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Politics
Austin

Nate Paul indicted on eight felony counts

Austin developer jailed by FBI Thursday accused of making false statements to lenders

World Class Holdings CEO Nate Paul
World Class Holdings CEO Nate Paul (Austin Police Department)

On Friday, the federal indictment against prominent Austin developer Nate Paul was revealed, one day after he was arrested by the FBI.

Paul has been charged with eight felony counts of making false statements to mortgage lenders and credit unions for his business, the Dallas Morning News reported. Each felony count of the alleged financial crimes carries a maximum 30-year prison sentence and $1 million fine.

The government is calling for a $172 million monetary judgment, which represents the value of his allegedly fraudulent loans, according to the indictment. The government is also aiming to seize some of Paul’s property.

Texas Attorney General Ken Paxton is noticeably missing from the 23-page indictment. The Texas House voted to impeach Paxton, who is under FBI investigation and accused of abusing his office to help Paul. Paxton has denied wrongdoing and has called his impeachment a political attack.

Upon his arrest on Thursday night, one of Paxton’s impeachment attorneys speculated that the FBI would try to use charges to get Paul to flip on the state AG.

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Paul once controlled a billion-dollar property empire, but has spent several years under the eye of the FBI. In the summer of 2019, agents raided his home and office, an action Paul said left his business “severely compromised.”

The alleged crimes in the indictment are from 2017 and 2018, involving lenders from Texas, New York, Connecticut and Ireland. His indictment, which was handed down on June 6, was announced in federal court on Friday.

After appearing in front of a magistrate judge, Paul was released on bond. He can travel across Texas for business purposes, but is barred from leaving the state unless he tells the court and gives it an itinerary. He is also required to surrender his passport.

Paul’s arraignment is set for June 15.

— Holden Walter-Warner

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AustinimpeachmentKen PaxtonNate PaulTexas