The Big Conversation
Attorney General Ken Paxton's name has come up in a federal investigation into a company in his hometown in which he owns more than 10,000 shares.
The company, Servergy, is based in McKinney and is under investigation from the U.S. Securities and Exchange Commission for "potential misstatements" about the data servers it sells.
The Tribune's Morgan Smith has more on the investigation, which was first reported by The Associated Press:
Paxton's email address appears with about 70 other contacts in one list of search terms in a subpoena of Servergy from the SEC. His name is also included in an October 2014 letter from Servergy to the SEC describing the search terms used to produce the documents the company turned over in response to a subpoena.
According to Paxton's 2014 personal financial statement filed with the Texas Ethics Commission, he owns at least 10,000 shares in the company. The SEC filings do not indicate it is seeking documents involving Paxton or the scores of other investors and additional parties.
Paxton, meanwhile, is facing his own legal troubles, with a special prosecutor last week saying he's hoping to bring felony fraud charges against the attorney general. A Paxton spokesman has called that investigation a "political hit-job."
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Quote to Note
“If you’re looking for dirt on Ken Paxton, he’s the cleanest guy in the world. You can take a flying leap."
— Keresa Richardson, a Paxton donor whose email also surfaced in the SEC investigation into Servergy, tells The Associated Press
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