In 1920, Warren G. Harding won the White House in a landslide with his pledge for a “return to normalcy.” And Harding remained a popular president until his sudden death on August 2, 1923 in the presidential suite of San Francisco's Palace Hotel. Over the ensuing months and years, however, scandals involving payments of hush money to conceal extramarital affairs, a child born out of wedlock and criminal activity by cronies he appointed to high office tarnished his legacy. The 29th chief executive now occupies the bottom rungs of historians’ rankings of U.S presidents.
In the months preceding his death, allegations of corruption began to swirl around several members of the “Ohio Gang”—long-time political allies and poker buddies whom Harding had appointed to his cabinet and other powerful positions.
Charles Forbes, head of the newly established Veterans Bureau, was accused of accepting kickbacks from contractors building veterans’ hospitals and illegally selling surplus medical supplies. Forbes resigned in February 1923 after an irate Harding reportedly grabbed him by the throat when he learned about the charges. A Senate investigation in 1924 found that Forbes and his associates stole more than $200 million (nearly $2.8 billion in current dollars) from the bureau. The following year, Forbes was sentenced to two years in prison for fraud, conspiracy and bribery.
Harry Daugherty, a political operative who was appointed attorney general after engineering Harding’s presidential nomination, stood trial twice for conspiracy of selling illegal permits and pardons but was never convicted. Daugherty’s private secretary, Jess Smith, committed suicide in May 1923, a day after Harding informed him of his pending arrest for corruption in a White House meeting.