Ex-Navy Secretary Turned Lobbyist Uses $500,000-A-Day Navy Ship to Entertain Business Associates -- At Taxpayers' Expense

"Dalton is no stranger to controversy surrounding the housing market. He was president of a Texas savings and loan that went bankrupt in 1988 during the last housing scandal. At the time, the Federal Deposit Insurance Corp. threatened to charge Dalton and other Seguin Savings Association officials with "breach of fiduciary duty, negligence . . . (and) violations of state and federal law." The case ended in a $3.8-million settlement that avoided any civil charges."