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In 1980, the Department of Justice pursued a civil action against William “Billy” Carter, brother of then-President Jimmy Carter, who had allegedly received payments from the Libyan government without registering under the Foreign Agents Registration Act (“FARA”). The matter soon raised questions about possible White House involvement, prompting a Senate investigation into Mr. Carter and his relations with Libya.

Mr. Carter’s dealings with Libya began in 1978, during a time when relations between the United States and Libya were strained. The Nixon administration had refused to permit delivery of eight C-130 military transport aircraft Libya already purchased, and the Carter administration had acted similarly, denying Libya the sale of planes and military supplies. Muammar Gaddafi, Libya’s leader at the time, and his advisors sought a connection with an individual close to the White House, hoping to gain the support of the American people and obtain access to the planes they had purchased.

Libyan officials viewed Mr. Carter’s relationship to the President as potentially useful in improving Libya’s image and access in the United States and invited him to visit Libya at the country’s expense in 1978. Mr. Carter was not one to turn down a free foreign trip and accepted the invitation, traveling to Libya in September 1978, accompanied by several other Georgia businessmen.

During this trip, the Libyan government requested that Mr. Carter establish an organization to foster Libyan-American friendship. Many U.S. officials believed this organization was an attempt to attract more Libyan investment to the United States, but Mr. Carter and his associates insisted it would be a nonprofit. Mr. Carter set up the Libyan-Arab-Georgia Friendship Society upon his return to the U.S., but the organization was never fully incorporated.

Mr. Carter’s work with Libya and his role in creating this friendship organization were well publicized, prompting the Department of Justice (DOJ) to send him a Letter of Inquiry in January 1979. The letter requested further information and addressed his registration obligation regarding his activities with Libya, as the DOJ was concerned that Carter’s efforts to promote closer U.S.-Libyan relations and establish a friendship organization could constitute activities undertaken on behalf of a foreign principal. Mr. Carter ignored this letter and the second one that followed.

Eventually, in Spring of 1979, the FBI opened an investigation into Mr. Carter’s activities to determine whether he was acting in violation of FARA. During the investigation, he denied receiving any compensation from Libya other than the free trip and gifts valued at around $3,000. It was not until June 1980 that the Justice Department learned that the Libyan government had paid Mr. Carter approximately $220,000. Mr. Carter insisted that these payments were loans but lacked evidence to support this characterization. Concerned that continued resistance could prolong the controversy, President Carter called his brother and urged him to register under FARA and fully disclose his relationship with Libya. The DOJ, unsure they could successfully obtain a criminal conviction, agreed to a settlement with Mr. Carter under which he finally registered under FARA on July 14, 1980.

Mr. Carter’s registration, however, was not the end of the controversy, as many government officials were concerned about White House involvement and proposed a congressional investigation into his activities to ensure there had been no improper government involvement. The investigation was launched in late Summer 1980, led by five Democrats and four Republicans, who questioned numerous White House officials and Billy Carter himself regarding Libya. After several months, Senate investigators concluded that Libyan officials had cultivated a relationship with Mr. Carter because of his connection to the President but ultimately found no evidence that Billy Carter had influenced U.S. policy toward Libya.

Despite this outcome, the negative publicity surrounding Billy Carter’s relations with Libya only worsened the political scrutiny facing President Carter during the 1980 election year. That November, President Carter was defeated by Ronald Reagan in the 1980 presidential election.

Special thanks to Sonia de Jong for her efforts on this Blog piece.

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