Impeachment Investigators Probe Texas AG’s $3.5M Series Of Real Estate Purchases
A $3.5M real estate buying spree has come into focus as part of the impeachment investigation into Texas Attorney General Ken Paxton.
Paxton, his wife, who is a state senator, and their family trust bought six properties across the U.S. from July 2021 to April 2022, The Wall Street Journal reported after reviewing real estate records. The properties include a five-bedroom luxury lodge in Oklahoma, a townhouse and two rental homes in Florida, and parcels of land in a Utah ski town and on Maui, Hawaii.
The buying spree began after the FBI started investigating Paxton in late 2020, an investigation launched when eight of the top-ranking deputies in his office accused him of using his position to interfere with a federal investigation into Nate Paul, an Austin-based executive of World Class Capital who is a donor and friend of Paxton.
The Texas House of Representatives voted overwhelmingly to impeach Paxton on 20 counts, seven that involved Paul, late last month. Paul's World Class Capital held $1.2B in assets comprising 10M SF across 17 states in 2017, but soon experienced a series of bankruptcy filings and property foreclosures.
Whistleblowers alleged in 2015 that Paul helped pay for renovations to Paxton’s home. They also alleged that Paxton employed his own mistress in exchange for her silence about the affair. This year, Paxton agreed to settle the whistleblower lawsuit for $3.3M in taxpayer money, which some lawmakers said led to the impeachment vote.
Paxton was seemingly trying to create income through his real estate buying spree, the WSJ reported. He earned about $154K annually as attorney general, while his wife, Angela Paxton, a longtime high school math teacher, serves as a state senator, which pays $7K annually.
The Oklahoma lodge is listed as a short-term rental on several websites, boasting a “grand luxe rustic retreat” that sleeps 19, with a hot tub, three covered decks, a pool table and a wet bar, according to the WSJ. The cabin cost $1.6M. Paxton put down 20% and took out a $1.28M mortgage, the records show.
The land Paxton bought was in a resort town of Maui and close to several ski resorts in Utah. Two Florida properties are just north of Orlando.
The Texas House Investigations committee uncovered the records after issuing a new round of subpoenas last month, according to the WSJ. The entities subpoenaed included Esther Blind Trust, a family trust Paxton set up in 2015 shortly after becoming attorney general, according to the article.
Paxton remains suspended from office without pay.
