Wednesday, April 9, 2008

Bobby Baker scandal

Bobby Baker was an aid to Senator Lyndon Johnson, who was involve in server scandalous activities with prominent mob bosses. Baker started out as a page for Johnson when he was only fourteen year old. Baker was so loyal to Johnson that when he became a vice president for John F. Kennedy Baker was his secretary. In 1962 Baker got with mobster Giancana and Meyer Lansky in helping the Intercontinental Hotels Group in build a casinos in the Dominican Republic, which would later serve as the new "Cuba" for the Mob. Baker continued to do business with the mob in the Dominican Republic, believing that the Dominican Republic could be the next Mafia in replacement for Cuba. Baker later get involve in the Quorum Club, which was secretly own by Johnson. He later would establish the Serve-U-Corporation with his friend, Fred Black, and mobsters Ed Levenson and Benny Sigelbaum. The company was to provide vending machines for companies that were working on federally granted programs. A company that was secretly own by Sam Giancana manufactured the machines and other mobsters based in Chicago.

Even though Bobby Baker official income came from this aid from Lyndon B. Johnson, he was a wealth man. Then rumors began to spread that he was involve in corrupt activities. Attorney General Robert F. Kennedy stated to investigate baker, he discovered Baker's links to several Mafia bosses. Robert Kennedy also found evidence that Johnson was also involved in political corruption, including the awarding of a $7 billion contract for a fighter plane to Texas-based General Dynamics. Throughout the investigation Robert Kennedy also found that Baker was, involve in procuring women for President John F. Kennedy. In 1967, Bobby Baker was found guilty of 7 counts of theft, fraud and income tax evasion, also he resign as Secretary to the Senate on October 7, 1963.

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Tuesday, April 8, 2008

Teapot Dome scandal pt 2

Teapor Dome scandal was reveal to the public in 1924 when the Wall Street Journal reported a secret arrangement in which Fall had leased the petroleum reserves to a private oil company without competitive bidding. Fall denies this claim, the money Fall he receives was illegal—not the lease itself.

Thomas J. Walsh led the investigation to seek answer to many questions. For two years, Walsh was unable to find any answers and not evidence that show that was Fall was receiving money from the oils company. By 1924, the Committee had found all they needed to find but there was still one unanswered question: How did Fall become so rich so quickly? Walash later found one piece of evidence that fall forgot to cover up. Doheny's loan to Fall in November 1921, for $100,000. Over the next few months, dozens of witnesses testified before the committee. On January 24, 1924, Edward Doheny admitted that he had lent Fall $100,000. Fall was found guilty of bribery in 1929, fined $100,000 and was sentenced to one year in prison. Harry Sinclair, was charged with contempt, fined $100,000, and received a short sentence for tampering with a jury. Edward Doheny was acquitted in 1930 of attempting to bribe Fall.


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Teapot Dome scandal

The origin of the Teapot Dome scandal data back when presidents Teddy Roosevelt, William Taft and Woodrow Wilson, create a naval petroleum reserves in Wyoming and California. The three naval oil fields was the Elk Hills and Buena Vista Hills in California and Teapot Dome in Wyoming, were tracts of public land that were reserved by previous presidents to be emergency underground supplies that was to be used by the navy only when the oil supplies was diminished. Many politicians and private oil company interests was to opposed the restrictions placed on the oil fields, they claimed that the reserves were unnecessary and that the American oil companies could provide for the U.S. Navy.

One of the politicians who opposed the conservation was Senator Albert B. Fall,a member of the Ohio Gang, who later became Secretary of the Interior in 1921. The Ohio Gang was a group made up of politicians and industry leaders who believe that the government control business and that we shouldn't deal in the affairs of Europe. Fall using his power as the Secretary of the Interior convinced the Secretary of the Navy Edwin Denby to turn over the control of the oil fields over to him. Fall then leases the Teapot Dome to Harry Sinclair's Mammoth Oil Company and he reserve Elk Hills to Edward Doheny's Pan American Petroleum Company. In return for leasing the oil Fields, Sincair and Doheny gave Fall a total about $400,000

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Monday, April 7, 2008

Whiskey Ring Scandal

The Whiskey Ring was a scandal that was expose in 1875 through the efforts of Secretary of the Treasury Benjamin H. Bristow. In prior to 1875 statistics shows that United State,in St. Louis, Mo., alone, had lost about $1,200,000 of tax revenue which it should have received from whiskey, Bristow use secret agents from outside the Treasury department to conduct a series of raids across the country on May 10, 1875. The Whiskey Ring Scandal began in St. Louis, but later it was also that found there were other branches in Chicago, Milwaukee, Cincinnati, New Orleans, and Peoria. It occurred to some politicians to have the revenue officers raise a campaign to fund among the distillers. The officers later modified this idea, raising money for themselves, and giving money to people that about the scandal to keep hush. Huge corruption funds was distributed among gages, storekeepers, and tax collectors, according to a fixed schedule of prices. Because of the investigation by Secretary Bristow, arrests were made in nearly every city that were involved in the scandal. Indictments were found against 152 liquor men and other private parties, and against 86 government officials, notably the chief clerk in the Treasury Department, and President Ulysses S. Grant's private secretary, Gen. Orville E. Babcock. Babcock however escaped conviction only because of a presidential pardon

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Source index 2 New York time January 16, 1921,

Tuesday, April 1, 2008

Credit Mobilier of America scandal

A construction company call Credit Mobilier was own by Union Pacific stockholders who was give them a huge contract to build 1,074 km train track. They were a given a huge contract because the construction company was funneling money from Union Pacific. The Union Pacific was a company that owns the majority of the stock at the time. The company also gave cheap shares of stock to members of Congress who agreed to support additional funding. With the money the Union Pacific was getting from the government funds, and subsidies, they union pacific were making a lot of money.

In 1867 a congressional representative name Oakes Ames were allowed members of Congress to purchase shares at face rather than market value, those are the same people who voted the government funds to cover the inflated charges of Credit Mobilier. When the police were investing this case they found that the company had given stocks to over thirty representatives of both parties. Some of the members of congress that were involve in this scandal included Schuyler Colfax, James W. Patterson ,Henry Wilson and James A. Garfield. When Garfield was running for president he decline these charges and went on becoming the twentieth president of the United Stated.

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