Tyler Man Named in SEC Suit Against the Attorney General

AUSTIN (AP/STAFF) – Federal securities regulators have filed civil fraud charges against Texas Attorney General Ken Paxton over recruiting investors to a high-tech startup before becoming the state’s top prosecutor. Tyler businessman Caleb White is also named in the suit. He was named because he was paid a commission for referring investors to Servergy.

The U.S. Securities and Exchange Commission filed the civil lawsuit Monday against Paxton and former executives of Servergy Inc. The SEC accuses Paxton of defrauding investors in the tech company while he served in the Texas House. Paxton is already under felony criminal indictment in Texas over similar allegations.

Paxton attorney Bill Mateja says he hasn’t reviewed the civil federal lawsuit yet but that his client “vehemently denies” any wrongdoing. Paxton has pleaded not guilty to the criminal charges.