Post by pavel on Apr 11, 2016 17:43:58 GMT -6
Dramatically increasing the legal jeopardy faced by Texas Attorney General Ken Paxton, federal regulators on Monday accused the high-profile Republican of defrauding investors in a McKinney tech company while he was a member of the Texas House.
The accusations, contained in a federal lawsuit by the U.S. Securities and Exchange Commission, were based on the same acts that last year led to state criminal charges against Paxton — revealing more details about the private business deals than had been previously known.
According to the SEC, Paxton recruited investors for Servergy Inc. in 2011 without disclosing that the company was paying him to drum up support and without trying to confirm Servergy’s claims that it had developed a revolutionary new server that was, in reality, based on outdated technology.
Paxton targeted friends, business associates, clients of his law firm and other members of an investment group, securing $840,000 from five investors without revealing that he was paid $100,000 worth of Servergy stock to promote the company, the SEC said.
Read more: www.statesman.com/news/news/feds-accuse-ag-ken-paxton-of-fraud/nq3xR/
The accusations, contained in a federal lawsuit by the U.S. Securities and Exchange Commission, were based on the same acts that last year led to state criminal charges against Paxton — revealing more details about the private business deals than had been previously known.
According to the SEC, Paxton recruited investors for Servergy Inc. in 2011 without disclosing that the company was paying him to drum up support and without trying to confirm Servergy’s claims that it had developed a revolutionary new server that was, in reality, based on outdated technology.
Paxton targeted friends, business associates, clients of his law firm and other members of an investment group, securing $840,000 from five investors without revealing that he was paid $100,000 worth of Servergy stock to promote the company, the SEC said.
Read more: www.statesman.com/news/news/feds-accuse-ag-ken-paxton-of-fraud/nq3xR/