Kentucky State Treasurer James Tate (D-KY) Ran Off With The Entire Kentucky State Treasury (about $247,000)

James William Tate
James William Tate was the Kentucky State Treasurer. He was nicknamed "Honest D**k" because of his good reputation and rapport with his colleagues. The nickname turned ironic, however, when Tate absconded with nearly a quarter of a million dollars from the state's treasury in 1888. He was never found.
Tate's thievery was frequently cited during Kentucky's fourth constitutional convention as a reason to impose term limits on Kentucky's elected officials. The one term limit remains in force on most of Kentucky's officials today, although the state's constitution was amended in 1992 to allow the governor and lieutenant governor to serve two consecutive terms.
In the first quarter of 1888, Tate began a pattern of behavior that would have aroused considerable suspicion in a man of lesser repute. He began depositing only checks in the state's bank account, instead of cash, as was usual. In a short period of time, he paid a number of personal debts. On 14 March 1888, Henry Murray, one of Tate's clerks, noticed him filling two tobacco sacks with gold and silver coins later determined to be worth about$100,000. He departed for Louisville, leaving a note saying he would return in two days. Again, due to the nature of his job and his perceived record of trustworthiness, nobody found his actions questionable. After a week passed with no word from Tate, it became clear what had happened. Records would later show that, after a few days in Louisville, Tate boarded a train for Cincinnati, and then vanished, leaving his wife and daughter behind.
During the investigation that followed, the state's ledger, which was almost indecipherable, was found to show Tate giving some state officials loans that were many times left unpaid and advances on their salaries, including an advance of several thousand dollars to Governor Preston H. Leslie in 1872. Tate had apparently used some of the state's money to make personal investments in mines and real estate. Governor Simon B. Buckner announced that between his atrocious bookkeeping, hisembezzlement and his outright theft, Tate had misappropriated $247,128.50 from the state's treasury.
Impeachment hearings followed in the House of Representatives, and the Senate removed Tate from office, convicting him on four counts. A criminalindictment followed. An 1895 case marked "Not to be officially reported" freed those implicated in the scandal from any obligation to repay the state. "Tateism" became synonymous with political corruption in the state, and Tate's crime was frequently cited at the state's fourth constitutional convention in 1891. The resulting constitutionexpanded the one-term limit that had applied to the governor since 1800 to all statewide elected officials. The legislature and voters adopted a two-term limit for such officials in 1992.
Despite the General Assembly's offer of $5,000 for information leading to Tate's arrest, he was never found. Though his family at first claimed they had heard nothing from Tate and presumed he may have committed suicide, his daughter eventually admitted that she had received at least four letters from her father between April and December 1888. The letters were postmarked from British Columbia (Canada), Japan, China, and San Francisco. Another witness claimed to have seen a letter to one of Tate's friends written in 1890 and postmarked from Brazil. That was the last known communication from "Honest D**k" Tate. An article in The New York Times, citing "friends who should know", claimed that Tate was believed to have died in China in 1890.
SOURCES:
  1. "Politicians Who Disappeared or Died Under Mysterious Circumstances". Retrieved 2007-01-17.Kleber, John E., ed. (1992). "Tate, James W."
  2. The Kentucky Encyclopedia. Associate editors: Thomas D. Clark, Lowell H. Harrison, and James C. Klotter. Lexington, Kentucky: The University Press of Kentucky. ISBN 0-8131-1772-0.

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