Live updates: Texas AG Ken Paxton appears in court in felony securities fraud case

Suspended Texas Attorney General Ken Paxton will appear as a defendant in a Houston criminal courtroom Thursday as a long-delayed felony securities fraud case against him moves forward, his lawyer told the American-Statesman on Tuesday.

The morning setting in Judge Andrea Beall's courtroom is separate from Paxton's upcoming impeachment trial in the Senate where he faces removal from office. Paxton is expected to be joined in court by his lawyers. It is unclear if the judge will set a trial date.

More: Ken Paxton loses bid to have criminal case against him tried in friendly Collin County

Paxton, 60, has faced these charges since his indictment in 2015 but, to this point, has mostly steered clear of a courtroom. The case has been hung up on issues related to pay for the special prosecutors in the case and disputes on where the trial would be held.

Paxton is charged with failing to register as a securities adviser, and of defrauding investors in a Dallas-area tech startup by not disclosing he was being paid by the company, Servergy, to recruit them.

Follow live updates from Thursday's hearing:

Paxton lawyer hints at possible settlement

10 a.m. After the hearing, Paxton's lawyer, Dan Cogdell, hinted that the suspended attorney general may be willing to accept a plea deal in this case if he's removed from office in the Senate impeachment trial.

"Logically, if he's impeached in the Senate, he would have greater motivation to resolve this case, because his political career would be dead," Cogdell said.

Beall, the judge, prepared lawyers for a February trial, but did not give an exact date. The next setting is Oct. 6, when Beall is expected to rule on two issues: pay for the special prosecutors, and a motion from Paxton to dismiss the case based on his right to a speedy trial.

Paxton is charged with three felonies in the securities case. If he goes to trial, and is convicted on any felony count, he would likely lose his license to practice law in Texas. But he may be able to keep his license through a settlement that includes probation.

The impeachment trial is set for Sept. 5. Paxton faces 16 articles of impeachment. Four additional articles related to securities fraud are on hold and won't be tried at that time.

Cogdell also confirmed that federal authorities continue to investigate Paxton in connection to his relationship with Austin developer Nate Paul. Former aides in Paxton's office say Paxton misused his office to assist Paul in legal matters, and, in exchange, Paul funded a remodel to Paxton's home and hired a woman with whom Paxton had an extramarital affair.

In June, Paul was arrested and charged in federal court in a mortgage fraud case that does not involve Paxton.

Earlier this year, federal prosecutors in Washington took over the larger Paxton-Paul investigation from prosecutors in San Antonio.

Cogdell predicted the case will lead to no charges against Paxton.

"I believe that case will go nowhere, because I'm familiar with the facts," Cogdell said.

Cogdell said that if the feds do indict Paxton, that the state securities case will likely take a backseat to the federal case.

Paxton arrives to court through non-public entrance

9:25 a.m. Ken Paxton slipped in and out of the courthouse through a non-public entrance. During the hearing, he sat in the courtroom gallery with members of the public.

Paxton did not speak with reporters.

Ken Paxton's hearing begins

9:05 a.m.: Special prosecutors are bringing up an ongoing federal investigation into Paxton.

Attorney Brian Wice said that among "people in the know," the federal case went to D.C. "to die" and that could also impact the state case. Earlier this year, federal prosecutors in Washington took over the case from local prosecutors in Texas.

Paxton lawyer Dan Cogdell said he believes the federal investigation is ongoing. "Obviously, I don't know what the final decision is going to be."

Paxton has not entered the courtroom as of 8:59 a.m.

In this fraud case, prosecutors have turned over 19 file boxes of discovery information to Paxton's lawyers.

Paxton lawyers want trial to follow impeachment matter

9 a.m.: Judge Andrea Beall says her goal today is to rule on some motions, including payment fees for the special prosecutors.

In terms of setting it for trial, Paxton's lawyers asked for the judge to hold off.

"There is this impeachment thing going on," lawyer Dan Cogdell said.

Cogdell is also representing Paxton in the impeachment. He said he has no reason to think it won't go Sept. 5, as scheduled, and he is asking that the judge set the trial date after that.

Ken Paxton arrives at courthouse

8:50 a.m.: Texas Attorney General Ken Paxton has arrived at the criminal courthouse in Harris County for a hearing Thursday morning in his state securities fraud case.

The hearing is set to begin at 9 a.m. in Judge Andrea Beall's courtroom.

Special prosecutors speak before Ken Paxton hearing

8:45 a.m.: The two special prosecutors in Ken Paxton's state securities fraud case spoke with reporters before Thursday's hearing.

Kent Schaffer said he expects Judge Andrea Beall to set deadlines for motions and replies, but to hold off on giving a trial date until the conclusion of Paxton's impeachment trial in the Texas Senate. The impeachment trial begins Sept. 5.

Brian Wice, a second prosecutor, addressed the many delays in this case, which began with a 2015 indictment. The proceedings have been hung up on two issues: where the case will be held, and how much the special prosecutors will get paid. Recently, the Court of Criminal appeals ruled that the case will be held in Harris County, not in Paxton's home of Collin County. The issue on lawyer pay must still get resolved.

"I think today is the first step on a journey of a thousand miles that picks up the pace," Wice said.

Reporters arrive to courthouse for Paxton hearing

8 a.m.: Journalists from news outlets across Texas have arrived in Houston for a hearing in the felony securities fraud case against Attorney General Ken Paxton. Paxton has not yet arrived at the Harris County criminal courthouse.

The hearing is scheduled for 9 a.m. in Judge Andrea Beall's courtroom.

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This article originally appeared on Austin American-Statesman: Live updates: Texas AG appears in court in felony securities fraud case