- Without further ado, our governor, Rod Blagojevich.

(crowd cheers) - [Narrator] 10 months later, amidst swirling rumors of corruption, Blagojevich was reelected for a second term.

Agents were circling and cracks in the governor's inner circle were beginning to appear.

Over the next few years, the feds rolled out indictments on 16 individuals, including Blagojevich's right hand men, Tony Rezko and Chris Kelly.

In a blow to the feds, both men refused to cooperate.

Kelly ultimately made a tragic choice, taking his own life in a drug overdose.

- We're at a point where it really seems like we're getting closer and closer to the governor and the governor, again, up and down, denying any involvement.

"Yes, these were people that worked with me, but I had nothing to do with it."

- [Narrator] Investigators needed someone with inside information on Blagojevich who they could break.

That someone was John Wyma, the governor's former chief of staff and one of his closest allies.

- The key to Rod's conviction was a guy by the name of John Wyma, who had been a very close friend.

They were jogging partners.

Well, Wyma was part of the whole operation.

- [Narrator] In October 2008, the FBI built a case and charged Wyma with corruption.

- And when the Fed squeezed him, he got himself a really good attorney, a former US attorney, and they worked out an immunity deal and Wyma spilled the beans on what was going on.

- [Narrator] Facing jail time, Wyma decided to save his own skin and flip on his friend.

According to Wyma, Blagojevich told him to pressure the CEO of Children's Memorial Hospital for a $50,000 contribution in exchange for signing an $8 million bill that would benefit the hospital.

And he told the FBI about another extortion attempt scheduled to take place at the Blagojevich campaign office in a few days.

That Intel triggered a federal search warrant.

With just hours to spare, the FBI's Quantico tech team slipped in at midnight to bug the office.

- We had to get in, we had to stall the microphones, we had to reestablish the alarms.

I had to reestablish the cameras and we had to get out without being detected.

And by four o'clock in the morning, it was successfully installed as I like to say, with bailing wire, twine and duct tape because it was such a rush job.

- [Narrator] At 10:00 AM the meeting got underway.

Unbeknownst to its participants, the bugs picked up their every word.

- Somebody got brought in, they were shaken down for a contribution.

So this is a golden opportunity.

- [Narrator] Now, investigators had enough to branch out their operation, secretly wiretapping eight phone lines, including Blagojevich's home and cell and those of his closest confidants.

- Hey Lon.

- How are ya?

- [Rod] Good.

Just got back from a haircut.

- [Lon] Wow, you sound like you just got back from a run.

- [Narrator] Starting on October 29th, 2008, for 40 days, FBI agents listened in on a total of 5,000 calls.

- Hey, beautiful wife.

- Hey.

- How's my beautiful wife?

- I'm doing fine.

- [Narrator] What they heard as they sifted through the personal chatter was a governor laser focused on stockpiling cash.

- He's trying to raise money.

He's desperate to raise money because in politics, money is power and he's losing that.

He's starting to have more and more difficult time raising money.

- [Narrator] In less than three months, a new state ethics law was set to take effect that would limit his ability to solicit donations from anyone with a large state contract.

The bread and butter of his fundraising operation.

- [Lon] I'm telling you, he's gonna be good for it.

I got in his face.

- Okay, good.

- [Narrator] Investigators also began to pick up increasingly outrageous profanity laced rants.

- [Patti] What kind of (bleep) is that?

- You guys are telling me- - (bleep) that!

- [Rod] It's no good!

I just gotta suck it up?

- [Patti] (bleep) that!

- [Rod] This mother (bleep).

- [Narrator] Right after the Chicago Tribune reported, the governor's approval rating had plummeted.

- [Rod] I gave your grandmother a free (bleep) and a bus.

And what do I get for that?

Only 13% of you all out there think I'm doing a good job.

So (bleep) all of you.

- [Narrator] Investigators continue to collect evidence of suspected corruption, but there was something even bigger on the horizon.

- And CNN can now project that Barack Obama, 47 years old, will become the President-Elect of the United States.

- [Narrator] Barack Obama, another promising young Illinoisian with an unusual name had made it to the pinnacle of American political power, just as Rod Blagojevich was beginning his hard descent.

- And Rod Blagojevich had thought, "That was supposed to be me."

And so he's watching Barack Obama rise and rise and rise, and he's getting increasingly desperate.

- [Narrator] For Blagojevich, there was one upside, the power to select a replacement for Obama's vacant senate seat.

And Blagojevich saw it as the answer to all his problems.

- The governor make the appointment of a replacement to the Senate, does not require legislative approval.

It is a tremendous amount of power, and Rod viewed that as a tremendous opportunity to make money and exert influence.

- Rod was approached by a representative of Barack Obama who made it clear that he would like his successor to be Valerie Jarrett.

He discussed with his aides, "Well, can I make a deal with him?

I'd like to be in his cabinet.

I'd like to be Health and Human Services Secretary, and how can I make that deal?

Is that lawful?"

- [Narrator] Blagojevich's defense attorney says that his client was only considering his options.

For days as the Feds listened in, the governor tossed around possible positions he could gain from Obama if he appointed Jarrett, from private sector roles to foreign ambassadorships.

- [Rod] How about India?

India's vital.

- [John] Yeah.

India is vital.

I'd say India.

- [Rod] Is that realistic or would he reject that?

- No, that's realistic.

- Is it?

- I think so.

- No (bleep).

Germany, England, France, Canada.

U.N Ambassador.

I'd take that.

You Russian mother (bleep).

Can you see me?

(John laughing) - [Narrator] But when the governor learned that President-Elect Obama was not interested in giving him anything in exchange for Jarrett's appointment, Blagojevich was not happy.

- [Rod] You guys are telling me, I just gotta suck it up for two years and do nothing.

Give this mother (bleep) his senator.

(bleep) him!

For nothing?

(bleep) him!

- [Narrator] Blagojevich had dozens of conversations about the Senate seat.

- [Rod] I told my nephew, Alex, he just turned 26 today.

I said, "Alex, it's too bad you're not four years older 'cause I could have given you a US Senate seat for your birthday."

- [Narrator] From appointing Oprah Winfrey.

- [Rod] She's the king maker.

She made Obama.

- [Narrator] To appointing himself.

- [Rod] If I can't get the right deal, John, then I'll take it myself.

That's kind of where I'm at.

- [Narrator] When Blagojevich's advisors later counseled him against taking this seat, the governor became infuriated.

- [Rod] Look, I gotta tell you, I don't wanna be governor for the next two years.

I wanna get going, but it's like, just screwing my family.

And time is passing me by and I'm stuck.

It's no good.

The whole world's passing me by and I'm stuck in this (bleep) job as governor now.

Everybody's passing me by and I'm stuck.

- Who's passing you by?

- Everybody.

Everybody.

I mean, we're struggling financially.

And Amy, what?

- [Patti] And Amy's going to college in six years.

- [Rod] Amy's gonna college in six years and we can't afford it.

I can't afford college for my daughter.

- [Narrator] In the FBI's listening room, agents were capturing it all.

They were in disbelief when they heard Blagojevich utter the most infamous quote of all.

- [Rod] I've got this thing and it's (bleep) golden, and I'm just not giving it up for (bleep) nothing.

- [Narrator] When then FBI Director Robert Mueller was in town on another matter, Robert Grant played him the tape.

- I played him a section of the wiretap and it was this fricking thing as golden.

He's heard corruption recordings before, but his response was shaking his head.

Only in Chicago, only in Chicago.