The Factual Record of Ken Paxton

Before he was even sworn in, state regulators had flagged Paxton's investment activities. He had been soliciting investors for Servergy Inc., a technology company, without proper registration. The investigation would later lead to criminal charges.

Prosecutors alleged Paxton solicited investors to buy stock in Servergy Inc., a Dallas-area technology firm, without disclosing he would be compensated. He persuaded five investors to put $840,000 into Servergy in 2011, and a month later received 100,000 shares of stock. Paxton told SEC investigators the shares were a "gift," not a commission. One of the complainants was Byron Cook, then a fellow Republican state representative.

Special prosecutors were appointed because local prosecutors had conflicts of interest. Years of disputes over how much these prosecutors should be paid stalled the case. The trial was moved between multiple counties. The delays meant Paxton served the better part of a decade as the state's top law enforcement officer while under pending felony indictment. No ordinary citizen would have had such leverage to delay their own trial.

The whistleblowers alleged Paxton used his authority to intervene in legal matters benefiting Nate Paul, an Austin real estate developer under FBI investigation who had donated to Paxton's campaign. Specific allegations included bribery, sharing confidential law enforcement information with Paul, and hiring an outside attorney to investigate Paul's adversaries using state resources. All eight whistleblowers were subsequently fired, placed on leave, or pushed out of the AG's office.

The lawsuit asked the Court to block the certification of election results in four states that President Biden won. SCOTUS rejected the case for lack of standing, with the Court finding Texas had not demonstrated a legally cognizable interest in how other states run their elections. The suit was criticized by legal scholars across the political spectrum. Some observers noted the suit was filed shortly after Paxton had allegedly sought a presidential pardon for his securities fraud charges.

Paxton appeared on stage at the rally preceding the Capitol breach and touted his failed legal effort to overturn the election. His wife, State Sen. Angela Paxton, also attended. After the attack, Paxton claimed without evidence that rioters were liberal activists posing as Trump supporters — a claim PolitiFact rated false. He was the only state AG to decline to condemn the attack and has refused to release his communications surrounding the event.

Four of the original eight whistleblowers sued under the Texas Whistleblower Act, alleging they were fired in retaliation for reporting Paxton to the FBI. Paxton tentatively settled for $3.3 million in Feb 2023 but needed legislative approval to pay with state funds. The Legislature's refusal to fund the settlement — with Republicans and Democrats balking — drew increased scrutiny that catalyzed the House impeachment investigation. In April 2025, Travis County District Judge Catherine Mauzy ruled the whistleblowers had proven their case and ordered the AG's office to pay $6.6 million. Paxton dropped the appeal in July 2025, locking in the taxpayer-funded payment.

The 121–23 vote included a large majority of Paxton's fellow Republicans. It made Paxton only the third sitting official in Texas history to be impeached. The House General Investigating Committee, led by Republicans, had conducted weeks of investigation before recommending impeachment. The 20 articles covered a sweeping range of allegations. Paxton was immediately suspended from office pending the Senate trial.

Conviction required a two-thirds supermajority. The Senate is more conservative than the House. No article reached the 21-vote threshold for conviction; the highest count was 14 votes. Angela Paxton's mandatory attendance created an extraordinary spectacle — she sat through testimony that included allegations of her husband's extramarital affair while unable to cast a vote. Paxton was reinstated as AG immediately following acquittal.

Under the pretrial diversion, Paxton was not required to enter a plea and did not admit guilt. His attorney stated there was "no admission of guilt because he is not guilty." After nearly nine years of delays, the felony charges that had loomed over his entire tenure as AG were dismissed without trial. Legal experts noted that ordinary defendants facing first-degree felony securities fraud charges rarely receive such terms; pretrial diversion is more commonly offered for less serious cases.