Federal judge tosses SEC suit against Texas attorney general
Source: AP
AUSTIN, Texas -- A federal judge on Thursday dismissed the U.S. government's securities fraud lawsuit against Republican Texas Attorney General Ken Paxton, who still faces criminal charges of duping wealthy investors.
But the ruling by U.S. District Judge Amos Mazzant is a significant victory for Paxton, who is scheduled to stand trial in May on felony securities fraud charges. He has pleaded not guilty and faces five to 99 years in prison if convicted.
The lawsuit filed by the U.S. Securities and Exchange Commission was nearly identical to the case brought by criminal prosecutors. Both allege that Paxton of misled investors in a high-tech Texas startup by not disclosing he was being paid by the company.
Mazzant said in his Thursday ruling that Paxton had "no plausible legal duty" to disclose his arrangement. Last year, Mazzant had tentatively dismissed the case against Paxton but gave federal regulators another chance to strengthen their case. But he was again unimpressed.
Read more: http://www.statesman.com/news/local/federal-judge-tosses-sec-suit-against-texas-attorney-general/u449oF6Ggty58UzIuQDSvM/
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