Scandolous Nixon Essay

Submitted By nikkachowhey
Words: 665
Pages: 3

On June 19, 1972, it was publicly revealed that one of the Watergate burglars was a Republican Party security aide.[11] Former Attorney General John Mitchell, who at the time was the head of the Nixon re-election campaign (CRP), denied any involvement with the Watergate break-in or knowledge of the five burglars. On August 1, a $25,000 cashier's check earmarked for the Nixon re-election campaign was found in the bank account of one of the Watergate burglars. Further investigation by the FBI would reveal still more thousands had supported their travel and expenses in the months leading up to their arrests. Examination showed links to the finance committee of CRP.

Several donations (totaling $86,000) were made by individuals who thought they were making private donations by certified and cashier's checks for the President's re-election. Investigators' examination of the bank records of a Miami company run by Watergate burglar Barker revealed an account controlled by him personally had deposited a check and then transferred it (through the Federal Reserve Check Clearing System).

The banks that had originated the checks were keen to ensure the depository institution used by Barker had acted properly in ensuring the checks had been received and endorsed by the check’s payee, before its acceptance for deposit in Bernard Barker's account. Only in this way would the issuing banks not be held liable for the unauthorized and improper release of funds from their customer’s accounts.

The investigation by the FBI, which cleared Barker’s bank of fiduciary malfeasance, led to the direct implication of members of the CRP, to whom the checks had been delivered. Those individuals were the Committee bookkeeper and its treasurer, Hugh Sloan.

The Committee, as a private organization, followed normal business practice in allowing only duly-authorized individual(s) to accept and endorse on behalf of the Committee. Therefore, no financial institution could accept or process a check on behalf of the Committee unless it had been endorsed and by a duly-authorized individual. On the checks deposited into Barker’s bank account was the endorsement of Committee treasurer Hugh Sloan, who was authorized by the Finance 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 accounts which were named on the check and only the accounts so named. Sloan failed to do that. When he was confronted with the potential charge of federal bank fraud, he revealed he had been directed by…