Prosecutor Says Bush Appointees Interfered With Tobacco Case

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By Carol D. Leonnig
Washington Post Staff Writer
Thursday, March 22, 2007

The leader of the Justice Department team that prosecuted a landmark lawsuit against tobacco companies said yesterday that Bush administration political appointees repeatedly ordered her to take steps that weakened the government's racketeering case.

Sharon Y. Eubanks said Bush loyalists in Attorney General Alberto R. Gonzales's office began micromanaging the team's strategy in the final weeks of the 2005 trial, to the detriment of the government's claim that the industry had conspired to lie to U.S. smokers.

She said a supervisor demanded that she and her trial team drop recommendations that tobacco executives be removed from their corporate positions as a possible penalty. He and two others instructed her to tell key witnesses to change their testimony. And they ordered Eubanks to read verbatim a closing argument they had rewritten for her, she said.

"The political people were pushing the buttons and ordering us to say what we said," Eubanks said. "And because of that, we failed to zealously represent the interests of the American public."

Eubanks, who served for 22 years as a lawyer at Justice, said three political appointees were responsible for the last-minute shifts in the government's tobacco case in June 2005: then-Associate Attorney General Robert D. McCallum, then-Assistant Attorney General Peter Keisler and Keisler's deputy at the time, Dan Meron.

News reports on the strategy changes at the time caused an uproar in Congress and sparked an inquiry by the Justice Department. Government witnesses said they had been asked to change testimony, and one expert withdrew from the case. Government lawyers also announced that they were scaling back a proposed penalty against the industry from $130 billion to $10 billion.

High-ranking Justice Department officials said there was no political meddling in the case, and the department's Office of Professional Responsibility (OPR) concurred after an investigation.

Yesterday was the first time that any of the government lawyers on the case spoke at length publicly about what they considered high-level interference by Justice officials.

Eubanks, who retired from Justice in December 2005, said she is coming forward now because she is concerned about what she called the "overwhelming politicization" of the department demonstrated by the controversy over the firing of eight U.S. attorneys. Lawyers from Justice's civil rights division have made similar claims about being overruled by supervisors in the past.

Eubanks said Congress should not limit its investigation to the dismissal of the U.S. attorneys.

"Political interference is happening at Justice across the department," she said. "When decisions are made now in the Bush attorney general's office, politics is the primary consideration. . . . The rule of law goes out the window."

McCallum, who is now the U.S. ambassador to Australia, said in an interview yesterday that congressional claims of political interference were rejected by the OPR investigation, for which Eubanks was questioned. He said that there was a legitimate disagreement between Eubanks and some career lawyers in the racketeering division about key strategy and that his final decision to reduce the proposed penalty to pay for smoking-cessation programs was vindicated by the judge's ruling that she could not order such a penalty.


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