AUSTIN (KXAN) — Texas Attorney General Ken Paxton is paying for his legal defense against fraud charges with $330,000 in donations, according to paperwork he filed with the Texas Ethics Commission.
According to the filing, the money came from 24 people he listed as family friends on his latest personal finance statement.
Paxton is accused of defrauding wealthy investors in tech startup Servergy Inc. He claims the civil securities fraud charges against him are politically motivated.
The Securities and Exchange Commission alleges the company and its founder, William E. Mapp, sold $26 million worth of company stock in private offerings. All the while the SEC says they were misleading investors to believe that the company’s sole product, Cleantech CTS-1000 server, was “especially energy-efficient.” The company marketed the Cleantech CTS-1000 server against top server makers like IBM, Dell, and Hewlett Packard.
“However, neither Mapp nor Servergy informed investors that those companies were manufacturing high-performance servers with 64-bit processors while the CTS-1000 had a less powerful 32-bit processor that was being phased out of the industry and could not in reality compete against those companies,” according to the SEC.
Paxton told KXAN News in January he has no intention of leaving office, despite failed attempts to have a string of criminal charges against him dropped.
“We are fighting that battle in court, I’m innocent,” Paxton said. “[I will] continue to do my job every day. That’s what I was elected to do.”