Posted on 04/29/2003 6:41:53 AM PDT by MeekOneGOP
Morales is given a public defender
Former AG says he's not broke, hopes to have paid counsel soon
04/29/2003
AUSTIN – Former Attorney General Dan Morales, accused of illegally using campaign funds to help buy his $1.2 million house, is being represented by a government-paid public defender because he says he cannot afford his own lawyer.
Mr. Morales said in an interview, however, that he isn't broke and hopes to have paid attorneys on board soon – probably former U.S. Attorney Paul Coggins of Dallas and nationally recognized defense lawyer Gerry Goldstein of San Antonio.
"I anticipate that they will be retained, hopefully in the very near future," said Mr. Morales, a former rising Democratic star, keeping an upbeat tone.
He said he never intended to plead poverty when he asked for a court-paid lawyer Friday.
"I can't do that," he said. "I've got significant assets. Some of them are more liquid than others."
The indictment against Mr. Morales, along with public tax records, suggests that he has at least $500,000 of equity in his home.
The standard of eligibility for a court-paid lawyer is that a person is not "financially able to obtain counsel," a measure Mr. Morales said he will continue to meet until he can leverage his assets into cash.
The guidelines also say that a person needs to show that he cannot afford "qualified" counsel – not necessarily the high-dollar, big-name barristers Mr. Morales is maneuvering to retain. The litigation is expected to be complex and costly, with the government having collected nearly 200 file drawers of evidence.
Judge doubts need
U.S. District Judge Sam Sparks, who has set jury selection in the case for Oct. 7, expressed skepticism about Mr. Morales' inability to pay in a written order appointing assistant federal public defender Abe Hernandez.
"The Court has grave concerns whether the Defendant Morales is entitled to appointed counsel without payment to the United States," the judge wrote, ordering Mr. Morales to provide by Friday detailed, sworn information regarding his income, living expenses, employment and his efforts to hire an attorney.
The demand for information could be used by the judge to determine whether Mr. Morales is needlessly insisting on hiring the most expensive legal guns around.
Mr. Goldstein confirmed that negotiations are ongoing.
"I look forward to representing him in the future, if that should come to pass," he said. "There is no bad blood."
Assistant U.S. Attorney Sharon Pierce, a prosecutor on the Morales case, declined to comment on the public defender appointment.
On April 16, Judge Sparks had directed Mr. Morales to show up in court with his own lawyer in a week, or to declare his intention to represent himself or ask for a public defender. Mr. Morales, having failed to hire a private lawyer by Friday, filed his appointment request.
Mr. Morales said Monday that he expects to eventually be ordered to reimburse the federal government for his court-appointed lawyer.
The judge told Mr. Morales to file his financial information under seal. Court officials refused to release a financial affidavit already filed by Mr. Morales, citing a pending request by the public defender to have the judge seal it.
Some details of his finances were made public in the indictment against Mr. Morales. That document said Mr. Morales made a cash down payment of $155,000 on the purchase of his house for $775,000 in January 1998. According to tax rolls, the value of the house peaked in 2001 at $1.3 million, but decreased last year to $1.19 million in a slumping Austin real estate market.
If those numbers are accurate and Mr. Morales hasn't already borrowed against his house, that suggests he has at least $570,000 equity in his house.
The indictment also indicates he was paid $832,000 as a consultant to SBC Communications Inc. after he left office in 1998. While the charge against him says $500,000 of that money was used to cover improper expenditures made from campaign funds, it does not account for the other $332,000.
Tobacco case charges
Mr. Morales, who served in the Texas House and eight years as attorney general, did not seek re-election in 1998 after winning a $17.3 billion settlement from the tobacco companies. He ran an unsuccessful campaign for his party's nomination for governor last year.
He is accused of fraudulently trying to secure millions in attorney's fees for Houston lawyer and co-defendant Marc Murr for work never performed on the tobacco suit. The defendants are accused of backdating contracts and forging government documents in an effort to secure millions in tobacco funds.
Mr. Morales also is accused of converting campaign funds to personal use, falsifying a loan application and under-reporting his income on his 1998 federal income tax return.
If convicted, he could be sentenced to up to 80 years in prison and fined $3.6 million.
Meanwhile, Judge Sparks is considering a motion filed under seal by tobacco lawyers to limit the use of evidence gathered and exchanged in the case.
Also pending before the judge is a request by Mr. Murr's attorneys to have his case tried separately, since most of the 12 counts in the indictment make no reference to their client. Mr. Murr has pleaded not guilty to four counts of mail fraud and conspiracy.
"The whole case is about Morales, not Murr," wrote Houston defense lawyer Mike Ramsey. "Morales is a lightning rod for controversy."
E-mail pslover@dallasnews.com
Really? And which party was that? </sarcasm>
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