A state lawyer disciplinary board has dismissed an ethics complaint against West Virginia Attorney General Patrick Morrisey, but the panel warned Morrisey that future rules violations could lead to sanctions.
A Huntington businessman filed the complaint in 2014, alleging Morrisey had an "incurable conflict of interest" with his office's lawsuits against out-of-state prescription drug wholesalers.
After a yearlong investigation, the Lawyer Disciplinary Board determined there were no grounds to charge Morrisey with a violation of the Rules of Profession Conduct, which dictate lawyer ethics, according to an order released Friday.
In a prepared statement, Morrisey said the board "clearly rebuked the unfounded political attacks from my opponents." He called the complaint "frivolous."
"In closing this case, the board reaffirms what I've been saying from the beginning: There were no violations of ethical rules," Morrisey said. "Our position that we have handled this matter appropriately and ethically has been authoritatively affirmed."
Before taking office, Morrisey lobbied for a national trade group that represents many of the drug companies named in the lawsuits.
Morrisey's wife, Denise Henry, lobbies in Washington, D.C., for Cardinal Health, one of the wholesalers being sued by Morrisey's office.
The lawyer board's investigation also revealed that Morrisey, who worked for a law firm in Washington, represented Cardinal Health before he became attorney general in 2013.
The lawyer disciplinary board declined to sanction Morrisey, saying he represented Cardinal Health on Medicare reimbursement regulatory issues - not on prescription drug sales, the subject of his office's lawsuits against Cardinal Health and the other prescription drug distributors.
In statements to the board, Morrisey said the complaint was nothing more than a "political tactic aimed at creating the appearance of an ethical cloud."
Former Attorney General Darrell McGraw filed the lawsuit in 2012. Morrisey inherited the case the following year after defeating McGraw. The lawsuit alleges the drug wholesalers shipped an excessive number of pain pills to West Virginia, helping to fuel the state's prescription drug problem.
Morrisey told the panel that his wife's work for Cardinal Health didn't pose a conflict of interest - and that he could have continued to take part in the lawsuit. In sworn affidavits, Morrisey asserted he had "no material interest in any compensation" his wife received from Cardinal Health, and that her income has "no impact on his own judgment."
But the investigative panel concluded that Morrisey made the right call when he decided to recuse himself from the Cardinal Health lawsuit in July 2013, though the board noted that Morrisey has publicly stated he stepped aside from the case after he took office in January 2013.
The disciplinary board said Morrisey, as a public official, should be held to a higher ethical standard, and his involvement in the Cardinal Health case could be seen as improper conduct. His wife's lobbying firm - she has an ownership stake in it - has received more than $1.5 million in payments from Cardinal Health since Morrisey took office.
"[Morrisey's] involvement with the Cardinal Health case under the existing circumstances could reasonably be seen in the eyes of the public to diminish the integrity of the process and thereby create the appearance of impropriety," wrote Robby Aliff, who headed the Morrisey investigation.
The panel also said it had "concerns" that Morrisey hasn't stepped aside from a companion lawsuit against 11 other drug wholesalers that compete with Cardinal Health. The panel found that the two lawsuits are "essentially indistinguishable" and include the exact same allegations.
The panel concluded that Morrisey could avoid the "appearance of impropriety" by giving up control of that lawsuit, but conceded it would be up to a circuit court judge to force Morrisey to step aside.
In response to questions from the Gazette-Mail, Morrisey announced he would step aside from the lawsuit against the 11 other drug wholesalers. He assigned that case Friday to Chief Operating Officer Anthony Martin and Deputy Attorney General Vaughn Sizemore.
"We will always advance the best ethical practices in our office," Morrisey said.
Records show that Morrisey received a copy of the Lawyer Disciplinary Board's decision Dec. 17.
The ethics complaint against Morrisey also stated that Cardinal Health executives donated $4,000 to Morrisey's campaign in 2012, $3,000 of which came after McGraw's office filed suit against the company. A Cardinal Health vice president also contributed $1,000 to Morrisey's campaign after he defeated McGraw.
Cardinal Health, the second-largest drug distributor in the U.S., paid $2,500 toward Morrisey's inaugural party after he was elected.
The investigative panel found the contributions didn't appear to "amount to extraordinary campaign support," and it wasn't unethical for Morrisey to accept the donations. But the board noted that attorneys general in other states restrict campaign contributions from companies their offices are investigating.
In the end, the disciplinary board didn't charge Morrisey with any ethical violations, but the board wrapped up its findings with these words: "[Morrisey] is strongly warned regarding his duties pursuant to the conflict of interest provisions of the [lawyer] rules of professional conduct, and warned that any future violations of the rules may result in sanction."
Reach Eric Eyre at ericeyre@wvgazettemail.com, 304-348-4869 or follow @ericeyre on Twitter.