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1 00:00:00,960 00:00:01,960 [narrator] New York City. [narrator] New York City.
2 00:00:02,230 00:00:04,770 [woman] Happy New Year! [woman] Happy New Year!
3 00:00:04,770 00:00:08,200 At the dawn of the 80s it was exploding with opportunity. At the dawn of the 80s it was exploding with opportunity.
4 00:00:08,900 00:00:11,540 [newsreader] Boom times, that's what the numbers signal today, [newsreader] Boom times, that's what the numbers signal today,
5 00:00:11,540 00:00:14,340 an economy that's on a roll in this country. an economy that's on a roll in this country.
6 00:00:14,340 00:00:18,050 A place to seek money, power, fame. A place to seek money, power, fame.
7 00:00:18,050 00:00:23,480 Amid the glitz and greed, five titans seized their moment. Amid the glitz and greed, five titans seized their moment.
8 00:00:23,490 00:00:29,490 But in 1986, we started to learn the very dark secrets behind their success. But in 1986, we started to learn the very dark secrets behind their success.
9 00:00:29,490 00:00:33,730 A striver from Detroit had transformed himself into a titan of Wall Street. A striver from Detroit had transformed himself into a titan of Wall Street.
10 00:00:33,730 00:00:35,660 [Ivan Boesky] You have to understand that I'm a professional. [Ivan Boesky] You have to understand that I'm a professional.
11 00:00:35,660 00:00:37,660 But his house of lies was about to collapse. But his house of lies was about to collapse.
12 00:00:37,670 00:00:41,800 [Bryan Burrough] Ivan knew once Levine started talking that he was dead. He was dead. [Bryan Burrough] Ivan knew once Levine started talking that he was dead. He was dead.
13 00:00:41,800 00:00:44,840 A real estate star had seemingly perfected the art of the deal. A real estate star had seemingly perfected the art of the deal.
14 00:00:44,840 00:00:47,640 But could not run his debts for long. But could not run his debts for long.
15 00:00:47,810 00:00:49,940 [Donald Trump] We'll talk about that later I suspect. [Donald Trump] We'll talk about that later I suspect.
16 00:00:49,950 00:00:52,780 The queen of the palace had turned meanness into a winning brand. The queen of the palace had turned meanness into a winning brand.
17 00:00:52,780 00:00:55,580 [Leona Helmsley] I'm a woman. I'm a tough business woman. [Leona Helmsley] I'm a woman. I'm a tough business woman.
18 00:00:55,580 00:00:57,480 But her subjects were about to revolt. But her subjects were about to revolt.
19 00:00:57,490 00:00:59,620 [Tovah Feldshuh] She had fired enough people, [Tovah Feldshuh] She had fired enough people,
20 00:00:59,620 00:01:05,660 acted in an imperial way, people were open for blood. acted in an imperial way, people were open for blood.
21 00:01:05,660 00:01:08,800 And as Gotham's new hero went after his biggest villains yet... And as Gotham's new hero went after his biggest villains yet...
22 00:01:08,800 00:01:11,630 [Rudy Giuliani] They do not pay millions of dollars in taxes. [Rudy Giuliani] They do not pay millions of dollars in taxes.
23 00:01:11,630 00:01:15,100 [Graham Weatherspoon] Giuliani has always been out for Giuliani. [Graham Weatherspoon] Giuliani has always been out for Giuliani.
24 00:01:15,100 00:01:17,470 The Dapper Don looked danger in the face... The Dapper Don looked danger in the face...
25 00:01:17,470 00:01:20,170 [Jerry Capeci] The button was pushed. The car blew up. [Jerry Capeci] The button was pushed. The car blew up.
26 00:01:20,180 00:01:21,580 ...and laughed. ...and laughed.
27 00:01:21,580 00:01:22,740 [John Gotti] I know you didn't believe I was guilty. [John Gotti] I know you didn't believe I was guilty.
28 00:01:23,710 00:01:25,680 People asked did he have a guilty conscience? People asked did he have a guilty conscience?
29 00:01:25,680 00:01:29,280 Guilty smilty. There was such a sense of every man for himself. Guilty smilty. There was such a sense of every man for himself.
30 00:01:29,290 00:01:31,250 She said well you should have kept your pants on. She said well you should have kept your pants on.
31 00:01:31,890 00:01:35,220 If you kept your [expletive] in your pants you wouldn't have such problems. If you kept your [expletive] in your pants you wouldn't have such problems.
32 00:01:35,990 00:01:37,930 [James B. Stewart] I remember when that news struck. [James B. Stewart] I remember when that news struck.
33 00:01:37,930 00:01:43,130 It was like all the air went out of the room. Paranoia ran rampant. It was like all the air went out of the room. Paranoia ran rampant.
34 00:01:43,130 00:01:47,870 These five titans would reshape the city and the world we live in today. These five titans would reshape the city and the world we live in today.
35 00:01:47,870 00:01:54,510 And when in 1986 we began to see them for who they really were, it was already too late. And when in 1986 we began to see them for who they really were, it was already too late.
36 00:02:19,240 00:02:24,340 A new gilded age defined by opulence and extravagance was reaching its apex. A new gilded age defined by opulence and extravagance was reaching its apex.
37 00:02:24,340 00:02:29,380 New York City, all by left for dead less than a decade ago had been shocked back to life New York City, all by left for dead less than a decade ago had been shocked back to life
38 00:02:29,380 00:02:35,850 by an explosion of development, culture, and money. It looked like the party would never stop. by an explosion of development, culture, and money. It looked like the party would never stop.
39 00:02:35,850 00:02:39,150 But looks, as they say, can be deceiving. But looks, as they say, can be deceiving.
40 00:02:39,520 00:02:44,890 [newsreader] Investment banker, Dennis Levine, has been arrested and charged with insider trading [newsreader] Investment banker, Dennis Levine, has been arrested and charged with insider trading
41 00:02:44,890 00:02:49,760 [newsreader 2] Dennis Levine collected $12.5 million in illegal profits. [newsreader 2] Dennis Levine collected $12.5 million in illegal profits.
42 00:02:49,770 00:02:53,270 He did it by gaining advance knowledge of 54 pending takeovers. He did it by gaining advance knowledge of 54 pending takeovers.
43 00:02:53,270 00:02:56,140 [Dennis Levine] I now realize that I committed very serious crimes [Dennis Levine] I now realize that I committed very serious crimes
44 00:02:56,140 00:02:59,510 which I'm very sorry and it was a very painful lesson to learn. which I'm very sorry and it was a very painful lesson to learn.
45 00:02:59,740 00:03:02,740 [newsreader 3] Rudy Giuliani, US Attorney for the Southern District, [newsreader 3] Rudy Giuliani, US Attorney for the Southern District,
46 00:03:02,750 00:03:05,110 was the driving force behind his arrest. was the driving force behind his arrest.
47 00:03:05,110 00:03:07,810 [Bethany McLean] He's young and he's incredibly aggressive. [Bethany McLean] He's young and he's incredibly aggressive.
48 00:03:07,820 00:03:12,190 And he takes those same techniques that he had used to bring down mafia figures And he takes those same techniques that he had used to bring down mafia figures
49 00:03:12,190 00:03:14,320 to go after white collar criminals. to go after white collar criminals.
50 00:03:14,320 00:03:19,260 [Jeff Madrick] What credit it will do to my reputation says Rudy to himself. [Jeff Madrick] What credit it will do to my reputation says Rudy to himself.
51 00:03:19,960 00:03:23,730 [newsreader] Was anyone else involved in this at all? Knowingly? [newsreader] Was anyone else involved in this at all? Knowingly?
52 00:03:23,730 00:03:27,170 Yes, at this point, though, I can't identify anyone else. Yes, at this point, though, I can't identify anyone else.
53 00:03:27,170 00:03:29,000 No one else has been publicly identified. No one else has been publicly identified.
54 00:03:29,000 00:03:31,770 [Ken Auletta] When the Dennis Levine news broke in the press, [Ken Auletta] When the Dennis Levine news broke in the press,
55 00:03:31,770 00:03:33,940 the reaction on Wall Street was shock. the reaction on Wall Street was shock.
56 00:03:34,340 00:03:39,080 One rotten apple. Get rid of him. This is not typical of our industry. One rotten apple. Get rid of him. This is not typical of our industry.
57 00:03:39,080 00:03:42,520 [Andrew Ross Sorkin] At the time this information was flowing everywhere. [Andrew Ross Sorkin] At the time this information was flowing everywhere.
58 00:03:42,520 00:03:47,450 Nobody thought anyone was ever gonna get in trouble. It almost became part of the culture. Nobody thought anyone was ever gonna get in trouble. It almost became part of the culture.
59 00:03:47,460 00:03:53,830 [James B. Stewart] What Dennis himself had done was bad. But it wasn't cataclysmic. [James B. Stewart] What Dennis himself had done was bad. But it wasn't cataclysmic.
60 00:03:54,160 00:03:56,300 The reason Dennis Levine was cataclysmic The reason Dennis Levine was cataclysmic
61 00:03:56,300 00:04:01,370 was because what he knew. Who he knew. was because what he knew. Who he knew.
62 00:04:03,170 00:04:07,340 Ivan Boesky, the man. He became the biggest in his profession. Ivan Boesky, the man. He became the biggest in his profession.
63 00:04:07,340 00:04:11,040 His meteoric rise to the top of Wall Street was built on lies. His meteoric rise to the top of Wall Street was built on lies.
64 00:04:11,050 00:04:13,210 And with his web of deceit about to unravel, And with his web of deceit about to unravel,
65 00:04:13,220 00:04:17,050 he would discover that there was no honor amongst thieves. he would discover that there was no honor amongst thieves.
66 00:04:17,050 00:04:19,350 Ivan Boesky made a lot of money. Ivan Boesky made a lot of money.
67 00:04:19,360 00:04:26,260 His assets in 1986 came to about $131 million. His assets in 1986 came to about $131 million.
68 00:04:26,260 00:04:28,700 He was clearly one of the wealthiest people, He was clearly one of the wealthiest people,
69 00:04:28,700 00:04:31,830 had amassed one of the great fortunes in the 80s. had amassed one of the great fortunes in the 80s.
70 00:04:31,830 00:04:34,870 What's the biggest payoff day you have ever had? What's the biggest payoff day you have ever had?
71 00:04:34,870 00:04:37,540 How much-- a tacky question, I'm sorry. How much-- a tacky question, I'm sorry.
72 00:04:37,540 00:04:39,040 Well we don't, we don't talk numbers. Well we don't, we don't talk numbers.
73 00:04:39,410 00:04:44,540 [Stewart] Ivan Boesky had to have known that he was now in mortal danger. [Stewart] Ivan Boesky had to have known that he was now in mortal danger.
74 00:04:44,710 00:04:50,680 The day Dennis Levine was arrested in 1986, and that news went out, The day Dennis Levine was arrested in 1986, and that news went out,
75 00:04:50,690 00:04:55,690 Ivan Boesky came out of a conference room. Someone in the office said, "Hey look at this, Ivan Boesky came out of a conference room. Someone in the office said, "Hey look at this,
76 00:04:55,690 00:04:58,260 "did you hear this news? Dennis Levine was arrested." "did you hear this news? Dennis Levine was arrested."
77 00:04:58,260 00:05:03,600 And he said, "Who?" He said, "Dennis who?" And he said, "Who?" He said, "Dennis who?"
78 00:05:03,830 00:05:07,230 And they said, "Dennis Levine." He said I've never heard of him. And they said, "Dennis Levine." He said I've never heard of him.
79 00:05:07,670 00:05:12,510 Now Dennis Levine made promises to his collaborators all along Now Dennis Levine made promises to his collaborators all along
80 00:05:12,510 00:05:15,380 that he'd be a, "stand-up guy who would never talk." that he'd be a, "stand-up guy who would never talk."
81 00:05:15,380 00:05:18,310 Dennis Levine turned out to be a chatterbox. Dennis Levine turned out to be a chatterbox.
82 00:05:19,320 00:05:23,520 [newsreader] In return for a lighter sentence he agreed to tell all he knew. [newsreader] In return for a lighter sentence he agreed to tell all he knew.
83 00:05:23,520 00:05:26,520 And what he knew was dynamite. And what he knew was dynamite.
84 00:05:27,890 00:05:30,620 [Madrick] Dennis Levine ratted on Ivan Boesky. [Madrick] Dennis Levine ratted on Ivan Boesky.
85 00:05:30,630 00:05:33,760 He should have known that was possible all along. He should have known that was possible all along.
86 00:05:34,300 00:05:38,300 The fact that Boesky would associate with Levine was an example The fact that Boesky would associate with Levine was an example
87 00:05:38,300 00:05:40,930 of the deep nature of his greed. of the deep nature of his greed.
88 00:05:40,940 00:05:47,310 It shows how ambitious and blind Ivan was in the pursuit of money. It shows how ambitious and blind Ivan was in the pursuit of money.
89 00:05:47,540 00:05:51,510 [Gary Lynch] I was shocked. When Dennis Levine provided the name of Ivan Boesky [Gary Lynch] I was shocked. When Dennis Levine provided the name of Ivan Boesky
90 00:05:51,510 00:05:56,150 it was clear that this would be even bigger so we geared up for a lengthy fight. it was clear that this would be even bigger so we geared up for a lengthy fight.
91 00:05:56,150 00:06:02,260 And we launched an investigation of Ivan Boesky with a barrage of subpoenas. And we launched an investigation of Ivan Boesky with a barrage of subpoenas.
92 00:06:02,260 00:06:08,230 [Harvey Pitt] The notion that there were 27 subpoenas made it quite clear [Harvey Pitt] The notion that there were 27 subpoenas made it quite clear
93 00:06:08,230 00:06:12,630 that this was a massive investigation. that this was a massive investigation.
94 00:06:12,630 00:06:16,940 I thought we were in for a, you know, a long, long fight. I thought we were in for a, you know, a long, long fight.
95 00:06:17,570 00:06:23,880 I called Ivan Boesky and told him about the subpoenas. I called Ivan Boesky and told him about the subpoenas.
96 00:06:23,880 00:06:30,250 And I suggested that we needed to have a face-to-face meeting. And I suggested that we needed to have a face-to-face meeting.
97 00:06:30,250 00:06:32,690 Boesky's lawyers said, "Look, you're guilty. Boesky's lawyers said, "Look, you're guilty.
98 00:06:32,690 00:06:36,220 "You've been doing this rampantly. You have no defense." "You've been doing this rampantly. You have no defense."
99 00:06:36,230 00:06:42,900 And your only hope is to cooperate and get some lenience. So who can you give up? And your only hope is to cooperate and get some lenience. So who can you give up?
100 00:06:46,340 00:06:51,340 People asked did Ivan Boesky have a guilty conscience? Guilty smilty. People asked did Ivan Boesky have a guilty conscience? Guilty smilty.
101 00:06:52,170 00:06:56,210 Ivan knew once Levine started talking that he was dead. He was dead. Ivan knew once Levine started talking that he was dead. He was dead.
102 00:06:57,250 00:06:59,650 It was such a sense of every man for himself. It was such a sense of every man for himself.
103 00:06:59,650 00:07:04,250 Ivan Boesky had very intense drive Ivan Boesky had very intense drive
104 00:07:04,250 00:07:08,160 to climb the social and financial ladder. to climb the social and financial ladder.
105 00:07:08,160 00:07:09,520 He lived in his image. He lived in his image.
106 00:07:09,530 00:07:11,430 He wanted to be accepted. He wanted to be accepted.
107 00:07:11,430 00:07:14,390 [Stewart] And now he was panicking. This was gonna come crashing down on him. [Stewart] And now he was panicking. This was gonna come crashing down on him.
108 00:07:14,400 00:07:19,030 I'm sure he called his lawyer right away. He basically had a lawyer joined at the hip. I'm sure he called his lawyer right away. He basically had a lawyer joined at the hip.
109 00:07:19,030 00:07:22,000 Mr. Boesky made the decision Mr. Boesky made the decision
110 00:07:22,000 00:07:27,070 to initiate settlement discussions with the SEC. to initiate settlement discussions with the SEC.
111 00:07:27,080 00:07:33,580 [Lynch] Ivan Boesky was ready to provide very intriguing information [Lynch] Ivan Boesky was ready to provide very intriguing information
112 00:07:33,580 00:07:35,950 about other people involved in illegal activity. about other people involved in illegal activity.
113 00:07:35,950 00:07:40,650 I mean this is like John Gotti stuff. You know Omerta, you shouldn't talk. I mean this is like John Gotti stuff. You know Omerta, you shouldn't talk.
114 00:07:41,460 00:07:46,660 This is not the mafia. These people, they're affluent. This is not the mafia. These people, they're affluent.
115 00:07:46,660 00:07:49,500 They don't wanna spend the rest of their lives in jail. They don't wanna spend the rest of their lives in jail.
116 00:07:49,500 00:07:52,930 They are going to start turning on each other. They are going to start turning on each other.
117 00:07:53,240 00:07:59,910 And who could Ivan Boesky offer to help reduce his own sentence? And who could Ivan Boesky offer to help reduce his own sentence?
118 00:07:59,910 00:08:03,880 No less than the most important person in American finance. No less than the most important person in American finance.
119 00:08:04,350 00:08:06,280 [newsreader] Junk bond king, [newsreader] Junk bond king,
120 00:08:06,280 00:08:10,050 Michael Milken, the financier who has transformed American corporate finance. Michael Milken, the financier who has transformed American corporate finance.
121 00:08:10,050 00:08:13,290 [newsreader] Milken is said to be the most influential money man on Wall Street. [newsreader] Milken is said to be the most influential money man on Wall Street.
122 00:08:13,760 00:08:17,590 For Giuliani who was trying to make a point about greed, For Giuliani who was trying to make a point about greed,
123 00:08:17,590 00:08:19,560 about Wall Street, about insider trading, about Wall Street, about insider trading,
124 00:08:19,560 00:08:23,400 Milken was the holy grail. The white whale. Milken was the holy grail. The white whale.
125 00:08:28,000 00:08:35,510 New York, 1986. On Wall Street some unscrupulous money men were skating on very thin ice. New York, 1986. On Wall Street some unscrupulous money men were skating on very thin ice.
126 00:08:35,510 00:08:41,250 While further up town in a once bustling part of the city, no one was skating at all. While further up town in a once bustling part of the city, no one was skating at all.
127 00:08:41,250 00:08:44,520 [newsreader] Remember the Wollman skating rink in Central Park? [newsreader] Remember the Wollman skating rink in Central Park?
128 00:08:44,520 00:08:47,450 It was supposed to reopen this weekend finally. It was supposed to reopen this weekend finally.
129 00:08:47,720 00:08:51,930 Across from the Plaza Hotel, this icon of New York, Across from the Plaza Hotel, this icon of New York,
130 00:08:51,930 00:08:54,760 in Central Park there was an ice skating rink. in Central Park there was an ice skating rink.
131 00:08:54,760 00:08:57,800 And people loved it. I mean even if you didn't ice skate there just looking at it, And people loved it. I mean even if you didn't ice skate there just looking at it,
132 00:08:57,800 00:09:02,040 it was just a wonderful thing in the city in the winter. And the mechanicals failed. it was just a wonderful thing in the city in the winter. And the mechanicals failed.
133 00:09:02,370 00:09:07,210 The city kept saying it's gonna restore Wollman Rink. And failed to. The city kept saying it's gonna restore Wollman Rink. And failed to.
134 00:09:07,410 00:09:08,980 Much to the embarrassment of Ed Koch. Much to the embarrassment of Ed Koch.
135 00:09:08,980 00:09:12,780 People were annoyed. And Donald Trump saw an opportunity. People were annoyed. And Donald Trump saw an opportunity.
136 00:09:12,780 00:09:17,320 [Auletta] Trump, from his office, could look down upon the Wollman Rink [Auletta] Trump, from his office, could look down upon the Wollman Rink
137 00:09:17,320 00:09:21,290 and in his brash way said, "I can restore it in a year." and in his brash way said, "I can restore it in a year."
138 00:09:21,290 00:09:26,160 Ed Koch doesn't want Trump touching this thing. He doesn't want anything to do with him. Ed Koch doesn't want Trump touching this thing. He doesn't want anything to do with him.
139 00:09:26,160 00:09:27,830 So Donald starts a little campaign. So Donald starts a little campaign.
140 00:09:27,830 00:09:31,770 You know Koch is trying to deny the people this glorious jewel. You know Koch is trying to deny the people this glorious jewel.
141 00:09:32,530 00:09:37,370 [George Arzt] Koch just believed that Donald was a massive bloviator. [George Arzt] Koch just believed that Donald was a massive bloviator.
142 00:09:37,370 00:09:42,580 [Trump] The city of New York had that rink closed for almost seven years. [Trump] The city of New York had that rink closed for almost seven years.
143 00:09:42,580 00:09:44,380 It was a total disaster. It was a total disaster.
144 00:09:44,380 00:09:48,380 You know it, I know it. Everybody knows it. I got fed up watching it. You know it, I know it. Everybody knows it. I got fed up watching it.
145 00:09:48,380 00:09:50,250 And I offered to build it. And I offered to build it.
146 00:09:50,490 00:09:52,790 So Koch gives in. So Koch gives in.
147 00:09:54,660 00:09:58,460 [Belmont Freeman] Trump milked the Wollman rink to the max [Belmont Freeman] Trump milked the Wollman rink to the max
148 00:09:58,460 00:10:01,960 for his own PR purposes. for his own PR purposes.
149 00:10:01,960 00:10:05,400 It was a victory for Donald Trump. And was a defeat for Ed Koch. It was a victory for Donald Trump. And was a defeat for Ed Koch.
150 00:10:05,400 00:10:11,400 I give Ed Koch tremendous credit for having the courage to say, I give Ed Koch tremendous credit for having the courage to say,
151 00:10:11,410 00:10:13,470 "Donald, go and do it." "Donald, go and do it."
152 00:10:13,480 00:10:17,080 [Ed Koch] You just saw the modest Donald Trump. [Ed Koch] You just saw the modest Donald Trump.
153 00:10:17,380 00:10:22,280 [Gil Troy] Give him credit. The Koch administration is absolutely paralyzed. [Gil Troy] Give him credit. The Koch administration is absolutely paralyzed.
154 00:10:22,280 00:10:24,420 They cannot fix Wollman Skating Rink. They cannot fix Wollman Skating Rink.
155 00:10:24,420 00:10:30,590 Donald Trump came along and said "I can do this in six months." And he got it done in five. Donald Trump came along and said "I can do this in six months." And he got it done in five.
156 00:10:30,830 00:10:32,330 [cheering] [cheering]
157 00:10:33,160 00:10:35,430 [Trump] It's been a tremendous success. We opened last weekend. [Trump] It's been a tremendous success. We opened last weekend.
158 00:10:35,430 00:10:38,530 We had the biggest crowds in the history of the rink. And in the history of America. We had the biggest crowds in the history of the rink. And in the history of America.
159 00:10:38,530 00:10:41,770 [Belmont Freeman] It later came out that he accomplished this feat [Belmont Freeman] It later came out that he accomplished this feat
160 00:10:41,770 00:10:44,070 largely by screwing all the contractors. largely by screwing all the contractors.
161 00:10:45,040 00:10:47,810 [Michael Kruse] Trump, in essence, was going to pay some of the people [Michael Kruse] Trump, in essence, was going to pay some of the people
162 00:10:47,810 00:10:49,710 who were fixing Wollman Rink who were fixing Wollman Rink
163 00:10:49,710 00:10:55,080 in attention. He was going to pay them in hype. Once Wollman Rink was fixed, in attention. He was going to pay them in hype. Once Wollman Rink was fixed,
164 00:10:55,780 00:11:02,260 Trump emerged as the king of the hill and did not ultimately share that spotlight. Trump emerged as the king of the hill and did not ultimately share that spotlight.
165 00:11:02,260 00:11:07,990 In reality what, what he was asking us to do was to supply the services for the rink In reality what, what he was asking us to do was to supply the services for the rink
166 00:11:08,000 00:11:11,230 and to dispense with any profits or expenses. and to dispense with any profits or expenses.
167 00:11:11,230 00:11:14,130 [newsreader] How you get things done? And come in under budget? I mean what's the trick? [newsreader] How you get things done? And come in under budget? I mean what's the trick?
168 00:11:14,140 00:11:16,540 Well it's a lot of work and it's knowledge and it's a lot of things. Well it's a lot of work and it's knowledge and it's a lot of things.
169 00:11:16,540 00:11:20,810 It's a whole vast coterie of things. And we'll talk about that later I suspect. It's a whole vast coterie of things. And we'll talk about that later I suspect.
170 00:11:20,810 00:11:26,150 The developer from Queens had delivered on his promise in his own unique way. The developer from Queens had delivered on his promise in his own unique way.
171 00:11:26,150 00:11:30,280 A feat that would only burnish his myth in the minds of New Yorkers. A feat that would only burnish his myth in the minds of New Yorkers.
172 00:11:30,290 00:11:33,690 But he wasn't the only real estate magnet making news. But he wasn't the only real estate magnet making news.
173 00:11:36,660 00:11:42,800 For years now his fiercest rival had also been reaping the reward of an empire built on image. For years now his fiercest rival had also been reaping the reward of an empire built on image.
174 00:11:43,800 00:11:46,070 Harry's owned about 200 buildings. Harry's owned about 200 buildings.
175 00:11:46,070 00:11:49,470 And now she was hard at work on the newest monument to her ego. And now she was hard at work on the newest monument to her ego.
176 00:11:49,840 00:11:53,010 I own this. I own this. I own this. And that one. I own this. I own this. I own this. And that one.
177 00:11:53,010 00:11:55,710 One that would prove to be her undoing. One that would prove to be her undoing.
178 00:11:58,850 00:12:03,420 [newsreader] Leona Helmsley rules her kingdom like she's the star of her own movie. [newsreader] Leona Helmsley rules her kingdom like she's the star of her own movie.
179 00:12:03,420 00:12:08,190 Her co-star is her husband, Harry, a man of unimaginable wealth and power. Her co-star is her husband, Harry, a man of unimaginable wealth and power.
180 00:12:08,920 00:12:11,860 Together they oversee this extravagant property. Together they oversee this extravagant property.
181 00:12:12,160 00:12:16,760 [Charles Bagli] When the Helmsleys bought Dunellen, Leona took charge [Charles Bagli] When the Helmsleys bought Dunellen, Leona took charge
182 00:12:16,770 00:12:21,200 of the renovations. And renovation aplenty. of the renovations. And renovation aplenty.
183 00:12:21,200 00:12:23,000 She loved making it beautiful. She loved making it beautiful.
184 00:12:23,670 00:12:29,740 [newsreader] The Helmsleys spent $4 million refurbishing their 28-room estate in Greenwich, CT. [newsreader] The Helmsleys spent $4 million refurbishing their 28-room estate in Greenwich, CT.
185 00:12:29,980 00:12:35,250 Including a marble dance floor above one of their two pools for $1 million. Including a marble dance floor above one of their two pools for $1 million.
186 00:12:35,250 00:12:39,090 They installed an expensive indoor- outdoor stereo system They installed an expensive indoor- outdoor stereo system
187 00:12:39,090 00:12:43,360 and spent thousands more on landscaping, art and ornaments. and spent thousands more on landscaping, art and ornaments.
188 00:12:44,430 00:12:49,560 At Dunellen when she signed a contract with a contractor to do some work, At Dunellen when she signed a contract with a contractor to do some work,
189 00:12:49,560 00:12:52,770 she was always renegotiating downward. she was always renegotiating downward.
190 00:12:53,470 00:12:56,770 [Feldshuh] On one deal she just refused to pay the contractor. [Feldshuh] On one deal she just refused to pay the contractor.
191 00:12:56,770 00:13:00,240 The contractor said please, I have six children. The contractor said please, I have six children.
192 00:13:00,580 00:13:03,310 And she said, "Well you should have kept your pants on. And she said, "Well you should have kept your pants on.
193 00:13:03,310 00:13:07,450 "If you kept your [expletive] in your pants you wouldn't have such problems." "If you kept your [expletive] in your pants you wouldn't have such problems."
194 00:13:08,120 00:13:12,290 [Bill Dowling] Everyone was afraid of Leona Helmsley because of that reptilian brain [Bill Dowling] Everyone was afraid of Leona Helmsley because of that reptilian brain
195 00:13:12,290 00:13:14,520 she had where she could turn on you in a split second. she had where she could turn on you in a split second.
196 00:13:14,520 00:13:19,660 I'm a woman. I'm a tough business woman. What is that got to do, I'm running a business? I'm a woman. I'm a tough business woman. What is that got to do, I'm running a business?
197 00:13:19,660 00:13:22,900 [Dowling] You could think that you were her favorite employee in one minute. [Dowling] You could think that you were her favorite employee in one minute.
198 00:13:22,900 00:13:25,400 And find yourself out on the street the next minute. And find yourself out on the street the next minute.
199 00:13:26,840 00:13:31,870 One day she started berating a highly respected member of Harry's management team. One day she started berating a highly respected member of Harry's management team.
200 00:13:31,870 00:13:33,970 And told Harry he had to fire him. And told Harry he had to fire him.
201 00:13:33,980 00:13:36,640 And Harry said, 'I'm not gonna fire him, he's one of my oldest associates." And Harry said, 'I'm not gonna fire him, he's one of my oldest associates."
202 00:13:36,650 00:13:40,780 And that's when she said, "If you don't fire him, I'm gonna stop having sex with you And that's when she said, "If you don't fire him, I'm gonna stop having sex with you
203 00:13:40,780 00:13:46,820 "and move to the apartment in Palm Beach." I thought Harry would never fire him, "and move to the apartment in Palm Beach." I thought Harry would never fire him,
204 00:13:46,820 00:13:48,760 he's too loyal to him, he wouldn't do it. he's too loyal to him, he wouldn't do it.
205 00:13:48,760 00:13:52,930 But Harry came in that day and he fired him. [laughs] But Harry came in that day and he fired him. [laughs]
206 00:13:54,460 00:13:59,670 Harry Helmsley was known for being as extremely ethical, honest man. Harry Helmsley was known for being as extremely ethical, honest man.
207 00:13:59,670 00:14:01,470 But she changed all of that. But she changed all of that.
208 00:14:01,840 00:14:06,610 She did not care at all about anyone else. She did what she wanted to do. And that was it. She did not care at all about anyone else. She did what she wanted to do. And that was it.
209 00:14:06,610 00:14:08,840 And she hurt a lot of people. And she hurt a lot of people.
210 00:14:09,280 00:14:12,580 [Feldshuh] There was a period called the bloodbath. When Leona Helmsley [Feldshuh] There was a period called the bloodbath. When Leona Helmsley
211 00:14:12,580 00:14:19,420 fired four of Harry Helmsley's stalwarts that had been in his organization for decades. fired four of Harry Helmsley's stalwarts that had been in his organization for decades.
212 00:14:19,690 00:14:21,550 Those that were fired... Those that were fired...
213 00:14:22,960 00:14:28,490 either thought they were our partners, undeclared, either thought they were our partners, undeclared,
214 00:14:28,500 00:14:31,300 they had their hand in the cookie jar. All right. they had their hand in the cookie jar. All right.
215 00:14:31,300 00:14:35,170 Or they just couldn't cut the mustard. Or they just couldn't cut the mustard.
216 00:14:35,470 00:14:40,370 But Leona Helmsley forgot the most important lesson which is you keep your friends close But Leona Helmsley forgot the most important lesson which is you keep your friends close
217 00:14:40,380 00:14:42,480 and you keep your enemies closer. and you keep your enemies closer.
218 00:14:43,850 00:14:49,120 In December of 1985, a tipster called the New York Post . In December of 1985, a tipster called the New York Post .
219 00:14:49,120 00:14:55,390 And claimed that he had information on the Helmsleys that would clearly prove And claimed that he had information on the Helmsleys that would clearly prove
220 00:14:55,390 00:14:59,330 that they were defrauding the United States Government, in several areas. that they were defrauding the United States Government, in several areas.
221 00:14:59,330 00:15:02,760 She was trying to construe She was trying to construe
222 00:15:02,760 00:15:06,530 personal expenses as business expenses. personal expenses as business expenses.
223 00:15:07,470 00:15:11,140 She regarded Dunnellen as a place of business. Not as a mere residence. She regarded Dunnellen as a place of business. Not as a mere residence.
224 00:15:11,140 00:15:14,910 So everything had to be charged for Dunnellen through the business of course. So everything had to be charged for Dunnellen through the business of course.
225 00:15:15,710 00:15:20,680 She had no ethics whatsoever. She was a conniver, a schemer. She had no ethics whatsoever. She was a conniver, a schemer.
226 00:15:20,680 00:15:24,820 She was always trying to manipulate things. She was always trying to manipulate things.
227 00:15:24,820 00:15:28,620 She thought nothing about cheating on taxes. She thought nothing about cheating on taxes.
228 00:15:29,890 00:15:35,130 When the headline came out, 'Helmsley Scam Bared" When the headline came out, 'Helmsley Scam Bared"
229 00:15:35,130 00:15:36,200 it was a kill. it was a kill.
230 00:15:38,500 00:15:41,170 She had fired enough people, She had fired enough people,
231 00:15:41,840 00:15:45,540 acted in an imperial way enough times, acted in an imperial way enough times,
232 00:15:45,540 00:15:47,770 people were open for blood people were open for blood
233 00:15:48,240 00:15:50,510 [newsreader] Former friends and employees lined up [newsreader] Former friends and employees lined up
234 00:15:50,510 00:15:53,580 to spill the beans on Leona's tyrannical behavior. to spill the beans on Leona's tyrannical behavior.
235 00:15:54,020 00:15:56,750 [Elaine Gordon] She was greedy. She was mean. [Elaine Gordon] She was greedy. She was mean.
236 00:15:57,150 00:16:01,960 She was all the things that they wanted to accuse her because she flaunted her success She was all the things that they wanted to accuse her because she flaunted her success
237 00:16:02,260 00:16:04,390 They have no right to evade the taxes. They have no right to evade the taxes.
238 00:16:04,390 00:16:06,590 Hang her, man. Hang her, that's what I think. Hang her, man. Hang her, that's what I think.
239 00:16:06,590 00:16:10,230 The people of New York, having once bought into the whole glamorous package, The people of New York, having once bought into the whole glamorous package,
240 00:16:10,230 00:16:13,500 had now viciously turned on their one-time queen. had now viciously turned on their one-time queen.
241 00:16:13,500 00:16:16,940 But it was one prominent New Yorker who jeered the loudest of all. But it was one prominent New Yorker who jeered the loudest of all.
242 00:16:16,940 00:16:19,240 [Glenn Plaskin] Donald and Leona did not like each other. [Glenn Plaskin] Donald and Leona did not like each other.
243 00:16:19,240 00:16:24,380 I think that Donald felt that Leona had tarnished Harry Helmsley's name. I think that Donald felt that Leona had tarnished Harry Helmsley's name.
244 00:16:24,380 00:16:30,220 He called her a disgrace to humanity. Truly evil, sick, a living nightmare. He called her a disgrace to humanity. Truly evil, sick, a living nightmare.
245 00:16:30,220 00:16:33,650 [newsreader] On Leona Helmsley, I feel sorry for Harry. [newsreader] On Leona Helmsley, I feel sorry for Harry.
246 00:16:33,990 00:16:35,560 [laughter] [laughter]
247 00:16:35,560 00:16:37,460 So that wasn't too positive. So that wasn't too positive.
248 00:16:39,090 00:16:43,630 Let's say I'm the [inaudible], that isn't a crime. Let's say I'm the [inaudible], that isn't a crime.
249 00:16:43,630 00:16:48,170 That's not a crime being how I've done nothing criminal. That's not a crime being how I've done nothing criminal.
250 00:16:48,170 00:16:51,370 The same headlines that used to bolster this real estate empire The same headlines that used to bolster this real estate empire
251 00:16:51,370 00:16:54,040 were now being used to tear it down. were now being used to tear it down.
252 00:16:54,040 00:16:56,580 It was the biggest New York story there was. It was the biggest New York story there was.
253 00:16:56,580 00:17:00,880 And it played right into the hands of one very ambitious law man. And it played right into the hands of one very ambitious law man.
254 00:17:01,120 00:17:05,820 Leona Helmsley, again another New York figure that people kind of loved to hate. Leona Helmsley, again another New York figure that people kind of loved to hate.
255 00:17:05,820 00:17:09,220 It was a no lose situation for Giuliani to go after her. It was a no lose situation for Giuliani to go after her.
256 00:17:09,220 00:17:11,720 [Kurt Andersen] It was just a good move to say oh no, [Kurt Andersen] It was just a good move to say oh no,
257 00:17:11,730 00:17:15,630 but look the rich and powerful will you know face consequences. but look the rich and powerful will you know face consequences.
258 00:17:15,630 00:17:21,000 It is now alleged that, that they did not pay millions of dollars in taxes It is now alleged that, that they did not pay millions of dollars in taxes
259 00:17:21,000 00:17:23,040 that they were required by law to pay. that they were required by law to pay.
260 00:17:23,040 00:17:24,940 [Kirtzman] He was on the side of the angels [Kirtzman] He was on the side of the angels
261 00:17:24,940 00:17:29,840 and also it was such a larger-than-life tabloid story and also it was such a larger-than-life tabloid story
262 00:17:29,840 00:17:32,280 then that was kind of a home run for him. then that was kind of a home run for him.
263 00:17:32,710 00:17:38,050 I'm innocent. My only crime is that I'm Leona Helmsley. I'm innocent. My only crime is that I'm Leona Helmsley.
264 00:17:40,020 00:17:45,190 [newsreader] The bold, the brave and the beautiful rummaged through their costume collection [newsreader] The bold, the brave and the beautiful rummaged through their costume collection
265 00:17:45,190 00:17:48,490 and came out tonight for the opening of the Palladium. and came out tonight for the opening of the Palladium.
266 00:17:48,500 00:17:51,860 By the mid 80s, New York's nightlife scene had become By the mid 80s, New York's nightlife scene had become
267 00:17:51,870 00:17:53,670 one of the most exciting in the world. one of the most exciting in the world.
268 00:17:53,670 00:17:57,340 And New Yorkers felt free to explore anything and everything. And New Yorkers felt free to explore anything and everything.
269 00:17:57,340 00:17:59,470 The city had become a fantasy land. The city had become a fantasy land.
270 00:17:59,470 00:18:02,410 [Michael Musto] New York had become known as Fun City. [Michael Musto] New York had become known as Fun City.
271 00:18:04,450 00:18:06,550 Clubs would put on shows and extravaganzas. Clubs would put on shows and extravaganzas.
272 00:18:06,710 00:18:11,120 [Susanne Bartsch] New York was exploding, everyone was indulging, couldn't get enough. [Susanne Bartsch] New York was exploding, everyone was indulging, couldn't get enough.
273 00:18:11,120 00:18:15,220 [Michael Holman] New York had an attitude. And we just wanted to be part of it. [Michael Holman] New York had an attitude. And we just wanted to be part of it.
274 00:18:15,220 00:18:17,060 [newsreader] Is it a success? [newsreader] Is it a success?
275 00:18:17,060 00:18:19,760 [Steve Rubell] I don't know, is it? You tell me. I don't know. I hope so. [Steve Rubell] I don't know, is it? You tell me. I don't know. I hope so.
276 00:18:21,100 00:18:24,200 [Peter Gatien] There was just like sort of a organic synergy in the city. [Peter Gatien] There was just like sort of a organic synergy in the city.
277 00:18:24,200 00:18:27,630 But it felt very decadent and, and hedonist also. But it felt very decadent and, and hedonist also.
278 00:18:28,400 00:18:30,370 And it wasn't just gay. It wasn't just straight. And it wasn't just gay. It wasn't just straight.
279 00:18:30,370 00:18:33,610 Everybody was exploring their own identity and cultures were mixing. Everybody was exploring their own identity and cultures were mixing.
280 00:18:33,610 00:18:38,780 [Holman] To come share their stories, that's when we met like minded souls. [Holman] To come share their stories, that's when we met like minded souls.
281 00:18:39,050 00:18:42,450 Incredible. Fantasy world come alive. Incredible. Fantasy world come alive.
282 00:18:42,850 00:18:44,180 Drink till you drop. Drink till you drop.
283 00:18:44,190 00:18:46,650 People needed to go out to meet other people. People needed to go out to meet other people.
284 00:18:46,650 00:18:49,260 And the main motivation was to actually to hook up. And the main motivation was to actually to hook up.
285 00:18:50,460 00:18:51,820 It was complete freedom. It was complete freedom.
286 00:18:51,830 00:18:54,360 Susanne Bartsch became one of the main A-club promoters. Susanne Bartsch became one of the main A-club promoters.
287 00:18:54,360 00:18:58,330 She would have a performer at her parties named Lady Hennessy Brown. She would have a performer at her parties named Lady Hennessy Brown.
288 00:18:58,870 00:19:04,100 Her talent was kind of squirting milk out of her breasts at the crowd. On cue. Her talent was kind of squirting milk out of her breasts at the crowd. On cue.
289 00:19:04,110 00:19:09,140 People would come with umbrellas, coffee cups. We did everything. Nobody cared. People would come with umbrellas, coffee cups. We did everything. Nobody cared.
290 00:19:09,140 00:19:12,110 You could live this incredible fantasy life till you dropped. You could live this incredible fantasy life till you dropped.
291 00:19:14,580 00:19:18,320 New Yorkers were living louder and larger than they had for years. New Yorkers were living louder and larger than they had for years.
292 00:19:20,220 00:19:23,160 But a terrifying change was in the air. But a terrifying change was in the air.
293 00:19:26,260 00:19:29,160 [newsreader] The lifestyle of some male homosexuals [newsreader] The lifestyle of some male homosexuals
294 00:19:29,160 00:19:33,800 has triggered an epidemic of a rare form of cancer. has triggered an epidemic of a rare form of cancer.
295 00:19:33,800 00:19:36,100 [Jonathan Mahler] A story appears in the New York Times [Jonathan Mahler] A story appears in the New York Times
296 00:19:36,100 00:19:41,040 that there has been a cancer identified in the gay community. that there has been a cancer identified in the gay community.
297 00:19:41,040 00:19:43,280 I got a call that a friend of mine named Hibiscus, I got a call that a friend of mine named Hibiscus,
298 00:19:43,280 00:19:46,580 who was with the San Francisco drag troop, was sick. who was with the San Francisco drag troop, was sick.
299 00:19:46,580 00:19:51,120 He died very quickly of horrible horrible symptoms. They called it the gay cancer. He died very quickly of horrible horrible symptoms. They called it the gay cancer.
300 00:19:51,120 00:19:55,290 [newsreader] Many victims get a rare form of cancer called Kaposi sarcoma. [newsreader] Many victims get a rare form of cancer called Kaposi sarcoma.
301 00:19:55,290 00:19:58,090 Others get an infection known as Pneumocystis pneumonia. Others get an infection known as Pneumocystis pneumonia.
302 00:19:58,090 00:20:03,730 Researchers know of 413 people who have contracted the condition in the past year. Researchers know of 413 people who have contracted the condition in the past year.
303 00:20:03,730 00:20:08,430 Started hearing rumors, starting to lose friends or friends of friends. Started hearing rumors, starting to lose friends or friends of friends.
304 00:20:08,440 00:20:10,440 Guess who else has it? Guess who else has it?
305 00:20:13,710 00:20:15,370 Guess who just died? Guess who just died?
306 00:20:15,910 00:20:17,640 Then you'd run into an old friend Then you'd run into an old friend
307 00:20:18,110 00:20:22,680 and they looked very thin and had sort of a grayish pallor and you realized they had it. and they looked very thin and had sort of a grayish pallor and you realized they had it.
308 00:20:22,850 00:20:28,150 AIDS. Acquired Immune Deficiency Syndrome is a terrifying mysterious disease. AIDS. Acquired Immune Deficiency Syndrome is a terrifying mysterious disease.
309 00:20:28,320 00:20:29,990 And it's killing a lot of people. And it's killing a lot of people.
310 00:20:29,990 00:20:33,990 [newsreader] Almost half the known cases are in New York City. [newsreader] Almost half the known cases are in New York City.
311 00:20:34,000 00:20:36,360 And we didn't know much about what this virus was. And we didn't know much about what this virus was.
312 00:20:37,100 00:20:40,300 Nobody knew for sure how you got it. Nobody knew for sure how you got it.
313 00:20:40,300 00:20:44,970 [Allison Field] AIDS is baffling There is no known cure. No one knows what causes it. [Allison Field] AIDS is baffling There is no known cure. No one knows what causes it.
314 00:20:44,970 00:20:50,580 We didn't know if you could get AIDS from kissing someone, from saliva, from sneezing. We didn't know if you could get AIDS from kissing someone, from saliva, from sneezing.
315 00:20:50,950 00:20:54,310 There was fear that if you touched someone with AIDS you could get AIDS. There was fear that if you touched someone with AIDS you could get AIDS.
316 00:20:54,320 00:20:58,150 It created an atmosphere of downright panic. It created an atmosphere of downright panic.
317 00:20:58,150 00:21:03,190 It was a monster. People didn't go home with each other anymore. That was huge. It was a monster. People didn't go home with each other anymore. That was huge.
318 00:21:03,190 00:21:05,860 Suicides shot through the ceiling in the 80s. Suicides shot through the ceiling in the 80s.
319 00:21:05,860 00:21:11,700 AIDS was so horrific that people preferred to take their life. AIDS was so horrific that people preferred to take their life.
320 00:21:11,900 00:21:14,170 Sometimes people come in and meet a stranger Sometimes people come in and meet a stranger
321 00:21:14,170 00:21:16,640 and ten minutes later you see 'em leaving. and ten minutes later you see 'em leaving.
322 00:21:16,640 00:21:18,600 That you're not seeing anymore. That you're not seeing anymore.
323 00:21:18,940 00:21:24,610 Before AIDS it was like you went and had sex with somebody different every night. Before AIDS it was like you went and had sex with somebody different every night.
324 00:21:24,910 00:21:26,850 Tonight there's a padlock on the Mineshaft. Tonight there's a padlock on the Mineshaft.
325 00:21:26,850 00:21:30,080 [newsreader] To the gay men who went to the Mineshaft, the whips and chains, [newsreader] To the gay men who went to the Mineshaft, the whips and chains,
326 00:21:30,080 00:21:33,390 the anonymous sex there, provided a sexual fantasy land. the anonymous sex there, provided a sexual fantasy land.
327 00:21:33,390 00:21:36,790 But reality closed the bar's doors early this morning. But reality closed the bar's doors early this morning.
328 00:21:36,790 00:21:39,530 And the city hopes the courts will close them for good. And the city hopes the courts will close them for good.
329 00:21:39,530 00:21:44,000 Places where death can be distributed, we don't want that to go on. Places where death can be distributed, we don't want that to go on.
330 00:21:44,000 00:21:47,900 This place is not selling death anymore than the heterosexual clubs are selling death. This place is not selling death anymore than the heterosexual clubs are selling death.
331 00:21:47,900 00:21:52,270 They don't give a damn about it apparently because it's going on and they're making money. They don't give a damn about it apparently because it's going on and they're making money.
332 00:21:52,270 00:21:56,510 No gay men in this city wants to die. Nor does he want his friends and lovers to die. No gay men in this city wants to die. Nor does he want his friends and lovers to die.
333 00:21:56,510 00:21:59,810 People were dropping left, right and center. It wasn't just gay people. People were dropping left, right and center. It wasn't just gay people.
334 00:22:00,210 00:22:04,580 [newsreader] It's not only homosexual clubs that are affected by this new regulation. [newsreader] It's not only homosexual clubs that are affected by this new regulation.
335 00:22:04,590 00:22:07,920 Heterosexual sex clubs are also being targeted. Heterosexual sex clubs are also being targeted.
336 00:22:07,920 00:22:11,020 [Larry Levinson] We permit people to have sex if they so desire here. [Larry Levinson] We permit people to have sex if they so desire here.
337 00:22:11,030 00:22:13,330 [newsreader] Anal intercourse and fellatio here? [newsreader] Anal intercourse and fellatio here?
338 00:22:13,330 00:22:16,660 We never had a situation we had to make a rule on something like that. We never had a situation we had to make a rule on something like that.
339 00:22:17,270 00:22:22,900 Over time we started to see who was dying and why. Are they straight? Were they gay? Over time we started to see who was dying and why. Are they straight? Were they gay?
340 00:22:23,240 00:22:28,340 Were they doing drugs? Were they wearing protection? Were they not wearing protection? Were they doing drugs? Were they wearing protection? Were they not wearing protection?
341 00:22:28,680 00:22:35,050 There's a new HIV infection every single minute. There's a new AIDS death every half hour. There's a new HIV infection every single minute. There's a new AIDS death every half hour.
342 00:22:36,620 00:22:39,320 [newsreader] There are an estimated 200,000 people [newsreader] There are an estimated 200,000 people
343 00:22:39,320 00:22:41,950 in New York City today who shoot drugs. in New York City today who shoot drugs.
344 00:22:41,960 00:22:45,360 The majority of them, according to experts, share their needles. The majority of them, according to experts, share their needles.
345 00:22:45,360 00:22:51,260 And that majority, they say, is not only shooting heroin or cocaine, but also AIDS. And that majority, they say, is not only shooting heroin or cocaine, but also AIDS.
346 00:22:51,600 00:22:54,330 [quiet music playing] [quiet music playing]
347 00:22:57,410 00:23:02,010 The community was torn between grief and terror The community was torn between grief and terror
348 00:23:02,210 00:23:05,180 and rage that no one was doing anything about it. and rage that no one was doing anything about it.
349 00:23:05,350 00:23:08,150 [Mahler] It became a real political problem for Mayor Koch [Mahler] It became a real political problem for Mayor Koch
350 00:23:08,150 00:23:12,280 because he is getting a lot of pressure from the gay community to do more. because he is getting a lot of pressure from the gay community to do more.
351 00:23:12,820 00:23:17,890 [Musto] You're spending half your time in hospitals visiting or at funerals. [Musto] You're spending half your time in hospitals visiting or at funerals.
352 00:23:18,630 00:23:22,960 And there was a hopelessness and you know why isn't anyone helping us? And there was a hopelessness and you know why isn't anyone helping us?
353 00:23:22,960 00:23:28,470 It wasn't until Act Up formed in 87 that you could focus all of those emotions. It wasn't until Act Up formed in 87 that you could focus all of those emotions.
354 00:23:28,470 00:23:32,510 Protesters denounce Ed Koch in a bitter demonstration over AIDS. Protesters denounce Ed Koch in a bitter demonstration over AIDS.
355 00:23:32,510 00:23:37,680 [newsreader] An army of 2500 protesters were mobilized by Act Up, [newsreader] An army of 2500 protesters were mobilized by Act Up,
356 00:23:37,680 00:23:39,810 the coalition of gay groups. the coalition of gay groups.
357 00:23:39,810 00:23:45,480 And their target was a man who's long expressed sympathy for their community. Mayor Ed Koch. And their target was a man who's long expressed sympathy for their community. Mayor Ed Koch.
358 00:23:45,750 00:23:50,690 We're letting Koch know that we're not going to tolerate his killing New York City. We're letting Koch know that we're not going to tolerate his killing New York City.
359 00:23:50,990 00:23:53,430 [crowd protesting] [crowd protesting]
360 00:23:55,530 00:23:57,500 We're dying. The city is dying. We're dying. The city is dying.
361 00:23:57,500 00:24:02,500 We're willing to discuss with them where they think we can do more. We're willing to discuss with them where they think we can do more.
362 00:24:02,500 00:24:07,310 We'll look at any proposal they have. It all has to be within our fiscal means. We'll look at any proposal they have. It all has to be within our fiscal means.
363 00:24:07,310 00:24:09,580 People with AIDS live in the streets of New York City. People with AIDS live in the streets of New York City.
364 00:24:09,580 00:24:12,680 And that's the policy of this administration. It's not a mistake. And that's the policy of this administration. It's not a mistake.
365 00:24:12,680 00:24:17,950 We, who are proud of being gay, are sick to death of being made victims We, who are proud of being gay, are sick to death of being made victims
366 00:24:17,950 00:24:20,350 by those who are ashamed of being gay. by those who are ashamed of being gay.
367 00:24:21,960 00:24:26,990 For Koch, there's a lot of countervailing pressure, not to devote any resources. For Koch, there's a lot of countervailing pressure, not to devote any resources.
368 00:24:27,630 00:24:31,100 To devote any meaningful resources, or to put any real energy To devote any meaningful resources, or to put any real energy
369 00:24:31,100 00:24:35,970 behind the effort to combat AIDS would have just played into his critics. behind the effort to combat AIDS would have just played into his critics.
370 00:24:36,170 00:24:42,110 For Koch, it was no secret that he was rumored to be a closeted homosexual himself. For Koch, it was no secret that he was rumored to be a closeted homosexual himself.
371 00:24:42,110 00:24:48,250 This has nothing to do with sexual orientation, with what you do in your home. This has nothing to do with sexual orientation, with what you do in your home.
372 00:24:49,120 00:24:54,190 [Mahler] Koch had years to do something, to do more. And really did nothing. [Mahler] Koch had years to do something, to do more. And really did nothing.
373 00:24:54,190 00:25:01,560 I mean it's one of the most shameful aspects of Koch's legacy. Koch really fails. I mean it's one of the most shameful aspects of Koch's legacy. Koch really fails.
374 00:25:01,560 00:25:05,870 The glitz and glamour were fading and the fun had turned into fear. The glitz and glamour were fading and the fun had turned into fear.
375 00:25:05,870 00:25:08,600 The fantasy was coming to an end. The fantasy was coming to an end.
376 00:25:12,240 00:25:15,670 As the 80s wore on, a rot was setting in acroet. As the 80s wore on, a rot was setting in acroet.
377 00:25:15,680 00:25:19,210 A stunning arrest had left traders with dark secrets of their own A stunning arrest had left traders with dark secrets of their own
378 00:25:19,210 00:25:21,910 scrambling to keep up appearances. scrambling to keep up appearances.
379 00:25:21,920 00:25:25,620 But one financial wizard knew the game was almost up. But one financial wizard knew the game was almost up.
380 00:25:25,620 00:25:29,260 And he'd play his final hand in a bid to save himself. And he'd play his final hand in a bid to save himself.
381 00:25:29,260 00:25:31,390 [Stewart] Boesky's lawyers said, "You're guilty. [Stewart] Boesky's lawyers said, "You're guilty.
382 00:25:31,390 00:25:36,200 "And your only hope is to cooperate and get some lenience." "And your only hope is to cooperate and get some lenience."
383 00:25:36,600 00:25:42,230 Boesky agreed to act as an undercover agent on behalf of the government. Boesky agreed to act as an undercover agent on behalf of the government.
384 00:25:43,800 00:25:49,310 Making a deal with Boesky was going to allow Giuliani to bring down Michael Milken. Making a deal with Boesky was going to allow Giuliani to bring down Michael Milken.
385 00:25:49,310 00:25:52,750 Michael Milken Michael Milken
386 00:25:52,750 00:25:55,950 He wasn't just a big fish. He was the biggest fish. He wasn't just a big fish. He was the biggest fish.
387 00:25:55,950 00:25:58,680 Mike Milken is only 42 years old. Mike Milken is only 42 years old.
388 00:25:58,690 00:26:04,590 And yet in 1986, Manhattan Ink Magazine said he may have earned over $200,000 million. And yet in 1986, Manhattan Ink Magazine said he may have earned over $200,000 million.
389 00:26:04,590 00:26:11,030 This is how big Mike Milken was. If he wrote a letter saying he could finance a very big deal This is how big Mike Milken was. If he wrote a letter saying he could finance a very big deal
390 00:26:11,030 00:26:13,330 maybe a couple of billion dollars, maybe a couple of billion dollars,
391 00:26:13,330 00:26:18,640 that letter was like money to Wall Street. Nobody doubted it. that letter was like money to Wall Street. Nobody doubted it.
392 00:26:18,640 00:26:20,440 [newsreader] Milken has raised millions [newsreader] Milken has raised millions
393 00:26:20,440 00:26:24,180 by selling high interest, high risk junk bonds to take over companies. by selling high interest, high risk junk bonds to take over companies.
394 00:26:24,180 00:26:28,850 Including $600 million for a deal involving Ivan Boesky. Including $600 million for a deal involving Ivan Boesky.
395 00:26:28,850 00:26:34,050 If you were Ivan, the most important person in the world is Michael Milken. If you were Ivan, the most important person in the world is Michael Milken.
396 00:26:34,060 00:26:38,290 The takeover era, none of it happens without Michael Milken. The takeover era, none of it happens without Michael Milken.
397 00:26:38,290 00:26:42,090 He is the Wizard of Oz that makes it all possible. He is the Wizard of Oz that makes it all possible.
398 00:26:42,100 00:26:46,530 He creates the sea that Ivan Boesky swims in. He creates the sea that Ivan Boesky swims in.
399 00:26:47,070 00:26:51,740 [Madrick] Milken had a lot of information about deals because people would come to him [Madrick] Milken had a lot of information about deals because people would come to him
400 00:26:51,740 00:26:54,470 to finance their bids for another companies. to finance their bids for another companies.
401 00:26:55,110 00:26:58,440 [Stewart] Part of this relationship was Milken would tell Boesky [Stewart] Part of this relationship was Milken would tell Boesky
402 00:26:58,450 00:27:01,180 that he wanted him to take positions in various companies. that he wanted him to take positions in various companies.
403 00:27:01,180 00:27:04,820 Boesky did it. None of this was disclosed. Boesky did it. None of this was disclosed.
404 00:27:04,820 00:27:06,790 Milken would get half, Boesky would get half. Milken would get half, Boesky would get half.
405 00:27:06,790 00:27:11,960 That's illegal. Boesky was a foot soldier compared to Michael Milken, That's illegal. Boesky was a foot soldier compared to Michael Milken,
406 00:27:11,960 00:27:17,400 the general who orchestrated takeover after takeover. And they developed this relationship the general who orchestrated takeover after takeover. And they developed this relationship
407 00:27:17,400 00:27:22,840 where eventually Milken raised a billion dollars in capital for Boesky. where eventually Milken raised a billion dollars in capital for Boesky.
408 00:27:22,840 00:27:29,040 Michael Milken was the king fish and if he could bring the king fish down, Michael Milken was the king fish and if he could bring the king fish down,
409 00:27:30,440 00:27:32,410 why wouldn't they give him a deal? why wouldn't they give him a deal?
410 00:27:34,650 00:27:37,480 [Stewart] Ivan Boesky was over. He was dead. [Stewart] Ivan Boesky was over. He was dead.
411 00:27:37,490 00:27:41,020 And so he agreed to cooperate with the government. And so he agreed to cooperate with the government.
412 00:27:41,020 00:27:46,160 And wear a wire and meet with Michael Milken. And wear a wire and meet with Michael Milken.
413 00:27:47,900 00:27:51,830 So he went out to Los Angeles and set up a meeting. So he went out to Los Angeles and set up a meeting.
414 00:27:51,830 00:27:56,700 Where else? Well, Ivan Boesky's hotel, the Beverley Hills Hotel. Where else? Well, Ivan Boesky's hotel, the Beverley Hills Hotel.
415 00:27:57,340 00:28:02,510 [Pitt] When Mr. Boesky was outfitted with a wire, [Pitt] When Mr. Boesky was outfitted with a wire,
416 00:28:02,510 00:28:05,510 the agent who was assigned to the case the agent who was assigned to the case
417 00:28:05,510 00:28:12,380 gave him a t-shirt for him to wear, to which the wire would be attached. gave him a t-shirt for him to wear, to which the wire would be attached.
418 00:28:12,390 00:28:17,260 This was problematic because Mr. Boesky was known This was problematic because Mr. Boesky was known
419 00:28:17,260 00:28:19,730 to break out in a rash to break out in a rash
420 00:28:19,730 00:28:26,170 if any material worth less than $600 if any material worth less than $600
421 00:28:26,170 00:28:27,770 touched his skin. touched his skin.
422 00:28:28,040 00:28:33,440 Nonetheless, he put the t-shirt on and wore the wire. Nonetheless, he put the t-shirt on and wore the wire.
423 00:28:34,110 00:28:36,510 [Stewart] The drama of that meeting [Stewart] The drama of that meeting
424 00:28:36,510 00:28:40,610 where Boesky knew he was recording the most important man where Boesky knew he was recording the most important man
425 00:28:40,610 00:28:45,780 in American finance, and was in the course of implicating him, in American finance, and was in the course of implicating him,
426 00:28:46,620 00:28:50,160 somebody must have been sweating in that room. Maybe they both were. somebody must have been sweating in that room. Maybe they both were.
427 00:28:51,530 00:28:56,530 It didn't start as well as Boesky might have been hoping for. It didn't start as well as Boesky might have been hoping for.
428 00:28:56,530 00:29:01,200 It wasn't like Milken stepped right up and, you know, helped himself to a fruit plate It wasn't like Milken stepped right up and, you know, helped himself to a fruit plate
429 00:29:01,200 00:29:04,970 and then started saying, "Oh right Ivan, remember when we did this, this and this. and then started saying, "Oh right Ivan, remember when we did this, this and this.
430 00:29:04,970 00:29:06,340 "And what we're gonna do about it"? "And what we're gonna do about it"?
431 00:29:07,270 00:29:11,910 But then Boesky brought up a $5.3 million payment. But then Boesky brought up a $5.3 million payment.
432 00:29:12,350 00:29:17,750 [Pitt] At some point in their business relationship there was a demand [Pitt] At some point in their business relationship there was a demand
433 00:29:17,750 00:29:22,190 for a payment by Mr. Milken of $5.3 million. for a payment by Mr. Milken of $5.3 million.
434 00:29:22,190 00:29:24,720 [Stewart] And Milken didn't say, "Oh I don't know what you're talking about." [Stewart] And Milken didn't say, "Oh I don't know what you're talking about."
435 00:29:24,730 00:29:28,630 Or "where did that come from?" He knew about the $5.3 million payment. Or "where did that come from?" He knew about the $5.3 million payment.
436 00:29:28,930 00:29:33,500 Boesky said something like, "You know I think I still owe you more money on that. Boesky said something like, "You know I think I still owe you more money on that.
437 00:29:33,500 00:29:34,900 "How should I pay you?" "How should I pay you?"
438 00:29:34,900 00:29:37,470 That was as close as there was That was as close as there was
439 00:29:37,470 00:29:43,840 to what in common verbiage would be called a smoking gun. to what in common verbiage would be called a smoking gun.
440 00:29:45,750 00:29:48,710 [Stewart] Michael Milken was doomed. [Stewart] Michael Milken was doomed.
441 00:29:51,050 00:29:52,580 [newsreader] On this Columbus Day, [newsreader] On this Columbus Day,
442 00:29:52,590 00:29:55,050 the man leading the parade as Grand Marshall the man leading the parade as Grand Marshall
443 00:29:55,060 00:29:59,490 was Rudolph Giuliani. If he is a hero to Americans of Italian descent, was Rudolph Giuliani. If he is a hero to Americans of Italian descent,
444 00:29:59,490 00:30:04,560 it may be because he has attained the prestigious position of US Attorney. it may be because he has attained the prestigious position of US Attorney.
445 00:30:04,570 00:30:09,030 It may be because he has come to be regarded as the most dynamic crime buster It may be because he has come to be regarded as the most dynamic crime buster
446 00:30:09,040 00:30:12,540 since the days of Thomas Dewey in New York City. Or it may be since the days of Thomas Dewey in New York City. Or it may be
447 00:30:12,540 00:30:17,140 because he has jailed the heads of four of the five mafia families in New York. because he has jailed the heads of four of the five mafia families in New York.
448 00:30:17,140 00:30:19,510 [Jerry Capeci] Once Gotti killed Paul Castellano [Jerry Capeci] Once Gotti killed Paul Castellano
449 00:30:19,510 00:30:22,380 obviously he became public enemy number one. obviously he became public enemy number one.
450 00:30:22,380 00:30:25,280 [George Gabriel] The focus is on John and his power. [George Gabriel] The focus is on John and his power.
451 00:30:25,290 00:30:27,590 He made himself the target 'cause he was the boss. He made himself the target 'cause he was the boss.
452 00:30:27,590 00:30:31,560 It just created a sort of a frenzy within law enforcement to try and make a case on him. It just created a sort of a frenzy within law enforcement to try and make a case on him.
453 00:30:31,560 00:30:34,230 [Capeci} It's something that we have to go after right now. [Capeci} It's something that we have to go after right now.
454 00:30:34,230 00:30:36,760 We gotta go get Gotti. We gotta go get Gotti. We gotta go get Gotti. We gotta go get Gotti.
455 00:30:39,170 00:30:43,300 A celebrity godfather unlike anything the world had ever seen before. A celebrity godfather unlike anything the world had ever seen before.
456 00:30:44,340 00:30:47,870 [Bruce Mouw] He looks the part, like a rock star. [Bruce Mouw] He looks the part, like a rock star.
457 00:30:47,880 00:30:50,040 He's living the life. He's living the life.
458 00:30:50,040 00:30:53,110 The more famous he got, the more the public seemed to forget how ruthless he was. The more famous he got, the more the public seemed to forget how ruthless he was.
459 00:30:53,110 00:30:56,680 Whenever I see him walking he always has a marvelous smile on his face. Whenever I see him walking he always has a marvelous smile on his face.
460 00:30:56,680 00:30:59,020 In fact I admire the way he dresses. In fact I admire the way he dresses.
461 00:30:59,020 00:31:01,890 And the Feds were growing increasingly frustrated. And the Feds were growing increasingly frustrated.
462 00:31:01,890 00:31:05,320 John fancied himself to be a mobster's mobster. John fancied himself to be a mobster's mobster.
463 00:31:05,330 00:31:08,630 It was important for him to show everyone he was the... It was important for him to show everyone he was the...
464 00:31:08,630 00:31:13,600 not just the toughest as far as fiercest, but he was an invincible boss. not just the toughest as far as fiercest, but he was an invincible boss.
465 00:31:13,600 00:31:15,630 You just didn't wanna cross him. You just didn't wanna cross him.
466 00:31:15,640 00:31:19,400 [newsreader] Earlier this year, Romuald Piecyk, a refrigeration mechanic, accused Gotti [newsreader] Earlier this year, Romuald Piecyk, a refrigeration mechanic, accused Gotti
467 00:31:19,410 00:31:24,110 and an associate of beating and robbing him in a dispute over a double parked car. and an associate of beating and robbing him in a dispute over a double parked car.
468 00:31:25,580 00:31:29,880 I mean that's just typical John. Commands power over hundreds of ruthless people. I mean that's just typical John. Commands power over hundreds of ruthless people.
469 00:31:29,880 00:31:34,290 And he gets into a parking dispute with a guy and gets out of the car and smacks him. And he gets into a parking dispute with a guy and gets out of the car and smacks him.
470 00:31:34,290 00:31:38,160 "You don't know who I am?" And the guy didn't really know who he was. "You don't know who I am?" And the guy didn't really know who he was.
471 00:31:38,160 00:31:42,060 [newsreader] When the victim, Romuald Piecyk, learned who Gotti was, [newsreader] When the victim, Romuald Piecyk, learned who Gotti was,
472 00:31:42,060 00:31:43,930 he suddenly couldn't remember who hit him. he suddenly couldn't remember who hit him.
473 00:31:43,930 00:31:46,330 Romuald Piecyk knew not to be in court Romuald Piecyk knew not to be in court
474 00:31:46,330 00:31:49,300 pointing his finger at the boss of the Gambino crime family. pointing his finger at the boss of the Gambino crime family.
475 00:31:49,300 00:31:50,540 He all of a sudden got amnesia. He all of a sudden got amnesia.
476 00:31:50,540 00:31:52,100 He wouldn't testify, he knew nothing. He wouldn't testify, he knew nothing.
477 00:31:52,110 00:31:54,670 And it became known as the "I forgotti case." And it became known as the "I forgotti case."
478 00:31:56,210 00:31:59,980 John Gotti walked out of court a free man. John Gotti walked out of court a free man.
479 00:32:02,180 00:32:07,190 Because he was so respected and feared, he had a banner that you can't touch him. Because he was so respected and feared, he had a banner that you can't touch him.
480 00:32:07,760 00:32:09,590 So he was doing whatever he wants. So he was doing whatever he wants.
481 00:32:10,220 00:32:15,090 Law enforcement officials decided we definitely have to figure out a way to stop him. Law enforcement officials decided we definitely have to figure out a way to stop him.
482 00:32:15,100 00:32:17,830 The eastern district started their own case on John Gotti. The eastern district started their own case on John Gotti.
483 00:32:17,830 00:32:21,800 Based on historical Rico, some hijackings, some other stuff. Based on historical Rico, some hijackings, some other stuff.
484 00:32:22,200 00:32:24,200 [Capeci] So John Gotti was charged with murder, [Capeci] So John Gotti was charged with murder,
485 00:32:24,200 00:32:29,410 with being involved in several racketeering activities along the way. with being involved in several racketeering activities along the way.
486 00:32:29,410 00:32:31,480 Including loan sharking, gambling... Including loan sharking, gambling...
487 00:32:31,480 00:32:36,210 [newsreader] It's alleged that Gotti operated out of the Bergen Hunt and Fish Club. [newsreader] It's alleged that Gotti operated out of the Bergen Hunt and Fish Club.
488 00:32:36,220 00:32:39,480 From there, he led his men in an number of criminal activities, From there, he led his men in an number of criminal activities,
489 00:32:39,490 00:32:42,150 including extortion, racketeering and murder. including extortion, racketeering and murder.
490 00:32:42,390 00:32:45,590 The expectation, really, from the squad was he was gonna get convicted. The expectation, really, from the squad was he was gonna get convicted.
491 00:32:46,290 00:32:50,200 When he showed up at the courthouse, there were more news reporters When he showed up at the courthouse, there were more news reporters
492 00:32:50,200 00:32:53,030 and cameras there than had ever been there before I think. and cameras there than had ever been there before I think.
493 00:32:53,030 00:32:55,300 [newsreader] Mr. Gotti, are you concerned about the trial? [newsreader] Mr. Gotti, are you concerned about the trial?
494 00:32:55,300 00:32:58,440 [Capeci] He had a smile on his face and when he was asked... [Capeci] He had a smile on his face and when he was asked...
495 00:32:58,440 00:33:00,310 [newsreader] Are you the new head of the Gambino family? [newsreader] Are you the new head of the Gambino family?
496 00:33:00,310 00:33:02,710 You know, about being the boss of the crime family, You know, about being the boss of the crime family,
497 00:33:02,710 00:33:06,080 he said I'm the boss of my wife and kids at home. he said I'm the boss of my wife and kids at home.
498 00:33:06,950 00:33:08,950 This is how brazen this guy was. This is how brazen this guy was.
499 00:33:08,950 00:33:12,120 At his own trial on a break, he singles me out in the back of the room, At his own trial on a break, he singles me out in the back of the room,
500 00:33:12,120 00:33:14,720 "Hey who are you?" So I told him who I was. "Hey who are you?" So I told him who I was.
501 00:33:14,720 00:33:17,160 I said, "Yeah, you know, I work on the Gambino squad I said, "Yeah, you know, I work on the Gambino squad
502 00:33:17,160 00:33:22,830 with Bruce Mouw." He said, "Oh well you go back and tell Bruce I'm going home." with Bruce Mouw." He said, "Oh well you go back and tell Bruce I'm going home."
503 00:33:23,330 00:33:26,670 I said, "All right I'll deliver the message. I'll tell you what. I said, "All right I'll deliver the message. I'll tell you what.
504 00:33:27,740 00:33:30,270 "You go home, I'll come and congratulate you. "You go home, I'll come and congratulate you.
505 00:33:30,740 00:33:33,540 [Bruce Cutler] Do you know what was meant by that? [Bruce Cutler] Do you know what was meant by that?
506 00:33:33,540 00:33:37,780 Do you know what was in Mr. Gotti's mind when he said that? Do you know what was in Mr. Gotti's mind when he said that?
507 00:33:37,780 00:33:38,940 [Investigator Wright] Yes sir. [Investigator Wright] Yes sir.
508 00:33:39,180 00:33:40,510 You read his mind? You read his mind?
509 00:33:40,510 00:33:42,080 I think it's fairly obvious-- I think it's fairly obvious--
510 00:33:42,080 00:33:44,350 Do you know what's in his mind now, Investigator Wright? Do you know what's in his mind now, Investigator Wright?
511 00:33:44,350 00:33:45,950 No, sir, I do not. No, sir, I do not.
512 00:33:45,950 00:33:47,250 Take a look at him and tell me what he's thinking about. Take a look at him and tell me what he's thinking about.
513 00:33:47,250 00:33:48,920 I wish I knew. I wish I knew.
514 00:33:49,820 00:33:52,020 [Capeci] Bruce Cutler was John Gotti's attorney. [Capeci] Bruce Cutler was John Gotti's attorney.
515 00:33:52,030 00:33:55,760 He was an outspoken, in-your-face defense lawyer. He was an outspoken, in-your-face defense lawyer.
516 00:33:56,430 00:34:02,500 At John Gotti's trial he picked up the indictment and slammed it into the waste paper basket. At John Gotti's trial he picked up the indictment and slammed it into the waste paper basket.
517 00:34:02,500 00:34:04,140 And said it was garbage. And said it was garbage.
518 00:34:04,410 00:34:07,940 In a New York courtroom today there was elation and shock. In a New York courtroom today there was elation and shock.
519 00:34:07,940 00:34:10,040 John Gotti is said by federal prosecutors John Gotti is said by federal prosecutors
520 00:34:10,040 00:34:12,540 to be the newest, most powerful mafia-- to be the newest, most powerful mafia--
521 00:34:12,550 00:34:14,180 The trial lasted half a year. The trial lasted half a year.
522 00:34:14,750 00:34:18,220 [newsreader] Witnesses allege that when the verdict was read, Gotti smirked [newsreader] Witnesses allege that when the verdict was read, Gotti smirked
523 00:34:18,220 00:34:21,920 and shouted at prosecutors, "Shame on them." and shouted at prosecutors, "Shame on them."
524 00:34:25,760 00:34:27,560 [Capeci] It was a stunning victory for him. [Capeci] It was a stunning victory for him.
525 00:34:27,560 00:34:29,590 And a stunning defeat for the government. And a stunning defeat for the government.
526 00:34:30,530 00:34:34,200 My partner and I the day of his acquittal just go right to the Queens Club, My partner and I the day of his acquittal just go right to the Queens Club,
527 00:34:34,200 00:34:35,770 that's where this guy's going. that's where this guy's going.
528 00:34:35,770 00:34:38,770 We see John, I jump out of the car and I walk up and said, We see John, I jump out of the car and I walk up and said,
529 00:34:38,770 00:34:40,610 "Right I don't know if you remember me, "Right I don't know if you remember me,
530 00:34:40,610 00:34:43,640 "I'm George Gabriel, I told you I'd come and congratulate you if you won. "I'm George Gabriel, I told you I'd come and congratulate you if you won.
531 00:34:43,640 00:34:45,610 "Congratulations. I'll be seeing you." "Congratulations. I'll be seeing you."
532 00:34:45,610 00:34:49,280 Thank god they weren't armed because John probably thought he was getting hit. Thank god they weren't armed because John probably thought he was getting hit.
533 00:34:50,280 00:34:53,850 [Capeci] As it turned out, however, it was a bogus acquittal. [Capeci] As it turned out, however, it was a bogus acquittal.
534 00:34:53,850 00:34:55,690 The jury had been bought and paid for. The jury had been bought and paid for.
535 00:34:55,690 00:35:00,030 One of the jurors agreed on a price of $60,000. Which they gave to him One of the jurors agreed on a price of $60,000. Which they gave to him
536 00:35:00,030 00:35:01,790 and he was to hold out during the trial. and he was to hold out during the trial.
537 00:35:01,800 00:35:03,760 And he was one of the reasons why they got an acquittal. And he was one of the reasons why they got an acquittal.
538 00:35:03,930 00:35:10,070 [Capeci] During deliberations, the juror convinced the jury that John Gotti was not guilty [Capeci] During deliberations, the juror convinced the jury that John Gotti was not guilty
539 00:35:10,070 00:35:12,870 of the crimes that he was accused of. of the crimes that he was accused of.
540 00:35:13,310 00:35:16,940 [Gabriel] By the time be gets acquitted from that trial, [Gabriel] By the time be gets acquitted from that trial,
541 00:35:16,940 00:35:19,850 he's becoming this folk hero, even to the mob. he's becoming this folk hero, even to the mob.
542 00:35:19,850 00:35:24,620 The government can't get him. People are now even more fearful of the mob because, god, The government can't get him. People are now even more fearful of the mob because, god,
543 00:35:24,620 00:35:28,050 you can't even put this guy in jail. Everyone knows he killed a boss. you can't even put this guy in jail. Everyone knows he killed a boss.
544 00:35:28,060 00:35:29,820 He's doing all this stuff. You can't touch him. He's doing all this stuff. You can't touch him.
545 00:35:29,820 00:35:34,530 The guy against whom charges could not and would not stick. The guy against whom charges could not and would not stick.
546 00:35:34,530 00:35:36,190 You'll never get this guy. He's untouchable. You'll never get this guy. He's untouchable.
547 00:35:36,200 00:35:40,300 In New York today they are calling John Gotti the Teflon Don. In New York today they are calling John Gotti the Teflon Don.
548 00:35:40,300 00:35:44,170 But it wasn't just law enforcement who had a score to settle with this mob star. But it wasn't just law enforcement who had a score to settle with this mob star.
549 00:35:44,170 00:35:47,670 He'd broken the rules of La Cosa Nostra by killing the boss. He'd broken the rules of La Cosa Nostra by killing the boss.
550 00:35:47,670 00:35:50,480 And now the families wanted blood. And now the families wanted blood.
551 00:35:50,480 00:35:53,610 The Genovese family and Lokasi family were really upset. The Genovese family and Lokasi family were really upset.
552 00:35:53,950 00:35:58,480 Cause they liked Paul Castellano and he's a traditional boss. There's no reason to kill him. Cause they liked Paul Castellano and he's a traditional boss. There's no reason to kill him.
553 00:35:59,150 00:36:03,520 Killing the boss is like the cardinal rule you just don't go and do that. That was nuts. Killing the boss is like the cardinal rule you just don't go and do that. That was nuts.
554 00:36:03,520 00:36:09,390 The Lokasi and Genovese crime families decided that Gotti had violated the rules The Lokasi and Genovese crime families decided that Gotti had violated the rules
555 00:36:09,400 00:36:14,000 and was deserving of death for having killed his boss. and was deserving of death for having killed his boss.
556 00:36:19,170 00:36:21,570 Police in New York City are worried about a mob war this morning Police in New York City are worried about a mob war this morning
557 00:36:21,580 00:36:26,310 after an apparent gangland killing Sunday in Brooklyn. A car bomb killed one man, after an apparent gangland killing Sunday in Brooklyn. A car bomb killed one man,
558 00:36:26,310 00:36:29,950 reportedly a lieutenant in one of the country's most powerful mafia families. reportedly a lieutenant in one of the country's most powerful mafia families.
559 00:36:30,550 00:36:35,820 A bomb was planted under a car that Gotti was expected to be driving A bomb was planted under a car that Gotti was expected to be driving
560 00:36:35,820 00:36:39,120 after a meeting at a social club in Brooklyn. after a meeting at a social club in Brooklyn.
561 00:36:41,030 00:36:43,230 You plant a bomb right under John's car. You plant a bomb right under John's car.
562 00:36:45,430 00:36:50,100 Fortunately for John Gotti he decided not to go to that social club. Fortunately for John Gotti he decided not to go to that social club.
563 00:36:50,440 00:36:55,870 When Frank DiCico and someone who looked liked John Gotti got into the car, When Frank DiCico and someone who looked liked John Gotti got into the car,
564 00:36:56,680 00:36:59,510 a button was pushed, the car blew up. a button was pushed, the car blew up.
565 00:36:59,750 00:37:02,650 [newsreader] DiCico was blown to bits a short time later. [newsreader] DiCico was blown to bits a short time later.
566 00:37:02,650 00:37:06,450 Police believe his death was arranged by older members of the Gambino family Police believe his death was arranged by older members of the Gambino family
567 00:37:06,450 00:37:11,390 who were still angry about Castellano's murder. Gotti was clearly in trouble. who were still angry about Castellano's murder. Gotti was clearly in trouble.
568 00:37:11,390 00:37:15,690 He was in trouble with Castlellano's loyalists and was in trouble with the law. He was in trouble with Castlellano's loyalists and was in trouble with the law.
569 00:37:15,700 00:37:18,830 John Gotti escaped for the moment. John Gotti escaped for the moment.
570 00:37:21,270 00:37:25,740 New York, in all its greedy seedy glory, had re New York, in all its greedy seedy glory, had re
571 00:37:26,570 00:37:28,940 We're dying. The city is dying. We're dying. The city is dying.
572 00:37:28,940 00:37:31,310 The signs were everywhere if you knew where to look. The signs were everywhere if you knew where to look.
573 00:37:33,010 00:37:35,650 It was a powder keg waiting to explode. It was a powder keg waiting to explode.
574 00:37:37,650 00:37:42,190 And one of Wall Street's richest men would be the spark that lit the fuse. And one of Wall Street's richest men would be the spark that lit the fuse.
575 00:37:42,190 00:37:43,560 [people yelling and bells ringing] [people yelling and bells ringing]
576 00:37:44,020 00:37:50,300 It's November 14th, 1986. The SEC announced a press conference. It's November 14th, 1986. The SEC announced a press conference.
577 00:37:50,800 00:37:52,600 [newsreader] After the stock markets closed, [newsreader] After the stock markets closed,
578 00:37:52,600 00:37:55,200 the SEC announced the biggest crackdown ever the SEC announced the biggest crackdown ever
579 00:37:55,200 00:38:00,010 in an insider trading case. Ivan Boesky admitted that he had cashed in in an insider trading case. Ivan Boesky admitted that he had cashed in
580 00:38:00,010 00:38:03,310 on insider information, which was not available to the public. on insider information, which was not available to the public.
581 00:38:03,310 00:38:10,220 The SEC put out a press release saying that Ivan Boesky had been charged with insider trading. The SEC put out a press release saying that Ivan Boesky had been charged with insider trading.
582 00:38:10,220 00:38:13,020 That became known as Boesky Day. That became known as Boesky Day.
583 00:38:14,960 00:38:18,990 [newsreader] Boesky said he would plead guilty and cooperate with federal authorities [newsreader] Boesky said he would plead guilty and cooperate with federal authorities
584 00:38:18,990 00:38:22,260 in a widening investigation of insider trading, in a widening investigation of insider trading,
585 00:38:22,260 00:38:27,270 which experts believe could involve other prominent Wall Street figures. which experts believe could involve other prominent Wall Street figures.
586 00:38:27,700 00:38:31,370 [Auletta] The rotten apple theory that applied to Dennis Levine [Auletta] The rotten apple theory that applied to Dennis Levine
587 00:38:31,370 00:38:32,840 was a defense that was crumbling. was a defense that was crumbling.
588 00:38:33,010 00:38:35,940 The barrel had some problems. And some rot in it. The barrel had some problems. And some rot in it.
589 00:38:37,340 00:38:40,410 When all of a sudden Ivan became, truly, Ivan the Terrible, When all of a sudden Ivan became, truly, Ivan the Terrible,
590 00:38:40,410 00:38:43,010 when that headline ripped across the Street, when that headline ripped across the Street,
591 00:38:43,420 00:38:47,790 I think true paranoia really set in that everybody could be exposed. I think true paranoia really set in that everybody could be exposed.
592 00:38:47,790 00:38:50,720 Because he touched so much of Wall Street. Because he touched so much of Wall Street.
593 00:38:50,720 00:38:53,530 [newsreader] To try to win leniency for himself, [newsreader] To try to win leniency for himself,
594 00:38:53,530 00:38:55,990 Boesky cooperated with federal officials Boesky cooperated with federal officials
595 00:38:56,000 00:39:01,030 in secretly taping telephone conversations with other Wall Street operators. in secretly taping telephone conversations with other Wall Street operators.
596 00:39:01,030 00:39:05,840 I remember when that news struck .It was like all the air went out of the room. I remember when that news struck .It was like all the air went out of the room.
597 00:39:05,840 00:39:08,540 He dealt with everyone. He dealt with everyone.
598 00:39:08,710 00:39:13,480 [newsreader] For those who dealt and spoke with Boesky, now a period of anxious waiting. [newsreader] For those who dealt and spoke with Boesky, now a period of anxious waiting.
599 00:39:13,480 00:39:16,580 [newsreader] All over Wall Street, they're practically jumping out windows. [newsreader] All over Wall Street, they're practically jumping out windows.
600 00:39:16,980 00:39:20,690 Paranoia ran rampant. It was like everybody on Wall Street Paranoia ran rampant. It was like everybody on Wall Street
601 00:39:20,690 00:39:26,220 was suddenly thinking, "Oh god, did I ever talk to Ivan Boesky? What'd I say? What did he say?" was suddenly thinking, "Oh god, did I ever talk to Ivan Boesky? What'd I say? What did he say?"
602 00:39:26,230 00:39:29,290 And of course there were some people who realized they were in trouble. And of course there were some people who realized they were in trouble.
603 00:39:29,300 00:39:32,930 [Rita Braver] As one former SEC official put it, this is like arresting [Rita Braver] As one former SEC official put it, this is like arresting
604 00:39:32,930 00:39:37,070 the madam of a brothel and finding her private book of clients. the madam of a brothel and finding her private book of clients.
605 00:39:37,970 00:39:42,770 [Burrough] Boesky Day was a deep and profound shock to the system. [Burrough] Boesky Day was a deep and profound shock to the system.
606 00:39:42,780 00:39:46,180 And because of the nebulous nature of insider trading, And because of the nebulous nature of insider trading,
607 00:39:46,180 00:39:47,980 the fact that you may just be the fact that you may just be
608 00:39:47,980 00:39:51,520 trading on a tip and not know that it came from illegal information, trading on a tip and not know that it came from illegal information,
609 00:39:51,520 00:39:53,420 you know, that's a legitimate fear. you know, that's a legitimate fear.
610 00:39:53,420 00:39:56,020 If I traded on a bunch of tips in 1987 If I traded on a bunch of tips in 1987
611 00:39:56,020 00:39:59,820 and I suddenly learned that my cousin's cousin knew Ivan Boesky, and I suddenly learned that my cousin's cousin knew Ivan Boesky,
612 00:39:59,830 00:40:02,460 I'm worried. Is Boesky naming me? I'm worried. Is Boesky naming me?
613 00:40:02,460 00:40:05,600 As further disclosures resulting from the Boesky affair As further disclosures resulting from the Boesky affair
614 00:40:05,600 00:40:09,200 may weaken public confidence in financial markets... may weaken public confidence in financial markets...
615 00:40:09,800 00:40:13,740 [Stewart] And that fear had an impact on the stock market. [Stewart] And that fear had an impact on the stock market.
616 00:40:14,210 00:40:16,070 [newsreader] In addition to stunning the financial world, [newsreader] In addition to stunning the financial world,
617 00:40:16,080 00:40:18,910 the Ivan Boesky affair has had an immediate effect the Ivan Boesky affair has had an immediate effect
618 00:40:18,910 00:40:20,310 on takeover stocks. on takeover stocks.
619 00:40:20,310 00:40:24,450 As the SEC continues its big chill against insider trading. As the SEC continues its big chill against insider trading.
620 00:40:24,450 00:40:26,250 Wall Street is based on psychology. Wall Street is based on psychology.
621 00:40:26,250 00:40:30,690 People are guessing and if suddenly the guessing turns dark People are guessing and if suddenly the guessing turns dark
622 00:40:30,690 00:40:34,560 and you, "Say oh my god, more people are gonna get indicted on insider trading," and you, "Say oh my god, more people are gonna get indicted on insider trading,"
623 00:40:34,560 00:40:37,900 panic sets in and people start abandoning stocks. panic sets in and people start abandoning stocks.
624 00:40:37,900 00:40:41,400 And the abandoned stocks, the stock market drops. And the abandoned stocks, the stock market drops.
625 00:40:41,400 00:40:43,540 The market was off more than 40 points. The market was off more than 40 points.
626 00:40:43,540 00:40:48,110 [newsreader] Small investors checking on their stocks during their lunch hour blamed Boesky. [newsreader] Small investors checking on their stocks during their lunch hour blamed Boesky.
627 00:40:48,110 00:40:52,380 It's not fair. It's like if you've got money you can do whatever you want. It's not fair. It's like if you've got money you can do whatever you want.
628 00:40:52,380 00:40:57,220 I don't think it's fair for someone to really know so much before I do. I don't think it's fair for someone to really know so much before I do.
629 00:40:57,480 00:41:02,650 Small investors have a right to believe that our markets are honest. Small investors have a right to believe that our markets are honest.
630 00:41:03,020 00:41:07,730 That they are not being manipulated. That there are no Boeskys out there. That they are not being manipulated. That there are no Boeskys out there.
631 00:41:07,730 00:41:13,400 It's incredibly important that the market function in a way that's as fair as possible. It's incredibly important that the market function in a way that's as fair as possible.
632 00:41:13,400 00:41:17,070 And that people believe that it's functioning in a way that's as fair as possible. And that people believe that it's functioning in a way that's as fair as possible.
633 00:41:17,070 00:41:22,010 For every dollar of profit that's made by an Ivan Boesky, who breaks the rules, For every dollar of profit that's made by an Ivan Boesky, who breaks the rules,
634 00:41:22,010 00:41:26,010 there's a dollar that's lost by somebody else in the market. there's a dollar that's lost by somebody else in the market.
635 00:41:26,010 00:41:31,550 Millions of Americans depend on the stock market for financial security, retirement. Millions of Americans depend on the stock market for financial security, retirement.
636 00:41:31,550 00:41:34,090 If people begin to think that the game is rigged, If people begin to think that the game is rigged,
637 00:41:34,090 00:41:36,550 then the stock market as we know it is over. then the stock market as we know it is over.
638 00:41:36,560 00:41:41,430 [Susan Lee] Unless you're an inside member of this inside club, you cannot make money. [Susan Lee] Unless you're an inside member of this inside club, you cannot make money.
639 00:41:42,630 00:41:49,000 Boesky was a really big deal. It was a signal moment in modern American history. Boesky was a really big deal. It was a signal moment in modern American history.
640 00:41:49,000 00:41:52,040 Both because of the gaudy displays of wealth. Both because of the gaudy displays of wealth.
641 00:41:52,040 00:41:55,810 Because of the financial overreach. Because of the crimes. Because of the financial overreach. Because of the crimes.
642 00:41:55,810 00:41:57,540 [newsreader] Boesky's troubles may not end [newsreader] Boesky's troubles may not end
643 00:41:57,540 00:42:01,580 with the $100 million repayment of profits and penalties. with the $100 million repayment of profits and penalties.
644 00:42:01,880 00:42:05,350 [newsreader] Boeksy has agreed to plead guilty to a criminal charge. [newsreader] Boeksy has agreed to plead guilty to a criminal charge.
645 00:42:05,350 00:42:07,490 The maximum sentence is five years. The maximum sentence is five years.
646 00:42:07,820 00:42:10,490 [L. William Seidman] If he's guilty as charged, [L. William Seidman] If he's guilty as charged,
647 00:42:10,490 00:42:13,490 and if we had capital punishment for white collar crimes, and if we had capital punishment for white collar crimes,
648 00:42:13,490 00:42:16,760 I'd say he'd be a prime candidate. I'd say he'd be a prime candidate.
649 00:42:16,760 00:42:19,000 Wall Street's biggest enigma had been exposed Wall Street's biggest enigma had been exposed
650 00:42:19,000 00:42:21,430 and the repercussions would be far reaching. and the repercussions would be far reaching.
651 00:42:22,500 00:42:27,540 [Troy] The hangover is economic. The hangover is cultural. The hangover is political. [Troy] The hangover is economic. The hangover is cultural. The hangover is political.
652 00:42:27,540 00:42:30,880 But most disturbing of all, the hangover is moral. But most disturbing of all, the hangover is moral.
653 00:42:31,710 00:42:35,580 in the 1980s is the old cliché: A greed crime. in the 1980s is the old cliché: A greed crime.
653 00:42:31,710 00:42:35,580 in the 1980s is the old cliché: A greed crime. in the 1980s is the old cliché: A greed crime.