Paxton Surrenders After Indictment
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MCKINNEY (CBSDFW.COM/AP) - The state's top prosecutor surrendered himself over to authorities on Monday morning. Attorney General Ken Paxton has been indicted on felony charges, according to a special prosecutor.
Paxton is accused of misleading investors in McKinney tech startup Servergy Inc. before taking office in January. That company is now under investigation by the Securities and Exchange Commission.
The Republican is facing two counts of first-degree securities fraud and a lesser charge of failing to register. Each of the fraud counts carries a punishment of five to 99 years in prison.
Paxton was fined $1,000 last year for not disclosing to Texas securities regulators that he was getting commissions for soliciting investors. He admitted to the wrongdoing and chalked it up to administrative oversight.
Gov. Greg Abbott, who was previously the state's attorney general for 12 years, has remained silent about this case, and other GOP leaders have been tight-lipped as well. The party released a statement saying that Paxton deserved his say in court, and praised his first seven months on the job, including a recent investigation into Planned Parenthood.
"There's a reason why Texans have warily observed this news. Some of the outrageous events surrounding this sloppy process certainly do not typify the level of quality that Texans expect from our judicial system," GOP spokesman Aaron Whitehead said in a statement.
Just as Perry was allowed to finish his term after his indictment, Paxton is allowed to stay on the job while his criminal case proceeds.
No state officials have asked Paxton to step down, but some people have questioned how the attorney general can bring charges against others when he faces them himself. Paxton's attorney, Joe Kendall, stated over the weekend that he will honor the judge's instructions and not publicly comment on the case at this point.
Paxton turned himself over to police in Collin County at around 10:30 a.m. on Monday morning. He was photographed and fingerprinted, then released from custody on bond. The indictment against him was then unsealed. His attorney is expected to release a statement later on Monday.
Texas Democrats rallied against the 52-year-old Republican at the Collin County Courthouse on Monday afternoon. A few of them even called for Paxton's resignation, carrying signs that read "Axe Paxton" and "Not Above the Law."
The frenzy was reminiscent of when Rick Perry, then governor of Texas, was booked after being indicted on charges of abusing his power with a 2013 veto. However, within minutes of being processed at an Austin jail, Perry stood defiantly in front of cameras.
Paxton did not speak to the media after he was booked. His attorney, Joe Kendall, cited a gag order issued by the judge and issued the following statement:
Attorney General Ken Paxton will plead not guilty to these accusations and he will demand a trial by jury. He is looking forward to the opportunity to tell his side of the story in the courtroom of Tarrant County Judge George Gallagher, who was appointed to the case after Judge Chris Oldner's recusal on July 29. Judge Gallagher has given instructions to make no further public comments or publicly speculate on events. Attorney General Paxton and I intend to comply with Judge Gallagher's instructions. In the meantime, the Attorney General is returning to Austin to focus on his work on behalf of the citizens of Texas.
