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New allegations accuse Ken Paxton of working to hide relationship with Nate Paul

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In new allegations revealed Wednesday, Texas House investigators accused suspended Attorney General Ken Paxton of engaging in a complex coverup to hide his relationship with real estate investor Nate Paul as senior aides grew increasingly concerned about Paxton’s willingness to use his office to benefit Paul.

The subterfuge included Paxton and Paul creating an Uber account under an alias so they could meet each other and so the attorney could visit the woman with whom he was having an extramarital affair.

And once Paxton learned several high-ranking officials in his office reported his behavior to the FBI, the House investigators said, the attorney general took immediate steps to cover up his relationship with Paul, including wiring a payment to a Paul-affiliated company in an effort to hide home renovations that Paul had provided for free.

The allegations, outlined in a series of filings with the Texas Senate’s court of impeachment, shed new light on the relationship between Paul and Paxton that is at the core of his impeachment proceedings.

Among the new claims: Top deputies in the attorney general’s office persistently warned Paxton about that Paul was a “crook,” and that there was no merit to his claims that he had been unfairly treated by law enforcement; and that the two met at least 20 times in spring and summer 2020, sometimes discussing the FBI investigation into Paul’s faltering real estate empire.

Paxton “blindly accepted Paul’s conspiracy,” impeachment managers alleged. “Senior Staff urged Paxton to stay away. But when it came to Paul, Paxton was immune to reason.”

Paul was arrested in June on federal felony charges of lying to financial institutions to secure business loans.

House investigators have previously accused Paxton of using his office to interfere with an investigation into companies owned by Paul, who in turn paid to remodel Paxton’s Austin home and hired a woman with whom Paxton allegedly had an extramarital affair. House investigators are also probing Paxton’s firing of whistleblowers from the attorney general’s office who reported him to law enforcement for bribery and other alleged misconduct involving Paul.

In filings this month, Paxton’s legal team downplayed Paxton’s relationship with Paul, saying there was no evidence of a “quid pro quo” that would constitute bribery, and that Paxton’s ties to Paul were nothing more than “a personal relationship with a constituent and that the constituent found something the Attorney General did to be agreeable in some way.”

Paxton’s team also argued that the decision to fire the whistleblowers was in line with his duties as the attorney general, and that a $3.3 million lawsuit settlement that he later reached with them was a cost-saving measure and nothing more than “ordinary employment litigation.”

The House investigation into Paxton began earlier this year, after he requested the Texas Legislature approve funds to cover the lawsuit settlement.

Paxton’s team had filed more than a dozen motions to dismiss all articles of impeachment, often arguing the underlying allegations were baseless or fell under the legitimate duties of the attorney general’s office.

His attorneys also accused the Texas House of trying to “overturn the will of voters” who re-elected Paxton to a third term last year despite various public scandals dating back to 2015. One argument stressed that Paxton cannot be impeached for alleged misconduct that predated his most recent election under the so-called “prior-term doctrine.” And they downplayed some of the allegations he faces, saying that, even if true, they are not severe enough to warrant his removal from office.

In filings last month, Paxton’s team also took direct aim at two sets of allegations that are at the core of the impeachment process: Paxton’s relationship with Paul, and Paxton’s firing of whistleblowers from the attorney general’s office who reported him to law enforcement for bribery and other alleged misconduct involving Paul.

House investigators accused Paxton of using his office to interfere with an investigation into companies owned by Paul, who in turn paid to remodel Paxton’s Austin home and hired a woman with whom Paxton allegedly had an extramarital affair. Paul was arrested in June on federal felony charges of lying to financial institutions to secure business loans.

In filings this month, Paxton’s legal team sought to have the bribery-related impeachment articles dismissed, saying there was no evidence of a “quid pro quo” and that Paxton’s ties to Paul were nothing more than “a personal relationship with a constituent and that the constituent found something the Attorney General did to be agreeable in some way.”

Paxton’s team also argued that the decision to fire the whistleblowers was in line with his duties as the attorney general, and that a $3.3 million lawsuit settlement that he later reached with them was a cost-saving measure and nothing more than “ordinary employment litigation.” The House investigation into Paxton began earlier this year, after he requested the Texas Legislature approve funds to cover the lawsuit settlement.

The impeachment team disagreed with Paxton’s lawyers who claimed the articles of impeachment were deficient because they failed to list specific laws that Paxton allegedly broke.

“Impeachable offenses need not be indictable crimes,” the House team argued. “Impeachment in Texas seeks to protect against conduct that undermines the integrity of the office, disregards constitutional duties and oaths of office, abuses government process and power, and adversely impacts the system of government.”

What’s more, they argued, many of the articles listed particular crimes, and several detailed “how Paxton abused his office for his own personal benefit or that of Nate Paul and business entities controlled by Paul.”

This is a developing story. Check back for updates.

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This article originally appeared in The Texas Tribune at https://www.texastribune.org/2023/08/16/ken-paxton-impeachment-evidence-senate/.

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"New allegations accuse Ken Paxton of working to hide relationship with Nate Paul" was first published by The Texas Tribune, a nonprofit, nonpartisan media organization that informs Texans — and engages with them — about public policy, politics, government and statewide issues.

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