American Scandal - Abscam | Money Talks | 1

Episode Date: August 22, 2023

The FBI launches an operation to catch white-collar criminals. To pull off the sting, agents partner with a lifelong conman—who offers an unusual plan.Need more American Scandal? With Wondery+, enjoy exclusive seasons, binge new seasons first, and listen completely ad-free. Start your free trial in the Wondery App, Apple Podcasts, Spotify or visit wondery.app.link/IM5aogASNNb now.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

You're listening to the first episode of this American Scandal season. With Wondery+, you can binge the remaining episodes, listen to new episodes early, and explore more exclusive seasons completely ad-free. Start your free trial of Wondery Plus in the Wondery app, Apple Podcasts, or Spotify today. It's the morning of August 18th, 1980. Outside a federal courthouse in Brooklyn, the sidewalks are packed with journalists and TV cameramen. There's a row of photographers leaning against parked cars like soldiers in a bunker. And nearby, dozens of onlookers are standing around,

trying to figure out what's causing such a scene. A minute later, they get their answer, as a sedan pulls up to the curb and the journalists pounce, snapping photos and hurling questions at a man who's become the center of one of the most unusual political scandals in decades. Mel Weinberg is a lifelong conman. He's barrel-chested and wearing a cream-colored three-piece suit and a pair of tinted aviator sunglasses and on his pinkies are gold rings studded with diamonds. It's been a long time since Weinberg had any trouble making money. For years, he'd made a fortune stealing from celebrities, businessmen, members of the mob, even terrorists. Some of his schemes are so brazen and creative, he's earned a near-mythical status among fellow criminals. Weinberg has a reputation as someone who can con even the most powerful people in the

world, people who enjoy special privileges and layers of protection and security, people like members of the United States Congress. And that's why Weinberg's here today at this federal courthouse. He's about to give testimony about a scheme that revealed corruption at the highest levels of government. Weinberg partnered with the FBI, pulling off a scam almost stranger than fiction. Now, Weinberg's job is to lay it all out for a jury, telling the truth as far as he sees it, that elected leaders are nothing more than common crooks, and that as long as you've got an envelope stuffed with cash, America's politicians are willing to play ball. The reporters and cameramen trail behind Weinberg as he reaches an office on the third floor of the courthouse.

trail behind Weinberg as he reaches an office on the third floor of the courthouse. He shuts the door behind him and waves to a group of federal agents who are all sitting playing a game of gin rummy. Weinberg takes a seat, and the leader of the operation, FBI agent John Good, makes his way across the room. So Mel, feeling ready? Why, you think I'm worried? Come on, I've seen much worse than a bunch of clowns calling themselves white shoe lawyers. Well, I've no doubt. But remember, these guys are pros. They're going to try and trip you up, make you lose your temper. I'll be cool, no problem. Well, I know you've got a lot of experience performing under pressure, that's for sure. But this, whole different ballgame. We're trying to put away members of Congress. Their attorneys are

going to be relentless. They're going to try to make the jury see you as nothing but a con man and a thief. Well, lucky for me, that's the truth, ain't it? I won't have to deny anything. Now, man, you got to take this seriously. You are the government's star witness, and when they start attacking you, you have to stay on message. Just tell the facts. Weinberg pulls out a cigar and strikes a match. Agent Good, I know for you this feels like a whole new ballgame, going after politicians and all, but I've been dealing with crooks for more than three decades, and these guys are no different from the rest of them.

Don't worry. I'll stay cool. They're not going to trip me up. All right, well then. You ready? Weinberg takes a couple of puffs from his cigar and then nods. Then he heads back out into the hallway, approaching a crowd of journalists and lawyers. It's time for him to tell the story about an FBI operation known as Abscan. There's a lot to say about the politicians they're about to take down, how gullible they were, how nothing about their corruption was at all surprising.

But what Weinberg can't yet appreciate is how his story is going to set off a chain reaction, one that will change the course of law enforcement for decades to come. Get ready for Las Vegas-style action at BetMGM, the king of online casinos. Enjoy casino games at your fingertips with the same Vegas strip excitement MGM is famous for when you play classics like MGM Grand Millions or popular games like Blackjack, Baccarat, and Roulette. With our ever-growing library of digital slot games, a large selection of online table games, and signature BetMGM service, there's no better way to bring the excitement and ambiance of Las Vegas home to you

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From Wondery, I'm Lindsey Graham, and this is American Scandal. In the 1970s, the FBI was at a crossroads. The Bureau, which had been among the most respected law enforcement agencies in the world, found itself mired in one scandal after another. In 1971, activists made public documents exposing an illegal FBI operation known as Cointelpro, whose aim was to sabotage civil rights activists, among others. Two years later, the Bureau was shaken once again after reports emerged showing that the new FBI director had been complicit in President Nixon's Watergate cover-up. By the end of the 1970s, the FBI found itself under new leadership and a new mandate to rehabilitate its public image and regain public trust. Part of that work involved a shift in

priorities. The FBI began focusing less on so-called blue-collar crime, like bank robberies and stolen cars. Instead, the Bureau gave more attentioncalled blue-collar crime, like bank robberies and stolen cars. Instead, the Bureau gave more attention to white-collar crime, like money laundering and bribery. But the agents needed some help developing their cases. So they began searching for informants, and soon that search led to master con artist Mel Weinberg, with an unusual but effective scheme for ensnaring his targets. That scheme would become known as ABSCAM, a sting operation so effective it expanded beyond the realm of white-collar crime

and transformed into a sprawling investigation of political corruption. ABSCAM was a highly unconventional operation. The FBI staged a party on a yacht, there were secret deals involving casinos, and undercover agents dressed up in costumes, pretending to represent businessmen in the Middle East. Abscam's methodologies would later come under fire. Though the operation exposed political crime on a scale not seen since Watergate, defense attorneys and legal analysts viewed Abscam as an improper exercise of law enforcement. They argued that the sting did not expose criminals,

but instead manipulated people into committing crimes, a practice known as entrapment. Those arguments would prompt a heated debate in Congress and lead to calls for reform. But the nation was also left puzzling over a mystery at the center of the scandal. How did a conman with a foul mouth and a penchant for complicated criminal schemes end up wielding so much influence at the FBI? And why were America's politicians so easy to target? This is Episode 1, Money Talks. It's the spring of 1977, and FBI agent John Good is in a difficult spot.

He has to build a new case, but he's stuck. Good is sitting with his head buried in a file, his eyes blood-red and burning with fatigue. Without looking up, he reaches for his coffee mug and lifts it to his lips, before realizing the cup's empty. When did that happen? Good looks up from the file he's been reading and discovers he's alone in the office. It's well past quitting time, and all his colleagues have gone home to have dinner with their families and put their kids to bed, which is what Good ought to be doing too,

if he weren't so fixated on this assignment. But getting lost in work isn't uncommon for Good. He's a 16-year veteran of the FBI and a supervising agent at the Bureau's office in Midtown Manhattan. His father was an agent, and five of his six siblings also work for the agency. Good loves the FBI, and he loves his work. But what's keeping him late at the office tonight isn't love, it's pressure. Good's bosses have been pushing him to launch more and bigger white-collar crime cases. In meetings and memos, they've stressed that those cases are essential to restoring public confidence in the agency. Good agrees with the strategy, but building successful white-collar cases presents unique challenges that can't be rushed.

With white-collar crime, it can be difficult to catch someone in the act. So the Bureau needs to cultivate confidential sources, people who can offer a view from the inside of a criminal operation. But informants are hard to find. And after 12 hours sitting at this desk, reading file after file, Good still hasn't found a single person who seems right for the job. He's beginning to think that that person might not exist. Good sets down yet another memo and glances over at a photo of his wife.

He should probably just head home. It's nine o'clock and he still has a long commute ahead of him. But Good can't stand the idea of having nothing to show for the work he's put in today. So he decides to look at just one more file, then drive back to his home in Long Island. Good reaches for his inbox and pulls a file right off the top. Then he opens the folder and begins to read. Almost immediately, he can feel this one is different. Good sets down the file and pushes away from his desk.

The tension he's felt in his shoulders all day just disappears, and a smile comes creeping across his face. Finally, he thinks, he's found the perfect candidate, a 53-year-old con man from the Bronx named Melvin Weinberg. When it comes to criminals, Mel Weinberg is in a class of his own. He's manipulative, uneducated, and completely unremorseful about a life spent stealing from other people. Weinberg began running scams when he was only six years old, and over the years he tried and perfected just about every con in the books.

Sometimes they were smaller-scale operations involving stocks and fake contracts for gold. Other times they were more elaborate. Once Weinberg pretended to be a police officer and robbed a physician who was performing abortions, which at the time were illegal. But the scam that became Weinberg's specialty was known as a front-end scheme. In this con, he lured people in with the promise of business loans and then stole their lucrative application fees. Weinberg made millions of dollars doing this, and he was so talented that many of his victims never even knew they'd been stolen from. He was a skilled craftsman, with an extensive rolodex of criminal contacts, both excellent qualities for an informant. But despite having lived a life of crime, Weinberg also had a relationship with the FBI. Weinberg had been feeding information to the

Bureau since at least the 1960s. The combination of his skills, connections, and willingness to assist the FBI made him a real asset. He had also recently been arrested and was facing jail time, which could motivate him to cooperate further. So just a few days after reading Weinberg's file, Agent Goods sends a younger guy named Myron Fuller out to meet with Weinberg in Pittsburgh. The goal is to suss him out and see if the FBI can recruit him. It's around 11.30 a.m. when Myron Fuller steps into a diner on the south side of Pittsburgh. Fuller doesn't have much of an appetite, and he's not planning to stay here long.

He's read the file on Mel Weinberg and knows the con man is a professional talker, the kind of guy who could get you to order a meal even if you weren't hungry, and then get you to pay for his. Fuller wants to maintain control over the situation, so he plans to do most of the talking. He's going to pitch a deal to Weinberg, get him to say yes, and then get out of the diner as quickly as possible. get him to say yes, and then get out of the diner as quickly as possible. Fuller scans the restaurant and spots Weinberg seated by himself in the booth. He's stout, with a greasy comb-over that's shining under the glow of an overhead light. Fuller heads over to Weinberg's table and takes a seat, ready to start in.

But before he can get out a word, Weinberg slams his hand on the table, his eyes wide like an actor from an old Hollywood movie. All right, you've convinced me. I'll do it. I'm sorry, what? I'm in. I'll work with you. You're looking for an informant type of deal, right? Yeah. You want me to grease the gears, tell you who's doing the crimes? Officially speaking, I think we're ironing out the details, but yeah, partnership could work. Well, whatever it is, I'm in for it. Well, that's, that's great. Thank you.

Honestly, I didn't expect this to be so easy. I had a whole speech prepared. Well, forget about that speech. You and I, we know each other now. We're friends. And look, Agent, Agent Fuller, Agent Fuller, here's the deal. I'm going to need you to do something for me. Oh, yes, of course.

We know you're facing charges of fraud. You give us information. We'll get the charges dropped. That sound good? Nope. Nope. No good. I can't work with that deal. I'm sorry. I don't understand. I mean, you're facing criminal charges. We can get them dropped. What else are you looking for? Well, Agent Fuller, that is not what's concerning me.

I'm going to beat those charges. The problem is, I got this girl. British, very sophisticated, and drop-dead gorgeous. Now, sometimes in the work I do, I bring her around, right? And sometimes I tell a little story. I'd say, my girl, she's the daughter of some high-up British bankers. Rich people. It adds authenticity to the whole thing, you know?

Sure, but what does that have to do with helping us out? Well, here's my problem. You guys came and arrested me for fraud, and you named her as an accomplice, you rats. Now there's a warrant out for her arrest. She's innocent. She has no idea what's going on, and I can't have that on my conscience.

So this is what I'm offering. You guys drop the charges against her, and I do whatever it is you want me to do. Fuller pauses, taking stock of the request. Well, I have to say I wasn't prepared for this. I know, kid, but don't worry about it. It's simple. Just go ask your boss, get him to say yes, and then we got a deal, and I get to work. Fuller feels deflated. He can see why Weinberg is so successful as a con artist. He tells you what to do, and he makes it sound easy,

like it's the only option in the world. Fuller doesn't know whether this request is going to kill the deal or what kind of problems it could open up, but he can't see any other options. So he stands and goes in search of a payphone to call the FBI field office in Manhattan. and goes in search of a payphone to call the FBI field office in Manhattan. A few days later, the terms of the deal are settled. Weinberg is going to help the FBI in its efforts to curb white-collar crime. In exchange, the Bureau is going to get Weinberg's

girlfriend out of her legal troubles. It's a simple quid pro quo. But now that the agreement's in place, the FBI has another problem, figuring out exactly what Weinberg is going to do to build a case. Typically, informants provide law enforcement with details about crimes that already took place or which are ongoing or could happen in the future. But for this operation, the FBI wants to run something closer to a sting. Once the Bureau identifies a target, Weinberg will lure them in with some kind of opportunity, enticing them to commit a crime. And then when the time is right, the FBI will spring their trap. But the question is, what exactly is this enticing opportunity supposed to look like?

To help Weinberg figure that out and manage the day-to-day work of the operation, supervising agent John Good assigns two of his best men to the job. One of them is Myron Fuller, the agent who recruited Weinberg. The other is an older agent named Jack McCarthy, but neither man trusts Weinberg. He's going to have to get to know him better, figure out how he thinks, and find some way to cooperate if they want to build a case. figure out how he thinks, and find some way to cooperate if they want to build a case. It's an early summer evening in 1979 in Long Island, and Mel Weinberg stands staring into the waters of the swimming pool behind his house.

Sitting behind Weinberg in his patio chairs are two FBI agents drinking iced tea and debating the best setup for their sting operation. They've been at it for hours, but as expected, Weinberg hasn't heard a single decent pitch from either of the two men. It's like they have no idea how to execute a successful swindle. And why would they? Everything they know about crime, they learn from trying to prevent it. But Weinberg already has an idea, and he knows it's a good one. He's certain that if the FBI lets him use it, they'll start racking up arrests, and Weinberg will be able to get his girlfriend off the hook. So he's biding his time, letting the agents run through all their half-baked scenarios

before countering with his own plan. Finally, Weinberg decides he's kept them waiting long enough. He turns back to the agents and says nonchalantly that he'd like to pitch an idea. A while back, before he was arrested, Weinberg was running something called a front-end loan scheme, a kind of con that mostly targets businessmen looking for quick cash. What makes these businessmen such a prime target is that for whatever reason, they can't ask a legitimate bank for a loan. So they start trying to get loans from less legitimate sources. In this sort of scheme, Weinberg has pretended to be the owner of an independent loan company. He claimed to have deep connections to international banks. Weinberg rented a fancy office and drove an expensive car, and he dated a drop-dead gorgeous British woman,

all of which was central to the illusion. Weinberg's marks, then, had no trouble believing he was a major player with access to large amounts of foreign capital. So they'd hand over thousands of dollars in processing fees and then wait for loans that would never materialize because the entire thing was a con. Weinberg pauses to see if the agents are following along. And as expected, he gets some pushback from Agent Jack McCarthy. It's no surprise that guy looks like an oversized Boy Scout in a cheap suit. The kind of man who wouldn't jaywalk on an empty street in the middle of the night. A man like that could never understand how to pull off an elaborate con. He says he just doesn't get it.

How could a loan scam aimed at desperate businessmen do anything to help the FBI? Weinberg sighs. The specifics of the loan scam aren't what matters. What's important are the mechanics. It's about knowing what your mark needs, convincing him it's somewhere far away in some foreign land, and that you're the only one who can give it to him. That's how you lure people in and keep them hooked. But the other agent, Fuller, looks like he's beginning to catch on. He asks how this would all work. Weinberg tells the two agents that it starts with a basic rule. White-collar criminals always need money,

and if they were recently arrested, they're going to need even more money. That makes them prime targets for something like the loan scam. The question is, what's the best cover story? Before either of the two agents can answer, Weinberg says he knows how to handle that part too. Back before he was arrested, he'd been reading a lot of newspaper stories about OPEC, the organization that coordinates oil policies for a few foreign countries. OPEC dominated headlines for months, and all the stories were filled with images of Arab oil tycoons rich beyond belief, the kind of riches that could look like salvation to a desperate white-collar criminal. So Weinberg makes his pitch.

Take the loan scam, but rework it using a story about one of these Arab sheiks. Instead of saying you're connected to an international bank, you say you're funded by a powerful leader in the Middle East, an oil baron with endless money. Everyone would buy it, and you could use that cover to start targeting white-collar criminals. Agent McCarthy interrupts, though, saying this is the most absurd idea he's ever heard of. Who in their right mind would believe that a Jewish hustler from the Bronx was working with some kind of higher-up from the Middle East? But Weinberg says it's not that big of a stretch. Right before he got arrested, Weinberg started telling people he was working for an Arab guy with deep pockets and major interests in U.S. businesses.

Before he knew it, Long Island's worst crooks were banging down his door to get in on the action. But Weinberg got busted before he could capitalize on the con. Still, the word was out. Weinberg had connections to Arab oil money. And in the time since, no one's been told otherwise. So they've got a cover story. They've got a way to draw in potential crooks.

All the FBI has to do now is say yes. He was hip-hop's biggest mogul, the man who redefined fame, fortune, and the music industry. The first male rapper to be honored on the Hollywood Walk of Fame,. Diddy built an empire and lived a life most people only dream about. But just as quickly as his empire rose, it came crashing down. Today, I'm announcing the unsealing of a three-count indictment, charging Sean Combs with racketeering conspiracy, sex trafficking, interstate transportation for prostitution.

I was f***ed up. I hit rock bottom. But I made no excuses. I'm disgusted. I'm so sorry. Until you're wearing an orange jumpsuit, it's not real. Now it's real. From his meteoric rise to his shocking fall from grace, from law and crime, this is The Rise and Fall of Diddy. Listen to The Rise and Fall of Diddy exclusively with Wondery Plus. I'm Jake Warren, and in our first season of Finding, I set out on a very personal quest to find the woman who saved my mom's life.

You can listen to Finding Natasha right now exclusively on Wondery Plus. In season two, I found myself caught up in a new journey to help someone I've never even met. But a couple of years ago, I came across a social media post by a person named Loti. It read in part, three years ago today that I attempted to jump off this bridge, but this wasn't my time to go. A gentleman named Andy saved my life. I still haven't found him. This is a story that I came across purely by chance, but it instantly moved me. And it's taken me to a place where I've had to consider some deeper issues around mental health. This is season two of Finding, and this time, if all goes to plan, we'll be finding Andy.

You can listen to Finding Andy and Finding Natasha exclusively and ad-free on Wondery Plus. Join Wondery Plus in the Wondery app, Apple Podcasts, or Spotify. Over the course of Mel Weinberg's long and illustrious career, he had stolen millions of dollars and cheated countless people from all walks of life, making a lot of people very angry along the way. But for more than three decades, Weinberg was able to operate without any real threats to his life because he had always followed one simple rule, never cross a dangerous man. because he had always followed one simple rule, never cross a dangerous man.

But now, in the summer of 1977, the FBI has handed Weinberg the names of his first two targets, and Weinberg is a little more than concerned, because one of the men is among the most dangerous in New York. Joe Trocchio has a reputation for violence. He provides the muscle for various criminal organizations in the area and has ties to the mafia, making him exactly the type of person Weinberg has always known not to cross. And yet, to get his girlfriend off the hook, Weinberg will have to set up an elaborate sting

and deliver Trocchio to the FBI. So sitting alone in his Long Island, New York home office, Mel Weinberg uncoils a cable snaking from a boxy Norelco tape recorder. Weinberg takes the end of the cable and plugs it into the back of a black rotary telephone. In a few moments, Weinberg is going to press the red button on that recorder and dial the number of Joe Trocchio. This recording will be the first of many that Weinberg intends to make, and if all goes according to plan,

these tapes will help the FBI build their case against Trocchio and secure an arrest. But in order to put away Trocchio and his business partner, Fred Pro, Weinberg needs to get a recording of someone in the act of committing an actual crime. Weinberg's plan is to spin a story about some Arab tycoons who are eager to do business, and with any luck, Trocchio will take the bait. Weinberg dials the number and sits waiting as the phone rings. Yeah? Hey, is this Joe? Who's asking? It's Mel, Mel Weinberg. Oh, Mel, how you doing? Can't complain, can't complain. Can't complain? That ain't what I heard.

Oh, yeah? What have you heard? I heard you got pinched. Feds caught up with you in Pittsburgh. Oh, no. That was nothing. I'll get off with probation. Yeah? Oh, good for you, kid. I'm in a little trouble myself. Got a trial coming up. Oh, I'm sorry to hear that. What'd they pop you for? Got a trial coming up. Oh, I'm sorry to hear that. What'd they pop you for?

Eh, saying I moved 150 grand worth of stolen traveler's checks. The charges aren't going to stick. The prosecutors got themselves a problem. Four witnesses somehow got whacked before they could testify. Weinberg shudders and changes the subject. Well, Joe, you know, the reason I called was I was hoping we could do a little business, you and me. Yeah?

Yeah, I've got this friend, an Arab. He's got major dough. He's told me he's looking for investment opportunities here in the States, and that made me think of you. So tell me, you and your old pal Fred Pro, you got anything my guy could get in on? For a second, Trocchio goes silent. Joe, you still there? Yeah, I'm here. Just, like, what are we doing talking on the phone? Oh, don't worry about that. It's just you and me. Friends, catching up. Eh, these days you never know, though. It ain't like it used to be.

No, it ain't. And look, I trust you, Joe, but if you don't trust me, I guess I'll just take the business elsewhere. I'm sure there are plenty of places where my friend the Sheik can invest his millions. Well, hold on. All right, look. Me and Fred Pro, we got something you guys could get involved in, maybe. Maybe. There's this mortgage firm, right? Brookhaven. Me and Pro, we're using phony securities to buy into it. Setting things up so a couple of the families in New York can use this place to wash their money. But after a while, me and Pro, we're going to bleed it dry.

Take all the assets. Major payday. Is that the sort of thing you and your guy might want in on? Yeah, Joe, exactly. That kind of payday is exactly the thing we're looking for. Before hanging up, Weinberg and Trocchio agree to speak again in a few days to work out the specifics of the deal. And when the conversation ends, Weinberg hits stop on his tape recorder, pulls a cigar from his drawer, and lights it up. It's time to celebrate.

Over the next three months, Weinberg continues to work the FBI's case against Joe Trocchio and his partner Fred Pro. Weinberg makes dozens of recordings and gathers intelligence about a variety of their crimes, including money laundering, forgery, and conspiracy to commit murder. By the fall of 1977, Weinberg hands over everything to the FBI, and as promised, the Bureau arranges to get the charges dropped against Weinberg's mistress. But the FBI is so thrilled with Weinberg's performance that the Bureau rewards him by working out a new deal in which the conman will plead guilty to his own charges of fraud but never go to prison. So at this point,

Weinberg has fulfilled his obligation to the FBI. He and his girlfriend are free. But over the three months Weinberg spent working Joe Trocchio and Fred Pro, word spread about Weinberg's connections to some wealthy Arab sheik. So now, even after the deal with the FBI is done, Weinberg's phone is ringing off the hook with calls from other criminals asking for an introduction to Kambir Abdul Rahman, the fictional sheik. Weinberg isn't required to record these calls, but he does so anyway. Then he turns the tapes over to the FBI. When the agents listen to the recordings,

they realize that Weinberg's scam is exposing a whole syndicate of criminal enterprises, providing the kind of information that otherwise might take years to discover. It seems crazy to shut it down now. So the FBI asks Weinberg to stay on the project officially. But they figure Weinberg isn't likely to agree.

The work is risky, and they've already given him everything he wanted. But to the FBI's surprise, Weinberg does agree, though the reasons are far from altruistic. Weinberg knows that once the FBI puts away Joe Trocchio and Fred Pro, he could never go back to his old, high-rolling criminal life.

But he also can't live a normal life with a normal day job. He's not suited for it. Weinberg is a swindler, and he loves the work, even if that means swindling on behalf of the U.S. government. So Weinberg says yes, he'll continue working with the FBI on two conditions. The first is that the government defer taking any legal action against Trocchio and Prohm. Weinberg will almost certainly have to testify at their trials, but doing so will completely blow his cover.

His career as a con artist would be over. The second condition is that the government will have to pay his expenses. After some discussion, the FBI agrees to Weinberg's terms, and the operation continues to move forward. But about a year later, there's another development that will completely change the course of the FBI's operation. It's the fall of 1978, and Mel Weinberg is waiting around in a cramped office in Holbrook, New York.

Weinberg can't believe this is supposed to be the headquarters for the FBI's Sting operation, which is now being called Abscam, some codename based on the fictional Arab sheik at the center of the operation, Kambir Abdul Rahman. The office is a sad space, only about 600 square feet, with three rooms and cheap furniture, not the kind of outpost you'd expect from an Arab oil tycoon. But Weinberg's handlers at the FBI say they've maxed out their budget. He'll just have to make do. But Weinberg isn't going to sweat.

If anyone can tell this story, it's him, and as he stands staring at one of the office's windows, he sees his next mark pull up in a Chevy Camaro. he stands staring at one of the office's windows, he sees his next mark pull up in a Chevy Camaro. William Rosenberg steps out of the car, and to Weinberg, he looks like a cartoon of an upper-class swindler. Thin mustache, gray hair, a silk tie around his neck. Rosenberg's younger partner, Dan Minsky, is playing the part too, wearing some smug grin in an outfit that must have cost a fortune. Weinberg knows the rap on these guys. Rosenberg spent four months locked up on securities fraud. He's exactly the kind of guy the FBI is trying to target with AppScan. And when Rosenberg and his partner step into the office, another feeling starts bubbling up inside Weinberg.

He doesn't like this guy. He doesn't like his dandy outfit. He doesn't like the way he's trying to sound like some kind of British royalty, like he's better than everyone. Weinberg's got no patience for these kind of crooks. Touches a nerve. So as he stares at Rosenberg, Weinberg gets a strong, almost visceral impulse. He wants to nail this guy and hand him off to the FBI. Weinberg summons all his charms and begins spinning his tall tale, a story he knows will land this guy hook, line, and sinker. He goes on about his boss, the Arab sheik Abdul. Weinberg paints a vivid picture of the hundred-foot yacht in private plains. He talks about Abdul's immense wealth and explains that with all the chaos in the Middle

East, Abdul's feeling anxious about his money. More and more, he wants to invest his considerable fortune in the U.S. Weinberg pauses, taking stock of his guests. He can see they're drawn in. He's given them something to salivate over. And that's step one. Now Weinberg needs to let these guys bury themselves. So he invites Rosenberg to start pitching him on ideas for a joint project. Rosenberg sets an attaché case on the desk. Then he pulls out a typed list describing several potential deals. At the top of that list is Atlantic City. Just a year ago, New Jersey officially legalized casino gambling in the coastal city. Now tons of investors are

looking to break ground on hotels and casinos to build their vision of an East Coast Las Vegas. But Rosenberg says all of these investors have the same problem. To operate a casino in Atlantic City, you've got to get a license from a New Jersey state commission, and you can't get final approval until construction has already started. The dilemma is obvious. If you've already spent tens of millions of dollars building a casino, you can't risk having the whole project fall through over a government license. And because of the risk involved, banks have grown hesitant to give investors a loan, knowing that the final license from the state board could always be

denied. As a result, investors have had to take on loans with huge interest rates, and Rosenberg says that presents an opportunity. Rosenberg suggests that Weinberg's boss, Abdul, could start offering loans himself for the construction of these casinos. They could make loads of money on interest. Weinberg agrees it does sound like a good business opportunity, but privately, he knows he's going to have to redirect the conversation. Rosenberg wants in, but so far he hasn't offered anything illegal, nothing Weinberg could hand off to the FBI. So Weinberg takes another angle, pointing out that anyone giving a loan to one of these casino investors is taking on a huge risk. Why should his boss, Abdul, absorb that kind of liability? Rosenberg smirks. If Abdul invests with Rosenberg,

he and his men can guarantee the casino will get a license. They have their ways, involving a powerful and well-connected politician, Angelo Arachetti, the mayor of Camden, New Jersey. Hearing the name of the mayor of a major city, Weinberg's ears perk up. With a little more prodding, he gets Rosenberg to admit that Arachetti is willing to take a bribe. And with the mayor's support, Rosenberg says, Weinberg's boss shouldn't have any doubts about lending money. It's guaranteed income. Hell, they could even build a casino themselves, knowing they're guaranteed to get a license from the state, thanks to the honorable mayor of Camden. Weinberg leans back, satisfied. It's all here,

the angle, the play. Weinberg now has what he needs to hand off Rosenberg to the FBI. But as the conversation unfolds, it dawns on Weinberg that this meeting is going to change everything. For over a year, Weinberg has been working to help the FBI build cases against forgers and swindlers and thieves. But now Weinberg is catching a whiff of something else. Corruption. And it's not just coming from crooked businessmen, but from the ivory towers of politics. If what Rosenberg's saying is true, if Mayor Angelo Arricchetti really is as dirty as he says, there's no telling how big Abscam will grow, or how high up the ladders of power it might reach.

telling how big Abscam will grow, or how high up the ladders of power it might reach. On January 5th, 2024, an Alaska Airlines door plug tore away mid-flight, leaving a gaping hole in the side of a plane that carried 171 passengers. This heart-stopping incident was just the latest in a string of crises surrounding the aviation manufacturing giant, Boeing. In the past decade, Boeing has been involved in a series of damning scandals and deadly crashes that have chipped away at its once sterling reputation. At the center of it all, the 737 MAX. The latest season of business wars explores how Boeing, once the gold standard of aviation engineering, descended into a nightmare of safety concerns and public mistrust. The decisions, denials, and devastating consequences

bringing the Titan to its knees and what, if anything, can save the company's reputation. Now, follow Business Wars on the Wondery app or wherever you get your podcasts. You can binge Business Wars, The Unraveling of Boeing, early and ad-free right now on Wondery Plus. By the late 1970s, Abscam is in full swing. At the offices of Abdul Enterprises, the fake company used as a front for the operation, the phone is ringing off the hook.

fake company used as a front for the operation. The phone is ringing off the hook. Mel Weinberg is taking call after call, discussing everything from securities fraud to a conspiracy involving uranium. And Weinberg records every one of them, handing over the tapes to the FBI, who uses them to build airtight criminal cases. But the operation soon undergoes a shift. After the FBI learns about Angelo Arricchetti, the supposedly corrupt mayor of Camden, New Jersey, the agents and Weinberg begin looking to see if there are other dirty players in elected offices. And a mission that had begun with a focus on white-collar crime transforms into a growing investigation into political corruption. The stakes are now higher than ever, and with American politicians now

potentially a target of criminal investigation, federal agents know they're going to have to build cases that can withstand the most withering scrutiny in court. In part, that means addressing an issue known as entrapment. Under federal law, there are limits to the kind of actions undercover agents can take when they're out in the field. The idea behind entrapment laws is that the government cannot mastermind a criminal scheme. Undercover agents aren't allowed to pressure individuals to perform a crime than turn around and prosecute those same people, especially if the targets wouldn't have committed the crime otherwise. In other words, the government cannot manipulate people into becoming criminals.

In other words, the government cannot manipulate people into becoming criminals. So FBI supervising agent John Good and other officials leading Abscam have to grapple with some difficult questions. Were the FBI and Mel Weinberg creating a criminal scheme? Were they inducing criminal behavior? Or were they merely inviting people to act on their own free will? The lines can be blurry, but the questions aren't an academic exercise. If Abscam has crossed a line, the prosecution could fall apart, and the defendants, which might include the mayor of an American city,

could credibly argue that the FBI had broken the law, another potential humiliating spectacle for a bureau trying to rehabilitate its image. So shortly before Weinberg's first meeting with Mayor Angelo Arricchetti, Agent John Good and Federal Prosecutor John Jacobs convene a meeting. It's time to go over some ground rules and make sure Abscam is staying above board. It's the fall of 1978, and the team carrying out Abscam have gathered in their small, cramped office in Holbrook, New York. FBI agent John Good and prosecutor John Jacobs are joined by Mel Weinberg and agent Jack McCarthy. Prosecutor Jacobs straightens his tie, and as he makes his way to the front of the room, he begins delivering a lecture about their work going forward.

All right, well, Mel, Jack, we're only days away from your meeting with Eric Keddie. We all know the goal. Get the mayor to promise he'll get casino licenses in exchange for money. Because if he takes the bribe, we have our guy. But, and this is important, we have to be careful. Before Jacobs can continue, Weinberg jumps in. I'm sorry, but this is why you called a meeting? To We have to be careful. Before Jacobs can continue, Weinberg jumps in. I'm sorry, but this is why you called a meeting? To tell me to be careful? I know how you like to

get your guy, Mel, and I like that about you. I just want to make sure you're doing it the right way so that when this gets to court, Eric Hetty can't say he was the victim of entrapment. Oh, what are you guys talking about? Entrapment? This guy is as dirty as it gets. Be that as it may, there are certain lines we cannot cross, especially when we're taking on a politician. A man like Eric Keddie is going to have the best lawyers money can buy, and those lawyers are going to try to undermine our case in any way they can. So if we want the case to stand up in court, yeah, sure, we can sit down with Eric Keddie and make him an offer, and if he takes it, we have a case.

But if we push him to break the law, if we manipulate him into a conspiracy, especially if he seems resistant, our prosecution will fall apart. Resistant? He's not going to seem resistant. For a prosecutor, you don't know much about crooks. Well, how can you be so sure? Well, look, there are two kinds of people in this world. You're dirty or you're clean. Now, I don't care if this guy Eric Hetty's the mayor of Camden or the pope. If he's dirty, he's dirty, and he'll take the cash.

No one's going to have to push him. Right? Well, but Mel, you would agree that with some careful prodding, you're more than capable of convincing someone to act against their better judgment, right? Maybe even break the law? Well, I mean, something small like jaywalking, sure, but if you're clean, there's nothing I can do to change that. People are who they are. Well, I see we have a difference in worldview, but still, I need you to promise you're not going to cross the line. Eric Hetty has to make the decision himself.

Okay, whatever you say. I'll be careful. the decision himself. Okay, whatever you say. I'll be careful. Jacobs nods. He's not sure he got through to Weinberg. There's a good chance the lifelong con artist is just going to play by his own rules. But Jacobs tries to reassure himself. According to their intelligence, Angelo Arricchetti is both corrupt and willing to use his power to advance his own self-interest. The mayor shouldn't need any prodding to break the law. And while the line between entrapment and a well-executed sting isn't cut and dry, Jacobs believes this should be a straightforward operation, one that'll end with an arrest and a conviction.

It's December 1st, 1978, and Mel Weinberg is waiting in the headquarters of the fictional company Abdul Enterprises. He hears a set of car doors slam shut and glances out the window. Angelo Arachetti is approaching the building with two of his associates. Weinberg turns, exchanging a silent look with Jack McCarthy, the FBI agent who's been one of his central partners all throughout AppScan. Together, they've nailed a lot of white-collar criminals, but this meeting today could turn into something else entirely. Angelo Arricchetti is one of the most powerful politicians in New Jersey.

He's not only the mayor of Camden, he's also a state senator and one of the most influential members of the entire state legislature. He's got a reputation as a tough guy, a brash mover and shaker who wears expensive clothes and speaks in bursts of profanity. And while he's likely full of bluster, Arachetti does wield considerable influence over the state's casino commission, having helped several members get appointed.

But if what they've learned is correct, that Aracheti is corrupt, then he should be an easy target for the operation, and more than willing to take a bribe. Aracheti and his men step into the office, and right away the mayor begins hurling a series of good-natured insults, making fun of Abdul Enterprise's dingy headquarters. Aracheti is animated and foul-mouthed, with a self-assuredness that's almost radiant. He makes Weinberg like the guy. It's almost too bad they're going to have to draw him into a sting. But that's the job.

So Weinberg begins the familiar story about his financial backer, the Arab Sheikh Abdul, and all the money he's looking to invest in the United States. Weinberg explains that they'd like to get into casinos now that Atlantic City is about to take off. But Weinberg says they need some help. They can't invest in a casino unless they have a guarantee that they'll get a license from the state commission. And the word is, Arachetti can take care of those arrangements. Arachetti narrows his eyes, sizing up Weinberg. After a moment, he says that's no problem.

I can do that. I've done it before. Now it's Weinberg's turn to pause. This was easy, but they have to get specific. So he asks Arachetti how much it would cost for the mayor to help secure the casino licenses. With this, Arachetti tenses up and says, I don't want to discuss it. You talk to these gentlemen. Then he steps out of the office, leaving his two associates behind. Weinberg looks over at undercover agent McCarthy,

who gives him a nod and signals they should keep moving forward with the deal. So Weinberg asks Eric Hetty's associates, how is this all going to work? One of the men, William Eden, says they're going to have to pay Eric Heddy between $350,000 and $400,000, including a $100,000 down payment. When it's time to pay up, Eric Heddy won't accept the payment directly. Instead, they'll have to put the money in a colored envelope and hand it over to Eden. From there, Eden will walk the money over to Eric Heddy, who's going to be sitting in a parked car. And once the deal is done, the mayor will handle the rest,

distribute the money to the right people, and make sure that Abdul Enterprises gets its license. Weinberg exchanges another look with Agent McCarthy. Eden didn't specify who the right people were, but it's clear to Weinberg that he's alluding to officials on the state commission that approves casino licenses. So Weinberg says they're ready to play ball. The men then shake hands, and the meeting breaks up. And as Arachetti and his posse drive away from the building, Weinberg just shakes his head and laughs. He's always known politicians were dirty, but this guy Arachetti looked, sounded, and talked just like every other dirty player from

the world of East Coast crime. And from the sound of it, Eric Hetty is not alone. If his associates are right, there are plenty of other political officials in New Jersey on the take, people willing to do a political favor in exchange for an envelope stuffed with cash. From Wondery, this is Episode 1 of Abscam for American Scam. From Wondery, this is Episode 1 of Abscam for American Scam. In our next episode, the FBI's operation expands and begins targeting members of Congress, but infighting with federal prosecutors threatens to put an end to the mission. You've just listened to Episode 1 of our season on Abscam, but there's more to come. As the season unfolds, you'll witness Mel Weinberg, a seasoned conman, take center stage as the mastermind behind an elaborate sting operation.

Working with FBI agent John Good, Weinberg and his team pose as Middle Eastern sheiks, luring in some of the most powerful politicians in America. One by one, senators, congressmen, and other public officials all fall into the trap. But the real question is, who is truly being conned? Is it just the corrupt officials, or has the FBI crossed the line, manipulating people into committing crimes they never would have otherwise considered? Will this operation bring down some of the country's most powerful men, or will it backfire, destroying the credibility of the FBI itself? To listen to the rest of this season of American Scandal, start your free trial of Wondery Plus in the Wondery app, Apple Podcasts, or Spotify.

With Wondery Plus, you can listen to other incredible history podcasts like American History Tellers, History Daily, Tides of History, and more. Download the Wondery app today. If you'd like to learn more about Abscam, we recommend the book The Sting Man by Robert Greene and the U.S. Senate's exhaustive study on the operation from December 1982. This episode contains reenactments and dramatized details, and while in most cases we can't know exactly what was said,

all our dramatizations are based on historical research. American Scandal is hosted, edited, and executive produced by me, Lindsey Graham, for Airship. Audio editing by Christian Paraga. Sound design by Molly Bach. Music editing by Katrina Zimrack. Music by Lindsey Graham. This episode is written by Hannibal Diaz. Edited by Emma Cortland.

Fact-checking by Alyssa Jung-Perry. Produced by Andy Herman. Our senior producers, Gabe Riven. Executive producers are Stephanie Jens, Jenny Lauer-Beckman, and Marsha Louis for Wondery.