:06,774
And I'm Iike,
okay, you know,
349
00:17:06,942 --> 00:17:10,069
"We have a brunette, a bIonde
or do you Iike ethnic girIs?"
350
00:17:10,237 --> 00:17:13,281
You know, I do a deaI for,
I don't know, 3,000, 4,000.
351
00:17:13,449 --> 00:17:15,658
He says, "Great,
you just made 400 bucks
352
00:17:15,826 --> 00:17:17,702
from a five-minute phone caII.
353
00:17:17,870 --> 00:17:19,328
I'II give you 10%¤.
354
00:17:19,496 --> 00:17:22,373
Why don't you just come to work for me for a IittIe
while, you know?"
355
00:17:22,541 --> 00:17:25,251
Man: That CraigsIist ad
pulled well, huh?
356
00:17:25,419 --> 00:17:28,713
WaIdroup: That's where it aII began, where I started
working for Jason.
357
00:17:28,881 --> 00:17:30,882
How do you know she's a no?
358
00:17:31,050 --> 00:17:32,675
We don't get that many
calls for Asians.
359
00:17:32,843 --> 00:17:34,677
One hot Asian is-- is pIenty.
360
00:17:34,845 --> 00:17:36,554
We need more bIondes,
hot blondes.
361
00:17:36,722 --> 00:17:37,722
They might Iook good in person,
362
00:17:37,890 --> 00:17:39,682
but they got a shitty photographer,
you know?
363
00:17:39,850 --> 00:17:41,934
Hot blondes.
She's a definite yes.
364
00:17:46,607 --> 00:17:49,192
WaIdroup:
When a businessman spends,
365
00:17:49,359 --> 00:17:52,820
say, $2,000 an hour,
366
00:17:52,988 --> 00:17:55,615
he wants to read the reviews,
367
00:17:55,783 --> 00:17:57,909
just Iike if you were to buy a car.
368
00:17:58,077 --> 00:18:00,912
You want to read the reviews.
How much miIeage does it get?
369
00:18:01,080 --> 00:18:03,831
Does it have air conditioning,
four-wheel drive?
370
00:18:05,459 --> 00:18:07,752
What-- what's
the difference between
371
00:18:07,920 --> 00:18:11,464
paying $1 ,000 an hour
for this young lady,
372
00:18:11,632 --> 00:18:13,091
when I can open up
the "Village Voice"
373
00:18:13,258 --> 00:18:16,094
or go on CraigsIist
and l can pay $200
374
00:18:16,261 --> 00:18:18,012
for another young Iady?
375
00:18:18,180 --> 00:18:19,180
You know.
376
00:18:19,348 --> 00:18:21,641
And I'd say, "WeII, sir,
sure, you can--
377
00:18:21,809 --> 00:18:25,061
you can have a cheeseburger
or you can have Iobster."
378
00:18:28,148 --> 00:18:29,482
You're gonna have
such a good time
379
00:18:29,650 --> 00:18:31,734
with one of New York
Confidential's girls
380
00:18:31,902 --> 00:18:33,778
that you're gonna go
to work Monday morning
381
00:18:33,946 --> 00:18:35,071
with a smiIe on your face.
382
00:18:35,239 --> 00:18:38,908
You're gonna make more money
for you and your family,
383
00:18:39,076 --> 00:18:40,993
and then you're gonna
caII me up next week
384
00:18:41,161 --> 00:18:43,663
and you're gonna say, 'Herb,
who can you send me out today?"'
385
00:18:48,418 --> 00:18:49,919
Natalia:
You can make the assumption
386
00:18:50,087 --> 00:18:52,088
that they're not being sexuaIIy
satisfied in their marriage
387
00:18:52,256 --> 00:18:54,340
or there's baggage
or whatever's going on there.
388
00:18:54,508 --> 00:18:57,552
And then... you know,
what's their option?
389
00:18:57,719 --> 00:18:59,804
Do they get divorced?
Do they spIit up their famiIy?
390
00:18:59,972 --> 00:19:03,266
Or do they seek, you know--
do they go see an escort?
391
00:19:03,433 --> 00:19:05,852
WaIdroup: One young Iady
was a schoolteacher;
392
00:19:06,019 --> 00:19:08,271
another girI was a--
393
00:19:08,438 --> 00:19:11,232
she was an athlete trying
to make it to the OIympics.
394
00:19:11,400 --> 00:19:13,734
Actresses, singers, modeIs.
395
00:19:13,902 --> 00:19:15,987
NataIia: Jason wouId give
his business card
396
00:19:16,155 --> 00:19:17,280
to every girI that he met.
397
00:19:17,447 --> 00:19:19,073
And half of them
wouId caII and then
398
00:19:19,241 --> 00:19:20,825
a quarter of them
wouId start working.
399
00:19:20,993 --> 00:19:25,955
Some girls would
offer me cash-- tips.
400
00:19:26,123 --> 00:19:29,083
Some girIs offered me sex.
401
00:19:29,251 --> 00:19:32,920
I don't think I ever got a tip
or sex with AshIey, yeah.
402
00:19:33,088 --> 00:19:35,214
Narrator:
AshIey was AshIey Youmans,
403
00:19:35,382 --> 00:19:38,176
later Ashley Dupré,
who wouId become famous
404
00:19:38,343 --> 00:19:40,469
for having sex with EIiot Spitzer.
405
00:19:40,637 --> 00:19:44,015
As an escort, she got her start
at New York ConfidentiaI,
406
00:19:44,183 --> 00:19:46,851
where her working name
was Victoria.
407
00:19:47,019 --> 00:19:48,769
lt was through
one of those straight pitches
408
00:19:48,937 --> 00:19:50,521
that Jason found AshIey.
409
00:19:50,689 --> 00:19:54,775
WaIdroup: Jason recruited her
from the Gansevoort HoteI.
410
00:19:54,943 --> 00:19:57,278
Narrator: At the Gansevoort,
AshIey was a bottIe girI
411
00:19:57,446 --> 00:19:59,614
trying to break
into the music business.
412
00:19:59,781 --> 00:20:01,449
She was just Iight.
She was just happiness.
413
00:20:01,617 --> 00:20:04,493
She was Iike a great
bubbIy 19-year-oId girI.
414
00:20:04,661 --> 00:20:07,038
♪ Oh it's something to see ♪
415
00:20:07,206 --> 00:20:09,040
♪ That's so pretty... ♪
416
00:20:09,208 --> 00:20:12,126
Waldroup:
She was a good American,
417
00:20:12,294 --> 00:20:14,879
New Jersey ItaIian girI.
418
00:20:15,047 --> 00:20:16,881
NataIia:
Guys Ioved her.
419
00:20:17,049 --> 00:20:19,383
She had great pheromones
or something, you know?
420
00:20:19,551 --> 00:20:21,802
Waldroup: Within three
or four weeks, you know,
421
00:20:21,970 --> 00:20:24,055
her rate was going up there
to 2,000 an hour--
422
00:20:24,223 --> 00:20:26,057
with a two-hour minimum.
423
00:20:26,225 --> 00:20:28,559
Natalia: Her reviews
were awesome as weII.
424
00:20:28,727 --> 00:20:30,353
l think she got a--
she got something Iike
425
00:20:30,520 --> 00:20:33,064
12 consecutive 10/10 reviews.
426
00:20:33,232 --> 00:20:35,149
After we did our first
appointment together,
427
00:20:35,317 --> 00:20:38,402
I toId Jason, I'm Iike,
"You gotta book this girI."
428
00:20:38,570 --> 00:20:39,904
First of aII, she's great,
429
00:20:40,072 --> 00:20:42,365
but she also has
a perfect coochie.
430
00:20:42,532 --> 00:20:45,076
Narrator: AshIey's reign ended
when New York Confidential
431
00:20:45,244 --> 00:20:46,953
was raided by IocaI poIice.
432
00:20:47,120 --> 00:20:48,704
No customers were arrested,
433
00:20:48,872 --> 00:20:51,332
but HuIbert was convicted
of promoting prostitution
434
00:20:51,500 --> 00:20:53,501
and sent to jaiI
for eight months.
435
00:20:53,669 --> 00:20:58,047
AshIey wouId move on to work
for another escort service.
436
00:21:00,133 --> 00:21:03,511
For every New Yorker
who's been ignored, Ieft out,
437
00:21:03,679 --> 00:21:05,429
who's been toId
"You can't fight City HaII"
438
00:21:05,597 --> 00:21:08,140
so many times
they've come to beIieve it,
439
00:21:08,308 --> 00:21:11,978
for every New Yorker
without a voice, Iisten:
440
00:21:12,145 --> 00:21:14,689
there's one strong enough
for aII of us.
441
00:21:14,856 --> 00:21:17,024
( appIause )
442
00:21:22,864 --> 00:21:24,782
Spitzer:
For most of our history
443
00:21:24,950 --> 00:21:27,076
we have turned a bIind eye
444
00:21:27,244 --> 00:21:29,453
to the vioIations of duty
445
00:21:29,621 --> 00:21:32,123
on the part
of white-coIIar criminaIs.
446
00:21:32,291 --> 00:21:33,374
We can understand it.
447
00:21:33,542 --> 00:21:36,877
There is something visceraIIy
terrifying about street crime.
448
00:21:37,045 --> 00:21:39,922
And untiI you are safe
in your home,
449
00:21:40,090 --> 00:21:42,758
you worry a bit Iess
about what is often
450
00:21:42,926 --> 00:21:45,094
a bit more amorphous,
which is the nature
451
00:21:45,262 --> 00:21:47,972
of white-coIIar crime,
which is more subtIe theft.
452
00:21:48,140 --> 00:21:49,807
EIkind:
Spitzer broke the moId
453
00:21:49,975 --> 00:21:51,892
of how you prosecute
a white-collar case.
454
00:21:52,060 --> 00:21:53,728
He went after it fast and hard,
455
00:21:53,895 --> 00:21:56,188
and he got things done
in a period of weeks or months
456
00:21:56,356 --> 00:21:58,316
that wouId take
the federaI reguIators years.
457
00:21:58,483 --> 00:21:59,692
He wanted to change
the system.
458
00:21:59,860 --> 00:22:02,028
So he'd get the goods
on a company or on peopIe
459
00:22:02,195 --> 00:22:04,155
and use it as Ieverage
to institute reform,
460
00:22:04,323 --> 00:22:06,699
to force the industry to change
the way it did business.
461
00:22:06,867 --> 00:22:08,326
A Iot of peopIe thought
that was outrageous.
462
00:22:08,493 --> 00:22:11,787
Narrator: Spitzer hired a team
of dedicated lawyers
463
00:22:11,955 --> 00:22:13,748
who were drawn to his mission.
464
00:22:13,915 --> 00:22:18,961
EIiot just wasn't afraid to stand up
to corporate bad guys.
465
00:22:19,129 --> 00:22:21,672
And, you know, I think
there was some appreciation
466
00:22:21,840 --> 00:22:24,425
for the fact that, you know,
he'd punch 'em in the nose
467
00:22:24,593 --> 00:22:26,135
if that's what was appropriate.
468
00:22:26,303 --> 00:22:28,804
The first day l came in,
EIiot said, "What's next?"
469
00:22:28,972 --> 00:22:32,516
And l said, "Well,
mutuaI funds, I think."
470
00:22:34,519 --> 00:22:37,021
Boy:
How much wiII I grow?
471
00:22:37,189 --> 00:22:40,441
How strong wiII I be
in five years?
472
00:22:40,609 --> 00:22:43,027
In 10 years?
473
00:22:43,195 --> 00:22:45,071
Where does my future start?
474
00:22:45,238 --> 00:22:46,405
Shh.
475
00:22:50,452 --> 00:22:52,828
Narrator: Mutual funds
were supposed to be a safe pIace
476
00:22:52,996 --> 00:22:55,206
for working people
to put their money.
477
00:22:55,374 --> 00:22:58,125
But there were rumors
that sophisticated investors
478
00:22:58,293 --> 00:23:00,836
were pIaying games
with those funds.
479
00:23:01,004 --> 00:23:03,381
Brown: l went off
and I started studying them,
480
00:23:03,548 --> 00:23:06,258
trying to figure out
how to get at this issue.
481
00:23:06,426 --> 00:23:09,053
WhiIe I was immersed in this,
we got a tip.
482
00:23:09,221 --> 00:23:11,305
( phone ringing )
483
00:23:11,473 --> 00:23:14,308
Noreen Harrington: I Ieft very pathetic
voicemaiI messages.
484
00:23:14,476 --> 00:23:16,352
( phone beeps )
485
00:23:16,520 --> 00:23:18,562
You know,
reporting a crime is hard.
486
00:23:18,730 --> 00:23:20,398
You have to earn
your credibility.
487
00:23:20,565 --> 00:23:23,567
You have-- it feeIs Iike
you're being interrogated.
488
00:23:23,735 --> 00:23:27,279
Narrator: Noreen Harrington
had a strong financiaI background.
489
00:23:27,447 --> 00:23:29,615
After 1 1 years
at GoIdman Sachs,
490
00:23:29,783 --> 00:23:32,785
she ran the gIobaI fixed income department at
Barclays.
491
00:23:32,953 --> 00:23:34,912
Then she went to work
for Eddie Stern,
492
00:23:35,080 --> 00:23:38,958
the son of a weII-known
pet-food billionaire.
493
00:23:39,126 --> 00:23:41,460
Eddie Stern's hedge fund,
Canary Capital,
494
00:23:41,628 --> 00:23:43,754
was producing
spectacuIar resuIts
495
00:23:43,922 --> 00:23:46,257
at a time when
the stock market was tanking.
496
00:23:46,425 --> 00:23:48,259
The big profits,
said Harrington,
497
00:23:48,427 --> 00:23:51,095
came from manipuIating
mutuaI funds.
498
00:23:51,263 --> 00:23:53,472
They were doing something
really egregious,
499
00:23:53,640 --> 00:23:55,224
which is Iate trading.
500
00:23:55,392 --> 00:23:58,018
( beII ringing )
501
00:23:58,186 --> 00:23:59,562
Narrator:
At the track,
502
00:23:59,729 --> 00:24:02,773
customers bet on horse races
before the race starts.
503
00:24:02,941 --> 00:24:05,401
But what if there were
a special club
504
00:24:05,569 --> 00:24:08,863
that aIIowed you to bet on races
after they were over?
505
00:24:09,030 --> 00:24:11,031
There was a cIub Iike that
on Wall Street
506
00:24:11,199 --> 00:24:13,742
for trading mutuaI funds.
507
00:24:13,910 --> 00:24:16,036
Brown: Mutual funds
are onIy priced once a day,
508
00:24:16,204 --> 00:24:19,373
- right at 4:00.
- ( beII ringing )
509
00:24:19,541 --> 00:24:22,251
So during the day, you caII in
and you buy a mutual fund,
510
00:24:22,419 --> 00:24:25,671
they'II say, "Fine, "we're gonna fiII your order at
today's 4:00 price."
511
00:24:25,839 --> 00:24:29,258
If you caII in at 4:05,
they're supposed to say,
512
00:24:29,426 --> 00:24:33,053
"Fine, we'll fill your order
at tomorrow's 4:00 price."
513
00:24:33,221 --> 00:24:36,098
Narrator: But what if something
happened at, say, 4:05
514
00:24:36,266 --> 00:24:38,142
to make the fund
more vaIuabIe?
515
00:24:38,310 --> 00:24:40,895
Brown: If you couId go in
as an investor
516
00:24:41,062 --> 00:24:43,063
and call at 4:1 0,
having heard that news,
517
00:24:43,231 --> 00:24:46,025
go back and buy it at the 4:00 price,
you could just buy it,
518
00:24:46,193 --> 00:24:47,735
wait for it to go up
the next day and seII it
519
00:24:47,903 --> 00:24:49,862
and take some money out of it.
520
00:24:50,030 --> 00:24:52,615
In one case,
they went to a bank
521
00:24:52,782 --> 00:24:57,578
and the bank put a computer
back-office terminaI
522
00:24:57,746 --> 00:25:00,331
into Canary CapitaI,
Eddie Stern's fund.
523
00:25:00,499 --> 00:25:03,667
Eddie might enter 40 trades
524
00:25:03,835 --> 00:25:06,670
prior to 4:00.
525
00:25:06,838 --> 00:25:08,923
Now Iet's say it's 10:00 at night;
526
00:25:09,090 --> 00:25:11,217
they canceI the 30
that lost money
527
00:25:11,384 --> 00:25:13,677
and keep the 1 0
that made money.
528
00:25:13,845 --> 00:25:17,515
And so this was a bank,
529
00:25:17,682 --> 00:25:22,019
compIeteIy, you know,
working with one cIient
530
00:25:22,187 --> 00:25:25,397
to destroy the profits
531
00:25:25,565 --> 00:25:28,567
owed to aII the peopIe
in those funds.
532
00:25:30,612 --> 00:25:33,739
Narrator: The name of the bank
was Bank of America.
533
00:25:35,033 --> 00:25:39,036
We spent a Iot of time saying this-- this can't be
happening.
534
00:25:39,204 --> 00:25:42,248
I mean, no one wouId be so,
you know, so sIeazy.
535
00:25:45,961 --> 00:25:47,795
Harrington: I remember
it was Iike 9:00 at night.
536
00:25:47,963 --> 00:25:48,963
And somebody said,
537
00:25:49,130 --> 00:25:50,923
"Wow, we just picked
these peopIe off for 10 miIIion."
538
00:25:51,091 --> 00:25:53,592
I'm thinking, "How do you trade
mutuaI funds at 9:00?"
539
00:25:53,760 --> 00:25:55,427
I mean, you know,
you're a 20-year veteran,
540
00:25:55,595 --> 00:25:57,721
but aII of a sudden
you feeI Iike a rookie.
541
00:25:57,889 --> 00:26:00,933
Narrator: When Stern was confronted
with the evidence against him,
542
00:26:01,101 --> 00:26:04,270
he cut a deaI to cooperate
with Spitzer's investigation,
543
00:26:04,437 --> 00:26:07,648
which Iaid open the predatory
nature of WaII Street.
544
00:26:10,151 --> 00:26:12,444
Brown: You have some
expectation as an investor
545
00:26:12,612 --> 00:26:14,822
in the stock market,
that there are big big boys
546
00:26:14,990 --> 00:26:17,908
out there who probabIy have
better information than you,
547
00:26:18,076 --> 00:26:21,287
and it's preciseIy to get out of that that you wouId
go to mutuaI funds.
548
00:26:21,454 --> 00:26:24,331
And the idea that there
were some sharks
549
00:26:24,499 --> 00:26:27,835
in the tank with you,
with aII these thousands of minnows,
550
00:26:28,003 --> 00:26:31,255
was reaIIy sort of--
just reaIIy surprising.
551
00:26:31,423 --> 00:26:34,758
I sent out the first subpoena
at the end of June of '03.
552
00:26:34,926 --> 00:26:38,262
And on September 4th,
we announced a settIement.
553
00:26:38,430 --> 00:26:40,264
And what I'd Iike
you to do now...
554
00:26:40,432 --> 00:26:43,183
Harrington: Three months
after I finished speaking to them,
555
00:26:43,351 --> 00:26:46,854
for EIiot Spitzer and his staff
to have indictments,
556
00:26:47,022 --> 00:26:49,648
settlements,
was astounding to me.
557
00:26:49,816 --> 00:26:51,650
Today's announcement
is mereIy step one.
558
00:26:51,818 --> 00:26:54,862
One of the questions
I get asked a Iot was,
559
00:26:55,030 --> 00:26:58,490
"Did you beIieve
you wouId never work again?"
560
00:26:58,658 --> 00:27:01,243
And I think about
that question a Iot,
561
00:27:01,411 --> 00:27:05,289
because what you're saying
by asking that question is:
562
00:27:05,457 --> 00:27:09,877
by doing pubIic service
and heIping 95 miIIion peopIe
563
00:27:10,045 --> 00:27:14,548
and stopping a crime,
this industry wouIdn't want you?
564
00:27:14,716 --> 00:27:17,509
( siren bIaring )
565
00:27:20,305 --> 00:27:22,681
Narrator: WhiIe Spitzer stirred
popuIar rage at WaII Street,
566
00:27:22,849 --> 00:27:24,516
there were a few peopIe
who were deIighted
567
00:27:24,684 --> 00:27:26,685
to see the bankers
take home big paydays,
568
00:27:26,853 --> 00:27:30,230
as reveaIed in the actuaI ceII phone
of one of the bookers
569
00:27:30,398 --> 00:27:33,442
of the escort service
caIIed The Emperors CIub.
570
00:27:36,029 --> 00:27:38,238
Woman: "I keep hearing about
all the raises on Wall Street.
571
00:27:38,406 --> 00:27:40,199
And usuaIIy that wouId
be good for us.
572
00:27:40,367 --> 00:27:44,870
Hmm, maybe things wiII pick up.
Take care, hon!"
573
00:27:45,038 --> 00:27:47,331
The Iawyer-banker thing is true.
574
00:27:47,499 --> 00:27:49,458
There are quite a Iot of them.
575
00:27:49,626 --> 00:27:51,627
But there are lots
of stereotypes, you know,
576
00:27:51,795 --> 00:27:55,214
that it's this crazy
drug-fueIed sort of party scene.
577
00:27:55,382 --> 00:27:58,342
But generaIIy, you know,
people are respectful.
578
00:27:58,510 --> 00:28:01,512
They just want to have
a nice time with someone.
579
00:28:01,680 --> 00:28:03,722
Many of my cIients
are nicer to me
580
00:28:03,890 --> 00:28:07,434
than many many
of the dates I've been on.
581
00:28:07,602 --> 00:28:09,978
In fact,
582
00:28:10,146 --> 00:28:13,023
I've stopped dating
in the reaI worId, you know?
583
00:28:13,191 --> 00:28:15,025
Partly because it
wouId be compIicated
584
00:28:15,193 --> 00:28:17,945
and partly because
my standards Iifted.
585
00:28:18,113 --> 00:28:20,948
HonestIy, you know.
( laughs )
586
00:28:22,117 --> 00:28:24,201
NataIia: The pictures of AshIey
didn't surface right away.
587
00:28:24,369 --> 00:28:27,079
The EIiot Spitzer story broke,
and then aII these media outIets
588
00:28:27,247 --> 00:28:28,831
were caIIing me
to do interviews.
589
00:28:28,998 --> 00:28:31,834
And so l did a few interviews
without even knowing that AshIey was--
590
00:28:32,001 --> 00:28:34,086
my AshIey was our Victoria
was Kristen
591
00:28:34,254 --> 00:28:36,964
was all these--
you know, who she was.
592
00:28:37,132 --> 00:28:41,009
Tonight EIiot Spitzer resigns
as Governor of New York.
593
00:28:41,177 --> 00:28:44,388
Where wiII he find comfort
in this difficult time?
594
00:28:44,556 --> 00:28:46,473
l was shocked
when it aII happened.
595
00:28:46,641 --> 00:28:50,227
But then when I saw
AshIey's picture
596
00:28:50,395 --> 00:28:52,271
fIashed on the news,
597
00:28:52,439 --> 00:28:54,356
I was Iike, wait a second,
you know?
598
00:28:54,524 --> 00:28:56,316
I was Iike, "Oh my gosh!"
599
00:28:56,484 --> 00:28:57,568
I couIdn't beIieve it.
600
00:28:57,736 --> 00:28:59,528
She fit the biII.
601
00:28:59,696 --> 00:29:02,364
♪ My fist to the sky... ♪
602
00:29:02,532 --> 00:29:04,074
Man: "The New York Times"
website identifies
603
00:29:04,242 --> 00:29:08,162
Governor Spitzer's mystery caII girI
as Ashley Alexandra Dupré.
604
00:29:08,329 --> 00:29:09,830
Narrator: AII over papers
and teIevision
605
00:29:09,998 --> 00:29:12,249
she was caIIed "Spitzer's GirI."
606
00:29:12,417 --> 00:29:14,501
Known as "Kristen"
at The Emperors CIub,
607
00:29:14,669 --> 00:29:16,670
AshIey Dupré was determined
to take advantage
608
00:29:16,838 --> 00:29:18,630
of her sudden opportunity.
609
00:29:20,675 --> 00:29:24,595
NataIia: CIearIy AshIey was trying
to make a name for herself.
610
00:29:24,763 --> 00:29:27,598
Narrator: After the scandaI broke,
Ashley's MySpace page,
611
00:29:27,766 --> 00:29:29,933
with one of her songs
avaiIabIe for streaming,
612
00:29:30,101 --> 00:29:32,186
got over seven miIIion hits.
613
00:29:32,353 --> 00:29:34,396
To heIp package her career,
she brought onboard
614
00:29:34,564 --> 00:29:39,067
two Iawyers, a pubIicist,
and a management team.
615
00:29:39,235 --> 00:29:41,612
- ♪ So you better hurry up... ♪
- Narrator: AshIey's manager arranged
616
00:29:41,780 --> 00:29:44,072
for an interview
with Diane Sawyer.
617
00:29:44,240 --> 00:29:46,241
Everyone pIayed their part.
618
00:29:46,409 --> 00:29:48,660
AshIey dressed up
as the good girI gone wrong,
619
00:29:48,828 --> 00:29:52,873
and Diane Sawyer pIayed
the roIe of the scoIding mom.
620
00:29:53,041 --> 00:29:55,876
You say "the work,"
621
00:29:56,044 --> 00:29:57,669
but you haven't said the words.
622
00:29:57,837 --> 00:30:00,839
- The work?
- Prostitution.
623
00:30:01,007 --> 00:30:03,008
Escort.
624
00:30:03,176 --> 00:30:05,010
Escort.
What's the difference?
625
00:30:05,178 --> 00:30:07,971
- Escort.
- What's the difference?
626
00:30:09,474 --> 00:30:12,226
She catered to
the stereotypes of hookers,
627
00:30:12,393 --> 00:30:15,145
which are, you know, "Poor me.
I had a troubIed chiIdhood.
628
00:30:15,313 --> 00:30:17,815
I made a mistake,"
which is such a Ioad of crap.
629
00:30:17,982 --> 00:30:20,776
It's-- I can't change the past.
630
00:30:20,944 --> 00:30:23,487
l can only try to take
what I've Iearned and--
631
00:30:23,655 --> 00:30:26,532
and appIy that to my future.
632
00:30:27,826 --> 00:30:30,786
We are being paid
ridicuIous amounts of money.
633
00:30:30,954 --> 00:30:34,081
None of these women are forced
to do this and they're not stupid.
634
00:30:34,249 --> 00:30:36,625
Many of the professionaI
prostitutes that I know
635
00:30:36,793 --> 00:30:39,753
are very smart women
who weren't abused.
636
00:30:39,921 --> 00:30:42,005
You know, don't have
a mentaI disorder.
637
00:30:42,173 --> 00:30:45,425
They just happen to beIieve
in this kind of work.
638
00:30:45,593 --> 00:30:48,887
Narrator:
So do their customers.
639
00:30:49,055 --> 00:30:51,306
The ceII phone of the booker
from The Emperors CIub
640
00:30:51,474 --> 00:30:54,560
offered a gIimpse of the cIub's
weII-heeIed cIient Iist:
641
00:30:54,727 --> 00:30:57,271
an Oscar winner, CEOs
642
00:30:57,438 --> 00:31:00,232
and high-powered
investment bankers.
643
00:31:01,609 --> 00:31:04,695
The club treated them
Iike emperors. And why not?
644
00:31:04,863 --> 00:31:06,947
They made more money
than kings.
645
00:31:07,115 --> 00:31:10,117
They enjoyed having their way
with women and the world.
646
00:31:10,285 --> 00:31:12,744
So it came as no surprise
that they resented it
647
00:31:12,912 --> 00:31:16,206
when the New York Attorney GeneraI started to
cramp their style.
648
00:31:16,374 --> 00:31:18,584
Reporter: "The Economist"
magazine caIIs him
649
00:31:18,751 --> 00:31:21,295
"WaII Street's
scourger-in-chief."
650
00:31:21,462 --> 00:31:23,171
Reporter #2: He's gone
from compIete anonymity
651
00:31:23,339 --> 00:31:27,843
to what "Fortune" magazine calls
"the most feared man on WaII Street."
652
00:31:28,011 --> 00:31:31,388
Spitzer has deputized himseIf
as the Sheriff of Wall Street
653
00:31:31,556 --> 00:31:33,974
and is Ieading the posse
for retribution,
654
00:31:34,142 --> 00:31:36,059
restitution and reform.
655
00:31:36,227 --> 00:31:39,521
Narrator: Spitzer appealed
to Democrats and RepubIicans.
656
00:31:39,689 --> 00:31:43,358
He was a Iaw-and-order IiberaI
who wasn't afraid to punch back.
657
00:31:43,526 --> 00:31:44,776
When you go
down to WaII Street,
658
00:31:44,944 --> 00:31:46,612
like when you walk
into a buiIding on WaII Street,
659
00:31:46,779 --> 00:31:48,363
is it like turning
the Iight on in the kitchen
660
00:31:48,531 --> 00:31:50,324
and the roaches just scatter
everywhere you go?
661
00:31:50,491 --> 00:31:52,159
- WeII, y'know--
- Are you a beam of Iight--
662
00:31:52,327 --> 00:31:55,370
It is-- there was a day that I had
to waIk into a hedge fund...
663
00:31:55,538 --> 00:31:57,122
Ken Langone:
What I was intrigued by--
664
00:31:57,290 --> 00:31:59,249
the number of people
that were terrified by him.
665
00:31:59,417 --> 00:32:01,668
I mean, they IiteraIIy
were terrified
666
00:32:01,836 --> 00:32:03,795
at this guy coming after them.
667
00:32:09,969 --> 00:32:13,013
Spitzer: The issue of CEO comp
was something I had been trying
668
00:32:13,181 --> 00:32:14,765
to get peopIe to take a Iook at.
669
00:32:14,933 --> 00:32:17,225
It was off the raiIs.
670
00:32:17,393 --> 00:32:19,645
♪ I'II take what I want ♪
671
00:32:21,272 --> 00:32:23,899
♪ I'm a bad go-getter, yeah ♪
672
00:32:24,067 --> 00:32:26,693
♪ Ha! Yes I am ♪
673
00:32:28,404 --> 00:32:31,657
♪ I'm never a Ioser ♪
674
00:32:31,824 --> 00:32:34,868
♪ And I'm never
a quitter, yeah... ♪
675
00:32:35,036 --> 00:32:37,496
Spitzer: The ratio of CEO comp
to the average worker's comp
676
00:32:37,664 --> 00:32:40,749
had gone from about 40 to 1
to about 550 to 1 .
677
00:32:40,917 --> 00:32:43,794
CEOs began to just take
everything they could
678
00:32:43,962 --> 00:32:47,172
and uItimateIy that was going
to destroy our economy.
679
00:32:47,340 --> 00:32:49,758
Because instead of running
the companies to create
680
00:32:49,926 --> 00:32:51,885
Iong-term weaIth
and Iong-term investment,
681
00:32:52,053 --> 00:32:53,470
aII the games we've seen--
682
00:32:53,638 --> 00:32:55,555
everything from backdating
of stock options
683
00:32:55,723 --> 00:32:58,058
to maximizing
short-term profits
684
00:32:58,226 --> 00:33:00,811
without sufficient investment
for the Iong term--
685
00:33:00,979 --> 00:33:04,606
these are things that are cancers
inside the economy.
686
00:33:04,774 --> 00:33:08,276
♪ 'Cause l'll take
what I want, yeah, baby. ♪
687
00:33:08,444 --> 00:33:10,112
Narrator: One of the fIashiest
executives was head
688
00:33:10,279 --> 00:33:13,156
of the New York Stock Exchange:
Dick Grasso,
689
00:33:13,324 --> 00:33:16,076
who boasted owning 10 cars
and three homes.
690
00:33:16,244 --> 00:33:19,830
He traveIed on private jets,
often fIanked by armed bodyguards.
691
00:33:19,998 --> 00:33:23,792
His job was to reguIate and market
the New York Stock Exchange.
692
00:33:23,960 --> 00:33:25,252
Nicknamed "Punky,"
693
00:33:25,420 --> 00:33:27,754
Grasso was a scrappy
coIIege dropout
694
00:33:27,922 --> 00:33:30,257
who started on the fIoor
and worked his way up.
695
00:33:30,425 --> 00:33:32,676
There's a job opening
at the New York Stock Exchange.
696
00:33:32,844 --> 00:33:34,928
Chairman Dick Grasso
resigned yesterday
697
00:33:35,096 --> 00:33:37,639
over the fury raised
by his massive pay package.
698
00:33:37,807 --> 00:33:40,934
Narrator: Not onIy was Grasso paid
an average annual salary
699
00:33:41,102 --> 00:33:42,853
of $20 miIIion,
700
00:33:43,021 --> 00:33:47,899
his retirement package
totaIed nearIy $140 miIIion.
701
00:33:48,067 --> 00:33:51,737
After Grasso stepped down,
the new head of the Exchange
702
00:33:51,904 --> 00:33:54,114
brought the matter
to the attorney generaI.
703
00:33:54,282 --> 00:33:57,576
Spitzer: There's a statute in New York
that says the value
704
00:33:57,744 --> 00:34:01,204
of the paycheck that the head
of a not-for-profit receives
705
00:34:01,372 --> 00:34:05,000
must be commensurate with the vaIue
of the services provided.
706
00:34:05,168 --> 00:34:07,294
l like Dick.
He's a decent guy.
707
00:34:07,462 --> 00:34:10,797
He didn't provide services
worth $1 39 million.
708
00:34:10,965 --> 00:34:13,258
Perhaps more perverseIy,
709
00:34:13,426 --> 00:34:16,053
the compensation
had been determined
710
00:34:16,220 --> 00:34:19,431
by the very people he was
supposed to be reguIating.
711
00:34:19,599 --> 00:34:24,269
I had the most respected
group of directors
712
00:34:24,437 --> 00:34:26,271
from the corporate
and financiaI worId.
713
00:34:26,439 --> 00:34:28,356
They exercised
their business judgment.
714
00:34:28,524 --> 00:34:32,027
They paid me what they beIieved
to be fair and reasonabIe,
715
00:34:32,195 --> 00:34:33,570
which I-- I agree with.
716
00:34:33,738 --> 00:34:36,156
Narrator: Spitzer decided
not to go after
717
00:34:36,324 --> 00:34:38,283
the bIue-chip
internationaI board.
718
00:34:38,451 --> 00:34:40,660
Instead, he sued Grasso
and the head
719
00:34:40,828 --> 00:34:42,496
of the board's
compensation committee,
720
00:34:42,663 --> 00:34:43,914
Ken Langone.
721
00:34:44,082 --> 00:34:48,210
Langone wouId prove
to be a formidabIe foe.
722
00:34:48,377 --> 00:34:49,544
l've been rich
and I've been poor.
723
00:34:49,712 --> 00:34:52,422
Rich is better,
I can teII ya right now.
724
00:34:54,217 --> 00:34:56,635
Narrator: The son
of a Long IsIand pIumber,
725
00:34:56,803 --> 00:34:59,054
Ken Langone had
cofounded Home Depot
726
00:34:59,222 --> 00:35:02,015
and amassed a fortune
of weII over a biIIion doIIars.
727
00:35:02,183 --> 00:35:05,268
A dedicated phiIanthropist,
Langone was not shy
728
00:35:05,436 --> 00:35:07,729
about paying peopIe weII.
729
00:35:07,897 --> 00:35:11,691
Langone: At the time we awarded
Dick these pay packages,
730
00:35:11,859 --> 00:35:15,195
l truly believed that Dick
earned every singIe penny,
731
00:35:15,363 --> 00:35:16,947
and more!
732
00:35:17,115 --> 00:35:20,617
Narrator: Spitzer demanded
that Grasso return $100 miIIion.
733
00:35:20,785 --> 00:35:23,411
At the time, Langone toId
"Fortune" magazine:
734
00:35:23,579 --> 00:35:26,081
"If Grasso gives back
a fucking nickel,
735
00:35:26,249 --> 00:35:28,041
I'II never taIk to him again."
736
00:35:28,209 --> 00:35:30,127
Spitzer: He, as anybody
in that position wouId,
737
00:35:30,294 --> 00:35:32,170
took umbrage at it.
And he deveIoped
738
00:35:32,338 --> 00:35:35,048
a rather strong
animus towards me.
739
00:35:38,719 --> 00:35:41,054
The day that I sat in this room
740
00:35:41,222 --> 00:35:43,974
and he went on teIevision
741
00:35:44,142 --> 00:35:47,352
with that farce
press conference he had,
742
00:35:47,520 --> 00:35:51,231
announcing that he was
going after Dick Grasso and me
743
00:35:51,399 --> 00:35:54,401
and aII kinds of bad things
about me and...
744
00:35:54,569 --> 00:35:58,738
EIiot's theatrics.
745
00:35:58,906 --> 00:36:00,991
You can't pay the head
of a not-for-profit
746
00:36:01,159 --> 00:36:04,995
that much money--
cIose to $200 miIIion.
747
00:36:05,163 --> 00:36:07,581
It's simpIy too much.
It's not reasonabIe.
748
00:36:07,748 --> 00:36:09,583
It's not right.
It vioIates the Iaw.
749
00:36:09,750 --> 00:36:12,794
Langone: It was headIines,
it was glorious headlines!
750
00:36:12,962 --> 00:36:14,963
AII these captains of industry!
751
00:36:15,131 --> 00:36:16,756
Hey, this is big game.
752
00:36:16,924 --> 00:36:18,800
This is going after eIephants.
753
00:36:18,968 --> 00:36:22,220
Spitzer: He became
a very vociferous critic of mine.
754
00:36:22,388 --> 00:36:23,889
And that's aII fair game.
755
00:36:24,056 --> 00:36:26,725
In my view we were right
and he was wrong.
756
00:36:26,893 --> 00:36:29,436
But again it was something
he feIt deepIy about.
757
00:36:31,355 --> 00:36:34,774
Narrator: In 2004 at the Democratic
NationaI Convention
758
00:36:34,942 --> 00:36:36,985
Spitzer took up the issue
with Jack Welch,
759
00:36:37,153 --> 00:36:39,946
the former CEO
of GeneraI EIectric.
760
00:36:40,114 --> 00:36:42,157
Langone: Jack and I are
very good friends.
761
00:36:42,325 --> 00:36:45,285
Spitzer came up
to him with froth
762
00:36:45,453 --> 00:36:48,371
coming out of the sides
of his mouth, spitting,
763
00:36:48,539 --> 00:36:51,583
I mean, so exercised,
and pointing at Jack:
764
00:36:51,751 --> 00:36:54,044
"You teII your buddy
765
00:36:54,212 --> 00:36:57,339
I'm gonna put a spike
through his heart!"
766
00:36:57,506 --> 00:36:59,633
This is not something
the Attorney GeneraI
767
00:36:59,800 --> 00:37:01,051
of New York State says.
768
00:37:01,219 --> 00:37:03,178
So when Jack toId me,
I said, "Jack, do me a favor."
769
00:37:03,346 --> 00:37:06,223
I said, "If you see him,
tell him one thing:
770
00:37:06,390 --> 00:37:08,975
make sure it's steeI,
because wood'II break."
771
00:37:10,478 --> 00:37:13,396
Narrator:
The case dragged on for years.
772
00:37:13,564 --> 00:37:15,649
In 2008, the New York State
Court of Appeals
773
00:37:15,816 --> 00:37:18,068
dismissed the case
for a bizarre reason:
774
00:37:18,236 --> 00:37:20,820
since the suit had been brought,
the New York Stock Exchange
775
00:37:20,988 --> 00:37:23,657
had abandoned
its not-for-profit status.
776
00:37:23,824 --> 00:37:26,243
Dick Grasso
kept aII his money.
777
00:37:26,410 --> 00:37:28,662
But EIiot Spitzer
had engaged an enemy
778
00:37:28,829 --> 00:37:31,122
with virtuaIIy
unIimited resources,
779
00:37:31,290 --> 00:37:34,000
one who was watching
and waiting for any misstep.
780
00:37:35,544 --> 00:37:37,754
I'd Iike to think
781
00:37:37,922 --> 00:37:40,173
I'm not a vindictive person.
782
00:37:42,510 --> 00:37:45,512
And a basic tenet of my faith
is forgiveness.
783
00:37:47,223 --> 00:37:50,225
The most harm that
EIiot Spitzer has done to me
784
00:37:50,393 --> 00:37:53,228
is I am defying my faith.
785
00:37:53,396 --> 00:37:55,021
I can't forgive him
786
00:37:55,189 --> 00:37:57,232
and I shouId, but I can't.
787
00:38:10,162 --> 00:38:13,415
Narrator: In Ken Langone,
Spitzer had created a mighty enemy.
788
00:38:13,582 --> 00:38:16,710
And then he added another one
when he took on Hank Greenberg,
789
00:38:16,877 --> 00:38:20,297
the head of the worId's Iargest
insurance company, AlG.
790
00:38:25,469 --> 00:38:28,221
At the age of 79,
Maurice "Hank" Greenberg
791
00:38:28,389 --> 00:38:31,141
was the most powerful
businessman on the pIanet.
792
00:38:31,309 --> 00:38:33,518
Under his command
AlG had grown
793
00:38:33,686 --> 00:38:36,438
to be worth $157 biIIion
794
00:38:36,605 --> 00:38:39,024
with 92,000 empIoyees.
795
00:38:39,191 --> 00:38:41,901
Admired for his
spectacuIar resuIts,
796
00:38:42,069 --> 00:38:45,113
Greenberg ruIed his empire
with an iron fist.
797
00:38:45,281 --> 00:38:48,283
I think he was Louis XIV
to everybody eIse's,
798
00:38:48,451 --> 00:38:50,410
you know,
being a mere baron.
799
00:38:50,578 --> 00:38:54,122
I think Hank Greenberg
epitomized
800
00:38:54,290 --> 00:38:57,709
the power of corporate CEOs,
and in my view,
801
00:38:57,877 --> 00:39:00,879
he was the most powerfuI person
in corporate America.
802
00:39:01,047 --> 00:39:03,131
Narrator: Greenberg's measure
of his own worth
803
00:39:03,299 --> 00:39:06,051
was the stock price at AIG.
804
00:39:06,218 --> 00:39:09,637
The normal cycle of business
is that sometimes your profits go up
805
00:39:09,805 --> 00:39:11,473
and sometimes
your profits go down.
806
00:39:11,640 --> 00:39:14,017
But WaII Street didn't Iike
companies to perform that way.
807
00:39:14,185 --> 00:39:16,478
They wanted to see
steadiIy rising profits.
808
00:39:16,645 --> 00:39:18,646
If you deIivered
steadiIy rising profits,
809
00:39:18,814 --> 00:39:20,648
they'd give you
a higher stock price.
810
00:39:20,816 --> 00:39:23,401
So Hank Greenberg came up
with a new type of insurance
811
00:39:23,569 --> 00:39:26,821
that wouId create the iIIusion
of steadily rising earnings.
812
00:39:26,989 --> 00:39:30,367
Narrator: Greenberg's AlG
was fined over $100 miIIion
813
00:39:30,534 --> 00:39:32,160
by federaI authorities
814
00:39:32,328 --> 00:39:35,121
for heIping other companies
cook their books.
815
00:39:35,289 --> 00:39:37,791
In 2005 it appeared
that AIG might be
816
00:39:37,958 --> 00:39:41,211
using similar tricks
to pump up its own stock.
817
00:39:41,379 --> 00:39:44,589
Spitzer:
The more we dug into AIG,
818
00:39:44,757 --> 00:39:46,466
the more probIematic
819
00:39:46,634 --> 00:39:50,220
the company itseIf
appeared to me to be.
820
00:39:50,388 --> 00:39:54,015
And the disconcerting
aspect of it
821
00:39:54,183 --> 00:39:58,061
was that it did appear
to come from the very top.
822
00:40:00,731 --> 00:40:02,649
lnterviewer:
When did you first hear about
823
00:40:02,817 --> 00:40:05,860
Spitzer's investigation of AIG?
824
00:40:06,028 --> 00:40:08,029
When I got a subpoena.
825
00:40:08,197 --> 00:40:10,448
Narrator:
One deaI generated by Greenberg
826
00:40:10,616 --> 00:40:13,368
caught the eye of Spitzer
and federaI investigators.
827
00:40:13,536 --> 00:40:16,996
It was a suspicious contract
between AlG and Gen Re,
828
00:40:17,164 --> 00:40:20,792
a company owned by
biIIionaire Warren Buffett.
829
00:40:20,960 --> 00:40:23,253
One of the most startIing
moments in this case
830
00:40:23,421 --> 00:40:25,797
was when tapes emerged
831
00:40:25,965 --> 00:40:29,050
that were dispositive,
overwheIming proof
832
00:40:29,218 --> 00:40:31,010
of exactly what these
transactions had been.
833
00:40:32,555 --> 00:40:34,722
As this was unfoIding,
Dick Beattie called me
834
00:40:34,890 --> 00:40:38,268
one Saturday morning at home
and said let's talk about this.
835
00:40:38,436 --> 00:40:42,856
The board wanted me
to find out what I couId
836
00:40:43,023 --> 00:40:45,984
about the Gen Re investigation.
837
00:40:46,152 --> 00:40:48,736
EIiot was jogging on
a Saturday morning or something.
838
00:40:48,904 --> 00:40:50,363
I met him in the park.
839
00:40:50,531 --> 00:40:54,284
The onIy thing of significance
he told me, as l recall,
840
00:40:54,452 --> 00:40:58,079
was that they had Hank--
841
00:40:58,247 --> 00:41:01,207
Hank's name on tapes.
842
00:41:20,644 --> 00:41:23,688
Narrator: To boost his stock price,
Hank Greenberg wanted
843
00:41:23,856 --> 00:41:28,943
to make it look like AlG
had $500 miIIion more than it did.
844
00:41:29,111 --> 00:41:31,112
The original phone call
was to see if we couId get
845
00:41:31,280 --> 00:41:33,698
a Iost portfoIio
from Ron Ferguson.
846
00:41:33,866 --> 00:41:35,492
What happened afterwards,
l don't know.
847
00:41:35,659 --> 00:41:39,078
I-- I didn't-- I wasn't invoIved
in the detaiIs of the transaction.
848
00:42:12,863 --> 00:42:15,532
Narrator: A handwritten deaI memo
laid out the terms:
849
00:42:15,699 --> 00:42:19,953
Gen Re would pretend
to pay AIG $500 miIIion
850
00:42:20,120 --> 00:42:22,080
in two instaIIments
851
00:42:22,248 --> 00:42:24,541
for a phony insurance poIicy.
852
00:42:24,708 --> 00:42:26,626
There was no risk
of paying a cIaim.
853
00:42:29,255 --> 00:42:32,382
For doing the phony deaI,
AlG would pay Gen Re
854
00:42:32,550 --> 00:42:34,884
a $5-miIIion fee.
855
00:42:35,052 --> 00:42:39,013
HouIdsworth: No risk.
No risk for 5 miIIion bucks.
856
00:42:39,181 --> 00:42:41,599
Narrator: Hank Greenberg's
initials, MRG,
857
00:42:41,767 --> 00:42:43,393
were aII over the document.
858
00:42:43,561 --> 00:42:45,186
Monrad: The two peopIe
at AIG who are invoIved
859
00:42:45,354 --> 00:42:47,939
are Hank Greenberg
and Chris MiIton.
860
00:42:48,107 --> 00:42:50,024
AIG was a big company.
861
00:42:50,192 --> 00:42:52,068
I didn't--
I didn't stay focused
862
00:42:52,236 --> 00:42:54,737
on-on-- on the Gen Re
transaction.
863
00:43:08,252 --> 00:43:10,503
Man:
Yes. ( Iaughs )
864
00:43:10,671 --> 00:43:12,422
Graham: That sorta gives
you somethin'--
865
00:43:12,590 --> 00:43:14,966
Man: Yeah, that teIIs you somethin',
doesn't it? Yeah.
866
00:43:15,134 --> 00:43:17,302
Narrator: What was an unfair
advantage to Greenberg
867
00:43:17,469 --> 00:43:20,263
was seen as cooking the books
to AlG's accountants,
868
00:43:20,431 --> 00:43:22,432
PricewaterhouseCoopers.
869
00:43:22,600 --> 00:43:25,518
The firm refused to accept
AlG's financial statements
870
00:43:25,686 --> 00:43:28,271
as Iong as Greenberg
was the CEO.
871
00:43:28,439 --> 00:43:32,984
Hank wasn't pushed out
by... by EIiot.
872
00:43:33,152 --> 00:43:36,362
What happened was
the investigation that foIIowed
873
00:43:36,530 --> 00:43:38,906
and the accountants,
at the end of the day,
874
00:43:39,074 --> 00:43:41,784
said, "We're not taking
that certification anymore."
875
00:43:41,952 --> 00:43:43,786
So you're sitting here
as a board of directors,
876
00:43:43,954 --> 00:43:45,872
saying, "My God,
what does that mean?"
877
00:43:46,040 --> 00:43:48,374
That's what drove the board
878
00:43:48,542 --> 00:43:51,252
deciding that Hank had to go.
And one other issue.
879
00:43:51,420 --> 00:43:52,879
Narrator:
Spitzer demanded
880
00:43:53,047 --> 00:43:55,173
that Hank Greenberg
testify under oath.
881
00:43:55,341 --> 00:43:57,508
However Greenberg's
lawyers advised him
882
00:43:57,676 --> 00:44:00,470
to plead the Fifth,
despite AIG's poIicy
883
00:44:00,638 --> 00:44:04,057
to fire empIoyees who didn't
cooperate with reguIators.
884
00:44:05,267 --> 00:44:08,102
That troubIed a Iot
of peopIe on the board.
885
00:44:08,270 --> 00:44:11,147
They wanted him to say,
you know, "AbsoIuteIy not.
886
00:44:11,315 --> 00:44:13,775
I'm not gonna take the Fifth.
I'm gonna testify."
887
00:44:13,942 --> 00:44:18,071
I think Frank Zarb and I
called Hank
888
00:44:18,238 --> 00:44:21,115
and toId him that the board
had made the decision
889
00:44:21,283 --> 00:44:23,785
that he had to step down.
890
00:44:23,952 --> 00:44:25,620
These are very
serious offenses,
891
00:44:25,788 --> 00:44:28,081
over a biIIion doIIars
of accounting frauds
892
00:44:28,248 --> 00:44:30,541
that AlG has
aIready acknowIedged.
893
00:44:30,709 --> 00:44:33,503
That company was a bIack box
run with an iron fist
894
00:44:33,671 --> 00:44:36,756
by a CEO who did not teII
the pubIic the truth.
895
00:44:36,924 --> 00:44:37,924
That is the probIem.
896
00:44:38,092 --> 00:44:39,759
So does that mean you're moving
toward an indictment?
897
00:44:39,927 --> 00:44:41,636
No, l didn't say that.
It depends what we wiII prove,
898
00:44:41,804 --> 00:44:43,971
or can prove that Mr. Greenberg
knew at the time.
899
00:44:44,139 --> 00:44:45,973
We have powerfuI evidence.
We wiII proceed with it.
900
00:44:46,141 --> 00:44:49,102
lt's too bad that
the attorney generaI
901
00:44:49,269 --> 00:44:52,605
doesn't come out
from behind his office,
902
00:44:52,773 --> 00:44:55,441
where he's protected
against libel.
903
00:44:55,609 --> 00:44:58,528
I wish he'd come out and say
these things as a citizen.
904
00:44:58,696 --> 00:45:01,114
Spitzer attacked Greenberg,
905
00:45:01,281 --> 00:45:05,159
and l saw him
on teIevision one night
906
00:45:05,327 --> 00:45:08,871
saying that Hank Greenberg
was a crook.
907
00:45:09,039 --> 00:45:11,499
Narrator: John Whitehead
had been a war hero,
908
00:45:11,667 --> 00:45:13,459
a Deputy Secretary of State
909
00:45:13,627 --> 00:45:16,295
and the chairman
of GoIdman Sachs.
910
00:45:16,463 --> 00:45:19,132
And his office continued
to leak information
911
00:45:19,299 --> 00:45:20,883
about why he was a crook
912
00:45:21,051 --> 00:45:24,512
without ever any charges
being brought against Hank.
913
00:45:24,680 --> 00:45:27,682
So l said this is something
I have to do something about.
914
00:45:27,850 --> 00:45:31,436
So that's what caused me
to write that first articIe.
915
00:45:31,603 --> 00:45:35,398
"Something has gone
seriously awry
916
00:45:35,566 --> 00:45:39,110
when a state attorney generaI
can go on teIevision
917
00:45:39,278 --> 00:45:42,780
and charge one of America's
best CEOs
918
00:45:42,948 --> 00:45:45,908
and most generous
philanthropists
919
00:45:46,076 --> 00:45:49,579
with fraud before any charges
have been brought,
920
00:45:49,747 --> 00:45:52,707
before the possibIe defendant
has even had a chance
921
00:45:52,875 --> 00:45:56,210
to know what he personaIIy
is alleged to have done
922
00:45:56,378 --> 00:45:59,797
and whiIe the investigation
is still underway."
923
00:45:59,965 --> 00:46:03,217
That was the thing
that set me off.
924
00:46:03,385 --> 00:46:05,136
l had heard of
an incident invoIving
925
00:46:05,304 --> 00:46:07,472
former GoIdman Sachs chairman
John Whitehead.
926
00:46:07,639 --> 00:46:09,515
Mr. Whitehead
had come out pubIicIy
927
00:46:09,683 --> 00:46:11,058
supporting Mr. Greenberg.
928
00:46:11,226 --> 00:46:13,352
After that op-ed was pubIished,
929
00:46:13,520 --> 00:46:16,939
he received a threatening
phone caII from EIiot Spitzer.
930
00:46:17,107 --> 00:46:21,235
He asked me a coupIe
of questions about my articIe.
931
00:46:21,403 --> 00:46:22,820
And then he came
right to the point.
932
00:46:22,988 --> 00:46:24,864
He said, "Mr. Whitehead,"
he said,
933
00:46:25,032 --> 00:46:27,200
"You and I are now at war."
934
00:46:27,367 --> 00:46:29,619
You know, Iook, he had--
he had written an op.
935
00:46:29,787 --> 00:46:31,829
I don't know if I said
those words or not.
936
00:46:31,997 --> 00:46:34,916
If that's the worst I said,
you know, okay, that's--
937
00:46:35,083 --> 00:46:36,751
peopIe are at war with me
all the time.
938
00:46:36,919 --> 00:46:38,753
Interviewer: "You have fired
the first bullet."
939
00:46:38,921 --> 00:46:41,547
"You have
fired the first buIIet.
940
00:46:41,715 --> 00:46:44,133
But beIieve me,
by the end of this war,
941
00:46:44,301 --> 00:46:47,762
l will fire the last one
and you wiII be dead."
942
00:46:47,930 --> 00:46:49,597
WeII, I don't think I said that.
l mean, John White--
943
00:46:49,765 --> 00:46:51,974
l wouldn't say-- l-- l--
Iook, I hope I didn't say that.
944
00:46:52,142 --> 00:46:53,976
He was screaming
into the phone.
945
00:46:54,144 --> 00:46:56,521
He and I had
a heated conversation.
946
00:46:56,688 --> 00:46:58,481
I wiII Ieave it at that.
It was a private conversation.
947
00:46:58,649 --> 00:47:00,399
As l've said,
I've never denied
948
00:47:00,567 --> 00:47:02,068
that l have heated
conversations in private.
949
00:47:02,236 --> 00:47:06,906
lt's... it was me,
it is me, so be it.
950
00:47:07,074 --> 00:47:09,617
And I think sometimes
it's how you get things done.
951
00:47:09,785 --> 00:47:13,621
He said,
"I wiII destroy you."
952
00:47:13,789 --> 00:47:16,332
And those are--
those are strong words.
953
00:47:16,500 --> 00:47:20,044
I had never heard words Iike that
before from anybody.
954
00:47:20,212 --> 00:47:21,712
I couIdn't quite beIieve it.
955
00:47:23,173 --> 00:47:26,425
Narrator: Spitzer's outbursts
became Iegendary to his staff.
956
00:47:26,593 --> 00:47:28,386
When he exploded,
his staff wouId remark
957
00:47:28,554 --> 00:47:30,930
that Spitzer's eviI twin "Irwin"
958
00:47:31,098 --> 00:47:33,724
had dropped in
for an unexpected visit.
959
00:47:33,892 --> 00:47:37,436
In fact, a very
prominent Iawyer
960
00:47:37,604 --> 00:47:41,399
of a very fine company
had a meeting with him.
961
00:47:41,567 --> 00:47:43,860
And this man said to me,
962
00:47:44,027 --> 00:47:48,114
"When l came out of his office,
I swore I saw the words E-V-I-L
963
00:47:48,282 --> 00:47:50,157
across his forehead."
964
00:47:50,325 --> 00:47:53,369
I have no doubt if Hank Greenberg
were stiII running AIG,
965
00:47:53,537 --> 00:47:55,788
AlG would not be
in the fix it's in today.
966
00:47:55,956 --> 00:47:58,833
Today the federaI government
announced it has once again
967
00:47:59,001 --> 00:48:02,628
reworked the bailout
of insurance giant AIG.
968
00:48:02,796 --> 00:48:04,797
Reporter: Now the baiIout
needs a baiIout.
969
00:48:04,965 --> 00:48:06,841
Two months after AIG was given
970
00:48:07,009 --> 00:48:09,176
that first emergency
government Ioan,
971
00:48:09,344 --> 00:48:10,928
it's getting another IifeIine.
972
00:48:11,096 --> 00:48:14,140
Narrator: In 2008
AIG was at the center
973
00:48:14,308 --> 00:48:16,517
of a gIobaI economic meItdown.
974
00:48:16,685 --> 00:48:18,644
Before and after
Greenberg's faII,
975
00:48:18,812 --> 00:48:21,689
AlG had been selling
biIIions of doIIars of insurance
976
00:48:21,857 --> 00:48:23,566
to the worId's biggest banks
977
00:48:23,734 --> 00:48:26,736
to hide their risky gambIes
on home mortgages.
978
00:48:28,113 --> 00:48:31,532
When housing prices coIIapsed,
AlG couldn't pay the claims,
979
00:48:31,700 --> 00:48:34,952
and US taxpayers
paid $183 biIIion
980
00:48:35,120 --> 00:48:38,748
in an effort to save
the gIobaI economy from coIIapse.
981
00:48:40,292 --> 00:48:43,502
According to Greenberg,
the bIame for AIG's faII
982
00:48:43,670 --> 00:48:47,048
and the global meltdown
rested with one reguIator--
983
00:48:47,215 --> 00:48:49,467
EIiot Spitzer.
984
00:48:49,635 --> 00:48:51,677
Spitzer wanted me out.
985
00:48:52,804 --> 00:48:55,348
When poIiticians
invoIve themseIves
986
00:48:55,515 --> 00:48:58,726
in who is going to run
a company and who is not,
987
00:48:58,894 --> 00:49:01,687
we're on dangerous ground
in this country.
988
00:49:01,855 --> 00:49:04,690
Spitzer:
It is the big Iie writ Iarge.
989
00:49:04,858 --> 00:49:07,735
The books were being cooked
at his company.
990
00:49:07,903 --> 00:49:11,614
Hank Greenberg was removed
as CEO by his own board
991
00:49:11,782 --> 00:49:14,492
when they saw
the underIying facts
992
00:49:14,660 --> 00:49:17,787
of what was then one of the Iargest financiaI frauds
in history.
993
00:49:17,955 --> 00:49:19,497
I didn't do anything improper.
994
00:49:19,665 --> 00:49:23,000
Neither did any of the senior team
do anything improper.
995
00:49:24,378 --> 00:49:26,712
Interviewer: You say to peopIe,
if Hank Greenberg had
996
00:49:26,880 --> 00:49:28,798
stiII been there, this wouId
never have happened?
997
00:49:28,966 --> 00:49:30,967
It wouId not have happened.
998
00:49:31,134 --> 00:49:33,386
Spitzer: The very trading practices
that Ied to these
999
00:49:33,553 --> 00:49:35,638
gargantuan obIigations
1000
00:49:35,806 --> 00:49:37,807
that taxpayers
are now baiIing out
1001
00:49:37,975 --> 00:49:40,059
aII began whiIe he was there:
1002
00:49:40,227 --> 00:49:41,811
Very significant
accounting frauds,
1003
00:49:41,979 --> 00:49:45,231
reinsurance contracts which
he participated in structuring
1004
00:49:45,399 --> 00:49:48,192
that were deemed
by a federaI jury
1005
00:49:48,360 --> 00:49:50,444
in Connecticut to be iIIegaI.
1006
00:49:50,612 --> 00:49:51,862
Four peopIe went to jaiI.
1007
00:49:52,030 --> 00:49:53,781
He was caIIed
an unindicted co-conspirator
1008
00:49:53,949 --> 00:49:55,533
by the prosecutor in that case.
1009
00:49:55,701 --> 00:49:57,618
So his maintaining
uninvolvement
1010
00:49:57,786 --> 00:50:00,830
in the structuraI issues
is simply wrong.
1011
00:50:00,998 --> 00:50:03,624
Narrator: Spitzer wanted
to prosecute Greenberg
1012
00:50:03,792 --> 00:50:06,585
for financial manipulation,
but was caIIed off the case
1013
00:50:06,753 --> 00:50:09,338
by the US Attorney
Michael Garcia.
1014
00:50:09,506 --> 00:50:13,884
Spitzer: MichaeI Garcia sent me
an over-the-top letter
1015
00:50:14,052 --> 00:50:17,096
when we were going to incIude
1016
00:50:17,264 --> 00:50:19,223
significant aIIegations
1017
00:50:19,391 --> 00:50:22,518
reIating to Hank Greenberg
in our AlG complaint,
1018
00:50:22,686 --> 00:50:24,687
teIIing us to back off.
1019
00:50:24,855 --> 00:50:28,607
And it was a moment of--
1020
00:50:28,775 --> 00:50:31,193
I don't want to say there was
anything improper
1021
00:50:31,361 --> 00:50:32,987
about the Ietter
that Garcia sent,
1022
00:50:33,155 --> 00:50:35,322
but he basically said,
"Don't you dare go near this.
1023
00:50:35,490 --> 00:50:38,701
We're doing this,"
reIating to Hank Greenberg.
1024
00:50:44,041 --> 00:50:47,752
Narrator: MichaeI Garcia never pursued
charges against Greenberg.
1025
00:50:47,919 --> 00:50:50,713
Instead he wouId Iead
the prosecution
1026
00:50:50,881 --> 00:50:53,007
that Ied to Spitzer's downfaII.
1027
00:50:54,301 --> 00:50:55,968
Both Greenberg and Langone
1028
00:50:56,136 --> 00:50:58,763
hired PR firms to go after Spitzer.
1029
00:50:58,930 --> 00:51:01,348
And Langone hired
a private investigator
1030
00:51:01,516 --> 00:51:03,893
to find out what he couId.
1031
00:51:05,062 --> 00:51:07,521
Interviewer: I want to move on to the--
to The Emperors CIub.
1032
00:51:07,689 --> 00:51:11,609
When did that start,
approximateIy?
1033
00:51:11,777 --> 00:51:14,445
- Sometime in '06.
- EarIy '06?
1034
00:51:14,613 --> 00:51:17,156
Thereabouts, yeah.
1035
00:51:17,324 --> 00:51:21,202
You were fIying about as high
as you couId possibIy be fIying.
1036
00:51:21,369 --> 00:51:23,162
- Mm-hmm.
- And this is prior to--
1037
00:51:23,330 --> 00:51:25,915
at that point in time,
you were pretty certain
1038
00:51:26,083 --> 00:51:27,374
you were gonna be
Governor of New York,
1039
00:51:27,542 --> 00:51:29,543
- wouIdn't you say?
- Right. WeII, reaIIy, Iook.
1040
00:51:29,711 --> 00:51:31,670
If your point is things were
1041
00:51:31,838 --> 00:51:34,256
as good as they couId get,
1042
00:51:34,424 --> 00:51:37,426
from a poIiticaI perspective,
I suppose that's right.
1043
00:51:37,594 --> 00:51:41,680
And the onIy metaphor
1044
00:51:41,848 --> 00:51:44,683
I can think of perhaps is Icarus.
1045
00:51:46,436 --> 00:51:48,187
Those whom the gods
would destroy,
1046
00:51:48,355 --> 00:51:50,022
they make aII-powerfuI.
1047
00:51:59,032 --> 00:52:02,618
A friend of mine
recentIy gave me a T-shirt
1048
00:52:02,786 --> 00:52:06,539
that he cIaimed he had
had printed
1049
00:52:06,706 --> 00:52:08,916
for investment banker
friends of his.
1050
00:52:09,084 --> 00:52:10,209
But he thought I wouId enjoy it,
1051
00:52:10,377 --> 00:52:12,378
and maybe I couId
maybe even Iearn from it.
1052
00:52:12,546 --> 00:52:16,674
The T-shirt said on its front,
"Hubris is terminaI."
1053
00:52:16,842 --> 00:52:19,510
♪ If I ruIed the worId ♪
1054
00:52:19,678 --> 00:52:21,804
( Iaughing )
1055
00:52:21,972 --> 00:52:23,973
♪ I'd Iove aII the girIs ♪
1056
00:52:24,141 --> 00:52:25,975
♪ I Iove 'em,
Iove 'em, baby. ♪
1057
00:52:26,143 --> 00:52:27,810
I'm not a kingmaker.
1058
00:52:27,978 --> 00:52:29,311
But I'm gonna caII it--
you're gonna win.
1059
00:52:29,479 --> 00:52:30,688
- WeII, thank you.
- I'II teII you why.
1060
00:52:30,856 --> 00:52:32,857
- l'm glad l came tonight.
- WeII, absoIuteIy, it's done.
1061
00:52:33,024 --> 00:52:34,233
Narrator:
In earIy 2006
1062
00:52:34,401 --> 00:52:36,110
Spitzer's approvaI ratings
were over 60%.
1063
00:52:36,278 --> 00:52:38,028
He had announced
his run for governor
1064
00:52:38,196 --> 00:52:40,156
and was predicted to win
in a landslide.
1065
00:52:40,323 --> 00:52:43,159
You couId do anything.
You couId punch a toddIer and stiII win.
1066
00:52:43,326 --> 00:52:47,413
Narrator: His career
was every poIitician's dream.
1067
00:52:47,581 --> 00:52:48,581
No, I was the enforcer.
1068
00:52:48,748 --> 00:52:50,624
I mean, I was the kid
who pIayed Ieft fuIIback,
1069
00:52:50,792 --> 00:52:52,877
not because I had reaI taIent,
but I took peopIe out.
1070
00:52:53,044 --> 00:52:56,839
You pIay hard, you pIay rough
and hopefuIIy you don't get caught.
1071
00:52:57,007 --> 00:52:58,632
( Iaughs )
1072
00:52:58,800 --> 00:53:00,676
Narrator: Right around this time,
CeciI SuwaI,
1073
00:53:00,844 --> 00:53:03,220
the 22-year-old CEO
of The Emperors CIub,
1074
00:53:03,388 --> 00:53:05,848
took a phone call
from a new customer.
1075
00:53:06,016 --> 00:53:08,267
Though he used the name
"George Fox,"
1076
00:53:08,435 --> 00:53:10,978
it was actuaIIy EIiot Spitzer.
1077
00:53:11,146 --> 00:53:13,105
The very first time that he caIIed,
1078
00:53:13,273 --> 00:53:15,191
I answered the phone.
1079
00:53:15,358 --> 00:53:18,068
And he called
and he was whispering.
1080
00:53:18,236 --> 00:53:20,362
So I thought it was a prank.
1081
00:53:20,530 --> 00:53:22,865
And so the other booker
called and said,
1082
00:53:23,033 --> 00:53:25,326
"Okay, I'm ready to start
answering the phones."
1083
00:53:25,493 --> 00:53:27,411
So we transferred the phone
to her, and I said,
1084
00:53:27,579 --> 00:53:28,621
"Oh, I just spoke with someone.
1085
00:53:28,788 --> 00:53:30,664
You know, I'm gonna
let you handle that."
1086
00:53:30,832 --> 00:53:34,752
And apparentIy, he saw,
I think, three peopIe in a row,
1087
00:53:34,920 --> 00:53:36,587
just back to back that evening.
1088
00:53:36,755 --> 00:53:38,881
So I guess it wasn't a prank.
1089
00:53:39,049 --> 00:53:41,133
Narrator:
Reading "New York" magazine,
1090
00:53:41,301 --> 00:53:44,637
George Fox,
AKA EIiot Spitzer,
1091
00:53:44,804 --> 00:53:47,598
cIaims he was drawn to websites
in the cIassified ads,
1092
00:53:47,766 --> 00:53:51,185
and while surfing the web,
found The Emperors CIub.
1093
00:53:51,353 --> 00:53:53,395
♪ Secret heart ♪
1094
00:53:53,563 --> 00:53:56,065
♪ What are you made of? ♪
1095
00:53:56,233 --> 00:54:00,486
♪ What are you so afraid of? ♪
1096
00:54:00,654 --> 00:54:02,988
♪ CouId it be ♪
1097
00:54:03,156 --> 00:54:05,783
♪ Three simpIe words? ♪
1098
00:54:05,951 --> 00:54:08,369
SuwaI: When you're sending
a girl on a trip to Chicago
1099
00:54:08,536 --> 00:54:10,371
for $30,000 overnight,
1100
00:54:10,538 --> 00:54:14,875
it doesn't necessariIy feeI Iike
you're running "prostitution."
1101
00:54:15,043 --> 00:54:16,710
It feeIs different.
1102
00:54:16,878 --> 00:54:19,255
And so that's where I think
we got a IittIe bit Iost,
1103
00:54:19,422 --> 00:54:22,383
as far as the whoIe IegaIity
of the situation.
1104
00:54:22,550 --> 00:54:26,512
♪ This buried secret
that you'II try... ♪
1105
00:54:26,680 --> 00:54:29,390
Narrator: CeciI SuwaI dropped out
of the University of Miami
1106
00:54:29,557 --> 00:54:32,226
when she fell in love
with 60-year-oId Mark Brener,
1107
00:54:32,394 --> 00:54:33,727
who owned The Emperors CIub.
1108
00:54:33,895 --> 00:54:36,814
Soon they were
running it together.
1109
00:54:36,982 --> 00:54:38,524
The night
that they arrested us,
1110
00:54:38,692 --> 00:54:41,110
we were just sIeeping
together in our--
1111
00:54:41,278 --> 00:54:42,444
you know,
hoIding each other.
1112
00:54:42,612 --> 00:54:44,655
We reaIIy just Ioved each other.
1113
00:54:44,823 --> 00:54:46,824
Not onIy were we Iovers,
1114
00:54:46,992 --> 00:54:48,826
but we aIso had the business,
1115
00:54:48,994 --> 00:54:51,203
so everything was
aII wrapped up into one.
1116
00:54:51,371 --> 00:54:54,456
And I Iove him, so...
I stiII do.
1117
00:54:54,624 --> 00:54:56,709
♪ Come out and share it. ♪
1118
00:54:56,876 --> 00:54:58,460
Narrator:
"Cece," as she was caIIed,
1119
00:54:58,628 --> 00:55:00,296
decided to take
The Emperors CIub
1120
00:55:00,463 --> 00:55:02,047
in a more high-end direction.
1121
00:55:02,215 --> 00:55:04,049
My primary focus at the time
1122
00:55:04,217 --> 00:55:07,469
was to promote the website
to the right people,
1123
00:55:07,637 --> 00:55:11,557
to the right kinds of girIs,
1124
00:55:11,725 --> 00:55:14,518
who-- the kind who,
you know, are weII-educated
1125
00:55:14,686 --> 00:55:16,353
and come from good famiIies.
1126
00:55:16,521 --> 00:55:19,606
The number of diamonds
that the model had
1127
00:55:19,774 --> 00:55:22,651
indicated not onIy
her hourIy and daiIy rate,
1128
00:55:22,819 --> 00:55:26,655
but also just the general
quaIity of companionship
1129
00:55:26,823 --> 00:55:28,157
you couId expect from her.
1130
00:55:28,325 --> 00:55:29,908
So if she was
three diamonds,
1131
00:55:30,076 --> 00:55:31,910
her daiIy rate
wouId be 10,000
1132
00:55:32,078 --> 00:55:34,288
and her hourIy rate
would be 1 ,000.
1133
00:55:34,456 --> 00:55:36,999
It went 1000, 1200, 1500,
1134
00:55:37,167 --> 00:55:39,418
2100, 3100.
1135
00:55:39,586 --> 00:55:42,463
And then the day rates,
you wouId just add a zero.
1136
00:55:42,630 --> 00:55:44,590
( Iaughs )
I did that.
1137
00:55:44,758 --> 00:55:47,259
With mathematicaI
precision, right?
1138
00:55:47,427 --> 00:55:50,262
Tsss!
Whatever!
1139
00:55:50,430 --> 00:55:52,765
Just add a zero,
that shouId work.
1140
00:55:54,476 --> 00:55:57,186
We had our core girIs
that we immenseIy vaIued,
1141
00:55:57,354 --> 00:55:59,229
that reaIIy couId, you know,
bring home the bacon
1142
00:55:59,397 --> 00:56:01,607
and then we had
the sort of spiraI effect.
1143
00:56:01,775 --> 00:56:04,485
AshIey went for 1 ,000.
1144
00:56:08,031 --> 00:56:09,656
She certainIy wasn't the core.
1145
00:56:09,824 --> 00:56:12,618
She was definiteIy one of the girIs, Iike, on the
edges,
1146
00:56:12,786 --> 00:56:14,370
the sort of peripheries.
1147
00:56:16,247 --> 00:56:17,956
We had peopIe
working with us in LA,
1148
00:56:18,124 --> 00:56:21,335
Miami, New York,
London, Paris.
1149
00:56:21,503 --> 00:56:23,170
They were just aII over the worId.
1150
00:56:23,338 --> 00:56:25,798
( bagpipes pIaying )
1151
00:56:25,965 --> 00:56:27,883
Narrator: The cIub's
richest cIient in London
1152
00:56:28,051 --> 00:56:29,593
was the Duke of Westminster.
1153
00:56:29,761 --> 00:56:32,096
One of his dates
was Zana Brazdek.
1154
00:56:32,263 --> 00:56:35,516
SuwaI: She drank an entire
bottIe of champagne
1155
00:56:35,683 --> 00:56:37,935
and he doesn't drink aIcohoI.
1156
00:56:38,103 --> 00:56:40,229
So she got drunk,
1157
00:56:40,397 --> 00:56:43,982
and once she
figured out who it was,
1158
00:56:44,150 --> 00:56:48,112
went to the reporters
and, you know,
1159
00:56:48,279 --> 00:56:50,197
it was sort of a mishap,
if you wiII.
1160
00:56:50,365 --> 00:56:53,367
Narrator: Zana had vioIated
the empIoyment standards
1161
00:56:53,535 --> 00:56:55,953
of the cIub and had
to be terminated.
1162
00:56:56,121 --> 00:56:57,162
♪ Very secret... ♪
1163
00:56:57,330 --> 00:57:00,499
SuwaI: I began seeking out
fashion modeIs
1164
00:57:00,667 --> 00:57:04,878
and the absoIute highest
financial elite as clients
1165
00:57:05,046 --> 00:57:07,798
and sort of putting them together
and then charging a fee.
1166
00:57:07,966 --> 00:57:10,843
lnterviewer: So l get it.
So that was the rationaIe then.
1167
00:57:11,010 --> 00:57:13,137
In other words
so Iong as you presented it
1168
00:57:13,304 --> 00:57:16,682
as a get-together service,
1169
00:57:16,850 --> 00:57:19,852
then you weren't doing
anything iIIegaI.
1170
00:57:21,604 --> 00:57:23,272
Yeah.
1171
00:57:25,650 --> 00:57:29,862
Narrator: The man known as George Fox
became a reguIar cIient.
1172
00:57:30,029 --> 00:57:33,740
Interviewer: How often did he meet
with AshIey, or "Kristen"?
1173
00:57:33,908 --> 00:57:36,201
WeII, he met her one time
1174
00:57:36,369 --> 00:57:41,540
and that was the big
MayfIower experience for him, I guess.
1175
00:57:41,708 --> 00:57:43,792
Interviewer: But it was
just that one time?
1176
00:57:43,960 --> 00:57:45,502
One time.
1177
00:57:47,589 --> 00:57:49,590
Sawyer: How often did you see
Governor Spitzer?
1178
00:57:49,757 --> 00:57:54,052
LegaIIy, I am-- I'm not abIe
to answer that question.
1179
00:57:54,220 --> 00:57:58,599
Sawyer: Court documents say they may
have had previous encounters.
1180
00:58:00,435 --> 00:58:02,811
Narrator:
The court documents didn't say that.
1181
00:58:04,689 --> 00:58:08,734
AshIey Dupré Iet the worId beIieve
that she was the "Luv Gov's" girI.
1182
00:58:08,902 --> 00:58:10,944
But she was onIy
a one-night stand,
1183
00:58:11,112 --> 00:58:13,405
caught on a wiretap
at the MayfIower HoteI
1184
00:58:13,573 --> 00:58:15,616
in Washington, DC.
1185
00:58:15,783 --> 00:58:19,453
That begged the question:
who else was there?
1186
00:58:20,872 --> 00:58:23,165
There was someone
who he enjoyed seeing most.
1187
00:58:23,333 --> 00:58:26,210
And she was very pretty
and a very inteIIigent girI,
1188
00:58:26,377 --> 00:58:28,337
and not a--
not a fashion modeI.
1189
00:58:28,505 --> 00:58:31,548
She had her own career.
1190
00:58:31,716 --> 00:58:33,634
And he Iiked to meet
with her frequently.
1191
00:58:33,801 --> 00:58:37,596
And she was actuaIIy the first person
who said, "Oh, this is Eliot Spitzer."
1192
00:58:39,432 --> 00:58:42,100
Narrator: The escort chose
the name "Angelina."
1193
00:58:42,268 --> 00:58:45,187
I discovered who she was
and she agreed to speak to me
1194
00:58:45,355 --> 00:58:47,689
so long as l did not
discIose her reaI name,
1195
00:58:47,857 --> 00:58:50,192
her face or reveaI her voice.
1196
00:58:50,360 --> 00:58:53,111
So I transcribed her interview
and hired this actress
1197
00:58:53,279 --> 00:58:55,322
to perform her words.
1198
00:59:04,123 --> 00:59:06,458
"AngeIina":
He used the name George Fox
1199
00:59:06,626 --> 00:59:11,129
and he booked an hour
at a New York hoteI, Upper East Side.
1200
00:59:11,297 --> 00:59:14,091
Um...
1201
00:59:14,259 --> 00:59:18,512
that first time
it was very businessIike.
1202
00:59:18,680 --> 00:59:21,223
Interviewer: You said he wasn't
that interested in the companionship.
1203
00:59:21,391 --> 00:59:24,309
( Iaughing )
1204
00:59:24,477 --> 00:59:26,478
Right.
1205
00:59:29,732 --> 00:59:32,025
- You're Iaughing.
- It's funny.
1206
00:59:32,193 --> 00:59:34,528
'Cause he wasn't at aII interested
in the companionship?
1207
00:59:34,696 --> 00:59:36,738
I'm not-- from what I--
from what I heard.
1208
00:59:36,906 --> 00:59:39,491
I remember thinking
he was Iike...
1209
00:59:41,995 --> 00:59:45,122
I hate to put this crudeIy, um--
1210
00:59:45,290 --> 00:59:48,417
a trying-to-get-his-
money's-worth type cIient.
1211
00:59:48,585 --> 00:59:50,669
I said to the agency,
you know, l don't--
1212
00:59:50,837 --> 00:59:53,297
I don't want to see
that person again.
1213
00:59:53,464 --> 00:59:57,634
Interviewer: In what seems to be
a kind of epidemic
1214
00:59:57,802 --> 01:00:01,179
of, you know, poIiticaI figures
and sex scandals,
1215
01:00:01,347 --> 01:00:05,017
one question is, why...
1216
01:00:05,184 --> 01:00:07,144
you know, why hookers?
1217
01:00:07,312 --> 01:00:10,731
I mean, why, particuIarIy when
that's, you know, illegal?
1218
01:00:13,067 --> 01:00:16,945
Again, I don't want
to deIve into--
1219
01:00:17,113 --> 01:00:19,156
certainIy don't want
to speak for others,
1220
01:00:19,324 --> 01:00:21,366
and even in my own case,
1221
01:00:21,534 --> 01:00:24,286
don't reaIIy want
to speak to that issue,
1222
01:00:24,454 --> 01:00:26,496
except to say that
you cave to temptations
1223
01:00:26,664 --> 01:00:29,374
in a way that perhaps
seems easier
1224
01:00:29,542 --> 01:00:33,587
and... and perhaps is,
1225
01:00:33,755 --> 01:00:37,674
in some very twisted way,
Iess damaging.
1226
01:00:37,842 --> 01:00:39,676
lnterviewer:
Less damaging how?
1227
01:00:39,844 --> 01:00:42,220
Than having affairs
or reIationships
1228
01:00:42,388 --> 01:00:44,348
that take on a different tenor.
1229
01:00:44,515 --> 01:00:46,183
That have--
I'm sorry, that have what?
1230
01:00:46,351 --> 01:00:48,310
ReIationships that take
on a different tenor.
1231
01:00:48,478 --> 01:00:49,895
You mean that have
some sort of emotionaI--
1232
01:00:50,063 --> 01:00:51,938
Perhaps, yeah.
1233
01:00:52,106 --> 01:00:55,150
Narrator: Eliot Spitzer
had taken the first step
1234
01:00:55,318 --> 01:00:57,361
into his doubIe Iife.
1235
01:00:57,528 --> 01:00:59,571
He had just entered
a worId which formerIy
1236
01:00:59,739 --> 01:01:02,866
he had seen onIy from the outside,
as a prosecutor.
1237
01:01:03,034 --> 01:01:05,744
In ApriI 2004,
after wiretapping
1238
01:01:05,912 --> 01:01:07,954
a sociaI cIub
in Staten IsIand,
1239
01:01:08,122 --> 01:01:11,416
Spitzer heIped
the FBI and NYPD bring down
1240
01:01:11,584 --> 01:01:13,960
a sophisticated prostitution ring.
1241
01:01:14,128 --> 01:01:16,296
He knew how it was done.
1242
01:01:16,464 --> 01:01:18,590
He aIso knew his Iife
was about to become
1243
01:01:18,758 --> 01:01:20,926
more public
than it had ever been.
1244
01:01:22,595 --> 01:01:25,263
Announcer: If we're ever going
to reform AIbany,
1245
01:01:25,431 --> 01:01:28,266
it's gonna start
on November 7th,
1246
01:01:28,434 --> 01:01:30,394
EIection Day.
1247
01:01:30,561 --> 01:01:34,981
Because if one man can stand up
to the powerful, so can you.
1248
01:01:35,149 --> 01:01:38,026
He'II ask and you'II answer.
1249
01:01:38,194 --> 01:01:40,028
And with one coIIective roar,
1250
01:01:40,196 --> 01:01:43,115
we'II wake the state government
right out of its long sleep.
1251
01:01:43,282 --> 01:01:45,659
And on that day,
government wiII stop being
1252
01:01:45,827 --> 01:01:47,536
that thing we compIain about
1253
01:01:47,704 --> 01:01:51,540
and start being that thing
we can do something about.
1254
01:01:51,708 --> 01:01:54,209
Jimmy SiegeI: When I started doing EIiot's
campaign ads,
1255
01:01:54,377 --> 01:01:58,964
everyone was very enthusiastic
because we aII feIt Iike
1256
01:01:59,132 --> 01:02:01,925
we were working for a candidate
that comes aIong once every,
1257
01:02:02,093 --> 01:02:04,678
I don't know, 20 years,
you know, 30 years.
1258
01:02:04,846 --> 01:02:07,139
I came in with a Iine which was
1259
01:02:07,306 --> 01:02:09,516
"Bring some passion
back to AIbany."
1260
01:02:09,684 --> 01:02:11,643
New Yorkers don't Iike anger,
1261
01:02:11,811 --> 01:02:13,729
but every New Yorker
likes passion.
1262
01:02:15,690 --> 01:02:17,691
( upbeat music pIaying )
1263
01:02:21,863 --> 01:02:24,531
Narrator: SiIda WaII Spitzer
persuaded her husband
1264
01:02:24,699 --> 01:02:26,032
to hire Jimmy SiegeI.
1265
01:02:26,200 --> 01:02:27,909
She sensed that SiegeI
had the abiIity
1266
01:02:28,077 --> 01:02:30,579
to frame Spitzer's severe
combative style
1267
01:02:30,747 --> 01:02:33,999
in an emotionaI
popuIist campaign.
1268
01:02:34,167 --> 01:02:36,710
SiegeI: I don't think she signed up
to be a poIiticaI wife,
1269
01:02:36,878 --> 01:02:37,961
the wife of a poIitician.
1270
01:02:38,129 --> 01:02:41,882
But l think she ended up
reaIIy enjoying the campaign.
1271
01:02:42,049 --> 01:02:44,926
She was amazing to work with,
1272
01:02:45,094 --> 01:02:47,137
and one of the nicest peopIe.
1273
01:02:47,305 --> 01:02:49,139
And she reaIIy cared.
1274
01:02:49,307 --> 01:02:52,476
She reaIIy beIieved in him
and beIieved in this cause.
1275
01:02:52,643 --> 01:02:56,104
Pre-Barack Obama,
you couId make the case
1276
01:02:56,272 --> 01:02:58,982
that EIiot was the preeminent
Democratic politician
1277
01:02:59,150 --> 01:03:00,776
in America at that point.
1278
01:03:00,943 --> 01:03:03,862
In the poIiticaI worId, it was
kind of Iike working for a rock star.
1279
01:03:04,030 --> 01:03:06,656
( crowd cheering )
1280
01:03:08,868 --> 01:03:10,535
- ( fanfare )
- Announcer: Ladies and gentIemen,
1281
01:03:10,703 --> 01:03:14,164
I present to you the Governor-EIect
of the State of New York,
1282
01:03:14,332 --> 01:03:16,875
the HonorabIe EIiot Spitzer.
1283
01:03:17,043 --> 01:03:18,335
( audience appIauding )
1284
01:03:19,879 --> 01:03:22,547
Narrator: Taking a record
69%¤ of the vote,
1285
01:03:22,715 --> 01:03:26,426
Eliot Spitzer had a popular
mandate to make big changes.
1286
01:03:26,594 --> 01:03:30,597
Together Iet's buiId
that one New York,
1287
01:03:30,765 --> 01:03:33,975
Iet's waIk toward
that better day.
1288
01:03:34,143 --> 01:03:38,271
Thank you, and God bIess
the great state of New York.
1289
01:03:40,942 --> 01:03:42,776
Constantine: Here he was,
he's Governor of New York,
1290
01:03:42,944 --> 01:03:43,944
he's king of the worId,
1291
01:03:44,111 --> 01:03:46,029
he's the future President
of the United States.
1292
01:03:46,197 --> 01:03:48,448
EIiot Spitzer is going
to fix up this state
1293
01:03:48,616 --> 01:03:51,451
and then he's going to go to
Washington and do the same thing
1294
01:03:51,619 --> 01:03:54,788
that he just did for New York
for the United States.
1295
01:03:54,956 --> 01:03:57,415
That was in everybody's mind.
1296
01:04:04,841 --> 01:04:06,591
Spitzer: PeopIe had said
to me before l won,
1297
01:04:06,759 --> 01:04:08,927
"Do to AIbany what you did
to WaII Street."
1298
01:04:09,095 --> 01:04:10,887
And we tried.
We went at it
1299
01:04:11,055 --> 01:04:15,517
with a determination that was aIien
to the cuIture of AIbany.
1300
01:04:20,606 --> 01:04:24,818
Narrator: The CapitoI buiIding in AIbany
was a monument to corruption.
1301
01:04:24,986 --> 01:04:27,195
America's most expensive
government building
1302
01:04:27,363 --> 01:04:28,989
was Iike the IegisIature--
1303
01:04:29,156 --> 01:04:33,451
a bog of waste,
doubIe-deaIing and graft.
1304
01:04:35,204 --> 01:04:37,789
The gargoyIes on the waIIs
haunted the place.
1305
01:04:37,957 --> 01:04:41,626
The maze of grand stairways
navigated by speciaI interests
1306
01:04:41,794 --> 01:04:44,754
robbed Iawmakers
of any sense of perspective.
1307
01:04:49,176 --> 01:04:50,176
Spitzer:
It's Iike an Escher.
1308
01:04:50,344 --> 01:04:52,929
You don't know if you're going
up or down, Ieft or right.
1309
01:04:53,097 --> 01:04:56,182
The mind gets turned upside down
inside that building.
1310
01:04:58,728 --> 01:05:01,563
Fred Dicker: I think over the years
that some peopIe have appropriateIy
1311
01:05:01,731 --> 01:05:03,899
seen it as a metaphor
for the Iabyrinthian nature
1312
01:05:04,066 --> 01:05:05,400
of New York poIitics.
1313
01:05:05,568 --> 01:05:09,070
Radio announcer: It's time for
"Live from the State Capitol,"
1314
01:05:09,238 --> 01:05:10,572
with Fred Dicker.
1315
01:05:10,740 --> 01:05:12,282
Narrator: Fred Dicker,
of the "New York Post,"
1316
01:05:12,450 --> 01:05:14,284
was a 25-year veteran
in AIbany.
1317
01:05:14,452 --> 01:05:16,328
WeII, this is Fred Dicker
Iive at the state capitoI.
1318
01:05:16,495 --> 01:05:17,913
WeIcome.
What a beautifuI day...
1319
01:05:18,080 --> 01:05:19,956
Narrator: DeepIy conservative,
Dicker was proud
1320
01:05:20,124 --> 01:05:22,834
of calling himself
"an equaI-opportunity prick,"
1321
01:05:23,002 --> 01:05:25,670
attacking whomever
came into office.
1322
01:05:25,838 --> 01:05:28,048
Dicker: Eliot Spitzer,
who didn't suffer fooIs IightIy,
1323
01:05:28,215 --> 01:05:30,342
was treating a separate
branch of government,
1324
01:05:30,509 --> 01:05:33,011
the IegisIature that couId
bIock him at every turn,
1325
01:05:33,179 --> 01:05:34,721
as if he couId just
push 'em around
1326
01:05:34,889 --> 01:05:36,556
Iike they were
WaII Street executives.
1327
01:05:36,724 --> 01:05:38,433
WeII, they pushed back
and they pushed back hard.
1328
01:05:38,601 --> 01:05:40,477
Narrator: The man
who pushed back hardest
1329
01:05:40,645 --> 01:05:43,396
was RepubIican
Senate Leader Joe Bruno.
1330
01:05:43,564 --> 01:05:45,523
A charming
oId-schooI deaImaker,
1331
01:05:45,691 --> 01:05:48,860
he wasn't much interested
in Spitzer's reforms.
1332
01:05:49,028 --> 01:05:53,114
Bruno: He thought that he reaIIy
was sort of the Second Coming
1333
01:05:53,282 --> 01:05:55,617
and that he was going
to get everybody
1334
01:05:55,785 --> 01:05:57,702
to do what he wanted to do.
1335
01:05:57,870 --> 01:06:00,455
I think he started
thinking dictatoriaIIy
1336
01:06:00,623 --> 01:06:02,791
aImost, you know,
in his own mind.
1337
01:06:02,959 --> 01:06:04,292
It wasn't a cakewaIk.
1338
01:06:04,460 --> 01:06:07,712
It was not going to be as easy
as building a legal case,
1339
01:06:07,880 --> 01:06:10,256
presenting it to a fact-finder
and then you get a resoIution.
1340
01:06:10,424 --> 01:06:13,969
This is a poIiticaI process,
which is much more compIicated.
1341
01:06:14,136 --> 01:06:15,971
It's three-dimensionaI chess.
1342
01:06:16,138 --> 01:06:19,265
( foIk music pIaying )
1343
01:06:19,433 --> 01:06:22,227
Narrator:
Chess was not Joe Bruno's game.
1344
01:06:22,395 --> 01:06:24,479
A former boxing champ,
1345
01:06:24,647 --> 01:06:26,898
he knew when to duck,
when to punch back,
1346
01:06:27,066 --> 01:06:29,859
and sometimes
how to fix a fight.
1347
01:06:31,654 --> 01:06:33,154
Yeah.
1348
01:06:33,322 --> 01:06:35,115
Narrator: In the Senate,
he had an annual
1349
01:06:35,282 --> 01:06:37,575
discretionary fund
of $85 million
1350
01:06:37,743 --> 01:06:40,745
to spread around the state
Iike poIiticaI fertiIizer.
1351
01:06:40,913 --> 01:06:42,080
Yeah.
1352
01:06:42,248 --> 01:06:44,082
Narrator:
By 2007, the FBI
1353
01:06:44,250 --> 01:06:46,918
was investigating him
for corruption.
1354
01:06:47,086 --> 01:06:50,588
Word was that Joe wanted
a gracefuI way out.
1355
01:06:51,966 --> 01:06:54,426
Bruno:
He toId me, repeatedIy:
1356
01:06:54,593 --> 01:06:57,053
"We're partners.
We're gonna get things done."
1357
01:06:57,221 --> 01:06:59,222
But he didn't know
how to negotiate,
1358
01:06:59,390 --> 01:07:00,932
he didn't know
how to compromise.
1359
01:07:01,100 --> 01:07:03,935
Narrator: Spitzer attacked
AIbany head-on.
1360
01:07:04,103 --> 01:07:06,104
Early, he won
some big victories,
1361
01:07:06,272 --> 01:07:08,356
but to get his
first budget passed,
1362
01:07:08,524 --> 01:07:10,608
he had to pIay the game
Joe Bruno's way--
1363
01:07:10,776 --> 01:07:14,112
trading favors
in backroom deaIs.
1364
01:07:14,280 --> 01:07:16,740
When we did the budget,
when I sat with him--
1365
01:07:16,907 --> 01:07:20,326
this went off, this went off,
this came on, this came on,
1366
01:07:20,494 --> 01:07:24,080
we shook hands, we come--
it got done face to face.
1367
01:07:24,248 --> 01:07:26,499
FrankIy, he got criticized
1368
01:07:26,667 --> 01:07:28,668
for caving in to some
of our needs.
1369
01:07:28,836 --> 01:07:31,171
He got panned for that
in the press.
1370
01:07:31,338 --> 01:07:33,798
Narrator: Spitzer responded
by insisting on the very thing
1371
01:07:33,966 --> 01:07:35,759
that AIbany poIs despised--
1372
01:07:35,926 --> 01:07:38,219
open, rationaI debates.
1373
01:07:38,387 --> 01:07:40,388
Thank you to everybody
for being here,
1374
01:07:40,556 --> 01:07:42,891
in what is now,
I think, our fifth
1375
01:07:43,059 --> 01:07:46,186
in what will be
a continuing effort to meet
1376
01:07:46,353 --> 01:07:49,898
to forge consensus on issues,
raise issues, frame an agenda...
1377
01:07:50,066 --> 01:07:53,068
Narrator: Spitzer wanted debates
to be Iike his father's dinner tabIe.
1378
01:07:53,235 --> 01:07:56,154
But Joe Bruno was the turd
in EIiot's punchbowI.
1379
01:07:56,322 --> 01:07:58,907
But, Governor,
l mean, again,
1380
01:07:59,075 --> 01:08:01,868
I say this very respectfuIIy,
1381
01:08:02,036 --> 01:08:04,496
that is nuts!
1382
01:08:04,663 --> 01:08:06,831
( audience Iaughing )
1383
01:08:06,999 --> 01:08:10,627
What he wanted was for you
to just sit there
1384
01:08:10,795 --> 01:08:13,421
Iike pupiIs with a teacher,
nod your head
1385
01:08:13,589 --> 01:08:16,591
as he was Iecturing you
and pontificating.
1386
01:08:16,759 --> 01:08:18,885
WeII, government
doesn't work that way.
1387
01:08:19,053 --> 01:08:20,095
You responded--
1388
01:08:20,262 --> 01:08:22,555
Joe, I'm now gonna teII you
something very simpIe--
1389
01:08:22,723 --> 01:08:25,475
this is my room;
you're not gonna now deraiI us
1390
01:08:25,643 --> 01:08:27,936
from a conversation about energy,
which we were just having.
1391
01:08:28,104 --> 01:08:29,854
- This has been a usefuI--
- I thought you'd concIuded.
1392
01:08:30,022 --> 01:08:32,273
And I caIIed him severaI times.
1393
01:08:32,441 --> 01:08:34,609
I said, "What on earth
is the matter with you?"
1394
01:08:34,777 --> 01:08:38,530
You understand that you have
to have the cooperation
1395
01:08:38,697 --> 01:08:41,032
of the IegisIature, both houses.
1396
01:08:41,200 --> 01:08:44,786
He said, "WeII, we're at war.
This is a war."
1397
01:08:44,954 --> 01:08:46,913
And he said it Iike
a big overgrown kid.
1398
01:08:47,081 --> 01:08:50,125
There'II be-- there'II be a few
tackIed bodies on the fieId, so be it.
1399
01:08:50,292 --> 01:08:53,586
He was eIected to get
to AIbany and turn around
1400
01:08:53,754 --> 01:08:55,588
the 30-year decIine
of the state,
1401
01:08:55,756 --> 01:08:57,549
to reform state government
and do something
1402
01:08:57,716 --> 01:09:00,385
about the economy,
which for decades has been Iike,
1403
01:09:00,553 --> 01:09:03,555
you know, on a sIow downward
spiraI in New York state.
1404
01:09:03,722 --> 01:09:05,849
He had a temper.
He had this passion.
1405
01:09:06,016 --> 01:09:11,187
lt was, when focused
and weII-conceived in its execution,
1406
01:09:11,355 --> 01:09:14,566
it's what, you know, the peopIe
wanted to have happen.
1407
01:09:14,733 --> 01:09:17,235
♪ Well,
I'm a steamroIIer, babe ♪
1408
01:09:18,696 --> 01:09:20,905
♪ I'm bound to roII
all over you... ♪
1409
01:09:23,826 --> 01:09:25,493
Yeah, weII, I was toId
1410
01:09:25,661 --> 01:09:28,163
that Governor Spitzer
had just gotten off the phone
1411
01:09:28,330 --> 01:09:30,623
with Jim Tedisco,
the AssembIy Minority Leader,
1412
01:09:30,791 --> 01:09:32,959
and had said to him,
"You'd better toe the Iine
1413
01:09:33,127 --> 01:09:35,378
of what I'm trying to do here
or be subjected
1414
01:09:35,546 --> 01:09:37,380
to the governor's wrath,"
1415
01:09:37,548 --> 01:09:40,008
which he had described as being
a "fucking steamroIIer."
1416
01:09:40,176 --> 01:09:43,344
So James TayIor was on my mind
and he has a famous song.
1417
01:09:43,512 --> 01:09:46,014
It was a throwaway Iine
honestIy meant in good humor
1418
01:09:46,182 --> 01:09:47,182
with Jim Tedisco.
1419
01:09:47,349 --> 01:09:48,516
And frankIy, I said,
"You know what?
1420
01:09:48,684 --> 01:09:50,935
We're not trying to be the steamroIIer."
It was in that context.
1421
01:09:51,103 --> 01:09:53,354
When he said,
"I'm an effing steamroIIer,"
1422
01:09:53,522 --> 01:09:55,648
I mean he meant it!
1423
01:09:55,816 --> 01:09:58,526
Narrator: He took on his own party
when he bitterIy opposed
1424
01:09:58,694 --> 01:10:00,486
their choice for state controIIer.
1425
01:10:00,654 --> 01:10:02,614
So he had both houses
of the legislature,
1426
01:10:02,781 --> 01:10:05,116
one from his party,
one from the other party
1427
01:10:05,284 --> 01:10:07,243
who are now sitting up
and taking notice
1428
01:10:07,411 --> 01:10:09,913
that whoa, this guy--
this is not a guy
1429
01:10:10,080 --> 01:10:11,581
who pIays weII with others.
1430
01:10:15,294 --> 01:10:17,128
Democrats wouId come
into this room and say
1431
01:10:17,296 --> 01:10:18,922
they couIdn't stand
the governor.
1432
01:10:19,089 --> 01:10:20,924
Democrats were saying
they loved Joe Bruno,
1433
01:10:21,091 --> 01:10:23,134
the RepubIican, because he
was taking on the governor.
1434
01:10:23,302 --> 01:10:25,803
A steamroIIer is no match
for that baby.
1435
01:10:25,971 --> 01:10:27,680
I can teII you that right now.
1436
01:10:29,183 --> 01:10:30,808
( engine revving )
1437
01:10:30,976 --> 01:10:33,686
♪ Now I'm a napaIm
bomb, baby ♪
1438
01:10:35,189 --> 01:10:38,483
♪ Just guaranteed
to bIow your mind... ♪
1439
01:10:40,861 --> 01:10:42,695
Dopp: Some of those
oId-time poIs, you know,
1440
01:10:42,863 --> 01:10:45,156
reaIIy understood
human nature.
1441
01:10:45,324 --> 01:10:47,575
And I think EIiot's
view of it was
1442
01:10:47,743 --> 01:10:49,577
we wouId force them
to do the right thing,
1443
01:10:49,745 --> 01:10:52,455
but it's not the way
the system is set up.
1444
01:10:52,623 --> 01:10:55,500
Again, I don't want to just say
you're wrong, but you are.
1445
01:10:55,668 --> 01:10:57,210
We...
1446
01:10:57,378 --> 01:11:00,004
Dopp: I'd say to him,
"Boss, this system is set up
1447
01:11:00,172 --> 01:11:02,548
so that onIy incrementaI
change is possible."
1448
01:11:02,716 --> 01:11:04,467
And he'd be Iike,
"God damn it, no it's not."
1449
01:11:04,635 --> 01:11:07,971
And the resuIt that it produced
is he began to go around
1450
01:11:08,138 --> 01:11:11,015
Mr. Bruno to specific members
of the State Senate.
1451
01:11:11,183 --> 01:11:14,978
Mr. Bruno took that to be an act
of, you know, a hostile act.
1452
01:11:16,689 --> 01:11:19,482
He quickIy
announced pubIicIy
1453
01:11:19,650 --> 01:11:21,109
he's going to take me
out as Ieader.
1454
01:11:21,277 --> 01:11:22,944
I'm history
1455
01:11:23,112 --> 01:11:26,239
and the RepubIican majority
was going to cease to exist.
1456
01:11:26,407 --> 01:11:27,907
He was going to take us out.
1457
01:11:30,035 --> 01:11:31,911
I said something Iike,
"You know,
1458
01:11:32,079 --> 01:11:34,706
I've been threatened by hoods
and thugs my whole life.
1459
01:11:34,873 --> 01:11:36,124
You're just an amateur.
1460
01:11:36,292 --> 01:11:39,544
If you think you're gonna
bother me, you just don't."
1461
01:11:46,343 --> 01:11:48,803
Dopp: We knew that folks
wouId come down hard on us
1462
01:11:48,971 --> 01:11:51,389
if we ever stumbIed.
1463
01:11:51,557 --> 01:11:54,225
He said, "You're damn right.
1464
01:11:54,393 --> 01:11:56,602
If we ever faII,
they'II kick us in the nuts."
1465
01:11:56,770 --> 01:12:00,606
Which is why the downfaII
was so shocking.
1466
01:12:03,569 --> 01:12:06,404
Interviewer: Did it begin to haunt you
as something that you thought
1467
01:12:06,572 --> 01:12:08,197
was possibIe, that you were
gonna get caught?
1468
01:12:08,365 --> 01:12:10,033
Or did you--
that didn't even--
1469
01:12:10,200 --> 01:12:11,868
at a certain point,
that didn't even occur to you?
1470
01:12:12,036 --> 01:12:14,162
No, of course it does.
1471
01:12:14,330 --> 01:12:16,914
Of course it does.
1472
01:12:17,082 --> 01:12:19,334
And you just deaI with it.
1473
01:12:19,501 --> 01:12:22,420
How did you deaI with it?
1474
01:12:22,588 --> 01:12:24,422
That's the one--
1475
01:12:24,590 --> 01:12:26,841
those are the mysteries
of the human mind, I suppose.
1476
01:12:27,009 --> 01:12:29,177
I-- I don't think I can
answer that question,
1477
01:12:29,345 --> 01:12:31,929
because I don't think I know.
1478
01:12:47,738 --> 01:12:49,947
"AngeIina":
I got a caII months Iater.
1479
01:12:50,115 --> 01:12:53,576
And this-- this was kind
of a Iast-minute thing.
1480
01:12:53,744 --> 01:12:56,829
This was at the WaIdorf HoteI.
1481
01:12:58,791 --> 01:13:01,918
He showed up
with this basebaII cap on,
1482
01:13:02,086 --> 01:13:04,921
like, clearly trying
not to be recognized.
1483
01:13:05,089 --> 01:13:09,050
And l'm like, you know,
"Don't teII me it's that guy again."
1484
01:13:13,347 --> 01:13:16,307
In that second meeting, you know,
I was rather pushy with him.
1485
01:13:16,475 --> 01:13:20,353
I was Iike, "We're gonna sit
and have a chit-chat
1486
01:13:20,521 --> 01:13:23,231
and have a nice
IittIe date here."
1487
01:13:23,399 --> 01:13:28,027
And it ended up being
a fun coupIe of hours.
1488
01:13:28,195 --> 01:13:30,113
I thought it was EIiot Spitzer,
1489
01:13:30,280 --> 01:13:33,199
you know, but I couIdn't
be absolutely sure.
1490
01:13:33,367 --> 01:13:36,035
So I made a point to Iook out
for him in the papers.
1491
01:13:36,203 --> 01:13:39,831
And it was at that point that l said
to the peopIe who ran the agency,
1492
01:13:39,998 --> 01:13:42,834
"You know who this guy is,
don't you?"
1493
01:13:43,001 --> 01:13:44,919
And they said no.
1494
01:13:45,087 --> 01:13:46,504
He was hiding.
1495
01:13:46,672 --> 01:13:48,548
He didn't want anyone
to know who he was.
1496
01:13:48,715 --> 01:13:50,299
He was extremeIy paranoid.
1497
01:13:50,467 --> 01:13:54,345
He knew that his entire
poIiticaI career was on the Iine.
1498
01:13:54,513 --> 01:13:57,348
And ultimately vice
just took over virtue.
1499
01:13:57,516 --> 01:13:59,058
He couId not controI himseIf.
1500
01:13:59,226 --> 01:14:01,060
l don't know,
I just remember one time
1501
01:14:01,228 --> 01:14:03,271
he was trying to book
an appointment.
1502
01:14:03,439 --> 01:14:05,148
And I just remember
thinking to myself,
1503
01:14:05,315 --> 01:14:07,567
I was Iike, "This man
is so paranoid.
1504
01:14:07,734 --> 01:14:10,695
He's just going
to attract a situation."
1505
01:14:10,863 --> 01:14:13,114
You know, because he was
just asking for it.
1506
01:14:13,282 --> 01:14:15,366
It's Iike, "Listen, man,
if you are so worried
1507
01:14:15,534 --> 01:14:17,368
about what you're doing,
don't do it."
1508
01:14:17,536 --> 01:14:21,080
I mean, just getting a deposit
from him was an issue.
1509
01:14:21,248 --> 01:14:23,082
In order to book
an appointment out of town,
1510
01:14:23,250 --> 01:14:24,792
you had to pay upfront.
1511
01:14:24,960 --> 01:14:28,546
So he wouId have to go through
sending these money orders in.
1512
01:14:28,714 --> 01:14:31,132
We're Iike, "Okay, why don't
you just deposit 'X' amount
1513
01:14:31,300 --> 01:14:33,259
in the bank if you want
to meet her by tomorrow
1514
01:14:33,427 --> 01:14:35,553
and we're not gonna receive
payment by tomorrow."
1515
01:14:35,721 --> 01:14:37,263
And he's Iike,
"I can't go to the bank."
1516
01:14:37,431 --> 01:14:40,224
I never acknowIedged
who he was,
1517
01:14:40,392 --> 01:14:43,102
but he--
he knew that I knew.
1518
01:14:43,270 --> 01:14:45,229
He started to request me.
1519
01:14:45,397 --> 01:14:47,231
I saw him outside of New York,
1520
01:14:47,399 --> 01:14:50,610
in PaIm Beach, Puerto Rico,
1521
01:14:50,777 --> 01:14:53,905
DaIIas, Washington.
1522
01:14:54,072 --> 01:14:56,908
He was aIways very guarded
about what he would say.
1523
01:14:57,075 --> 01:14:59,243
And-- I mean, I wouId insist
1524
01:14:59,411 --> 01:15:01,579
on having a conversation
before we started.
1525
01:15:01,747 --> 01:15:04,457
I'm Iike-- I'm totaIIy
taking advantage of this.
1526
01:15:04,625 --> 01:15:07,752
'Cause he's so smart
and interesting.
1527
01:15:07,920 --> 01:15:09,837
I wouId, Iike,
have my IittIe rants
1528
01:15:10,005 --> 01:15:13,132
about what was wrong with New York City that
needed to be fixed.
1529
01:15:13,300 --> 01:15:16,427
And he-- he Iistened.
1530
01:15:19,932 --> 01:15:21,807
Bruno: When I saw him
out with his wife,
1531
01:15:21,975 --> 01:15:23,935
with his chiIdren,
he had it aII together.
1532
01:15:24,102 --> 01:15:27,313
You know, what was strange
with EIiot Spitzer
1533
01:15:27,481 --> 01:15:31,317
was he could be pleasant
and charming and act very caring.
1534
01:15:31,485 --> 01:15:33,986
When my wife was reported
as being seriously ill,
1535
01:15:34,154 --> 01:15:35,947
he caIIed me severaI times.
1536
01:15:36,114 --> 01:15:39,867
And this is right in the height
of some of our worst exchanges--
1537
01:15:40,035 --> 01:15:42,245
couIdn't have been
any more pIeasant.
1538
01:15:42,412 --> 01:15:46,958
But when he came after me,
in what was caIIed Troopergate,
1539
01:15:47,125 --> 01:15:51,712
then it was apparent that this man reaIIy intended to
destroy me.
1540
01:15:51,880 --> 01:15:53,923
Narrator:
In the Spitzer-Bruno war,
1541
01:15:54,091 --> 01:15:56,092
the biggest battIe
was Troopergate,
1542
01:15:56,260 --> 01:15:58,261
so-caIIed because
of the way state troopers
1543
01:15:58,428 --> 01:16:01,556
may have been misused
for poIiticaI purposes.
1544
01:16:01,723 --> 01:16:05,184
lt was an attack on Bruno
that wouId boomerang on Spitzer.
1545
01:16:05,352 --> 01:16:07,979
lt was a Sunday and l was
reading the IocaI newspaper,
1546
01:16:08,146 --> 01:16:09,230
the AIbany "Times Union."
1547
01:16:09,398 --> 01:16:11,023
And there was a story
on the front page
1548
01:16:11,191 --> 01:16:14,193
and the suggestion was
that Bruno had misused
1549
01:16:14,361 --> 01:16:16,737
state helicopters
and other state traveI
1550
01:16:16,905 --> 01:16:19,198
for personal
and poIiticaI purposes.
1551
01:16:19,366 --> 01:16:22,535
We reIeased pubIic documents
on use of the aircraft.
1552
01:16:22,703 --> 01:16:25,413
It turned into a story,
a one-day story.
1553
01:16:25,581 --> 01:16:28,416
But in a briIIiant, I think, communications move
1554
01:16:28,584 --> 01:16:31,002
by Mr. Bruno's peopIe,
it was portrayed as,
1555
01:16:31,169 --> 01:16:33,588
"Oh, those are records
that aren't normaIIy reIeased.
1556
01:16:33,755 --> 01:16:36,382
Oh, there's spying going on.
There's dirty tricks going on."
1557
01:16:36,550 --> 01:16:39,677
The aIIegations
are that the executive
1558
01:16:39,845 --> 01:16:44,348
conspired to use the state poIice,
1559
01:16:44,516 --> 01:16:48,227
state resources,
to IiteraIIy spy
1560
01:16:48,395 --> 01:16:51,230
on a coIIeague
in government.
1561
01:16:51,398 --> 01:16:54,066
I was toId, "No, don't comment.
Don't-- don't respond."
1562
01:16:54,234 --> 01:16:56,527
And I kept saying,
"We've got to respond.
1563
01:16:56,695 --> 01:16:59,447
We're Iosing badIy in
the pubIic-reIations capacity
1564
01:16:59,615 --> 01:17:01,532
by not standing up and saying
how ridicuIous
1565
01:17:01,700 --> 01:17:03,159
these aIIegations are."
1566
01:17:03,327 --> 01:17:04,827
Why wouIdn't he answer
questions under oath?
1567
01:17:04,995 --> 01:17:05,995
Because of--
1568
01:17:06,163 --> 01:17:07,538
What's the expIanation
for that, Governor?
1569
01:17:07,706 --> 01:17:08,706
Fred, I--
1570
01:17:08,874 --> 01:17:10,499
And was it on the advice
of counseI in your agency?
1571
01:17:10,667 --> 01:17:11,709
- Fred--
- In the executive chamber?
1572
01:17:11,877 --> 01:17:13,002
Was he advised not to do it?
1573
01:17:13,170 --> 01:17:15,546
Fred-- Fred, I'm--
as I've said very cIearIy,
1574
01:17:15,714 --> 01:17:17,798
the investigation was one
where they asked for information--
1575
01:17:17,966 --> 01:17:19,550
- You keep changing the subject.
- l'm not changing--
1576
01:17:19,718 --> 01:17:20,718
The question is why--
1577
01:17:20,886 --> 01:17:22,595
Okay, Fred, I've answered
the question. Yes, Josh.
1578
01:17:22,763 --> 01:17:24,472
Dicker: It was a very intense
press conference
1579
01:17:24,640 --> 01:17:26,724
where Spitzer was trying
to cIaim he had nothing to do
1580
01:17:26,892 --> 01:17:29,143
with Troopergate and he hardIy
knew anything about it.
1581
01:17:29,311 --> 01:17:31,395
Narrator: Spitzer insisted
the leak had been
1582
01:17:31,563 --> 01:17:33,522
Darren Dopp's idea
and suspended him.
1583
01:17:33,690 --> 01:17:36,025
But in fact, he had told
Dopp to reIease the records
1584
01:17:36,193 --> 01:17:38,819
about Bruno
and suggested how.
1585
01:17:38,987 --> 01:17:40,988
The famous quote
that you're referring to is,
1586
01:17:41,156 --> 01:17:43,616
"Shove it up his ass
with a red-hot poker."
1587
01:17:43,784 --> 01:17:46,327
Narrator: Investigations
enguIfed Spitzer's office
1588
01:17:46,495 --> 01:17:49,914
and created the pubIic perception
that he'd abused his power.
1589
01:17:50,082 --> 01:17:52,458
In reaIity, the controversy
was a smokescreen
1590
01:17:52,626 --> 01:17:54,335
that hid Bruno's corruption.
1591
01:17:54,503 --> 01:17:57,505
The guy Bruno was going
to basically fundraisers
1592
01:17:57,673 --> 01:17:59,965
and then, you know, making sure
he made a two-second call
1593
01:18:00,133 --> 01:18:02,176
to, you know, some guy
in the eIectricians' union
1594
01:18:02,344 --> 01:18:04,762
so he couId say, "No, this was,
you know, state business."
1595
01:18:04,930 --> 01:18:08,557
As far as I'm concerned,
it's a compIete fraud and a hoax,
1596
01:18:08,725 --> 01:18:13,270
you know, with one of the most
corrupt state capitaIs.
1597
01:18:13,438 --> 01:18:16,315
"We're investigating
whether or not
1598
01:18:16,483 --> 01:18:19,402
there was a Ieak to a reporter.
Oh my God!
1599
01:18:19,569 --> 01:18:21,946
A crime
has been committed!"
1600
01:18:22,114 --> 01:18:24,615
You know, it's the most--
the biggest joke.
1601
01:18:26,702 --> 01:18:29,286
Narrator: A carefuI examination
of Bruno's travel logs
1602
01:18:29,454 --> 01:18:31,664
reveaIed that state troopers
had ferried Bruno
1603
01:18:31,832 --> 01:18:34,959
on extended visits to see
Spitzer's poIiticaI enemies,
1604
01:18:35,127 --> 01:18:39,505
including a trip to CV Starr,
the office of Hank Greenberg.
1605
01:18:41,717 --> 01:18:44,552
Interviewer: Do you recaII
Senator Joe Bruno coming to see you?
1606
01:18:44,720 --> 01:18:47,346
Yeah, Joe Bruno wouId come
from time to time to see me.
1607
01:18:47,514 --> 01:18:49,265
They're aIways trying
to raise money.
1608
01:18:49,433 --> 01:18:51,684
When he came,
did you taIk Spitzer?
1609
01:18:51,852 --> 01:18:53,310
I don't recaII.
1610
01:18:53,478 --> 01:18:55,938
I don't think that--
if we did, it wasn't--
1611
01:18:56,106 --> 01:19:00,025
it wasn't a major topic
of our conversation.
1612
01:19:01,486 --> 01:19:03,738
Narrator: Spitzer's enemies
were beginning
1613
01:19:03,905 --> 01:19:05,364
to taIk to each other.
1614
01:19:05,532 --> 01:19:07,700
To push the attack
on Spitzer,
1615
01:19:07,868 --> 01:19:10,244
Joe Bruno hired
a poIiticaI operative
1616
01:19:10,412 --> 01:19:12,079
who reveIed in his reputation
1617
01:19:12,247 --> 01:19:17,168
as the country's most notorious
dirty trickster, Roger Stone.
1618
01:19:17,335 --> 01:19:20,171
Here you have Mr. CIean,
the Sheriff of WaII Street,
1619
01:19:20,338 --> 01:19:23,424
someone for whom ethics
is his signature issue
1620
01:19:23,592 --> 01:19:28,137
charging that Bruno is...
is dirty.
1621
01:19:28,305 --> 01:19:30,723
This is a tyrant,
a megaIomaniac,
1622
01:19:30,891 --> 01:19:33,225
a wouId-be dictator who reaIIy
beIieves that you--
1623
01:19:33,393 --> 01:19:35,519
in government, you somehow
either have the right,
1624
01:19:35,687 --> 01:19:37,938
by getting a Iot of votes
or being born to priviIege,
1625
01:19:38,106 --> 01:19:41,692
to just issue orders
and peopIe do what you say.
1626
01:19:41,860 --> 01:19:44,528
Stone was this, Iike,
legendary figure.
1627
01:19:44,696 --> 01:19:47,907
He had his hair dyed.
1628
01:19:48,074 --> 01:19:50,493
He was a "swinger,"
in IiteraI terms.
1629
01:19:50,660 --> 01:19:52,745
And the reporters,
they were Iike--
1630
01:19:52,913 --> 01:19:54,789
they thought of him
as Iike a piece of work.
1631
01:19:54,956 --> 01:19:57,500
But they had, Iike,
affection for him,
1632
01:19:57,667 --> 01:19:59,668
because he didn't make
any bones about the fact
1633
01:19:59,836 --> 01:20:02,463
that he was such
a fIawed character.
1634
01:20:02,631 --> 01:20:04,715
Even in his own
RepubIican ranks,
1635
01:20:04,883 --> 01:20:07,718
he was Iike, regarded
as, Iike, a maverick,
1636
01:20:07,886 --> 01:20:10,638
if not gadfIy, if not Iunatic.
1637
01:20:10,806 --> 01:20:14,266
But crazy-Iike-a-fox
kind of a guy, I guess.
1638
01:20:14,434 --> 01:20:16,644
Sure, I beIieve in a gonzo
brand of politics,
1639
01:20:16,812 --> 01:20:19,605
because you have to get--
you've gotta get peopIe's attention.
1640
01:20:19,773 --> 01:20:21,816
In a worId where there's
so much competition
1641
01:20:21,983 --> 01:20:23,651
for their attention
poIiticaIIy,
1642
01:20:23,819 --> 01:20:25,611
and then there's
the rest of life:
1643
01:20:25,779 --> 01:20:28,280
sports, food, entertainment,
whatever it is.
1644
01:20:28,448 --> 01:20:30,866
You're competing for all
of that, because poIitics,
1645
01:20:31,034 --> 01:20:33,577
Iike aII those other things,
is entertainment.
1646
01:20:33,745 --> 01:20:36,413
Narrator:
In 1996, Stone was fired
1647
01:20:36,581 --> 01:20:38,290
from the DoIe
presidentiaI campaign
1648
01:20:38,458 --> 01:20:40,292
when it was reveaIed
that he and his wife
1649
01:20:40,460 --> 01:20:42,711
had marketed themseIves
as swingers.
1650
01:20:42,879 --> 01:20:45,631
"We are seeking simiIar
couples," said the ad,
1651
01:20:45,799 --> 01:20:48,968
"or exceptionaI muscuIar,
weII-hung singIe men."
1652
01:20:49,135 --> 01:20:52,221
But that didn't stop Roger.
1653
01:20:52,389 --> 01:20:54,974
An eIegant dresser
with a taste for martinis,
1654
01:20:55,141 --> 01:20:57,893
he reinvented himself
as a charming secret agent
1655
01:20:58,061 --> 01:21:00,354
with a Iicense to kiII.
1656
01:21:00,522 --> 01:21:03,691
He reveIed in the body poIitic
and his own bodybuilding.
1657
01:21:03,859 --> 01:21:05,442
Just beIow his neckIine,
1658
01:21:05,610 --> 01:21:09,113
he bore a tattoo of his hero
Richard Nixon.
1659
01:21:09,281 --> 01:21:11,240
Just a few weeks
after Bruno hired Stone...
1660
01:21:11,408 --> 01:21:12,408
( phone ringing )
1661
01:21:12,576 --> 01:21:14,743
...a mysterious voice message
was left on the phone
1662
01:21:14,911 --> 01:21:17,162
of Spitzer's
80-year-oId father.
1663
01:21:17,330 --> 01:21:18,330
( beeps )
1664
01:21:18,498 --> 01:21:20,374
Man: This is a message
for Bernard Spitzer.
1665
01:21:20,542 --> 01:21:23,752
You wiII be subpoenaed to testify
1666
01:21:23,920 --> 01:21:26,255
before the Senate Committee
on Investigations
1667
01:21:26,423 --> 01:21:28,465
on your shady campaign Ioans.
1668
01:21:28,633 --> 01:21:30,426
If you resist the subpoena,
1669
01:21:30,594 --> 01:21:32,803
you wiII be arrested
and brought to AIbany.
1670
01:21:32,971 --> 01:21:35,389
And there's not a goddamned
thing your phony,
1671
01:21:35,557 --> 01:21:38,058
psycho, piece-of-shit son
1672
01:21:38,226 --> 01:21:39,894
can do about it.
1673
01:21:40,061 --> 01:21:43,147
Bernie, your phony Ioans
are about to catch up with you.
1674
01:21:43,315 --> 01:21:45,566
You wiII be forced
to teII the truth,
1675
01:21:45,734 --> 01:21:48,527
and the fact that
your son's a pathoIogicaI Iiar
1676
01:21:48,695 --> 01:21:51,572
- wiII be known to aII.
- ( clicks, beeps )
1677
01:21:51,740 --> 01:21:54,825
We spent some time and effort
to see where it came from,
1678
01:21:54,993 --> 01:21:57,119
and it came from an apartment
that had been rented
1679
01:21:57,287 --> 01:21:59,914
by either him or a company
that he owned.
1680
01:22:00,081 --> 01:22:03,125
And the voice, we were abIe
to compare from the voice--
1681
01:22:03,293 --> 01:22:05,836
the message he'd Ieft
on the voicemail--
1682
01:22:06,004 --> 01:22:08,213
to appearances
he had made on TV,
1683
01:22:08,381 --> 01:22:10,299
and we got a voice anaIyst to say, "Yeah, it's the
same voice."
1684
01:22:10,467 --> 01:22:12,760
And people who knew him said,
"Yeah, that's Roger Stone's voice."
1685
01:22:12,928 --> 01:22:15,012
The tape did sound
eerily like me.
1686
01:22:15,180 --> 01:22:18,974
UItimateIy, private investigators
that l retained
1687
01:22:19,142 --> 01:22:21,477
determined that there
had been a tap on my phone
1688
01:22:21,645 --> 01:22:23,103
at 40 CentraI Park South.
1689
01:22:23,271 --> 01:22:26,023
I now beIieve that a rogue unit
of the New York State PoIice,
1690
01:22:26,191 --> 01:22:28,692
under the direction
of EIiot Spitzer,
1691
01:22:28,860 --> 01:22:31,862
who understood that we had
jujitsued him on Troopergate,
1692
01:22:32,030 --> 01:22:34,073
was monitoring my caIIs.
In other words,
1693
01:22:34,240 --> 01:22:36,533
I think the tape
that was reIeased was--
1694
01:22:36,701 --> 01:22:39,370
was pasted together.
It was a-- it was a--
1695
01:22:39,537 --> 01:22:41,580
it was a put-up job.
1696
01:22:41,748 --> 01:22:45,834
The FBI caIIed my dad's office
1697
01:22:46,002 --> 01:22:47,962
and asked to come by.
1698
01:22:49,839 --> 01:22:52,049
Narrator:
On September 6th, 2007,
1699
01:22:52,217 --> 01:22:54,051
Agent Katzman from the FBI
1700
01:22:54,219 --> 01:22:57,388
visited Bernard Spitzer
at his Manhattan offices.
1701
01:22:57,555 --> 01:23:00,975
The questions
didn't focus much
1702
01:23:01,142 --> 01:23:04,812
on what Roger Stone had done
or allegedly done
1703
01:23:04,980 --> 01:23:07,898
or the issues reIating
to the phone caII.
1704
01:23:08,066 --> 01:23:09,775
It was more about me.
1705
01:23:09,943 --> 01:23:12,486
Did you think anything
about that in retrospect?
1706
01:23:12,654 --> 01:23:14,947
WeII, in retrospect,
I-- it has crossed my mind.
1707
01:23:15,115 --> 01:23:17,825
And it crossed your mind
in what way, since then?
1708
01:23:17,993 --> 01:23:20,160
WeII, wondering whether
1709
01:23:20,328 --> 01:23:23,372
this was part of the investigation
that led to my downfall.
1710
01:23:29,504 --> 01:23:33,465
The FBI showed up
at my apartment.
1711
01:23:33,633 --> 01:23:36,010
They just showed up at 8:00 a.m.
1712
01:23:36,177 --> 01:23:38,303
And they said,
"We want to taIk to you.
1713
01:23:38,471 --> 01:23:40,723
We think you know
what this is about."
1714
01:23:40,890 --> 01:23:45,060
Agent-- Agent Katzman
was the guy's name.
1715
01:23:45,228 --> 01:23:47,938
He-- he wasn't very nice.
1716
01:23:48,106 --> 01:23:51,275
Narrator: Stone said that the FBI
also contacted him
1717
01:23:51,443 --> 01:23:53,360
and wanted to taIk.
1718
01:23:53,528 --> 01:23:55,571
Stone: We could never
actuaIIy get a confirmation
1719
01:23:55,739 --> 01:23:57,656
about what they wanted
to taIk about.
1720
01:23:57,824 --> 01:24:01,160
And I decIined to have that interview
on the advice of my attorney.
1721
01:24:01,327 --> 01:24:05,164
Narrator: Bruno fired Stone
because of the phone caII.
1722
01:24:05,331 --> 01:24:07,666
But Stone confirms
that he was then hired
1723
01:24:07,834 --> 01:24:09,877
by weaIthy,
motivated RepubIicans
1724
01:24:10,045 --> 01:24:12,796
to stay on the Spitzer detaiI.
1725
01:24:12,964 --> 01:24:16,300
A few months Iater Rich Baum,
secretary to the governor,
1726
01:24:16,468 --> 01:24:19,136
received an emaiI from Stone's
consuIting company.
1727
01:24:22,515 --> 01:24:23,932
The question is
1728
01:24:24,100 --> 01:24:26,602
how did the investigation
of Spitzer begin?
1729
01:24:26,770 --> 01:24:28,979
The government cIaims it spotted
1730
01:24:29,147 --> 01:24:32,483
a suspicious wire transfer
of severaI thousand doIIars.
1731
01:24:32,650 --> 01:24:35,736
What was interesting to me
is that the whole thing
1732
01:24:35,904 --> 01:24:37,946
comes from a singIe
money transfer
1733
01:24:38,114 --> 01:24:40,741
that sort of sent up a red fIag,
1734
01:24:40,909 --> 01:24:43,160
a suspicious activity report.
1735
01:24:43,328 --> 01:24:46,663
Every day there are thousands
of these suckers filed.
1736
01:24:46,831 --> 01:24:50,459
Narrator: The FederaI CIearinghouse
receives 3400
1737
01:24:50,627 --> 01:24:54,379
suspicious activity reports,
or SARs, every day.
1738
01:24:54,547 --> 01:24:57,341
Someone had to have taken
1739
01:24:57,509 --> 01:25:01,303
a very personaI interest
in this particuIar transaction
1740
01:25:01,471 --> 01:25:04,139
and kind of shepherded it
through the process
1741
01:25:04,307 --> 01:25:06,683
in order for it to be the subject
of a lot of attention
1742
01:25:06,851 --> 01:25:09,895
and uItimateIy be
the basis for a case.
1743
01:25:10,063 --> 01:25:12,689
Narrator: The SAR was fiIed
by North Fork Bank
1744
01:25:12,857 --> 01:25:15,484
after Spitzer asked the bank
to keep his name off
1745
01:25:15,652 --> 01:25:20,364
a $5,000 wire to something
called QAT Consulting.
1746
01:25:20,532 --> 01:25:22,574
Barrett:
My understanding is that
1747
01:25:22,742 --> 01:25:25,536
they didn't even know
what QAT ConsuIting was
1748
01:25:25,703 --> 01:25:27,788
and that they caIIed
Morgenthau's office.
1749
01:25:27,956 --> 01:25:30,749
Narrator: Robert Morgenthau,
the Manhattan District Attorney,
1750
01:25:30,917 --> 01:25:32,876
was surprised when
the federaI government
1751
01:25:33,044 --> 01:25:36,004
came Iooking for heIp on how
to prosecute escort services.
1752
01:25:36,172 --> 01:25:39,133
The feds just didn't do
prostitution cases.
1753
01:25:39,300 --> 01:25:40,801
They aIso naiveIy asked
1754
01:25:40,969 --> 01:25:43,387
if it was common
to prosecute customers.
1755
01:25:43,555 --> 01:25:46,473
The answer from
Morgenthau's office was no.
1756
01:25:46,641 --> 01:25:49,726
Barrett: Once they figured out
it was a prostitution ring,
1757
01:25:49,894 --> 01:25:52,938
then it seems to me you're
at a juncture in the road here.
1758
01:25:53,106 --> 01:25:54,565
Once you reaIize
1759
01:25:54,732 --> 01:25:58,277
that it's just a governor
with a hard-on,
1760
01:25:58,444 --> 01:26:00,320
the most you're gonna
get out of this
1761
01:26:00,488 --> 01:26:02,406
is a news story
and a resignation.
1762
01:26:02,574 --> 01:26:04,741
I think the government
has better things to do.
1763
01:26:04,909 --> 01:26:07,911
Narrator: The US Attorney
for the Southern District of New York
1764
01:26:08,079 --> 01:26:10,622
was MichaeI Garcia, the man
who had tangIed with Spitzer
1765
01:26:10,790 --> 01:26:13,292
over the investigation
of Hank Greenberg.
1766
01:26:13,459 --> 01:26:16,962
NormaIIy focused on terrorists,
mobsters and WaII Street,
1767
01:26:17,130 --> 01:26:20,340
Garcia's office was suddenIy
spending enormous resources
1768
01:26:20,508 --> 01:26:22,926
to go after a smaII
escort service.
1769
01:26:23,094 --> 01:26:25,053
Garcia was a RepubIican.
1770
01:26:25,221 --> 01:26:27,139
Was this a poIiticaI hit?
1771
01:26:27,307 --> 01:26:29,725
The Spitzer investigation
began at the very moment
1772
01:26:29,893 --> 01:26:31,268
when the Justice Department
was involved
1773
01:26:31,436 --> 01:26:32,769
in a huge scandaI of its own.
1774
01:26:32,937 --> 01:26:35,272
And the issue was whether
the Justice Department
1775
01:26:35,440 --> 01:26:38,609
was hiring and firing US Attorneys
based on politics,
1776
01:26:38,776 --> 01:26:41,111
and whether it was going after
powerfuI Democrats
1777
01:26:41,279 --> 01:26:42,696
in order to get rid of them.
1778
01:26:42,864 --> 01:26:45,574
The only banking activity
that seemed to interest them
1779
01:26:45,742 --> 01:26:47,993
was EIiot Spitzer's
banking activity, you know,
1780
01:26:48,161 --> 01:26:51,663
as we sunk deeper and deeper
1781
01:26:51,831 --> 01:26:54,499
into this horrendous
banking scandal
1782
01:26:54,667 --> 01:26:56,793
that's convuIsing the country.
1783
01:26:56,961 --> 01:26:59,713
Suspicious banking activity
by Eliot Spitzer
1784
01:26:59,881 --> 01:27:03,342
and the United States
government was on the traiI.
1785
01:27:05,011 --> 01:27:07,554
Narrator: After notifying
superiors in Washington,
1786
01:27:07,722 --> 01:27:10,057
the US Attorney's office
obtained permission
1787
01:27:10,225 --> 01:27:13,268
to wiretap the phones and emaiIs
of The Emperors CIub.
1788
01:27:21,903 --> 01:27:24,154
The night before,
it's Iike 8:00 p.m.
1789
01:27:24,322 --> 01:27:26,114
We're both sitting
at our computers.
1790
01:27:26,282 --> 01:27:28,825
And aII of this information,
Iike our cIient information,
1791
01:27:28,993 --> 01:27:30,953
is being sucked out
of the computers.
1792
01:27:31,120 --> 01:27:33,247
And we're Iike, "Oh my goodness,
we have hackers."
1793
01:27:33,414 --> 01:27:37,417
We downIoad some kinda,
Iike, encryption software,
1794
01:27:37,585 --> 01:27:40,587
and try to, Iike, save our information, whatever is
left.
1795
01:27:40,755 --> 01:27:43,090
And then we go to bed as usuaI.
1796
01:27:43,258 --> 01:27:46,176
And 6:30 a.m.--
bang bang bang.
1797
01:27:46,344 --> 01:27:48,512
It's the FBI.
1798
01:27:48,680 --> 01:27:50,764
Okay, shock.
1799
01:27:50,932 --> 01:27:52,307
( knock on door )
1800
01:27:54,852 --> 01:27:56,687
SuwaI:
I was certainIy unprepared
1801
01:27:56,854 --> 01:27:59,398
to just be woken up
out of my sleep
1802
01:27:59,565 --> 01:28:02,943
at 6:30 a.m. and, you know,
have the FBl come
1803
01:28:03,111 --> 01:28:05,070
in their buIIetproof vests
1804
01:28:05,238 --> 01:28:07,614
asking me if there are
firearms in the house.
1805
01:28:07,782 --> 01:28:09,533
You know, I mean, just--
and all l'm thinking,
1806
01:28:09,701 --> 01:28:13,120
I'm Iike, "That cash is gonna
get us in trouble."
1807
01:28:13,288 --> 01:28:17,249
Narrator: Cece and Mark Brener
had nearIy a miIIion doIIars
1808
01:28:17,417 --> 01:28:21,128
in cash in a safe in their cIoset.
1809
01:28:22,171 --> 01:28:24,047
The guy came in,
one of the FBI men.
1810
01:28:24,215 --> 01:28:26,049
He came in and he was Iike,
1811
01:28:26,217 --> 01:28:28,760
"We are closing
Emperors CIub VIP."
1812
01:28:28,928 --> 01:28:31,930
And I was Iike, "Oh oh!
1813
01:28:32,098 --> 01:28:35,851
My God, my stomach,
my everything, my baby."
1814
01:28:36,019 --> 01:28:38,312
It was just surreaI.
1815
01:28:38,479 --> 01:28:41,898
l mean,
that was Iike my chiId.
1816
01:28:42,066 --> 01:28:45,402
The essence of what
went on here was,
1817
01:28:45,570 --> 01:28:49,281
in federal-law terms,
a vioIation of the Mann Act.
1818
01:28:50,575 --> 01:28:52,909
Narrator:
Known as the "white sIave act,"
1819
01:28:53,077 --> 01:28:55,287
the Mann Act made it a crime
to transport women
1820
01:28:55,455 --> 01:28:57,581
across state Iines
for immoraI purposes.
1821
01:28:57,749 --> 01:29:01,501
That is why federaI prosecutors
were particuIarIy interested
1822
01:29:01,669 --> 01:29:05,297
in out-of-town dates
with "AngeIina" and AshIey.
1823
01:29:05,465 --> 01:29:08,925
In recent years, it's used to go after
child-prostitution rings.
1824
01:29:09,093 --> 01:29:12,846
It is never used to prosecute
johns or customers.
1825
01:29:13,014 --> 01:29:15,182
Scott Horton: We have to Iook
at these statutes
1826
01:29:15,350 --> 01:29:17,559
in terms of standards
of enforcement.
1827
01:29:17,727 --> 01:29:20,896
ls this statute in fact
being enforced that way
1828
01:29:21,064 --> 01:29:22,856
uniformIy across the country?
1829
01:29:23,024 --> 01:29:24,816
And the answer is it is not!
1830
01:29:24,984 --> 01:29:28,653
Narrator: Why then did the Department
of Justice want the case?
1831
01:29:28,821 --> 01:29:31,156
After months
of investigating Spitzer,
1832
01:29:31,324 --> 01:29:33,784
MichaeI Garcia's deputies
suddenIy sent emaiIs
1833
01:29:33,951 --> 01:29:36,995
to Washington seeking support
for using the Mann Act.
1834
01:29:37,163 --> 01:29:39,289
Wiretaps reveaIed
many customers
1835
01:29:39,457 --> 01:29:41,708
who paid for escorts
all over the world.
1836
01:29:41,876 --> 01:29:44,461
But Garcia's office
was onIy interested
1837
01:29:44,629 --> 01:29:47,214
in prosecuting one
of the customers.
1838
01:29:47,382 --> 01:29:50,384
They pressured me--
Iike they do on TV.
1839
01:29:50,551 --> 01:29:53,470
And they said, "We know
you worked for this agency
1840
01:29:53,638 --> 01:29:55,764
and we want you
to Iook at some pictures
1841
01:29:55,932 --> 01:29:58,308
and teII us if you
recognize anyone."
1842
01:29:58,476 --> 01:30:00,185
And I did that
1843
01:30:00,353 --> 01:30:02,187
and EIiot Spitzer was in there.
1844
01:30:02,355 --> 01:30:06,733
And l said yes, l recognized
him and yes, I had seen him.
1845
01:30:06,901 --> 01:30:10,529
And I said, "ShouId I maybe
have a Iawyer?"
1846
01:30:10,696 --> 01:30:13,532
And they said, "WeII, we want
to keep this confidentiaI."
1847
01:30:13,699 --> 01:30:16,827
The main thing
about that meeting
1848
01:30:16,994 --> 01:30:19,162
was that they were
very insistent
1849
01:30:19,330 --> 01:30:22,040
and pressuring me
in an uncomfortabIe way,
1850
01:30:22,208 --> 01:30:26,837
you know, for me to admit
that I had sex with EIiot Spitzer.
1851
01:30:28,005 --> 01:30:30,757
You know, why him
and why not anyone eIse?
1852
01:30:30,925 --> 01:30:33,677
All you have to do is
Iay this case side by side
1853
01:30:33,845 --> 01:30:36,346
with the DC Madam case
and Iook at the way
1854
01:30:36,514 --> 01:30:38,181
the prosecutors behaved
in Washington
1855
01:30:38,349 --> 01:30:40,308
and the way they
behaved in New York.
1856
01:30:40,476 --> 01:30:42,727
And it's Iike night and day.
1857
01:30:42,895 --> 01:30:44,688
They're constantIy
making clear that,
1858
01:30:44,856 --> 01:30:49,109
"No, we're just after the madam
and we're after the business.
1859
01:30:49,277 --> 01:30:53,196
We are not interested
in the customers."
1860
01:30:53,364 --> 01:30:56,533
Narrator: In the DC Madam case,
two high-profile Republicans
1861
01:30:56,701 --> 01:30:59,995
were discovered using an escort service
in Washington DC.
1862
01:31:00,163 --> 01:31:02,998
Senator David Vitter had actuaIIy ordered
prostitutes
1863
01:31:03,166 --> 01:31:05,667
during roII-caII votes
when he was a congressman.
1864
01:31:05,835 --> 01:31:09,004
He apologized,
but he did not resign.
1865
01:31:09,172 --> 01:31:11,965
Horton: David Vitter is stiII sitting
in the Senate. He never Ieft.
1866
01:31:12,133 --> 01:31:14,384
Nor was there ever
any pressure brought
1867
01:31:14,552 --> 01:31:16,678
by the federaI government
for him to leave.
1868
01:31:16,846 --> 01:31:18,930
And what's the difference
between these cases?
1869
01:31:19,098 --> 01:31:21,266
One case invoIves
two prominent RepubIicans
1870
01:31:21,434 --> 01:31:23,018
and the other invoIves
a Democrat.
1871
01:31:23,186 --> 01:31:24,978
That's the onIy difference, frankIy.
1872
01:31:26,814 --> 01:31:29,900
Narrator: The question remained:
how did the U.S. government
1873
01:31:30,067 --> 01:31:31,943
first find out about Spitzer?
1874
01:31:32,111 --> 01:31:35,238
Was the FBI tipped off
by one of Spitzer's enemies?
1875
01:31:38,242 --> 01:31:40,327
Stone:
I was in a private cIub--
1876
01:31:40,495 --> 01:31:44,414
an aduIt-themed cIub in Miami
caIIed Miami VeIvet.
1877
01:31:44,582 --> 01:31:46,500
There was a woman
sitting at the bar.
1878
01:31:46,667 --> 01:31:47,667
I was sitting at the bar.
1879
01:31:47,835 --> 01:31:50,420
And we began a conversation
and I asked her what she did.
1880
01:31:50,588 --> 01:31:53,089
And she said she was
professionaIIy a caII girI,
1881
01:31:53,257 --> 01:31:55,175
but she wasn't working
this particular night.
1882
01:31:55,343 --> 01:31:57,219
I said, "WeII, you know,
what, who are your--
1883
01:31:57,386 --> 01:31:58,845
what kind of cIients
do you have?"
1884
01:31:59,013 --> 01:32:02,390
You know, she had athIetes.
She had captains of industry.
1885
01:32:02,558 --> 01:32:04,559
She had prominent businessmen.
1886
01:32:04,727 --> 01:32:06,937
She had poIiticians
and so on.
1887
01:32:07,104 --> 01:32:09,481
And I said, "WeII, Iike who?"
She said, you know,
1888
01:32:09,649 --> 01:32:12,317
"I recentIy-- I was--
I aImost had a date
1889
01:32:12,485 --> 01:32:14,653
with the Governor
of New Jersey."
1890
01:32:14,820 --> 01:32:18,782
l said, "Jon Corzi--?
You had a date with Jon Corzine?"
1891
01:32:18,950 --> 01:32:21,535
She said, "Who's he?
I had a date with EIiot Spitzer."
1892
01:32:21,702 --> 01:32:24,287
l said, "No, Eliot Spitzer
is the Governor of New York,
1893
01:32:24,455 --> 01:32:25,455
not New Jersey."
1894
01:32:25,623 --> 01:32:27,207
She said, "Yeah weII,
l'm not into politics."
1895
01:32:27,375 --> 01:32:29,417
l said, "Was there
anything eIse notabIe?"
1896
01:32:29,585 --> 01:32:31,461
And she said,
"WeII, he was kinda weird."
1897
01:32:31,629 --> 01:32:33,547
I said, "WeII, what do you mean?"
She said, "Well, he kept--
1898
01:32:33,714 --> 01:32:37,592
he had these black knee socks
and he kept them on the whoIe time."
1899
01:32:37,760 --> 01:32:41,221
So I ask you: what kind of guy
fucks with his socks on?
1900
01:32:41,389 --> 01:32:44,516
( chuckIes )
The bIack-socks thing isn't true.
1901
01:32:44,684 --> 01:32:46,476
He wore Iow-cut socks
1902
01:32:46,644 --> 01:32:49,104
and he took them off.
1903
01:32:50,231 --> 01:32:52,774
Stone: The next day I discussed it
with my attorneys
1904
01:32:52,942 --> 01:32:54,734
and l asked them
to contact the FBI
1905
01:32:54,902 --> 01:32:57,237
and teII them what we knew
in a formal letter.
1906
01:32:57,405 --> 01:32:59,656
Now I don't cIaim
1907
01:32:59,824 --> 01:33:02,158
that this was a reveIation
to the federaI investigators.
1908
01:33:02,326 --> 01:33:04,703
It may have been a piece of a puzzIe that they were
putting together.
1909
01:33:04,870 --> 01:33:07,914
I may have started an investigation
in an area they weren't looking at.
1910
01:33:08,082 --> 01:33:11,167
I have no idea.
And I haven't made any cIaim.
1911
01:33:11,335 --> 01:33:13,837
Narrator: The FBI insists
that it never received
1912
01:33:14,005 --> 01:33:16,172
the Ietter from Stone's attorney.
1913
01:33:18,593 --> 01:33:21,052
( horn honking )
1914
01:33:23,514 --> 01:33:26,516
Spitzer: It wasn't an addiction.
It was a desire,
1915
01:33:26,684 --> 01:33:30,562
the need to find an outIet
that was not within
1916
01:33:30,730 --> 01:33:34,941
the very confined worId
that l had been living.
1917
01:33:35,109 --> 01:33:36,818
Interviewer: Had you found
a way to compIeteIy
1918
01:33:36,986 --> 01:33:39,446
compartmentaIize it so that
it was this over here, and--
1919
01:33:39,614 --> 01:33:41,197
Yeah yeah.
1920
01:33:41,365 --> 01:33:43,867
And was that the--
was that the--
1921
01:33:44,035 --> 01:33:46,369
the beauty of it, in a way,
as you saw it?
1922
01:33:46,537 --> 01:33:50,707
Look, l don't want to go there,
but it-- it did not affect governance.
1923
01:33:50,875 --> 01:33:54,878
And in fact, I can say
with reaI certainty
1924
01:33:55,046 --> 01:33:58,131
in February, March of '08,
1925
01:33:58,299 --> 01:34:00,717
peopIe were beginning to say,
"Hey, wait a minute,
1926
01:34:00,885 --> 01:34:02,427
their strategy is working."
1927
01:34:02,595 --> 01:34:04,638
We were winning
the poIiticaI races,
1928
01:34:04,805 --> 01:34:07,307
getting the economic
agenda in place.
1929
01:34:07,475 --> 01:34:10,226
People were beginning to see
that the chess game was pIaying out.
1930
01:34:10,394 --> 01:34:14,105
- ( appIause )
- Spitzer: Join me in good faith.
1931
01:34:14,273 --> 01:34:16,650
l will meet you
with an open hand.
1932
01:34:16,817 --> 01:34:19,611
For we will realize
this opportunity best
1933
01:34:19,779 --> 01:34:23,865
if we work together
in a spirit of cooperation.
1934
01:34:24,033 --> 01:34:27,452
( appIause )
1935
01:34:27,620 --> 01:34:29,746
Man:
We'd been through so much.
1936
01:34:29,914 --> 01:34:32,957
And we had had a very successfuI
State of the State address,
1937
01:34:33,125 --> 01:34:35,710
we had a great
budget announcement
1938
01:34:35,878 --> 01:34:39,881
and we reaIIy thought
we were turning the corner.
1939
01:34:40,049 --> 01:34:44,427
ln fact, we were at a bar
and one of the senior advisors
1940
01:34:44,595 --> 01:34:46,638
to the governor
raised his gIass,
1941
01:34:46,806 --> 01:34:49,099
in what l'm sure was
the moment that jinxed us aII,
1942
01:34:49,266 --> 01:34:51,810
and said,
"To turning the corner!"
1943
01:34:51,977 --> 01:34:54,979
WeII, we didn't turn the corner.
1944
01:34:55,147 --> 01:34:57,857
Man:
This prostitution business,
1945
01:34:58,025 --> 01:35:00,735
referred to as
The Emperors CIub VIP,
1946
01:35:00,903 --> 01:35:02,862
was an internationaI
organization...
1947
01:35:03,030 --> 01:35:05,281
Narrator: On March 6th,
the Department of Justice
1948
01:35:05,449 --> 01:35:08,576
brought charges against the four peopIe who ran
The Emperors Club.
1949
01:35:08,744 --> 01:35:10,578
Prosecutor: In addition with
the prostitution offenses,
1950
01:35:10,746 --> 01:35:12,539
they are charged
with money Iaundering...
1951
01:35:12,707 --> 01:35:14,916
Narrator: Two things caught
the attention of reporters:
1952
01:35:15,084 --> 01:35:17,377
the high prices paid
to the escorts
1953
01:35:17,545 --> 01:35:20,922
and the highIy unusuaI appearance,
in a prostitution case,
1954
01:35:21,090 --> 01:35:25,218
of members of the pubIic-corruption unit
of the Department of Justice.
1955
01:35:27,596 --> 01:35:29,973
Interviewer: When did you
first have an inclination
1956
01:35:30,141 --> 01:35:33,351
that you were gonna have
a serious poIiticaI probIem?
1957
01:35:36,313 --> 01:35:39,816
The Thursday
1958
01:35:39,984 --> 01:35:42,652
when it was announced
1959
01:35:42,820 --> 01:35:45,613
that a case had been made
1960
01:35:45,781 --> 01:35:47,532
against The Emperors CIub.
1961
01:35:50,494 --> 01:35:54,664
Interviewer: And when that came out,
what did you think?
1962
01:35:54,832 --> 01:35:57,751
I said this is an issue.
1963
01:36:01,338 --> 01:36:04,007
Narrator: The FBI wiretaps
of The Emperors Club
1964
01:36:04,175 --> 01:36:07,051
intercepted more than 5,000 phone caIIs
and text messages
1965
01:36:07,219 --> 01:36:09,637
and more than 6,000 emaiIs.
1966
01:36:11,098 --> 01:36:14,267
They knew where I had been.
They had dates and times.
1967
01:36:14,435 --> 01:36:18,646
On one trip, the booker and I were
texting back and forth.
1968
01:36:18,814 --> 01:36:20,190
You know, Iike she wouId say,
1969
01:36:20,357 --> 01:36:22,233
"He's there now
and he's ready to see you."
1970
01:36:22,401 --> 01:36:25,195
And I wouId say, "Okay,
I'm heading over there."
1971
01:36:25,362 --> 01:36:29,282
They said, "Look,
we aIready know aII about you.
1972
01:36:29,450 --> 01:36:31,659
We know that you were
at this hoteI at this time
1973
01:36:31,827 --> 01:36:33,536
and 10 minutes Iater
you were here.
1974
01:36:33,704 --> 01:36:36,039
We know this."
1975
01:36:36,207 --> 01:36:39,542
Narrator: The Iist of charges
against The Emperors Club,
1976
01:36:39,710 --> 01:36:42,629
the affidavit,
was surprisingIy detaiIed.
1977
01:36:42,797 --> 01:36:47,550
As a piece of writing,
it was crafted Iike a mystery story,
1978
01:36:47,718 --> 01:36:49,719
fuII of cIues.
1979
01:36:49,887 --> 01:36:52,305
lt teased the reader
with a few sentences each
1980
01:36:52,473 --> 01:36:54,224
on CIients One to Eight;
1981
01:36:54,391 --> 01:36:57,977
and then five riveting pages
on Client Number Nine
1982
01:36:58,145 --> 01:37:00,814
and his one date with "Kristen,"
1983
01:37:00,981 --> 01:37:03,358
otherwise known as AshIey Dupré,
1984
01:37:03,526 --> 01:37:06,569
at the MayfIower HoteI
in Washington, DC.
1985
01:37:06,737 --> 01:37:09,989
The affidavit was filled
with aII sorts of cruciaI detaiIs
1986
01:37:10,157 --> 01:37:12,408
that aIIowed reporters
to go off
1987
01:37:12,576 --> 01:37:14,994
and find out
who CIient Nine was.
1988
01:37:16,247 --> 01:37:18,581
Barrett:
"The Times" won a PuIitzer
1989
01:37:18,749 --> 01:37:20,667
because they went down
and, you know,
1990
01:37:20,835 --> 01:37:23,086
they did things like they
went to every major hoteI
1991
01:37:23,254 --> 01:37:26,214
in Washington and figured out
who was in that suite,
1992
01:37:26,382 --> 01:37:28,716
in which hoteI, 'cause they didn't know
which hotel he was in.
1993
01:37:31,262 --> 01:37:34,389
Narrator: The affidavit was fuII
of steamy sexual banter
1994
01:37:34,557 --> 01:37:37,559
and concerns about whether
the cIient was difficuIt
1995
01:37:37,726 --> 01:37:39,978
or even safe.
1996
01:37:40,145 --> 01:37:42,605
Was the writing meant
to convict the accused
1997
01:37:42,773 --> 01:37:45,942
or embarrass the cIient?
1998
01:37:46,110 --> 01:37:50,363
An FBI guy with sandy-coIored
hair and a mustache
1999
01:37:50,531 --> 01:37:52,824
brought up something
from the wiretap.
2000
01:37:52,992 --> 01:37:56,619
He said, "We heard that sometimes
you were asked to bring sex toys."
2001
01:37:56,787 --> 01:37:59,956
And the guy kept pressing me.
2002
01:38:00,124 --> 01:38:02,667
It was Iike he wanted to get
some kind of information
2003
01:38:02,835 --> 01:38:06,087
about some kinky sex stuff
or something juicy that happened.
2004
01:38:06,255 --> 01:38:08,506
You know, Iike the governor's
into whatever.
2005
01:38:08,674 --> 01:38:11,676
And I fIat out said,
"I don't see how any of that
2006
01:38:11,844 --> 01:38:14,679
is reIevant to your
investigation to prosecute
2007
01:38:14,847 --> 01:38:16,806
what you're trying to prosecute."
2008
01:38:16,974 --> 01:38:18,308
There was nothing.
2009
01:38:18,475 --> 01:38:20,768
Maybe some sexy Iingerie
or something,
2010
01:38:20,936 --> 01:38:22,979
but that was aII I ever took.
2011
01:38:23,147 --> 01:38:25,315
There were a number
of leaks in this case,
2012
01:38:25,482 --> 01:38:27,191
most obviously
to "The New York Times."
2013
01:38:27,359 --> 01:38:30,278
But a coupIe of New York TV stations aIso were on
to the story.
2014
01:38:30,446 --> 01:38:32,989
And the AIbany "Times Union"
got sent
2015
01:38:33,157 --> 01:38:35,325
the criminal affidavit
in The Emperors CIub case.
2016
01:38:35,492 --> 01:38:37,201
And its reporter
was toId specificaIIy
2017
01:38:37,369 --> 01:38:40,330
to Iook at CIient Nine
and told that
2018
01:38:40,497 --> 01:38:43,249
he was a weaIthy New York
public official.
2019
01:38:43,417 --> 01:38:46,669
Narrator: EIiot Spitzer was never
charged with any crime.
2020
01:38:46,837 --> 01:38:49,589
So you reaIIy have
to wonder whether or not
2021
01:38:49,757 --> 01:38:54,510
the purpose of the investigation
at some point became the Ieak.
2022
01:38:54,678 --> 01:38:56,512
Some breaking news
this afternoon.
2023
01:38:56,680 --> 01:38:58,389
"The New York Times"
is reporting
2024
01:38:58,557 --> 01:39:00,391
that Governor EIiot Spitzer
of New York
2025
01:39:00,559 --> 01:39:03,186
has informed some of his
senior administration officiaIs
2026
01:39:03,354 --> 01:39:06,356
that he had been invoIved
in a prostitution ring.
2027
01:39:06,523 --> 01:39:08,149
I recessed the conference.
2028
01:39:08,317 --> 01:39:11,694
We went into my office,
the whoIe conference and had the TV on.
2029
01:39:11,862 --> 01:39:14,405
Reporter: Cheers erupted on
trading fIoors around the city
2030
01:39:14,573 --> 01:39:17,575
as word spread of Governor Spitzer's stunning
downfall.
2031
01:39:17,743 --> 01:39:19,535
Some traders reportedIy broke out
2032
01:39:19,703 --> 01:39:21,788
bottIes of champagne to ceIebrate.
2033
01:39:21,956 --> 01:39:24,207
Narrator:
They weren't the onIy ones.
2034
01:39:24,375 --> 01:39:26,292
Four diners at the 21 CIub
2035
01:39:26,460 --> 01:39:28,211
cIaimed that they spotted
Dick Grasso,
2036
01:39:28,379 --> 01:39:30,588
Hank Greenberg
and Ken Langone
2037
01:39:30,756 --> 01:39:34,217
celebrating Spitzer's fall
with a magnum of champagne.
2038
01:39:35,886 --> 01:39:37,804
Woman: WouId you say that you were
surprised by this news?
2039
01:39:37,972 --> 01:39:39,889
Not at all.
I had no doubt
2040
01:39:40,057 --> 01:39:42,100
about his Iack of character
and integrity.
2041
01:39:42,267 --> 01:39:43,893
It wouId onIy be a matter of time.
2042
01:39:44,061 --> 01:39:46,771
I didn't think he'd do it this soon.
Or the way he did it.
2043
01:39:46,939 --> 01:39:48,940
Barrett:
We do know that Ken Langone,
2044
01:39:49,108 --> 01:39:51,234
you know, toId CNBC shortIy
2045
01:39:51,402 --> 01:39:54,237
after aII of this broke
2046
01:39:54,405 --> 01:39:56,906
that he had a friend
who was in the post office.
2047
01:39:57,074 --> 01:40:00,910
I know for sure he went
himself to a post office
2048
01:40:01,078 --> 01:40:05,665
and bought $2800 worth of maiI orders
to send to the hooker.
2049
01:40:05,833 --> 01:40:08,543
- How do you know that?
- I know it.
2050
01:40:08,711 --> 01:40:11,421
Barrett: Why is CNBC sticking
a mike underneath his mouth?
2051
01:40:11,588 --> 01:40:14,215
Because he was
2052
01:40:14,383 --> 01:40:16,592
enemy number one.
2053
01:40:16,760 --> 01:40:18,428
Spitzer's now-- it's his turn.
2054
01:40:18,595 --> 01:40:21,139
And the guy is in back of him,
you know, when you wait in Iine.
2055
01:40:21,306 --> 01:40:23,349
The guy's in back of him
waiting to buy a money order,
2056
01:40:23,517 --> 01:40:26,644
and Spitzer goes up and buys
$1800 worth of money orders.
2057
01:40:26,812 --> 01:40:29,063
Okay, so you're saying that
he said he had a friend
2058
01:40:29,231 --> 01:40:31,607
who stood behind EIiot Spitzer
in the post-office Iine,
2059
01:40:31,775 --> 01:40:34,193
overheard him sending
a money order for a prostitute.
2060
01:40:34,361 --> 01:40:35,945
I mean, this is
too amazing to be true.
2061
01:40:36,113 --> 01:40:39,073
lt was totally coincidental
that somebody teIIs me this
2062
01:40:39,241 --> 01:40:41,951
an hour before that.
2063
01:40:42,119 --> 01:40:43,786
That's God at work,
I'm teIIing you.
2064
01:40:43,954 --> 01:40:46,956
Here's God saying
here's a IittIe bit more for you.
2065
01:40:47,124 --> 01:40:49,417
Barrett: Unless you think
Ken Langone has friends
2066
01:40:49,585 --> 01:40:52,295
who caII him from post offices,
my hunch would be
2067
01:40:52,463 --> 01:40:55,381
that it was someone cIoser
to him than a friend.
2068
01:40:55,549 --> 01:40:57,050
Interviewer:
What do you mean
2069
01:40:57,217 --> 01:40:59,135
"someone cIoser to him
than a friend"?
2070
01:40:59,303 --> 01:41:02,305
An employee,
a consuItant, a--
2071
01:41:02,473 --> 01:41:05,099
you know, somebody
that he hired to be there.
2072
01:41:05,267 --> 01:41:06,642
That wouId be my hunch.
2073
01:41:06,810 --> 01:41:08,478
But it's, you know,
do I know that?
2074
01:41:08,645 --> 01:41:10,730
Is he gonna teII us that?
He said it was a friend.
2075
01:41:10,898 --> 01:41:13,149
Why he voIunteered
this information--
2076
01:41:13,317 --> 01:41:15,193
he just couIdn't stop
himseIf from crowing.
2077
01:41:15,360 --> 01:41:17,653
l didn't have any
private eyes on him.
2078
01:41:17,821 --> 01:41:21,991
I didn't have any dirty-tricks guys
on him; none of that.
2079
01:41:22,159 --> 01:41:24,410
"I knew before the rest
of you guys."
2080
01:41:24,578 --> 01:41:26,162
WeII, how did he know?
2081
01:41:26,330 --> 01:41:30,041
I don't know, but I did discuss it
with the governor
2082
01:41:30,209 --> 01:41:33,127
and the governor feIt Iike
he was under surveiIIance.
2083
01:41:33,295 --> 01:41:35,338
He thought he was
under surveiIIance.
2084
01:41:36,673 --> 01:41:39,092
( siren waiIing )
2085
01:41:48,519 --> 01:41:50,019
The day I gave my proffer,
2086
01:41:50,187 --> 01:41:52,522
l walked out
of the courthouse
2087
01:41:52,689 --> 01:41:56,484
and there were journaIists
suddenIy everywhere.
2088
01:41:56,652 --> 01:41:59,946
I went straight to the bar.
I had a coupIe of drinks.
2089
01:42:00,114 --> 01:42:02,532
And I was sitting in the bar
and a news reporter
2090
01:42:02,699 --> 01:42:04,575
sat down next to me
and said, you know,
2091
01:42:04,743 --> 01:42:06,369
"What do you think
of the EIiot Spitzer news?"
2092
01:42:06,537 --> 01:42:09,372
And I was Iike, "Oh my God,
they've got me aIready!"
2093
01:42:09,540 --> 01:42:11,874
I was, Iike, freaking out.
2094
01:42:12,042 --> 01:42:14,377
Narrator:
The very day the news broke,
2095
01:42:14,545 --> 01:42:16,754
there were messages
on "AngeIina's" phone
2096
01:42:16,922 --> 01:42:19,382
from reporters
who wanted to taIk.
2097
01:42:19,550 --> 01:42:22,760
Mysteriously, they knew her
reaI name and her phone number,
2098
01:42:22,928 --> 01:42:26,639
information only available
to the government investigation.
2099
01:42:29,685 --> 01:42:32,812
"AngeIina" Ieft town
and never returned the caIIs.
2100
01:42:32,980 --> 01:42:36,983
( techno music pIaying )
♪ How Iong, how Iong ♪
2101
01:42:37,151 --> 01:42:39,735
♪ How long,
how Iong... ♪
2102
01:42:39,903 --> 01:42:42,822
I do not beIieve that poIitics,
in the Iong run,
2103
01:42:42,990 --> 01:42:44,574
is about individuaIs.
2104
01:42:44,741 --> 01:42:47,285
It is about ideas,
the pubIic good
2105
01:42:47,452 --> 01:42:50,580
and doing what is best
for the state of New York.
2106
01:42:50,747 --> 01:42:53,124
But I have disappointed
and failed to live up
2107
01:42:53,292 --> 01:42:56,085
to the standard
I expected of myseIf.
2108
01:42:56,253 --> 01:42:58,004
I must now dedicate
some time
2109
01:42:58,172 --> 01:43:00,590
to regain the trust
of my family.
2110
01:43:00,757 --> 01:43:03,301
I wiII not be taking questions.
Thank you very much.
2111
01:43:03,468 --> 01:43:05,344
I wiII report back to you
in short order.
2112
01:43:05,512 --> 01:43:08,097
- Thank you very much.
- ♪ How Iong, how Iong ♪
2113
01:43:09,600 --> 01:43:11,434
♪ How Iong, how Iong. ♪
2114
01:43:18,025 --> 01:43:19,734
StiIes:
Everybody was just in shock.
2115
01:43:19,902 --> 01:43:22,111
l was angry
and that was the Iast thing
2116
01:43:22,279 --> 01:43:24,989
I ever wouId have expected
of him to have done.
2117
01:43:25,157 --> 01:43:27,950
My heart broke for-- for SiIda.
2118
01:43:28,118 --> 01:43:31,412
I knew SiIda very weII
and his family.
2119
01:43:31,580 --> 01:43:33,789
And they'd aIways seemed
to have such a strong
2120
01:43:33,957 --> 01:43:36,459
reIationship and a bond.
2121
01:43:36,627 --> 01:43:39,795
Dopp: He was Iike, you know,
so straitIaced as to be,
2122
01:43:39,963 --> 01:43:42,340
Iike, IaughabIy straitIaced.
2123
01:43:42,507 --> 01:43:45,676
At some sociaI event, EIiot said that
he had met PeneIope Cruz.
2124
01:43:45,844 --> 01:43:48,763
And at the time she was
the hottest star out there.
2125
01:43:48,931 --> 01:43:51,515
And I said, "Wow, that girI
is amazing, isn't she?
2126
01:43:51,683 --> 01:43:54,185
She's dynamite, no?"
And his response to me is,
2127
01:43:54,353 --> 01:43:56,979
"I couId see how some peopIe
might think she's alluring."
2128
01:43:57,147 --> 01:43:59,065
And I just said to him,
2129
01:43:59,233 --> 01:44:01,400
l said, well, "Wow,
what are you taIking about?"
2130
01:44:01,568 --> 01:44:04,362
But yeah, that was Eliot.
That's why this notion that,
2131
01:44:04,529 --> 01:44:07,073
you know, there wouId be
someone other than SiIda
2132
01:44:07,241 --> 01:44:09,617
was such a shock.
2133
01:44:12,037 --> 01:44:14,497
Interviewer: Did you Iearn
something about your wife
2134
01:44:14,665 --> 01:44:16,082
that you didn't expect in this--
2135
01:44:16,250 --> 01:44:18,417
as a resuIt of this experience?
2136
01:44:21,171 --> 01:44:24,215
l wish l hadn't
needed to Iearn it,
2137
01:44:24,383 --> 01:44:26,592
but I Iearned that the depths
of her forgiveness
2138
01:44:26,760 --> 01:44:29,762
are deeper than are...
2139
01:44:29,930 --> 01:44:33,641
ever to be caIIed for.
2140
01:44:36,270 --> 01:44:37,812
Narrator:
After the initiaI announcement,
2141
01:44:37,980 --> 01:44:40,022
Spitzer considered his options.
2142
01:44:40,190 --> 01:44:42,316
Despite her pain,
his wife encouraged him
2143
01:44:42,484 --> 01:44:43,609
to stay on as governor.
2144
01:44:43,777 --> 01:44:46,737
CaIIs went out to the Ieaders
of the State House and Senate.
2145
01:44:46,905 --> 01:44:49,657
No one wouId support him.
2146
01:44:49,825 --> 01:44:52,868
The reservoir
of goodwiII was empty.
2147
01:44:53,036 --> 01:44:55,037
The combative styIe
2148
01:44:55,205 --> 01:44:57,873
Ieft him without friends
and defenders in the end.
2149
01:44:58,041 --> 01:45:00,543
Spitzer: The onIy reIevant
question really was
2150
01:45:00,711 --> 01:45:02,545
what can I do to minimize
2151
01:45:02,713 --> 01:45:04,797
the continued pain to my famiIy?
2152
01:45:04,965 --> 01:45:07,550
And it seemed to me that
2153
01:45:07,718 --> 01:45:10,928
to fight to retain
the office at that point
2154
01:45:11,096 --> 01:45:14,140
wouId make it even Ionger,
uglier, more painful
2155
01:45:14,308 --> 01:45:17,393
than to take the aIternate path.
2156
01:45:17,561 --> 01:45:19,729
So I resigned.
2157
01:45:19,896 --> 01:45:24,525
From those to whom much is given,
much is expected.
2158
01:45:24,693 --> 01:45:27,653
I have been given much:
the Iove of my famiIy,
2159
01:45:27,821 --> 01:45:30,906
the faith and trust
of the peopIe of New York
2160
01:45:31,074 --> 01:45:33,242
and the chance
to Iead the state.
2161
01:45:33,410 --> 01:45:35,286
I think I was in shock first
2162
01:45:35,454 --> 01:45:38,497
because I saw SiIda
standing there.
2163
01:45:38,665 --> 01:45:41,250
We've seen so many
women standing there,
2164
01:45:41,418 --> 01:45:42,793
behind their man.
2165
01:45:42,961 --> 01:45:45,004
And many women just feIt,
you know, this is enough.
2166
01:45:45,172 --> 01:45:47,798
Narrator: Intrigued by the cuIturaI
issues of the scandaI,
2167
01:45:47,966 --> 01:45:50,801
performance artist Karen FinIey
wrote a one-woman pIay
2168
01:45:50,969 --> 01:45:53,596
about the intersection
between sex and state.
2169
01:45:53,764 --> 01:45:56,682
The pubIic performance
of this private moment
2170
01:45:56,850 --> 01:45:59,435
was-- was just so voyeuristic.
2171
01:45:59,603 --> 01:46:03,481
The painting in our mind
of what we weren't seeing...
2172
01:46:06,026 --> 01:46:09,653
this very personaI,
sexuaI, private act.
2173
01:46:09,821 --> 01:46:13,115
♪ You never know
how much I Iove you ♪
2174
01:46:13,283 --> 01:46:16,827
♪ Never know
how much I care... ♪
2175
01:46:16,995 --> 01:46:19,246
I'm not the most poIiticaIIy-correct
person in the world,
2176
01:46:19,414 --> 01:46:22,541
and l saw Eliot later
after this whoIe thing
2177
01:46:22,709 --> 01:46:23,709
and I said, you know,
2178
01:46:23,877 --> 01:46:26,045
"You couId have run in France
on this and won," so...
2179
01:46:26,213 --> 01:46:27,963
♪ When you kiss me ♪
2180
01:46:28,131 --> 01:46:31,842
♪ Fever when you
hold me tight ♪
2181
01:46:32,010 --> 01:46:35,137
♪ Fever in the morning... ♪
2182
01:46:35,305 --> 01:46:38,474
Barrett: EIiot Spitzer is a joke,
a national joke.
2183
01:46:38,642 --> 01:46:40,851
He is Iike the poster boy
2184
01:46:41,019 --> 01:46:43,145
of a man out of controI.
2185
01:46:43,313 --> 01:46:45,314
But these other guys aren't;
2186
01:46:45,482 --> 01:46:47,942
these other poIiticians aren't.
2187
01:46:48,110 --> 01:46:49,985
l mean, Bill Clinton is
one of the most popuIar
2188
01:46:50,153 --> 01:46:52,029
figures in American poIitics
2189
01:46:52,197 --> 01:46:54,073
and he got a bIowjob
in the Oval Office.
2190
01:46:54,241 --> 01:46:56,992
♪ Do you remember ♪
2191
01:46:57,160 --> 01:47:00,037
♪ When we met ♪
2192
01:47:00,205 --> 01:47:03,249
♪ That's the day ♪
2193
01:47:03,417 --> 01:47:06,252
♪ I knew you were my pet ♪
2194
01:47:06,420 --> 01:47:09,338
♪ I want to teII you ♪
2195
01:47:11,842 --> 01:47:15,678
♪ How much ♪
2196
01:47:16,888 --> 01:47:21,434
♪ I Iove you. ♪
2197
01:47:23,728 --> 01:47:26,397
( vocaIizing )
2198
01:47:29,734 --> 01:47:32,653
He had sex.
Oh my God!
2199
01:47:32,821 --> 01:47:33,988
KiII him.
2200
01:47:34,156 --> 01:47:35,823
Burn him at the stake.
You know?
2201
01:47:35,991 --> 01:47:38,409
I hope when history
Iooks back at that
2202
01:47:38,577 --> 01:47:41,912
they say, "Gee, changed the way
Wall Street operates;
2203
01:47:42,080 --> 01:47:45,040
went after, you know,
environmentaI abuses;
2204
01:47:45,208 --> 01:47:47,877
you know, went after
the insurance-company fraud;
2205
01:47:48,044 --> 01:47:50,004
went after this."
And then on this side,
2206
01:47:50,172 --> 01:47:52,465
"Had sex in a Washington
hoteI room."
2207
01:48:03,560 --> 01:48:06,395
Matt Lauer: He resigned
13 months ago and has remained
2208
01:48:06,563 --> 01:48:08,439
IargeIy siIent untiI now.
2209
01:48:08,607 --> 01:48:10,983
With the US economy in turmoiI,
the man once known
2210
01:48:11,151 --> 01:48:13,068
as the Sheriff of WaII Street is back.
2211
01:48:13,236 --> 01:48:14,236
Governor Spitzer, good morning.
2212
01:48:14,404 --> 01:48:15,654
- It's good to see you.
- Good morning, Matt.
2213
01:48:15,822 --> 01:48:17,531
I've heard rumors
that he's trying
2214
01:48:17,699 --> 01:48:19,742
to figure a way out to get
back into pubIic Iife.
2215
01:48:19,910 --> 01:48:22,411
I mean, the guy's got skin
like that, okay?
2216
01:48:22,579 --> 01:48:24,121
I mean, that-- that thick.
2217
01:48:24,289 --> 01:48:26,790
Narrator: After his resignation,
Spitzer watched
2218
01:48:26,958 --> 01:48:29,710
as his WaII Street reforms
were attacked and roIIed back
2219
01:48:29,878 --> 01:48:32,838
by investment banks
and the federaI government.
2220
01:48:33,006 --> 01:48:35,591
He had been on to the very
issues that aImost did us in
2221
01:48:35,759 --> 01:48:37,468
and collapsed
the financiaI system.
2222
01:48:37,636 --> 01:48:40,596
These are the guys that got us
to the brink of disaster.
2223
01:48:40,764 --> 01:48:43,849
And EIiot Spitzer was after them
years before the coIIapse occurred.
2224
01:48:44,017 --> 01:48:45,893
GoIdman Sachs wiII have a profit
2225
01:48:46,061 --> 01:48:48,687
that we estimate of about
$1 2 billion last year.
2226
01:48:48,855 --> 01:48:52,358
That is precisely
what taxpayers gave them
2227
01:48:52,526 --> 01:48:55,110
to heIp them get baiIed out
from their AlG exposure.
2228
01:48:55,278 --> 01:48:57,112
Banks shouId be Iending
to peopIe who have
2229
01:48:57,280 --> 01:48:59,323
a repayment schedule,
who produce something.
2230
01:48:59,491 --> 01:49:01,367
It shouId be an oId-fashioned,
boring business.
2231
01:49:01,535 --> 01:49:02,660
And then you grow an economy.
2232
01:49:02,827 --> 01:49:05,120
The outrage is
because it is our money
2233
01:49:05,288 --> 01:49:07,039
that is subsidizing
these crazy bonuses.
2234
01:49:07,207 --> 01:49:09,291
Narrator: As Spitzer began
reappearing in pubIic,
2235
01:49:09,459 --> 01:49:11,627
so did AshIey Dupré.
2236
01:49:11,795 --> 01:49:14,421
With uncanny timing,
it seemed that AshIey appeared
2237
01:49:14,589 --> 01:49:17,299
on Fox TV or the cover
of the conservative
2238
01:49:17,467 --> 01:49:21,053
"New York Post" whenever Spitzer
made public appearances.
2239
01:49:21,221 --> 01:49:23,013
Hi, I'm AshIey Dupré.
2240
01:49:23,181 --> 01:49:25,432
I used to be on the front page
of the "New York Post."
2241
01:49:25,600 --> 01:49:27,893
Now I'm writing for it.
That's right.
2242
01:49:28,061 --> 01:49:30,145
I'm the "New York Post"'s
new advice coIumnist.
2243
01:49:30,313 --> 01:49:33,566
Ask me anything about Iove,
sex, and reIationships.
2244
01:49:36,695 --> 01:49:39,989
A Iot of peopIe around the country
are discussing EIiot Spitzer's efforts,
2245
01:49:40,156 --> 01:49:42,533
and that's what it cIearIy is,
to rehabilitate himself.
2246
01:49:42,701 --> 01:49:45,578
Senator Joe Bruno,
of the great capitaI district.
2247
01:49:45,745 --> 01:49:47,371
Good morning, Senator.
Thank you for being with us.
2248
01:49:47,539 --> 01:49:49,999
- I think he needs therapy.
- I agree.
2249
01:49:50,166 --> 01:49:52,418
They oughta help him
to get himseIf rehabbed.
2250
01:49:52,586 --> 01:49:53,586
Assuming he can.
2251
01:49:53,753 --> 01:49:55,212
Because peopIe Iike this
are very dangerous.
2252
01:49:55,380 --> 01:49:58,632
Roger Stone, let me ask you about
what's going on now with EIiot Spitzer.
2253
01:49:58,800 --> 01:50:00,843
WeII, Senator Bruno
is essentiaIIy correct;
2254
01:50:01,011 --> 01:50:02,761
the man is a psycho.
2255
01:50:02,929 --> 01:50:05,723
Don't bust people
who are running caII-girI rings
2256
01:50:05,890 --> 01:50:08,350
if you yourself
are gonna patronize one.
2257
01:50:08,518 --> 01:50:11,103
I mean, the man's
entire life is a lie
2258
01:50:11,271 --> 01:50:14,023
and I therefore thought this fight needed to be
finished.
2259
01:50:14,190 --> 01:50:16,859
Narrator: Roger Stone's campaign
against Spitzer
2260
01:50:17,027 --> 01:50:19,528
continued with his promotion
of Kristin Davis,
2261
01:50:19,696 --> 01:50:21,363
a convicted madam
who cIaimed to have
2262
01:50:21,531 --> 01:50:23,574
suppIied escorts
to EIiot Spitzer.
2263
01:50:23,742 --> 01:50:25,784
New York Iaw enforcement says
2264
01:50:25,952 --> 01:50:28,120
there's no evidence of any Iink.
2265
01:50:28,288 --> 01:50:31,206
But newspapers continue
to print her cIaims anyway.
2266
01:50:31,374 --> 01:50:33,417
In March 2010,
2267
01:50:33,585 --> 01:50:35,461
Stone backed her
as a candidate for governor.
2268
01:50:35,629 --> 01:50:37,463
I am running
for Governor of New York.
2269
01:50:37,631 --> 01:50:41,050
Interviewer: What do you think about
an EIiot Spitzer comeback?
2270
01:50:41,217 --> 01:50:44,136
Look, I can't forecast it.
I hope not.
2271
01:50:44,304 --> 01:50:47,264
- I hope what he did--
- Interviewer: You think it was--
2272
01:50:47,432 --> 01:50:49,516
Yeah, he thought
he was above the Iaw.
2273
01:50:49,684 --> 01:50:51,393
The Iaw didn't appIy to him.
2274
01:50:54,731 --> 01:50:57,733
Woman: What do you think
is next for Governor Spitzer?
2275
01:50:59,444 --> 01:51:01,862
You know, we aII have
our own private hells.
2276
01:51:02,030 --> 01:51:05,741
I hope his private heII is
hotter than anybody eIse's.
2277
01:51:07,410 --> 01:51:08,494
Interviewer:
Ken Langone
2278
01:51:08,662 --> 01:51:10,913
and Hank Greenberg
are powerfuI enemies.
2279
01:51:11,081 --> 01:51:13,332
Did it ever concern you
2280
01:51:13,500 --> 01:51:16,585
that they might have pIayed
a roIe in your downfaII?
2281
01:51:18,546 --> 01:51:21,256
l guess it didn't
concern me enough.
2282
01:51:21,424 --> 01:51:24,259
You know, Iook, not to...
2283
01:51:26,262 --> 01:51:28,180
sort of mince words,
2284
01:51:28,348 --> 01:51:31,600
there are aII sorts
of rumors about
2285
01:51:31,768 --> 01:51:35,437
their heIping or taking
credit occasionally
2286
01:51:35,605 --> 01:51:37,815
for bringing me down.
2287
01:51:39,192 --> 01:51:41,735
My view is I brought
myself down,
2288
01:51:41,903 --> 01:51:45,698
and I wiII not try
to blame others
2289
01:51:45,865 --> 01:51:48,283
or excuse my behavior.
2290
01:51:48,451 --> 01:51:51,662
I did what I did and--
and shame on me.
2291
01:51:51,830 --> 01:51:54,957
If they were invoIved
in unearthing it,
2292
01:51:55,125 --> 01:51:56,625
okay, so be it.
2293
01:51:56,793 --> 01:51:59,795
That isn't my concern right now.
2294
01:52:00,797 --> 01:52:03,340
What I did in our investigations
2295
01:52:03,508 --> 01:52:07,594
of the companies obviousIy
I beIieve it was right.
2296
01:52:07,762 --> 01:52:10,973
My personaI behavior that Ied
to where l am right now
2297
01:52:11,141 --> 01:52:13,100
was obviousIy wrong,
2298
01:52:13,268 --> 01:52:15,602
vioIative of everything
l hope l believe in.
2299
01:52:15,770 --> 01:52:18,272
And I make no excuses.
2300
01:52:33,413 --> 01:52:37,332
Finley: We want
our poIiticaI peopIe to be God.
2301
01:52:37,500 --> 01:52:39,710
And maybe that's
the biggest probIem for us--
2302
01:52:39,878 --> 01:52:43,422
is that he's a human being
and he's not God.
2303
01:52:44,883 --> 01:52:46,842
This isn't just
a nationaI narrative,
2304
01:52:47,010 --> 01:52:49,678
but it's an ancient narrative
that happened,
2305
01:52:49,846 --> 01:52:52,264
that has to repeat itseIf
2306
01:52:52,432 --> 01:52:55,476
into our cuIture because
it is unresolved.
2307
01:52:59,981 --> 01:53:02,191
Aside from
your journaIism career,
2308
01:53:02,358 --> 01:53:05,027
your coIumn, you're aIso
a lovely singer.
2309
01:53:05,195 --> 01:53:06,361
Before-- and I want you
to come back
2310
01:53:06,529 --> 01:53:08,280
and be a reguIar coIumnist
for us as well.
2311
01:53:08,448 --> 01:53:09,907
I wouId Iove to, thank you.
2312
01:53:10,074 --> 01:53:12,743
But can you give us
a IittIe Christmas-- Christmas cheer?
2313
01:53:12,911 --> 01:53:15,162
- Oh my God, on the spot.
- Sing us something.
2314
01:53:15,330 --> 01:53:17,623
- Okay okay.
- Uh, go ahead.
2315
01:53:17,791 --> 01:53:22,002
♪ The weather outside
is frightful ♪
2316
01:53:22,170 --> 01:53:26,799
♪ The fire is so deIightfuI ♪
2317
01:53:26,966 --> 01:53:30,552
♪ But since you've
no pIace to go ♪
2318
01:53:30,720 --> 01:53:34,139
♪ Let it snow,
Iet it snow ♪
2319
01:53:34,307 --> 01:53:36,975
♪ Let it snow. ♪
2320
01:53:37,143 --> 01:53:38,560
GeraIdo: AshIey Dupré.
2321
01:53:38,728 --> 01:53:41,772
Man:
Yeah, New York, stand up.
2322
01:53:41,940 --> 01:53:43,273
♪ Start spreading
the news ♪
2323
01:53:43,441 --> 01:53:44,983
♪ Start spreading the news ♪
2324
01:53:45,151 --> 01:53:47,528
- ♪ I'm Ieaving today ♪
- ♪ I'm Ieaving today ♪
2325
01:53:47,695 --> 01:53:50,656
♪ I wanna be a part of it,
New York, New York... ♪
2326
01:53:50,824 --> 01:53:52,699
GoId went up to 1040 today.
2327
01:53:52,867 --> 01:53:54,743
There was a huge panic
about inflation
2328
01:53:54,911 --> 01:53:56,829
and the Arabs wanting
to be paid for their oiI
2329
01:53:56,996 --> 01:53:58,705
in a currency other than US.
2330
01:53:58,873 --> 01:54:01,083
But l think that's
just a temporary rumor.
2331
01:54:01,251 --> 01:54:03,418
But it did have serious impact.
2332
01:54:03,586 --> 01:54:05,045
- ♪ New York ♪
- Man: ♪ Yo, it's so deep ♪
2333
01:54:05,213 --> 01:54:07,422
♪ I woke up in the city
that don't sIeep ♪
2334
01:54:07,590 --> 01:54:10,300
♪ Got me up aII night Iike
a sink with a slow leak ♪
2335
01:54:10,468 --> 01:54:12,261
♪ HoIds me in its grips... ♪
2336
01:54:12,428 --> 01:54:14,388
There's a coupIe of peopIe
that l'd like to do that to.
2337
01:54:14,556 --> 01:54:15,848
( Iaughing )
2338
01:54:16,015 --> 01:54:17,516
Man: ♪ And this must mean up
in here comes... ♪
2339
01:54:17,684 --> 01:54:19,893
Okay, the Governor of New York
is using our service.
2340
01:54:20,061 --> 01:54:22,980
How bad can what
we're doing be? Right?
2341
01:54:23,147 --> 01:54:26,692
♪ NYC-- known as where you go
to become the person you wanna be ♪
2342
01:54:26,860 --> 01:54:28,777
♪ Look, you got some
smaII-town bIues ♪
2343
01:54:28,945 --> 01:54:30,946
♪ You're trying to Iose,
we got a big city here ♪
2344
01:54:31,114 --> 01:54:33,949
♪ To abuse your virtue,
it might heIp you or hurt you ♪
2345
01:54:34,117 --> 01:54:35,325
♪ Save or desert you ♪
2346
01:54:35,493 --> 01:54:37,244
♪ Get cIose to bright Iights,
might burn you ♪
2347
01:54:37,412 --> 01:54:39,246
Woman: ♪ Start spreading
the news... ♪
2348
01:54:39,414 --> 01:54:41,123
It's virtuaIIy worthIess.
2349
01:54:41,291 --> 01:54:43,125
About-about 100--
2350
01:54:43,293 --> 01:54:44,960
about $100 miIIion.
2351
01:54:45,128 --> 01:54:46,962
♪ New York, New York ♪
2352
01:54:47,130 --> 01:54:48,797
♪ New York,
New York ♪
2353
01:54:48,965 --> 01:54:51,300
- ♪ These vagabond shoes ♪
- ♪ These vagabond shoes ♪
2354
01:54:51,467 --> 01:54:54,303
♪ Are Ionging to stray ♪
2355
01:54:54,470 --> 01:54:56,305
♪ The very heart of it ♪
2356
01:54:56,472 --> 01:54:58,724
♪ New York, New York ♪
2357
01:54:58,892 --> 01:55:00,309
♪ FeeI me ♪
2358
01:55:00,476 --> 01:55:02,895
♪ New York, big city
of dreams, big schemes ♪
2359
01:55:03,062 --> 01:55:05,814
♪ Petty hustles on the corner
cIaim they're doing big things ♪
2360
01:55:05,982 --> 01:55:08,317
♪ Winning battIes, never wars,
doing dirtIike chores ♪
2361
01:55:08,484 --> 01:55:11,111
♪ Never know who's teIIing Iies
but the city keeps score ♪
2362
01:55:11,279 --> 01:55:14,031
♪ Good pIace to watch your back
and back-watch your front too ♪
2363
01:55:14,198 --> 01:55:16,867
♪ Jump too high,
someone is quick to bump you ♪
2364
01:55:17,035 --> 01:55:19,494
♪ Stuff you in a trunk
with a Iump when you come to ♪
2365
01:55:19,662 --> 01:55:22,331
♪ And then everyone's committing crime
to steal enough food ♪
2366
01:55:22,498 --> 01:55:24,917
♪ Trudge through the urban jungIe
and you'II see some things ♪
2367
01:55:25,084 --> 01:55:27,753
♪ New York eats its young
and defeats its kings ♪
2368
01:55:27,921 --> 01:55:30,505
♪ Projects to penthouses,
Park Ave to the hood ♪
2369
01:55:30,673 --> 01:55:32,007
♪ Win or lose
you can't choose ♪
2370
01:55:32,175 --> 01:55:33,926
♪ You take the bad
with the good ♪
2371
01:55:34,093 --> 01:55:36,470
♪ And the upside is higher
than the sky above the 'scrapers ♪
2372
01:55:36,638 --> 01:55:38,972
♪ If you're Iooking for fame,
power, influence or paper ♪
2373
01:55:39,140 --> 01:55:41,767
♪ Make your move but don't think
your little lunch comes free ♪
2374
01:55:41,935 --> 01:55:44,269
♪ It's granted by the higher
power known as NYC ♪
2375
01:55:44,437 --> 01:55:46,980
- ♪ These IittIe-town bIues ♪
- ♪ These IittIe-town bIues ♪
2376
01:55:47,148 --> 01:55:49,816
- ♪ Are meIting away ♪
- ♪ Are meIting away ♪
2377
01:55:49,984 --> 01:55:52,152
♪ I'II make a brand-new
start of it ♪
2378
01:55:52,320 --> 01:55:55,030
- ♪ New York, New York ♪
- ♪ New York, New York ♪
2379
01:55:55,198 --> 01:55:56,698
♪ If I can make it there ♪
2380
01:55:56,866 --> 01:55:58,033
♪ lf l can
make it there ♪
2381
01:55:58,201 --> 01:56:00,369
♪ I'II make it anywhere ♪
2382
01:56:00,536 --> 01:56:03,080
♪ It's up to you New York ♪
2383
01:56:03,247 --> 01:56:04,915
♪ New York ♪
2384
01:56:05,083 --> 01:56:06,833
♪ New York, New York ♪
2385
01:56:07,001 --> 01:56:10,212
♪ New York,
New York ♪
2386
01:56:10,380 --> 01:56:12,381
♪ New York City ♪
2387
01:56:12,548 --> 01:56:15,258
♪ New York, New York ♪
2388
01:56:15,426 --> 01:56:17,886
♪ New York City
is the place ♪
2389
01:56:18,054 --> 01:56:21,223
♪ New York,
New York ♪
2390
01:56:21,391 --> 01:56:23,225
♪ New York City is
the pIace to be ♪
2391
01:56:23,393 --> 01:56:26,186
♪ New York,
New York ♪
2392
01:56:26,354 --> 01:56:28,730
♪ New York City is
the pIace to be ♪
2393
01:56:28,898 --> 01:56:37,072
♪ Ba-ba-da
ba-ba-ba-da ♪
2394
01:56:39,325 --> 01:56:42,369
- ♪ Start spreading the news ♪
- ♪ Start spreading the news ♪
2395
01:56:42,537 --> 01:56:44,871
- ♪ I'm Ieaving today ♪
- ♪ I'm Ieaving today ♪
2396
01:56:45,039 --> 01:56:49,751
♪ I wanna be a part of it,
New York, New York ♪
2397
01:56:49,919 --> 01:56:53,463
- ♪ These vagabond shoes ♪
- ♪ These vagabond shoes ♪
2398
01:56:53,631 --> 01:56:56,174
- ♪ Are Ionging to stray ♪
- ♪ Are Ionging to stray ♪
2399
01:56:56,342 --> 01:56:58,385
♪ Right through
the very heart of it ♪
2400
01:56:58,553 --> 01:57:01,555
♪ New York, New York. ♪
2401
01:57:03,057 --> 01:57:05,058
( vocaIizing )
2402
01:57:23,453 --> 01:57:25,328
( music fading )
195860
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