SEC Charges Ken Paxton With Securities Fraud

by Patrick Svitek and Morgan Smith, The Texas Tribune – Texas Attorney General Ken Paxton has been charged in federal court with allegedly misleading investors in a technology company. The U.S. Securities and Exchange Commission filed the charges Monday in a Sherman-based court. They are similar to the allegations Paxton faces in a pending indictment handed up by a Collin County grand jury last year. (Read more about Ken Paxton’s legal battles here.) Paxton is named in the SEC’s complaint along with William Mapp, the founder and former CEO of Servergy Inc. Paxton is accused of raising hundreds of thousands of dollars for Servergy without disclosing he was making a commission. The case stems from when Paxton was a member of the Texas House — before he was elected attorney general in 2014. “People recruiting investors have a legal obligation to disclose any compensation they are receiving to promote a stock, and...

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