Nate Paul
UPDATE: Nate Paul, the Austin real estate developer who played a key role in allegations that led to the impeachment last month of Texas Attorney General Ken Paxton, has been charged with eight federal felony counts of making false statements to financial institutions, according to The Texas Tribune. Federal prosecutors laid out the charges in an indictment filed today (Friday, June 9) alleging that Paul overstated his assets and understated his liabilities to fraudulently obtain loans.
Paxton was not mentioned in the indictment, and Paul’s attorney said he has “no idea” when Paul last spoke with the now-suspended attorney general. Paul was released from custody today and is due back in court June 15 for arraignment.
ORIGINAL POST: Law enforcement officials in Travis County have arrested Nate Paul at the request of the FBI, the Texas Tribune has reported.
Paul is the real estate developer “central to allegations of illegal conduct by Ken Paxton, Texas’ now-suspended attorney general,” the Tribune reports. But was not immediately clear if his arrest was related to those allegations.
Travis County Sheriff’s Department spokesperson Kristen Dark said the arresting agency is the FBI, and that Paul was booked into the jail at 4:35 p.m. today (Thursday, June 8).
In late 2020, several of Paxton’s top deputies went to the FBI with allegations that Paxton was using the power of the OAG to do favors for Paul, who returned those favors in kind. Paxton used OAG staff and resources to intervene in legal disputes involving Paul, who donated to Paxton’s re-election campaign, gave Paxton’s girlfriend a job and remodeled a couple of properties owned by Paxton and his wife, state Sen. Angela Paxton.
Federal law enforcement were already investigating Paul’s businesses even before the reports from former OAG deputies, and had raided his homes and businesses in 2019. And Paxton has been under federal indictment since July 2015 on securities fraud charges.
— Tammye Nash