The indictments were handed up on Tuesday and will be unsealed Monday. Paxton faces three felony charges: two counts of first-degree securities fraud and a third-degree charge of failing to register with the state securities board, The New York Times reported.
Paxton's office did not immediately return a request for comment.
Paxton is accused of misleading and encouraging investors to put over $600,000 in a technology company without disclosing that he received a fee on their investment and while serving in the Texas House of Representatives, The New York Times reported.
Paxton also had a similar arrangement with a financial management firm that was accused of “unethical and fraudulent conduct,” The Dallas Morning News reported in May. Last year, Paxton admitted to the Texas State Securities Board that he improperly did not register as an investment adviser when referring clients, and paid a $1,000 fine.
But failing to register with the board can also be prosecuted as a criminal charge. After Paxton paid the fine, a watchdog group then filed a complaint asking that Paxton face criminal charges, which eventually led to an investigation by the Texas Rangers. A special prosecutor appointed in the case told WFAA in May that the investigation had led to new evidence.
Paxton can surrender and get booked at any of the state's county jails, according to WFAA. He does not have to leave office while facing trial.
How to vote
Vote-by-mail ballot request deadline: Varies by state
For the Nov 3 election: States are making it easier for citizens to vote absentee by mail this year due to the coronavirus. Each state has its own rules for mail-in absentee voting. Visit your state election office website to find out if you can vote by mail.Get more informationTrack ballot status
In-person early voting dates: Varies by state
Sometimes circumstances make it hard or impossible for you to vote on Election Day. But your state may let you vote during a designated early voting period. You don't need an excuse to vote early. Visit your state election office website to find out whether they offer early voting.My Election Office
General Election: Nov 3, 2020
Polling hours on Election Day: Varies by state/localityMy Polling Place