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Profile: Billy Carter

Billy Carter was a participant or observer in the following events:

Billy Carter.Billy Carter. [Source: Bettmann / Corbis]An Italian-American disinformation campaign has a profound effect on the US presidential election of 1980. With the assistance of Italian intelligence (SISMI) and the shadowy right-wing organization called “Propaganda Due,” or P-2 (see 1981), American neoconservative Michael Ledeen organizes a smear campaign against Billy Carter, the brother of US President Jimmy Carter. (Billy Carter is a self-proclaimed alcoholic whose escapades have provoked much hilarity among the US press and an equal amount of embarrassment in the White House.) In the weeks before the election, Ledeen publishes articles in the British and American press accusing Billy Carter of having untoward and perhaps illegal financial dealings with Libyan dictator Mu’ammar al-Qadhafi. Billy Carter is forced to admit that he did accept a $200,000 loan from al-Qadhafi’s regime. The ensuing scandal becomes known as “Billygate.” It is not known for sure what impact the scandal will eventually have on the race between President Carter and his Republican challenger, Ronald Reagan; what is known is that “Billygate” erupted in 1979, was investigated, and had died down. Then, less than a month before the November 1980 election, Ledeen and Arnaud de Borchgrave write an article for the US’s New Republic and Britain’s Now magazine that falsely alleges Billy Carter took an additional $50,000 from al-Qadhafi, and worse, met secretly with Palestinian leader Yasser Arafat. The articles reignite the scandal in time to affect the election. In 1985, a Wall Street Journal investigation will find that “Billygate” is an orchestrated attempt by Ledeen and SISMI to throw the election to Reagan. Ledeen, who used SISMI sources to unearth financial information on Billy Carter, was himself paid $120,000 by SISMI for “Billygate” and other projects. Ledeen has a code name, Z-3, and is paid through a Bermuda bank account. Ledeen will later admit that his consulting firm, ISI, may have accepted SISMI money, and will claim he can’t remember if he has a coded identity. P-2 operative Francesco Pazienza will be convicted in absentia on multiple charges stemming from the “Billygate” disinformation campaign, including extortion and fraud. Ledeen will not be charged in the Italian court that convicts Pazienza, but prosecutors will cite his participation in their arguments against Pazienza. Ledeen will deny any involvement with either Pazienza or P-2, and deny any connection to any disinformation schemes. In fact, Ledeen will say he doesn’t even believe P-2 exists. After Reagan takes office, Ledeen will be made a special assistant to chief of staff Alexander Haig, and later will become a staff member of Reagan’s National Security Council, where he will play a key role in setting up the arms-for-hostages deal with Iran. [Unger, 2007, pp. 233-234, 388]

Entity Tags: Ronald Reagan, Billy Carter, Arnaud de Borchgrave, Alexander M. Haig, Jr., Carter administration, Francesco Pazienza, James Earl “Jimmy” Carter, Jr., Michael Ledeen, Mu’ammar al-Qadhafi, Wall Street Journal, Yasser Arafat, SISMI, Propaganda Due

Timeline Tags: Domestic Propaganda, Elections Before 2000

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