Prosecutor: Texas AG indicted for felony securities fraud
AUSTIN, Texas (AP) — A special prosecutor says Texas Attorney General Ken Paxton has been indicted on felony charges accusing the Republican of misleading investors before taking office.
Kent Schaffer, a Houston defense attorney appointed by a judge to the case, told The New York Times on Saturday that Collin County grand jurors indicted Paxton on two counts of first-degree securities fraud and a lesser charge of not registering.
The most serious allegations are that he encouraged investment in a tech startup that's now under investigation by the Securities and Exchange Commission.
The charges stem from activity before Paxton took office in January. Paxton was fined last year for not disclosing to Texas securities regulators he was getting commissions for soliciting investors.
Paxton aides didn't respond to messages seeking comment from The Associated Press.