On Friday, October 7, former Texas Attorney General Ken Paxton was acquitted of two counts of first-degree felony securities fraud and one count of failing to register as an investment adviser with the state, a third-degree felony, which were filed against him by the United States Securities and Exchange Commission.
In his 29-page ruling, U.S. District Judge Amos Mazzant said the SEC was not successful in proving that Paxton made false statements, misrepresented himself in any way, or that he had any obligations to tell his investors that he was receiving commissions investments made software company Servergy.
Paxton continues assert no wrongdoing on his behalf in encouraging his friends and colleagues to invest in Servergy, and that it was not in conflict with his being a state legislator at the time. The SEC alleged that Paxton, who was then a Colin County state representative, obtained 100,000 shares in Servergy stock for bringing in $850,000 in investment to the company.
Mazzant, who was an appointee of President Obama, is known for a tendency to reject motions to dismiss cases.
If you have been accused of a crime, get in touch with Austin criminal defense lawyer Ian Inglis Attorney at Law. Call our offices today at (512) 472-1950 to speak with a qualified member of our legal team.