Posted on 01/31/2003 8:33:39 AM PST by Theodore R.
Morales pleads guilty to extortion charge
BY JIM VERTUNO Associated Press Writer
AUSTIN - The brother of former Texas Attorney General Dan Morales pleaded guilty Thursday to a federal charge of attempting to extort $280,000 from former Democratic gubernatorial candidate Tony Sanchez and his campaign.
After entering the plea in court, Michael Morales, 40, said he regrets the blackmail attempt and called it "extremely poor judgment."
"We're here to stand up and accept responsibility for this thing," he said. "I'm a passionate person ... I guess sometimes your heart gets over your head."
During the hearing, prosecutors detailed the calls and faxes to the Sanchez campaign.
Morales, a Grammy-winning record producer, admitted posing as "Wendel Smith" in seeking $280,000 to withhold allegedly damaging information about Sanchez from the media and Sanchez' political rival, Republican Gov. Rick Perry.
Sanchez, a millionaire from Laredo, lost to Perry in the 2002 general election.
U.S. District Judge Sam Sparks set Morales' sentencing for April 11 on the charge of interstate communication of an extortionate threat.
Morales faces a maximum of two years in prison and $250,000 in fines. He was released on his own recognizance and forced to surrender his passport so he can't leave the country.
Sanchez' campaign alerted federal investigators to the blackmail attempt and cooperated with the investigation.
Campaign manager Glenn Smith said the campaign never considered paying the money. He called the blackmail "a blemish on the already tarnished record of Texas politics."
Morales' attorney, John Pinckney, would not say what information Morales threatened to release. Published reports have said it was an allegation of felony criminal activity.
The allegation has never been substantiated.
Although the details of the blackmail attempt included an alleged third party, someone named "Stuart," Pinckney said Morales acted alone.
Morales' brother, former Attorney General Dan Morales, ran for governor last year but lost to Sanchez in the Democratic primary. Dan Morales did not immediately return a phone call seeking comment Thursday.
Federal agents searched Michael Morales' San Antonio business on Oct. 21, finding handwritten notes detailing the extortion scheme and phone cards used to make the threatening calls. They also found documents that Morales claimed contained the information he said could harm Sanchez' reputation.
"Blackmail is always wrong, but it is particularly despicable when it has the potential to affect the election of the highest official in the state of Texas," said U.S. Attorney Johnny Sutton. "My office is committed to protecting the integrity of elections."
During the hearing, Sparks questioned Michael Morales, who wore a black suit and an earring, to make sure he understood the guilty plea and that he was waiving his right to appeal.
"You can't wake up tomorrow and say 'King's X,' I don't want to do this," Sparks said. "Do you understand that.?"
Morales replied: "Yes, your honor."
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