Sounds sexy, but don’t get too excited just yet.
Attorney General Ken Paxton is being investigated under bribery and corrupt-influence laws for accepting a six-figure gift from a CEO whose company was under investigation by the state for fraud, the district attorney leading the probe confirmed Thursday.
In July 2016, Austin-based medical device company Preferred Imaging LLC agreed to pay a $3.5 million settlement after a multiyear Medicaid and Medicare fraud investigation. The year before, Preferred Imaging CEO James Webb had given $100,000 to help Paxton fight criminal fraud charges the attorney general has been battling since July 2015.
On Thursday, Kaufman County District Attorney Erleigh Wiley confirmed to The Dallas Morning News that she has been investigating whether Paxton broke state laws that put limits on gifts public servants can receive from people “subject to [their] jurisdiction.”
“There is an active investigation looking into that matter,” Wiley told The News. “We are carefully and thoroughly going through every piece of evidence.”
The complaint that led to the investigation was originally made to the Texas Rangers by the attorney of the same whistleblower that launched the probe into Preferred Imaging. Instead of appointing a special prosecutor to investigate, Wiley took it over at the behest of the regional administrative judge.
Wiley, a Republican, added she was close to deciding whether to send the case to a grand jury and said she’s received “great cooperation” from both the Texas Rangers and Paxton’s legal team.
He listed the amounts under the “gifts” section of his annual financial disclosures, and last year, added this note to the end of the form: “All gifts for legal defense were conferred and accepted on account of a personal, professional, or business relationship independent of General Paxton’s official status.”
Webb’s 2015 donation was the largest single gift to Paxton’s legal defense fund. He did not contribute last year.
Texas’ bribery laws prohibit elected officials from taking “any benefit from a person the public servant knows to be subject to regulation, inspection, or investigation by the public servant or his agency.” Excepted are gifts “conferred on account of kinship or a personal, professional, or business relationship independent of the official status of the recipient.”
The Texas Ethics Commission has not signed off on elected officials receiving donations that aren’t campaign-related from out-of-state friends and business associates. In 2016, it punted a request to sign off on such an arrangement made by an anonymous official in Paxton’s agency.
It’s a long story and kid of hard to summarize, so go read it and see what you think. I think this is unlikely to turn into an indictment, but perhaps there’s more to it than it appears. If it does, I’m sure Paxton and his squadron of defense attorneys will find a way to claim it’s another partisan witch hunt, despite Kaufman County being more Republican than Collin. We’ll see how it goes. The Trib and the Chron have more.