Full Breakdown
Ken Paxton’s 2014 Deposition Leak Raises New Questions Ahead of Senate Run
By Drooid · · How we work
Core Event – Leak of a 2014 SEC Deposition
On October 7, a leaked deposition from 2014 was published by The New York Times and verified by the outlet. The testimony was given by Texas Attorney General and Senate candidate Ken Paxton during a U.S. Securities and Exchange Commission (SEC) investigation of the McKinney-based tech start-up Servergy Inc. In the deposition, Paxton repeatedly said he “doesn’t remember” details and shifted responsibility for his tax filings to his estranged wife, Angela Paxton.
Background & Context – SEC Fraud Probe of Servergy
The SEC inquiry focused on whether Paxton concealed compensation received for recruiting investors to Servergy. Founder Bill Mapp was accused of making false statements to investors, and lawyers questioned Paxton about emails suggesting a commission for investor recruitment. The federal judge dismissed the SEC fraud case in 2017, ruling that Paxton had no legal duty to disclose receipt of value from the company.
Key Findings from the Deposition
- Paxton disclosed $100,000 as “legal services” to Servergy on his tax returns but attributed the preparation of those returns to his wife, stating he “doesn’t have time.”
- He met Mapp at a Dairy Queen, offered a check, and was instead given 100,000 shares of Servergy stock, which Paxton described as “not logical” and linked to Mapp’s “spiritual” nature.
- He could not locate the stock certificate and listed the shares on state ethics filings, prompting a Texas ethics-law expert to note a possible violation of state disclosure rules.
- Paxton claimed to have more than $400,000 invested in various companies but said he lacked time to track them.
Official Responses & Criticism
An ethics expert, speaking to The Times, said the failure to disclose the shares as a gift could breach Texas law. Angela Paxton filed for divorce last year, accusing her husband of infidelity; she declined comment to the newspaper.
Verbatim Quotes
- “I haven’t prepared a tax return in a long time because I don’t have time, so typically, actually my wife actually does them,” — Fraud Probe Ken Paxton
- “He said, I can’t take your money. God doesn’t want me to take your money,’” — Fraud Probe Ken Paxton