During investigation of the Iran-Contra Affair, Lawrence Walsh, the Independent Counsel tasked with investigating the case, prepared multiple felony counts against Abrams. In 1991, Abrams admitted that he knew more than he acknowledged in his congressional testimony, cooperated with Walsh and entered into a plea agreement in which he pleaded guilty to two misdemeanor counts of withholding information from Congress. For failing to cooperate, he would have faced felony charges of perjury over his congressional testimony. He was sentenced to a $50 fine, probation for two years, and 100 hours of community service. Abrams was pardoned by President George H. W. Bush in December 1992.