UPDATED | August 1, 2015 7:55 PM


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AUSTIN (CBSDFW.COM/AP) – Texas Attorney General Ken Paxton has been indicted on felony charges according to a special prosecutor.

The Republican is accused of misleading investors before taking office.

Kent Schaffer, a Houston defense attorney appointed by a judge to the case, told The New York Times on Saturday that Collin County grand jurors indicted Paxton on counts of first-degree securities fraud and a lesser charge of not registering.

The most serious allegations are that he encouraged investment in a tech startup that’s now under investigation by the Securities and Exchange Commission.

The charges stem from activity before Paxton took office in January. Paxton was fined last year for not disclosing to Texas securities regulators he was getting commissions for soliciting investors.

Paxton’s attorney Joe Kendall says the judge in the case has instructed both parties to “refrain from public comment.”

(©2015 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)