AG Ken Paxton back in court Friday in securities fraud case

Defense Attorney Dan Cogdell waits during the former Texas State Attorney General Ken Paxton’s impeachment trial at the Texas State Capitol on Sept. 16, 2023, in Austin, Texas.

AUSTIN – Texas Attorney General Ken Paxton will be in a Houston court Friday in a nearly 9-year-old securities fraud case he is now seeking to dismiss.

Paxton could face trial as early as April 15. But as that trial date approaches, his lawyers are asking a judge to toss the case, arguing that lengthy delays have violated his constitutional right to a speedy trial.

“At minimum, the State’s inactivity imposed additional and entirely foreseeable — and unnecessary — worry, anxiety, employment and financial difficulties, and frustration upon Paxton,” his defense team argues.

The special prosecutors in the case have countered that Paxton himself is responsible for much of the delay and that his legal team could have argued for a speedy trial while the case languished during several rounds of appeals.

Paxton is accused of two felony fraud charges for allegedly courting investors into a Collin County tech company without disclosing that he was being compensated for the work.

He is also accused of funneling clients to a friend’s investment firm without registering with state regulators. In 2014, the Texas State Securities Board fined him $1,000 for failing to register.

The attorney general could face up to 99 years in prison as well as fines if convicted of the fraud charges. Paxton has pleaded not guilty.

Pressing to continue toward trial, the prosecutors argue that Paxton’s political victories, including fending off impeachment, are proof that the pending case has caused the attorney general little strain. Since he was indicted, Paxton has been reelected attorney general twice and become one of the most visible state attorneys general in the country.

“To be sure, Paxton has spent considerable time under indictment and spent a considerable amount of money to defend himself,” the prosecutors argue. “But to be equally sure, he has done so while on bond, with a team of high-price lawyers, and a cadre of surrogates, spokespersons and sycophants who continue to spread his truth – not the truth – that he is the victim of a witch hunt.”

Paxton’s unsuccessful attempts to dismiss the criminal charges produced initial delays in the case, but in recent years the case has bogged down over two issues: whether to pay the prosecutors and where Paxton should face trial.

The pay issue remains unresolved. Months after the prosecutors were appointed, Collin County commissioners began refusing to pay them hundreds of thousands in legal fees. But in recent months a court has ruled in favor of the special prosecutors.

The case also languished over a legal fight regarding the venue.

Prosecutors argued that they could not get a fair trial in Collin County, where Paxton lives. A trial judge agreed in 2017, moving the case to Harris County, a stronghold for Democrats.

Paxton’s lawyers later objected, and the case was returned to Collin County – until prosecutors succeeded on appeal last year, keeping the trial in Harris County.

During that time, the case was in the hands of three judges. It is now before 185th District Court Judge Andrea Beall, a Democrat.

Paxton was last in the Houston court for an Oct. 30 hearing during which his defense team attempted to broach the prosecutors’ pay. Special prosecutor Kent Schaffer later called it another attempt to delay his trial.

In a hearing in August, both sides agreed to delay the case as Paxton was awaiting his impeachment trial. The Texas Senate voted largely along party lines to acquit Paxton in September.

Other legal challenges for the attorney general include a whistleblower lawsuit that could lead to Paxton being forced to testify about his dealings with a federally indicted real estate investor. Paxton is also facing an ethics complaint alleging that he lied when he told the U.S. Supreme Court that Texas had evidence of widespread election fraud in the 2020 presidential election. The court rejected Paxton’s bid to overturn election results in four swing states whose electoral votes went to Democrat Joe Biden.

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