Robbing Peter To Pay Nate Paul: Texas AG's Alleged Benefactor Hit With 4 New Fraud Charges

Texas Attorney General Ken Paxton may have been cleared of all wrongdoing in his historic impeachment trial, but his alleged co-conspirator, Nate Paul, isn't out of the woods.

The embattled Austin developer is facing four additional wire fraud charges for allegedly misleading his business partners to obtain money he then used to fund his other businesses, KVUE reports.

The accusations span an eight-year period and include major discrepancies that in some cases robbed limited partners of millions of dollars, according to the Real Deal. In 2016, Paul told one of his partners that the company was owed $11K, when actual accounts receivable totaled more than $4M. 

The new charges come on the heels of eight counts of loan fraud the 36-year-old CEO of World Class Capital was charged with in June. In those filings, prosecutors accused Paul of making false statements to obtain about $172M in loans that he then used to purchase properties. 

Paul pleaded guilty to the earlier charges.

Paxton was acquitted in September on 16 articles of impeachment, more than a third of which centered on his relationship with Paul. 

Whistleblowers in the AG’s office accused Paxton of giving Paul unfettered access to information that could help him derail an FBI probe into Paul’s business dealings. In exchange, Paul footed the bill for renovations at Paxton’s home and helped him hide an extramarital affair, impeachment managers alleged. 

Paxton remains the subject of an FBI investigation that began in 2020 and will face state securities fraud charges in a trial set for April, according to The Texas Tribune. 

As for Paul, the government is seeking to seize $172M and any properties that may have been linked to his alleged criminal conduct. His trial is set for July.