Texas AG Hit with Securities Fraud Charges by SEC

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http://www.chron.com/news/politics/...ities-fraud-charges-filed-against-7241385.php

AUSTIN -- Federal regulators on Monday sued Texas Attorney General Ken Paxton for allegedly committing securities fraud, the same charge he is fighting in a state criminal court.

The civil lawsuit, filed Monday in an East Texas federal court by the U.S. Securities and Exchange Commission, alleges that Paxton raised nearly $1 million for a Collin County technology startup without disclosing to the investors that he was being compensated to promote the company.


The firm, Servergy, Inc., also was named in the complaint, as were former company officials William Mapp and Caleb White. Servergy and White already have settled their cases by paying a combined $260,000 in penalties, according to the SEC.

A Paxton lawyer indicated the attorney general would not be settling.

"Mr. Paxton vehemently denies the allegations in the civil lawsuit and looks forward not only to all of the facts coming out, but also to establishing his innocence in both the civil and criminal matters," said the lawyer, Bill Mateja.