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Attorney General Paxton In Court Over Fraud Indictment

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McKINNEY (CBSDFW.COM/AP) — Texas Attorney General Ken Paxton is back in North Texas, but today he is before a judge as a defendant. The state's top attorney arrived at the Collin County Courthouse, with his attorneys, hoping to have felony charges of defrauding investors thrown out.

The hearing in Paxton's hometown of McKinney marks the first court appearance for the Republican since formally pleading not guilty in August. His attorneys have asked a judge to void the indictments handed up by a grand jury this summer.

Paxton is accused of encouraging wealthy investors to pump more than $100,000 into a tech startup called Servergy without revealing he was being paid by the company. The alleged fraud took place in 2011, when Paxton was still a state lawmaker.

Paxton's lawyers have repeatedly asked for the judge to void the charges. Paxton's lawyers allege the judge who oversaw the grand jury that handed down the indictment had improper influence on them. They also claim the grand jury was misled on the law, and they are demanding to see and hear transcripts during what is considered secret hearings.

Special prosecutors say Paxton's claims of grand jury leaks and a flawed investigation are meritless.

Earlier this month, the presiding judge decided to allow cameras and microphones inside proceedings. Paxton and his attorneys have taken issue with the decision.

Paxton was indicted just six months into office and has said he won't resign.

(©2015 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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