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Iran Contra: Walsh | 4

Iran Contra: Walsh | 4

Tue, 18 Dec 2018 08:05

Independent Counsel Lawrence Walsh is called to D.C. to investigate Iran-Contra and bring those responsible to justice. But what he discovers will shake his political allegiances, and drive a wedge through the heart of the country.

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It's July 8, 1985, just after 10 a.m. The Daughters of the American Revolution Constitution Hall, Washington DC's largest concert venue, is packed to the brim. Above the stage, Washington's a massive banner that reads ABA, the American Bar Association. Thousands of lawyers have descended on Washington for the ABA's annual meeting, and for one of the lawyers in the audience, this is a special day. His name is Lawrence Walsh. Walsh looks the part of a prosecutor. He has neatly combed short cut gray hair. His suits are dark, conservative, charcoal, often three pieces. In his 70s, he's still trim, live even. Walsh has a loss of step. His career in both the public and private sectors has been marked by a steady accumulation of credit, stature, and power. And today, Walsh is excited because he is a big fan of the man who's about to speak. Ladies and gentlemen, it's a distinct honor and privilege for me on behalf of the American Bar Association to present the President of the United States. Thank you very much. Walsh joins the course of applause as President Reagan takes the podium. I want to welcome all of you to the last tax deductible ABA convention. But the President isn't here to make jokes. He's just priming the room to talk about what's foremost in his mind, the growing threat to America, terrorism in the least. Now, there's a temptation to see the terrorist act as simply the erratic work of a small group of fanatics. We make this mistake at great peril. We must act against the criminal menace of terrorism with the full weight of the law. We will act to indict, apprehend, and prosecute those who commit the kind of atrocities the world has witnessed in recent weeks. As Reagan speaks, Walsh nods. There can be no place on earth left where it is safe for these monsters to rest or train or practice their cruel and deadly skills. We must act together or unilaterally if necessary to ensure that terrorists have no sanctuary anywhere. Thank you very much. God bless you all. In July 1985, Lawrence Walsh holds President Ronald Reagan in the highest esteem. But his admiration for the President is about to be put to the test. The year and a half after Reagan's speech to the ABA, Walsh will be named the Independent Council for the Iran Contra Investigation, a scandal that will thrust Walsh into a massive political firestorm, a probe that will pit him against the President he'd respect so deeply. An investigation that will shake Walsh's political allegiance to its court, drive a wedge through the heart of the country. Let's talk about what we call the Hidden Jewel of Streaming. Magellan TV is all about real life stories from newly discovered diaries of soldiers on D day to decisive battles that shaped the Roman Empire to life and death struggles on the plains of Africa. Magellan TV was founded by documentary filmmakers. They know that real life stories with real emotions and dramas of real people are incredibly entertaining. Run out of shows to watch on Netflix Netflix, you'll never run out on Magellan TV. You get access to a super rich collection of history, science, space, and true crime documentaries with more than 20 hours of new content added each week. Magellan TV is truly one of the best values for your money in the entire streaming universe. Plus you get ultra high definition 4K at no extra cost and you will never see an advertisement. So go to and check it out. Use the promo code podcast to get a limited time 30% off on your annual membership. If you're into true crime, the Generation Y podcast is essential listening. We started this podcast over 10 years ago to dissect some of the craziest and most notable murders, crimes, and conspiracy theories together and we'd love for you to join us. Follow the Generation Y podcast on Amazon Music or wherever you listen to podcasts. I'm Lindsay Graham and this is American Scan. In the last episode, Don Regan and Ed Meece built a wall of protection around President Regan. In this episode, Independent Council Lawrence Walsh sets out to break through that wall, investigate Iran Contra and bring those responsible to justice. By the time Lawrence Walsh arrives in Washington in December 1986, several Iran Contra investigations are already underway. Shortly after Ed Meece announces the diversion, President Regan creates the Tower Commission, an investigative body comprised of highly respected Republicans and Democrats, men with reputations for putting country over party. Congress gets in the game too. Both the House and the Senate announce congressional investigations of their own. But there's a big difference between Lawrence Walsh's investigation and the others. The Tower Commission and the congressional investigations are designed to uncover the truth, tell it to the American people, and in the case of Congress, hold hearings and pass laws to prevent something like Iran Contra from ever happening again. Lawrence Walsh is in Washington to investigate crimes and prosecute criminals. There's one major disadvantage to being an independent council that Walsh is not yet aware of. Against the powerful Washington establishment, Walsh will stand alone. Caught between Congress and the White House, Walsh is about to find himself between a hammer and an amble. This is episode four. Walsh. This January 5, 1987 in Washington, D.C. One month after Lawrence Walsh received the call naming him independent council for the Iran Contra investigation. As Walsh gets in his car and pulls out of the parking lot of the Watergate Hotel, he has a lot on his mind. Based on the preliminary evidence gathered by the FBI, Walsh believes there are two obvious candidates for prosecution, Lieutenant Colonel Ali North and former National Security Advisor John Pointexter. The evidence suggests both men obstructed justice and tampered with evidence. Walsh's strategy is simple, dangle the evidence in front of them and force them to take a deal. Lienian sentences in exchange for their full cooperation. Start at the bottom and work his way up the ladder. Climb as high as the evidence takes him, even if it takes him all the way to the Oval Office. But the other investigations, especially those in Congress, could interfere if they grant immunity. Once immunity is granted, nothing witnesses say to Congress can be used against them directly or indirectly in any criminal prosecution. In a high profile case like this, where the testimony is sure to be televised, immunity can be a prosecutor's worst nightmare. Brought before Congress, witnesses with immunity may make self incriminating statements on national television for millions to see. But back in the courtroom, a judge might find that the previously broadcast testimony tainted the statements of other witnesses. Evidence could be thrown out. Witnesses disqualified and even if the prosecutor does get a guilty verdict, an appeal would be certain, perhaps overturning the conviction. Walsh knows this is a problem. So he drives the Capitol Hill to head it off by meeting one on one with the new speaker of the House Jim Wright, the most powerful man in the House of Representatives. Walsh wants Congress to conduct their investigation without offering immunity or at least wait till his investigation is on more solid ground. He's hoping in this meeting, Wright will see his point of view. But when Walsh arrives in Wright's office, he's surprised to find Wright isn't alone. There's a slew of congressmen waiting inside. It's not a one on one meeting. It's an ambush. At the head of the pack is Wyoming representative and future vice president Dick Cheney. Cheney and the other congressmen immediately begin firing off questions. Questions like, what evidence do you currently have? What evidence are you willing to share? How will you cooperate with Congress? And when will that cooperation begin? Walsh isn't a tough spot and he knows it. It's not that he doesn't want to cooperate with Congress. He just literally can't. He turns to Dick Cheney. Congressman, I'm required by law to maintain the secrecy of any evidence presented to a grand jury. Disclosing evidence to Congress before trial is potentially prosecutorial misconduct. And I won't do it. Most of the congressmen are sympathetic to his position. But not Cheney. He radiates dissatisfaction. How long is this investigation going to take, Mr. Walsh? It's hard to say Congressman Cheney. I intend to follow the evidence wherever it leads. Well, you need to wrap this up as soon as possible. Speed is not only essential. It is justified. As Walsh leaves Capitol Hill, he fears that conflict with Congress is unavoidable. Walsh knows that investigating something on the level of a Ron Conjure is slow, painstaking work. He needs to nail down the facts and pin them to the wall. But he also knows that with congressional hearings looming over his investigation, a slow, deliberate pace is not a luxury he can afford. Walsh will have to work fast and gather evidence as quickly as he can. National immunity isn't Walsh's only problem. For one thing, the case is very complicated. It will require jurors to understand the entire national security establishment, an array of very dense facts, including the wording and intention of the Bolin Amendment and the arms export control act, the concept of a presidential finding and the very nature of covert operations. And for another thing, Walsh and his team of lawyers need to confront potential witnesses with facts, and they need to know the facts better than anyone, especially the people they're questioning. A massive chunk of the paper trail is missing due to Oliver North shredding party. The remaining documents that contain those facts, the paper trail on a Ron Conjure are in the hands of senior members of the national security community, and many of them have a dog in this fight. Some are true believers in the arms for hostages and contributions. Others are directly involved and could be implicated. Their willingness to cooperate is suspect. Walsh will later admit that at the beginning of his investigation, he's a bit naive. In his words, he approaches the case like a government lawyer who expects honest compliance from the government, but very quickly, he finds out that in a Washington DC, mired by scandal, honest compliance is hard to combine. In January 1987, Walsh requests documents and records from the Justice Department, the CIA, the NSC, and the White House. He needs to establish a clear picture of events. Some records have turned over, but many documents are withheld. The CIA and the White House cite reasons of national security and executive privilege. As independent counsel, Walsh has the power to subpoena these records to force the White House and others to turn them over. But, like all things in Washington, it's not that simple. Subpoena power is a nuclear option, a declaration of war against the White House. If Walsh uses this power of subpoena, the government could fight it in court, and Walsh's investigation could be tied up for months, or even longer, and he doesn't have that kind of time. Delays give suspects time to think, time to craft their stories, time to destroy evidence, and Congress, time to grant immunity. But there's another power player in DC who wants the evidence released, too, a former fire brand senator from the state of Texas named John Tower. On January 20, 1987, Senator Tower invites Lawrence Walsh to meet him in the new executive office building. Despite his name, John Tower is a short man, but on the hill, he has a big reputation for being tough. He's the man President Reagan has tapped to lead the President's special review board to investigate Iran Contra. Tower called this meeting because his commission has a major problem. Compared to the broad scope of Walsh's power, Tower's mandate is limited. The Tower Commission has no authority to subpoena documents, or compile witnesses to testify. And so far, Tower is having a hard time getting people to talk. When Walsh sits down with him, Tower skips the pleasantries and gets right down to business. He implores Walsh to use his subpoena power to obtain the records they both need and compile witnesses to start talking. He urges Walsh to move fast and then turn over his findings to the Tower Commission, so Tower impulses report. Walsh's answer isn't unequivocal, no. He tells Tower, that's just not how the law works, which puts an end to the meeting in any potential alliance. While it's another dead end for Walsh, he learns a valuable lesson. When it comes to this investigation, the members of the Tower Commission, like Congress, see Walsh's role as subservient to their goals. Their job is to uncover the facts. In their mind, Walsh's role is to prosecute the crimes they expose. Walsh is not subservient to Congress or to the Tower Commission. Walsh is only subservient to the law. In spite of delays from the White House, tussles with Congress and disagreements with the Tower Commission, Walsh presses on. The first step is finding a key witness, an insider who knows the inner workings of the Iran Contra affair, someone Walsh can compel to cooperate. Walsh's first instinct is CIA director Bill Casey, but Casey has recently made a troubling announcement. He is dying of cancer and only has a few months to live. The cancer has all but incapacitated him. Any secret he holds better on Contra will likely die with him, so Walsh's team must turn to someone else. On January 31, 1987, two months after Lawrence Walsh arrives in Washington, he calls a meeting with his large team of investigators and lawyers at the new DC headquarters for the office of the Independent Council or the OIC for short. The space is cramped and the walls are in need of a fresh coat of paint, but Walsh finds it a fitting home base and once belonged to a federal judge and Walsh is a former judge himself. In fact, his team still refers to him as Judge Walsh. At half past ten, Walsh enters the room. The first thing he says is, with a group this big, we should be done already. Walsh always starts his meetings with a quip, a flick of width to break the ice. His team calls this tactic the needle. But today, Walsh's needle doesn't have the desired effect. No one laughs. That's because the general feeling in the room is that the clock is ticking. Congress might move forward with immunity at any moment, and the OIC doesn't even have its first cooperating witness. In the meeting, one of the first people to speak is prosecutor John Douglas. A tall, soft spoken former FBI agent, Douglas believes the obstruction case on Oli North is open and shut. When Oli started shredding documents in November 1986, he wasn't exactly subtle. He didn't do it behind closed doors. He did it out in the open, in front of NSC staffers, and got his secretary to help him. Even the press caught wind of it. On November 27, 1986, the Los Angeles Times did a story on Oli's shredding party. The problem is, Oli won't admit it, neither will anyone else. Walsh needs a witness, someone who can paint a clear picture of Oli's crimes. Douglas has someone specific in mind. Oli North's secretary, Fawn Hall, the woman who helped Oli commit the crime. Walsh gives Douglas the green light to offer Fawn a deal, a lenient sentence in exchange for her cooperation. At first, Paul is reluctant to talk. She believes in Colonel North and what he was doing for the country. Douglas is polite, but he doesn't mean words. He tells Fawn that they have her dead derites on tampering with evidence. He explains that crime alone carries a maximum sentence of 20 years in prison. Fawn quickly gets the picture. It's cooperation or jail. And with her back against the wall, Fawn takes the deal. She tells them everything. By February of 1987, Lawrence Walsh has what he needs to make a case against Oli North. He has secured Fawn Hall's cooperation, but what he really wants is Oli's cooperation. If Oli talks, Walsh can learn who else is involved and potentially go after bigger fish on bigger crimes. But getting Oli to tell his story will be difficult, even with Fawn Hall's cooperation in his back pocket. Throughout December of 1986, January and February of 1987, while Lawrence Walsh and his team of prosecutors close in on North, other investigations charge a head full steam, the Walsh and Congress and the Tower Commission. But many of the key players involved in Iran's contra are still reluctant to talk. Former National Security Advisor John Poindexer and Oli North have both taken the fifth. In fact, in December of 1986, in a closed door hearing with the Senate Intelligence Committee, Oli North takes the fifth amendment not once, but over 40 times. What in February of 1987, there is one man who's willing to talk. Former National Security Advisor Robert Bud McFarland. If you're into true crime, the Generation Y podcast is essential listening. We started this podcast over 10 years ago to dissect some of the craziest and most notable murders, crimes, and conspiracy theories together, and we'd love for you to join us. Generation Y is one of the longest running true crime podcasts out there, and we are still at it, unraveling a new case every week. We break down infamous cases like the Evil Genius Bank robbery, and lesser known cases like the case of Kimberly Rico. Did she actually kill her husband after they took part in a murder mystery game? We cover every angle, breaking down theories, diving deep into forensic evidence, and interviewing those close to the case. And with over 450 episodes, there's a little something for every true crime listener. Follow the Generation Y podcast on Amazon Music, or every listen to podcasts, or you can listen ad free by joining Wondery Plus in the Wondery app. By February 1987, Bud has been talking for months. Unlike Ollie and PointeXer, Bud didn't take the fifth to Congress. He told his story in a closed door session. He even agreed to testify before the Tower Commission, but has his date with the Tower Commission approaches. Bud is starting to waver. Bud is something of a scholar on ancient Japan. He's a enamored by the great warrior class, the Samurai. Samurai means one who serves, and that's how Bud sees himself. Hours before he is set to testify, Bud, the warrior servant, is ashamed. By setting a Ron Contra in motion, Bud abandoned his honor. So Bud does what an American samurai is duty bound to do when he has dishonored his country and sullied his name. Late at night, with his wife already in bed, Bud pours himself a glass of wine and opens the cap to a bottle of pills. It's Tuesday, February 17, 1987. When Bud's eyes flood or open, for a brief moment, he doesn't know where he is, but then it all comes flooding back. The note, the pills, the ambulance ride. Now he's recovering in a hospital bed where he's been for a full week at the Bethesda Navy Medical Center, a hospital just a few miles from his home. Did you sleep well? The sound of the doctor's voice startles him. Seems like you were having a good nap. Where's John De? Your wife's in the cafeteria. She needed to stretch her legs. When can I go home? Soon, Mr. McFarlane. How are you feeling? I'm fine. That's a lie. Bud doesn't tell the doctor that he's a ruined man. He doesn't tell him that through his entire life he's been consumed by the idea of devotion to his country, and he doesn't tell him that when he looks back on his career, he finds himself wanting. Instead, he says, wait, you let John know I'm awake. Of course. Get some rest. Just then, a nurse hurries into the room. She looks like she's seen a ghost. Mr. McFarlane, you have a visitor, sir. I'm not taking visitors. Tell them I'm sorry. I'm not sure I can do that, sir. There's a knock at the door and a familiar voice. How do you feel in Bud? Instantly, Bud understands that this is no ordinary visitor. Standing in the doorway of his hospital room is former president Richard Millhouse Nixon. Bud worked for Henry Kissinger under the Nixon administration, and though they didn't know each other well when Nixon was president, over the past few years they've developed a friendship. Nixon is one of the first people to visit Bud in the hospital. He gives Bud some much needed advice. Advice from a former president taken down by scandal to another public servant who finds himself mired in a scandal of his own. Nixon says it's essential for all of us to accept in our souls error and to have the gumption to realize that an even greater error would be to lapse into morose so horrific laziness. Nixon pleads don't give up. Bud receives a lot of well wishes and gifts during his time in the hospital. Chocolate truffles, bibles, flowers, cards, a stranger even sent a copy of Frank Capers. It's a wonderful life. The video cassette came with a simple note. Watch this. It's hard to say exactly what was going through Bud's mind when he swallowed those pills. A friend will later tell the Washington Post that when he heard about Bud's suicide attempt, his first thought was, my god, Bud's a samurai, his sense of duty and loyalty conflicted with his sense of duty to tell the truth. While Bud's in the hospital, Nixon isn't the only president who makes his presence now, but also gets a call from Ronald Reagan. Bud tells him, I'm sorry I failed you. Reagan responds, you didn't fail me. It was a sensible goal to pursue and you shouldn't blame yourself because it didn't work. Few days after Bud checks out of the hospital, he and his wife snuggle up on the couch in their living room. They watch it's a wonderful life. Maybe it's the words of Richard Nixon or the well wishes of his friends or the power of the story itself, but as Bud recuperates from his suicide attempt, he takes to heart the message of the Caper film. He sees meaning again in his values, his life and his career. And more importantly, he sees that he still has a part to play in this mess that he helps start. He doesn't lapse into a so horrific laziness as Nixon had managed. Instead, Bud, the faithful servant, does his duty. On February 21st, a few days after Bud checks out of the hospital, he invites the members of a tower commission to his home in suburban Maryland. Bud goes on the record. He tells them President Reagan knew about the November 1985 hawk shipment in advance. Not only did he know about it, he ordered it. Bud will go on to cooperate with Lawrence Walsh's investigation. In a year's time, he will plead guilty to four misdemeanor charges in connection with his Iran contractivities. Bud gets off easy. In exchange for his cooperation, Walsh will waive felony charges and Bud will never spend a day in jail. Bud statements in February 1987 and the conclusions of the tower commission are a major problem for President Reagan. Because the tower commission's findings contradict the public statements Reagan has made. But it's a problem for someone else too. Chief is staffed on Reagan. Don had tried to pin the Iran Contra scandal on Bud, but in late February of 1987, it's Don who's about to be the odd man out. On February 27, 1987, after interviewing over 80 witnesses and compiling a massive evidence, the tower commission publishes its 300 page report. While it's not a death knell for President Reagan, it's not good news either. As the New York Times puts it, the report portrays President Reagan as a confused and remote figure who failed to understand or control the secret arm's deal with Iran. The tower commission doesn't lay the bulk of the blame on Reagan. Instead, it points the finger at Chief of Staff Don Reagan, saying he gave the President poor advice and neglected to grasp the serious legal and political risks involved with Iran Contra. On February 27, the same day as the tower commission releases its report, Reagan asks for Don's resignation. Don writes a one sentence letter addressed to the President. I hear by resign as Chief of Staff to the President of the United States. A few days later, Don returns to the White House to gather his belongings. He cleans out his desk and says goodbye to his aides, many of whom will be fired in the days to come. Still, Reagan knows Don's resignation will not be enough. The tower commission contradicts the public statement Reagan has made. Even if Reagan believed what he said when he swore he did not trade arms for hostages, the tower commission paints a very different picture, which means Reagan has no other choice but to confront the truth. On March 4, 1987, Reagan addresses the nation from the Oval Office. He tells his fellow Americans why he's been silent for the past three months. He says he wanted to wait until he had the complete story, and now that the tower commission has given it to him, he's ready to talk. First, let me say I take full responsibility for my own actions and for those of my administration. As angry as I may be about activities undertaken without my knowledge, I am still accountable for those activities. As disappointed as I may be and some who serve me, I am still the one who must answer the American people for this behavior, and as personally distasteful as I find secret bank accounts and diverted funds. What does the Navy would say? This happened on my watch. A few months ago, I told the American people I did not trade arms for hostages. My heart and my best intentions still tell me that's true, but the facts and the evidence tell me it is not. As the Tower Board reported, what began as a strategic opening to Iran deteriorated in its implementation into trading arms for hostages. There are reasons why it happened, but no excuses. It was a mistake. At the Watergate Hotel, as independent prosecutor Lawrence Walsh watches President Reagan's statement, he has to be asking himself the same thing many Americans are asking. Is President Reagan telling the truth? It's not hard to imagine that Walsh has his doubts. How could the President not know the details of the Iran contra operations? And if he didn't, he should have. Walsh is likely thinking something else too. If Reagan is not telling the truth, then there's no doubt Walsh's investigation will lead him to one destination, showdown with the President of the United States. In mid March, Congress sends word to Lawrence Walsh in his team that Olly North, John Pointexter, and a slew of others will receive congressional immunity in exchange for their testimony when the hearings begin in the summer. Congressional immunity protects witnesses from their testimony being used against them in court, but it does not protect witnesses from any evidence discovered in the course of an investigation. Evidence like documents or papers proving guilt. Unless, that evidence is discovered as a result of their testimony before Congress. If Walsh wants to go after North and Pointexter, he has to move fast, gathering evidence and sealing it in a court controlled depository before the hearings begin, a process known as canning. Walsh and his team work nonstop around the clock for three months. They collect hundreds of boxes of evidence, interview 800 witnesses, pour over 200,000 pages of secret memos, and 30 full days of grand jury testimony. They learn the tentacles of the Iran Contra scandal spans through as many as 13 foreign countries from the Middle East to Central America. It starts with a National Security Council, and into the Department of State, Defense, Justice, Transportation and Treasury, it winds through the CIA and the Office of the Vice President, and eventually reaches into the Oval Office. But there was always one man at its center, Olly North. In the summer of 1987, the World Watches as Olly North goes before Congress to tell his story. North is about to become immortalized, a dubious celebrity for the rest of his life. But as the circus of the congressional hearings unfolds, Lawrence Walsh is not watching. Walsh and his team are not allowed to listen to the testimony of immunized witnesses. They enter what Walsh calls a period of limbo. He will later say that he felt like he was living in a world where everyone we knew was a siduously following Iran Contra's developments. But we had to be like Ulysses Crew, with our ears stopped against the song of the sirens. As Walsh and his team cover their eyes and ears in early July 1987, Olly takes the stand and races his right hand. While Lawrence Walsh waits in the wings, Olly's explosive testimony in front of Congress elevates his status from White House scapegoat to conservative superstar. It's July 7, 1987, in a room in the Russell Senate office building. In 1954, this same room was used for the McCarthy hearings. A series of investigations meant to expose supposed communist infiltration of the U.S. government. In 1973, this room held the Watergate investigation into President Nixon and his administration. But today, the trove of reporters and spectators who pack into the vast Marbled Wall Caucus chamber are here to listen to Lieutenant Colonel Oliver North. Olly North usually commands a large presence, but sitting at the small table on the caucus room floor with over a dozen senators and congressmen towering over him, Olly seems small. Colonel North, please rise. Do you solemnly swear that in the testimony you're about to give will be the truth, the whole truth, and nothing but the truth, so help you God I do. Please be sure. From the very beginning, Olly doesn't take a defensive posture and he doesn't coward before the powerful men of Congress seated in front of him. Olly goes on the attack. His opening statements speak volumes. As you all know by now, my name is Oliver North Lieutenant Colonel the United States Marine Corps. I believe that this is a strange process that you are putting me and others through. You put them under oath for what must be collectively thousands of hours of testimony. You dissect that testimony to find inconsistencies and declare some to be truthful and others to be liars. It's sort of like a baseball game in which you are both the player and the umpire. It's a game in which you call the balls and strikes and where you determine who is out and who is safe. And in the end you determine the score and declare yourselves the winner. For Olly, the real culprit of the Iran Contra scandal isn't him or the NSC or President Reagan. The real culprit is Congress. One thing is I think for certain that you will not investigate yourselves in this matter. There is not much chance that you will conclude at the end of these hearings that the bold amendments and the frequent policy changes therefore were unwise or that your restrictions should not have been imposed on the executive branch. You are not likely to conclude that the administration acted properly by trying to sustain the freedom fighters in Nicaragua when they were abandoned and you are not likely to conclude by commending the President of the United States who tried valiantly to recover our citizens and achieve in opening the strategically vital Iran. It is difficult to be caught in the middle of a constitutional struggle between the executive and legislative branches over who will formulate and direct the foreign policy of this nation. It is difficult to be vilified by people in and out of this body. What after Olly's opening statement its Congress has turned to go on the attack. Mr. John W. Neales, Chief Counsel for the House Committee, leads off. Colonel North, you were involved in two operations of this government. They were covert operations. Yes, they were and covert operations are designed to be secrets from our enemies. That is correct. But these operations were designed to be secrets from the American people. Olly doesn't answer with it yes or no. He gives Congress a lesson in the nature of covert operations. I think what is important Mr. Neales is that we somehow arrive at some kind of an understanding right here and now as to what a covert operation is. I mean if we could find a way to insulate with a bubble over these hearings that are being broadcast in Moscow and talk about covert operations to the American people without it getting into the hands of our adversaries, I'm sure we would do that. But you put it somewhat differently to the Iranians with whom you were negotiating on the 8th and 9th of October and Frankfurt, Germany didn't you? Did you tell the Iranians that the Secretary of Defense had told the President at his most recent meeting when the American people find out that this has happened, they'll impeach you. That is a bald face lie told to the Iranians and I will tell you right now I'd have offered the Iranians a free trip to Disneyland if we could have gotten Americans home for it. Now in certain communist countries, the government's activities are kept secret from the people but that's not the way we do things at America is it. It's a tough question. Ali sees himself as a patriot who undertook patriotic covert actions in the name of keeping America safe. The implication of Mr. Neales's question is that Ali's actions in connection with Iran, Conrad, were unAmerican. Council, I would like to go back to what I said just a few moments ago. I think it is very important for the American people to understand that this is a dangerous world, that we live at risk and that this nation is at risk in a dangerous world and that they ought not to be led to believe as a consequence of these hearings, that this nation cannot or should not conduct covert operations. By their very nature, covert operations or special activities are a lie. There is great deception practiced in the conduct of covert operations. They are at essence a lie. We make every effort to deceive the enemy as to our intent, our conduct, and to deny the association of the United States with those activities. And that is not wrong. When asked about the missing documents that might shed light on the question of who knew what and when, Ali doesn't hold back. Where are these memorandum? Which memorandum? The memorandum that you sent up to Admiral Pointexter seeking the president's approval. If I try to guess I'm going to be wrong, but I think I shredded most of that. Well that's the whole reason for shredding documents, isn't it, Colonel North, so that you can later say you don't remember whether you had them and you don't remember what's in them. No Mr. Neils, the reason for shredding documents and the reason the government of the United States gave me a shredder, I mean I didn't buy it myself, was to destroy documents that were no longer relevant, that did not apply or that should not be divulged. Over his several days of testimony, Ali admits to everything he did, obstructing justice, tampering with evidence, lying to Congress. But there's one lingering question Ali has yet to answer. Congress wants to know if Ali is covering for the president. You described yourself as an action oriented person, correct? That's correct. And you were the person, or I think in your own statement, people would say Ali fixing, right? That's correct. And it would get fixed, right? Usually, but Oliver North, I hear you say that people would expect you to come before Congress and say, I did it. It's not their fault. I was to lose Canada. I did do it. I am not, as I said in my statement, at all ashamed of any of the things that I did. I was given a mission and I tried to carry it out. But part of that mission was to shield the others who are giving you the orders. That is the part of any subordinate. Every centurion had a group of shields out in front of a hundred of them. Ali North does not deny he was covering for president Reagan. He admits it out in the open. He's more than happy to be Reagan's scapegoat. But with his impassioned brutal honesty, Ali's testimony becomes a manifesto, the creed of patriots. Ali makes the case that if he's guilty, then the entire government is guilty. And in fact, the United States of America as a country is guilty. Guilty of trying to defend itself at all costs. Guilty of holding the unshakable values of liberty and freedom. He's just a loyal American, willing to go down with a ship, waving an American flag. Ali's testimony makes him an instant media sensation, a conservative hero. Maybe it's because the hearings were televised and frankly the camera loves Ali North. He's a handsome, charming man who painted a picture of himself as a patriot who did what he had to do to keep America safe. Or maybe it's because in a story chock full of lies, including many of his own, Ali North didn't disemble. He told the truth. But whatever the reason, in the days after his testimony, Ali Mania, as it came to be called, sweeps the nation. A publisher prints nearly a million copies of taking the stand, a transcript of Ali's testimony. Ali's hometown of Filmont, New York hosts a parade in his honor. There's merchandise too. Ali t shirts, Ali buttons, and Ali dolls. There's even an Oliver North sandwich at a deli near Buffalo, New York. But despite whatever PR victory Ali has scored with the American people, his legal troubles are mounting. North has finished as a witness before the committees, but not finished accounting for what he did. Still ahead, the special prosecutor and possible criminal indictments. The evidence against Ali is damning. In the summer of 1987, independent prosecutor Laurence Walsh and his team of lawyers and investigators prepare for trial. And it's clear to them, Ali obstructed justice by destroying a significant portion of the paper trail. It's clear to them that he lied to Congress. It's clear to them he accepted an illegal gift to buy a personal security system worth over 10 grand. He took five grand in cash and used it as a down payment on a new car. Walsh believes he has the evidence he needs and a trial his team delivers. District Judge Gerhard Gazelle gave Oliver North the following. A three year suspended prison sentence, a fine of $150,000, two years probation, and an order to perform 1,200 hours of community service in an inner city youth drug program. For many across the country, the conviction of Ali North is the end of the Iran contra affair. A year and a half later, Reagan will leave office, unaffected by the scandal with the highest approval rating in American history. By 1988, Reagan's vice president George Bush wins the White House in an electoral landslide. I've just received a telephone call from Governor DeCoccus. And I want you to know, I thank all the people throughout America who have given us this great victory. And I thank Ronald Reagan. I thank him for turning our country around and for being my friend. He is simply one of the most decent man I have ever met. Americans have clearly put the Iran contra scandal behind them. But there's one man who has not moved on. Independent Council Lawrence Walsh. Walsh sworn oath to obey and defend the Constitution of the United States. As independent council, his duty is to follow the evidence wherever it leads. Walsh knows Ali North is just the tip of the iceberg and he's determined to go as high up the ladder as the evidence takes him. As 1988 winds to a close, Walsh and his team set their sights on Reagan's inner circle. That includes his cabinet, his former vice president, and Reagan himself. In February 1990, Reagan will be subpoenaed as a witness. He will be subject to cross examination by Lawrence Walsh's prosecutors and duty bound to tell the truth, the whole truth, and nothing but the truth, so help him God. From Wondry, this is episode four of six of Iran contra for American scandal. On the next episode, independent council Lawrence Walsh sets his sights on the White House and tries to answer the question everyone has been asking. What did President Reagan know and when did he know it? If you'd like to learn more about Iran contra, we recommend the books Firewall by Lawrence Walsh, Under Fire by Oliver North, and Special Trust by Bud McFarlet. This episode contains reenactments and dramatized details and while in most cases, we can't know exactly what was said, all our traumatizations are based on historical research. American scandal is hosted, edited, sound designed, and executed produced by me, Lindsey Graham for Airship, additional production assistance by Derek Barrett's. This episode is written by Stephen Walters, edited by Andrew Stelser, our consultant is Malcolm Byrne. Executive producers are Stephanie Tens, Marsha Louis and her Nala Lopez for Wondry.