The scandal-scarred Texas Attorney General Ken Paxton, on the heels of surviving an impeachment push from his own party mates, may soon get rid of another headache. Citing sources, the Austin American-Statesman reported Friday that Paxton’s nine-year-old securities fraud charges may soon be dropped as he’s “nearing” a deal with prosecutors that’d dismiss all felony counts against him, assuming he successfully completes all of the terms prosecutors require.
If a deal is struck, current talks suggest Paxton would be required to complete community service, advanced legal education classes, and possibly pay a six-figure restitution ranging between $300,000 and $400,000. The paper reported that Paxton likely wouldn’t have to enter a plea to take the deal, but would still be under a pseudo-probation that’d require him to “not violate any law for an extended period.”
The deal’s reported requirements are a far cry from the potential 99 years behind bars Paxton, 61, would face if convicted on all charges in a criminal trial. Striking a deal would also allow him to avoid publicly addressing accusations he defrauded investors and illegally solicited clients for an investment firm. If a deal isn’t reached, his trial is slated to begin April 15.
The agreement would allow Paxton to avoid a public airing of facts and evidence against him in the legal saga that has seen fights over the pay of special prosecutors, jurisdiction and other disputes that have prolonged the matter. The resolution of the case also would not affect Paxton’s law license.
Paxton faces two first-degree felonies for failing to disclose to potential investors that he was being paid by a Dallas-area tech startup, Servergy, to recruit them to buy shares in the company. Paxton, according to court records, was in line to receive payments of $100,000 in stock compensation for securing each of the two new investors.
Paxton also faced a third degree-felony charge for failing to register with the Texas State Securities Board as part of an arrangement dating back to 2004 in which Paxton, a newly elected member of the Texas House and a practicing lawyer at the time, recommended his clients invest with Mowery Capital Investments in exchange for receiving part of the associated fees for the new accounts.
