Texas Attorney General Indicted
Texas Attorney General Ken Paxton has been indicted on securities fraud.
Paxton, the Republican attorney general of Texas and a former longtime lawmaker, has been indicted by a grand jury on charges of securities fraud and of failing to register with the state securities board, felony charges that make him the first Texas attorney general in more than 30 years to be indicted while in office, officials said Saturday.
The grand jury in the northern Dallas suburb of McKinney handed up a three-count indictment against Mr. Paxton several days ago, officials said. The indictment is to be unsealed on Monday, when Mr. Paxton is expected to turn himself in to the authorities at the Collin County Jail. The charges — two counts of first-degree securities fraud and one count of third-degree failure to register — are tied to Mr. Paxton’s work soliciting clients and investors for two companies while he was a member of the Texas House of Representatives but before he was elected attorney general in November 2014.
In the most serious charges — first-degree securities fraud — Mr. Paxton is accused of misleading investors in a technology company, Servergy Inc., which is based in his hometown, McKinney. He is accused of encouraging the investors in 2011 to put more than $600,000 in Servergy while failing to tell them he was making a commission on their investment and misrepresenting himself as an investor in the company, said Kent A. Schaffer, one of the two special prosecutors handling the case. The group of investors had been Mr. Paxton’s friends and included a colleague in the Texas House, State Representative Byron Cook.