Texas AG Ken Paxton reaches deal in securities fraud case, agrees to six-figure restitution

Texas Attorney General Ken Paxton reached an agreement in Harris County on Tuesday morning to resolve some of his longstanding legal issues. Paxton had been indicted on felony securities fraud charges in July 2015, stemming from allegations related to promoting a tech startup’s stock without disclosing payments received.

Under the terms of the agreement, Paxton will enter a pre-trial intervention (PTI) program. His case will be reset for 18 months, and if he fulfills certain conditions within that time, including making a restitution payment of approximately $270,000, completing 100 hours of community service, and undertaking 15 hours of legal ethics coursework, the charges against him will be dismissed.

The decision to offer PTI came after significant deliberation, with prosecutor Brian Wice indicating that it had not been on the table until recently. However, Paxton’s attorney, Dan Cogdell, contested this assertion, stating that PTI had been offered five years ago.

The agreement was reached just weeks before Paxton was scheduled to stand trial for the charges. Wice explained that during recent interviews with witnesses, it became apparent that the strength of the case, particularly regarding the third-degree felony charge, was not as robust as previously thought.

Issues also arose with the two first-degree felony charges due to the prolonged duration of the case. Additionally, disputes over prosecutor pay contributed to delays. Wice estimated that he is still owed approximately $200,000.

Despite the agreement, Paxton’s legal troubles are not entirely resolved. There is an ongoing federal investigation into related matters, and additional issues remain pending before the state supreme court. However, the agreement is not an admission of guilt and will not be entered into the public record.