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Former Texas Attorney General Dan Morales was charged Thursday with trying to steer hundreds of millions of dollars in attorney fees from the state's settlement with tobacco companies to a friend.

The indictment also accuses Morales, a Democrat who ran for governor last year, of trying to illegally use campaign contributions for personal use.

"This is a case of an elected official charged with abusing the public trust," U.S. Attorney Johnny Sutton said. "This indictment alleges that he violated that trust by backdating contracts, forging government records and converting campaign contributions to personal use."

Morales, who left office in 1999, told The Austin American-Statesman that he has done nothing wrong, but did not immediately return a call by The Associated Press. He was expected to turn himself in to the FBI on Friday, authorities said.

The 12-count indictment follows a long-running investigation into the legal fees paid out from the state's $17.3 billion settlement with Big Tobacco in 1998. Morales and Marc Murr, a Houston attorney and friend, were both charged with mail fraud and conspiracy.

Morales hired five private attorneys to handle the state's case and they received $3.3 billion in fees from the settlement. The fees soon became the subject of a federal investigation as allegations of wrongdoing surfaced.

Joe Jamail, a Houston attorney who interviewed for the tobacco work but turned it down, claimed Morales asked for $1 million in political contributions from lawyers he considered hiring for the lawsuit.

In December 1997, Murr asked for $520 million for his role as an adviser to Morales, but other attorneys complained Murr did little work on the case. Murr's lawyers did not immediately return a call seeking comment.

Morales left office in January 1999 after not seeking re-election. His successor, now-Sen. John Cornyn, R-Texas, joined federal officials in investigating the fees, prompting Morales to accuse the Republicans of pursuing a politically motivated investigation.

Morales and the five lawyers have repeatedly denied wrongdoing.

In November, Morales wrote a letter to Republican state leaders urging them to pursue a case against the five lawyers to recoup their legal fees, saying he had learned their conduct "may constitute a breach of fiduciary duty to the state."

Michael Tigar, an attorney representing the five lawyers, said Morales was trying to use the matter to boost his own political fortunes.

Morales was also accused of filing a false tax return and lying on a loan application.

According to the indictment, Morales transferred approximately $400,000 from his campaign funds to his personal account to help pay for a down payment and improvements on his new $775,000 home. Morales has said he used proceeds from the sale of another house.

Prosecutors also say he lied to obtain a $600,000 mortgage loan and filed a 1998 tax return he knew undervalued his income.

Morales lost to Tony Sanchez in the Democratic gubernatorial primary last year, and he later endorsed Republican Gov. Rick Perry. The governor has described Morales as a friend.

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