Texas AG Ken Paxton securities fraud case deal reached with prosecutors
HOUSTON - The Lone Star State's "Top Cop" strolled into a Harris County Courtroom bearing the burden of three felony fraud charges which have lingered for nine long years.
But in a matter of minutes, the allegations that he peddled securities without a license and without disclosing to buyers he was being paid were rapidly resolved and the threat of conviction, disbarment and removal from office all but lifted.
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"If the contract is violated, you understand, both sides understand this court will be setting a very speedy trial," said Judge Andrea Beall, who presides over the 185th District Court.
"At the end of the day, it is not a plea bargain. He didn't plead. There is no admission of guilt. There will never be an admission of guilt, because he is not guilty, but we are glad to have this behind us," said Dan Cogdell, Paxton's Attorney.
Texas Attorney General Ken Paxton appears in a Houston courtroom on March 26.
Instead, the Texas Attorney General agreed to a pre-trial intervention contract, otherwise known as "diversion", the terms of which include completion of 100 hours of community service, 15 hours of legal ethics training, and most significantly, the payment of at least $271,000 in restitution to alleged victims.
Asked why his client Paxton agreed to pay if he did no wrong, Cogdell offered a quick response.
"Good question. One of the answers to that is, it's cheaper than what he would have had to pay me if he were to go to trial," said Cogdell.
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Special Prosecutors Brian Wice and Jed Silverman said an intense review of the evidence and likely witness testimony convinced them restoring the financial losses suffered by Paxton's alleged victims outweighed rolling the dice with a jury.
"It is no small thing that the victims in this case are going to receive right around $300,000 in restitution from Ken Paxton. That is no small thing," said Silverman.
"Restitution first and foremost, that was a game changer. Second, community service like any other defendant. In a way, he (Paxton) has been on pre-trial diversion for the last nine years," said Wice.
In a statement, Paxton appeared to agree.
"For more than a decade, my family and I have been dealing with the ongoing stress of these accusations and are relieved to finally have a resolution in this matter....Dealing with a 10-year case looming over our heads was no easy task," said Paxton.