After rumor, leaks, and speculation, now it’s official. Attorney General Ken Paxton, the top lawyer for the state of Texas, has been formally booked on three felony counts.
Paxton surrendered himself at the Collin County Court House this morning to be booked and processed on three charges: two counts of first-degree securities fraud, and the third degree felony of failing to register with the state securities regulator. He was photographed, fingerprinted, and released on $35,000 bond ($15,000 for each first degree felony, $5,000 for the third degree count). Paxton can now return to his job as attorney general.
The first degree felony charges relate to evidence found in an investigation by the Texas Rangers that Paxton served as an unregistered investment adviser for McKinney-based server company Servergy. That firm is also currently under SEC investigation for making false claims about its products and customer list to investors. Due to the large figures involved, Paxton faces 5-99 years on each count if convicted.
The third degree felony charge relates to another McKinney firm, Mowery Capital Management, and claims that yet again Paxton acted as a paid investment adviser without registering with the Texas State Securities Board. Due to the lower figures involved, the sentence here is a maximum of 10 years.
A judge has been selected for the trial. However, it is unlikely that there will be an actual court date for at least a year.
For more on the case, and the legal background to the charges, read “Paxton Indicted on Three Felony Counts”, Aug. 1.
This article appears in July 31 • 2015.
