In 2003, Pete Hudson was a cosmetics store representative who placed products for display. He accepted a bribe from Michael Baldwin to place the products from Newman Enterprises more prominently than others. Nicholas Newman found out about the bribe and turned Pete in to the authorities. Later, when Nick expressed hope that Pete could get immunity for testifying in the bribery case, Franklin doubted it and wondered who supplied the bribe money.
In January 2004, Michael Baldwin pulled Victor Newman aside and told him they were lucky that Christine Blair was there minimizing the damage. Victor glared at him telling him he had way more to lose than Michael and that he thought Christine may be bluffing. Michael corrected him saying he had a great deal to lose as well and that she very well may not be bluffing at all. At that point, Victor took the opportunity to tell Christine he thought she was in over her head—prosecuting friends, colleagues and lovers---and that she could still get out of it.
Getting annoyed, she got up and told the men she didn't have time to be insulted, that she knew everything and that Victor was in denial. Just before she could get out of the door, Victor told her to get her tape recorder and come back on in; he was going to give her a full confession. He waxed poetic on all of the things he had done to make Tuvia fail from bribing publishers to arranging late arrivals from the transportation industry. He admitted not only that Jabot Cosmetics probably lost in the hundred million dollar range but that he had people all over the country doing what Michael was doing.
After telling it all, Christine told him it was enough for a guilty plea. After she left, Michael told him he had put on quite a show. Victor asked if Michael had noticed her facial expressions; if in fact, she was bluffing. Michael suggested she heard new information and that he felt she would uphold her end of the deal. Victor commented that he had heard confession was good for the soul but that he didn't feel any relief whatsoever. After Christine left Michael's, she went home and thought about the confession.
The doorbell rang and she was surprised to see Franklin Becker at her door. Although she told him it wasn't a good time, he insisted on coming in. He explained the Feds were taking back the Victor Newman case and asked for all of her files. She reluctantly handed over the files, but did not give him the cassette of Victor's confession. He asked her if the files included everything and she told him yes. After he left, she called Victor and told him that he needed to get formal representation immediately and to go right down to the courthouse and plead guilty.
If he delayed, she said, she wouldn't be responsible for what happened. Christine received a call from Franklin demanding to know where she was at the moment. Becker disclosed he learned Victor was going to plead guilty and Chris reminded him he had no authority to stop the proceedings. John Silva stated that Victor entered a plea of guilty to both counts of the indictment. Chris informed the Judge that a recording was made of a question and answer session she held with Victor.
Becker burst into the courtroom announcing his office was expecting the grand jury to return an indictment charging Victor with mail fraud.