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...illegal stock manipulation in the mid-1970s. The timing of the McNeils' attack, so long after the events that had turned them into enemies of Hugel's, fueled suspicions that it may have been instigated by Hugel's CIA foes. When Hugel promptly resigned, his mentor, Casey, suddenly looked vulnerable too. Goldwater, in particular, saw the Hugel fiasco as reason enough to replace Casey for having chosen a misfit for the sensitive...

Author: /time Magazine | Title: Anatomy of a Sad CIA Affair | 8/10/1981 | See Source »

After the Washington Post published the McNeils' charges, other papers followed up with a story about an overlooked May 19 decision by a federal judge; he had ruled that Casey and other directors of Multiponics, a New Orleans agribusiness venture, had misled investors about the finances of the firm. With that, Goldwater swung into action, ordering an investigation of Casey's fitness for his job. Even before the probe began, Goldwater and two other Republican Senators, Ted Stevens of Alaska and William Roth of Delaware, called on Casey to quit...

Author: /time Magazine | Title: Anatomy of a Sad CIA Affair | 8/10/1981 | See Source »

...anti-Hugel faction at the CIA, sometimes using members of an "old boy" network of former agents, pushed for a quick Casey kill. It fed Goldwater the dubious information that Casey had emerged from Multiponics' bankruptcy in 1971 with a profit of some $750,000; he insisted he had lost almost his entire $145,000 investment. The same CIA sources apparently spread a false report that Casey and Hugel had planned a covert operation aimed at the "ultimate" removal of Libya's Strongman Muammar Gadaffi from power. Misinformation was leaked to Newsweek that the House Intelligence Committee...

Author: /time Magazine | Title: Anatomy of a Sad CIA Affair | 8/10/1981 | See Source »

...attacks on Casey mounted, Reagan kept asking aides: "Is there anything to these charges against him?" The White House began to qualify its backing of Casey. But then the old pro counterattacked. He made an effective series of calls on Senators, admitting that he had been wrong in appointing Hugel. Most surprising of all, the reticent, publicity-shy Admiral Inman went on ABC's Night-line TV program to deny rumors that he was leading a coup against Casey. Declared one astonished former CIA spook: "That's like seeing George Smiley appear on the Gong Show...

Author: /time Magazine | Title: Anatomy of a Sad CIA Affair | 8/10/1981 | See Source »

Behind the scenes, Senate Majority Leader Howard Baker worked to keep Goldwater's committee from appearing to lynch Casey first and give him a hearing later. While publicly supporting Goldwater, Baker urged him to appoint Fred D. Thompson, a longtime friend from Tennessee who was Republican counsel in the Senate's Watergate investigation, as chief counsel in the Casey probe. Thompson accepted the post, promising a prompt but careful study. Casey supplied the committee with volumes of documents and demanded a quick hearing...

Author: /time Magazine | Title: Anatomy of a Sad CIA Affair | 8/10/1981 | See Source »

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