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Daugherty and many of the Ohio Republicans who had helped Harding achieve the presidency moved to Washington with him, and became mired in allegations of corrupt self-enrichment schemes. Harding's sudden death in August 1923 and the succession of Calvin Coolidge as president happened just as the public was beginning to become aware of the machinations of those the press dubbed the "Ohio Gang." Daugherty was acquitted of charges that he was directly involved in the most famous of these scandals, the teapot dome scandal, where the secretary of the interior was accused of arranging for the private development of federally-owned oil fields in return for a bribe of $100,000. However, Daugherty's failure to aggressively prosecute those involved and further allegations that he obstructed justice by trying to block a congressional investigation resulted in a loss of confidence in the attorney general. An investigation led by Democratic Senator Burton K. Wheeler of Montana resulted in Daugherty's resignation in March 1924.
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