Texas AG linked to firm under investigation by SEC for possible fraud
AUSTIN - Attorney General Ken Paxton has been linked to a Dallas-area technology firm that federal authorities have investigated for possibly defrauding its stockholders, including prominent state lawmakers who sued the company after investing hundreds of thousands of dollars, according to federal and state court records.
The U.S. Securities and Exchange Commission began investigating Servergy, a privately held technology firm based in the former state senator's hometown of McKinney in 2013. It first subpoenaed the company in October 2013. Additional subpoenas were issued in May and September 2014.
In October 2014, Servergy attorneys updated the SEC on search terms they were using to respond to the agency's request for documents, which included Paxton's name. But SEC officials said the company ultimately had failed to comply with the agency's requests.
The SEC then filed suit against Servergy in December 2014 in federal court in Dallas to compel the production of records in a probe of "possible misstatements and omissions related to Servergy's purported business relationships and technology," according to an agency press release at the time.
Read more: http://www.chron.com/news/politics/texas/article/Paxton-linked-to-firm-probed-by-SEC-6371906.php