Ronald Reagan was an invention of the Hollywood conglomerate, MCA, which was founded in 1924 by Jules Stein, a Chicago ophthalmologist who quickly became friendly with the local underworld. Every facet of Reagan’s life, from his careers in acting and politics to his financial successes, were directed by MCA, which, with the help of the Mafia, was the most powerful force in Hollywood from the mid-1940s until the Bronfman family purchased the company in 1995.
Reagan came to Los Angeles in 1937 to make motion pictures, and, in 1940, MCA bought out his talent agency. Lew Wasserman became Reagan's personal agent; he negotiated a million-dollar contract with Warner Brothers on Reagan's behalf. In 1946, Wasserman became the president of MCA, and the following year, Reagan, with his film career already in decline, became the president of the Screen Actors Guild. By his own admission, Reagan immediately aligned himself with the corrupt Teamsters and other mob-connected unions in an effort to combat Hollywood Reds.
A sweetheart relationship developed between MCA and the guild, which culminated in July 1952 during Reagan's fifth consecutive term as SAG's president. Reagan and Laurence Beilenson, an attorney for MCA who had previously served as SAG's general counsel and had represented Reagan in his 1949 divorce from Jane Wyman, negotiated an exclusive blanket waiver with SAG that permitted MCA to engage in unlimited film production. The agreement violated SAG's bylaws, which prohibited talent agencies from employing their own clients, and no other talent agency was granted a similar agreement at that time. A Justice Department memorandum indicated that the waiver became "the central fact of MCA's whole rise to power."
At the end of Reagan's fifth term, he began to have serious financial problems, particularly with the IRS. In response, MCA negotiated a deal with the Last Frontier Hotel in Las Vegas--which was then operated by Chicago mobsters--for Reagan to host a song-and-dance show for two weeks and to receive enough money to cover his back tax debt. When Reagan returned to Hollywood, MCA, through its newly formed Revue Productions, hired him to host its flagship television program, The General Electric Theater for $125,000 a year. He was paid additional fees when he produced episodes for the series.
http://www.moldea.com/ReaganRedux.htmlIn 1939, MCA's headquarters moved from Chicago to Beverly Hills, California, creating a movie division and beginning to acquire talent agencies and represent established actors such as James Stewart, Henry Fonda, Bette Davis, and Ronald Reagan, whom Wasserman became very close with personally. In later decades, Wasserman would become a guiding force in Reagan's political ambition by helping Reagan to win the presidency of the Screen Actors Guild (SAG), then election as Governor of California in 1966, and finally President of the United States in 1980.
By the end of the 1930s, MCA would become the largest talent agency in the world with over 700 clients which includes movie stars, recording artists, Broadway actors, radio stars, producers, and directors. Its aggressive acquisition of its clientele in all entertainment sectors earned MCA's nickname of The Octopus. This behavior led U.S. Department of Justice agents to investigate not only whether MCA was a monopoly breaking anti-trust laws, but also its suspected connections to underworld criminal activities. This investigation would continue for the next few decades.
http://en.wikipedia.org/wiki/MCA_Inc.