Deep Dive
Shownotes Transcript
Wondery Plus subscribers can binge new seasons of American Scandal early and ad-free right now. Join Wondery Plus in the Wondery app or on Apple Podcasts. It's March 31st, 1999, more than a year into the Kosovo War in Eastern Europe. U.S. Army Staff Sergeant Christopher Stone is sitting in the front passenger seat of an armored Humvee patrolling Macedonia's border with Yugoslavia alongside two other American soldiers.
As the Humvee rattles along a bumpy dirt road, Stone scans the horizon looking for signs of trouble. Normally, this would be a routine patrol. One Stone has done many times for the United Nations, which has been successfully keeping the peace in Macedonia while war rages next door. But this time things are different. Stone has traded his blue peacekeeper's helmet for a military green one.
It's a subtle change, but it signals a significant shift. He's no longer a UN peacekeeper. He's a combatant. Because for the past few days, the U.S. and its NATO allies have been bombing Yugoslavia. The American-led airstrikes are intended to put an end to the bloody campaign against ethnic Albanians in Kosovo, led by Yugoslavian President Slobodan Milosevic. But so far, tensions only seem to be escalating.
This is why Stone has changed his uniform. He's now working for NATO, not the UN, and looking for any sign that Yugoslavia might be planning to retaliate for the bombings. But his is still technically a peacekeeping mission. So if Stone sees anything suspicious, his orders are to send a warning to the rest of the NATO troops not to fight, which leaves Stone and his men with little recourse if anything were to happen while driving on this isolated road without their weapons combat-ready.
So Stone keeps scanning the surrounding trees and farmland for any signs of danger. Throughout their journey, no one speaks. All Stone can hear is the rumble of the Humvee's engine as they roll over uneven terrain. But then, as they approach a village, he hears something else. An odd pinging sound at the back of the Humvee.
The driver, Staff Sergeant Andrew Ramirez, looks around anxiously. You hear that? Are we taking fire? Nah, relax. It's probably just locals throwing rocks. I hear they started doing that once we took off the blue UN helmets. But then, without warning, gunfire shatters the quiet rural landscape. Stone ducks instinctively as an anti-tank rocket explodes nearby, and their vehicle is peppered with bullets. Everybody down! Ramirez, get us out of here! Ramirez floors it.
But the Humvee suddenly tilts to one side and lurches to a stop. Driven into a ditch, the engine starts to smoke. And while Ramirez tries the ignition over and over, nothing happens.
Stone peers through the shattered window of the Humvee and watches as indistinct figures emerge from behind haystacks and boulders. Stone realizes they're not going to get out of this without help, so he reaches for the radio and calls back to base. We've stalled out and have taken direct fire. We're trapped about a mile outside the village of Algonia, requesting immediate backup.
Acknowledge. Send your coordinates. Stone relays his team's position, but he can't tell if the transmission is going through. The radio keeps cutting out. Base, do you copy? Base, do you copy? We copy, but is this a joke, Sergeant? No, sir, this is no joke. We are surrounded and taking fire. I repeat, we are trapped. They're all around us. Base, do you copy? The radio goes dead, and Stone curses under his breath.
He looks at his fellow soldiers, and they're terrified. Stone realizes that, as the senior officer, it's up to him to keep them calm. Okay, look, let's not panic. We don't know who these guys are, but we're clearly outnumbered. If we try to fight back, we're likely dead. So we're going to take our chances and surrender. Understood? The other soldiers nod in agreement. Stone turns toward the passenger side door. He holds his breath for a moment, and he reaches for the handle, pushes the door open.
Immediately, Stone is surrounded by a ring of hostile soldiers. He holds up his hands to show that he and his men are going to come quietly, but the gathering soldiers ignore him. From behind, someone shoves him to the ground. Stone rolls over and tries to stand, but a heavy boot collides with his nose, knocking him down again. Through blood pouring down his face, Stone watches another soldier beat one of his men with a rifle so hard that the gun breaks.
For a moment, Stone wonders if he's led his men to their deaths. But eventually, the beatings stop. And then, at gunpoint, the three Americans are handcuffed. On his knees, Stone watches a man approach him with a black hood in his hand.
But before the man can shove it over his head, Stone spots a patch on his shoulder. It's a dark red crest with an unusual-looking bird of prey, an eagle with two heads. The sergeant knows that these are Yugoslav soldiers, that he and his men are about to become bargaining chips in an international crisis. T-Mobile has home internet on America's largest 5G network. It's how I stream the game. It's how I knock out the shopping list. It's how I level up.
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Help Dell make a difference and shop AI-ready PCs powered by Snapdragon X-Series processors at Dell.com/Deals. That's Dell.com/Deals. From Wondery, I'm Lindsey Graham, and this is American Scandal. While three American soldiers were being taken hostage in Yugoslavia, back in the United States, Congressman Rod Blagojevich was closer than ever to achieving his political dreams.
After years as a mediocre lawyer jumping from job to job, he'd met the love of his life, and her influential father had helped him get elected to the Illinois State House. Then, a reporter-turned-consultant named David Axelrod had shown him how to fundraise his way to a seat in the U.S. House of Representatives. But even in the halls of the Capitol, Blagojevich wasn't satisfied. He wanted more, and in the unfolding crisis in Yugoslavia, he saw an opportunity —
This is Episode 2, Pay to Play. It's early April 1999 in Washington, D.C. Rod Blagojevich is sitting at his desk in the chamber of the House of Representatives, half listening to the proceedings while he thinks about his future. He's been in Congress for a few years now, but he hates it. He's bored by the slow, hard work of legislating, and he doesn't like living in D.C.,
But Blagojevich has no plans to give up politics. He still loves the respect and prestige that comes with the job. So instead of looking for a way out of elected office, he set his sights on a new position, governor of Illinois. As governor, Blagojevich would have more clout, more freedom, and he could live closer to home. It would be a political dream job. But right now, there's something standing in the way. The voters back home don't really know who he is.
Blagojevich's name is hardly ever in the newspaper, and the closest thing he's had to a political accomplishment was the time he got to name a post office. So if Blagojevich wants to distinguish himself, he needs to do something big, and last week, he found the perfect opportunity. When the news broke that three American soldiers had been taken prisoner in Yugoslavia, Blagojevich's media consultant, David Axelrod, suggested that there might be a role for the junior congressman to play in negotiating their release.
Blagojevich has no record on foreign policy, and he certainly never negotiated a hostage crisis. But he has one qualification that no one else in the House of Representatives has — Serbian ancestry.
Blagojevic's father, Rade, was raised in a Serbian household in Yugoslavia, and his mother, Mili, was the daughter of Yugoslavian immigrants. Blagojevic grew up attending a Serbian Orthodox church, and he learned to speak Serbo-Croatian. Most importantly, he has contacts in Yugoslavia who might be able to help facilitate a meeting with the country's president, Slobodan Milosevic.
Blagojevich desperately wants to be the person who brings home the prisoners, and he genuinely believes he can do it. But he knows there's no way he'll be allowed to make the trip alone. The Clinton administration hasn't been returning his calls, and Blagojevich can't afford to be seen as going rogue. So if he wants to make the trip, he'll need to team up with someone more experienced. Someone who has actually negotiated with world leaders before, and has the reputation and gravitas to be taken seriously.
Blagojevich thinks he knows just the right person, the Reverend Jesse Jackson. Jackson is an internationally recognized figure who successfully orchestrated the release of more than one group of hostages. And he's also a spiritual advisor to President Clinton. If Blagojevich can convince Jackson to team up, he's sure the president will finally start returning his calls.
And while Blagojevich doesn't actually know Jackson personally, he does know the Reverend's son, Jesse Jackson Jr. Like Blagojevich, Jackson Jr. is a young representative from Chicago, and they have a good relationship.
So as soon as there's a break in proceedings, Blagojevich steals himself, gets up, and walks across the floor of Congress to Jackson Jr.'s desk. Congressman, how are you? Can I grab you for a sec? Sure, Rod. What do you need? So I'm sure you get this all the time, but I want to ask you a question about your dad. He's just amazing with everything he does, and now he's the president's spiritual advisor. What can't he do, right?
Blagojevich pauses for a second, trying to gauge Jackson Jr.'s response. He hopes he's not overdoing it. Jackson Jr. smiles, so Blagojevich presses on. So I know your dad has all this experience with getting Americans out of sticky situations, like those 50 people he brought back from Kuwait during the Bush administration, or all those people he talked Castro into releasing from Cuba in 84. Oh, yeah, yeah. He's done a lot of it. And don't forget Robert Goodman Jr., right? Yeah.
That Navy pilot who was shot down in Lebanon. Right, yeah. And then I just saw on the paper that your dad thought about going to Yugoslavia because of the three American hostages there. Yeah, he has. But the Yugoslavians won't let him meet with the Americans. I read that too. And it got me thinking. You know, my dad was a Serbian, right? Yeah.
And I've got a couple of really good contacts in Belgrade, people who are connected with the government, people who, if I asked, might be able to get us in. No kidding. Yeah, yeah. Now, do you think if I can make that happen, your dad would be interested in going to Yugoslavia with me? Try to get these guys out? Oh, yeah, absolutely. Really? You think he'd go for it? Yeah, I do. Yeah. In fact, you should call him right now.
Blagojevich is delighted by Jackson Jr.'s response, but he doesn't want to call the Reverend himself. He's long had a feeling that the elder Jackson doesn't like or respect him. They're from different sides of Chicago, and the one time they did meet, Blagojevich felt like the Reverend ignored him.
So Blagojevich tries to convey his reservations delicately to Jackson Jr. without betraying his own insecurities. And in the end, they decide that Jackson Jr. will call his dad first to gauge his interest and then call Blagojevich to give him the green light.
Relieved to hear this plan, Blagojevich thanks Jackson Jr. and walks back to his desk. He's still a little nervous, but he knows it might be worth it. Because if Reverend Jackson is on board, then this trip is sure to make headlines. And Blagojevich's name will be right there at the top. As promised, Jesse Jackson Jr. arranges a call with his dad, and Blagojevich prepares to make his case. But when he and the Reverend Jesse Jackson finally connect over the phone, something happens that strikes Blagojevich as odd.
At first, everything seems to be going well, just like Jackson Jr. said it would. The two men settle on a plan to travel to Yugoslavia and negotiate the release of the American prisoners. But then, before they hang up, the Reverend seems to flip the script, suggesting that he is the one inviting Blagojevich to come to Yugoslavia, not the other way around. The exchange leaves Blagojevich with a strange feeling, but he decides to shrug it off and focus on planning for the trip.
Takes about two weeks to get everything squared away. But finally, at the end of April 1999, Jackson and Blagojevich board a plane bound for Eastern Europe.
To ensure maximum media coverage, Blagojevich's Yugoslavian contacts have arranged for him and Jackson to make a full slate of public appearances, including visits to part of Belgrade that have been leveled by NATO bombings. And almost as soon as the group sets foot on Yugoslavian soil, people back home begin warning that the trip could backfire and make President Slobodan Milosevic, a man accused of ethnic cleansing, seem reasonable, even sympathetic.
Blagojevich knows what he's doing is politically risky. But he tells himself that as long as he's able to return home with the hostages, he'll be remembered as a hero, and everything else would be forgiven. So on the day they're scheduled to meet with the prisoners, Blagojevich prepares himself for what's sure to be the most significant photo-op of his career.
The Yugoslavians bring him, Jackson, and a few reporters into what looks like a small courtroom and tell them to wait. Then, one of the American soldiers is brought in. It's Christopher Stone, the staff sergeant who tried to radio for help before he and his men were captured. Stone starts to speak, but before he can say anything, air raid sirens go off, signaling another NATO attack. Alarmed, the Yugoslavian officials try to end the meeting.
Blagojevich doesn't know what to do, but Reverend Jackson does. The Reverend stands and makes a powerful, impassioned plea to the officials, insisting that he won't leave the room until he's seen that all three soldiers are alive and well. In spite of himself, Blagojevich is impressed. The Yugoslavians relent, and soon the other two soldiers are brought into the room.
This is the photo op that Blagojevich has been waiting for. He turns on the charm and starts to ham it up with the bewildered looking soldiers. He jokes that as a member of house military committees, he has the power to give them a pay raise. They all laugh and Blagojevich starts to relax for the first time in days.
But then Jackson takes charge again. He spreads his arms and gathers the soldiers in around him. And with his hands on their shoulders, he starts to pray. One of the reporters pulls out a camera, and that's when Blagojevich realizes he's not in the shot.
He bobs up and down behind one of the soldiers, trying to find a way to include himself, but it's no good. Stuck behind Reverend Jackson, he realizes he's met someone who's a better showman than him. It's just cost him the spotlight he so desperately needs. So as they say goodbye to the soldiers, Rogojevic's heart is in his stomach. He knows that footage will end up on televisions all over the country, and he'll be seen for what he is, a background player.
Angry and embarrassed, Blagojevich heads for the door, resolving never to let anyone outshine him again.
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Hire high-quality, certified pros at Angie.com. In April 1999, Rod Blagojevich came to Yugoslavia hoping to achieve two things. One, secure the release of three American soldiers taken hostage. And two, get his name in the papers. But two days into the trip, neither of those things has happened. The prisoners are still in custody, and Blagojevich is finding himself getting upstaged by his partner in this diplomatic mission, Reverend Jesse Jackson.
But then, a day after meeting the prisoners, Blagojevich and Jackson get some good news. Yugoslavia's president, Slobodan Milosevic, agrees to an in-person meeting with the two Americans to discuss the hostages. Milosevic is not known for being a reasonable person or a friend to American politicians. But if Blagojevich has any hope of fulfilling his goals, he'll have to sit face-to-face with a notorious world leader and convince him to give up his only bargaining chip.
So Blagojevich and Reverend Jackson make their way to the presidential palace and are ushered into an ornate meeting room where cameras from CNN and the Associated Press are already set up. And as the conversation begins, Blagojevich is determined not to stay quiet. After a rousing prayer from Reverend Jackson, Blagojevich tries to reason with Milosevic, explaining that if he really wants to start negotiating an end to the war, he'll have to start by releasing the American hostages.
After nearly three hours of talks, the delegation returns to their hotel, hopeful but unsure of what will happen next. But before the end of the night, the group receives word that Jackson and Blagojevich will be allowed to take all three American hostages back to the United States, and Blagojevich is thrilled.
It's a huge victory for the junior congressman. And even though when they return to D.C., Reverend Jackson gets most of the credit, the trip still gets Blagojevich's name in the papers. Even better, it helps him raise money. Now, when potential donors say they don't know who Blagojevich is, campaign fundraisers can refer them to the front page of the New York Times. With this newfound credibility, Blagojevich's political war chest continues to grow, reaching close to $2 million.
Finally, he has everything he needs to make a real run for Illinois governor. But Blagojevich soon learns that not everyone is enthusiastic about his candidacy, including his longtime collaborator, David Axelrod. Back in 1996, Axelrod helped Blagojevich win his first congressional election, and he's served as Blagojevich's media consultant ever since. Blagojevich has come to depend on Axelrod, and he wants Axelrod working on his gubernatorial campaign.
But every time Blagojevich tries to bring up his campaign for governor, Axelrod seems to deflect. At one point, Axelrod even suggests that Blagojevich should set his sights on a lesser office. This happens again and again, until finally Blagojevich starts to get worried and angry. The window to announce his candidacy is rapidly approaching, and he still doesn't have the commitment of one of his key strategists.
So in the summer of 2001, Blagojevich decides he can't wait any longer. Determined to get a straight answer from his longtime advisor, Blagojevich summons Axelrod to a meeting in his office. As he waits for Axelrod to arrive, Blagojevich sits down at his polished oak desk and does his best to look busy until Axelrod pokes his head through the door. Hey, Rod, you wanted to see me? Yeah, come in, Ax, take a seat. Everything okay, Rod? You seem, uh...
A little off. Well, to be totally honest, I have a bit of a bone to pick with you. Okay. Have I done something to upset you? Oh, come on, Axe. Don't play dumb with me. I can tell you've been avoiding me. Avoiding you? Yeah, look, you know I've been wanting to talk to you about my run for governor. It's almost time for me to announce, and I need to know you're with me on this. Well, you know I always have your back, Rod. And I think you're a great guy. Ah, here we go again. Why won't you give me a straight answer? Are you with me or not?
Okay, look, Rod, it's not that I don't support you. And I actually think you have a shot at winning. It's just, well, I guess I have a question I need to ask you. Sure, of course, ask me anything. Well, Rod, can you tell me why you want to be governor? Plagojevich stiffens. He's relieved Axelrod is finally talking to him, but he feels blindsided and cornered.
The truth is, he wants to be governor because he wants to be governor. But something tells him that's not what Axelrod wants to hear. Come on, Ax, what kind of question is that? It's one you're going to need to be able to answer. If not for me, then for the public. Well, sure, of course, but you can help me figure that out when it's time. Well, this is exactly what I'm talking about, Rod.
My job is to help you figure out how to run for office, not why you're running. Only you can decide that. And I hate to say it, but if you can't tell me why you want to be governor...
then you really shouldn't run. I don't understand what the big deal is. Don't you think I'd be a good governor? Come on, Rod. You know it's not that. Just think about all the money we'd raise on the campaign trail. Are you seriously telling me you're going to leave all that cash on the table? I'm sorry, Rod. I know this is a disappointment. You're bailing on me because I can't answer one stupid question. We've had a great run. But yeah, this is the end of the road for me. Axelrod stands and exits the room, leaving Blagojevich fuming. He can't believe it.
This person, who he's trusted for so long, who has supported him for years, his friend even, is abandoning him. Blagojevich is furious, and he realizes with a pang, embarrassed. He can feel the temperature rising in his face as he registers the gut punch of Axelrod's rejection. It feels like the confirmation of his worst fear, that he isn't good enough. It's an intolerable thought, and Blagojevich knows there's only one thing that will quiet it, winning the governor's race.
In all of Rod Blagojevich's previous campaigns, his biggest hurdle had been the Democratic primary. But running for governor will be different. As a state representative, and then as a congressman, Blagojevich was a Democrat representing a Democratic district in a Democratic city. Defeating Republican challengers in the general election was almost a foregone conclusion. But the state of Illinois as a whole leans more conservative. Illinois voters haven't elected a Democratic governor in a quarter century.
So after narrowly winning the Democratic primary, Blagojevich heads into the general election in 2002 against his most formidable opponent yet, the state's Republican Attorney General, Jim Ryan. Ryan is a serious rival, but he's running with a major handicap. He has the same last name as the outgoing governor, George Ryan, who happens to be embroiled in a political scandal involving racketeering, bribery, and extortion charges against members of his inner circle.
Hoping that voters might confuse the two Ryans, Blagojevich decides to run on an anti-corruption platform. But to help get that message out to a statewide audience, Blagojevich himself turns to some campaign donors with less than sterling reputations. One of those donors is a successful Chicago businessman and real estate developer named Tony Rezko.
In many ways, Rezko and Blagojevich are a perfect match. Like Blagojevich, Rezko isn't especially concerned with party loyalty or political policy. What matters most to Rezko is power. He has a keen eye for up-and-coming talent and enough money to donate to candidates on both sides of the aisle, which he uses to bolster his own influence. One of Rezko's early investments was in a young Illinois state senator named Barack Obama. Another was Rod Blagojevich.
Now, Resco not only starts writing checks to Blagojevich's campaign, he also fills the hole left by Axelrod's departure, quickly becoming one of Blagojevich's most trusted advisors, especially when it comes to raising money. By this point in his career, Blagojevich has amassed a huge Rolodex of Illinois' wealthy and elite. And once he's on the phone with them, he doesn't just ask for money. He shouts, pressures, and bullies them into writing checks.
And yet Blagojevich still feels that he can't raise money fast enough. His opponent is better known, well-funded, and from a party that has dominated the governor's office. So Blagojevich asks his new advisor, Tony Resko, to tap his own network for even more donations. That network includes a man named Ali Atta, who's eager to make his own mark in politics.
Atta had a successful career as an engineer before his life took an unexpected turn. Not long after the September 11th terrorist attacks, the FBI had come knocking on Atta's door just because he had the same last name as one of the hijackers. The visit was clearly a mistake, but it still ended up costing Atta his job.
Ever since then, Atta has been looking for a way to restore his good name. To that end, he's already raised money for Blagojevich's gubernatorial campaign. Atta, who's originally from Jordan, admires American politics and its openness. He likes Blagojevich, too, and wants to get more involved in the campaign.
So when Tony Resco asks Atta to donate even more money and hints that it might lead to a job in state government, Atta doesn't hesitate. He writes a big check and makes a list of three jobs he'd like to have. Then on August 30, 2002, he heads to Resco's office to discuss his options.
Resco's real estate company occupies a nondescript, single-story brick building in downtown Chicago. Atta rings the doorbell and waits a few minutes before Resco himself opens the door and invites Atta inside. Once in the small lobby, Resco stops Atta and holds out his hand expectantly. Taking a deep breath, Atta reaches into his suit pocket and pulls out a thin, white envelope. He hesitates for just a moment and hands it over.
Resko smiles and then beckons Atta to follow him down a long hallway toward a conference room. As Atta watches the back of Resko's head walk down the corridor, he considers what he's about to get himself into. He's known Resko for a while now, and he's well aware of his friend's willingness to operate in the gray area of money and politics. Sometimes it makes Atta nervous, and he worries that Resko's scheming might someday get them both in trouble. But today, Atta reassures himself that the risk is worth it.
Inside the white envelope he just handed to Rezko is a check for $25,000, a donation to the Blagojevich campaign. And in a few moments, Atta expects to get something in return. As they reach the conference room, Rezko winks at Atta and pushes the door open.
The mood inside the room is relaxed. Several people are sitting around a large table chatting. Resko introduces them and explains they've started calling themselves Blagojevich's Kitchen Cabinet, the inner circle of the candidates' most trusted advisors. Then Resko turns to the man sitting at the head of the table, and to Atta's surprise, it's Blagojevich himself.
Rezko tells Atta to sit down, and with an exaggerated gesture, he places the envelope with the $25,000 check inside on the table in front of Blagojevich. Then Rezko starts to talk about Atta as if he isn't there. He tells Blagojevich what a good supporter Atta has been, and he's the kind of guy you could count on to be a team player. Seeming to catch on, Blagojevich asks Rezko if he's talked to Atta about a job in his administration.
Rezko nods, tells Blagojevich that Atta has, in fact, mentioned three high-level positions he might be interested in. Atta watches this performance in amazement. He realizes that this is what people mean when they talk about pay-to-play politics in Illinois. So when Rezko walks Atta to the door after the meeting, Atta feels like an enormous weight has been lifted off his shoulders.
For the price of just $25,000, he's on his way to getting his life back on track. Now all he has to do is sit back and wait for Rod Blagojevich to win his election.
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With Tony Rescoe in his corner, Rod Blagojevich breaks one fundraising record after another. By early November 2002, his campaign has raised more than $23 million, leaving Republican candidate Jim Ryan some $10 million behind. With the campaign going so well, Rescoe starts looking to the future. If Blagojevich wins, Rescoe expects to be put in charge of hiring key positions in his administration, something he's more than willing to use to his advantage.
And a few days before the general election, Rescoe attends a swanky dinner party in a wealthy suburb of Chicago. Sipping expensive wine against the backdrop of Lake Michigan, Rescoe works the crowd, talking politics and suggesting potential deals. Then he strikes up a conversation with a lawyer in an expensive-looking suit. The man's name is Stuart Levine, and it turns out he's an old friend of Blagojevich's opponent, Jim Ryan.
Levine has been helping Ryan the way Rezko has been helping Blagojevich. But that's not the only thing they have in common. Right off the bat, Rezko can tell that Levine is also someone who likes being close to power and is willing to do whatever it takes to advance his own wealth and influence.
So even though the two men work for rival campaigns, Rezko offers to call in a favor for Levine, helping him close an important real estate deal. Levine is grateful and also intrigued. They agree to reconnect once the race is over, regardless of the outcome. Three days later, on November 5, 2002, Rod Blagojevich wins the general election.
And in two months, he'll be sworn in as Illinois' 40th governor. But first, there's work to be done. Blagojevich needs to assemble a transition team and plan for his new administration. Blagojevich and his inner circle, including Resco, start to hand out state jobs like they're candy. Even Blagojevich's babysitter gets one.
Then, in January 2003, Blagojevich takes office and continues to hire allies. Under the guise of uprooting corruption in the outgoing governor's administration, Blagojevich passes an executive order that bars anyone in state government from hiring without his express permission. This allows Blagojevich to bring in even more of his people.
But one of the few people from the outgoing administration who gets to keep his job is Tony Rescoe's new friend, Stuart Levine. Under Blagojevich, Levine remains on several influential state boards, including the Illinois Health Facilities Planning Board, which controls funding for state hospitals. And Levine has every intention of using his role in the new governor's administration to his advantage.
Over his first year in office, Rod Blagojevich reverts back to some of the habits that made him an ineffective lawmaker in Congress. He rarely works full days, often preferring to make calls from his campaign office or from home, where he can easily lift weights or go on a jog. He's home so much that his security detail, a team of state troopers, rents an apartment nearby.
To his aides, Blagojevich seems to be more focused on preparing for re-election than on governing. And when he does involve himself in state politics, he does so with mixed results. He battles members of his own party over spending cuts and enacts a risky plan to pay down the state's debts by borrowing low-interest bonds. He also passes ethics legislation, but only after angering leaders in the state legislature by vetoing their version of a similar bill.
Blagojevich's ethics bill might sound good to voters, but within his own administration, it has little impact. One power broker in particular, Stuart Levine, continues to operate with impunity, using his seat on the health facility's planning board to his own advantage.
In late 2003, Levine tries to take advantage of a major hospital expansion project outside of Chicago. His plan is to use his sway over the planning board to coerce the hospital into hiring a construction firm of his choosing. If it works, Levine will get a sizable kickback. But the hospital's CEO, Pam Davis, hasn't been playing ball. And soon, Levine's strong-arm tactics raise her suspicions.
Davis is a health care veteran who has served as the hospital's CEO for 15 years. She's passionate about this $90 million expansion and knows she has all her ducks in a row to get the project approved. She has a reputable contractor lined up at a fair price, and all of the project's paperwork completed.
But then, the day before she's scheduled to ask the planning board for approval, she gets a strange phone call from someone she knows at the investment bank Bear Stearns, instructing her to pull the project from review. The man on the phone explains that if she wants the board to approve her proposal, she'll have to switch contractors, from the one she's chosen to a company called Kieferbaum Construction.
Davis ignores the call and moves ahead with her plans. But the next day, when Davis appears before the planning board, her application is rejected in harsh and dismissive terms. Feeling confused and humiliated, Davis leaves the meeting. And on her way out of the building, she's approached by a man who repeats the warning she heard the day before. Only this time, it's more of a threat. The man says that unless Davis agrees to use Kieferbaum Construction, her project will never get approved.
Immediately, Davis recognized that what she's experiencing is extortion. But instead of caving in, Davis decides to call the FBI. When she's put through to the bureau, she speaks to an agent who at first laughs her off. Davis realized that most of the tips they get probably don't pan out, but she keeps insisting until the agent agrees to look into the case.
The FBI tells her they need to confirm her story, and they instruct her to schedule a meeting with the man she says is trying to shake her down. Davis agrees and calls Jacob Kieferbaum, the owner of Kieferbaum Construction, to arrange an in-person meeting at a local restaurant. Kieferbaum agrees to a time and place, and on a spring day in April 2004, the FBI attaches a small microphone to the inside of Davis' bra and drives her to meet with Kieferbaum.
Straightening her skirt, Davis steps down from a big white FBI van and then starts the long walk from the parking garage to the restaurant. As the click of her heels echo around the garage, she's suddenly hit by a wave of nerves and realizes what she's about to do. In just a few minutes, she's going to walk into a public restaurant and surreptitiously record someone she believes is trying to extort her. All the while, a team of FBI agents sitting in a van will be listening to every word.
Davis approaches the door of the restaurant and carefully readjusts the microphone. She's terrified that Kiefer Bond will notice the wire or that it might fall out of her blouse. If that happens, she'll have to think of something to say fast. Davis takes a deep breath and enters the restaurant. Inside, a middle-aged man in wire-rimmed glasses waves her over to his table. Mrs. Davis, please sit down. I'm glad you called me. Well, you didn't give me much of a choice.
So tell me, what is it I can do for you, Mr. Kieferbaum? Please call me Jacob. And I think you've got the wrong idea here. It's what I can do for you. Okay, I'm listening. Well, as you know, my firm would love to work with you and your project. And if you agree to choose us, I have a feeling things will start going much more smoothly for you. Davis looks down at the table, trying to think. She needs Kieferbaum to be more explicit. Otherwise, the FBI might not believe her.
Then Davis looks up and spots two undercover FBI agents sitting at the bar. There's something about their awkward attempt to blend in that strikes her as funny, and suddenly Davis doesn't feel so nervous anymore. "'Well, Jacob, explain something to me. Why do I need you? There are a million companies like yours out there, and I was perfectly happy with the one I picked. Don't you understand? If you don't hire us, you'll never get this project approved. And how on earth can you know that? Because I have a friend on the regulatory board.'"
Stuart Levine, and he has the other members under his thumb. Look, if you work with me, I can get him to help you out. But if you don't, then there's no hospital. Understand? Well, my, speak of the devil, here's the man himself.
Davis watches Kieferbaum hail down a man who's on his way out the door. She recognizes him as Stuart Levine, one of the planning board members who voted against her project. Levine smiles when he sees Davis. Oh, hello there, Mrs. Davis. What a coincidence, bumping into you and Jacob like this.
Davis feels certain that it's not a coincidence. This supposedly chance meeting seems to her to have been carefully orchestrated. But she nods and plays along. Well, hello, Mr. Levine. What a surprise indeed. Yes, Jacob tells me you two have been discussing the hospital deal. Well, let me take this opportunity to assure you that everything he says is true. I really can get your project approved. I've done it before on two other major construction jobs. Well, I don't doubt it, Mr. Levine. Hold on, that's my cell. I should take this.
Hello? Who's this? Oh, my goodness. I'll come right away. Thank you for calling. I'm so sorry, gentlemen. There's been a family emergency, and I need to leave. So sorry to cut this short, but I'll call you later, Jacob, and it's nice to meet you, Mr. Levine.
Davis stands up and walks out of the restaurant. Her heart is still pounding as she realizes she's done it. Neither Levine or Kieferbaum suspect a thing. Even when she got that so-called emergency phone call, which was actually the FBI agents who've been listening in, telling her they'd heard all they needed to hear, she's definitely being extorted.
So as Davis heads back to the FBI van for a debrief, she hopes the Bureau will be able to arrest not only Levine and Kieferbaum, but whoever's behind them. Because she's worked in Illinois politics long enough to know that this sort of corruption doesn't happen in isolation. Someone else in state government is enabling them to run these sort of schemes. She wants nothing more than to find out who that is and expose them. From Wondery, this is Episode 2 of Rod Blagojevich from American Scandal.
In our next episode, Pam Davis's tip sets off a massive FBI investigation. And while Blagojevich looks ahead to a potential second term, members of his inner circle begin to fall, starting with Stuart Levine.
Wondery Plus subscribers can binge American Scandal early and ad-free right now. Join Wondery Plus in the Wondery app or on Apple Podcasts. If you enjoy American Scandal, be sure to give us a five-star rating and leave a review. I read every one of them. I also have two other Wondery podcasts you might like, American History Tellers and Business Movers. Follow American Scandal on the Wondery app, Amazon Music, or wherever you get your podcasts. You
You can binge all episodes of American Scandal early and ad-free right now by joining Wondery Plus in the Wondery app or on Apple Podcasts. And before you go, tell us about yourself by completing a short survey at wondery.com slash survey. And to find out more about me, including my other podcasts, go to notthatlindseygram.com. That's notthatlindseygram.com.
If you'd like to learn more about Rod Blagojevich, we recommend the books Golden, How Rod Blagojevich Talked Himself Out of the Governor's Office and Into Prison by Jeff Cohen and John Chase, and A Just Cause by Bernard Seraki, as well as the archives of the Chicago Tribune. This episode contains reenactments and dramatized details. And while in most cases we can't know exactly what was said, all our dramatizations are based on historical research.
American Scandal is hosted, edited, and executive produced by me, Lindsey Graham, for Airship. Audio editing by Christian Paraga. Sound design by Molly Bach. Music by Lindsey Graham. This episode is written by Kat Schuchneck, edited by Emma Cortland. Our senior producers are Gabe Riven and Andy Herman. Executive producers are Stephanie Jens, Jenny Lauer-Beckman, and Marsha Louis for Wondery.
Welcome to another round of Boardroom or Miro Board. Today we talk retrospectives with Agile coach Maria. Let's go! First question: You've spent two hours in a team retro, but the only input you've heard is Dave's. Boardroom or Miro Board? Boardroom. In Miro, Dave can't hog the space because everyone can add thoughts anonymously, online at the same time. Correct. Next. You need the team to act on feedback fast. So you turn all those retro notes into Jira tasks. Miro all the way.
And I can assign those tasks to teammates. You're nailing this. Now, you see hundreds of sticky notes from the retro. A real mess. But you organize them into five themes in just seconds. Miro, I basically get back an entire hour when I use its AI tools for clustering.
And she's done it. For a limited time, visit miro.com slash retro now for a free business plan trial to unlock advanced retro tools like private mode, voting, and two-way jira syncing. That's miro.com slash retro now.