The Iran-Contra Affair took places in the 1980's. It was a secret agreement to provide funds to the Nicaraguan contra rebels from money gained by selling weapons to Iran. The Affair was brought about by two initiatives during the administration of President Ronald Reagan. The First one was an agreement to aid the contras who were at war with the Sandinista government of Nicaragua. The second was "placate moderates" within Iran's government in order to secure American Hostages release and to influence foreign policy.
During the Reagan Presidency, Congress enacted the Boland Amendments, which prohibited the C.I.A, Defense Dept., or any other government agency from providing aid to the Contras. The Reagan administration found went around these rules by using the National Security Council. The NSC under Robert McFarlane and John Poindexter raised private funds for the Contras. This operation was directed by NSC Lt. Col. Oliver North. .
In November of 1986, the scandal hit the papers. Poindexter resigned, and Oliver North was fired. Lawrence E. Walsh was named as special prosecutor. Reagan, Bush, and Casey were used in some testimony but their involvement wasn't really known. State Department and C.I.A officials pleaded guilty in 1991 to withholding information regarding the Contra aid from Congress. All of the people who were convicted of withholding information were pardoned the next year when George Bush took office. This Affair was a wake up call for the country. It raised concern about the nature of congress dealing with foreign affairs and the limitations of the Executive Branch. .