Paxton takes gift from investigation target

Whether you’re a supporter or a detractor of Texas Attorney General Ken Paxton, news that he accepted a $100,000 gift from the president of a company under investigation by his office’s Medicaid fraud division should make you squirm.

Ethics and legal experts say there’s no clear violation of Texas laws. Still, the appearance of a conflict is not good.

Paxton is taking donations to defray legal costs as he fights two state counts of first-degree felony securities fraud and a related third-degree felony charge. He also faces a lawsuit from the U.S. Securities and Exchange Commission.

The charges and the suit allege that Paxton enticed people to invest in a technology company without disclosing that he was paid to do so.

The $100,000 gift came from James Webb, president of Preferred Imaging Llc. of Dallas, which was alleged to have violated Medicaid rules.

Paxton’s office said Justice Department lawyers handled the case, that Paxton’s office participated but had little involvement and that Paxton did not take part.

This story was originally published July 27, 2016 at 6:01 PM with the headline "Paxton takes gift from investigation target."