REDACTED: Declassified Mysteries with Luke Lamana - The Iran Contra Scandal

Episode Date: March 18, 2025

President Ronald Reagan faced two major problems in 1981. A Communist revolution had taken hold in Nicaragua. And in Lebanon, militants were holding American hostages. Reagan's team created a secret plan to solve both issues at once. It was highly illegal and it turned into one of the most shocking scandals in American history. The story connects unlikely dots: weapons, hostages, rebels, and lies.Be the first to know about Wondery’s newest podcasts, curated recommendations, and more! Sign up now at https://wondery.fm/wonderynewsletterFollow Redacted: Declassified Mysteries with Luke Lamana on the Wondery App or wherever you get your podcasts. You can listen to new episodes early and ad-free on Wondery+. Join Wondery+ in the Wondery App, Apple Podcasts or Spotify. Start your free trial by visiting https://wondery.com/links/redacted/ now.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wondery Plus subscribers can listen to redacted, declassified mysteries early and ad-free right now. Join Wondery Plus in the Wondery app or on Apple podcasts. On the afternoon of October 5th, 1986, Eugene Hassenfuss crouched in the back of a rickety cargo plane. The 45-year-old CIA operative peered out the tiny window at the vast green jungles of Nicaragua below. Haasenfuss sat squeezed in the back of the plane.

He was on board with one other man and the plane's pilot and co-pilot, and now it was time to make their drop. Haasenfus looked around at the wooden pallets loaded with rifles, grenade launchers, combat boots, and jungle knives. Then he pushed the cargo door open and began kicking supplies down into the jungle. Then he felt a jolt. Haasenfus steadied himself and peeked through the open door. Panic rose in his gut as he watched part of the wing disintegrate. Then he saw the right engine burst into flames. That's when Hasenfos knew they'd just been hit. As chaos erupted around him, Hasenfos scrambled to put on the parachute that he'd secretly brought.

He tightened the straps and jumped. His parachute flapped open as the wind picked up. Haasenfus turned to look at the burning plane as it plummeted towards the ground. He knew the others only had mere seconds until they fell to their deaths. The plane was not supplied with parachutes, but Haasenfuss had brought his own. He wished his colleagues had done the same. As he floated down towards the jungle, he looked away from the plane, unable to watch, but he could hear the terrible explosion as it crashed to the ground. He tried to focus instead on the canopy of trees below him. He braced himself for impact and tumbled through leaves and branches. below him. He braced himself for impact and tumbled through leaves and branches. A moment later he found himself on the rich soil, grateful to be alive. But he had no

time to relax because now he was in enemy territory. He set out into the dense forest, hoping to find a place to rest for the evening. As night fell, he turned his parachute into a makeshift hammock by tying it between two trees. But Hasenfuss was too nervous to sleep much, knowing that the troops who shot down his plane would certainly be looking for him. Eventually, he dripped it off, and after what felt like just minutes of sleep, he was startled awake by the feeling of cold metal on his forehead. He looked up to see a soldier pointing a gun at him. The soldier stared straight back at him and said, what now Rambo? Hasenfuss tried not to panic. He realized that he was now a prisoner

of the Sandinistas, the communist revolutionaries who had taken over Nicaragua. And considering the reason he had come here, there was a good chance that they would never let him leave. Scam Factory, the explosive new true crime podcast from Wondery, exposes a multi-billion dollar criminal empire. Every suspicious text you ignore masks a huge network of compounds where thousands are held captive and forced to scam others under the threat of death. Follow Scam Factory on the Wondery app or wherever you get your podcasts.

From Balan Studios in Wondery, I'm Luke Lamanna, and this is Redacted – Declassified Mysteries, where each week we shine a light on the shadowy corners of espionage, covert operations and misinformation, to reveal the dark secrets our governments try to hide. This week's episode is called the Iran Contra scandal. From the moment he took office in 1981, President Ronald Reagan had it in for the Sandinistas. The group had taken over after the 1979 Nicaraguan Revolution and established a communist government. Reagan despised communism and he was especially anxious about it spreading so close to the United States. He publicly endorsed an opposing militia called the Contras, or counter-revolutionaries, to

overthrow the Sandinistas. But when he asked for federal funding to support them, Congress declined. They were so worried about getting involved in another Vietnam-like quagmire that they passed a law explicitly banning Reagan from providing aid. But that didn't stop his administration from trying. Behind the scenes, Reagan's top aides began secretly

and illegally sending money and supplies to the Contras, including through planes like the one Eugene Hasenfuss had been on. Meanwhile, Reagan was also dealing with another international crisis on the other side of the world. Militant groups in the Middle East had been kidnapping American citizens.

More than 50 hostages were taken during the Iran hostage crisis Militant groups in the Middle East had been kidnapping American citizens. More than 50 hostages were taken during the Iran hostage crisis in 1979. And Hezbollah, an Iranian-backed terrorist group, had continued to kidnap Americans during the 1980s. The U.S. government needed to find a way to get them out. Eventually, top aides to President Reagan realized they could solve their Sandinista problem and their Hezbollah problem at the same time. They could arrange secret weapons deals with the Iranians to free the hostages and use

the profits from those deals to fund the Contra forces. It would have to be secret, of course. If Congress or the American public knew what was happening, they would be outraged. But the potential payoff was so huge, the Reagan aides couldn't resist. Unfortunately for them, when Eugene Hasenfuss was shot down, the whole bizarre plot began to unravel, triggering the biggest presidential scandal since Watergate. On June 28, 1985, 47-year-old Robert McFarland walked to the podium in a high school library in Illinois. McFarland was a proud former Marine who had served two tours of duty in Vietnam.

But today he was there as President Ronald Reagan's National Security Advisor. He needed to meet with families whose relatives had recently been taken hostage by terrorists linked to Hesbullah. They were on a plane to Rome that had been hijacked. It was the latest in a series of alarming hostage situations. The Iranian-backed militant group had kidnapped seven other Americans in separate incidents over the previous year. But McFarland was feeling confident as he stood in front of the group and explained

that President Reagan was on the verge of making a deal. One hostage from the plane had already been killed, but there were 39 other Americans still in captivity in Lebanon who seemed poised for release. McFarland looked around the room and noticed one family seemed completely unmoved by his remarks. He tried to avoid eye contact and focus on the others. But when President Reagan joined him at the podium, one member of the family finally spoke up. He demanded to know why their relative wasn't a priority, like the people from the plane hijacking. He had been seized by gunmen in Beirut five months earlier in a totally separate

incident and the family hadn't heard anything since. They wanted to know what kind of deal the president was negotiating for them. A surprised Reagan stood by silently. McFarland knew he was totally unprepared for the criticism. In truth, Reagan hated the idea of negotiating with terrorists. He'd made it a central pillar of his administration's policy. But after hearing about what happened to the 39 hostages who were abducted from the plane, Reagan decided he had no other choice than to make a deal to get them out. But now, as word got out, the families of the other hostages expected their relatives could be saved too. McFarland felt beads of sweat forming on his forehead as Reagan tried to reassure the angry

man and his family. The president sounded unconvincing as he told them, ''Everything that can be done is being done. The family didn't buy it.'' McFarland watched helplessly as they went back and forth with the president for the next half hour. He could see Reagan squirming more and more as the minutes ticked by. Eventually, an aide apologized and announced the President was needed elsewhere. He quickly

ushered him to a nearby office to escape the grilling. McFarland followed at Reagan's heels. Once they were alone, the President turned to him, a grave look on his face. McFarland already knew what he needed to do. The president was an impressionable and sentimental man. He didn't get worked up about policy debates or technical jargon. He led with emotion. And although Reagan had not paid much attention to the hostages in Beirut over the past several months, he now saw its impact first-hand.

McFarland understood that from now on, getting the American hostages to safety would be one of Reagan's top priorities. And as his national security advisor, it would fall on McFarland to find a way to make it happen. In mid July, 1985, a few weeks after the encounter at the Illinois School, McFarland cautiously entered President Reagan's hospital room. Reagan was 74 years old and recovering from surgery to remove a cancerous tumor.

While the president's other aides had already seen him, Reagan's staff kept McFarland waiting four days before he was allowed to come in. The whole thing made McFarlane feel like a second-class citizen in the president's cabinet, which in some ways he was. McFarlane was a career military man, not a wealthy business executive like Reagan's other cabinet members, and he always felt like he was fighting for respect. Still, McFarland always reminded himself that he played an essential role in the president's administration. At this moment, McFarland had important business to discuss with the president. As he approached Reagan's bedside, the president smiled, and McFarland

felt relieved. After assuring McFarland that he was doing well, the president asked what was happening with the hostages in Beirut. McFarland said that thankfully, the 39 hostages who had been snatched off a plane had all been released, but the seven others that had been kidnapped earlier were still being held in Lebanon. Reagan stressed that McFarland needed to get the rest of them out right away. McFarland told Reagan that he had found someone who could help broker a deal. He was an Iranian arms dealer named Manuchar Ghorbanifar.

The man had connections to high-ranking Iranian officials who worked closely with Hezbollah. These Iranians could convince Hezbollah to let the hostages go, but America would have to give them something in return. The Iranians wanted 100 US anti-tank missiles. The president was thrilled by the news of a potential deal. He told McFarland, gee, that sounds pretty good. McFarland was encouraged by the president's reaction, but still nervous about moving forward with negotiations. That's because McFarland didn't trust the Iranians or Ghorbanifar.

Iran had been an enemy of the United States since the 1979 revolution that brought Islamic extremists to power and led to the seizure of the US embassy in Tehran. Providing weapons to Iran was illegal. McFarland knew that if word leaked that the US gave them a hundred missiles, it would be a diplomatic nightmare. But if McFarland was being honest, making a deal to bring all the hostages home while also reopening a channel to Iran could be a huge win. The legendary diplomat Henry Kissinger was McFarland's mentor and hero. Negotiating something as important as a hostage release that also improved relations in the

Middle East would put McFarland's name in the history books alongside Kissinger's. But McFarland knew he was getting ahead of himself. He tried to discuss next steps with Reagan, but the president wasn't interested. As usual, he didn't want to know the details. He just wanted those hostages freed. And that was up to McFarland to figure out. McFarland's heart was racing as he entered the Oval Office to meet with the President in late August 1985.

He tried to tamp down his anxiety that had been building for weeks, but it was hard to stay calm when the hostage deal that Reagan wanted so much was on the verge of collapsing. Ghorbani Far, the arms dealer, had dramatically raised the price for freeing the hostages. Instead of 100 missiles for the Iranians, now he was demanding 500. As if that wasn't enough, McFarland had also been deceived. The Iranian officials couldn't recover all seven hostages from Hezbollah. They could only promise one. And it was up to McFarland to decide who would be saved. McFarlane was being asked to play God and decide which unlucky souls would remain locked up in some Beirut hellhole. He hoped the President might have some words of advice. McFarlane took a seat across from Reagan and

explained the situation. He told the President that the terms of the deal were constantly changing, and he didn't trust Ghorbanifar to get it all done. But Reagan was firm, they needed to find a way to get all of the hostages back. When McFarland left the Oval Office, his head was swimming with ideas, but none of them were good. McFarland decided he could no longer go at it alone on the Iran deal. He needed help. A few months later, in November 1985, Oliver North strode into his office inside the old executive office building across from the White House. The strapping 42-year-old Lieutenant Colonel was a Vietnam veteran and had joined the National Security Council a few years earlier,

and he had since worked his way up to Chief Staff Officer under McFarland. His office was stocked with the latest technology. North had computers and phone lines that gave him near-instant updates on U.S. covert operations. And now he was going to need it because McFarland had tapped North to figure out the Iran deal. In mid-September, he and McFarland had managed to secretly deliver hundreds of missiles to Iran to win the release of one hostage held by Hezbollah. But President Reagan remained adamant that they get the other six, too. And that required more U.S US arms shipments to Iran.

That's where North came in. North had recently lined up a second arms shipment for the Iranians, but when the cargo was about to take off on November 18th, the plane was stopped by international authorities and forced to return. Because the deal was secret, North couldn't exactly explain why the US government needed to get this plane full of weapons to Iran. So North frantically called his CIA contacts to see if he could use one of their planes. He knew that any CIA plane could fly out of the country without being stopped.

Luckily, his contacts had been able to help, and North spent the next few days arranging a new flight. It was supposed to arrive in Tehran today, November 25. Just as North reached his desk, his phone rang. He got word that the flight had landed and that the missiles were successfully handed off to the Iranians. North was ecstatic, even though he knew McFarland wouldn't be happy. North was ecstatic, even though he knew McFarland wouldn't be happy. McFarland had explicitly told him not to ship anything until the hostages were released, but North was eager to complete his part of the deal. Besides, he had more good news. As part of the exchange, the Iranians paid him more than $850,000, and he planned to use that money to fund another covert operation he had been working on. For the last year, North had been drumming up support for the Contras in Nicaragua.

This included getting them supplies, weapons, and money. North was convinced that if the Contras prevailed, it would show the world that the Americans had regained control over the fight against communism despite the disaster in Vietnam. North prided himself on his unwavering patriotism, and he wanted to help Reagan achieve two of his biggest goals, releasing the hostages and supporting the Contras, even if that meant bending a few laws. But in North's eagerness to get the arms shipment to Iran, he'd made several critical errors.

His first was ignoring McFarland's warning to hold onto the weapons until the hostages were free. After Ghorbanifar got the weapons, the six remaining hostages still weren't released, leaving the U.S. without any leverage to finish the deal. Second, North had gotten the CIA directly involved in the arms sale, which was also illegal without a written order from the president. Reagan didn't even know that North had used a CIA plane to deliver the weapons. And when the deputy CIA director learned that his plane had ferried American

arms to Iran, he was furious. He demanded that Reagan sign a retroactive order to make it appear that the action had been approved. Finally, when it came to the Contras, as with Iran, North was explicitly violating U.S. law. Although Reagan publicly supported the Contras fight, Congress had banned his administration from providing them with any sort of military aid. And if Congress found out, not only would North's career be over, but the president who talked tough about refusing to negotiate with terrorists would be revealed as a massive hypocrite. In the 1950s, America was glued to its television screens, watching contestants battle it out for big money on quiz shows like 21 and the $64,000 question. But behind the scenes, producers were feeding answers to the most popular contestants to keep audiences hooked.

Hi, I'm Lindsey Graham, the host of Wondery Show American Scandal. We bring to life some of the biggest controversies in U.S. history. Presidential lies, environmental disasters, corporate fraud. In our latest series, quiz shows dominate 1950s TV until a disgruntled contestant blows the whistle and reveals that the shows are rigged. Follow American Scandal on the Wondery app or wherever you get your podcasts. Experience all episodes ad free and be the first to binge the newest season only on Wondery Plus. You can join Wondery Plus in the Wondery app,

Apple Podcasts or Spotify. Start your free trial today. Hey, I'm Mike Corey, the host of Wondery's podcast Against the Odds. In each episode, we share thrilling true stories of survival, putting you in the shoes of the people who live to tell the tale. In our previous season, it's the winter of 1925, and a diphtheria outbreak is spreading fast in the remote town of Nome, Alaska. Children are at a greater risk, and a few have already died. But Nome's supply of medicine is dwindlingling and the town is difficult to reach in the winter. The only option is for a team of mushers to form a dog sled relay across 700 perilous miles of Alaskan wilderness and hope that

they can get the medicine there in time. In a recent episode, I talked with Amazon Books editor Al Woodworth about her top recommendations for books about survival. Follow against the odds wherever you get your podcasts and dive deeper into thrilling stories of resilience and survival with curated book recommendations from the Amazon Books editors at www.amazon.com slash A-T-O Books. Less than a week after the weapons shipment, Robert McFarland drove up a bumpy, winding road. He was headed to President Reagan's ranch near Santa Barbara, California. McFarland had been feeling uncertain about his role at the White House for some time

now, and Oliver North's recklessness pushed him over the edge. McFarland had trusted North, and in return North had completely undermined him. McFarland often thought about the American hostages rotting away in captivity for months. He knew the more time that passed, the less likely they were to survive, but he was increasingly pessimistic that he had the power to set them free. Although he was Reagan's national security advisor, McFarland felt like he didn't have any real authority. He couldn't shake the feeling that the whole time he had worked for the president, Reagan

had never taken him seriously. That's why this morning, McFarane had decided he was going to resign. But it was Thanksgiving weekend and he didn't want to disturb the president. So McFarlane pulled up to the ranch and got out of his car. His steps were heavy with defeat as he walked to a military aid stationed outside the ranch. McFarlane couldn't look the aid in the eyes as he handed over his letter of resignation. The next morning, McFarland sat with Reagan at his top floor suite at the Sentry Plaza Hotel in Los Angeles. McFarland wondered whether the president would at the last minute beg him to stay.

But just moments into their conversation, Reagan accepted his resignation, no questions asked. The entire discussion lasted just a few minutes. As McFarland walked out of the suite, his stomach turned. He couldn't believe what he'd just done. About a week later, on December 4th, 1985, Oliver North sat at his desk. He pulled out a pen and paper to write his first memo to his new boss, John Poindexter, the bookish, pipe-smoking admiral who succeeded Robert McFarland as national security advisor. North was glad to see McFarland go.

Not only had he held North back, but at one point, he'd recommended that North be transferred out of the White House. McFarland had said that North was becoming, quote, too emotionally strung out. So North saw McFarland's exit as an opportunity. Plus, since it was Poindexter's first day on the job, North could tell he was already struggling to understand the hostage operation. North smiled to himself. He saw this as a good thing thing too. With little supervision from Poindexter, he could take full control of the hostage deal and the Contra situation. And without McFarland constantly looking over his shoulder, North was free to run things the way he saw fit.

His first order of business was to get Poindexter to agree to yet another arms deal with the Iranians. While their middleman Ghorbani Farr had been difficult to work with, North still believed they could strike a deal with him to help release the hostages. But despite Poindexter's lack of experience with negotiations, North knew he still had an uphill battle convincing his new boss. North got up from his desk and paced around his office, thinking. He paused in front of his window and gazed out at the White House. Then it hit him.

He knew the one thing Reagan feared the most, failing the American people. If North made it seem like the safety of the entire country was at stake, Poindexter wouldn't be able to turn him down. North rushed back to his desk and continued writing his memo. In it, he insisted that if they didn't make one more try at a weapons deal to free the hostages, they would probably be killed. He also added that they risked unleashing another wave of Islamic extremist terrorism if they didn't act. It worked. In one of his first official actions, Poindexter gave North the go-ahead to strike another

deal. North was smug with success. He got to work arranging it right away. The next morning in the Oval Office, North watched as Poindexter gave the President his first morning briefing as national security advisor. Then, about halfway into the conversation, Poindexter handed Reagan another document. It was the retroactive order Reagan needed to sign for the CIA. After getting entangled in the last illegal shipment of weapons to Iran,

the CIA was trying to deflect responsibility from delivering the arms aboard their plane. The document described the deal as an exchange of arms for hostages, but did not specify the Iranians paid for the missiles or that the money was going to the Contras in Nicaragua. It also included an unusual clause, one that stated the CIA didn't want Congress to know about the order. North knew the document was a ticking time bomb, both politically and legally, because it was completely misleading. Still, the president signed the document on the spot.

About six months later, on May 25, 1986, Robert McFarland came out of retirement for one last deal. Since he was the one who had started the negotiations with Iran and Ghorbanifar, Poindexter's national security team thought it made sense for McFarland to fly to Tehran with Oliver North to negotiate directly with the Iranians. Over the last few months, McFarland

had watched from the sidelines as North continued to defy Congress, sending aid to the Contras and more weapons to Iran. And while McFarland disagreed with many things North did, he felt that he had to help finish what they started. At this point, some of the hostages had been in captivity for more than two years, and every day they were held was another stain on America's ability to protect its own. But North had not succeeded in freeing anyone, and worse, another hostage had died. William Buckley, the CIA station chief in Beirut, had been tortured for months by Hezbollah,

and became so ill that he died. Seeing an opportunity to send a message to the U.S. about their seriousness, Hezbollah and became so ill that he died. Seeing an opportunity to send a message to the US about their seriousness, Hezbollah sent a photo of his corpse to the CIA. Still, McFarland was cautiously optimistic that an in-person trip to Tehran would be the final step of these drawn-out negotiations. McFarland's group first traveled to Tel Aviv, Israel. There they boarded an unmarked plane loaded with weapons. The Americans had also prepared an eight-hour intelligence briefing for the Iranians and

a document outlining the terms for improved relations between their two countries. For McFarland, the document was the most important part of the whole trip. The U.S. hadn't sent a delegation to Iran since the hostage crisis of 1979, when Iranian students seized the embassy and detained more than 50 Americans. But McFarland wasn't just there to negotiate a hostage deal. He hoped to usher in a new era of more peaceful relations with the region. But when they landed in Tehran, McFarlin could immediately tell something was wrong. They waited on the tarmac for an hour, but no one came to greet them. Eventually, Ghorbanifar appeared and they were driven to the Tehran Hilton,

where they waited several more hours. McFarland was getting anxious. Ghorbanifar had promised them a meeting with Iran's president, prime minister, and the speaker of parliament. Now McFarland wondered if it had all been a lie. Finally he heard a knock on the door, but it wasn't the higher-ups they'd been promised. It was some low-level officials without any real authority. McFarland realized this trip wasn't going to be the groundbreaking affair he'd envisioned, but he knew he still needed to do his best to get the hostages out.

So, McFarland and North tried to work with the Iranians who had shown up, but it quickly became clear that they weren't on the same page. The Iranians wanted their weapons before telling Hezbollah to release the hostages. But McFarland and his delegation wanted the hostages first. Neither side was willing to compromise. McFarland now understood that Ghorbanifar had lied to everyone. He had promised each side something, but hadn't communicated those expectations to the other side. To McFarlane, it seemed like Orbonifar hoped that simply getting everyone in the same

room would be enough to produce an agreement. Then he could take his usual cut of the profits and walk away. Now here they were at a stalemate. McFarlane was furious. Not only they were, at a stalemate. McFarlane was furious. Not only was the deal at a breaking point, but there was a very good chance he and his delegation were in danger if the deal collapsed. McFarlane remembered the CIA had given North cyanide pills to bring along, just in case. He prayed they wouldn't have to use them. McFarland considered his options. After a few minutes he returned to his hotel room and locked himself inside.

He told the group he wasn't coming out until the Iranians made concessions. For much of the time he was in Tehran, McFarland stayed in his room while North pleaded with the Iranians, but they didn't budge. Finally, on May 28th, McFarland told North and the others that they were leaving. After several days, the talks had gone nowhere, and the longer they stayed in Tehran, the more they put themselves at risk. North tried to talk him out of it, but McFarland was firm. That afternoon, they flew back to Tel Aviv and on to Washington, D.C. When they arrived back in the United States, North pulled McFarland aside.

He was smiling, which annoyed McFarland. North said that while they couldn't pull off the deal, at least they were making progress on Nicaragua. He told McFarland that they had been using the money from the arms deal to support the Contras. McFarland's blood boiled. For months now, he'd regretted giving North so much power over the negotiations. It was clear North was reckless. But McFarland knew all these covert operations would come to light eventually.

And when that happened, Reagan would be the one to pay. After the disastrous trip to Tehran, Robert McFarlane retreated back into retirement, but Oliver North wasn't ready to give up. He found an additional contact in Iran. Before long, North had come up with yet another deal to release the rest of the hostages in

exchange for more weapons. And it seemed like this time the Iranians were ready to hold up their end of the bargain. That's because the Iranians needed weapons more than ever. The country had been at war with neighboring Iraq since 1980, and all the fighting had depleted Iran's stock of weapons. The U.S. suddenly looked like Iran's best hope to rearm. But then, in October 1986, the plane carrying Eugene Hasenfuss was shot out of the sky over Nicaragua and he was captured by the Sandinista government.

The Sandinistas made Hasenfuss appear at a televised news conference where he identified himself as a U.S. citizen. After that, American news outlets started digging into what was going on in Nicaragua. And despite the Reagan administration's insistence that they weren't involved in any military operations in the country, reporters quickly uncovered the truth. Haasenfuss had been hired by the US government to help transport supplies to the Contras, working closely with Oliver North. Then, an Iranian newspaper broke the news that McFarland and North had visited Tehran.

This led to more questions about what was going on, and whether the US was providing weapons to Iran in exchange for hostages. The situation was turning into a public relations crisis. The whole mess reeked of a cover-up. And if Reagan couldn't find a way out of it, he'd be looking at his own Watergate. sailing from Miami to the Bahamas on Wondry's first ever True Crime Cruise aboard the Norwegian Joy. Aaron and I will be there to chat, hang out, dive into all things true crime, and we're thrilled to be joined by some familiar voices in the true crime podcasting world. Surti and Hannah from Red Handed, Sashi and Sarah from Scam Fluencers, and Carl Miller from Kill List.

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Book your cabin right now at exhibitseacruise.com. On the morning of November 10, 1986, a month after Haasenfuss was shot out of his plane, John Poindexter entered the Situation Room. He and the rest of Reagan's cabinet were meeting with the President. They needed to figure out how they were going to weather this storm. Poindexter now realized that he had no idea what he was walking into when he had agreed to be the National Security Advisor. To him, it seemed like McFarland and North had made a complete mess of the Iran situation. And now it was Poindexter's job to clean things up. He listened as Reagan explained that he wanted to make a public statement. So far they'd kept quiet while the press criticized the administration.

Reagan insisted they needed to be clear that they had not bargained with terrorists or paid any ransom. After all, the Americans had not dealt directly with Hezbollah. Poindexter looked around the room. He knew this was a half-truth at best. While it was correct that North and McFarland hadn't directly negotiated with terrorists, they were dealing with fixers and arms dealers. And those people were dealing with terrorists. As Reagan finished, Poindexter skimmed through the documents in front of him. He was supposed to give an overview of the Iranian initiative,

which at this point most of the other cabinet members knew little about. He gave them a watered down picture of what was going on, misleading them with inaccuracies and distortions. But Poindexter could see that even this version of events shocked them. Some cabinet members became angry. They accused Poindexter of making a direct deal, giving weapons to an enemy of the U.S. in exchange for the release of the hostages. Poindexter didn't argue.

His silence said enough, and everyone in the room understood they couldn't reveal the truth to the American people. In the end, they decided that Reagan wouldn't hold a press conference. Instead, he would release a statement. After the meeting, Poindexter sat down at his desk and wrote up the announcement, including many of the lies he had told the cabinet. Then he sent the statement to the cabinet for approval. But not everyone approved. Some demanded that he change a section that implied

they had supported the president's decision to negotiate a hostage deal. Point extra side. Clearly, it would be difficult to get everyone on the same page. But if they kept arguing like this, they would never be able to help President Reagan avoid disaster. Three days later, Poindexter watched as President Reagan settled at his desk in the Oval Office. There were lights shining down on him and a camera trained on his face. The statement Reagan had put out wasn't enough to quiet the media or Congress. Facing a torrent of criticism, the president had no choice but to deliver a televised speech to the country about the Iranian arms deals.

Poindexter thought the president looked confident, and he suddenly felt grateful for Reagan's experience as a Hollywood actor. He was the great communicator, after all. If anyone could get out of this mess, it was him. Poindexter listened as Reagan explained that the charges leveled against his office were completely false. He insisted that the U.S. had not paid ransom to release the American hostages in Lebanon. And they weren't illegally doing business with the terrorists either.

Poindexter knew these were all lies. Still, he hoped the country would believe them. But over the next month, it became clear that the public didn't buy it. Reagan's approval rating plummeted, falling from 67 to 46 percent. Meanwhile, pressure was mounting for a full investigation into their dealings with Iran and Nicaragua. About a week later, on November 21, Oliver North rushed around his office. He and his secretary had been working around the clock altering documents.

They were trying to make them match the false version of events that North and Poindexter had created. As the media continued to report on the scandals, North had become increasingly frantic. He knew Congress would not agree with his methods, and when the dust settled, North would be held responsible for what happened. He'd accepted that he would become the Fall Guy, but he didn't want the President to go down with him. That morning, Poindexter had called him to warn that investigators would arrive at North's office any minute to gather evidence.

North's body thrummed with anxiety as he grabbed document after document and removed any mention of arms deals and aid with a pen. He and his secretary had managed to get through some, but North's deception had run deep. He realized they didn't have enough time to alter everything. North turned to his secretary with the clock ticking. He told her to shred as much evidence as possible.

Then he went to another room to do the same. Just then, two investigators from the Attorney General's office arrived. They telephoned North from the front desk, telling him to stay where he was while they searched his office. They didn't realize he had already removed documents and was busy shredding them. The investigators began rifling through his desk, looking for evidence that the weapons deals with Iran were truly done in exchange for hostages, and whether anyone above North approved them. The investigators pulled out document after document, but nothing seemed to miss.

Then, one of them spotted a folder. He searched through it and let out a gasp of disbelief. He slid the file over to his colleague. The document clearly stated that the money from the Iranian weapons deals was being diverted to fund the Contras in Nicaragua, something Congress had expressly forbidden. It was clear North's office was breaking the law. But this was the first time anyone realized that the Reagan team

had made helping the Contras and the Iranian hostage deal part of the same operation. Two different illegal activities had been bundled into one larger criminal affair. Now there was no doubt about it. The Reagan administration was in the center of a massive scandal. the center of a massive scandal. Nearly a year later, on July 7th, 1987, Oliver North approached the stand to testify before Congress in what would be known as the Iran-Contra hearings. As North addressed the packed hearing room, he took note of the cameras pointed at him.

The hearings were being aired on TV, and Colonel North, wearing his Marine uniform adorned with a chest full of medals, was prepared to give America a show. North said that he had misled Congress, but he defended his actions. As a Vietnam veteran, he said he firmly believed in the Contra's mission of fighting against communism. He explained that he saw them as freedom fighters, and he said that using funds from the Iranian weapons deal to help their cause was patriotic. North also admitted to shredding documents and altering official records related to the

scandal, but he maintained that he was only following orders. I readily admit that I was action oriented, that I took pride in the fact that I was counted upon as a man who got the job done. North wanted to stress that he had the American public's best interest at heart. He acknowledged that his methods involved breaking U.S. law, but he was motivated by a sense of duty and, most importantly, loyalty to President Reagan. I believe that these committee hearings will show that you have struck some blows. But I am going to walk from here with my head high and my shoulders straight because I am proud of what we accomplished.

I am proud of the efforts that we made and I am proud of the efforts that we made, and I am proud of the fight that we fought." As North wrapped up his testimony, he held his head high. He told the courtroom that he had no regrets. The Iran-Contra scandal left a stain on President Ronald Reagan's time in office. It exposed a glaring hypocrisy between his rhetoric The Contra scandal left a stain on President Ronald Reagan's time in office.

It exposed a glaring hypocrisy between his rhetoric and what his staff did behind closed doors. After the hearings, criminal charges were brought against 14 people in Reagan's administration, including Oliver North and John Poindexter North was convicted of obstruction of a congressional inquiry, destruction of documents, and accepting an illegal gratuity. Poindexter was convicted of one count of conspiring to mislead Congress, two counts of obstructing congressional inquiries, and two counts of making false statements to lawmakers. But, both of their convictions were later overturned. The judge hadn't accurately explained the crime to the jury and their Fifth Amendment rights may have been violated. Ahead of his trial, Robert McFarland was so riddled with guilt for his role in the cover-up that he

tried to commit suicide, overdosing on sleeping pills hours before he was scheduled to testify. But McFarland survived and eventually took the stand, where he took full responsibility for his actions. In 1992, after being defeated by Bill Clinton in the general election and losing out on a second term, President George H.W. Bush pardoned McFarland as well as four other administration officials of all wrongdoing. pardon McFarland, as well as four other administration officials of all wrongdoing. Independent counsel Lawrence Walsh, who led the investigation into the Iran-Contra scandal, called it the completion of the cover-up. As for Ronald Reagan, he is still widely admired for his staunch opposition to communism,

despite his handling of the Iran-Contra affair. By the time he finished his second term in 1989, Reagan had managed to rehabilitate his image. He left office with the highest approval rating of any president since Franklin Delano Roosevelt in the 1940s. The people at the heart of the scandal all emerged relatively unscathed. North went on to be a commentator and host for Fox News, while McFarland advised John McCain's 2008 presidential campaign.

As for Eugene Haassenfuss, he was tried in Nicaragua and initially sentenced to 30 years in prison for terrorism and other charges. But he was later pardoned and released, and moved to a small town in Wisconsin. But we're still left with the question, was all the lying in secrecy worth it? Well, not really. By the time Oliver North spoke at the Iran-Contra hearings, Hezbollah had released three out of the seven hostages. But then they took additional Americans captive.

By the end of 1986, there were, once again, seven hostages being held in Beirut. One was killed, but eventually the others were released. Meanwhile, the Contras never did overthrow the Sandinistas. Instead, the two sides signed a peace treaty in 1987 and held elections in 1990. So, it's hard to see how the arms for hostages deal achieved any of President Reagan's goals, and the lack of reforms after the Iran-Contra scandal left the U.S. vulnerable to similar scandals in the future, in which the President is able to continue defying Congress without consequence.

The Iran-Contra scandal became a marker of the decline of accountability in American politics that continues to this day. An era in which political figures seldom admit mistakes or pay for them. Follow redacted, declassified mysteries hosted by me, Luke Lamanna, on the Wondery app or wherever you get your podcasts. If you're looking to dive into more gripping stories from Ballin Studios and Wondery, you can also listen to my other podcast, Wartime Stories, early and ad-free with Wondery+. Start your free trial in the Wondery app, Apple Podcasts, or Spotify today. Before you go, tell us about yourself by completing a short survey at Wondery.com slash survey. From Ballant Studios in Wondery, this is Redacted, Declassified Mysteries, hosted by me, Luke Lamanna.

A quick note about our stories. We do a lot of research, but some details and scenes are dramatized. We used many different sources for our show, but we especially recommend the books Landslide, The Unmaking of the President by Jane Mayer and Doyle McManus, Iran Contra, Reagan's Scandal and the Unchecked Abuse of Presidential Power by Malcolm Byrne, and the documentary series Fiasco. This episode was written by Natalie Pritzofsky. Sound design by Ryan Patesta. Our producers are Christopher B. Dunn and John Reed. Our associate producers are Ines Reniquet and Molly Quinlan-Artwick.

Fact-checking by Sheila Patterson. For Ballen Studios, our head of production is Zach Levitt. Script editing by Scott Allen. Our coordinating producer is Samantha Collins. Production support by Avery Siegel. Produced by me, Luke Lamanna. Executive producers are Mr. Ballen and Nick Witters. For Wondery, our senior

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