What Nate Paul's arrest means for Ken Paxton
Add Axios as your preferred source to
see more of our stories on Google.

Texas Attorney General Ken Paxton. Photo by Brandon Bell/Getty Images
Attorney General Ken Paxton didn't appear in a federal courtroom in Austin on Friday, but his fate may be tied to the man who did.
Driving the news: The impeached attorney general is not set to appear before a jury of Texas senators until later this summer, but the Austin real estate developer who is central to claims of Paxton's abuse of office has been indicted by the feds.
- Nate Paul, once famous for his meteoric rise as a buyer and seller of Austin property, appeared in an initial arraignment Friday. He was ordered to surrender his passport and released on bond, per the Texas Tribune.
Why it matters: Paxton is not named in the indictment documents — they involve accusations of making false statements to secure loans in 2017 and 2018 — but Paul could provide insight to federal investigators about Paxton's activities.
- Paxton is the subject of a federal corruption investigation.
Catch up fast: In 2020, several of Paxton's top aides alleged he illegally used his office to benefit Paul, who donated $25,000 to Paxton's 2018 campaign, per the Associated Press.
- Within months, those aides were either fired or resigned.
Details: Investigators with a Texas House Committee testified last month about alleged favors Paxton did for Paul, including pressuring his staff to get involved in a records fight that would benefit Paul in a lawsuit involving an Austin nonprofit.
- Investigators allege that in exchange for these favors, Paul helped with a renovation of Paxton's Austin home and employed a woman with whom Paxton was allegedly in a relationship.
- The Texas House then impeached Paxton, by a vote of 121-23, and the state's top lawyer is not being paid as he remains suspended pending the outcome of the Texas Senate trial.
The other side: "The charges against Paul evidently have nothing to do with Attorney General Ken Paxton. Nothing whatsoever," Paxton’s lawyer, Tony Buzbee, said in a statement, per the Tribune.
- Paul's attorney, Gerry Morris, said Friday that the charges have nothing to do with Paxton, per the Tribune.
Between the lines: If a defendant wishes to cooperate in return for a potentially lighter sentence, "he'd have to disclose all criminal activities and answer all questions," Ken Magidson, a former U.S. Attorney in Texas' Southern District, tells Axios.
- A prosecutor might ask him, "Does he know of criminal activities the attorney general may have been involved with?" Magidson, who is now retired, said.
The bottom line: Paxton's impeachment and possible removal from office by the Texas Legislature is one thing — but the prospect of a federal indictment is another matter altogether.
