He’s just now a statewide ethical morass.
A state judge will determine whether to revoke the securities license of Frederick Mowery, who was linked to the State Securities Board’s May reprimand of Attorney General-elect Ken Paxton, for allegations that included failure to disclose conflicts of interest, plagiarism and lying to investigators.
Mowery was given 20 days to respond to the allegations — announced Tuesday by the securities board — and invited to appear at a Jan. 27 hearing before an administrative law judge in Austin.
Mowery and his McKinney company, Mowery Capital Management, became embroiled in the race for attorney general last May, when Paxton agreed to a securities board reprimand and $1,000 fine for soliciting clients for Mowery’s firm, receiving 30 percent of management fees without registering as an investment adviser representative as required by state law and without disclosing the business relationship to potential clients.
The order notifying Mowery of the allegations did not mention Paxton by name.
However, the order accused Mowery of falsifying disclosure documents for a solicitor who appears to be Paxton — the circumstances and language used to describe the relationship between the unnamed solicitor and Mowery appear verbatim in the security board’s reprimand of Paxton.
According to the allegations, Mowery backdated notices disclosing the solicitor’s compensation arrangement to make it appear that two clients were properly notified about the arrangement.
I don’t know what effect this might have on any of the pending actions against Paxton, but I figure if Mowery has his license revoked it won’t look too good for our AG-to-be. I also strongly suspect there are more shoes to drop here. Should be an interesting year next year.