The grand jury was out to get Ken Paxton, apparently.
Lawyers for Attorney General Ken Paxton on Thursday tried to cast doubt on the makeup of the grand jury that indicted him. They’re hoping to overturn a lower court’s decision not to dismiss the securities fraud charges against him.
Much of the discussion at the Dallas-based 5th Court of Appeals centered on the composition of the Collin County grand jury that indicted Paxton on state charges nearly a year ago, setting up a legal drama that led to federal charges earlier this year. Paxton has pleaded not guilty to the state charges, which allege he misled investors in a company in which he had personal dealings before he became the state’s top law enforcement official.
Paxton’s lawyers argued Thursday morning that the the appeals court should reverse last year’s decision by Collin County District Judge George Gallagher not to end the case against Paxton before trial. Paxton lawyer Bill Mateja told the 5th Court of Appeals that the grand jury that indicted Paxton was not sufficiently random, the result of a judge who allegedly gave prospective jurors too much leeway in removing themselves from the process.
“Quite simply, the court did not follow the rules,” Mateja said, later acknowledging that if the grand jury were voided, it would affect every case it heard, not just Paxton’s. “It is better to nip this in the bud now than allow this to fester.”
Special prosecutor Brian Wice countered that there was nothing improper about how the jury was put together, saying Collin County District Judge Chris Older, who oversaw that process, “had inherent discretion” and “acted in good faith.” Even if the jury’s composition was less than random, Wice said, Paxton’s lawyers have so far failed to show how it harmed them.
See here, here, and here for the background. Seems like a lot to ask the court for a ruling that would have the effect of potentially throwing out a bunch of other indictments, but what do I know? There was another question at issue as well.
The other point of contention was whether Paxton was properly registered as an investment adviser when he encouraged some of his own legal clients to seek the services of Frederick “Fritz” Mowery, a friend who operated an investment firm in the same building as Paxton’s law office. Paxton received a commission on these referrals.
Arguing against the third-degree felony charge, Mateja said Paxton was registered with the federal authorities because so was Frederick “Fritz” Mowery, the friend who operated the investment firm that Paxton recommended.
He added the federal investment definition for investment advisor representative “trumps the state’s definition.” He also called the state definition too broad, saying it could require people who distribute leaflets for investment firms or newspapers that advertise for them to register as a representative.
Wice disagreed, saying the state law is clear and that Paxton should have been registered with the the Texas State Securities Board.
Yes, that’s Ken Paxton’s lawyer arguing that federal law trumps state law. Because Ken Paxton has that much respect for the power of the federal government. How anyone managed to keep a straight face during this is a mystery to me.
Anyway. The courtroom proceedings were staid and boring compared to the political spectacle, which involved Paxton making a video whining about how terribly, terribly persecuted he’s being for this itty bitty financial peccadilloes. I mean, what’s a little fraud among friends, and I right? The Lone Star Project takes apart Paxton’s claims. I’m hoping the 5th Circuit judges do the same; both sides say they expect an expedited ruling, but that would still be months from now. Finally, it turns out that there’s yet another former employee of the AG’s office who is collecting salary for doing nothing. It’s a long story, so read it all; there’s a bit at the end about how this particular employee had oversight of a disastrous project to upgrade and outsource the management of child support enforcement systems. Maybe I’m reading too much into things, but that all smells fishy to me in a way that the others did not. Read it and see what you think. The Chron has more.