Morales was born in the town of Lajas, Puerto Rico, to parents of Sephardic roots.
During this time, he also started working with the political satire and comedy group Los Rayos Gamma, together with journalist Eddie López.
For this performance he received the Best Actor Award at the Cartagena de Indias Festival in Colombia, 1986.
In 2004, Morales directed Dios los cría II, the sequel to his first film, broadcast by WIPR-TV in Puerto Rico.
[citation needed] It was considered for submission for the 80th Academy Awards but it lost to Maldeamores in a voting of the Puerto Rico Film Corporation.