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I am sorry, but I am in IT. 32 bit servers are dead.

...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, neither Mapp nor Servergy informed investors that those 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...

In a previous life I traded commodities, so I am quite familiar with securities laws. This is a huge breach of trust and conflict of interest. These were ***accredited investors, but they were defrauded. Not saying this reflects on Cruz, but I am also not saying it does not. Lets see how he handles it first.

...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. Similarly, former Servergy director Caleb White allegedly raised more than $1.4 million for Servergy and received $66,000 and 20,000 shares of Servergy stock while never disclosing these commissions to investors. White has agreed to settle the SEC’s charges by paying $66,000 in disgorgement and returning his shares of Servergy stock to the company. The SEC’s litigation continues against Paxton...

***What is an accredited investor?

Put simply, an accredited investor is a wealthy, savvy individual or company. They purchase securities (stocks or bonds, usually) in your company for investment purposes, not for resale. And according to the SEC, they must meet certain “sophistication [and] wealth” standards. Some examples of accredited investors are:

A charitable organization with assets exceeding $5 million
A corporation or partnership with assets exceeding $5 million
A bank, insurance company, or business investment company
Any director, general partner, or executive director of the company actually selling the securities
An individual with a net worth of $1 million
An individual with income of over $200,000 for each of the past two years
A household with income of over $300,000 for each of the past two years
A trust with assets exceeding $5 million which was not formed expressly to purchase the securities being offering
A business with equity owners who are also all accredited investors as defined above