• 8 months ago
Politicians, businessmen, founding fathers; scandal follows them all. Welcome to WatchMojo, and today we’re examining major scandals that ruined an individual’s reputation.

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00:00 "This is where the Ponzi scheme will grow exponentially in the years ahead.
00:06 Into a fraud on steroids."
00:08 Welcome to WatchMojo, and today we're examining major scandals that ruined an individual's
00:13 reputation.
00:14 We'll be focusing on scandals outside of the entertainment industry, so celebrities
00:18 like Harvey Weinstein and Bill Cosby will not be included.
00:21 "The fighting is over.
00:24 Your country, your possessions, and you are mine by right of conquest."
00:28 David Petraeus
00:29 "On Thursday, Petraeus went to the White House to turn in his resignation, the same
00:33 place he has so frequently been called on to serve."
00:36 A prominent Army official, David Petraeus was commander of both United States Central
00:40 Command and the International Security Assistance Force.
00:43 And beginning in September 2011, Petraeus served as director of the CIA, having earned
00:48 the spot after a unanimous 94-0 vote by the U.S. Senate.
00:52 However, his tenure only lasted one year as the FBI discovered that he had been having
00:57 an affair with his own biographer, Paula Broadwell.
00:59 "Well now to the woman at the center of the scandal, biographer Paula Broadwell.
01:03 It was the FBI's investigation into her that ultimately led to the downfall of David
01:07 Petraeus."
01:08 Petraeus resigned on November 9, 2012, having served just 14 months as director.
01:13 But that wasn't all.
01:15 Charges were later brought against Petraeus for giving Broadwell classified information
01:18 while serving as director.
01:20 He pled guilty to the mishandling of classified information and was given two years' probation.
01:24 "The charge is a misdemeanor.
01:26 Prosecutors recommend two years' probation and a $40,000 fine."
01:30 Anthony Weiner
01:31 "I'm here today to again apologize for the personal mistakes I have made."
01:36 Weiner served in the U.S. House of Representatives between 1999 and 2011, which is when he was
01:41 brought down by a very nasty and very public sexting scandal.
01:45 Weiner was caught sending sexually suggestive photos to multiple women and resigned from
01:50 Congress in the wake of the scandal.
01:51 "Unfortunately, the distraction that I have created has made that impossible.
01:57 So today I am announcing my resignation from Congress."
02:00 That was just the beginning of his problems.
02:02 Weiner then ran for New York mayor in 2013, but more suggestive photos were leaked, and
02:07 he ultimately placed fifth.
02:09 It gets worse.
02:10 The FBI discovered that Weiner had been sexting a minor, resulting in both a 21-month prison
02:15 sentence and a divorce from his wife.
02:17 "Anthony Weiner has already lost so much of his congressional seat, the chance to be New
02:21 York City mayor and his wife.
02:23 Now this morning, he's waking up to the reality that on top of everything else, he's now about
02:27 to lose his freedom."
02:29 John Stump
02:30 "That's not my question.
02:31 Did you steal?
02:32 I want to know if you and I are on the same page.
02:33 Did Wells Fargo employees steal from a million to two million of their customers?"
02:40 Beginning in 2016, Wells Fargo was caught in a massive banking scandal that sent enormous
02:45 ripples through the financial world.
02:47 The company enacted various fraudulent practices against their customers, like setting up extra
02:51 checking accounts without their consent and hitting them with fees and charges.
02:55 In this way, Wells Fargo made more money, their sales targets were reached, and their
03:00 stock price continued to increase.
03:01 "By the way, the stock has fallen, clearly has lost some value, but now some people are
03:06 picking it up thinking it's a good value all of a sudden."
03:09 That is, until the scheme was uncovered and the bank was hit with massive fines.
03:13 Wells Fargo was overseen by chairman and CEO John Stumpf, who resigned in the wake of the
03:18 scandal, paid millions in legal fees, and was ultimately banned from the banking industry.
03:23 "I accept full responsibility for all unethical sales practices in our retail banking business."
03:31 Alexander Hamilton
03:32 "That's when I began to pray, Lord, show me how to say no to this.
03:37 I don't know how to say no to this."
03:39 A hugely important figure in the development of America, Alexander Hamilton was a founding
03:44 father and the country's first Secretary of the Treasury.
03:47 Hamilton was paramount in figuring out the country's complex economic system, but his
03:51 professional reputation took a major blow in 1797 when he admitted to having an affair.
03:56 "This is the eye of the hurricane, this is the only way I can protect my legacy."
04:03 Considered the first sex scandal in American history, Hamilton admitted to sleeping with
04:08 a woman named Mariah Reynolds and paying her husband blackmail money to keep it a secret.
04:13 The scandal significantly tarnished Hamilton's reputation, especially among his political
04:17 enemies.
04:18 And while it didn't completely ruin his career, it significantly lessened his power and influence
04:23 in government.
04:32 Zepp Ladder
04:33 "This was the moment back in 2010 when Qatar won its bid to host the World Cup, a huge
04:43 victory for the tiny but incredibly wealthy country of just 3 million."
04:49 A very famous name in football, Zepp Ladder joined FIFA in 1981 as the organization's
04:54 Secretary General.
04:55 He slowly but surely worked his way up the corporate ladder and was made president in
04:59 1998.
05:00 But it was under Ladder's leadership that FIFA was hit with a devastating corruption
05:04 case.
05:05 "From protests like this one, to players taking a stand.
05:12 So how did we get here?"
05:14 Said case is complex and multifaceted, but includes FIFA accepting bribes in return for
05:18 marketing rights, rigging the host bidding process, and embezzling funds.
05:23 The FIFA Ethics Committee fired Ladder in the wake of the scandal and banned him from
05:27 future FIFA activities.
05:29 The highly controversial Kader World Cup is thought to be the result of bribery enacted
05:33 during his reign.
05:40 Elizabeth Holmes
05:41 "Holmes reporting for her 11-year sentence after being found guilty last January of four
05:46 counts of wire fraud in connection to the now infamous blood testing scam in her company
05:51 Theranos."
05:52 To hear Elizabeth Holmes tell it, her company had revolutionized the business of blood testing.
05:57 Holmes started a tech company called Theranos, which claimed to have made a blood testing
06:01 machine that made the process infinitely easier, not to mention faster.
06:05 The business made her rich, and Forbes named Holmes the youngest self-made female billionaire
06:09 in American history.
06:10 "What if you could test your blood in your own home?
06:11 And what if it's not a whole vial, but just a droplet?"
06:20 However, investigators soon began digging into Theranos and found a wide network of
06:24 fraud and deceit.
06:26 The machine didn't work, and Holmes had knowingly misled investors while robbing them of millions.
06:31 She was eventually convicted of fraud and sentenced to 11 years in prison.
06:35 "Elizabeth Holmes taking her last steps of freedom, looking back as her partner and parents
06:41 wave goodbye and blow kisses her way."
06:43 Sam Bankman-Fried
06:44 "Sam Bankman-Fried is facing a long list of charges, including wire fraud and money laundering.
06:51 He's now on the stand to defend himself, but what is his defense?"
06:55 Crypto is one of those hot new trends that everyone wants to try, and Sam Bankman-Fried
06:59 was heading our charge into the future.
07:01 He created FTX, which, by the summer of 2021, was the world's third-largest cryptocurrency
07:06 exchange company.
07:07 But it all collapsed in November of 2022, when FTX was accused of conducting fraudulent
07:13 banking practices.
07:14 "There's so much we don't know.
07:15 There's so much we don't know."
07:17 "Well, here's what we know.
07:18 He's broke."
07:19 "And he's in big trouble."
07:20 Many customers withdrew their money following the accusation, and FTX quickly went bankrupt.
07:26 Bankman-Fried was arrested on various fraud charges and eventually convicted of all seven
07:30 counts.
07:31 In March 2024, the crypto king was given a 25-year prison sentence for his crimes.
07:36 "Breaking news tonight here on Top Story.
07:39 Sam Bankman-Fried guilty on all seven counts of fraud and conspiracy."
07:43 Martin Shkreli
07:44 "Overnight, headlines turned Martin Shkreli into the most hated man in America after he
07:50 raised the price of Daraprim more than 4,000 percent."
07:54 This businessman made headlines in September of 2015 when his company, Turing Pharmaceuticals,
07:58 acquired the license for Daraprim, a drug used to prevent pneumonia and treat parasitic
08:03 diseases.
08:04 Turing increased the price of the drug by over 5,000 percent, meaning its price per
08:09 pill soared from $13.50 to $750.
08:13 "Now, now, now.
08:16 Come on.
08:17 If that sounds like pure evil."
08:23 Later that year, Shkreli was arrested by the FBI and charged with securities fraud.
08:28 While the charges were not related to the Daraprim hike, Shkreli believes that his newfound
08:32 publicity made him a target of federal investigators.
08:36 Shkreli engaged in fraudulent business practices at prior companies and was eventually found
08:41 guilty of securities fraud, being sentenced to seven years in prison.
08:44 "That smile had been replaced by tears as he pleaded with the judge asking for leniency."
08:49 Bernie Madoff
08:50 "Bernie Madoff is breaking his silence.
08:52 The con man behind the biggest Ponzi scheme in history decided to speak out from his prison
08:57 cell and it is no surprise to us that one more time ABC's Barbara Walters got the big
09:02 interview."
09:03 The finance world is equally alluring and intimidating, and sitting at the top of it
09:07 was Bernie Madoff.
09:08 Madoff was as successful as Wall Street gets.
09:11 Chairman of the Nasdaq Stock Exchange and with a company worth billions, he was the
09:15 man that everyone on Wall Street aspires to be.
09:18 "And he was elected to three terms as the chairman of the board of Nasdaq.
09:23 And in the early 90s, he was a trusted, respected Wall Street statesman."
09:29 But there's no accounting for family.
09:32 Madoff's own sons sold him out, confessing to authorities that their father's company
09:36 was nothing but a giant Ponzi scheme that had stolen billions from investors.
09:40 Madoff was arrested by the FBI and pleaded guilty to 11 felonies, resulting in a prison
09:45 sentence of 150 years.
09:48 He died in prison in 2021.
09:51 "My father, what he did was awful and affected the lives of so many people."
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10:13 Richard Nixon
10:14 "Throughout the long and difficult period of Watergate, I have felt it was my duty to
10:19 persevere."
10:20 Bernie Madoff was head of the financial industry, but Richard Nixon was head of the country.
10:25 Careers don't get much more prominent than that.
10:27 Between 1969 and 1974, Nixon served as the 37th president of the United States, presiding
10:34 over the moon landing, pulling out of Vietnam, and establishing the Environmental Protection
10:38 Agency.
10:39 However, his tenure was significantly overshadowed by the infamous Watergate scandal, in which
10:44 men related to Nixon's re-election campaign broke into the headquarters of the Democratic
10:48 National Committee.
10:49 "You might want to send a maintenance man over to that office across the way.
10:54 The lights are off and they must be looking for a fuse box or something because them flashlights,
10:59 they're keeping me awake."
11:00 Their aim was to plant various listening devices, but they were caught and arrested.
11:05 Investigators traced the break-in back to Nixon, who resigned before he could be impeached.
11:10 This offense makes Nixon the only president in American history to resign from office.
11:15 "Therefore, I shall resign the presidency effective at noon tomorrow."
11:20 What do you make of these scandals?
11:22 Let us know in the comments below.
11:23 "Damn!
11:24 I had frequent meetings with her.
11:25 Most of them in my own house.
11:26 At his own house.
11:27 At his own house.
11:28 Damn."
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11:49 (upbeat music)