Dallas County DA Watkins defies order, skips misconduct hearing

Dallas County DA Watkins defies order, skips misconduct hearing

In Dallas little seems to change. A case involving oilman H.L. Hunt’s family leads to misconduct charges against the first African-American District Attorney. We would like to see the Dallas D.A.s office open a grand jury investigation into the still unsolved murder of President Kennedy.

Dallas County DA Watkins defies order, skips misconduct hearing
By DIANE JENNINGS and SCOTT GOLDSTEIN
Staff Writers, Dallas Morning News
14 February 2013 11:11 PM
SEE PHOTOS AND MORE AT:
http://www.dallasnews.com/news/crime/headlines/20130214-dallas-county-da-watkins-defies-order-skips-misconduct-hearing.ece

In a stunning act of defiance, Dallas County District Attorney Craig Watkins refused to comply with a court order Thursday to appear at a hearing to determine whether he committed prosecutorial misconduct in the mortgage-fraud case of H.L. Hunt’s great-grandson.

At the same proceeding, attorneys for another witness, prominent lawyer Lisa Blue, told the judge the district attorney’s office is under FBI investigation.

That revelation, and claims from Watkins’ representatives that he would not participate on legal principles — and because he was too sick to come down from his office — capped a highly anticipated proceeding.

An FBI spokeswoman declined to comment about a possible investigation. Watkins could not be found in his office after the hearing, according to staff members at his front desk. His spokeswoman, Debbie Denmon, said they were looking into the matter.

“We need additional information ourselves,” she said in an email. The office “has not been notified Mr. Watkins is being investigated by the FBI.”

Blue’s attorney, Terence Hart, a former FBI agent and prosecutor, told State District Judge Lena Levario about a possible investigation early in the proceeding. There was a brief delay, but Levario did not address the issue again after returning.

Hart later advised Blue to invoke her Fifth Amendment right not to testify to avoid self-incrimination. Blue has not been accused of any wrongdoing.

Attorneys for Al Hill III claim the charges that their client committed mortgage fraud in 2009 by submitting false documentation when applying for a $500,000 home-equity loan were brought as a favor to attorneys for Hill III’s father, Al Hill Jr., and Blue. They want the charges dropped.

They say that Hill III is a victim of selective and vindictive prosecution and that his due-process right to a disinterested prosecutor was violated. Hill was in the courtroom but later declined to comment.

“This case has all the hallmarks of a case that would be dismissed by this office,” said Hill III’s attorney, John Hueston.

The criminal charges are a byproduct of a long-running civil dispute between Hill III and several family members, including his father, Al Hill Jr., for his share of the family oil and real estate fortune.

Blue, a friend and Democratic benefactor of the district attorney, represented Hill III in the suit, which was settled in 2010. When Hill III refused to pay legal fees she and two other attorneys said they incurred, the attorneys took him to court.

Two weeks before the $50 million fee dispute was scheduled to go to trial, Hill III and his wife, Erin, learned they were facing criminal charges. They decided not to testify at the fee dispute trial on the advice of their attorneys.

The Hills were ordered to pay $34 million. The amount has since dropped to around $22 million.

The mortgage fraud charges against Erin Hill were later dropped.

In court filings, Blue has denied any wrongdoing, and Watkins’ office has said he did nothing wrong.

But Levario said she felt enough evidence of possible misconduct had been presented that a hearing should go forward. She announced repeatedly that Watkins, who had been subpoenaed, was due to take the stand.

Assistant district attorneys initially said they could not locate Watkins. After prosecutors scrambled to find him, Assistant District Attorney Teresa Guerra Snelson finally informed the court Watkins was not “going to make himself available” to protect the sanctity of prosecutorial investigations.

“It is his position that it would be improper for him to make an appearance in this matter and discuss issues that are clearly within the purview of his discretion as the district attorney,” Snelson said. “This is not an issue about him, this is an issue about all the future district attorneys.”

Levario then asked if Watkins was aware he would only be expected to testify about his discussions with Blue, and Snelson added that Watkins was sick.

“I know him to be ill,” she said. “He is here, he is discharging his responsibilities to the citizens of Dallas in his office. However, your honor, I do not think that he is in a condition to be able to testify in this matter.”

Many in the packed courtroom were shocked that Watkins did not comply with the subpoena.

Hill III’s attorney, Hueston, who was a lead prosecutor in the Enron case, said he was outraged by Watkins’ refusal.

“I haven’t heard that since President Nixon tried to do that with the Watergate tapes,” he said.

Levario said she tries to accommodate sick witnesses and inquired whether Assistant District Attorney Russell Wilson was asking for a continuance. Wilson replied yes, and the hearing was rescheduled for March 7.

Throughout the proceeding, Wilson told the judge the district attorney’s office intends to file appeals on various issues.

“We think it’s an important case for prosecutors throughout the state to be able to conduct their investigations in an unfettered way,” Wilson said after the hearing.

“The issues raised before this court invoke some important issues for the state.”

Wilson and other attorneys raised several claims. For instance, Hill III’s attorneys said their client’s constitutional right to equal protection under the law was violated.

But prosecutors said he wasn’t entitled to that consideration because Hill III, a white, middle-aged man, “is not a member of any special class” with regard to race, ethnicity or gender.

“I don’t take the court’s right to dismiss a case brought by the district attorney lightly,” Levario said. But she added, “If there is evidence that Lisa Blue was calling the shots on whether or not a case was presented to a grand jury … I think that would violate his rights.”

At one point the judge asked prosecutors if there was evidence “that would clear all this up, why don’t you just give it up?”

Wilson said prosecutors typically don’t give that type of information in other pending cases and they do not want to set precedent.

After the hearing, Hueston said he expects to “sweep away the frivolous objections of Craig Watkins’ office to try to keep him from the stand and see him on March 7.”

Hueston said that if Watkins does not appear at the next hearing, he will ask the judge for sanctions.

“We’re going to give him one more chance to show and answer questions,” he said. “If he doesn’t show, yes [we will].”

djennings@dallasnews.com; sgoldstein@dallasnews.com

What’s next?

The district attorney’s office plans to appeal rulings from the hearing. The next hearing is scheduled for March 7.