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Profile: Hugh Sloan

Hugh Sloan was a participant or observer in the following events:

Frederick LaRue.Frederick LaRue. [Source: Spartacus Educational]Two White House aides, Frederick LaRue and G. Gordon Liddy, attend a meeting of the Nixon presidential campaign, the Committee to Re-elect the President (CREEP), where it is agreed that the organization will spend $250,000 to conduct an “intelligence gathering” operation against the Democratic Party for the upcoming elections. (Spartacus Schoolnet 8/2007) The members decide, among other things, to plant electronic surveillance devices in the Democratic National Committee (DNC) headquarters (see April-June 1972). LaRue is a veteran of the 1968 Nixon campaign (see November 5, 1968), as is Liddy, a former FBI agent. (Spartacus Schoolnet 8/2007; Spartacus Schoolnet 8/2007) LaRue decides to pay the proposed “Special Investigations Unit,” later informally called the “Plumbers” (see Late June-July 1971), large amounts of “hush money” to keep them quiet. He tasks former New York City policeman Tony Ulasewicz with arranging the payments. LaRue later informs another Nixon aide, Hugh Sloan, that LaRue is prepared to commit perjury if necessary to protect the operation. A 1973 New York Times article will call LaRue “an elusive, anonymous, secret operator at the highest levels of the shattered Nixon power structure.” (Spartacus Schoolnet 8/2007) The FBI will later determine that this decision took place between March 20 and 30, 1972, not 1971 (see March 20-30, 1972). In this case, the FBI timeline is almost certainly in error, since the “Plumbers” break-in of the offices of Daniel Ellsberg’s psychiatrist came well before this date (see September 9, 1971).

Herbert L. “Bart” Porter, the director of scheduling for the Committee to Re-elect the President (CREEP) (see May 1971), gives a statement to the FBI about his knowledge of the Watergate burglary. Porter reluctantly does as his boss and friend, Jeb Magruder, has instructed him to, and lies to the agents. Magruder had assured Porter that White House and CREEP aide G. Gordon Liddy is solely responsible for the burglary, and that no one else—certainly not Magruder—knows anything about the incident. In retrospect, Porter calls Magruder a “master seducer” who used their friendship to help him dodge responsibility for his actions. Magruder criticized Liddy for being a loose cannon, and for spending huge sums of campaign money on “dirty tricks” without higher authorization. According to Magruder, Watergate was jeopardizing the campaign, and needed to be brought into focus. “Call it what you might,” Porter will write, “‘an embellishment of the truth,’ ‘a little white lie,’ or ‘a substitute of one perfectly legal activity for another legal activity’—I did not like any part of it.” But Porter believes Magruder’s protestations of innocence and non-involvement. When the FBI asks Porter about the purpose of money that had passed through his hands from Hugh Sloan, CREEP’s treasurer, to Liddy, Porter answers as instructed: for political intelligence-gathering. Porter believes that his ‘little white lie’ is the end of his involvement in the Watergate investigation, a belief that is quite wrong. (Porter 10/1974)

President Nixon responds to the report by the General Accounting Office (GAO) alleging possible illegal campaign finances in his re-election campaign (see August 22, 1972). Nixon tells reporters, “[W]e have a new law here in which technical violations have occurred and are occurring, apparently on both sides.” When asked what illegalities the Democrats have committed, Nixon says: “I think that will come out in the balance of this week. I will let the political people talk about, but I understand that there have been [violations] on both sides.” The financial director of his re-election campaign, Maurice Stans (see Before April 7, 1972), is an honest man, Nixon says, and is currently investigating the matter “very, very thoroughly, because he doesn’t want any evidence at all to be outstanding, indicating that we have not complied with the law.” Between the GAO’s and the FBI’s investigations, Stans’s own internal investigation, and an internal White House investigation by White House counsel John Dean, Nixon says there is no need for a special Watergate prosecutor, as some have requested. Of the Dean investigation: “I can say categorically that his investigation indicates that no one on the White House staff, no one in this administration, presently employed, was involved in this very bizarre incident [the Watergate burglary—see 2:30 a.m.June 17, 1972]. What really hurts in matters of this sort is not the fact that they occur, because overzealous people in campaigns do things that are wrong. What really hurts is if you try to cover it up.” (Bernstein and Woodward 1974, pp. 57; Gerald R. Ford Library and Museum 7/3/2007) A Washington Post story on the press conference highlights Nixon’s use of the phrase “presently employed,” and notes that several people suspected of campaign wrongdoing—G. Gordon Liddy, E. Howard Hunt, Maurice Stans, Hugh Sloan, and John Mitchell—no longer work for the administration. (Bernstein and Woodward 1974, pp. 57) An assistant attorney general is convinced that the Dean investigation is “a fraud, a pipeline to [White House aide H. R.] Haldeman.” (Bernstein and Woodward 1974, pp. 206) In April 1973, an associate of Dean tells Washington Post reporter Bob Woodward that there was never any such investigation, that Dean had not even discussed anything to do with Watergate as of August 29. “There never was a report,” the associate says. “Dean was asked to gather certain facts. The facts got twisted around to help some other people above him.” (Bernstein and Woodward 1974, pp. 297-298) Dean later tells Watergate investigators that he never conducted any such internal White House investigation (see June 3, 1973). (Bernstein and Woodward 6/3/1973)

Washington Post reporter Carl Bernstein interviews a reluctant source, a bookkeeper for the Committee to Re-elect the President (CREEP). In All the President’s Men (see June 15, 1974), Bernstein and co-author Bob Woodward merely identify her as “The Bookkeeper” (Bernstein and Woodward 1974, pp. 63-68) , but she will later be identified as Judy Hoback. Hoback tries to persuade Bernstein to leave her apartment, but Hoback’s sister, who is also present, seems supportive of Bernstein, and the reporter tries to find ways to stay and winkle information out of Hoback. But Hoback seems willing to play along with Bernstein to an extent. She will not provide damaging information against her boss, Maurice Stans, but otherwise she says she wants the truth to come out. She says the top officials at CREEP have decided to try to pin the blame for everything on former CREEP treasurer Hugh Sloan, for whom she feels great sympathy. She confirms that documents have been destroyed to prevent investigators from finding the truth behind the financial improprieties, and confirms the existence of a secret campaign “slush fund,” saying that CREEP deputy director Jeb Magruder was one official in charge of managing the fund. In a subsequent interview conducted by both reporters, Hoback confirms that G. Gordon Liddy received cash from the fund, as well as CREEP scheduling director Bart Porter. She confirms that several CREEP officials, including personnel director Robert Odle, lied to the investigating grand jury. Like so many other CREEP employees, Hoback has no faith that the FBI is conducting any sort of impartial investigation: “My feeling is that the FBI turns the information in and it goes upstairs,” presumably to the White House. Although Hoback’s information is more tantalizing than useful at the moment, Bernstein and Woodward will use her statements as confirmation for other, subsequent allegations. (Bernstein and Woodward 1974; Woodward 2005, pp. 228)

Hugh Sloan.Hugh Sloan. [Source: Washington Post]The former treasurer for the Campaign to Re-elect the President (CREEP), Hugh Sloan, tells Washington Post reporter Carl Bernstein that the situation with CREEP’s finances is far worse than the Post has reported (see September 14-17, 1972). “That’s why I left, because I suspected the worst,” he says. He refuses to give specifics, citing the continuing FBI investigation and his lawyer’s advice to remain silent. He does confirm that CREEP officials had instructed employees to be evasive when interviewed by the FBI (see August, 1972), and that the committee’s handling of the FBI investigation was managed by CREEP officials Robert Mardian and Frederick LaRue. He also confirms that former CREEP director John Mitchell knew of the illegal campaign “slush fund” (see September 29, 1972). “Mitchell had to know of the funds,” Sloan says. “You don’t just give out that kind of money without the head of the campaign knowing what it’s going for, especially when his people are getting the cash.” Mitchell, LaRue, and Mardian are the three directly responsible for managing the fund, Sloan believes, and are responsible for ordering the destruction of financial records after the Watergate burglary (see 2:30 a.m.June 17, 1972). The previously reported “convention security” fund (see July 7, 1972) and the campaign “slush fund” are one and the same, Sloan confirms. Sloan acknowledges making payouts from the fund, but will not reveal who authorized him to do so. Perhaps most interestingly, Sloan says that the general perception of the Nixon administration and CREEP as two separate, self-contained entities is wrong, that everything CREEP does is managed by senior White House officials. Coming away from the meeting, Bernstein and his colleague Bob Woodward are now sure that the Watergate conspiracy does not end in CREEP, but extends into the White House itself. (Bernstein and Woodward 1974, pp. 79-86)

Washington Post reporter Bob Woodward is phoned by a Post reporter in Los Angeles, Robert Meyers. Meyers has spoken with a fraternity brother of Nixon campaign operative Donald Segretti (see June 27, 1971, and Beyond). The fraternity brother, Larry Young, told Meyers that the FBI learned of Segretti and his campaign operations through the phone records of Watergate burglar E. Howard Hunt (see 2:30 a.m.June 17, 1972). Hunt had called Segretti numerous times to give Segretti instructions about something Young does not know, but “it wasn’t the [campaign] bugging.” Woodward had not known of any Segretti-Hunt connection. Young told Meyers that Segretti admitted working for “a wealthy California Republican lawyer with national connections and I get paid by a special lawyer’s trust fund.” Woodward believes the lawyer in question is Herbert Kalmbach, President Nixon’s personal lawyer; Meyers had asked Young about Kalmbach, but Young did not recognize the name. He does identify the lawyer as having an office in Newport Beach, where Kalmbach has his office. Young believes that Segretti met with both Hunt and White House aide Dwight Chapin (see October 7, 1972). Segretti often talked of going to Miami—the home of most of the Watergate burglars—to meet with Hunt and Chapin. Segretti told Young that when he was in Miami, someone Segretti didn’t identify asked him to organize a group of young Cubans to mount an assault on the Doral Beach Hotel, the location of the Republican National Convention, and make it look as if the Cubans were McGovern campaign workers. Segretti refused to carry out this particular idea, calling it blatantly illegal and violent. Woodward is aware that just such an assault had indeed taken place at the hotel, and that many suspected that there were Republican provocateurs in the crowd of protesters.
Segretti Worried about Being the Fall Guy - When the FBI first contacted Segretti, two weeks before the July convention, Young says that Segretti was shocked that he had not been given advance warning. Segretti worried that he was being set up as a fall guy. In his testimony to the FBI and before the Watergate grand jury, Segretti told them about his connections with Hunt and Chapin, and named the lawyer who paid him. So, Woodward muses, the Justice Department had known of the connections between Segretti, Hunt, and Chapin since June and had not followed up on them. Young agrees to go on the record as a source, and Woodward confirms the story through a Justice Department lawyer. The FBI didn’t consider what Segretti did to be strictly illegal, the lawyer tells Woodward, but “I’m worried about the case. The Bureau is acting funny… there is interest in the case at the top.… [W]e’re not pursuing it.” The lawyer refuses to be more specific. Chapin carefully denies the story. He admits he and Segretti are old college buddies, and does not directly deny that he was Segretti’s White House contact.
Haldeman Connection - A former Nixon administration official tells Woodward, “If Dwight has anything to do with this, it means Haldeman,” referring to Nixon’s chief of staff H. R. Haldeman. “He does what two people tell him to do: Haldeman and Nixon.” The Post story runs on October 15, without naming Kalmbach. The story breaks two new areas of ground: it is the first of its kind to rely on on-the-record sources (Young), and it is the first to directly allege that the Watergate conspiracy reaches into the White House itself and not merely the Nixon re-election campaign. A Time magazine follow-up adds that Chapin had hired Segretti, and names Gordon Strachan, a political aide to Haldeman, had taken part in hiring Segretti as well. Most importantly, Time names Kalmbach as the lawyer who paid Segretti. Irate at being scooped, Woodward quickly confirms Kalmbach’s status as paymaster with a Justice Department attorney, and in a conversation with former campaign treasurer Hugh Sloan, confirms that Segretti was paid out of the campaign’s “slush fund” managed by campaign finance chief Maurice Stans (see September 29, 1972). Kalmbach had distributed far more money than was given to Segretti, Sloan says. (Bernstein and Woodward 1974, pp. 150-159)
Verified - On October 18, the New York Times runs a story that uses telephone records to verify Segretti’s calls from Hunt. (Bernstein and Woodward 1974, pp. 167)

H. R. Haldeman.H. R. Haldeman. [Source: Southern Methodist University]Washington Post reporter Bob Woodward runs into difficulty with his FBI source, W. Mark Felt, the infamous “Deep Throat” (see May 31, 2005). Woodward wants information connecting Nixon’s chief of staff, H. R. Haldeman, to the Nixon campaign “slush fund” (see Early 1970), but Felt, apparently afraid of crossing Haldeman (see October 19, 1972), refuses to provide anything specific.
Origin of Error - Woodward and his colleague, Carl Bernstein, attempt to secure confirmation of Haldeman’s role in Watergate through the treasurer of the Nixon campaign’s secret fund (see September 29, 1972), Hugh Sloan. The reporters misinterpret Sloan’s cautious statements as indirect confirmation that Sloan had testified to the FBI of Haldeman’s involvement. Additionally, they misinterpret guarded “confirmations” from two other sources. On October 25, the Post publishes a story about Sloan’s supposed assertions.
'All Hell Broke Lose' - Sloan’s attorney denies that his client ever made such an assertion in his testimony (Sloan will later confirm that Haldeman was indeed in charge of the secret fund, but he never testified to that fact). As Woodward later writes, “All hell broke loose.” Woodward and his partner Carl Bernstein, both clearly upset, offer to resign from the Post, an offer that is refused. The White House celebrates the error, calling into question every story Bernstein and Woodward wrote for the Post; Republican supporters such as Senator Bob Dole (R-KS) join in. Post executive editor Ben Bradlee—who stands by the story—will later say that the erroneous story is his personal low point in the history of the entire Watergate coverage.
Repercussions - Felt is furious with Woodward for the erroneous story. They may have lost Haldeman, Felt says, and worse, have spooked other sources that might otherwise have come forward. “You’ve got people feeling sorry for Haldeman. I didn’t think that was possible.… You put the investigation back months. It puts everyone on the defensive—editors, FBI agents, everybody has to go into a crouch after this.” The reporters write another story admitting the error about Sloan’s testimony, but saying that Haldeman did indeed control the secret campaign fund. Woodward even quotes Felt, identifying him as “one source,” an unprecedented breach of the procedures they have established in using Felt as a “deep background” source. (Bernstein and Woodward 1974, pp. 173-196; Woodward 2005, pp. 88-92)

Hugh Sloan.Hugh Sloan. [Source: Bettmann / Corbis]Former Nixon campaign treasurer Hugh Sloan testifies during the trial of the “Watergate Seven” (see January 8-11, 1973). Judge John Sirica becomes impatient with the diffident questioning of the prosecutors, excuses the jury, and grills Sloan himself. Sloan admits to disbursing $199,000 in secret campaign funds for G. Gordon Liddy’s covert campaign espionage operations, and that the transaction had been approved by both campaign director John Mitchell and campaign finance director Maurice Stans (see January 23, 1973). (Reeves 2001, pp. 563-564; Spartacus Schoolnet 8/2007)

G. Gordon Liddy.G. Gordon Liddy. [Source: Robert Maass / Corbis]Following on the five guilty pleas of their fellow defendants (see January 8-11, 1973), the final two Watergate defendants, G. Gordon Liddy and James McCord, are found guilty of conspiracy, burglary, and wiretapping Democratic headquarters. (Gerald R. Ford Library and Museum 7/3/2007) During the trial, the court hears damning testimony from confessed Watergate accomplice Alfred Baldwin (see Mid-January 1973) and former Nixon campaign treasurer Hugh Sloan (see January 23, 1973). As the trial progressed, the stolid solidarity of the defendants began to crack, with Liddy’s lawyer attempting to shift the blame for criminal actions onto E. Howard Hunt, who pled guilty three weeks before. McCord’s lawyer won little sympathy from the jury by attacking Judge John Sirica’s impartiality and competence during the trial. Prosecutor Earl Silbert, calling Liddy “the leader of the conspiracy, the moneyman, the boss,” told the jury in his final statement, “[W]hen people cannot get together for political purposes without fear that their premises will be burglarized, their conversations bugged, their phones tapped… you breed distrust, you breed suspicion, you lost confidence, faith and credibility.” He asked for “a verdict that will help restore the faith in the democratic system that has been so damaged by the conduct of these two defendants and their coconspirators.” The jury takes a mere 90 minutes to return its verdict. Sirica orders the two immediately jailed while he considers bail. (Meyer 1/31/1973; Reeves 2001, pp. 567)

Artist’s rendition of McCord’s testimony before the Senate Watergate Committee.Artist’s rendition of McCord’s testimony before the Senate Watergate Committee. [Source: Franklin McMahon / Corbis]The New York Times reports that convicted Watergate burglar James McCord told the Senate Watergate Committee (see March 28, 1973) that the cash payoffs for the burglars came directly from the Nixon re-election campaign (CREEP). McCord’s testimony is the first confirmation that CREEP bought the silence of the burglars during their trial (see January 8-11, 1973). Washington Post reporter Bob Woodward, attempting to confirm earlier information that the CREEP “slush fund” had continued to operate well after the Watergate burglaries (see 2:30 a.m.June 17, 1972), speaks to a CREEP official; the official explodes about the reaction among his colleagues to McCord’s testimony. “John Mitchell [the former head of CREEP] still sits there smoking on his pipe, not saying much… I used to take that for wisdom—you know, keeping your mouth shut. Now I realize that it’s ignorance.… God, I never thought I’d be telling you guys that I didn’t hate what you did. It’s the way the White House has handled this mess that’s undermined the presidency.… I’ve got friends who look at me now and say, ‘How can you have any self-respect and still work for CREEP?’ I’m sick.” Former CREEP treasurer Hugh Sloan confirms that at least $70,000 of the “slush fund” money (see Early 1970 and September 29, 1972)was used to pay off the burglars, all with the approval of CREEP financial director Maurice Stans. Woodward and colleague Carl Bernstein will later write: “That tied the knot. The secret fund had brought the reporters full circle—first the bugging, and now the cover-up.” (Bernstein and Woodward 1974, pp. 282-284)


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