Eugene Hasenfus's plane was shot down by Nicaraguan forces while carrying weapons to the Contra rebels on behalf of the U.S. government; he was subsequently captured, leading to an international controversy.

Eugene H. Hasenfus is a former United States Marine who helped fly weapons shipments on behalf of the U.S. government to the right wing rebel Contras in Nicaragua. The sole survivor after his plane was shot down by the Nicaraguan government in 1986, he was sentenced to 30 years in prison for terrorism and other charges, but pardoned and released the same year. The statements of admission he made to the Sandinista government resulted in a controversy in the U.S. government, after the Reagan administration denied any connection to him.

Corporate Air Services HPF821 was a transport aircraft delivering weapons via clandestine airdrop to the Nicaraguan Contras which was shot down over Nicaragua on 5 October 1986 by a surface-to-air missile. Two U.S. pilots, Wallace "Buzz" Sawyer and William Cooper, and the Nicaraguan nationalist radio operator Freddy Vilches died when the Fairchild C-123 Provider was shot down by a Sandinista soldier using an SA-7 shoulder-launched missile, while Eugene Hasenfus, the U.S. "kicker" responsible for pushing the cargo out of the aircraft, survived by parachuting to safety. The aircraft was carrying "60 collapsible AK-47 rifles, 50,000 AK-47 rifle cartridges, several dozen RPG-7 grenade launchers and 150 pairs of jungle boots".

In the history of Nicaragua, the Contras were the right-wing militias who waged anti-communist guerilla warfare (1979–1990) against the Marxist governments of the Sandinista National Liberation Front and the Junta of National Reconstruction, which came to power after the Nicaraguan Revolution in 1979.

The Iran–Contra affair, also referred to as the Iran–Contra scandal, the Iran Initiative, or simply Iran–Contra, was a political scandal in the United States that centered on arms trafficking to Iran between 1981 and 1986, facilitated by senior officials of the Ronald Reagan administration. As Iran was subject to an arms embargo at the time of the scandal, the sale of arms was deemed illegal. The administration hoped to use the proceeds of the arms sale to fund the Contras, an anti-Sandinista rebel group in Nicaragua. Under the Boland Amendment, passed by Congress in a 411–0 vote and signed into law by Reagan, further funding of the Contras by legislative appropriations was prohibited by Congress, but the Reagan administration continued funding them secretively using non-appropriated funds.