Newly public FBI records from the 1970s reveal an investigation into Home Depot cofounders over alleged anti-union bribery

• Bernie Marcus and Arthur Blank founded Home Depot in 1978 after they were fired from retailer Handy Dan.
• FBI records show the pair were investigated over claims they tried to bribe Handy Dan workers to decertify their union.
• The investigation ended in 1983 when a prosecutor determined the case was too old and the evidence was "insufficient."

The Home Depot cofounders Bernie Marcus and Arthur Blank were investigated by the FBI in the 1970s and '80s over claims they used a $140,000 "slush fund" to try to bribe employees at a California home-improvement retailer to decertify their union, newly public records show.

The investigation spanned from 1978 to 1983 and focused on their time as executives at Handy Dan Home Improvement Centers. Marcus, who died at 95 in 2024 with a net worth of more than $10 billion, served as Handy Dan's president. Blank, now 82 and worth over $9 billion, was the company's treasurer.

Marcus and Blank were fired in 1978 after Handy Dan's corporate parent said in securities filings that it found "unauthorized and unacceptable business practices" at the company, The Wall Street Journal reported at the time. Handy Dan's corporate parent later said the two men used company funds to pay employees to favor union decertification, the Journal reported.

The FBI began investigating in late 1978 after a lawyer for a retail workers labor union filed a complaint to federal authorities based on The Wall Street Journal story.

Federal agents said their investigation substantiated the claim, according to the records. No charges were ever brought; the records cited "insufficient" evidence and "statute of limitations problems." The effort to decertify the union was ultimately unsuccessful.

"Investigation revealed that from early 1977 through early 1978 approximately $140,000 in corporate funds" were paid to workers to influence them, an FBI agent wrote in a memo. "Numerous employees have admitted receiving cash (over and above wages) usually received in plain envelopes."

The FBI interviewed at least eight witnesses, whose names were largely redacted in the records. One anti-union employee told investigators that money "was only furnished to those whom the company thought would eventually vote for the decertification." Clinton Doolen, a manager who died in 1992, recalled Marcus saying that "money was no object" when it came to dislodging the union, the records show.

"Marcus was strictly against the unions and highly obsessed with getting the union completely out," another witness told the FBI. The witness said Marcus told them he was willing to use any means to break the union, and the witness "could see that Marcus really meant it."

Marcus offered a different version of events. In the 1999 book "Built From Scratch," he said he learned some Handy Dan employees wanted to disband their union. He said he hired a lawyer and "directed our personnel department to do whatever fell within the legal guidelines" to support them.

He said that the chairman of Handy Dan's parent company twisted the truth and used an internal investigation "as a tool to eliminate me," and that "neither the Justice Department nor the SEC instigated investigations."

FBI records show Marcus testified in a Securities and Exchange Commission proceeding in July 1978, about three months after he was fired. He declined, through a lawyer, to be interviewed by the FBI. It's not clear if Blank was a subject of inquiry by the SEC.

The SEC and two top-ranking officials at the Marcus Foundation didn't reply to comment requests, nor did Marcus' son Frederick Marcus, who is a director of the foundation. Representatives for Blank, Home Depot, the Justice Department, and the FBI declined to comment.

Business Insider obtained the FBI records in response to a Freedom of Information Act request. Blank's name was redacted, but his job title matched that of the subject in question. A third person whose name was redacted was also a subject of the investigation.

The FBI submitted a "prosecutive report" to the Justice Department in March 1982. A year later, a federal prosecutor decided not to move forward with the case. The prosecutor didn't believe there was enough evidence against Marcus, Blank, and the third person to indict them, and the union election at the center of the investigation was more than five years old, an FBI memo said.

Marcus and Blank founded Home Depot in 1978, eventually transforming it into the world's largest home-improvement retail company. Its stores aren't unionized; in 2022, the last time a petition was filed at a store for a union election, union advocates suffered a resounding defeat.

Marcus' anti-union sentiments were well known. In 2008, he called a bill that would make it easier for employees to form unions "the demise of civilization," and in 2010, he founded the Job Creators Network, which has opposed bills that would increase union power.

Both men have been significant political donors. Blank has primarily supported Democratic candidates, while Marcus gave millions to Republican candidates, and once said that retail executives who weren't helping Republicans "should be shot."

Read the documents here: