"Mysteries at the Museum" Biggest Cons: Mysteries at the Museum Special

1 00:00:02,030 --> 00:00:03,960 A man cashes in on a golden opportunity... 2 00:00:04,070 --> 00:00:06,800 It's really an ingenious plan. 3 00:00:06,940 --> 00:00:10,570 a cranky computer whiz hacks Las Vegas... 4 00:00:10,640 --> 00:00:13,510 He felt confident he could pull it off. 5 00:00:13,580 --> 00:00:16,110 He wanted the next big score. 6 00:00:16,210 --> 00:00:19,110 ...and a daring plot to sell the Eiffel Tower. 7 00:00:19,180 --> 00:00:23,750 This was the ultimate scam of all scams. 8 00:00:26,460 --> 00:00:28,190 These are the Mysteries at the Museum. 9 00:00:34,260 --> 00:00:36,400 Located in the northeast corner of France 10 00:00:36,430 --> 00:00:39,470 is the charming city of Nancy. 11 00:00:39,500 --> 00:00:44,070 Its focal point is the majestic Place Stanislas, 12 00:00:44,110 --> 00:00:46,070 an historic square 13 00:00:46,080 --> 00:00:49,480 that boasts a spectacular array of iron and gold gates. 14 00:00:49,550 --> 00:00:52,950 So it's only fitting that it's also home to an institution 15 00:00:53,050 --> 00:00:57,580 that celebrates metalwork -- the History of Iron Museum. 16 00:01:01,390 --> 00:01:04,920 The collection includes a pair of blacksmith's bellows 17 00:01:04,960 --> 00:01:07,160 from the 19th century, 18 00:01:07,160 --> 00:01:09,760 a locomotive called La Bouilloire 19 00:01:09,800 --> 00:01:14,100 that was used in factories in the late 1800s, 20 00:01:14,100 --> 00:01:17,100 and a French artillery gun from World War I 21 00:01:17,140 --> 00:01:19,970 called the King of Cannons. 22 00:01:22,410 --> 00:01:24,780 But standing outside the museum 23 00:01:24,780 --> 00:01:28,580 is an artifact that towers above the rest. 24 00:01:28,580 --> 00:01:30,720 It's 15 feet high. 25 00:01:30,850 --> 00:01:33,990 It's made of solid iron. 26 00:01:34,120 --> 00:01:37,320 It has a large, central iron pillar, 27 00:01:37,460 --> 00:01:41,660 and around that are three flights of stairs. 28 00:01:43,800 --> 00:01:47,930 This staircase recalls a cunning crook and a dastardly scheme 29 00:01:48,000 --> 00:01:51,400 to sell the most famous tower in the world. 30 00:01:51,440 --> 00:01:55,310 This is a story of one of the most outlandish 31 00:01:55,380 --> 00:02:00,610 and extraordinary scams France had ever seen. 32 00:02:05,150 --> 00:02:07,490 It's the 1920s in Europe. 33 00:02:07,560 --> 00:02:10,420 Victor Lustig is a career con man. 34 00:02:10,490 --> 00:02:13,160 The crafty criminal has earned a small fortune 35 00:02:13,200 --> 00:02:15,100 fleecing businessmen. 36 00:02:15,160 --> 00:02:18,300 He's committed bank fraud, produced counterfeit currency, 37 00:02:18,300 --> 00:02:21,970 and tricked marks into buying fictitious inventions, 38 00:02:22,000 --> 00:02:26,970 and despite leaving untold numbers of victims in his wake, 39 00:02:27,040 --> 00:02:28,840 he's never been caught. 40 00:02:32,050 --> 00:02:35,250 Victor Lustig, he was suave. 41 00:02:35,250 --> 00:02:36,920 He was debonair, very charming, 42 00:02:37,050 --> 00:02:39,650 and he wanted to better himself each time 43 00:02:39,720 --> 00:02:42,990 to come up with a bigger and better scam. 44 00:02:45,190 --> 00:02:47,530 And he's about to get his chance. 45 00:02:47,600 --> 00:02:52,200 In 1925, Lustig is in Paris when he learns of a controversy 46 00:02:52,270 --> 00:02:55,670 involving the city's tallest structure -- 47 00:02:55,740 --> 00:02:58,370 the Eiffel Tower. 48 00:02:58,440 --> 00:03:02,410 Erected as part of the 1889 Paris World's Fair, 49 00:03:02,440 --> 00:03:05,680 the monument was meant to be dismantled after 20 years, 50 00:03:05,780 --> 00:03:08,280 due to the expensive upkeep. 51 00:03:08,350 --> 00:03:11,350 But when the tower was used as an important radio receiver 52 00:03:11,420 --> 00:03:16,520 during World War I, demolition was postponed. 53 00:03:16,590 --> 00:03:18,630 Now, with the war long over, 54 00:03:18,690 --> 00:03:22,630 officials are once again set on tearing it down. 55 00:03:24,530 --> 00:03:28,040 Then, its future really was hanging in the balance. 56 00:03:28,170 --> 00:03:30,570 "Scrap it or save it." 57 00:03:33,840 --> 00:03:36,440 It's here that Lustig spies an opportunity 58 00:03:36,450 --> 00:03:39,010 for one of his famous cons. 59 00:03:39,080 --> 00:03:41,310 He'll pose as a French government official 60 00:03:41,380 --> 00:03:45,720 trying to sell the hulking structure for scrap. 61 00:03:45,790 --> 00:03:47,920 Lustig looked at the Eiffel Tower 62 00:03:47,990 --> 00:03:54,930 and saw 7,000 tons of iron just waiting to be sold. 63 00:03:55,030 --> 00:03:58,870 All he needed was someone stupid enough to buy it. 64 00:04:01,270 --> 00:04:04,340 Lustig writes letters on fake government stationery 65 00:04:04,410 --> 00:04:08,370 to the largest scrap dealers in Paris, introducing himself 66 00:04:08,410 --> 00:04:11,010 as the deputy director of posts and telegraphs 67 00:04:11,150 --> 00:04:13,050 for the city. 68 00:04:13,080 --> 00:04:15,420 Lustig invites them to a secret meeting 69 00:04:15,450 --> 00:04:18,020 to bid on the tower's iron 70 00:04:18,120 --> 00:04:21,450 before word of the sale gets out to the public. 71 00:04:21,490 --> 00:04:25,690 Lustig explains that this has to be done in the utmost secrecy 72 00:04:25,730 --> 00:04:27,760 because scrapping the Eiffel Tower 73 00:04:27,800 --> 00:04:30,500 is so controversial. 74 00:04:30,500 --> 00:04:32,170 It's a perfect ploy, 75 00:04:32,230 --> 00:04:36,770 and they fall for him hook, line, and sinker. 76 00:04:39,740 --> 00:04:43,040 In May, the con man meets with his prospective marks 77 00:04:43,150 --> 00:04:47,550 and lays out the details of the bogus bidding process. 78 00:04:47,620 --> 00:04:50,520 And as the scrap merchants pore over the offer, 79 00:04:50,550 --> 00:04:53,590 Lustig plays his masterstroke. 80 00:04:53,690 --> 00:04:57,060 Lustig was watching them like a hawk, 81 00:04:57,160 --> 00:05:02,000 trying to find the most vulnerable target for his scam, 82 00:05:02,100 --> 00:05:04,870 the most gullible member of the group. 83 00:05:08,240 --> 00:05:12,140 Lustig settles on a man named Andre Poisson. 84 00:05:12,210 --> 00:05:14,810 In private, he offers Poisson the chance 85 00:05:14,880 --> 00:05:18,580 to get a leg up on the competition. 86 00:05:18,680 --> 00:05:20,950 It was a classic trick. 87 00:05:20,980 --> 00:05:23,220 He took him aside and confided in him. 88 00:05:23,350 --> 00:05:26,750 "Look, I'm a poorly paid government official. 89 00:05:26,760 --> 00:05:28,360 I need some extra money." 90 00:05:28,490 --> 00:05:31,990 Poisson understood what Lustig was saying. 91 00:05:35,030 --> 00:05:40,230 The gullible merchant offers Lustig a 25,000-franc cash bribe 92 00:05:40,270 --> 00:05:42,500 to ensure that he gets exclusive rights 93 00:05:42,570 --> 00:05:46,110 to the Eiffel Tower's iron. 94 00:05:46,180 --> 00:05:49,710 Once Lustig gets the money, he flees France. 95 00:05:52,180 --> 00:05:56,520 He's long gone before Poisson realizes he's been had. 96 00:05:56,520 --> 00:05:59,390 Lustig had played the game beautifully. 97 00:06:03,060 --> 00:06:04,990 Flush with his success in Paris 98 00:06:05,060 --> 00:06:06,890 and looking for new opportunities, 99 00:06:07,000 --> 00:06:09,660 Lustig travels to Chicago. 100 00:06:09,700 --> 00:06:13,470 There, he connects with notorious gangster Al Capone 101 00:06:13,470 --> 00:06:16,340 and sets up a massive counterfeiting operation. 102 00:06:16,470 --> 00:06:19,610 It rakes in millions of dollars. 103 00:06:19,710 --> 00:06:21,840 He was rich. He'd made a fortune. 104 00:06:25,710 --> 00:06:27,510 But Lustig's fortunes are about to change. 105 00:06:30,850 --> 00:06:33,590 One day, he has a huge quarrel with his lover, 106 00:06:33,720 --> 00:06:35,460 a woman named Billy May, 107 00:06:35,590 --> 00:06:37,620 and the scorned mistress takes her revenge 108 00:06:37,690 --> 00:06:40,860 by ratting him out to the authorities. 109 00:06:40,930 --> 00:06:43,830 In the aftermath, agents arrest the con man 110 00:06:43,930 --> 00:06:46,370 on charges of counterfeiting. 111 00:06:46,440 --> 00:06:48,340 At trial, he is convicted 112 00:06:48,340 --> 00:06:50,770 and sentenced to 20 years in Alcatraz. 113 00:06:53,440 --> 00:06:56,710 But even after his ignominious downfall, 114 00:06:56,810 --> 00:06:59,250 he is still remembered somewhat fondly 115 00:06:59,250 --> 00:07:02,580 as the man who sold the Eiffel Tower. 116 00:07:02,580 --> 00:07:05,250 Despite his arrest and everything that happened, 117 00:07:05,250 --> 00:07:10,590 Lustig had cemented his place in the con man's hall of fame. 118 00:07:15,130 --> 00:07:18,000 Today, this stairwell, taken from the Eiffel Tower 119 00:07:18,130 --> 00:07:21,100 during a renovation, is on display outside 120 00:07:21,100 --> 00:07:24,500 the History of Iron Museum in Nancy, France. 121 00:07:24,640 --> 00:07:28,610 It recalls a clever con man's monumental achievement 122 00:07:28,680 --> 00:07:32,350 and his final fall from grace. 123 00:07:32,410 --> 00:07:34,880 Downtown New York City, 124 00:07:34,880 --> 00:07:37,120 the financial center of the nation-- 125 00:07:37,220 --> 00:07:40,220 nestled amongst the major banking institutions 126 00:07:40,260 --> 00:07:42,560 lies a museum dedicated to the history 127 00:07:42,560 --> 00:07:44,360 of American capitalism. 128 00:07:44,460 --> 00:07:47,190 This is the Museum of American Finance. 129 00:07:49,970 --> 00:07:51,630 Amidst these relics of financial success 130 00:07:51,670 --> 00:07:55,040 sits one item that speaks of greed, deceit, 131 00:07:55,170 --> 00:07:57,240 and downfall. 132 00:07:57,310 --> 00:07:58,740 Printed with green ink, 133 00:07:58,810 --> 00:08:00,510 it is inscribed with the English 134 00:08:00,580 --> 00:08:02,110 and French languages, 135 00:08:02,110 --> 00:08:04,110 and is valued at 6 cents. 136 00:08:04,150 --> 00:08:06,650 What is this piece of paper? 137 00:08:06,720 --> 00:08:08,980 And what role did it play 138 00:08:08,980 --> 00:08:11,020 in one of the most notorious financial scams 139 00:08:11,090 --> 00:08:13,520 in American history? 140 00:08:13,660 --> 00:08:16,620 Boston, Massachusetts, 141 00:08:16,690 --> 00:08:18,330 1919-- 142 00:08:18,460 --> 00:08:20,390 in the shadow of World War I, 143 00:08:20,430 --> 00:08:23,930 the U.S. is emerging as the global economic leader. 144 00:08:24,070 --> 00:08:25,800 One Boston investment firm 145 00:08:25,870 --> 00:08:28,030 is taking advantage of the climate. 146 00:08:28,140 --> 00:08:31,400 Called the Securities Exchange Company, 147 00:08:31,440 --> 00:08:34,270 it's founder is Italian immigrant Charles Ponzi. 148 00:08:34,280 --> 00:08:37,080 Yeah, he was a dapper Italian. He dressed well. 149 00:08:37,080 --> 00:08:40,510 So I think he made a good impression on people. 150 00:08:43,420 --> 00:08:45,150 The smooth-talking Ponzi 151 00:08:45,250 --> 00:08:47,620 offers investors a deal 152 00:08:47,690 --> 00:08:49,460 unrivaled by competitors. 153 00:08:49,460 --> 00:08:53,090 Ponzi promises to pay people, 154 00:08:53,130 --> 00:08:55,430 uh, 50% interest on their money 155 00:08:55,500 --> 00:08:58,030 in 45 days 156 00:08:58,070 --> 00:09:00,830 at a time when if you put your money in the bank, 157 00:09:00,900 --> 00:09:04,640 uh, you might get 5% interest for a whole year. 158 00:09:04,670 --> 00:09:07,240 Soon new investors are lining up 159 00:09:07,240 --> 00:09:08,910 to give Ponzi cash. 160 00:09:08,910 --> 00:09:13,450 Within a year, he rakes in $8 million, 161 00:09:13,480 --> 00:09:17,250 worth $101 million today. 162 00:09:17,250 --> 00:09:20,590 And the seemingly hardworking Ponzi 163 00:09:20,590 --> 00:09:22,660 is living in the lap of luxury. 164 00:09:22,790 --> 00:09:24,990 So Ponzi had the nicest car in Boston. 165 00:09:25,060 --> 00:09:28,460 He'd just bought himself a fancy house. 166 00:09:28,530 --> 00:09:32,900 And everyone thought, "Well, I want to get in on that, too." 167 00:09:32,970 --> 00:09:36,400 But Ponzi's booming business is not as it seems. 168 00:09:36,470 --> 00:09:40,740 An insider in his own company comes forward with a shocking revelation. 169 00:09:40,740 --> 00:09:45,750 Ponzi is actually millions of dollars in debt. 170 00:09:45,880 --> 00:09:50,320 His investors demand that he immediately return their hard-earned money. 171 00:09:50,350 --> 00:09:52,950 When enough people do that, 172 00:09:53,020 --> 00:09:54,790 Ponzi doesn't have the money to pay them. 173 00:09:57,390 --> 00:09:59,330 In search of the money trail, 174 00:09:59,390 --> 00:10:01,290 reporters look into Ponzi's business dealings 175 00:10:01,400 --> 00:10:04,960 and discover that more than a decade earlier 176 00:10:05,000 --> 00:10:07,270 he was convicted of forging checks, 177 00:10:07,340 --> 00:10:10,570 and his well-crafted persona is a sham. 178 00:10:10,570 --> 00:10:13,610 He was basically 179 00:10:13,610 --> 00:10:16,180 a con man, fraudster much of his career. 180 00:10:16,210 --> 00:10:18,580 If Ponzi was bringing in millions, 181 00:10:18,610 --> 00:10:20,880 why is in he debt? 182 00:10:20,950 --> 00:10:24,780 And what did this con man do with his investors' money? 183 00:10:28,060 --> 00:10:30,360 It's the 1920s in Boston. 184 00:10:30,430 --> 00:10:33,630 For years, smooth-talking business man, Charles Ponzi 185 00:10:33,700 --> 00:10:37,300 has been promising his investors unbelievable returns 186 00:10:37,300 --> 00:10:39,200 but now the authorities are convinced 187 00:10:39,300 --> 00:10:42,070 that these profits are too good to be true. 188 00:10:42,070 --> 00:10:45,570 So, what's the real story behind Ponzi's incredible scheme? 189 00:10:45,640 --> 00:10:48,980 The tale begins a year earlier, 190 00:10:48,980 --> 00:10:52,350 when Ponzi is on the hunt for his next big score. 191 00:10:52,450 --> 00:10:55,580 He stumbles upon his ticket to millions 192 00:10:55,680 --> 00:10:58,380 when he receives a package from colleagues overseas. 193 00:10:58,390 --> 00:11:00,450 They included with it 194 00:11:00,520 --> 00:11:03,790 one of these international postal coupons. 195 00:11:03,790 --> 00:11:06,130 Coupons like this one 196 00:11:06,190 --> 00:11:08,330 at the American Museum of Finance 197 00:11:08,360 --> 00:11:11,800 were created to foster international correspondence. 198 00:11:11,870 --> 00:11:15,000 People would buy these coupons in one country 199 00:11:15,070 --> 00:11:18,000 and send them to a recipient in another country. 200 00:11:18,070 --> 00:11:20,870 The recipient could then redeem the coupons 201 00:11:20,910 --> 00:11:22,880 for postage stamps. 202 00:11:22,880 --> 00:11:25,210 In this simple piece of paper, 203 00:11:25,280 --> 00:11:28,280 Charles Ponzi saw a pathway to riches. 204 00:11:28,380 --> 00:11:32,750 He believes he can sell the stamps for a profit. 205 00:11:32,820 --> 00:11:34,950 He could buy the coupons 206 00:11:35,020 --> 00:11:37,020 in Italy very cheaply. 207 00:11:37,130 --> 00:11:39,060 You bring them to the united states 208 00:11:39,130 --> 00:11:40,790 where money is worth more, 209 00:11:40,860 --> 00:11:42,830 and you use them to exchange for postage 210 00:11:42,860 --> 00:11:45,000 that's worth a lot more. 211 00:11:45,130 --> 00:11:47,500 And you could actually make something like a 500% profit. 212 00:11:49,170 --> 00:11:51,770 Ponzi puts together a business plan 213 00:11:51,870 --> 00:11:55,840 to purchase vast quantities of international coupons, 214 00:11:55,910 --> 00:11:59,050 all the while promising investors huge returns, 215 00:11:59,050 --> 00:12:02,780 but there's a problem with this equation. 216 00:12:02,880 --> 00:12:06,290 There wasn't enough purchase and sale 217 00:12:06,350 --> 00:12:08,290 of international postal coupons 218 00:12:08,390 --> 00:12:10,460 for Ponzi to actually make the profits 219 00:12:10,590 --> 00:12:11,930 that he was claiming. 220 00:12:12,060 --> 00:12:15,160 Ponzi's entire business plan is a ruse. 221 00:12:15,160 --> 00:12:18,060 He pockets investors' money 222 00:12:18,130 --> 00:12:20,600 instead of buying postal coupons. 223 00:12:20,640 --> 00:12:24,400 In fact, he's only purchased $61 worth 224 00:12:24,470 --> 00:12:27,140 of the postal coupons. 225 00:12:27,280 --> 00:12:30,410 So if Ponzi wasn't making money this way, 226 00:12:30,410 --> 00:12:34,210 how was he able to pay his early investors millions? 227 00:12:34,250 --> 00:12:37,820 The early investors were being paid 228 00:12:37,850 --> 00:12:41,090 from the money coming in from the later investors. 229 00:12:41,090 --> 00:12:43,090 After first paying himself, 230 00:12:43,090 --> 00:12:46,230 Ponzi simply took money from new investors 231 00:12:46,360 --> 00:12:48,160 and used it to pay early investors 232 00:12:48,160 --> 00:12:49,600 their promised return. 233 00:12:52,170 --> 00:12:55,230 Once the depth of his duplicity is discovered, 234 00:12:55,300 --> 00:12:57,300 Ponzi is convicted on federal charges 235 00:12:57,310 --> 00:12:58,770 of mail fraud 236 00:12:58,810 --> 00:13:01,910 and is sentenced to five years in federal prison. 237 00:13:01,980 --> 00:13:03,480 To this day, 238 00:13:03,510 --> 00:13:05,850 financial fraud that pays initial investors 239 00:13:05,950 --> 00:13:08,380 with the deposits of subsequent investors 240 00:13:08,520 --> 00:13:10,520 is called a Ponzi scheme. 241 00:13:10,650 --> 00:13:12,920 And this coupon remains 242 00:13:13,020 --> 00:13:15,520 at the American Museum of Finance in New York, 243 00:13:15,620 --> 00:13:17,520 reminding us of the man 244 00:13:17,630 --> 00:13:19,860 whose name is synonymous with fraud. 245 00:13:24,470 --> 00:13:28,700 With over 200 roulette wheels, 1,300 blackjack tables, 246 00:13:28,770 --> 00:13:32,000 and nearly 200,000 slot machines, 247 00:13:32,040 --> 00:13:34,740 it's no surprise that Las Vegas, Nevada, 248 00:13:34,810 --> 00:13:39,010 generates over $9 billion in gaming revenue every year. 249 00:13:42,080 --> 00:13:43,750 But just around the corner from the bright lights 250 00:13:43,890 --> 00:13:45,750 and towering casinos of the strip 251 00:13:45,820 --> 00:13:49,890 is an institution dedicated to the darker side of Sin City: 252 00:13:50,020 --> 00:13:51,820 The Mob Museum. 253 00:13:51,930 --> 00:13:54,490 Its collection includes a section of the wall 254 00:13:54,560 --> 00:13:56,830 from the St. Valentine's Day Massacre, 255 00:13:56,970 --> 00:14:00,100 a Tommy gun, and the monogrammed rings 256 00:14:00,100 --> 00:14:03,170 of infamous mobster Bugsy Siegel. 257 00:14:03,170 --> 00:14:06,640 But among these symbols of organized crime 258 00:14:06,770 --> 00:14:11,280 is a notorious text linked to an unlikely criminal. 259 00:14:11,280 --> 00:14:13,980 The artifact is 8.5 inches by 11 inches. 260 00:14:13,980 --> 00:14:17,450 It consists of 54 pages of paper. 261 00:14:17,520 --> 00:14:22,890 It has an official-looking seal on it, and, printed in blue, 262 00:14:22,960 --> 00:14:25,660 "List of Excluded Persons". 263 00:14:25,790 --> 00:14:30,530 This is the infamous black book, 264 00:14:30,600 --> 00:14:34,800 a record of every person banned from Nevada casinos. 265 00:14:34,870 --> 00:14:37,070 The names listed here include 266 00:14:37,140 --> 00:14:39,740 some of the most nefarious criminals in the nation. 267 00:14:39,740 --> 00:14:43,610 But one of them seems oddly out of place. 268 00:14:43,710 --> 00:14:46,810 This is a story about a computer geek 269 00:14:46,950 --> 00:14:50,550 who hoodwinked the entire state of Nevada. 270 00:14:55,090 --> 00:14:57,360 Las Vegas, 1992. 271 00:14:57,430 --> 00:15:00,490 36-year-old Ronald Harris works 272 00:15:00,630 --> 00:15:02,500 at the Nevada Gaming Control Board, 273 00:15:02,630 --> 00:15:05,830 the organization that oversees the state's casino industry. 274 00:15:05,970 --> 00:15:09,240 His job is to check the security software 275 00:15:09,240 --> 00:15:11,970 used to protect computerized casino games 276 00:15:12,070 --> 00:15:15,880 from hackers intent on cheating the system. 277 00:15:15,880 --> 00:15:18,910 Ron Harris was a computer whiz of the Gaming Control Board. 278 00:15:19,010 --> 00:15:21,780 He uncovered cheating scams 279 00:15:21,880 --> 00:15:25,720 and he did save the gaming industry a lot of money. 280 00:15:28,420 --> 00:15:32,660 But, despite his talents, Harris is paid a meager salary. 281 00:15:32,790 --> 00:15:35,460 The Gaming Control Board, being a state agency, 282 00:15:35,600 --> 00:15:37,530 it didn't pay very well. 283 00:15:37,600 --> 00:15:41,270 Harris thinks he deserves more, so he decides to use his skills 284 00:15:41,340 --> 00:15:44,200 to steal from the casinos. 285 00:15:44,210 --> 00:15:46,140 He thought, "You know what? 286 00:15:46,270 --> 00:15:48,370 I can cheat the system myself." 287 00:15:48,440 --> 00:15:52,010 Harris writes a computer code to rig slot machines 288 00:15:52,050 --> 00:15:54,150 so they'll pay out on his command. 289 00:15:54,250 --> 00:15:56,420 Betting a specific sequence of coins 290 00:15:56,450 --> 00:16:01,220 activates his hidden code and makes the machine spew money. 291 00:16:01,260 --> 00:16:03,490 So after you put in this long sequence, 292 00:16:03,620 --> 00:16:05,160 it would trigger a jackpot. 293 00:16:10,600 --> 00:16:13,170 Using his position at the gaming board, 294 00:16:13,200 --> 00:16:15,770 Harris has the code secretly installed 295 00:16:15,900 --> 00:16:19,310 on 44 different slot machines across the state. 296 00:16:19,310 --> 00:16:20,810 No one suspected him. 297 00:16:20,940 --> 00:16:23,180 He was able to put the program in 298 00:16:23,280 --> 00:16:25,710 without detection. 299 00:16:25,780 --> 00:16:27,910 The code is designed so he doesn't even need 300 00:16:28,050 --> 00:16:30,650 to be there to pull off the scam. 301 00:16:30,720 --> 00:16:33,720 Instead, he recruits a man named Reid McNeal 302 00:16:33,760 --> 00:16:35,390 to play the machines for him. 303 00:16:35,460 --> 00:16:37,790 Reid McNeal was one of his close friends 304 00:16:37,930 --> 00:16:40,490 and he trusted him for that reason. 305 00:16:40,560 --> 00:16:45,600 In exchange, Harris agrees to split the payouts with his pal. 306 00:16:45,670 --> 00:16:49,340 Finally, Harris sets his plan in motion. 307 00:16:49,340 --> 00:16:51,270 McNeal walks into a casino 308 00:16:51,370 --> 00:16:54,410 and takes a seat at a rigged machine. 309 00:16:54,540 --> 00:16:56,540 He carefully enters the predetermined 310 00:16:56,610 --> 00:16:57,940 sequence of coins. 311 00:17:01,120 --> 00:17:02,450 And hits the jackpot. 312 00:17:02,520 --> 00:17:04,020 He got a lot of enjoyment 313 00:17:04,020 --> 00:17:07,090 out of how much money he collected. 314 00:17:07,190 --> 00:17:09,150 Harris and McNeal hit casinos 315 00:17:09,190 --> 00:17:12,160 throughout Nevada, again and again. 316 00:17:12,230 --> 00:17:13,660 Over the next few years, 317 00:17:13,760 --> 00:17:16,630 the duo makes tens of thousands of dollars, 318 00:17:16,700 --> 00:17:19,430 enough to supplement their slim salaries. 319 00:17:19,470 --> 00:17:22,230 Harris's employers at the Gaming Control Board 320 00:17:22,300 --> 00:17:25,100 never suspect a thing. 321 00:17:25,170 --> 00:17:27,840 Flush with cash, the computer nerd 322 00:17:27,940 --> 00:17:30,810 gets a small taste of the good life 323 00:17:30,910 --> 00:17:34,980 and that makes him hungry for more. 324 00:17:35,050 --> 00:17:36,950 He wasn't satisfied 325 00:17:36,950 --> 00:17:40,990 and so he took it a step further. 326 00:17:41,060 --> 00:17:45,530 The crafty coder sets his sights on the perfect score: 327 00:17:45,530 --> 00:17:48,260 a Keno game in Atlantic City, New Jersey, 328 00:17:48,400 --> 00:17:50,860 with a $100,000 jackpot. 329 00:17:50,930 --> 00:17:53,330 Keno is a video lottery game 330 00:17:53,400 --> 00:17:57,140 where you choose numbers between 1 and 80 331 00:17:57,270 --> 00:18:02,210 and try to hit as many of the numbers as possible. 332 00:18:02,280 --> 00:18:04,810 To win the top prize, 333 00:18:04,850 --> 00:18:07,880 Harris will have to correctly pick all 8 numbers. 334 00:18:08,020 --> 00:18:11,680 The odds were 1 in 230,000 335 00:18:11,750 --> 00:18:14,420 for them to hit that many numbers at once. 336 00:18:14,460 --> 00:18:17,890 But Harris knows he can tip the odds in his favor. 337 00:18:18,030 --> 00:18:20,660 Using his contacts in the gaming industry, 338 00:18:20,660 --> 00:18:24,000 he gets a hold of the same kind of Keno machine used 339 00:18:24,030 --> 00:18:26,270 in Atlantic City and, after studying 340 00:18:26,330 --> 00:18:29,100 the device's source code, he writes a program 341 00:18:29,100 --> 00:18:32,170 that can predict each number before it's generated. 342 00:18:32,310 --> 00:18:35,170 Harris felt confident he could pull it off. 343 00:18:35,210 --> 00:18:38,710 He wanted that next big score. 344 00:18:38,780 --> 00:18:40,510 But there's a catch: 345 00:18:40,620 --> 00:18:43,920 for his program to work, he needs to know at least one 346 00:18:44,050 --> 00:18:45,420 of the sequences of numbers 347 00:18:45,490 --> 00:18:48,990 generated by the casino's Keno machine 348 00:18:49,060 --> 00:18:50,860 and, to do that, he will need to be 349 00:18:50,890 --> 00:18:54,330 inside the casino, with his accomplice. 350 00:18:54,360 --> 00:18:55,790 It's a huge risk. 351 00:18:55,830 --> 00:18:59,870 The stakes are high, but the potential for payoff is huge. 352 00:19:06,020 --> 00:19:08,360 It's the 1990s in Las Vegas, 353 00:19:08,490 --> 00:19:10,130 computer programmer Ronald Harris 354 00:19:10,260 --> 00:19:12,600 has successfully hacked a series of slot machines 355 00:19:12,600 --> 00:19:15,200 to make them pay out on his command, 356 00:19:15,270 --> 00:19:18,130 but now the casino cheat has gotten greedy. 357 00:19:18,270 --> 00:19:20,570 He set his sights on a game 358 00:19:20,610 --> 00:19:22,940 that pays out a $100,000 prize. 359 00:19:23,040 --> 00:19:26,510 So, can this computer whiz keep his streak alive? 360 00:19:26,580 --> 00:19:29,850 Or will the scam go bust? 361 00:19:29,980 --> 00:19:33,720 On January 14, 1995, 362 00:19:33,750 --> 00:19:36,150 Ronald Harris and Reid McNeal check in 363 00:19:36,250 --> 00:19:39,690 to Bally's Hotel and Casino in Atlantic City. 364 00:19:39,820 --> 00:19:44,390 Harris begins running his program from his hotel room. 365 00:19:44,460 --> 00:19:48,000 McNeal takes his place on the casino floor. 366 00:19:48,070 --> 00:19:50,030 This was the moment of truth. 367 00:19:52,940 --> 00:19:55,570 As the software begins making predictions, 368 00:19:55,640 --> 00:19:59,370 Harris relays them to McNeal through a hidden earpiece. 369 00:19:59,410 --> 00:20:02,510 McNeal places the maximum bet. 370 00:20:02,580 --> 00:20:04,110 And wins. 371 00:20:04,250 --> 00:20:05,480 It was a perfect match. 372 00:20:05,550 --> 00:20:07,780 They won the big jackpot. 373 00:20:07,820 --> 00:20:12,590 But their lucky streak is about to go bust. 374 00:20:12,720 --> 00:20:14,060 Elsewhere in the casino, 375 00:20:14,090 --> 00:20:17,330 security has just received an alert. 376 00:20:17,400 --> 00:20:21,260 Keno is one of the least winnable games 377 00:20:21,300 --> 00:20:23,800 in a casino, so it was very suspicious. 378 00:20:23,900 --> 00:20:27,470 Casino employees immediately confront McNeal. 379 00:20:27,470 --> 00:20:30,010 McNeal is taken aside for questioning. 380 00:20:30,070 --> 00:20:34,480 Reid McNeal knows he's in trouble. 381 00:20:34,580 --> 00:20:38,850 In custody, he gives up the mastermind: Ronald Harris. 382 00:20:43,050 --> 00:20:44,350 The jig was up. 383 00:20:44,360 --> 00:20:46,220 This was humiliating for him. 384 00:20:46,260 --> 00:20:50,190 He knew it was the end of his career. 385 00:20:50,300 --> 00:20:52,290 Ronald Harris is charged 386 00:20:52,300 --> 00:20:53,700 with computer fraud 387 00:20:53,830 --> 00:20:56,230 and is sentenced to 7 years in prison. 388 00:20:56,270 --> 00:21:00,370 He earns a spot on the notorious List of Excluded Persons, 389 00:21:00,410 --> 00:21:02,440 a distinction that prevents him 390 00:21:02,440 --> 00:21:05,110 from ever entering a Nevada casino again. 391 00:21:05,180 --> 00:21:09,240 Today, a copy of Nevada's so-called black book, 392 00:21:09,310 --> 00:21:11,980 complete with Ronald Harris's mugshot, 393 00:21:12,050 --> 00:21:14,980 is on display at The Mob Museum in Las Vegas. 394 00:21:15,050 --> 00:21:18,620 It recalls the story of a greedy computer programmer 395 00:21:18,620 --> 00:21:20,590 whose luck eventually ran out. 396 00:21:24,700 --> 00:21:25,930 In the 19th century, 397 00:21:26,000 --> 00:21:27,560 Springfield, Massachusetts, 398 00:21:27,630 --> 00:21:29,930 was a hotbed of innovation and home 399 00:21:29,930 --> 00:21:32,130 to the discovery of vulcanized rubber 400 00:21:32,270 --> 00:21:34,340 and the invention of basketball, 401 00:21:34,410 --> 00:21:36,810 so it's no surprise that here, 402 00:21:36,840 --> 00:21:39,880 visitors can discover a pioneering institution-- 403 00:21:39,910 --> 00:21:42,980 the D'Amour Museum of Fine Arts. 404 00:21:45,820 --> 00:21:47,820 This stately building houses 405 00:21:47,890 --> 00:21:50,420 impressive works that span centuries, 406 00:21:50,460 --> 00:21:53,560 from neoclassical bronze sculptures 407 00:21:53,560 --> 00:21:56,760 to modern American art. 408 00:21:56,790 --> 00:21:59,360 And hanging among this collection is a painting 409 00:21:59,500 --> 00:22:01,630 with a singular style. 410 00:22:01,670 --> 00:22:04,370 The piece looks very old. 411 00:22:04,440 --> 00:22:06,970 It's in a beautiful, dark wooden frame. 412 00:22:07,010 --> 00:22:10,040 It's a portrait of a gentleman 413 00:22:10,170 --> 00:22:12,240 that is very eloquently painted. 414 00:22:12,240 --> 00:22:16,380 This canvas once concealed a stunning mystery. 415 00:22:16,380 --> 00:22:18,650 No one knew where this masterpiece came from 416 00:22:18,780 --> 00:22:21,180 except one man, and his secret 417 00:22:21,250 --> 00:22:23,220 shocked the world. 418 00:22:23,290 --> 00:22:25,250 Who created this portrait, 419 00:22:25,290 --> 00:22:28,560 and how did he pull off one of art's greatest deceptions? 420 00:22:30,730 --> 00:22:33,600 May, 1945, Germany. 421 00:22:33,660 --> 00:22:36,000 It's the close of the second World War, 422 00:22:36,030 --> 00:22:38,000 and Allied forces are on the hunt 423 00:22:38,070 --> 00:22:40,270 for Nazi officers. 424 00:22:40,370 --> 00:22:42,400 One of their highest profile captures 425 00:22:42,470 --> 00:22:45,410 is the founder of the Gestapo and the head of the German Air Force, 426 00:22:45,540 --> 00:22:47,610 Hermann Goering. 427 00:22:47,610 --> 00:22:51,080 Hermann Goering was the second most powerful Nazi after Hitler. 428 00:22:51,080 --> 00:22:53,820 While searching Goering's hideout, 429 00:22:53,890 --> 00:22:56,750 soldiers make an amazing discovery. 430 00:22:56,790 --> 00:22:59,490 When the Allied troops took down Goering, they found a huge 431 00:22:59,560 --> 00:23:01,890 treasure trove of artwork. 432 00:23:01,890 --> 00:23:04,290 The Nazis are known art thieves, 433 00:23:04,360 --> 00:23:06,900 and Goering's collection contains pilfered works 434 00:23:07,030 --> 00:23:09,900 from some of history's most celebrated talents. 435 00:23:09,970 --> 00:23:13,030 But one piece stands out from the rest, 436 00:23:13,070 --> 00:23:16,040 a painting called Christ and the Adulteress , 437 00:23:16,110 --> 00:23:18,310 attributed to the 17th century 438 00:23:18,310 --> 00:23:20,510 Dutch master, Johannes Vermeer. 439 00:23:20,640 --> 00:23:22,710 Johannes Vermeer is considered to be 440 00:23:22,780 --> 00:23:25,510 one of the most important artists that ever lived. 441 00:23:25,580 --> 00:23:29,180 Any works by Vermeer were considered highly valuable. 442 00:23:29,220 --> 00:23:33,020 Determined to uncover the master work's rightful owner, 443 00:23:33,120 --> 00:23:36,160 the Allies scan through German records. 444 00:23:36,230 --> 00:23:39,930 The Nazis kept really meticulous records about the artwork, 445 00:23:40,000 --> 00:23:42,400 where it came from, and where it was stored. 446 00:23:42,530 --> 00:23:45,940 It seems that Goering purchased the Vermeer 447 00:23:45,940 --> 00:23:49,740 from an Amsterdam art dealer named Han van Meegeren. 448 00:23:49,770 --> 00:23:52,670 So, on May 29th, 449 00:23:52,740 --> 00:23:55,010 Dutch authorities pay him a visit. 450 00:23:55,080 --> 00:23:57,610 He was an older gentleman, slight build, 451 00:23:57,650 --> 00:24:00,550 and he was very respectable-looking. 452 00:24:00,680 --> 00:24:03,220 Investigators demand to know 453 00:24:03,250 --> 00:24:05,690 how the Vermeer came into his possession, 454 00:24:05,760 --> 00:24:09,360 but van Meegeren refuses to answer any questions. 455 00:24:09,490 --> 00:24:12,700 Suspecting the dealer has something to hide, 456 00:24:12,800 --> 00:24:15,830 an officer accuses van Meegeren of selling 457 00:24:15,970 --> 00:24:17,900 a stolen Vermeer to Goering. 458 00:24:18,000 --> 00:24:20,140 He was told at that point that selling 459 00:24:20,240 --> 00:24:23,440 a cultural treasure to the Nazis was a treasonous act. 460 00:24:23,440 --> 00:24:26,040 Under Dutch law, 461 00:24:26,140 --> 00:24:28,310 the punishment for such a crime is death. 462 00:24:28,410 --> 00:24:30,780 Then, a rattled van Meegeren 463 00:24:30,850 --> 00:24:32,780 offers a baffling confession. 464 00:24:32,880 --> 00:24:34,850 Van Meegeren turned to the officer 465 00:24:34,890 --> 00:24:37,050 and said, "I did it, I painted it." 466 00:24:37,120 --> 00:24:40,120 The officer wasn't sure whether to believe him or not. 467 00:24:40,260 --> 00:24:43,930 Van Meegeren insists that he mastered Vermeer's style 468 00:24:44,030 --> 00:24:46,800 and created six forged works, 469 00:24:46,860 --> 00:24:48,860 including the Head of Christ, 470 00:24:49,000 --> 00:24:51,970 now on display at the D'Amour Museum of Fine Arts. 471 00:24:54,210 --> 00:24:57,740 Van Meegeren had been selling them for a lot of money. 472 00:24:57,740 --> 00:25:00,610 But authorities are not convinced he crafted 473 00:25:00,740 --> 00:25:03,140 this time-worn masterpiece, 474 00:25:03,180 --> 00:25:05,210 so they issue a challenge 475 00:25:05,280 --> 00:25:08,280 that they believe will settle the matter once and for all. 476 00:25:08,350 --> 00:25:11,220 The idea was that if van Meegeren could paint these 477 00:25:11,220 --> 00:25:13,690 and fool art experts, 478 00:25:13,720 --> 00:25:16,890 he should be able to paint a work in front of the officers. 479 00:25:17,030 --> 00:25:19,490 So can van Meegeren create 480 00:25:19,530 --> 00:25:21,760 a convincing forgery, 481 00:25:21,830 --> 00:25:23,830 or will he be proven a traitor? 482 00:25:27,990 --> 00:25:33,010 It's 1945 in Amsterdam. 483 00:25:33,040 --> 00:25:35,040 a stolen Vermeer painting to the Nazis, 484 00:25:35,150 --> 00:25:38,250 but the art dealer has an extraordinary defense. 485 00:25:38,380 --> 00:25:41,720 He claims the artwork in question was a fake 486 00:25:41,820 --> 00:25:44,190 that he created, but to prove it, 487 00:25:44,260 --> 00:25:46,720 he'll have to paint another masterpiece. 488 00:25:46,720 --> 00:25:48,720 So can he do it? 489 00:25:50,730 --> 00:25:52,930 Van Meegeren begins his demonstration 490 00:25:52,960 --> 00:25:55,600 under the eyes of skeptical authorities, 491 00:25:55,730 --> 00:25:58,600 but as his painting takes shape, 492 00:25:58,670 --> 00:26:01,540 they can't help but be impressed by his talent. 493 00:26:01,640 --> 00:26:04,270 It became clearer and clearer that he actually 494 00:26:04,410 --> 00:26:07,510 had the technical skill to create a forgery. 495 00:26:07,640 --> 00:26:10,210 But there is one glaring discrepancy 496 00:26:10,280 --> 00:26:12,350 between van Meegeren's creation 497 00:26:12,350 --> 00:26:14,620 and the one found in Goering's stash-- 498 00:26:14,720 --> 00:26:18,350 the celebrated painting appears centuries old. 499 00:26:18,420 --> 00:26:21,820 And that's when van Meegeren reveals 500 00:26:21,890 --> 00:26:24,060 the final step of his process. 501 00:26:24,160 --> 00:26:26,830 He puts his painting into an oven. 502 00:26:26,900 --> 00:26:29,730 When he removes it an hour later, 503 00:26:29,730 --> 00:26:31,930 the paint is yellowed and cracked. 504 00:26:32,070 --> 00:26:34,440 Van Meegeren had created, in front of their eyes, 505 00:26:34,570 --> 00:26:37,040 what looked like an old Vermeer painting. 506 00:26:37,170 --> 00:26:39,440 The master mimic reveals 507 00:26:39,480 --> 00:26:41,710 that the secret lies in a simple material 508 00:26:41,780 --> 00:26:44,110 mixed into the paint. 509 00:26:44,180 --> 00:26:46,180 Van Meegeren figured out that if he added 510 00:26:46,220 --> 00:26:48,980 a product called Bakelite, which was an early plastic, 511 00:26:49,050 --> 00:26:51,850 as a binder, then the works could be heated, 512 00:26:51,960 --> 00:26:54,420 and the paint would harden 513 00:26:54,460 --> 00:26:56,790 to look like it was very, very old. 514 00:26:56,790 --> 00:26:59,190 Van Meegeren's demonstration 515 00:26:59,260 --> 00:27:02,000 convinces Dutch authorities that he did not 516 00:27:02,000 --> 00:27:04,600 sell cultural treasures to the Nazis. 517 00:27:04,740 --> 00:27:07,470 The government dropped the treason charges, 518 00:27:07,470 --> 00:27:09,610 'cause they could see that he had successfully 519 00:27:09,610 --> 00:27:11,870 forged the Vermeers. 520 00:27:11,940 --> 00:27:15,080 The artist is found guilty of a lesser charge-- 521 00:27:15,110 --> 00:27:17,110 forgery for profit-- 522 00:27:17,180 --> 00:27:19,680 and is sentenced to a year in prison. 523 00:27:19,720 --> 00:27:23,490 But instead of being remembered as a convicted criminal, 524 00:27:23,490 --> 00:27:27,360 the artist is celebrated for his craft and guile. 525 00:27:27,430 --> 00:27:29,820 Van Meegeren was hailed 526 00:27:29,860 --> 00:27:31,960 as a national hero by the Dutch 527 00:27:32,000 --> 00:27:34,500 for fooling Hermann Goering 528 00:27:34,630 --> 00:27:37,970 and making him pay such a large sum for a fake painting. 529 00:27:39,970 --> 00:27:43,070 And here, at the D'Amour Museum of Fine Arts in Springfield, 530 00:27:43,140 --> 00:27:45,440 this painting hangs as proof 531 00:27:45,510 --> 00:27:47,040 of one man's ingenious talents 532 00:27:47,080 --> 00:27:49,240 in the fine art of fakery. 533 00:27:53,250 --> 00:27:54,580 Deadwood, South Dakota. 534 00:27:54,650 --> 00:27:57,350 This historic town was once a lawless haven 535 00:27:57,390 --> 00:27:59,850 for gamblers and gunslingers. 536 00:27:59,890 --> 00:28:02,720 Today, the saloon is still standing 537 00:28:02,730 --> 00:28:05,230 where outlaw Wild Bill Hickok was shot 538 00:28:05,300 --> 00:28:08,400 playing poker in 1876. 539 00:28:08,470 --> 00:28:11,030 And symbols of this city's fabled past 540 00:28:11,100 --> 00:28:13,740 are showcased at the Deadwood City Hall. 541 00:28:17,470 --> 00:28:19,670 On display are such Wild West relics 542 00:28:19,740 --> 00:28:23,080 as a Colt revolver from 1860, 543 00:28:23,210 --> 00:28:27,120 alcohol bottles dating back to the time before Prohibition, 544 00:28:27,120 --> 00:28:29,280 and porcelain produced 545 00:28:29,320 --> 00:28:31,750 in Deadwood's very own Chinatown. 546 00:28:35,090 --> 00:28:38,160 But the most amazing item here recalls a clever con 547 00:28:38,260 --> 00:28:40,800 with an unexpected twist. 548 00:28:40,870 --> 00:28:43,430 The artifact is about an inch in diameter. 549 00:28:43,430 --> 00:28:45,970 It's a small, flat circle made of nickel 550 00:28:46,100 --> 00:28:47,840 but painted gold. 551 00:28:47,910 --> 00:28:50,770 It has a V on the back and a picture of Lady Liberty on the front. 552 00:28:50,810 --> 00:28:53,340 It's over 130 years old. 553 00:28:56,050 --> 00:28:58,850 This rare coin tells the legend 554 00:28:58,880 --> 00:29:01,720 of how one canny crook was able to profit 555 00:29:01,790 --> 00:29:04,050 from the U.S. Mint's biggest blunder. 556 00:29:04,120 --> 00:29:06,690 This is one of the most unusual get-rich-quick 557 00:29:06,690 --> 00:29:08,320 schemes of all time. 558 00:29:11,160 --> 00:29:13,400 It's the late 1800s in Boston. 559 00:29:13,460 --> 00:29:16,000 Josh Tatum is a career criminal 560 00:29:16,070 --> 00:29:17,730 with an unusual characteristic-- 561 00:29:17,740 --> 00:29:20,600 he's deaf and cannot speak. 562 00:29:20,640 --> 00:29:23,070 Josh was a really enterprising young person. 563 00:29:25,740 --> 00:29:28,940 In 1883, the U.S. Mint releases a new nickel 564 00:29:29,010 --> 00:29:31,480 into circulation-- Tatum notices something 565 00:29:31,580 --> 00:29:33,480 unusual about it that presents 566 00:29:33,580 --> 00:29:35,550 an opportunity for his biggest scam yet. 567 00:29:35,620 --> 00:29:38,350 They bring out this new Liberty Nickel, 568 00:29:38,390 --> 00:29:42,160 and it so closely resembles the five-dollar coin. 569 00:29:42,290 --> 00:29:44,760 Both the nickel and the five-dollar coin 570 00:29:44,900 --> 00:29:46,960 are the same size and bear the image 571 00:29:46,960 --> 00:29:49,500 of Lady Liberty on their fronts. 572 00:29:49,500 --> 00:29:51,630 The only difference is that the nickel 573 00:29:51,740 --> 00:29:54,700 is silver, and the five-dollar coin is gold. 574 00:29:54,770 --> 00:29:57,270 These coins looked almost identical. 575 00:30:01,780 --> 00:30:03,480 If Tatum can change the color of the nickel 576 00:30:03,580 --> 00:30:06,520 from silver to gold, he could pass the nickels off 577 00:30:06,580 --> 00:30:09,220 as five-dollar coins and keep the change, 578 00:30:09,320 --> 00:30:12,790 so Tatum teams up with a friend who is also an expert 579 00:30:12,820 --> 00:30:14,590 in metallurgy. 580 00:30:14,660 --> 00:30:17,090 Josh has been partnering with his friend who 581 00:30:17,090 --> 00:30:19,660 happens to be very skilled at electroplating, 582 00:30:19,660 --> 00:30:22,130 using 24-karat gold to electroplate 583 00:30:22,230 --> 00:30:24,270 these five-cent nickels to make them look 584 00:30:24,370 --> 00:30:26,270 like five-dollar coins. 585 00:30:26,370 --> 00:30:29,540 Tatum and his pal 586 00:30:29,610 --> 00:30:32,510 convert 1,000 silver Liberty Nickels 587 00:30:32,580 --> 00:30:36,080 into fake, gold-colored five-dollar coins. 588 00:30:36,210 --> 00:30:39,280 Then the crafty con man hits the streets of Boston 589 00:30:39,320 --> 00:30:42,680 and puts their counterfeit currency to the test. 590 00:30:42,720 --> 00:30:45,490 This scheme was so clever, because they so closely 591 00:30:45,520 --> 00:30:48,290 resembled each other, and it was a very easy interaction. 592 00:30:48,330 --> 00:30:51,530 It really was just a simple matter of change. 593 00:30:51,530 --> 00:30:54,760 Each time, the scam is the same. 594 00:30:54,770 --> 00:30:57,370 Tatum goes into a shop and motions to the clerk 595 00:30:57,470 --> 00:31:00,170 for a five-cent item, such as a cigar. 596 00:31:00,270 --> 00:31:03,140 He pays for it with his counterfeit five-dollar coin 597 00:31:03,170 --> 00:31:05,570 and quietly waits for change. 598 00:31:05,610 --> 00:31:08,510 Ultimately, the clerk would give him back four dollars and 95 cents. 599 00:31:08,510 --> 00:31:10,880 It was really an ingenious plan. 600 00:31:13,650 --> 00:31:15,650 And it works every time. 601 00:31:15,720 --> 00:31:17,990 Tatum cashes in all over the city. 602 00:31:18,060 --> 00:31:20,790 He does so well, in fact, that he and his buddy 603 00:31:20,790 --> 00:31:24,190 make 4,000 more coins and work the scam 604 00:31:24,300 --> 00:31:26,360 up and down the East Coast. 605 00:31:26,500 --> 00:31:29,100 It was thousands of nickels that he was counterfeiting, 606 00:31:29,170 --> 00:31:32,130 so the government is at a huge risk of being 607 00:31:32,200 --> 00:31:34,240 conned out of a lot of money. 608 00:31:36,140 --> 00:31:38,010 But it's not long before the jig is up. 609 00:31:38,080 --> 00:31:41,210 A special government task force 610 00:31:41,310 --> 00:31:43,140 soon learns about the scheme. 611 00:31:43,210 --> 00:31:47,420 Tatum is promptly arrested and ordered to stand trial, 612 00:31:47,550 --> 00:31:51,750 but he lines up a lawyer, and they come up with a clever defense. 613 00:31:51,820 --> 00:31:55,060 Tatum had one more trick up his sleeve. 614 00:31:55,060 --> 00:31:56,920 So will Josh Tatum get away 615 00:31:56,960 --> 00:31:58,960 with this clever con after all? 616 00:32:04,520 --> 00:32:06,250 It's 1883 in Boston. 617 00:32:06,320 --> 00:32:09,020 Con man Josh Tatum has just been arrested 618 00:32:09,090 --> 00:32:11,620 for passing off gold-plated nickels 619 00:32:11,690 --> 00:32:15,160 as five-dollar coins, but Tatum and his lawyer 620 00:32:15,160 --> 00:32:18,530 have a clever plan that might just get the feisty forger 621 00:32:18,630 --> 00:32:20,730 off scot-free. 622 00:32:20,870 --> 00:32:24,200 So can Josh Tatum bank on freedom after all? 623 00:32:24,340 --> 00:32:27,070 At trial, 624 00:32:27,170 --> 00:32:29,640 it seems the case is cut and dry, 625 00:32:29,640 --> 00:32:32,480 but his attorney introduces a defense that stops 626 00:32:32,610 --> 00:32:34,950 the prosecution in its tracks. 627 00:32:35,020 --> 00:32:37,720 He brought each store clerk onto the stand 628 00:32:37,750 --> 00:32:39,480 and questioned them very specifically 629 00:32:39,620 --> 00:32:42,690 whether or not Josh said anything to them, 630 00:32:42,760 --> 00:32:46,090 and it was revealed that Josh never actually spoke 631 00:32:46,230 --> 00:32:48,960 to any of the clerks that he interacted with. 632 00:32:48,960 --> 00:32:51,560 His lawyer argues that because the defendant 633 00:32:51,700 --> 00:32:54,370 can't hear or speak, he's unable to correct 634 00:32:54,370 --> 00:32:57,000 the clerks when they mistake his five-cent coin 635 00:32:57,000 --> 00:32:59,300 for a five-dollar coin. 636 00:32:59,440 --> 00:33:01,440 Josh never spoke to any of these clerks 637 00:33:01,510 --> 00:33:03,640 because he was a deaf-mute. 638 00:33:03,680 --> 00:33:06,240 Josh's lawyer essentially said that Josh thought of the money 639 00:33:06,250 --> 00:33:08,850 as a gift whenever he got some extra change. 640 00:33:08,880 --> 00:33:11,280 The defense works, 641 00:33:11,290 --> 00:33:14,790 and the judge dismisses the case. 642 00:33:16,620 --> 00:33:19,590 Josh's lawyer was really able to turn around the story, 643 00:33:19,660 --> 00:33:23,030 and he was able to paint Josh in a very sympathetic light. 644 00:33:23,130 --> 00:33:25,400 Despite his unspeakable scheme, 645 00:33:25,470 --> 00:33:27,730 Josh Tatum is set free. 646 00:33:27,800 --> 00:33:30,000 Everyone's shocked. They don't know how to react. 647 00:33:30,070 --> 00:33:33,870 Josh was able to con his way out of this con, essentially. 648 00:33:33,910 --> 00:33:35,970 Josh definitely beat the system. 649 00:33:39,910 --> 00:33:42,010 The U.S. Mint immediately ceases production 650 00:33:42,080 --> 00:33:43,880 of the fatally flawed nickel. 651 00:33:43,980 --> 00:33:47,450 And Josh Tatum's tale carries a lasting legacy. 652 00:33:47,520 --> 00:33:50,720 His courtroom antics are thought to have coined 653 00:33:50,720 --> 00:33:53,890 the popular phrase, "I was just joshing you." 654 00:33:57,060 --> 00:33:59,560 Today, this gold-plated Liberty Nickel, 655 00:33:59,630 --> 00:34:01,630 now known as a Racketeer Nickel, 656 00:34:01,770 --> 00:34:05,040 can be seen on display at the Deadwood City Hall. 657 00:34:05,140 --> 00:34:07,740 It's a reminder of how a clever con man 658 00:34:07,740 --> 00:34:10,980 saw a golden opportunity in a governmental gaffe. 659 00:34:14,250 --> 00:34:15,650 Oberlin, Ohio, 660 00:34:15,680 --> 00:34:17,350 is home to the renowned liberal arts college 661 00:34:17,420 --> 00:34:19,050 of the same name. 662 00:34:19,120 --> 00:34:21,390 And on this stately campus, 663 00:34:21,420 --> 00:34:23,260 the Oberlin College Archives 664 00:34:23,390 --> 00:34:25,520 contain troves of documents 665 00:34:25,660 --> 00:34:29,590 related to this city's 179-year-old history. 666 00:34:29,660 --> 00:34:33,470 But as historian John Grabowski can attest, 667 00:34:33,530 --> 00:34:36,270 there's one item in this collection 668 00:34:36,340 --> 00:34:39,200 that tells a tale bigger than its small size may suggest. 669 00:34:39,210 --> 00:34:42,010 The piece of paper 670 00:34:42,010 --> 00:34:44,110 is about 2x6 inches in dimension. 671 00:34:44,110 --> 00:34:47,140 It's a light brown. It's aged slightly. 672 00:34:47,180 --> 00:34:48,980 It's written in ink. 673 00:34:48,980 --> 00:34:50,280 At first glance wouldn't get noticed, 674 00:34:50,350 --> 00:34:53,420 but if one looked at the date and then looked at the amount, 675 00:34:53,450 --> 00:34:55,490 then it becomes something really different, 676 00:34:55,560 --> 00:34:58,220 because the amount is so significant. 677 00:34:58,260 --> 00:35:00,690 But this extraordinary figure 678 00:35:00,760 --> 00:35:03,030 is just the beginning of the story. 679 00:35:03,060 --> 00:35:06,160 If one goes down and looks at the signature, 680 00:35:06,230 --> 00:35:08,300 the bells go off. 681 00:35:08,400 --> 00:35:11,040 The name signed at the bottom of this paper 682 00:35:11,070 --> 00:35:12,970 belongs to one of the wealthiest men 683 00:35:13,070 --> 00:35:15,740 in American history, Andrew Carnegie. 684 00:35:15,810 --> 00:35:17,910 How did this piece of paper 685 00:35:17,910 --> 00:35:20,050 and the famous signature on the bottom 686 00:35:20,150 --> 00:35:22,250 trigger a scandal so enormous 687 00:35:22,280 --> 00:35:25,250 that it shook the very foundation 688 00:35:25,250 --> 00:35:27,820 of American society? 689 00:35:30,320 --> 00:35:32,790 1903, Cleveland-- 690 00:35:32,830 --> 00:35:35,560 a flamboyant socialite named Cassie Chadwick, 691 00:35:35,660 --> 00:35:38,460 the wife of Dr. Leroy Chadwick, 692 00:35:38,570 --> 00:35:41,070 has made a name for herself in social circles 693 00:35:41,100 --> 00:35:45,000 for her extravagant spending and opulent lifestyle. 694 00:35:45,010 --> 00:35:46,670 But the source of her wealth 695 00:35:46,810 --> 00:35:49,140 does not lie with her husband. 696 00:35:49,140 --> 00:35:51,140 According to Cassie Chadwick, 697 00:35:51,140 --> 00:35:53,040 her fortune comes from her estranged father. 698 00:35:53,110 --> 00:35:56,010 Chadwick is purportedly 699 00:35:56,150 --> 00:35:57,480 the illegitimate daughter 700 00:35:57,520 --> 00:36:00,420 of one of the wealthiest men in the United States. 701 00:36:00,550 --> 00:36:03,520 The steel tycoon, philanthropist, 702 00:36:03,520 --> 00:36:07,090 and New York City resident Andrew Carnegie. 703 00:36:07,230 --> 00:36:10,700 Her story about her relationship with Carnegie 704 00:36:10,730 --> 00:36:13,030 is that he's come around, and he's now taking care 705 00:36:13,030 --> 00:36:16,030 of one of the sins of his past. 706 00:36:16,170 --> 00:36:18,800 As proof of her claim, 707 00:36:18,810 --> 00:36:21,110 Chadwick presents a series of documents 708 00:36:21,140 --> 00:36:23,910 like this one, called promissory notes, 709 00:36:23,910 --> 00:36:26,780 signed documents similar to a check 710 00:36:26,850 --> 00:36:29,180 that contain a written promise to pay a sum of money 711 00:36:29,250 --> 00:36:33,120 to the bearer of the note at a specified date. 712 00:36:33,150 --> 00:36:36,620 The notes Chadwick produces are signed by Andrew Carnegie, 713 00:36:36,660 --> 00:36:39,460 promising her enormous sums of money. 714 00:36:39,530 --> 00:36:42,530 And when these notes are seen, 715 00:36:42,600 --> 00:36:45,360 they're the evidence of the truth. 716 00:36:45,430 --> 00:36:48,130 But there's one small snag. 717 00:36:48,200 --> 00:36:50,540 Because Carnegie's notes promise Chadwick 718 00:36:50,540 --> 00:36:53,340 a share of his wealth at a much later date, 719 00:36:53,470 --> 00:36:55,710 she is unable to cash them in. 720 00:36:55,780 --> 00:36:58,140 So instead, Cassie Chadwick uses the notes 721 00:36:58,210 --> 00:37:01,350 as guarantees to secure massive loans 722 00:37:01,350 --> 00:37:02,680 from area banks. 723 00:37:02,750 --> 00:37:04,880 When she walks into banks, 724 00:37:04,920 --> 00:37:07,150 she has collateral in hand. 725 00:37:07,190 --> 00:37:09,420 One institution, 726 00:37:09,520 --> 00:37:12,190 Citizen's National Bank of Oberlin, 727 00:37:12,230 --> 00:37:15,030 gives Chadwick her biggest loan. 728 00:37:15,060 --> 00:37:18,830 She manages to get nearly a quarter of a million dollars. 729 00:37:18,830 --> 00:37:22,570 Then in November of 1904, 730 00:37:22,670 --> 00:37:26,240 nearly two years after securing her first loan, 731 00:37:26,270 --> 00:37:29,870 Chadwick receives yet another from a banker in Boston. 732 00:37:29,910 --> 00:37:32,380 But when he learns how much she has already borrowed 733 00:37:32,410 --> 00:37:36,450 from Ohio banks, he has second thoughts. 734 00:37:36,450 --> 00:37:38,520 He asks for his money back, 735 00:37:38,590 --> 00:37:40,180 and Cassie can't pay him back. 736 00:37:40,250 --> 00:37:42,190 In fact, Chadwick has spent 737 00:37:42,260 --> 00:37:44,920 nearly every dollar she's ever had. 738 00:37:45,060 --> 00:37:46,930 And the news 739 00:37:47,060 --> 00:37:48,190 that the illegitimate daughter of Andrew Carnegie 740 00:37:48,200 --> 00:37:50,160 can't repay her loans 741 00:37:50,200 --> 00:37:53,130 spreads like wildfire. 742 00:37:53,200 --> 00:37:55,930 Anybody who was holding a note from Cassie Chadwick 743 00:37:56,000 --> 00:37:57,900 gets very, very nervous. 744 00:37:58,010 --> 00:38:00,610 That includes the depositors 745 00:38:00,710 --> 00:38:03,140 of Citizen's National Bank of Oberlin, 746 00:38:03,180 --> 00:38:04,680 who realize that the bank 747 00:38:04,710 --> 00:38:07,340 has loaned Chadwick their money, 748 00:38:07,380 --> 00:38:09,350 money it cannot get back. 749 00:38:09,380 --> 00:38:11,420 There are not enough assets 750 00:38:11,420 --> 00:38:13,150 to pay back depositors to the bank. 751 00:38:13,250 --> 00:38:15,350 The bank collapses. It fails. 752 00:38:15,420 --> 00:38:18,360 That collapse propels the tale 753 00:38:18,430 --> 00:38:20,690 of the illegitimate daughter of Andrew Carnegie 754 00:38:20,760 --> 00:38:23,030 into the American spotlight. 755 00:38:23,100 --> 00:38:25,900 What had started maybe as a local story in Ohio 756 00:38:25,930 --> 00:38:28,930 and in Boston becomes a national story. 757 00:38:28,970 --> 00:38:32,170 And the news permeates the walls of the Carnegie Mansion 758 00:38:32,310 --> 00:38:34,570 on 5th avenue. 759 00:38:34,610 --> 00:38:37,040 Then Andrew Carnegie himself 760 00:38:37,110 --> 00:38:39,440 makes a stunning announcement. 761 00:38:39,450 --> 00:38:41,310 Carnegie issues a statement-- 762 00:38:41,380 --> 00:38:44,380 "I have never heard of or saw Mrs. Chadwick." 763 00:38:44,450 --> 00:38:47,380 Carnegie had a reputation 764 00:38:47,420 --> 00:38:50,790 as an ethical, honest, straightforward guy. 765 00:38:50,790 --> 00:38:53,630 Most Americans take Carnegie at his word. 766 00:38:53,630 --> 00:38:55,530 But now the nation wants to know, 767 00:38:55,660 --> 00:38:57,500 who is Cassie Chadwick? 768 00:38:57,600 --> 00:38:59,930 And how did she get these notes? 769 00:39:00,000 --> 00:39:01,600 It's 1904. 770 00:39:01,670 --> 00:39:05,040 For two years, Ohio socialite Cassie Chadwick 771 00:39:05,070 --> 00:39:07,840 has been scamming banks out of millions of dollars 772 00:39:07,870 --> 00:39:11,240 by claiming she's the illegitimate daughter 773 00:39:11,240 --> 00:39:13,310 of steel tycoon Andrew Carnegie. 774 00:39:13,310 --> 00:39:15,150 But when Carnegie announces 775 00:39:15,220 --> 00:39:17,110 that Cassie Chadwick is a fraud, 776 00:39:17,150 --> 00:39:21,120 people begin to wonder who she really is. 777 00:39:23,490 --> 00:39:25,160 After banks alert them 778 00:39:25,160 --> 00:39:27,230 to the unfolding financial disaster. 779 00:39:27,360 --> 00:39:29,830 Federal authorities arrest Cassie Chadwick 780 00:39:29,830 --> 00:39:32,460 on suspicion of fraud. 781 00:39:32,530 --> 00:39:34,500 And they begin to piece together 782 00:39:34,530 --> 00:39:36,770 the real details of her background. 783 00:39:38,340 --> 00:39:40,740 The tale begins in 1896 784 00:39:40,870 --> 00:39:42,270 in Cleveland. 785 00:39:42,340 --> 00:39:44,780 A woman by the name of Cassie Hoover 786 00:39:44,910 --> 00:39:47,610 is operating a business of ill repute. 787 00:39:47,610 --> 00:39:50,280 One of her clients is a wealthy widower, 788 00:39:50,350 --> 00:39:52,750 Dr. Leroy Chadwick. 789 00:39:52,850 --> 00:39:55,950 The two fall in love and later marry, 790 00:39:55,990 --> 00:39:57,490 catapulting Cassie 791 00:39:57,590 --> 00:39:59,190 from Cleveland's seedy underbelly 792 00:39:59,230 --> 00:40:01,330 into its upper crust. 793 00:40:01,390 --> 00:40:04,100 She spends thousands on jewelry, clothing, 794 00:40:04,160 --> 00:40:05,230 and luxury items. 795 00:40:05,330 --> 00:40:07,270 Her compulsive buying is a symptom 796 00:40:07,330 --> 00:40:10,130 of trying to compete 797 00:40:10,170 --> 00:40:12,540 and trying to show she's as good as anybody else. 798 00:40:12,610 --> 00:40:16,370 But she quickly runs through her husband's modest fortune, 799 00:40:16,440 --> 00:40:20,080 so she develops a devious scheme-- 800 00:40:20,150 --> 00:40:22,810 pretend to be the illegitimate daughter 801 00:40:22,850 --> 00:40:25,420 of Andrew Carnegie. 802 00:40:25,420 --> 00:40:28,490 Chadwick forges Andrew Carnegie's signature 803 00:40:28,590 --> 00:40:32,960 and produces fake promissory notes like this one 804 00:40:33,060 --> 00:40:36,490 and uses them as collateral to secure loans 805 00:40:36,500 --> 00:40:39,760 totaling over $1.5 million. 806 00:40:39,870 --> 00:40:41,770 That's $35 million 807 00:40:41,870 --> 00:40:44,000 in today's money. 808 00:40:44,000 --> 00:40:47,040 That's an enormous, enormous scam. 809 00:40:47,140 --> 00:40:49,710 And had it not been 810 00:40:49,740 --> 00:40:52,580 for one suspicious Boston banker, 811 00:40:52,680 --> 00:40:55,050 her scheme might have raked in even more money. 812 00:40:57,050 --> 00:40:59,480 At the trial that ensues, 813 00:40:59,550 --> 00:41:02,390 Andrew Carnegie notes the most ironic piece 814 00:41:02,390 --> 00:41:04,460 of the entire con. 815 00:41:04,590 --> 00:41:06,190 He said, "The whole scandal could have been avoided 816 00:41:06,330 --> 00:41:08,460 if somebody had bothered to ask me." 817 00:41:11,970 --> 00:41:13,530 Cassie Chadwick is found guilty 818 00:41:13,600 --> 00:41:15,730 of conspiracy to defraud a national bank 819 00:41:15,740 --> 00:41:18,200 and is sentenced to ten years in prison. 820 00:41:18,340 --> 00:41:21,010 But in 1907, 821 00:41:21,040 --> 00:41:22,810 just two years after her trial, 822 00:41:22,840 --> 00:41:25,140 she dies at the age of 50. 823 00:41:27,850 --> 00:41:31,120 And today this forged promissory note 824 00:41:31,120 --> 00:41:33,480 sits in the Oberlin College archives 825 00:41:33,620 --> 00:41:35,850 as a reminder of a cunning woman, 826 00:41:35,990 --> 00:41:37,690 a wealthy tycoon, 827 00:41:37,760 --> 00:41:42,190 and one of the 20th century's most infamous financial scams. 828 00:41:45,630 --> 00:41:48,930 From a slot machine hacker, to the world's greatest con man, 829 00:41:48,970 --> 00:41:51,140 a socialite swindler 830 00:41:51,240 --> 00:41:54,110 to the original Ponzi scheme... 831 00:41:54,240 --> 00:41:58,210 I'm Don Wildman, and these are the Mysteries at the Museum.