A criminal securities fraud investigation of Texas Attorney General Ken Paxton found evidence of wrongdoing that may lead to first-degree felony charges, a special prosecutor said Wednesday.
Special prosecutor Kent Schaffer said Wednesday night that a Texas Rangers investigation revealed that laws were broken beyond the admissions Paxton made to the Texas State Securities Board in May 2014.
Schaffer said he will ask a Collin County grand jury to indict Paxton on first-degree felony charges of violating state securities law.
The State Securities Board fined Paxton $1,000 last year . He admitted that while he was in the Legislature he solicited clients for a friend’s investment firm – Mowrey Capital Management – a without being registered as an investment adviser. He paid the fine and was reprimanded by the Securities Board.