He became embroiled in the Watergate scandal due to his fundraising activities in the early 1970s, some of which supported undercover operatives directed by senior White House figures under Nixon.
Kalmbach was convicted and served 191 days in jail for his part in the scandal, and lost his license to practice law for a time, although he was later reinstated.
Kalmbach declined Nixon's offer to appoint him Under Secretary of Commerce, choosing instead to remain in California and build up his law practice, becoming the former Vice President's private lawyer.
Suddenly major clients from all over the nation were eager to sign up with the attorney who represented the President: United Air Lines, Dart Industries Inc., the Marriott Corp., MCA Inc. (the dominant producer of prime-time TV shows).
Kalmbach served six months in jail and was fined $10,000 for operating an illegal campaign committee and for offering an ambassadorship in return for political support.
He also handled a secret $500,000 fund to finance sabotage and espionage operations in the salary of Donald H. Segretti, a lawyer, whose job it was to discredit the Democrats.
[10] Segretti was paid from re-election funds gathered before the April 7, 1972, cutoff point after which a new law required full disclosure of contributors;[11] Kalmbach told investigators in early 1973 that he had destroyed the contribution records prior to the April 7 date, violating the Federal Corrupt Practices Act, which required the records be maintained for two years and which expired only as of the new law's going into effect.
[14][15] But it was his raising of $3.9 million for a secret Republican congressional campaign committee[16] and promising an ambassador a better post in exchange for $100,000 that led to his conviction and imprisonment for 191 days and a $10,000 fine.