Texas AG Ken Paxton to reach deal dismissing securities fraud charges, sources tell ABC13

Shannon Ryan Image
Tuesday, March 26, 2024
Texas AG to reach deal dismissing securities fraud charges: Sources
Ken Paxton's legal issues continue, but the Texas Attorney General might reach a deal dismissing securities fraud charges, sources tell ABC13.

HOUSTON, Texas (KTRK) -- Sources told ABC13 that Texas Attorney General Ken Paxton is set to sign a deal that will offer reprieve for some of his own legal issues.

Paxton is expected to sign the deal in Harris County on Tuesday. If he signs, the deal will be reached just three weeks before he was set to stand trial for three nearly-9-year-old securities fraud charges. Under the deal, the charges will be dismissed.

In July 2015, Paxton was indicted on two first-degree felony charges in the Dallas-Fort Worth area. The case was eventually moved to Harris County, one of a number of factors resulting in its delay.

Paxton was accused of failing to tell potential investors that he was being paid hundreds of thousands of dollars to promote a tech startup's stock.

Paxton was also indicted on a third-degree felony charge for failing to register with the Texas State Securities Board while steering his legal clients to an investment advising business that was reimbursing him for the transactions.

Sources told ABC13 the deal will be a contract between Paxton and prosecutors, often referred to as pre-trial intervention. The nature of that deal allows Paxton to avoid having additional case details entered into public records.

If Paxton signs the deal, his case will be reset for 18 months. During that time, Paxton will be required to comply with a number of conditions for charges to be dismissed.

Sources told ABC13 that includes a six-figure restitution payment, community service and legal education classes for the state's top law enforcement official.

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