State attorney general suffers setback as trial looms
Texas Attorney General Ken Paxton was hit with a doublewhammy in his criminal fraud case, as a judge took away his home court advantage and dismissed what may be the Republican’s last chance to avoid a trial.
Paxton, accused of securities fraud and failing to register as a securities adviser, had raised questions about the special prosecutors and the grand jury that indicted him in July 2015. The Texas judge overseeing the case on Thursday found no fault with either.
The judge also sided with prosecutors who complained that wealthy Paxton supporters were waging a publicity campaign that tainted the jury pool in McKinney, Texas, where Paxton has lived and worked for many years. The judge said that to ensure a fair trial, the case will be moved to another district.
Paxton, a Tea Party firebrand, could face as long as 99 years in prison if convicted on charges related to soliciting investors for a technology company without telling them he was being compensated for his recruiting efforts. These activities occurred when Paxton was a member of the state Legislature, before he became Texas’s top law enforcement officer in 2015.
Paxton’s trial was to begin with jury selection April 20, followed by evidence beginning May 1. That schedule will change and the new date will depend on the availability of courthouse facilities in whatever location is selected for the trial.
Prosecutors plan to try Paxton first on a felony charge of failing to properly register as a securities adviser. In 2014, Paxton admitted to a similar misdemeanor offense involving different investors and paid a $1,000 fine. He is also charged with securities fraud.
In March, a federal judge dismissed similar civil allegations by U.S. securities regulators against Paxton. In that dismissal order, the judge said that while Paxton may have had an ethical duty to tell investors he was paid to recruit them, his failure to do so didn’t break federal securities laws.
Special prosecutors were appointed to investigate Paxton after the state district attorney in the politician’s home district stepped aside over conflicts of interest. Paxton’s supporters sued to prevent the local county commissioners from paying the prosecutors’ bills, and the prosecutors’ asked the judge to delay trial until their 2016 invoices are paid.