On August 29, 1996, Morris resigned from the Clinton campaign after reports surfaced that he had been involved with a prostitute. A tabloid newspaper had obtained and published a set of photographs of Morris and the woman on a Washington, D.C., hotel balcony. The Daily Telegraph reported that in order to impress the woman, Sherry Rowlands, Morris invited her to listen in on conversations with the President. The Telegraph also alleged that Morris had a preference for "toe-sucking and dominance," and that he regaled Rowlands with a version of "Popeye the Sailor Man," performed in his underpants.
Morris resigned on the same day that Bill Clinton spoke and accepted the nomination at the Democratic National Convention. In his resignation statement, he said that "while I served I sought to avoid the limelight because I did not want to become the message. Now, I resign so I will not become the issue." In his response, President Clinton praised Morris as a "friend" and thanked him for his years of service.
Morris was featured on two consecutive covers of Time magazine. The September 2, 1996, issue, which was released before the prostitute story broke, featured Morris as "The Man Who Has Clinton's Ear." The following week, the cover featured Morris and his wife, Eileen McGann, and the headline read "The Morris Mess: After the Fall."