Texas attorney general indicted for felony securities fraud

Paxton admitted last year that he solicited investment clients for a friend and business partner at Mowery Capital Management without properly registering with the state.

The attorney general of Texas has been indicted on securities fraud and other charges over an alleged scheme to mislead investors in a technology company, the New York Times and other media reported on Saturday.The three-count indictment against Ken Paxton, a Republican, will be unsealed in Dallas on Monday, when the former longtime state lawmaker is expected to turn himself in to authorities, according to the Times.

That came after Schaffer and his co-special prosecutor in the case, Brian Wice, issued a statement that only hinted at the indictment.

January 2015: The Travis County district attorney’s office closes its investigation in the failure-to-register case, explaining that it wasn’t the proper venue.

A Tarrant County judge has been appointed to hear the case, the sources said. The defense attorneys said they were dedicated to ensuring that anyone accused of a crime is guaranteed a presumption of innocence and a fair trial.

No comment from Paxton’s office, but his spokesman has repeatedly said this is exclusively a civil and not a criminal matter.

“Because our statutory mandate as special prosecutors is not to convict, but to see that justice is done, our commitment to these bedrock principles remains inviolate”, they said. Shaffer told the Times Saturday that Paxton is accused of encouraging investors in 2011 to dump more than $600,000 into the company, all while failing to tell them that he was making a commission on their investment. Paxton also allegedly steered clients into investing in a tech firm without telling him he was being paid a commission. That charge, a third-degree felony, could bring two to 10 years in prison if convicted. He was reprimanded and fined $1,000 by the State Securities Board.

He is mentioned as a possible candidate for Texas attorney general.

Paxton leaves the state House and wins a Texas Senate seat covering most of Collin County and some of Dallas County.