https://www.dallasnews.com/news/politics/2020/07/27/texas-ag-ken-paxton-was-indicted-for-fraud-5-years-ago-will-he-ever-face-a-jury/Texas AG Ken Paxton was indicted for fraud nearly eight years ago. He hasn't faced a juryThe case against Paxton, a Republican, has been delayed multiple times since he was indicted months into his first term. He now faces an unrelated House ethics investigation into allegations of abuse of office.Paxton's alleged crimes date back to his time as a state lawmaker. He represented parts of Collin County in the Texas House for 10 years before winning a seat in the Texas Senate in November 2012. He was elected attorney general two years later and indicted seven months into his first term.
He is charged with two first-degree felonies over allegations that he persuaded friends to invest in a McKinney technology company called Servergy Inc. without telling them he received 100,000 shares of stock. His accusers were Byron Cook, who was a Republican state lawmaker until 2019, and Florida businessman Joel Hochberg.
Paxton said he intended to invest in Servergy, too, but the CEO would not let him,
telling Paxton that "God doesn't want me to take your money."He also is
charged with a third-degree felony, accused of funneling clients to
a friend's investment firm without being registered with the state
. The Texas State Securities Board reprimanded and fined Paxton $1,000 for this failure to register in 2014.If found guilty, Paxton could face two to 10 years in prison for the third-degree felony and five to 99 years for each of the first-degree felonies, as well as fines.
Paxton pleaded not guilty to all of the charges, saying the accusations were a partisan attack from Cook,
whom, despite being a fellow Republican, Paxton once called a "political adversary." A past spokesman said the registration issue
was "fully resolved" by the securities board.
Paxton successfully
fought federal civil fraud charges arising from these same allegations
twice.
2. Who is presiding over the fraud case and where?
Four different judges have presided over Paxton's securities fraud case in the past six years.The first, Collin County District Court Judge
Chris Oldner, a Republican, recused himself in 2015.
Paxton's lawyers then successfully ousted the next judge, Tarrant County Republican George Gallagher, in May 2017.
Gallagher had just months before ordered the case moved from Collin to Harris County, a major blow to the attorney general.
Prosecutors argued such a venue change was necessary because a local jury might be biased in favor of Paxton, who has lived in McKinney for years and is well-known in Collin County. They accused Paxton loyalists in North Texas of trying to derail the prosecution, describing their efforts as a
"crusade" on the attorney general's behalf.After the case was moved,
it was randomly assigned to Harris County District Court Judge Robert Johnson, a Democrat, in mid-2017. Earlier this month, however,
Johnson sided with Paxton's lawyers and ruled the case should be moved back to Collin County.
After handing Paxton this major victory,
Johnson recused himself from the case. The attorney general's office is now representing Johnson in a lawsuit challenging the region's cash bail system. According to Johnson's recusal notice, "the judge's impartiality might reasonably be questioned" if he continued to preside over Paxton's case.
Harris County District Court Judge Jason Luong, a Democrat, got the case next but not for long.
First, Paxton attempted to remove Luong, arguing he too was also being represented by the attorney general's office in the same bail case.
However, the court found Luong the fourth judge to preside over the case need not step down.
The prosecutors appealed Johnson's decision to move the case back to Collin County in July 2020. At the end of the month, the 1st Court of Appeals in Harris County abated Johnson's ruling, giving Luong a chance to revisit his decision.
In October, Luong agreed with his predecessor and Paxton that the case should be moved back to Collin County.
But the prosecutors quickly moved to halt the change of venue decision. They lost their first try earlier this summer, after a Houston appeals court upheld Luong's ruling that the case belongs back in Collin County,
but asked the full court to weigh in.
In June 2023, the appeals court ruled
the trials could be held in Harris County.