Texas Attorney General Battles Renewed Fraud Charges

Oct 27, 2016

Credit Dallas Morning News

Texas Attorney General Ken Paxton is once again facing accusations of fraud from investors, reports The New York Times.

The federal Securities and Exchange Commission has refiled a lawsuit against Paxton. A judge previously dismissed the case, but the charges found their way back to federal court this week. The Texas A.G. is also still fighting a separate securities fraud case, which could carry a possible prison sentence of five to 99 years.

The two cases are almost identical. Back in 2011, when Paxton was a Republican state legislator, he recruited wealthy investors for a high-tech start-up called Servergy Inc. Investors charge that he misled them by not disclosing that the company was paying him when he asked them to invest. Paxton’s lawyer said the A.G. was disappointed by the S.E.C.’s decision to return to court.