Texas Attorney General and Tea Party Hero Ken Paxton faces additional legal troubles. Numerous outlets are reporting that the Securities and Exchange Commission has charged Paxton with misleading investors in a technology company. The SEC filed the charges Monday in federal court in Sherman. The allegations are similar to those Paxton faces in a indictment in Collin County.
Paxton is named in the SEC’s complaint along with William Mapp who founded Servergy Inc. The SEC claims that Paxton raised hundreds of thousands of dollars for Servergy without disclosing that he was earning a commission. According to the SEC complaint, Paxton persuaded five investors to put $840,000 into Servergy. One month later, Paxton received 100,000 shares of stock in the company. Paxton’s story is that the shares were a gift from Mapp and not a commission.
And this is the chief legal official of our great state.