HOUSTON -- Texas Attorney General Ken Paxton and prosecutors agreed to dismiss almost 9-year-old criminal charges Tuesday if the Republican state official completes community supervision and pays about $270,000 in restitution.
Terms of the 18-month intervention agreement, announced Tuesday in a pretrial hearing that had been delayed from last week, also include 100 hours of community service and 15 hours of legal education classes focused on ethics.
Paxton was to face trial on April 15 on three felony counts, including two charges of securities fraud. If Paxton, who was in the courtroom Tuesday, completes the terms of the arrangement, the charges will not appear on his record.
In a statement after the hearing, Paxton said he did not admit guilt under the agreement, which was proposed by prosecutors.
"For over a decade, my family and I have been dealing with the ongoing stress of these accusations and are relieved to finally have a resolution in this matter," Paxton said.
"The prosecution came to us to begin negotiations and we were able to come to an agreement on terms. There will never be a conviction in this case nor am I guilty," he said.
Brian Wice, who was appointed as a special prosecutor in the case, had said earlier this year that an agreement without an admission of guilt would not be appropriate in this case. But on Tuesday, Wice said Paxton's decision to pay restitution offered a rare opportunity to undo any wrongdoing to the victims.
"In a typical criminal case, victims are seldom, if ever, made whole," Wice said. "In this case, you were able to do exactly that."
Paxton will have 18 months to pay the $270,000 to former state Rep. Byron Cook and the estate of Florida businessman Joel Hochenberg, who died last year. Wice said if Paxton repays money lost in the investment deal early, he would entertain cutting short his supervision of Paxton. The agreement requires the attorney general to check in with prosecutors every 60 days.
Wice added that Paxton's community service agreement has him volunteering at a soup kitchen or food pantry in Collin County.
Wice also read a statement from a representative of Hochenberg's estate in which the family indicated they were "grateful" for the restitution and the legal work done in the case.
Paxton will not be able to use campaign funds to pay restitution, Wice said. Failure to pay would result in a resumption of court proceedings against Paxton in Harris County.
After nearly nine years since a grand jury indicted Paxton in Collin County, the case came to a close in a subdued five-minute hearing. Paxton appeared relaxed in the courtroom, dressed in a gray checked suit and flanked by a sizable defense team, which was led by Dan Cogdell and included Mitch Little, who represented Paxton during his impeachment trial last year and is running for the Texas House.
Paxton spoke very little during the hearing. He first agreed to be sworn to the agreement, known as a pretrial intervention, before acknowledging to the court that he agreed to the deal.
Before District Judge Andrea Beall accepted the agreement, she noted that she had denied attempts from Paxton's defense team to dismiss the case and that she was prepared to move forward with a jury trial next month. But she said she had no say in any agreement struck between prosecutors and defense attorneys.
"No judge can force a prosecutor to put on evidence," she said.
Beall also notified Paxton's defense team that if he failed to meet any of the terms of the diversion deal, court proceedings would promptly resume.
"Both sides understand that I would set a very speedy trial," she added.
Tuesday's events ended a threat to Paxton's political career as well as his freedom. It also presented another legal victory to an attorney general who six months ago was acquitted in the state Senate on numerous articles of impeachment.
But a whistleblower lawsuit from four former top officials remains unresolved. They claim they were improperly fired from the attorney general's office after accusing Paxton of bribery and other misconduct.
A lawsuit by the State Bar of Texas also accuses Paxton of violating his duties as a lawyer by misrepresenting a legal matter to the U.S. Supreme Court. Paxton had asked the high court to overturn Democratic victories in four swing states in the 2020 presidential election, saying Texas had proof voter fraud changed the outcome.
Paxton is also under investigation by the U.S. Justice Department over the accusations made by former officials of his agency.