DA refuses to testify; judge dismisses case

DALLAS — A state district judge held the Dallas County district attorney in contempt Thursday and threw out mortgage fraud charges his office brought against an oil fortune heir, blaming the DA’s refusal to answer allegations he did a favor for a friend and campaign donor.

Judge Lena Levario said Thursday it was clear to her that District Attorney Craig Watkins was “calling the shots” when his office investigated Al Hill. Attorneys for Hill argued that Watkins targeted their client as a favor to attorney Lisa Blue, who was embroiled in a multimillion-dollar fee dispute with Hill.

Watkins took the stand only to refuse to answer questions. Levario said she would not immediately take action against Watkins.

Having the case dropped was a major, public blow to Watkins and his office, which fought for months to pursue the case against Hill, the well-known great-grandson of oil titan H.L. Hunt.

Prosecutors introduced evidence to suggest Hill had signed false paperwork to obtain a $500,000 loan, but they could not change Levario’s mind that questions remained about why the case went to a grand jury. Hill’s defense team pointed to records of calls between Watkins and Blue around the time the case was taken to a grand jury, as well as campaign contributions and pledges.

Blue refused to testify last month, invoking her Fifth Amendment right not to incriminate herself.

An attorney for Watkins, meanwhile, said he was bound by attorneyclient privilege as well as a state privilege that allows prosecutors to withhold some notes and other materials in developing a case.

Levario rejected both of those arguments.