On the morning of June 29, 1989, pandemonium erupted in the corridors of power in the nation's capital. "Homosexual Prostitution Probe Ensnares Official of Bush, Reagan,'' screamed the front-page headline of the Washington Times with the kicker "Call Boys Took Midnight Tour of White House.''
The Times reported, "A homosexual prostitution ring is under investigation by federal and District authorities and includes among its clients key officials of the Reagan and Bush administrations, military officers, congressional aides and U.S. and foreign businessmen with close ties to Washington's political elite.''
The exposeé centered on the role of Craig Spence, a Republican powerbroker known for his lavish "power cocktail'' parties. Spence was well connected. He celebrated Independence Day 1988 by conducting a midnight tour of the White House in the company of two teenage male prostitutes among others in his party.
Two of the ring's call boys were allegedly KGB operatives, according to a retired general from the Defense Intelligence Agency interviewed by the press. But the evidence seemed to point to a CIA sexual blackmail operation, instead. Spence's entire mansion was covered with hidden microphones, two-way mirrors and video cameras, ever ready to capture the indiscretions of Washington's high, mighty and perverse.
Months after the scandal had died down, and a few weeks before Spence allegedly committed suicide in a room of Ritz-Carlton Hotel, in Boston, he was asked who had given him the "key'' to the White House. The Washington Times reported that "Mr. Spence hinted the tours were arranged by 'top level' persons, including Donald Gregg, national security advisor to Vice President Bush, and later U.S. ambassador to South Korea.
Source: http://www.tarpley.net/bush21.htm
