Texas attorney general charged with securities fraud
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Ken Paxton is charged with misleading investors.
Paxton is named in the SEC’s complaint along with William Mapp, the founder and former CEO of Servergy Inc. Paxton is accused of raising hundreds of thousands of dollars for Servergy without disclosing he was making a commission. The case stems from when Paxton was a member of the Texas House — before he was elected attorney general in 2014.
“People recruiting investors have a legal obligation to disclose any compensation they are receiving to promote a stock, and we allege that Paxton and White concealed the compensation they were receiving for touting Servergy’s product,” Shamoil T. Shipchandler, director of the SEC’s Fort Worth regional office, said in a news release on the complaint.
Paxton has pleaded not guilty to the three felony counts he faces in the criminal case.
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