American Scandal - Rod Blagojevich | Board Games | 3

Episode Date: March 12, 2024

Tipped off to some shady dealings on several Illinois state boards, the FBI launches an investigation into Governor Rod Blagojevich's administration. At first, they set their sights on a well-connected businessman named Stuart Levine, who seems to using his board seats to run kickback schemes. But soon, their investigation leads them all the way to Blagojevich's campaign headquarters.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.

Hi, this is Lindsey Graham, host of American Scandal. Our back catalog has moved behind a paywall. Recent episodes remain free, but older ones will require a Wondery Plus subscription. With Wondery Plus, you get access to the full American Scandal archive, ad-free, plus early access to new seasons and more. Join Wondery Plus in the Wondery app or on Apple Podcasts. podcasts. It's April 14th, 2004 in downtown Chicago. Stuart Levine is striding confidently through the lobby of one of the city's swankiest private clubs. Over his many years of political power brokering, Levine has learned that the

Standard Club is the perfect place to have discreet conversations with the city's elite. Businessmen have been making deals here for more than a century, and tonight Levine is hoping to make a deal of his own. Levine's here to have dinner with Tony Rescoe. The two men met by chance at a party two years ago, just before the Illinois governor's election. Since then, Resco has become one of the most covertly powerful people in Illinois, a close friend and advisor of the state's new governor, Rod Blagojevich. Levine likes Resco, too. They're both wealthy businessmen who aren't afraid to make under-the-table deals,

and both share an understanding that politics has little to do with ideology and everything to do with influence and power. That's why Levine has asked Rescoe to dinner, to maintain his spot in the governor's inner circle. But in order to do that, Levine will need to prove his worth. Luckily for Levine, he has something going for him. He's on two important Illinois state boards. He's already preparing to orchestrate a lucrative kickback scheme from his position on the Health Facilities Planning Board. But Levine wants to make sure that Resco knows there are more money-making opportunities on the horizon with the other board he's on, the Teachers Retirement System, which oversees pensions. As Levine walks through the club's restaurant,

he passes several business executives, two well-known judges, and someone he's pretty sure used to play for the Chicago Bears. Then he reaches the door to a private dining room and opens it. Inside, Resco is sitting at a table covered in crisp, cream-colored cloth. Levine pulls up a plush leather armchair and calls for the waiter. Yeah, thanks. Let's do a bottle of Cabernet, and I'll have the New York strip. Medium rare, please. What do you want, Tony? The same, thanks. All right. Why am I here, Stuart? Well, straight down to business. I like it. Now, I'll give you a straight answer. I want

to give you an opportunity to get in on something big. But first, I need to ask you, do you know TRS? Yeah, sure. That's the agency that looks after teachers' pensions. Um, Teachers' Retirement System. Yeah, that's right. So I'm on the TRS board, and I'm working on something that is going to make you very happy. Well, I'm listening. So you know how TRS is always looking for new businesses to help us invest the

pensions we oversee? Well, I know some guys who run investment firms, and they're willing to, let us say, compensate us for whatever business we might send their way. Levine pauses and watches Resco's face carefully. But it's inscrutable. Levine wonders if he's made a mistake by speaking so bluntly about a kickback scheme. Levine knows Resco isn't afraid of backdoor deals, but he tends to favor a cautious approach. So Levine tries to reassure Resco. And look, I know it might sound dicey, but I've figured out a way to keep our names completely out of it. I've arranged it so that businesses won't pay us directly, they'll pay a friend of mine instead. And then we'll make arrangements to pass the money to us. Our names won't be anywhere near this thing.

I can put together a chart if you want to see how this would work. A chart? What is this, grammar school? Well, you won't be laughing when I tell you how much you're going to make on this thing. Well, all right, give me a number. 3.9 million. Each. All right, give me a number. 3.9 million each.

Suddenly, all of Resco's reservations seem to evaporate. He's clearly interested, and he tells Levine to move forward with a plan, full speed ahead. The two men then enjoy their steaks and wine and agree to talk again soon. And as Levine walks Resco to the door, he feels an enormous weight lifted from his shoulders. His political influence feels more secure than ever, and soon he'll be siphoning off millions in state money, certain that he'll get away with it, just like he always does. In the past decade, Boeing has been involved in a series of scandals and deadly crashes that have dented its once sterling reputation. At the center of it all, the 737 MAX. The latest season of Business Wars explores how Boeing allowed things to turn deadly and what, if anything, can save the company's reputation.

Make sure to listen to Business Wars wherever you get your podcasts. From Wondery, I'm Lindsey Graham, and this is American Scandal. In the spring of 2004, Stuart Levine was feeling practically invincible. He had friends in the governor's office and two powerful state board appointments. He was using those appointments to line his own pockets and those of his new friends with millions of dollars in state money. But Levine did not know he'd already become the subject of a federal investigation, one that started around the beginning of the year when the FBI received an anxious phone call from Pam Davis, the CEO of a local hospital. In that call, Davis said that someone associated with the Illinois Health Facilities Planning Board was trying to extort her. And it didn't take long for the FBI to figure out who that someone was, Stuart Levine.

As the FBI looked into Levine's activities, they uncovered a web of corruption wider than anyone had imagined. Soon, their investigation would reach out to ensnare other high-powered members of state government, creeping ever closer toward the man the fedsare other high-powered members of state government, creeping ever closer toward the man the feds believe could be at the center of the scandal, Illinois Governor Rod Blagojevich. This is Episode 3, Board Games. It's 7 p.m. in Chicago on May 20, 2004, and Stuart Levine is at home fixing himself a cocktail. He's feeling celebratory because in just four days, the Teachers Retirement System, or TRS, is going to select several businesses of Levine's choosing to receive $660 million, and nearly $8 million of that will

end up in the pockets of Levine and his accomplice, Tony Resko. It's a deal worth toasting to, even if he's toasting alone. But before he can take a sip of his drink, Levine hears a knock at his front door. He sets the glass down, annoyed by the interruption. And when he reaches his front door and looks through the peephole, he instinctively takes a step back. Standing in the glow of his porch light are several formidable-looking men, wearing jackets with big yellow letters reading FBI. The sound of Levine's heart pounds in his ears. He wonders if

he should try to sneak out the back, but realizes that might end up making him look guilty, and he doesn't yet know why the FBI is on his doorstep. So Levine decides to let the agents in. As the door swings open, the man at the front of the group flashes his badge and introduces himself as FBI Special Agent Daniel Cain. Levine invites Cain and the other agents into his living room and tries to arrange his face into an innocent, quizzical expression. When he asks why they've come, Cain tells Levine to sit down. Levine sinks into an armchair and listens in horror as Cain explains

that the FBI and the U.S. Attorney's Office knows he's been trying to defraud the state. For a moment, Levine doesn't speak. He looks at Cain, trying to discern how much the agent actually knows. Cain could be bluffing, trying to trick Levine into a confession. So Levine decides to push back. In an indignant voice, he asks the agents for proof of their allegations. In reply, Cain says something that chills Levine to his core. The FBI and U.S. Attorney's Office have been tapping his phone and listening to all his conversations for weeks. Suddenly, Levine can't breathe. He struggles to keep his face calm as he frantically tries to remember every call he's made since the beginning of April.

Beads of sweat start to form on his forehead as Kane calmly reaches into his briefcase, pulls out a tape player. The agent sets it down on the coffee table between them and tells Levine to pay close attention. Levine listens incredulously as his own voice emanates from the speaker. Levine listens incredulously as his own voice emanates from the speaker. It's a recording of a phone call he made on the same night he and Tony Resco went to dinner at the Standard Club. On the call, Levine describes the kickback scheme to one of his friends with alarming specificity and says that Resco has given him the green light. The tape is damning, and Kane makes it clear that the FBI has many more just like it. Swallowing, Levine looks up and asks Kane if they're going to arrest him now.

Kane only smirks, explaining that if the plan was to arrest him today, they would have done it already. What the FBI is really hoping to get from Levine is cooperation. Kane explains that in the grand scheme of things, Levine is a relatively small fish, but if he can help the FBI catch a big fish, they may look favorably on him come sentencing time. Levine knows the agents must want to use him as bait to get to Resco, who's higher up in the Blagojevich administration. But Levine isn't ready to betray his newest and most lucrative associate. So for now, he decides not to say anything to the FBI.

The agents agree to leave and head for the exit. But before Levine can close the door behind them, Kane turns and promises they'll be back. And next time, they won't let Levine off the hook so easily. In the days after his unexpected visit from the FBI, Stuart Levine begins to withdraw from the world of politics. He's so shaken by the experience that he quietly steps down from his prized state board appointments and looks the other way when subpoenas start arriving on the desks of his former fellow board members. Many of these board members were appointed by Governor Rod Blagojevich, so it's not long before Tony Resko catches wind of an impending scandal. But at first, Resko isn't that worried. He knows he could end up

in hot water if Levine decides to cooperate with the feds. It would be easy for Levine to finger Resko as one of the co-conspirators in the TRS kickback scheme. But he doesn't think Levine will talk. But then, when the news comes out that the FBI has been tapping Levine's phones, Resco does start to get nervous. Resco has always been careful not to discuss certain business over the phone, but he decides to replace his cell phone and install bug detectors in his office just in case. It's a smart move because the FBI is onto Resco. They've come to believe that there's a rogue ring of corruption

inside the Blagojevich administration. They can't yet tell if the governor is aware of it, but they've opened a formal investigation to look into the question. They're calling it Operation Board Games, after the state boards through which Stuart Levine has been running his schemes. And they're starting to question the people implicated on the Levine tapes, beginning with an influential political fundraiser named Joseph Kerry. Kerry isn't part of Blagojevich's inner circle,

and he has a spotless reputation among the Democratic Party's elite, having been involved in every presidential campaign since 1980. Most recently, he helped Al Gore nearly win the 2000 election. But in 2002, two things happened that changed Kerry's life for the worse. First, his beloved wife died of cancer, and then he met Stuart Levine. The FBI knows that Levine roped Kerry into his TRS scheme, and in the fall of 2004, they decide to pay Kerry a visit to ask him about it. At first, Kerry dodges their questions, just like Levine had. Then he tries to appease the investigators by handing over a few select documents. But Kerry's half-cooperation isn't cutting it, so the U.S. Attorney's Office

decides to deploy one of their most effective weapons, a fierce lawyer named Reed Scharr. Scharr is exceptionally smart and driven by a rigid sense of right and wrong. He also has a reputation for intimidating people and getting results. And at first, when Scharr leans on Kerry and pressures him to cooperate more fully, his tactics seem to work. Kerry agrees to turn witness against the Blagojevich administration in exchange for avoiding jail time. But Scharr senses that Carey is still dragging his feet and knows more than he's letting on. So in early 2005, he summons Carey to his office for a more intense round of questioning.

Carey arrives dressed in an elegant pinstripe suit, and Scharr leads him down a hallway into a nondescript conference room, and then closes the door. Char has selected this room for the occasion. It's bare bones, just a chipped old conference table and mismatched folding chairs. Char wants to send Carrie a clear message that despite his wealth and influence and pinstripe suit, he can't expect any special treatment. Char sits down and gestures to a chair at the other end of the table. Have a seat, Joe.

Well, where would you like me to sit? Anywhere's fine. I'm glad you've decided to help us out, Joe. You're facing serious prison time, and this is the right decision. Yeah, so you said. I know it's been a hard couple of years since your wife died. I'm sorry about that. But it's no reason to make the next few years any harder. Well, I've already agreed to cooperate. So let's just get going, shall we? All right, you know the drill. I'm going to ask you some questions and I want you to answer honestly. Understand? I understand. Okay, first question. In 2003, you helped organize a fundraiser for Governor

Blagojevich in New York. Is that correct? Yes, that's correct. But it wasn't something I wanted to do. I've said no every other time they've asked. Why did you say yes this time? I guess they just wore me down. And it wasn't because you were watching all of Blagojevich's people get rich and you wanted to get in on the action? I am nothing like those people. No. You think that being friends with Al Gore makes you better than them? I'll tell you it doesn't. You all just have to make a buck and know it.

And what? You think we should just excuse your bad behavior because you're a widower? Char watches as suddenly, Kerry deflates. He just sits there, staring down at the table with an empty look in his eyes. For a moment, Char worries he might have gone too far. In retrospect, maybe I shouldn't have brought up your wife. No, it's fine. But you have to understand that my involvement in the whole TRS thing,

that was a mistake, the biggest one of my life. And I promise you, I am not like those other low lives the governor surrounds himself with. Well, I'd love to believe you, but you need to prove it. I know you did a bit of fundraising for Blagojevich in 2003. Yes, I threw a fundraiser. So tell me about it. Take me back to 2003, the day of the fundraiser. All right. The event was in New York, so Stuart Levine invited me to fly there with him and Blagojevich, a few of the governor's aides, including his fundraiser, Chris Kelly. I agreed, and we all took off for New York. And this was on Levine's private jet.

That's right. And once we were in the air, Blagojevich started going on and on about how he wants to be president. Hold on. Blagojevich is planning to and on about how he wants to be president. Hold on. Blagojevich is planning to run for president? Yes. And that's why they've been trying to convince me to help fundraise, because I've worked on other presidential campaigns. In this conversation, Blagojevich started talking about Bill Clinton's campaign, and how much easier it is to run for president as a sitting governor than as a senator.

Yeah? And then what? Well, he, look, the fallout of what I'm about to tell you could be, let me worry about the fallout. And remember, Blagojevich and his cronies are the reason you're here right now, Joe. But you have a chance to bring them to justice. So tell me what Blagojevich said next. He said that the reason it's easier to run for president when you're a governor is that you have the power to hand out state contracts. He said that as governor, he can award state business to people who help them and then go back to them later to ask for money. You're telling me that Blagojevich said he would exchange state contracts for campaign contributions.

That's what I understood him to mean, yes. contributions. That's what I understood him to mean, yes. Char leans back in his chair, letting Carrie's words linger in the air. If what Carrie is saying is true, then not only does Blagojevich want to run for president of the United States, but he intends to finance his campaign with kickback schemes. Char wraps up the interview and walks Carrie out of the building. He tries to keep his stern demeanor in place, but inside, Schar is jubilant. This is the moment he's been waiting for, ever since he first started investigating the governor's inner circle. Because for months, he and his fellow investigators have believed that Blagojevich

was the real shot caller behind the corrupt members of his administration. They even have Blagojevich associates on tape referring to a co-conspirator they call the Big Guy. But it just wasn't enough. They didn't have anyone implicating Blagojevich by name. But now, thanks to Joseph Carey, they do. And it's going to be up to Schar and the FBI to find hard evidence proving what Carey says about the governor is true. That the Big Guy at the center of their investigation is none other than Rod Blagojevich himself. 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, Sean Diddy Combs. Diddy built an empire and lived a life most people only dream about.

Everybody know ain't no party like a Diddy party, so. Yeah, that's what you said. 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+. 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. In early 2005, the U.S. Attorney's Office and the FBI are hot on the trail of Illinois Governor Rob Blagojevich. They've learned that the governor might be planning to raise campaign money illegally, all so he can make a bid to be the president of the United States. But the feds are still a long way from making any real moves against Blagojevich. If they want to arrest him, they're going to need more than allegations and hearsay.

If they want to arrest him, they're going to need more than allegations and hearsay. But while the federal investigators continue to search for proof that the governor knows about his campaign's backroom dealings, Blagojevich continues to brand himself as a political reformer. Blagojevich wants to be seen as the kind of leader who won't stand for corruption. It's all part of the image that helped him get elected in the first place. So in order to protect and cultivate that reputation, Blagojevich decides to sever ties with the man who helped him get his start in politics, his scheming father-in-law, Alderman Richard Mell.

Blagojevich and Mell have been at odds for years now, dating back to when Blagojevich was an Illinois state representative and his colleagues in Springfield nicknamed him Representative Son-in-Law. state representative, and his colleagues in Springfield nicknamed him Representative Son-in-Law. Ever since then, Blagojevich has resented Mel for undermining his image as a self-made man, and in turn, Mel has felt increasingly underappreciated by Blagojevich. Finally, in early 2005, the governor's ongoing tiff with his father-in-law comes to a head. It starts when Blagojevich hears a rumor about one of Mel's family members, a distant cousin who runs a landfill outside of Chicago. Supposedly, this

cousin had been telling waste haulers that they can dump illegal waste there, all while bragging about being related to the governor of Illinois. The cousin denies any wrongdoing, but Blagojevich is furious. This is exactly the kind of rumor that could be damaging to a governor claiming to be a reformer. So in January 2005, Blagojevich abruptly shuts down the landfill. Mel is on vacation in Florida when he hears the news, and while he's always had a quick temper, Mel's rarely been this angry. And as he paces around the sunny kitchen of his winter Florida rental, his thoughts turn to vengeance. Without pausing to reconsider, Mel picks up the phone and dials the number for a

reporter he knows in Chicago. Hello? Hey, it's Dick Mel. Oh, hi, Tick. What can I do for you? I'll tell you what you can do for me. I want you to pick up your pen right now and write down everything I say. Because I've got a big story for you and I want to make sure every word of it ends up in print. You got it? Sure. Hold on. Hold on. Hold on. Okay. Okay. I'm ready. I'm listening. All right. Good. Now you know I got him his start in politics. I mean, do you think he'd ever have a chance without me?

No, no, no. If it wasn't for me, he'd be some mediocre attorney who'd know what he's ever heard of. And you'd think he'd be grateful, but no. Instead, he took my help and he spat on it. He's got no sense of loyalty, that kid. And after all these years, he throws me under the bus. But he'd do that to anyone, I guess, if it helped his career. Dick, hold on. Slow down. I don't know who you're talking about.

And now he's taking my daughter away from me, too. Patty won't even talk to me. He's destroying my family. I tell you, it's like he's putting a stake through my heart. Right through my heart. My Patty, she's got brains, but also blinders on. You know, she's going to wake up one day and see him for what he is. Someone who doesn't care about anyone but himself. Hey, hey, Dick, I can tell you're upset.

For my sake, you need to slow down. Tell me exactly who we're talking about. It sounds like you're talking about Rod. Yeah, that arrogant kid, my son-in-law, the one who keeps telling everyone he's all anti-corruption or whatever. And look how he's abusing his power. So we are talking about Governor Blagojevich? Of course we're talking about Rod. Are you not listening? He's on a power trip. He shut down the landfill my wife's cousin runs, just to spite me.

And I have nothing to do with that landfill. And now he's using the governorship to carry out a personal vendetta against me. It's all about me. But I'm going to show him. He thinks he can smear my name all over the front page of the papers? Well, I can do the same. Okay, Dick, I hear you. I'm getting it. But if you want me to print something, you're going to need to give me some actual information. I can't just write your personal grievances.

Oh, I'll give you some information. Did you know that one of his fundraisers, that jerk Chris Kelly, he's trading appointments to state boards and commissions for money? Yeah, yeah, like checks for $50,000. Is that some actual information you'd like to talk about? Yeah, it could be. Are you saying... Ron is making it sound like I'm the bad guy. I put in all the hard work to help him make it big, and now that he has,

I'm like the old woman he's ditching for a new trophy wife. I should have listened to my wife when she begged me not to support him for governor. She said, you know how he is. And I did it anyways. Okay. Yeah, this is a lot. So can we go back to what you just said? Did you tell me that someone in the governor's inner circle is engaging in a quid pro quo scheme? Is that it? Dick? Mel was about to answer yes, but he catches himself. In all his ranting, he hadn't considered what a major accusation he was making against the Blagojevich administration. But he's been talking to this reporter on the record, and he can't take back what he said. So Mel quickly wraps up the

call and hangs up the phone. Then he sits down at his kitchen table and looks out the window at the beautiful Florida coast. But he isn't really seeing it. Mel is thinking about the next morning, when newspapers will hit the stands with headlines about a Blagojevich insider allegedly selling government jobs. It'll be another blow to his relationship with Blagojevich for sure, but more importantly, his daughter Patty. But it isn't in Mel's nature to apologize. So instead, he resolves to dig in and accept the consequences.

As Richard Mel expected, the news of his rift with Rod Blagojevich ends up all over the news, and Mel refuses to apologize or retract his statements for two long weeks. It's only when Blagojevich fundraiser Chris Kelly threatens him with a defamation suit that Mel finally agrees to recant his accusation about trading campaign donations for government jobs. But the damage is done. The relationship that defined so much Blagojevich's political career is over. And for Blagojevich, there might have been thoughts that this new distance from Mel would help protect his reputation. But instead, it has opened him up to even more scrutiny. Mel's accusations inspire

Cook County's top prosecutors to start their own inquiries into Blagojevich. The public seems to take notice, too. Later that month, a Chicago Tribune poll shows that a majority of voters don't want Blagojevich to have a second term as governor. But Blagojevich pays little attention to that poll, or, for that matter, to the job of governing. Instead, he continues to stew over the landfill incident, blaming his loose-cannon father-in-law for all of his problems, including the fact that the feds appear to be hot on his trail. Armed with Joseph Carey's tip that Blagojevich might try to trade government contracts for campaign contributions, and now Richard Mell's accusations, the FBI's investigation has been

circling closer and closer to the governor. But they still don't have anything they can pin directly on Blagojevich. So the FBI decides to shake the tree and see what happens. They ask for a meeting with Blagojevich himself, and eventually the governor's lawyers agree to let their client be questioned in person. So on March 16, 2005, FBI agent Daniel Cain finds himself in an elevator, watching the floor numbers tick by as he rises toward the offices of one of Chicago's oldest and most prestigious law firms. He and his colleague, Agent Patrick Murphy, are on their way to meet with the governor and the lawyers he's hired to represent him. Kane has been working

around the clock for months, and he's certain the governor is at the heart of the corruption ring he's been investigating. Now he's determined to catch Blagojevich admitting to it, but he knows it's not going to be easy. The governor's lawyers are the best in the business, and they've likely coached their client to evade the FBI's questions. Even without his lawyer's help, Blagojevich knows how to spin an answer better than most politicians. Still, Cain is confident in the skills of the man in the elevator with him.

Patrick Murphy is a high-ranking federal agent who's been supervising Operation Board Games. He's also highly trained in getting suspects to talk. So when the elevator door dings open, Cain confidently follows Murphy toward a glass-walled conference room where Blagojevich and his lawyers are waiting. Cain sits down in a sleek leather office chair and places a tape recorder on the table in front of him. He asks Blagojevich if he can record the interview, but the governor's lawyers tell him to put it away. Kane's annoyed, but he keeps his cool. He doesn't want to appear flustered or surprised. It's important that he and Murphy maintain the upper hand. So as Kane puts away his tape recorder, Murphy launches into the first set of questions. Kane looks to Blagojevich for any sign that the governor might be lying.

But for nearly three hours, Blagojevich is calm and jovial until Murphy starts asking about fundraising, and Kane notices Blagojevich shift ever so slightly in his chair. This could be the moment. Murphy asks the governor a question about his involvement in campaign fundraising,

and Kane listens in astonishment as Blagojevich tells him he doesn't pay much attention to it, preferring to keep a firewall between raising money and his job as governor. Murphy pauses and asks Blagojevich the question again. Murphy says he finds it hard to believe that any politician isn't paying attention to his campaign finances, but Blagojevich doesn't budge. He admits to attending a fundraiser or two, but he says he doesn't keep track of who donates or how much they give. Cain leans back in his chair and tries not to betray his feelings. He can't believe Blagojevich is lying to them about something so basic, something that isn't even illegal. And then

he realizes that this is their best chance to catch Blagojevich in an even bigger lie, realizes that this is their best chance to catch Blagojevich in an even bigger lie, one that could have legal consequences. Cain catches Murphy's eye and nods his head almost imperceptibly. Murphy understands the signal and asks the question they've been wanting to know the answer to for months. Is the Blagojevich administration trading state business for campaign contributions? The governor looks Murphy straight in the eye and tells him a bold-faced lie. Whatever state contracts are being handed out, he stays a million miles away. Cain lets out his breath slowly and signals to Murphy that it's time to end the interview. As they walk back toward the elevator, Cain realizes he feels lighter than he

has in a long time, because he's just watched the man they've been investigating for years make a fatal mistake. Blagojevich has been so careful not to admit any wrongdoing that he's done something just as damaging. He's lied to the FBI, which is a federal crime. Kane knows the FBI won't charge Blagojevich yet. They'll need a lot more evidence of corruption before they can justify arresting a sitting governor. they'll need a lot more evidence of corruption before they can justify arresting a sitting governor. But Blagojevich's lie will make their case against him even stronger. It's also filled Cain with a renewed sense of purpose. So as the elevator doors open and he follows Murphy out at the crisp march air, Cain can't wait to get back to work, finding the evidence he needs to expose Blagojevich and bring him to justice.

evidence he needs to expose Blagojevich and bring him to justice. 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. It's 2006, and once again, Rod Blagojevich is in the middle of a political campaign. His first term as the governor of Illinois is coming to an end, and he's running for re-election. But this time, Bulgojevich's campaign attracts less enthusiasm from voters. He's plagued by bad press and reports of potential corruption in his administration. Bulgojevich compensates by denying the allegations and out-fundraising everyone else on the ballot. He sails easily through the primary and seems on track to beat his Republican opponent in the general election. But then, someone uncomfortably close to him is indicted,

his friend and top fundraiser, Tony Rescoe. Rescoe is the latest catch in Operation Board Games, the FBI investigation that began by looking into the illegal activities of Stuart Levine. When the FBI appeared on Levine's doorstep back in 2004, he'd initially refused to cooperate. But when his lawyers explained that he was facing a life sentence, Levine changed his tune and started to offer information on both Resco and Blagojevich's re-election campaign. Now the feds have enough evidence to charge Resco with fraud. So in mid-October 2006, they summon Rescoe to appear in court. But then something surprising happens.

Rescoe doesn't show up. When the indictment comes down, Rescoe is not in Chicago. He's not even in the country. He's abroad, traveling in the Middle East on business. And when he doesn't show up to his first court date, rumors start to fly that he could be on the run. Rezko doesn't want to risk being labeled a fugitive by the federal government, so he decides to come home.

He boards a plane in Syria, bound for Chicago, and after a long flight, steps off the plane in O'Hare International Airport. Rezko walks slowly down the jet bridge. He's exhausted from the journey and is in no hurry to get home. While he was abroad, it was easy to pretend that the indictment was just a bad dream. But now, hearing the familiar sound of the icy Chicago wind, it all feels too real. And Resco knows what's coming. At some point, he'll have to surrender to authorities. But the scene that greets him as he emerges into the brightly lit airport terminal sends a chill down his spine. Assembled around the gate is a cadre of FBI agents blocking his way.

Rezko stops, dead in his tracks. It's as if a very bright spotlight has suddenly appeared, shining on him alone. For a moment, all Rezko can hear is the sound of his own blood pumping in his eardrums. He stands there, frozen, as one of the FBI agents steps forward and says something to him that he just doesn't register. Then the agent pulls a pair of handcuffs out of his pocket and starts to place them around Rescoe's wrists. As the FBI agents escort him away from the gate, toward the exit and the next phase of his life, Rescoe can't shake the thought that the federal investigation has gotten very big, much bigger than he realized. And it's only a matter of time before it engulfs his friend, Rod Blagojevich.

When Tony Resko appears in court, he pleads not guilty to the fraud charges against him and refuses to cooperate with prosecutors. Resko is defiant by nature, and part of him remains loyal to his former boss. But Blagojevich does not reciprocate this show of loyalty. Instead, the governor does everything he can to distance himself from his longtime friend. During a press conference less than a month before the election, Blagojevich tells the crowd of reporters that if the allegations are true, then Rezko lied to him and betrayed his trust. A few weeks later, on November 7th,

Blagojevich is re-elected. But with all the scandal surrounding his administration, his victory party is poorly attended, and his second term as governor is off to a rough start. Abandoned by most of his allies in the state government, Blagojevich struggles to get much legislation passed. He spends the next year focusing all his energy on fundraising and hardly ever goes to work. Then, in December 2007, another bomb drops. One of Blagojevich's closest remaining allies, Chris Kelly, is charged with tax fraud. Three months after that, Tony Rezco's case goes to trial. Rezco's lawyers try to pin everything on his co-conspirator Stuart Levine, but it doesn't work. Levine testifies against Rezco, as does Ali Atta, a Chicago businessman and former friend of Rezco's

who is also facing charges himself. Back in 2002, when Blagojevich was running for his first term as governor, Rezko had involved Atta in a pay-to-play scheme, promising Atta a state job in exchange for a $25,000 campaign donation. Atta paid up, and after Blagojevich won the election, Rezko kept his word. Atta was appointed president of the Illinois Finance Authority, as clear a case of pay-to-play as it comes. Eventually, Resco is found guilty on multiple counts. And in the summer of 2008, nearly two years after being arrested at O'Hare International Airport, Resco finally agrees to cooperate with federal prosecutors in hopes of receiving a reduced prison sentence. But the information Resco decides to share isn't damning enough

to propel the federal government's investigation forward. Operation Board Game starts to falter, and the investigators find themselves stuck in the same place they have been for years,

without enough hard evidence to arrest the governor. That's when the FBI decides to make its biggest move yet. In the middle of the night on October 2008, Agent Daniel Cain is sitting in a van on an empty Chicago street. He and his team of FBI agents are preparing to execute a covert operation.

But before they do, Cain wants to go over the plan one more time. So in review, first we're going to disable the alarm system. Then once we're inside, we're going to disable the alarm system. Then once we're inside, we're going to split up into teams. This is where silence and speed are going to be everything, folks. It's imperative that we get in and out as quickly as possible. The longer we take, the more likely it is we'll be discovered. The other agents stare back at Kane, some looking a little wide-eyed. This isn't the kind of operation they're used to. In a few moments,

they're going to break into the campaign headquarters of Governor Rod Blagojevich and plant listening devices all over the building. One of the younger agents speaks up. Sir, can I ask what happens if we do get caught? Do we need to come up with some kind of story, like we're political operatives or something? Agent, this isn't Watergate, all right? If you do everything exactly as I say, we won't get caught, all right? Now, does everyone have their equipment? Yeah. Yeah? Okay, good. I want microphones in every room. I want every single phone in that building to be wiretapped. We must not miss anything. We need to be able to listen and record all

of Blagojevich's conversations. The junior agent interrupts again. What are you hoping to hear once we get these bugs set up? Well, we can't know for sure, but I have a hunch we're going to discover that the governor is much more involved than he says he is in our investigations. You really think Blagojevich is dirty? I mean, he's the governor. Yeah, but when you're the governor of Illinois, all bets are off. Politics are done differently here.

How long have you been stationed in Chicago? A few months? Well, when you've been here as long as I have, you'll understand. We can't be sure exactly what we're going to find. But knowing what we know now, there's got to be more. We all ready? The assembled agents nod. Kane is confident he's impressed on them the importance of what they're about to do.

So he gives them the signal to disperse. Carefully and quietly, they infiltrate the governor's campaign headquarters. Ten minutes pass while the agents deftly move from room to room, planting bugs and wiretapping phones. Then, as quickly as they arrived, they pack up and leave. But before returning to the van, Kane stops for a moment to breathe in the cool midnight air. He's relieved, but there's another feeling beginning to stir in his stomach, too.

Nerves. Kane realizes that they may be on the verge of something almost unprecedented, bringing criminal charges against a sitting governor. From Wondery, this is Episode 3 of Rod Blagojevich for American Scandal. In our next episode, the FBI listens in while Blagojevich starts to plot his next big political move. Only this time, Blagojevich isn't just planning to run for higher office. He's going to try to take a shortcut to power, one that will eventually land him in handcuffs. filling out a survey at wondery.com slash survey. If you'd like to learn more about Rod Blagojevich,

we recommend the books Golden, How Rod Blagojevich Talked Himself Out of the Governor's Office and Into Prison by Jeff Cohen and John Chase, and A Just Cause by Bernard Seraki, as well as the archives of the Chicago Tribune. 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 by Lindsey Graham. This episode is written by Kat Schuchneck, edited by Emma Cortland. Our senior producers are Gabe Riven and Andy Herman. Executive producers are Stephanie Jens, Jenny Lauer Beckman,

and Marsha Louis for Wondery.