Daugherty, according to a 1924 Senate investigation into the Justice Department, authorized a system of graft between aides Jess Smith and Howard Mannington. Both Mannington and Smith allegedly took bribes to secure appointments, prison pardons, and freedom from prosecution. A majority of these purchasable pardons were directed towards bootleggers. Cincinnati bootlegger George L. Remus, allegedly paid Jess Smith $250,000 to not prosecute him. Remus, however, was prosecuted, convicted, and sentenced to Atlanta prison. Smith tried to extract more bribe money from Remus to pay for a pardon. The prevalent question at the Justice Department was 'How is he fixed?' Another alleged scandal involving Daugherty concerned the Wright-Martin Aircraft Corp., which supposedly overcharged the federal government by $2.3 million on war contracts. Captain Hazel Scaife tried to bring the company to trial, but was blocked by the Department of Justice. At this time, Daugherty was said to have owned stock in the company and was even adding to these holdings, though he was never charged in the matter.