Feds Seek Testimony on Texas AG’s Nate Paul Connection

The ties between litigious Austin developer Nate Paul and suspended Texas Attorney General Ken Paxton is being examined under the microscope of a grand jury.

Two sources familiar with the Paxton-Paul relationship, whose identities have not been revealed, were called to testify by federal prosecutors, the Austin American-Statesman reported.

Criminal prosecutors appear to be digging for incriminating evidence against Paxton, as well as possible indictment, as he awaits his impeachment trial, scheduled for next month. Among numerous accusations, Paxton allegedly accepted bribes from Paul in exchange for helping the World Class Holdings CEO with legal maneuvers to avoid foreclosure.

Paxton’s lawyer, Dan Cogdell, said he had no knowledge that the case was being presented to a grand jury.

“All I know is that no one from either the DOJ or the U.S. attorney’s office has been able to answer my most basic questions about any possible ongoing investigation regarding Ken,” Cogdell told the outlet.

It’s unclear when the grand jury impaneled or how long these proceedings will last. While these meetings are private, any indictment the grand jury produces would have to be made public.

Paul, who’s facing a plethora of lawsuits himself, allegedly remodeled a house for Paxton and hired his mistress in exchange for legal assistance. The unnamed witnesses could shed light on favors Paxton received from Paul

Last Friday, Paxton’s attorneys filed a motion to dismiss all 16 counts of impeachment, arguing that the accusations are untrue and lack evidence. His lawyers added that even if true, none of the alleged crimes are punishable by impeachment.

Paxton’s trial is expected to last two or three weeks.

—Quinn Donoghue