Yet here comes another lawsuit against Attorney General Ken Paxton: The Securities and Exchange Commission has filed a federal civil case against him. Before his indictment on state securities fraud charges last summer, the SEC had already accused Servergy of lying to investors by falsely claiming its data servers had already been sold to huge companies, like Amazon and Freescale.
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“Paxton’s attorney Bill Mateja tells the Associated Press he hasn’t reviewed the civil federal lawsuit yet but that his client “vehemently denies” any wrongdoing”.
Paxton, a Republican, has pleaded not guilty to the criminal charges and has repeatedly said he will not resign. Those charges are still pending; a hearing is scheduled for next month on an attempt by Paxton’s lawyers to dismiss it.
“I can’t take your money”. According to a civil complaint, Paxton, while serving as a Texas state legislator, raised $840,000 for Servergy and received 100,000 shares of stock in return for his “successful efforts”, but never disclosed his commissions to prospective investors. It says AG Ken Paxton failed to disclose to investors that he was compensated for promoting the stock of Servergy Inc., according to the Dallas Morning News and the Wall Street Journal (sub. req.). Servergy cooperated with the SEC investigation under new leadership and considered Monday’s announcement the end of the matter, it said. They are similar to the allegations Paxton faces in a pending indictment handed up by a Collin County grand jury a year ago. According to Paxton, he had meant to invest $100,000 of his own money in Servergy but Mapp refused his investment, saying, “I can’t take your money”.
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Texas senator Cruz is now running second to Donald Trump in the Republican presidential primary, issued his strong praise of Paxton in 2014, as Paxton trounced a moderate Republican challenger on the way to becoming Texas’ top law enforcement officer. The SEC alleges the company and Mapp sold $26 million worth of company stock in private offerings while misleading investors to believe that the company’s sole product, Cleantech CTS-1000 server, was “especially energy-efficient”. He paid a $1,000 fine, downplayed it as an oversight and went on to handily beat an establishment Republican who counted former President George W. Bush as a supporter.
