Austin real estate investor Nate Paul faces a looming jail sentence following a recent contempt of court ruling.
Paul, the founder of World Class Holdings, was instructed to report to Travis County Jail by Friday to begin serving a 10-day sentence, KXAN reported.
The contempt ruling follows a prolonged legal dispute between Paul and the Mitte Foundation, which filed a lawsuit accusing him of mishandling investment dealings with the foundation. The lawsuit centers on Paul’s alleged violation of an injunction that required him to report financial transfers over $25,000. The judge later ruled that Paul had violated these orders by allegedly committing perjury and withholding details on specific transactions.
Despite efforts to avoid the jail sentence by appealing to the Texas Supreme Court and federal courts, his legal challenges have been unsuccessful, with both courts rejecting his petitions.
The controversy surrounding Paul also gained attention due to his connection with Texas Attorney General Ken Paxton, who was accused of using his office to aid the Austin-based real estate investor in his dispute with the Mitte Foundation. Paxton’s involvement ultimately led to his impeachment, though he was later acquitted of all charges.
Paul also faces a handful of federal criminal charges involving wire and bank fraud. If found guilty in that case, he faces up to 20 years in prison for the wire fraud and up to 30 years for the bank fraud. His criminal trial is scheduled for February.
This isn’t Paul’s first rodeo with the U.S. justice system. In mid-2022, NBA player Avery Bradley sued Paul for $8 million, alleging wrongdoing in a multimillion-dollar investment deal involving World Class Holdings.
That same year, the auction of several World Class Holdings properties was scheduled amid the fallout from bankruptcies and foreclosures. The auction included significant assets from his portfolio, including a prime South Congress assemblage in Austin that Related Companies bought for $65 million.
— Andrew Terrell
Read more
Commercial
Texas
Affiliate of Nate Paul’s World Class puts Austin office complex into bankruptcy to fend off foreclosure
Commercial
Austin
Auction date set in latest twist for Nate Paul
Commercial
Austin
NBA player Avery Bradley sues Nate Paul for $8M