Collin County grand jury to likely hear Paxton case in coming weeks
Prosecutors seeking felony securities fraud indictment
Kevin Cummings
Staff writer, Plano Star Courier
Last year, after the Texas State Securities Board (SSB) - the organization that has civil and criminal jurisdiction regarding the securities industry, largely protecting investors and maintaining a competitive securities market in the state - fined Attorney General Ken Paxton $1,000 for soliciting investments with a business partner without proper registration with the state, any further investigation into the civil matter seemed to be over.
District attorneys in Travis and Dallas counties declined to hear further cases into the matter, and the SSB settled the matter with the fine. However, as special prosecutors were granted authority a few months ago to expand the scope of their investigation beyond the initial incident, a grand jury in Collin County is expected to hear evidence by the end of July regarding felony-level fraud charges against the Attorney General, as a heated back and forth between the prosecutors and defense plays out in the public sphere.
According to media reports, Schaffer is seeking a first-degree felony indictment against Paxton, which, under state law, would mean more than $100,000 of fraud had occurred.
“We were brought in from Houston to ensure that an investigation that could have easily been driven by partisan politics and political agendas would not [be politically motivated],” read a statement by appointed special prosecutors Kent Schaffer and Brian Wice. “Our investigation will continue to be informed by what our oaths as special prosecutors commands: to do justice.”
Calls to Schaffer’s office were not returned by the time of this publication.
In early April, a complaint against Paxton was submitted to the office of Greg Willis, Collin County district attorney, alleging violations of the state’s security laws similar to complaints submitted to Travis County, according to Collin County DA’s office. Willis, who is a long-time friend of Paxton, referred the matter to the Texas Rangers to investigate and special prosecutors were selected.
According to Schaffer’s biography on the Bires Schaffer and DeBorde law firm’s website, he has more than 30 years of experience in criminal law, largely as a defense attorney.
Anthony Holm, Paxton spokesperson, denied any wrongdoing beyond the fine by the SSB, calling the impeding grand jury hearing a “political hit job.” While claiming Schaffer and Wice are both inexperienced as prosecutors, Holm noted that the SSB, Travis and Dallas counties found no criminal action by Paxton and called it “striking” that the Attorney General’s office is responsible for prosecuting similar cases to those that Schaffer and Wice defend. However, he said he was unaware of Paxton ever prosecuting a case in which either lawyer represented the defense.
“It is very striking and, perhaps as a result of the inexperience, that it appears to be trying the case in the news media rather than courthouse,” Holm said. “The only people claiming to find something are two special prosecutors.”