At the end of the pageant, Mary Leona Gage of Maryland was declared the winner and was crowned by the outgoing titleholder, Miss Universe 1956 Carol Morris, of Iowa.

[1] [2] The following day, rumors about Gage's past and current circumstances began to circulate, and an investigation was launched by pageant organisers.

As all of these were violations of multiple contest eligibility rules, Gage was immediately disqualified,[1][2] and the title and the associated prize package automatically passed to the 1st runner-up, Charlotte Sheffield of Utah.

By the time the scandal broke publicly, the Miss Universe preliminary judging had already taken place, with Gage chosen as a semi-finalist, and allowed to participate pending the results of the investigation.

It was too late for Sheffield to compete, and it would be the only time the United States has not been represented at the Miss Universe pageant.