Prosecutor Says Bush Appointees Interfered With Tobacco Case

"The political people were . . . ordering us to say what we said," lawyer Sharon Y. Eubanks said. (By Gerald Martineau -- The Washington Post)

"Her claims are totally false in terms of [us] trying to weaken the case," McCallum said. "Her claims were looked into by the Office of Professional Responsibility and were found to be groundless."

In June 2006, the OPR cleared McCallum, concluding that his "actions in seeking and directing changes in the remedies sought were not influenced by any political considerations, but rather were based on good faith efforts to obtain remedies from the district court that would be sustainable on appeal."

Keisler and Meron did not return telephone calls seeking comment.

U.S. District Judge Gladys Kessler ruled last August that tobacco companies violated civil racketeering laws by conspiring for decades to deceive the public about the dangers of their product. She ordered the companies to make major changes in the way cigarettes are marketed. But she said she could not order the monetary penalty proposed by the government.

The Clinton Justice Department brought the unprecedented civil suit against the country's five largest tobacco companies in 1999. President Bush disparaged the tobacco case while campaigning in 2000. After Bush took office, some officials expressed initial doubts about the government's ability to fund the prosecution, Justice's largest.

Eubanks said McCallum, Keisler and Meron largely ignored the case until it became clear that the government might win. She recalled that "things began to get really tense" after McCallum read news reports in April 2005 that one government expert, professor Max H. Bazerman of Harvard Business School, would argue that tobacco officials who engaged in fraud could be removed from their corporate posts. Eubanks said she received an angry call from McCallum on the day the news broke.

"How could you put that in there?" she recalled him saying. "We're not going to be pursuing that."

Afterward, McCallum, Keisler and Meron told Eubanks to approach other witnesses about softening their testimony, Eubanks said.

Matthew Myers of the Campaign for Tobacco-Free Kids was one of the witnesses whom Eubanks asked to change his testimony. Yesterday, he said he found her account to be "the only reasonable explanation" for what transpired.

Two weeks before closing arguments in June, McCallum called for a meeting with Eubanks and her deputy, Stephen Brody, to discuss what McCallum described as "getting the number down" for the $130 billion penalty to create smoking-cessation programs. Brody declined to comment yesterday on the legal team's deliberations, saying that they were private.

During several tense late-night meetings, McCallum repeatedly refused to suggest a figure, Eubanks said, or give clear reasons for the reduction. Brody refused to lower the amount. Finally, on the morning the government was to propose the penalty in court, she said, McCallum ordered it cut to $10 billion.

The most stressful moment, Eubanks said, came when the three appointees ordered her to read word for word a closing argument they had rewritten. The statement explained the validity of seeking a $10 billion penalty.

"I couldn't even look at the judge," she said.

Staff writer Dan Eggen contributed to this report.