The long-running securities fraud case against Texas Attorney General Ken Paxton may be drawing to a close without a trial, thanks to a tentative pre-trial diversion deal. Three sources close to the situation revealed details of the agreement to KVUE Senior Reporter Tony Plohetski and the Austin American-Statesman. Set to avert a trial that was scheduled for April 15, the deal stipulates that Paxton must perform community service, take legal education classes, and pay restitution in the six-figures.
Under the proposed terms, Paxton would not be required to formally admit guilt, and the cases against him would be dismissed should he successfully abide by the conditions laid out. This deal arises some nine years after the saga commenced and could save Paxton from facing a maximum sentence of up to 99 years in prison. Though the deal seems to have been settled, both Paxton’s lawyer, Dan Cogdell, and prosecutor Brian Wice declined to comment, with Cogdell stating to the Austin American-Statesman, "I am not going to comment on something that hasn't happened and may well not happen."
Paxton's legal troubles began in 2014 over allegations that he solicited investors for a friend's investment firm without proper registration—a crime in Texas and one for which Paxton himself voted into law. Special prosecutors and a Texas Rangers investigation unearthed further allegations, including Paxton’s activities concerning a company known as Servergy. Despite these lingering clouds, Paxton narrowly slipped past an impeachment trial last year and is still under investigation for purportedly abusing his office to aid an Austin investor.
The pre-trial diversion tactic, while not extraordinary in Texas’s urban counties, allows Paxton a path to potentially maintain a clean slate, highlighting the discretionary power prosecutors wield in shaping the outcomes of such high-profile cases. If the agreement fails to solidify by Tuesday, Paxton will be expected to stand trial come mid-April. Moreover, Paxton is embroiled in a more complex legal morass with a $3.3 million proposed settlement still hanging in the balance over whistleblower allegations from within his own office.
