This week, a grand jury convened to hear evidence to determine whether Ken Paxton, the State’s Attorney General, should be indicted for first-degree felony charges alleging violations involving Texas securities fraud. If convicted, he could face life imprisonment, or a prison term of five to 99 years, and a fine of up to $10,000.
When Paxton was a member of the Texas House of Representative, he was hired by Mowery Capital Management to look for clients. He solicited three over a period of a few years and the firm paid him part of the asset management fees.
The Texas State Securities Board is now accusing Mowery Capital of bilking clients. Last year, the board fined Paxton $1,000 after he admitted that he was not properly registered as an investment adviser when he worked for the firm. Now, a special prosecutor is saying that Paxton broke laws beyond that civil violation and an investigation by the Texas Rangers has resulted in enough evidence to prove this.
While the state board opted not to pursue a criminal case against him, the Texans for Public Justice, a watchdog group, filed a complaint. A judge appointed two special prosecutors and a few months ago granted their request to expand the scope of the probe. A spokesperson for Paxton claims the investigation is politically motivated.