Federal securities regulators charged Texas Attorney General Ken Paxton four civil counts of fraud

AUSTIN, Texas (AP) — Federal securities regulators charged Texas Attorney General Ken Paxton Monday with four civil counts of fraud, piling on more legal troubles for the Republican already under criminal indictment for allegations that he deceived friends and wealthy investors — at least once with high-pressure tactics.

The lawsuit filed by the U.S. Securities and Exchange Commission provoked new calls from critics that Paxton should resign but no public response from state Republican leaders, including Gov. Greg Abbott.

Paxton, who has pleaded not guilty to two felony counts of securities fraud handed up by a Texas grand jury last summer, has said he won't step down and has faced no public pressure from state leaders to do so. But questions about his private financial dealings have made for a tumultuous first 16 months on the job.

The new federal lawsuit essentially mirrors the charges in Paxton's criminal case — that he defrauded investors in a high-tech startup called Servergy Inc. — but provides a far more detailed narrative of Paxton's alleged misdeeds than what has previously been made public.


http://www.usnews.com/news/us/articles/2016-04-11/texas-attorney-general-charged-with-federal-securities-fraud