AUSTIN (KXAN) — Even though a federal judge dismissed the SEC fraud charges against Texas Attorney General Ken Paxton last week, his criminal fraud charges are moving forward.
On Wednesday, the Texas Court of Criminal Appeals refused to consider dismissing Paxton’s felony indictments out of Collin County. Over the summer, Paxton’s attorneys filed several petitions to have the higher court dismiss his indictments.
The 53-year-old was indicted on two counts of securities fraud over $100,000 and one count for representing as an investment adviser without registration. Paxton is accused of misleading wealthy investors he personally recruited for a high-tech startup in 2011, four years before becoming Texas’ top prosecutor. He has pleaded not guilty to the criminal charges.
According to the SEC’s complaint, Paxton raised $840,000 in investor funds for Servergy and received 100,000 shares of stock in return, but never disclosed his commissions to prospective investors while recruiting them. Servergy’s director Caleb White, who was accused of doing something similar, agreed to settle the SEC’s charges by paying $66,000 in disgorgement and returning his shares of Servergy stock to the company.
Special prosecutor Brian Wice says he now looks forward to going to trial “and seeking justice.”
Paxton’s defense attorneys, Philip Hilder of Hilder & Associates and Dan Cogdell of the Cogdell Law Firm, issued a statement stating,”We anticipate filing a motion for rehearing because we have tremendous confidence in our case. The charges against Ken Paxton are without merit. A federal court, following a lower legal standard, ruled that the fraud charges were baseless.”
With additional reporting by the Associated Press