Texas attorney general is charged with securities fraud
Texas Attorney General Ken Paxton. Image from Collin County.
Updated: Texas Attorney General Ken Paxton was charged with securities law violations Monday.
Paxton turned himself in at the Collin County Jail on Monday and was released on bond, report WFAA-TV, the Dallas Morning News, Bloomberg News and the Dallas Business Journal. The indictments were unsealed at about 11:30 a.m. Monday, according to the Dallas Business Journal.
Paxton was charged with securities fraud and failure to register with the state securities board.
The charges involve Paxton’s work soliciting investors on behalf of a technology company, Servergy Inc. Paxton is accused of failing to tell investors he was making a commission on the investments and misrepresenting to investors that he had himself invested in the company, according to a New York Times story published before Paxton’s arrest. The alleged wrongdoing occurred before Paxton became attorney general. The Wall Street Journal (sub. req.) also had an early story.
Paxton’s lawyer, Joe Kendall, says he can’t comment because of an order by the judge in the case. Previously, a Paxton spokesman has claimed the case against Paxton, a Republican, was politically motivated.
ABAJournal.com: “Securities allegations against Texas attorney general will be presented to grand jury”
Last updated at 1:02 p.m. to include Paxton’s mug shot and note that the indictments have been unsealed. Also updated soon after publication to correct wrong word noted by commenter.