“Texas Attorney General Ken Paxton Strikes Settlement in Securities Fraud Case”
Ken Paxton, the Attorney General of Texas, has reached a settlement to address securities fraud charges filed by state prosecutors almost a decade ago, as confirmed by his legal representatives on Tuesday.
Ken Paxton
Paxton, a Republican and a staunch supporter of former President Donald Trump, faced indictment in July 2015 over allegations related to stock transactions and earnings from the Texas-based technology company, Servergy. Additionally, he was accused of acting as a securities agent without proper registration with the state.
Under the terms of the agreement, the state will dismiss the charges within 18 months if Paxton fulfills requirements including restitution to investors, completion of community service, and participation in legal education. Notably, Paxton will not be required to admit any wrongdoing as part of the settlement, his lawyers emphasized.
Dan Cogdell, Paxton’s legal counsel, remarked, “This case has been pending literally longer than the Beatles were together, it was time to move on.”
The resolution marks another legal victory for Paxton, known for his conservative stance, amidst persistent corruption allegations since assuming office in 2014. Previously, he thwarted impeachment efforts stemming from accusations of misusing his authority to shield a wealthy political contributor.
In addition to state charges, Paxton also faced scrutiny from the U.S. Securities and Exchange Commission (SEC) for allegedly promoting Servergy stock without disclosing financial compensation. However, the case was dismissed in 2017, with a judge ruling against the requirement for Paxton to disclose such payments.
Paxton further garnered attention within right-wing circles by challenging the results of the November 2020 presidential election, urging the Supreme Court to invalidate outcomes from four states favoring Joe Biden. The court ultimately rejected the case.
