Texas Attorney General Ken Paxton may yet face criminal charges for peddling shady investments to his former clients, and his friends in high places may not be able to save him. On March 6, 2015, I sent a letter to Collin County grand jurors explaining that they can investigate and indict Paxton on their own initiative, regardless of whether District Attorney Greg Willis recuses his office from the case. Judging from the initial feedback that I have received, I believe the grand jury will give the matter fair consideration during its meeting tomorrow.
Willis’s campaign website still features pictures of him alongside Paxton, and although their longtime friendship does not legally disqualify Willis from the case, Willis’s silence is creating an appearance of impropriety. The Travis County District Attorney’s Office publicly acknowledged its investigation of Paxton last year before deciding on January 29, 2015 that Travis County was the wrong venue, and most of the relevant facts are already matters of public record, thus there is no reason for Willis to be secretive about whether he is investigating Paxton. One might conclude that he is keeping quiet until the limitations period lapses.
Unlike the bogus charges against former Governor Rick Perry, the case against Paxton has legs. On May 2, 2014, Paxton signed an agreed order with Texas Securities Commissioner John Morgan admitting that he referred clients to his friend’s investment company even though he was not a registered securities representative (he also failed to disclose that he was getting a 30 percent kickback on investment management fees). As I wrote in my letter to the grand jury, I am surprised that his attorney let him sign that document because, in my legal opinion, Paxton’s signatures on the order and the attached affidavit are an admission that he committed a third-degree felony. … Read more