By: History.com Editors

1986

Iran-Contra scandal begins to unravel

Published: November 13, 2009

Last Updated: March 02, 2025

Eugene Hasenfus is captured by troops of the Sandinista regime in Nicaragua after the plane in which he is flying is shot down; two others on the plane die in the crash. Under questioning, Hasenfus confessed that he was shipping military supplies into Nicaragua for use by the Contras, an anti-Sandinista force that had been created and funded by the United States. Most dramatically, he claimed that operation was really run by the U.S. Central Intelligence Agency (CIA).

The news of Hasenfus’ revelations caused a stir in the United States. Congress, reacting to complaints about corruption and brutality against the Contras, had passed the Boland Amendment in 1984, specifically forbidding the CIA or any other U.S. agency from supporting the Contras. President Ronald Reagan, who saw the Sandinista government in Nicaragua as a puppet of the Soviet Union, had secured U.S. funding for the Contras in 1981 and signed off on the Boland Amendment reluctantly. If Hasenfus’ story was true, then the CIA and Reagan administration had broken the law.

What Was the Iran-Contra Affair?

Learn about the Iran-Contra Affair under President Reagan who secretly supported an anti-Communist group in Nicaragua and funneled weapons to Iranian terrorists in exchange for American hostages. Discover how Lt. Col. Oliver North was found guilty.

Despite denials from the president, Vice President George Bush and other Reagan officials that the CIA had nothing to do with the flight, persistent investigations by journalists and Congress began to unravel the so-called Iran-Contra scandal. The scandal involved the secret sale of U.S. weapons to Iran (which was supposed to help in the release of U.S. hostages in the Middle East). Some of the proceeds from these sales were used to covertly fund the Contra war in Nicaragua.

A Congressional investigation, begun in December 1986, revealed the scheme to the public. Many figures from the Reagan administration were called to testify. These included Marine Lieutenant Colonel Oliver North, who was the action officer in charge of coordinating both the arms sales and funneling of money to the Contras. His testimony, in particular, demonstrated the cavalier attitude taken by the Reagan administration toward the flaunting of congressional resolutions and acts.

The resulting scandal rocked the Reagan administration and shook the public’s confidence in the U.S. government; 11 members of the President’s administration eventually were convicted of a variety of charges related to the scandal. Hasenfus was tried and sentenced to 30 years imprisonment by a Nicaraguan court, but was released just a few weeks later.

Timeline

Also on This Day in History

Discover more of the major events, famous births, notable deaths and everything else history-making that happened on October 5th

About the author

HISTORY.com works with a wide range of writers and editors to create accurate and informative content. All articles are regularly reviewed and updated by the HISTORY.com team. Articles with the “HISTORY.com Editors” byline have been written or edited by the HISTORY.com editors, including Amanda Onion, Missy Sullivan, Matt Mullen and Christian Zapata.

Fact Check

We strive for accuracy and fairness. But if you see something that doesn't look right, click here to contact us! HISTORY reviews and updates its content regularly to ensure it is complete and accurate.

Citation Information

Article title
Iran-Contra scandal begins to unravel
Website Name
History
Date Accessed
March 23, 2025
Publisher
A&E Television Networks
Last Updated
March 02, 2025
Original Published Date
November 13, 2009

History Every Day

Sign Up for "This Day in History"

Uncover fascinating moments from the past every day! Learn something new with key events in history, from the American Revolution to pop culture, crime and more.

By submitting your information, you agree to receive emails from HISTORY and A+E Global Media. You can opt out at any time. You must be 16 years or older and a resident of the United States.