A grand jury has indicated Texas Attorney General Ken Paxton. Although the indictment will not be unsealed until Monday, sources state that charges involve felony violations of securities laws.
Paxton is no stranger to tangling with securities regulators. Last May he was disciplined by the Texas State Securities Board after he solicited clients for a friend’s investment firm without first filing as an “investment advisor” (per State law).
All of these violations occurred while Paxton was a member of the Texas Legislature.
He paid a $1,000 fine, calling it an “administrative error.” Of course — blame it on the poor secretary. Maybe he was just practicing for the big leagues?
Monday’s indictments look to be something a little more serious. His previous violations led to an in-depth investigation involving special prosecutors and the Texas Rangers (law enforcement — not baseball). During the investigation, the Rangers uncovered other, more serious, violations involving losses in excess of $100,000.
All indications are that charges relate to Paxton’s relationship and dealings with Severgy, a McKinney, Texas company currently under investigation by the Securities and Exchange Commission.
Let’s follow the trail, shall we?
- Paxton’s state filings show he owns at least 10,000 shares of Severgy.
- His name appears as a search term in SEC filings accusing Severgy of misleading investors.
- The SEC filings also contain Paxton’s e-mail address.
- William Mapp, founder of Severgy, was seen entering the courthouse and around the grand jury room with his attorney.
Following in a long line of Texas Republican politicians indicted while still in office, Paxton need not step down from his position as head legal eagle in the State. Once the indictments are unsealed, he can appear at any county jail in the state, get his complimentary mug shot and fingerprinting, and be on his way. If the timing is right he’ll be back in the office before lunchtime, conducting “business as usual.”
Watch a news report about Paxton’s indictment below, courtesy of WFFA 8 News:
Check back with If You Only News for further updates on this unfolding story!
Featured image courtesy of egbertowillies.com