Texas Attorney General Ken Paxton Charged With Fraud

ken-paxton-charged-fraud

Federal securities regulators have filed civil fraud charges against Texas Attorney General Ken Paxton over recruiting investors to a high-tech startup before becoming the state’s top prosecutor.

The U.S. Securities and Exchange Commission filed a civil lawsuit Monday against Paxton and former executives of Severgy Inc. Paxton is already under felony criminal indictment in Texas over allegations that he defrauded wealthy investors in the company in 2011.

Paxton attorney Bill Mateja says he hasn’t reviewed the civil federal lawsuit yet but that his client “vehemently denies” any wrongdoing.

Paxton has pleaded not guilty to the criminal charges.

SOURCE: The Associated Press, Paul J. Weber and Jim Vertuno