The Watergate scandal was a political scandal in the United States in the 1970s. Named for the Watergate office complex in Washington, D.C., effects of the scandal ultimately led to the resignation of Richard Nixon, President of the United States, on August 9, 1974. It also resulted in the indictment and conviction of several Nixon administration officials.
The scandal began with the arrest of five men for breaking and entering into the Democratic National Committee headquarters at the Watergate complex on June 17, 1972. The men were connected to the 1972 Committee to Re-elect the President by a slush fund and investigations conducted by the Senate Watergate Committee, House Judiciary Committee and the news media.
President Nixon's staff conspired to cover up the break-in. As evidence mounted against the president's staff, which included former staff members testifying against them in a Senate investigation, it was revealed that President Nixon had a tape recording system in his offices and that he had recorded many conversations. Recordings from these tapes implicated the president, revealing that he had attempted to cover up the break-in. After a series of court battles, the U.S. Supreme Court ruled that the president had to hand over the tapes; he ultimately complied.
Facing near-certain impeachment in the House of Representatives and a strong possibility of a conviction in the Senate, Nixon resigned the office of the presidency on August 9, 1974. His successor, Gerald Ford, would issue a pardon unto President Nixon.
Break-in
Main article: Watergate burglariesOn June 17, 1972, Frank Wills, a security guard at the Watergate Complex, noticed tape covering the latch on locks on several doors in the complex (leaving the doors unlocked). He took the tape off, and thought nothing of it. An hour later, he discovered that someone had retaped the locks. Willis called the police and five men were arrested inside the Democratic National Committee's (DNC) office. The five men were Virgilio González, Bernard Barker, James W. McCord, Jr., Eugenio Martínez, and Frank Sturgis. The five were charged with attempted burglary and attempted interception of telephone and other communications. On September 15, a grand jury indicted them and two other men (E. Howard Hunt, Jr. and G. Gordon Liddy) for conspiracy, burglary, and violation of federal wiretapping laws.
The men who broke into the office were tried and convicted on January 30 , 1973. After much investigation, all five men were directly or indirectly tied to the 1972 Committee to Re-elect the President (CRP, or sometimes pejoratively referred to as CREEP) and the trial judge, John J. Sirica, suspected a conspiracy involving higher-echelon government officials. In March 1973, James McCord wrote a letter to Sirica, claiming that he was under political pressure to plead guilty and he implicated high-ranking government officials, including former Attorney General John Mitchell. His letter helped to elevate the affair into a more prominent political scandal.
Investigation
See also: United States Senate Watergate CommitteeThe unraveling of the coverup began in the immediate aftermath of the arrests, the search of the burglars' hotel rooms, and a background investigation of the initial evidence, most prominently thousands of dollars in cash in their possession at the time of arrest. On June 19 , 1972 it was publicly revealed that one of the Watergate burglars was a GOP security aide. Former Attorney General John Mitchell, who at the time was the head of the Nixon re-election campaign, denied any involvement with the Watergate break-in or knowing the five burglars. On August 1 , a $25,000 cashiers check earmarked for the Nixon re-election campaign, was found in the bank account of one of the Watergate burglars. Further investigation would reveal accounts showing that still more thousands had passed through their bank and credit card accounts, supporting their travel, living expenses, and purchases, in the months leading up to their arrests. Examination of the burglars' accounts showed the link to the 1972 Committee to Re-Elect the President, through its subordinate finance committee.
Several individual donations (totaling $89,000) were made by individuals who thought they were making private donations to the President's re-election committee. The donations were made in the form of cashier's, certified, and personal checks, and all were made payable only to the Committee to Re-Elect the President. Investigative examination of the bank records of a Miami company run by Watergate burglar Bernard Barker revealed that an account controlled by him personally had deposited, and had transferred to it (through the Federal Reserve Check Clearing System) the funds from these financial instruments.
The banks that had originated the checks (especially the certified and cashier's checks) were keen to ensure that the depository institution used by Bernard Barker had acted properly to protect their (the correspondent banks') fiduciary interest in ensuring that the checks had been properly received and endorsed by the check’s payee, prior to its acceptance for deposit in Bernard Barker's account. Only in this way would the correspondent banks, which had issued the checks on behalf of the individual donors, not be held liable for the un-authorized and improper release of funds from their customer’s accounts into the account of Bernard Barker.
The investigative finding, which cleared Bernard Barker’s bank of fiduciary malfeasance, led to the direct implication of members of the Committee to Re-Elect the President, to whom the checks had been delivered. Those individuals were the Committee Bookkeeper and its Treasurer, Hugh Sloan.
The Committee, as an organization, followed normal business accounting standards in allowing only duly authorized individual(s) to accept and endorse on behalf of the Committee any financial instrument created on the Committee’s behalf by itself, or by others. Therefore, no financial institution would accept or process a check on behalf of the Committee unless it had been endorsed and verified as endorsed by a duly authorized individual(s). On the checks themselves deposited into Bernard Barker’s bank account was the endorsement of Committee Treasurer Hugh Sloan who was duly authorized and designated to endorse such instruments that were prepared (by others) on behalf of the Committee.
But once Sloan had endorsed a check made payable to the Committee, he had a legal and fiduciary responsibility to see that the check was deposited into the account(s) which were named on the check, and for which he had been delegated fiduciary responsibility. Sloan failed to do that. He was confronted and faced the potential charge of federal bank fraud; he revealed that he had given the checks to G. Gordon Liddy and was directed by Committee Deputy Director Jeb Magruder and Finance Director Maurice Stans to do so.
On September 29, 1972 it was revealed that John Mitchell, while serving as Attorney General, controlled a secret Republican fund used to finance intelligence-gathering against the Democrats. On October 10, the FBI reported that the Watergate break-in was part of a massive campaign of political spying and sabotage on behalf of the officials and heads of the Nixon re-election campaign. Yet on November 7 , Nixon was re-elected president in one of the biggest landslide re-election campaigns ever in American political history.
Barker had been given the checks by Liddy in an attempt to avoid direct proof that Barker ever had received funds from the organization. Barker had attempted to disguise the origin of the funds by depositing the donor’s checks into bank accounts which (though controlled by him), were located in banks outside of the United States. What Barker, Liddy, and Sloan did not know was that the complete record of all such transactions are held, after the funds cleared, for roughly six months. Barker’s use of foreign banks to deposit checks and withdraw the funds via cashier’s checks and money orders in April and May 1972 guaranteed that the banks would keep the entire transaction record at least until October and November 1972.
The connection between the break-in and the re-election campaign committee was highlighted by media coverage. In particular, investigative coverage by Time , The New York Times , and especially The Washington Post , fueled focus on the event. The coverage dramatically increased publicity and consequent political repercussions. Relying heavily upon anonymous sources, Post reporters Bob Woodward and Carl Bernstein uncovered information suggesting that knowledge of the break-in, and attempts to cover it up, led deep into the Justice Department, the FBI, the CIA, and even the White House. Chief among the Post's anonymous sources was an individual they had nicknamed Deep Throat (who was later revealed in 2005 to be former Deputy Director of the FBI William Mark Felt, Sr.) It was Deep Throat who met secretly with Woodward, and told him of Howard Hunt’s involvement with the Watergate break-in, and that the rest of the White House staff regarded the stake in Watergate extremely high. Deep Throat also warned Woodward that the FBI wanted to know where he and the other reporters were getting the information which was uncovering even a wider web of crimes than first disclosed. In one of their last meetings, all of which took place at an under
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