Posted on 06/25/2003 10:39:13 PM PDT by Diddle E. Squat
AUSTIN -- Former Texas Attorney General Dan Morales was jailed Wednesday after prosecutors alleged that while free on bond on federal charges, he may have lied about his income when he bought two luxury cars.
Morales, who has been indicted on charges of fraud, conspiracy and lying on a loan application for a home, was taken into custody by federal marshals during a routine court hearing on his case and booked into the Travis County Jail.
Prosecutors claimed that although Morales had earlier told the court he couldn't afford to hire a lawyer, he stated on loan applications for a Lexus and a Mercedes that he made $20,000 a month and $20,800 a month.
By making the contradictory statements about his income, prosecutors said, he may have committed new offenses and therefore should have his personal recognizance bond revoked.
The loan application information "was inconsistent with previous testimony of the defendant," said Shana Jones, spokeswoman for U.S. Attorney Johnny Sutton, who is based in San Antonio.
U.S. District Judge Sam Sparks set a hearing for this afternoon to determine if a new bond should be set.
"See you tomorrow," Morales told reporters after his bond was revoked. His federal public defender, Bill Ibbotson, did not return phone calls Wednesday.
In late April, Sparks appointed a federal public defender to the case after Morales said he was unable to hire private counsel.
Morales said at the time he was about to reach an agreement with a team of high-profile attorneys to defend him for about $1 million.
Morales was freed on the personal recognizance bond after he pleaded not guilty to federal mail fraud and conspiracy charges stemming from the state's anti-tobacco settlement and his purchase of a luxurious west Austin home.
A financial affidavit filed by Morales in April showed he had assets of nearly $1 million and debts of about $925,000.
His assets included a $950,000 home, a 1999 automobile worth $15,000, a 1996 boat worth $10,000 and a $10,000 bank account. He listed a mortgage debt of $825,000 and credit card debt of $100,000.
Morales was indicted in March on charges of attempting to defraud the state in the $17.3 billion settlement with the tobacco industry.
The indictment alleges that Morales conspired with longtime friend Marc Murr to steer as much as $520 million in legal fees to Murr when he actually did little work. Murr has pleaded not guilty and asked for a separate trial.
Morales also is accused of misusing political funds to make a down payment on his home, lying on a loan application for a $600,000 mortgage and filing a false income tax return for 1998, his last year in office.
If convicted, Morales faces prison terms of five to 30 years on each charge.
Morales, 46, served two terms as Texas attorney general from 1991 to 1999. He didn't seek re-election in 1998.
While he was under investigation, he unsuccessfully sought the Democratic gubernatorial nomination last year.
After leaving public office, the Harvard Law School graduate worked as a lawyer, with SBC Communications as one of his main clients.
During the campaign he released income tax returns showing $1.1 million in income for 1999 and $442,544 in income for 2000.
Last June, Gov. Rick Perry appointed Morales to an Anti-Crime Commission.
During the fall campaign, Morales endorsed Perry over Democrat Tony Sanchez.
"DEMOCRAT"
"Yes ---but one of the more honest ones."
This speaks volumes about the rats. :)
During the fall campaign, Morales endorsed Perry over Democrat Tony Sanchez.
What I find so amazing is that the Houston Comical attempts to link Morales to Gov Perry rather than the democRAT party. The man is a life-long liberal democRAT.
On second thought, it's the Comical, so I'm not surprised.
Three People...Janet Reno, Mary Jo White and GWB... :(
Dumb Move on Perry's part.."no precieved good deed, goes unpunished?"... :|
His assets included a $950,000 home, a 1999 automobile worth $15,000, a 1996 boat worth $10,000 and a $10,000 bank account. He listed a mortgage debt of $825,000 and credit card debt of $100,000.
I'm no accountant so maybe someone can help me out. If he owes 825K on a 950K house his equity is at most 125K. If he liquidates his boat and car and cleans out his bank account that adds 35K to his net worth. Sounds like his debts exceed his equity by a factor of 4 or 5. Looks to me like the guy is broke. The first paragraph doesn't make sense.
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