Attorney General Ken Paxton’s long-delayed securities fraud trial set

By Patrick Svitek 

The Texas Tribune

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Attorney General Ken Paxton’s long-delayed trial on securities fraud charges has been set for April 15.

State District Judge Andrea Beall scheduled the trial during a hearing Monday morning in Houston. Paxton attended the hearing but did not speak at it.

Paxton was indicted on the charges over eight years ago, months into his first term as the state’s top law enforcement official. The charges stem from accusations that in 2011 he tried to solicit investors in a McKinney technology company without disclosing that it was paying him to promote its stock. Paxton has pleaded not guilty.

The trial is a reminder that Paxton's legal problems persist even after the Texas Senate acquitted him last month in an impeachment trial on unrelated allegations. Lt. Gov. Dan Patrick presided over that trial and has faced intense criticism for taking $3 million from a pro-Paxton group in the lead-up to the trial.

"Unlike the impeachment, this is going to be a fair trial," special prosecutor Kent Schaffer told reporters after the hearing. "This judge is not corrupt. This judge is not on the take."

The hearing was brief and did not settle one lingering pretrial issue: how much the special prosecutors should get paid. The judge also scheduled a February pretrial conference.

Paxton's lawyer Philip Hilder told reporters his side was "gratified" with the trial date and criticized the special prosecutors for their focus on their pay.

"It's show-me-the-money," Hilder said. "It's all about the money to them."

The prosecutors say they have not been paid since January 2016. A Paxton supporter filed a lawsuit challenging their fee schedule in the early months of the case, and both sides have been wrangling over the issue ever since.

The trial has been delayed for years over a number of pretrial disputes, including the prosecutors' pay and the venue. The case began in Paxton’s native Collin County but was moved to more neutral territory in Harris County at the prosecution’s urging.

Paxton faces two counts of securities fraud, a first-degree felony with a punishment of up to 99 years in prison. Paxton also faces one count of failing to register with state securities regulators, a third-degree felony with a maximum of 10 years in prison.

The impeachment trial centered on different allegations of bribery and malfeasance made by former top deputies in his office. When the House impeached Paxton in May, it included multiple articles of impeachment related to the securities case, but the Senate set those aside for the trial and dismissed them afterward.

While the prosecutors emphasized they expect a fairer trial than the one the Senate conducted, Hilder declined to draw any comparisons. The impeachment trial "was unrelated to what we're defending against," Hilder said.

The impeachment articles focused on allegations that Paxton misused his office to help his friend investigate claims that he was being targeted by federal and local law enforcement, in exchange for favors that included giving a job to a woman with whom he was having an affair.

While the Senate's acquittal was a political triumph for the third-term Republican, Paxton still has significant legal issues. In addition to the securities fraud case, he faces a federal investigation into the claims by his former top staffers, who allege he abused his office to help a friend and donor, Nate Paul.

In the securities fraud case, the prosecutors' pay may be the last major pending issue before the trial. In 2018, the Texas Court of Criminal Appeals struck down the fee agreement, arguing that it fell outside legal limits for what such attorneys may be paid. The court ordered a previous Harris County judge overseeing the case to come up with a new payment schedule, but that never happened and the prosecutors have continued to go unpaid.

During the hearing Monday, Paxton lawyer Bill Mateja sought to propose an order addressing the pay issue from his side's perspective. But Beall repeatedly said she would decide on her own.

The judge did not indicate when she would make a ruling on the pay, according to one of the prosecutors, Brian Wice.

Wice said Paxton's lawyers are so focused on their pay because they have known "the only way to derail this prosecution was to defund it." Wice said he is owed "a lot" and Schaffer estimated he has "500 unpaid hours" dating back to 2016.

The prosecutors have previously raised the possibility they could withdraw from the case if they are not paid. Asked about that Monday, Schaffer said "we have to see what happens," while Wice promised he is "not going anywhere."

This article originally appeared in The Texas Tribune

The Texas Tribune is a member-supported, nonpartisan newsroom informing and engaging Texans on state politics and policy. Learn more at texastribune.org.

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The Texas GOP has a serious antisemitism problem

By Robert Downen The Texas Tribune

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Faced with ongoing scandals this month involving his allies' ties to antisemitic extremists, the leader of the Republican Party of Texas has come out strongly—to attack other conservatives who’ve criticized his friends.

For three weeks, Texas GOP Chair Matt Rinaldi has been defiant in the face of calls from members of his own party to cut ties with Defend Texas Liberty leader Jonathan Stickland, who recently hosted avowed white supremacist Nick Fuentes at his office for nearly seven hours. And he’s gone after those who’ve been critical of Defend Texas Liberty, a political action committee that is funded by two of the Texas GOP’s most prolific donors.

Separately, Rinaldi is at the center of a parallel controversy involving a group for young conservatives that he recently embraced despite warnings about its leaders’ openly antisemitic views and ties to white nationalist figures.

[Nick Fuentes is just the latest white supremacist embraced by Defend Texas Liberty]

For some Republicans, the dual scandals have raised serious questions about the party’s willingness to denounce racists — and its leader’s proximity to those who embrace them.

“He has put his friends’ interests above what is in the best interest of the party,” said Mark McCaig, an attorney and chair of the Texas Republican Initiative. “He is more concerned about protecting them and their gang.”

To be sure, Rinaldi was quick to distance himself from Fuentes. The Texas Tribune spotted Rinaldi earlier this month at the office building where Fuentes, an Adolf Hitler admirer who has called for a “holy war” against Jews and encouraged his followers to beat women, was being hosted by Stickland.

Asked about the Oct. 6 meeting, Rinaldi told the Tribune that he had no idea Fuentes was inside and would never meet with him. As for Stickland? Rinaldi said he would wait until more facts came out before commenting on his longtime political kin.

“I’m not going to make assumptions based on what I'm told by a reporter,” he said on Oct. 8.

Since then, neither Rinaldi nor the Republican Party of Texas has commented on Stickland, even as other major figures — including Lt. Gov. Dan Patrick and Kyle Rittenhouse — have issued statements that confirmed the Tribune’s reporting. Nor has Rinaldi responded to concerns from fellow Republicans and some party executive committee members who’ve called for a break with Defend Texas Liberty, which has donated $257,000 to the party since 2021.

Instead, Rinaldi has reserved his ire for House Speaker Dade Phelan, accusing the Beaumont Republican of politicizing antisemitism before demanding his resignation. Phelan has also demanded Rinaldi step down as the party’s leader and give money the Texas GOP received from Defend Texas Liberty to pro-Israel charities.

Since news of the Fuentes meeting broke, Rinaldi has posted or amplified attacks on Phelan or the Texas House on X, formerly Twitter, more than 40 times. He has not, however, publicly criticized Stickland or Defend Texas Liberty at all — even as new information continues to emerge about their close ties to white supremacists.

[Here’s who gets money from Defend Texas Liberty, the PAC whose leader met with white supremacist Nick Fuentes]

On Monday, the Tribune reported that, in just the last month, at least five current and former Fuentes associates have worked with groups that are closely tied to Stickland, Rinaldi and Defend Texas Liberty. That includes True Texas Project, whose leaders have sympathized with the racist gunman who murdered 22 people at an El Paso WalMart in 2019, and who are set to host Rinaldi for a fundraiser and softball game this weekend.

On Wednesday, the Texas Observer reported that a swastika-clad neo-Nazi who was spotted handing out antisemitic flyers in Fort Worth this month had previously interned for Luke Macias, a longtime GOP consultant and Rinaldi ally who just replaced Stickland as president of Defend Texas Liberty, according to the group’s website.

And this week, the Tribune reported that the president of Texans For Strong Borders, Chris Russo, has for years been a prominent figure in Fuentes’ racist movement, and has continued to post on anonymous, hate-filled social media accounts as his group —with help from Rinaldi and Defend Texas Liberty — has emerged as an influential voice that’s pushed lawmakers to crack down on legal and illegal immigration.

Rinaldi and the Texas GOP did not respond to multiple requests for comment for this story.

‘A moral obligation’

The controversies come amid an internecine fight between the state’s far right and the Texas GOP’s more moderate, but still deeply conservative, wing. That strife has exploded into all-out war since the impeachment and acquittal of Attorney General Ken Paxton, a Rinaldi ally who has received nearly $4.65 million from West Texas oil billionaires Tim Dunn and Farris and Dan and Farris Wilks. Those billionaires also fund Defend Texas Liberty and, before that, bankrolled Rinaldi’s career in the Texas House.

Defend Texas Liberty has been one of the most important players in the state party’s ongoing civil war. Campaign finance records show that, since 2021, it has given nearly $15 million to right-wing movements and candidates. The group made headlines this summer after giving $3 million to Patrick, months before he presided over Paxton’s impeachment trial. Defend Texas Liberty also gave $3.6 million to Don Huffines, a former state senator who helped push Gov. Greg Abbott to the right by attacking him on immigration and other issues during last year’s Republican primary.

Meanwhile, the Texas GOP’s far right has continued to embrace groups and individuals that others have warned are a bridge too far. Fuentes was the best-known of those extreme figures; but his visit and the ensuing controversy were punctuated by a separate-but-related, scandal involving the party and white supremacists.

That ordeal dates back to August, when the 66-year-old Texas Young Republican Federation voted to end its partnership with the Texas GOP until Rinaldi — who the group accused of initiating a “smear campaign” and partnering with far-right figures to undermine their newly-elected leadership — was removed from his position.

Things escalated last month, when Rinaldi pushed for the Texas GOP to bring a newly-formed spinoff group into the party despite warnings that its leaders included avowed white nationalists.

The warnings proved to be right: Days after the Tribune first reported on Fuentes’ visit with Stickland, an independent journalist reported that leaders of the new young Republicans group had praised Hitler online, and published photos of some of its leaders outside of an event for Fuentes’ vitriolically antisemitic “groyper” movement.

“There was a time in my life when I hated Nick Fuentes and his white supremacy views,” one of the group’s leaders, Rylie Rae, reportedly wrote on social media last year. “Now I recognize that he is one of the smartest people in our country and we need white nationalism. Oh how the tides have turned.”

Responding to the controversy, the new group’s leadership said in a statement that it “condemns bigotry in all forms” and had removed the individuals in question.

But before that, other young Republicans said they made clear to Rinaldi and the leaders of the new group that they were in bed with extremists. Those concerns were rebuffed, a move that one person said is emblematic of a broader problem and power struggle that has allowed extremists to flourish in Republican circles.

“There is a tendency among the populist right to essentially say, ‘It doesn’t matter how awful the person is, as long as they are on our side,’“ said Matt Wiltshire, finance director for the Young Republican National Federation. “We believe that we have a moral and ethical duty to be uncompromising in our stance that there is right and there is wrong.”

One of those removed was Konner Earnest, who led the group’s Parker County chapter and also recently became involved with the European American Community, a white nationalist group that argues American citizenship should be based on European ancestry.

Earnest has other ties to Rinaldi and Defend Texas Liberty: He was spotted outside the Fuentes meeting with Stickland, and has appeared in videos for Russo’s Texans For Strong Borders, which has received considerable financial support from Defend Texas Liberty. Earnest has also written anti-immigration articles for Texas Scorecard, a prominent right-wing media website that is financed by Defend Texas Liberty’s billionaire funders.

Rinaldi does not appear to have released any public statement or made any comment on social media about the young Republicans scandal.

Meanwhile, the Texas GOP’s executive committee remains at an impasse over how to respond to the party’s ongoing white supremacist problem.

Last week, after Stickland was quietly removed as Defend Texas Liberty’s president, roughly one-third of the executive committee's 64 members, including Vice Chair Dana Myers, signed a letter saying that the party had a “moral obligation to speak boldly, publicly, and clearly on this matter” and demand an explanation for the Fuentes meeting.

“Fuentes' views and Stickland’s tactics are abhorrent and totally antithetical to the principles of the Republican Party of Texas and to the conservatives who have trusted [Defend Texas Liberty] for the cause of liberty and patriotism,” they wrote. “Whether this was caused by a lapse in judgment, conscious disregard, poor leadership, or a faulty moral compass –– Stickland and [Defend Texas Liberty] must ultimately accept responsibility.”

The members also called on the Texas GOP — as well as its donors — to cut all ties with Defend Texas Liberty and the myriad groups it funds until Stickland is "removed and disassociated from [Defend Texas Liberty] and its benefactor organizations and a full accounting of the meeting is provided."

Since then, the party’s disagreements have continued to escalate in public view, as Rinaldi and his allies remain largely silent on the scandal. Two weeks ago — and after a Tribune reporter reached out to more than a dozen members of the party’s executive committee regarding Defend Texas Liberty — the Texas GOP removed contact information for executive committee members from its website.

The Texas GOP did not respond to a request for comment on the move, which has been publicly blasted as an attempt to keep members from being contacted by the public.

“You don’t stand for ‘we the people’ unless they have access to you,” said Cat Parks, a former executive committee member and vice chair of the Texas GOP. “It’s not like controversy didn’t happen during my tenure.”

For now, it’s unclear what comes next for the Texas GOP and its relationship with Defend Texas Liberty, which released a two-sentence statement saying it opposes Fuentes’ “incendiary” views but has yet to provide any other details on the meeting. Stickland may no longer be leading the group, but his removal is likely cosmetic given that he also owns Pale Horse Strategies, a consulting firm that is used heavily by Defend Texas Liberty-funded groups and candidates.

Members of the party’s executive committee have said as much this week, and reiterated their calls for the party to speak out against Defend Texas Liberty and Stickland.

The Texas GOP “must renounce [Defend Texas Liberty] until a full explanation of the Fuentes meeting is provided, those responsible are held accountable and there’s new entirely new leadership (not just the same players swapping job titles),” executive committee member Rolando Garcia wrote this week on social media.

“Don’t excuse the inexcusable just to spite your political enemies,” he added.

This article originally appeared in The Texas Tribune.

The Texas Tribune is a member-supported, nonpartisan newsroom informing and engaging Texans on state politics and policy. Learn more at texastribune.org.

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Here’s who gets money from Defend Texas Liberty, the PAC whose leader met with a white supremacist

By Patrick Svitek and Carla Astudillo 

The Texas Tribune

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The recent meeting between the Defend Texas Liberty PAC leader and prominent white supremacist Nick Fuentes is bringing new scrutiny to the group’s donors and the politicians who have accepted its money.

Texas House Speaker Dade Phelan — a persistent target of the PAC — is calling on fellow Republicans to disavow the group and part ways with its money. While a handful have heeded his call, others have refused to do so and alleged Phelan is just seeking political gain.

Notably, Lt. Gov. Dan Patrick – who has taken over $3 million from the PAC — has denounced Fuentes but said Wednesday he sees “no reason” to return the group’s money and accused Phelan of an “orchestrated smear campaign.”

Either way, it represents a pivotal moment for the group, which started in 2020 and has led the charge to push state GOP officials even further to the right. It is mainly funded by Tim Dunn, a Midland oilman who has spent at least the past decade bankrolling efforts that target Texas Republicans whom he and his allies have deemed insufficiently conservative, particularly in the state House.

On Sunday, The Texas Tribune reported that Fuentes visited an office building associated with Defend Texas Liberty’s president, Jonathan Stickland, for nearly seven hours last week.

The PAC has not commented on the report other than to criticize Phelan for making an issue out of it and saying it opposes Fuentes’ “incendiary views.”

Patrick said Wednesday in a statement that he had talked with Dunn and he “told me unequivocally that it was a serious blunder for PAC President Jonathan Stickland to meet with white supremist Nick Fuentes.”

Stickland is a former rabble-rousing state representative who did not seek reelection in 2020. Early last year, he started a political consulting firm, Pale Horse Strategies, that Defend Texas Liberty has since paid over $800,000. Stickland remained the president of Defend Texas Liberty as of Tuesday, when a news release about the PAC’s latest polling identified him as such.

On paper, Defend Texas Liberty PAC started in March 2020. But the political forces driving it are not new.

Before funding Defend Texas Liberty PAC, Dunn plowed millions of dollars into a conservative group called Empower Texans that also was known for aggressively targeting House Republicans in the primary. In more recent years, Dunn’s millions have been supplemented by similar giving from Dan and Farris Wilks, billionaire brothers from Cisco who made their fortune in fracking. They burst on the national political scene in 2015, when they gave $15 million to a super PAC network supporting Ted Cruz’s presidential campaign. They are also major investors in right-wing media companies — including The Daily Wire and PragerU — that push their ultraconservative views.

Today, 90% of all money raised by Defend Texas Liberty comes from Dunn and Farris and Jo Ann Wilks. The group has collected nearly $16 million total and spent $14.8 million, funding primary challengers and allied groups like the Texas GOP who have pushed fellow Republicans to take a harder line against things like illegal immigration and transgender people.

More recently, the PAC has cemented itself as a top donor to two statewide officials, Patrick and Attorney General Ken Paxton.

The group gave $3 million in campaign funding to Patrick in June as he was preparing to preside over Paxton’s impeachment trial in the Senate. After the Senate acquitted Paxton last month on allegations of bribery and misuse of office, Patrick faced a cascade of criticism that he was essentially bought off. Patrick has defended taking the money by arguing he received just as much from the “other side” in the trial, though that is difficult to verify.

The effectiveness of Dunn’s network is constantly up for debate. Defend Texas Liberty lost most state House races it got involved in last year, but its influence can often be felt in less tangible ways. For example, Gov. Greg Abbott’s governance in 2021 took a pronounced turn rightward when he was up against a primary challenge from Don Huffines, who the PAC backed generously.

Over the years, the Republican establishment has dealt with Dunn’s activities with varying levels of confrontation. Former House Speaker Dennis Bonnen memorably sought to broker a kind of treaty with Empower Texans in 2019, taking a meeting with its leader, Michael Quinn Sullivan, to discuss election strategy. Sullivan secretly recorded the meeting, later sharing audio of Bonnen suggesting the group politically target certain House Republicans. The meeting ultimately upset so many members that Bonnen chose to step down.

Dunn’s network has weathered scandals before. In 2020, two Empower Texans staffers, Cary Cheshire and Tony McDonald, were caught on an audio recording disparaging Abbott with profanity and joking about his wheelchair use. Abbott and other GOP leaders denounced the comments, and Empower Texans said both were “suspended from all public activities.” Cheshire still works inside the Dunn-funded network, and McDonald is a lawyer whose firm continues to represent the network’s interests.

The recipients

The biggest recipient of Defend Texas Liberty’s money has been Don Huffines, who received $3.7 million from the group while running against Abbott in the 2022 primary. Huffines pushed for Abbott to take drastic action on the border, including declaring a constitutional “invasion,” and especially scrutinized his pandemic leadership, claiming credit when Abbott reversed his opposition to outlawing vaccine mandates by private businesses.

Huffines provided a statement to the Tribune that did not mention Defend Texas Liberty but said Fuentes “sucks” and Huffines has “nothing to do with him.”

“My father, a decorated war veteran, dedicated years to killing Nazis and earning commendations for liberating concentration camps,” Huffines said. “Throughout my life, I've been a steadfast friend of the Jewish community and authored pivotal pro-Israel legislation ending the BDS boycotts. While my record speaks for itself, let me be clear: I will always fight anti-semitism and communism.”

Beyond Patrick and Paxton, the PAC has made smaller contributions to 17 other current state officeholders: Agriculture Commissioner Sid Miller, Railroad Commissioner Wayne Christian, Land Commissioner Dawn Buckingham, Sen. Brandon Creighton of Conroe, Sen. Paul Bettencourt of Houston, Sen. Lois Kolkhorst of Brenham, Sen. Kevin Sparks of Midland, Sen. Phil King of Weatherford, Sen. Bob Hall of Edgewood, Rep. Tony Tinderholt of Arlington, Rep. Nate Schatzline of Fort Worth, Rep. Mark Dorazio of San Antonio, Rep. Matt Schaefer of Tyler, Rep. Carrie Isaac of Dripping Springs, Rep. Teresa Leo-Wilson of Galveston, Rep. Brian Harrison of Midlothian and Rep. Stan Kitzman of Pattison.

One of the biggest recipients of the PAC’s money was former state Rep. Bryan Slaton of Royse City, who the House unanimously voted to expel in May after a committee investigation found he had sex with a 19-year-old intern after getting her drunk. In a photo that has been widely recirculated on social media in recent months, Stickland posed with Slaton last year while handing him a large $100,000 check for his campaign from Defend Texas Liberty.

The Texas Tribune contacted representatives for most of the incumbents Wednesday and only one of them replied. Kitzman, who got a $5,000 from the PAC in his 2022 primary runoff, said in a statement he would redirect the money to “support causes that resonate with my personal values as a Christian and as a representative of House District 85.” The groups included the American Israel Public Affairs Committee.

Earlier Wednesday, another House Republican, Rep. Jared Patterson of Frisco, said he was sending $2,500 he got from Stickland’s campaign in 2018 to the Friends of the Israel Defense Forces.

Up until recently, though, Defend Texas Liberty has been better known for its spending on candidates and not incumbents. It has thrown its money behind Republicans who have run the farthest to the right in primaries, vowing to challenge House GOP leadership and staking out the most strident opposition to things like abortion, illegal immigration and gender-affirming care.

Some of the more high-profile candidates for the Texas House the PAC has funded include Shelley Luther, the Dallas salon owner who was arrested for defying a statewide COVID-19 shutdown order, and Jeff Younger, who has been in a yearslong public legal battle with his ex-wife over their child’s gender identity. Both espoused hostile views toward transgender people, with Luther questioning at one point why schoolchildren are not allowed to make fun of transgender classmates.

Neither Luther nor Younger won, but like in so many cases with Dunn-backed candidates, their well-funded runs forced the establishment to play defense and pulled other candidates, including incumbents, to the right.

Some of the Defend Texas Liberty-backed candidates are already running again next year, and incumbents have wasted little time trying to make them answer for the Fuentes meeting. Rep. Stan Gerdes of Smithville released a statement Tuesday calling on his challenger, Tom Glass, to “return and/or reject any contributions from” Defend Texas Liberty. The group gave Glass $10,000 when he ran in the primary for the same seat last election cycle.

Glass said in a statement he condemns Fuenties “and his toxic, antisemitic ideas and anyone associated with him.”

“I also condemn attempts by Dade Phelan and Stan Gerdes to exploit this tragedy for political gain,” Glass said. “Their pathetic attempts are nothing less than an attempt to distract the voters’ attention from the baseless, failed Ken Paxton impeachment debacle.”

Rep. Lynn Stucky, R-Denton, also called on his repeat challenger, Andy Hopper, to denounce Defend Texas Liberty after receiving $55,000 from it in his prior campaign. Hopper, whose son works for Pale Horse Strategies, responded with a two-page statement blasting Stucky for making an issue out of it. Hopper only briefly mentioned Fuentes, saying he just learned of him and found he has “some very insidious personal views.”

“I will not label an organization by the views of an individual who happened to enter their building,” Hopper said.

Patrick took a similar posture in his statement Wednesday, saying Phelan is “desperate to deflect attention from his failure to pass conservative legislation.”

“Those who parrot his calls for officeholders to return the money are as politically bankrupt as he is,” Patrick said.

The Defend Texas Liberty donations could not only prove problematic in primaries but also in general elections. Adam Hinojosa, who is staging a comeback bid for a battleground state Senate seat in South Texas, took $5,000 from Defend Texas Liberty in his 2022 campaign.

Asked about the donation, Hinojosa said in a statement Wednesday he planned to “donate personally to the Pregnancy Center of the Coastal Bend, which will help the organization open a new pregnancy center in Brownsville.”

The donors

While Defend Texas Liberty has attracted a handful of other donors giving at least six figures, it is largely driven by the funding of Wilks and Dunn, CEO of CrownQuest Operating in Midland.

Dunn has given $9.7 million to Defend Texas Liberty, while Wilks has contributed $4.8 million.

Neither responded to requests for comment on the Fuentes visit with Stickland. But the morning after the Tribune report, Dunn used X to highlight that he was named a “top 50 Christian ally of Israel” by the Israel Allies Foundation last year. It was his first original post on the platform since June.

Patrick said Dunn told him that Defend Texas Liberty will not have “future contact” with Fuentes and “everyone at the PAC understands that mistakes were made and are being corrected.” Patrick said he trusted Dunn.

Four other people have given six figures to Defend Texas Liberty — a small fraction of Dunn’s and Wilks’ funding but still sizable amounts for Texas politics. They include Windi Grimes, a Houston oil heiress; Phillip Huffines, a Dallas home builder and brother of Don Huffines, the 2022 Abbott challenger; Ken Fisher, a Plano money manager; and Alex Fairly, an Amarillo businessman who is active in local politics and recently gave $20 million to create an institute at West Texas A&M University to promote American values.

Two of the six-figure donors responded to requests for comment, including Fisher, who gave $100,000 in January 2022.

“Wasn't there, aren't active there, know nothing about it or him,” Fisher wrote in an email when asked about the Fuentes meeting. “Has nothing to do with my past contribution. Plain and simple.”

Fairly and an LLC connected to him gave about $181,000 to Defend Texas Liberty this spring as the group got involved in Amarillo City Council elections.

“Having no knowledge of, nor ever having met or spoken to the alleged participants in the meeting referenced in The Tribune’s article, I will not comment on the story,” Fairly said. “But I will comment on the only issue in this story that matters: Racism, in any form, dispersed by any person or organization, saddens and dismays me because I believe God created every man and woman in His image, and any attempt to lessen or denounce the value of any human based on their race does so in direct opposition to the God who created each of us.”

This article originally appeared in The Texas Tribune.

The Texas Tribune is a member-supported, nonpartisan newsroom informing and engaging Texans on state politics and policy. Learn more at texastribune.org.

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Conservative PAC leader’s meeting with white supremacist Nick Fuentes escalates GOP infighting

By Robert Downen 

The Texas Tribune

Sign up for The Brief, The Texas Tribune’s daily newsletter that keeps readers up to speed on the most essential Texas news.

House Speaker Dade Phelan strongly condemned the leader of a major conservative PAC and demanded that elected officials — including Lt. Gov. Dan Patrick — return money they received from the group, one day after The Texas Tribune reported that it had recently hosted well-known white supremacist Nick Fuentes.

"This (is) not just a casual misstep,” Phelan said in a statement. “It’s indicative of the moral, political rot that has been festering in a certain segment of our party for far too long. Anti-Semitism, bigotry and Hitler apologists should find no sanctuary in the Republican party. Period. We cannot – and must not – tolerate the tacit endorsement of such vile ideologies.”

Shortly after, Patrick denounced Fuentes and anti-semitism, but accused Phelan — whose statement noted Hamas' attack on Israel on Saturday — of exploiting the war for “his own political gain.” He called on Phelan to resign as speaker before 1 p.m. on Monday, when the Texas House is expected to gavel in for a special session on school vouchers and other contentious legislation. Patrick's statement did not mention Stickland — or his ties to and financial support from Stickland's PAC.

Campaign Action

The Tribune reported Sunday that Jonathan Stickland, the leader of Defend Texas Liberty PAC and a related consulting firm, Pale Horse Strategies, hosted Fuentes outside Fort Worth for nearly 7 hours on Friday. Fuentes is an avowed admirer of Adolf Hitler, has called for “holy war” against Jews and said that "all I want is revenge against my enemies and a total Aryan victory.”

Acting on a tip, a Tribune reporter and photographer observed Fuentes and others — including Kyle Rittenhouse, who was acquitted of homicide after killing two Black Lives Matter protesters in 2020 — enter the one-story office of Pale Horse Strategies near Fort Worth. Republican Party of Texas Chair Matt Rinaldi also was inside the office for about 45 minutes, though Rinaldi told the Tribune that he had no idea that Fuentes was there, condemned him outright and said he wouldn’t meet with him “in a million years.”

Defend Texas Liberty is funded by two West Texas oil billionaires — Tim Dunn and Farris Wilks — who are also Attorney General Ken Paxton’s biggest donors. Earlier this year, the group made headlines after it gave $3 million in loans and donations to Patrick ahead of Paxton’s impeachment trial in the Texas Senate, over which Patrick presided.

Phelan — who has long been at odds with Patrick — directly called out Patrick in his statement, which comes as tension between the two have escalated to new heights in the wake of Paxton’s impeachment trial. Phelan also demanded Monday that “any elected official” who has received money from Defend Texas Liberty or its affiliated organizations “to immediately redirect every single cent of those contributions to a charitable organization of his or her choice.”

“Furthermore, I call upon elected officials and candidates to state unequivocally that they will not accept further contributions, including in-kind contributions, from the Defend Texas Liberty PAC,” Phelan said. “Recently, Lt. Governor Dan Patrick took $3 million from this organization. I expect him to lead the way in redirecting these funds.”

Phelan also called on the Texas GOP, which has taken $132,500 this election cycle, and Rinaldi to donate funds from Defend Texas Liberty even “if doing so would take the party into the red.”

Phelan continued, drawing a direct line between Fuentes’ visit to Texas and the violence that broke out in Israel over the weekend.

“The Republican Party, at its core, champions freedom, democracy, and shared values with nations like Israel,” he said. “...Every single elected official or candidate who has received funding from the Defend Texas Liberty PAC must publicly disavow their toxic affiliation."

Paxton and Rinaldi could not be immediately reached for comment.

Patrick, meanwhile, did not say whether he would return the $3 million given to him by Defend Texas Liberty. In the statement, he slammed Phelan for what he called a “disgusting, despicable, and disingenuous” political stunt.

“Nick Fuentes and his antisemitic rhetoric have no place in the United States. Those who spew such vile, loathsome, abominations will have to answer for it,” Patrick said. “For anyone to try to use these invectives for their own political gain is below contempt. I am calling on Dade Phelan to resign his position before the House gavels in this afternoon.”

Since 2021, Defend Texas Liberty has given nearly $15 million to ultraconservative candidates as it tries to unseat fellow Republicans, including Phelan, who it argues are not conservative enough. The group is a key part of a network of nonprofits, media companies, campaigns and institutions that Dunn and the Wilks brothers have given more than $100 million to push their ultraconservative religious and anti-LGBTQ+ views.

Phelan meanwhile is at least the second Republican to call on others to return donations. On Sunday, Rep. Jared Patterson, R-Frisco,said his fellow conservatives should publicly donate funds from Defend Texas Liberty “or their astroturf groups” to an “Israel-supporting charity.”

“Unfortunately, this isn’t unbelievable,” he said in response to the Tribune’s reporting.

Campaign finance records show that in 2022, Defend Texas Liberty donated more than $5 million to candidates who challenged more moderate, incumbent Republicans. Most of that money went to Don Huffines, a real estate developer and former state senator who unsuccessfully challenged Gov. Greg Abbott in the Republican primary.

Defend Texas Liberty has also bankrolled some of the most conservative members of the Legislature, including Reps. Tony Tinderholt of Arlington and Bryan Slaton of Royse City. Slaton was ousted from the Texas House in May after House investigators found that he gave alcohol to a 19-year-old aide and then had sex with her.

Fuentes’ visit to Pale Horse comes as the far-right of the Texas GOP continues to elevate extreme rhetoric, figures and conspiracy theories amid an ongoing civil was with Phelan and other more establishment members, and as antisemitism and hate crimes continue to skyrocket in the state and nationally.

Despite his open adoration for Hitler and his violent rhetoric, Fuentes has not been entirely cast out of right-wing circles. Hard-right Republicans, including U.S. Reps. Marjorie Taylor Greene of Georgia and Paul Gosar of Arizona, have spoken at Fuentes’ annual conference alongside avowed white supremacists.

Fuentes’ acolytes have also been employed in powerful positions in the GOP. In July, the presidential campaign of Florida Gov. Ron DeSantis fired a staffer after it was revealed that he created and then shared a pro-DeSantis video that featured a Nazi sonnenrad. And, earlier this year, Ella Maulding moved from Mississippi to Fort Worth to work as a social media coordinator for Pale Horse Strategies.

Maulding has praised Fuentes as ”the greatest civil rights leader in history,” and her social media is replete with references to “white genocide” — a foundational ideology for neo-Nazi and other violent extremist movements.

Maulding was observed for several hours at the Friday meeting with Fuentes, and she spent some time outside recording a video for Texans For Strong Borders in which she called on Texas lawmakers to crack down on immigration when they meet for a special legislative session beginning Monday.

Texans for Strong Borders wants to stem both legal and illegal immigration. Its founder, Chris Russo, was seen driving Fuentes to the Friday meeting at Pale Horse Strategies.

This article originally appeared in The Texas Tribune.

The Texas Tribune is a member-supported, nonpartisan newsroom informing and engaging Texans on state politics and policy. Learn more at texastribune.org.

Ken Paxton to file criminal complaints against Texas House impeachment managers

By Alejandro Serrano

The Texas Tribune

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Texas Attorney General Ken Paxton said Monday he plans to file criminal complaints against the group of state representatives who led the impeachment against him for releasing his personal information.

“The impeachment managers clearly have a desire to threaten me with harm when they released this information last week,” he said in a statement. “I'm imploring their local prosecutors in each individual district to investigate the criminal offenses that have been committed.”

The 12 House representatives being targeted by Paxton led the impeachment trial in the Senate after the House overwhelmingly voted to impeach Paxton in May. Last month the Senate acquitted Paxton of 16 articles of impeachment that alleged corruption and bribery.

In a statement Monday, Paxton accused the House impeachment managers of violating a new state law with an Oct. 2 release of documents related to the case. The new legislation cited by Paxton prohibits posting an individual’s personal information such as a home address or telephone number with the intent to cause harm to that individual or their family.

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Paxton said he plans to file the criminal complaints in each of the eight counties represented by the dozen impeachment managers. It is not clear which address is in question. Several of Paxton's addresses are available through already-published public records, often found online from any location through local municipalities' appraisal district databases.

House lawyer Rusty Hardin, who prosecuted Paxton, said Monday that the documents released last week contained the same information that was included in other documents that had already been filed or were admitted into the impeachment trial without objection.

He also said that the information about Paxton's residence is available through public records, and has been for years. Further, he said the release of documents was not conducted with an intent to cause harm to Paxton as he alleged — it was "simply a repeat of public information to anyone that wants to look into it."

If Paxton makes good on his pledge to file the criminal complaints, Hardin said his Houston law firm will consider countering with a criminal complaint against Paxton for making a false report to police.

"This is the exact kind of bullying, uninformed vengeful act that we predicted if the attorney general was not impeached," Hardin said. "He's trying to misuse the criminal justice system to cower and punish people who sought to impeach him under the law. It's just one more outrageous, vengeful act by a man who has no business being attorney general."

This is a developing story.

This article originally appeared in The Texas Tribune.

The Texas Tribune is a member-supported, nonpartisan newsroom informing and engaging Texans on state politics and policy. Learn more at texastribune.org.

Lawsuit by Attorney General Ken Paxton’s accusers can continue, Texas Supreme Court rules

Lawsuit by Attorney General Ken Paxton’s accusers can continue, Texas Supreme Court rules

By Patrick Svitek 

The Texas Tribune

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The Texas Supreme Court has sided with former top deputies of Attorney General Ken Paxton and cleared the way for their whistleblower lawsuit to move forward.

The all-Republican Supreme Court on Friday rejected Paxton’s request to dismiss the lawsuit after the case had been on pause pending a possible settlement with the whistleblowers. The decisions came four days after the whistleblowers asked the court to reinstate the case — and about two weeks after Paxton was acquitted in his impeachment trial before the Texas Senate.

The lawsuit will return to a Travis County trial court.

"We are looking forward to obtaining a trial setting and to preparing this case for trial as soon as possible,” the whistleblowers' lawyers said in a statement.

Four whistleblowers sued the attorney general's office in 2020 for wrongful termination and retaliation after they reported Paxton to the FBI, alleging he abused his office to help a friend and donor, Nate Paul. They almost settled with the attorney general’s office for $3.3 million earlier this year — until Texas House investigators, concerned about using taxpayer dollars for the settlement, started probing the lawsuit’s claims and recommended Paxton’s impeachment.

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The series of events effectively froze the case at the Texas Supreme Court. But on Monday, the whistleblowers held a news conference to announce that they were asking the high court to jump start their case in light of Paxton’s acquittal.

“The political trial is over, and it’s time for the case to return to a real court,” whistleblower Blake Brickman said Monday.

Paxton’s office declined to comment on the news conference, saying only that its lawyers would respond in court. But it appears they did not file a reply prior to Friday’s ruling.

Brickman is a plaintiff in the lawsuit with three other former Paxton deputies: Ryan Vassar, David Maxwell and Mark Penley. The four fired deputies testified as prosecution witnesses at Paxton’s impeachment trial.

The Supreme Court provided no explanation for its decision Friday, noting only that Paxton’s petition for review was denied with Justice Evan Young not participating.

The case reached the Texas Supreme Court in early 2022, after a state appeals court and the trial judge rejected pretrial attempts by Paxton’s agency to dismiss the lawsuit.

The Texas Whistleblower Act protects state workers from retaliation by other employees for reporting potential crimes to law enforcement. Paxton has argued his agency acted properly because it has the right to fire employees “at will” and because the whistleblower law does not apply to Paxton because he is an elected official, not a “public employee.”

“Like the Governor, the Lieutenant Governor, and members of this Court, he is an elected officer, chosen by the people of Texas to exercise sovereign authority on their behalf,” Paxton’s office said in its petition for review to the Supreme Court.

Paxton’s office did not immediately respond to a request for comment on Friday’s ruling.

This article originally appeared in The Texas Tribune.

The Texas Tribune is a member-supported, nonpartisan newsroom informing and engaging Texans on state politics and policy. Learn more at texastribune.org.

Dan Patrick defends taking $3 million from pro-Paxton group ahead of trial

By Patrick Svitek 

The Texas Tribune

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Lt. Gov. Dan Patrick has defended taking $3 million from a group supporting Ken Paxton in the lead-up to the attorney general’s impeachment trial that Patrick presided over as judge.

Patrick said in a TV interview published Wednesday that the controversy over the funding ignored that he took just as much from “the other side,” including donors aligned with Texans for Lawsuit Reform, which Paxton has declared as a political enemy. Patrick gave the explanation, which was heavily caveated, in an interview four days after his Senate voted to acquit Paxton.

“[The $3 million] got headlines because people wanted to make it a headline … but I also raised almost the same amount of money from people who may not be anti-Paxton, but they weren’t out there being pro-Paxton,” Patrick said in the interview with WFAA, the ABC affiliate in Dallas. “There are a few exceptions, because some of the people supporting TLR also supported Ken Paxton.”

The funding in question came in late June, when statewide officials and state lawmakers had a 12-day window to raise money before the first reporting deadline since the regular legislative session. Patrick reported a $1 million donation and $2 million from Defend Texas Liberty PAC, a group that had led the charge to attack House Republicans who voted to impeach Paxton. A leader with the PAC later threatened political revenge against any senator who sided against Paxton in his trial.

The money grabbed attention because the Senate was gearing up for the trial at the time — the chamber approved trial rules June 21 — and Patrick had little need for the money. He is not up for reelection until 2026, he already had over $16 million in the bank as of last year, and he had also never gotten nearly as much money from Defend Texas Liberty before.

Patrick declined to comment on the $3 million in pro-Paxton money when it became public. A day earlier, he had issued a sweeping gag order ahead of the trial.

While Patrick did raise roughly $3 million more on the same fundraising report, it is difficult to verify how much was actually from the “other side” in the Paxton trial. TLR is a powerful tort reform group that has become synonymous with the GOP establishment in Austin; it heavily funded one of Paxton’s 2022 primary challengers and had urged senators to reject pretrial motions to dismiss his impeachment case.

TLR itself only gave $25,000 on Patrick’s latest campaign finance report, while its co-founder, Richard Weekley, gave $50,000.

It is true that some of Patrick’s biggest donors in late June — beside Defend Texas Liberty — were also aligned with TLR. For example, Patrick received $150,000 from real estate developer Ross Perot Jr., who had cut a $1 million check to TLR less than two months earlier.

But some of Patrick’s largest donors beyond Defend Texas Liberty were also not TLR allies. Patrick got $100,000 from Midland oilman Douglas Scharbauer, who has not given anything to TLR this year, according to the latest records. Furthermore, Scharbauer was Paxton’s second largest individual donor on the attorney general’s late June report, the first since he was impeached.

Patrick’s invoking of TLR was notable given that Paxton has pilloried the group as a force behind his impeachment. They have denied any involvement in initiating it.

Patrick backed up TLR as he sought to explain the money he got from the “other side.”

“I don’t believe they were involved in this at all, but they’re seen as, They wanted a trial and they supported other people against Ken Paxton, so anybody supporting TLR, would be thought to be [anti-Paxton],” Patrick said. “I know that’s not the case. They all weren’t.”

Disclosure: Texans for Lawsuit Reform and Ross Perot Jr. have been financial supporters of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune's journalism. Find a complete list of them here.

This article originally appeared in The Texas Tribune.

The Texas Tribune is a member-supported, nonpartisan newsroom informing and engaging Texans on state politics and policy. Learn more at texastribune.org.

Donald Trump claims credit for saving Ken Paxton

By Matthew Choi 

The Texas Tribune

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Former President Donald Trump is claiming credit for Attorney General Ken Paxton’s acquittal.

Posting on his Truth Social platform Monday, Trump claimed that his sporadic defenses on social media for his long-time ally helped sway the course of Paxton’s impeachment trial.

“Yes, it is true that my intervention through TRUTH SOCIAL saved Texas Attorney General Ken Paxton from going down at the hands of Democrats and some Republicans, headed by PAUL RINO (Ryan), Karl Rove, and others, almost all of whom came back to reason when confronted with the facts,” Trump said, naming checking former U.S. House Speaker Paul Ryan and former White House Chief of Staff Karl Rove.

Neither Republican had a formal role in the impeachment process, though Rove penned a Wall Street Journal op-ed prophesying Paxton’s demise.

Paxton was impeached over allegations that he abused his office to help Austin real estate investor Nate Paul in exchange for personal favors. The Texas House voted on a bipartisan basis to impeach Paxton in May.

But Paxton’s impeachment trial ended Saturday with acquittal on all 16 charges. Trump celebrated the verdict shortly after, praising Lt. Gov. Dan Patrick, who presided over the Senate trial, and calling for the removal of Republican House Speaker Dade Phelan. Trump, who is the only twice-impeached president in U.S. history, dismissed the charges against Paxton as “political persecution.”

That was the former president’s only public statement about the impeachment during the Senate trial. When the House voted to impeach Paxton in May, Trump posted on his social media site denouncing the proceedings and promising to target Republicans who turned against Paxton.

Paxton and Trump have long been closely aligned on policy, with the attorney general leading a lawsuit in 2020 to challenge the results of that year’s election in Trump’s favor. The Supreme Court swiftly threw out the lawsuit.

Paxton has also led a host of lawsuits against the Biden administration, ranging from attempting to toss the Affordable Care Act to challenging the constitutionality of a federal funding package. Trump also endorsed Paxton in his 2022 reelection primary, even as other Republicans including former U.S. Rep. Louie Gohmert, R-Tyler, and former Land Commissioner George P. Bush courted the former president’s support.

“Ken has been a great A.G., and now he can go back to work for the wonderful people of Texas. It was my honor to have helped correct this injustice!” Trump’s Monday post continued.

This article originally appeared in The Texas Tribune.

The Texas Tribune is a member-supported, nonpartisan newsroom informing and engaging Texans on state politics and policy. Learn more at texastribune.org.

Ken Paxton’s impeachment trial escalates Texas Republican civil war

By Robert Downen The Texas Tribune

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Hours after his acquittal in the Texas Senate, Attorney General Ken Paxton’s far-right supporters doubled down on their promises for swift retribution against fellow Republicans who supported his removal from office.

In particular, they vowed a scorched-earth campaign against House Speaker Dade Phelan, casting him as the ringleader responsible for the impeachment process and calling for him to resign immediately.

“You and your band of RINOs are now on notice,” Defend Texas Liberty PAC leader Jonathan Stickland tweeted at Phelan on Saturday, as voting continued in the Texas Senate. “You will be held accountable for this entire sham. We will never stop. Retire now.”

Paxton’s impeachment trial was the latest — and among the most consequential — battle in an ongoing civil war between the Texas GOP’s establishment members and a well-funded right wing that has for years claimed the party is insufficiently conservative.

Though the two factions generally agree on policy issues — and the Texas Legislature routinely leads the nation in passing socially conservative bills — the party’s far right has often accused members, specifically those in the Texas House, of partnering with Democrats to undermine conservative priorities.

Paxton has played a key role in that fight, and has used his office to back the issues favored by the state’s most conservative flank. In turn, he has received millions of dollars from ultraconservative donors such as oil tycoons Tim Dunn and Farris Wilks, who have buoyed his campaigns as his legal woes mounted, approval ratings dropped and other, more establishment donors invested elsewhere.

After House Republicans took the lead to impeach Paxton in May, the state’s far right again rushed to his defense: They accused Phelan of being drunk while presiding over House business and promised high-price primary challenges to House Republicans who voted to suspend Paxton from office. They erected billboards, made documentaries and paid social media influencers to parrot pro-Paxton talking points. They compared him to twice-impeached former President Donald Trump, and argued the attorney general was the victim of a “witch hunt” orchestrated by, among others, the Bush family, Democrats and the deep state.

Paxton echoed that sentiment after the vote, saying in a statement that he was the victim of a “sham impeachment coordinated by the Biden Administration with liberal House Speaker Dade Phelan and his kangaroo court.”

And, within seconds of his acquittal, Paxton’s supporters began to attack the cast of characters that they believed were responsible.

“The Texas House owes all of Texas a big apology,” said Rep. Steve Toth, a Republican from the Woodlands and a member of the House’s Freedom Caucus, which threw its support behind Paxton. “This was a sham … This is terribly destructive to the Republican Party of Texas.”

Lt. Gov. Dan Patrick — who presided over the trial but had largely avoided discussing its merits — gave a blistering speech in which he condemned the House impeachment managers and Phelan, with whom Patrick has long been at odds over school-choice legislation and other conservative bills that did not make it out of the Texas House during this year’s legislative session.

Meanwhile, prominent conservatives — including Trump — excoriated “RINOs” in the House and called for Phelan’s resignation. Paxton’s acquittal, some argued, was proof that the far right was the Texas GOP’s true standard bearer. And they promised that dramatic changes would consequently follow.

“Speaker Dade Phelan and his leadership team should be embarrassed for putting Texas through the time and expense of this political sham of an impeachment,” Matt Rinaldi, the chair of the Republican Party of Texas, said in a statement. “We invite the House Republican Caucus to choose leadership moving forward who will unify a Republican coalition behind our common goals, instead of sharing power with Democrats.”

House Republicans responded in kind, framing Paxton as corrupt and blaming his acquittal on partisan politics in the other chamber.

At a press conference following the vote, Rep. Andrew Murr, a Junction Republican and chair of the House impeachment team, excoriated Republican senators and the “millions of dollars that Mr. Paxton’s apologists have spent to influence and intimidate Texas senators and Texas constituents.”

In a statement that echoed some of Murr’s disappointment and concerns, Phelan also blasted Patrick for his post-vote “tirade.”

“I find it deeply concerning that after weeks of claiming he would preside over this trial in an impartial and honest manner, Lt. Governor Patrick would conclude by confessing his bias and placing his contempt for the people’s house on full display,” Phelan said. “The inescapable conclusion is that today’s outcome appears to have been orchestrated from the start, cheating the people of Texas of justice.”

The animosity comes ahead of a special session — likely in October — over school choice legislation that has already turned into a lightning rod for conflict between Senate and House Republicans. For the past several legislative sessions, rural House Republicans have blocked voucher legislation favored by the Senate, and Phelan and Patrick also spent much of the summer warring over the details of their chambers’ respective property tax bills.

The possibility of an even deeper rift has already prompted some in the party to call for reconciliation, fearing a Pyrrhic victory for the winner of the escalating civil war.

“The radical and divisive nature of the situation in Texas now is going to cost us terribly,” former Amarillo Sen. Kel Seliger said in an interview. “And who is going to bring the party back together once we have really torn ourselves apart, once we’re done?”

Standing outside the Senate chamber on Saturday, Toth said he expects there to be “retribution” by voters for his fellow Republicans who supported Paxton’s impeachment. And he agreed that the party’s internecine conflict has no end in sight.

“It’s a mess,” he said.

Kate McGee contributed to this report.

This article originally appeared in The Texas Tribune.

The Texas Tribune is a member-supported, nonpartisan newsroom informing and engaging Texans on state politics and policy. Learn more at texastribune.org.

Ken Paxton was acquitted at his impeachment trial, but he still faces legal troubles

For years, the powers and protections that come with being Texas’ top lawyer have helped Ken Paxton fend off ethics complains, criminal charges and an FBI investigation.

With the Texas Senate’s Saturday vote to acquit Paxton of corruption charges at his impeachment trial the Republican has once again demonstrated his rare political resilience. And he retains the shield of the attorney general's office in legal battles still to come.

After being cleared, Paxton, 60, thanked his lawyers for “exposing the absurdity” of the “false allegations” against him, and he promised to resume doing legal battle with the administration of President Joe Biden.

"The weaponization of the impeachment process to settle political differences is not only wrong, it is immoral and corrupt," he said in a statement. “Now that this shameful process is over, my work to defend our constitutional rights will resume.”

Back in office, Paxton nonetheless still faces serious risk on three fronts: an ongoing a federal investigation into the same allegations that led to his impeachment; a disciplinary proceeding over his effort to overturn the 2020 presidential election; and felony securities fraud charges dating to 2015.

Here's what to know about each.

THE FEDERAL INVESTIGATION

Paxton came under FBI investigation in 2020 when eight of his top deputies reported him for allegedly breaking the law to help a wealthy donor, Austin real estate developer Nate Paul.

The former deputies' accusation that Paxton abused his power to help Paul were at the core of Paxton's impeachment. Lawmakers in the Texas House of Representatives say it was the still-open question of funding a $3.3 million settlement in a lawsuit brought by four of the deputies that sparked the impeachment investigation.

Several of Paxton's former deputies took the witness stand against him. They recounted going to the FBI and testified that the attorney general tried to help Paul fend of a separate FBI investigation

They also testified that Paul employed a woman with whom Paxton had an extramarital affair. Another former employee, Drew Wicker, said Paxton second-in-command later discouraged him from speaking with the FBI.

Paul was indicted in June on charges of making false statements to banks. He has pleaded not guilty and was not called to testify at the impeachment trial.

The federal investigation of Paxton has dragged on for years and was shifted in February from a prosecutors in Texas to ones in Washington, D.C. In August, federal prosecutors began using a grand jury in San Antonio to examine Paxton and Paul's dealings, according to two people with knowledge of the matter who spoke on condition of anonymity because of secrecy rules around grand jury proceedings.

One said the grand jury heard from Wicker, Paxton’s former personal aide. At the impeachment trial, Wicker testified that he once heard a contractor tell Paxton he would need to check with “Nate” about the cost of renovations to the attorney general’s Austin home.

Paxton has consistently denied wrongdoing. One of his defense attorneys, Dan Cogdell, acknowledged in August that authorities were still interviewing witnesses but said the “case will go nowhere at the end of the day.”

THE SECURITIES FRAUD CASE

In 2015, Paxton was indicted on charges of defrauding investors in a Dallas-area tech startup by not disclosing he was being paid by the company, called Servergy, to recruit them. He faces five to 99 years in prison if convicted and has pleaded not guilty.

The indictments were handed up just months after Paxton was sworn in as attorney general. He won second and third terms despite them.

Paxton's trial has been delayed by legal debate over whether it should be heard in the Dallas area or Houston, changes in which judge would handle it and a protracted battle over how much the special prosecutors should get paid.

Weeks after the Republican-led Texas House voted to impeach Paxton, the state's high criminal court ruled his trial would proceed in Houston. The judge overseeing it said in August that she would set a trial date after the impeachment trial.

Cogdell said that month that if Paxton were removed from office it would open the possibility of him making a plea agreement in the case.

THE DISCIPLINARY HEARING

Also on hold during Paxton's impeachment trial was an ethics case brought by the state bar.

In 2020, Paxton asked the U.S. Supreme Court to, effectively, overturn then-President Donald Trump's electoral defeat by Joe Biden based on bogus claims of fraud. The high court threw out the request.

Afterward, the State Bar of Texas received a series of complaints alleging that Paxton and a deputy had committed processional misconduct with the suit. The bar didn't initially take up the complaints but later launched an investigation.

Last year, the bar sued seeking unspecified discipline for Paxton and his second-in-command, alleging they were “dishonest" with the Supreme Court.

Paxton dismissed the bar's suits as “meritless” political attacks. The attorney general's office has argued that because it is an executive branch agency and the bar is part of the judicial branch, the cases run afoul of separation of powers under the state constitution.

A judge overseeing the bar's case against the deputy, Brent Webster, accepted this argument. But he was reversed on appeal in July. That month, another court scheduled arguments in the disciplinary case against Paxton only to delay them when it became clear they would fall in the middle of his impeachment trial.

The attorney general's office continued to defend Paxton in the case even after he was suspended from office. If he's found to have violated ethics rules, Paxton faces the prospect of disbarment, suspension, or a lesser punishments.