Whipped Cream Difficulties

Okay, maybe not flames, since this is a civil suit. But I run an equal opportunity blog here, and there are also criminal charges involved.

The SEC is suing Texas Attorney General Ken Paxton.

According to the SEC, Paxton recruited investors for Servergy Inc. in 2011 without disclosing that the company was paying him to drum up support and without trying to confirm Servergy’s claims that it had developed a revolutionary new server that was, in reality, based on outdated technology.

The SEC claims that Paxton was paid $100,000 worth of stock, and, when asked about it by the SEC, claimed the stock was a “gift” from William Mapp, who was Servergy’s chairman at the time. Mapp is also accused of fraud, and a third man (“Caleb White, a Tyler businessman”) is also accused of failing to disclose commissions he received. According to the HouChron, “Servergy and White already have settled their cases by paying a combined $260,000 in penalties.”

More from the Chron:

The complaint alleges that Paxton told the SEC that he intended to pay for the shares and even offered to pay $100,000 to Mapp during a meeting at a Dairy Queen in McKinney, Texas.
According to Paxton, Mapp then said, “I can’t take your money. God doesn’t want me to take your money.” So, Paxton took the shares as a gift.

I think the important question here is: what did AG Paxton order at the Dairy Queen? Is he a Blizzard man? Maybe some sort of sundae, or possibly even a banana split? A Peanut Buster Parfait? Or is he just a humble dipped-cone sort of guy? The people demand to know!

(Damn it. I went to the DQ web site to check spellings. Now I want a S’Mores Blizzard, and the nearest DQ is miles away.)

This entry was posted on Monday, April 11th, 2016 at 6:59 pm and is filed under Law, Politics, Texas. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.