Ken Paxton & Victoria Energy
We’ve been checking into State Rep. Ken Paxton’s checkered past to see what interest he might have in companies operating in the Barnett Shale region since he’s from McKinney and running what is likely to be an ill-fated campaign to unseat Speaker Joe Strauss (R-San Antonio).
What we found was actually quite disturbing.
First, we found out that Paxton, via his 2009 Personal Financial Statement filed with the Texas Ethics Commission has received income from XTO Energy, a major player in the Barnett Shale region of Texas. Because state law allows the PSFs to be vague, it isn’t immediately clear if Paxton earned the money from shilling XTO stock to clients through his financial advisory practice, as compensation for work, or for some other reason.
More disturbing, however, is Paxton’s involvement in Victoria Energy, which Paxton lists on his personal financial statements as well. Victoria Energy is an oil and gas business service in Farmersville. It was originally incorporated in 2003. Paxton claims an ownership interest in the company. According to the Securities and Exchange Commission, Victoria Energy has had more than two dozen offerings of stock or securities in the company in the last several years although the company is not publicly traded. The company is filing with the SEC under an exemption known as “Regulation D” which doesn’t require the company to register its securities, but does require it to file a “Form D” after selling the securities. The forms have very little information and do not contain the names of those purchasing stock or interest in the company.
The company resells interest in Barnett Shale wells.
Victoria Energy is the reincarnation of Ampak Energy of McKinney.
According to those familiar with the oil and gas business in the region, Victoria Energy utilizes boiler-room style call centers to contact potential investors. Victoria is represented by Carroll, Caton, & Greenway in Irving, who has reportedly been accused of trading confidential information about their other clients for referral fees from Victoria.
CC&G was cited and fined by the Texas State Securities Board in 2006 for offering investment advice while its licenses had expired [Texas State Securities Board, Order No. IC06-CAF-27]. Ampak was fined by the SEC was pursued by the Illinois Secretary Of State’s Securities Department as recently as 2007.
That can’t be legal. Can it?