In Houston, Texas Attorney General Ken Paxton and prosecutors have reached an agreement to dismiss nearly nine-year-old criminal charges against him. This resolution comes with the condition that the Republican state official completes community supervision and reimburses approximately $270,000. The 18-month intervention agreement, unveiled during a pretrial hearing that had been postponed from the previous week, also mandates 100 hours of community service and 15 hours of legal education classes with an emphasis on ethics.
Paxton was slated to stand trial on April 15 on three felony counts, including two for securities fraud. Should Paxton fulfill the terms of the deal, these charges will be expunged from his record. Paxton, present in the courtroom on Tuesday, stated he did not plead guilty as part of the agreement, which was initiated by the prosecutors.
“For more than a decade, my family and I have endured the stress of these allegations and are grateful for the closure this agreement brings,” Paxton remarked. He added, “The prosecution approached us to start negotiations, and we successfully reached a mutually agreeable resolution. There will be no conviction in this case, nor do I consider myself guilty.”
Brian Wice, the special prosecutor in the case, had previously stated that a deal without an admission of guilt would be inappropriate. However, on Tuesday, Wice acknowledged that Paxton’s willingness to pay restitution presented a unique chance to rectify the harm done to the victims. “Victims in criminal cases rarely, if ever, receive full restitution. This case is an exception,” Wice noted.
Paxton has 18 months to pay the $270,000 to former state Rep. Byron Cook and the estate of Florida businessman Joel Hochenberg, who passed away last year. Wice mentioned that if Paxton repays the lost investment funds ahead of schedule, he might consider shortening Paxton’s supervision period. The agreement obliges the attorney general to report to prosecutors every 60 days.
Additionally, Paxton’s community service will involve volunteering at a soup kitchen or food pantry in Collin County. Wice also shared a statement from a representative of Hochenberg’s estate, expressing their gratitude for the restitution and the legal efforts made in this case.
Wice clarified that Paxton is prohibited from using campaign funds for the restitution. Failure to comply would lead to the resumption of court proceedings against Paxton in Harris County.
The case, which began nearly nine years ago with a grand jury indictment in Collin County, concluded in a brief five-minute hearing. Paxton, appearing calm and dressed in a gray checked suit, was accompanied by a large defense team. During the hearing, Paxton verbally confirmed his agreement to the pretrial intervention and acknowledged his acceptance of the deal.
District Judge Andrea Beall, before approving the agreement, mentioned her previous rejections of attempts by Paxton’s defense team to dismiss the case and her readiness to proceed with a jury trial next month. However, she emphasized that she had no influence over any agreement reached between the prosecution and defense.
Tuesday’s proceedings removed a significant threat to Paxton’s political career and personal freedom, marking another legal triumph for an attorney general who, six months prior, was acquitted in the state Senate on numerous articles of impeachment.
Yet, a whistleblower lawsuit from four former top officials of the attorney general’s office remains unresolved. They allege wrongful termination after accusing Paxton of bribery and other misconduct. Additionally, the State Bar of Texas has filed a lawsuit against Paxton, accusing him of violating his professional duties as a lawyer by misrepresenting a legal matter to the U.S. Supreme Court. Paxton had petitioned the court to overturn Democratic victories in four swing states in the 2020 presidential election, claiming Texas had evidence of voter fraud that altered the outcome.
The U.S. Justice Department is also investigating Paxton over the accusations made by former officials of his agency. Dan Cogdell, Paxton’s lead defense attorney in the securities fraud case, stated he had not received any updates about a federal investigation.
Paxton was accused of soliciting investments into Servergy Inc. in 2011 without disclosing that the McKinney tech company was compensating him. After securing $840,000 from investors, which constituted about one-third of all investments into Servergy that year, the company rewarded him with 100,000 shares valued at $1 each, court records reveal.
Members of a private investment club, which included Paxton, had agreed to look out for one another’s interests and not to exploit the group for personal gain. They also informed investigators that they would not have invested in Servergy had they been aware of the company’s payments to Paxton.
The 2015 indictments against Paxton identified two club members as victims of securities fraud – Cook, now retired from the House, and Hochenberg. Each had invested $150,000 in Servergy. Although the Securities and Exchange Commission sued Paxton alleging securities fraud over his dealings with Servergy, a federal judge dismissed the lawsuit in 2017, ruling that federal law did not obligate Paxton to disclose his compensation from the tech company.
Paxton, a 61-year-old Republican, is among the nation’s most prominent state attorneys general, known for leading several legal challenges against policies implemented by Democratic presidents. Elected in 2014, he is currently serving his third four-year term.
The criminal case has shadowed Paxton throughout nearly his entire tenure as Texas’s top legal officer. Seven months into his first term, Paxton was booked into the Collin County Jail, photographed, and released following grand jury indictments accusing him of two counts of securities fraud, a first-degree felony, and one count of failing to register with state securities regulators, a third-degree felony.
Paxton faced the possibility of up to 99 years in prison for the most serious charges, in addition to fines. The case experienced numerous delays as a team of appointed special prosecutors battled with Collin County officials over compensation and clashed with Paxton’s legal team over the trial location. Despite attempts by Paxton’s lawyers to have the charges dismissed by three different courts, the case persisted.
The case also transitioned between several judges in Collin County and Harris County before landing last year in the 185th District Court in Houston, presided over by Judge Beall. At the most recent hearing in February, one of the prosecuting attorneys withdrew from the case due to unpaid compensation and a disagreement with Wice over legal strategy.