After being elected President of the United States, Grant appointed Sharpe as United States Marshal for the Southern District of New York where he helped root out corruption, including disbanding the Tweed Ring.
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In April 1865, as head of the Bureau of Military Information and assistant provost marshal, he paroled 28,000 Confederate Army soldiers, among them General Robert E. Lee, after the surrender of the Confederate Army of Northern Virginia at Appomattox Court House.