texas

AG Paxton Surrenders, Indictments Unsealed Amid Rallies Calling for Resignation

The state's top lawyer, Texas Attorney General Ken Paxton, surrendered to law enforcement at the Collin County Jail Monday morning after being indicted last week on three felonies.

Paxton's attorney, Joe Kendall, released the following statement Monday afternoon:  

"Attorney General Ken Paxton will plead not guilty to these accusations and he will demand a trial by jury. He is looking forward to the opportunity to tell his side of the story in the courtroom of Tarrant County Judge George Gallagher, who was appointed to the case after Judge Chris Oldner’s recusal on July 29. Judge Gallagher has given instructions to make no further public comments or publicly speculate on events. Attorney General Paxton and I intend to comply with Judge Gallagher’s instructions. In the meantime, the Attorney General is returning to Austin to focus on his work on behalf of the citizens of Texas." 

NBC 5's Scott Gordon was the first to report the indictments and that they would be unsealed at noon Monday.

Paxton surrendered to law enforcement and was booked into the Collin County Jail at about 10:30 a.m. Monday, NBC 5's Scott Gordon reported, and he left about an hour later.

Attorney General Ken Paxton’s lawyer says Paxton will plead not guilty to three felony counts of securities fraud. He’s accused of misleading investors before becoming the state’s top lawyer. He was booked and released in Collin County Monday morning.

The general's surrender came about an hour before opponents called for his resignation at a rally outside the Collin County Courthouse and about 90 minutes before the indictments were unsealed.

"Under the circumstances, which include the fact that he is our top lawyer for the state, he needs to resign," said Carol Donovan of the Dallas County Democratic Party. "Though he is innocent until proven guilty, he's now trying to go forward to enforce the laws, and yet he's been accused and indicted, in fact, of not obeying the law."

“I think everybody is waiting," said Democratic Representative Chris Turner, from District 101. "I think people, whether they are supporters of General Paxton or they have questions like I do, I think people want to hear from him, want to understand his side of the story, why he is facing these criminal charges and assurance he can continue to do his job as our Attorney General. He has a very important job he was selected to do. Whether he has the focus and time and energy to do that job right now I think is in question.”

Paxton faces three felony charges. One of the counts is for soliciting clients for investment deals without being registered as a broker. He admitted the violation and paid a $1,000 fine to the Texas Securities Board.

After being booked Monday morning, Texas Attorney General Ken Paxton leaves the Collin County Jail, Aug. 3, 2015.

The other two charges accuse Paxton of steering investors to pour more than $600,000 into a McKinney company called Servergy, which claims to have invented a cutting-edge computer server.

Servergy’s new top executive, Lance Smith, who took over in September 2014, acknowledged the company did give Paxton 100,000 shares, which was worth $100,000, for no money down.

“He did do advisement work for the company in the past,” Smith said. “Unfortunately, that was a situation that happened prior to my becoming CEO.”

Servergy’s founder and previous CEO, Bill Mapp, no longer runs the company on a day-to-day basis although he remains an investor, Smith said.

The company now markets itself as an online data storage service and is making money, he said.

“The company is not a fraud,” Smith said.

"No question, we are troubled," said Republican state Representative Jason Villalba of Dallas.

The state’s top lawyer, Texas Attorney General Ken Paxton, surrendered to law enforcement at the Collin County Jail Monday morning after being indicted last week on three felonies.

Though Republicans admit the charges are troubling, they are reserving judgment.

"I think most Republicans like myself remain steadfastly supportive of General Paxton and we'll see how it plays out," said Villalba.

“Everyone is entitled to due process under the law," Gov. Greg Abbott said in a statement. "As a former judge, I recognize this is the first step in a lengthy process and will respect that process as it moves forward.”

"It is important to recognize that an indictment is not a conviction," Lt. Gov. Dan Patrick said in a statement. "Under our Constitution, every person is innocent until proven guilty. I am confident our judicial system will weigh all the facts and applicable law with a blind eye for justice and Ken Paxton, like anyone else, will be afforded his day in court."

"I don't think he should step down," said Jonathan Neerman, former Dallas County Republican Party Chairman. "I think he's innocent until proven guilty. And I don't think this will affect the day to day workings of the Attorney General's office."

“I don’t think he should step down. I think he has done a great job since he got in in January," Republican Representative Matt Krause, from District 93, said in a statement. "I think he can still continue to do a great job, even with this indictment, and again an indictment is not a conviction. He has not been convicted of doing anything wrong. I don’t think he will step down, and I think he will continue to do the job he is supposed to do as AG."

NBC 5's Scott Gordon and Julie Fine contributed to this report.

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