Forbes Looted Veterans Bureau Funds

Under American president Warren G. Harding, Scottish-American official Charles R. Forbes became the first director of the Veterans' Bureau in 1921 and controlled a huge agency meant to help World War I veterans. Forbes turned the bureau into a corruption scandal, embezzling about $2 million through hospital construction deals, stolen supplies, bribes, and contractor kickbacks. When Harding learned in January 1923 that Forbes had ignored orders to stop selling hospital supplies, he summoned him to the White House and allegedly grabbed him by the throat while demanding his resignation. Forbes resigned in February 1923, and a later fraud conviction sent him to prison.

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