New Verdict in Federal Fraud Case Gives Defenders of Indicted AG Ken Paxton ‘momentum,' Experts Say

AUSTIN — Attorney General Ken Paxton, who's still battling securities fraud indictments as he enters re-election year, may just have picked up a new tool to fight the felony charges against him. For the third time in two years, the federal government has failed to prove investors were willfully swindled into backing a little-known tech startup called Servergy, Inc. The first two times, it was Paxton who was cleared of civil fraud charges brought by the U.S. Securities and Exchange Commission.Now, Servergy founder and former chief executive officer William Mapp III has also been acquitted of intentionally defrauding investors. Last week, a federal jury cleared him on six of seven claims, finding him guilty on one count of negligence.  Continue reading...

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