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1 00:00:00,830 00:00:02,230 New York City. New York City.
2 00:00:02,330 00:00:04,800 Happy new year! Happy new year!
3 00:00:04,900 00:00:08,340 At the dawn of the 80s, it was exploding with opportunity. At the dawn of the 80s, it was exploding with opportunity.
4 00:00:09,240 00:00:11,510 [newsreader] Boom times, that's what the markets signal today. [newsreader] Boom times, that's what the markets signal today.
5 00:00:11,610 00:00:14,440 An economy that's on a roll in this country. An economy that's on a roll in this country.
6 00:00:14,540 00:00:18,250 A place to seek money, power, fame. A place to seek money, power, fame.
7 00:00:18,350 00:00:22,650 Amid the glitz and greed, five titans seized their moment. Amid the glitz and greed, five titans seized their moment.
8 00:00:24,490 00:00:27,990 But in 1987, the boom times came to a halt. But in 1987, the boom times came to a halt.
9 00:00:28,090 00:00:31,660 And with the party over, the backlash began. And with the party over, the backlash began.
10 00:00:31,760 00:00:34,260 A Wall Street cheat found his reputation in ruins. A Wall Street cheat found his reputation in ruins.
11 00:00:34,360 00:00:37,630 [newsreader] Boesky admitted to profiting from insider trading. [newsreader] Boesky admitted to profiting from insider trading.
12 00:00:37,730 00:00:39,630 And decided he wouldn't go down alone. And decided he wouldn't go down alone.
13 00:00:39,740 00:00:42,640 Boesky ratted out everybody. Boesky ratted out everybody.
14 00:00:42,740 00:00:45,540 A Hotel Queen faced a city full of angry subjects. A Hotel Queen faced a city full of angry subjects.
15 00:00:45,640 00:00:47,270 And I hope she gets everything that comes to her. And I hope she gets everything that comes to her.
16 00:00:47,380 00:00:49,040 And a future behind bars. And a future behind bars.
17 00:00:49,150 00:00:51,280 She had been indicted on a great many counts. She had been indicted on a great many counts.
18 00:00:51,380 00:00:52,880 I'm innocent. I'm innocent.
19 00:00:52,980 00:00:55,280 A gilded gangster continued to taunt the feds. A gilded gangster continued to taunt the feds.
20 00:00:55,380 00:00:57,620 He was just out there, thumbing his nose at law enforcement. He was just out there, thumbing his nose at law enforcement.
21 00:00:57,720 00:00:59,720 Even as he handed them a smoking gun. Even as he handed them a smoking gun.
22 00:00:59,820 00:01:03,490 Tape recorded conversations were a gold mine for the FBI, they were a jackpot. Tape recorded conversations were a gold mine for the FBI, they were a jackpot.
23 00:01:03,590 00:01:06,460 And while a politically minded prosecutor pounced on them all... And while a politically minded prosecutor pounced on them all...
24 00:01:06,560 00:01:10,730 Giuliani earned this reputation as this law and order person. Giuliani earned this reputation as this law and order person.
25 00:01:10,830 00:01:14,200 If you violate the law, you go to prison. If you violate the law, you go to prison.
26 00:01:14,300 00:01:16,570 A developer from Queens kept pushing his luck. A developer from Queens kept pushing his luck.
27 00:01:16,670 00:01:21,180 Eventually, word started to get out. It was time to take him down. Eventually, word started to get out. It was time to take him down.
28 00:01:28,250 00:01:31,450 It was a toxic wind that was ripe to blow up. It was a toxic wind that was ripe to blow up.
29 00:01:32,820 00:01:38,930 He said, "I wish you could see her naked." Even today, it makes me uncomfortable. He said, "I wish you could see her naked." Even today, it makes me uncomfortable.
30 00:01:39,030 00:01:44,570 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.
31 00:01:44,670 00:01:47,900 But as the 90s neared, they'd finally face their day of reckoning. But as the 90s neared, they'd finally face their day of reckoning.
32 00:01:48,000 00:01:49,870 -Are you surprised? -No comment. -Are you surprised? -No comment.
33 00:01:49,970 00:01:52,440 And empires would fall. And empires would fall.
34 00:01:52,540 00:01:54,880 We are very honorable people. We are very honorable people.
35 00:02:18,470 00:02:20,530 [shouting] [shouting]
36 00:02:20,640 00:02:25,740 Black Monday, October 19th, 1987 when the stock market went into a free fall. Black Monday, October 19th, 1987 when the stock market went into a free fall.
37 00:02:26,480 00:02:29,980 Today's precipitous plunge struck fear in the hearts and pocket books Today's precipitous plunge struck fear in the hearts and pocket books
38 00:02:30,080 00:02:31,450 of even Wall Street veterans. of even Wall Street veterans.
39 00:02:31,550 00:02:35,120 The market is now down 221 points. The market is now down 221 points.
40 00:02:35,220 00:02:36,550 Does that make you nervous? Does that make you nervous?
41 00:02:36,650 00:02:38,290 No, I died already. No, I died already.
42 00:02:38,390 00:02:41,560 Black Monday was the inflection point at which all of a sudden Black Monday was the inflection point at which all of a sudden
43 00:02:41,660 00:02:44,630 the party screeched to a halt. the party screeched to a halt.
44 00:02:44,730 00:02:48,100 [newsreader] In trading rooms on Wall Street there was panic. [newsreader] In trading rooms on Wall Street there was panic.
45 00:02:48,200 00:02:51,600 Sell orders flooded in from big institutional investors, Sell orders flooded in from big institutional investors,
46 00:02:51,700 00:02:54,300 from private investors. From mutual funds. from private investors. From mutual funds.
47 00:02:55,070 00:02:57,500 A bull market that had gone on too far and too long A bull market that had gone on too far and too long
48 00:02:57,610 00:03:01,140 without enough corrections suddenly just went down. without enough corrections suddenly just went down.
49 00:03:01,240 00:03:06,510 [newsreader] The largest drop in stock market history, falling 508 points on the Dow. [newsreader] The largest drop in stock market history, falling 508 points on the Dow.
50 00:03:06,880 00:03:11,020 It was this absolutely terrifying event where the market was plummeting It was this absolutely terrifying event where the market was plummeting
51 00:03:11,120 00:03:13,350 and it didn't feel like it would ever stop. and it didn't feel like it would ever stop.
52 00:03:13,460 00:03:18,660 [newsreader] More than 604 million shares changed hands with the decline of 22.6 percent [newsreader] More than 604 million shares changed hands with the decline of 22.6 percent
53 00:03:18,760 00:03:23,330 far greater than the single-day loss of 1929 which ignited The Great Depression. far greater than the single-day loss of 1929 which ignited The Great Depression.
54 00:03:23,430 00:03:26,270 Panic, complete panic. Everyone's going crazy. Panic, complete panic. Everyone's going crazy.
55 00:03:31,510 00:03:33,870 What happens when everybody tries to leave the room at the same time? What happens when everybody tries to leave the room at the same time?
56 00:03:33,980 00:03:38,380 Well, nobody can get out. And that's the 1987 crash in a nutshell. Well, nobody can get out. And that's the 1987 crash in a nutshell.
57 00:03:38,480 00:03:42,980 There were moments where Washington bureaucrats believed that not only There were moments where Washington bureaucrats believed that not only
58 00:03:43,090 00:03:46,150 Wall Street but the American economy could melt down. Wall Street but the American economy could melt down.
59 00:03:46,260 00:03:50,460 The chastening that everybody who went through Black Monday went through. The chastening that everybody who went through Black Monday went through.
60 00:03:50,560 00:03:56,200 There was a new found caution that it instilled in everybody I knew on Wall Street. There was a new found caution that it instilled in everybody I knew on Wall Street.
61 00:03:56,300 00:04:04,070 We'd now seen what was possible when the confetti years suddenly turned dark. We'd now seen what was possible when the confetti years suddenly turned dark.
62 00:04:04,170 00:04:08,140 It was a devastating blow to public confidence in the markets. It was a devastating blow to public confidence in the markets.
63 00:04:08,240 00:04:13,180 But it wasn't the first. For months, a drum beat of revelations had cast a shadow But it wasn't the first. For months, a drum beat of revelations had cast a shadow
64 00:04:13,280 00:04:18,350 on Wall Street. Starting with the spectacular collapse of an arbitrager. on Wall Street. Starting with the spectacular collapse of an arbitrager.
65 00:04:18,450 00:04:21,150 [newsreader] Ivan Boesky came to the US District Court today [newsreader] Ivan Boesky came to the US District Court today
66 00:04:21,260 00:04:23,520 squeezed into a Japanese compact car. squeezed into a Japanese compact car.
67 00:04:23,830 00:04:27,830 He's already paid 100 million in penalties for insider trading violations, He's already paid 100 million in penalties for insider trading violations,
68 00:04:27,930 00:04:33,330 is barred from the securities industry for life, disbarred, and, his lawyer says, broke. is barred from the securities industry for life, disbarred, and, his lawyer says, broke.
69 00:04:34,100 00:04:39,740 [Sorkin] The Boesky story represented this rags-to-riches guy who came from nothing [Sorkin] The Boesky story represented this rags-to-riches guy who came from nothing
70 00:04:39,840 00:04:44,180 who rode the Wall Street wave. He became emblematic who rode the Wall Street wave. He became emblematic
71 00:04:44,280 00:04:48,450 of what Wall Street was in the 1980s and the idea that he was rubbing of what Wall Street was in the 1980s and the idea that he was rubbing
72 00:04:48,550 00:04:52,620 his success in people's faces 'cause he was so out there with his success, his success in people's faces 'cause he was so out there with his success,
73 00:04:52,720 00:04:58,360 he was so public about his success. When he came undone, the lips curled. he was so public about his success. When he came undone, the lips curled.
74 00:04:58,460 00:05:01,260 People smiled. The schadenfreude was thick. People smiled. The schadenfreude was thick.
75 00:05:04,770 00:05:08,470 [inaudible] [inaudible]
76 00:05:11,110 00:05:13,070 [Stewart] When Boesky agreed to plead guilty, [Stewart] When Boesky agreed to plead guilty,
77 00:05:13,180 00:05:15,940 he knew he's be sentenced to some kind of prison term. he knew he's be sentenced to some kind of prison term.
78 00:05:16,050 00:05:18,380 Depending on the value of his cooperation. Depending on the value of his cooperation.
79 00:05:18,480 00:05:23,080 [Madrick] Boesky decided to cooperate 'cause he didn't think he had any way to fight it out. [Madrick] Boesky decided to cooperate 'cause he didn't think he had any way to fight it out.
80 00:05:23,190 00:05:25,950 He was guilty and he wanted to save his ass. He was guilty and he wanted to save his ass.
81 00:05:26,060 00:05:32,960 [newsreader] Boesky faces up to five years in prison and a fine of $250,000. [newsreader] Boesky faces up to five years in prison and a fine of $250,000.
82 00:05:33,060 00:05:35,630 It had been a remarkable run for the kid from Detroit. It had been a remarkable run for the kid from Detroit.
83 00:05:35,730 00:05:38,170 But now he knew it had come to an end. But now he knew it had come to an end.
84 00:05:38,270 00:05:44,340 And if he had to end other careers to minimize the fallout, well, so be it. And if he had to end other careers to minimize the fallout, well, so be it.
85 00:05:44,440 00:05:46,640 So Boesky ratted out everybody. So Boesky ratted out everybody.
86 00:05:46,740 00:05:50,610 [newsreader] All over the US, people have been shocked by scenes like this. [newsreader] All over the US, people have been shocked by scenes like this.
87 00:05:50,710 00:05:56,480 Investment banker Martin Siegel ducking reporters after pleading guilty to insider trading. Investment banker Martin Siegel ducking reporters after pleading guilty to insider trading.
88 00:05:56,590 00:06:02,260 [Stewart] Siegel said always felt guilty for feeding information to Boesky [Stewart] Siegel said always felt guilty for feeding information to Boesky
89 00:06:02,360 00:06:06,690 and now Martin Siegel is over and Boesky was at the heart of the case and now Martin Siegel is over and Boesky was at the heart of the case
90 00:06:06,800 00:06:10,530 of securities law violations against Michael Milken. of securities law violations against Michael Milken.
91 00:06:10,630 00:06:13,100 He was the center of this information hub. He was the center of this information hub.
92 00:06:13,200 00:06:16,770 That's the most powerful position you can possible be on in Wall Street. That's the most powerful position you can possible be on in Wall Street.
93 00:06:16,870 00:06:21,110 [newsreader] He was worth more than a billion dollars when he got caught cooking the books. [newsreader] He was worth more than a billion dollars when he got caught cooking the books.
94 00:06:21,210 00:06:25,350 [Stewart] Michael Milken eventually pleaded guilty to six felonies [Stewart] Michael Milken eventually pleaded guilty to six felonies
95 00:06:25,450 00:06:28,750 and agreed to pay 600 million in fines. and agreed to pay 600 million in fines.
96 00:06:29,080 00:06:32,020 [Guiliani] Mr. Boesky has been extremely valuable, without his cooperation [Guiliani] Mr. Boesky has been extremely valuable, without his cooperation
97 00:06:32,120 00:06:38,660 there would be people who would be involved in ongoing fraudulent transactions. there would be people who would be involved in ongoing fraudulent transactions.
98 00:06:38,760 00:06:42,460 While the arbitrager downfall destroyed the careers of those around him, While the arbitrager downfall destroyed the careers of those around him,
99 00:06:42,560 00:06:46,500 it bolstered the career of one cunning prosecutor who made the most it bolstered the career of one cunning prosecutor who made the most
100 00:06:46,600 00:06:48,740 of every white collar crook he could cuff. of every white collar crook he could cuff.
101 00:06:49,710 00:06:54,980 [newsreader] Since 1984 there have been more than 48 cases of insider trading, [newsreader] Since 1984 there have been more than 48 cases of insider trading,
102 00:06:55,080 00:07:00,710 many involving the financial community, brought by New York's US Attorney, Rudolph Giuliani. many involving the financial community, brought by New York's US Attorney, Rudolph Giuliani.
103 00:07:00,820 00:07:06,050 They're seen usually as very shrewd, very capable, very industrious. They're seen usually as very shrewd, very capable, very industrious.
104 00:07:06,160 00:07:09,720 Yet there's this whole other side to their life Yet there's this whole other side to their life
105 00:07:09,830 00:07:11,660 in which they are cheating and lying and stealing. in which they are cheating and lying and stealing.
106 00:07:11,760 00:07:14,030 Which they keep secret. Which they keep secret.
107 00:07:14,130 00:07:17,360 [Kirtzman] Rudy Giuliani wanted to be the center of attention and to give enormous power [Kirtzman] Rudy Giuliani wanted to be the center of attention and to give enormous power
108 00:07:17,470 00:07:22,470 to ruin people's lives. There was a famous case of Giuliani going after traders to ruin people's lives. There was a famous case of Giuliani going after traders
109 00:07:22,570 00:07:26,110 at Kidder Peabody and handcuffing them at Kidder Peabody and handcuffing them
110 00:07:26,210 00:07:28,880 and marching them across the trading room floor. and marching them across the trading room floor.
111 00:07:28,980 00:07:31,340 How much did you make from your inside information? How much did you make from your inside information?
112 00:07:31,450 00:07:36,720 [Mahler] A perp walk is the idea of arresting people in this very public and almost theatrical way [Mahler] A perp walk is the idea of arresting people in this very public and almost theatrical way
113 00:07:36,820 00:07:40,620 marching them out of offices so that the news cameras would capture these guys. marching them out of offices so that the news cameras would capture these guys.
114 00:07:40,720 00:07:43,020 Do you think the others are doing the same thing you are? Do you think the others are doing the same thing you are?
115 00:07:43,130 00:07:48,360 [Mahler] Publicly parading these Wall Street millionaires, as if they were common criminals [Mahler] Publicly parading these Wall Street millionaires, as if they were common criminals
116 00:07:48,460 00:07:52,230 It was intended to be a form of deterrence, look what'll happen if you break the law. It was intended to be a form of deterrence, look what'll happen if you break the law.
117 00:07:52,330 00:07:55,800 But you could just as easily argue that he was showboating. But you could just as easily argue that he was showboating.
118 00:07:55,900 00:07:59,040 Everything was kind of a PR campaign for Giuliani. Everything was kind of a PR campaign for Giuliani.
119 00:07:59,140 00:08:02,080 He's busting these guys, he's locking 'em up, he's indicting them. He's busting these guys, he's locking 'em up, he's indicting them.
120 00:08:02,180 00:08:07,050 He did that on purpose and it enhanced his reputation as the Sheriff of New York. He did that on purpose and it enhanced his reputation as the Sheriff of New York.
121 00:08:07,150 00:08:12,150 Part of the criticism was, "Well, those are decent white collar guys. Part of the criticism was, "Well, those are decent white collar guys.
122 00:08:12,250 00:08:15,890 "They, they, and white guys, to boot. they shouldn't be subjected "They, they, and white guys, to boot. they shouldn't be subjected
123 00:08:15,990 00:08:18,930 "to this kind of thing that actual criminals are subjected to." "to this kind of thing that actual criminals are subjected to."
124 00:08:19,030 00:08:21,560 I, I thought, "No, this is good." I, I thought, "No, this is good."
125 00:08:21,660 00:08:25,730 [Stewart] To this day there are people on Wall Street who criticize him [Stewart] To this day there are people on Wall Street who criticize him
126 00:08:25,830 00:08:31,070 but the American people needed to see these people being held accountable, but the American people needed to see these people being held accountable,
127 00:08:31,170 00:08:36,780 that these very wealthy, so- called Masters of the Universe were not above the law. that these very wealthy, so- called Masters of the Universe were not above the law.
128 00:08:36,880 00:08:41,080 They committed crimes. Why not go after 'em? Why not go after the big fish? They committed crimes. Why not go after 'em? Why not go after the big fish?
129 00:08:41,180 00:08:48,990 All this profligate behavior started to begin to move very much out of vogue. All this profligate behavior started to begin to move very much out of vogue.
130 00:08:49,090 00:08:50,920 The so-called "Masters of the Universe" The so-called "Masters of the Universe"
131 00:08:51,030 00:08:53,460 were trading their penthouses for prison cells. were trading their penthouses for prison cells.
132 00:08:53,560 00:08:57,000 Once the heroes of the decade, they were now its villains. Once the heroes of the decade, they were now its villains.
133 00:08:57,400 00:09:04,100 Anyone who embodied these areas of New York City power, Giuliani took aim at. Anyone who embodied these areas of New York City power, Giuliani took aim at.
134 00:09:04,210 00:09:08,170 If you violate the law, whether it's insider trading or tax evasion, If you violate the law, whether it's insider trading or tax evasion,
135 00:09:08,280 00:09:11,710 or fraud or bribery, and so-called "white collar crime," or fraud or bribery, and so-called "white collar crime,"
136 00:09:11,810 00:09:15,180 the overwhelming general rule is that you go to prison. the overwhelming general rule is that you go to prison.
137 00:09:15,280 00:09:20,820 As the disgraced trader awaited his sentencing, the prosecutor savored his victory. As the disgraced trader awaited his sentencing, the prosecutor savored his victory.
138 00:09:20,920 00:09:26,130 But not for long because he'd already set his sights on an even juicier target. But not for long because he'd already set his sights on an even juicier target.
139 00:09:26,230 00:09:30,800 It is now alleged that they did not pay millions of dollars in taxes. It is now alleged that they did not pay millions of dollars in taxes.
140 00:09:31,570 00:09:35,400 [newsreader] US Attorney Rudolph Giuliani said if the Helmsleys are found guilty, [newsreader] US Attorney Rudolph Giuliani said if the Helmsleys are found guilty,
141 00:09:35,500 00:09:37,640 they will serve some jail time. they will serve some jail time.
142 00:09:41,640 00:09:45,610 It was the late 80s in New York and the cultural tide was turning. It was the late 80s in New York and the cultural tide was turning.
143 00:09:45,710 00:09:49,420 For years, some of the city's elite had treated their wealth and fame For years, some of the city's elite had treated their wealth and fame
144 00:09:49,520 00:09:51,890 as a license to act with impunity. as a license to act with impunity.
145 00:09:53,890 00:09:56,560 But now the public was growing tired of their antics and a hard-driving prosecutor But now the public was growing tired of their antics and a hard-driving prosecutor
146 00:09:56,660 00:09:58,430 was capitalizing on their outrage, was capitalizing on their outrage,
147 00:09:59,930 00:10:01,530 going after the formerly untouchable with a vengeance. going after the formerly untouchable with a vengeance.
148 00:10:02,970 00:10:05,570 [newsreader] Former Miss America and New York City official Bess Myerson [newsreader] Former Miss America and New York City official Bess Myerson
149 00:10:05,670 00:10:09,400 is facing a possible 30 years in prison and a half a million dollars in fines. is facing a possible 30 years in prison and a half a million dollars in fines.
150 00:10:09,500 00:10:11,300 We prosecute all sorts of people. We prosecute all sorts of people.
151 00:10:11,410 00:10:13,110 Little people, in-between people, Little people, in-between people,
152 00:10:13,210 00:10:16,110 and some of the wealthiest billionaires in the United States. and some of the wealthiest billionaires in the United States.
153 00:10:16,210 00:10:18,750 And there was no better target among New York's high society And there was no better target among New York's high society
154 00:10:18,850 00:10:23,280 than the Queen of Real Estate, who had been outed as a tax cheat in the press. than the Queen of Real Estate, who had been outed as a tax cheat in the press.
155 00:10:23,990 00:10:28,250 She might have been a scapegoat for the greed and excess of the 80s, She might have been a scapegoat for the greed and excess of the 80s,
156 00:10:28,360 00:10:29,720 but she brought it on herself. but she brought it on herself.
157 00:10:30,330 00:10:33,290 The Helmlseys, one of the world's wealthiest couples, were indicted The Helmlseys, one of the world's wealthiest couples, were indicted
158 00:10:33,400 00:10:37,230 in New York today on state and federal charges involving a tax scam. in New York today on state and federal charges involving a tax scam.
159 00:10:37,330 00:10:43,500 She was an easy target. So imperious, so mean. She was an easy target. So imperious, so mean.
160 00:10:43,610 00:10:48,410 [inaudible] [inaudible]
161 00:10:49,010 00:10:52,950 Leona Helmsley was supposed to have impeccable taste, Leona Helmsley was supposed to have impeccable taste,
162 00:10:53,050 00:10:57,080 you'd expect to have impeccable morals and she didn't. you'd expect to have impeccable morals and she didn't.
163 00:10:59,550 00:11:02,490 New Yorkers had loved her as the queen who stood guard, New Yorkers had loved her as the queen who stood guard,
164 00:11:02,590 00:11:05,830 tending to her customers' every whim. tending to her customers' every whim.
165 00:11:05,930 00:11:09,800 But a queen who defrauded the government and stiffed her contractors? But a queen who defrauded the government and stiffed her contractors?
166 00:11:09,900 00:11:12,430 That they found far less charming. That they found far less charming.
167 00:11:13,600 00:11:16,440 [newsreader] Harry and Leona are in trouble because they spent millions of dollars [newsreader] Harry and Leona are in trouble because they spent millions of dollars
168 00:11:16,540 00:11:18,810 on renovations at their Connecticut estate. on renovations at their Connecticut estate.
169 00:11:18,910 00:11:24,040 Twenty-nine acres, 28 rooms, and allegedly charged it to their businesses for deductions. Twenty-nine acres, 28 rooms, and allegedly charged it to their businesses for deductions.
170 00:11:24,150 00:11:28,180 [Plaskin] She was allegedly deducting personal expenses [Plaskin] She was allegedly deducting personal expenses
171 00:11:28,280 00:11:32,390 as business expenses or expenses for her hotels. as business expenses or expenses for her hotels.
172 00:11:33,120 00:11:38,530 [Feldshuh] She was indicted on one count of conspiracy to defraud the United States. [Feldshuh] She was indicted on one count of conspiracy to defraud the United States.
173 00:11:38,630 00:11:44,500 Three counts of tax evasion, three counts of falsifying personal tax returns. Three counts of tax evasion, three counts of falsifying personal tax returns.
174 00:11:44,600 00:11:50,200 Ten counts of mail fraud. She had been indicted on a great many counts. Ten counts of mail fraud. She had been indicted on a great many counts.
175 00:11:50,310 00:11:54,640 [newsreader] The Feds also allege that Mrs. Helmsley extorted money from suppliers, [newsreader] The Feds also allege that Mrs. Helmsley extorted money from suppliers,
176 00:11:54,740 00:11:58,410 demanded and received kickbacks in exchange for Helmsley business. demanded and received kickbacks in exchange for Helmsley business.
177 00:11:58,510 00:12:04,750 Well, you wouldn't call her cheap. You would call her tight. She thought that, Well, you wouldn't call her cheap. You would call her tight. She thought that,
178 00:12:04,850 00:12:10,720 "I'm paying him a lot of money, why won't he do this for me for next to nothing or nothing?" "I'm paying him a lot of money, why won't he do this for me for next to nothing or nothing?"
179 00:12:10,830 00:12:14,860 I confronted her, I said, "Is it true that, you know, you didn't pay contractors I confronted her, I said, "Is it true that, you know, you didn't pay contractors
180 00:12:14,960 00:12:17,060 "or you tried to get services for free?" "or you tried to get services for free?"
181 00:12:17,170 00:12:19,600 She said, "Well, the bill that he gave me was too high." She said, "Well, the bill that he gave me was too high."
182 00:12:20,570 00:12:24,570 She started talking about feeling victimized by the government. She started talking about feeling victimized by the government.
183 00:12:24,670 00:12:28,010 After all, she paid millions of dollars in taxes. After all, she paid millions of dollars in taxes.
184 00:12:28,110 00:12:31,410 She didn't think she did anything wrong and she stuck to that. She didn't think she did anything wrong and she stuck to that.
185 00:12:31,510 00:12:36,680 It isn't fair. It isn't fair. Plus I look like [inaudible] It isn't fair. It isn't fair. Plus I look like [inaudible]
186 00:12:36,790 00:12:41,190 It was clear from the beginning that Leona Helmsley was not interested in pleading guilty. It was clear from the beginning that Leona Helmsley was not interested in pleading guilty.
187 00:12:41,290 00:12:43,360 I have done nothing wrong. I have done nothing wrong.
188 00:12:43,460 00:12:49,400 [Plaskin] By the time she went to trial, she was so famous and so notorious, [Plaskin] By the time she went to trial, she was so famous and so notorious,
189 00:12:49,500 00:12:53,100 it would have been almost impossible to find a jury of her peers it would have been almost impossible to find a jury of her peers
190 00:12:53,200 00:12:57,340 who didn't have that image of her that had been painted in the press. who didn't have that image of her that had been painted in the press.
191 00:12:57,440 00:13:00,770 Harry and Leona Helmlsey are so rich they could practically start Harry and Leona Helmlsey are so rich they could practically start
192 00:13:00,880 00:13:03,980 their own country and if they did they wouldn't have to pay taxes, their own country and if they did they wouldn't have to pay taxes,
193 00:13:04,080 00:13:06,710 since it appears that they're not too fond of them anyway. since it appears that they're not too fond of them anyway.
194 00:13:07,880 00:13:13,620 [newsreader] Leona Helmsley made an understated entrance to court no lima, no husband Harry. [newsreader] Leona Helmsley made an understated entrance to court no lima, no husband Harry.
195 00:13:14,960 00:13:19,760 [Dowling] The story was that he was no longer mentally able to go through a trial. [Dowling] The story was that he was no longer mentally able to go through a trial.
196 00:13:19,860 00:13:23,600 But I think what actually happened was Harry had done But I think what actually happened was Harry had done
197 00:13:23,700 00:13:27,100 so many favors for every judge, every official so many favors for every judge, every official
198 00:13:27,200 00:13:30,970 that they were not about to prosecute their friend for something that his wife did. that they were not about to prosecute their friend for something that his wife did.
199 00:13:31,810 00:13:34,840 [Feldshuh] Leona Helmlsey hired Gerald Feffer to defend her. [Feldshuh] Leona Helmlsey hired Gerald Feffer to defend her.
200 00:13:34,940 00:13:41,080 He took an unorthodox point of view that he had hoped would save her. He took an unorthodox point of view that he had hoped would save her.
201 00:13:41,180 00:13:44,750 [Devita] What he actually said in opening statement is, [Devita] What he actually said in opening statement is,
202 00:13:44,850 00:13:48,150 "You may hear that Leona Helmsley is a tough bitch. "You may hear that Leona Helmsley is a tough bitch.
203 00:13:48,260 00:13:50,590 "It's not a crime to be a tough bitch." "It's not a crime to be a tough bitch."
204 00:13:50,690 00:13:55,030 Feldshuh He tried to prove that you cannot send a person to prison just for being Feldshuh He tried to prove that you cannot send a person to prison just for being
205 00:13:55,130 00:13:59,230 a tough bitch, just for not liking them, just for thinking that they were imperialistic. a tough bitch, just for not liking them, just for thinking that they were imperialistic.
206 00:13:59,330 00:14:01,770 These were oversights that she didn't know what was going on, These were oversights that she didn't know what was going on,
207 00:14:01,870 00:14:05,870 that she was more concerned with dust in the corner than she was with her accounting firm. that she was more concerned with dust in the corner than she was with her accounting firm.
208 00:14:05,970 00:14:08,810 Did we steal somebody's money? Did we steal somebody's money?
209 00:14:08,910 00:14:11,040 Oh, the government says you stole theirs. Oh, the government says you stole theirs.
210 00:14:11,150 00:14:13,180 Did they prove it? Did they prove it?
211 00:14:13,280 00:14:17,380 [newsreader] Prosecution called 44 witnesses, many of them former employees [newsreader] Prosecution called 44 witnesses, many of them former employees
212 00:14:17,490 00:14:20,050 who described Leona as greedy and arrogant. who described Leona as greedy and arrogant.
213 00:14:20,160 00:14:23,660 Everybody who was around her knew what a terror she was. Everybody who was around her knew what a terror she was.
214 00:14:23,760 00:14:26,330 And that always catches up with people. And it did. And that always catches up with people. And it did.
215 00:14:26,430 00:14:31,330 [newsreader] Former employees testified about doctored invoices for everything [newsreader] Former employees testified about doctored invoices for everything
216 00:14:31,430 00:14:34,700 from Louis XVI furniture to carrots and potatoes. from Louis XVI furniture to carrots and potatoes.
217 00:14:34,940 00:14:37,670 You could see that she was unhappy at some of the testimony. You could see that she was unhappy at some of the testimony.
218 00:14:37,770 00:14:41,510 Certainly, there must be one person in this entire world Certainly, there must be one person in this entire world
219 00:14:41,610 00:14:48,480 that would say I'm a decent person. They didn't bring anyone in. that would say I'm a decent person. They didn't bring anyone in.
220 00:14:48,580 00:14:54,920 [Silverstein] The coup de grâce was when her housekeeper testified that Leona had said, [Silverstein] The coup de grâce was when her housekeeper testified that Leona had said,
221 00:14:55,020 00:14:58,990 "Only little people pay taxes." So everybody hated her after that. "Only little people pay taxes." So everybody hated her after that.
222 00:14:59,090 00:15:03,330 I sat down with a housemaid ? I sat down with a housemaid ?
223 00:15:03,430 00:15:06,600 And said, "Let's have tea?" Or where was it? And said, "Let's have tea?" Or where was it?
224 00:15:06,700 00:15:12,670 In the bedroom, what? And I said, "Do you know only the little people pay taxes?" In the bedroom, what? And I said, "Do you know only the little people pay taxes?"
225 00:15:12,770 00:15:17,780 Does this make sense to intelligent people? Huh? This story was concocted. Does this make sense to intelligent people? Huh? This story was concocted.
226 00:15:17,880 00:15:22,750 And contrived. And boy did that make the newspapers, didn't it? And contrived. And boy did that make the newspapers, didn't it?
227 00:15:22,850 00:15:26,720 "Paying taxes is for the little people." Wow, such a great line. "Paying taxes is for the little people." Wow, such a great line.
228 00:15:26,820 00:15:29,760 It'll be on her gravestone, it probably is on her gravestone, actually. It'll be on her gravestone, it probably is on her gravestone, actually.
229 00:15:29,860 00:15:32,590 "RIP Taxes are for the little people." "RIP Taxes are for the little people."
230 00:15:33,030 00:15:39,370 "Only the little people pay taxes." That was her against us. "Only the little people pay taxes." That was her against us.
231 00:15:39,470 00:15:44,640 We were the downtrodden, poor, misunderstood public We were the downtrodden, poor, misunderstood public
232 00:15:44,740 00:15:47,610 and she was the big bad wolf. and she was the big bad wolf.
233 00:15:47,710 00:15:51,910 Sooner or later you gotta pay the piper and I hope she gets everything that comes to her. Sooner or later you gotta pay the piper and I hope she gets everything that comes to her.
234 00:15:52,010 00:15:55,780 It's poor, middle class who have to pay taxes. It's poor, middle class who have to pay taxes.
235 00:15:55,880 00:16:00,220 But the little people don't just pay taxes. They sit on juries too. But the little people don't just pay taxes. They sit on juries too.
236 00:16:00,320 00:16:04,920 And they were about to hand the Queen of Mean a verdict that would seal her fate. And they were about to hand the Queen of Mean a verdict that would seal her fate.
237 00:16:06,430 00:16:09,060 Ms. Helmsley, do you have any response to these allegations at all? Ms. Helmsley, do you have any response to these allegations at all?
238 00:16:09,160 00:16:12,130 While a day of reckoning had arrived for some New York titans While a day of reckoning had arrived for some New York titans
239 00:16:12,230 00:16:16,300 who'd overplayed their hands, others continued to push their luck. who'd overplayed their hands, others continued to push their luck.
240 00:16:17,640 00:16:22,680 By the late 1980s, Donald Trump was building seemingly everywhere. By the late 1980s, Donald Trump was building seemingly everywhere.
241 00:16:22,780 00:16:25,610 And buying seemingly everything. And buying seemingly everything.
242 00:16:25,710 00:16:30,420 [newsreader] He already owns Trump Tower, Trump Plaza, Trump Park, and Trump Castle. [newsreader] He already owns Trump Tower, Trump Plaza, Trump Park, and Trump Castle.
243 00:16:30,520 00:16:34,150 He bought the Eastern Shuttle and renamed it Trump Shuttle. He bought the Eastern Shuttle and renamed it Trump Shuttle.
244 00:16:34,260 00:16:37,860 We were the first plane out this morning, we were the most successful flight this morning. We were the first plane out this morning, we were the most successful flight this morning.
245 00:16:37,960 00:16:40,990 We had more people than anybody else and I think we had better service than anybody else. We had more people than anybody else and I think we had better service than anybody else.
246 00:16:41,100 00:16:46,570 All of these things were not money makers. So they added to his overall debt. All of these things were not money makers. So they added to his overall debt.
247 00:16:47,970 00:16:51,500 [Kruse] The banks continued to give him more money. [Kruse] The banks continued to give him more money.
248 00:16:51,610 00:16:55,540 the press he received largely was uncritical. the press he received largely was uncritical.
249 00:16:55,640 00:16:59,780 He was living this consequence-free existence. He was living this consequence-free existence.
250 00:16:59,880 00:17:04,050 So there was no reason for him to dial back his behavior. So there was no reason for him to dial back his behavior.
251 00:17:07,990 00:17:11,860 By 1988, the striver from Queens had become a national celebrity. By 1988, the striver from Queens had become a national celebrity.
252 00:17:11,960 00:17:16,760 And his thirst for attention was leading him to make one bold move after another. And his thirst for attention was leading him to make one bold move after another.
253 00:17:16,870 00:17:19,400 But there were certain things he wasn't sharing with the press. But there were certain things he wasn't sharing with the press.
254 00:17:19,500 00:17:22,400 And it was those that would threaten to undo him. And it was those that would threaten to undo him.
255 00:17:24,170 00:17:27,370 It's gonna be fancier than ever. The Plaza Hotel is getting a face lift It's gonna be fancier than ever. The Plaza Hotel is getting a face lift
256 00:17:27,480 00:17:30,880 and the new owners, the Trumps, reveal their ambitious plans today. and the new owners, the Trumps, reveal their ambitious plans today.
257 00:17:30,980 00:17:37,720 The purchase of the Plaza Hotel for $400 million was simply a trophy purchase. The purchase of the Plaza Hotel for $400 million was simply a trophy purchase.
258 00:17:37,820 00:17:43,090 And using junk bond, high interest rate financing, just complicated it more. And using junk bond, high interest rate financing, just complicated it more.
259 00:17:44,060 00:17:49,000 I think that Donald thought that he was capable of pulling this off. I think that Donald thought that he was capable of pulling this off.
260 00:17:49,100 00:17:51,060 You know, I, I think he was delusional. You know, I, I think he was delusional.
261 00:17:51,970 00:17:54,830 The first thing that he did was announce to the world The first thing that he did was announce to the world
262 00:17:54,940 00:17:59,840 that he was making Ivana Trump the president of the Plaza Hotel that he was making Ivana Trump the president of the Plaza Hotel
263 00:17:59,940 00:18:02,080 and that he was going to pay her in dresses. and that he was going to pay her in dresses.
264 00:18:02,180 00:18:05,450 That she could have as many dresses, buy as many dresses as she wants. That she could have as many dresses, buy as many dresses as she wants.
265 00:18:06,150 00:18:11,950 I thought the greatest toy that I could give Ivana would be to put her at the Plaza Hotel. I thought the greatest toy that I could give Ivana would be to put her at the Plaza Hotel.
266 00:18:12,050 00:18:15,590 [Kruse] When she started running the Plaza, this created friction. [Kruse] When she started running the Plaza, this created friction.
267 00:18:15,690 00:18:18,260 He was Donald Trump but she was Ivana Trump. He was Donald Trump but she was Ivana Trump.
268 00:18:18,360 00:18:22,300 She was becoming a character in her own right. She was becoming a character in her own right.
269 00:18:22,760 00:18:29,370 Donald was so intent on building his empire and Ivana was sort of a piece in the empire. Donald was so intent on building his empire and Ivana was sort of a piece in the empire.
270 00:18:29,470 00:18:34,040 She was a beautiful, smart woman who could fit into his life. She was a beautiful, smart woman who could fit into his life.
271 00:18:34,780 00:18:39,610 A lot of women in your position would feel overshadowed by their husband. A lot of women in your position would feel overshadowed by their husband.
272 00:18:39,710 00:18:42,650 -Do you ever feel that? -Not at all. Not at all. -Do you ever feel that? -Not at all. Not at all.
273 00:18:42,750 00:18:47,290 [Brown] I think people forget what a big figure Ivana Trump was in the 80s. [Brown] I think people forget what a big figure Ivana Trump was in the 80s.
274 00:18:47,390 00:18:51,860 I mean, we did as many pieces about Ivana as we did about The Donald. I mean, we did as many pieces about Ivana as we did about The Donald.
275 00:18:51,960 00:18:56,400 Of course Ivana and he together were the ultimate glitzy duo Of course Ivana and he together were the ultimate glitzy duo
276 00:18:56,500 00:18:58,700 who were out every night and who you could not miss. who were out every night and who you could not miss.
277 00:18:58,800 00:19:05,510 She and he shared a certain aesthetic sensibility of blond and gold She and he shared a certain aesthetic sensibility of blond and gold
278 00:19:05,610 00:19:08,570 and cosmeticized to within an inch of her life. and cosmeticized to within an inch of her life.
279 00:19:09,380 00:19:12,750 [Res] I always thought Ivana would do whatever he asked her to do. [Res] I always thought Ivana would do whatever he asked her to do.
280 00:19:12,850 00:19:15,150 It was always about pleasing him and impressing him. It was always about pleasing him and impressing him.
281 00:19:15,250 00:19:21,220 [O'Donnell] She absolutely worshiped Donald Trump but they had a business relationship too [O'Donnell] She absolutely worshiped Donald Trump but they had a business relationship too
282 00:19:21,320 00:19:24,890 Now all of us that ran these properties had screaming matches with Donald. Now all of us that ran these properties had screaming matches with Donald.
283 00:19:24,990 00:19:29,560 And she did as well. She was not a pushover and anybody that suggests And she did as well. She was not a pushover and anybody that suggests
284 00:19:29,660 00:19:36,000 that she was just didn't know, you know, really how smart and how tough Ivana Trump was. that she was just didn't know, you know, really how smart and how tough Ivana Trump was.
285 00:19:36,100 00:19:38,500 Is there anything you wouldn't support you man in? Is there anything you wouldn't support you man in?
286 00:19:38,610 00:19:43,610 Oh sure. [laughs] Oh sure. I wouldn't support him a few things. Oh sure. [laughs] Oh sure. I wouldn't support him a few things.
287 00:19:43,710 00:19:49,220 I wouldn't support if Donald would be running around and fooling around. I wouldn't support if Donald would be running around and fooling around.
288 00:19:49,320 00:19:52,450 You know, that I couldn't live with. You know, that I couldn't live with.
289 00:19:52,550 00:19:56,020 I used to say to her, "Ivana, you know, you better keep your eye on the ball here I used to say to her, "Ivana, you know, you better keep your eye on the ball here
290 00:19:56,120 00:19:59,960 "because, you know, Donald is young, handsome, and now very rich and powerful." "because, you know, Donald is young, handsome, and now very rich and powerful."
291 00:20:00,860 00:20:06,370 [O'Donnell] I did see Donald talk publicly about Ivana in a way that he hadn't done [O'Donnell] I did see Donald talk publicly about Ivana in a way that he hadn't done
292 00:20:06,470 00:20:11,140 up to that time. It was more negative, more jokingly, putting her down. up to that time. It was more negative, more jokingly, putting her down.
293 00:20:12,770 00:20:17,610 And he talked about how women were after him. "This one wants me, that one wants me." And he talked about how women were after him. "This one wants me, that one wants me."
294 00:20:17,710 00:20:22,380 [Fox] He loved beautiful women and he loves something that would stroke his ego. [Fox] He loved beautiful women and he loves something that would stroke his ego.
295 00:20:22,820 00:20:27,450 Trump had spent his entire life believing he can get away with anything. Trump had spent his entire life believing he can get away with anything.
296 00:20:27,560 00:20:32,260 [inaudible] [inaudible]
297 00:20:32,360 00:20:35,600 As I was writing The Art of The Deal , it wasn't clear to me As I was writing The Art of The Deal , it wasn't clear to me
298 00:20:35,700 00:20:38,460 that he was simultaneously carrying on an affair. that he was simultaneously carrying on an affair.
299 00:20:40,030 00:20:44,400 [Evans] Every year there was an American Booksellers Association Convention. [Evans] Every year there was an American Booksellers Association Convention.
300 00:20:45,340 00:20:49,110 This particular year was going to be in Las Vegas. Donald said, This particular year was going to be in Las Vegas. Donald said,
301 00:20:49,210 00:20:50,780 "Hey, let's just go out in my plane." "Hey, let's just go out in my plane."
302 00:20:50,880 00:20:55,620 What fun. His plane was set up like a living room. What fun. His plane was set up like a living room.
303 00:20:55,720 00:20:57,850 It was very glamorous, lots of velvet. It was very glamorous, lots of velvet.
304 00:20:58,590 00:21:03,690 And just as we land and are getting our things together, a door opens. And just as we land and are getting our things together, a door opens.
305 00:21:03,790 00:21:06,790 A door to, I think a bedroom or something. A door to, I think a bedroom or something.
306 00:21:07,600 00:21:12,330 All along, a stowaway, Marla Maples, comes out. All along, a stowaway, Marla Maples, comes out.
307 00:21:13,600 00:21:18,170 She's been on the plane with us the entire time. I am so shocked, it's like, She's been on the plane with us the entire time. I am so shocked, it's like,
308 00:21:18,270 00:21:22,210 I don't know, the scarlet letter or something right in front of me of like, I don't know, the scarlet letter or something right in front of me of like,
309 00:21:22,310 00:21:26,980 "Oh." It was such a scandal, you cannot imagine. Everybody's mouth dropped. "Oh." It was such a scandal, you cannot imagine. Everybody's mouth dropped.
310 00:21:27,520 00:21:32,020 [O'Donnell] Marla Maples was a fun loving, "let's have a party" kind of woman. [O'Donnell] Marla Maples was a fun loving, "let's have a party" kind of woman.
311 00:21:32,120 00:21:35,890 Ivana and Marla were polar opposites. Ivana and Marla were polar opposites.
312 00:21:36,720 00:21:39,130 [Fox] Marla Maples grew up in Georgia, [Fox] Marla Maples grew up in Georgia,
313 00:21:39,230 00:21:41,730 she was definitely a southern belle and Georgia peach. she was definitely a southern belle and Georgia peach.
314 00:21:43,100 00:21:48,000 She was someone who competed and won the Miss Hawaiian Tropic pageant. She was someone who competed and won the Miss Hawaiian Tropic pageant.
315 00:21:48,770 00:21:52,540 [O'Donnell] Donald Trump just saw beauty in her and I think he saw youth. [O'Donnell] Donald Trump just saw beauty in her and I think he saw youth.
316 00:21:52,640 00:21:56,640 He loved that image so much of being with a younger woman. He loved that image so much of being with a younger woman.
317 00:21:58,250 00:22:02,580 One time at a dinner, he said, "I wish you could see her naked." One time at a dinner, he said, "I wish you could see her naked."
318 00:22:03,150 00:22:09,690 And I was... I just cringed. Even today it makes me, it makes me uncomfortable. And I was... I just cringed. Even today it makes me, it makes me uncomfortable.
319 00:22:10,730 00:22:13,530 [Fox] Marla was a struggling, young model. [Fox] Marla was a struggling, young model.
320 00:22:13,630 00:22:17,730 Each opportunity that you find can be so instrumental in your future. Each opportunity that you find can be so instrumental in your future.
321 00:22:17,830 00:22:23,240 She had nothing and needed him. And I think he loved that need to be needed. She had nothing and needed him. And I think he loved that need to be needed.
322 00:22:23,670 00:22:28,210 -My wife Ivana, who's accepted-- -[applause] -My wife Ivana, who's accepted-- -[applause]
323 00:22:28,310 00:22:33,050 [Fox] Eventually, word started to get out that Donald was dating another woman. [Fox] Eventually, word started to get out that Donald was dating another woman.
324 00:22:33,150 00:22:35,820 And I don't think she wanted to believe it was true, And I don't think she wanted to believe it was true,
325 00:22:35,920 00:22:38,280 no one wants to believe that about their husband. no one wants to believe that about their husband.
326 00:22:38,720 00:22:42,520 [Carswell] Ivana knew that Donald liked blond, busty women. [Carswell] Ivana knew that Donald liked blond, busty women.
327 00:22:42,620 00:22:48,090 So she went to California to meet with Michael Jackson's plastic surgeon. So she went to California to meet with Michael Jackson's plastic surgeon.
328 00:22:48,630 00:22:52,800 And she comes back, she no longer looked like Ivana Trump. And she comes back, she no longer looked like Ivana Trump.
329 00:22:53,530 00:22:58,070 I do remember saying to him, "Donald, look at what Ivana is doing for you. I do remember saying to him, "Donald, look at what Ivana is doing for you.
330 00:22:58,170 00:23:01,370 "I mean, she's completely changed every part of her." "I mean, she's completely changed every part of her."
331 00:23:01,480 00:23:05,540 And he disdained what she was doing. He was never going back to her. And he disdained what she was doing. He was never going back to her.
332 00:23:05,650 00:23:10,220 [O'Donnell] Common sense would tell you that this is not gonna be a secret for long. [O'Donnell] Common sense would tell you that this is not gonna be a secret for long.
333 00:23:10,320 00:23:13,020 And so we were waiting for the blow up. And so we were waiting for the blow up.
334 00:23:13,520 00:23:17,560 [Evans] And then all of a sudden the tabloids start churning these stories out [Evans] And then all of a sudden the tabloids start churning these stories out
335 00:23:17,660 00:23:22,130 on Marla Maples, Marla with Donald, Ivana, the whole triangle. on Marla Maples, Marla with Donald, Ivana, the whole triangle.
336 00:23:22,230 00:23:26,170 [O'Donnell] I think Donald was very shocked by the publicity that he got. [O'Donnell] I think Donald was very shocked by the publicity that he got.
337 00:23:26,270 00:23:32,170 But he also loved it but he believes this philosophy of all press is good press. But he also loved it but he believes this philosophy of all press is good press.
338 00:23:32,740 00:23:37,740 He believed if you handle it in a certain way, you can get away with it. He believed if you handle it in a certain way, you can get away with it.
339 00:23:37,850 00:23:43,150 And the affair was not the only big gamble he was making at the time. And the affair was not the only big gamble he was making at the time.
340 00:23:43,250 00:23:47,120 At the end of the decade, the brash developer embarked on his biggest project yet. At the end of the decade, the brash developer embarked on his biggest project yet.
341 00:23:47,220 00:23:50,920 Donald Trump today opened the doors to his billion dollar gamble, Donald Trump today opened the doors to his billion dollar gamble,
342 00:23:51,030 00:23:54,590 his new Atlantic City casino, the Taj Mahal. his new Atlantic City casino, the Taj Mahal.
343 00:23:54,700 00:23:58,160 Financed entirely through debt, the Taj Mahal would need to earn Financed entirely through debt, the Taj Mahal would need to earn
344 00:23:58,270 00:24:03,800 over one million dollars a day to stay afloat. An amount no casino had ever raked in. over one million dollars a day to stay afloat. An amount no casino had ever raked in.
345 00:24:03,910 00:24:07,310 [O'Donnell] I thought that the Taj Mahal was gonna be in desperate shape. [O'Donnell] I thought that the Taj Mahal was gonna be in desperate shape.
346 00:24:07,840 00:24:10,680 The red flags were up prior to the deal being done. The red flags were up prior to the deal being done.
347 00:24:11,350 00:24:15,510 [Johnston] After Donald Trump gets control of the Taj Mahal, he can't pay his bills. [Johnston] After Donald Trump gets control of the Taj Mahal, he can't pay his bills.
348 00:24:15,620 00:24:20,950 And it was all Donald's reality running up against the hard numbers of banking. And it was all Donald's reality running up against the hard numbers of banking.
349 00:24:21,390 00:24:26,860 [O'Donnell] It really was only a matter of time before this stuff was gonna catch up with him. [O'Donnell] It really was only a matter of time before this stuff was gonna catch up with him.
350 00:24:27,060 00:24:32,130 He was hiding too many things for there not to be a day of reckoning. He was hiding too many things for there not to be a day of reckoning.
351 00:24:32,230 00:24:37,170 His deals were crumbling. Eventually they're gonna catch up with the scam. His deals were crumbling. Eventually they're gonna catch up with the scam.
352 00:24:37,270 00:24:41,670 [newsreader] Donald Trump, the larger-than-life New York developer celebrity. [newsreader] Donald Trump, the larger-than-life New York developer celebrity.
353 00:24:41,780 00:24:45,880 Could it be that he's built his empire on 90 percent ego? Could it be that he's built his empire on 90 percent ego?
354 00:24:45,980 00:24:51,580 The headlines are screaming "death of a legend," calling him the has-been of high finance. The headlines are screaming "death of a legend," calling him the has-been of high finance.
355 00:24:51,990 00:24:54,090 It was time to take him down. It was time to take him down.
356 00:24:57,360 00:25:00,990 [newsreader] It was a monster parade, even by New York standards.han [newsreader] It was a monster parade, even by New York standards.han
357 00:25:01,100 00:25:02,660 to cheer the Mets. to cheer the Mets.
358 00:25:02,760 00:25:06,230 In October of 1986, the Mets' legendary World Series victory In October of 1986, the Mets' legendary World Series victory
359 00:25:06,330 00:25:09,570 over the Boston Red Sox united New Yorkers in celebration. over the Boston Red Sox united New Yorkers in celebration.
360 00:25:10,140 00:25:12,240 [Deveney] The Mets really should have been a dynasty [Deveney] The Mets really should have been a dynasty
361 00:25:12,340 00:25:15,240 and perhaps should have won multiple world series. and perhaps should have won multiple world series.
362 00:25:15,340 00:25:18,780 They had these young players, Darryl Strawberry, Dwight Gooden. They had these young players, Darryl Strawberry, Dwight Gooden.
363 00:25:19,750 00:25:21,750 But on the day of the parade But on the day of the parade
364 00:25:21,850 00:25:25,550 in which The Mets were celebrating the 1986 World Series, in which The Mets were celebrating the 1986 World Series,
365 00:25:26,190 00:25:30,760 Dwight Gooden is in Queens in a housing project, high on coke Dwight Gooden is in Queens in a housing project, high on coke
366 00:25:30,860 00:25:36,030 and watching the parade on TV because he's still so high on coke he hasn't left the room. and watching the parade on TV because he's still so high on coke he hasn't left the room.
367 00:25:36,830 00:25:40,300 The Mets were never the same after that. The Mets were never the same after that.
368 00:25:40,400 00:25:44,240 A drug epidemic that had been ravaging the city didn't spare the Mets. A drug epidemic that had been ravaging the city didn't spare the Mets.
369 00:25:44,340 00:25:47,310 And down the road from Shea Stadium in Queens, And down the road from Shea Stadium in Queens,
370 00:25:47,410 00:25:52,080 an even deadlier threat was emerging. Hitting low-income communities hard. an even deadlier threat was emerging. Hitting low-income communities hard.
371 00:25:53,510 00:25:57,080 [McDaniels] I grew up in Queens, New York, which was like the suburbs. [McDaniels] I grew up in Queens, New York, which was like the suburbs.
372 00:25:57,350 00:25:59,890 We wasn't rich but people would mow their lawn. We wasn't rich but people would mow their lawn.
373 00:25:59,990 00:26:03,620 And the kids would play in the sprinklers and ride their big wheels. And the kids would play in the sprinklers and ride their big wheels.
374 00:26:03,720 00:26:10,500 You had the candy store. You had the delicatessen. You had the real estate office. You had the candy store. You had the delicatessen. You had the real estate office.
375 00:26:11,700 00:26:16,740 In the 80s, I came back to my neighborhood and everybody started looking different. In the 80s, I came back to my neighborhood and everybody started looking different.
376 00:26:16,840 00:26:20,170 My friend's sister, who was the sexiest girl in the neighborhood, My friend's sister, who was the sexiest girl in the neighborhood,
377 00:26:20,270 00:26:26,950 came looking like someone out "The Walking Dead." It was a plague when crack came. came looking like someone out "The Walking Dead." It was a plague when crack came.
378 00:26:27,050 00:26:32,020 [newsreader] Purveyors of the drug cocaine are now selling it in its purest form called crack. [newsreader] Purveyors of the drug cocaine are now selling it in its purest form called crack.
379 00:26:32,120 00:26:35,120 Much of the nation's crack problem is concentrated in New York. Much of the nation's crack problem is concentrated in New York.
380 00:26:35,220 00:26:39,430 Crack is basically just cocaine with a couple of ingredients added Crack is basically just cocaine with a couple of ingredients added
381 00:26:39,530 00:26:42,290 and you throw it in the microwave. You had a situation and you throw it in the microwave. You had a situation
382 00:26:42,400 00:26:46,300 where if you smoke crack, you're going to immediately love it. where if you smoke crack, you're going to immediately love it.
383 00:26:46,400 00:26:50,040 [newsreader] Crack is smoked freebase and those who've used crack [newsreader] Crack is smoked freebase and those who've used crack
384 00:26:50,140 00:26:53,910 describe the drug as the most powerful high they've ever had. describe the drug as the most powerful high they've ever had.
385 00:26:54,010 00:26:59,680 It is what they call "the instant high." Once you ingest it, you're done. It is what they call "the instant high." Once you ingest it, you're done.
386 00:26:59,780 00:27:05,680 That high that you would get off that freebase would make all your troubles fade away. That high that you would get off that freebase would make all your troubles fade away.
387 00:27:06,220 00:27:09,120 [Deveney] That high only lasts about 15 minutes. [Deveney] That high only lasts about 15 minutes.
388 00:27:09,220 00:27:12,790 When you get through those 15 minutes, you're gonna need more. When you get through those 15 minutes, you're gonna need more.
389 00:27:13,390 00:27:15,530 [interviewee] You're speeding like 100 miles an hour. [interviewee] You're speeding like 100 miles an hour.
390 00:27:15,630 00:27:18,660 And when the mind is going that fast, it's just normal for you to become violent. And when the mind is going that fast, it's just normal for you to become violent.
391 00:27:18,770 00:27:21,030 People were out of their minds, literally. People were out of their minds, literally.
392 00:27:21,140 00:27:24,740 You go through such a low when you're out and you can't get any more You go through such a low when you're out and you can't get any more
393 00:27:24,840 00:27:25,970 that you're ready to kill. that you're ready to kill.
394 00:27:26,610 00:27:28,270 I remember one case, I remember one case,
395 00:27:28,380 00:27:33,150 this young man had murdered his mother for money to buy crack. this young man had murdered his mother for money to buy crack.
396 00:27:33,250 00:27:35,850 This was going on all over the city. This was going on all over the city.
397 00:27:36,580 00:27:41,220 [Weatherspoon] People sold their souls to not live in their reality. [Weatherspoon] People sold their souls to not live in their reality.
398 00:27:41,320 00:27:44,760 [newsreader] Crack is cocaine marketed to a lower-income people. [newsreader] Crack is cocaine marketed to a lower-income people.
399 00:27:44,860 00:27:49,400 It's a very, very cheaply made drug. You could buy it for five bucks at a time. It's a very, very cheaply made drug. You could buy it for five bucks at a time.
400 00:27:49,900 00:27:54,330 [Weatherspoon] Jobs disappear. Housing goes down the tube. Schools are not good. [Weatherspoon] Jobs disappear. Housing goes down the tube. Schools are not good.
401 00:27:54,440 00:27:59,440 And then you bring in the drugs and the hustle to make a dollar. And you get it going. And then you bring in the drugs and the hustle to make a dollar. And you get it going.
402 00:28:00,010 00:28:04,710 Crack dealers were making so much money off it. It made success easy. Crack dealers were making so much money off it. It made success easy.
403 00:28:04,810 00:28:10,520 You could sell it for five bucks because you knew that once somebody smoked it once, You could sell it for five bucks because you knew that once somebody smoked it once,
404 00:28:10,620 00:28:12,520 they'd be back probably in a half hour. they'd be back probably in a half hour.
405 00:28:12,620 00:28:15,790 [chanting] We want our buildings back, no more crime, no more crack. [chanting] We want our buildings back, no more crime, no more crack.
406 00:28:15,990 00:28:18,220 They have to take a stand, just like we're doing. They have to take a stand, just like we're doing.
407 00:28:18,330 00:28:21,360 If they wanna get these drugs out of the neighborhood, they've got to take a stand. If they wanna get these drugs out of the neighborhood, they've got to take a stand.
408 00:28:21,930 00:28:25,230 [Weatherspoon] You have decent people living in poor neighborhoods. [Weatherspoon] You have decent people living in poor neighborhoods.
409 00:28:25,330 00:28:27,400 That's where they can afford to live. That's where they can afford to live.
410 00:28:27,500 00:28:32,810 While those involved in the drug trade are surrounding them and smothering them. While those involved in the drug trade are surrounding them and smothering them.
411 00:28:32,910 00:28:36,280 [newsreader] Crack use has grown so fast that it's outstripping the ability [newsreader] Crack use has grown so fast that it's outstripping the ability
412 00:28:36,380 00:28:38,810 of law enforcement and drug treatment authorities to cope with it. of law enforcement and drug treatment authorities to cope with it.
413 00:28:38,910 00:28:42,610 This has reached epidemic portions. This has reached epidemic portions.
414 00:28:42,720 00:28:45,120 [Guilianni] I don't think we incapacitate drug dealers. [Guilianni] I don't think we incapacitate drug dealers.
415 00:28:45,220 00:28:49,460 We do not put them away for long enough periods of time to really make a difference. We do not put them away for long enough periods of time to really make a difference.
416 00:28:50,660 00:28:56,360 As soon as crack becomes a high profile problem, Giuliani instantly seizes on it. As soon as crack becomes a high profile problem, Giuliani instantly seizes on it.
417 00:28:56,460 00:29:01,300 We do not give 40- and 50-year prison sentences that put the major drug dealers away. We do not give 40- and 50-year prison sentences that put the major drug dealers away.
418 00:29:01,400 00:29:05,940 [Byfield] Giuliani earned this reputation as this law-and-order person. [Byfield] Giuliani earned this reputation as this law-and-order person.
419 00:29:06,040 00:29:09,910 "The War on Drugs." He took that up as a part of his mantle. "The War on Drugs." He took that up as a part of his mantle.
420 00:29:10,010 00:29:13,010 We will prosecute the biggest drug cases, the medium-sized drug cases, We will prosecute the biggest drug cases, the medium-sized drug cases,
421 00:29:13,110 00:29:17,680 and the street drug cases in areas where the local courts for one reason or another and the street drug cases in areas where the local courts for one reason or another
422 00:29:17,790 00:29:20,120 aren't able to deliver a deterrent effect. aren't able to deliver a deterrent effect.
423 00:29:20,220 00:29:25,260 [Mahler] As US Attorney, Giuliani decided to demand stricter sentences [Mahler] As US Attorney, Giuliani decided to demand stricter sentences
424 00:29:25,360 00:29:27,290 for low-level drug dealers. for low-level drug dealers.
425 00:29:27,390 00:29:30,960 In most cases, these low-level drug dealers were people of color. In most cases, these low-level drug dealers were people of color.
426 00:29:31,070 00:29:35,970 The prosecutor's crusade for stricter federal sentences largely impacted The prosecutor's crusade for stricter federal sentences largely impacted
427 00:29:36,070 00:29:41,310 the city's poorer communities. With mandatory five-year prison terms for dealers and users. the city's poorer communities. With mandatory five-year prison terms for dealers and users.
428 00:29:41,410 00:29:43,040 [newsreader] Narcotics police in northern Manhattan [newsreader] Narcotics police in northern Manhattan
429 00:29:43,140 00:29:45,680 arrest small time dealers almost every night. arrest small time dealers almost every night.
430 00:29:45,910 00:29:49,880 While crack is being used in poorer communities, While crack is being used in poorer communities,
431 00:29:49,980 00:29:53,450 the people who are using the powdered version of cocaine the people who are using the powdered version of cocaine
432 00:29:53,550 00:29:58,960 all across wealthy communities are not demonized in the press in the same way. all across wealthy communities are not demonized in the press in the same way.
433 00:29:59,730 00:30:05,060 The fear that was generated around crack allowed huge disparities The fear that was generated around crack allowed huge disparities
434 00:30:05,170 00:30:07,470 in arrests, prosecutions, sentencing. in arrests, prosecutions, sentencing.
435 00:30:07,570 00:30:10,840 Crack cocaine would get you a ten-year sentence Crack cocaine would get you a ten-year sentence
436 00:30:10,940 00:30:13,470 while cocaine might get you probation. while cocaine might get you probation.
437 00:30:13,940 00:30:19,180 [Byfield] People didn't think twice about the lengthening of sentencing [Byfield] People didn't think twice about the lengthening of sentencing
438 00:30:19,280 00:30:23,180 and police abuse of power in fighting the drug problem. and police abuse of power in fighting the drug problem.
439 00:30:23,280 00:30:27,820 [newsreader] This is called Operation Pressure Point. Local police make the arrests [newsreader] This is called Operation Pressure Point. Local police make the arrests
440 00:30:27,920 00:30:32,360 and turn the suspects over to US Attorney Giuliani's staff for prosecution. and turn the suspects over to US Attorney Giuliani's staff for prosecution.
441 00:30:32,460 00:30:34,890 I take on things that nobody else has ever taken on I take on things that nobody else has ever taken on
442 00:30:35,000 00:30:38,430 and I accomplish things that others haven't accomplished. and I accomplish things that others haven't accomplished.
443 00:30:38,530 00:30:41,370 While the prosecutor's tough stance played well in the press, While the prosecutor's tough stance played well in the press,
444 00:30:41,470 00:30:44,770 his harsh policies devastated neighborhood after neighborhood. his harsh policies devastated neighborhood after neighborhood.
445 00:30:46,640 00:30:49,110 Angering many people in those communities. Angering many people in those communities.
446 00:30:49,210 00:30:53,080 And it wouldn't be long before they made their voices heard. And it wouldn't be long before they made their voices heard.
447 00:30:55,850 00:30:59,750 By the late 1980s, homicide rates had hit record highs in New York City By the late 1980s, homicide rates had hit record highs in New York City
448 00:30:59,850 00:31:02,350 and pressure was mounting to curb the violence. and pressure was mounting to curb the violence.
449 00:31:03,820 00:31:05,360 And despite major blows to organized crime, And despite major blows to organized crime,
450 00:31:05,460 00:31:09,860 the US attorney's office had yet to catch public enemy number one. the US attorney's office had yet to catch public enemy number one.
451 00:31:10,700 00:31:13,270 John Gotti understood power and strength. John Gotti understood power and strength.
452 00:31:14,540 00:31:18,440 [Gabriel] It was important for him to show everyone he was an invincible boss. [Gabriel] It was important for him to show everyone he was an invincible boss.
453 00:31:18,540 00:31:22,310 You just didn't wanna cross him. To his own people, he was ruthless. You just didn't wanna cross him. To his own people, he was ruthless.
454 00:31:23,380 00:31:25,880 He was a tough guy and he wasn't afraid of anything. He was a tough guy and he wasn't afraid of anything.
455 00:31:25,980 00:31:29,450 He truly believed that nobody would ever convict him. He truly believed that nobody would ever convict him.
456 00:31:29,550 00:31:34,250 The FBI had been hunting the new godfather since he knocked off his boss. The FBI had been hunting the new godfather since he knocked off his boss.
457 00:31:34,360 00:31:37,060 And so far, he'd escaped every trap they'd set. And so far, he'd escaped every trap they'd set.
458 00:31:37,160 00:31:41,390 They knew they had to find a new approach and fast. They knew they had to find a new approach and fast.
459 00:31:43,160 00:31:46,770 [newsreader] Gotti has been tried and tailed for five years now. [newsreader] Gotti has been tried and tailed for five years now.
460 00:31:46,870 00:31:50,840 In that time never convicted of a crime. Outfoxing the foxes In that time never convicted of a crime. Outfoxing the foxes
461 00:31:50,940 00:31:55,440 in a big stakes game of cops and robbers that has made Gotti kind of a legend. in a big stakes game of cops and robbers that has made Gotti kind of a legend.
462 00:31:56,410 00:32:01,210 [Gabriel] The government couldn't get him. So by the time he gets acquittal number two, [Gabriel] The government couldn't get him. So by the time he gets acquittal number two,
463 00:32:01,320 00:32:04,780 he's becoming this folk hero even to the mob. he's becoming this folk hero even to the mob.
464 00:32:04,890 00:32:09,590 His third acquittal, people are now even more fearful of the mob His third acquittal, people are now even more fearful of the mob
465 00:32:09,690 00:32:13,160 because, god, you can't even put this guy in jail, everyone knows he killed the boss, because, god, you can't even put this guy in jail, everyone knows he killed the boss,
466 00:32:13,260 00:32:15,190 he's doing all this stuff, you can't touch him. he's doing all this stuff, you can't touch him.
467 00:32:15,300 00:32:18,500 He was just out there and almost thumbing his nose at law enforcement. He was just out there and almost thumbing his nose at law enforcement.
468 00:32:18,600 00:32:23,040 [Mouw] He became a magical figure in the city of New York. [Mouw] He became a magical figure in the city of New York.
469 00:32:24,000 00:32:26,100 [Gabriel] Everybody was pulling for John Gotti. [Gabriel] Everybody was pulling for John Gotti.
470 00:32:26,210 00:32:29,510 They've dismissed how bad of a guy he was. They've dismissed how bad of a guy he was.
471 00:32:29,610 00:32:32,040 [newsreader] Gotti is somewhat of a local hero here. [newsreader] Gotti is somewhat of a local hero here.
472 00:32:32,450 00:32:34,550 A lot of people said, "Boy, you're never gonna catch him. A lot of people said, "Boy, you're never gonna catch him.
473 00:32:34,650 00:32:37,480 "You will never get this guy, he's untouchable. He's beaten all these cases." "You will never get this guy, he's untouchable. He's beaten all these cases."
474 00:32:37,580 00:32:41,350 And it just created a sort of, almost a frenzy within law enforcement And it just created a sort of, almost a frenzy within law enforcement
475 00:32:41,460 00:32:47,030 to try and make a case on him. And at that point, we had already been investigating Gotti to try and make a case on him. And at that point, we had already been investigating Gotti
476 00:32:47,530 00:32:51,560 The FBI felt it needed taped conversations. The FBI felt it needed taped conversations.
477 00:32:52,270 00:32:55,830 [Mouw] Our goal was to find out where John conducts his criminal activities [Mouw] Our goal was to find out where John conducts his criminal activities
478 00:32:55,940 00:32:59,000 and put a microphone there and record all the conversations. and put a microphone there and record all the conversations.
479 00:32:59,110 00:33:02,570 And it quickly became apparent that John established his headquarters And it quickly became apparent that John established his headquarters
480 00:33:02,680 00:33:06,380 at the old Ravenite Social Club, 247 Mulberry Street. at the old Ravenite Social Club, 247 Mulberry Street.
481 00:33:07,050 00:33:09,150 And after a few months we are able to pick up a pattern And after a few months we are able to pick up a pattern
482 00:33:09,250 00:33:11,850 where he was coming there four to five nights a week. where he was coming there four to five nights a week.
483 00:33:11,950 00:33:15,020 [newsreader] On the northern end of Little Italy, a brick façade [newsreader] On the northern end of Little Italy, a brick façade
484 00:33:15,120 00:33:19,060 has replaced a wooden store front. It is the Ravenite Social Club. has replaced a wooden store front. It is the Ravenite Social Club.
485 00:33:20,230 00:33:23,400 And more importantly for us, all the captains of the Gambino family And more importantly for us, all the captains of the Gambino family
486 00:33:23,500 00:33:25,100 were summoned to meet him there. were summoned to meet him there.
487 00:33:26,530 00:33:29,900 So every night you'd have four or five captains, 30 or 40 soldiers, So every night you'd have four or five captains, 30 or 40 soldiers,
488 00:33:30,000 00:33:36,140 the associates in this club or outside the club. Which is a godsend for law enforcement. the associates in this club or outside the club. Which is a godsend for law enforcement.
489 00:33:37,510 00:33:41,350 [McDonald] We were up doing physical surveillance and listening to devices [McDonald] We were up doing physical surveillance and listening to devices
490 00:33:41,450 00:33:45,250 for a period of about eight months, struggling to get audible conversations. for a period of about eight months, struggling to get audible conversations.
491 00:33:45,350 00:33:50,090 There's just a lot of people in a small room, all talking at the same time. There's just a lot of people in a small room, all talking at the same time.
492 00:33:50,190 00:33:54,630 We were getting bits and pieces that led us to understand we were in the right place We were getting bits and pieces that led us to understand we were in the right place
493 00:33:54,730 00:33:56,960 but nothing we could indict with. but nothing we could indict with.
494 00:33:57,060 00:34:00,530 And a lot of people this time said, "You're wasting your time, you'll never get him." And a lot of people this time said, "You're wasting your time, you'll never get him."
495 00:34:02,770 00:34:05,270 In the summer of '89 we finally got a nice break. In the summer of '89 we finally got a nice break.
496 00:34:07,010 00:34:12,580 The FBI found out that Gotti was using an apartment two stories The FBI found out that Gotti was using an apartment two stories
497 00:34:12,680 00:34:17,650 above the Ravenite Social Club to discuss important family business. above the Ravenite Social Club to discuss important family business.
498 00:34:18,190 00:34:21,220 [Mouw] We found out that they're using an apartment up there owned by this widow [Mouw] We found out that they're using an apartment up there owned by this widow
499 00:34:21,320 00:34:24,490 named Mrs. Cirelli, whose husband used to be a Gambino soldier, named Mrs. Cirelli, whose husband used to be a Gambino soldier,
500 00:34:24,590 00:34:26,320 Mike Cirelli, used to run the club. Mike Cirelli, used to run the club.
501 00:34:27,900 00:34:32,760 [Capeci] One particular weekend, when the widow was out of town, [Capeci] One particular weekend, when the widow was out of town,
502 00:34:33,900 00:34:39,070 the FBI got in and they put a bug in her apartment. the FBI got in and they put a bug in her apartment.
503 00:34:40,740 00:34:43,840 [McDonald] We had a location to observe comings and goings [McDonald] We had a location to observe comings and goings
504 00:34:43,940 00:34:47,410 and we were tape recording conversations. and we were tape recording conversations.
505 00:34:50,520 00:34:52,520 [Mouw] We hear him clomping up the stairs. [Mouw] We hear him clomping up the stairs.
506 00:34:54,320 00:35:00,090 We hear the front door open. John Gotti is deaf in his left ear so they had to talk loud. We hear the front door open. John Gotti is deaf in his left ear so they had to talk loud.
507 00:35:02,000 00:35:04,230 [Capeci] The FBI captured Gotti [Capeci] The FBI captured Gotti
508 00:35:04,330 00:35:10,670 admitting to voluminous organized crime activity as well as murders. admitting to voluminous organized crime activity as well as murders.
509 00:35:24,450 00:35:28,820 Tape recorded conversations were a gold mine for the FBI. They were a jackpot for them. Tape recorded conversations were a gold mine for the FBI. They were a jackpot for them.
510 00:35:29,860 00:35:34,390 [Gabriel] Very much to our surprise, we hear John on a diatribe [Gabriel] Very much to our surprise, we hear John on a diatribe
511 00:35:34,500 00:35:38,160 about why he killed Paul Castellano. He starts the conversation, about why he killed Paul Castellano. He starts the conversation,
512 00:35:38,270 00:35:42,300 "When that guy Paul got sick." that was Paul died. "When that guy Paul got sick." that was Paul died.
513 00:35:42,770 00:35:47,910 You know, here we are, several years after they killed this guy, it was astonishing to us. You know, here we are, several years after they killed this guy, it was astonishing to us.
514 00:35:48,380 00:35:52,980 Fortunately for law enforcement, Gotti supplied many smoking guns Fortunately for law enforcement, Gotti supplied many smoking guns
515 00:35:53,080 00:35:56,980 through his own words. He was intercepted taking about, you know, through his own words. He was intercepted taking about, you know,
516 00:35:57,080 00:36:00,350 ordering the executions of people, saying that he was responsible for their murders. ordering the executions of people, saying that he was responsible for their murders.
517 00:36:00,590 00:36:02,190 The smoking gun was Gotti himself. The smoking gun was Gotti himself.
518 00:36:02,990 00:36:06,690 Just by listening to the tapes that we had, we knew we had a case that was solid, Just by listening to the tapes that we had, we knew we had a case that was solid,
519 00:36:06,790 00:36:09,360 the game was over. The end was near. the game was over. The end was near.
520 00:36:12,570 00:36:17,070 January, 1989. New York City. January, 1989. New York City.
521 00:36:17,170 00:36:23,110 A blunt spoken prosecutor with boundless ambition had felled giant after giant. A blunt spoken prosecutor with boundless ambition had felled giant after giant.
522 00:36:23,210 00:36:25,580 And now the end game was in sight. And now the end game was in sight.
523 00:36:26,010 00:36:29,750 Crime buster, US Attorney Rudolph Giuliani announced that he is stepping down Crime buster, US Attorney Rudolph Giuliani announced that he is stepping down
524 00:36:29,850 00:36:32,920 at the end of this month. He didn't say why but many believe at the end of this month. He didn't say why but many believe
525 00:36:33,020 00:36:36,690 that he will be a Republican candidate for mayor of New York City. that he will be a Republican candidate for mayor of New York City.
526 00:36:36,790 00:36:40,360 Giuliani was probably the most effective US Attorney Giuliani was probably the most effective US Attorney
527 00:36:40,460 00:36:42,190 for the Southern District in history. for the Southern District in history.
528 00:36:44,300 00:36:47,630 During his years as US Attorney, he really changed the nature of the office During his years as US Attorney, he really changed the nature of the office
529 00:36:47,730 00:36:49,800 so that it became much more aggressive. so that it became much more aggressive.
530 00:36:51,570 00:36:54,940 Rudy takes down all of the big villains of New York City, you know, a cast of bad guys. Rudy takes down all of the big villains of New York City, you know, a cast of bad guys.
531 00:36:55,040 00:36:58,880 The prosecutor had been hounding the mafia for years The prosecutor had been hounding the mafia for years
532 00:36:58,980 00:37:02,610 and the last domino to fall would be the Dapper Don himself. and the last domino to fall would be the Dapper Don himself.
533 00:37:02,720 00:37:06,150 [newsreader] John Gotti, the reputed boss of the nation's largest mafia family [newsreader] John Gotti, the reputed boss of the nation's largest mafia family
534 00:37:06,250 00:37:09,550 was arrested tonight along with his top three associates was arrested tonight along with his top three associates
535 00:37:09,660 00:37:13,390 in a move by the FBI to crush the Gambino crime family. in a move by the FBI to crush the Gambino crime family.
536 00:37:13,560 00:37:15,660 We decided to arrest him at the Ravenite. We decided to arrest him at the Ravenite.
537 00:37:15,760 00:37:18,300 And I walked down there later, it was like shock and awe right after, you know, And I walked down there later, it was like shock and awe right after, you know,
538 00:37:18,400 00:37:21,130 bombing attack, 'cause there are like 20 Gambino guys in there. bombing attack, 'cause there are like 20 Gambino guys in there.
539 00:37:21,240 00:37:24,400 And they're all sitting out there smoking, looking around. They were amazed. And they're all sitting out there smoking, looking around. They were amazed.
540 00:37:24,500 00:37:29,010 The greatest fear was that John Gotti got arrested. These are like the untouchables. The greatest fear was that John Gotti got arrested. These are like the untouchables.
541 00:37:29,110 00:37:33,210 In many respects, I have to say the guy was a very good wise guy. In many respects, I have to say the guy was a very good wise guy.
542 00:37:33,310 00:37:38,750 But what draws against that is the fact that he did everything so publicly, But what draws against that is the fact that he did everything so publicly,
543 00:37:38,850 00:37:43,920 made so many stupid mistakes and really brought down the Gambino family. made so many stupid mistakes and really brought down the Gambino family.
544 00:37:44,020 00:37:48,530 So where he was a good wise guy, he wasn't good at how he executed it. So where he was a good wise guy, he wasn't good at how he executed it.
545 00:37:48,630 00:37:52,530 [newsreader] Arrested with Gotti tonight was his under boss Sammy "The Bull" Gravano, [newsreader] Arrested with Gotti tonight was his under boss Sammy "The Bull" Gravano,
546 00:37:52,630 00:37:55,970 his consigliere, or family advisor, Frank Locascio. his consigliere, or family advisor, Frank Locascio.
547 00:37:56,070 00:37:59,870 And one of his top capos or captains, Tommy Gambino. And one of his top capos or captains, Tommy Gambino.
548 00:37:59,970 00:38:03,170 If he beats this massive federal case brought on by the FBI, If he beats this massive federal case brought on by the FBI,
549 00:38:03,280 00:38:07,450 it could make him the biggest gangster in America since the legendary Al Capone. it could make him the biggest gangster in America since the legendary Al Capone.
550 00:38:07,550 00:38:12,620 If he loses, it's likely Gotti will spend the rest of his life in jail. If he loses, it's likely Gotti will spend the rest of his life in jail.
551 00:38:12,720 00:38:17,690 And just as he chased gangsters in Queens, the prosecutor also took aim And just as he chased gangsters in Queens, the prosecutor also took aim
552 00:38:17,790 00:38:23,460 at traders in Manhattan. His biggest catch? The king of arbitrage himself. at traders in Manhattan. His biggest catch? The king of arbitrage himself.
553 00:38:23,960 00:38:26,700 Picture this. Ivan Boesky jail bird. Picture this. Ivan Boesky jail bird.
554 00:38:26,800 00:38:29,570 [Guiliani] The three-year sentence given by Judge Lasker [Guiliani] The three-year sentence given by Judge Lasker
555 00:38:29,670 00:38:33,840 gives the real world of what happens in criminal proceedings gives the real world of what happens in criminal proceedings
556 00:38:33,940 00:38:37,180 and in federal courts around this country. A heavy sentence. and in federal courts around this country. A heavy sentence.
557 00:38:37,280 00:38:40,810 Mr. Boesky accepts the court's decision. Mr. Boesky accepts the court's decision.
558 00:38:41,550 00:38:44,420 He now must pick up the remnants He now must pick up the remnants
559 00:38:44,520 00:38:48,420 and try to get on with the business of living and try to get on with the business of living
560 00:38:48,520 00:38:51,520 a constructive and useful life. a constructive and useful life.
561 00:38:51,630 00:38:56,430 For Boesky to go from Master of the Universe to a prisoner, surely humbled him. For Boesky to go from Master of the Universe to a prisoner, surely humbled him.
562 00:38:56,530 00:38:59,700 I think surely it depressed him. I think surely it depressed him.
563 00:38:59,800 00:39:04,370 Ivan Boesky, who was used to earning more than a million dollars in a single day, Ivan Boesky, who was used to earning more than a million dollars in a single day,
564 00:39:04,470 00:39:09,270 will now be paid 11 cents an hour for his work at the prison. will now be paid 11 cents an hour for his work at the prison.
565 00:39:09,510 00:39:14,210 Ivan Boesky spent a couple of years at a low security prison out in California. Ivan Boesky spent a couple of years at a low security prison out in California.
566 00:39:14,310 00:39:17,680 You go, you do your time and with luck, you know, no one shivs you. You go, you do your time and with luck, you know, no one shivs you.
567 00:39:17,780 00:39:23,920 He got shamed. He's not a guy who's gonna be celebrated in gossip columns. He got shamed. He's not a guy who's gonna be celebrated in gossip columns.
568 00:39:24,020 00:39:27,190 He's gonna be, guy's gonna walk down the street and people are gonna whisper, He's gonna be, guy's gonna walk down the street and people are gonna whisper,
569 00:39:27,290 00:39:30,800 "Hey, that's Ivan Boesky. That's the guy who went to jail." "Hey, that's Ivan Boesky. That's the guy who went to jail."
570 00:39:30,900 00:39:33,300 He's got a scarlet letter on his head. He's got a scarlet letter on his head.
571 00:39:34,200 00:39:36,800 But people are capable of having second acts. But people are capable of having second acts.
572 00:39:39,040 00:39:44,110 And there was the Queen of the Palace herself, prosecuted for tax fraud. And there was the Queen of the Palace herself, prosecuted for tax fraud.
573 00:39:44,210 00:39:46,640 Many embittered associates testified against her Many embittered associates testified against her
574 00:39:46,750 00:39:51,880 but in the end, it was her own words that would truly seal her fate. but in the end, it was her own words that would truly seal her fate.
575 00:39:51,990 00:39:57,790 Leona's line that only the little people pay taxes resonated so much Leona's line that only the little people pay taxes resonated so much
576 00:39:57,890 00:39:59,990 after this exhausting decade after this exhausting decade
577 00:40:00,090 00:40:05,330 of the big shots getting richer while others were not. of the big shots getting richer while others were not.
578 00:40:05,430 00:40:10,840 Here was a perfect expression of the ruling class. Here was a perfect expression of the ruling class.
579 00:40:10,940 00:40:14,610 She has a reputation that is a woman who really has no scruples. She has a reputation that is a woman who really has no scruples.
580 00:40:14,710 00:40:19,740 Greed will do you in and I guess that's what they, motto that they live by. Greed will do you in and I guess that's what they, motto that they live by.
581 00:40:19,850 00:40:22,850 After a two-month trial, a jury found her guilty. After a two-month trial, a jury found her guilty.
582 00:40:24,220 00:40:27,420 [Devita] Leona Helmsley was convicted of income tax evasion. [Devita] Leona Helmsley was convicted of income tax evasion.
583 00:40:27,520 00:40:31,160 She was convicted of aiding, assisting in the filing of false tax returns. She was convicted of aiding, assisting in the filing of false tax returns.
584 00:40:31,260 00:40:36,260 She was convicted of mail fraud in connection with her New York state income tax returns. She was convicted of mail fraud in connection with her New York state income tax returns.
585 00:40:36,360 00:40:40,630 [Feldshuh] She stepped over bodies to make sure she had her marble dance floor. [Feldshuh] She stepped over bodies to make sure she had her marble dance floor.
586 00:40:40,730 00:40:42,700 And that was her downfall. And that was her downfall.
587 00:40:42,800 00:40:48,210 She was brought to account for her misdeeds. She was brought to account for her misdeeds.
588 00:40:48,310 00:40:52,180 [newsreader] Many New Yorkers consider her the personification of greed. [newsreader] Many New Yorkers consider her the personification of greed.
589 00:40:52,280 00:40:57,680 Leona Helmsley had become a symbol of excess and of greed Leona Helmsley had become a symbol of excess and of greed
590 00:40:57,780 00:41:00,550 and of just how money can just make someone awful. and of just how money can just make someone awful.
591 00:41:00,650 00:41:04,960 Leona Helmsley was so awful that even Donald Trump took pleasure in her fall. Leona Helmsley was so awful that even Donald Trump took pleasure in her fall.
592 00:41:05,060 00:41:07,060 Harry would never fire him, he's... [inaudible] Harry would never fire him, he's... [inaudible]
593 00:41:07,160 00:41:10,700 Perhaps unsurprisingly, she immediately planned an appeal. Perhaps unsurprisingly, she immediately planned an appeal.
594 00:41:11,430 00:41:18,040 I have done nothing wrong. I'm innocent. My only crime is that I'm Leona Helmsley. I have done nothing wrong. I'm innocent. My only crime is that I'm Leona Helmsley.
595 00:41:22,110 00:41:24,740 As the decade's icons faced a day of reckoning, As the decade's icons faced a day of reckoning,
596 00:41:24,850 00:41:29,250 the former sheriff of New York moved to seize control of the whole city. the former sheriff of New York moved to seize control of the whole city.
597 00:41:29,620 00:41:31,380 [announcer] The man who's gonna be our next Mayor, [announcer] The man who's gonna be our next Mayor,
598 00:41:31,490 00:41:34,990 who's gonna give the City of New York back its soul, Rudy Giuliani. who's gonna give the City of New York back its soul, Rudy Giuliani.
599 00:41:35,090 00:41:37,360 [applause] [applause]
600 00:41:37,460 00:41:39,920 [Kirtzman] In New York there's no greater stage than mayor. [Kirtzman] In New York there's no greater stage than mayor.
601 00:41:40,030 00:41:43,360 The mayor is the center of the tabloid's focus. The mayor is the center of the tabloid's focus.
602 00:41:43,460 00:41:48,230 New York is a city overwhelmed by crime, crack, and corruption. New York is a city overwhelmed by crime, crack, and corruption.
603 00:41:48,340 00:41:52,200 There was a sense the New York was out of control and Giuliani, There was a sense the New York was out of control and Giuliani,
604 00:41:52,310 00:41:57,180 his whole thing is control. And so it was a natural office for him to run for. his whole thing is control. And so it was a natural office for him to run for.
605 00:41:57,280 00:42:02,910 Now is the time to take our city back from the violent criminals on the streets Now is the time to take our city back from the violent criminals on the streets
606 00:42:03,020 00:42:06,050 and the white collar criminals in their office suites. and the white collar criminals in their office suites.
607 00:42:06,150 00:42:12,220 Coming in as a hard lying guy, the cops are backing him, the days are numbered for that. Coming in as a hard lying guy, the cops are backing him, the days are numbered for that.
608 00:42:12,330 00:42:16,190 The candidate's years of combative tactics would lead to his own day of reckoning The candidate's years of combative tactics would lead to his own day of reckoning
609 00:42:16,300 00:42:20,930 when he faced his toughest opponent yet: the citizens of New York City. when he faced his toughest opponent yet: the citizens of New York City.
610 00:42:21,030 00:42:24,240 Before the night is over, New Yorkers will either elect David Denkins, Before the night is over, New Yorkers will either elect David Denkins,
611 00:42:24,340 00:42:26,700 the first black mayor of New York City history, the first black mayor of New York City history,
612 00:42:26,810 00:42:29,210 or one-time US Attorney Rudolph Giuliani or one-time US Attorney Rudolph Giuliani
613 00:42:29,310 00:42:31,480 will become the first Republican mayor in 20 years. will become the first Republican mayor in 20 years.
614 00:42:31,580 00:42:35,080 Giuliani's mayoral run was a total disaster. Giuliani's mayoral run was a total disaster.
614 00:42:31,580 00:42:35,080 Giuliani's mayoral run was a total disaster. Giuliani's mayoral run was a total disaster.