How a $3.3M settlement against Texas AG Ken Paxton put him on path to impeachment vote
Tony Plohetski
Austin American-Statesman
When the American-Statesman broke the news in October 2020 about damning allegations by members of Attorney General Ken Paxton’s top staff that they reported to the FBI, most Texas Republicans remained reserved in their response.
Weeks later, when a whistleblower lawsuit brought by four plaintiffs revealed more specifics – including accusations that Paxton used his position to help a wealthy donor and possibly received a home remodel in exchange – GOP leaders were largely mum.
The same thing happened when The Associated Press reported in November 2020 that Paxton had arranged for the donor, Nate Paul, to employ his mistress. The reaction by his party remained largely muted.
What finally sparked the bipartisan push to impeach Paxton this week – three years after his alleged misdeeds had been widely reported? It was the money.
A statement from House Speaker Dade Phelan’s spokeswoman and a letter obtained Friday by the Statesman indicate that Paxton asking taxpayers to pay a $3.3 million settlement to the whistleblowers triggered a secret inquiry by a House investigations committee that set the impeachment effort in motion.
“This process was initiated as a result of the attorney general’s request for $3.3 million in state funds in order to settle with whistleblowers,” spokeswoman Cait Wittman said. “The attorney general made this demand of the Legislature without providing sufficient information or evidence in support of his request.”
The memo from the House Committee on General Investigating to 150 House members made the connection even more explicitly.
“We cannot overemphasize the fact that, but for Paxton’s own request for taxpayer-funded settlement over his wrongful conduct, Paxton would not be facing impeachment in the House,” it stated.
Many of the 20 articles of impeachment filed by the investigations committee closely mirror the widely reported allegations the whistleblowers made in 2020.
Paxton has said the investigation is “deceitful” and that he was not given an opportunity to defend himself.
Meanwhile, the proposed $3.3 million settlement also has not been approved and likely will not be this legislative session, which ends Monday.
From the time that the whistleblowers first made the allegations until now, lawmakers got through the 2021 legislative session without taking action against Paxton, such as limiting his office budget, often seen as an effort to curtail an elected official’s power.
And despite the allegations generating state and national headlines, Paxton was reelected in November to a third term in office. He has said that Texas voters knew about the allegations. Paxton also was charged in 2015 with securities fraud in state District Court in a case that has not gone to trial.
Paxton also has taken steps to block the whistleblowers' suit, contending that the state’s whistleblower law does not protect people who report crimes to law enforcement if an elected official is accused of participating in the crime. The court rejected that argument, which Paxton appealed. The appeal locked the case for nearly two years, preventing plaintiffs from collecting evidence and taking depositions, including from Paxton.
Plaintiffs in the lawsuit reached a tentative settlement in February, and Phelan was among the lawmakers to quickly raise questions about the use of taxpayer dollars for the payment. Under the Texas Whistleblower Act, claims must be brought against the state, not an individual officeholder.
Paxton and his staff testified before the House Appropriations Committee in February, formally asking for the settlement money.
About three weeks later, the House General Investigating Committee quietly opened “Matter A” and continued the investigation through this month.
The committee confirmed the investigation Tuesday, after Paxton called for Phelan to resign, accusing him of being intoxicated on the House floor, in what many saw as a move to deflect attention from the investigation of the attorney general.
Then the committee held an explosive hearing Wednesday in which it revealed its allegations against Paxton – both old and new. The new allegations include that he has homestead exemptions on more than one property in violation of state law – an accusation Paxton’s head of litigation, Chris Hilton, called untrue during a news conference Friday.
“Ken Paxton is a master of delaying and ducking accountability,” said Tom Nesbitt, who represents one of the whistleblowers. “He avoided depositions and discovery in our case for two and a half years. The legislative investigators thoroughly proved that the whistleblowers’ allegations are true.”
https://www.statesman.com/story/news/st ... 263101007/