Entry
Reader's guide
Entries A-Z
Subject index
Teapot Dome Scandal
WARREN G. HARDING (1865–1923), who is considered by most political scientists and historians to have been one of the worst presidents in the history of the United States, was blamed for the Teapot Dome Scandal, which erupted during the rampant corruption and gaiety of the so-called Roaring Twenties. Although the president was not personally involved in the criminal activities that wrecked his administration, Harding's fierce loyalty to his political cronies and his reluctance to believe in their dishonesty led to his being discredited along with them.
On becoming president, Harding brought what became known as the “Ohio Gang” with him to Washington, D.C. He may have never realized the extent of the corruption practiced by these opportunists who saw the capital as a city ripe for exploitation. While Harding's friends saddled him with a number of scandals, the most serious was Teapot Dome, which came to define the Harding presidency. The scandal involved Harding's cabinet, presidential appointees, the oil industry, and even a few innocent bystanders.
The groundwork for the scandal had been laid during the preceding decades with an increased emphasis on conservation during the presidency of Theodore Roosevelt and with increased demands for oil during the presidency of William Howard Taft. In 1912, the U.S. Navy began converting its ships from coal to diesel fuel; and in anticipation of the need for increased fuel, Taft decided that government-owned oil reserves or “domes” at Elk Hills and Buena Vista in California should be held in reserve for future naval needs. President Woodrow Wilson further expanded naval oil reserves in 1914 with the addition of a location in Wyoming that came to be known as Teapot Dome because it roughly resembled the shape of a teapot.
Albert Fall
As a well-known lawyer and wheeler-dealer, Albert Fall was a name to be reckoned with in New Mexico; he became one of its first senators when the territory achieved statehood in 1912. In 1921, Fall left the Senate to serve as Harding's secretary of interior. Before accepting the position, Fall had suffered a series of financial setbacks. A number of risky investments had left him with a mortgage he couldn't pay and a ranch in need of serious repairs.
Whether he was innately dishonest, or whether he simply grasped the opportunity to solve his financial problems, Fall decided to use his position for personal profit. His first move was to convince Harding that private oil companies were inadvertently draining the government's oil resources. Harding was already under some obligation to the big oil companies because they had been instrumental in his election. According to Fall, the government's response to the drainage should be to allow the oil companies to lease the reserves instead of obtaining oil at the government's expense.
After only three months in office and with the full support of Edwin M. Denby, the secretary of the navy, Harding issued an executive order placing the oil reserves at Teapot Dome in Wyoming and Elk Hills in California under the Department of Interior, with Fall in charge. Congress agreed to the president's request to lease the naval reserves, and Fall made sure that neither the president nor Congress was aware of the details of the deals.
...
- Business Fraud & Crimes
- Advertising Fraud
- Antitrust
- Arbitrage
- Bank Fraud
- Bankruptcy Fraud
- Bid Rigging
- Boycott
- Campaign Finance
- Canadian Mining Scandals
- Charity Fraud
- Cigarette Advertising
- Computer Hacking
- Copyright Infringement
- Corporate Criminal Liability
- Corporate Dumping
- Corporate Raiding
- Direct-Mail Fraud
- Economic Espionage
- Free Enterprise System
- Greenmail
- Hoarding
- Illegal Competition
- Industrial Espionage
- Insurance Fraud
- Interlocking Directorates
- Internet Fraud
- Kickbacks
- Labor Crimes
- Mail Fraud
- Market Manipulation
- Marketing Fraud
- Outside Directors
- Patent Infringement
- Predatory Practices
- Price Discrimination
- Price Fixing
- Puffery
- Redlining
- Revolving Door
- Small-Business Fraud
- Tariff Crimes
- Tax Evasion
- Trademark Infringement
- Tying Arrangements
- Unfair Trade Practices
- Unions
- Wire Fraud
- Companies
- A. H. Robins
- AAMCO
- Adelphia Communications
- Allied Chemical
- Allied Irish Banks
- American Cyanamid
- American Hospital Supply
- American Motors
- Anheuser-Busch
- Archer Daniels Midland
- Arthur Andersen
- AT&T
- B. F. Goodrich
- Banco Ambrosiano
- Bank of Credit and Commerce International
- Banker's Trust
- Barings Bank
- BASF
- Beech Aircraft
- Beech-Nut Nutrition
- Board of Directors
- Bre-X
- Canadian Mining Scandals
- Carl Karcher Enterprises
- Cendant
- Centennial Savings and Loan
- Chem-Bio
- Chevron
- Conoco
- Crédit Lyonnais
- Daiwa Bank
- Dow Chemical
- Drexel Burnham Lambert
- E. F. Hutton
- Eli Lilly
- Enron Corporation
- Film Recovery Systems
- Firestone Tires
- Fisher-Price
- G. D. Searle
- General Dynamics
- General Electric
- General Motors
- Georgia Pacific
- Global Crossing
- Great Electrical Equipment Conspiracy
- Gulf Oil Corporation
- IBM
- Imperial Food Products
- Investors Overseas Services
- ITT
- Johns-Manville
- Kerr-McGee
- Kidder, Peabody
- Lloyds of London
- Lockheed
- Madison Guaranty
- Merrill Lynch
- Metallgesellschaft
- Microsoft
- Morgan Grenfell
- Morton-Thiocol
- National Medical Enterprises
- NatWest Markets
- Northrop Grumman
- Owens Corning
- Pharmaceutical Industry
- Procter and Gamble, Inc.
- Revco
- Rite Aid
- Rockwell International
- Salomon Smith Barney
- Standard Oil
- Sumitomo
- Teledyne Industries
- Tyco International
- Unisys
- United American Bank
- United Fruit
- United States Steel
- Waste Management, Inc.
- WorldCom
- Consumers
- Advance Fee Scam
- Age Discrimination
- Automobile
- Bait and Switch
- Bank Fraud
- Beech-Nut Nutrition
- Bendectin
- Better Business Bureaus
- Breast Implants
- Caveat Emptor
- Charity Fraud
- Cigarette Advertising
- Consumer Deaths
- Contractor Fraud
- Credit Card Fraud
- Cyberstalking
- Dalkon Shield
- Direct-Mail Fraud
- Fertility Fraud
- Fisher-Price
- Gambling and Lotteries
- Identity Theft
- Impersonation
- Infant Formula
- Public Citizen Health Research Group
- Tampons and Toxic Shock
- Telemarketing Fraud
- Tobacco Industry
- Countries & Regions
- Africa
- Arab Nations
- Argentina
- Asia
- Australia
- Brazil
- Canada
- Canadian Mining Scandals
- Caribbean Islands
- Central America
- China
- Cuba
- Eastern Europe
- France
- Germany
- Greece
- Hong Kong
- Indonesia
- Ireland
- Israel
- Italy
- Japan
- Luxembourg
- Mexico
- Middle East
- Poland
- Russia
- Saudi Arabia
- Scandinavia
- Singapore
- South America
- South America
- Spain
- Switzerland
- Thailand
- United Kingdom
- United States
- Criminology & Justice
- Age Discrimination
- Ancient Mercantile Crime
- Art Fraud
- Board of Directors
- Bribery
- Capitalism
- Caveat Emptor
- Civil Forfeiture
- Class-Action Lawsuits
- Conflict Theory
- Consequences of White-Collar Crime
- Conspiracy
- Corporate Criminal Liability
- Corruption
- Crime Seriousness
- Critical Theory
- Differential Association
- Drug Trafficking
- Elite Crime
- Ethics
- Fear of Crime
- Felony
- Forensic Auditing
- Forgery
- Gender Discrimination
- Global Warming
- Globalization
- Hartung-Burgess Debate
- Human Trafficking
- Investigation Techniques
- Juries and Awards
- Justice, Department of
- Knapp Commission
- Legal Malpractice
- Military-Industrial Complex
- Misappropriation Theory
- Mollen Commission
- Money Laundering
- Multinational Corporations
- National White-Collar Crime Center
- Negligence
- Oligopoly
- Organized Crime
- Perjury
- Police Brutality
- Police Corruption
- Political Assassinations
- Pornography
- Prosecution
- Prostitution
- Public Corruption
- Racial Discrimination
- Racketeering
- Religious Fraud
- Respondeat Superior
- Risk Analysis
- Self-Control Theory
- Sutherland-Tappan Debate
- Techniques of Neutralization
- Financial & Securities Fraud
- Accounting Fraud
- Arbitrage
- Bad Checks
- Banco Ambrosiano
- Bank Fraud
- Bank of Credit and Commerce International
- Banker's Trust
- Bankruptcy Fraud
- Barings Bank
- Bendix Corporation
- Boesky, Ivan
- Bond Fraud
- Centennial Savings and Loan
- Check Kiting
- Commodity Fraud
- Counterfeiting
- Credit Card Fraud
- Currency Fraud
- Debt Restructuring Fraud
- Drexel Burnham Lambert
- Embezzlement
- Equity Funding Scandal
- Extortion
- Fiduciary Fraud
- Flaming Ferraris
- Insider Trading
- Investment Trust Fraud
- Nonprofit Organization Fraud
- Offshore Bank Accounts
- Offshore Entities
- Savings & Loan Fraud
- Securities Fraud
- Stock Fraud
- Teamsters Pension Fund
- Vatican Bank
- Government
- Bid Rigging
- Bribery
- Commodities Futures Trading Commission
- Corruption
- Defense Industry Fraud
- Environmental Protection Agency
- Federal Deposit Insurance Corporation
- Federal Trade Commission
- Food and Drug Administration
- Government Contract Fraud
- Government Procurement Fraud
- Graft
- HUD Scandals
- Iran-Contra
- Prisoners
- Securities and Exchange Commission
- Sentencing Guidelines.
- Tailhook Scandal
- Teapot Dome Scandal
- Laws
- Antitrust
- Bank Secrecy Act
- Boland Amendments
- Campaign Finance
- Celler-Kefauver Act
- Clayton Antitrust Act
- Clean Air Act
- Clean Water Act
- Comprehensive Thrift Act
- Computer Fraud and Abuse Act
- Consumer Product Safety Act
- Ethics Reform Act
- Fair Housing Act
- False Claims Act
- Federal Trade Commission Act
- Financial Crime Kingpin Statute
- Foreign Corrupt Practices Act
- Hart-Scott-Rodino Act
- Hobbs Act
- Insider Trading Sanctions Act
- Interstate Commerce Act
- Major Fraud Act
- Meat Inspection Act
- Occupational Carcinogens
- Occupational Safety and Health Act
- Pure Food, Drug and Cosmetics Act
- Racketeer Influenced Corrupt Organizations (RICO)
- Robinson-Patman Act
- Sherman Antitrust Act
- Toxic Substances Control Act
- Truth in Labeling
- Truth in Lending Act
- Witness and Victim Protection Act
- Medical & Healthcare Fraud
- People
- Agnew, Spiro
- Anderson, Jack
- Bakker, Jim and Tammy
- Benson, Michael L.
- Boesky, Ivan
- Braithwaite, John
- Bush, George H. W.
- Bush, George W.
- Butcher Brothers
- Capone, Alphonse
- Carnegie, Andrew
- Carson, Rachel
- Carter, Jimmy
- Clinard, Marshall
- Clinton, William J.
- Coffee, John C., Jr.
- Cohen, Albert K.
- Coleman, James W.
- Coolidge, Calvin
- Cressey, Donald
- Cullen, Francis T.
- Domhoff, G. William
- Edelhertz, Herbert
- Eisenhower, Dwight D.
- Fisse, Brent
- Ford, Gerald R.
- Frankel, Martin
- Geis, Gilbert
- Giuliani, Rudy
- Grant, Ulysses S.
- Green, Mark J.
- Holley, Louis Malcolm
- Hoover, Herbert
- Irving, Clifford
- Jesilow, Paul
- Jett, Joseph
- Johnson, Lyndon B.
- Keating Five
- Keating, Charles
- Kennedy, Robert F.
- Leeson, Nick
- Levi, Michael
- Levine, Dennis
- Madison, James
- Maxwell, Robert
- Milken, Michael
- Morgan, J. P.
- Nader, Ralph
- Nixon, Richard M.
- North, Oliver
- Pontell, Henry
- Reagan, Ronald
- Rich, Marc
- Roberts, Oral
- Rockefeller, John D.
- Roosevelt, Franklin D.
- Roosevelt, Theodore
- Ross, Edward
- Rusnak, John
- Short, James F. Jr.
- Shover, Neal
- Silkwood, Karen
- Simpson, Sally
- Sinclair, Upton
- Spitzer, Elliot
- Stanford, Leland, Sr.
- Stavisky, Serge
- Steffens, Lincoln
- Stewart, Martha
- Sutherland, Edwin H.
- Truman, Harry S.
- Vaughan, Diane
- Weisburd, David
- Wheeler, Stanton
- Whistleblowers
- Political Scandals
- Pollution
- Products
- Regulation
- Scams & Swindles
- Advance Fee Scam
- Art Fraud
- Bad Checks
- Bait and Switch
- Better Business Bureaus
- Bid Rigging
- Bond Fraud
- Charity Fraud
- Computer Hacking
- Consumer Product Safety Commission Act
- Contractor Fraud
- Counterfeiting
- Currency Fraud
- Daisy Chains
- Direct-Mail Fraud
- Grifters
- Home-Stake Swindle
- Nigerian 419
- Ponzi Schemes
- Real Estate Investments
- Scams
- Securities Fraud
- Stock Churning
- Sweepstakes Fraud
- War-Profiteering
- Work-Related Crimes
- Loading...
Get a 30 day FREE TRIAL
-
Watch videos from a variety of sources bringing classroom topics to life
-
Read modern, diverse business cases
-
Explore hundreds of books and reference titles
Sage Recommends
We found other relevant content for you on other Sage platforms.
Have you created a personal profile? Login or create a profile so that you can save clips, playlists and searches