North Texas media outlets report sources close to a Collins County grand jury say it indicted Texas attorney general Ken Paxton on felony charges related to securities fraud. A Tarrant County judge has already been appointed to preside over the case, according to those sources.
The grand jury heard Paxton's case presented by special prosecutors on Tuesday, including testimony from Texas Rangers investigating the allegations against Paxton. In early July, the Rangers announced they uncovered new evidence during its investigation that Paxton broke state securities laws, involving amounts in excess of $100 thousand. Reports indicate the allegations surround a McKinney-based company, Servergy, that's being investigated by the Securities and Exchange Commission.
Media sources say the charges are expected to be unsealed on Monday around noon. After the indictments are unsealed, Paxton can surrender to any of Texas's 254 jails to be photographed, fingerprinted, and booked.
Paxton does not have to resign or step down from statewide office as he prepares to face a criminal trial. He can continue to work, just as Gov. Perry did after his two felony indictments in August 2014.
Paxton was fined $1,000 last year for investment advising without registering. A first-degree felony conviction is punishable by up to life in prison.
Texas Democratic Party Deputy Executive Director Manny Garcia issued the following statement:
“While we await further information, one thing is abundantly clear: Republican Ken Paxton couldn't get away from the Texas Rangers. No politician is above the law.
“Ken Paxton has already admitted to unlawful actions related to his felony indictments. Now, a Collin County grand jury has charged him.
“It is time for Paxton to face the consequences.
“This is yet another example of the corrupt culture that fester with one-party, unchecked Republican power.”