May 5, 2021      2:35 PM
DMN: AG Paxton roped into securities fraud debacle between financial advisor, ex-partners
From the scoop by Dallas
Morning News reporter Lauren McGaughy
Two former business
partners have successfully pulled Ken Paxton into yet another securities
fraud dispute, adding to the attorney general’s mounting legal problems. The
case dates to 2016, when the man who oversees Paxton’s financial assets accused
a company called Unity Resources and two of its investors of
defrauding him. The two men denied the allegations and pointed the finger back
at Paxton, arguing he was responsible because he too was an investor and served
as the company’s lawyer.
Last week, the Fifth Court
of Appeals in Dallas agreed with the two men that Paxton could be named a
“responsible third party” in the suit. The 11-1 opinion by the
Democrat-dominated court reversed its previous decision that initially found
Paxton could not be added to the case.
Full story
here.
|