Texas AG Ken Paxton Reaches $3.3 Million Settlement With Ex-Employees in Exposure Case

DALLAS — Texas Attorney General Ken Paxton has agreed to apologize and settle a $3.3 million whistleblower lawsuit with four former employees, according to a mediated settlement agreement filed in the Texas Supreme Court today.

The lawsuit against Paxton accused him of firing former employees after they allege that Paxton committed criminal acts, according to past court documents.

The settlement, which will be paid for in public dollars, states that “Attorney General Ken Paxton acknowledges that the plaintiffs acted on what they believed was the right thing to do and apologizes for calling them ‘fraudulent employees.’ He also agreed. remove the statement from the AG website that called them “fraudulent employees”.

Paxton released a previous statement on October 5, 2020, in which he responded to the employees’ allegations and said he had decided to hire an “outside independent prosecutor” to investigate them.

“Despite the efforts of the scammers and their false accusations, I will continue to seek justice in Texas and will not resign,” Paxton said in a 2020 statement.

The Texas legislature will have to approve the settlement.

The deadline for reaching a settlement was Thursday.

“I am pleased that the OAG has recognized the legitimacy of our claims and the value of the damages we have suffered,” Mark Penley, one of the former employees, said in a statement to the WFAA. “I appreciate all seven other whistleblowers in our original team for their commitment to the importance of honesty, transparency and respect for the rule of law in government. As a group, our actions were in no way motivated by politics.”

Before being fired, Penley served for about a year as Deputy Attorney General for Criminal Justice under Paxton. He is also a former U.S. Attorney and was hired by Paxton to serve on his executive team.

“We have upheld the principles that a government agency should exercise its authority only within the law and for the benefit of the citizens of Texas,” Penley said. “Honest government should be a bipartisan ideal.”

Paxton released his own statement on Friday.

In it, he said: “After over two years of litigation with four former employees who accused me of ‘potential’ wrongdoing in October 2020, I have reached a settlement to put an end to this matter.”

He said he “choose this path to save taxpayer money and ensure that my third term as Attorney General is not weighed down by unnecessary distractions.”

However, the path to legislative approval can be rocky.

State Rep. Jeff Leach, who chairs the House committee overseeing the office of the General Assembly, said in a statement that he is “extremely concerned and concerned that hard-working taxpayers may be on the hook because of this agreement between the Attorney General and former employees his office. .”

“I spoke directly with the Attorney General this morning and made it clear that, on behalf of our constituents, there will be questions from lawmakers and lawmakers will be waiting for answers,” Leach continued in the statement.

The maximum amount each former employee can receive in non-economic damages is $250,000. In addition, they may also receive reasonable arrears and attorney’s fees.

The agreement does not specify exactly how much each employee will receive.

It says that former Deputy Attorney General for Legal Affairs Ryan Vassar will receive back pay for 27 months. This will allow him to receive a 27-month credit in the state pension plan.

In November 2020, former top deputies Penley, Vassar, David Maxwell, and Blake Brickman filed a whistleblowing suit against him, alleging that Paxton, the state’s top law enforcement officer, systematically used his office’s powers to benefit a friend. and a campaign sponsor, and then retaliated against them and four other employees when they reported it to law enforcement.

Whistleblowers claimed that Paxton and the donor met regularly in 2020. The Texas Tribune reported that whistleblowers claimed that Paxton, who is married, helped the donor because the donor gave a job to Paxton’s alleged girlfriend.

All eight employees were either fired or fired from Paxton’s office.

Paxton’s position was that, as an elected official, he was exempt from the Texas Whistleblower Act. He denies he fired them in retaliation and says he fired them due to personal differences.

The Third State Court of Appeals in Austin ruled against Paxton. He appealed to the Texas Supreme Court.

In late January, a joint lawsuit was filed in the Texas Supreme Court by Paxton’s attorneys and attorneys representing three former Paxton deputies. asked the court to “postpone consideration” of the whistleblower’s claim “until the outcome of their ongoing settlement negotiations.”

Grant Dorfman, Paxton’s deputy first assistant attorney general, signed the agreement on behalf of the attorney general’s office.

“Mark Penley has spent virtually his entire career as a prosecutor,” said Don Tittle, Penley’s attorney. — Public dismissals usually undermine the reputation. But this settlement goes a long way in restoring his impeccable reputation.”

Tittle called the settlement “very important”.

“There is often a lack of accountability in government these days,” Tittle said. “With this settlement, we believe that his claims and those of other whistleblowers have been confirmed.”