By early 1997, Pellicano was apparently ready to use Telesleuth in earnest. To arrange the wiretaps, according to the indictment, he bribed two Pacific Bell workers—one was indicted in February. A former Pellicano employee explains that additional telephone wiring was clipped inside the box at the phone company. (It was never necessary to break into a location.) When a call came in, Telesleuth automatically recorded it and relayed it to a Macintosh computer in Pellicano's Sunset Boulevard offices. His indictment suggests that Telesleuth's first use was against a Los Angeles real-estate developer, Robert Maguire. Beginning around September 1997, Pellicano allegedly used the program to wiretap Mark Hughes, the late founder of Herbalife, who was then engaged in a nasty divorce.
According to former employees, the wiretapping operation became the secret heart of Pellicano's business—the one unique service he could market to clients. According to Pellicano's former executive vice president, Tarita Virtue, who described the wiretapping setup in a series of interviews with Vanity Fair, the single Macintosh soon became five, lined up in a small locked office Pellicano called "the War Room." Only Pellicano, Virtue, and Kachikian had access to the room, whose only other furniture was a row of filing cabinets. Pellicano and Virtue alone had codes to use the Macs. The operation had one drawback: the Macs could receive wiretap recordings only from their own, 310 area code. To tap phones in the 323, 213, 626, and 818 area codes, Virtue says, Pellicano had to rent an apartment in each where he could stash a Macintosh and a detachable hard drive. When one of these computers was used, Pellicano would switch out the hard drive every few days, bring it to his office, and download the recordings.
The recordings were typically crystal clear. The problem became the sheer volume of them—thousands and thousands of telephone conversations, everything from a target's confidential discussions with his attorney to chats with his orthodontist, according to Virtue. To home in on the most promising ones, Kachikian's software could graph a recording's volume; Pellicano could then go directly to a conversation in which his subject had raised his voice, often a sign that something emotional was being discussed. Virtue did most of the initial scanning. When a wiretap yielded something especially useful, she says, she forwarded it to Pellicano's computer with the data displayed in red lettering, signifying that it was urgent.
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