The story is told by Peter Aaron about the victim, Benjamin Sachs, his best friend whom he first meets as a fellow writer in a
Greenwich Village bar in 1975. Peter decides to try to piece together the story of Ben's other life after agents from the F.B.I. approach him in the course of their investigation. Of their friendship, Peter acknowledges Ben's lost years of suffering and painful inner state, saying — In 15 years, Sachs travelled from one end of himself to the other, and by the time he came to that last place, I doubt he even knew who he was anymore. So much distance had been covered by then, it wouldn't have been possible for him to remember where he had begun. The two first meet as struggling novelists, Peter with the “wheeling” mind and the provocative Ben with his perfect marriage to the beautiful Fanny, a former classmate of Peter's whom he still harbours unrequited feelings for. Both have a wish to “say something”, to make a difference in the real world. Although Ben's literary talent and charismatic personality earns the admiration of Peter, privately, Ben himself is full of doubts and his marriage is showing cracks. Over time, a complicated love triangle develops between Peter, Ben and Fanny, whilst Peter also becomes sexually involved with Maria Turner, an experimental photographer who follows strangers and constructs detailed stories about their lives. At a party to celebrate the 100th anniversary of the Statue of Liberty, by freakish chance, Ben tumbles from a fourth-floor fire escape, nearly losing his life. The fall is both actual and metaphorical. For days afterward he refuses to speak and on recovery he is strangely remote. Within a week of turning 41, Ben expresses a desire to end the life he has lived until then. Feeling that his life has been a waste, he declares he wants everything to change, and serving himself with an all-or-nothing ultimatum, decides he must take control or fail. In evincing this change, he leaves Fanny, moves to a cabin in
Vermont where he begins to work on a book – then vanishes. His cabin and its contents are deserted, including his manuscript, titled
Leviathan. There is no further contact with Fanny and one final meeting with Peter where he confesses all. Ben reveals that he was forced to kill a stranger in self defence during a random violent encounter on a remote road near his cabin. Upon discovering $165,000 in cash and a passport with the name Reed Dimaggio, he learns that the victim was the former husband of Maria's childhood friend, Lillian Stern. Wracked with guilt, Ben decides to travel to her home in
Berkeley, California to give Lillian the money. Ben and Lillian eventually develop a romantic relationship, which ends in misery. Leaving $35,000 for Lillian, Ben uses the rest of the money to build a series of bombs targeting small-scale replicas of the Statue of Liberty across the nation, becoming a cult hero with the anonymous moniker "Phantom of Liberty". Months after this final encounter, Peter reads about an accidental car bombing in Wisconsin, bringing the narrative back to the beginning. The novel ends with FBI investigators confirming Ben's identity as
the Phantom of Liberty by matching fingerprints against a signed copy of one of Peter's books. Peter then ends his narration by handing the investigators "the pages of this book". ==Major themes==