Warren G. Harding

The federal government set aside oil reserves for the U.S. Navy. These were supposed to be used only in national emergencies.

The Scheme

• Albert Fall secretly leased the oil reserves at Teapot Dome (Wyoming) and Elk Hills (California) to private oil companies, such as Sinclair Oil and Mammoth Oil, without competitive bidding.


• In return, Fall received large sums of money and gifts, including over $400,000 in loans and cash (equivalent to millions today).

Exposure

• Investigations by the Senate in 1922–1923 revealed the secret deals.


• The scandal became a symbol of government corruption and cronyism.

Legal Consequences

• Albert Fall was convicted of bribery in 1929 and sentenced to one year in federal prison.


• This made him the first former U.S. cabinet member to go to prison for crimes committed in office.