Daugherty's Ohio lobbying and back-room maneuvers were considered to disqualify him for his office.[218] When the various scandals broke in 1923 and 1924, Daugherty's many enemies were delighted at the prospect of connecting him with the dishonesty, and assumed he had taken part in Teapot Dome, though Fall and Daugherty were not friends. In February 1924, the Senate voted to investigate the Justice Department, where Daugherty remained Attorney General.[219]
Democratic Montana Senator Burton K. Wheeler was on the investigating committee and assumed the role of prosecutor when hearings began on March 12, 1924.[220] Jess Smith had engaged in influence peddling, conspiring with two other Ohioans, Howard Mannington and Fred A. Caskey, to accept payoffs from alcohol bootleggers to secure either immunity from prosecution or the release of liquor from government warehouses. Mannington and Caskey's residence became infamous as the Little Green House on K Street.[221] Some witnesses, such as Smith's divorced wife Roxy Stinson, and corrupt former FBI agent Gaston Means, alleged that Daugherty was personally involved. Coolidge requested Daugherty's resignation when the Attorney General indicated that he would not allow Wheeler's committee access to Justice Department records, and Daugherty complied on March 28, 1924.