House investigators allege Paxton broke laws, engaged in misconduct for years

BREAKING: House investigators allege Paxton broke laws, engaged in misconduct for years.
(photo credit: KFDM)

FOX4 Beaumont
by Scott Lawrence
Wed, May 24th 2023, 11:31 AM GMT-7

Austin — Four investigators working for the Texas House General Investigating Committee delivered stunning testimony for several hours Wednesday, alleging a pattern of misconduct and questionable actions by Attorney General Ken Paxton for years.

The committee secretly authorized the probe in March and delivered its findings in open session Wednesday.

The four investigators testified they believe Paxton broke numerous state laws, misspent office funds and misused his power to benefit a friend and political donor.

The investigators examined a proposed $3.3 million agreement to settle a whistleblower lawsuit filed by four high-ranking deputies who were fired after accusing Paxton of accepting bribes and other misconduct.

The committee has wide-ranging power to investigate state officials for wrongdoing. Three weeks ago the House expelled Bryan Slaton, R-Royse City, on its recommendation.

It could recommend the House censure or impeach Paxton. A grand jury indicted him in 2015 on securities fraud charges. He has yet to stand trial and denies the allegations.

“I ask that you look at the pattern and the deviations from the norm, questions not just of criminal activity but of ethical impropriety and for lacking in transparency,” investigator Erin Epley told the committee. “I ask you to consider the benefits [for Paxton].”

They listened to three hours of testimony before the committee members gathered in a nearby room to discuss the information in private.

Minutes into the hearing, Paxton called into a Dallas radio show and blasted the investigation as unprecedented. Concerning the settlement, Paxton told host Mark Davis that his office always knew it would be the legislature's decision whether to authorize taxpayer money for it.

“So this is a level that is shocking to me, especially from a Republican House,” Paxton said. “This is what they have time to do as opposed to some of the important things like school choice or fixing the fact that the Court of Criminal Appeals struck down my ability to prosecute voter fraud.”

While the hearing unfolded, Public Citizen, a consumer advocacy nonprofit, called on Paxton to resign.

“If he refuses to go willingly, the Texas Legislature must act to remove him,” Adrian Shelley, Public Citizen's Texas director, said in a statement. “A running series of scandals and an alleged pattern of corruption have clouded Paxton’s entire time in office. The people of Texas simply can’t trust that he is working for their interests, not his.”

Texas House Speaker Dade Phelan's office sent KFDM/Fox 4 its first public statement against Paxton on Tuesday, firing verbal shots at the Attorney General's call for Phelan to resign after Paxton alleged the Speaker was drunk while leading the House.

It's an allegation Phelan's supporters vehemently deny, attributing his brief, muddled language last Friday night to an excruciatingly long, 14 hour session, pointing to a much longer clip as indicative of Phelan's coherence and competence, and attributing Paxton's statements to an effort to draw attention away from an investigation into his firing of whistleblowers.

Paxton released a statement Tuesday, calling on Phelan to step down when the legislative session ends.

"After much consideration, it is with profound disappointment that I call on Speaker Dade Phelan to resign at the end of this legislative session," said Paxton in a statement released Tuesday. "Texans were dismayed to witness his performance over the Texas House in a state of apparent debilitating intoxication. His conduct has negatively impacted the legislative process and constitutes a failure to live up to his duty to the public. Texans were relying on the House to pass critical conservative priorities including protecting the integrity of our elections and preventing Chinese spies from controlling Texas land. His failures as Speaker have created a credibility crisis for all Republican candidates and for our entire Party. While I hope Speaker Phelan will get the help he needs, he has proven himself unworthy of Texans' trust and incapable of leading the Texas House."

He offered no support for his claim.

Phelan's office released a statement Tuesday night, saying Paxton's comments are nothing more than an effort to distract the public from a Texas House committee investigation into Paxton's firing of four former employees who sued after they were fired by Paxton. The whistleblowers are former deputies to Paxton who say they were fired as retribution for accusing him of corruption to law enforcement. Paxton was indicted in 2015 on felony securities fraud charges. He has yet to stand trial.

Paxton is accused of persuading investors to buy stock in a technology firm without disclosing that he would be compensated for it. He has maintained his innocence and criticized the prosecution as politically motivated.

House Speaker's Phelan's office released a statement Tuesday, attributed to Cait Wittman, Communications Director for Speaker Phelan:

"This afternoon, the Texas House General Investigating Committee directed the issuance of a preservation letter to the Office of the Attorney General, the state agency that is the subject of “Matter A”, to ensure that all evidence relevant to the committee’s inquiry is not destroyed or concealed. Chairman Murr announced that pursuant to the committee’s hearing notification posted last Friday, the General Investigating Committee will meet in a public hearing on “Matter A” tomorrow, May 24, 2023, at 8:00 AM to hear the presentation of the evidence in “Matter A”. A copy of the Committee’s broadcast is archived here. Committee minutes and official House records indicate the committee has been investigating “Matter A” since March – and the motives for and timing behind Paxton’s statement today couldn’t be more evident. As outlined in the attached preservation letter, the Committee is conducting a thorough examination of the events tied to the firing of the whistleblowers in addition to Ken Paxton’s alleged illegal conduct. Committee minutes show that subpoenas have been issued. Mr. Paxton’s statement today amounts to little more than a last ditch effort to save face."

KFDM/Fox 4 News spoke Tuesday night with State Rep. Christian Manuel, a Democrat from Beaumont. Manuel says he spoke with Phelan on Tuesday, not about the allegations, but about getting things done to help Southeast Texans and the state.

"The Speaker, we talked about what's important," State Rep. Manuel told us. "No time to engage in personalities. We don't have time to worry about people slandering him."

Monday night, Rep. Manuel addressed the allegations against Phelan.

"Speaker Phelan wasn't drunk," said Manuel. "That's crazy. The Speaker was tired. He was drinking water. He went into the members' lounge and got water. People with common sense can understand that. People are being mean-spirited. Absolutely. Within seconds, he was speaking normally. We all get tired. This is a fringe group that wants to make political hate out of this. Anyone with common sense can look and see he went from being tired to gaveling out the session. We'd been going every day, 12 to 16 hours. It's exhausting."