Nate Paul’s Lawyers Seek Dismissal in Bank, Wire Fraud Cases

Nate Paul is seeking to dismiss over a dozen counts of bank and wire fraud linked to his real estate company.

Paul’s legal defense is set to argue two motions — one to dismiss the charges entirely and another to split them into separate cases, KXAN reported. The case stems from allegations that Paul defrauded banks and investors to secure $172 million in loans and investments; federal prosecutors claim the deception funded his real estate empire.

The first motion, filed in October, challenges the validity of the charges by arguing that prosecutors failed to allege Paul acted “willfully,” a key element required for the bank and wire fraud charges. Paul’s attorneys contend the indictment does not meet the legal standard, making dismissal the appropriate remedy.

Federal prosecutors have pushed back, asserting that the charges are sufficiently detailed and that Paul’s intent to deceive is evident in the alleged fraud.

The second motion focuses on severing the charges into two separate trials, dividing the eight counts of bank fraud from the four counts of wire fraud. Paul’s defense claims the charges differ in character and scheme, and combining them could prejudice the jury.

Prosecutors argue the counts are interconnected, citing a “common scheme” in which the embattled investor allegedly manipulated financial institutions and private investors.

Each bank fraud count carries a potential maximum sentence of 30 years in prison and $1 million in fines, while the wire fraud charges could add up to 20 years and $250,000 in fines per count. Paul has pleaded not guilty to all charges.

The trial is set for mid-February, but both parties have jointly requested a delay, proposing to reschedule it for April.

Paul’s legal troubles have drawn significant attention, not just for the financial scope of the allegations but also for their connections to Texas politics. His company, World Class Holdings, was tied to allegations of misconduct involving Texas Attorney General Ken Paxton, leading to an impeachment trial in 2023.

Last month, Paul reported to the Travis County Jail to serve out a 10-day sentence for contempt of court, following a ruling that he violated court orders in a dispute with the Mitte Foundation.

— Andrew Terrell