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Paxton's 'Friends' Are Still Helping Attorney General Pay For His Legal Defense

Texas Attorney General Ken Paxton during a news conference on Jan. 12, 2017.
Marjorie Kamys Cotera
Texas Attorney General Ken Paxton during a news conference on Jan. 12, 2017.

Texas Attorney General  Ken Paxton, nearly two years into his fight against state securities fraud charges, is continuing to get plenty of help from his friends to cover his soaring legal bills.

The Republican accepted nearly $218,000 in 2016 earmarked for his legal defense from “family friends” and others who Paxton says are exempted from state bribery laws that bar elected officials from receiving gifts from parties subject to their authority, according to a newly released financial disclosure statement.

Those donations are on top of more than $329,000 Paxton  accepted for the same cause in 2015.

Steven and Carrie Parsons of Dallas made last year’s biggest contribution, $75,000. They have also donated thousands of dollars to Paxton’s political campaign.

Alfred and Janet Gleason of Green Valley, Ariz. made the second biggest legal fund donation in 2016: $50,000, according to the filing. Ray and Ann Huffines also gave Paxton $10,000. Ray's brother is state Sen. Don Huffines, R-Dallas.

As attorney general, Paxton's authority could extend broadly, so in his disclosure he cited an "independent relationship" exception that allows gifts from family members and those "independent" of an officeholder's "official status."

“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,” Paxton’s disclosure form states.

In all, 15 people or couples chipped in for Paxton’s legal defense last year. And one entity called Annual Fund Inc. contributed $10,000. It funnels money to groups that make independent political expenditures — political action committees that can spend unlimited amounts of cash without disclosing where it came from. Annual Fund Inc,  according to Bloomberg, primarily gives to a group called Citizens for the Republic, whose national chairman is conservative media personality Laura Ingraham.

Paxton was indicted on charges of securities fraud in 2015. He is accused of misleading investors in a company from before his time as attorney general, and if convicted, he could face up to 99 years in prison. He has pleaded not guilty.

Paxton has beaten a similar, civil case at the federal level and is awaiting a trial date in the remaining case, which kicked off last week in Harris County under a new judge. Both sides are due back in court July 27 to continue discussing a potential schedule.

Paxton's defense team contains some of the state's top legal talent, and his legal tab is expected to reach millions of dollars.

Craig McDonald, director of the liberal watchdog group Texans for Public Justice, suggested Paxton was “exploiting” the gift loophole.

“The Attorney General is supposed to enforce the law, not stretch it. It's good to have 'friends' when you need help to stay out of jail,” McDonald said in an email. 

Patrick Svitek and Andy Duehren contributed to this report. 


From the Texas Tribune

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Jim Malewitz is an investigative reporter Tribune. He previously covered energy and environmental issues. Before arriving in 2013, he covered those issues for Stateline, a nonprofit news service in Washington, D.C. The Michigan native majored in political science at Grinnell College in Iowa and holds a master’s from the University of Iowa. There, he helped launch the nonprofit Iowa Center for Public Affairs Journalism, where he currently serves on the board of directors. Jim also coaches the Texas Tribune Runoffs, which, sources say, is the scrappiest coed newsroom softball team west of the Mississippi.