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Ken Paxton: The Record

A decade of legal trouble, corruption allegations, and using public office for personal gain.

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⚠ Key Facts at a Glance

  • Under criminal indictment for nearly a decade — Felony securities fraud charges from 2015, resolved in 2024 with $271K restitution and community service
  • Impeached by Texas House — 121-23 vote on 20 articles of corruption, including bribery and obstruction
  • Used AG office to help political donor — Intervened in lawsuits, abused open records process for Nate Paul
  • Fired whistleblowers — Terminated 6 staffers who reported his illegal acts
  • Saved by billionaire oil backers — Tim Dunn & Farris Wilks poured millions into PACs to protect him
  • $3.3M taxpayer-funded settlement — Used public money to settle wrongful termination lawsuit

📅 Timeline: A Decade of Corruption

July 28, 2015

Indicted on Felony Securities Fraud

Collin County grand jury indicts Paxton on three felony counts: two first-degree securities fraud charges and one third-degree charge for failing to register as a securities agent.

The Scheme: Persuaded investors (including State Rep. Byron Cook) to put $600K+ into tech firm Servergy Inc. without disclosing he was receiving 100,000 shares in compensation.

Penalty if convicted: 5-99 years or life in prison, plus $10,000 fine per count.
August 3, 2015

Surrenders to Jail

Turns himself in at Collin County Jail, books mugshot in pinstriped suit and red tie. Released on $35,000 bond.

April 11, 2016

SEC Files Civil Fraud Charges

Securities and Exchange Commission charges Paxton with misleading investors in Servergy. Raised $840,000 while hiding commission payments.

The company falsely claimed pre-orders from Amazon and Freescale — all lies. Paxton pitched to "friends, business associates, law firm clients" while concealing his compensation.
2018

Narrowly Wins Reelection

Indictment becomes campaign issue but survives to second term under criminal cloud. Trial repeatedly delayed by legal maneuvering over venue and prosecutor pay.

2023

The Nate Paul Scandal Erupts

AG office staff report Paxton to FBI for abusing office to help donor Nate Paul — a real estate developer facing foreclosure.

Key Allegations:
• Intervened in lawsuit between charity and Paul
• Used "straw requestor" Sen. Bryan Hughes to get AG opinion
• Gave Paul confidential law enforcement information
• Hired outside attorney to issue 30+ grand jury subpoenas for Paul's benefit
May 27, 2023

Impeached by Texas House

Historic vote: 121-23 to impeach on 20 articles. Includes 60 Republicans and all 5 Collin County representatives — Paxton's home county.

Articles include: Bribery, abuse of public trust, dereliction of duty, obstruction of justice, retaliation against whistleblowers, misuse of public information.

Immediate suspension from office pending Senate trial.
September 2023

Acquitted in Senate Trial — After Rigged Process

Dan Patrick presides over trial with rules requiring "beyond reasonable doubt" standard (criminal standard, not impeachment standard).

$3 Million Donation: Defend Texas Liberty PAC (Dunn/Wilks funded) gave Lt. Gov. Dan Patrick $3M weeks before the trial while he was set to preside as judge.

Improper Influence: Patrick's committee set rules giving him "near total control" over proceedings. Paxton's alleged mistress never testified.
May 26, 2026

Wins GOP Senate Nomination

Defeats John Cornyn in primary runoff. Now faces James Talarico in November general election.

🛢️ The Dunn & Wilks Machine

West Texas billionaires Tim Dunn and Farris Wilks have pumped $10M+ into pro-Paxton PACs to protect their agenda:

  • $11M raised by Defend Texas Liberty PAC 2020-2022 — almost entirely from Dunn/Wilks
  • PAC Chairman Jonathan Stickland threatened primaries for pro-impeachment Republicans: "Wait till you see my PAC budget"
  • PAC later embroiled in scandal over meeting with white supremacist Nick Fuentes
  • Dunn/Wilks also pushed Christian nationalist agenda: anti-abortion, anti-LGBTQ+, school privatization

📄 Primary Source Documents

🔗 Texas House Articles of Impeachment (HR 2377)

Filed May 25, 2023 | Official Texas Legislature Document
BE IT RESOLVED by the House of Representatives of the State of Texas, That Warren Kenneth Paxton Jr., Attorney General of the State of Texas, is impeached... ARTICLE I: (Disregard of Official Duty-Protection of Charitable Organization) Specifically, Paxton caused employees of his office to intervene in a lawsuit brought by the Roy F. & JoAnn Cole Mitte Foundation against several corporate entities controlled by Nate Paul. Paxton harmed the Mitte Foundation in an effort to benefit Paul. ARTICLE VI: (Disregard of Official Duty-Termination of Whistleblowers) Paxton terminated employees of his office who made good faith reports of his unlawful actions to law enforcement authorities...
View Full Document →

🔗 Original Criminal Indictment (July 2015)

Collin County Grand Jury | 416th Judicial District
THE STATE OF TEXAS v. WARREN KENNETH PAXTON, JR. IN THE 416TH JUDICIAL DISTRICT COURT OF COLLIN COUNTY COUNT 1: Securities Fraud (First Degree Felony) ...did then and there engage in fraud in connection with the offer for sale and sale of common stock of SERVERGY, INC. ...by intentionally failing to disclose that defendant would be compensated, and had in fact received compensation... in the form of 100,000 shares of SERVERGY stock...
View on Scribd →

🔗 Committee Memo on Impeachment Process

House Committee on General Investigating | May 26, 2023
TO: Members of the House of Representatives FROM: House Committee on General Investigating RE: Impeachment Process ...Paxton's own request for a taxpayer-funded settlement over his wrongful conduct triggered impeachment... ...Paxton's long-standing pattern of abuse of office and public trust, disregard and dereliction of duty, and obstruction of justice and abuse of judicial process...
View PDF →

📁 CASE FILE: The Servergy Securities Fraud

Primary Allegation

While serving in the Texas House, Ken Paxton allegedly agreed to promote Servergy Inc. stock to investors in exchange for 100,000 shares — all while concealing his compensation and the company's fraudulent claims.

📄 SEC Litigation Release No. 23515

Filed: April 11, 2016 | Case: SEC v. William E. Mapp, III, et al., No. 4:16-cv-000246 (E.D. Tex.)
THE SECURITIES AND EXCHANGE COMMISSION: "The SEC alleges that Servergy Inc. and William E. Mapp III sold $26 million worth of company stock in private offerings while misleading investors to believe that the Cleantech CTS-1000 server (the company's sole product) was especially energy-efficient. They said it could replace 'power-hungry' servers found in top data centers and compete directly with top server makers like IBM, Dell, and Hewlett Packard. However... the 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." ON PAXTON'S ROLE: "While serving in the Texas House of Representatives, Paxton allegedly reached an agreement with Mapp to promote Servergy to prospective investors in return for shares of Servergy stock. According to the SEC's complaint, Paxton raised $840,000 in investor funds for Servergy and received 100,000 shares of stock in return, but never disclosed his commissions to prospective investors while recruiting them."
View Full SEC Litigation Release →

🔍 How the Fraud Worked

THE LIE THE REALITY
"Energy-efficient server using 80% less power" Used obsolete 32-bit processors being phased out industry-wide
"Competes with IBM, Dell, HP" Competitors manufactured 64-bit systems; CTS-1000 could not compete
"Amazon pre-order" One Amazon employee contacted Servergy to test in his free time, for personal use
Paxton recommended investment as co-investor Paxton received 100,000 shares as commission, never disclosed

📧 Paxton's Role: The Timeline

  • July 2011: Meeting at Paxton's McKinney law office with Servergy CEO William Mapp
  • The Offer: Mapp proposed 10% commission for investors Paxton recruited
  • Paxton's Response: Replied by email: "I will get to work"
  • 10 Days Later: Paxton organized pitch meeting, introduced Mapp to investors
  • The Result: Raised $840,000 (32% of all 2011 Servergy funding)
  • The Deception: Never told friends, business associates, or law firm clients he was being paid

Criminal Case Outcome (2024)

  • March 2024: Paxton settled criminal charges
  • Penalty: Paid $271,000 restitution to victims
  • Service: 100 hours community service
  • Timing: Settlement came just months before Senate primary

Pattern of Abuse: The Details

1. Securities Fraud Scheme (Servergy)

In 2011, Paxton solicited investments in Servergy Inc. for over $100,000 from at least two individuals, including fellow state Rep. Byron Cook. He failed to disclose he was receiving 100,000 shares of stock as compensation.

He allegedly misrepresented himself as a co-investor when he had not invested his own funds. The company later faced federal investigation for defrauding investors with false claims about Amazon pre-orders and server capabilities.

2. The Nate Paul Corruption

As Attorney General, Paxton allegedly used his office to help real estate developer Nate Paul — a campaign donor facing foreclosure:

  • Intervened in lawsuit between charity Mitte Foundation and Paul's companies to benefit Paul
  • Issued AG opinion using "straw requestor" Sen. Bryan Hughes to help Paul avoid foreclosure
  • Improperly accessed confidential DPS information and gave it to Paul
  • Hired outside attorney Brandon Cammack to issue 30+ grand jury subpoenas on baseless complaint benefiting Paul

3. Whistleblower Retaliation

After senior AG staff reported Paxton's misconduct to law enforcement, he fired six employees and "engaged in a public and private campaign to impugn the employees' professional reputations."

Staff initially reported to FBI in Fall 2020. Paxton then launched "sham investigation" into their complaints and used $3.3M in taxpayer funds to settle wrongful termination lawsuit.

Sources & Further Reading

Last updated: May 28, 2026 | Compiled from public records and Texas Tribune reporting