Texas AG Paxton Asks Court to Dismiss Civil Fraud Lawsuit

[Eugene]

Source: Associated Press

Texas AG Paxton Asks Court to Dismiss Civil Fraud Lawsuit

By JIM VERTUNO, ASSOCIATED PRESS AUSTIN, Texas — Jun 9, 2016, 6:01 PM ET

Calling it a "dramatic overreach" by federal regulators, Texas Attorney General Ken Paxton asked a judge Thursday to dismiss a civil fraud lawsuit over his efforts to recruit investors to a high-tech startup before he was the state's top prosecutor.

The U.S. Securities and Exchange Commission sued Paxton and former executives of Servergy Inc. in federal court in April, alleging the Republican deceived friends and wealthy investors — at least once with high-pressure tactics — in 2011.

The civil charges mirror a felony criminal indictment against Paxton in Texas courts; he has pleaded not guilty in the criminal case. He also has said he won't resign and hasn't faced any public pressure from fellow Texas Republican officials to do so.

Like the criminal charges, the civil lawsuit accuses Paxton of not telling investors Servergy paid him to raise money.

"The SEC's claims against Mr. Paxton are a dramatic overreach and lack any basis in law," Paxton's argued in their motion to dismiss. "Mr. Paxton should not be left to labor under a cloud of suspicion while enduring years of costly discovery to refute claims that are meritless on their face."

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Read more: http://abcnews.go.com/US/wireStory/texas-ag-paxton-asks-court-dismiss-civil-fraud-39737504

[hobbit709]

1. Poor little Ken. Everybody's picking on him because he's so crooked.

He makes Abbott look honest.

[gratuitous]

2. Of course they filed a motion to dismiss

We'll see if their allegation of a meritless complaint has any, uh, merit. Without any other information, though, I'd say that the federal civil case will proceed since there's a state criminal case pending. The standard of proof for a civil case is lower than the standard for a criminal case, and if the criminal case is ongoing (which is to say, there's enough evidence to proceed), then the civil case is probably good to go, as well.

It's telling not only that Paxton isn't getting any pressure to resign from his fellow Texas Republicans (or maybe he is, behind the scenes), but that he can say that publicly without fear of contradiction. I guess that whole "law and order" pose Republicans like to affect is only good in some circumstances.

[Gothmog]

3. This is a civil case and there is no double jeopardy or issue

Paxton is a really stupid lawyer

[Downwinder]

4. Is there also a State Bar complaint?

[Gothmog]

5. There is a separate criminal charge pending in Collin County state district court

I know two of the lawyers in that case