First step decided in Ken Paxton's securities fraud case

After years of delays due to issues with payments to prosecutors and relocation debates, suspended Texas Attorney General Ken Paxton appeared in a Harris County court over criminal securities fraud charges on Thursday morning.

During the short hearing, Paxton's defense attorneys and special prosecutors on the case stood before Harris County State District Judge Andrea Beall. Despite Beall's order to have Paxton show up in person, she did not call him to the stand. Throughout the proceeding, Paxton sat silently, slightly slumped over in the front row.

Both sides suggested that the impeachment trial, set to begin September 5, should proceed before any further action on this case. Beall agreed, setting the next hearing for October 6 to settle all pending motions and schedule a potential trial date.

According to Brian Wice, a special prosecutor on the case, motions up for consideration include one for speedy trial and a motion for ex parte determination of the prosecutorial fees and how much the attorneys involved are going to be paid.

"One of the game changers today is being in front of a judge who understands the law, who is dedicated to ruling on motions – which the last time I checked was part of what judges are supposed to do – and to make sure that she fully and fairly applies and understands the laws to the facts," he said. "With all due respect, for the two-to-three plus years, this case was in another court, that didn't happen because the judge was either unable or unwilling."

Wice referred to the scheduled motion hearing as the "first step" in a long journey. Paxton was first indicted on two first-degree felony charges over allegations that he persuaded investors to put money into a McKinney-based company in order to receive shares of their stock. He was also charged with a third-degree involving claims he solicited clients for an investment firm without required Texas registration. He could face up to 99 years in state prison if found guilty.

The defense attorneys and prosecutors said whether the attorney general is removed from office and the FBI investigation into Paxton over allegations he illegally assisted close friend and political donor Nate Paul will affect the securities fraud case. The Department of Justice is prosecuting Paxton as a result of the FBI investigation.

According to Dan Cogdell, one of the defense attorneys, removing the attorney general from office could cause a quicker resolution for the securities fraud charges, which could mean either dismissal or settlement of the case.

However, prosecutors said Paxton's problems would not go away, as an indictment in the federal investigation would be a bigger issue for Paxton as those events occurred while he was acting attorney general.

Paxton did not speak at any point before or after the hearing, likely due to a gag order issued by Lieutenant Governor Dan Patrick due to the ongoing impeachment proceedings.

Once the hearing concluded, Paxton was guided out of the courtroom through the back door. He was accompanied and escorted out of the courthouse by several Texas Department of Public Safety officers.