The indictment, which was unsealed on Friday, comes after a lengthy investigation conducted by the FBI. Paul, a real estate developer, was arrested by the FBI on Thursday.
Nate Paul, a prominent Texas businessman, has been charged in a federal case for allegedly making false statements to mortgage lenders in order to secure loans totaling $172 million
The charges against Paul are the result of a probe that initially involved Texas Attorney General Ken Paxton‘s office. This investigation ultimately led to Paxton’s impeachment and suspension from office last month. However, during the hearing on Friday, there was no mention of Paxton or his office. Paul is now facing eight counts of making false statements to mortgage lenders in the United States and Ireland. If convicted, each count carries a maximum penalty of 30 years in prison and a fine of up to $1 million.
During his initial court appearance, Paul did not enter a plea and showed no visible reaction to the charges. He was released on bail but was required to surrender his passport and inform the court of any travel outside of Texas. Paul’s defense attorney, Gerry Morris, stated that his client maintains his innocence and denied any knowledge of Paul’s recent contact with Paxton. Paxton’s defense attorney, Dan Cogdell, also stated that he had no information regarding Paul’s arrest.
The indictment alleges that Paul inflated his assets and understated his liabilities when applying for loans, including providing false and counterfeit records to financial institutions
For instance, in one case, Paul claimed to have $18 million in an account when he actually had less than $13,000. In another instance, he is accused of understating his liabilities by millions of dollars while applying for a loan from a credit union.
This federal case against Nate Paul follows the FBI’s search of his real estate empire’s offices and his luxurious home in Austin back in 2019. It was during this time that eight of Paxton’s top deputies reported the attorney general to the FBI, alleging bribery and abuse of office to benefit Paul. These allegations were crucial in the articles of impeachment approved by the Republican-led state House of Representatives.
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