The downfall of the regime is attributed to its embezzlement of millions of dollars in foreign aid that was given to the country in response to the devastating 1972 earthquake . Many moderate supporters of the dictatorship began abandoning it in the face of growing revolutionary sentiment . The Sandinista ( FSLN ) movement organized relief , began to expand its influence and assumed the leadership of the revolution . A popular uprising brought the FSLN to power in 1979 . The United States had long been opposed to the socialist FSLN , and after the revolution the Carter administration moved quickly to support the Somocistas with financial and material aid . When Ronald Reagan took office , he augmented the direct support to an anti-Sandinista group , called the Contras , which included factions loyal to the former dictatorship . When Congress prohibited further funding to the Contras , Oliver North continued the funding through arms sales that were also prohibited by Congress
1972 earthquake
1972 Nicaragua earthquake
Nicaragua v. United States