A Collin County grand jury last week indicted Paxton on three counts of securities fraud. The three indictments — including two first-degree felony counts and a third-degree felony count — stem from a months-long investigation by the Texas Rangers and two special prosecutors who looked into Paxton’s securities practices before he assumed his current office.
The indictments relate to his work on behalf of Servergy, a McKinney technology company. The first degree counts allege he solicited $100,000 worth of stocks to investors on its behalf, without revealing the company was a client paying him $100,000 in compensation.
The third count alleges he failed to register with the state securities board before soliciting clients, which he had previously admitted in civil proceedings. He ultimately paid a $1,000 fine.
The investigation stemmed from a complaint filed by the liberal watchdog group Texans for Public Justice following that admission.
Following the indictment, TPJ’s Craig McDonald called for Paxton’s resignation in a statement.
“Ken Paxton has abused people’s faith in his public office. He has engaged in outright deception to personally profit at others’ expense,” he said.
The full text of the indictments can be found here.