As best I can determine, the limitations deadline for charging Texas Attorney General Ken Paxton with state securities violations is June 14, 2015. If so, that means the grand jury must indict Mr. Paxton at its meeting tomorrow or at its next meeting on Tuesday, June 9, 2015, or he cannot be prosecuted for those alleged violations.
Mr. Paxton is accused of soliciting clients for investment advisor Frederick “Fritz” Mowery without disclosing the fact that Mr. Mowery was paying him a 30 percent “commission” for the referrals. Mr. Paxton was not registered as a solicitor with the State Securities Board, and thanks to legislation that he supported as a state legislator in 2003 and 2011, someone who solicits investments without being registered commits a third-degree felony.
According to transcripts of administrative hearings that were conducted during the week of March 9, 2015, Mr. Mowery asked his clients to backdate numerous documents, including one that was backdated to June 14, 2012. (I’m probably not supposed to have the transcript, but here it is anyway; and here are the state’s closing brief and Mowery’s closing brief). According to pages 285 and 287 of that transcript, the document was backdated to make it appear that Mr. Mowery informed Henry Allen and his wife (whose first name is not listed) about the referral fee arrangement with Mr. Paxton. … Read more