Deaver, Michael – Investigation

SCOPE NOTE

Michael K. Deaver was a long-time associate and personal friend to President Ronald Reagan and close confidente of First Lady Nancy Reagan. He first worked with the Reagans as a Republican Party official in California in the 1960s. Deaver worked for then Governor Reagan in both gubernatorial administrations and he helped run the unsuccessful 1976 Reagan presidential bid, and the successful 1980 campaign. Once Reagan took office, Deaver was given the post of Deputy Chief of Staff, a position created for him, and he served in this position from 1981-March 1985.

After leaving the White House in 1985, Deaver formed a lobbying and public relations firm, Michael K. Deaver and Associates. Quick success followed with clients such as the governments of Canada (particularly acid rain issues), South Korea, Saudi Arabia, and the U.S. territory of Puerto Rico. His clients also included TWA, Phillip Morris, and Smith, Barney, Harris & Upham Co. Deaver continued to have wide access to the White House. He retained his White House pass, his access to the White House tennis courts and continued to receive the President’s confidential daily schedule.

The Ethics in Government Act of 1978 states that a former government employee is forbidden from lobbying any Administration colleagues for a full two years after he or she has left their government post. Deaver was immediately suspected of violating this Act. A high-profile Time magazine cover story on his influence peddling in 1986 only made speculation worse. Congress began investigations and heard testimony from Deaver. Deaver readily agreed with Congressman John Dingell’s (D-Mich.) call for an independent counsel investigation. The Independent Counsel Act was invoked in May 1986, and Whitney North Seymour was appointed to investigate. Deaver cooperated throughout the investigation and willingly gave testimony to Congress and a grand jury.

In March of 1987, Deaver was indicted on five counts of perjury, for lying in Congressional and grand jury testimony. The indictment focused on his testimony regarding his representation of Canada (acid rain issues), South Korea, TWA, Smith Barney and the U.S. territory of Puerto Rico. A seven week trial followed some time after the indictment. Deaver and his attorneys were so confident in his stated innocence and the weakness of the government’s case no witnesses were called for the defense. In December 1987, after a 27 hour deliberation, the jury convicted Deaver on three counts of perjury. He was sentenced to 3 years in prison, a $100,000 fine and 1500 hours of community service. Deaver’s prison sentence was converted to three years probation.

President Reagan noted in his personal diary that he considered pardoning Deaver at the very end of his Administration, but Deaver did not seek or wish for the pardon.