SEC charges Texas Attorney General Paxton in alleged stock scam

Reuters News
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Posted: Apr 11, 2016 1:27 PM

WASHINGTON (Reuters) - U.S. regulators charged Texas Attorney General Ken Paxton on Monday for his alleged role in a stock scam that defrauded investors of a Texas-based technology company called Servergy, Inc.

The U.S. Securities and Exchange Commission accused the company and its former Chief Executive Officer William Mapp of selling private stock offerings while misleading investors about the energy efficiency of its sole product, and accused Paxton of working to raise investor funds for the company without disclosing his commissions.

Paxton's lawyer could not immediately be reached for comment.

(Reporting by Sarah N. Lynch)