Saturday, September 13, 2025

Edwin Edwards: How Gambling Brought Down Louisiana's "Cajun King"

 

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Reporters covering the 1985 trial of Governor Edwin Edwards were treated to an unusual photo opportunity one day as Louisiana's chief executive arrived for the proceedings. Instead of pulling up in the governor's official car, Edwards had opted to ride a mule-drawn carriage to the courthouse. He joked to reporters that he "was looking for some mode of transportation that was indicative of the pace of the trial," which would plod on for 14 weeks.

The incident was just one of the many folksy ways Edwards endeared himself to Louisiana's citizens and annoyed those who sought to hold him to account for his widely suspected corruption. He had figured into numerous grand jury investigations, but 1985 trial on improperly awarding state contracts would be the first time he faced actual charges. Edwards responded with decided nonchalance, offering 2-1 gambling odds on his acquittal and suggesting that his health was good enough that he might just be able to endure the maximum potential prison sentence of over 250 years.

Edwards was a deft politician whose ability to present himself as a man of the people made him perhaps the most popular figure in Louisiana since Huey Long. Although his underlying flaws and corruption would begin to catch up to him later in his career, he still managed to stage an unprecedented comeback to the governor's mansion against an unlikely foe. It was only in his later years, with his political career behind him, that prosecutors were finally able to decisively pin charges against him.


From the church to the House

Edwin Washington Edwards was born on August 6, 1927, on a sharecroppers' farm in Avoyelles Parish, near the town of Marksville. His father was half-Cajun and his mother was a descendant of Louisiana's French settlers, a heritage which established Edwards' strong Creole identity at an early age.

Edwards was raised in the local Nazarene Church, which advocated for discipline, austerity, and assisting the poor, along with refraining from vices like drinking, smoking, and extramarital sex. This religious upbringing had a substantial impact on Edwards, as he would become strongly committed to supporting those in need and would frequently quote from the Bible during his political career. He was more skeptical of the church's dogmatic beliefs, and only partly influenced by its position on moral behavior; while he never partook in drinking or smoking, Edwards would later become known as a notorious gambler and womanizer.

Nevertheless, Edwards considered becoming a preacher, and did some preaching in a Protestant church in his youth. While he opted against following this career path, he ultimately decided to become a Catholic at the urging of his first wife, Elaine Schwartzenburg, whom he married in 1949.

Edwards attended Louisiana State University for one year, but left to enlist in the Navy during the closing months of World War II. He was trained as an aviation cadet but never saw combat, as Japan surrendered shortly before he was to be deployed to the Pacific. He was discharged in 1946, returned to LSU, and received his law degree in 1949.

Edwards during his brief time in the Navy (Source)

Learning from his sister that there were few French-speaking attorneys in the city of Crowley, where she had moved with her husband, Edwards opted to move to the community as well and establish a private practice. He began his political career here as well, serving on the city council from 1954 to 1962 and acting as the ad hoc city court judge during the 1950s.

In 1964, Edwards scored a major upset victory when he defeated Bill Cleveland, who had been in the Louisiana state legislature for two decades, to win a seat in the state senate. He would only serve here for one year before winning a special election as a Democrat to the House of Representatives to fill a vacancy left by Representative T. Ashton Thompson, who had died suddenly in a car accident. 

Edwards would remain in the House until 1972, and earn distinction as one of the few Southern congressmen to back the Voting Rights Act of 1965, voicing his approval for five-year extensions of the legislation in 1966 and 1970. This was particularly unusual as 80 percent of the voters in Edwards' district had cast their ballot for segregationist presidential candidate George Wallace in 1968.


Governor of Louisiana

In 1971, Edwards entered Louisiana's convoluted race for governor. At this point, the race involved a closed Democratic primary, followed by a runoff among the top Democratic contenders. The ensuing general election was little more than a formality, as the Democratic Party had solid control of the state and the Republicans had not held the governor's office since Reconstruction.

Edwards managed to win strong support among the Cajun, Creole, and Black populations in Louisiana. He placed first among 17 contenders in his party's primary, then cruised to an easy victory at the general election. When he was sworn in on May 9, 1972, Edwards became the first Catholic governor in the United States and the first with Cajun ancestry.

Returning the support he had received from the state's minorities, Edwards named several Black residents to key political posts. He was also openly supportive of many Black politicians in Louisiana, which helped to expand his base and establish a more welcoming and inclusive environment in the state.

During his first term, Edwards pledged to help the downtrodden people of his state. One of the most important changes he made to fulfill this promise was pushing for legislation that changed the severance tax on the extraction of crude oil from a flat rate of  26 cents per barrel to 12.5 percent of the market price. When oil prices soared during the energy crisis of the 1970s, the change allowed revenues to pour into the state coffers.

The income allowed Edwards to close budget deficits, reduce state income and sales tax, and completely eliminate a state property tax. In addition, it enabled the governor to direct more investments in public improvements, including education, state parks, tourism, and state hospital and welfare programs. 

Edwards also supported a constitutional convention to update Louisiana's 1921 governing document. The convention took place in 1973, with the new constitution going into effect in 1975. It gave the governor broader leeway to reorganize the executive branch, which Edwards consolidated by boiling 258 independent agencies down into a cabinet-style government. The new constitution also had the effect of changing the election process to an open primary, doing away with the clunky old system by allowing all candidates (regardless of political party) to run for office, with a runoff taking place if no candidate received more than 50 percent of the vote. 

The impetus for this change was an effort to minimize the expense of a general election campaign, something the Democratic Party in Louisiana considered to be an annoyance and a waste given the party's dominance. Ironically, it would help strengthen Republican influence in the state since it gave the GOP the opportunity to mount a stronger campaign from the outset. It would also set the stage for Edwards' unexpected return to power 16 years later.


Early scandals

Although Edwards easily won re-election in 1975, his second term was clouded by accusations of wrongdoing. Clyde Vidrine, who had served as Edwards' bodyguard and later his executive aide before being fired due to a questionable real estate deal, published a salacious book in 1977 about Edwards' conduct. Just Takin' Orders accused the governor of trading government posts for campaign contributions and described wild trips to Las Vegas, where Edwards ran up gambling debts and, on one occasion, took five women to bed in a row.

Edwards responded to the accusations with his trademark wit and charm. He joked that the campaign contributions were "illegal for them to give, but not for me to receive." He offered a few quips to the charge of infidelity, suggesting that Elaine knew it wasn't true because he was "only good for four-and-a-half times," or that Vidrine had neglected to mention a sixth woman he slept with after his aide left.

Vidrine's accusations were still enough to spark several investigations into the governor. While these inquiries didn't result in criminal charges, one did conclude that Edwards owed $5,000 in back taxes.

Vidrine also tipped off the IRS about cash Edwards received from Tongsun Park in 1971 while he was in the House. A known South Korean intelligence agent, Park had been accused of trying to bribe congressmen to pressure President Richard Nixon to reverse his decision to remove ground troops from Korea. Several congressmen would be reprimanded in the "Koreagate" scandal, and Edwards' fellow Louisiana  congressman Otto Passman was one of two who received criminal charges in the matter.

Edwards denied Vidrine's claim that Park had delivered $20,000 to him, but admitted that Elaine had received money from the agent. He claimed he knew Park as a businessman, but only became aware of the money he had paid his wife when the IRS questioned him on his revenues.

Vidrine continued to nurse a grudge against Edwards, and would later update and reissue his book after Edwards' trial in 1985. In a strange coda, the governor's former aide was gunned down outside a federal courthouse in Shreveport in December 1986, the victim of the enraged ex-husband of a woman he had been dating.


Return to office

Louisiana's constitution limited governors to two terms, so Edwards returned to private practice after leaving office in 1980. In the 1979 election, voters backed David C. Treen, the first Republican to become governor of Louisiana in more than a century.

Treen was dogged by poor economic conditions throughout his term in office. The recession of the early 1980s caused unemployment to soar, with the state's oil and gas industry being hit especially hard. The governor and legislature struggled to balance the state budget amid declining revenues. Louisiana residents waxed nostalgic about the boom times under Edwards; the former governor noticed, and announced his intention to run for a third term.

Edwards launched a lively campaign, delivering fierce attack's on Treen's administration. One campaign brochure, criticizing a reduction in human services to pay for a 33 percent tax cut, shouted, "Edwards Giveth; Treen Taketh Away!" Edwards declared his opponent "so slow it takes him an hour and a half to watch 60 Minutes" and, during one debate, responded to Treen's accusation that he talked out of both sides of his mouth by saying it was so "people like you with only half a brain can understand me." Confident in his chances of being returned to office, Edwards crowed, "The only way I can lose this election is if I'm caught in bed with either a dead girl or a live boy."

The Treen campaign zeroed in on suspicions of Edwards' corrupt nature. They brought up Park's gift to Elaine, and pointed out how either Edwards or his associates had been the targets of 27 grand jury investigations. Treen also noted how Edwards had been particularly lenient with his pardon power, granting 1,181 requests during the last four-and-a-half years he was in office. 

Voters were content to excuse Edwards' questionable character if it meant there was a chance to bring back the good old days. When the results came in, Edwards had trounced Treen with 62 percent of the vote.

Faced with $4 million in campaign debt, Edwards mounted a lavish victory celebration to break even. He chartered a trip to France in January 1984, charging $10,000 a person. A total of 618 people attended, including 60 from the Louisiana state legislature. During a trip to the palace at Versailles, he commented, "I've wanted all my life to be a king, and now I can be."

Edwards during his celebratory trip to Paris (Source)

There were also lingering signs of corruption within the Edwards administration. Commissioner Charles E. Roemer, the father of his future gubernatorial opponent Buddy Roemer, was implicated in scandals involving overpayments to state computer contracts and mismanagement of the state employees' hospitalization insurance program. Michael O'Keefe, a state senator and one of Edwards' strongest allies, was convicted on various corruption charges.

Then, on February 28, 1985, one of the many grand jury investigations against Edwards finally returned an indictment.


1985 corruption charges

Edwards was charged with 50 counts in total, his alleged crimes including conspiracy, mail fraud, wire fraud, and racketeering. Prosecutors charged that he had received $1.9 million from hospitals and nursing homes while out of office in exchange for the promise that he would grant them the state permits necessary to qualify for Medicare and Medicaid payments if he was returned to office. Charged alongside the governor were his brother Marion, his nephew and real estate broker Charles David Isbel, business partners Ronald Falgout and James Wyllie, businessman Gus Mijalis, and architect Perry Segura.

The state said that the defendants had crafted an elaborate scheme to rake in funding. Isbell would secure the land for new hospitals and nursing homes, Segura would draft their plans, and Marion would send developers in need of permits to Isbell to purchase the land. Prosecutors said that some of the defendants had also established the entity Health Services Department Corporation but concealed Edwards' role in it to outsiders, then promised that Edwards would be able to use his power and influence to give preferential treatment to those who paid the corporation. Once he had returned to office, Edwards had indeed approved five of the corporation's proposed projects despite a moratorium that had been established on granting the necessary permits.

Edwards during his 1985 trial (Source)

Prosecutors charged that Edwards' gambling habits had motivated the crimes, since he had racked up $2 million in debts at Las Vegas casinos. Edwards admitted that he had been a partner in Health Services Development Corporation and that he had made about $2 million in the venture, but claimed that this had been the result of shrewd business practices rather than corruption. Several newspapers and state officials had called for him to resign in response to the indictment, but Edwards said he would only do so if he was found guilty.

During the trial, state witnesses testified to the group's business dealings. Health Services Development Corporation had made about $10 million through dealings with 16 corporations, including five that prosecutors defined as shell corporations defined only by their state permit. Kathryn Lichtenberg, a New Orleans lawyer who had formerly worked for Wyllie, said he had boasted that there would be a "gravy train" once Edwards was returned to office. 

Prosecutors also brought in casino executives, who confirmed Edwards' severe gambling debt and the suspicious way he paid it off. After being returned to office, Edwards had summoned the executives to the governor's mansion and handed over suitcases stuffed with cash to pay down what he owed. The state also showed how Edwards had gambled under multiple names to try to hide his losses, and had never declared the gambling losses on his taxes despite incurring them between 1982 and 1984.

Edwards testified in his own defense, reiterating his claim that he had earned money honestly rather than by exerting influence. The defense team also managed to undermine the prosecution's claim that Edwards' role in the corporation was a conflict of interest due to the possibility that he might return to office, noting how he was fully ensconced in the private sector when the alleged crimes occurred.

Deliberating the matter, the jury wound up deadlocked for six days. Eleven jurors favored acquittal while one considered Edwards to be guilty. The judge eventually declared a mistrial, and acquitted three defendants for lack of evidence.

The matter went to a second trial, where the defense opted not to present arguments due to the belief that the state had not shown sufficient evidence of guilt. Edwards was acquitted on May 11, 1986. Appearing before supporters on the courthouse steps after the decision, he accused the prosecution of being politically motivated and boasted that "this courthouse is a citadel of justice, not a cesspool of Republican politics."

Nevertheless, Edwards' reputation had been badly tarnished. A poll taken two weeks after the indictment showed that just one in three respondents supported the governor, and political analysts opined that Edwards was unlikely to run for a fourth term even if he emerged triumphant from the trial. A cloud of suspicion still hung around the governor; he had been under investigation for potentially illegal ties with oil companies at the time of his indictment, and was later scrutinized for the Louisiana Department of Wildlife and Fisheries' purchase of land owned by people who contributed to Edwards' campaign.

Edwards' third term was also proving not to be the miracle cure voters might have expected. Edwards was facing the same challenges that had dogged Treen. With the plunge in oil prices severely constraining the funds that had been available during his first two terms, Edwards was forced to implement new taxes, substantially reduce state departments, and cut several programs to make up a $700 million budget deficit. His popularity took an immediate hit. 

The administration suffered another black eye with the 1984 World's Fair in New Orleans. The event had attracted only 7 million guests, 4 million fewer than expected, and was forced to declare bankruptcy. Edwards backed a decision to bail out the World's Fair with $65 million in state funds to keep it solvent.

During the first round of the gubernatorial primary in 1987, Edwards faced a stiff challenge from Rep. Buddy Roemer, who accused Edwards of trying to turn Louisiana into a "banana republic." When the results came in, Roemer had earned 33 percent of the vote to Edwards' 28 percent. Certain that he wouldn't emerge as the victor, Edwards decided to drop out of the race.


Challenge from a grand wizard

Roemer was saddled with unpopularity from the start of his term. Under the primary rules, Edwards' withdrawal as the candidate receiving the second most votes made Roemer the winner by default, despite having the support of only one-third of the electorate. 

Roemer's rise had been driven in part by Edwards' falling star and in part by his promotion of several reform measures, including investing more in educational spending, getting tough on polluters, cutting taxes and reducing wasteful spending, confronting crime, and cleaning up corruption in state politics. However, his progress on these promises was decidedly slow as he faced ongoing fiscal crises as well as stiff opposition in the state legislature. His foes also accused him of being arrogant, antisocial, and inaccessible, as he tended to prefer working in private to the boisterous gladhanding favored by Edwards.

As the 1991 election approached, Roemer made the shortsighted decision to switch his allegiance to the Republican Party. He wound up being contested by Rep. Clyde Holloway, who rallied Louisiana's fundamentalist Christian wing to challenge Roemer's pro-choice stance. The state GOP convention ultimately endorsed Holloway despite Roemer's attempt to get the gathering canceled. Roemer had also failed to notice an upswell of support for an unlikely challenger.

David Duke during his 1991 gubernatorial campaign (Source)

David Duke's youth had been defined by his vocal and unabashed support for white supremacy. He had espoused his love of Adolf Hitler and the Nazis during his time as a student at Louisiana State University, joined the Ku Klux Klan, and become the grand wizard of a similar organization - Knights of the Ku Klux Klan - which he had established to try to cloak his cause in a more legitimate facade.

Duke ran for office several times during the 1970s and 1980s, though the odds of his victory were so slim that several supporters denounced them as little more than attempts to bilk gullible racists out of their money. Yet he won a surprise victory in 1989 when he was elected as a Republican to the Louisiana state legislature from the New Orleans suburb of Metamie. He served a single term, where his signature achievements were authoring a bill to limit affirmative action in Louisiana and leading opposition to Roemer's proposed reform of the state tax system.

By this time, Duke was trying to cast himself as a reformed and respectable man, a born-again Christian whose radical days were behind him. Nevertheless, many of his political positions were thinly rebranded versions of the racist views he had trumpeted as a Klansman. He fiercely criticized affirmative action and social welfare programs, raising the specter of minorities being placed in jobs they were not qualified for or lazily benefiting from the tax dollars of hard-working citizens. Despite the promise of self-reform, critics pointed out how he continued to sell anti-Semitic literature out of his state legislator's office.

Duke's arguments nevertheless resonated with many white voters in Louisiana. When he mounted a race for the U.S. Senate in 1990 as an unendorsed Republican, he performed surprisingly well against Bennett Johnston, the Democratic incumbent who had first been elected in 1972. Johnston won the race with just 53.9 percent of the vote, while Duke earned a majority of the white vote.

As the 1991 gubernatorial election approached, Roemer was unconcerned by potential challenges from both Edwards and Duke. He had already bested Edwards once despite his strong presence in the state, and figured that Duke's unsavory past would fail to make him a strong contender. Early polls showed that 35 percent of the electorate supported Roemer while 25 percent favored Edwards and only 15 percent planned to vote for Duke. By the eve of the October 19 primary, Edwards and Roemer were neck and neck in the polls (31 percent to 30 percent) while Duke trailed at 20 percent.

The primary results were a major shock. Edwards had been the top candidate with 523,096 votes, but voters had also turned out in force for Duke. He was barely 30,000 votes behind the former governor, earning 491,342 ballots in total. Roemer had fallen about 80,000 short of Edwards, knocking him out of the race.


Showdown with Duke

The runoff now came down to Edwards and Duke, and the Louisiana governor's election soon gained international attention. Many onlookers were disgusted by the implications of the race. Barely two decades after the civil rights movement had endured bloodshed and terrorism to topple segregation and advance equal rights reforms, a former grand wizard of the KKK now had a fighting chance to be the top elected official in a Deep South state.

The Democrats mounted a massive campaign against Duke, zeroing in on his long record of hatred and bigotry. The effort attracted a groundswell of support from business owners fearful that tourists would boycott Louisiana if Duke were to be elected, as well as civil rights groups and local newspapers. National GOP leaders, including President George H.W. Bush, also denounced Duke and disavowed his connection with their party. One anti-Duke advertisement featured a World War II veteran in full military uniform, declaring, "I joined the Army in 1944 to fight the Nazis. And I'm going to fight the Nazis in this election." 

Faced with such an unsavory alternative, Edwards' former opponents publicly backed him. Treen and Roemer encouraged voters to cast their ballots for the former governor. Edwards concentrated on appealing to the voters who had backed Roemer in the first primary vote; like Duke, he promised that he had reformed himself. "I don't want to live the rest of my life with a legacy of bad marks I had eight years ago, six years ago," he said.

For many voters, the choice between a Klansman and an ex-governor who had been tried for corruption was an easy one to make, if not exactly palatable. The attitude was reflected in bumper stickers reading "Vote For the Crook. It's Important" and "Vote for the Lizard, Not the Wizard." Edwards got in on the fun, delivering the bawdy remark that he and Duke were "both wizards under the sheets."

Duke's campaign suffered some additional blows in the last days of the campaign. In a fiery debate between Edwards and Duke on Tim Russert's Meet the Press, Duke was unable to answer questions about Louisiana's top industries or how much of the population lived below the poverty line. On November 5, 11 days before the election, Duke campaign staffer Bob Hawks quit and publicly charged that Duke's conversion to Christianity was a hoax.

When the runoff election was held, Duke still managed to win 671,009 votes, including the majority of the white and GOP vote. Yet the overall result was a landslide victory for Edwards. He had pulled 61 percent of the vote, or 1.06 million ballots, to win an unprecedented fourth term as Louisiana governor. 


Fourth term and riverboat gambling scandal

Following his previous rocky time in office, Edwards enjoyed more success in his fourth term. He managed to balance the state budget and oversee modest increases in state funding for public programs in health, education, and welfare, as well as funding for a new arena in New Orleans and investments in existing sports facilities. Edwards also remarried during this term; following his 1989 divorce from Elaine, with whom he had four children, he tied the knot with Candy Picou, a nurse nearly four decades younger than him.

Seeking to diversify the state's revenues, Edwards also worked to bring casino and riverboat gambling to Louisiana. The state struck a deal with Harrah's to establish a casino in the heart of New Orleans, although this venture nearly collapsed when Harrah's declared bankruptcy in 1995; Edwards' successor, Governor Murphy Foster, subsequently renegotiated the contract and the casino opened in 1999. Riverboat gambling had already proved to be a successful tourist attraction and source of income in neighboring Mississippi, and Louisiana established the Riverboat Gaming Commission to grant licenses for similar ventures. 

This process would prove to be Edwards' undoing, although his reckoning would not come until several years after he left office in 1996. The Riverboat Gaming Commission considered 43 applications for 15 available licenses, and all of them had ultimately gone to Edwards' political backers. When investigators looked into the matter, they soon charged Edwards and several associates with a scheme similar to the one the governor had been accused of years earlier: accepting payments in exchange for preferential treatment.

Similar to the 1985 case, Edwards was accused of partnering with others in a moneymaking scheme that rewarded those who paid the price. Prosecutors also accused his son Stephen, former Edwards aide Andrew Martin, Baton Rouge businessman Bobby Johnson, and cattleman Cecil Brown of partaking in the shakedown. 

At the trial, one key witness was Edward J. DeBartolo, Jr., the former owner of the San Francisco 49ers. DeBartolo said that he had visited Edwards in the governor's mansion one night before the commission's final meeting, and that Edwards had slid him a piece of paper with the figure $400,000 on it. "This has to be taken care of by next week or there's going to be a serious problem with your license," he declared. Edwards had also demanded a 1 percent stake in the profits from DeBartolo's casino.

DeBartolo testified that he had subsequently met Edwards in San Francisco to turn over a suitcase full of money. Asking how Edwards planned to get the suitcase past scrutiny at the airport, Edwards showed him a hidden money belt he intended to use to smuggle the cash back home.

The payoff had ultimately not been worth it for DeBartolo. Once his misdeed was discovered, he was convicted of failing to report a felony, sentenced to two years of probation, and fined $1 million. He had also been ordered to relinquish his casino license and turn over control of the 49ers to his sister.

Other witnesses described similar arrangements through Edwards' associates. Robert Guidry, a Louisiana businessman, described leaving large sums of cash in trash receptables for Edwards or his associates to collect. Guidry said he had struck an agreement in which he would pay Martin $100,000 a month in exchange for the approval of a riverboat gambling license. Like DeBartolo, the conduct had gotten him in trouble with the authorities; in 1998, he had pleaded guilty to an extortion charge for paying a total of $1.5 million to the Edwardses and Martin.

The defense argued that the state's case was too flimsy to stand, saying it was based on secret recordings, misinterpreted conversations, and testimony from people who were trying to give evidence in exchange for reducing the punishment for their own crimes. Edwards remained unflappable, quipping to reporters that he could cover any punishment with time served if the judge considered all the time he had spent before grand juries and trials. 

The jury found all defendants guilty on May 9, 2000. Edwards was convicted of 17 counts of racketeering, extortion, and conspiracy. 

Sentencing in the case did not take place until January 8, 2001. All five defendants were ordered to split a forfeiture of $1.8 million to give up any gains they had realized from the scheme. The judge ordered Stephen to spend seven years behind bars and pay a $60,000 fine. The other defendants were ordered to pay $50,000 fines. Martin was given a prison sentence of five years and eight months, while Brown received a five-and-a-half year term and Johnson received four months.

The stiffest punishment was reserved for Edwards. The ex-governor was given a hefty $250,000 fine and ordered to spend 10 years in prison. He began serving his time in 2002.

Many observers, even those who had previously criticized Edwards, felt this penalty was excessive. Treen became one of Edwards' staunchest advocates, pushing for his early release until he passed away in 2009. Those calling for a presidential pardon for Edwards included former President George H.W. Bush.


Later life

Despite the calls for leniency, Edwards served the bulk of his term. He was released from prison in January 2011.

One surprising result of his imprisonment was a new relationship. Edwards divorced Picou in 2004 and wound up striking up a pen pal relationship with Trina Grimes Scott, a woman 51 years his junior. Six months after he was freed, Edwards and Grimes were married. He joked that he would have gone to prison a happy man if he had known he would find new love as a result, saying, "As you know, they sent me to prison for life. But I came back with a wife." 

Edwards and Trina Grimes Scott on the couple's wedding day (Source)

Edwards remained a fairly popular figure in Louisiana, despite the stain of corruption. In the fall of 2011, he was the grand marshal of the International Rice Festival in Crowley. A year later, he was crowned king of the Spanish Town Mardi Gras parade in Baton Rouge. 

Edwards' new marriage to a much younger wife briefly earned the couple a spot in the national limelight, as they were featured on the short-lived A&E series The Governor's Wife in 2013. That same year, Edwards became a father again at the age of 85 as Trina gave birth to a son.

In 2014, Edwards made one last bid for elected office when he ran for a seat in the House of Representatives. The bid was widely viewed as quixotic given his age, his scandalous history, and the shift in the state's political climate that had granted the Republican Party more solid control of its political offices. Although Edwards secured the Democratic nomination, he was trounced in the general election when GOP candidate Garrett Graves came away with 62 percent of the vote. 

Edwards died of respiratory failure in Gonzales, Louisiana, on July 12, 2021.


Sources

National Governors Association, Biographical Directory of the United States Congress, Louisiana Secretary of State's Office, Acadian Museum, "Louisiana Governor Says His Wife Was Given $10,000 by South Korean" in the New York Times on Oct. 26 1976, "Ex-Aide Testifies Edwards Given Cash by Park" in the Washington Post on Jan. 24 1977, "The Healer Returneth" in The New Republic on Oct. 31 1983, "618 Louisianans Go to Paris for 'Biggest Single Fund-Raiser'" in the New York Times on Jan. 30 1984, "Gov. Edwards Today Reviewed..." in the UPI on Mar. 1 1985, "Louisiana Governor Going to Trial" in the Christian Science Monitor on Sep. 16 1985, "Louisiana Governor's Trial Hears Co-Defendant Saw a 'Gravy Train'" in the New York Times on Oct. 4 1985, "Ten Grand Juries Investigate Edwards" in UPI on May 10 1986, "Louisiana's Governor Acquitted in 2d Trial on Fraud Charges" in the New York Times on May 11 1986, "DeBartolo: Edwards Got $400K" on CBS on March 27 2000, "Ex-Edwards Friend Clyde Vidrine Slain" in The Town Talk on Dec. 17 1986, "Louisiana Governor's Mixed Legacy" in The Oklahoman on Mar. 9 1995, "Casino Operator Details Alleged Kickback Scheme in Louisiana Trial" in the Las Vegas Sun on Jan. 31 2000, "Former La. Governor Sentenced to 10 Years" in the Las Vegas Sun on Jan. 9 2001, "J. Bennett Johnston: The Rappahannock Resident Who Defeated White Supremacist David Duke" in the Rappahannock News on Sep. 11 2017, "Edwin Edwards, Flamboyant Louisiana Governor, is Dead at 93" in the New York Times on Jul. 12 2021, "Edwin Edwards Has Died" in Avoyelles Today on Jul. 12 2021, "Former Louisiana Governor Edwin Edwards Has Died" on 4WWL on July 12 2021, "Populist Edwin Edwards, a 'Cajun King,' Loved His Louisiana" in the Associated Press on Jul. 12 2021, "Edwin Edwards Dies; Knew Power and Prison" in Biz New Orleans on Jul. 12 2021, "The Epic Lives of Edwin W. Edwards" in Bayou Brief on Jul. 18 2021, Louisiana: A History edited by Bennet H. Wall and John C. Rodrigue, Louisiana and Its People by Sue Eaton and Manie Culbertson, Louisiana Almanac, 2006-2007 Edition edited by Milburn Calhoun and Jeanne Frois, The Rise of David Duke by Tyler Bridges, Encyclopedia of White Power: A Sourcebook on the Radical Racist Right by Jeffrey Kaplan, Wizards: David Duke, America's Wildest Election, and the Rise of the Far Right by Brian Fairbanks, Reforming New Orleans: The Contentious Politics of Change in the Big Easy by Peter F. Burns and Matthew O. Thomas, How the South Joined the Gambling Nation: The Politics of State Policy Innovation by Michael Nelson and John Lyman Mason

Friday, February 18, 2022

George V. Hansen: The "Dragon Slayer" Repeatedly Brought Low by Financial Scandals

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On the morning of October 1, 1985, protestors gathered in Boston to hurl boxes of tea into the city's harbor. Although it clearly called to mind the Boston Tea Party, one of the events that helped kick off the American Revolution, it wasn't a historical reenactment. Rather, it marked the start of a nationwide campaign by a coalition of groups calling for reforms to the Internal Revenue Service.

George Vernon Hansen, a former Republican congressman from Idaho, was part of the effort. He had headed the political consultancy group New Continental Congress since leaving the House of Representatives, and said it planned to run advertisements on IRS abuses in a bid to raise public awareness.

"We came up to kind of kick off the other side of tax reform," said Hansen. "The President has been pushing structural change in the tax system. We're saying you're not going to have real tax reform unless you reform the IRS. They're intimidating and abusing the taxpayer in the process of collecting taxes."

While the protest took place decades before the creation of the Tea Party movement of the early 21st century, it exemplified how Hansen would be a forerunner the vocal conservative movement and what it regarded as government waste or overreach. He would remain a stubborn foe of the IRS for decades, and routinely accuse it and other federal powers of persecuting him for his beliefs.

The protest came as Hansen's political career and influence were waning. He had twice been convicted of skirting financial disclosure and ethics laws, and was fighting jail time related to the most recent charges. He would later say the difficulties he encountered from these run-ins with the law would contribute to his decision to commit another, more serious financial crime.

Early life and early political career

Hansen was born in Tetonia, Idaho, on September 14, 1930. His early life was marked by a tumultuous turnover in educational, career, and military experiences. He managed a grain elevator beginning in 1950, and would return to this work briefly in 1954. He served in the U.S. Air Force between 1951 and 1954; his military experience would also include graduation from the Army Language school and time as an officer in the U.S. Naval Reserve between 1964 and 1970.

Graduating from Ricks College in 1956, Hansen completed graduate work at Idaho State University between 1956 and 1957 as well as 1962 to 1963. He also earned a degree from Grimms Business College in 1958.

Hansen balanced some of this educational work with a stint as a junior high school teacher, undertaking this profession between 1956 and 1958. He worked in the life insurance business from 1958 to 1965.

One of Hansen's children would later recall that his father entered politics for a simple reason: his community of Alameda didn't have sidewalks like the neighboring city of Pocatello. This motivation helped launch a successful campaign for the mayor of Alameda, with Hansen holding the job from 1961 to 1962. When Alameda was consolidated with Pocatello, he became a city commissioner between 1962 and 1965. He also served as the director of the Idaho Municipal League from 1961 to 1963.

Early congressional bids

After an unsuccessful bid for the Senate in 1962, Hansen turned his attention to the House of Representatives in the 1964 race. Although it was a strong year for the Democrats, who won the White House and made gains in Congress, Hansen's grassroots campaign was able to unseat incumbent Ralph Harding with 52 percent of the vote. 

Hansen distinguished himself by his strong disdain for the federal government, including opposition to President Lyndon B. Johnson's civil rights and social welfare programs. He took a hawkish stance on the turmoil in Southeast Asia, saying that Johnson's "lackadaisical prosecution" of the Vietnam War was emboldening the Communists. When the spy ship USS Pueblo was captured by North Korea in January 1968, Hansen declared it an "act of war" and called for a swift response to recover the vessel and its crew, though he also said the situation should not be handled in a way that would lead to the United States being involved in two simultaneous conflicts in the region.

While he was re-elected in 1966, he was less successful when he again tried to capture a seat in the Senate two years later. Frank Church, the Democratic incumbent, comfortably kept the position with 60 percent of the vote.

With the Republicans retaking the White House in 1968, Hansen remained in the nation's capital from 1969 to 1971 after he was appointed the deputy administrator for the Agricultural Stabilization and Conservation Service. He would also serve as vice president of the Department of Agriculture's Commodity Credit Corporation.  

Returning to Pocatello, Hansen resumed his work in life insurance and opened a printing and copying company, the Pocatello Copycat, with his wife Connie. He again launched a Senate campaign in 1972, but failed to earn the Republican nomination. 

In 1974, Hansen mounted another House campaign against the similarly named but unrelated incumbent Orval Hansen. Orval had filled George's seat after his unsuccessful Senate bid, and had distinguished himself as a popular moderate. Yet in an upset result, George retook the Republican nomination and went on to defeat the Democratic candidate, Max Hanson. 

"Stupid but not evil"

Hansen took office under a cloud, having become embroiled in a scandal over his financial disclosures. He admitted that he had engaged in a "freewheeling" campaign and hadn't been especially careful in tracking how money was coming in or being spent. Charged with violating a 1971 law regulating campaign financing, he pleaded guilty on February 19, 1975 to two misdemeanor counts of filing late and incomplete reports, failing to disclose $16,150 in contributions.

The charges initially resulted in a sentence of one year in jail with all but two months suspended, which would make Hansen the first congressman to be put behind bars in 19 years. However, he denied that the omissions on his disclosures were intentional. He attributed them to bookkeeping deficiencies made in error by his staff, and apologized for the trouble that had resulted.

This explanation was enough to persuade Judge George L. Hart Jr., who on April 25, 1975, opted to reconsider the punishment. "I assumed when I sentenced him to jail he was evil," said Hart. "Now, I am not so sure. Stupid, surely." He waived the prison sentence, instead imposing a $40,000 fine on the congressman.

The judge's mercy would have a mixed effect. While his statement was a rephrasing of Hansen's lawyer, who argued that the congressman was "stupid, but he wasn't evil," it was a backhanded compliment that provided easy fodder for Hansen's critics. He would later say that some of his subsequent financial woes were attributed to efforts to rehabilitate his reputation as the "stupid but not evil" moniker stuck.

The conviction prompted calls for Hansen to resign from some Democrats and Republicans in the House, but the Idaho Republican State Central Committee offered a vote of confidence. The committee chairman accused the Justice Department and House Government Operations Committee of "selective reprisal," saying that Hansen was the only person charged out of some 7,000 complaints. He also alleged that Orval Hansen had leveraged the issue for political purposes during the primary season by referring the matter to the Justice Department while he served on the committee.

Second stint in Congress

Hansen went on to win re-election four times. He would distinguish himself by his opposition to most major federal agencies and programs, though his ire was concentrated most strongly against the IRS. He asserted that the agency was planning armed raids in Idaho, and in 1985 would accuse it of singling out taxpayers for audit based on their religious or political affiliations. 

Part of this consternation likely stemmed from Hansen's own repeated run-ins with the IRS. He was reportedly late filing his taxes in every year between 1962 and 1975, although this tardiness never resulted in any legal action. In 1980, Hansen published a book entitled To Harass Our People: The IRS and Government Abuse of Power and would claim that a million copies had gone into print.

Hansen also accused the Immigration and Naturalization Service of being involved in a conspiracy to shuttle illegal immigrants across the border and then arrest the farmers who hired them. After a constituent refused to let inspectors from the Occupational Safety and Health Administration enter his electrical contracting business, Hansen launched a nationwide campaign to field complaints against the agency.

Admirers saw Hansen as someone willing to take on big government and fight for the common man, giving him the nickname "George the Dragon Slayer." Detractors suggested that Judge Hart's moniker was more appropriate, portraying Hansen as a buffoon who was more interested in grandstanding than passing meaningful legislation.

Hansen became one of the most vocal critics of the Panama Canal treaties. These agreements, signed by President Jimmy Carter and Panamanian leader Omar Torrijos Herrera at the end of 1977, provided that the American-controlled canal would become a neutral passageway open to all vessels, be jointly administered by the U.S. and Panama, and be transferred to Panamanian ownership in the year 2000.



While Congress debated whether to ratify the treaties, Hansen launched a mail campaign to try to convince American citizens in the Panama Canal Zone to oppose the treaties. He also commissioned a stunt where friends in Idaho loaded up a flatbed truck with two-by-fours made to look like bars of gold and drove it to Washington, D.C. as a visual representation of the money he felt was being squandered through the agreements.

As Hansen calculated, the treaties would forfeit property worth $20 billion, incur $4 billion in transfer costs and $2 billion in contingency costs, and result in an annual expense of $200 million to taxpayers after Panama took control of the canal. A report from the House Committee on Foreign Affairs dedicated an appendix to these figures, asserting that Hansen's estimates were "enormously exaggerated."

The "big American cowboy" abroad

Hansen would spend a considerable amount of time traveling in 1978 and 1979, embarking on quixotic one-man diplomatic trips aimed at improving foreign relations. In January 1978, he traveled to Taiwan and assured the Chinese republic that they would receive the equipment they needed to pursue a nuclear program, despite Carter's opposition to such an effort. In July of that year, he visited President Anastasio Somoza in Nicaragua, praised the country as a "peaceful and pastoral private enterprise nation," and assured Somoza that he had American support; Somoza was overthrown by Sandinista rebels two weeks later.

Hansen's most notable mission came in November 1979, after the U.S. embassy in Tehran was taken over by student militants and dozens of American citizens were held hostage. Flying to Iran in an effort to "build some bridges and open some doors," Hansen was permitted to visit some of the captives on November 24 and reported that they were being held "in relatively comfortable circumstances." He was the first American allowed into the embassy since its fall.

Despite the virulent anti-American sentiment that had developed in Tehran, Hansen reported that he had received a surprisingly warm welcome from the militants. One, impressed by the congressman's height and bravado, dubbed him a "big American cowboy."

While many of Hansen's Republican colleagues in Congress said he was courageous for making the trip, few considered it a wise endeavor. Millicent Fenwick, a Republican from New Jersey, denounced it as "dangerous" and "irresponsible." One Democratic lawmaker described Hansen as "the last guy in the world to send on a diplomatic mission."

The trip also incensed the Carter administration, with White House officials saying it could generate confusion, inhibit official negotiations, and prolong the situation. However, at least some of irritation may have stemmed from the fact that Hansen had managed to gain access to the hostages when the presidential envoy had not been allowed such a visit. 

Hansen was unrepentant about the mission, and even threatened to introduce an impeachment resolution against Carter over his handling of the crisis. He made another trip to Tehran a month later, but made little progress in resolving the situation. The hostages would be held for 444 days before their release.

Ethics violation

The foreign travel, made at his own expense, did little to improve Hansen's financial standing. His assets had also been dinged by legal battles and campaigns seeking to defend his reputation. He also voiced a complaint commonly uttered by congressmen: maintaining residences in D.C. and in their home district was too challenging on a representative's salary, which amounted to $57,500 in 1977.

In this year, Hansen asked the Federal Election Commission if he could solicit contributions from his supporters to pay down his personal debts. While the FEC said this would be legal, the House Ethics Committee informed him that it would violate the chamber's rules.

In response, Hansen divided his assets with his wife, who also worked as his office manager. Under this arrangement, Connie would be left with the debts and could ask for contributions. She promptly established the Connie Hansen Fund and pleaded for hundreds of thousands of dollars to pay these liabilities and "save my family from financial disaster."

The syndicated newspaper columnist Jack Anderson mocked the effort, nicknaming the congressman's wife Tin Can Connie. Even supporters of the Hansens offered only tepid support. While a 1979 article reported that Connie had raised over $50,000, the couple still owed some $300,000 to nine banks two years later.

This financial shell game ultimately ran afoul of the 1978 Ethics in Government Act, which had been set up after the Watergate scandal. This legislation sought to improve the transparency of official dealings by requiring major government officials to disclose their financial holdings, transactions, and liabilities. Hansen was indicted in 1983 on four charges of violating the law.

The charges stated that Hansen had failed to disclose a total of $333,978 in personal loans and other transactions. One of the largest unreported loans, for $135,000, had come from three men, including one accused of bank fraud. Other undisclosed loans were made to Connie by billionaire Nelson Bunker Hunt, and Hansen had failed to make note of $87,475 in profits his wife had made on silver investments.

Hansen angrily denounced the charges as "selective and bogus prosecution," again saying he was being targeted due to his "opposition to federal intrusion into all our lives." He claimed that he had simply filled out the form incorrectly and that the issue was being blown out of proportion.

The defense took a similar tack when the matter went to trial, focusing on the Hansens' separation of accounts and saying that the congressman's attorneys had advised him that he didn't have to report the transactions due to the arrangement. They also suggested that the $135,000 loan did not need to be reported because it did not go directly to Hansen but rather to an advocacy group he had formed, the Association of Concerned Taxpayers. Prosecutors countered that Hansen had essentially been using Connie's account as a front to conceal transactions.

In April 1984, Hansen was found guilty on all counts. He was the first congressman convicted under the 1978 ethics law and the first congressman since Thomas J. Lane, nearly three decades earlier, to be convicted on a felony charge. On June 15, he was sentenced to serve between five and 15 months in prison and pay a $40,000 fine.


Hansen with wife Connie after being sentenced in 1984 (Source)

The House of Representatives also addressed the issue on July 31, taking up the question of whether to reprimand Hansen. This was the mildest form of punishment available, falling short of a censure or expulsion. Those in favor of the action said Hansen's actions to conceal his transactions were intentional, and that a reprimand was necessary to demonstrate that the House would hold its members accountable for wrongdoing. Hansen's supporters backed his contention that he was being singled out, arguing that there were numerous examples of government officials making errors on their disclosure forms and needing to rectify them.

Speaking before the chamber, Hansen brought up several examples of current officials who faced controversy over their financial disclosures, including Democratic vice presidential candidate Geraldine Ferraro, Attorney General William French Smith, and Attorney General-designate Edwin Meese III. At one point, Hansen quipped that he should have robbed a bank since it would have yielded more money and a smaller penalty than the ethics violation. He warned that financial disclosure violations were common enough that other members would "become the victims of a similar nightmare" if the voted to punish him. The final vote was 354-52 in favor of a reprimand.

Despite the conviction, Hansen had won the Republican nomination for his office. He confidently declared that he would win re-election despite the conviction, saying his constituents would "vote for me if I were chained in the Bastille." Yet on Election Day, Hansen was bested by Democratic challenger Richard Stallings, though it was by a margin of just 170 votes out of more than 200,000 cast.

Hansen appealed his conviction, saying that his offenses should have subjected him to a civil penalty rather than a criminal one. This argument gained more traction among his colleagues, with 122 House members lending their support. However, his conviction was unanimous upheld by a three-judge appellate panel on Aug. 30, 1985. The panel, which included future Supreme Court justices Antonin Scalia and Ruth Bader Ginsburg, noted how the financial disclosure forms explicitly said that violators could be subject to either a civil or criminal penalty.

After exhausting further appeals, Hansen began his sentence in June 1986. At one point, he launched a hunger strike in protest of prison conditions, while also claiming that he usually ate as little as possible because he believed his food was tainted with urine and nasal mucus. Connie sought the Republican nomination to challenge Stallings in the 1986 election, but came in second in a five-way contest; Stallings would ultimately retain Hansen's former seat until 1992.

Hansen was paroled after six months, and released shortly before Christmas.

Short-lived freedom

After leaving Congress, Hansen had turned his attention to political lobbying. He became the chairman of the New Continental Congress, a D.C. consulting firm assisting people with complaints against the federal government. After he completed his prison term, he returned to this work.

However, Hansen predicted that his new career would likely send him back behind bars. His parole terms included stipulations that he not travel outside of Virginia without permission, complete monthly financial reports, and not associate with other ex-felons. Hansen complained that these terms would prevent him from running the firm, since he traveled frequently and worked with people who had earned criminal convictions from tax protests. He said the financial reporting requirement would also be impossible, since he received money from people who didn't want their names turned over to the federal government.

Hansen resumed his tax protests and gave speeches around the country. These activities quickly resulted in a charge of violating his parole. On April 15, 1987, he was arrested at the Omaha airport while awaiting a flight back home. Agents brought him back to Virginia in shackles aboard a chartered flight.

The conditions of the arrest won Hansen sympathy from conservatives as well as many liberals, as it was seen as an excessive response to a nonviolent offense. Critics also charged that the chartered jet was a waste of money, since Hansen had already purchased a plane ticket and could have easily been detained at his destination.

Hansen served another six months in prison. At one point, he called a press conference where he dubbed himself a political prisoner, railed against prison bureaucracy, vowed to sue the Attorney General, and denounced prison conditions, suggesting that every judge and congressman should spend some time behind bars to see what it was like. He also used the prison's pay phone to coordinate a campaign demanding presidential pardon.

Check kiting scheme

Beginning in the late 1980s, Hansen began soliciting loans from individuals to support his political advocacy efforts. He was joined in the endeavor by John Scoresby, a business associate and former regional chairman of the Idaho Republican Party. The duo used a business named Ideal Consultants to oversee the transactions.

Individuals were typically promised a high return on investment and told their money would support organizations with names like the Congressional Accountability Project and Free America Revolution. A typical promise held that investors would be repaid within 30 days at an interest rate of 10 to 20 percent, and could earn a finder's fee of 5 to 10 percent for referring Hansen and Scoresby to other people willing to invest. The duo sometimes offered $1,000 to exchange checks.

It was all an elaborate check kiting scheme, where the passing of worthless checks between individuals allowed Hansen and Scoresby to build up false bank balances and establish lines of credit. A federal indictment would charge that it had involved more than 300 checks and drawn about $29 million from five Idaho banks. 

On Oct. 31, 1990, Hansen filed for bankruptcy for Ideal Consultants as well as the Pocatello Copycat. By this point, the Ideal Consultants account at the Bank of Commerce in Idaho Falls was overdrawn by $2.1 million. Investors who had been duped by the scheme lost $18 million. On March 24, 1992, Hansen and Scoresby were charged with 49 counts of bank fraud.

Not surprisingly, Hansen again argued that the charges were part of a broad vendetta by federal officials. However, his justifications for the fraud were slim. He argued that he had not actually defrauded any of the investors because they had willingly given him money in support of his anti-government efforts. He also contended that he had been motivated by the financial struggles brought on by his previous troubles, and that he would have been able to repay the money if the operation hadn't been discovered and shut down.

Both Hansen and Scoresby were found guilty of 45 of the counts against them on December 12. Surprisingly, Hansen won considerable support among those he had swindled, bolstering his argument that he hadn't truly victimized anyone. About half of the people who had lost money in the scheme filed affidavits with the court urging leniency.


George Hansen in front of a federal courthouse in March 1993 (Source)

While prosecutors sought a 16-year prison sentence for Hansen, the affidavits persuaded Judge Edward Lodge to impose a much lighter term. At sentencing on March 16, 1993, he ordered Hansen to spend four years behind bars and pay a $12,500 fine. Scoresby was sentenced to 21 months in prison and a $6,000 fine.

During the sentencing, Lodge marveled at how many people still supported Hansen even after they were duped out of considerable sums of money.

"I've never seen people who are owed hundreds of thousands of dollars, who don't know how much they are owed, who are willing to eat those losses," he declared. "I've never seen that kind of blind allegiance. The victims are offended that the court would take them as victims."

Later life

Hansen appealed the conviction, arguing that the banks had knowingly participated in his transactions and thus were not deceived. The argument was rejected by a federal court in 1994.

While serving this latest prison sentence, Hansen received some good news. He had been continuously fighting his 1984 ethics conviction, and an obscure Supreme Court ruling in 1995 delivered a belated victory on this front. In Hubbard v. U.S., the court ruled that the 1978 ethics law applied only to members of the executive branch. This vacated Hansen's conviction, restored his federal pension, and resulted in the return of the $40,000 fine he had paid.

After 40 months, Hansen was paroled. He made some headlines in 1997, renewing his criticism of the IRS and calling for its abolition in favor of states collecting the income tax and passing it on to the federal government. He maintained that the agency had engaged in retaliatory behavior against him, including launching an audit after he fielded complaints from his constituents about their federal reimbursements following the Teton Dam disaster in 1976.

Hansen also headed the Utah-based US. Citizens Human Rights Commission, which sought an investigation into the death of federal prisoner Kenneth Trentadue in 1995. Trentadue's death was officially ruled a suicide, but there were allegations that he had been mistaken for a suspect in the Oklahoma City bombing and beaten during his interrogation, with the assault either causing his death or instigating his suicide.

Hansen was still struggling financially at this point. He discounted the idea that he would return to politics, in part because of Connie's opposition and in part because he considered politics to be "for the rich." 

Shortly after his conviction, Hansen was ordered to repay Ann and James Meyers the $299,350 he had taken as part of the check kiting scheme. A default judgement was ordered against him, but Hansen would claim that he did not remember being served in the civil suit and was unaware of the judgement until 2007. He also said he did not have the money to pay this settlement.

The issue persisted until 2009, when the Idaho Supreme Court ruled that he was still obligated to repay the couple. By this point, the interest collecting on the unpaid debt over 16 years had ballooned the sum to $723,927.

Following cardiac problems, Hansen died in Pocatello on Aug. 14, 2014. His obituary sought the last word in establishing his legacy, declaring him a "dedicated champion in fighting for the good people of Idaho and taxpayers all across the country who were subject to abusive federal agencies" whose efforts resulted in him "being on the receiving end of having to defend his good name against the retribution of federal agencies in which he waged the good fight for his constituents."

Sources

Biographical Directory of the United States Congress, "George V. Hansen 1930-2014" at Legacy.com, "Representative Hansen Pleads Guilty to Violation of Election Campaign Act" in the New York Times on Feb. 20 1975, "Judge Saves Hansen From Jail, Terms Representative 'Stupid'" in the New York Times on Apr. 26 1975, "Rep. Hansen Gets Vote of Confidence From Idaho GOP" in the New York Times on Apr. 28 1975, "Hansen's Tehran Trip Fits His Style" in the Washington Post on Nov. 24 1979, "Unorthodox Idaho Congressman" in the New York Times on Nov. 27 1979, "Rep. Hansen Came Here to Battle and Does - Defending Himself" in the Washington Post on Jan. 4 1983, "George Hansen is Found Guilty in Ethics Trial" in the Washington Post on Apr. 3 1984, "Hansen Gets Prison Term for Ethics Act Violation" in the New York Times on Jun. 16 1984, "Hansen Punished by House" in the Washington Post on Aug. 1 1984, "IRS Uses Religion-Politics to Single Out Audit Candidates, Hansen Says" on UPI on Jan. 29 1985, "Ex-Rep. Hansen's Conviction of Ethics Breaches Upheld" in the Washington Post on Aug. 31 1985, "Boston Tea Party Reenacted to Protest IRS" on UPI on Oct. 2 1985, "Ex-Rep. Hansen to Be Paroled" in the South Florida Sun Sentinel on Dec. 20 1986, "Jailed Former Congressman Continues Hunger Strike Over Treatment" in the Associated Press on Apr. 22 1987, "Hanson Parole Revoked" on UPI on May 12 1987, "Hansen Unchained" in the Washington Post on Dec. 13 1987, "Ex-Idaho Congressman Files for Chapter 11" in Deseret News on Nov. 26 1990, "Congressman Who Left in '85 Accused of Fraud" in the Buffalo News on Mar. 25 1992, "Former Congressman is Found Guilty" in the New York Times on Dec. 13 1992, "Hansen to Serve Four Years in Prison for Check-Kiting" in the Deseret News on Mar. 17 1993, "IRS Hasn't Forsaken Ugly Tactics, Former Idaho Congressman Says" in the Deseret News on Nov. 30 1997, "Free and Fired Up, George Hansen Back in a Scrap, Leading Group Probing Inmate's Death" in the Spokesman-Review on Dec. 7 1997, "Former Congressman George Hansen Loses Idaho Supreme Court Appeal" in the Spokesman-Review on Nov. 30 2009, "An Idaho Political Story Extraordinaire" in the Spokesman-Review on Dec. 1 2009, "Former U.S. Rep Hansen Dies" in the Idaho State Journal on Aug. 15 2014, "'George the Dragon Slayer' Dies at 83" in the Lewiston Tribune on Aug. 16 2014, "Idaho Congressman Sentenced to Federal Prison, Dies at 83" in the Washington Post on Aug. 17 2014, "George Hansen, Idaho Congressman and Convicted Swindler, Dies at 83" in the New York Times on Aug. 20 2014, Congressional Record Vol. 114 Part 1, Panama Canal Implementing Legislation, Joint Report of the Task Force to Investigate Certain Allegations Concerning the Holding of American Hostages by Iran in 1980, United States v. George v. Hansen and John F. Scoresby

Thursday, November 11, 2021

William Blount: The First Test of the Senate's Impeachment Powers

Source


William Blount's early biography suggests a man destined for a renowned role in the early history of the United States. Born into privilege, he served in the Revolutionary War, was one of 39 men to sign the U.S. Constitution, and became one of Tennessee's first two Senators.

At the same time, Blount was dogged with serious financial troubles that caused him to make a unwise decision during his time in office. The result was the destruction of his career in the federal government, the creation of the sergeant-at-arms position in the Senate, and the chamber's first test of the nascent nation's impeachment processes.

Early life

Blount was born near Windsor, North Carolina, on March 26, 1749. He was part of a wealthy colonial family of merchants and planters with extensive property holdings along the Pamlico River. This status enabled him to pursue preparatory studies through private tutors and become active in the family's mercantile business.

Anticipating that the colonies would expand beyond the Appalachian Mountains, Blount began purchasing land in the region. He would ultimately acquire more than a million acres of western properties.

In 1771, a populist movement of settlers in the western part of North Carolina began agitating for better economic parity with eastern residents. Blount joined a militia to counter a group of 2,000 of these "Regulators." While the group was largely unarmed and the confrontation was bloodless, the movement's leaders were subsequently executed (although many of their proposed reforms were later adopted).

During the Revolutionary War, Blount became a purchasing agent. He soon became a paymaster for the Continental troops, serving in this capacity until 1780 and seeing active service at the Battle of Camden in South Carolina on August 16, 1780.

Role in early U.S. government

From 1780 to 1784, Blount was a member of the North Carolina state house of commons. He also served as a member of the Continental Congress in 1782 and 1783. He was briefly out of service in 1785, although he became a special agent for North Carolina at the Hopewell Treaty. Returning to the Continental Congress in 1786 and 1787, he became a delegate to the Federal Constitutional Convention in Philadelphia in 1787 and was one of the signatories of the U.S. Constitution. Blount returned to North Carolina to serve in the state senate between 1788 and 1790. 

President George Washington then appointed Blount governor of the Territory South of the Ohio River. The territory comprised lands west of North Carolina, including all of present day Tennessee. Blount held this role through 1796, with the associated title of Superintendent of Indian Affairs. He oversaw the Treaty of Holston, signed in July 1791, which resolved a dispute over the boundary Cherokee lands (although militant members of tribe continued to launch attacks on territory).


A depiction of the Treaty of Holston (Source)

There were rumors that Blount misappropriated funds while in his official position, but a formal investigation turned up no evidence supporting the allegations. In 1796, he chaired the convention which framed the first state constitution of Tennessee. The process essentially circumvented the usual routine of requesting statehood from Congress, which had opted not to take up the issue due to the belief that the state would oppose the Federalist candidate in the upcoming election. 

Tennessee was admitted as a state in June 1796. Blount was elected to one of the two new Senate seats, beginning his term on August 2.

The "Blount Conspiracy"

Blount's term in the Senate began at about the same time that he was facing serious financial difficulties due to his land speculation. He was far from the only who who had thought the lands would be valuable, but instead it proved to be a real estate bubble that prompted the Panic of 1796-1797 when it collapsed. While a 1795 treaty between the United States and Spain had guaranteed Americans free navigation of the Mississippi River, and Great Britain had agreed to the same condition after the Revolution, demand for western lands plummeted due to concerns that France would offer no such guarantee. 

Creditors began to bring suits against Blount. Only his protected status as a U.S. senator protected him from arrest.

Meanwhile, Knoxville tavern keeper John Chisholm had developed a questionable scheme to keep southeastern territories in friendlier hands. He hoped to convince Britain to provide Creek and Cherokee Indians with weapons to establish a force that, when united with white frontiersmen, would be able to launch attacks on Florida. In return, Britain would award him the post of superintendent of Indian affairs and keep Pensacola as an open port. 

The plan was presented to both the British ambassador to the United States and to the British government. While both rejected it, Blount became involved in the plot and expanded its scope to include an attack on New Orleans, which Blount vowed to personally lead. By transferring the city and Florida to Britain, free navigation of the Mississippi would be guaranteed and the value of western lands would likely rise.

On April 1, 1797, Blount made the ill-advised decision to send a letter, which "thinly disguised his desire to arouse the Creek and Cherokee Indians," to Indian interpreter James Carey. The communication included an instruction to read the letter three times before burning it. Instead, the letter wound up in the hands of David Henley, an Indian agent and rival of Blount's.


David Henley (Source)

Henley shared the letter with President John Adams, who recognized that the proposed scheme would violate the U.S. treaty with Spain and could easily lead to war with both that nation and France. On July 3, Adams sent the letter to Congress along with a message informing lawmakers that Attorney General Charles Lee had given the opinion that Blount had committed a crime and was liable to impeachment. As such, Blount's action would be the first test of the impeachment powers granted to Congress in the Constitution.

Each chamber convened special committees to examine the "Blount Conspiracy." On July 6, the Senate committee voted in favor of expelling Blount, saying his conduct was "entirely inconsistent with his public trust." Blount, who had been absent from Congress during this time, reappeared soon after but refused to answer questions on the matter, instead retaining counsel.

One day after the Senate committee's decision, the House of Representatives voted 41-30 along party lines that a senator was an impeachable figure. They informed the Senate that they planned to draft articles of impeachment against Blount, and asked that he be suspended from his seat in the interim but present to answer the charges.

The Senate opted for a harsher action. On July 8, after two of Blount's colleagues testified that the letter was in his handwriting and Blount's defense counsel made his presentation, the Senate voted 25-1 to expel Blount. Six senators, including Blount, didn't vote on the matter, and the only vote against expulsion was due to technical reasons.

Blount sought to return home to Tennessee after posting a $20,000 bond, but instead diverted to North Carolina to tend to his wife after she was injured in a carriage accident. He was nevertheless ordered on July 10 to appear before Congress to answer to the House's impeachment charges, a demand Blount ignored. The Tennessee legislature named Joseph Inslee Anderson, a federal judge, to serve the remainder of Blount's term.

The issue dragged into the new year. On January 14, 1798, the House voted five impeachment articles against Blount. With the embattled ex-senator still refusing to answer the charges, the Senate voted on February 5 to create the position of sergeant-at-arms for the express purpose of compelling Blount's return. The newly established official was still unsuccessful after arriving in Tennessee, in part because they realized that no one in Knoxville was willing to join the posse to bring Blount back to Washington.

In January 1799, Blount was tried in absentia. The debate largely focused on whether the Senate had the authority to prosecute a senator who had already been expelled. Members narrowly defeated a resolution asserting that Blount was an impeachable officer, leaving it unclear whether senators could not be impeached or if Blount specifically couldn't be impeached because he was no longer in office.

On January 14, the Senate voted 14-11 that it lacked jurisdiction and the case against Blount was dismissed.

Later life

The scandal did little to dent Blount's reputation in Tennessee. In fact, it made him more popular since the state's residents regarded him as fighting for the state's economic interests in the face of a disinterested federal government. During the Senate trial, he was elected to the the Tennessee state senate and chosen as its speaker after fellow state senator James White resigned in order for Blount to step into the role.


The Blount Mansion in Knoxville (Source)

Blount managed to resolve his financial troubles by transferring his assets (including the handsome Blount Mansion, a 200-acre farm, 27 slaves, and all of his land investments) to his half-brother. The transfer enabled him to declare himself bankrupt with no personal assets, thus escaping his creditors. While this ruined Blount's credit, his half-brother was able to retain most of the holdings for Blount's children to inherit.

Blount died in Knoxville on March 21, 1800.

The Blount family remained politically active. Blount's son, William Grainger Blount, served as a Tennessee congressman from 1815 to 1819, while his brother Thomas Blount intermittently served as a North Carolina representative. 

Curiously, another member of the Blount family would also take an active role in military operations that sought to accomplish a similar goal to the "Blount Conspiracy." Willie Blount, one of Blount's half-brothers, served as governor of 1809 to 1816. During the War of 1812, he was called on to organize an expedition against West Florida and muster a garrison under Andrew Jackson to defend New Orleans.


Sources: Biographical Directory of the United States Congress, Tennessee Bar Association, William Blount Mansion, NCPEdia, "Expulsion Case of William Blount of Tennessee" at Senate.gov, Soldier-Statesmen of the Constitution by Robert K. Wright Jr. and Morris J. MacGregor Jr., The Creek War by Richard Blackmon

Thursday, November 5, 2020

Thomas J. Lane: Jailhouse Incumbent Overcomes Tax Evasion Conviction

(Source)

Thomas Joseph Lane spent more than two decades in the House of Representatives, but failed to make much of a mark on the history of the chamber. Little information remains about Lane's work, and he wasn't one to generate headlines - with one glaring exception. In 1956, CQ Almanac would refer to Lane as only the second known person to be elected to Congress after serving a prison sentence.

Lane was born in Lawrence, Massachusetts, on July 6, 1898. Following his graduation from high school, he worked as a retail clerk until he was accepted at Suffolk Law School in Boston in 1921. After earning his law degree from this school in 1925, he opened a private practice and later served in the U.S. Army.

Lane's political career began in 1927, when he was elected as a Democrat to the Massachusetts house of representatives. He served in this chamber for a decade, then became a member of the state senate in 1939. He left state politics at the end of 1941 after winning a special election called due to the death of Representative Lawrence J. Connery. 

Lane would win the next nine general elections to the House as well. Representing an economically distressed textile manufacturing region, Lane was known as a labor supporter and New Deal backer who worked to secure federal economic assistance for his district.

On March 5, 1956, Lane was indicted on charges that he had evaded his income taxes between 1949 and 1951. The indictment charged that the congressman had seriously underreported his income in returns filed jointly with his wife, who was not charged. In 1949, the couple's joint income was $57,497 but Lane only reported $14,311, resulting in an income tax of $2,673 instead of $21,206. He reported income of $20,991.03 in 1950 instead of the actual figure of $43,198, resulting in a tax of $4,708 instead of $14,193. The couple earned $50,470 in 1951 but Lane said they had only taken in $30,956.43, giving them a tax bill of $9,515 instead of $20,039. All told, he had skipped out on $38,542 in taxes.

After indictment, Judge Charles E. Wyanski Jr. warned the press that he didn't want a "repetition of what happened in United States versus Delaney." It was a reference to the case of Denis J. Delaney, a former Massachusetts collector of internal revenue who happened to be a cousin of Lane's. Delany's first trial on charges of  bribery and falsifying tax liens in 1951 was scrapped due to unfavorable publicity before trial, though he later pleaded guilty at a second trial.

Lane tried unsuccessfully to change his plea to nolo contendere before pleading guilty on April 30. In a tearful plea for leniency, he declared that "deep down in my heart I know there has never been a willful evading of the tax law." He was sentenced to four months in prison and a $10,000 fine.

He was still behind bars on July 20 when he filed his nomination papers to run for re-election to the House. After being released on September 4, he received twice as many votes as his nearest challenger, state senator Andrew P. Quigley, in the Democratic primary. He defeated his GOP challenger, Robert T. Breed, by a similar margin in the general election.

After being defeated in the 1962 election, Lane returned to private practice. He served as a member of the Governor's Council for the Commonwealth of Massachusetts from 1965 to 1970, was an active member of the American Legion, and a vocal advocate for veterans' rights and benefits.

Lane died on June 14, 1994, in Lawrence.


Sources

Biographical Directory of U.S. Congress, Suffolk University Early Law School Student Profiles, "Lane is Indicted on Tax Evasions" in the New York Times on March 6 1956, "Legislator Gets Jail in Tax Case" in the New York Times on May 1 1956, "85th Congress Potpourri" in the CQ Almanac 1956The Almanac of Political Corruption, Scandals, and Dirty Politics by Kim Long