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Eugene

(61,899 posts)
Fri Oct 7, 2016, 08:22 PM Oct 2016

Judge Dismisses Civil Fraud Charges Against Texas AG for Now

Source: Associated Press

Embattled Texas Attorney General Ken Paxton, who is fighting criminal charges of personally duping wealthy investors before taking office, won a major court victory Friday when a judge dismissed a nearly identical civil case brought against him by the U.S. government.

A federal judge gave the U.S. Securities and Exchange Commission two weeks to try again and refile charges against Paxton that stick, but for now, the Republican has shed one of two cases that have marred his political rise.

Paxton has spent most of his 20 months on the job under felony indictment. He has pleaded not guilty in the criminal case while trying to preserve a high profile nationally, leading lawsuits against the Obama administration over immigration, transgender rights and Syrian refugees.

The collapse of the civil case gives Paxton a long-sought court victory over allegations that he deceived investors in a high-tech startup called Servergy Inc. by not disclosing the company was paying him. He has twice lost his attempts to have the July 2015 criminal indictments against him thrown out and is currently trying again before the state's highest criminal court.

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Read more: http://abcnews.go.com/US/wireStory/judge-dismisses-civil-fraud-charges-texas-ag-now-42657099



By PAUL J. WEBER, ASSOCIATED PRESS AUSTIN, Texas — Oct 7, 2016, 7:51 PM ET
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Judge Dismisses Civil Fraud Charges Against Texas AG for Now (Original Post) Eugene Oct 2016 OP
And this is the crux of the problem: Crash2Parties Oct 2016 #1

Crash2Parties

(6,017 posts)
1. And this is the crux of the problem:
Fri Oct 7, 2016, 10:11 PM
Oct 2016
...at the heart of Mazzant's decision was his assertion that the SEC failed to prove that Paxton had a "fiduciary relationship" with the investors he recruited, and therefore had no duty to tell them that he was being paid by Servergy in the form of 100,000 shares.


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