![]() The board is mulling whether to revoke Mowery's state registration for other alleged instances of fraud and deceit. He paid and $1,000 fine and was reprimanded by the securities board. In April 2014, Paxton admitted to repeatedly soliciting clients for Mowery without being registered. In the indictments, the Henrys allege Paxton acted as an investment advisor representative without being properly registered with the Texas State Securities Board. The complainants in this indictment were named as James and Freddie Henry, clients of Paxton friend and business associate Frederick "Fritz" Mowery. The third-degree charge stems from Paxton's failure to properly register with the state as an investment adviser representative, which carries a sentence of two to 10 years in prison, as well as a $10,000 fine. The two first-degree felony charges carry a sentence of five to 99 years in prison, and a fine of no more than $10,000. Read the Hochberg re-indictment document here. Read the Cook re-indictment document here. The re-indictments also clarifies that Paxton allegedly received the free shares in exchange for selling the stock. ![]() The re-indictments make the same claims but clarify the accusations, alleging that Paxton "unlawfully and intentionally" offered to sell at least $100,000 worth of Servergy stock to both men while failing to disclose, also intentionally, that he "had not, and was not" investing his own funds. They also alleged Paxton failed to disclose to Cook and Hochberg that the state legislator had not personally invested in Servergy and had received 100,000 shares of stock from the company as compensation. ![]() The original indictments accuse Paxton of engaging in fraud "in connection with the offer for sale and sale" of at least $100,000 worth of stock in McKinney-based tech company Servergy to Byron Cook, a Corsicana Republican who chairs the House State Affairs Committee, and Joel Hochberg, a south Florida businessman. ![]()
0 Comments
Leave a Reply. |