Nate Paul, Developer Who is Core to Paxton Impeachment Case, Faces Felony Charges [UPDATED]

Update 12:10 p.m. 6-9-23


Nate Paul, prominent Austin-based real estate figure and close confidant of now suspended Texas Attorney General Ken Paxton has been charged on eight federal felony counts over alleged financial crimes.

These charges were announced on Friday after Paul’s appearance in an Austin federal court.

Paul appeared before U.S. Magistrate Judge Dustin M. Howell, after he was kept on federal hold in the Travis County Jail following his arrest the day prior.

According to the indictment, the supposed financial crimes occurred in 2017 and 2018. They include claims that Paul made false statements to mortgage lenders and credit unions for the purpose of increasing the value of assets and failed to recognize liabilities to receive loans for his businesses.

Paul is at the center of the impeachment case and investigation against Paxton, after allegedly striking up a deal with the attorney general in exchange for political favors. Despite this, Paxton was not mentioned in court, according to reports.

The real estate developer has had a career marked by lawsuits between him and former business associates and lost several properties due to foreclosure. Gerry Morris, an Austin-based lawyer, was representing him in court.



Editor's note:  See below for an update.

Nate Paul, the Austin-based real estate developer, political donor and close friend of suspended Texas Attorney General Ken Paxton was booked Thursday afternoon in the Travis County jail on a federal hold for a felony crime.

It is not known at this time what charge he faces or if his arrest was related to the allegations of Paxton’s abuses of office to provide political favors to Paul in exchange for his assistance in home repairs and getting a job for a woman who Paxton was reportedly having an affair with.

Paul is at the center of the impeachment case against Paxton, as these claims about their partnership first came to light after an investigation was launched into the matter following reports from several of Paxton’s former top officials to law enforcement in 2020.

Paul’s company was already under investigation in 2019 – however reports say it is unclear as to why this probe into his business started.

Former Texas Secretary of State John Scott will fill in for Paxton while he awaits trial in the Senate, where Paul could serve as a witness.

This story is developing and will be updated.

Update 9:35 a.m. 6-9-23

Suspended Texas Attorney General Ken Paxton’s legal defense team sent a cease-and-desist letter on Thursday to the House officials involved in the impeachment claiming they could no longer contact witnesses or engage in any “after-the-fact” information collecting.

Judd Stone, Texas Solicitor General, and Chris Hilton, chief of general litigation division – who are both on leave from the Office of the Attorney General to represent Paxton in the Senate trial – signed the letter and addressed it to House Speaker Dade Phelan, representative Andrew Murr (R-Junction), representative Ann Johnson (D-Houston), and attorneys Rusty Hardin and Dick DeGuerin.

Hardin and DeGuerin were appointed to the House’s team of prosecutors which will be chaired by Murr and vice-chaired by Johnson.

According to the letter, Stone and Hilton said those working on the case against Paxton in the House needed to stop contacting potential witnesses – including employees from the Office of the Attorney General – since the impeachment vote had already been decided.

Stone and Hilton said because the matter is now in the hands of the Senate, House members and attorneys have “no authority” to request documents, approach witnesses or do anything else until the rules for the proceedings are established. Which are set to be decided on June 20.

The only options they had to obtain additional information was to submit a public records request – which would bar them from receiving confidential information – or using their legislative capacity. However, the information collected could only be used for legislative purposes, not within judicial proceedings and could still be determined confidential depending on the content included.

Stone and Hilton concluded by calling out the investigators and attorneys' attempts and said they were “hiding behind these cowardly tactics,” while they told the public they wanted a transparent process.

This letter was sent on the heels of Nate Paul’s arrest – the Austin-based real estate developer, political donor and close friend of Paxton was kept on federal hold in the Travis County jail on Thursday afternoon.

According to initial reports, DeGuerin and one of Paxton’s lawyers, Dan Cogdell, have suggested that Paul’s arrest is likely to be related to Paxton's impeachment and the investigation surrounding the matter. Paul is expected to appear before a magistrate judge later Friday morning in Austin.