Ken Paxton Addresses Fraud Allegations in Leaked Deposition

<figure><img alt="Texas Attorney General Ken Paxton and his wife, State Senator Angela Paxton" src="https://thedailybeast-thedailybeast-prod.web.arc-cdn.net/resizer/v2/OOGHVRS36BEA7G4ZZPJJOPSVS4.jpg?auth=eebda9c4fe08b3b92ff0be8d7f64ff09131c0284a96778adf1daa70b70651aab&amp;smart=true&amp;width=3000&amp;height=1688" /><figcaption>Photo Illustration by Thomas Levinson/The Daily Beast/Getty/Reuters</figcaption></figure><p>A leaked deposition shows Senate candidate Ken Paxton defended himself against fraud allegations by stating he does not remember certain details and attributing some responsibilities to his now-estranged wife.</p><p>The Texas attorney general's 2014 testimony from a fraud investigation was provided to <a href="https://www.nytimes.com/2026/10/09/us/ken-paxton-deposition-investments.html?smid=nytcore-ios-share" rel="" target="_self" title="https://www.nytimes.com/2026/10/09/us/ken-paxton-deposition-investments.html?smid=nytcore-ios-share">The New York Times</a> by an opponent of his election and was independently verified by the publication.</p><p>This leak comes as Paxton faces ongoing scrutiny in a critical election, amid a series of audio leaks.</p><p>The deposition was part of a U.S. Securities and Exchange Commission (SEC) investigation into Servergy Inc., a technology start-up based in McKinney, Texas.</p><img alt="Senate candidate Ken Paxton, pictured campaigning with President Trump on October 7, has been hit with another leak, this time a 2014 deposition in a fraud probe. / Evan Vucci/Reuters" height="3667" src="https://thedailybeast-thedailybeast-prod.web.arc-cdn.net/resizer/v2/EHMQ7QLLFBHTZB364BBN2DT6LU.JPG?auth=f011fe7bde7e829f29650a6f5f3b5e6f472cb491416a7137eb1691d871fe9e2e&amp;smart=true&amp;width=5500&amp;height=3667" width="5500" /><p>The SEC questioned Paxton about whether he concealed that the company compensated him for recruiting investors, as its founder, Bill Mapp, faced accusations of making false statements to investors.</p><p>Paxton has faced allegations of corruption and questions regarding his wealth while in public office, though he has not been convicted of any crimes.</p><p>During the deposition, Paxton reportedly stated "I don’t remember" and "I don’t recall" over 200 times. He attributed his tax return preparation to his wife, saying, "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." </p><img alt="Ken and Angela Paxton in 2021. She filed for divorce last year. / Evelyn Hockstein/Reuters" height="1973" src="https://thedailybeast-thedailybeast-prod.web.arc-cdn.net/resizer/v2/WX66VOSVENA25LMCZZFWFE7CKQ.jpg?auth=5e8a43ff645b67f6978025f5f67dda80dfa02f46eb817af64104f14db1981a85&amp;smart=true&amp;width=2717&amp;height=1973" width="2717" /><p>Lawyers questioned Paxton regarding emails from Mapp, who appeared to offer him a commission for recruiting investors. Paxton claimed he did not remember reading many of these emails and denied performing services for the company.</p><p>When confronted with his tax returns, which indicated he disclosed $100,000 for "legal services" to the company, he pointed to his then-wife. Paxton met with Mapp at a Dairy Queen to give him a check for his investment, but Mapp rejected it and instead gifted him 100,000 shares of stock.</p><p>Paxton recounted, "He said, I can’t take your money. God doesn’t want me to take your money." When asked why Mapp would give him shares for free, Paxton described it as "not logical" and stated, "Bill is a spiritual person." He also mentioned he did not consult a lawyer regarding the appropriateness of accepting the shares.</p><p>Paxton could not recall the location of the certificate proving his ownership of the stocks. He listed the shares as stocks on his annual financial reports filed with state ethics regulators, but a Texas ethics law expert indicated that he may have violated state rules by not disclosing the shares as a gift.</p><p>During the deposition, Paxton stated he had over $400,000 invested in various companies but claimed he lacked the time to track his investments.</p><video id="4SM2wANg" poster="https://cdn.jwplayer.com/v2/media/4SM2wANg/poster.jpg"><source src="https://cdn.jwplayer.com/videos/4SM2wANg.mp4" type="video/mp4" /></video><p>A federal judge dismissed the SEC’s fraud case against Paxton in 2017, ruling that he had no obligation to inform investors about receiving something of value from the company.</p><p>Last year, Angela Paxton filed for divorce, alleging infidelity. The Daily Beast sought a comment from her regarding the report but did not receive a response. She declined to comment to The Times.</p><p>The Daily Beast also requested a comment from Paxton’s campaign. In response to The Times, a Paxton adviser labeled the leaked deposition as a distraction and asserted that the candidate has faced political persecution for years for opposing the establishment, which he claims Texans have recognized.</p>