SEC revives federal fraud case against Texas attorney general
AUSTIN -- The U.S. Securities and Exchange Commission on Friday refiled federal fraud charges against Texas Attorney General Ken Paxton, reviving a civil lawsuit that was recently thrown out for lack of evidence.
In the new filing, the federal government alleges that Paxton was involved in an investment group that had agreed that no member would pitch a company if they were receiving an additional perk not available to the group’s other members. In suggesting that they invest in the North Texas tech startup Servergy while getting paid a commission by the company, he was knowingly deceiving them, the suit claims.
“There was an expectation that if one member of the group was going to benefit from a deal, he would disclose that benefit,” the lawsuit states. “Paxton’s conduct, practice, and course of business operated as a fraud and deceit.”
The amended complaint also alleges that Paxton did not properly disclose his commission on either his taxes or financial documents he’s required to file with the state: “Paxton characterized this payment at various times as an investment for which he paid $100,000, as compensation for legal services, and as a gift in order to disguise or conceal its true nature from the investors that he recruited, from federal regulators, and from the public.”
Read more here: http://www.star-telegram.com/news/state/texas/article109770352.html
= new reply since forum marked as read
