Federal securities regulators filed
civil fraud charges Monday against Texas Attorney General Ken Paxton
over recruiting investors to a high-tech startup before becoming the
state's top prosecutor.
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Texas attorney general Ken Paxton charged with federal securities fraud for his role in a stock scam
- Paxton's charges are over recruiting investors to a high-tech startup before becoming the state's attorney general
- He is already under felony criminal indictment in Texas over allegations that he defrauded wealthy investors in the company in 2011
- Paxton, a Republican, has pleaded not guilty to the criminal charges and has repeatedly said he won't resign
- If convicted of the charges, he could face five to 99 years in prison
Continue after the break ...
Federal securities regulators filed civil fraud charges Monday against Texas Attorney General Ken Paxton over recruiting investors to a high-tech startup before becoming the state's top prosecutor.
The U.S. Securities and Exchange Commission filed the lawsuit against 53-year-old Paxton and former executives of Severgy Inc.
According to The Dallas Morning News, Paxton and Caleb J. White, 36, were charged with allegedly convincing others to buy stock in Servergy, Inc. without disclosing they were being paid to promote the company.
Federal securities regulators filed civil fraud charges Monday against Texas Attorney General Ken Paxton over recruiting investors to a high-tech startup before becoming the state's top prosecutor.
Federal securities regulators filed civil fraud charges Monday against Texas Attorney General Ken Paxton over recruiting investors to a high-tech startup before becoming the state's top prosecutor. Above he is pictured in March
The U.S. Securities and Exchange Commission filed the lawsuit against 53-year-old Paxton (center) and former executives of Severgy Inc.
The U.S. Securities and Exchange
Commission filed the lawsuit against 53-year-old Paxton (center) and
former executives of Severgy Inc.
Paxton is already under felony criminal indictment in Texas over allegations that he defrauded wealthy investors in the company in 2011.
His attorney Bill Mateja says he hasn't reviewed the civil federal lawsuit yet but that his client 'vehemently denies' any wrongdoing.
He allegedly raised $840,000 from investors for the company, for which he received 100,000 shares of Servergy stock. If convicted of the criminal charges, he could face five to 99 years in prison.
He allegedly raised $840,000 from
investors for the company, for which he received 100,000 shares of
Servergy stock. If convicted of the criminal charges, he could face five
to 99 years in prison
Paxton (pictured in August mug shot) is already under felony criminal indictment in Texas
'Despite a duty to do so, Paxton knowingly or recklessly failed to
inform the individuals he recruited that he was being compensated to
promote Servergy to investors,' the SEC charges read. The Baylor
University graduate allegedly raised $840,000 from investors for the
company, for which he received 100,000 shares of Servergy stock, the
Dallas Morning News reported.
Paxton is already under felony criminal indictment in Texas over allegations that he defrauded wealthy investors in the company in 2011.
His attorney Bill Mateja says he hasn't reviewed the civil federal lawsuit yet but that his client 'vehemently denies' any wrongdoing.
He allegedly raised $840,000 from investors for the company, for which he received 100,000 shares of Servergy stock. If convicted of the criminal charges, he could face five to 99 years in prison.
Paxton is already under felony criminal indictment in Texas over allegations that he defrauded wealthy investors in the company in 2011.
His attorney Bill Mateja says he hasn't reviewed the civil federal lawsuit yet but that his client 'vehemently denies' any wrongdoing.
He allegedly raised $840,000 from investors for the company, for which he received 100,000 shares of Servergy stock. If convicted of the criminal charges, he could face five to 99 years in prison.
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