Ken Paxton's lawyers fight SEC bid to subpoena 15 more in fraud investigation
Lawyers for Texas Attorney General Ken Paxton say the U.S. Securities and Exchange Commission cannot "shoot first and investigate later" as they seek to block 15 new subpoenas issued by the SEC.
It is the latest argument by Paxton’s attorneys in their effort to show the SEC is scrambling to save its civil securities fraud case against the attorney general, who is headed to trial later this year on similar criminal charges at the state level. Fighting the SEC charges, his team has already cast doubt on the credibility of a key witness in both cases, State Rep. Byron Cook, R-Corsicana.
The new subpoenas, issued Tuesday, largely seek communications Paxton may have had with any other investors in Servergy, the North Texas start-up whose investors Paxton is accused of misleading from a period before he was elected Texas' top law enforcement official in 2014.
"The SEC cannot now attempt to bolster its faltering case … by fishing around in discovery for information about other potential investors whom the SEC has not pled with any particularity that Mr. Paxton defrauded,” Paxton’s lawyers wrote in their latest filing.
Read more: https://www.texastribune.org/2017/01/13/paxton-lawyers-fight-new-subpoenas-sec/
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