Dan Morales. As Attorney General, Morales reached a $17 billion settlement with big tobacco companies. He also authored the controversial state interpretation of the Hopwood v. Texas case, which ended all affirmative action in higher education in Texas until the United States Supreme Court reversed Hopwood in 2003.
In October 2003, Morales reached a plea deal and admitted to having falsified documents in an attempt to give another lawyer a chunk of the state's tobacco settlement. Before the agreement, Morales had faced trial on twelve counts that included conspiracy and using political money for private purposes.
Those changes, Morales came to learn, were best addressed at the legislative level, so he felt compelled to run in 1984 against the incumbent legislator and defense attorney Joe Hernandez.
Morales angered many in his party, but he was undefeated against Republican opponents, turned out Hispanic voters in record numbers, and because he was only 34 when he was elected attorney general in 1990, had a longer shelf life than most of the party’s aging stars.
He took office in 1991, when Democrats still held the House, the Senate, and most statewide offices. Within a few days of his arrival, Lieutenant Governor Bob Bullock and House Speaker Gib Lewis called Morales to a legislative summit in the Speaker’s office to devise a redistricting plan favorable to Democrats.
The second flaw was Jamail’s May 1998 affidavit alleging that Morales had solicited $1 million from him to get in on the tobacco deal.
On its face, the suit was a grand success. Morales hired a team of five private attorneys—known collectively as the Big Five—and forced the nation’s tobacco companies to pay the state $17.3 billion in damages.
Morales said his supporters urged him to get into the governor’s race so that if elected he could protect the billions in tobacco money from Republicans who would use it to plug a deficit instead of paying for children’s health care.
Second, Morales became a punching bag in the 1998 election for attorney general, even though he decided not to seek reelection: Republican nominee John Cornyn made the tobacco fees the centerpiece of his campaign. Third, the U.S. Attorney’s office launched an investigation into Morales’ handling of those fees.
On March 28, 1996 , Texas became the seventh state to file in the national tobacco war started by Mike Moore. TEXAS V. AMERICAN TOBACCO WAS in most ways Dan Morales’ finest hour. Even before the suit was filed, he proved he could play in the same league as Big Tobacco.
Dan Morales, a former Texas attorney general who served time in federal prison, wants the state to look over some sealed documents that he thinks might be worth a lot of money. The hard part is finding someone who will listen.
One problem is that his tale hinges on documents sealed by federal court order. Morales, as attorney general, hired a gang of prominent trial lawyers to sue big tobacco companies, alleging that their products had done billions in damage to the health of Texans who had to be treated, at taxpayer expense, through Medicaid.
Dan Morales wants Texas to reopen its multibillion-dollar tobacco litigation, suggesting the state might be able to claim all or some of the $3.2 billion awarded to outside attorneys in that case.
Texas Tribune donors or members may be quoted or mentioned in our stories, or may be the subject of them. For a complete list of contributors, click here.
Former Texas Attorney General and gubernatorial candidate Dan Morales was indicted on federal charges related to his handling of the state's tobacco lawsuit and settlement when he was AG. He was also accused of converting campaign money to his personal use, lying on a federal income tax return, and lying on a loan application.
The election advertising allegations against the Texas Association of Business won't be a topic for the House General Investigating panel; the chairman of that committee says he talked to prosecutors and then concluded a House investigation would interfere with an ongoing grand jury inquiry.
TEXARKANA -- In at least one respect, Dan Morales, the federal prison inmate, is not much different from Dan Morales, the two-term Texas attorney general.
Morales also pleaded guilty to filing a false income tax return in 1998, the year he transferred $400,000 from his political fund, allegedly to help buy a $775,000 house, which he and his wife are now trying to sell.
Morales is in prison for trying to divert as much as $520 million in legal fees to a sixth lawyer -- longtime friend Marc Murr -- who other participants said did little, if any, work on the tobacco case.
The former attorney general pleaded guilty to one count of mail fraud for attempting to persuade an arbitration panel to award Murr the payments . Murr also pleaded guilty to a similar charge and was sentenced to six months in federal prison.
Morales previously had said he hired Murr to help him keep an eye on the other lawyers' work , and in the prison interview he continued to maintain that Murr was a "valuable source of impartial, unconflicted legal advice."
He insists that court documents sealed by U.S. District Judge Sam Sparks of Austin, the presiding judge in his case, could show wrongdoing by those lawyers, who were awarded $3.3 billion in legal fees in the tobacco settlement.
But now that he is inmate No. 28928-180 rather than the state's No. 1 lawyer, Morales is more careful about what he will allow himself to be quoted as saying.