Texas Attorney General Ken Paxton, a prominent Republican figure and ally of former President Donald Trump, has reached a resolution in a securities fraud case that has lingered for nearly a decade, as confirmed by his legal team on Tuesday.
Paxton had been indicted back in July 2015 on allegations related to stock sales and earnings from Servergy, a Texas-based technology company. Additionally, he faced accusations of acting as an unregistered securities agent.
Under the terms of the settlement, the state will drop the charges against Paxton in 18 months provided he pays restitution to affected investors, completes community service, and fulfills legal education requirements.
Paxton will not be required to admit any wrongdoing as part of this agreement, according to his lawyers, who emphasized the need to bring closure to a protracted legal ordeal.
This resolution marks a significant victory for Paxton, a conservative figure who has weathered various corruption allegations since assuming office in 2014.
Last year, he survived an impeachment push fueled by claims of misusing his authority to shield a wealthy political donor from scrutiny.
In addition to the state charges, Paxton faced legal action from the U.S. Securities and Exchange Commission (SEC) for allegedly promoting Servergy stock without disclosing compensation.
However, this case was dismissed in 2017 when a judge ruled that Paxton was not obligated to disclose the payments, further bolstering Paxton’s position.
Despite the controversies surrounding him, Paxton has remained influential in right-wing circles, particularly after he made headlines in December 2020 by petitioning the Supreme Court to invalidate election results from four states won by Joe Biden.
While the court rejected Paxton’s petition, this move solidified his standing among conservative supporters.
