HOUSTON (WBAP/KLIF News ) – Texas Attorney General Ken Paxton avoided an April 15 trial in his 9-year-old securities fraud case and has entered an 18-month pretrial agreement with the State of Texas.
He’s accused of defrauding investors in the Mckinney tech company Severgy by not disclosing that he was being paid to promote the stock.
The terms of the deal stipulate that the embattled attorney general must pay around $300,000 in restitution, perform community service in Collin County and take legal education courses sponsored by the State Bar of Texas.
Harris County special prosecutor Brice Wice read a statement from Terry Jacobson who represents the victims in the case.
“The Cooks and the Hochbergs are grateful that they will receive restitution in full in connection to their Severgy investments. This has been a long journey and both the Cooks and the Hochbergs appreciate the diligent legal work by Brian Wice and Judge Silverman to bring this very complicated legal matter to a conclusion,” said the statement.
Wice said the restitution provision mattered more to him than any other aspect of the deal.
“The fact that this defendant like any other defendant is required to complete 100 hours of community service. That matters…it’s service to the community and the fact that Mr. Paxton is going to have to perform that service probably in conjunction with the food pantry or soup kitchen in Collin County,” he said.
In a statement, Paxton attorney Dan Cogdell reaffirmed that his client admit to wrongdoing.
“Let me be clear, at no time was he going to enter any plea bargain agreement or admit to conduct that simply did not occur,” said Cogdell’s statement. “There is no admission of any wrongdoing on Ken’s part in the agreement because there was no wrongdoing on his part.”
Once Paxton completes the terms of the agreement, the two first-degree felony charges, would be dropped.
Some consider this another legal and political win for Paxton. He was acquitted last September by the state Senate on 16 impeachment charges on allegations that he abused the power of his office and accepted bribes to help his friend and campaign donor Nate Paul.
Paxton’s office is still facing a lawsuit brought by four former top deputies who claimed that the attorney general fired them in 2020 for reporting him to the FBI.
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